📰The Key Leaders Behind 2025’s Reforms | Daily India Briefing

There were 5 key architects to India’s 2025 that propelled its current and future growth amid global pressures. Today, we break them down.

If you have any questions about India, fill out this form or reach out to Shreyas at [email protected]

Macro

• A colder January improves harvest forecasts for wheat, chickpeas, and rapeseeds. Winter crops require colder temperatures; recent years have seen higher averages limiting yields. Farmers planted on 1.1 percent more hectares of land this winter than last year, meaning harvests should be materially higher. 

• The rupee is kicking off 2026 by closing at 90 due to corporate dollar demand. Companies usually will trade in rupees year end to invest in any dollar assets they hold.

Equities

• Cigarette manufacturers sold off after India announced a new tax on tobacco products. Anywhere from $23 to $89 (₹2050 to ₹8000) will be charged per 1,000 sticks manufactured which is a hike of 30 percent on current taxation. Leading Indian manufacturer ITC sold off by 10 percent immediately, as 40 percent of its revenue is derived from cigarettes. 

• Sapphire Foods and Devyani International are merging in a $934 million (₹84.1 billion) all-stock deal. The companies are operators for KFC and Pizza Hut restaurants in India but are facing stiff competition from Dominoes and McDonalds. They expect annual synergies of at least $25 million (₹2.3 billion) starting in the first year of operations. 

• India's carmakers are noting a higher sales volume due to GST cuts. Maruti reported a 37 percent rise to domestic dealers, Tata saw a 13 percent increase, and Mahindra & Mahindra featured a 23 percent boost. Interestingly, Hyundai only rose by 0.5 percent.

Alts

• India's top solar manufacturer Waaree Energies saw their CEO resign after a US customs investigation. The US was looking into if Waaree was evading tariffs on some of their Chinese made components by labelling them as made in India. 

• Banks are allowed to sponsor pension funds under the NPS under RBI guidelines. Banks will have to maintain criteria under net worth, market capitalization, and prudential soundness. Other changes include allowed investments in gold/silver ETFs, the Nifty 50, and alt investment funds.

Policy

• The Aam Aadmi Party (in opposition to the BJP) accused the BJP of falsifying Delhi's air quality numbers. The accusation says that the 300 average reading is actually lower than what is really in the capital. Aam Aadmi governed the capital from 2015 to 2025; they have been accused of doing nothing while being in power by current Delhi Chief Minister Rekha Gupta.

Invest in India's Tech Wave — The India Internet ETF (INQQ)

Eternal. NYKAA. Groww. Lenskart. Swiggy. Gain exposure to the “new age” technology leaders driving India's rise on the global stage -- all in a single trade. The India Internet ETF (NYSE: INQQ) allows investors to access a basket of innovative companies contributing to the future of the world’s most populous country.

From e-commerce to fintech to travel, the INQQ ETF taps into India’s rapidly expanding digital landscape and seeks to deliver a targeted way to participate in potential long-term growth. Invest with the INQQ ETF.

Click for current holdings and to learn more.

Reach out to [email protected] to reach our audience and see your advertisement here.

The Key Leaders Behind 2025’s Reforms

A lot of wrenches were thrown at India in 2025: the U.S. placed 50 percent tariffs on all Indian imports for its intake of Russian oil, and an armed conflict in Pakistan drew eyes from the highest echelons of power around the world. This past year, we’ve discussed deeply the reformations India took to move away from being a semi-isolationist economy, but have little talked about the people outside of Modi driving these changes.

The first bureaucrat was RBI Governor Malhotra who started the rate cutting cycle, restored liquidity, and eased banking norms. Finally, foreign investment into local investment banks is being permitted and those aforementioned Indian banks can now do M&A/IPO deals domestically. Recent challenges include the weakening rupee but $32 billion (₹2.9 trillion) in currency swaps and quantitative easing are a start at reversing the 10 percent decline in 2025. His counterpart, SEBI Chair Pandey, also focused on institutional repair by dialing down regulatory micromanagement. Amendments to mutual fund and insurance regulation should continue wealth growth for households while reforms to options trading has lowered volume by 20 percent which should save retail traders money as 91 percent of them never turned a profit. 

In Delhi, Cabinet Secretary Somanathan pushed deregulation through the slowest channel of all, the states. Decriminalization of business offenses, lighter licensing regimes and more flexible labor and land rules began taking hold, with early adoption of 38 reforms across 16 states. At NITI Aayog (a government think tank), Rajiv Gauba targeted trade-distorting quality controls and helped revive momentum around long-stalled labor reforms, while quietly preparing a broader cleanup of small-business regulation.

Finally, former RBI Governor Das moved into Modi’s private circle as an advisor. While his role and specific details are kept hidden, he’s emerged as the chief architect of a broader economic policy framework that covers areas from trade negotiations, rare earth supplies, and shipbuilding incentives. 

The key question is if the pace of reforms continues in 2026. Modi’s key state wins reduce the need for drastic change in order for BJP power consolidation. That being said, strong growth figures in the face of India’s largest trade partner being cut off — with growth being pinned on reform — make it an easy platform for Modi’s admin to continue economic reform. 

See you tomorrow.

Written by Yash Tibrewal. Edited by Shreyas Sinha.

Sponsor the next newsletter to reach tens of thousands of U.S.-based business-savvy professionals. Reach out to [email protected].

Could your business use expert insights to power growth in India? Reach out to [email protected] for a free introductory call.

Disclaimer: This is not financial advice or recommendation for any investment. The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.