Vittae Blogs

Author: Keerthana

  • Children’s Day: The One Money Lesson We Never Taught Them

     

    If you grew up in India, Children’s Day meant two things:
    a cultural program at school and maybe a Dairy Milk or a mango bite if your teacher was generous.

    What it never meant was a conversation about money.

    We were taught multiplication tables, moral science and how to draw the national flag but nobody explained what a loan is, how tax works, or why savings matter.

    And that gap follows us into adulthood.

    Most Indians learn money through mistakes, not education.

    Not because we’re careless but because nobody taught us how money works when we were kids.

    The First Sign: Pocket Money Economics

    Let’s start with something simple: pocket money.

    For many Gen Z and millennials, ₹50, ₹100, or ₹500 a month was our first “income.”

    Most of us spent it instantly on samosas, stickers, cricket cards, candies.

    No one asked us:

    • Should you save?
    • Should you budget?
    • Should you track spending?

    Why?
    Because adults assumed:
    “Kids don’t need to understand money. They’ll learn when they grow up.”

    Spoiler: we didn’t.

    According to a 2024 Axis Mutual Fund survey, 68% of young working Indians regret not learning money management earlier.

    Worse 42% of Indians start investing only after 30.

    That’s 10-12 years of lost compounding.

    And compounding isn’t just math, it’s time.
    Once you lose it, you don’t get it back.

    Why Money Habits Start Before 18

    A study by Cambridge University found something shocking:

    Children form core money behaviour by age 7.

    Yes, 7.

    By the time a child can tie their shoelaces, they’ve already developed patterns like:

    • impulse spending
    • delayed gratification
    • fear of risk
    • saving mindset

    So if we wait until they’re adults, we’re not teaching — we’re correcting damage.

    The Indian Reality: Education Without Financial Education

    India produces:

    • 11 lakh engineers every year
    • more MBAs than the US
    • and nearly 1 crore new graduates annually

    But only 17% of Indians are financially literate (National Centre for Financial Education, 2023).

    That means:

    We can solve calculus, write code, crack entrance exams…
    but many still don’t understand:

    • how interest rates actually work
    • how credit cards trap you
    • why FD isn’t the ultimate investment
    • or how inflation silently erodes wealth

    We teach kids how to earn.

    But never how to manage, multiply or protect what they earn.

    Where It Begins: The First Bank Account

    Remember your first bank account?

    You didn’t open it — your parents did.

    You didn’t understand why — they just said:

    “Good, a bank account is important.”

    But nobody explained:

    • What is a savings interest rate?
    • Why does inflation matter?
    • What does it mean when a bank says 4% annual return?

    Most kids assume:
    “Money in the bank grows.”

    Reality?
    If inflation is 6% and your bank pays 3.5%, your money is shrinking.

    Slowly. Quietly. Predictably.

    Then Comes the Credit Trap

    The next milestone?

    Your first credit card.

    The bank gives it with a smile.
    And a line that sounds harmless:

    “Minimum due: ₹500.”

    That line alone has trapped millions.

    RBI data (2025) shows:

    • Credit card outstanding debt crossed ₹2.45 lakh crore
    • Late fee + interest generates massive profits for banks
    • Average interest? 30–42% annually

    But again nobody teaches this in school.
    You learn it when you’re already paying for it.

    Literally.

    Children Watch More Than They Listen

    If parents fight about money, kids learn:
    “Money is stressful.”

    If parents hide expenses, kids learn:
    “Money is secret.”

    If parents openly budget, save, and invest, kids learn:
    “Money is a skill.”

    Financial behaviour is inherited — silently.

    So This Children’s Day: What Should Change?

    Not toys.
    Not chocolates.

    Habits. Conversations. Mindsets.

    Here are meaningful changes that actually shape wealth:

    1. Give Allowance With Structure, Not Blindly

    Instead of:
    “Here’s ₹500.”

    Try:

    • ₹300 for spending
    • ₹100 for saving
    • ₹100 for investing

    Kids learn allocation not consumption.

    2. Show Them Compounding With a Real Example

    Tell them:

    “If you invest ₹1,000 a month from age 12 at 12%, by age 30 you’ll have around ₹7.5 lakh.”

    If they start at 22 instead?

    Barely ₹3.5 lakh.

    Same amount.
    Same return.
    Time makes the difference.

    3. Teach Them the Cost of Delay

    Use a simple rule:

    Money grows when you wait. Debt grows when you delay.

    They’ll remember that more than a textbook paragraph.

    4. Make Investing Normal Conversation

    Stocks, mutual funds, budgeting –  these shouldn’t be adult-only topics.

    Kids who grow up around responsible financial conversation become adults who make better financial decisions.

    5. Let Kids Make Small Money Mistakes

    A ₹200 mistake at 12 is education.

    A ₹20 lakh mistake at 32 is disaster.

    Because Here’s the Truth

    The world our children will inherit is one where:

    • Inflation won’t slow down
    • Jobs won’t guarantee security
    • AI will replace routine work
    • Retirement will require planning, not luck

    Money skills will matter more than ever.

    Not because money is everything
    but because without it, everything becomes harder.

    So This Children’s Day, Forget the Balloons.

    Teach them:

    • how to save
    • how to invest
    • how to question financial offers
    • how to understand loans before signing them

    Teach them the one chapter the Indian education system skipped:

    Financial literacy.

    Because every child will eventually grow up.

    But not every adult learns how to handle money.

    Closing Line

    If childhood shapes habits, then Children’s Day shouldn’t only celebrate potential
    it should prepare it.

    Money isn’t the goal.

    But understanding money protects every dream they’ll ever build.

     

  • The Dot-Com Bubble: From Internet Gold Rush to $5 Trillion Wipeout

    In the late 1990s the internet landed like a rocket in Wall Street’s lap. Suddenly everyone believed the web would rewrite the rules of business, forever.
    What followed was one of the most spectacular booms and busts in market history.

    The Spark: Internet + IPOs + Wild Hopes

    The moment came in August 1995 when Netscape Communications Corp. went public. Its shares doubled on Day 1. That told the market: the name “.com” itself could generate value.
    From that moment, plenty of companies believed they could skip earnings, ignore profits—they just needed a website, a URL, and a story.

    Between 1995 and 2000 the number of internet-related IPOs exploded. Some data points:

    • The Nasdaq Composite (heavy in tech/internet stocks) rose from under 1,000 in 1995 to 5,048 by March 10 2000. (Wikipedia)
    • Analysts estimate that more than $5 trillion in market value was wiped out when the bubble burst. (International Banker)
    • The Nasdaq’s peak was on March 10, 2000. From that peak to the trough in October 2002 the index fell ~78%. (Goldman Sachs)

    In short: A new economy arrived. Everyone wanted a piece. The betting got extreme.

    Gold Rush Phase: Money Everywhere, Fundamentals No One Asked

    What caused the surge?

    • Cheap money: Interest rates were low; capital was flowing.
    • Hype: The internet was sold as “everything will be online”.
    • VC & IPO frenzy: Thousands of startups launched; many had no revenue but massive valuations anyway.
    • Retail participation: Ordinary investors jumped in, buying tech stocks because “this time is different”.

    Some metrics:

    • From early 1995 to March 2000 the internet sector’s public equity returns exceeded 1,000% in some cases. (pages.stern.nyu.edu)
    • According to the Corporate Finance Institute, the Nasdaq went from ~751.49 in Jan 1995 to ~5,132.52 by March 2000—an increase of around 582%. (Corporate Finance Institute)
    • Margin debt (borrowing to buy stocks) peaked around 2000’s dollars at ~$300 billion (equivalent ~500 billion today). (Modern Wealth Management)

    Here’s how the fever pitch looked:

    “We’re all going online. This company sells pet supplies via the web? It’s the future.”
    Sound ridiculous now? Yes. But then investors bought it—and rewarded the narrative with big money.

    Valuations Went Mad

    By 2000, the market wasn’t asking “What’s the price-earnings ratio?” The question was “What’s the story?”
    Companies with little or no revenue were valued like banks. Stock prices jumped even when the business was still figuring out how to survive.

    To give you a sense:

    • The Nasdaq’s peak of 5,048 in March 2000 was more than 5× the level of just five years earlier.
    • Some tech stocks had P/E (price to earnings) ratios of 200× or more—unheard of for sustainable businesses. (Risk Concern)
    • Many IPOs opened with huge first-day gains or floated at high valuations before meaningful profits.

    The mindset: Growth at all cost. If you’re losing money today, you’ll make millions tomorrow.
    Except many never did.

     The Turn: What Went Wrong

    Booms don’t last forever. The dot-com era had several under-the-surface cracks:

    • Many companies burned cash fast and had no clear path to profit.
    • The Federal Reserve raised interest rates around 2000 (tightening money). (Modern Wealth Management)
    • Investors began asking tough questions: “How does this business make money?”
    • Margin loans, speculative bets and IPOs all started turning into risk.
    • Lock-up expirations (once insiders could sell) began, and optimism began to fade. (pages.stern.nyu.edu)

    The crash kicked off when the Nasdaq peaked (March 10, 2000). After that the slide started.

    Crash Stats

    Metric Peak Trough Approximate Drop
    Nasdaq Composite 5,048 (Mar 10 2000) (Goldman Sachs) ~1,114 (Oct 9 2002) (Wikipedia) ~78% down
    Market Value Lost — — ~$5 trillion + (International Banker)

    When the large tech stocks fell, many smaller companies collapsed entirely. Some examples:

    • Pets.com (famous mascot, huge hype) folded within months of its IPO. (encyclopedia.pub)
    • Many startups that seemed like legends disappeared into nothing.

     The Broader Effect: This Was a Stock-Market Event, Not Just Tech

    The dot-com bubble wasn’t confined to a few internet companies it pulled in the whole market.

    • The S&P 500 hit a record close of ~1,527.46 in March 2000. (Barron’s)
    • After the crash, the S&P lost about half its value by late 2002. (Barron’s)
    • The Dow Jones also dropped for several years. The correction dragged the economy into recession in 2001. (Wikipedia)

    So this wasn’t a niche event. The technology mania pulled in mainstream markets, investor wealth, and expectations.

     Recovery and Lessons: What Survived and What From It We Learn

    Recovery took time. For example:

    • The Nasdaq didn’t see comparable highs again until April 2015. (Goldman Sachs)
    • Many tech survivors: Amazon.com, Inc. evolved into a gigantic business; others vanished.
    • Many workers, investors and entrepreneurs learned the hard way: hype doesn’t equal value.

    Here are some key lessons:

    A) Fundamentals still matter.
    Even if you’re building the “next big thing,” revenue, profit, and business model eventually matter.

    B) Valuations matter.
    The higher you pay, the harder it is to justify. Buying at peak valuations gives little margin for error.

    C) Beware the narrative.
    When “everyone” believes, the risk is often already baked in. The line between vision and hype becomes thin.

    D) Patience is underrated.
    Some companies survived because they focused on building real businesses, not just chasing the next IPO.

    Why It’s Still Relevant Today

    It’s 2025. Tech valuations are high. AI, deep-learning, Web3, and other buzzwords dominate headlines. So the dot-com bubble matters for this reason: history doesn’t repeat exactly—but it rhymes.

    • The Shiller CAPE (cyclically adjusted P/E) ratio recently hit levels comparable to 2000. (markets.businessinsider.com)
    • Margin debt, speculative flows and hype machine appear again in different form (e.g., crypto, SPACs, AI).

    So if you’re investing today, keep one question close: when the story is glowing, what are the numbers saying?

     The Human Element

    Beyond the charts and data, the dot-com bubble is a story about raw human emotion greed, fear, belief.

    When valuations soar because “everyone knows this will work,” that’s when risk is often disguised.
    When investors stop asking “How does this make money?” and start thinking “How fast can I make money?”, things get dangerous.

    Innovation is powerful. But even disruptive ideas must cross the bridge of business success.
    The internet changed everything but it didn’t bestow infinite value on every startup that called itself “.com”.

    So as you face the next big wave, remember: great technology doesn’t guarantee great returns but great discipline, business sense and strategy often do.

    Understanding the dot-com bubble is not just history it’s a guide to recognising the next one.

     

  • Stop Selling, Start Guiding: Why the Smartest Advisors Now Act More Like Therapists

    Money is emotional.
    We hate admitting it but it is.

    No one checks their portfolio and says, “Hmm, this fund’s alpha looks weak.”
    They say, “Why is everything falling again?”

    And that’s the real problem with how financial advice still works today.

    The Old Way: Sell First, Talk Later

    Most advisors still think their job is to recommend products the “right” mutual fund, the “best” ULIP, or that “exclusive” PMS.
    But here’s the truth: people rarely lose money because they picked the wrong product.
    They lose money because they reacted wrong.

    When markets fall, fear kicks in.
    When everyone else is making money, greed follows.

    That’s not a finance problem.
    That’s a psychological problem.

    And yet, the industry keeps rewarding the ones who sell more, not the ones who guide better.

    Investors Don’t Need a Distributor ,They Need a Decoding Partner

    The most successful advisors today aren’t the loudest sellers.
    They’re the ones who understand how people think, feel, and panic about money.

    They don’t throw ten product brochures at you.
    They ask, “What makes you anxious about your finances?”

    Because, whether we like it or not, money touches everything relationships, confidence, even sleep.
    So what’s the point of chasing returns if your client can’t sleep at night?

    The Numbers Back It Up

    Vanguard did a massive study to understand what actually drives investor outcomes and it wasn’t product selection.
    It was behaviour.
    Their Advisor’s Alpha research found that behavioural coaching alone adds up to 1.5%–2% in extra annual returns just by keeping clients calm, consistent, and invested when markets get messy.

    That’s nearly the same as the difference between an “average” and a “top-performing” fund.

    Go one step further, and the full advisor framework (behavioural coaching, rebalancing, cost management) adds around 3% in net returns per year pure alpha created by good guidance, not product picking.

    So yeah, empathy literally pays.

    Advisors as Financial Therapists

    Think about what a great therapist does:
    They listen. They help you understand your triggers. They stop you from making choices that hurt you long term.

    Now swap the word emotion with investment decision and that’s exactly what a great financial advisor should do.

    Instead of saying, “Let’s invest in this because it’s performing well,”
    they say, “Let’s talk about why you panic every time markets fall.”

    That’s not being soft.
    That’s being smart.

    Because when you manage behaviour, you automatically manage money better.

    Empathy Has an ROI

    Here’s what’s wild empathy isn’t just good for clients. It’s great for business.

    Advisors who focus on guiding rather than selling keep clients almost 50% longer, according to industry research.
    And retention pays increasing client retention by just 5% can boost profits by 25% to 95%.
    That’s because loyal clients invest more, stay longer, and refer more.

    It’s not about flashy returns it’s about emotional trust.

    And once you’ve built that, you’re no longer “one of many advisors.”
    You become the person they call before making any major financial decision.

    So What Needs to Change?

    If you’re an advisor, start here:

    • Listen more than you speak. People want to be heard before being advised.
    • Ask better questions. Not Where do you want to invest? But Why do you want to invest?
    • Redefine success. The best metric isn’t AUM growth it’s how calmly your clients sleep at night.

    And for investors?
    Stop looking for someone who promises the highest returns.
    Find someone who helps you stay sane when the markets don’t.

    The Future of Financial Advice Is Deeply Human

    AI and robo-advisors can already pick funds and rebalance portfolios faster than any human.
    But what they’ll never replace is trust.

    In fact, when Vanguard compared clients of robo-advisors vs. human advisors, people with human guidance believed their advisor added nearly 33% of their returns — compared to just 12% for robo platforms.

    That’s not about math. That’s about connection.

    AI can’t hear fear in your voice or calm you down after a bad quarter.
    That’s the human moat.

    Tomorrow’s top advisors won’t be product experts they’ll be behavioural translators.
    People who help you understand your relationship with money.
    People who stop you from making panic-driven mistakes that cost far more than any fee ever could.

    Final Thought

    Your advisor shouldn’t just be someone who sells you investments.
    They should be the person who helps you stay rational when your emotions want to take over.

    Because great advice isn’t about beating the market.
    It’s about understanding the person facing it.

     

  • Chennai vs Bengaluru: Two Cities, Two Dreams, Which One’s Worth Buying a Home In?

    When Arjun and Priya graduated from their B-school in 2016, they both had similar dreams: a great tech job, a modern apartment, and a city that felt like home.
    Eight years later, Arjun works in Bengaluru’s Outer Ring Road corridor, and Priya in Chennai’s OMR tech belt, and they’re both thinking about buying their first home.
    But as they started hunting, one thing became clear:

    The price of a dream home depends not just on square feet but on the city’s heartbeat.

    The Cities That Built India’s Middle Class Dreams

    Both Bengaluru and Chennai have shaped India’s modern professional class but in very different ways.

    • Bengaluru is India’s startup capital, fast, ambitious, buzzing with energy. Over the last decade, it’s become the most expensive real estate market in South India, driven by tech salaries and investor demand.
    • Chennai, on the other hand, moves at a steadier rhythm. It’s industrial, cultural, and more grounded. Its real estate market has quietly grown with less hype, more stability.

    But in 2025, these two markets look more different than ever not just in price, but in how they’re evolving.

    Why Bengaluru Still Feels Like a Gold Rush

    Bengaluru’s skyline tells the story of India’s tech boom.
    Drive through Whitefield or Sarjapur, and you’ll see glass towers, coworking hubs, and billboards screaming “2BHK starting ₹1.2 crore.”

    And people are still buying. Why? Because Bengaluru continues to attract young professionals with rising incomes.
    The city adds nearly 1.5 lakh IT jobs every year, and that directly drives housing demand.

    But that demand comes with a cost:

    • Prices in Indiranagar or Koramangala hover around the ₹10,000–₹14,000 per sq ft mark.
    • In suburbs like Sarjapur and Electronic City, it’s ₹6,000–₹8,000 — still expensive compared to a decade ago.
    • The average price of a 2BHK apartment in a decent neighborhood? Between ₹85 lakh to ₹1.2 crore.

    The upside? Property appreciation.
    Bengaluru’s average capital value growth over the last five years has been around 7–9% annually, higher than most Indian metros.
    For investors, that’s solid. For homebuyers, it’s a stretch.

    Chennai’s Slow Burn Story

    Priya’s home-hunting experience in Chennai was very different.
    The city’s energy is calmer. Agents talk more about “community” than “returns.”

    Chennai’s real estate doesn’t move fast but it moves sure.
    In places like Velachery, Sholinganallur, and Pallikaranai, you can still find 2BHK flats in the ₹60–₹90 lakh range.
    Prime areas like Adyar and Mylapore touch ₹15,000 per sq ft, but that’s the exception, not the rule.

    The real charm lies in its stability. While Bengaluru prices swing with tech cycles, Chennai has been the tortoise in this race slow, steady, and quietly profitable.

    Over the last five years, Chennai’s real estate has appreciated by 5–6% annually, but with far less volatility.
    And because rentals are lower, the rental yield (return on rent vs price) is slightly better in mid-range areas  around 4–6%.

    Infrastructure: The Invisible Price Tag

    Arjun often jokes that in Bengaluru, he spends more time on the road than in his apartment.

    That’s no exaggeration commuting across the city can take over two hours.
    The new metro corridors (Whitefield, ORR, Kanakapura) are easing things, but Bengaluru’s infrastructure still lags behind its growth.

    Chennai, by contrast, is quietly catching up and in some areas, even overtaking.
    The Chennai Metro Phase 2 expansion is reshaping how people move across the city. New flyovers, airport expansion, and the Peripheral Ring Road project are opening up once-ignored suburbs like Tambaram East and Thirumazhisai.

    For Priya, this mattered more than appreciation numbers.I’d rather live 20 minutes from work in Chennai than spend two hours in traffic in Bengaluru,

    And for many homebuyers today, livability is the new luxury.

    Work, Lifestyle, and the Human Equation

    Let’s face it a city isn’t just an investment. It’s where you build your life.

    Bengaluru offers energy, networking, cafes, and a cosmopolitan buzz. It’s where startups meet investors over cold brews. But it also demands a price in rent, in traffic, and in peace of mind.

    Chennai offers space, stability, and a slower pace. It may not have Koramangala’s café culture, but it has something deeper a sense of belonging and safety. Families still prefer Chennai for long-term living.

    Which City Wins Financially?

    Let’s look at it simply if you had ₹1 crore to spend:

    • In Bengaluru, that gets you a 2BHK in the outer suburbs — likely 1,200–1,400 sq ft.
    • In Chennai, you could get a slightly larger 2BHK or even a small 3BHK, depending on location.

    Rental returns are marginally higher in Chennai (4–6%) vs Bengaluru (3.5–5%), but Bengaluru still wins in capital appreciation potential.

    The smarter strategy?
    If you’re looking to live, Chennai offers better cost of living and lifestyle value.
    If you’re looking to invest, Bengaluru still offers stronger long-term ROI provided you can stomach the volatility.

    The Emotional Side of Home-Buying

    Every city sells a dream. Bengaluru sells ambition. Chennai sells security.

    Arjun, after months of searching, decided not to buy in Bengaluru yet. Prices felt inflated, and remote work had made him question whether he needed to live in the city at all.

    Priya, meanwhile, bought a 3BHK near Sholinganallur for ₹92 lakh. She’s not thinking about resale she’s thinking about her morning walk, her parents visiting, and the smell of filter coffee at home.

    In the end, that’s the real difference:

    • Bengaluru appeals to the investor in you.
    • Chennai appeals to the human in you.

    Final Verdict: The Two Cities, Two Futures

    Factor Bengaluru Chennai
    Avg. property cost (mid-range) ₹8,000–₹10,000 per sq ft ₹6,000–₹8,000 per sq ft
    Capital appreciation 7–9% annually 5–6% annually
    Rental yield 3.5–5% 4–6%
    Lifestyle cost Higher Moderate
    Infrastructure Improving but stressed Expanding and balanced
    Best for Long-term investors, tech professionals Families, steady professionals, end-users

    Takeaway

    The truth? There’s no single “winner” between Chennai and Bengaluru.
    It depends on what you value more — growth or grounding, returns or reliability.

    If you want fast appreciation and are okay with a bit of chaos, Bengaluru is your play.
    If you want peace, stability, and a slightly better life balance, Chennai might quietly outperform your expectations.

    In a world chasing speed, maybe slow and steady isn’t such a bad investment after all.

    You had ₹1 crore, which city would you choose?

     

  • India’s Hotel Industry: From Collapse to Comeback

     

    The Indian hotel industry has lived through one of the most dramatic shifts in recent memory. Before 2020, it was a growth engine powering jobs, travel, and foreign exchange. Then came COVID-19, which brought hotels across the country to a standstill. Empty lobbies, shuttered kitchens, and mass job losses became the new reality.

    And yet, just a few years later, the industry is not only back on its feet but stronger than before. Occupancy levels are rising, revenues are breaking records, and investors are pouring money into new projects. In fact, hospitality is once again one of the fastest-growing contributors to India’s GDP and employment.

    This blog explores the journey of India’s hotel industry: the pre-COVID boom, the pandemic collapse, the dramatic recovery, and what makes Chennai one of the country’s most exciting hotel markets right now.

    The Pre-COVID Boom: Growth, Jobs, and Global Visitors

    In the decade leading up to 2020, India’s hotels were on a steady climb.

    • Contribution to the economy: In 2019, tourism and hospitality contributed about 9.2% of India’s GDP, valued at nearly US$194 billion.
    • Jobs engine: The sector supported over 80 million jobs, roughly 1 in 12 jobs in the country.
    • Foreign arrivals: India welcomed 10.9 million international tourists in 2019, generating US$30 billion in foreign exchange earnings.
    • Healthy performance: Average occupancy in major cities hovered around 65%, and both ADR (Average Daily Rate) and RevPAR (Revenue per Available Room) were on the rise.

    With new hotels opening in metros and Tier-II cities alike, the industry was buzzing with optimism.

    The COVID Crash: Empty Rooms, Silent Corridors

    Then came March 2020. Within weeks, hotels that were running at healthy occupancies saw bookings vanish.

    • Occupancy fell below 10% during lockdown months.
    • Revenue collapsed by over 60%, wiping out gains of the previous decade.
    • The sector’s GDP contribution shrank by nearly 40%, and job losses crossed 20 million.
    • Foreign arrivals dropped from 10.9 million in 2019 to just 2.7 million in 2020 — a 75% collapse.

    Many hotels shut temporarily. Others tried creative survival strategies — turning into quarantine centers, launching cloud kitchens, or offering “work-from-hotel” packages. But the industry as a whole faced its toughest period ever.

    The Big Comeback: Powered by Domestic Travel

    The recovery began in late 2021 and accelerated through 2022–23, led not by foreign tourists but by Indians themselves.

    • Domestic travel exploded: In 2023, Indians made 2.5 billion domestic trips, driving demand for hotels in metros, resorts, and smaller towns.
    • Occupancy bounced back to 63–66% nationwide in 2023, almost at pre-COVID levels.
    • Room rates climbed higher than before: ADR rose to ₹7,500–8,000, above 2019 averages.
    • RevPAR surpassed 2019, proving that hotels weren’t just filling up rooms — they were earning more per guest.
    • Investments surged: In 2023–24, over 14,400 branded rooms were added, and total inventory is projected to cross 300,000 by 2029.

    By FY24, hotel revenues were expected to grow 13–15%, making hospitality one of India’s fastest-growing service industries again.

    How the Industry Changed After COVID

    COVID didn’t just pause growth, it reshaped how hotels operate.

    1. Technology at the core: Mobile check-ins, digital menus, and AI-driven pricing are now standard.
    2. Domestic demand focus: Packages for weddings, staycations, and weekend getaways became core revenue drivers.
    3. New revenue streams: Hotels diversified into co-working, wellness retreats, and food delivery.
    4. Sustainability push: Energy efficiency, green certifications, and eco-conscious practices are increasingly important to travellers.
    5. Expansion beyond metros: Tier-II and Tier-III cities have become the new growth frontier.

    The post-pandemic hotel industry is leaner, more digital, and more guest-focused than it was before 2020.

    Spotlight on Chennai: A City That Bounced Back Strong

    Chennai offers one of the best examples of how Indian cities have recovered and adapted.

    Strong recovery performance

    • In Q1 2024, Chennai recorded the highest RevPAR growth in India at 21.7% year-on-year.
    • By early 2025, RevPAR growth remained strong at around 18.7% YoY.
    • Occupancy levels often cross 65–70% during peak periods, boosted by a mix of business and leisure demand.

    Demand drivers

    • Corporate travel: Chennai’s IT, automotive, and manufacturing industries create steady hotel demand.
    • Medical tourism: Patients from across India, Africa, and the Middle East travel here for treatment, boosting long-stay and family stays.
    • Events & exhibitions: Major conferences like the India Leather Fair and USICON bring spikes in hotel bookings.

    New supply and investments

    • India opened 36 new hotels (2,316 keys) in Q1 2024, with Chennai among the metros benefiting.
    • A major milestone: GRT Hotels acquired the 178-room Asiana Hotel on OMR for ₹153 crore in 2025, with renovations underway and partial reopening planned for 2026.

    Outlook for Chennai

    With airport expansion, a growing IT corridor, and proximity to leisure destinations like Mahabalipuram, Chennai is set to remain one of South India’s most resilient and profitable hotel markets.

    Why Hotels Matter to India’s Economy

    Hotels aren’t just about rooms and restaurants — they’re a pillar of India’s growth story.

    • GDP impact: Hospitality is projected to contribute 10% of GDP by 2028 and reach US$1 trillion by 2047.
    • Employment: It remains one of India’s largest job creators, directly and indirectly supporting millions of livelihoods.
    • Foreign exchange: Tourism earned India US$25 billion in 2023, recovering from the pre-COVID peak of US$30 billion in 2019.
    • Regional development: New hotels in smaller cities are creating fresh hubs for jobs, infrastructure, and local economies.

    • Contribution of Tourism & Hospitality to India’s GDP & Employment:

    • Expected Revenue Growth (India):

    • Growth of room inventory:

    India & Chennai Hotel Industry Post-COVID

    Metric Data / Value Time Period Notes / Source
    India: New branded hotel rooms added ~ 14,400 rooms added in 2024 Full year 2024 India’s branded hotel room inventory to cross 300,000 by 2029; much of new additions are outside top 10 markets. (India Brand Equity Foundation)
    India: Inventory projection Branded hotel room inventory to cross 300,000 keys by 2029 Forecast Driven by religious/leisure tourism and expansion into Tier-II/III cities. (India Brand Equity Foundation)
    India: RevPAR & revenue growth RevPAR up 11.4% YoY in Q1 2024; ADR up ~8.5% over Q1 2023 Q1 2024 JLL report; India as a whole. (JLL)
    India: FY24 revenue growth expected ~ 13-15% revenue growth in FY24 FY24 ICRA / IBEF reports. (India Brand Equity Foundation)
    India: Contribution to GDP Direct contribution was US$ 40 billion in 2022; expected ~US$ 68 billion by 2027; reach US$ 1 trillion by 2047 2022; projections to 2027, 2047 From Hotel Association of India (HAI) / Benori Knowledge “Vision 2047” report. (The Economic Times)
    India: Investments in 2024 (1H) ~ US$ 93 million in hotel investments in first half of 2024 H1 2024 Source: JLL / IBEF. (India Brand Equity Foundation)
    India: New keys added Q1 2025 ~9,500 keys added; 31 branded hotels with ~3,253 keys commenced operations Q1 2025 Business Standard / JLL. (Business Standard)
    Metric (Chennai) Data / Value Time Period Notes / Source
    RevPAR growth 21.7% YoY growth in Q1 2024 over Q1 2023 Q1 2024 Chennai registered the strongest RevPAR growth among Indian metros. (JLL)
    RevPAR growth (another period) ~ 18.7% RevPAR growth Q1 2025 vs Q1 2024? Chennai reported ~18.7% RevPAR growth in that period. (Business Standard)
    New hotel openings in India & effect in Chennai In Q1 2024: 36 new hotels opened, with 2,316 keys; many in Tier II/III cities Q1 2024 Chennai would have been among metros getting benefit; but exact keys in Chennai from those openings not broken out. (JLL)
    Hotel acquisition / new supply in Chennai Asiana Hotel (178 rooms) on OMR acquired by GRT Hotels & Resorts for ₹153 crore; plans to open partially (50-60 rooms) by March 2026 after renovation. (The Times of India) Acquisition in 2025; reopening planned 2025-26 Helps to understand new supply inflows.

     

    The Road Ahead

    From silent corridors in 2020 to record-breaking revenues in 2024, the Indian hotel industry’s journey has been one of resilience and reinvention. Domestic travellers fueled the comeback, while technology and sustainability shaped a new playbook for growth.

    Chennai’s success story highlights what the future may hold: diverse demand streams, strong investments, and consistent performance.

    The message is clear: India’s hotels aren’t just back in business but driving the country’s economic future.

     

  • Tamil Nadu 2025: India’s Powerhouse Economy and the Next Big Bet for Investors

    why Tamil Nadu stands out as one of India’s most dynamic and investor-friendly economies from its thriving industrial base and robust infrastructure to a skilled workforce and proactive governance driving global investment.

    The Southern Growth Engine of India

    Tamil Nadu  India’s second-largest state economy  has become a model for sustainable industrialization and foreign investment. With a Gross State Domestic Product (GSDP) exceeding ₹32 lakh crore ($390 billion) in FY 2024–25, it contributes over 8.5% to India’s national GDP.

    • Ranked among India’s top three states in FDI inflows (DPIIT, 2025)
    • Boasts a diversified economic base: automobiles, electronics, textiles, IT, renewable energy
    • Urbanization rate: 52%, among the highest in India
    • Per capita income (2025): ₹2.74 lakh (~$3,300), 1.4× the national average

    1. Economic Snapshot: Growth That Outpaces the Nation

    1.1 Tamil Nadu’s Economic Performance at a Glance

    Indicator (FY 2024–25) Tamil Nadu India Average
    GSDP Growth Rate 8.2% 7.0%
    Per Capita Income ₹2.74 lakh ₹1.94 lakh
    FDI Inflows (2024) $9.6 billion —
    Unemployment Rate 3.5% 4.3%
    Industrial Contribution to GSDP 37% 29%

    1.2 Fiscal Strength and Governance

    • Maintains one of India’s highest own tax-to-GSDP ratios (8.1%)
    • Fiscal deficit well below 3% of GSDP
    • Consistent AA+ credit ratings by domestic agencies

    Tamil Nadu’s fiscal prudence has helped it sustain steady capital expenditure in infrastructure, social welfare, and industrial development. It remains one of the few Indian states with a strong manufacturing–services equilibrium.

    2. Key Growth Drivers: The Pillars of Tamil Nadu’s Economy

    2.1 Automotive and Electric Vehicles (EVs)

    • Known as “The Detroit of India” — contributes 35% of India’s automobile exports
    • Major players: Hyundai, Ford, Daimler, Renault-Nissan, Ola Electric, TVS Motors
    • EV investments (2023–2025): $5 billion+ in manufacturing clusters (Hosur, Oragadam)

    The state is rapidly transitioning from traditional auto manufacturing to EV ecosystems, supported by dedicated policies like the Tamil Nadu EV Policy 2023 and new battery recycling infrastructure.

    2.2 Electronics and Semiconductors

    • India’s top electronics exporter (2024), accounting for 25% of national output
    • Foxconn, Pegatron, and Tata Electronics expanding facilities for Apple supply chains
    • Electronics exports: $10.5 billion in FY 2024
    • Special focus zones: Sriperumbudur, Hosur, Coimbatore

    2.3 Textiles and Apparel

    • Traditional strength employing over 6 million people
    • Accounts for 33% of India’s textile exports
    • Key clusters: Tiruppur (knitwear), Erode (powerlooms), Karur (home textiles)

    2.4 IT & Knowledge Economy

    • Second-largest software exporter in India after Karnataka
    • Chennai and Coimbatore host 2,000+ IT/ITeS firms
    • IT exports (2024): $24 billion, growing 10% annually
    • Rapid growth in AI, fintech, and analytics startups

    2.5 Renewable Energy and Sustainability

    • Leader in wind energy capacity (10 GW)
    • Expanding into solar and green hydrogen corridors
    • Target: 50% renewable capacity by 2030

    Tamil Nadu’s proactive renewable policies and coastal geography make it a front-runner in India’s energy transition, attracting global sustainability investors.

    3. Infrastructure and Logistics: The Competitive Backbone

    3.1 Ports and Trade Corridors

    Infrastructure Details
    Major Ports Chennai, Ennore, Tuticorin
    Export Volume (2024) $110 billion
    Industrial Corridors Chennai–Bengaluru, Madurai–Thoothukudi, Coimbatore–Salem

    3.2 Transport and Urban Mobility

    • Road network: 2.7 lakh km (highest density in India)
    • Metro and suburban connectivity: expanding across Chennai and Coimbatore
    • Airports: 4 international (Chennai, Coimbatore, Madurai, Trichy)

    4. Investment Climate: FDI, Policy, and Ease of Doing Business

    4.1 Foreign Direct Investment Trends

    • Total FDI (Apr 2000–Mar 2025): $52 billion (DPIIT)
    • 3rd in India after Maharashtra and Karnataka
    • 2024 saw 23% YoY growth in FDI inflows

    4.2 Business Environment

    • Ranked #1 in NITI Aayog’s Export Preparedness Index (2024)
    • Single-window clearance system (TN Guidance) for investors
    • 50+ operational SEZs, 100+ industrial parks

    5. Workforce and Skill Advantage

    5.1 Human Capital Strength

    Metric Value
    Literacy Rate 82%
    Employable Workforce 37 million
    Engineering Graduates Annually 500,000+

    A strong technical education ecosystem, with over 500 engineering colleges, fuels industries like electronics, IT, and manufacturing. Tamil Nadu’s labor productivity ranks among the top in India.

    6. Government Initiatives and Incentives

    6.1 Industrial Policies

    • Tamil Nadu Industrial Policy 2021
    • Tamil Nadu Start-up & Innovation Policy 2023
    • Special incentives for MSMEs and GreenTech investors

    6.2 Investment Hubs

    • Global Investors Meet 2024: $62 billion worth of MoUs signed
    • Dedicated clusters for EVs, electronics, and renewables
    • Collaboration with Japan, Germany, and Singapore for advanced manufacturing

    7. Comparative Edge: How Tamil Nadu Stacks Up

    State GSDP ($B) FDI 2024 ($B) Export Share (%) Ease of Doing Business Rank
    Tamil Nadu 390 9.6 10.5 Top 3
    Karnataka 420 11.4 12 Top 2
    Maharashtra 530 13.7 15 Top 1
    Gujarat 380 8.9 10 Top 5

    Tamil Nadu may not be the largest state economy, but its balanced industrial diversification, infrastructure, and human capital create a stability premium that investors prize.

    8. Risks and Challenges

    • Energy demand pressure from rapid industrialization
    • Water stress in key industrial zones
    • Urban-rural income disparity
    • Regulatory complexity for small enterprises

    While Tamil Nadu’s fundamentals are robust, addressing these challenges through smart urban planning and sustainable infrastructure remains key to maintaining investor confidence.

    Conclusion: Why Tamil Nadu Is the Smart Investor’s Choice

    Tamil Nadu exemplifies balanced growth industrial might, digital innovation, fiscal discipline, and a skilled workforce. For investors eyeing India’s long-term growth story, Tamil Nadu offers not just opportunity, but stability, policy continuity, and scale.

    Invest where growth meets governance. Tamil Nadu is not just growing it’s leading India’s next economic chapter.

  • Your ‘Healthy’ Breakfast is a Lie: The Dark Finance of ‘Health’ Foods

    The ₹10,000-Crore Health Food Industry: An Overview

    India’s health food market is experiencing significant growth, with projections indicating a market size of ₹10,000–12,000 crore, expanding at an annual rate of approximately 25%. This surge is driven by increasing consumer awareness about health and wellness, leading to a higher demand for nutritious packaged foods.

    Welcome to India’s health food industry, where your good intentions are a business model.

    Brand-wise Price Breakdown and Markup Analysis

    Let’s examine the retail prices and estimated ingredient costs of popular health food products:

    BrandProduct TypeRetail Price (₹)Estimated Ingredient Cost (₹)Markup (%)
    Yoga BarProtein Muesli (350g)₹375₹130~188%
    EpigamiaGreek Yogurt (400g)₹360₹100~260%
    The Whole TruthGranola (350g)₹450₹150~200%
    Slurrp FarmMillet Pancake Mix (177g)₹177₹60~195%
    Tata SoulfullMillet Muesli (500g)₹373₹180~107%
    True ElementsGranola (900g)₹480₹140~243%
    NutriorgOrganic Honey (250g)₹213₹70~204%
    Max ProteinProtein Bar (Pack of 10)₹399₹120~232%

    Note: The estimated ingredient costs are based on publicly available data and may vary.

    State-wise Popularity and Regional Preferences

    Consumer preferences for health food brands vary across different states:

    • Yoga Bar: Highly popular in urban centers like Bengaluru and Mumbai, where there’s a strong inclination towards protein-rich snacks.
    • Epigamia: Favored in metropolitan areas such as Delhi and Mumbai, especially among health-conscious individuals seeking high-protein dairy alternatives.
    • The Whole Truth: Gaining traction in Tier-2 cities like Pune and Ahmedabad, where there’s a growing demand for clean-label products.
    • Slurrp Farm: Popular in southern states like Tamil Nadu and Kerala, known for their traditional millet-based diets.
    • Tata Soulfull: Widely accepted across the country, with a significant presence in states like Maharashtra and Karnataka.
    • True Elements: Preferred in urban areas with a focus on fitness and wellness, such as Delhi NCR and Bengaluru.
    • Nutriorg: Gaining popularity in northern states like Punjab and Himachal Pradesh, known for their organic farming practices.
    • Max Protein: Widely consumed across India, particularly in cities with a high density of fitness enthusiasts.

    Sales Volumes and Market Penetration

    While specific sales volumes for each brand are proprietary, industry reports indicate:

    • Yoga Bar: Estimated annual sales of over ₹100 crore, with a significant market share in the protein bar segment.
    • Epigamia: One of the leading Greek yogurt brands in India, with a distribution network spanning over 20,000 retail outlets.
    • The Whole Truth: Rapidly expanding its footprint, with a presence in over 10,000 stores nationwide.
    • Slurrp Farm: Witnessing a surge in demand, particularly in Tier-2 and Tier-3 cities, with online sales contributing to a significant portion of its revenue.
    • Tata Soulfull: Benefiting from the parent company’s extensive distribution network, ensuring widespread availability across the country.
    • True Elements: Strong online presence, with a growing number of retail partnerships in metropolitan areas.
    • Nutriorg: Expanding its reach through e-commerce platforms and organic retail chains.
    • Max Protein: Dominates the protein bar market, with a presence in major retail chains and online platforms.

    Consumer Spending Trends: Metro vs. Tier-2/3 Cities

    Consumer spending on health foods varies significantly between metro and Tier-2/3 cities:

    • Metro Cities (Delhi, Mumbai, Bengaluru, Chennai): Higher disposable incomes lead to increased spending on premium health food products. Consumers in these cities are more inclined to invest in brands that offer perceived health benefits and align with their wellness goals.
    • Tier-2/Tier-3 Cities (Pune, Ahmedabad, Jaipur, Kochi): While the spending capacity is comparatively lower, there’s a growing awareness and demand for health foods. Consumers in these regions are becoming more health-conscious, leading to an uptick in the consumption of products like millet-based snacks and organic honey.

    The Hidden Costs: Marketing vs. Nutrition

    The significant markup on health food products is often attributed to:

    • Branding and Packaging: Attractive packaging and branding strategies contribute to the premium pricing of these products.
    • Marketing and Endorsements: Celebrity endorsements and influencer marketing campaigns increase brand visibility but also add to the overall cost.
    • Distribution Channels: The cost of reaching a wide consumer base through various retail and online platforms impacts the final price.
    • The Data Speaks – ICMR 2023: 42% of packaged “healthy” foods exceeded recommended sugar/sodium limits , Statista 2024: Only 23% of consumers check nutrition labels
    • India’s functional foods market projected to reach USD 8.5 billion by 2027
    • The takeaway: most of the “health” we’re buying is a marketing story

    DIY Alternatives: Cost-effective and Nutritious

    For consumers looking to reduce expenses without compromising on nutrition, homemade alternatives are a viable option:

    • Granola: A homemade granola mix can be prepared using oats, honey, nuts, and seeds, costing approximately ₹100–₹120 for a batch that serves multiple portions.
    • Greek Yogurt: Making Greek yogurt at home involves fermenting milk with specific bacterial cultures, resulting in a cost of about ₹50–₹70 per batch.
    • Protein Bars: Homemade protein bars can be crafted using ingredients like oats, dates, nuts, and protein powder, with a cost ranging from ₹150–₹200 for a batch of 10 bars.

    Navigating the Health Food Landscape

    While the health food industry in India offers a plethora of options catering to the growing demand for nutritious foods, consumers should be discerning:

    • Read Labels: Understand the ingredients and nutritional information before purchasing.
    • Compare Prices: Evaluate the cost-effectiveness of branded products versus homemade alternatives.
    • Stay Informed: Keep abreast of industry trends and consumer reports to make informed choices.

    By being informed and mindful of marketing tactics, consumers can make choices that align with both their health goals and budget considerations.

    Final Thought

    Your “healthy” breakfast may not be about wellness it’s about marketing, convenience, and profit margins.

    Next time you pick up a ₹499 granola, ask yourself:

    “Am I eating for health or being sold a story?”

    Because often, the only thing these foods make lighter is your wallet, not your waistline.

  • Airbnb in India: The Tax Truth Nobody Told You

    Think you’re earning lakhs on Airbnb? Wait till you meet the taxman  

    That’s the reality no one tells you when you decide to rent out your flat in Goa, Delhi, or Bangalore. On the surface, Airbnb looks like an easy way to make money travelers book, you host, and you pocket the payout. But in India, the truth is far more complicated. Between GST, TDS, and income tax, your so-called “lakhs” shrink faster than you’d expect.

    The Dream vs. Reality

    Dream: List your flat → watch payouts hit your account → easy passive income.

    Reality: Every booking faces three hidden cuts:

    1. GST (Goods & Services Tax) – bumps up guest bills.
    2. TDS (Tax Deducted at Source) – Airbnb slices your payout before you see it.
    3. Income Tax – the final deduction when you file returns.

    Example: Your Airbnb dashboard shows ₹10 lakh income. After taxes, you may only keep ₹6–7 lakh.

    GST: The First Cut

    What is it? A tax on short-term rentals. If your Airbnb income crosses:

    • ₹20 lakh/year (₹10 lakh in some states like the Northeast) → GST registration is mandatory.

    Rates:

    • Below ₹7,500/night → 12% GST
    • Above ₹7,500/night → 18% GST

    Who pays? Guests. But the problem is it makes your stay more expensive.

    Example bills:

    • ₹6,500/night flat in Delhi → guest pays ~₹7,280 with GST + Airbnb fees.
    • ₹10,000/night villa in Goa → bill crosses ₹12,000.

    Interesting fact: Hotels charging below ₹1,000/night are GST-exempt. But Airbnb stays don’t get that relief, making budget hotels more attractive to price-sensitive travellers.

    TDS: The Second Cut

    What is it? A slice of your payout is collected upfront by Airbnb.

    • With PAN → 0.1% TDS
    • Without PAN → 5% TDS

    Example:

    • Earn ₹1,00,000 → ₹100 deducted (with PAN).
    • Earn ₹1,00,000 → ₹5,000 deducted (without PAN).

    This may seem tiny, but it adds up and messes with cash flow. Refunds only come during ITR filing.

    Fun fact: In FY2024, Airbnb issued lakhs of TDS certificates to Indian hosts. Many casual hosts (like students or retirees) were shocked to see deductions they hadn’t expected.

    Income Tax: The Final Bill

    Even after GST and TDS, your income is still taxable.

    From Budget 2025, Airbnb income is officially under Income from House Property.

    What you can claim:

    • 30% standard deduction (maintenance).
    • Property tax paid.
    • Up to ₹2 lakh home loan interest.

    Example:

    • Airbnb earnings: ₹12 lakh
    • Less 30% deduction: ₹3.6 lakh
    • Less property tax & loan interest: ₹2 lakh
    • Taxable: ₹6.4 lakh → if in 30% slab → ~₹2 lakh tax.

    Stat: Top hosts in Mumbai, Delhi, and Bangalore earn ₹1.5–2 crore/year. But their accountants spend just as much time filing returns as they do managing bookings.

    Real Host Stories

    • A Bangalore host saw ₹11,132 shrink by ₹605 due to TDS.
    • A Goa villa owner’s Airbnb showed ₹7.3 lakh income, but only ₹5.2 lakh credited after taxes.
    • Retirees renting spare rooms were stunned when GST notices landed in their inbox.

    Relatable fact: A big chunk of Indian hosts are NRIs and retirees who thought of Airbnb as “pocket money,” only to get pulled into tax compliance.

    Airbnb’s Moves in India

    To make compliance less painful, Airbnb has:

    • Partnered with H&R Block India for free GST tools (first year).
    • Auto-issued TDS certificates.
    • Grown massively—2024 bookings up 70% YoY in India.

    Despite the taxes, domestic tourism is booming. Treehouses, farm stays, and heritage homes are among the fastest-growing Airbnb categories.

    Why India ≠ The US

    Here’s the kicker: the US gives hosts a huge break that India doesn’t.

    The 14-Day “Masters’ Rule”:

    • Rent out your US home for ≤14 days/year → zero tax, no matter how much you earn.
    • Example: Augusta Masters → villas rented for ₹6 lakh/night → 10 nights = ₹60 lakh → all tax-free.

    In India? No such rule. Every rupee is taxable.

    Reason: India’s tax-to-GDP ratio is ~11% (vs 25–30% in OECD countries). The government can’t afford tax-free loopholes.

    Fact: Countries like Japan and Spain have also clamped down some cap rentals at 60–90 days a year.

    The Bigger Picture

    Globally, Airbnb grew in tax grey zones. But India plugged those gaps early with GST, TDS, and income tax rules.

    • In the US → Airbnb = side hustle + tax hack.
    • In India → Airbnb = side hustle + tax headache.

    Same app, same business model, but radically different realities.

    Final Thoughts

    Airbnb in India isn’t a scam, it can still be lucrative. But here’s what smart hosts do:

    • Track income → crossing ₹20 lakh means GST.
    • Always add your PAN → avoid 5% TDS.
    • Price with taxes in mind → don’t undercut yourself.
    • Hire a CA if you earn big → worth every rupee.

    Airbnb can earn you lakhs, but the taxman always takes his share. Go in with eyes open, and you’ll avoid nasty surprises.

     

  • Your Data Is the New Gold: How UPI Apps Are Not ‘Free

     

    We love UPI. It’s fast, free, and everywhere.
    From your neighborhood tea stall to your favorite online store  one scan, one tap, done.

    But here’s the thing: when something looks free in the digital world, you’re usually the product.

    Let’s unpack how UPI apps might not cost you money, but they do cost you something else your data.

    India’s UPI Explosion: The Landscape

    To understand why your data is gold, first see how BIG UPI has become in India:

    • In August 2025, UPI processed over 20,008.31 million transactions worth ₹24,85,472.91 crore. (NPCI)
    • In FY25, UPI crossed 185.8 billion transactions, up ~41.7% from FY24. (Business Standard)
    • In July 2025, UPI recorded ~19.47 billion transactions with value of ₹25.08 lakh crore. (ETBFSI.com)
    • UPI’s share in non-cash retail payments hit 83.4% in FY25. (Business Standard)
    • In June 2025 alone, UPI saw 18.40 billion transactions (~613 million daily) worth ₹24.04 trillion. (ETBFSI.com)

    India now hosts one of the world’s largest real-time payment systems. In fact, on June 1, UPI handled 644 million transactions in a single day  more than what Visa averaged on many days. (PaymentsJournal)

    Interpretation: This scale means that UPI apps collect mountains of data  from every small tea stall scan to major business payments. When you’re part of that ecosystem, your data is no longer just yours.

    What Data Do UPI Apps Harvest?

    Here’s what they typically collect  knowingly or unknowingly:

    • Transaction history: What you bought, when, how often, how much.
    • Merchant info: Who you transact with (groceries, utilities, subscriptions).
    • Location data: Exact locations where you make payments (home, café, work).
    • Device & network details: Phone model, OS version, IP address, connectivity.
    • Contacts & social graphs: Some apps request access to your address book (to help “find friends”).
    • Demographic & behavioral signals: Time spent in app, frequency, patterns, card vs wallet use.

    When combined, this builds a digital twin of your financial behavior not just what you spent, but who you are, what you value, and how much you can afford.

    How UPI Players Monetize Your Data

    Let’s peel back the layers:

    1. Personal financial profiling

    Your spending data helps apps and banks predict your financial profile:

    • Are you a regular spender or saver?
    • Do you pay EMIs on time?
    • How much credit you can be extended.

    These profiles feed into credit scoring models, influencing your eligibility and interest rates.

    2. Targeted cross-selling & offers

    Ever got a loan or insurance offer in-app just after making a big purchase? That’s the pipeline. Your UPI transactions trigger algorithmic suggestions:

    • Insurance + health plans
    • Mobile recharges & data packs
    • Personal or merchant-loan offers

    Because the apps know what you spend, where, and when, their offers look eerily “custom-fit.”

    3. Insight monetization / data marketplaces

    While many platforms claim they don’t sell your individual data, they often monetize aggregated insights:

    • Users in Delhi spent ₹X on food delivery last month.
    • Apartment dwellers in Chennai prefer these services.

    These insights can be licensed to retailers, ad networks, financial firms, and others. The data monetization market itself is projected to grow aggressively  India’s market is expected to reach USD 893.3 million by 2030 at ~30% CAGR. (Grand View Research)

    4. Behavior-based pricing & dynamic offers

    Your data may influence what offers you see or what rates you’re quoted. Two people might see very different interest rates or premium tiers  even if their base profiles seem similar because of spending patterns, frequency, consistency, and location data.

    The Data Trade-off: Would You Prefer ₹2 or Your Entire Profile?

    Let’s frame it this way:

    Option Cost Benefit Risk
    Pay a small fee (say ₹2) per transaction Transparent cost Your privacy is better protected You spend money but retain control
    Pay ₹0 No monetary cost Seamless convenience Your data is the currency

    Most of us choose “pay ₹0” without realizing the accumulated privacy cost. Over months and years, apps build a robust profile that can influence what you see, what you’re offered, and what opportunities you get.

    The real question: would you rather pay a small, visible fee or give away your digital identity piece by piece?

    State-Level & Usage Insights

    Let’s peel off the national lens and zoom into how usage and merchant categories shape data value:

    • In July 2025, groceries and supermarkets led UPI merchant transactions by volume in India: ~3.03 billion scans totaling ₹64,882 crore in value. (The Economic Times)
    • Meanwhile, debt collection (large payments) topped the value charts. That means high-value usage carries heavier signals.
    • Usage growth is happening across states: Tier-1 cities had early adoption, but growth is surging in Tier-II / Tier-III towns. QR code count jumped from ~569 million in May 2024 to ~670 million in May 2025. (FXC Intelligence)
    • Also, number of banks onboarded on UPI climbed to 675 in June 2025 from 602 a year earlier. (FXC Intelligence)

    Implication: Data isn’t just centralized in metro users  it’s coming from rural shoppers, small merchants, highways, local shops  making the profiling more comprehensive.

    Regulation & Protections (Which Are Still Catching Up)

    Yes  the government is aware. But the trust net isn’t perfect.

    • UPI is under the purview of NPCI and banks must follow data localization and security rules.
    • Privacy acts like the Digital Personal Data Protection (DPDP) Act are in place, but enforcement is still early.
    • A big gap: “Consent fatigue” most users don’t meaningfully read the privacy policy boxes.
    • Even where data is “anonymized,” datasets can be re-identified when cross-referenced with other sources.
    • In 2024, a survey found that among firms with revenues above ₹1,000 crore, 43% had formal data privacy offices; for smaller firms, only 11% did. (protiviti.com)

    So you have protections on paper but in practice, it’s still a patchwork.

    How This Data Can Shape Your Life

    Your UPI data seemingly innocuous can ripple into other parts of your financial life:

    • Credit access & limits: Your behavior affects how lenders see your repayment reliability.
    • Offer segmentation: You may see higher cost offers or be excluded from certain promotions.
    • Behavioral discrimination: Algorithms may limit your options before you even see them.
    • Exposure to ads & misinformation: Frequent targeting from brands, political campaigns, or even scams.

    Over time, your algorithmic “profile” becomes a filter that shapes your digital experience and opportunities.

    How to Take Back Some Control

    You can’t escape data collection entirely, but these steps help you regain control:

    1. Review app permissions regularly — revoke access to contacts, location, etc., unless needed.
    2. Separate apps: Use different apps for payments, investments, and shopping to break correlation.
    3. Opt-out where you can: Check privacy settings in UPI or banking apps.
    4. Limit links: Don’t link unnecessary bank accounts, secondary cards, or wallets unless needed.
    5. Be selective with merchant apps: Use trusted ones; avoid sandbox or mirror apps that demand more permissions.
    6. Use intermediaries: Use virtual cards or “dummy accounts” for low-value purchases to reduce traceability.
    7. Demand transparency: Write feedback so apps improve privacy practices.

    Think not of perfect privacy think “reasonable obscurity.”

    A Glimpse Into the Future

    The way forward:

    • Data monetization in India is expected to reach USD 893.3 million by 2030. (Grand View Research)
    • As AI, IoT, and smart devices grow, more behavioral and location layers will feed into your financial profile.
    • Some scholars propose a data licensing model, where users can “rent out” permission to their data instead of giving blanket consent. (IDEAS/RePEc)
    • The gap between big platforms and small could widen  large firms that own data get richer power, while you remain the product.

    Final Thoughts

    So next time you pay “₹1” remember you didn’t pay with money you paid with your life’s financial mosaic.

    Every scan, every payment, every merchant you visit, every location you frequent  these are puzzle pieces in your data identity.

    UPI apps are reshaping how finance, marketing, and information reach you  invisibly and often irreversibly.

    The good news? You can push back. Use these small changes. Stay conscious. Demand better privacy. And view “free UPI” through a new lens: not free at all.

     

     

     

  • Tech Insurance: The Safety Net for the Digital Age

    In today’s fast-moving digital world, technology is the lifeline of every business. From cloud-based systems to AI-driven decision-making, companies depend on technology to operate, innovate, and grow. But with this heavy reliance comes a new set of risks — cyberattacks, data breaches, software downtime, and even accidental system failures.

    Enter Tech Insurance — the modern-day safety net for companies that live and breathe technology.

    This blog explores what tech insurance is, why it’s essential in today’s business environment, how it works, and how it’s transforming India’s corporate and startup landscape.

    What Is Tech Insurance?

    Tech insurance (also known as Technology Errors & Omissions (E&O) or Cyber Liability Insurance) is a specialised form of business insurance that protects organisations against financial losses caused by technology-related issues.

    In simpler terms, it covers you when your software, system, or services fails or cause harm to others.

    It typically includes coverage for:

    • Data breaches and cyberattacks
    • System outages and network downtime
    • Software or hardware failures
    • Intellectual property disputes
    • Technology service errors (for example, a SaaS product malfunctioning and affecting clients)
    • Reputation damage and PR costs
    • Legal expenses and compensation 
    • In a world where a single system failure can cause millions in losses, tech insurance ensures your business survives the hit.

    Why Tech Insurance Matters in Today’s World

    The growing digital risk landscape

    • Over 65% of Indian businesses faced a cyber incident in 2024 (PwC report).
    • The average cost of a data breach in India was ₹18.5 crore (IBM 2024).
    • Downtime due to IT failures costs Indian companies an estimated ₹6,000 crore annually.
    • With the rise of AI tools, digital payments, and remote work, the risk surface is expanding faster than ever.
    • Insight: Technology risk is no longer just an IT problem — it’s a financial and reputational threat that can shake entire organisations.

    Who Needs Tech Insurance?

    Almost every modern business can benefit from tech insurance, but it’s especially vital for:

    • IT service providers and software companies
    • SaaS (Software-as-a-Service) startups
    • Fintech and Insurtech companies
    • E-commerce and online retailers
    • Healthcare tech and data-driven companies
    • Cloud hosting and data centres
    • Digital marketing and advertising agencies

    For startups

    Startups often rely heavily on technology but lack the resources to absorb financial shocks from data loss or system failure. Tech insurance offers peace of mind and helps meet compliance or client contract requirements.

    For large enterprises

    Tech giants face massive exposure — from customer data breaches to service outages. Insurance ensures business continuity and legal protection at scale.

    Types of Tech Insurance Coverage

    Different businesses require different protection levels. Below are the major types of tech insurance coverage:

    • Cyber Liability Insurance: Covers data breaches, ransomware, and cyber extortion.
    • Technology Errors & Omissions (E&O): Protects against client claims of negligence or failure in technology services.
    • Data Restoration and Loss Recovery: Covers costs of recovering lost or corrupted data.
    • Network Security Liability: Covers claims arising from network failure or unauthorised data access.
    • Media Liability: Protects against copyright infringement or digital content misuse.
    • Business Interruption Coverage: Compensates for income loss due to system outages or attacks.
    • Tip: Many insurers now offer customized hybrid plans combining cyber, tech E&O, and data protection under one policy for startups and SMEs.

    Real-World Example: Tech Insurance in Action

    Let’s take a practical case:

    An Indian SaaS company provides cloud-based HR solutions to several clients. Due to a coding error, the software exposes sensitive employee salary data. Clients sue for breach of data privacy.

    Without insurance, the company would bear:

    • Legal fees
    • Compensation payouts
    • Data recovery costs
    • Reputation management expenses

    With tech insurance, most of these costs are covered, saving the startup from financial ruin.

    Real insight: In 2023, a Bengaluru-based fintech startup faced ₹4 crore in losses after a data breach but recovered swiftly due to comprehensive tech insurance coverage.

    The State of Tech Insurance in India

    India’s tech insurance sector is still emerging, but growing rapidly thanks to rising awareness of cyber risks and government focus on digital security.

    Key insights:

    • The Indian cyber and tech insurance market is valued at around ₹3,000 crore in 2024.
    • Expected growth rate: 25–30% CAGR through 2030.
    • Top buyers: IT services, BFSI, healthcare, and e-commerce sectors.
    • Major insurers: HDFC ERGO, ICICI Lombard, Bajaj Allianz, Tata AIG, and new-age players like Digit and ACKO.
    • Stat: ICICI Lombard’s cyber risk policies grew by more than 200% between 2021 and 2024, reflecting India’s rising digital risk appetite.

    What’s Driving the Growth of Tech Insurance in India

    1. Digital Transformation: Every business is going online, from MSMEs to large conglomerates.
    2. Government Push: Data protection laws and frameworks like the DPDP Act (2023) have increased corporate accountability.
    3. High-Profile Cyberattacks: Attacks on government portals, banks, and startups have made companies rethink risk management.
    4. Client Requirements: Global clients now demand tech risk coverage before awarding contracts.
    5. Rise of Insurtech Platforms: Simplified digital policies are making tech insurance more accessible.

     Government and Regulatory Role

    India’s regulatory landscape is gradually aligning with global cybersecurity and risk management standards.

    Key government actions:

    • Digital Personal Data Protection (DPDP) Act, 2023: Mandates responsible handling of personal data, increasing the need for coverage.
    • IRDAI Guidelines: Encourage innovation in cyber and tech insurance products.
    • CERT-In Framework: Emphasises mandatory incident reporting and best practices for data handling.
    • Startup India Policy Support: Promotes insurance adoption among startups and MSMEs for resilience.
    • Insight: Government regulations are not only encouraging insurance adoption but also improving trust in India’s digital economy.

    Common Myths About Tech Insurance

    1. “It’s only for big tech companies.”
      False — startups, freelancers, and SMEs are often more vulnerable.
    2. “My cloud provider covers everything.”
      Not true — cloud contracts usually exclude liability for data breaches caused by clients.
    3. “It’s too expensive.”
      Premiums are now flexible and can start as low as ₹30,000 per year for SMEs.
    4. “Cybersecurity tools are enough.”
      Prevention is vital, but insurance ensures recovery when prevention fails.
    5. Tip: Think of tech insurance as a financial firewall — it doesn’t replace your antivirus, but protects you when things go wrong.

    Benefits of Having Tech Insurance

    • Financial Protection: Covers losses from cyberattacks, data breaches, and service disruptions.
    • Business Continuity: Helps maintain operations even after major incidents.
    • Legal Compliance: Aligns with DPDP Act and international data protection standards.
    • Reputation Management: Covers PR and crisis response costs.
    • Client Confidence: Builds credibility and trust with partners and customers.
    • Many Indian startups are now including tech insurance details in pitch decks to attract global investors.

    Challenges in Adoption

    Despite its importance, tech insurance adoption faces hurdles:

    • Low Awareness: Many companies don’t understand what tech insurance covers.
    • Cost Concerns: SMEs assume premiums are high (often untrue).
    • Complex Policy Terms: Legal jargon can make policies hard to interpret.
    • Reactive Mindset: Many seek insurance only after an incident.
    • Solution: Simplified policy designs, education drives, and flexible SME-focused plans are bridging these gaps.

    How to Choose the Right Tech Insurance Policy

    Here’s what to consider before buying tech insurance:

    1. Assess Your Risks: Identify key tech dependencies and possible vulnerabilities.
    2. Review Policy Inclusions: Check for data breach, E&O, ransomware, and interruption coverage.
    3. Understand Exclusions: Some policies exclude insider attacks or outdated systems.
    4. Choose Reputable Insurers: Compare claim records and digital support platforms.
    5. Customise Coverage: Tailor plans to your business model (e.g., SaaS vs. e-commerce).
    6. Seek Expert Advice: Consult a risk advisor or insurance broker specialised in tech policies.

    The Future of Tech Insurance in India

    The next decade will be a defining one for tech insurance in India.

    • Market Growth: Expected to exceed ₹12,000 crore by 2030.
    • Increased Adoption: MSMEs, fintech startups, and digital health players are driving demand.
    • Integration with Fintech: Insurtech platforms offering one-click policy management.
    • Global Expansion: Indian insurers partnering with international firms to offer cross-border protection.
    • AI in Risk Assessment: Automated tools to predict and price cyber risk more accurately.
    • Prediction: By 2030, tech insurance will become as essential as health or car insurance for businesses.

    Conclusion

    Technology has revolutionised the world, but with it comes a wave of new risks. Tech Insurance bridges the gap between innovation and protection, allowing businesses to grow with confidence.

    Whether you’re a small startup, a freelancer, or a global tech enterprise, the message is clear:
    Protect your digital assets before disaster strikes.

    Because in today’s world, technology runs everything and insurance keeps it runnin’. Assess your tech risks today and explore tech insurance options suited to your business. It’s not just smart, it’s essential for survival in the digital age.