Vittae Blogs

Tag: Impact

  • 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.

     

  • 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.

     

  • 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.

     

     

     

  • How China Owns Your Diwali: The Festival That Fuels a Foreign Economy

     

    Every October, India lights up like no other country on earth.
    Streets sparkle, markets buzz, and homes gleam under strings of LEDs. It’s the season when the country feels alive.

    But behind the glow, there’s a quiet irony most of us miss a huge part of that brightness comes from China.

    From the fairy lights on your balcony to the tiny Ganesh idol on your table, about 70% of what you buy this Diwali is made in China.
    And every purchase, every decoration, every shimmering bulb it all sends money flowing out of India and straight into Chinese factories.

    Your festival of light, in short, has become China’s festival of profit.

    The ₹1.2-Lakh-Crore Celebration

    Diwali isn’t just a festival; it’s an economic wave.

    Every year, Indians spend roughly ₹1.2 lakh crore on sweets, gifts, lights, clothes, and decorations.
    That’s larger than the GDP of some small nations. But here’s the thing — a large slice of that festive money doesn’t circulate here. It crosses borders.

    Imported LEDs, plastic idols, and flashy electronic décor have quietly replaced the local craft economy that once powered Diwali bazaars.

    Category China’s Market Share in India Import Value (2024)
    Decorative LEDs & Lights 70–75 % ₹7,100 crore
    Festive Décor & Signage 93 % ₹2,400 crore
    Lamps & Light Fittings — ₹3,000 crore
    Total (Lighting + Décor) — ₹13,000 crore ≈ USD 853 million

    That’s ₹13,000 crore leaving India every festive season enough to run the health budget of an entire Indian state for a year.

    The Trade Deficit Nobody Talks About

    This isn’t just a Diwali story. It’s part of a bigger economic pattern.

    In FY 25, India imported goods worth USD 113.5 billion (≈ ₹9.45 lakh crore) from China.
    We exported only USD 14.25 billion (≈ ₹1.19 lakh crore) in return.

    That’s a trade deficit of USD 99 billion (₹8.25 lakh crore)  the largest India has ever recorded with any single country.
    To put it simply:

    For every ₹100 we trade with China, ₹87 flows out.

    FY Imports from China Exports to China Deficit
    FY 20 USD 65 B USD 16 B USD 49 B
    FY 23 USD 101 B USD 15 B USD 86 B
    FY 25 USD 113.5 B USD 14.25 B USD 99 B

    And each year, Diwali adds its small but glowing contribution to that imbalance.

    How Festive Spending Became a Chinese Revenue Stream

    In 2024, India imported USD 853 million (₹7,000 crore) worth of decorative items, signage, and lighting products from China.

    That included ₹3,000 crore worth of lamps and light fittings alone.
    Almost 93 % of all “festive or decorative articles” imported into India that year came from China.

    That means almost everything twinkling in your home this week began its life in a Chinese factory.

    Product Type Imports from China (2024) China’s Share
    Lamps & Light Fittings ₹3,000 crore 85 %
    Festive Décor & Signage ₹2,400 crore 93 %
    LEDs & Bulbs ₹1,700 crore 70 %
    Total ₹7,100 crore ≈ 90 %

    For China, Diwali isn’t a festival it’s a quarterly revenue bump.

    The Five-Year Surge We Pretended Not to See

    In 2017, India imported USD 61 billion worth of goods from China.
    Then came the 2020 border clashes, and #BoycottChinese trended everywhere.

    You’d think that would change things.

    But it didn’t.

    By 2022, imports had jumped to USD 94.5 billion — up 63 % since 2017.
    By FY 24, China made up 15 % of all Indian imports, the highest in our history.

    Year Imports from China (USD Billion) Change YoY
    2017 61 —
    2020 58 ↓ 5 % (Boycott calls)
    2022 94.5 ↑ 63 %
    2024 101 ↑ 7 %
    2025 113.5 ↑ 12 %

    The hashtags faded. The shipments didn’t.

    Why India Can’t Just “Make It Here” Yet

    The obvious question why not just produce these things ourselves?

    The answer is brutal economics.

    Chinese factories can make the same decorative light for about ₹80, while in India it costs around ₹180–₹200.

    That’s because Chinese producers enjoy scale, automation, integrated supply chains, and subsidised power.
    India’s small manufacturers still rely on manual labour and fragmented logistics.

    Item Cost in China Cost in India Difference
    LED String Light ₹80 ₹180 +125 %
    Resin Idol ₹150 ₹280 +87 %
    Plastic Lantern ₹100 ₹190 +90 %

    So when local manufacturers try to compete, they bleed.
    Eventually, they stop producing and the import cycle deepens.

    It’s not that India lacks talent; we lack systems efficient logistics, cheap power, and credit for small businesses.

    The Local Fallout That Never Makes Headlines

    Travel to Ayodhya, Jaipur, or Madurai in the weeks before Diwali, and you’ll hear the same story again and again.

    Artisans who once made a living from clay diyas and handmade décor now sit idle.
    Plastic and LEDs have replaced the earth and oil that once defined the festival.

    Their incomes have fallen by half in a decade.

    Craft Sector Avg Income (2015) Now (2024) Drop
    Clay Diyas ₹15,000 / month ₹7,000 −53 %
    Small Idols ₹18,000 ₹9,500 −47 %
    Handicrafts & Décor ₹20,000 ₹10,000 −50 %

    Every cheap bulb we buy replaces a family’s livelihood somewhere in rural India.
    It’s not just economic — it’s cultural erosion.

    These artisans don’t just make products; they make traditions tangible.

    The Hidden Cost of Cheap Imports

    We often tell ourselves “It’s cheaper, what’s the harm?”

    Here’s the harm.

    Every imported shipment widens our trade deficit, weakens the rupee, and eats into foreign-exchange reserves.
    When local factories shut, we lose not just jobs but tax revenue and manufacturing capacity.

    Impact Area Effect of Rising Imports
    Trade Balance Higher deficit (USD 99 B FY 25)
    Employment Loss of MSME & artisan jobs
    Currency Rupee under pressure
    Fiscal Health Lower manufacturing tax base

    Short-term gain, long-term drain.

    The “Made in India” Mirage

    Many products that look proudly Indian are, in truth, partly Chinese.

    Those “Made in India” fairy lights? Often just assembled here.
    The bulbs, chips, wiring all imported.

    Stage Actual Origin
    LED Chip China
    Wiring & Controller China
    Plastic Casing China
    Assembly & Packaging India

    We’ve changed the sticker, not the supply chain.

    What If We Kept the Money Home?

    Now imagine this:
    If even half of Diwali’s imported goods were made domestically, India could save over ₹20,000 crore every year.

    That’s enough to:

    • Support 50,000 MSMEs
    • Create 10 lakh manufacturing jobs
    • Or fund 200 small industrial clusters across Tier-2 and Tier-3 cities.

    “Make in India” isn’t just patriotic — it’s profitable.

    Scenario Annual Impact
    50 % Import Substitution ₹20,000 crore saved
    MSMEs Funded ~50,000
    Jobs Created ~10 lakh
    Clusters Possible 200+

    Lighting the Way Forward

    The answer isn’t boycotting or blaming.
    It’s building.

    China’s manufacturing dominance didn’t appear overnight. It took three decades of policy consistency, low-cost power, and relentless focus.

    India can do the same  but it needs coordination between government, industry, and consumers.

    • Policy support for small manufacturers
    • Incentives for domestic electronics and décor production
    • Consumer awareness about spending choices

    And at a personal level, it means buying local whenever you can.

    Because every rupee you spend locally lights up not just your home, but someone else’s livelihood too.

    The Bottom Line

    When you switch on your Diwali lights this year, take a second look.
    The glow might be from China but the power to change that lies with you.

    If even a fraction of India’s festive spending stayed home, we could build factories, revive crafts, and create jobs all while keeping the spirit of Diwali intact.

    The question isn’t “Can India make its own lights?”
    It’s “Will we choose to?”

    Because the truth is simple: Diwali should brighten India’s homes, not China’s economy.

    Quick Snapshot: The Numbers Behind the Glow

    Metric Value (2024–25)
    Total Diwali Spending ₹1.2 lakh crore
    Imports from China (Festive Goods) ₹13,000 crore
    India–China Trade Deficit USD 99 billion (₹8.25 lakh crore)
    Share of Chinese Décor in Market 70–93 %
    Artisan Income Drop 50–60 %
    Potential Savings (if 50 % localised) ₹20,000 crore

     

  • Why Celebrities ‘Donate’ to Themselves: The ₹1 Crore Illusion 

    Every time a Bollywood actor or cricketer posts “Just donated ₹1 crore to charity”, social media erupts in applause.
    Fans cheer, news channels run headlines, and brands subtly remind you how “generous” their ambassadors are.

    But behind that bighearted gesture lies a clever financial loop.
    Because that ₹1 crore donation might not actually cost the celebrity anywhere close to ₹1 crore.
    In many cases, the real cost is just ₹30–40 lakh.

    Let’s unpack how the rich and famous make generosity pay.

    The Loop Behind the Generosity

    It starts with a playbook that’s simple, legal, and smart.

    1. The celebrity sets up a charitable trust or NGO—often controlled by their own family or team.

    2. They “donate” ₹1 crore to that NGO.

    3. The NGO qualifies under Section 80G of the Income Tax Act, making the donation tax-deductible.

    4. Later, the trust uses the same money for “projects” that also support the donor’s image—campaigns, brand events, or content production.

    So, what looks like a selfless act becomes a self-funded PR and tax strategy.

    How the Numbers Work

    Assume a celebrity earns ₹10 crore a year and falls in the 30 % tax bracket.

    They donate ₹1 crore to their own foundation.
    If it qualifies for a 100 % deduction under 80G, taxable income falls to ₹9 crore.

    • Tax saved = ₹1 crore × 30 % = ₹30 lakh.

    • Real out-of-pocket = ₹1 crore – ₹30 lakh = ₹70 lakh.

    • If the trust later channels part of the funds back into the celebrity’s ecosystem, the effective cost can shrink further to ₹30–40 lakh.

    Donation Deduction Tax Saved Approximate Real Cost
    ₹1 crore Up to 100 % ₹30 lakh ₹70 lakh
    With internal reuse Same ₹30 lakh ₹30–40 lakh

    That’s how a ₹1 crore announcement can have a fraction of the actual financial impact.

    What Section 80G Really Says 

    Section 80G allows deductions for donations made to approved charitable institutions.
    But not all donations qualify equally.

    Category of Donation Deduction Allowed
    PM’s Relief Fund, Clean Ganga Fund, etc. 100 %
    Registered Charitable Trusts (General) 50 %
    Scientific or Rural Development NGOs 100 %
    Political Contributions (Sec 80GGC) 100 % (conditions apply)

    2025 updates:

    • Only NGOs registered under both 12A and 80G can receive CSR funds.

    • Cash donations above ₹2,000 are no longer eligible.

    • Renewal for 80G/12A status is due by 30 September 2025, per CBDT guidelines.

    Key Data Snapshot – NGO Landscape 

    Indicator Value Source / Note
    Registered NGOs in India ≈ 3.7 million DARPAN (2024)
    Renewal deadline for 12A/80G 30 Sept 2025 capindia.in
    CSR eligibility (from July 2025) Only 12A + 80G NGOs efiletax.in
    Cash-donation cap for 80G ₹2,000 taxbuddy.com

     Why It Works So Well

    Because it hits three sweet spots at once:

    • Tax efficiency: Direct financial savings through legal deductions.

    • Control: The celebrity’s own team manages where and how the funds go.

    • Optics: Public image of generosity without significant economic loss.

    Oversight is minimal, and the public rarely questions intent. The law rewards giving, but not transparency about where and how the money flows.

    The Corporate Mirror

    Celebrities aren’t alone. Indian corporations use the same architecture.

    Under CSR (Corporate Social Responsibility) laws, large companies must spend at least 2 % of their net profits on social initiatives. Many meet that requirement through foundations they control.

    A 2025 study found that over ₹27,000 crore of CSR spending occurred in FY 2024–25, but much of it went toward compliance reports and promotional activities instead of measurable outcomes.

    Year Total CSR Spend Spent via Promoter Foundations Share
    2018 ₹13,000 crore ₹4,200 crore 32 %
    2021 ₹23,000 crore ₹9,800 crore 43 %
    2025 ₹27,000 crore ~₹11,000 crore 40 %

    Different players, same playbook corporate or celebrity, charity remains a brand exercise.

    Where the Ethics Get Blurry

    None of this is illegal. But legality and ethics aren’t the same thing.

    If the foundation genuinely builds schools, funds healthcare, or supports athletes, it’s real philanthropy.
    But if the money loops through events, endorsements, or campaigns linked to the donor’s name, it’s charity as marketing.

    India has more NGOs than schools and hospitals combined, but very few undergo serious audits.
    The Income-Tax Department now demands five-year renewals and Form 10BD (listing donors and amounts), but scrutiny still covers only a small percentage.

    The Real Cost of “Charity”

    Let’s re-examine that ₹1 crore headline.

    Action Amount
    Public donation announced ₹1 crore
    Tax deduction claimed ₹1 crore
    Tax saved ₹30 lakh
    Funds reused internally ₹30–40 lakh
    True outflow ₹30–40 lakh
    PR/Brand value earned Often worth far more

    They look generous, save taxes, and gain goodwill a perfect equation of image and incentive.

    How This Got Bigger Post-2020

    During COVID-19, celebrities and companies publicly pledged crores for relief efforts.
    Tax filings show the year following the pandemic saw a 42 % jump in total 80G deductions, crossing ₹11,000 crore.
    Many of those funds flowed through private trusts, not direct relief agencies.

    Even after the pandemic, this model stuck because once the public equates “charity” with virtue, the financial incentive stays powerful.

     What Should Change

    To make charity credible again:

    1. Full disclosure: Publicly list related-party donors and transactions.

    2. Independent audits: Any trust handling more than ₹5 crore a year should be externally verified.

    3. Impact reporting: Replace “we spent” with measurable results—schools built, people reached.

    4. Tax limits: Cap deductions for self-controlled NGOs at 25 % of donation value.

    Transparency is cheaper than PR, but it earns real trust.

     The Human Side

    Imagine this: your favourite actor proudly donates during a disaster. The post trends.
    You feel proud that someone with influence cares.

    But that ₹1 crore could actually be ₹30 lakh of real giving, routed through their own foundation that employs their PR team.
    You can still admire their intent but it’s fair to question the mechanism.

    Because while you pay full tax on your salary, they pay less for giving to themselves.

     The Bottom Line

    Not every celebrity foundation is a tax dodge. Many do vital, measurable work.
    But as long as the system rewards optics and deductions over direct impact, the line between philanthropy and financial planning stays blurry.

    So the next time you see that headline “X donates ₹1 crore” remember:
    It might be a generous act.
    Or it might be the smartest business move of their year.

    Quick Reference: 2025 Snapshot

    Metric Figure / Update
    Registered NGOs in India 3.7 million+
    Section 80G & 12A renewal deadline 30 Sept 2025
    Total CSR Spend (FY 2024-25) ₹27,000 crore
    Share spent via promoter-linked foundations ~40 %
    Typical tax saving on ₹1 crore donation ₹30 lakh
    Real cost of “₹1 crore donation” ₹30–40 lakh

     

  • Lab-Grown Diamonds in India (2025): A Sparkling Disruption with Numbers that Matter

     

    If you think diamonds are forever, lab-grown diamonds are here to challenge that belief with facts, figures, and a new story that is uniquely Indian.

    In May 2025, India’s exports of polished lab-grown diamonds fell by 32.8%, while gold jewellery exports surged by 17.2%. Two opposite trends playing out in the same market. One struggling, the other thriving. (TOI, 2025)

    The numbers don’t lie. They show us that lab-grown diamonds are no longer a passing experiment they are part of a tug-of-war between age-old tradition and modern practicality. And in India, where jewellery is not just fashion but also culture, heritage, and financial security, this battle is fascinating to watch.

    What Exactly Are Lab-Grown Diamonds?

    Let’s keep it simple. Lab-grown diamonds are real diamonds. They have the same sparkle, the same hardness, and the same chemical structure as mined diamonds. The only difference is their origin. Instead of being pulled from the earth after millions of years of natural formation, they are grown in labs in a matter of weeks using advanced technology.

    This is not to be confused with fake stones like cubic zirconia or American diamonds. Lab-grown diamonds can pass the same quality tests as natural ones. If you showed both to a jeweller without context, many wouldn’t be able to tell the difference without special tools.

    Why Lab-Grown Diamonds Are Catching Attention in India

    1. Price Advantage

    Indian weddings are grand, emotional, and expensive. A traditional mined diamond engagement ring of 1 carat often costs upwards of ₹5–6 lakh. The same size and sparkle in a lab-grown diamond can cost just ₹1.8–2 lakh. That’s a 70% saving.

    For a young couple juggling EMIs, student loans, and aspirations for a honeymoon in Europe, the math is irresistible.

    2. Ethical Choice

    The stories of “blood diamonds” are no longer whispered—they’re on YouTube, Netflix, and Instagram reels. Today’s buyers want to know that their jewellery isn’t tainted by human suffering. Lab-grown diamonds remove that doubt. They allow people to wear sparkle with a clean conscience.

    3. Sustainability Angle

    Diamond mining often damages ecosystems. Lab-grown diamonds, though not completely energy-neutral, require fewer resources and are considered more environmentally friendly. In a country where climate change is impacting daily life, scorching summers, erratic monsoons, this argument resonates strongly with Gen Z and millennials.

    The Indian Market: By the Numbers

    The Indian lab-grown diamond jewellery market was valued at USD 299.8 million in 2023. By 2032, it’s projected to cross USD 1 billion, growing at a 14.1% CAGR. (LGD Times, 2025)

    Globally, the US and India together are expected to grow the LGD market from USD 14.7 billion in 2023 to USD 37.4 billion by 2031. (Allied Market Research, 2025)

    In India specifically, lab-grown diamond jewellery accounted for about 8.4% of the total diamond jewellery market in 2023. That share is steadily climbing. (MyWisdomLane, 2024)

    Surat, the world’s diamond polishing hub, is a major player. LGD exports rose from 7.81 million carats in FY 2023–24 to 15.29 million carats in FY 2024–25, nearly doubling volume in just one year. (TOI, 2025)

    Family, Tradition, and the “Shaadi” Factor

    Ask any Indian family about jewellery, and you’ll hear the same phrase: “It’s an investment.” Jewellery here isn’t just about beauty; it’s about security, respectability, and family legacy.

    Gold has always been the safe haven. In 2025, with gold exports rising 17.2%, it’s clear that India’s heart still beats for gold. Diamonds, whether natural or lab-grown, are yet to achieve that universal trust.

    Take the example of my cousin’s engagement earlier this year. She chose a lab-grown diamond ring for around ₹2 lakh. Her mother hesitated at first: “Will it hold value in the long run?” For her, jewellery wasn’t just adornment it was future collateral, a hidden backup for emergencies. But the younger generation views diamonds more as emotional symbols than financial assets. For them, value lies in affordability and ethics, not resale.

    This generational difference is shaping the market. Parents may still prefer natural diamonds for prestige, but young buyers are leading the LGD wave.

    The Pushback: Why Everyone Isn’t Convinced

    • Resale Value Concerns: Unlike gold, lab-grown diamonds don’t have a strong resale market yet. A natural diamond may hold 50–60% of its value if sold back. Lab-grown stones often depreciate faster.
    • Industry Resistance: De Beers and other traditional players emphasise rarity. They remind consumers that natural diamonds are finite and, therefore, irreplaceable.
    • Export Pressures: India’s LGD export value dipped by nearly 9.6% in FY 2024–25. Meanwhile, Surat’s real estate sector also slowed, with new approvals falling from 724 in 2022–23 to 553 in 2024–25, partly because diamond-related incomes softened. (TOI, 2025)

    The Government and Institutional Push

    The Indian government is not ignoring this shift. IIT Madras received ₹242 crore from the Ministry of Commerce to spearhead LGD technology. The aim? To make India self-reliant (Atmanirbhar) in this sunrise industry. (Incent LGD IITM, 2025)

    Certification bodies are also stepping up. IGI expanded facilities in Surat and launched advanced services like “Light Performance Analysis” in addition to the classic 4Cs (Cut, Clarity, Colour, Carat). With a 24% rise in LGD certifications year-on-year, trust is slowly being built. (TOI, 2025)

    Cultural Shifts in Design

    Lab-grown diamonds are also influencing how jewellery looks:

    • Minimalism is in. Solitaire rings in oval or pear cuts are popular among millennials, who prefer understated elegance over flashy sets.
    • Personalisation matters. Couples are embracing initials, zodiac motifs, and engraved jewellery. Lab-grown diamonds fit perfectly into this customised trend.
    • Accessible luxury. A middle-class family that once couldn’t dream of buying a 1-carat diamond ring can now afford one. This is quietly democratising luxury.

    The Bigger Picture

    Lab-grown diamonds aren’t here to erase natural diamonds. They’re here to redefine choice. For one buyer, value may lie in rarity and tradition. For another, it’s about saving money while staying ethical.

    In a way, LGDs mirror India’s journey itself, anchored in tradition, yet hungry for progress. They offer a sparkle that is modern, practical, and inclusive.

    When my niece, who’s 24, showed me her lab-grown ring, she wasn’t worried about resale. She said: “I’d rather save the extra ₹3 lakh for a down payment on a flat.” That single statement captures why LGDs matter in 2025 India.

    Final Thoughts

    The lab-grown diamond industry in India is both shining and stumbling. Exports dipped sharply in 2025, but domestic acceptance is rising steadily. The cultural tug between parents valuing legacy and young people valuing affordability is real. And through this, LGDs are finding their place not as replacements, but as alternatives.

    In 2025 India, lab-grown diamonds are not just stones. They’re symbols of practicality, conscious living, and a sparkle that reflects the aspirations of a new generation.

     

  • India’s Key Economic Reforms: Building a Business-Friendly Future

    In recent years, India has made steady progress toward becoming a more investor-friendly and innovation-driven economy. The 2024–25 Union Budget continues this journey by introducing several key reforms that focus on making it easier to do business, attracting more foreign investment, and simplifying regulatory processes.

    Let’s explore these reforms one by one—and how they are shaping India’s path to becoming a global business hub.

    1. Reforms That Open India to Global Investment

    To boost economic growth, the government is focusing on policies that attract Foreign Direct Investment (FDI) and make it easier for global companies to operate in India.

    What is FDI?

    Foreign Direct Investment (FDI) is when companies or investors from other countries invest directly in Indian businesses—by opening offices, setting up factories, or buying stakes in companies.

    Key Update:

    • The FDI limit in the insurance sector has been increased to 100%, up from the earlier 74%.

    This means:

    • Foreign investors can now fully own insurance companies in India.
    • It’s expected to attract over ₹25,000 crore in new investment in the insurance sector.
    • More competition → Better products, lower premiums, and improved services for consumers.

    Example: A global insurance company like Allianz or AXA can now set up a fully owned operation in India, bringing international standards and new job opportunities.

    2. Simplified KYC Process for All

    KYC  is a basic requirement for opening a bank account, investing, or accessing financial services. But many found it tedious and full of paperwork.

    What’s New?

    • KYC norms are now simplified and digitized.
    • You can now use Aadhaar-based or PAN-based digital KYC for faster approvals.
    • Central KYC Registry will be updated in real time and accessible across sectors.

    Benefits:

    • Faster onboarding for bank accounts, stock markets, insurance, and digital wallets.
    • Small businesses and startups can open current accounts in hours, not days.
    • Rural customers and gig workers benefit from paperless processes.

    Example: A homemaker in a tier-2 city can now open a mutual fund account from her smartphone using just her Aadhaar, with no physical documents.

    3. Jan Vishwas Bill 2.0 – Decriminalizing Old Laws

    The Jan Vishwas (People’s Trust) Bill 2.0 is a major step toward reducing the fear of minor legal violations among entrepreneurs.

    What It Does:

    • Decriminalizes over 150 minor offenses across sectors like environment, agriculture, pharma, and labor.
    • Converts many criminal penalties into civil fines or warnings.
    • Focuses on trust-building between the government and businesses.

    Example of Reforms:

    • Instead of going to court for a missed compliance date, a business may now pay a small fine.
    • First-time offenses are treated with reformative intent, not punishment.

    Why It Matters:

    • Less fear of harassment
    • Fewer legal cases clogging courts
    • A boost for MSMEs (Micro, Small & Medium Enterprises), which often struggle with complex rules.

    4. Regulatory Reforms: Making Business Easier

    Red tape has always been a challenge in India. But recent reforms aim to remove unnecessary approvals, delays, and paperwork.

    What’s Changing:

    • Introduction of a Unified Business Identification Number (UBIN) for easier tracking and registrations.
    • Single-window clearance system for business approvals across central and state levels.
    • Push for “trust-based governance” using self-declaration in many sectors.

    Result:

    • India is now ranked among the top 40 countries in ease of doing business, according to World Bank data.
    • Startups can now register in less than a week and get funding faster.

    Example: A food tech startup launching in Bangalore can now get all necessary permits and GST registrations through a unified digital portal, instead of running to multiple departments.

    5. India’s Global Rise as a Business Hub

    These reforms are not just about domestic convenience—they are positioning India as a preferred destination for global investors and manufacturers.

    Key Highlights:

    • Over ₹20,000 crore invested through the Production Linked Incentive (PLI) schemes in 2023–24.
    • India attracted $71 billion (approx. ₹5.9 lakh crore) in FDI in 2023–24, the third highest globally.
    • Global giants like Apple, Tesla, and Samsung are expanding their manufacturing bases in India.
    • Startup India initiative has supported over 1.2 lakh registered startups as of 2024.

    Sector-wise Impact:

    • Insurance & Finance: Full FDI opens floodgates for capital
    • Retail & E-commerce: Simpler KYC speeds customer acquisition
    • Technology & Deep Tech: Ease of registration accelerates innovation
    • MSMEs: Decriminalization helps reduce compliance burden

    6. Long-Term Impact: A Stronger, More Open India

    India is not just aiming to grow fast—it’s aiming to grow smart, fair, and globally integrated.

    Here’s what these reforms mean in the long run:

    • More investments → More factories, services, and jobs
    • Less red tape → Faster business launches and expansions
    • Higher tax compliance → Better public infrastructure and services
    • Global trust → More strategic partnerships in tech, defense, and energy

    Global Comparison: India vs. Other Economies

    Country Ease of Doing Business (World Bank, 2024 est.)
    Singapore 1st
    USA 6th
    UAE 10th
    India 37th (up from 63rd in 2019)
    China 31st

    India’s ranking is rising fast, thanks to sustained reforms in taxation, regulation, and digitization.

    Conclusion: Reforming for a Better Tomorrow

    The 2024–25 budget’s focus on investor-friendly policies, simplified compliance, and legal reform shows that India is preparing for the future with confidence.

    Whether it’s allowing 100% FDI in insurance, making KYC a one-click process, or decriminalizing outdated laws, the message is clear: India wants to build a business environment that’s efficient, transparent, and globally competitive.

    And for individuals, small businesses, and international players alike—that means more opportunities, growth, and ease of doing business.

     

  • India’s Export Ambitions: Boosting Trade, Global Reach, and Economic Growth

     

    India’s growing economy isn’t just about what’s happening within its borders—exports play a massive role in driving growth, generating jobs, and improving international trade relations. In the 2024–25 Union Budget, the government rolled out several big-ticket measures to enhance India’s export capacity, make Indian goods more competitive, and better connect with the global supply chain.

    From creating modern trade platforms to improving cold storage for perishable items, the new export policies are designed to make India a major global player. Let’s break down how these initiatives work, how much is being invested, and what it means for India’s economic future.

    1. India’s New Export Policies: A Big Leap Forward

    India is now aiming to increase its share in the global trade pie. Currently, India accounts for just 1.8% of global merchandise exports, compared to:

    • China: 14%
    • Germany: 7.5%
    • USA: 9.3%

    To bridge this gap, the government is implementing a multi-layered export strategy that includes:

    • Building tech infrastructure
    • Setting sector-wise export targets
    • Creating warehousing and logistics hubs
    • Strengthening global partnerships

    The goal? Double India’s exports by 2030.

    2. BharatTradeNet: A New Digital Gateway for Global Trade

    One of the major announcements is the launch of BharatTradeNet, a unified digital platform to help Indian exporters connect with international buyers, track regulations, and streamline their documentation process.

    What is BharatTradeNet?

    • A digital single window system for all trade-related services
    • Integrates customs, shipping, port authorities, and logistics
    • Reduces red tape and simplifies export documentation

    Key Features:

    • Real-time trade data tracking
    • AI-powered market intelligence
    • Automated document validation
    • Helps MSMEs (Micro, Small & Medium Enterprises) reach global markets

    Why It Matters:

    • According to a World Bank report, Indian exporters face 30–40% higher logistics and compliance costs compared to global averages. BharatTradeNet will reduce transaction time by up to 40%, especially for smaller businesses.

    3. Export Promotion Mission: Sectoral Targets for Strategic Growth

    To ensure focused growth, the government announced an Export Promotion Mission that assigns specific export targets to high-potential sectors like:

    • Electronics
    • Textiles
    • Pharmaceuticals
    • Food processing
    • Renewable energy components

    Mission Features:

    • Each sector will have a dedicated export council
    • These councils will receive financial and policy support
    • Exporters will be trained on international standards and certifications

    Example:

    India’s pharmaceutical exports grew from $14 billion in 2014 to $25 billion in 2023. Under this mission, the goal is to hit $50 billion by 2030.

    This sector-wise approach ensures India is not just exporting more—but exporting smarter and with strategy.

    4. Warehousing and Cold Chain for Perishable Goods

    India’s agriculture sector produces a huge quantity of fruits, vegetables, dairy, and seafood—but poor storage facilities often lead to 30–40% food wastage, especially during export.

    To tackle this, the budget includes heavy investment in air cargo warehousing and cold chain infrastructure, especially near:

    • International airports
    • Coastal economic zones
    • Agri-export hubs

    Key Goals:

    • Build modern storage and inspection units
    • Reduce spoilage and increase shelf life of goods
    • Boost exports of perishables, organics, and processed foods

    Example:

    In Kerala, seafood exports saw a 20% rise after better cold storage was introduced near Kochi airport. This model will now be replicated across the country.

    5. Strengthening Global Supply Chain Integration

    Global trade has changed dramatically in the past decade, with supply chains becoming more regionalized and digitally integrated. India is working to plug itself deeper into this global system.

    New Efforts Include:

    • Aligning with global trade standards and logistics protocols
    • Signing Free Trade Agreements (FTAs) with countries like UAE, Australia, and UK
    • Improving port connectivity, including the use of National Logistics Policy and PM Gati Shakti scheme

    Numbers to Know:

    • India jumped from 44th to 38th in the Logistics Performance Index (World Bank, 2023)
    • Export-related logistics costs in India are still 13–14% of product value, vs. 8–10% in developed countries. These reforms aim to bring Indian costs down to global standards.

    6. The Bigger Picture: India’s Growing Role in Global Markets

    All these reforms are not just aimed at increasing trade volumes—they’re about shaping India as a reliable and competitive global exporter.

    Benefits for the Economy:

    • More foreign exchange earnings: Helps strengthen the rupee and stabilize the economy.
    • Job creation: Every ₹1 crore worth of exports creates about 7–8 jobs in logistics, packaging, and manufacturing.
    • Boost for MSMEs: These businesses make up 45% of India’s total exports and will benefit the most from digital platforms and simplified trade procedures.

    How States Are Competing on Exports

    Different Indian states are also stepping up their game.

    State Top Export FY23 Export Value
    Gujarat Gems, chemicals ₹12.7 lakh crore
    Maharashtra Machinery, pharma ₹10.2 lakh crore
    Tamil Nadu Textiles, auto parts ₹6.8 lakh crore
    Uttar Pradesh Handicrafts, leather ₹2.9 lakh crore
    Punjab Rice, dairy ₹1.5 lakh crore

    States are being encouraged to build Export Hubs, with local branding and international linkages. This decentralizes growth and ensures rural and semi-urban areas can participate in export-led development.

    Challenges That Remain

    Despite all the positive changes, a few challenges remain:

    • Indian exporters still struggle with global product certifications.
    • Infrastructure gaps remain in tier-2 and tier-3 towns.
    • Need for more financial incentives to compete with global pricing.

    However, schemes like RoDTEP (Remission of Duties and Taxes on Export Products) and Interest Equalization Scheme are being extended to provide cost advantages.

    Conclusion: The Road Ahead for Indian Exports

    India is no longer content being just a large domestic market—it wants to be a global export leader. With strategic investments in technology (like BharatTradeNet), logistics (air cargo warehousing), sectoral support (Export Promotion Mission), and global integration, the country is laying the groundwork for sustainable, high-growth exports.

    If these policies are implemented effectively, India’s export value—currently around $770 billion (merchandise + services)—can touch $1.5 trillion by 2030.

    For businesses, it’s a golden opportunity. For youth, it means new jobs. For India, it’s a step toward becoming an economic superpower.