Just a Little Beyond the Headlines - 20/02/25
Hey—welcome back to Just a Little Beyond the Headlines!
Here, we don’t just regurgitate the day’s biggest stories—you could get that anywhere. Instead, we take the major headlines floating around the internet and serve them up with that one extra insight you wouldn’t catch just from skimming the news. That’s what makes this show Just a Little Beyond the Headlines.
We keep it simple with the EIC format: E for Economy, I for Industry, and C for Company. So, whether it’s big-picture macro trends or the latest corporate shake-ups, you get it all in one place.
Let’s dive in.
Economy
[1] The RBI's Economic Checkup: Green Shoots or Just Wishful Thinking?
The RBI’s latest State of the Economy report says India’s economic momentum is picking up, driven by high-frequency indicators like vehicle sales, air traffic, and GST e-way bills. Translation? There are more cars on the road, more people flying, and more stuff being shipped around—all signs of growth.
Even better: rural demand is strong, urban demand is improving, and inflation just hit a five-month low. The cherry on top? With February’s repo rate cut, borrowing may soon become cheaper.
But there’s a twist. A strong US dollar, compared to the Rupee, is making investors nervous, and they’re pulling money out of India. Also, global trade uncertainty and a slowing world economy could play spoilsport to India’s growth.
So, things look good—for now. But keep an eye on that global turbulence.
[2] What’s driving Qatar’s $10 Billion Bet on India?
Qatar just made a big announcement: it’s pouring $10 billion into India — for infrastructure, tech, manufacturing, food security, and logistics. That’s on top of past investments the country has made—like a $1 billion in Reliance Retail, a stake in Adani Green, and deals in real estate and healthcare.
Why Qatar? Well, it’s slowly becoming a major player in world politics. It controls 40% of India’s LNG imports, has a $526 billion sovereign wealth fund, and plays power broker in West Asia. With wars, supply shocks, and capital flight hitting global markets, India is locking in stable partners.
To seal the deal, both sides are pushing trade agreements, a Joint Task Force on Investment, and a plan to double trade to $28 billion in five years. Clearly, in uncertain times, India’s looking for friends with deep pockets.
[3] India’s New Trade Superhighway is a Success
The Economic Times just reported that India-Russia trade through the INSTC doubled in the last year. INSTC stands for International North-South Transport Corridor. But let us tell you what that means.
Imagine you're shipping a package from Mumbai to Moscow. Your options? You can either sail it all the way around Europe through the Suez Canal— which is expensive and slow. Or you can take a shortcut — the International North-South Transport Corridor (INSTC), a 7,200-km network of ships, trains, and trucks cutting straight through Iran and Azerbaijan to Russia.
The difference? The INSTC slashes shipping costs by 30%, and transit time by 40%. That helps us ramp up exports to Russia — shipping pharmaceuticals, food, textiles, and construction materials — while Russia sends back paper, lumber, and industrial goods.
With sanctions, supply chain chaos, and shifting alliances, India is future-proofing its trade routes. After all, we need better ways of reaching every key market we can.
Industry
[1] GST Hike on Cigarettes? Maybe, Maybe Not
ET reports that the GST on cigarettes ‘could’ be raised to 40%, along with an additional excise duty, once the GST compensation cess ends in 2026. The logic? The government wants to keep the tax revenue flowing without introducing a new cess.
Right now, the total indirect tax on cigarettes is 53%, well below the 75% WHO recommends. A tax hike might seem like bad news for cigarette makers, and the stock market reacted—ITC, VST Industries, and Godfrey Phillips all fell up to 4%.
But here’s the catch—nothing is confirmed yet. Even if GST rises, overall tax incidence may remain the same, since this increase will be offset by the compensation cess that ends in 2026. Moreover, since cigarettes are addictive, demand might barely take a hit. In short, big tobacco isn’t panicking just yet, but stock market investors are playing their own games.
[2] IRDAI Introduces ASBA for Insurance
Ever bought or renewed an insurance policy, paid the first premium, and then realized your policy wasn’t actually issued yet? Yeah, same here. We also learned about this very recently when we renewed our policy. Insurers first take your money, assess your risk, and only then decide whether to issue the policy.
According to Insurance Regulatory and Development Authority of India (IRDAI) norms, the premium is required to be paid only after the insurer communicates the decision of acceptance of the proposal to the customer.
Now, IRDAI is bringing in ASBA (Applications Supported by Blocked Amount)—a system that works just like IPO applications. When you apply for an IPO, your money is blocked but not deducted. If you get the allotment, the funds are debited. If not, they stay in your account.
With Bima-ASBA, insurers can’t touch your money until they actually issue your policy. It’s a win for policyholders—because now, your money stays safe until the insurer makes up its mind. IRDAI has asked insurers to take it live by March 1st.
[3] Innerwear Exports Are Falling—But Is It Really Just About Raw Materials?
According to Mint, India’s innerwear exports have plummeted—men’s and boys’ garments fell 24%, women’s slipped 20.37%, and support garments like bras and corsets took a 35.3% hit between FY22 and FY24. The reason? Mint cites rising Chinese raw material costs, which have surged 20-30% for cotton yarn, spandex, and synthetic fibers.
But here’s the thing—economics is never that simple. While costlier inputs are part of the story, consumer demand plays a role too. The Men’s Underwear Index (MUI), a classic recession indicator, suggests that lower sales of innerwear often signal weak spending power. Maybe global demand has been sliding since 2022, making exports fall naturally.
Of course, We are just hypothesizing—but so is Mint. Economics rarely has just one villain and drawing mono-casual relations between two economic variables rarely does any good.
Company
[1] Vedanta’s Big Split
After nearly two years in the making, Vedanta’s demerger plan finally got shareholder and creditor approval. The mining giant will now split into five separate listed companies, each focusing on a specific sector:
Vedanta Aluminium Ltd – Handles aluminium production
Vedanta Oil & Gas Ltd – Manages energy operations
Vedanta Power Ltd – includes power plants
Vedanta Iron & Steel Ltd – Focuses on ferrous materials
Vedanta Ltd – Retains zinc business, base metals, and newer venture into semiconductors
The goal? Unlocking value because Vedanta Ltd. housed multiple assets in very complex company structures. This will make it easier to attract investors for each business—especially for newer, riskier bets like semiconductors.
This restructuring was first announced in 2023, but only now is it getting the green light. Now, all eyes are on how each spin-off performs in its own lane with independent capital structures.
[2] Apollo’s 19-Minute Medicine Delivery
The Hindu Business Line reported that Apollo 24/7 is doubling down on speed, scaling up its 19-minute medicine delivery and expanding same-day deliveries. The goal? Cover 20 cities by year-end, up from just 4 today on the quick commerce front. Simultaneously, 80-85% of its orders are same-day deliveries, and they want to push that to 90% soon.
But they’re not alone—competitors are moving fast:
Blinkit isn’t just delivering medicines; it’s even piloting a 10-minute ambulance service.
Swiggy Instamart teamed up with PharmEasy to power its rapid medicine delivery.
Tata 1mg partnered with BigBasket for instant delivery in select cities.
The difference? Apollo isn’t using dark stores. Instead, it’s expanding its pharmacy network, meaning it’s boosting offline and online reach at the same time. While others burn cash on warehouses, it looks like Apollo is playing it smart, using what it already has.
[3] Maruti Suzuki Wants Its Crown Back
As part of its Suzuki New Mid-Term Management Plan, Maruti Suzuki’s parent, Suzuki Motor Corporation (SMC), has made its intentions clear—India is its most important market, and it wants to reclaim 50% market share. The company also aims to be number one in local sales, exports, and EVs by 2030
Right now, Maruti holds a 43% market share, down from its once-dominant 50%+. The comeback plan? More SUVs, hybrids, and a bigger EV lineup, starting with the e-Vitara. They’re also betting big on CNG and flex-fuel models to appeal to cost-conscious buyers.
To make all this happen, they’re doubling production to 4 million units annually and setting up manufacturing hubs in Gujarat and Haryana. Will this strategy work? Maybe. But with Tata and Mahindra leading in EVs, Maruti has a serious battle ahead.
Subscribe to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets—both in India and globally.
Please let us know what you think of this episode 🙂
Loved it! 👌