Category: Business

Indians are changing their travel preferences as the New Year approaches, shifting away from traditional destinations like Thailand and Cambodia. Instead, many are now considering places like Vietnam, Indonesia, Sri Lanka, Japan, and parts of West Asia. This adjustment follows recent border violence in Thailand and Cambodia, which has notably impacted travel demand. Experts in the travel industry have reported a significant decline in inquiries and bookings for these popular Southeast Asian locations, leading travelers to rethink their plans.

Impact of Regional Conflicts on Travel Choices

The recent clashes in Thailand and Cambodia, resulting in over 100 fatalities, have significantly altered travel behavior among Indian tourists. Ravi Gosain, president of the Indian Association of Tour Operators, mentioned that inquiries for Thailand have decreased by 10-20%, with new bookings down by 8-15%. While outright cancellations remain relatively low at 3-8%, many travelers are choosing to adjust their itineraries rather than cancel. Cambodia has seen a more substantial downturn, with inquiries falling by 20-35% year-on-year and cancellations between 8-18%. The swift reaction from travelers, who began modifying their plans within days of the violence, highlights a heightened sensitivity to safety concerns.

Different segments of travelers are responding differently. Families and first-time international travelers are being more cautious, whereas younger groups and honeymooners are displaying greater flexibility with their travel arrangements. Key factors influencing these choices include safety perceptions, visa acquisition ease, flight availability, and overall value for money.

Shifts in Travel Preferences and Spending

Despite the decrease in demand for Thailand and Cambodia, traveler spending levels remain stable. Mid-market travelers typically spend between Rs 1.1 lakh and Rs 1.8 lakh per person, while premium travelers allocate between Rs 2.5 lakh and Rs 4 lakh for their trips. Rajiv Mehra, general secretary of the Federation of Associations in Indian Tourism and Hospitality, noted that Thailand has lost some of its previous traction, experiencing a 5-10% drop in demand. Meanwhile, Cambodia is seen more as a spiritual destination than a leisure hotspot. In contrast, countries like Vietnam, Sri Lanka, and Malaysia are gaining popularity due to their competitive pricing and appeal.

Travel companies are adjusting to these changes, focusing on recalibrating their offerings rather than facing outright disruptions. Jatinder Paul Singh, CEO of Viacation, emphasized that while inquiries remain stable, travelers are taking more time to make decisions. Cancellations are limited, with many opting to change dates or select alternative destinations.

Rising Costs and New Travel Trends

Increasing airfares are also influencing travel decisions. Hari Ganapathy, co-founder of Pickyourtrail, pointed out that airline capacity constraints have led to higher flight costs, prompting travelers to prioritize affordability. Although on-ground prices have risen by only 5-7%, flight costs remain a significant factor in travel planning. This trend has resulted in a heightened interest in short-haul destinations that offer visa-on-arrival options and shorter travel times, such as Malaysia, Singapore, and Sri Lanka.

Long-term changes in travel behavior are evident, with a nearly 30% increase in paid activities included in itineraries over the past two years, and a further 13% rise this year. Around 65-70% of itineraries now feature at least one customized experience, marking a shift away from nightlife-centric vacations toward more personalized travel experiences.

Emerging Destinations and Local Alternatives

Booking data from EaseMyTrip indicates that Vietnam’s popularity is on the rise, with Indian traveler traffic expected to increase by 125% by 2025. Sri Lanka is also experiencing a significant surge, with a fivefold increase in interest compared to last winter. Travel companies are adjusting to these trends by pivoting from large-scale, nightlife-oriented New Year celebrations to experience-driven and restorative travel options that align with evolving traveler preferences.

To sustain interest and drive bookings, travel companies are curating comprehensive experiences that bundle accommodations with activities like culinary workshops, local village dinners, heritage walks, farm tours, and personalized wellness programs. Within India, destinations such as Goa, Kerala, and the Andaman Islands remain attractive for festive-season travelers, offering appealing alternatives for those choosing to stay closer to home amid changing overseas travel plans.

Digihunt is not a financial advisor and this is not investment advice.

The National Company Law Appellate Tribunal (NCLAT) has issued a pivotal ruling on the authority of the Committee of Creditors (CoC) in insolvency proceedings. The tribunal clarified that once a resolution plan is approved, the CoC is prohibited from modifying the financial distribution framework, especially in relation to dissenting financial creditors. This decision stemmed from an appeal by Bank of Baroda in the insolvency case of Reliance Communications Infrastructure Ltd (RCIL), underscoring the limitations of commercial wisdom in modifying approved plans.

Background of the Case

The insolvency resolution of Reliance Communications Infrastructure Ltd (RCIL) involves a resolution plan proposed by Reliance Projects & Property Management Services Ltd (RPPMSL), a Jio subsidiary, which was sanctioned on August 5, 2021. The plan garnered support from 67.97 percent of the CoC by vote share, although dissenting votes came from lenders including IDBI Bank and State Bank of India. Following this approval, Bank of Baroda sought to reconvene a CoC meeting to discuss reallocating proceeds under the approved resolution plan, particularly concerning a loan to Reliance Bhutan.

On October 17, 2023, the National Company Law Tribunal (NCLT) instructed the resolution professional to conduct a CoC meeting to consider Bank of Baroda’s request. During the meeting on October 27, 2023, a resolution was passed to reallocate and reassign the Reliance Bhutan loan, achieving a 67.55 percent majority despite objections from IDBI Bank and SBI. This prompted IDBI Bank to contest the CoC’s actions, asserting that they violated the terms of the approved resolution plan.

NCLT’s Ruling on CoC Authority

The NCLT ruled that the CoC could not modify the financial distribution framework after the resolution plan had been sanctioned. It stressed that the loan to Reliance Bhutan, which was earmarked for consenting financial creditors, could not be reassigned to dissenting creditors via a subsequent CoC decision. The tribunal highlighted the necessity of maintaining the integrity of the approved resolution plan, stating that any deviation from the original terms is impermissible.

On December 19, the NCLT reaffirmed its position by approving the resolution plan as initially proposed by RPPMSL. This ruling was subsequently challenged by Bank of Baroda, leading to an appeal before the NCLAT. The NCLT’s decision underscored the importance of adhering to the approved financial structure, ensuring that dissenting creditors are not adversely affected by later CoC actions.

NCLAT’s Final Decision

In its recent ruling, the NCLAT upheld the stance of the NCLT, stating that the CoC’s decision on October 27, 2023, contradicted the approved resolution plan and could not obligate dissenting financial creditors. The appellate tribunal agreed with the NCLT’s assessment that the CoC’s actions exceeded the permissible scope of its authority following the approval of the resolution plan.

The NCLAT emphasized that the adjudicating authority rightly interpreted the relevant clauses of the resolution plan and did not err in allowing IDBI Bank’s plea. The tribunal dismissed Bank of Baroda’s appeal, reinforcing the principle that once a resolution plan is ratified, its financial distribution must remain unchanged by the CoC, thereby protecting the rights of dissenting creditors.

Implications of the Ruling

This ruling by the NCLAT establishes a critical precedent in insolvency proceedings, clarifying the boundaries of the CoC’s authority after the approval of a resolution plan. It highlights the necessity for creditors to abide by agreed terms, ensuring that the interests of all parties, particularly dissenting creditors, are protected. The decision further underscores the importance of preserving the integrity of resolution plans in the insolvency process, which is essential for building trust and stability in financial transactions.

As insolvency law continues to evolve, this ruling serves as a reminder of the need for clear guidelines and adherence to approved frameworks, ultimately fostering a more equitable resolution process for all stakeholders involved.

Digihunt is not a financial advisor and this is not investment advice.

The Indian government has introduced a new standard for incense sticks, known as agarbattis, aimed at enhancing product safety and quality. Announced on National Consumer Day 2025, this initiative by the Bureau of Indian Standards (BIS) outlines specific quality norms and prohibits the use of certain harmful substances in the manufacturing process. This move is part of a broader effort to promote sustainable practices in the incense stick industry, which is deeply rooted in Indian culture and has seen growing global demand.

New Quality Standards for Incense Sticks

The newly established standards categorize agarbattis into three types: machine-made, hand-made, and traditional masala agarbattis. Each category is subject to specific norms regarding raw materials, burning quality, fragrance performance, and chemical parameters. The government aims to ensure that consumers receive safer products with consistent quality. The minister for consumer affairs emphasized that these standards will help protect public health and improve indoor air quality, addressing concerns raised by international studies regarding the use of synthetic chemicals in incense products.

Prohibited Substances and Health Concerns

The notification released by the ministry includes a comprehensive list of substances that are banned from use in incense stick production. This list features several insecticidal chemicals, such as alethrin, permethrin, cypermethrin, deltamethrin, and fipronil, along with synthetic fragrance intermediates like benzyl cyanide and ethyl acrylate. Many of these chemicals are restricted or banned in various countries due to their potential health risks, including respiratory irritation and allergic reactions. The ministry’s statement highlights the importance of these regulations in safeguarding consumers and the environment from the adverse effects of these substances.

Impact on the Incense Stick Industry

India stands as the largest producer and exporter of agarbattis globally, with the industry valued at approximately Rs 8,000 crore annually. Exports reach nearly Rs 1,200 crore, serving over 150 countries, including the United States, Malaysia, and Brazil. The incense stick sector plays a crucial role in supporting a vast network of artisans, micro-entrepreneurs, and small and medium enterprises, particularly in rural and semi-urban areas. This industry not only generates significant employment opportunities but also empowers women, who constitute a large part of the workforce.

Promoting Ethical Manufacturing Practices

The introduction of these new standards is expected to bolster consumer confidence and encourage ethical manufacturing practices within the incense stick industry. By aligning traditional craftsmanship with modern quality expectations, the government aims to support local artisans and enhance their access to global markets. Products that comply with the new standards will be eligible to carry the BIS Standard Mark, allowing consumers to make informed choices. This initiative reflects India’s commitment to preserving its cultural heritage while ensuring that indigenous industries meet contemporary safety and quality standards.

Digihunt is not a financial advisor and this is not investment advice.

Silver prices have surged to unprecedented levels in both domestic and international markets, driven by strong global trends and low trading volumes typical of the year-end period. The All India Sarafa Association reported that in the national capital, silver prices increased by Rs 9,350, reaching a record Rs 2,36,350 per kilogram. This marks a significant rise from Rs 2,27,000 per kilogram in the previous session. Over the last four trading days, silver has gained Rs 32,250, representing a remarkable increase of 15.8% from Rs 2,04,100 per kilogram on December 19. Gold has also seen a rise, achieving a new high of Rs 1,42,300 per 10 grams.

Domestic Silver Prices Reach New Heights

In the domestic market, silver’s impressive climb has been a highlight of the trading week. The significant price increase of Rs 9,350 on Friday brought it to a record Rs 2,36,350 per kilogram. This surge is part of a broader trend, as silver has gained Rs 32,250 in just four trading sessions. The increase stands at 15.8% from Rs 2,04,100 per kilogram recorded on December 19. Throughout the calendar year, silver has experienced a remarkable increase of Rs 1,46,650, or 163.5%, from Rs 89,700 per kilogram at the end of 2024. Analysts attribute this rally to a mix of global market cues and seasonal trading patterns.

Gold Prices Also on the Rise

Gold prices have followed an upward trend, with the precious metal of 99.9% purity climbing by Rs 1,500 to hit a new lifetime high of Rs 1,42,300 per 10 grams. This increase is notable compared to Rs 1,40,800 per 10 grams in the previous session. Year-to-date, gold has gained Rs 63,350, or 80.24%, from Rs 78,950 per 10 grams at the end of 2024. Saumil Gandhi, a Senior Analyst at HDFC Securities, observed that the rally in precious metals continued strongly on the last trading day of the week, with both gold and silver achieving record highs.

International Market Trends

In international markets, gold also reached new heights, with benchmark spot gold rising by $50.87, or 1.13%, to a record $4,530.42 per ounce. This surge is attributed to expectations of a Federal Reserve rate cut and a generally positive sentiment in the commodities market. Praveen Singh, Head of Commodities and Currencies at Mirae Asset ShareKhan, explained that thin trading conditions due to the holiday season have intensified price movements. Silver followed suit, with spot silver climbing $3.72, or 5.18%, to a new high of $75.63 per ounce, breaking the $75 per ounce barrier for the first time.

Factors Supporting Silver’s Growth

Analysts have pointed out several structural factors contributing to the rise in silver prices. Jigar Trivedi, a Senior Research Analyst at Reliance Securities, noted a multi-year supply deficit, where global mine output has not kept pace with demand and has seen declining above-ground inventories. This structural tightness in the physical market could potentially push prices even higher if deficits worsen. Furthermore, silver’s significance in various sectors, including solar panels, electric vehicles, and clean technology, bolsters its value. Trivedi remarked that a weak U.S. dollar alongside increasing demand for safe-haven assets could drive silver prices toward $100 per ounce by 2026.

Digihunt is not a financial advisor and this is not investment advice.

Saudi Arabia has become the top nation for Indian deportations in the Gulf region, surpassing the United States. Data from the Ministry of External Affairs (MEA) presented in the Rajya Sabha reveals that over 11,000 Indian workers were deported from Saudi Arabia in 2025 alone. This figure is part of a broader trend, with more than 24,600 Indians deported globally across 81 countries that year. Most deportations are from low-skilled labor sectors, including construction, domestic work, and caregiving, reflecting the challenges faced by Indian workers abroad.

Saudi Arabia’s Dominance in Deportations

In 2025, Saudi Arabia accounted for an astounding 10,884 deportations, establishing itself as the largest contributor to Indian deportations among Gulf Cooperation Council (GCC) nations. The UAE followed with 1,469 deportations, while Bahrain and Oman reported 764 and 16, respectively. Between 2021 and 2025, a total of 56,460 Indians were deported from GCC countries, with Saudi Arabia responsible for 49,084 cases. This trend highlights the substantial presence of Indian workers in Saudi Arabia, where approximately 695,269 Indians are employed, primarily in labor-intensive roles. The Kingdom’s ambitious Vision 2030 initiative, featuring numerous mega-projects, has increased demand for foreign labor, complicating the situation for workers.

Challenges of Compliance and Enforcement

As the number of Indian workers in Saudi Arabia has risen, so has scrutiny regarding their compliance with local regulations. Authorities have intensified enforcement measures, focusing on issues such as overstaying visas and work-permit violations. This increased monitoring has led to a rise in deportations, with many workers facing removal due to minor infractions. Bheema Reddy, vice-chairman of Telangana’s NRI advisory committee, stated that the influx of workers often leads to heightened enforcement. Many Indian workers, in their pursuit of better opportunities, may inadvertently breach local laws, resulting in deportation. The UAE and Bahrain have also experienced significant numbers of deportations, encountering similar compliance challenges.

Recruitment Practices and Government Initiatives

Recruitment agents in India play a crucial role in the deportation of Indian workers. Many individuals are misled about job roles, salaries, and visa categories, leaving them vulnerable to legal issues abroad. Reddy pointed out that workers are often drawn in by promises of better pay, only to face difficulties when they do not comply with local regulations. In response, the Indian government has underscored the importance of legal migration routes and has introduced various measures to protect workers. The Emigration Act of 1983 regulates overseas recruitment, and the eMigrate portal has been set up to streamline the process. Additionally, programs like the Pravasi Bharatiya Bima Yojana and pre-departure training aim to enhance awareness among migrant workers.

Despite these initiatives, the ongoing trend of deportations highlights the necessity for improved compliance and better oversight of recruitment practices. As Saudi Arabia continues to dominate both labor inflows and deportations, experts emphasize the need for education and awareness to mitigate risks faced by Indian workers abroad.

Disclaimer: Digihunt is not a financial advisor and this is not investment advice.

For the defense sector, 2025 marks a pivotal year of reforms aimed at enhancing India’s military capabilities across various domains, including cyber, space, artificial intelligence, and robotics. The Indian defense ecosystem, characterized by a blend of large corporations, MSMEs, and international collaborations, is witnessing significant advancements. Notable achievements include the unveiling of cutting-edge technologies and a surge in defense exports, particularly the BrahMos missile, which has garnered interest from several countries. With a defense budget of Rs 6,81,210 crore, India is positioning itself among the world’s leading military powers.

Advancements in Defense Technology

In 2025, the Defense Research and Development Organization (DRDO) showcased groundbreaking technologies, including the Hypersonic Glide Vehicle (HGV) and the Transporter Erector Launcher (TEL) as part of the Long-Range Anti-Ship Missile (LR-ASHM) program. The Indian defense landscape is evolving rapidly, with numerous systems unveiled this year, such as unmanned systems, India’s first Generation 5 AI-driven imaging seeker, and advanced exoskeletons. This technological growth is driven by the dual objectives of achieving self-reliance and enhancing global competitiveness. The private sector has made a substantial contribution, accounting for approximately 23% of the total defense production, which stands at Rs 1,50,590 crore. The integration of nearly 16,000 MSMEs into the supply chain of defense public sector undertakings (DPSUs) and private manufacturers has further strengthened India’s defense capabilities.

Record Defense Exports and International Collaborations

India’s defense exports have reached a historic high of Rs 23,620 crore, with the BrahMos missile emerging as a standout success. Countries such as Indonesia, South Africa, and several Middle Eastern nations have expressed interest in acquiring this advanced missile system. As one of the top five military spenders globally, India has allocated approximately Rs 2,67,000 crore for modernization efforts. This modernization strategy balances indigenous acquisitions with necessary imports to address immediate capability gaps. Notably, in April 2025, India and France finalized a deal worth around Rs 63,000 crore for 26 Rafale-Marine fighter jets. Additionally, under the Foreign Military Sales (FMS) route, India plans to import 100 Javelin Missile Systems and 216 Excalibur tactical projectiles from the United States.

Policy Revisions and Future Directions

The Indian government is actively revising its defense procurement policies to streamline processes and enhance efficiency. The Ministry of Defence has engaged stakeholders to update the Defence Acquisition Procedure (DAP), with the new DAP 2025 eagerly anticipated by the industry. Meanwhile, the Defence Procurement Manual (DPM) 2009 has undergone a comprehensive revision, resulting in the release of DPM 2025 in September 2025. This updated manual introduces decentralized decision-making authority, aimed at expediting approvals and reducing bureaucratic delays. Furthermore, the Technology Perspective and Capability Roadmap (TPCR) 2025 has been released, outlining the Indian Armed Forces’ requirements and providing the industry with a clear understanding of capability needs for the next 15 years.

India’s Position in the Global Defense Landscape

India’s trajectory in defense production has significantly improved, with indigenous production now meeting nearly 65% of its defense requirements. This marks a remarkable shift from a decade ago, driven by successful platforms such as BrahMos, Pinaka, Akash, and Tejas. While India has developed cost-effective and battle-proven systems, certain advanced domains, including next-generation propulsion and stealth technologies, require further development. As India aspires to become a global leader, it is essential to expand defense engagement beyond arms trade to include strategic technology partnerships and joint development initiatives. Bilateral agreements with countries like Australia, Canada, and the United States focus on emerging technologies and critical mineral security, aiming to de-risk supply chains. As 2026 approaches, India is poised to build on its achievements, enhancing localization, integrating legacy systems with emerging technologies, and advancing AI-enabled warfare systems. The Indian defense industry stands at the threshold of a new era, ready to navigate the complexities of a rapidly changing global landscape.

Digihunt is not a financial advisor and this is not investment advice.

Investors in India, particularly younger buyers, have demonstrated a strong interest in digital gold, purchasing an estimated 12 tonnes from January to November this year, according to the World Gold Council (WGC). This increase in digital gold transactions occurs despite a recent slowdown in demand following a regulatory advisory from the Securities and Exchange Board of India (Sebi). The rising trend in digital gold purchases underscores the growing preference for online transactions among first-time investors.

Digital Gold Gaining Popularity Among Younger Investors

Digital gold is increasingly favored, especially among millennials and Gen Z, who account for nearly two-thirds of buyers. This investment option enables consumers to buy, sell, and hold gold online without needing physical delivery, with purchases starting as low as Rs 1. The access provided through apps and fintech platforms has made digital gold an appealing choice for new investors. Industry estimates suggested that Indians purchased around 8 tonnes of digital gold in 2024, indicating significant interest this year.

However, the momentum for digital gold transactions has faced hurdles. Following Sebi’s advisory in November, which cautioned that digital gold is not a regulated security and does not comply with existing commodity market regulations, many investors have grown cautious. The advisory urged potential buyers to carefully evaluate the risks tied to digital gold platforms, resulting in a temporary slowdown in transactions.

Regulatory Developments and Industry Response

In response to the regulatory gap, the India Bullion & Jewellers Association (IBJA) is establishing a self-regulatory organization (SRO) for digital gold providers. This initiative aims to ensure that customers’ digital gold holdings are fully backed by physical gold and subjected to regular audits. The onboarding of members is expected to begin in January, with the goal of finalizing rules and regulations by the end of March or early April next year.

Surendra Mehta, the IBJA national secretary, emphasized the need for developing technology to regulate digital gold players. He noted that periodic audits of all digital gold providers would help enhance buyer confidence and deepen the market. This initiative reflects an increasing demand for a regulatory framework to enhance the credibility of digital gold transactions.

Market Challenges and Future Outlook

Despite the promising growth in digital gold purchases, the Sebi advisory has introduced uncertainty in the market. A senior executive from a digital gold platform remarked that the advisory led to confusion, causing many stakeholders, including buyers, to pause their digital gold transactions. Efforts are underway to reassure customers and encourage them to return to digital platforms.

Industry participants are optimistic that digital gold will continue to play a crucial role in the investment landscape. Sachin Jain, WGC’s regional chief executive for India, highlighted that gold remains a significant asset class in Indian households. He pointed out that digital gold improves access through fractional ownership and transparent pricing, addressing concerns related to storage and purity. As digitalization continues to evolve, it is expected to reinforce gold’s status as a trusted asset for Indian consumers.

Digihunt is not a financial advisor and this is not investment advice.

It was a remarkable day for precious metals, with both gold and silver reaching unprecedented heights. Investors turned to bullion in anticipation of interest rate cuts in the U.S. and increasing global tensions. Silver, in particular, led the surge, achieving record gains for the fifth consecutive session, while gold also set a historic milestone in domestic markets.

Silver Soars to New Heights

Silver futures for the March 2026 contract surged by Rs 8,951, or 4%, hitting an all-time high of Rs 2,32,741 per kg on the Multi Commodity Exchange (MCX). This impressive rise follows an increase of Rs 29,176, translating to over 14%, since December 18. The white metal’s ascent was further supported by its breakthrough past the $75-per-ounce mark in global markets for the first time. The ongoing demand for silver reflects a broader trend among investors looking for safe-haven assets amid rising geopolitical uncertainties.

Gold Achieves Historic Milestone

Gold also witnessed a significant uptick, climbing for the fourth consecutive session. MCX gold futures for February delivery rose by Rs 1,119, or 0.81%, reaching a new lifetime high of Rs 1,39,216 per 10 grams. This surge occurred after commodity markets were closed on Thursday for the Christmas holiday. The rally extended internationally, with gold futures on the Comex for February delivery increasing by $58.8, or 1.3%, to a peak of $4,561.6 per ounce. Analysts attribute this surge to heightened safe-haven demand driven by geopolitical tensions and expectations of interest rate cuts from the U.S. Federal Reserve.

Geopolitical Tensions and Economic Factors

Jigar Trivedi, a Senior Research Analyst at Reliance Securities, noted that the rise in gold prices is largely influenced by safe-haven demand amid escalating geopolitical tensions. He pointed to ongoing issues such as the U.S. blockade of crude shipments from Venezuela, the Russia-Ukraine conflict, and recent military actions against ISIS in Nigeria. Additionally, markets are anticipating two quarter-point rate cuts from the Federal Reserve next year as inflation seems to be cooling and labor market conditions soften. Despite some division among Fed officials regarding future monetary policy, the overall sentiment remains bullish for precious metals.

Future Outlook for Precious Metals

Looking ahead, Trivedi mentioned that gold prices have surged more than 70% this year, marking the largest annual gain since 1979. This growth is supported by strong central bank purchases and sustained inflows into exchange-traded funds (ETFs). Market experts predict the rally could continue into early 2026, bolstered by easing inflation, a weaker dollar, and ongoing geopolitical risks. Manoj Kumar Jain from Prithvifinmart Commodity Research indicated that gold is likely to maintain its position above the critical $4,500 level, with potential targets of $4,890, while silver may stabilize above $70, eyeing $78 in the near future. The U.S. Dollar Index remains subdued, which could further support the positive outlook for gold and silver in the coming sessions.

Digihunt is not a financial advisor and this is not investment advice.

Insurers in India are poised for significant changes as the Insurance Regulatory and Development Authority of India (Irdai) prepares to implement new Risk-Based Capital (RBC) norms and the International Financial Reporting Standards (IFRS) 17. These reforms aim to enhance the financial stability of insurance companies by aligning capital requirements with actual risk profiles, moving away from a uniform solvency model. The changes, set to take effect in April 2026, will fundamentally alter how insurers manage their capital and report profits, ultimately reshaping the industry landscape.

Transition to Risk-Based Capital

The introduction of Risk-Based Capital norms marks a pivotal shift in how insurers will operate. Under this new framework, companies will be required to maintain capital levels that are proportionate to the risks they undertake, rather than adhering to a flat solvency threshold. This means that insurers with riskier portfolios, such as those offering long-term guarantees or facing volatile claims, will need to hold more capital. Conversely, those with conservative, well-priced, or well-reinsured portfolios will require less capital. This change addresses the shortcomings of the previous model, which did not adequately reflect the nature of risks on insurers’ balance sheets. As a result, insurers will need to adopt more disciplined underwriting and pricing strategies to align with their risk profiles.

Impact of IFRS 17 on Profit Reporting

The implementation of IFRS 17, known in India as Ind AS 117, will transform how insurers report their profits. Instead of recognizing revenue upfront when premiums are collected, insurers will now account for revenue as insurance services are rendered over the policy term. This shift means that profits will be recognized gradually, allowing for a clearer picture of expected claims, risk margins, and future profits. Industry experts believe this will lead to greater transparency and discipline in pricing and reserving, making it more difficult for companies to hide losses from unprofitable products. Life insurers, in particular, will need to reevaluate their long-term savings and guaranteed products, which tend to consume more capital and generate volatile earnings.

Challenges for General and Health Insurers

General insurers are expected to face increased capital charges, particularly in areas with uncertain or long-tail claims, such as motor third-party liability and property insurance in catastrophe-prone regions. The new capital requirements will make it challenging to sustain persistent under-pricing, prompting insurers to tighten their underwriting practices and potentially withdraw from segments that consistently incur losses. In the health insurance sector, companies will likely experience pressure, especially in group and corporate covers that are aggressively priced for volume. Retail health products, however, may benefit from improved pricing discipline and cost management strategies. Insurers are anticipated to implement measures such as co-pays, tighter hospital networks, and enhanced claims management to mitigate risks.

Future Outlook for the Insurance Sector

As the insurance sector adapts to these new regulations, the focus on risk and capital management will become increasingly central to business decisions. Insurers with weak balance sheets or ineffective pricing strategies may need to seek additional capital, slow their growth, or consider consolidation. Furthermore, investments in data systems, actuarial expertise, and risk management will likely increase as companies strive to meet the new standards. Enhanced disclosures under the RBC and IFRS 17 frameworks are expected to provide investors and policyholders with a clearer understanding of sustainable profitability, ultimately fostering a more resilient insurance market in India.

Digihunt is not a financial advisor and this is not investment advice.

The global trade landscape is on the brink of substantial transformations as we near 2026, following a robust year amidst rising tariffs and shifting trade dynamics. In October 2025, global container volumes increased by 2.1%, yet significant regional disparities emerged, with the U.S. witnessing an 8% decline in inbound container volumes. Experts anticipate that the impacts of trade policies introduced during the Trump administration will become more apparent in the upcoming year, potentially disrupting global supply chains and trade agreements.

Trade Dynamics in 2025

In 2025, global merchandise trade showcased unexpected resilience despite higher tariffs imposed by the U.S. under President Donald Trump. Shipping expert John McCown reported a 2.1% increase in global container volumes in October year-on-year. However, this growth concealed significant regional discrepancies. While the U.S. experienced an 8% fall in inbound container volumes, regions such as Africa, the Middle East, Latin America, and India enjoyed substantial growth, pointing to a potential rebalancing in global trade flows. McCown highlighted that the slowdown this year starkly contrasts with last year’s surge, where U.S. container imports had risen by 15.2%. He indicated that the repercussions of the tariffs imposed in 2025 would likely be more pronounced in 2026, signaling a shift in the global trade landscape.

Impending Changes in Trade Agreements

As 2026 approaches, analysts are closely observing the upcoming review of the United States–Mexico–Canada Agreement (USMCA), which will be reassessed just six years after its implementation. U.S. trade representative Jamieson Greer noted significant public involvement in the review process, with over 1,500 responses submitted during consultations. Many stakeholders support the USMCA, but a consensus has emerged that revisions are needed. Amending the agreement could be contentious, as modifications that benefit one member may disadvantage another. Ongoing pressures from U.S. import duties have strained industries in Canada and Mexico, further complicating diplomatic relations due to recent tensions, including halted trade talks with Canada over advertising disputes.

Potential Disruptions in Global Shipping

The global shipping industry is bracing for possible disruptions stemming from two major developments that could strain supply chains. Firstly, the easing of hostilities in the Red Sea has enabled a potential return of cargo vessels to the area, previously avoided due to Houthi attacks. French carrier CMA CGM SA and Denmark’s A.P. Moller-Maersk A/S have already resumed limited transits through the region. However, a complete return could overwhelm existing infrastructure, causing significant port congestion in Europe. Additionally, if the U.S. economy accelerates in 2026, as suggested by officials from the Trump administration, a surge in demand could lead to inventory restocking that surpasses the shipping industry’s capacity. These developments contribute to an increasingly unpredictable environment for global trade.

Uncertainties Surrounding Trade Agreements

The durability of recent trade agreements established by the Trump administration is increasingly uncertain. While the White House has emphasized deals with several major economies, these agreements typically lack robust enforcement mechanisms, often consisting of short-term commitments. For example, the truce with China is set to last only one year, leaving unresolved issues in the U.S.’s most crucial trading relationship. Recent events have intensified concerns regarding the stability of these agreements. Indonesia has pushed back against U.S. trade demands, while China has raised objections against trade deals involving Malaysia and Cambodia. Tensions are expected to continue with ongoing negotiations involving the European Union and India, bringing potential retaliatory measures into play. Compounding the uncertainty, a pending U.S. Supreme Court decision regarding the legality of Trump’s reciprocal tariffs could significantly impact importers and the administration’s future trade strategy.

Digihunt is not a financial advisor and this is not investment advice.