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Month: September 2025

Governance

Ministry of Cooperation: GST Overhaul Brings Major Relief to Rural India

Observenow Desk September 8, 2025

The Ministry of Cooperation has announced significant reforms under the #NextGenGST initiative, aimed at providing major relief to farmers, cooperatives, and rural households across India. Effective from September 22, 2025, the new GST structure reduces levies on essential goods and services, simplifying tax rates while lowering costs for agricultural and food products.

Under the overhaul, milk has been fully exempted from GST, while butter and ghee will now attract a reduced rate of 5 percent. Additionally, essential food staples, farm equipment, fertilisers, and logistics services will see a significant reduction in tax rates. The reforms are designed to empower rural communities, increase disposable incomes, and support cooperatives that form the backbone of India’s agricultural economy.

Officials from the Ministry highlighted that these measures are expected to enhance the competitiveness of small farmers and rural businesses. By lowering input costs and easing compliance requirements, the government aims to stimulate economic activity in rural areas, boost production efficiency, and improve affordability for consumers. The revised GST framework is also intended to encourage digital adoption among cooperatives, simplifying accounting and reporting processes for small enterprises.

Industry experts view these reforms as a key step in addressing longstanding concerns about tax burdens on agriculture and allied sectors. By providing clarity and predictability in GST rates, the government seeks to reduce administrative hurdles and promote transparency in the taxation system. Analysts also expect that the lower levies on logistics and farm inputs will improve supply chain efficiency, reduce wastage, and make agricultural markets more competitive.

The #NextGenGST reforms reflect the government’s commitment to inclusive growth, aiming to create a fairer and more equitable tax regime. By directly benefiting farmers, cooperatives, and rural households, these changes are expected to strengthen India’s rural economy and contribute to overall economic development, supporting the nation’s broader vision of sustainable and self-reliant growth.

Tags: GSTMinistry of Cooperation

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Governance

DRDO Empowers MSMEs to Accelerate Defence R&D in Uttar Pradesh

Observenow Desk

In a major step to strengthen India’s defence manufacturing capabilities, the Defence Research and Development Organisation (DRDO) organized a high-level conclave at its Defence Technology and Test Centre (DTTC) in Lucknow on September 6, 2025. The event brought together over 100 micro, small, and medium enterprises (MSMEs) and start-ups from across the country to explore ways to enhance research, development, and innovation within the Uttar Pradesh Defence Industrial Corridor.

The conclave focused on critical aspects of skill development, funding for R&D, technical consultancy, and technology transfer, aiming to equip local industries with the capabilities needed to contribute effectively to defence projects. Participants were encouraged to collaborate with DRDO and leverage its technical expertise, infrastructure, and support mechanisms to develop indigenous solutions for national defence requirements.

DRDO Chairman Dr. Samir V. Kamat, addressing the gathering, highlighted the strategic significance of the DTTC as a transformative initiative by Defence Minister Rajnath Singh. He emphasized that the centre is designed to foster a strong ecosystem for defence innovation, ensuring that MSMEs can actively participate in the nation’s self-reliance goals. Dr. Kamat assured attendees that DRDO would provide full guidance and support to help them navigate technical challenges and accelerate product development.

The conclave also included detailed discussions on emerging defence technologies, industry-centric policies, and collaborative opportunities between MSMEs and DRDO laboratories. Sessions explored practical avenues for startups and small enterprises to access advanced research facilities, receive mentorship, and secure funding for prototyping and testing new defence solutions.

This initiative demonstrates the government’s commitment to nurturing a robust domestic defence manufacturing sector, reducing dependency on foreign imports, and creating a sustainable ecosystem for innovation. By fostering close collaboration between DRDO and local enterprises, the conclave aims to make the Uttar Pradesh Defence Industrial Corridor a hub of excellence, positioning India as a global player in defence R&D and advanced technology development.

Tags: DRDOMSMEsUttar Pradesh

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Governance

Article 265: How Constitutional Authority and Fair Taxation Shape India’s Fiscal Future

Observenow Desk

Article 265 of the Indian Constitution is a fundamental safeguard ensuring that no tax can be levied or collected without proper legislative authority. This provision reinforces fairness and transparency in India’s fiscal system, protecting citizens from arbitrary taxation while upholding the rule of law. By requiring all taxes to be grounded in law, Article 265 strengthens trust between the state and its citizens and maintains accountability in public finance.

The Supreme Court of India has consistently emphasized the importance of Article 265, holding that any tax imposed without legislative backing is invalid. Judicial decisions have clarified that both the imposition and collection of taxes must have explicit statutory authorization. This principle ensures that taxpayers are treated fairly and that fiscal policies remain within the boundaries of the Constitution.

In practice, Article 265 underpins major taxation laws in India, including the Income-tax Act, 1961, which governs direct taxes. It specifies taxable entities, the manner of assessment, and the mechanisms for collection, ensuring that every action of the tax authorities aligns with constitutional requirements. Over the years, reforms and technological advancements have made compliance easier, such as pre-filled forms, digital reminders, and simplified return processes, fostering voluntary adherence while minimizing disputes.

Recent developments, including the introduction of the new Income-tax Act, 2025, reflect a commitment to clarity, simplification, and fairness. The reforms aim to reduce ambiguities, streamline processes, and make tax obligations more predictable for individuals and businesses alike. By emphasizing lawful taxation, Article 265 not only upholds citizens’ rights but also strengthens India’s economic governance and fiscal sustainability.

Ultimately, Article 265 is a cornerstone of fiscal justice, ensuring that taxation in India is transparent, equitable, and accountable. Its continued enforcement plays a critical role in building trust in public institutions and supporting the nation’s broader economic development objectives.

Tags: Article 265Supreme Court of India

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Exclusive

Hero MotoCorp Appoints Harshavardhan Chitale as CEO

Observenow Desk

Hero MotoCorp, India’s largest two-wheeler manufacturer, has announced the appointment of Harshavardhan Chitale as its new Chief Executive Officer, effective January 5, 2026. Chitale succeeds Vikram Kasbekar, who has been serving as acting CEO following the resignation of Niranjan Gupta earlier this year. Kasbekar will continue on the board as Executive Director and Chief Technology Officer.

Harshavardhan Chitale brings over three decades of leadership experience across multiple global companies. He has held senior positions at Signify, Philips Lighting India, HCL Infosystems, and Honeywell Automation India. At Signify, he led operations across more than 70 countries, focusing on profitability, innovation, and product development. His diverse experience spans industrial automation, IT services, digital transformation, and consumer-facing businesses, making him well-positioned to guide Hero MotoCorp through the evolving mobility landscape.

The appointment of Chitale comes at a critical juncture for Hero MotoCorp as the company intensifies its focus on electric vehicles and emerging mobility solutions. With the global automotive sector rapidly shifting toward sustainable and technologically advanced solutions, his expertise is expected to accelerate the company’s innovation agenda. The leadership transition is also seen as a step to strengthen Hero MotoCorp’s global competitiveness and long-term strategic growth.

Chairman Pawan Munjal expressed confidence that Chitale’s leadership will drive both growth and innovation, especially in the electric vehicle segment. The company’s workforce, partners, and investors are optimistic that this change will bring fresh perspectives and reinforce Hero MotoCorp’s position as a market leader.

Industry analysts expect that under Chitale’s guidance, Hero MotoCorp will continue to expand its product portfolio, adopt advanced mobility technologies, and focus on sustainable practices, thereby securing its leadership in India and enhancing its global footprint. His appointment marks a significant milestone in the company’s journey toward being a pioneering player in two-wheeler manufacturing and mobility solutions.

Tags: Harshavardhan ChitaleHero MotoCorp

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BFSI

Ajay Seth Appointed IRDAI Chairman, Filling Five-Month Leadership Gap

Observenow Desk September 5, 2025

The government has appointed Ajay Seth as the new chairman of the Insurance Regulatory and Development Authority of India (IRDAI), ending a vacancy that had remained open for nearly five months. Seth officially assumed charge on Monday, bringing renewed leadership to the regulator at a time when the sector is navigating multiple challenges.

A seasoned bureaucrat, Seth has held key positions in the finance ministry, where he played a pivotal role in economic policy formulation and coordination with financial regulators. His appointment to the IRDAI is seen as a crucial step in ensuring stability and continuity in the insurance sector’s regulatory framework.

The leadership vacuum at IRDAI had been a growing concern for insurers and policyholders alike, particularly with the industry facing issues such as sluggish growth in certain segments, rising consumer grievances, and the need for deeper market penetration. The regulator has also been under pressure to balance consumer protection with the industry’s push for innovation and profitability.

Seth’s arrival is expected to accelerate ongoing reforms, including the simplification of insurance products, strengthening of grievance redressal mechanisms, and introduction of new frameworks to boost rural penetration. One of the immediate tasks before him will be overseeing the rollout of landmark initiatives such as Bima Vistaar, aimed at expanding affordable coverage across India’s hinterland.

Industry experts believe his leadership will bring sharper focus to consumer interests while also facilitating regulatory clarity for insurers. With India targeting “Insurance for All by 2047,” the new chairman’s role will be pivotal in shaping policies that drive inclusion, foster innovation, and sustain the industry’s long-term growth.

Ajay Seth’s appointment is thus widely viewed as a turning point, restoring momentum to India’s insurance regulator and instilling renewed confidence among stakeholders.

Tags: Ajay SethIRDAI

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BFSI

Bima Vistaar to Bring Affordable Insurance to Rural India by Year-End

Observenow Desk

A landmark initiative to expand insurance penetration in India’s underserved markets is set to take shape with the launch of Bima Vistaar, a bundled protection product combining life, health, and property coverage. Scheduled for rollout by December 2025, the scheme is expected to significantly improve access to financial protection in rural and semi-urban regions.

Under the plan, all 26 life insurance companies in the country will jointly offer Bima Vistaar at a uniform price, ensuring affordability and consistency for consumers. Each policy will provide an individual coverage of ₹5 lakh, addressing multiple risks under a single package. This standardized approach is aimed at removing complexity for buyers while making insurance more accessible to households that have traditionally remained outside the formal protection net.

To support adoption, the insurance industry has committed a ₹150 crore, three-year awareness campaign. The initiative will focus on spreading knowledge about the product in villages and small towns, highlighting its benefits and ease of purchase. Industry stakeholders believe that widespread education will be critical to building trust and encouraging first-time policyholders to participate.

The development of Bima Vistaar aligns with the broader vision of the Insurance Regulatory and Development Authority of India (IRDAI), which has been pushing for simplified, inclusive products to achieve the goal of “Insurance for All by 2047.” By bringing together all insurers under one framework, the product is expected to create scale, reduce distribution challenges, and foster deeper rural penetration.

Experts view Bima Vistaar as a potential game-changer, combining affordability, accessibility, and comprehensive coverage. If successful, the model could become a blueprint for future collaborations in the sector, supporting both financial inclusion and long-term resilience for India’s rural households.

Tags: Bima VistaarIRDAI

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BFSI

IIFL Home Finance Strengthens Leadership Team as Girish Kousgi Poised for Top Role

Observenow Desk

IIFL Home Finance has announced key leadership changes, signaling a phase of organizational strengthening and succession planning at the housing finance company. The firm has elevated Ajay Sachdewa to Group Chief Business Officer and appointed Aarti Marwaha Upadhyay as Chief Human Resources Officer, moves that align with its strategy to build a robust senior management bench.

Sachdewa, who has been associated with IIFL Home Finance in senior leadership roles, will now oversee business strategy, distribution, and customer engagement at a group level. His expanded responsibilities are aimed at driving growth across product lines and ensuring deeper market penetration. With extensive experience in housing finance and retail lending, Sachdewa is expected to play a crucial role in shaping the company’s next phase of expansion.

Meanwhile, Aarti Marwaha Upadhyay takes over as Chief Human Resources Officer, bringing with her a strong background in talent management and organizational development. She will be responsible for strengthening people practices, fostering leadership capabilities, and supporting the company’s growth vision through a future-ready workforce.

The leadership revamp also comes amid growing indications that seasoned banking professional Girish Kousgi may step into the top executive role. Kousgi, known for his previous tenure as Managing Director and CEO at Can Fin Homes, has been closely associated with the housing finance sector and is widely respected for his strategic acumen. His possible appointment is seen as a step toward enhancing governance and operational leadership at IIFL Home Finance.

These developments highlight the company’s focus on reinforcing leadership at a time when India’s housing finance market is witnessing robust demand, particularly in the affordable segment. With a strengthened senior team and the potential addition of Kousgi at the helm, IIFL Home Finance is positioning itself to capture growth opportunities more effectively.

Tags: Girish KousgiIIFL Home Finance

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BFSI

L Catterton’s India Consumer Fund Raises $200 Million in First Close

Observenow Desk

Global private equity firm L Catterton has raised $200 million (about ₹1,763 crore) in the first close of its India-focused consumer fund. The milestone reflects growing investor confidence in India’s expanding consumer market and signals strong appetite to support high-growth businesses across sectors such as food and beverage, fashion, health, beauty, and digital-first brands.

The new fund is part of L Catterton’s broader strategy to deepen its footprint in Asia, where consumer spending is projected to rise sharply in the coming decade. India, with its young population, increasing disposable incomes, and rapid digital adoption, is emerging as one of the most attractive destinations for consumer-focused investments. The firm’s decision to launch a dedicated India vehicle underscores its long-term commitment to the market.

L Catterton has a strong track record of investing in well-known global consumer brands and bringing strategic value beyond capital. With the India fund, the firm aims to identify and nurture companies that have the potential to scale rapidly while benefiting from its global network and expertise in brand-building.

According to industry experts, the first close of $200 million is likely to be followed by additional fundraising, as investors—ranging from global institutions to family offices—look to tap into India’s consumption-driven growth story. The fund is expected to make investments in both emerging startups and established companies, offering capital for expansion, innovation, and market leadership.

This development comes at a time when private equity and venture capital firms are increasingly diversifying portfolios toward sectors resilient to global volatility. For India, the move is another signal of global capital flowing into its consumer ecosystem, reinforcing the country’s position as a key growth market in Asia.

Tags: L Catterton

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BFSI

IndusInd Bank Appoints Pragati Gondhalekar as Head of Internal Audit

Observenow Desk

IndusInd Bank has announced the appointment of Pragati Gondhalekar as Head – Internal Audit and Senior Management Personnel, effective September 1, 2025. The move strengthens the bank’s leadership team as it sharpens its focus on governance, risk management, and compliance in an increasingly dynamic financial sector.

Gondhalekar brings more than 27 years of experience in audit and consulting, having worked across global and domestic institutions. Her professional journey includes senior roles at Deutsche Bank, L&T Financial Services, and PricewaterhouseCoopers, where she gained exposure to financial controls, risk frameworks, and operational excellence.

A chartered accountant qualified in both India and Canada, Gondhalekar also holds the Certified Internal Auditor designation and is a US Certified Public Accountant. This strong academic and professional foundation underscores her expertise in regulatory compliance, international standards, and corporate governance.

At IndusInd Bank, Gondhalekar will be responsible for providing independent assurance on the bank’s internal controls and governance processes, while also strengthening oversight across its diverse operations. She will work closely with the board and senior leadership to ensure alignment with evolving regulatory expectations and industry best practices.

The appointment comes at a time when Indian banks are facing greater scrutiny from regulators, with a strong emphasis on transparency, risk resilience, and digital security. By bringing in a seasoned leader, IndusInd Bank aims to reinforce its internal audit function as a critical pillar of sustainable growth and trust-building among stakeholders.

Industry observers note that her experience across multinational and domestic financial institutions positions her well to add value in a competitive banking landscape. Her leadership is expected to enhance the bank’s ability to identify risks early, ensure robust compliance, and strengthen operational discipline across all verticals.

Tags: IndusInd BankPragati Gondhalekar

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BFSI

RBI Clears Reappointment of R. Gandhi as Yes Bank Chairman

Observenow Desk

The Reserve Bank of India has approved the reappointment of Rama Subramaniam Gandhi as part-time non-executive chairman of Yes Bank. According to the approval, Gandhi will serve from September 20, 2025, until May 13, 2027. The decision reflects the central bank’s confidence in his leadership and extensive experience in India’s financial system.

Gandhi brings with him over 37 years of expertise in central banking. He served as Deputy Governor of the RBI from 2014 to 2017, overseeing critical functions such as currency management, financial stability, and payment systems. His tenure also saw him deeply involved in the regulation of non-banking financial companies, cooperative banks, and credit information systems.

Beyond his service at the RBI, Gandhi has held other notable positions, including a three-year term at the Securities and Exchange Board of India, where he contributed to strengthening market regulations. He also served as Director of the Institute for Development and Research in Banking Technology, where he was instrumental in advancing innovations in payment infrastructure and banking technology.

Yes Bank, which has undergone a major turnaround in recent years, is expected to benefit from Gandhi’s reappointment as it continues to reinforce its governance framework and expand its retail and corporate banking businesses. His experience in steering policy and regulatory frameworks is likely to provide valuable guidance to the bank’s board and management team.

Industry observers believe Gandhi’s presence will reassure investors and regulators alike, bringing stability and strategic direction at a crucial time for the bank. The move also highlights the RBI’s focus on ensuring that private sector lenders are guided by leaders with proven integrity and strong regulatory acumen.

Tags: Rama Subramaniam GandhiReserve Bank of IndiaYes Bank

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