Welcome to The Morning Report, brought to you by Renil S Varghese — your quick dive into the top stories shaping the business world today. Fast, insightful, and to the point.

1. West Asia crisis creates a need to reprioritise policies and fiscal spending: CEA Nageswaran

India faces rising macroeconomic risks in FY27 due to ongoing tensions in West Asia, Chief Economic Advisor V Anantha Nageswaran said. He noted that the conflict poses short‑term pressures but should not derail India’s long‑term growth strategy. With nearly 87 per cent dependence on imported crude and strong reliance on Gulf remittances, higher oil prices and supply disruptions are already affecting the economy. Speaking at an MCCI event, Nageswaran said India enters this phase with over 7 per cent growth but must prioritise long‑term capacity building. He stressed manufacturing transformation, supply resilience, state‑level execution, and closing skill gaps to raise manufacturing’s share to 25 per cent of GDP.

2. Cognizant to buy Astreya for about $600 million

Cognizant Technology has agreed to acquire Astreya, an IT services firm focused on AI infrastructure and data centres, in a deal valued at about $600 million. The acquisition is expected to strengthen Cognizant’s AI infrastructure capabilities as companies increase spending on artificial intelligence. The transaction is likely to be announced on Wednesday and is expected to close in the second quarter of 2026, subject to regulatory approvals. Astreya, founded in 2001, manages data centre infrastructure and AI lab environments for several major global technology firms. The deal follows recent AI‑focused acquisitions by Cognizant, including 3Cloud and Belcan, amid rising competition and a challenging demand outlook for IT services.

3. Govt clears legal path for 100% ethanol-powered vehicles

The government has moved to align vehicle regulations to support a shift toward 100 per cent ethanol blending, formally integrating E100 fuel into the regulatory framework. The Road Transport Ministry has issued draft amendments to the Central Motor Vehicles Rules, to allow certification of vehicles using ethanol blends up to E100 and biodiesel up to B100. The changes expand emission norms, update fuel classifications, and raise the vehicle weight threshold to include light commercial vehicles. While E20 will remain the nationwide standard, the move enables flex‑fuel vehicles. India’s ethanol blending stood at 20 per cent after petrol sales rose six per cent in 2025–26. Industry highlights feedstock, efficiency, infrastructure, and cost challenges as key hurdles to E100 adoption.

4. Investment in gold surpasses jewellery demand for first time in India

Investment demand for gold in India exceeded jewellery consumption for the first time in the March quarter of 2026, driven by volatile markets and record prices. The World Gold Council reported a 54 per cent rise in investment demand to 82 tonnes, while jewellery demand fell 19 per cent to 66 tonnes. Domestic gold prices surged 81 per cent year‑on‑year, hurting jewellery affordability but boosting gold’s appeal as a safe haven. Overall gold demand rose 10 per cent to 151 tonnes, while its value nearly doubled. Strong inflows into gold exchange‑traded funds and bar purchases led investment demand. Gold imports increased 39 per cent despite elevated prices, as uncertainty sustained investor interest.

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Published on April 30, 2026