Best of the Week: “100 to a dollar? Just a number,” says RBI chief
May 30, 2026
Inside Tata board meet, a decade of IBC, and India's looming power crisis.
Dear reader,
As the rupee flirts with the psychologically significant 100-per-dollar mark amid the West Asia conflict, Reserve Bank of India governor Sanjay Malhotra struck a calm but watchful tone. In an interview with Mint, Malhotra argued that the rupee may actually be undervalued after its recent slide, stressing that the RBI does not defend any fixed exchange-rate level and intervenes only to curb excessive volatility or speculation.
Despite rising crude prices and pressure on India’s import bill, Malhotra said the country’s balance of payments situation remains “manageable”, helped by resilient services exports, steady remittances, and robust foreign investment flows. Gross FDI hit a record $94.5 billion in FY26, signalling continued global confidence in India, he noted.
The governor repeatedly returned to one theme: inflation. It remains the RBI’s top priority, even in uncertain times, he said. While markets are pricing in possible rate hikes, Malhotra said the central bank remains data-dependent and flexible.
He also emphasized that the current crisis should push India to accelerate long-term reforms, from improving exports and easing business conditions to reducing energy import dependence through ethanol blending, renewables and domestic production. “We have never allowed a crisis to go waste,” he said.
On to the, the best of Mint’s journalism from this week:
Tata talks new businesses on Noel nudge
A rare six-and-a-half-hour board meeting at Tata Sons signalled a sharper focus on some of the group’s most ambitious, and loss-making, businesses. Triggered by concerns raised by Noel Tata, the board reviewed detailed plans for aviation, electronics, batteries, semiconductors and e-commerce for the first time since these ventures were launched. Executives from Air India, Tata Digital, Tata Electronics and battery venture Agratas presented updates on performance, funding needs and future strategy. The board is now expected to hold such operational reviews every six months.
IBC at 10: India’s big bankruptcy reset
A decade after India introduced the Insolvency and Bankruptcy Code (IBC), the law has reshaped corporate India and cleaned up bank balance sheets. Distressed giants such as Essar Steel India and Bhushan Power & Steel found new owners, while banks’ bad-loan ratio fell from 11.8% in 2018 to 2.22% in 2025. The code shifted power away from defaulting promoters and improved credit discipline. But delays and litigation continue to clog the system, with many cases overshooting deadlines. Now, “IBC 2.0” reforms aim to make resolutions faster, more flexible and better suited to modern corporate distress.
India’s new power problem begins after sunset
India’s power grid is facing a growing nighttime crunch as heatwaves push demand higher after solar generation fades. With temperatures crossing 45°C, evening demand between 6 pm and 10 pm is triggering outages across states such as Maharashtra, Haryana and Punjab. Around 40 GW of thermal capacity is also offline due to technical faults, worsening shortages. On Tuesday, India recorded an energy deficit of 15.87 million units, well above permissible limits. Experts say weak battery storage, overreliance on costly spot markets and inadequate long-term power contracts are exposing the grid’s biggest weakness: solar can power the day, but nights remain vulnerable.
Reliance Retail’s profit jump came from a balance-sheet makeover
Reliance Retail posted a sharp rise in FY26 profits, but most of the boost came from financial restructuring rather than core operations. The company’s profit rose ₹3,503 crore, almost matching the fall in finance costs after parent Reliance Retail Ventures Limited converted ₹40,000 crore of inter-company loans into zero-interest convertible debentures. The move slashed interest payments and improved the profitability of the operating retail business, which investors are likely to closely watch ahead of a potential listing. Analysts say the exercise effectively deleverages the business while making its financial health appear stronger and cleaner.
India’s taxpayer base is changing
Millions of Indians earning up to ₹5 lakh a year are no longer filing income-tax returns. The sharp drop is largely the result of a policy choice. As the government raised the basic tax exemption limit, many lower-income earners simply no longer needed to file returns. As a result, filings from this group have more than halved since FY24. But while smaller taxpayers are leaving the filing net, higher-income taxpayers are stepping in. Those earning between ₹5 lakh and ₹10 lakh have now become India's largest group of tax return filers. Tax collections suggest that India’s tax system is evolving. Personal income-tax revenue continues to grow, even as overall return filings have largely plateaued. The shift points to a changing tax landscape, driven by rising incomes, greater formalization, and targeted tax relief.
Why Cognizant is borrowing to buy back shares
When an IT company announces a share buyback, the assumption is, it’s using its cash pile to reward shareholders. But Cognizant is doing something different. The IT giant plans to fund part of its expanded $2 billion buyback using bank credit, a rare move in an industry where companies typically rely on their own cash reserves. Why take on debt when you have cash? Cognizant wants to keep shareholders happy while preserving capital for acquisitions and AI investments. The company recently agreed to acquire Astreya for $600 million and has repeatedly highlighted its long-term AI ambitions. Some analysts see the move as smart capital allocation. Others wonder if pressure from investors and the stock’s weak performance played a role. After all, Cognizant shares have lagged many of its IT peers. What's particularly striking is that while global tech giants are dialling back buybacks to fund AI infrastructure, Cognizant is doubling down on shareholder returns.
India’s costly love affair with cooking oil
India’s appetite for deep-fried snacks, from samosas and pakoras to jalebis and pooris, comes with a hefty price tag. The country now imports nearly 60% of its edible oil needs, making it the world’s largest importer. In FY26 alone, the import bill touched ₹1.72 trillion, more than the Centre’s annual allocation for agriculture. Things driving the prices higher are global supply disruptions, rising freight costs, a weaker rupee, and growing dependence on imported oils. The result: households are paying 7-15% more for cooking oil than a year ago. What makes the story even more fascinating is that India was once nearly self-sufficient in edible oils. Today, that achievement feels distant. Can India reduce its dependence on imports again? Experts say better farm productivity, technology adoption, and stronger support for oilseed growers are key.
Why Tata Motors is backing hatchbacks
For years, the narrative has been clear. Indian buyers have fallen in love with SUVs and moved on from hatchbacks. But Tata Motors has a different take. What if customers never abandoned hatchbacks at all? What if carmakers stopped giving them exciting reasons to buy one? Tata believes the segment lost its appeal because small cars were left behind when it came to fresh designs, new technology and premium features. Now, the company is betting on a revival, rolling out major upgrades to models like the Tiago and Altroz. Hatchbacks now account for just about one-fifth of India's car sales, down sharply from their glory days. Yet, with economic uncertainty, high fuel costs and affordability becoming important again, could small cars be ready for a comeback? For millions of Indians, a hatchback remains their first step into car ownership.
The EV effect on India’s oil bill
Every electric vehicle on the road means a little less petrol or diesel being burned. Multiply that by millions of vehicles, and the impact starts to get interesting. According to the International Energy Agency, EVs could displace up to 5 million barrels of oil demand globally by 2030. For India, which imports most of its crude oil, that's more than just an environmental win, it could be an economic one too. EV sales in India are already rising, with over 2.3 million units sold in 2025. Yet the country's EV story looks different from the West. Instead of electric cars, India is leading in electric two-wheelers, three-wheelers and buses. Will EVs increase electricity demand? Yes. But the impact is expected to remain manageable over the next decade.
As the rupee flirts with the psychologically significant 100-per-dollar mark amid the West Asia conflict, Reserve Bank of India governor Sanjay Malhotra struck a calm but watchful tone. In an interview with Mint, Malhotra argued that the rupee may actually be undervalued after its recent slide, stressing that the RBI does not defend any fixed exchange-rate level and intervenes only to curb excessive volatility or speculation.
Despite rising crude prices and pressure on India’s import bill, Malhotra said the country’s balance of payments situation remains “manageable”, helped by resilient services exports, steady remittances, and robust foreign investment flows. Gross FDI hit a record $94.5 billion in FY26, signalling continued global confidence in India, he noted.
The governor repeatedly returned to one theme: inflation. It remains the RBI’s top priority, even in uncertain times, he said. While markets are pricing in possible rate hikes, Malhotra said the central bank remains data-dependent and flexible.
He also emphasized that the current crisis should push India to accelerate long-term reforms, from improving exports and easing business conditions to reducing energy import dependence through ethanol blending, renewables and domestic production. “We have never allowed a crisis to go waste,” he said.
On to the, the best of Mint’s journalism from this week:
Tata talks new businesses on Noel nudge
A rare six-and-a-half-hour board meeting at Tata Sons signalled a sharper focus on some of the group’s most ambitious, and loss-making, businesses. Triggered by concerns raised by Noel Tata, the board reviewed detailed plans for aviation, electronics, batteries, semiconductors and e-commerce for the first time since these ventures were launched. Executives from Air India, Tata Digital, Tata Electronics and battery venture Agratas presented updates on performance, funding needs and future strategy. The board is now expected to hold such operational reviews every six months.
IBC at 10: India’s big bankruptcy reset
A decade after India introduced the Insolvency and Bankruptcy Code (IBC), the law has reshaped corporate India and cleaned up bank balance sheets. Distressed giants such as Essar Steel India and Bhushan Power & Steel found new owners, while banks’ bad-loan ratio fell from 11.8% in 2018 to 2.22% in 2025. The code shifted power away from defaulting promoters and improved credit discipline. But delays and litigation continue to clog the system, with many cases overshooting deadlines. Now, “IBC 2.0” reforms aim to make resolutions faster, more flexible and better suited to modern corporate distress.
India’s new power problem begins after sunset
India’s power grid is facing a growing nighttime crunch as heatwaves push demand higher after solar generation fades. With temperatures crossing 45°C, evening demand between 6 pm and 10 pm is triggering outages across states such as Maharashtra, Haryana and Punjab. Around 40 GW of thermal capacity is also offline due to technical faults, worsening shortages. On Tuesday, India recorded an energy deficit of 15.87 million units, well above permissible limits. Experts say weak battery storage, overreliance on costly spot markets and inadequate long-term power contracts are exposing the grid’s biggest weakness: solar can power the day, but nights remain vulnerable.
Reliance Retail’s profit jump came from a balance-sheet makeover
Reliance Retail posted a sharp rise in FY26 profits, but most of the boost came from financial restructuring rather than core operations. The company’s profit rose ₹3,503 crore, almost matching the fall in finance costs after parent Reliance Retail Ventures Limited converted ₹40,000 crore of inter-company loans into zero-interest convertible debentures. The move slashed interest payments and improved the profitability of the operating retail business, which investors are likely to closely watch ahead of a potential listing. Analysts say the exercise effectively deleverages the business while making its financial health appear stronger and cleaner.
India’s taxpayer base is changing
Millions of Indians earning up to ₹5 lakh a year are no longer filing income-tax returns. The sharp drop is largely the result of a policy choice. As the government raised the basic tax exemption limit, many lower-income earners simply no longer needed to file returns. As a result, filings from this group have more than halved since FY24. But while smaller taxpayers are leaving the filing net, higher-income taxpayers are stepping in. Those earning between ₹5 lakh and ₹10 lakh have now become India's largest group of tax return filers. Tax collections suggest that India’s tax system is evolving. Personal income-tax revenue continues to grow, even as overall return filings have largely plateaued. The shift points to a changing tax landscape, driven by rising incomes, greater formalization, and targeted tax relief.
Why Cognizant is borrowing to buy back shares
When an IT company announces a share buyback, the assumption is, it’s using its cash pile to reward shareholders. But Cognizant is doing something different. The IT giant plans to fund part of its expanded $2 billion buyback using bank credit, a rare move in an industry where companies typically rely on their own cash reserves. Why take on debt when you have cash? Cognizant wants to keep shareholders happy while preserving capital for acquisitions and AI investments. The company recently agreed to acquire Astreya for $600 million and has repeatedly highlighted its long-term AI ambitions. Some analysts see the move as smart capital allocation. Others wonder if pressure from investors and the stock’s weak performance played a role. After all, Cognizant shares have lagged many of its IT peers. What's particularly striking is that while global tech giants are dialling back buybacks to fund AI infrastructure, Cognizant is doubling down on shareholder returns.
India’s costly love affair with cooking oil
India’s appetite for deep-fried snacks, from samosas and pakoras to jalebis and pooris, comes with a hefty price tag. The country now imports nearly 60% of its edible oil needs, making it the world’s largest importer. In FY26 alone, the import bill touched ₹1.72 trillion, more than the Centre’s annual allocation for agriculture. Things driving the prices higher are global supply disruptions, rising freight costs, a weaker rupee, and growing dependence on imported oils. The result: households are paying 7-15% more for cooking oil than a year ago. What makes the story even more fascinating is that India was once nearly self-sufficient in edible oils. Today, that achievement feels distant. Can India reduce its dependence on imports again? Experts say better farm productivity, technology adoption, and stronger support for oilseed growers are key.
Why Tata Motors is backing hatchbacks
For years, the narrative has been clear. Indian buyers have fallen in love with SUVs and moved on from hatchbacks. But Tata Motors has a different take. What if customers never abandoned hatchbacks at all? What if carmakers stopped giving them exciting reasons to buy one? Tata believes the segment lost its appeal because small cars were left behind when it came to fresh designs, new technology and premium features. Now, the company is betting on a revival, rolling out major upgrades to models like the Tiago and Altroz. Hatchbacks now account for just about one-fifth of India's car sales, down sharply from their glory days. Yet, with economic uncertainty, high fuel costs and affordability becoming important again, could small cars be ready for a comeback? For millions of Indians, a hatchback remains their first step into car ownership.
The EV effect on India’s oil bill
Every electric vehicle on the road means a little less petrol or diesel being burned. Multiply that by millions of vehicles, and the impact starts to get interesting. According to the International Energy Agency, EVs could displace up to 5 million barrels of oil demand globally by 2030. For India, which imports most of its crude oil, that's more than just an environmental win, it could be an economic one too. EV sales in India are already rising, with over 2.3 million units sold in 2025. Yet the country's EV story looks different from the West. Instead of electric cars, India is leading in electric two-wheelers, three-wheelers and buses. Will EVs increase electricity demand? Yes. But the impact is expected to remain manageable over the next decade.