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good morning. It’s a good week in India where everything looks golden. GDP rises and rain falls, chess champion Gukeshdmaraj defeated Magnus Karsen once again. (Yes, I know Trump will probably do something to jinx it, but let’s enjoy it while it continues).
In today’s newsletter, ducks will line up later this week. But first, Indian aviation is dumping everything about the turkey.
Going to a cold turkey
The business impact of Operation Sindoah continues as India expands its actions against Turkish companies in the aviation sector after it cancelled its security clearance for Turkish land management provider Solebi last month (reported in this newsletter).
Low-cost airline Indigo has been instructed to terminate its lease agreement with Turkish Airlines by August 31st. Last month, the government had sought permission to expand its “wet lease” with Turkish flag carriers. The Indian company had been seeking a six-month extension for the two widebody jets, but was granted a three-month “one-time last extension.”
Although he has not commented on the issue, Indigo appears to be actively reducing its involvement with Turkish Airlines. The companies still have a code-sharing arrangement for flights from India to Europe and the US, at least for now. However, in the meantime, Indigo announced a partnership with Air France KLM, Delta and Virgin Atlantic to provide more coverage for these routes, ordering 30 wide-body aircraft with Airbus, doubling the original order size.
Rival Air India is looking for alternatives to the techniques of Turkish, an aircraft maintenance provider, as Air India’s chief executive Campbell Wilson told local media. However, he said his company is aware of public opinion on the issue of corporate partnership with the Turkish group after Ankara supported Pakistan during a military escalation last month. India is not capable of maintaining the entire company’s widebody fleet, so airlines have partnerships in other places such as Singapore, Abu Dhabi and Turkey. Wilson did not mention the exchange timeline.
Meanwhile, the Chilevi case claims that false dismissals have passed through three courts. In the company’s early setback, the courts did not allow cancellation “stays.” In other words, Zelevi cannot handle the operation of the airport until the verdict is upheld.
To sum up, these moves in the aviation sector establish that India is not afraid to use access to huge markets to punish businesses for the geopolitical alliance of the government. (Aside from that, I didn’t know that there was too much Turkish involvement in Indian aviation.) For local airlines, this means that it now comes with alliances with global players at risk of disruption caused by geopolitical tensions. The conditions for Indian companies to expand their scope and build capacity in these areas are ripe. If Indian businesses can take over the handling of the ground overnight, as in the case of Shirevi’s cancellation of clearance, then there is no reason for foreign operators to begin with.
Do you think India can run all airport operations without foreign collaboration? Hit a reply or email indiabrief@ft.com
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Ducks consecutively
The Indian economy rose 7.4% during the January-March period © Copyright(c) 2025 Edited by Shutterstock. It will not be used without permission.
The (economic) signs are good. GDP data was made late on Friday evening and was blown away beyond most estimates. The Indian economy rose 7.4% during the January-March period, up from 6.4% in the last quarter. The preliminary formula estimates of GDP growth throughout the fiscal year suggest that India only increased 6.5% this year, down from 9.2% this year. All the bad news that consumer companies were reporting was particularly realistic in the first half of the fiscal year. But for now, it looks like we’ve rounded the corner.
The tax revenue figures that came out over the weekend reflect this increase in economic activity. For two months, goods and services tax collections were firmly above RS2TN ($24 billion), up 16.4% from the recorded levels reported in April. Overall, monthly GST collections increased by around 10-11% in last fiscal year. However, there is also a need to be careful here. Growth in May is primarily import-driven and not domestic consumption. Total revenue from domestic transactions increased by 14%, while revenue from imports was significantly higher at 25%.
This growth momentum adds to the good news about this year’s monsoon. With over 40% of Indians working in agriculture, a good monsoon will further promote to an already favorable rural economy. This is a major backdrop for the Central Bank’s Monetary Policy Committee meeting later this week. What is expected is that it will be done for hat-tricks and reduction rates for the third consecutive time since February, further boosting consumption.
The stock market seemed to be the only one not impressed. The benchmark index fell 0.75% on Monday, closing the flat at -0.14%.
Go to the diagram
The global steel industry is upset after Trump announced plans to double sector tariffs. This is a simple way of looking at it.
$4.56 billion
Exports to us in India
My Mantra
“I don’t think you need to do it all. Delegation can empower your team and allow you to do it faster, smarter, faster. Most importantly, it helps you identify the next leader.”
Andrew Holland, Head, New Asset Class, Nippon India MF
Each week we invite successful business leaders to teach us the mantras of work and life. Want to know what your boss is thinking? Reply to indiabrief@ft.com and nominate
Simple questions
How much do you think the Reserve Bank of India will cut on Friday? Join the vote below or click here.
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Buzzer round
On Friday we asked: What connects Spazl, Ptitim, Paccheri, Testaroli?
The answer is that they are all kinds of pasta.
This week’s Anilda Datta is our winner, followed by Yaman Sinhania and Sushant Jain. Congratulations!
Thank you for reading. Indian Business Briefing is compiled by Tee Zhuo. Send feedback, suggestions (and gossip) to indiabrief@ft.com.
