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  5. Business News Wrap, November 12: Air India-Vistara merger complete; retail inflation rises to 6.21%, and more

Business News

Business News Wrap, November 12: Air India-Vistara merger complete; retail inflation rises to 6.21%, and more

Upstox
By Upstox News Desk

4 min read | Updated on November 12, 2024, 19:50 IST

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SUMMARY

Business News Wrap: From Air India-Vistara merger to PSBs seeing strong growth in the first half of FY24-2025, catch top stories of the day.

air india vistara merger.webp

India's premium carrier Vistara has operated its final flight as an independent airline before merging fully with Air India.

The completion of the Air India-Vistara merger on Tuesday marked a new era in the country's aviation sector. Meanwhile, Indian households are feeling the pinch as inflation crept up to 6.21% in October, with food prices taking the lead in this surge—an area that might just steer central bank decisions in the months ahead. Public Sector Banks (PSBs) have given reason for optimism, reporting strong growth and healthier balance sheets.

Take a look at today’s top business stories:

Air India and Vistara complete merger

Air India Group on Tuesday announced the complete operational integration and legal merger between Air India and Vistara. The unified Air India Group now operates a fleet of 300 aircraft, covering 55 domestic and 48 international destinations across 312 routes, with over 8,300 weekly flights. The merged full-service Air India brand, with 5,600 weekly flights and a fleet of 208 aircraft, serves more than 90 destinations. Singapore Airlines, which held a 49% share in Vistara, became a 25.1% shareholder in the resultant Air India Group. Vistara's experience remains available to customers, with identifiable aircraft bearing a unique four-digit code starting with "2".

“The merger of Air India and Vistara completes the consolidation and restructuring phase of the Air India Group’s post-privatisation transformation journey, and is thus a significant milestone," Air Indian CEO Campbell Wilson said in a statement.

India’s inflation hit 6.21% in October as food prices soar

India’s retail inflation jumped to 6.21% in October, with the sharpest pain felt at grocery stores. Housing and electricity costs also contributed to the inflationary trend, but economists point to food, especially vegetables, as the primary culprit. The inflation rate for vegetables, fruits, and oils and fats registered a marked increase as the Consumer Food Price Index (CFPI), which tracks food price inflation, rose to 10.87% in October. Analysts warn that this uptick might push inflation beyond RBI targets, possibly leading to tighter policies in the coming months.

Buoyed by reforms, PSBs see strong growth in first half

India’s Public Sector Banks had a solid first half of FY25, with overall business rising to ₹236.04 lakh crore. Credit portfolios expanded by 12.9%, deposits grew by 9.5%, and net profits shot up by 25.6% year-over-year. The finance ministry credited reforms like the EASE initiative and the Insolvency and Bankruptcy Code for the strong performance of PSBs.

India’s PV exports skyrocket, powered by global demand and “China Plus One”

India’s solar PV exports have surged, growing 23 times in value from FY2022 to FY2024. This growth, largely driven by companies like Waaree Energies, Adani Solar, and Vikram Solar, is powered by global demand—especially from the US, which received 97% of India’s PV exports. Backed by incentives from the US Inflation Reduction Act, Indian firms are now building PV manufacturing facilities in the US as part of the global “China Plus One” strategy, which encourages diversification away from Chinese supply chains.

Scindia provides an update on the Starlink license

Union minister Jyotiraditya Scindia on Tuesday said India was ready to give a license to Starlink to operate satellite internet service in the country, but added that the company have to “check all the boxes.” The satellite communication services major is in the process of completing all the requirements and will get a licence once they complete the process, the minister added. Replying to a question on the status of the licence for Starlink, Scindia said, "We are more than happy to give them (licence) if they (Starlink) comply with all the conditions. You have to look at it from a security perspective, making sure that all security concerns are addressed. When they do that we will be more than happy to give it. Obviously, they are in the process of doing it."

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Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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