Best of BS Opinion: Cautious IT optimism meets fiscal limits, Rupee stress

Here are the best of Business Standard's opinion pieces for today

The Indian IT sector is beginning to show tentative signs of life after a difficult year, though the recovery remains uneven and fragile. The Nifty IT Index fell 12.5 per cent in 2025 but has clawed back about 12 per cent over the past three months. Third-quarter results, typically seasonally weak, were largely in line or better than expectations, and management commentary has turned cautiously optimistic after several subdued quarters, notes our first editorial. Banking, financial services and infrastructure clients are showing clearer momentum, and strong balance sheets are enabling targeted acquisitions in AI, cloud and engineering, helping sentiment stabilise despite persistent geopolitical and currency risks. 

 

Meanwhile, our second editorial highlights that fiscal consolidation has been one of the defining features of recent Union Budgets, with the government steadily bringing the fiscal deficit down from its pandemic peak and staying on track to move below 4.5 per cent of GDP. However, progress on disinvestment has been far weaker. Despite a strategic disinvestment policy announced in 2021-22, proceeds this year have been modest at under Rs 9,000 crore. With private investment still subdued and nominal growth softer, accelerating disinvestment is increasingly seen as both a fiscal and reform imperative, even as political resistance remains. 

Ananth Narayan examines the persistent tension facing market regulators between acting too lightly and acting too heavily. As India’s markets deepen and retail participation expands, the costs of regulatory errors on either side have risen sharply. Using the evolution of the AIF sector as a case study, he shows how rapid growth and sharp practices led Sebi to tighten rules, before structured engagement with industry helped refine them. The episode underscores the need for regulatory capacity, independence and credible self-regulation to protect investors without choking innovation. 

In her column, Rajeswari Sengupta argues that the Rupee’s weakness in 2025 reflects a deeper capital-flow problem rather than weak macro fundamentals. Despite strong growth and low inflation, India saw record portfolio outflows and stagnant FDI, even amid China+1 diversification. With outward investment offsetting inflows, net FDI has hovered near zero. She concludes that currency intervention can only buy time, and that restoring confidence will require structural reforms, placing added pressure on the forthcoming Budget. 

Finally, Sneha Pathak reviews Michael Grunwald’s We Are Eating the Earth, which shifts the climate debate away from energy and towards land use and agriculture. Drawing heavily on Tim Searchinger’s research, the book argues that deforestation, soil depletion and water stress driven by food systems pose risks as serious as fossil fuels. Despite its dense structure and US-centric lens, the book stands out for its policy focus and urgency, making a strong case that climate action will fail unless agriculture is rethought at scale. 

Stay tuned!