Nris In UAE: India's Capital Markets Expected To Boom On Strong Quarterly Results

Question: Capital market analysts are of the view that corporate performance in the third quarter of this year is expected to be better than last year's. Is there any factual evidence to support this prognosis?

ANSWER: Aggregate year-on-year net profit growth has returned to double digits in the second quarter, which ended on September 30 this year. According to market intelligence reports, the overall growth profit of 2,857 companies accelerated to a six-quarter high of 15.2 per cent especially in sectors like automobiles, capital goods, cement, oil and gas. Overall performance during the third quarter ending in December this year is expected to be stronger on account of the festive and wedding seasons which are likely to keep consumer demand buoyant. Companies are gearing up to get a share of the Rs7 trillion business that around six million weddings are expected to generate. This has been projected by the Confederation of All India Traders. The boost in sales of the luxury portfolio consisting of wedding apparel, including sarees, suitings and jewellery, will generate revenues to an unprecedented level.

The hospitality sector is booming as many hotels sell wedding packages at an average price of Rs15 million which sometimes go up to Rs100 million. Despite the rise in the price of gold, the demand for jewellery is substantially higher than last year. This year's wedding season is expected to be the most lucrative in view of the higher number of auspicious dates. The increase in the number of weddings will also have a significant impact on the real estate sector as the demand for housing is skyrocketing. This in turn will give a boost to the demand for white goods, electronic items and furniture. The impact of this huge consumer demand will undoubtedly be reflected in corporate profits for the current financial year ending on 31st March, 2026.

Question: As promised at the last international meeting on clean energy, is India reaching its goal of achieving the target of 500GW of green energy by 2030? What progress is being made in this regard?

ANSWER: In 2025, electricity generation from renewable sources like wind, solar, small and large hydro and nuclear sources will be one-third of India's total power output. To give exact figures, the country's non-fossil domestic generation of power stood at 301.3 billion units (BU) during April to September 2025, accounting for about 31 per cent of the country's total electricity generation of 962.53 BU. In the preceding financial year, non-fossil generation of power was 258.26 BU, representing a 27.1 per cent share in the total power generation of 952.29 BU.

These figures are based on the report of the Central Electricity Authority. Gujarat emerged as the top performer, followed by Rajasthan, Himachal Pradesh, Tamil Nadu and Karnataka. The total installed capacity for renewable energy has crossed 250GW, which is halfway towards the 2030 target of 500GW. Therefore, it is expected that India will achieve its ambition to fulfil the clean energy target well before the scheduled date.

Question: I have read media reports that labour laws have been rationalised. Will this reform help millions of workers in the unorganised sector especially those who are platform workers?

ANSWER: Gig workers will now have the benefit of social security in the form of health coverage, portable benefits that enables mobility across locations and jobs. Under the new legislation, gig and platform workers will now be entitled to get appointment letters, accident insurance and disability compensation. It will also extend portable provident fund contributions, pension eligibility regardless of employer continuity, and access to affordable credit. Online platforms will now be required to set aside one to two percent of their annual turnover towards welfare funds. However, the allocation will be limited to five percent of the amount paid or payable to workers.

It is estimated that the number of gig and platform workers will grow to around 24 million by 2030 from 7.7 million in 2021. This is on account of the fact that expansion of online platforms and adoption of digital services have created job opportunities for millions of new job seekers.

The Code on Social Security will now provide benefits to workers nationwide, whereas earlier it was confined to those States where rules and regulations existed. In short, the Code recognises gig and platform workers and ensures their inclusion in India's social protection architecture.

HP Ranina is a practising lawyer, specialising in corporate and fiscal laws of India.

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