The Summer of 2026 is cold on hiring

Recruitment firms are bracing for a softer summer, traditionally India’s second-biggest after the festive months.

While e-commerce, quick commerce and logistics companies are rolling out mandates, sectors such as banking, consumer durables and brick-and-mortar electronics retail are largely hiring only to replace attrition.

Recruiters say weak consumption sentiment and limited post-budget stimulus have dampened confidence, keeping permanent hiring on hold.

Demand is expected to tilt further towards gig and temporary roles, especially with India’s new labour codes making companies cautious about long-term headcount additions. Tier-II, III and even IV centres are likely to drive whatever incremental demand emerges, even as Tier-I recovers slowly.

A hotter summer, the Indian Premier League and the FIFA World Cup could lift hiring for frontline sales staff, delivery workers and service technicians. But overall, recruiters expect a patchy hiring season, with digital platforms outperforming physical retail and contractual hiring outpacing permanent job creation. Click here to read the full story by Vaeshnavi Kasthuril and Devina Sengupta.

THE MAIN STUFF

Pax Silica and India’s critical minerals moment

The United States is pushing India to join Pax Silica, a December 2025 initiative to diversify critical mineral supply chains away from China, which dominates rare earths, lithium, gallium and battery materials. The bloc aims to collaborate across mining, processing and technology.

India matters for its talent pool, manufacturing potential and sizeable rare-earth reserves, though it lacks scale, capital and processing technology. A ₹34,300 crore National Critical Minerals Mission signals intent, but results will take time.

Pax Silica is unlikely to rival China soon; its success hinges on coordinated investment, tech-sharing and India emerging as a manufacturing and demand hub rather than a standalone miner. Read more.

India-US trade deal: Exporters eye a summer rebound

With US tariffs cut to 18% from 50% and policy uncertainty easing, Indian exporters are preparing to resume summer shipments, betting that the relief could double exports to the US over the next 4-5 years.

Labour-intensive sectors such as textiles, apparel, gems and jewellery, leather, agriculture, seafood, pharmaceuticals, electronics, and chemicals stand to gain the most.

• Textile exporters say paused US orders are returning as India regains a cost edge over peers like Bangladesh, Vietnam and China.
• The gems and jewellery sector, hit hardest by earlier tariffs, expects a sharp recovery, with industry leaders projecting export growth of up to 30% as duties move towards zero for diamonds and gems.
• Consumer-facing segments such as ayurveda and seafood also see stronger price competitiveness and access to new retail channels.

🔗 US tariff cut to revive summer bookings for India’s exporters

I-T dept eyes GST data to widen direct tax base

The Income Tax department plans to mine GST data to widen India’s direct tax base and improve compliance. The idea is to leverage GST’s granular, tech-driven data on transactions, supply chains and transport.

This, the taxman believes, can help identify underreported income and expand voluntary compliance through non-intrusive “nudge”. Experts say better data sharing, pre-filled returns and risk-based analytics can deepen the tax net without raising rates.

Direct tax collections have grown less than 5% so far in FY26, highlighting the urgency to tap GST data, as reported incomes still cover less than 40% of nominal GDP. Read more.

Startup Singam opens doors beyond capital

Startup Singam, a Tamil-language pitch show, has emerged as more than a TV funding format — it is a visibility and legitimacy platform for founders outside metro, English-first ecosystems.

Featuring entrepreneurs across sectors, the show reframes pitching in the founders’ own language, while offering coaching, scrutiny and access to investor networks.

For many participants, the real value has come less from on-air cheques and more from customer trust, distribution leverage and fundraising literacy. By making entrepreneurship legible to families, communities and markets long excluded from startup capital, Startup Singam turns mass media into an entry point for building durable businesses. Read more.

A problem of renewables aplenty

The government has asked the Central Electricity Authority and Grid India to jointly study solutions to rising curtailment of solar and wind power, triggered by surplus generation and inadequate transmission.

Recent production cuts in Rajasthan and Gujarat—amounting to about 18% of monthly solar output—have stabilised the grid but have caused heavy losses for developers. The core issue is that renewable capacity is growing faster than transmission, storage, and system flexibility.

Industry executives warn that unless power transmission planning, storage integration, market-based dispatch and discom reforms improve in tandem, curtailment risks will deter investment and slow India’s renewable energy ambitions. Read more.

CHART OF THE DAY

From earnings to new inflation data, what's in store for the week ahead.

NEWS IN NUMBERS

$600 billion: The planned AI spending by big tech firms in 2026, causing investor unease over profitability and potential threats to the software industry.

13-15%: The revised FY26 loan growth guidance issued by State Bank of India, raised by 100 basis points, on the back of trade deals and recent Union Budget announcements.

10%: The percentage of workforce that Jack Dorsey's tech company Block plans to lay off as part of a broader business overhaul.

₹301.50 crore: The domestic net box-office collection of Sunny Deol’s war drama Border 2 in 16 days since its release, making it one of the highest-grossing films of 2026.

3: The number of initial public offerings opening for subscription this week, with Aye Finance and Fractal Analytics on the mainboard and Marushika Technology in the SME segment.

7%: The share of Super Bowl ad minutes held by carmakers in 2025, down from 40% in 2012, and set to go further down this year.

863 tons: The total volume of gold bought by global central banks in 2025, below the over‑1,000‑ton annual pace of the previous three years but still signalling robust demand.

AROUND THE WORLD

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• Peace negotiations give freezing Kyiv a hint of hope
• Why hangovers get worse as you get older
• Apple prepares to kick off 2026 with the iPhone 17e, and more

LOUNGE RECOMMENDS

A handy food and bar guide to Barcelona

Barcelona is arguably one of the foremost culinary destinations with an expansive range of wines, and boasts an energetic drinking culture.

Creativity is encouraged, be it in food or in the winery designs. Restaurants here are taking inspiration from traditional fare and giving it a modern spin. The food at very humble bodegas or tapas bars is delicious, and the average glass of wine is pretty affordable. Read more.

WHAT THE FACT

Catchiest PSA of them all!

In 2012, Australia’s Metro Trains, with agency McCann, released an animated public service announcement called “Dumb Ways to Die”.

Featuring cute characters meeting absurdly grim ends, the song went viral worldwide. Dubbed the “Gangnam Style of PSAs”, it spawned games, YouTube spin-offs, and even holiday specials. Despite its dark humour, the campaign was remarkably effective, helping reduce rail-related accidents by over 20% in the following year.

Edited by Alokesh Bhattacharyya. Produced by Tushar Deep Singh.

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