Best of the Week: Can India’s scorching summer heat up the economy?

When I moved to Bengaluru in 2015, the city was known for having the best weather in the country. Don't get me wrong—the weather still isn't bad. However, what used to be an easy, breezy summer has now become unbearable. Last year, the city recorded its second-highest temperature ever—38.5°C on 28 April.

A place where fans once sufficed to get through the summer now demands an AC. If you're a regular reader of this newsletter, you probably remember my rant about it last year.

Bengaluru is sizzling again—or at least on the verge of it. Fingers crossed as the city enters a season increasingly linked to a severe water crisis.

The summer, however, could be great for the economy. With the India Meteorological Department (IMD) forecasting above-normal temperatures and more heatwaves from now through May, businesses across sectors—from beverages to personal care and appliances—are gearing up for a demand surge. You can read Suneera Tandon’s report on the economic effect of summer here.

On to, the best of Mint’s work from this week.

📉 Renowned global investor and commodities expert Jim Rogers has exited US stocks, expressing doubts about the long-term impact of US President Donald Trump’s economic policies. In an interview with Mint’s Aparajita Sharma, Rogers pointed to concerns over tariffs, immigration crackdowns, and federal budget cuts, arguing that these measures could further destabilize markets rather than provide relief. While he acknowledges Trump’s ambition to "make America great again", Rogers believes the administration will struggle to follow through on its promises. He predicts the worst US recession of his lifetime, warning investors to brace for economic turbulence.

🪫 Refex Green Mobility’s deal to buy 2,997 electric vehicles from Gensol Engineering, assuming ₹315 crore in debt, has raised governance concerns. Gensol, recently downgraded to default by rating agencies, allegedly used its balance sheet to build Blu-Smart Mobility—an electric cab firm co-founded by its chairman Anmol Singh Jaggi. While Gensol denies wrongdoing, its undisclosed financial ties to Blu-Smart, including car ownership and lease terms, have drawn scrutiny from investors and analysts. Read the complete report by Varun Sood here.

👔 Trent Ltd, the parent company of Westside and Zudio, has been a standout performer in India's retail sector, with its stock soaring 935% since March 2020. However, in 2024, it has been the worst-performing Nifty 50 stock, plunging 26% since January, raising investor concerns. Despite the recent decline, analysts see long-term growth potential in Zudio and Star, its supermarket chain, which could fuel future upside if scaled effectively. However, Dipti Sharma writes that intensifying competition from rival brands could pressure Trent’s recovery.

🏍 Trump’s push for lower tariffs has nudged India to reduce import duties on superbikes, making them slightly more affordable. While the premium motorcycle market is still small, the price cuts could encourage more riders to consider high-performance bikes, writes Shobha Mathur. Harley-Davidson, which recently re-entered India with a more affordable model, stands to gain from this shift. However, Royal Enfield continues to dominate the mid-to-premium segment with its strong market presence. Despite the tariff cuts, superbikes remain pricey, and locally made options are still far more budget-friendly. That said, growing enthusiasm for high-performance bikes and the rise of riding communities are fuelling interest in this segment.

🌞 Despite solar power being cheaper than coal, its share in India’s energy mix remains under 10%. While renewable power costs ₹2.5-4.8 per unit—lower than coal-based thermal power at ₹5-6 per unit—scaling up solar faces hurdles, reports Sayantan Bera. Key challenges include grid integration, intermittent supply, land acquisition, and the high cost of battery storage. India spent $30 billion on green capex in 2023, with cumulative investments expected to surpass $400 billion by 2032, but overcoming these structural bottlenecks remains critical to accelerating the transition.

🌴 The Andaman and Nicobar islands are at the centre of a development push as India eyes tourism and industry, but environmentalists warn of risks to the region’s fragile ecology. The ₹72,000 crore ‘Great Nicobar Project’ includes an airport, Galathea Bay Port, and power infrastructure, alongside tourism initiatives like new resorts, extended beach hours, and a proposed cruise terminal. The Nicobar Islands, a key biodiversity hotspot, could suffer from large-scale development, with the Galathea Bay area—home to endangered leatherback turtles—having minimal eco-protection. So, can the Andamans retain their pristine beauty despite a push for tourism? Soumya Gupta answers in this Primer.

💼 Headhunters for top corporate roles are facing a growing challenge—CXO candidates backing out after accepting job offers. Once a problem at junior levels, this trend has climbed to senior ranks as companies scout across sectors, leading to multiple offers for the same candidate. Recruiters now push firms to speed up hiring and track candidates closely. According to Heidrick & Struggles India, one in four finalists now drop out last-minute, often due to counter offers from current employers. Dropouts have increased by 20% this fiscal year. Devina Sengupta reports on the curious case of CXO dropouts.

💸 Global private equity giants TPG Capital and GIC have joined the race to acquire up to 49% of Chinese consumer durables firm Haier’s India business, sources told Sneha Shah, Ranjani Raghavan and Satish John. TPG has partnered with the Burman family, while GIC is bidding alongside the Goenka family of Welspun Group. The deal is expected to value Haier at around $2 billion. Other bidders include Warburg Pincus with Sunil Mittal’s family office and Bain Capital with Puneet Dalmia. Binding bids are expected by the end of next month. The stake sale is likely driven by compliance with India’s Press Note 3 (PN3) policy, which mandates government approval for investments from countries sharing a land border with India.

❗❗ Accenture has warned of heightened macroeconomic uncertainty, becoming the first major IT services firm to do so. Despite this, the company plans up to $3 billion in acquisitions this fiscal year, nearly half of its projected growth. Accenture CEO Julie Sweet noted a shift in outlook since the company's previous earnings call, citing geopolitical risks, high lending rates, and the Trump administration’s scrutiny of federal contracts. Accenture’s revenue for the quarter fell 5.8% sequentially to $16.66 billion, with no upward revision in its 7% full-year growth forecast, reports Jas Bardia. For the third quarter, Accenture expects revenue between $16.9 billion and $17.5 billion.

That’s all for this week!

If you have any feedback, want to talk about food, or have anything else to say about our journalism, write to me at siddharth.sharma1@htdigital.in or reply to this mail. You can also write to feedback@livemint.com.

Best,

Siddharth Sharma

Community Editor