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India’s Ropeways Go Big
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Good Morning. Have you ever been on a cable-car/ropeway ride in India? There are only a few routes, and they are meant to be short, scenic rides to hilltops or temples. But that’s now changing. The government’s Parvatmala Pariyojana is transforming the humble cable car into a national infrastructure project, attracting major players such as Adani Enterprises and GR Infraprojects. What was once a niche business could now become a serious asset class.
India’s benchmark indices closed higher on Wednesday after two consecutive days of lows. The BSE Sensex closed at 82,605.43, 575.45 points or 0.70% higher. The NSE Nifty50 closed at 25,323.55, an increase of 178.05 points or 0.71% increase.
In other news, passenger vehicle sales dip despite the festive season. Meanwhile, tech giant Apple is reportedly lobbying for changes to India’s income tax laws.
DECODE THE NEWS
India’s Ropeway Industry Is Having A Moment
What?
A small ropeways industry, both passenger and industrial, has quietly existed in India for decades. But that’s about to change, or at least the Indian government hopes to with its new policy push. The aspiration is simple — scaled-up projects will bring multi-fold growth in passenger usage of ropeways, something that is already happening in other parts of the world.
This September, billionaire Gautam Adani added ropeways to his sprawling infrastructure portfolio. Adani Enterprises will develop the 12.9-kilometre Sonprayag–Kedarnath ropeway, an investment of Rs 4,081 crore ($490 million), marking its debut in the sector. Adani’s is one of the biggest projects under the Parvatmala Pariyojana that the National Ropeways Development Programme launched during the Budget of 2022–23.
The government has plans for 250 ropeway projects within five years, spanning 1,200 kilometres, with an estimated total investment of Rs 1.25 trillion.
For a country that has fewer than 100 operational passenger ropeways today, most under two kilometres in length, this won't be easy.
Why?
Ropeways serve as a mass transport system in parts of Europe and Asia, and the government's aim is to replicate that. Several projects are already underway — a Rs 644 crore, 3.85 km long public transport ropeway in Varanasi, Adani’s Rs 4081 crore project to develop the 12.9 km Sonprayag-Kedarnath Ropeway and a 12.4 km route from Govindghat to Hemkund Sahib Ji with a planned investment of Rs 2800 crore.
For decades, India’s ropeway landscape was dominated by niche operators like Usha Breco and Udan Khatola, companies that built and operated short passenger ropeways mostly catering to pilgrimage routes.
The government push, a likelihood of high-teens returns and the opportunity to build and cash a long-term asset, have all collectively attracted interest of infra companies.
However, there could be some bumps on the road. In addition to building in hilly terrains, ropeways also face other concerns, leading to delays.
The Varanasi stretch, for instance, has been delayed because of multiple challenges, including low availability of tourist-free time to construct it.
Keeping this in mind, will India’s ropeways match up to its European counterparts?
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CORE NUMBER
1.04 million
That’s how many passenger vehicles (PV) India sold in the July–September quarter of FY2025–26, down 1.5% from a year earlier, according to the Society of Indian Automobile Manufacturers (SIAM). The dip came despite strong exports and a late-quarter boost from the GST 2.0 rate cut.
The Backstory: Utility vehicles (UVs), which make up nearly two-thirds of all PVs, fell 2.1%, while car sales stayed flat. Yet exports hit a record 2.42 lakh units, up 23%, showing global demand is heating up even as domestic buyers waited for tax cuts and festive discounts to kick in.
What’s Next: The September turnaround sales rose 4.4%, suggesting recovery is already underway. With the festive and wedding season in full swing, and rural sentiment improving on a healthy Kharif harvest, automakers expect momentum to carry into the second half of FY26.
Big Picture: Other segments are racing ahead — two-wheelers rose 7.4%, three-wheelers hit a record +9.8%, and commercial vehicles climbed 8.3%. The auto sector looks set to close FY26 stronger, riding a mix of policy reform, export tailwinds, and renewed consumer appetite.
FROM THE PERIPHERY
Trade Deficit Widens Again
India’s merchandise trade deficit widened to a 13-month high of $32.15 billion in September, as imports grew faster than exports following US tariff hikes on several Indian goods. The gap far exceeded economists’ forecast of $25.13 billion, Reuters reported.
By The Numbers: Imports jumped to $68.53 billion from $61.59 billion in August, driven by energy and machinery purchases, while exports rose modestly to $36.38 billion from $35.10 billion, even as sectors like textiles, shrimp, and gems & jewellery faced U.S. tariff pressure.
Fast Facts: The widening gap comes ahead of India-US trade talks, where New Delhi is expected to pledge higher US energy imports. In April–September, India’s goods exports to the US rose 13% to $45.82 billion, while services exports were estimated at $30.82 billion in September.
Record DII Inflows
Domestic institutional investors (DIIs) have pumped a record Rs 6 trillion into Indian equities in 2025 — the highest annual inflow since the BSE began maintaining such data in 2007. According to BSE data, the investment, which includes contributions from mutual funds, insurers, pension funds and banks, surpassed the Rs 5.26 trillion inflow seen in 2024, Business Standard reported.
The Backdrop: Foreign portfolio investors (FPIs) pulled out $23.3 billion (Rs 2.03 trillion) from secondary markets in 2025 but added $495.5 billion through IPOs and other routes. Despite US tariffs on Indian goods, the Sensex gained 5.8% and Nifty 4.4%, even as small- and mid-cap indices fell.
What’s Next: Experts expect DII momentum to sustain, powered by steady SIP and insurance inflows. “Unless there’s a global shock, DIIs should keep investing strongly,” said Rishi Kohli, chief investment officer at Jio BlackRock AMC.
Hyundai’s India Roadmap
Hyundai Motor India has announced an ambitious Rs 45,000 crore investment plan over the next five years under its 2030 Growth Roadmap, aiming to increase revenues 1.5x and cross the Rs 1 lakh crore mark by FY30. The company plans to make India its second-largest market after South Korea, with up to 30% of total production dedicated to exports. It also intends to launch its luxury brand, Genesis, in India by 2027.
Context: At its first-ever Investor Day on Wednesday, Hyundai outlined plans to introduce 26 new products by FY30, including a locally manufactured electric SUV by 2027. The roadmap coincides with a leadership transition, as Tarun Garg, currently chief operating officer, will take over as managing director and CEO from January 1, 2026, becoming the first Indian to lead the company.
Future: Following its IPO last year, the roadmap marks a key milestone for Hyundai, which has been a major player in India for nearly three decades. The push comes amid intensifying electric vehicle competition and new market entrants, making it crucial to reinforce its domestic position. The strategy aims to revive momentum after recent demand slowdown and muted response to the Creta Electric.
Apple’s Income Tax Hurdle
iPhone maker Apple is reportedly lobbying the Indian government to tweak its income tax laws, something the company believes could hamper its future growth in the country. Reuters reported sources as saying that Apple wants to ensure that it does not get taxed for the ownership of high-end iPhone machinery it gives to its contract manufacturers in the country.
Fast Facts: According to government officials who spoke to the news agency, under India’s Income Tax Act, Apple could face billions in taxes for the ownership of the machinery that it gives its contract manufacturers in India — currently Foxconn and Tata — to assemble iPhones in India.
Impact: Apple has increasingly turned to India to reduce its dependence on China to manufacture its iPhones. In China, the company does not face this particular problem. Could this become a hurdle in Apple’s India journey, something industry leaders and the government have been raving about?
PODCASTS
Surge In Gold And Silver Imports Drives Up India’s Trade Deficit
On Episode 704 of The Core Report, financial journalist Govindraj Ethiraj talks to John Pearson, Global CEO at DHL Express, from a larger conversation featured in our Weekend Edition.
Surge in gold and silver imports drives up India’s trade deficit
Why you will stop investing in IPOs if you hear these numbers
Oil prices fall on uncertainty but India stands to benefit
One country may leave global trade but 219 are embracing it, find out why and how
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