IndiGo Takes Global Wings

Good Morning. The recent years have been turbulent for all of India's airlines. The pandemic, global turmoil and supply chain issues — these airlines have been in for a rough ride. But the only one that has been able to pass through these troubled times is budget carrier IndiGo. Can IndiGo sustain its pace as it targets long-haul routes?

In other news, India’s largest lender, the State Bank of India (SBI), eyes a massive fundraise. Meanwhile, bad news for the movie business from Karnataka.

DECODE THE NEWS

IndiGo CEO Pieter Elbers: ‘With 3.5 Lakh Customers A Day, There’s Going To Be Complaints’

What?

IndiGo’s first flight from Mumbai to Manchester on July 1 marked a new beginning and international expansion for the airline.

It’s second long-haul flight headed to Amsterdam, followed the very next day.

Currently, the airline will operate three nonstop weekly flights to Europe.

“With the arrival of additional aircraft later this year, the frequencies could grow. London and Copenhagen will follow this year. We will further expand the long-haul footprint,” Abhijit Dasgupta, senior vice president, planning & revenue management, IndiGo, told The Core.

Why It Matters

The airline is also evaluating other potential long-haul markets and underserved routes to further expand its international routes.

Pieter Elbers, CEO of IndiGo, termed this a moment that marks the carrier’s transition into “growing global relevance”.

The airline also announced key partnerships in June in the international sector. Elbers said, “These partnerships have different roles and functions in the network... we will expand these partnerships, have more codeshares, reciprocal codeshares and we will further build on these partnerships. (Airline) Alliance is not a priority at this point of time.”

But Indigo’s international debut also comes at a time of global turmoil in aviation, thanks to supply chain problems, volatile fuel prices and risks because of geopolitical issues.

Back home in India, while IndiGo managed to survive the pandemic as its rivals struggled, it consistently faces complaints, often amplified on social media, from passengers about service issues.

Can Indigo keep up its winning streak in a space where foreign carriers dominate?

The Core spoke with CEO Elbers and vice president Dasgupta for their answers.

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CORE NUMBER

Rs 50,000 crore

That’s the total funds approved by the Union Cabinet on Wednesday to push agriculture and clean energy.

🌾 Farm push:

Rs 24,000 crore will be spent over six years under the PM Dhan-Dhaanya Krishi Yojana (PMDDKY).

The scheme targets 100 low-productivity districts, benefiting 1.7 crore farmers.

Focus areas: crop diversification, irrigation, storage, credit access, and sustainable practices.

⚡ Green energy boost:

Rs 20,000 crore equity infusion approved for NTPC Green Energy Ltd to scale solar, wind, and hydrogen.

NTPC aims to hit 60 GW green capacity by 2032 (currently at 6 GW operational, 26 GW under development).

🌱 Neyveli renewables ramp-up:

Rs 7,000 crore funds to invest in a wholly owned subsidiary of the Neyveli Lignite Corporation — NLC India Renewables Ltd — to boost India’s renewable energy efforts, which have been slow so far.

The Neyveli Lignite Corporation has the ambitious target of developing 10.11 GW of renewable energy by 2030.

FROM THE PERIPHERY

Oil Imports Edge Up! India’s oil imports from Russia rose slightly in January–June 2025 to 1.75 million barrels per day (bpd), up 1% from a year ago. Overall, India’s oil imports rose 4.3% year-on-year to 5.2 million bpd. Private refiners Reliance Industries and Nayara Energy made nearly half of those purchases through long-term deals, while state-run refiners relied on the spot market.

By the Numbers: Russia remained India’s top oil supplier, accounting for 35% of total crude imports, followed by Iraq, Saudi Arabia and the UAE. The US climbed to fifth place, up from sixth last year. In June alone, Russian imports surged 17.4% month-on-month to 2 million bpd, reducing the share of Middle Eastern and OPEC suppliers.

What’s Next? Indian refiners expect that any move by Trump is unlikely to disrupt oil supplies but could wipe out the thinning discount on Russian crude, especially as traditional and new suppliers ramp up output.

State Bank of India Eyes Big Fundraise: India’s largest lender, State Bank of India (SBI), has received board approval to raise up to Rs 20,000 crore through long-term bonds in FY26. The move comes as banks prepare for increased credit demand and to strengthen capital buffers.

Backdrop: SBI’s fundraising aligns with broader industry trends, where lenders are shoring up capital to meet regulatory requirements and support lending amid economic growth. SBI shares jumped 2% after the announcement, reflecting investor confidence.

What’s Next: The bank plans to issue these bonds in one or more tranches, potentially supporting infrastructure and green projects, boosting liquidity, and solidifying its balance sheet

IT Outlook Clouded by Tariffs: Wipro chairman Rishad Premji has flagged a cloudy demand outlook for India’s $283 billion information technology (IT) sector, citing U.S. tariff risks and geopolitical tensions, Reuters reports.

Backdrop: This warning comes as India’s IT sector struggles with a prolonged slowdown, marked by discretionary spending cuts, delayed projects, and cautious client budgets—issues recently outlined in several news reports.

What’s Next: While small green shoots of discretionary spending exist, major players like TCS and HCLTech have already reported muted June-quarter results. With U.S. tariff uncertainty looming large, a quick rebound in global tech demand looks unlikely.

Another Challenge for PVR-Inox? The Karnataka government has proposed a bill that would cap movie ticket prices to Rs 200; a move that could impact the revenue of chain multiplexes like PVR-Inox, according to a Business Standard report, especially if other states followed suit too.

Context: Already, PVR-Inox has been struggling to bring movie-goers back into the cinema, a topic The Core has covered before. To attract customers, they reduced their ticket prices and instead tried to earn revenue from food and beverages, though they offer steep F&B discounts on certain days too. 

Next Steps: The Karnataka government has invited comments for 15 days. Experts also say that exhibitors could challenge this ruling in court, and argue that premium services like IMAX screens cannot be subjected to this law.

PODCAST

On Episode 635 of The Core Report, financial journalist Govindraj Ethiraj talks to Rajashree Sarna, Partner at Grant Thornton Bharat as well as Ashish Nanda, President and Digital Business Head at Kotak Securities.

• Indian markets in consolidation mode

• First signs of tariff impact on the US economy

• Decoding India’s high tax refunds and collections

• Why India’s retail traders lose money in derivatives

• And France is considering cutting two holidays to save money

Editor’s Note: The Build On Blockchain column titled ‘How Credible Is Your Carbon Credit? Blockchain Can Call The Bluff’ on Wednesday’s edition was inadvertently linked to a previous post. You can read this week’s column here.

👥 THE TEAM

✍️ Zinal Dedhia, Salman SH, Kudrat Wadhwa | ✂️ Rohini Chatterji | 🎧 Joshua Thomas