MAYDAY

JANUS VIEW

Air India Crash, Covid, Rare Earths: Tragic End To The Week

The crash of an Air India Boeing Dreamliner aircraft minutes after it took off from Ahmedabad, on its way to London, dominated the events of the last week. At the time of writing this, the death toll is uncertain, although it seems unlikely that there would be many survivors among the 242 on board.

The plane crashed into some residential units, killing and injuring many inhabitants of these buildings as well. Why and how it happened remains to be determined. The crash spells tragedy for those who lost their lives and their loved ones.

It is not good news for Boeing, Air India or Indian aviation in general, either. We offer the families of those bereaved and injured our condolences.

Covid Is Back

Covid is raising its head again, albeit in a desultory fashion. The number of reported cases is 7,000. This, probably, is a serious undercount, as most people have stopped testing for the disease, even after experiencing full-blown symptoms.

No serious study has been undertaken to assess the specific, accentuated harm that Covid can cause, and to educate the populace on the need to identify the infection they have.

Nor has there been any public acknowledgement in India of the rare but acute side-effects of the Oxford-AstraZeneca vaccine that was widely administered in India, under its local name, Covishield.

Some alternative vaccines are ready. However, the goal of developing vaccine platforms that can be swiftly adapted to specific germs of concern, so that mass production of relevant vaccines can be carried out, remains unmet. India has the requisite scientific and technical manpower. It is the political will to harness them, so that India could emerge a vaccine superpower, that is missing.

A Global Opportunity

India’s automobile industry has been fretting, along with its counterparts around the world, about the Chinese decision to weaponise their control of rare earth supply chains.

One way to combat this Chinese blackmail is for countries to do their own refining of rare earth minerals, dirty and polluting though the process might be, instead of outsourcing the job to China.

India has had a rare earth facility in the public sector to process the mineral sands of Kerala since 1950. Its focus, however, has been to separate out thorium-bearing rutile, so as to extract thorium for India’s fast breeder nuclear reactor.

Over the years, Indian Rare Earths Ltd has expanded its operations to take in the mineral sands on the East Coast, and set up another facility in Orissa as well.

Prospecting, mining and metallurgy expertise has to be augmented to uncover rare earth deposits elsewhere, particularly in the Northeast, and extract the needed metals.

Efficient motors need not all have permanent magnets.

How could this become a global opportunity for India’s engineers?

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AIR INDIA PLANE CRASH

Dreamliner Down

Air India Flight AI171, a Boeing 787-8 Dreamliner, issued a MAYDAY call within minutes of takeoff from Sardar Vallabhbhai Patel International Airport.

The aircraft, carrying 242 people — including 169 Indian nationals — issued the call within minutes of departure at 1:38 pm IST, but crashed just outside the airport perimeter, near Meghani Nagar, Ahmedabad.

This marks the first fatal hull loss involving a Boeing 787 and one of the deadliest incidents in Air India’s history. While the government is yet to announce the official death toll, and will do so after testing DNA samples, home minister Amit Shah confirmed that there was one survivor.

Air India, meanwhile, said in a statement, “We regret to inform that, of the 242 aboard, there are 241 confirmed fatalities.”

What The Airline Said: Air India confirmed the crash in a social media post, stating that the flight had 242 occupants: 2 pilots, 10 cabin crew members, and passengers from India, the UK, Portugal, and Canada.

In a statement, chairman N Chandrasekaran said, “We are deeply saddened by this loss. An emergency response centre has been activated, and support teams are working round-the-clock to assist the families.” He added that the airline is cooperating fully with investigators and will extend full support to authorities.

Air India CEO Campbell Wilson confirmed that the Boeing 787-8 operating Flight AI171 was involved in a fatal crash shortly after takeoff from Ahmedabad. In a statement issued hours after the incident, Wilson said the airline was “deeply saddened” by the tragedy and that its immediate priority was the welfare of the passengers, crew, and their families. “We are actively coordinating with authorities on emergency response efforts,” he said, adding that a team of Air India caregivers was being sent to Ahmedabad to assist with support on the ground.

The airline has also set up a helpline number (18005691444) and information desks at major airports and in London for family members.

What The Government Said: The Directorate General of Civil Aviation (DGCA) confirmed that the aircraft, registered as VT-ANB, crashed “immediately after takeoff.” Civil Aviation Minister Ram Mohan Naidu Kinjarapu said the government is on the “highest alert,” overseeing rescue and investigation efforts personally. All emergency units under the aviation ministry have been deployed.

Developing Events: After a temporary suspension for a few hours, the Ahmedabad airport was operational with limited flight operations. Passengers have been advised to check with airlines before heading to the airport.

Air India has arranged two special relief flights—one each from Delhi and Mumbai—to Ahmedabad to assist the next of kin of passengers and crew members aboard the ill-fated Flight AI171. Family members in Delhi and Mumbai wishing to travel can contact the airline’s dedicated helpline at 1800 5691 444. For those arriving from international locations, assistance is available via the hotline at 8062779200.

Boeing said it was in touch with Air India and Indian authorities and is ready to provide technical assistance. Its shares fell sharply in US premarket trading.

The Aircraft Accident Investigation Bureau (AAIB), along with the DGCA, has begun a formal investigation. Technical teams have recovered both the cockpit voice recorder (CVR) and flight data recorder (FDR). Preliminary observations suggest the crash may have been caused by either a catastrophic mechanical failure or a runway-related issue, but no official cause has been confirmed yet.

Local law enforcement and disaster management teams continue to secure the crash site, and a forensic investigation is underway. International aviation authorities have been notified, and regulatory agencies in the UK and the US are expected to monitor developments closely.

CORE NUMBER

2.82%

That’s India’s retail inflation in May 2025, down from 3.16% in April and the lowest in over six years, Business Standard reported. The decline was largely driven by a sharp slowdown in food prices.

🥦 Food trends:
Food inflation fell to 0.95% in rural areas and 0.96% in urban centres, led by deep deflation in vegetables (–13.7%), pulses (–8.22%), and spices (–2.82%).

🏙️ Rural vs Urban:
Rural headline inflation dropped to 2.59%, urban to 3.07%.

🏠 Other categories:
Housing inflation edged up slightly to 3.16%, while education held steady at 4.12%. Health inflation rose to 4.34%, transport to 3.85%, and fuel prices eased to 2.78%.

Maruti Downplays Supply Jitters: Maruti Suzuki said its operations remain unaffected by China's rare earth export restrictions—but a Reuters report claims it has cut e-Vitara production by two-thirds due to supply issues with critical electric vehicle (EV) components.

Catch Up Quick: Rare earth magnets, used in EV motors and steering systems, are now harder to source as China tightens control. Suzuki has already halted Swift production in Japan.

What’s Next? Auto majors like Maruti and Tata Motors are now pushing the Indian government to ease localisation norms under the production-linked incentive (PLI) scheme, hoping to stay on track amid mounting material shortages.

Auto Supply Glut: In a grim reminder of last year, auto sales are slowing down, yet again creating unsold inventory at dealerships. The Economic Times reported inventory stockpiles worth a record Rs 51,000-52,000 crore across India.

By The Numbers: While the report put the inventory at 34-38 days, a few days ago, the Federation of Automobile Dealers Associations (FADA) said in a press release that it was at 52–53 days. Passenger vehicle sales had reduced by 3.1% year-on-year, with the entry-level models being hit hardest.

Implications: The stockpile is a result of manufacturers pushing cars into the market despite low demand. FADA urged OEMs to adopt a "cautious, ground-reality-aligned approach to production planning" as consumer sentiments stayed gloomy.

India Wants Predictability From China. As Maruti downplays the impact of a reduced supply of rare earth minerals on its EV production, the Indian government has reached out to China to bring "predictability in supply chain for trade." 

Context: China’s move to halt rare earth mineral and magnet exports can seriously damage key Indian industries like EVs, semiconductor chips, satellites, medical equipments and telecommunication. These are areas where India has ambitious expansion plans, as The Core previously reported. But, China’s export controls are more about the minerals’ end-use; though EVs and medical device sectors might get import certificates more easily, India’s growing indigenous defence and export-heavy semiconductor industries could struggle.

The Pivot: India has reached out to China, according to Indian foreign ministry spokesperson Randhir Jaiswal. At the same time, Industries Minister Piyush Goyal called China’s halt a "wake up call” and said that that India is actively building alternate supply chains.

THE SIGNAL DAILY

Inside India’s Booming Private Members-Only Club Scene

India’s elite have been fraternising at old-school clubs for decades — I’m talking of your Gymkhanas and Golf Clubs in Tier 1 cities.  

But, for the uninitiated, becoming a member at these historic institutions is virtually impossible. Some of them have waiting lines of up to 30 years!

India’s new elite need another space. A growing private, members-only club scene is coming up to fulfil that demand. Some of these clubs are Soho House, Quorum, Jolie’s and The Bay Club, for example. 

A study from 2024 found that the private, members-only club market is growing at a CAGR of 17.8%. By 2027, the annual private club market size will reach 941 crore rupees. 

I’m your host Kudrat Wadhwa and you’re listening to The Signal Daily. We don’t do hot takes. Instead, we bring you deep dives into the how and why of consumer trends. 

In the latest episode of The Signal Daily, available Friday June 13th at 6 pm IST, we’ll learn about these new hangout spots of India’s elite. What’s different about this new wave versus the old-school Gymkhana type institutions? 

The Core produces The Signal Daily. Find us wherever you get your favourite podcasts. To check out the rest of our work, go to www.thecore.in 

PODCAST

On Episode 605 of The Core Report, financial journalist Govindraj Ethiraj talks to Aditi Nayar, Chief Economist and Head - Research & Outreach at ICRA, Safi Ahsan Rizvi, Advisor at National Disaster Management Authority as well as Captain Sam Thomas, President at ALPA India. 

• Markets plunge suddenly by over 990 points

• Retail inflation drops to 6-year low of 2.82%

• Air India’s shocking disaster.

• Heat waves return to India as monsoon stalls. A check on preparedness.

👥 THE TEAM

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