Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, January 15, 2025. This is Nelson John, let's get started.

Telangana owes roughly ₹3,900 crore to alcohol businesses, a substantial amount of dues that has been accumulating under the administration of Telangana Beverages Corporation Ltd (TGBCL), a state-run entity controlling alcohol sales. This situation stems from TGBCL's static pricing model since 2018-19 and delayed payments, straining suppliers like United Breweries Ltd (UBL), which has even halted beer supplies due to unprofitability. TGBCL's financial woes are due to decreased non-tax revenue, which fell dramatically short of the 2024-25 projections, coupled with high expenditures from recent political commitments. This financial shortfall has led to payment delays, with outstanding dues only partially cleared post-September 2024. Varuni Khosla explains what went wrong with the alcohol industry in Telangana.

The recent heavy selling by foreign portfolio investors has significantly impacted the Indian stock market, wiping out nearly ₹60 trillion in investor wealth over the last three and a half months. This sell-off, primarily fueled by FPIs withdrawing a net ₹1.85 trillion since October, has coincided with a weakening rupee and rising oil prices,reports Ram Sahgal. Market capitalization plummeted from a high of ₹473.84 trillion on September 27, when the Nifty 50 index peaked, to ₹414.23 trillion recently, marking a 12% drop in the benchmark index. Both the Nifty Smallcap 250 and Nifty Midcap 150 indices have similarly fallen by 13.5% from their late September highs. The primary drivers for this exodus include the depreciation of the rupee and escalating crude oil prices, influenced by new US sanctions on Russia and anticipated policy shifts as the US transitions from President Joe Biden to President-elect Donald Trump. 

India is currently in talks with several countries to establish "data embassies" on its soil, a move aimed at allowing these nations to store and control their sovereign data while enhancing India's role as a secure data hub. Particularly advanced are discussions with the UAE to set up its first data embassy in India, Shouvik Das reports. The plan involves creating special zones dedicated to housing these data embassies, similar to how consular sections of embassies operate, ensuring the home country manages all privacy and access controls. The idea, inspired by Estonia's establishment of the world’s first data embassy in Luxembourg following a cyberattack in 2007, could provide India with significant geopolitical leverage. Data embassies could serve as secure storage sites during crises or allow countries to manage data without adhering to local data laws, potentially simplifying international business operations.

The national rural job guarantee scheme, MGNREGS, might see a budget boost in FY26. Although this year's funding isn't expected to change, there's talk of increasing it next year due to potential challenges in the rural economy. Despite some recent improvements in rural consumption thanks to better rainfall, the number of people seeking work under the scheme hit a four-month high in December, reaching 25.73 million. This spike shows there's still a big need for support, Dhirendra Kumar and Rhik Kundu report. A parliamentary committee has even pushed for higher wages in the scheme to keep up with inflation, which would mean more money is needed. So, while FY25's allocation might stay the same, the government is looking to ramp up funding in FY26 to keep supporting those in need. 

Kolkata is experiencing a renaissance in its real estate and business sectors, shaking off its old image as a less business-friendly city. Recent developments include major projects like Phoenix Mills Ltd's creation of the city's largest mall in Alipore and Ambuja Neotia Group's expansion into luxury hotels and residential projects. The city is also drawing attention from the IT sector, as highlighted by Infosys opening a major development centre in New Town, which is expected to house 4,000 employees. This move supports the state's ambition to transform the area into a 'New Silicon Valley,' potentially generating 75,000 jobs. Despite these advancements, Kolkata's growth is hampered by outdated land acquisition laws that complicate large-scale development projects, Madhurima Nandy writes. While the state government has acknowledged these issues and promised reforms, progress has been minimal.

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