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By:

Correspondent

23 August 2024 at 4:29:04 pm

Trust Reset

As the recent protests over the NEET paper leak showed, India’s examination system has reached a point where incremental repairs are no longer enough. The appointment of a high-powered task force on examination reforms, headed by technology pioneer Nandan Nilekani, is therefore not merely an administrative response to the NEET-UG paper leak crisis but a concrete attempt to rebuild confidence in one of the country’s most important public institutions. Examinations are gateways to opportunity,...

Trust Reset

As the recent protests over the NEET paper leak showed, India’s examination system has reached a point where incremental repairs are no longer enough. The appointment of a high-powered task force on examination reforms, headed by technology pioneer Nandan Nilekani, is therefore not merely an administrative response to the NEET-UG paper leak crisis but a concrete attempt to rebuild confidence in one of the country’s most important public institutions. Examinations are gateways to opportunity, social mobility and professional ambition. For millions of students across the country, a competitive examination represents years of sacrifice by families and the possibility of a better future. When question papers leak repeatedly, evaluation systems fail or allegations of manipulation emerge, the resulting damage strikes at the idea of fairness itself. The crisis surrounding NEET-UG exposed uncomfortable vulnerabilities in the country’s examination infrastructure. The resignation of Education Minister Dharmendra Pradhan and the subsequent appointment of Pralhad Joshi with additional charge of the ministry underlined the political seriousness of the issue. But political accountability alone cannot fix a structural problem. That is why the composition of the new task force is a move on the right direction. It brings together expertise from technology, space research, intelligence, education administration and logistics. Nilekani’s appointment is particularly significant. The former Infosys chief executive and architect of Aadhaar has experience in building large-scale digital public infrastructure involving hundreds of millions of citizens. The Aadhaar project itself was born out of a similar challenge: how to create a reliable identity system in a country where leakages and duplication weakened welfare delivery. India’s examination system now requires the same kind of thinking. The committee’s mandate to examine the entire examination lifecycle - from question paper creation and distribution to candidate verification, evaluation and results - is the right approach. The problem lies in multiple weak points where human intervention, poor security protocols and outdated processes can create opportunities for malpractice. Technology will inevitably be central to the solution. Artificial intelligence can help detect unusual patterns, blockchain-based verification can strengthen record security and better data systems can improve transparency. But a secure examination system requires independent oversight, professional management, clear accountability and swift punishment for wrongdoing. India’s National Testing Agency was created to bring efficiency and standardisation to public examinations. Its credibility must now be restored through reforms that are visible and trusted by students. The Nilekani task force has been given the difficult job of repairing that trust. The government has chosen a committee led by people with experience of managing complex national systems. It is a sensible first step. The real test will now be whether its recommendations translate into action.

Real estate sentiment steadies ahead of 2026

India’s real estate sector appears to have regained its equilibrium in the final quarter of 2025, with stakeholder sentiment stabilising after a phase of moderation earlier in the year. The 47th edition of the Knight Frank–NAREDCO Real Estate Sentiment Index for Q4 2025 (October–December) indicates that both current and future outlooks remain firmly in the optimistic zone, underpinned by improving macroeconomic visibility, easing inflationary pressures and steady funding conditions.


The Current Sentiment Score edged up marginally to 60 in Q4 2025 from 59 in the preceding quarter, while the Future Sentiment Score held steady at 61. Although these readings remain below the peaks witnessed during 2023–24, they reflect a market that has absorbed recent volatility and is now progressing on more stable fundamentals. The stabilisation suggests that stakeholders are tempering expectations while retaining confidence in the sector’s medium-term prospects.


A key driver of this optimism is the strengthening domestic macroeconomic environment. Real GDP growth accelerated to 8.2 per cent in Q2 FY 2025–26, a sharp improvement over the 5.6 per cent recorded in the corresponding period last year. High-frequency indicators continue to signal sustained economic momentum, helping offset global uncertainties.


According to Shishir Baijal, Chairman and Managing Director, Knight Frank India, stronger macro visibility, steady funding conditions and disciplined decision-making across stakeholders have collectively reinforced confidence. He noted that calibrated residential supply and robust office leasing activity are providing structural support to the market.


Funding availability sentiment also improved during the quarter. Most respondents expect liquidity conditions to remain stable or improve, aided by policy continuity and a sustained focus on asset quality. While lenders and investors continue to adopt a selective approach, capital access across asset classes remains supportive, indicating confidence in the sector’s underlying fundamentals rather than speculative expansion.


Regionally, future sentiment strengthened modestly across all zones, with every region remaining in the optimistic zone. The South Zone retained its leadership position with a score of 62, driven by strong office leasing in Bengaluru and Hyderabad and resilient demand in higher-ticket residential segments. The East Zone improved to 62 on the back of steady mid-segment housing demand, while the West Zone also strengthened to 62, supported by stable commercial activity and a calibrated approach to residential development. The North Zone recovered to 59, reflecting stabilising sentiment after earlier softness, aided by steady office traction and ongoing infrastructure momentum. The broad-based regional improvement underscores confidence anchored in urban demand and improving economic conditions.


Stakeholder sentiment, however, showed moderate divergence. Institutional stakeholders such as banks, financial institutions and private equity funds recorded a higher Future Sentiment Score of 63, reflecting growing confidence in asset quality and liquidity. Developers, in contrast, maintained a more cautious stance with a score of 58, highlighting a disciplined approach that aligns growth plans closely with demand visibility and funding prudence. This divergence points to a market where capital providers are willing to support growth, while developers remain focused on risk management and execution efficiency.


In the residential segment, future sentiment improved in Q4 2025, supported by sustained demand in higher ticket size segments and careful inventory management. Although sales momentum has moderated from earlier peaks, improving financing conditions and controlled supply additions have reinforced confidence. Overall sentiment remains optimistic, characterised by stable demand rather than rapid expansion.


The office sector continues to anchor overall market confidence. Leasing expectations remain strong, driven by sustained occupier demand, particularly from Global Capability Centres across major cities. Limited availability of quality Grade A space has encouraged pre-leasing and early commitments, supporting firm rental expectations. Sentiment around new office supply has also improved, indicating expectations of a stronger development pipeline even as near-term availability remains constrained.


Parveen Jain, President, NAREDCO, observed that the index reflects confidence strengthening after a period of mild moderation, with residential stability and consistent office leasing forming the backbone of optimism. Taken together, the Q4 2025 findings suggest that India’s real estate sector is entering 2026 on a steadier, more balanced footing, guided by economic clarity, prudent capital deployment and demand-driven strategies across asset classes. 


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