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How is climate change melting away travel and hospitality business in ‘eco- sensitive’ areas

As Abhishek Jain, Director – Green Economy and Impact Innovations, CEEW, says, “We need to reimagine tourism — from an escape from daily routine, that is often resource intensive, to something that brings us closer to nature and our own selves, without being taxing on our planet.” Kumar says that in cities experiencing record temperatures, the chain has seen more last-minute changes, shorter stays, and increased interest in properties with strong indoor amenities and easy access to cooler, climate-controlled environments.”Animesh Kumar, Commercial Head at ibis & ibis Styles India, said, “During peak summer months, when heatwaves become more intense, like those recently recorded across northern India — there’s often a shift in demand. Travellers are increasingly choosing destinations with milder climates or adjusting their travel schedules to avoid the hottest parts of the day or season.”But this doesn’t mean Manali is entirely saved from the clutches of climate change. Events like the 2023 floods in the region affected many businesses and it took them another four-five months to recover, he adds.The organisation is now trying to find ways to bring back tourists to the region.Meanwhile, Manali, another tourist attraction, seems to be benefiting from climate change. According to business owners in the region, extended winter caused by climate change is bringing more tourists to the place. Speaking to businessline, Hira Lal Rana, President, Himachal Pradesh Travel Agents Association (HPTAA), said, “The change in weather patterns has not affected tourist footfalls in Kullu-Manali. In fact, the increased connectivity is bringing more tourists to the place. Climate changes are happening here. Usually, winter season were from December to February or march. However, it has now extended to April and May, attracting more tourists.”She added that destinations that were previously popular year-round, are now witnessing fluctuations in tourist arrivals due to climate uncertainties. And these are mounting by the day.He says, “There is potential to create more opportunities for nature-positive tourism. Take Odisha, for example. A CEEW study estimates that sustainable tourism in the State can be worth 0 million by 2030, creating local jobs, driving economic prosperity, while protecting fragile ecosystems. As part of India’s broader transition to a green economy, responsibly scaling such models can chart India’s unique development pathway, meeting our ambitions on jobs, prosperity and sustainability.”

Conscious travellers

Joint Secretary of the Organisation, Pradeep Murthy, feels the way the media and people portrayed the landslide, has affected tourism in the region — may be bigger than the actual landslide. “The rain and the subsequent landslide was a natural disaster. All that happened after that was a man-made disaster. There was huge enthusiasm across India to drum it up – to make it sensational news. The landslide hit two villages in Wayanad, but media named it as Wayanad landslide, instead of Mundakkai- Chooralmala disaster. It was not just tourism of the region that got impacted, but everyone in the district was also affected,“ he says.However, if this trend continues, it might affect the tourism in the area. So, the government must take necessary steps, along with promoting safe tourism in the region, he adds.“Climate change is no longer a future risk, it’s a present reality,” says Abraham Alapatt – President & Group Head – Marketing, Service Quality, Value Added Services & Innovation – Thomas Cook (India) Ltd. He describes how the company is taking strong steps to reduce its own environmental footprint and helping its business travel clients do the same. “We are also promoting eco-friendly accommodations, low environmental impact itineraries and carbon-conscious travel options.”The skies darken heralding rain. But what was once a bustling monsoon tourism season feels like a fading memory for Nithesh, the manager of Travelicious, a restaurant near Edakkal Caves in Wayanad. The place now gets only a handful of local patrons.Echoing the thought is Pardeep Siwach, Deputy General Manager, Mayfair Spring Valley Resort, Guwahati, who says, “As many parts of the country face rising temperatures and unpredictable weather, travellers are now looking for destinations with pleasant and stable climates. The North-East, with its cooler weather and greenery, has become a preferred choice.”Weather experts have dire warnings. KJ Ramesh, Former IMD Chairman, describes how global warming is wreaking havoc in India’s tourist hotspots. “In hill stations like Uttarakhand or Himachal, local warming has already touched 2.5 degree — higher than the global average — due to reasons such as deforestation and construction activities. The same is true for all of Western Ghats. With 2.5-degree warming, atmosphere of such areas can hold almost 20 per cent more moisture when it rains. This means that wherever you have local warming higher than the global average, you are bound to have high intensity, short duration precipitation. The frequency and intensity of this will go up incrementally as long as global warming continues.”

Global warming impact

Wayanad is not alone. Business owners across tourist spots in climate-sensitive areas are facing challenges as extreme weather events impact their operations. Take the North-East, where currently 1,500 tourists are stranded due to heavy rains, landslides and flash floods in Assam and Arunachal Pradesh.Echoing a similar opinion, Gaurav Takur, Treasurer, Manali Hoteliers Association, said, “Manali is seeing severe changes in its weather pattens. The seasons are changing. Now, we experience heavy rains during winter and what should be summer season, is now winter. In my understanding this is not just happening in Manali, but across the globe due to climate change. However, it hasn’t affected tourist inflow to the area. In fact, we see an increase in tourists, even though a slight dip happened after the Pahalgam terrorist attack. The weather pattern changes mainly affected the agriculture sector in the area.”Soorajith Radhakrishnan, Secretary, Wayanad Tourism Organisation, describes how dependent the district is on tourism which contributes more than 25 per cent to the local economy. “After the landslide, the economy was down for six months and the district has incurred loss of more than ₹1,000 crore,” he says. 

Manali, a different story

According to companies working in the tourism sector, travellers are becoming more conscious about climate change and sustainable tourism practices and this is reflected in the booking patterns. Vishal Suri, Managing Director & CEO, SOTC Travel Ltd, says, “We’ve observed that destinations impacted by extreme weather events, rising temperatures, environmental degradation due to climate change, often witness a drop in traveller interest and demand.” But, Suri is quick to add that demand and interest do rebound once safety, sustainable tourism practices and infrastructure confidence are restored.“The impact of climate change is becoming evident, particularly in ecologically-sensitive areas such as Himachal Pradesh, Uttarakhand and Kerala. Sudden floods, landslides, extreme heat, and unseasonal rainfall have started disrupting hotel operations. In some regions, these events cause structural damage and impact hospitality supply chains,” says M K Shyama Raju, President, FHRAI.Hoteliers like Sandeep Singh, Founder of Ruby Stone Hospitality, point how they are discerning shifts in consumer travel. He says, “We’ve seen changes in booking patterns according to the weather. Guests are now planning their trips with much more attention to seasonal weather trends. Destinations that were once summer favourites are seeing fewer bookings during peak heat months, while cooler or more climate-stable locations are becoming increasingly popular.”Published on June 9, 2025 “Before the Mundakkai-Chooralmala landslide, our annual revenue was around ₹14 lakh. Now it is just ₹6.5 lakh. After the landslides, tourist footfalls have dropped by more than 50 per cent,” says Nithesh. The district administration now closes places like Edakkal Caves even when it drizzles. This has crippled monsoon tourism in the region, he says.

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How is climate change melting away travel and hospitality business in ‘eco- sensitive’ areas

However, if this trend continues, it might affect the tourism in the area. So, the government must take necessary steps, along with promoting safe tourism in the region, he adds.He says, “There is potential to create more opportunities for nature-positive tourism. Take Odisha, for example. A CEEW study estimates that sustainable tourism in the State can be worth 0 million by 2030, creating local jobs, driving economic prosperity, while protecting fragile ecosystems. As part of India’s broader transition to a green economy, responsibly scaling such models can chart India’s unique development pathway, meeting our ambitions on jobs, prosperity and sustainability.”But this doesn’t mean Manali is entirely saved from the clutches of climate change. Events like the 2023 floods in the region affected many businesses and it took them another four-five months to recover, he adds.Wayanad is not alone. Business owners across tourist spots in climate-sensitive areas are facing challenges as extreme weather events impact their operations. Take the North-East, where currently 1,500 tourists are stranded due to heavy rains, landslides and flash floods in Assam and Arunachal Pradesh.She added that destinations that were previously popular year-round, are now witnessing fluctuations in tourist arrivals due to climate uncertainties. And these are mounting by the day.The organisation is now trying to find ways to bring back tourists to the region.Hoteliers like Sandeep Singh, Founder of Ruby Stone Hospitality, point how they are discerning shifts in consumer travel. He says, “We’ve seen changes in booking patterns according to the weather. Guests are now planning their trips with much more attention to seasonal weather trends. Destinations that were once summer favourites are seeing fewer bookings during peak heat months, while cooler or more climate-stable locations are becoming increasingly popular.”According to companies working in the tourism sector, travellers are becoming more conscious about climate change and sustainable tourism practices and this is reflected in the booking patterns. Vishal Suri, Managing Director & CEO, SOTC Travel Ltd, says, “We’ve observed that destinations impacted by extreme weather events, rising temperatures, environmental degradation due to climate change, often witness a drop in traveller interest and demand.” But, Suri is quick to add that demand and interest do rebound once safety, sustainable tourism practices and infrastructure confidence are restored.

Conscious travellers

Echoing the thought is Pardeep Siwach, Deputy General Manager, Mayfair Spring Valley Resort, Guwahati, who says, “As many parts of the country face rising temperatures and unpredictable weather, travellers are now looking for destinations with pleasant and stable climates. The North-East, with its cooler weather and greenery, has become a preferred choice.”Meanwhile, Manali, another tourist attraction, seems to be benefiting from climate change. According to business owners in the region, extended winter caused by climate change is bringing more tourists to the place. Speaking to businessline, Hira Lal Rana, President, Himachal Pradesh Travel Agents Association (HPTAA), said, “The change in weather patterns has not affected tourist footfalls in Kullu-Manali. In fact, the increased connectivity is bringing more tourists to the place. Climate changes are happening here. Usually, winter season were from December to February or march. However, it has now extended to April and May, attracting more tourists.”Animesh Kumar, Commercial Head at ibis & ibis Styles India, said, “During peak summer months, when heatwaves become more intense, like those recently recorded across northern India — there’s often a shift in demand. Travellers are increasingly choosing destinations with milder climates or adjusting their travel schedules to avoid the hottest parts of the day or season.”Weather experts have dire warnings. KJ Ramesh, Former IMD Chairman, describes how global warming is wreaking havoc in India’s tourist hotspots. “In hill stations like Uttarakhand or Himachal, local warming has already touched 2.5 degree — higher than the global average — due to reasons such as deforestation and construction activities. The same is true for all of Western Ghats. With 2.5-degree warming, atmosphere of such areas can hold almost 20 per cent more moisture when it rains. This means that wherever you have local warming higher than the global average, you are bound to have high intensity, short duration precipitation. The frequency and intensity of this will go up incrementally as long as global warming continues.”“Before the Mundakkai-Chooralmala landslide, our annual revenue was around ₹14 lakh. Now it is just ₹6.5 lakh. After the landslides, tourist footfalls have dropped by more than 50 per cent,” says Nithesh. The district administration now closes places like Edakkal Caves even when it drizzles. This has crippled monsoon tourism in the region, he says.Joint Secretary of the Organisation, Pradeep Murthy, feels the way the media and people portrayed the landslide, has affected tourism in the region — may be bigger than the actual landslide. “The rain and the subsequent landslide was a natural disaster. All that happened after that was a man-made disaster. There was huge enthusiasm across India to drum it up – to make it sensational news. The landslide hit two villages in Wayanad, but media named it as Wayanad landslide, instead of Mundakkai- Chooralmala disaster. It was not just tourism of the region that got impacted, but everyone in the district was also affected,“ he says.

Global warming impact

“The impact of climate change is becoming evident, particularly in ecologically-sensitive areas such as Himachal Pradesh, Uttarakhand and Kerala. Sudden floods, landslides, extreme heat, and unseasonal rainfall have started disrupting hotel operations. In some regions, these events cause structural damage and impact hospitality supply chains,” says M K Shyama Raju, President, FHRAI.Kumar says that in cities experiencing record temperatures, the chain has seen more last-minute changes, shorter stays, and increased interest in properties with strong indoor amenities and easy access to cooler, climate-controlled environments.”“Climate change is no longer a future risk, it’s a present reality,” says Abraham Alapatt – President & Group Head – Marketing, Service Quality, Value Added Services & Innovation – Thomas Cook (India) Ltd. He describes how the company is taking strong steps to reduce its own environmental footprint and helping its business travel clients do the same. “We are also promoting eco-friendly accommodations, low environmental impact itineraries and carbon-conscious travel options.”

Manali, a different story

The skies darken heralding rain. But what was once a bustling monsoon tourism season feels like a fading memory for Nithesh, the manager of Travelicious, a restaurant near Edakkal Caves in Wayanad. The place now gets only a handful of local patrons.Echoing a similar opinion, Gaurav Takur, Treasurer, Manali Hoteliers Association, said, “Manali is seeing severe changes in its weather pattens. The seasons are changing. Now, we experience heavy rains during winter and what should be summer season, is now winter. In my understanding this is not just happening in Manali, but across the globe due to climate change. However, it hasn’t affected tourist inflow to the area. In fact, we see an increase in tourists, even though a slight dip happened after the Pahalgam terrorist attack. The weather pattern changes mainly affected the agriculture sector in the area.”Published on June 9, 2025 As Abhishek Jain, Director – Green Economy and Impact Innovations, CEEW, says, “We need to reimagine tourism — from an escape from daily routine, that is often resource intensive, to something that brings us closer to nature and our own selves, without being taxing on our planet.” Soorajith Radhakrishnan, Secretary, Wayanad Tourism Organisation, describes how dependent the district is on tourism which contributes more than 25 per cent to the local economy. “After the landslide, the economy was down for six months and the district has incurred loss of more than ₹1,000 crore,” he says. 

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Editorial. Palatable option

India’s retail inflation has cooled, but one item that has continued to sizzle is cooking oils. The ‘oils and fats’ component of the Consumer Price Index (CPI) has shown a persistent year-on-year escalation of 16-17 per cent in recent months. This is perhaps why the Centre decided to slash import duties on crude edible oils last week, just seven months after sharply hiking it. On May 30, the basic customs duty on crude soyabean, palm and sunflower oil was reduced from 20 per cent to 10 per cent, cutting the effective tariff to 16.5 per cent including cess. Duties on refined oils have been left untouched and remain at an effective 35.75 per cent.

Published on June 8, 2025 Given this situation, the Centre does appear to have struck a reasonable balance. By halving duties on crude edible oil, it has tried to bring down raw material costs for the oil processing and refining industry. The wide difference of 19.25 per cent between crude and refined oils makes it viable for refiners to use idle capacity for profitable operations. Farmer interests have also been kept in mind to an extent, by retaining a 10 per cent tariff on crude oils and not restoring it back to zero duty, as was the case before September 2024. However, the timing of this cut could have been better. Coming just when kharif sowing is picking up steam, the duty cut can prompt farmers to rethink oilseed acreage.The extent of relief to consumers will also depend on whether the extraction and refining industry passes on cost savings. Should it prove tardy in passing on benefits, the Centre can consider slashing tariffs on refined oils too by 5-6 percentage points.Cooking oil has been a key contributor to inflation since September last year (when crude edible oils were raised from 0 to 20 per cent and refined oils from 12.5 to 32.5 per cent). The partial rollback now promises consumers some relief. While the change may also cheer the edible oil processing industry, farmers may need to budget for lower realisations. Tariff decisions on edible oils are a tricky balancing act, given the conflicting interests of consumers, the oil processing industry and farmers. For consumers, the perpetual shortfall in domestic supplies of cooking oil, the near-60 per cent import dependence and concentrated supply origins pose a problem. Soyabean, sunflower and palmoil crop prospects in Malaysia, Indonesia, Argentina or Brazil can trigger high volatility in global oil prices which gets passed on to Indian consumers. Farmers find the oilseed crop less remunerative than crops like paddy, where Minimum Support Prices are backed by assured procurement. Frequent tinkering with edible oil trade and tariff policies add to the uncertainty around realisations for farmers. The domestic solvent extraction and refining industry is plagued by excess capacity. With limited domestic availability of oilseeds, the industry relies on imported crude oils and manages profitable operations only when duty differentials between crude and refined oils are wide.

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on

Given this situation, the Centre does appear to have struck a reasonable balance. By halving duties on crude edible oil, it has tried to bring down raw material costs for the oil processing and refining industry. The wide difference of 19.25 per cent between crude and refined oils makes it viable for refiners to use idle capacity for profitable operations. Farmer interests have also been kept in mind to an extent, by retaining a 10 per cent tariff on crude oils and not restoring it back to zero duty, as was the case before September 2024. However, the timing of this cut could have been better. Coming just when kharif sowing is picking up steam, the duty cut can prompt farmers to rethink oilseed acreage.

Published on June 8, 2025 The extent of relief to consumers will also depend on whether the extraction and refining industry passes on cost savings. Should it prove tardy in passing on benefits, the Centre can consider slashing tariffs on refined oils too by 5-6 percentage points.India’s retail inflation has cooled, but one item that has continued to sizzle is cooking oils. The ‘oils and fats’ component of the Consumer Price Index (CPI) has shown a persistent year-on-year escalation of 16-17 per cent in recent months. This is perhaps why the Centre decided to slash import duties on crude edible oils last week, just seven months after sharply hiking it. On May 30, the basic customs duty on crude soyabean, palm and sunflower oil was reduced from 20 per cent to 10 per cent, cutting the effective tariff to 16.5 per cent including cess. Duties on refined oils have been left untouched and remain at an effective 35.75 per cent. Cooking oil has been a key contributor to inflation since September last year (when crude edible oils were raised from 0 to 20 per cent and refined oils from 12.5 to 32.5 per cent). The partial rollback now promises consumers some relief. While the change may also cheer the edible oil processing industry, farmers may need to budget for lower realisations. Tariff decisions on edible oils are a tricky balancing act, given the conflicting interests of consumers, the oil processing industry and farmers. For consumers, the perpetual shortfall in domestic supplies of cooking oil, the near-60 per cent import dependence and concentrated supply origins pose a problem. Soyabean, sunflower and palmoil crop prospects in Malaysia, Indonesia, Argentina or Brazil can trigger high volatility in global oil prices which gets passed on to Indian consumers. Farmers find the oilseed crop less remunerative than crops like paddy, where Minimum Support Prices are backed by assured procurement. Frequent tinkering with edible oil trade and tariff policies add to the uncertainty around realisations for farmers. The domestic solvent extraction and refining industry is plagued by excess capacity. With limited domestic availability of oilseeds, the industry relies on imported crude oils and manages profitable operations only when duty differentials between crude and refined oils are wide.

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Business

TCS, Infosys, Wipro, HCLTech: Why the IT stocks’ correction gathers no moss

With the Nifty 50 scaling 25,000 on Friday and continuing its journey of recouping lost ground from its September 2024 peak, investors in major IT stocks continue to watch from behind. In the last three years, every time the stocks of IT majors — TCS, Infosys, Wipro — have risen, they have done so only to fall again such that their returns are largely flat in this period while the Nifty has zoomed 50 per cent.

Published on June 7, 2025

It’s all relative

Following this, investors would be tempted to think ‘is the correction over?’ While there has been a severe timewise correction in stocks, unfortunately by one metric they are in their most expensive zone in the last 10 years! This may continue to weigh on shareholder returns.Companies to followNot just TCS, but for its major contemporaries as well — Infosys, Wipro and HCLTech — the period FY24-27 will rank amongst their worst three-year period in terms of growth. In this context, with bond yields globally on the rise and providing attractive yields, it might make FPIs look past these stocks.

The charts compare the bond-equity yield spread for the IT stocks from the perspective of a foreign investor, which is the stock’s earnings yield minus the US 10-year bond yield, for the last 10 years. By this measure although stock valuations (barring HCLTech) have corrected significantly from highs, the irony is that on a relative basis they are hovering around their most expensive levels in the last 10 years.

Hunger for growth

Take TCS – its PE today is bang where it was 10 years back, yet when compared to other investible options from an FPI perspective it is unattractive versus 10 years back. Not only this, equally on the unfavourable side is its growth prospects today. In FY2015, TCS delivered constant currency (CC) revenue growth of 17 per cent — that alone on its own sufficiently justified a 25x PE, leaving apart the attractive bond-equity yield spread. To the contrary, its CC revenue growth in FY25 was just 4.2 per cent.The period since GFC triggered the phase of global investor’s hunger for yields as interest rates in developed markets dropped to near zero or even negative levels. Compared to a 10-year government bonds yielding 0 to 2 per cent, even stocks with PE of 30 times or earnings yield (1/PE) of 3.3 per cent (generally viewed expensive in the pre GFC era) suddenly appeared attractive. As long as the earnings yield was above the government bond yield, and it also came with decent and consistent earnings growth, such stocks found strong favour. IT stocks neatly fitted into this spot.As compared to hunger for yields in the era of low interest rates, global investors are now hungry for growth. High payout ratios — like those seen in IT majors that distribute most of their profits to shareholders instead of reinvesting for growth in new businesses — worked well earlier, but may now put pressure on these companies.Investors will be willing to buy stocks/indices with low or negative bond-equity yield spread if the growth prospects are bright, but currently that is missing for IT majors.

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Not just TCS, but for its major contemporaries as well — Infosys, Wipro and HCLTech — the period FY24-27 will rank amongst their worst three-year period in terms of growth. In this context, with bond yields globally on the rise and providing attractive yields, it might make FPIs look past these stocks.

Following this, investors would be tempted to think ‘is the correction over?’ While there has been a severe timewise correction in stocks, unfortunately by one metric they are in their most expensive zone in the last 10 years! This may continue to weigh on shareholder returns.

It’s all relative

As their core IT services business faces competition from GCCs, mid-cap IT players and, more importantly, AI-related disruption, growth may remain lacklustre. Slow growth for three consecutive years may also reflect structural changes beyond cyclical factors.Published on June 7, 2025 Take TCS – its PE today is bang where it was 10 years back, yet when compared to other investible options from an FPI perspective it is unattractive versus 10 years back. Not only this, equally on the unfavourable side is its growth prospects today. In FY2015, TCS delivered constant currency (CC) revenue growth of 17 per cent — that alone on its own sufficiently justified a 25x PE, leaving apart the attractive bond-equity yield spread. To the contrary, its CC revenue growth in FY25 was just 4.2 per cent.

Companies to follow

Hunger for growth

As compared to hunger for yields in the era of low interest rates, global investors are now hungry for growth. High payout ratios — like those seen in IT majors that distribute most of their profits to shareholders instead of reinvesting for growth in new businesses — worked well earlier, but may now put pressure on these companies.The period since GFC triggered the phase of global investor’s hunger for yields as interest rates in developed markets dropped to near zero or even negative levels. Compared to a 10-year government bonds yielding 0 to 2 per cent, even stocks with PE of 30 times or earnings yield (1/PE) of 3.3 per cent (generally viewed expensive in the pre GFC era) suddenly appeared attractive. As long as the earnings yield was above the government bond yield, and it also came with decent and consistent earnings growth, such stocks found strong favour. IT stocks neatly fitted into this spot.Investors will be willing to buy stocks/indices with low or negative bond-equity yield spread if the growth prospects are bright, but currently that is missing for IT majors.With the Nifty 50 scaling 25,000 on Friday and continuing its journey of recouping lost ground from its September 2024 peak, investors in major IT stocks continue to watch from behind. In the last three years, every time the stocks of IT majors — TCS, Infosys, Wipro — have risen, they have done so only to fall again such that their returns are largely flat in this period while the Nifty has zoomed 50 per cent.

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Business

Volkswagen Golf GTI: Redemption 

There’s no doubt that Volkswagen has been at the top of its hot hatchback game, and we’re pleased to report that the Golf GTI is unchanged for the Indian market. It’s powered by the EA888 2-litre turbocharged petrol engine, which makes 261 bhp and 37.7 kg-m. It powers the front wheels via a 7-speed dual-clutch automatic gearbox and an electronically controlled limited-slip diff. 
The cabin isn’t bad, either. A 12.9-inch touchscreen infotainment system is the centrepiece, but it’s programmed to be more than just a large screen on the centre console. Essential features like ESC can be accessed through quick-toggle menus, and while it gives you enough screen real estate for Android Auto and Apple CarPlay, it has permanently placed icons, ensuring you don’t struggle with menus. Both volume sliders and temperature controls are touch-sensitive sliders below the screen. The front cloth seats, albeit a great homage to the first GTI, can feel a bit too tight for some drivers, and with the front seat set according to my height, the rear legroom was substantially reduced. 

You won’t be bothered about any of that the moment you set out for your drive. We had access to the NATRAX test centre near Indore for this drive — including the 11.3 km high-speed circuit — and the GTI showed its true colours. The car epitomises flexibility; you can hoon it around a racetrack, and, without making any mechanical changes, drive it to work like nothing happened, and the car will quite obediently follow your lead. The sleek exterior design draws your attention quickly and is also well-proportioned, but not without great hints of aggression, making the car’s purpose quite evident. There are four exterior colours to choose from, its 18-inch alloy wheels are standard, and there’s no dearth of ‘GTI’ badges. An illuminated strip joins the two headlights, making the Golf GTI ever so slightly more dramatic when it gets dark outside. This is further complemented by an illuminated VW logo, while the trademark red strip across the front, the five-pod fog lights, and the fang-like elements on the lower grille work in tandem to ensure that the GTI’s is a face you wouldn’t forget. 
The 12.9-inch touchscreen is the centerpiece — more than just a big display, it’s smartly integrated for enhanced functionality
| Photo Credit: Kaizad Adil Darukhanawala 

Start the car in sport mode, and the exhaust has a mild rumble (which isn’t too intrusive), but as revs climb, the engine noise becomes more characterful, and it even emits pops without needing a ‘pops and bangs’ tune from your friendly tuner. The chassis, too, is remarkable, again signifying the Golf GTI’s flexibility. It doesn’t get adaptive dampers, but despite that, the ride is comfortable. In the handling department, the Golf scores quite well. Its nose is eager to follow your steering input although the steering itself feels a bit numb. You can fully deactivate the car’s stability control, but I found that ESC Sport allowed me to push the car without intervening. My only gripe is that while the automatic gearbox is quick to shift, both by itself or when you operate it using the paddle shifters, a car like this deserves to be specced with a manual gearbox. 

Balanced dynamics

© Motoring WorldNearly a decade ago, Volkswagen India did the unthinkable. It brought to our market a car that seemed impractical, had fewer doors, and was about four times as expensive as the one it was based on. Despite that, it found many takers, quickly helping it attain a legendary status — so much so that used examples show nearly no signs of depreciation, even a decade later. That was the Volkswagen Polo GTI, and now, nine years later, Volkswagen has brought out another GTI; this time, a more powerful and definitely more focussed one. It is the Mk 8.5 Golf GTI, a front-wheel drive hatchback whose badge is considered synonymous with ‘hot hatch’. We take it out for a drive to understand what the fuss is aboutPublished on June 6, 2025 I’ve always adored the Golf GTI, and I’m certain there are many out there who share the same sentiment. Priced at ₹53 lakh, ex-showroom, the Golf GTI isn’t going to be within everyone’s reach, but you know what, if you’ve wanted one badly (and have the means), you would have booked it already. The first lot of 150 cars coming to India is sold out already, which proves my point. 

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Nearly a decade ago, Volkswagen India did the unthinkable. It brought to our market a car that seemed impractical, had fewer doors, and was about four times as expensive as the one it was based on. Despite that, it found many takers, quickly helping it attain a legendary status — so much so that used examples show nearly no signs of depreciation, even a decade later. That was the Volkswagen Polo GTI, and now, nine years later, Volkswagen has brought out another GTI; this time, a more powerful and definitely more focussed one. It is the Mk 8.5 Golf GTI, a front-wheel drive hatchback whose badge is considered synonymous with ‘hot hatch’. We take it out for a drive to understand what the fuss is about
The cabin isn’t bad, either. A 12.9-inch touchscreen infotainment system is the centrepiece, but it’s programmed to be more than just a large screen on the centre console. Essential features like ESC can be accessed through quick-toggle menus, and while it gives you enough screen real estate for Android Auto and Apple CarPlay, it has permanently placed icons, ensuring you don’t struggle with menus. Both volume sliders and temperature controls are touch-sensitive sliders below the screen. The front cloth seats, albeit a great homage to the first GTI, can feel a bit too tight for some drivers, and with the front seat set according to my height, the rear legroom was substantially reduced. Published on June 6, 2025

Sleek design

© Motoring World
The 12.9-inch touchscreen is the centerpiece — more than just a big display, it’s smartly integrated for enhanced functionality
| Photo Credit: Kaizad Adil Darukhanawala 

I’ve always adored the Golf GTI, and I’m certain there are many out there who share the same sentiment. Priced at ₹53 lakh, ex-showroom, the Golf GTI isn’t going to be within everyone’s reach, but you know what, if you’ve wanted one badly (and have the means), you would have booked it already. The first lot of 150 cars coming to India is sold out already, which proves my point. 

Balanced dynamics

There’s no doubt that Volkswagen has been at the top of its hot hatchback game, and we’re pleased to report that the Golf GTI is unchanged for the Indian market. It’s powered by the EA888 2-litre turbocharged petrol engine, which makes 261 bhp and 37.7 kg-m. It powers the front wheels via a 7-speed dual-clutch automatic gearbox and an electronically controlled limited-slip diff. The sleek exterior design draws your attention quickly and is also well-proportioned, but not without great hints of aggression, making the car’s purpose quite evident. There are four exterior colours to choose from, its 18-inch alloy wheels are standard, and there’s no dearth of ‘GTI’ badges. An illuminated strip joins the two headlights, making the Golf GTI ever so slightly more dramatic when it gets dark outside. This is further complemented by an illuminated VW logo, while the trademark red strip across the front, the five-pod fog lights, and the fang-like elements on the lower grille work in tandem to ensure that the GTI’s is a face you wouldn’t forget. Start the car in sport mode, and the exhaust has a mild rumble (which isn’t too intrusive), but as revs climb, the engine noise becomes more characterful, and it even emits pops without needing a ‘pops and bangs’ tune from your friendly tuner. The chassis, too, is remarkable, again signifying the Golf GTI’s flexibility. It doesn’t get adaptive dampers, but despite that, the ride is comfortable. In the handling department, the Golf scores quite well. Its nose is eager to follow your steering input although the steering itself feels a bit numb. You can fully deactivate the car’s stability control, but I found that ESC Sport allowed me to push the car without intervening. My only gripe is that while the automatic gearbox is quick to shift, both by itself or when you operate it using the paddle shifters, a car like this deserves to be specced with a manual gearbox. You won’t be bothered about any of that the moment you set out for your drive. We had access to the NATRAX test centre near Indore for this drive — including the 11.3 km high-speed circuit — and the GTI showed its true colours. The car epitomises flexibility; you can hoon it around a racetrack, and, without making any mechanical changes, drive it to work like nothing happened, and the car will quite obediently follow your lead. 

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