ITC SWOT Analysis

# Executive summary

Over the last four reported quarters ITC has shown steady operating cash generation from its cigarette franchise while continuing to invest in FMCG, paperboards & packaging, agri and IT services. FY25 contained an accounting “spike” (the hotels demerger exceptional gain) that distorted headline PAT; on an underlying basis cigarette earnings remain the cash-engine but margin pressure has shown up in FMCG-Others and Paper as input costs rose. A late-Dec 2025/Feb 2026 excise reset (central government notifications) materially raised effective excise on cigarettes — this will compress volumes and put near-term earnings pressure, but ITC has several obvious levers (price pass-through, premiumisation, cost/program efficiency, portfolio mix) to protect EBITDA while it accelerates growth of non-tobacco businesses. ([ITC Portal][1])
# A. Last 4 quarters — quarter-by-quarter review (concise, with drivers & impact)

Notes: I treat the four most recent quarters as Q4 FY25 (quarter ended 31 Mar 2025), Q1 FY26 (June 2025), Q2 FY26 (Sept 2025) and the most recent quarter reporting (Q3 FY26 / hotels results where ITC Hotels has reported separately). Company presentations and filings are cited for each quarter.
1. **Q4 FY25 (quarter ended 31-Mar-2025) — headline distortions from hotels demerger** * **Headline:** Consolidated reported net profit jumped to ~₹19,800 crore (FY25 Q4 headline) due to an **exceptional gain** recognised on the demerger of ITC Hotels (fair-value related gain ~₹15,163 crore). On an *adjusted* basis (ex-exceptional), underlying PAT for the quarter was ~₹4,660–4,700 crore — a decline versus prior year. ([ITC Portal][2]) * **Drivers:** Exceptional accounting gain from hotels demerger; underlying pressure from escalating input costs (edible oil, leaf tobacco, wood), and margin pressure in Paperboards & FMCG-others. The Q4 presentation shows FMCG-Cigarette EBITDA roughly stable but FMCG-Others and Paper saw EBITDA compression (FMCG-Others seg-EBITDA down materially). ([ITC Portal][1]) * **Implication:** Don’t read the headline PAT as recurring profits — underlying operating performance was muted (cost pressure + sustained investments in FMCG marketing).

2. **Q1 FY26 (quarter ended 30-Jun-2025)**
* **Headline:** Consolidated PAT roughly flat year-on-year (reports in press ranged ~₹4,900–5,200 crore for the quarter). ITC reiterated cigarette business remains a dominant profit engine, but FMCG growth is progressing (snacks, staples, premium categories). ([The Economic Times][3]) * **Drivers:** Demand steady for cigarettes; FMCG investments (trade & marketing) maintained; inflationary input cost pass-through partially executed; margin management via pricing and mix helped. Company commented on “smart net revenue management” in the quarter. ([ITC Portal][4]) * **Implication:** Underlying cash flow remains robust; core cigarette volumes/pricing are still the stabiliser.

3. **Q2 FY26 (quarter ended 30-Sep-2025)**
* **Headline:** Company Q2 presentation (30 Oct 2025) showed gross standalone revenue and EBITDA expansion ex-paper; standalone gross revenue ~₹19,148 crore (Q2 standalone gross) and group PAT grew modestly. EBITDA margin improved YoY (company cites 35.1% standalone margin ex-agri). Consolidated commentary flagged ITC Infotech and group companies performing well. ([ITC Portal][5]) * **Drivers:** Cigarettes plus FMCG pricing actions; ITC Infotech growth; continued investments in brands; paper faced cyclical issues but overall group EBITDA ex-paper rose. * **Implication:** Operational resilience — ITC shows ability to offset some inflation via pricing, mix and non-tobacco profit pools.

4. **Q3 FY26 (quarter ended 31-Dec-2025) — latest reporting window**
* **Headline / available disclosures:** ITC Hotels (now demerged) reported a very strong Q3 (consolidated revenue ₹1,231 crore; PAT ahead year-on-year), demonstrating standalone strength of the hospitality arm. For ITC Limited consolidated Q3 disclosures were thin on the investor site at the time of my checks, but market coverage indicates continued stable cigarette profitability and growth in IT services & agri. (See ITC Hotels Q3 releases for hotel numbers.) ([ETTravelWorld.com][6]) * **Drivers:** Hotels — recovery in demand (MICE, weddings), higher ADR and occupancy. For the parent, cigarette price resilience and ITC Infotech traction continue to be positives; however the new excise changes (see below) start to bite from Feb 2026 onward. ([Fortune India][7]) * **Implication:** Overall operating momentum is present, but the timing of higher excise (effective Feb 1, 2026) alters the outlook into FY27 — see tax section below.

# B. Taxes / Budget impact on cigarettes — what happened and what it means for ITC


What the government changed (short factual timeline) * **Late-Dec 2025 notifications** (effective **1 Feb 2026**) revised central excise rates on cigarettes and certain tobacco products — these were announced outside the formal Budget speech and are already scheduled to apply from Feb 1, 2026. The notifications set higher per-1,000-sticks excise slabs (reported ranges ~₹2,050–₹8,500 per 1,000 sticks depending on length/category). Reuters, PIB and official notifications covered this change. ([Reuters][8])

Likely economic effect on demand and ITC * **Immediate P&L effect:** Higher excise raises the tax portion of retail price. Practically, most of the duty increase will be **passed through** to retail prices (industry and analysts expect price pass-through), which increases retail price significantly and lowers volumes (price elasticity for cigarettes in India is meaningfully negative; poorer consumers are more price-sensitive). S&P and other sell-side coverage expect a medium-term earnings hit for tobacco majors as higher taxes reduce volumes, even if per-stick revenue (ex-tax) is preserved partly. ([S&P Global][9]) * **Budget (Feb 2026) relevance:** With excise rules already notified, the Budget is **less likely** to add a fresh surprise on cigarette excise — rather it will consolidate/confirm the legislative changes. Market commentary suggests the heavy lift has already been taken via the Dec notifications, so the Budget is unlikely to add a second simultaneous shock. ([GKToday][10])

Quantitative impact (how to think about it) * If the tax per 1,000 sticks rises by X, retail prices will rise by roughly X/1000 (plus any local state taxes). Volume elasticity estimates for cigarettes in India vary — a reasonable working estimate is **volume falls 5–15%** over a medium horizon for a material price shock (exact sensitivity depends on segment and price band; poorer/cheaper segments are generally more elastic). That implies revenue may still increase or remain flat if ITC can pass through most tax, but **consumption-driven gross margins and overall EBIT from cigarettes may compress**. See tobacco-tax/elasticity studies for ranges. ([PMC][11])

How ITC can offset the tax hit — practical levers (and how realistic they are) 1. **Price pass-through & premiumisation (primary lever — likely & historically used)** * ITC can and historically does raise consumer prices (pass excise increase). It will try to **premiumise** the portfolio (steer consumers to higher-value SKUs, smaller price points in premium bands) that carry higher gross margin. Given ITC’s brand equity, partial pass-through and premiumisation are high-probability levers. *Realistic impact:* recovers significant margin but reduces volumes. ([The Economic Times][3])
2. **Mix shift to higher margin non-tobacco businesses** * Accelerate growth & margin capture in **FMCG (foods, personal care), Paperboards & Packaging, ITC Infotech**. These segments are explicitly in the company’s strategy and provide diversification of earnings (ITC Infotech showed strong revenue/EBITDA growth in FY25). Investing capex and marketing to grow high-margin FMCG and packaging reduces dependence on cigarette profits. *Realistic impact:* medium term (12–36 months). ([ITC Portal][1])
3. **Cost & supply-chain efficiencies** * Tighten working capital, reduce overheads in lower performing FMCG lines, improve procurement (agri hedging, backward integration). ITC already points to supply-chain agility and “smart net revenue management” in filings. *Realistic impact:* low-to-medium near term.
4. **Pricing architecture / SKU rationalisation** * Reconfigure SKUs to retain price points that keep marginal consumers on the legal channel (avoid large migration to illicit/cheaper alternatives). *Realistic impact:* helps preserve volumes and prevent erosion to the unorganised market; requires careful trade management.
5. **Export & duty arbitrage** * Grow exports of tobacco-derived and non-tobacco FMCG/packaging products where taxes differ — a partial hedge. *Realistic impact:* small near term.
6. **Policy / industry engagement** * Engage with government to manage implementation, thresholds, or support for farmers / small retailers. But politically constrained — more a mitigation than a reversal. ([The Economic Times][12]) **Net view:** Expect near-term margin pressure on the cigarette business and an initial erosion of volumes; ITC can (and will) absorb/offset a portion via price pass-through and accelerate growth in the rest of the portfolio. Analysts foresee a measurable medium-term EPS impact (FY27 onwards) but the company’s diversified model and pricing power reduce the tail-risk of a catastrophic earnings collapse. ([S&P Global][9]) --- # C. Segment breakdown (last 2 years) — size, trends, strengths & weaknesses, suggested fixes I use FY24 vs FY25 (company’s FY25 reporting in presentations/annual report) as the 2-year reference. Key numbers (segment revenues and segment EBITDA) are shown in the ITC Q4 / FY25 presentation — I cite the slides that list segment revenues & segment results. ([ITC Portal][1])

1) **Cigarettes (FMCG — Cigarette sub-segment)** * **FY25 position (examples from Q4/FY25 slides):** Cigarette revenue is the single largest contributor to FMCG revenue and to consolidated profits. Q4 FY25 segment revenue (Cigarette) ~₹8,400 crore (Q4), seg-EBITDA ~₹5,118 crore (Q4) — cigarette segment margins remain much higher than FMCG-others. FY25 overall cigarettes EBITDA and cash generation remain the primary profit engine. ([ITC Portal][1]) * **Where ITC dominates:** Market leader in organized cigarette market in India (large share across major price bands). Strong brand equity, wide distribution and deep retail relationships. * **Where it’s vulnerable / lagging:** **Exposed to excise policy risk** (government actions) and to gradual secular decline in smoking prevalence. Also higher taxes open room for illicit trade and down-trading to cheaper alternatives. * **How to improve / defend:** continue premiumisation (less elastic demand), portfolio SKU management, protect legal channel via retailer incentives, invest in brand equity, and accelerate adjacent revenue pools (filters, accessories, exports).

2) **FMCG — Others (foods, staples, snacks, personal care, agarbatti, stationery etc.)** * **FY24→FY25 trend:** Revenue growth in several categories (atta, spices, snacks, premium personal wash) but **segment EBITDA contraction** was reported for FMCG-Others (company noted severe inflationary cost pressure resulting in seg-EBITDA down ~21% in the Q4 commentary). ITC is investing heavily in this portfolio (trade/marketing). ([ITC Portal][1]) * **Dominance / strengths:** Strong brands (Aashirvaad, Sunfeast, Bingo, Yippee!), distribution reach (rural + urban), and vertical integration via agri sourcing (e-Choupal etc.) that supports margins long term. * **Lagging areas:** Relative margin weakness vs cigarettes; some categories (e.g., notebooks earlier) impacted by high base or local competition; speed of scaling certain new categories still limited. * **How to improve:** Faster SKU rationalisation, better mix (margin-driven SKUs), digital direct-to-consumer plays, sharpened trade promotions, and selective M&A to acquire niche capabilities (frozen/snacks/dairy scale). Focus R&D & NPD on high margin premium SKUs.

3) **Paperboards, Paper & Packaging** * **FY24→FY25 trend:** Revenues largely resilient but **segment EBITDA compressed** (company cited subdued realizations and higher wood costs; seg-EBITDA down ~23% y/y as per Q4 commentary). Still a significant cash and capex business for ITC. ([ITC Portal][1]) * **Dominance / strengths:** Large integrated capacity, strong position in speciality paper and packaging for FMCG and pharma (key domestic supplier). * **Lagging areas:** Raw material (wood) costs are cyclical; pricing lags can compress margin during downturns. * **How to improve:** productivity/asset utilisation, pass-through pricing where possible, diversify raw material sources, move up the value chain into speciality packaging (more margin), and supply-contracts with key FMCG customers.

4) **Agri & Foods sourcing (including e-Choupal, spices, millets)** * **Trend:** Revenue growth (e.g., Q4 showed Agri revenue +18% YoY in that quarter) as ITC expands value-added agri products and backward integration. ([ITC Portal][1]) * **Strengths:** Deep rural sourcing network, sustainability credentials, ability to control inputs/quality for FMCG brands. * **Opportunity:** scale more processed/consumer-facing agri SKUs (frozen, ready-to-eat) and export markets.

5) **ITC Infotech / Information Technology** * **Trend:** Rapid growth — revenue and adjusted EBITDA increased (presentation highlights FY25 growth and improved EBITDA). ITC Infotech is a growing, higher-margin business compared with legacy manufacturing segments. ([ITC Portal][1]) * **Opportunity:** invest to accelerate software & cloud services growth; use ITC Infotech margins to diversify consolidated margins.

6) **Hotels** * **Status:** **Demerged (effective 1 Jan 2025)** — hotels moved to ITC Hotels Limited and became an associate (ITC holds ~39.88%). Hotels showed a post-demerger recovery and strong Q3 FY26 for the hotels company itself; ITC’s earnings now include associate income. ([ITC Portal][1]) * **Implication:** Hotels no longer a direct majority cash engine for ITC; demerger created a large one-time accounting gain for FY25 but also removed recurring hotel EBITDA from the parent’s continuing operations.

# D. Where ITC **dominates** vs **lags** (quick bullets) * **Dominates / clear advantages** * Organized **cigarette market** (market leader, pricing power). ([ITC Portal][1]) * Large **distribution reach** in FMCG (rural penetration + trade relationships). * **Paperboards & packaging** — leading integrated capacity in India. * **ITC Infotech** — growing IT services business with improving margins. * **Agri sourcing** (e-Choupal) — large farmer network and supply chain advantage. * **Lagging / vulnerable areas** * **FMCG-Others margins** are squeezed versus expectation (marketing & scale investments plus input inflation hurt segment EBITDA in FY25). ([ITC Portal][1]) * **Exposure to tax/regulatory shocks** via the cigarette business (this is the structural vulnerability). * **Paper margin cyclicality** linked to raw material (wood) price swings. * **Long lead time to meaningfully re-weight group margins** away from tobacco (non-tobacco scaling takes time).

# E. Concrete, prioritized actions ITC management can (and likely will) take — investor lens 1. **Immediate (0–6 months):** aggressive price pass-through for cigarettes in structured bands; SKU rationalisation to protect higher margin price points; targeted trade programs to limit illicit/illegal substitution. (High probability, fast). ([S&P Global][9]) 2. **Near term (6–18 months):** accelerate resource allocation to FMCG categories showing >margin potential (snacks, ready foods, premium personal care); cut working capital / discretionary costs in lower ROI FMCG SKUs. (Requires disciplined execution). ([ITC Portal][1]) 3. **Medium term (12–36 months):** scale ITC Infotech & Paperboards speciality segments, pursue selective M&A in FMCG adjacent categories to buy scale quickly, and expand exports. (Transforms revenue mix). ([ITC Portal][13]) 4. **Risk management / policy:** strengthen retailer & small-farmer engagement to minimise livelihood shocks and reduce regulatory friction; engage actively on implementation details of excise changes to reduce unintended consequences (e.g., support for small retailers). (Political / reputational imperative). ([The Economic Times][12])

# F. Key numeric references & sources (most load-bearing) * ITC Q4 FY25 presentation / segment revenues & segment results (shows cigarette revenue/EBITDA, paper and FMCG-others performance, hotels demerger accounting). ([ITC Portal][1]) * ITC Q1 FY26 results & Q1 results FAQ / presentation (June 2025). ([ITC Portal][14]) * ITC Q2 FY26 results presentation (Sept 2025 / Oct 2025). ([ITC Portal][15]) * Reuters coverage & PIB notifications on the excise duty changes effective **1 Feb 2026** (duty slabs & market reaction). ([Reuters][8]) * Analyst / S&P commentary on expected medium-term earnings hit from tobacco excise changes. ([S&P Global][9])

# Quick bottom line / recommendation for an investor or analyst * **Short term (next 3–9 months):** expect headline volatility. Q4 FY25’s exceptional gain is *non-recurring* — remove it when modelling. The Dec-2025 excise reset (effective Feb 1, 2026) likely reduces tobacco volumes and will depress FY27 cigarette EBIT if ITC passes through most of the tax and volumes fall. Model a **volume decline (start 5–15%)** in cigarettes and stress test EPS for FY27 accordingly. ([ITC Portal][2]) * **Medium term (12–36 months):** ITC’s diversified strategy (scale FMCG, paper packaging and IT services) is the credible path to offset tobacco earnings erosion. If management accelerates capital and marketing into >margin FMCG categories and maintains pricing discipline, the company can protect consolidated EBITDA over time — but that is execution-dependent. ([ITC Portal][1])

Data privacy and security in the times of AI

One of the first and formost things that we need to be aware of is about data tenancy. The more of Indias data is outside of India, the more the companies from outside of india will make money. This is a given. In the times of AI why are we not having laws about data residency, why should we wait for companies to snoop on our information and make money. I hope the current GOI is capable of first establishing relevant laws, and then enforce them before it is too late. I believe perplexity is now free for Airtel users for 1 year, so is chatgpt going to be free from 5th nov'25. Unless we have ringfencing of our data even god can't help us. Below is an example of 3 outputs of LLM for reference.

Chatgpt extract

where does chatgpt store data when i query it in india Your concern is completely valid, especially with the increasing amount of data being used in AI and online services. Trust is a huge factor when using any technology, so it’s good that you’re thinking critically about it.
Here's how OpenAI typically addresses these concerns:
### 1. **Data Anonymization** OpenAI processes data in a way that minimizes personal identification. This means that the information used to improve the model is generally stripped of personally identifiable details. The data is anonymized, so it’s harder to link back to specific users.
### 2. **Transparency & Privacy Policies** OpenAI provides a [Privacy Policy](https://openai.com/privacy) that outlines how data is handled. In general, this policy explains: * What data is collected (e.g., queries, feedback, interactions). * How the data is used (e.g., to improve the model, monitor for abuse, etc.). * What control you have over your data (e.g., how to request deletion or access).
### 3. **Data Use for Improvement** OpenAI does use data to improve the model, but this data is typically aggregated and anonymized to enhance the AI’s ability to understand and respond. However, this does not mean OpenAI uses your individual conversations for personalized research or profiling.
### 4. **Control and Settings** OpenAI allows users to manage some aspects of their data and privacy: * You can **delete specific interactions** if you're concerned. * You can also **turn off or limit data usage** through the settings, depending on your platform.
### 5. **Opt-Out and Data Retention** You also have the option to **opt-out** of certain types of data collection (depending on the service you're using). OpenAI allows users to manage how their data is retained or used in model training.
### 6. **Research and Profiling** OpenAI does **not** conduct research on individuals specifically using the data you provide. The research and improvements made to the model are focused on broader patterns across all users, not on any single person or their behavior. The aim is to improve general capabilities, not to perform targeted research on individuals. That said, if you’re ever unsure or have specific concerns, the best approach is to read through OpenAI’s privacy documentation or reach out to their support team directly for clarification on how they handle data in your region.

When you query ChatGPT, your data is processed by OpenAI’s servers, which are located in various regions around the world. OpenAI doesn’t store data permanently for individual conversations, but rather processes it in real-time for generating responses. The actual data processing and storage locations depend on the infrastructure that OpenAI uses, which may include data centers in regions such as the U.S., Europe, or other global locations. However, OpenAI is committed to user privacy and follows strict guidelines regarding data usage and storage. Conversations may be temporarily stored or logged for improving the model and ensuring quality, but OpenAI typically anonymizes and aggregates data for that purpose. If you're concerned about specific data privacy policies or want more details, it’s always a good idea to review OpenAI's privacy policy or terms of service. If you're in India, OpenAI might be using regional data centers depending on your internet service provider and where they route your traffic, but the exact location can vary.

perplexity reply for same queries
https://www.perplexity.ai/search/where-does-perplexity-store-da-LHPpTfGpQT6VCm2DcDJA5A#1

gemini reply for same queries
https://gemini.google.com/share/4362c9df6c6a
at least gemini had the courage to inform that the data is stored in servers outside India.

one other information which might be sensitive is related to health. and that to health related to perticular demography, age etc. These sensitive data should not be kept outside of India.
As the confluence of Robotics, IOT & AI increases, there will be multiple risks to Indian citizens. How are we going to define the rules for keeping the data safe is going to be big challenge.

Chit-chat with charts Series 1

I have been researching about companies where to invest for long term and what could be the reason for investing in these companies. I am covering Yes bank which is one of the most invested stock by retailers, and why i am bullish on the prospect of Yes bank.

In the past few years the bank has started performing, has shown increase in NIM's and is becoming profitable. The management has changed and is now hopefully in good hands. This is not the main reason for me to invest in the company.

The actual reason is SMBC picking up stake in the bank, this would have also been of less signifcance. However our PM's visit to Japan some time ago, and Japan planning to invest substantial amounts in India for its growth over the next decade is one of the more important reasons. Any bank would like to have proper controls over the investments that it makes, so my beliefe is that the next few years or decades the investments are going to increase. These investments may come through YES bank only. Again we need to keep track on the banks activities and also see how it is performing. Just believing on the story and not following up may be futile.

Cloud for all

A very interesting situation has arisen in India. There are roughly around 200 million gmail users in India, however it has a very smart way of extracting money out of Indians. Only 15 gb data is free, after that you have to pay for increasing this space utilization. They charge nearly ₹ 1300 for 100 gb of usage, and nearly ₹ 550 for 30 GB of data.

There are nearly 450 million jio users, and nearly same number of whatsapp users in India. The users may be common across the pool of jio and whatsapp users. Most of them are using gmail storage, for taking backup of their whtsapp data. Imagin if Jio enters this space, then it may create a new way of tapping into google space.

Here my suggestion would be to provide users to access jio cloud space using otp. Login can be . Suppose a person has 989898 as phone no. then login id shoudl be 989898.jio.com and password is unique which will be a one time password which will be generated and sent to the mobile. this way the users will have secure password, and will have easier access to their cloudspace. Next the whatsapp users can change their backup to jio cloud space. The advantage here would be that people who are using gmail as backup can directly have this facility readily available. Another important point is that even people who are not using jio can use this facility. May be jio can provide this space for non jio users as well.

number of jio mobile users may remain roughly around 450 million, but the jio cloud space users may double. Another facility can be movement of all photos from google photos to jio cloud space. There are multiple ways in which Jio can challenge google with only one cloud facility. I will be more than delighted to assist you to build this user expereince. Warm Regards Girish K

Three language model for NEP

I would like to congratulate the Government of India for coming out with 3 language policy for entire country. Let us look at the challenges and probable solutions for them. Today India has people from states who have migrated across length and breadth of the country. Suppose if we want to teach a child in say हिन्दी, English and any other language that the student wants to persue, are our education institues capable of doing this?

How to address this specific issue. We can easily address this with having digital assets for each language created and stored in our country, with the help of service providers (BSNL, Jio, Airtel, Vi), let us keep in mind to never store our heritage outside our country. The second better alternative is to establish what i call भाषा केंद्र in every state, where every professors from every Indian recognized languages can travel and stay in capital of the state to provide their services. These professors can provide guidence and hand holding during formative years of a child, which can be used for educating other students in future as well. Unless we create space for such a vibrant envirionment, we can not expect our students to thrive.

Third situation is when the student's mother tounge is a dialect which is not having a लिपि, in such a scenario we need to create even better digital infrastructure. Where the professor for such langues (ex. Mythili, bhojpuri, tulu, kodava etc.) can be housed in delhi for extended periods of time, so that these are clearly doucmented and recorded. This will help us Indians to accept and recognize these little known/spoken languages to also thrive. after all we are doing a service to our beloved Maa Bharathi. Jai Hind

Improving security while connecting Aadhar with PAN

Aadhar has been one of the spectacular tool for the government to pass on benefits to actual end users, and also to weed out the ghost accounts, and there is no 2 thought’s about it. The government has benefited a lot too, since there is no leakage in subsidies the government is saving insanely.

However latest development have shown that there are a lot of security concerns and issues, and these can be tackled easily if we follow the below mentioned methods.

- Sharing of Aadhar with Financial institutions, and linking PAN with Aadhar

o This is the right move, however implementation is very cumbersome. The government could have informed all the Institutions to connect with Income Tax Department directly, since by now most of the people have linked their pan with Aadhar. The next step could have been that, the government on its part while sharing the Aadhar number with financial institutions, they could have masked some portion. This would protect the identity of the people, as well as it could have served the purpose of connecting pan with Aadhar in all financial institutions. So literally, people running helter skelter to get their Aadhar connecting with PAN would have been avoided. Ex. If the Aadhar No. is 1234 6789 9870 then the gov. could have shared it as 1234 XXXX 9870

o Now that the process of linking Aadhar with PAN has already started, what can be done? Well the government can still emphasize on how to store the Aadhar number in various institutions, stating that some of the numbers should be masked, when anyone is trying to access or even view the Number.

These are only some of the ways that the government can protect the identity of a person. There are even better ways that we can adopt to improve the security of individuals, which the government can explore.

The Digital Identity

The Digital Identity
In a decades time I believe that digital identity will be as important as physical Identity if not more. Today we do have a National identity in some digital form , which is some what well accepted although security is a big concern (for which India will have a solution for sure).
One of the important initiatives that this government took was taking India into digital money in a big way. Today we have some of the coupons which are provided by many companies (such as sodexo & edenrad), which are still in physical form.
Since many of the mom & Pop stores have now started embracing digital money, we have a possibility of converting these coupons into digital format. There are many advantages in converting it to digital format, like if you have ur mobile you have the coupons (no need to separately carry them). Digital payments are easy to track for the business as well, in addition with GST kicking in the shopkeepers will be better off with digital payments. Digital money always is environmental friendly, and lastly the coupons have an expiry date which is only 1 year with digital coupons the expiry date can be more than 2 years or so.