MONDAY, 7 APRIL 2025
18 pages in 1 section
www.business-standard.com
NEW DELHI
~14.00
VOLUME XXXI NUMBER 303
How markets performed last week
Index on
Apr 4, ‘25
Sensex
Nifty
Dow Jones
Nasdaq
Hang Seng
Nikkei
FTSE
DAX
*Oneweek
75,365 -2.6
22,904 -2.6
38,315 -7.9
15,588 -10.0
22,850 -3.1
33,781 -9.0
8,055 -7.0
20,642 -8.1
*Change (%) over previous week
% chg over Dec 31, ‘24
--————————————————————————————————————————————————————————
Local currency
in US $
-3.6
-3.1
-9.9
-19.3
13.9
-15.3
-1.4
3.7
-3.1
-2.7
-9.9
-19.3
13.8
-9.4
1.5
9.7
Source: Bloomberg
3 IN 4 CEOS WANT INDIA TO
NEGOTIATE WITH US: BS POLL
$20 BN IT DEALS UP FOR RENEWAL
AMID GLOBAL UNCERTAINTIES
P UB L I S HE D S I M UL T A N E O USL Y FR OM A HM ED AB AD , B EN GAL UR U, B HO PAL , B HU BANE SW AR , C HAND I G ARH, CHE NNAI , HY D E R A B AD, K OC HI , K OL K A TA , L U CK N O W , M U MB A I, N E W DE L HI A N D P U N E
You may consider ETF*
*ETF - Exchange Traded Fund is designed to replicate the Index
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2 COMMERCIAL
1
NEW DELHI | MONDAY, 7 APRIL 2025
>
Your SIP, Your
Start an SIP - Systematic Investment Plan
Scan to
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process for change in address, Phone number, bank details, etc. Investors should deal only with registered Mutual Funds details of which can be verified on SEBI website
(https://www.sebi.gov.in) under ‘Intermediaries /Market Infrastructure Institutions’. For further information on KYC, RMFs and procedure to lodge a complaint in case of any
grievance, you may refer the Knowledge Centre section available on the website of Mirae Asset Mutual Fund. Investors may lodge complaints on https://www.scores.gov.in against
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MONDAY, 7 APRIL 2025
18 pages in 1 section
www.business-standard.com
NEW DELHI
~14.00
VOLUME XXXI NUMBER 303
How markets performed last week
Index on
Apr 4, ‘25
Sensex
Nifty
Dow Jones
Nasdaq
Hang Seng
Nikkei
FTSE
DAX
*Oneweek
% chg over Dec 31, ‘24
--————————————————————————————————————————————————————————
Local currency
in US $
-3.6
-3.1
-9.9
-19.3
13.9
-15.3
-1.4
3.7
-3.1
-2.7
-9.9
-19.3
13.8
-9.4
1.5
9.7
75,365 -2.6
22,904 -2.6
38,315 -7.9
15,588 -10.0
22,850 -3.1
33,781 -9.0
8,055 -7.0
20,642 -8.1
*Change (%) over previous week
Source: Bloomberg
~ MAY HOLD GAINS NEAR
85.5/$ AS GREENBACK
WOBBLES: BS POLL
With Donald Trump’s
reciprocal tariff policy raising
concerns over US growth
prospects and weakening
the dollar, the rupee is
expected to remain stable
over the next few months.
According to the median estimate from a
Business Standard poll, the rupee is expected
to trade at 85.5 per dollar by June-end, and
85.75 by September-end. The Indian currency
closed at 85.24 per dollar on Friday, compared
to its previous close of 85.44.
4>
COMPANIES P2
COMPANIES P2
THE UPI OF 2016 AND TODAY ARE
COMPLETELY DIFFERENT: NPCI’S ASBE
HOTEL CHAINS SEE ROOM FOR
GROWTH IN FACTORY TOWNS
P UB L I S HE D S I M UL T A N E O USL Y FR OM A HM ED AB AD , B EN GAL UR U, B HO PAL , B HU BANE SW AR , C HAND I G ARH, CHE NNAI , HY D E R A B AD, K OC HI , K OL K A TA , L U CK N O W , M U MB A I, N E W DE L HI A N D P U N E
N DEALING WITH RECIPROCAL TARIFFSN
3 in 4 CEOs want India to US buyers rethink
India orders as
negotiate with US: BS poll tariff woes bite
ILLUSTRATION: AJAY MOHANTY
Majority say they’re not changing
strategy to tackle tariff challenge
New Delhi/Mumbai/Chennai, 6 April
BS REPORTERS
Mumbai, 6 April
ECONOMY & PUBLIC AFFAIRS P5
MPC meet begins today
amid rate-cut expectation
The meeting of the Reserve Bank of India’s
six-member monetary policy committee — the
first of the current financial year — starts Monday
amid expectation of another 25-basis-point cut
in the policy repo rate, though there are outside
chances of a higher rate reduction.
ON
MONDAY
SPECIALS
BANKER’S TRUST
Expect a 25-bp rate cut,
but no change in stance
As headline inflation moves closer
to RBI’s target, and growth momentum
remains elusive, a rate cut may be
on the cards.
TAMAL BANDYOPADHYAY writes
15 >
MONEY MANAGER
From the shop floor
Change is underway in the deployment
of point-of-sale devices, but the
business may need a tweak.
RAGHU MOHAN reports
14 >
POLITICS
Fast tracks, fuzzy math
As Bihar polls near, upcoming Patna
Metro fuels excitement. But across
India, expensive metro dream
projects often outweigh ridership
and financial reality.
ADITI PHADNIS writes
8>
THE SMART INVESTOR
Warning lights for ER&D as
auto sector runs low on fuel 13 >
ECONOMY & PUBLIC AFFAIRS P5
New CPI series to include
rural housing inflation
The upcoming new consumer price index (CPI)
series will start measuring housing inflation in
rural areas, in tune with shifting consumption
patterns and emergence of rental markets
beyond urban centres, official sources said.
(For Super Senior Citizen)
WHAT NEXT
SHREYA NANDI, SOHINI DAS & SHINE JACOB
A
vast majority of Indian chief executive officers
(CEOs) would prefer the Indian government
to engage in trade negotiations with the
United States, rather than adopting a
retaliatory approach, following the imposition of a
26 per cent reciprocal tariff on Indian exports, shows a
dipstick survey of 15 top executives.
A
nationwide
survey
conducted
by
Business Standard soon after the Trump administration
imposed tariffs on several countries showed that
80 per cent of the CEOs wanted India to negotiate with
the American government (see chart). “The government
should not have a knee-jerk reaction. The current
government’s approach of wait and watch is the right
way. The government should focus on global
competition and not depend on a few countries,” said
the CEO of a leading firm, asking not to be named.
Seventy-three per cent of the respondents said they
were not impacted by the Trump tariff, while the rest
were divided equally between seeing it as an opportunity
and expecting adverse impact. “Economies that rely
largely on international trade will be the ones getting
impacted most. India, being a high (domestic)
consumption economy, won’t witness much impact
from the tariffs,” said the head of a large auto firm who
Turn to Page 5 >
did not wish to be named.
OVER 50 NATIONS REACH OUT TO
WHITE HOUSE FOR TRADE TALKS
BUSINESS PLAN
Based on a survey of 15 CEOs
do you
Q How
view the impact
Tata Motors’ luxury arm Jaguar Land Rover (JLR), which
has announced a pause on shipments to the United States,
is expected to clear its current inventory in the market
sooner than anticipated, analysts believe. JLR is estimated
to have between one and two months worth of inventory
in the US, one of them said.
6>
strategies are you
Q What
considering to mitigate
of US tariffs on
your company?
the effects of these tariffs?
Diversifying export
markets
Increasing domestic focus
Negotiating new supplychain agreements
No change required
Opportunity 13.33
Adverse
impact
13.33
No impact 73.33
you foresee any long-term
Q Do
implications of these tariffs
on India-US trade relations?
the Indian
Q Should
government introduce
No
20
Yes
40
6.67
0
20
73.33
Unsure
40
Maintain current
approach 13.33
Unsure
6.67
countermeasures or
Negotiate
engage in negotiations trade benefits
to address the US tariffs? 80
P6
JLR pauses US shipments, may
look to clear inventory fast
(Figures in %)
Q
Will you
invest
more in
India in
FY26?
Q
Yes 100
Yes
Will you invest overseas
in the future, especially
after Trump tariffs?
No
Don’t know
33.33 33.33 33.33
Source: BS CEO Survey
Compiled by BS Research Bureau
Washington’s decision to impose
reciprocal tariffs on its key trade
partners, including India, has put
American buyers in a tough spot,
even as exporters’ anxieties are
rising on multiple fronts.
Buyers are reassessing existing
orders, with some seeking discounts. They are also exploring the
best possible sources for imports,
given the varied but steep reciprocal
tariffs, exporters said.
In India, Customs authorities are
working towards faster clearance of
goods by April 9, when the reciprocal
tariffs are slated to kick in. The priority
is to dispatch as many consignments as
possible — either by ship or by air —
before April 9.
Some exporters are worried that
buyers may face liquidity issues, considering the sharp rise in tariffs on imports
from 60 countries. The US’ average
import tariff has been as low as 3 per
cent so far. If buyers face liquidity pressure, payments to Indian exporters may
be delayed, and the payment cycle could
get elongated, they said. Separately, calculations are underway to gauge the
impact on prices.
On April 2 (Eastern Time), US
President Donald Trump signed an
executive order introducing new reciprocal tariffs, imposing additional ad
valorem duties ranging from 10 per cent
to 50 per cent on imports from several
countries. While a 10 per cent baseline
duty took effect on Saturday, additional
country-specific duties will come into
force from April 9. ‘Individual reciprocal
higher tariffs’ will be imposed on 60
countries with which the US has the
n Some US
buyers are
seeking
discounts
n Exporters
are worried that buyers
may face liquidity issues,
considering the sharp
rise in import tariffs from
60 countries
n If buyers face liquidity pressure,
payments to Indian exporters may
be delayed, and payment cycle could
get elongated
n Firms and their clients are also
calculating the actual impact on prices
PAGE 8
Shrimp farming:
Tariff shockwaves
rock Andhra shores
Since US President Donald Trump’s
announcement of reciprocal tariffs on
April 2, shrimp prices across all categories
have dropped by 10–15 per cent,
triggering widespread panic among
farmers and exporters. SHINE JACOB writes
largest trade deficits. Ajay Sahai, director-general and chief executive officer
of the Federation of Indian Export
Organisations, said demand was likely
to slow down over the next few weeks as
buyers would evaluate the situation with
respect to the additional duties, since
India was not the only country facing
Turn to Page 5 >
high reciprocal tariffs.
India’s FY26 growth seen closer to 6.3% WITH OIL OFF THE TABLE, US
PAGE 4
Official says lower energy
costs good news for country
Govt hopes to have surpassed
RE for capex in FY25
ASIT RANJAN MISHRA & SHREYA NANDI
New Delhi, 6 April
Senior government officials expect India’s FY26
economic growth to hover around the lower
end of the 6.3-6.8 per cent range projected in
the Economic Survey. This comes amid rising
global uncertainty triggered by US President
Donald Trump’s sweeping tariffs on key trading
partners, which have raised fears of a potential
recession in India’s largest export destination.
“We still expect growth to be in the range of
6.3-6.8 per cent as projected earlier, though it
may be closer to the lower end of the band,”
a government official said.
While admitting that a demand slowdown
in the US would pose a challenge, a second official said the proposed income-tax cuts in the
US might offer some cushion. “Lower energy
costs are also good news for India’s growth
prospects,” the official said.
Brent crude, the global benchmark, slid
nearly 8 per cent to below $65 a barrel on Friday,
its lowest in nearly four years. Goldman Sachs
has lowered its average Brent crude price
NUDGES INDIA TOWARDS LNG
PAGE 5
The government is confident it surpassed the
Revised Estimates (RE) for capital expenditure of
~10.18 trillion in FY25 based on the advance
numbers, two top government officials said. “The
numbers we have received so far, even though not
for the full financial year, indicate that we are likely
to have exceeded the revised target of capex,” an
official said. RUCHIKA CHITRAVANSHI writes
With India making it clear that the US doesn’t have enough spare
capacity for crude oil, Washington, DC, now wants India to sign
fixed-term liquefied natural gas (LNG) contracts with American
producers, multiple sources in the know said.
SUBHAYAN CHAKRABORTY writes
INDIA MAY EMERGE AS LOW-TARIFF HUB FOR
US-BOUND CONSUMER DURABLE EXPORTS
‘RECESSIONARY PHASE
NOT RULED OUT’
FY26 GROWTH FORECASTS
(Y-o-Y in %)
ADB
World Bank
S&P Global
IMF
7.0
6.7
6.5
6.5
Fitch
OECD
Nomura
6.5
6.4
5.9
Source: BS Research
forecast for 2025 to $69 a barrel.
JPMorgan Chase & Co has said it expects the
US economy to fall into recession this year. “We
now expect real GDP (gross domestic product)
to contract under the weight of the tariffs. For
MONTEK SINGH AHLUWALIA
the full year, we forecast -0.3 per cent real GDP
growth, down from 1.3 per cent previously,” said
Michael Feroli, chief US economist at
JPMorgan. Economists at Citi and UBS have
also cut their US growth forecasts to 0.1 per cent
and 0.4 per cent, respectively.
Economists
have
projected
that
India’s growth could be impacted by 30 to 60
basis points (bps) in FY26. HDFC Bank Principal
Economist Sakshi Gupta said there was a
downside risk of 30 bps to her 6.6 per cent
growth forecast.
Turn to Page 5 >
tells Indivjal Dhasmana
Page 8
PAGE 7
EDIT:
COLUMN:
SPIRALLING
US TARIFFS: RUNNING BLIND ON
DOWNWARDS A TIGHTROPE, WRITES DEBASHIS BASU
PAGE 15 STATSGURU:
TRUMP TARIFFS: HOPES & FEARS
$20 bn IT contracts up for renewal amid GenAI wave, global uncertainties
AVIK DAS
Bengaluru, 6 April
RENEWAL PIPELINE
India’s top six information technology
(IT) services players, along with Nasdaqlisted Cognizant Technology, have deals
worth at least $20 billion up for renewal
this year, according to people familiar
with the matter. Deals worth $14 billion
were renewed in 2024.
These renewals are particularly
significant as they come at a time when
US-imposed tariffs and global
macroeconomic uncertainties have
created a cloud of uncertainties.
The deals are spread across verticals,
such as banking, financial services and
insurance (BFSI), retail, consumer
packaged goods, and manufacturing.
Most of these contracts — signed during
or just after the pandemic — have a
tenure of three to five years.
“There will not be many straight
renewals, and many of these enterprises
will try to go to the market to get some
competitive bids,” said Saurabh Gupta,
IT service provider Major renewals
TCS
Nielsen, Star Alliance,
Albertsons, Generali
Infosys
Daimler, GE Appliances,
Old National Bank
Wipro
Petrobras, E.ON
HCLTech
Chesnara
Tech Mahindra
Circle Health
Cognizant
Network Rail
PAGE 3
Indian firms may be
overusing AI tag
Experts in India’s AI startup ecosystem fear
the overuse of the AI label by firms, which
see it more as an efficiency layer rather
than a driver of core innovation. According
to them, some recently established
companies are branding themselves as
AI-driven, though in many cases, AI
functions more as a tool to enhance
efficiency rather than redefine workflows.
Source: Industry
president, research and advisory, HFS
Research.
Some of the major contracts coming
up for renewal include Tata Consultancy
Services’ (TCS’) deals with Star Alliance, a
consortium of airlines based in Germany,
and Nielsen; Infosys’ deals with GE
Appliances and Daimler; HCLTech’s with
UK-based life insurer Chesnara; Wipro’s
with German electric utility company
E.ON and Petrobras of Brazil; and Tech
Mahindra’s with Circle Health.
“All of them are looking for the next
wave of cost reduction, efficiency, and
how artificial intelligence (AI) can play a
role in that, because these were the deals
signed before AI became such a big
thing. So, clients are going to ask service
providers what they can do with AI and
where the next wave of value will come
from,” added Gupta.
AI and generative AI (GenAI) are
expected to play crucial roles in deal
renewals going forward, as clients look
to build more efficiencies into their
operations and reduce costs.
Infosys, for example, is looking to
integrate AI and add it as a new revenue
stream in its existing $3 billion deal with
German automaker Daimler. The
company hopes this will help extend the
partnership beyond 2028 and ensure a
steady revenue flow.
Such offerings will be especially
important in sectors like
manufacturing, retail, and CPG, which
are likely to be most affected by the
tariffs imposed by the US President on
almost every major country. Analysts
say these sectors are already bearing the
brunt of the uncertainty, with decisionmaking slowed and hiring nearly at a
halt in the US.
“The impact will be bigger on the
industries most affected by tariffs, and
that’s where we’ll see slower decision
making and likely more focus on
extending existing contracts until
there’s better clarity on the
macroeconomic outlook,” Stanton
Jones, distinguished analyst at research
firm ISG, told Business Standard.
That could also mean a silver lining
for IT services firms, as macroeconomic
headwinds are likely to translate into
more and larger cost-optimisation
deals. According to experts, enterprises
have to reduce costs. But unlike in the
past, they are not banking those savings.
They need the savings to fund
transformational programmes around
AI, which are shaping the contours of
current deals.
Turn to Page 5 >
2 COMPANIES
1
NEW DELHI | MONDAY, 7 APRIL 2025
>
‘The UPI of 2016 and today are completely different’
Unified Payments Interface (UPI) has expanded rapidly, with new use cases being added to the real-time payments system.
DILIP ASBE, managing director and chief executive officer of the National Payments Corporation of India (NPCI), speaks with
Ajinkya Kawale in Mumbai about the company’s next phase of growth. Edited excerpts:
What are NPCI’s big bets right now?
merchants. Four to five more countries
are exploring our tech stack.
The primary focus remains on growing
UPI, which has 10x potential. Currently,
400–450 million users use it monthly,
How different is UPI’s next
but it can grow to over a billion. Expandgrowth phase?
ing the user and merchant base will
UPI’s true potential is 100–150 billion
require investment and new use cases.
transactions a month. Reaching the next
Second, we want to expand access to
600 million users will need handformal credit collaboratively and
holding and initial incentives until it
responsibly. With Reserve Bank of India
becomes habitual. To build trust, we’ve
(RBI) and government support, the
run digital payment safety campaigns
Credit Line on UPI can grow the market.
over the past year. UPI hasn't matured yet
UPI has created a strong digital footprint.
— realising its full potential needs
Now we need tools like Credit
ongoing innovation,
Line on UPI for low-ticket,
investment, and collaboration
high-frequency credit —
between banks and financial
unlike credit cards.
technology companies.
Third, we’re investing in
technology (tech) — artificial
What’s NPCI’s position on the
DILIP ASBE
intelligence (AI), blockchain,
merchant discount rate (MDR)
and digital currency. AI helps
discussions?
MD & CEO, NPCI
us assess fraud risks in real
It’s under discussion with the
time. We’ve kept reported fraud below 1
government and RBI.
basis point of UPI value, which is
reasonable.
NPCI has introduced Lite and Lite X.
Fourth, globalisation. Cross-border
Was this in response to bank servers
integration needs regulatory
nearing capacity? We have seen
cooperation. We’ve made early progress
three outages so far.
in seven countries and are enabling
Lite and Lite X are the same product.
IN BRIEF
Tesla’s entry will help boost
EV market in India: BMW
BMW Group India is unfazed by the prospect of Tesla entering the
electric vehicle market here and feels it will help grow the
segment, according to its Managing Director and Chief Executive
Officer Vikram Pawah. The group, which sold a total of 1,249 units
of electric cars in India across two brands — BMW and MINI — has
already sold 646 units in the first quarter of 2025 and is keeping
its forecast of 15 per cent of its total sales in India coming from EVs,
Pawah told PTI in an interview.
PTI
Fuelled by beauty vertical,
Nykaa eyes robust growth
FSN E-Commerce Ventures, the parent firm of fashion and
beauty retailer Nykaa, on Sunday, said it expects continued
growth in the final quarter of Q4FY25. The company said the
beauty vertical will continue to be the major growth driver.
”Nykaa’s full financial year’s revenue growth is estimated to be
at similar levels in the mid-twenties, indicating consistent
growth across all quarters of FY25," it said.
BS REPORTER
MMRDA allocates plot to NSE
for lease premium of ~758 cr
The Mumbai Metropolitan Region Development Authority
(MMRDA) has allocated a plot in Mumbai’s Bandra-Kurla Complex
(BKC) to the National Stock Exchange (NSE) for a lease premium of
~757.70 crore. The allocated plot C-82 in G-Block, BKC, has a total
area of 5,500 square meters (sq m) and a built-up area of 22,000
sq m with a permissible floor space index (FSI) of 4.00. NSE will
develop an administrative building on the allocated plot. The plot
has been leased for 80 years.
BS REPORTER
AERA unlikely to allow
Mumbai international
airport’s legal cost claim
DEEPAK PATEL
trol period (FY20–FY24) were
~90.5 crore. The document
further projects that legal
The Airports Economic expenses will almost double to
Regulatory Authority (AERA) ~167.5 crore in the fourth conis unlikely to allow legal trol period (FY25 – FY29).
A meeting was organised
expenses to be included under
“operating costs” while calcu- by AERA last month to discuss
lating aeronautical tariffs for MIAL’s tariff proposal. During
Mumbai International Airport this meeting, an MIAL execuLimited (MIAL) during the tive argued that there is no
fourth control period, which clause in the existing agreeruns until FY29, sources told ments — signed with government entities — that disallows
Business Standard.
Once aeronautical tariffs — legal expenses.
The opersuch as landing
ator pointed
charges, parkMIAL has requested
out that such
ing
charges,
AERA to include
costs had been
and user devellegal expenses
allowed
by
opment
fee
operating
under
AERA in the
(UDF) — are set
costs as this
tariff determiby AERA, the
would result in
nations of the
airport operator
higher tariffs
previous three
is permitted to
control periods.
collect them
According to MIAL, legal
from the aviation sector stakeholders such as airlines and expenses are a routine part of
airport operations, arising
passengers.
Adani Group-led MIAL, from matters such as height
which operates the Mumbai restrictions, land disputes,
airport, has requested AERA slum rehabilitation, and issues
to include legal expenses related to aeronautical charges
under operating costs, as this and payments to the Airports
would result in higher tariffs Authority of India (AAI).
The operator noted that
being approved by the reguAERA had allowed similar
lator, they said.
However, AERA believes legal costs in tariff orders for
that including legal expenses six AAI airports that were pricould lead to a duplication of vatised following concession
costs—since the privatised agreements signed in Februairport already maintains an ary 2020. These orders were
internal legal team. Such issued between 2021 and 2023.
The MIAL executive then
expenses should be rationalised rather than passed on requested the regulator to
through
higher
tariffs, maintain consistency with its
past practice and allow legal
sources said.
According to MIAL’s doc- expenses to be included under
ument submitted to AERA, its “operating costs” in the curlegal expenses in the third con- rent control period as well.
They’re designed to avoid multiple hops
for small-ticket transactions. A typical
UPI transaction takes about 10 hops, but
that can be optimised for smaller
amounts. Banks have been committed.
The RBI and government monitor NPCI
and banks regularly. When you’re
planning for 10x growth,
constant innovation is
necessary. The UPI of
2016 and today are
completely
different — it’s an
evolutionary
process.
intermittent technical issues that
affected UPI success rates for about an
hour. The issue was identified and
resolved. We've since stabilised the
system, done a root cause analysis, and
replaced affected hardware to avoid
recurrence. We regret the
inconvenience and are committed to
transparency, stronger safeguards, and
a seamless experience.
How can banks grow UPI volumes on
their applications (apps)?
Banks are interested, but they’re at
different stages of tech readiness. Some
— SBI, ICICI, HDFC, Axis — are making
progress. Yes Bank has launched a new
UPI app. There are efforts, but more are
needed.
What caused the
March 26 outage?
NPCI has a surplus of ~1,100 crore. How
is this allocated?
That day, NPCI had
That’s a board decision. NPCI is a not-for-
UPI’S TRUE POTENTIAL IS
100–150 BN TRANSACTIONS A MONTH.
REACHING THE NEXT 600 MN USERS
WILL NEED HAND-HOLDING…”
profit. We aim to create resilience and
ensure uptime, which requires large
infrastructure investments. We’ve built
two data centres in Hyderabad and
Chennai, a third one is ready, and we’re
considering a fourth.
We settle large daily values and maintain a settlement guarantee fund and risk
reserves. We have offices in Hyderabad
and Chennai, but not in Mumbai. As we
scale, we’ve reduced NPCI’s UPI fees
almost every year to pass economies of
scale back to the ecosystem.
Were the third-party app provider
(TPAP) approvals in line with your 30
per cent mcap goal for end-2024?
We’ve extended the deadline by two
years. Efforts are on to get more players
involved. A balanced market share is the
goal, but it’s not easy. We hope newer
players invest, gain share, and offer
different use cases. It’s possible, but
slower than expected.
As players grow, size and legacy can
become hurdles. Smaller players can
innovate more and build features for
niche segments. Two players are
benefiting from network effects — I don’t
know how long that will last. We’re
seeing movement from Cred, Navi,
super.money, and Paytm. There are signs
that things might shift soon.
A record 20 firms got UPI approval
in 2024. Is the licensing process
getting easier?
Several factors are driving TPAP interest.
MDR is zero, and the government is
offering incentives. UPI, as an
infrastructure layer, gives access to 450
million users. If you're launching a
credit, insurance, or investment app, UPI
cuts acquisition costs dramatically.
It’s democratising user acquisition,
like Aadhaar did with know-yourcustomer. More players will increase
competition. A few TPAPs were licensed
in the fourth quarter of 2024-25 — we
expect them to go live later this year.
BHIM (Bharat Interface for Money) has
been hived off. Was it due to a conflict of
interest? Would NPCI consider more
such hive-offs?
There are some considerations but I can’t
comment on future hive-offs yet. BHIM
has been part of NPCI for seven–eight
years. We don’t see it as a competitor —
it’s a collaboration. BHIM is viewed as the
country’s app. The goal isn’t to grow 50–
100 per cent of UPI volumes but to ensure
a sovereign alternative. We hived it off to
maintain an arm’s-length relationship
between NPCI and BHIM.
More on business-standard.com
Hotel chains see room for
growth in factory towns
Hyatt to add six
hotels this year
GULVEEN AULAKH & AKSHARA SRIVASTAVA
New Delhi, 6 April
EXPANDING REACH
New Delhi, 6 April
Marquee hotel brands are moving to
India’s industrial towns to drum up business in places set to lead the country’s next
phase of growth. Big hospitality brands
such as the Thailand-based Dusit group,
Sarovar Hotels, and Treebo have set their
sights on these so-called micro markets,
including Sriperumbudur, Bhiwadi,
Nashik, and Dholera.
According to industry executives, these
industrial towns will expand not only to
employ more people but will also attract
global business leaders as India positions
itself as an alternative manufacturing hub
to China, even in the face of the new tariff
regime imposed by the US government.
Jatin Khanna, chief executive officer
(CEO), Sarovar Hotels, said, “We are setting
up a Sarovar Portico in Sriperumbudur, an
industrial hub. This is a micro market with
just one existing hotel but huge demand,
which is why we are setting up our own
hotel and opening up in the next 90 days.”
The hotel, spread across 2.5 acres, will
have 156 rooms, 7,000 square feet conference and meeting areas with amenities
such as restaurant, bar, spa, gym, and pool.
Hospitality major Marriott International has recently partnered with
SmartHomes Infrastructure to build a fivestar hotel in Dholera, India’s up and coming semiconductor hub. The 200-room
hotel near the proposed Dholera
International Airport will bear The
Courtyard brand name.
States and the Centre are encouraging
infrastructure expansion in and around
these industrial hubs. The Union government has identified 12 new industrial corridors and the service industry is thus finding confidence to take the plunge.
These corridors, which includes the
Dholera Special Investment Region part
Global chains Marriott & Dusit, Indian
majors Sarovar & Treebo paving the way
An upcoming segment as India
expands manufacturing hubs, builds
12 new industrial corridors
Potential clientele coming from
global manufacturing companies
and GVCs heading to India
Hotel chains heading to Dholera,
Sriperumbudur, Bhiwadi, and Nashik
of the Delhi-Mumbai Industrial Corridor,
are under the ~28,600 crore National
Industrial Development Programme,
which will enable the creation of greenfield
smart cities of global standards.
Thai hospitality chain Dusit has identified Tier-II and -III markets as avenues
of growth. It plans to tap underserved locations and is preparing to launch six hotels
to cater to growing demand in Raipur and
Bhiwadi. “Destinations like Bhiwadi have
a lot of potential. It is an underserved market with a lack of branded hotels, forcing
international customers to stay in
Gurugram and drive two hours to reach
the industrial hub,”said Deepika Arora,
head (India), Dusit International.
Treebo Hospitality Ventures (THV),
parent company of the budget brand
Treebo, and the newly-launched midscale
brand Medallion have also identified small
industrial towns as opportunities.
“In terms of growth, we are only
scratching the surface. The economy segment has about 100,000 hotels — but
these are unorganised. Over the next decade, we aim to have 2-3 per cent share of
this market. Meanwhile, the midscale seg-
ment is not too crowded currently and we
want to gain a bigger share of it,” Sidharth
Gupta, cofounder and CEO, THV, told
Business Standard recently.
With over 800 hotels and 16,000 keys,
30 per cent of Treebo’s portfolio is in small
cities. Additionally, it has planned 500700 midscale hotels in the coming years.
“We have identified Tier-II and -III markets as the real drivers of growth. As many
as 40 per cent of our portfolio is in the
seven big metros, which will continue to
offer growth. But the excitement is in the
next 100 cities. We are going to places like
Thrissur, Chandrapur and Nashik , Siliguri,
and Haridwar,” Gupta said, adding that
these cities offer massive headroom.
Nagpur, where THV has 23 hotels,
clocks an occupancy of over 70 per cent, it
said. “These cities are seeing the rise of
special economic zones, industrial corridors, and highways. Nagpur, for example,
is a massive warehousing hub and is now
becoming an information technology hub.
These factors are supplementing the preexisting trade-driven economy in these
cities, which is adding up to drive opportunity and occupancies,” Gupta added.
AKSHARA SRIVASTAVA
New York Stock Exchange
(NYSE)-listed Hyatt Hotels
plans to add 1,350 keys to its
India portfolio with the opening of six new hotels in the
country this year, as it remains
focused on the luxury and leisure segment to aid growth.
The hospitality chain will
focus on its lifestyle brands
like JdV and Andaz, and
intends to bring its recentlyacquired lifestyle brand Standard Hotels to the country.
“Standard hotels is an
amazing brand for India and
I’m very excited and eager to
bring it here if the right opportunity comes up. We have the
perfect market in cities like
Delhi, Mumbai, Goa, and
Bengaluru and the right age
group for it,” Sunjae Sharma,
managing director, India and
southwest Asia at Hyatt
Hotels,
told
Business
Standard. The six new hotels
this year will come up in
Ghaziabad, Kasauli, Kochi,
Bhopal, Vithalapur, and Jaipur.
“As we look ahead to 2025,
we are excited to build on this
momentum with even more
aggressive expansion plans,
and a goal of 100 hotels in
India within the next five
years,” Sharma said. It currently has 50 properties in the
country.
With nine brands in India
currently, Hyatt will also be
launching its tenth brand —
Destination — this year in
Jaipur and Jim Corbett. The
Sunjae Sharma, MD, India and
southwest Asia at Hyatt Hotels
said the company has plans of
setting up 100 hotels in India
in the next five years
hotel management company
has identified five cornerstones of growth — luxury, loyalty, leisure, lifestyle, and wellness.
Under its luxury
segment, the company has
three new Alila properties in
the development stage currently in Igatpuri (Maharashtra),
Coorg and Lansdowne. Also in
the pipeline is the opening of
the Noor-Us-Sabah Palace in
Bhopal — its first Unbound
Collection property, which has
been pushed to 2026.
“Lifestyle is a big focus. We
have doubled our luxury portfolio, tripled our resort portfolio, and grown the lifestyle
portfolio five-fold. That is a
strategic transformation we
have undertaken,” he said.
In the year gone by, the
company witnessed a strong
double digit growth across performance metrics like signings
and RevPAR (revenue per
available room).
New Delhi, 6 April
GreenLine lines up additional E-buses to drive 50% of India
$1 billion to expand green fleet business by FY27: JBM Auto
PUJA DAS
DEV CHATTERJEE
storage ecosystem by setting up giga-scale
ACC and battery manufacturing facilities
with an emphasis on maximum domestic
Electric buses (e-buses) will make up half value addition. Arya added that with a
of JBM Auto’s India business by 2026-27 capacity of manufacturing 20,000 e-buses
(FY27), company’s vice-chairman, Nishant in its Delhi-National Capital Region unit,
Arya, told Business Standard in an inter- JBM EV Ventures aims to revolutionise the
view. The company has an order book of EV battery ecosystem by introducing flexmore than 10,000 e-buses which it hopes ible and cost-effective battery management
to deliver in the next two years, Arya added. solutions through battery subscription and
The company received an order size of leasing, infrastructure development, and
allied services expansion in the coming
around 6,300 in 2023-24 (FY24).
years.
E-buses account for 35 per cent
With regard to availing the
of JBM Auto’s revenue at present.
subsidy under the PM-eBus
The company, a key player in
Sewa scheme, the firm has
India’s automotive sector, paralready been awarded subticularly in the e-bus segment,
sidies under the first and sechas a 30-40 per cent market
ond phases and the rollout will
share in the country.
start this year in a few states,
A total of 3,314 e-buses sold
including Maharashtra, Gujin India in 2024-25 (FY25)
arat, and Haryana, Arya said.
down from 3,516 in FY24. JBM
Arya said that JBM is
Auto and JBM Electric sold 379 JBM Auto and JBM
unlikely to bear the brunt of US’
e-buses in FY25 compared to Electric sold 379
reciprocal tariffs, but overall,
530 in FY24, and eight e-buses e-buses in FY25
economies heavily dependent
in the current financial year, against 530 in
on trade will be severely
according to data from the FY24 and 8 so far,
affected. “India being a highVahan portal excluding according to the
consumption economy, our
Telangana.
Vahan portal data
domestic requirement is huge
Arya said JBM plans to parin the country. So, the impact
ticipate in the Ministry of
Heavy Industries’ advanced chemistry cell on the Indian economy will be miniscule
(ACC) battery storage production-linked even if you look at the e-bus segment.” The
incentive (PLI) scheme with the firm’s penetration of e-buses in China and Europe
Bawal plant near Gurugram, manufacturing is around 300 buses per 1,000 people,
and assembling batteries for all kinds of whereas in India, that figure is nearly 30,
vehicles. With an ~18,100 crore outlay, the Arya said, adding, “The gap is huge and our
ACC battery storage PLI scheme aims to country has so much potential that this
strengthen the electric mobility and battery requirement has to be bridged first.”
New Delhi, 6 April
Mumbai, 6 April
EYEING ECO-FRIENDLY FUTURE
GreenLine Mobility Solutions, a
logistics firm backed by the Essar
Group, is raising $275 million in
equity from promoters and investors, including Nikhil Kamath, cofounder of online stock-trading
platform Zerodha, at an undisclosed valuation.
This is part of a $1 billion fresh
investment, including equity,
reflects GreenLine’s ambition to
offer greener logistics alternatives. The Mumbai-based firm,
which currently operates a fleet
of 650 LNG trucks in India, aims
to scale up to 10,000 heavy-duty
vehicles over the next few years,
powered by liquefied natural gas
(LNG) and electricity.
“This investment in decarbonising road logistics aligns with
Prime Minister Narendra Modi’s
e-drive initiative,” said Anshuman Ruia, a director of Essar, adding India’s vision for a low-carbon
future is taking shape, and
GreenLine is proud to be at the
forefront.
Its LNG trucks are being
sourced through a technical and
equity tie-up with Iveco, an Italian
manufacturer from an associate
company, Blue Energy Motors. To
support this transition, an associate company will establish 100
 Associate firm to invest in
EV, LNG truck manufacturing
rates to clients as diesel
powered heavy duty trucks
 LNG pumping stations
with EV charging stations to
be set up across India
 High potential as India
is far behind in LNG/EV
heavy duty trucking, EV
charging infrastructure
compared to China
 Company to offer same
LNG refuelling stations, along
with electric-vehicle (EV) charging points and battery-swapping
facilities. The move is part of a
wider push to provide low-emissions transport infrastructure.
Both India and China are nudging
freight operators away from diesel. In China, the share of LNG
trucks rose to more than 9 per
cent of the heavy-duty fleet in
2024, following a peak in diesel
truck sales in 2021. A similar shift
is expected in India, where official
policy favours greener transport.
GreenLine claims its services
are cost-competitive with diesel
hauliers. That, it argues, allows
clients to lower emissions with-
out paying a premium, potentially earning them carbon
credits in the process.
Anand Mimani, GreenLine’s
chief executive, said the company
is “building the backbone of sustainable logistics” by rolling out
the infrastructure necessary for
a shift from fossil fuels.
“With our nationwide network, we are enabling the logistics ecosystem to move seamlessly to cleaner, more efficient
alternatives,” he said.
Kamath, who invested $20
million in GreenLine, believes
the transformation is overdue.
“Green mobility isn’t just a
trend—it’s inevitable,” he said.
NEW DELHI : Printed and Published by Nandan Singh Rawat on behalf of Business Standard Private Limited and printed at The Indian Express (P) Ltd. A-8, Sector-7, Noida, Gautam Budh Nagar-201301 and published at Business Standard Private Limited, Nehru House, 4 Bahadur Shah Zafar Marg, New Delhi 110002
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COMPANIES 3
NEW DELHI | MONDAY, 7 APRIL 2025
>
Indian firms may
be overusing AI tag
Experts say country trails global peers in core AI
JADEN MATHEW PAUL
Mumbai, 6 April
E
xperts in India’s artificial intelligence (AI)
startup ecosystem fear
an overuse of the AI label by
companies, which see it more
as an efficiency layer rather
than a core innovation driver.
According to them, some
recently
established
companies are branding
themselves as AI-driven,
though in many cases AI functions more as a tool to enhance
efficiency rather than redefine
workflows.
Abhishek Srivastava, general partner at Kae Capital,
said while vertical software as
a service (SaaS) companies are
integrating AI to optimise
repetitive tasks, their core
technology stack and workflows
remain
largely
unchanged — making AI
more of a “wrapper”. In contrast, truly vertical AI applications fundamentally alter processes, he said.
Such applications, where
AI is central to the solution
rather than an add-on, are still
relatively rare. While a significant portion of AI adoption is
genuine, Srivastava estimates
that about 15–20 per cent of
implementations are forced
fits with limited impact.
Santosh
Maheshwari,
partner at Grant Thornton
Bharat, said, “I would say this
terminology (AI) is used very
loosely from any operational
perspective.” He added, “Even
a small tool that can be automated is now called AI. I think
the term or function needs to
be better defined to determine
what
constitutes
an
AI-operated startup.”
Sumangal
Vinjamuri,
associate vice-president at
Blume Ventures, classifies AI
TALENT
DRAIN, A
CONCERN
‘Real innovation is how you Adani, Vedanta among
integrate AI with hardware’ 26 firms in fray to
B Capital, the investment firm
cofounded by Facebook’s
Eduardo Luiz Saverin, is
making a major push to back
companies in artificial
intelligence (AI) and robotics
in India and Asia, according
to General Partner KARAN
MOHLA. In a video interview
with Peerzada Abrar, he highlighted the growing market
for AI and robotics products,
anticipating a surge of
innovative companies from
India and Asia to meet diverse
needs. Edited excerpts:
Which sectors are you
excited about right now?
lSeveral startups fail to use AI as an innovation driver
l’AI’ label applied loosely, even for simple tools
lIndia raised $171.4 mn in AI startup funding in 2024 vs
$3.3 bn raised by China and $34 bn by the US
lOutflow of AI talent limiting local innovation depth
lIndia trails US by 3 years in AI thinking and
product design
startups into three categories.
The first includes companies
established between 2010 and
2020 that are integrating AI
into specific use cases. While
many position themselves as
AI-native, there is often a gap
between marketing claims
and
actual
product
capabilities.
The second category comprises deep-tech firms operating closer to the fundamental
AI layer — genuinely AI-native
by design.
The third includes new
applications built entirely
around
AI,
blending
traditional SaaS models with
AI-driven functionalities.
Over time, Vinjamuri
noted, the first and third
groups are likely to converge
as they compete for the same
customers.
One major challenge facing
India’s AI startup ecosystem is
the outflow of top-tier technical talent. Vinjamuri said
many engineers and product
developers capable of building
AI-native products have
already moved to the United
States. “We have a lot of tech
talent, but it is not at the tip of
the spear when it comes to AI,”
he said. He added that this
limits the depth of AI product
development in India.
According to him, India
lags Silicon Valley by two to
three years in both technological thinking and product
imagination. “A pattern I see
in many US companies is that
they are able to imagine
replacing not just software
spends but also human
resources,” he said.
According to data from
Tracxn, AI startup funding in
India stood at $171.4 million
across 30 rounds in 2024 and
$12.5 million across two
rounds in the first quarter of
2025. In comparison, China
secured $3.3 billion and the
United States raised $34 billion in 2024. For the first quarter of 2025, China attracted
$220 million, while the US saw
$6.2 billion.
WHAT WAS TYPICALLY
DONE IN ACADEMIC
AND RESEARCH
ORGANISATIONS HAS
NOW COME UP TO THE
SURFACE OF COMMERCIAL
AND BUSINESS VALUE
PROPOSITIONS
The area that we are very
excited about right now and
which includes certain tailwinds is AI. We are seeing a lot
of interesting work for foundational models. We are starting to see applications both
for enterprises and users.
We are expecting to see a
lot of interesting companies
Will ChatGPT and DeepSeek
emerging from Asia because
impact your investment
the context is very
decisions?
different from most
We’ve done
other AI native
two robotic
applications that are
investments in
being built in the US,
the past year –
Europe or China. We
KARAN MOHLA one in the US
are also excited about General Partner,
and one in Asia –
deeptech, robotics,
and we’re
B Capital
space tech and
working on one
advanced
more now. Aside
manufacturing. What was
from a few highly technical
typically done in academic
use cases, hardware
and research organisations
(innovation) has become
has now come up to the
somewhat commoditised.
surface of commercial and
The real innovation is in how
business value propositions,
you integrate AI, computer
where they are able to raise
vision, and software
venture capital money.
intelligence with the
hardware. India’s strength
lies in software engineering
and development.
Historically, the country
didn’t have much success in
robotics. But that has started
to change. Also, countries
like Japan have expertise in
the area of hardware, but they
don’t have full capability on
the software side. The founders from India have a phenomenal opportunity to be able
to build the companies which
can cater to these requirements. A fund like us can be
helpful in commercialisation
and helping firms get access
to large customers.
What opportunities do you
see for AI to scale up in
health care, education and
finance?
We are seeing interesting
opportunities in edtech,
health care and financial
services which sort of marries
this combination of AI and
relevant data. India offers
probably one of the most
attractive markets for AI-led
solutions in different
industries where you can
build large businesses.
acquire JP Associates
BS REPORTER
Mumbai, 6 April
As many as 26 suitors, including Adani Enterprises,
Vedanta, Jindal India Power,
Kotak
Alternate
Asset
Managers, and Patanjali
Ayurveda, have expressed
interest in acquiring the
assets of the beleaguered
Jaiprakash Associates Ltd,
according to an exchange filing.
Other entities interested in
acquiring assets of Jaiprakash
Associates include Dalmia
Cement,
Asset
Reconstruction Company
(India) Ltd, JC Flowers Asset
Reconstruction,
Torrent
Power, Jindal Power, Authum
Investment & Infrastructure,
GRM Business and Oberoi
Realty, among others.
The deadline for submitting expression of interest
(EoIs) ended on March 25. The
26 suitors are prospective resolution
applicants
for
Jaiprakash Associates, which
was admitted to the corporate
insolvency resolution process
through
the
National
Company Law Tribunal
(NCLT), Allahabad Bench, via
an order dated June 3, 2024.
The company was part of
a list of 30 companies that
were directed by the Reserve
Bank of India (RBI) to be
referred to the NCLT in
August 2017. This was the
second list put together by the
regulator.
Jaypee Infratech, the
group’s infrastructure subsidiary, had already featured
on the first list of 12 large corporate accounts for immediate insolvency action in June
2017. This list came to be
known as “The Dirty Dozen”.
Financial creditors to the
company have an aggregated
claim of ~57,185 crore against
the company.
Of this, a consortium of
banks headed by State Bank
of India (SBI) has transferred
their exposure to state-owned
National Asset Reconstruction Company Ltd (NARCL). This resulted in NARCL
having the largest claim
among creditors.
Jaiprakash Associates is an
industrial
conglomerate,
whose business includes engineering and construction.
More on business-standard.com
HEAD OFFICE
Transaction Monitoring and KYC/AML Department
Open Tender Notice
Bank of India invites Open Tender for conducting feedback exercise for
our field functionaries. For this purpose, RFP has been floated and
uploaded to our bank website on 07.04.2025, The last date for submission
of bid is 30.04.2025, 4.00 p.m. For more details kindly visit Bank of India
official website www.bankofindia.co.in under BOI>Impor tant
Links>Tender.
Welspun One gets
construction loan
worth ~2.3K crore
from Nabfid
Welspun One Logistics Parks
(Welspun One) on Sunday
announced the financial closure of its logistics park
project at Jawaharlal Nehru
Port Authority (JNPA) with a
construction financing of
~2,300 crore underwritten by
the National Bank for
Financing Infrastructure and
Development (Nabfid).
The JNPA logistics park,
spanning 55 acres, is Welspun
One’s largest logistics development in India. The logistics park is located within the
JNPA Special Economic
Zone in Navi Mumbai. The
grade A industrial and warehousing facility will cater to
e-commerce, 3PL, FMCG,
and manufacturing sectors.
The logistics park’s total
development potential is
over 3.6 million square feet.
Anshul Singhal, cofounder and managing director, Welspun One, said: “The
financial closure of our JNPA
project marks a pivotal step
in our journey to create
world-class logistics and
industrial infrastructure.”
Rajkiran Rai, managing
director of Nabfid said: “We
are delighted to partner with
Welspun One’s Logistics Park
in JNPA. The state-of-the-art
facilities such as this one are
a part of the government’s
plan to reduce logistics cost
to the global average of 8 per
cent of GDP, in order to
promote competitiveness of
Indian industry.” PRACHI PISAL
APPOINTMENTS
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1
NEW DELHI | MONDAY, 7 APRIL 2025
>
N US RECIPROCAL TARIFFS’ FALLOUT N
With crude off the
table, US nudges
India towards LNG
India may emerge as low-tariff hub for
US-bound consumer durable exports
Electronics makers begin talks with US importers; Dixon, Super Plastronics see opportunity
Mumbai, 6 April
Consumer durable firms in
India have begun early-stage
talks with US importers at a
time when the tariffs levied on
Indian products are lower
than those on competitors
such as China. While the discussions started some time
ago, many believe that the
Donald Trump administration’s tariff measures will help
Indian firms expand their
presence in the US market.
The US has imposed an
additional 34 per cent tariff on
China, a major exporter of
consumer electronics and
consumer durables, on top of
the 20 per cent introduced in
two rounds earlier this year,
bringing the total tariff on
China to 54 per cent.
Other major consumer
Importers signal willingness, but warn of drawn-out talks
SUBHAYAN CHAKRABORTY
New Delhi, 6 April
W
ith India making it
clear that the US doesn’t have enough spare
capacity
for
crude
oil,
Washington, DC, now wants
India to sign fixed-term liquefied natural gas (LNG) contracts
with American producers, multiple sources in the know said.
“The US currently doesn’t
have enough crude volumes
ready for offtake. The planned
rise in production will take some
time to arrive. We have communicated this. The discussion has
thus been on establishing term
contracts for LNG with (US) suppliers,” a petroleum and natural
gas ministry official said.
This dovetails with India’s
efforts to raise its overall
LNG imports, given that its
energy import basket is currently dominated by crude oil, he
said, indicating the government
welcomes talks between companies
on
both
sides.
However, such discussions have
historically been drawn out over
a long period with US companies, he stressed.
State-owned GAIL (India)
had, in December 2011, signed a
20-year sale and purchase agreement with US-based Cheniere
Energy Partners for the supply
of 3.5 million tonnes of LNG
annually, with deliveries commencing in 2017. Supplies began
flowing in from 2018.
According
to
the
International Energy Agency,
the gap between contracted
LNG supply and projected LNG
requirements is set to widen
markedly after 2028, leaving
India more exposed to the
volatility of the spot LNG market
unless additional LNG contracts
are secured in the coming years.
Meanwhile, in the April–
December period of 2024–25,
LNG imports stood at $11.6 billion, or 2.12 per cent of overall
merchandise imports. By comparison, crude oil imports were
nearly 10x higher at $109.3 billion, or 20 per cent of overall
imports.
The US and Qatar — the two
largest producers globally —
currently supply India with
LNG through multiple con-
US LNG GAINING GROUND IN INDIA
 LNG import from US ($ bn)
 Share of US LNG in total LNG imports (%)
2019-20
2020-21
6.86
0.66
14.08
1.10
IMAGING:AJAY MOHANTY
SHARLEEN D'SOUZA
IN FOR GAINS
 Dixon Technologies
has begun basic
discussions with US
importers, particularly
for television panels
 Super Plastronics plans
to explore the US market,
calling India one of the
cheapest TV
manufacturing bases
 Amber is preparing to
export air conditioner
motors and ACs to the US
television panels, washing
machines, air conditioners,
and other home appliances.
“We have already begun
basic dialogue with importers
for categories like television
panels. We are also exploring
other consumer durable categories as US importers see
India and Dixon Technologies
as a favourable option,” Atul
Lall, managing director at
Dixon Technologies (India),
told Business Standard.
Avneet Singh Marwah,
CEO of Super Plastronics, is
also of the opinion that India
now has an opportunity to
become a favourable destination for electronics and consumer durables exports and
the current tariffs will see a
sudden shift to India. “The US
will look at importing televi-
 Early-stage talks
follow the US’ move to
raise tariffs on countries
like China, Vietnam,
and Thailand
durables and electronics manufacturers in Asia include
Vietnam and Thailand. The
US has imposed a 46 per cent
tariff on Vietnam and 36 per
cent on Thailand.
Consequently, India has
become a favourable destination for exports due to lower
tariffs, which now stands at 26
per cent. The US will be looking to import television sets,
sion
panels,
washing
machines, and other categories. We will start exploring
the US as an option and India
will be one of the cheapest television manufacturers in the
world compared to other Asian
countries,” Singh said, adding
that the company is looking for
some clarity on tariffs.
Sudhir Goyal, chief financial officer at Amber
Enterprises India, a company
looking to export air conditioner motors and air conditioners to the US, said that the
company has been preparing
to export to the US for a while.
“The tariffs will give Indian
suppliers a leg up compared
to other countries. This will
help US importers to move
orders to India at a faster
speed. There is a big delta in
costs with competing countries,” Goyal said.
2021-22
1.90
14.12
2022-23
1.88
11.02
BUSINESS STANDARD POLL
10.50
~ outlook steady amid tariff turmoil
2023-24
1.41
2.29
2024-25*
19.10
*Figures for April-December; Source:Commerce Department
tracts. The third-largest producer, Australia, mostly supplies China. About half of
India’s local gas demand is met
through imports. On the other
hand, while gas meets only 6.7
per cent of India’s energy
needs, the Centre has been
planning to raise this figure
substantially to reduce dependence on petroleum.
US LNG shipments are
expected to double by the end
of this decade, driven by Trump
administration policies, including the reversal of a temporary
pause on pending decisions
regarding LNG exports to nonfree trade agreement nations.
This pause had been imposed
by the previous Joe Biden
administration in January 2024.
Data from the US Energy
Information Administration
(EIA) show LNG shipments to
India began rising rapidly from
early 2020 as the pandemic hit.
Monthly traded volumes rose to
a high of 28,259 million cubic
feet (mcf) in May 2021 before
falling. Volumes stood at 13,698
mcf as of October 2023, after
which the EIA discontinued
publishing monthly data.
Finding the price
Finding the right price is also a
challenge, an official with a public sector oil and gas major said.
“Globally, term contracts are
available only periodically. But
a large volume of gas is expected
to reach the markets from this
year onwards. It will be incumbent on the importing entity to
factor in changes in prices over
time to ensure the contract
doesn’t end up being more
expensive than necessary,” the
official said.
India’s demand for spot cargoes of LNG is expected to
decline as importers shift
towards medium- and longterm contracts over the next two
years, as a result of multiple
deals that come into effect from
April onwards, S&P Global
Commodity Insights said last
month. But the higher reliance
on term contracts could be poorly timed, as the market expects
a flush of new supply that could
drive spot prices lower, leaving
Indian buyers exposed to more
expensive contracted LNG, it
pointed out in a note.
Historically, LNG prices were
linked to oil prices via long-term
contracts. But in the past 10–15
years, especially with the rise of
spot LNG markets like the
Japan/Korea Marker in Asia,
prices have become more
volatile. LNG prices are highly
seasonal due to heating demand
in Europe and summer demand
in Japan and China.
Experts peg rupee at 85.50 against dollar by June; RBI expected to boost dollar purchases
ANJALI KUMARI
CURRENCY TRAIL
Mumbai, 6 April
With Donald Trump’s reciprocal tariff policy raising concerns over US growth
prospects and weakening the
dollar, the rupee is expected
to remain stable over the next
few months, allowing the
Indian central bank to shore
up its foreign exchange (forex)
reserves.
After touching record lows
multiple times between
December and February, the
Indian unit made a sharp
recovery
from
March
onwards, gaining 0.44 per cent
so far in 2025 against the dollar.
According to the median
estimate from a Business
Standard poll, the rupee is
expected to trade at 85.5 per
dollar by June-end, and 85.75
by September-end. The
Indian unit closed at 85.24 per
dollar on Friday, compared to
its previous close of 85.44.
“A much more muted pace
of rupee depreciation is likely,
as dollar weakness is expected
to persist amid weakening US
growth. The reciprocal tariffs
announced by President
Trump were far steeper than
After hitting record lows several times between
December and February, ~ has recovered
since March, gaining 0.44% against the
dollar in 2025 so far
(~ vs $)
Financial institutions
Jun-end
ICICI Bank
84.50-86.50
IDFC First Bank
85.50
Karur Vysya Bank
86.20
Shinhan Bank
84.50 - 86.50
CR Forex
84.70-85.20
Mecklai Financial Services
86.20
Bank of Baroda
85.50-86.50
HDFC Bank
84.50-85.60
STCI Primary Dealership
84.60- 86
Finrex Treasury Advisors
86.00
Median
85.5
expected and not tied to tariff
differentials,” said Gaura Sen
Gupta, chief economist at
IDFC First Bank.
“The impact on global
growth and US GDP is likely
to be more pronounced, given
the broad-based nature of the
tariffs. With global conditions
remaining volatile, we expect
flows to emerging markets to
stay muted. Meanwhile, the
Sep-end
85.50-87.50
86.00
87
85.40- 87.95
83.50-84.00
87.50
85.50-87
85-86
NA
85
85.75
Reserve Bank of India (RBI) is
likely to absorb any improvement in capital inflows to
build its forex reserves, given
its large negative forward
book,” she added.
On Friday, the rupee
strengthened past the 85-perdollar mark to touch 84.95,
tracking a drop in the dollar
index.
Markets had expected the
RBI to step in with
dollar purchases in
the forex market,
but its absence surprised traders. The
rupee crossed the
85-per-dollar mark
for the first time this
calendar year and for
the first time since
December 18, 2024.
The Indian currency had
depreciated 2.42 per cent
against the greenback in the
previous financial year.
The RBI’s net short dollar
position in the forward market
stood at $77.5 billion as of endJanuary, according to central
bank data. A portion of this
was due to mature by March,
while the remaining $30.6 billion — spread across sixmonth and one-year swaps —
is expected to begin maturing
in April.
India currently faces a relatively softer tax rate of 26 per
cent compared to regional
peers such as China, Vietnam,
and Thailand — an advantage
that has helped buoy up sentiment in the currency market. While the RBI has not
been intervening aggressively
for now, markets expect it to
resume dollar accumulation
soon.
“There’s a lot of uncertainty right now, with risk aversion
taking hold. Given Trump’s
ego and the ongoing trade
wars, it’s very difficult to predict rates,” said Anil Kumar
Bhansali, head of treasury and
executive director at Finrex
Treasury Advisors LLP.
“However, assuming calm
returns in the next three to six
months, India — being one of
the lowest tariff countries in
Asia, in talks with the US on
tariffs, and among the fastestgrowing economies — could
see the rupee appreciate.
Trump doesn’t like currency
manipulation, after all.”
In March, the rupee
regained strength against the
dollar, buoyed up by fresh
inflows after hitting new lows
earlier in the year. The RBI
intervened in the forex market to curb excess volatility
and conducted buy/sell swap
auctions, injecting rupee liquidity into the banking system and supporting the currency
amid
global
uncertainty. As a result, the
rupee strengthened through
March, recovering from nearly 88 per dollar and regaining
all its calendar-year losses.
Indian metal firms bank Exporters must be ready to prove origin of goods to US Customs
on domestic demand
Indian metal companies are
gearing up for significant
expansions in the current
financial year, focusing on
growing domestic demand,
notwithstanding global trade
headwinds.
While the United States
has announced certain tariffs
on metals, companies like
Vedanta, JSW Steel,
Hindustan Zinc, and NALCO
are also betting on India’s
strong demand, the global
race for critical minerals, and
strategic geographic
diversification to drive
growth, analysts said.
Industry experts predict
aluminium demand will
double every five years,
supported by the Indian
government’s allocation of
~11.21 trillion for infra
development in the 2025-26
Budget.
As other countries
face higher tariffs, firms
may look to diversify
production into India,
creating a positive spillover
effect on domestic demand.
Companies like Vedanta,
Hindustan Zinc, and others
with a strong domestic focus
would thus be relatively
insulated.
“The sharp fall in metal
stocks across the board was a
knee-jerk reaction. Going
forward, the market will
favour companies that derive
the bulk of their revenues
from domestic operations.
We thus expect stocks of
these companies to do better
going forward,” said an
analyst at a leading domestic
brokerage.
PRESS TRUST INDIA
EXIM MATTERS
T N C RAJAGOPALAN
President Donald Trump of
the United States has imposed
‘reciprocal tariffs’ on imports
from various countries. With
this abandonment of the policy to impose the same tariffs
on imports from most countries, nearly all governments,
businesses, and economists
are busy examining the shortand medium-term implications of this change. The executives at the operating levels
are, however, grappling with a
different question — how the
US Customs will determine
that the imported goods originate from a particular country.
Rules of origin (RoO) are
used by most countries to
implement measures such as
anti-dumping duties and antisubsidy countervailing duties,
and also to determine whether
to charge normal or lower
duties based on where the
imported goods are produced.
They are also used for purposes
such as trade statistics, application of labelling and marking
requirements, and government procurement. RoO in
most countries are transparent
and administered in a consistent, uniform, impartial, and
reasonable manner.
RoO vary depending on
whether an importer claims a
preferential rate of duty on the
imported goods under any
free/preferential/regional
trade agreement. Where no
import duty concessions are
being claimed, a simple declaration or certificate by the
exporter on their invoice or a
non-preferential certificate of
origin (CoO) issued by an
authorised trade body like a
chamber of commerce is usually accepted by the Customs
in the importing country.
Normally, such declarations or
certificates are given quite
freely if the goods are available
from nature in the exporting
country or the goods are manufactured by the exporter
using inputs procured domestically. Where foreign-origin
inputs are used, the goods still
get the originating status if the
processes carried out in the
exporting country result in a
new commodity and exceed
certain specified basic operations like repacking, rela-
belling, simple assembly, dis- ing country.
assembly, etc.
US laws require the presenRoO for claiming lower tation of a preferential CoO
duty rates under trade agree- only for the clearance of
ments usually prescribe
imported goods at lower
minimum
value
duty rates under
addition in the
trade agreements.
exporting country
Most goods, barif foreign-origin
ring very few
materials
are
exceptions, used
used in making
to enter the US at
the goods. The
the normal duty
texts
of
the
rates applicable
rules differ under
for imports from
each trade agreeall countries, with
Rules of origin are
ment and they
or without a decused by countries
always form part
laration/certifito implement
of every trade
cate
of
the
measures like
agreement.
exporter or a nonanti-subsidy
Invariably, the
preferential CoO.
countervailing
rules require the
Since the last few
duties, antipresentation to
weeks, however,
dumping duties
the Customs in
US Customs have
the
importing
started asking for
country of a prefdetails of foreignerential CoO issued by a gov- origin inputs used for making
ernment agency in the export- the goods and their value.
FinMin to study EPFO, global models for UPS investment plan
Decision on investing Centre’s UPS
contribution to be finalised in 3–4 mths
ASIT RANJAN MISHRA
New Delhi, 6 April
The finance ministry will examine
global best practices and draw
insights from the Employees’
Provident Fund Organisation
(EPFO) investment experience
before finalising its strategy for
investing the government’s contribution under the Unified Pension
Scheme (UPS), which came into
effect on April 1.
“We are still deciding how the
government will invest its contribution. We will have some mechanism
for it. There will be an investment
committee. We will take three to four
months to finalise it. We are trying
to understand how other countries
do it. We will also be studying how
EPFO invests its money as it has long
experience in it,” a senior government official said. According to the
current pattern of investment notified by the labour ministry in April
2015, the EPFO can invest anywhere
between 5 per cent and 15 per cent
of its fresh accretions in the equity
market through the exchange-traded fund (ETF) route only.
Canada Pension Plan (CPP)
invests 40-50 per cent of its funds
in
equities,
while
Japan’s
THE FINE PRINT
 EPFO’s investment approach
and global practices
under review
 Employees must choose between
NPS and UPS by June 30; decision
will be final
 UPS came into effect on April 1;
approved in August last year
 UPS offers guaranteed pension:
50% of average basic pay over last 12
months (vs 10 months in OPS)
 Govt contribution raised
from 14% to 18.5% of basic pay
+ DA; employee share at 10%
 The scheme will benefit over
2.3 million central
government employees
Government Pension Investment
Fund allocates about 25 per cent to
equities, including domestic and
foreign markets.
 Minimum qualifying service raised
from 20 to 25 years (vs OPS)
 Pension under UPS starts at 60;
in OPS, it began immediately
post-retirement
The UPS was approved by the
central government in August last
year to provide a guaranteed pension to retirees with a minimum of
25 years of service.
The pension will be equivalent
to 50 per cent of their average
basic pay from the last 12 months
prior to retirement.
The government’s contribution
under UPS has been increased from
14 to 18.5 per cent of basic pay and
dearness allowance while employee
contribution will remain at 10 per
cent. The scheme is likely to benefit
over 2.3 million central government
employees. Existing and future
employees will also have the option
of joining the National Pension
Scheme (NPS) or UPS by June 30.
The choice, once exercised, will be
final. Provisions of the UPS would
also apply to past retirees of the NPS.
According to the government,
the expenditure for arrears
will be ~800 crore. The annual cost
increase will be around ~6,250 crore
in the first year.
The official said that till the gov-
Now, with country-specific
tariffs, the US Customs may
not be satisfied with a mere
declaration or certificate of the
exporter or a non-preferential
CoO and may ask for 'proof of
origin', as the Indian Customs
do for imports under trade
agreements. The executives at
the operating levels wonder
what documents the US
Customs will call for to establish the origin of the goods.
They apprehend the hold-up
of goods by the US Customs
for origin verification. It is
likely that the US Customs will
prescribe some additional
documentation to confirm the
origin of the goods. Till then,
Indian exporters should be
ready to furnish adequate documents to prove the origin of
the goods.
Email :
tncrajagopalan@gmail.com
ernment takes a decision on
how to invest its contribution, the
money will remain in the default
investment pattern split in equities
and bonds.
“Suppose, we decide after three
months that 50 per cent of the money should be invested in equities,
then we will allocate accordingly,”
the government official added.
According to the default option
under NPS, the maximum equity
exposure is capped at 50 per cent.
And, it gradually decreases every
year as the retirement of employees
approaches.
In March 2023, the Narendra
Modi government had set up a committee led by former finance secretary T V Somanathan to explore
ways to improve pension benefits
under NPS without reverting to the
non-contributory old pension system (OPS), which has been deemed
financially unsustainable.
ECONOMY & PUBLIC AFFAIRS 5
NEW DELHI | MONDAY, 7 APRIL 2025
<
.
IN BRIEF
FinMin set to implement
'One State-One RRB' soon
RUCHIKA CHITRAVANSHI
per cent year-on-year (Y-o-Y) increase
in capex. The Centre’s capex for
February 2025 contracted by 35 per cent
The government is confident of
Y-o-Y with the overall spend for
surpassing the revised estithe April-February FY25
mates (RE) for capital
period at 79.7 per cent of the
expenditure (capex) of
RE. This is against 85 per
~10.18 trillion for FY25
cent last year, according to
based on the advance
the latest CGA data.
numbers, two top govThe pace of capex in
ernment officials said.
the first half of the current
“The numbers we
financial year had suffered
have received so far, even
on account of elections
though not for the full
and the model code of
To meet the
conduct.
financial year, indicate
RE would require a
The government had
that we are likely to
44% Y-o-Y increase
revised downwards its
exceed the revised target
in capex
capex estimate by about
of capex,” one of the gov~93,000 crore compared to
ernment officials said.
the Budget Estimate (BE)
The data released by
the Controller General of Accounts for FY25.
The capex allocation for FY26 has
(CGA) for April-February FY25 showed
that the government is falling short of seen an increase of less than 1 per cent.
Defending the government position
meeting its revised capex target by over
on capital expenditure, Finance
~2 trillion for the full financial year.
To meet the RE would require a 44 Minister Nirmala Sitharaman had
New Delhi, 6 April
The finance ministry will soon implement the ‘One State-One RRB’
plan to achieve operational efficiency and cost rationalisation and
consolidation of 43 regional rural banks (RRBs) to 28. Most of the work
related to the issue of consolidation have been completed and the
fourth round would happen soon, according to sources.As per the
roadmap prepared by the finance ministry, 15 RRBs operating in
various states would be merged.
PTI
Farmer leader Dallewal ends
hunger strike after 130 days
Punjab farmer leader Jagjit Singh Dallewal on Sunday ended his
hunger strike, which he had started on November 26 last year, to
press for various demands of agitating farmers including a legal
guarantee on the minimum support price for crops.The
announcement came a day after Union Agriculture Minister Shivraj
Singh Chouhan and Union Minister of State for Railways Ravneet
Singh Bittu appealed to him to end his fast-unto-death.Dallewal
announced that he was ending his indefinite fast at a 'Kisan
Mahapanchayat' organised at the grain market in Sirhind in
Fatehgarh Sahib district of Punjab. At the same time, he asserted that
their fight for the legal guarantee on MSP for crops will continue. PTI
Weekend
update
India, Sri Lanka sign 5-year
defence cooperation pact
India and Sri Lanka have expanded their defence ties with a
new Memorandum of Understanding (MoU) signed on
Saturday during Prime Minister Narendra Modi’s visit to the
island nation. The MoU would remain in force for five years,
Sri Lanka’s top defence official Sampath Thuiyakontha said.
“India annually trains around 750 Sri Lankan military
personnel. This defence partnership continues to be an
invaluable asset,” Thuiyakontha said. He added that the
decision to formalise the MoU was reached during the 2023
defence dialogue , with the Sri Lankan cabinet approving
PTI
the agreement in January this year.
Tata Capital files for $2-bn
IPO via confidential route
Tata Group’s financial services arm, Tata Capital, has filed
draft papers with markets regulator Securities and
Exchange Board of India (Sebi) for a $2-billion initial public
offering (IPO) through the confidential pre-filing route. At
this size, the company is expected to be valued at around
$11 billion, according to sources. In a stock exchange filing,
Tata Capital said, “The firm has filed the pre-filed draft red
herring prospectus on April 4, 2025, under the Sebi
Regulations, 2018, with Sebi, BSE, and NSE in connection
with its IPO of equity shares of face value of ~10 each.” PTI
>
MPC meet to FY25 capex may surpass RE of ~10.18 trn
begin amid
rate cut buzz
ANJALI KUMARI
Mumbai, 6 April
T
he meeting of the sixmember monetary policy committee (MPC) of
the Reserve Bank of India (RBI)
will start on Monday — the first
in the current financial year —
amid expectations of another 25
basis points (bps) cut in the policy repo rate though there are
outside chances of a higher rate
reduction.
Also, focus will be on liquidity-related measures to boost
transmission of policy rates to
bank lending and deposit rates.
The central bank had a series
of meetings with bankers in the
run up to the policy, for feedback on the liquidity framework. A revised liquidity framework is also on cards.
The April MPC meeting is in
the backdrop of the reciprocal
tariffs announced by US
President Donald Trump last
week, which is expected to
impact domestic growth.
It is to be seen if the central
bank now prioritises growth
over inflation — which is
expected to print below the target of 4 per cent for the next few
months — by changing the
stance to accommodative from
neutral.
“We are tracking Q4 FY25
real GDP growth at 6.7 per cent
year-on-year (Y-o-Y), implying
average GDP growth of 6.2 per
cent for FY25. If realised, this
would be 30 bps lower than the
Ministry of Statistics and
Programme Implementation
(MoSPI) and RBI's 6.5 per cent
Y-o-Y forecast,” economists at
Barclays said in a note.
“As the RBI MPC is faced
with inflation and growth outcomes that are below their estimated trajectory, it opens policy
space to deliver a second successive policy repo rate cut…
given the meaningful under-
Any move on change in stance
will be watched keenly
shoot versus estimated CPI
inflation, there is a strong case
for the MPC to deliver a nonstandard 35 bps cut,” the note
said.
Barclays base case for an
April rate cut is 25 bps.
After infusing close to ~8 trillion of durable liquidity
between January and March,
the central bank, in a surprise
move, announced a ~80,000crore bond purchase programme through open market
operations last week.
Sovereign bond yields
plunged to their lowest levels in
three years after the announcement. The move was aimed at
providing adequate liquidity to
the banking system to ensure
transmission of policy rates, just
before a much-anticipated
interest rate cut.
“We also expect RBI to keep
the liquidity taps open, and the
central bank has used its variable rate repo operations, bond
purchases, and forward swaps
to augment liquidity conditions,” Bank of America said
in a report on the last week of
March. The six-member rate
setting panel reduced the repo
rate by 25 bps in February – a
rate cut which came after
almost five years. All members
of the MPC unanimously voted
for a rate reduction.
recently told Parliament that the government had not slowed down its capex
push.
She had said, “Capital expenditure
has not been cut at all. From ~11.11 trillion in the FY25 Budget, capex allocation has gone up to ~11.21 trillion in
FY26. Capital assistance to states has
also gone up proportionately.”
Experts feel that even with focus on
fiscal consolidation, the government
has to continue pushing capex, which
has multiplier effects on the economy,
in order to achieve the next leg of gross
domestic product (GDP) growth.
“If the government’s investment
expenditure falls short of the revised
estimates, which were themselves significantly lower than the budget estimates of ~11.1 trillion, achieving the
implied fourth quarter GDP growth of
7.6 per cent (6.5 per cent growth in FY25)
may become challenging,” D K
Srivastava, chief policy advisor, EY
India said in the March edition of EY
Economy Watch.
volumes
New retail inflation Securitisation
see a sequential slump
series to include
rural housing prices
ABHIJIT LELE
Mumbai, 6 April
SHIVA RAJORA
New Delhi , 6 April
The new consumer price
index series will measure housing
inflation in rural areas, in tune
with shifting consumption patterns
and emergence of rental markets
beyond urban centres, official
sources said.
At present, housing is only
measured as a part of urban inflation because there are only a
minuscule number of rented
homes in rural areas.
“Over the past few years, it has
been observed in consumption surveys that people are spending on
house rent in rural areas as well.
While people traditionally spent on
housing in urban areas only, a
change in preference and increased
mobility for work and other reasons
means that the housing market is
also flourishing in rural areas,” one
of the sources said.
The new CPI series with an
updated base year is slated to come
into effect in February 2026, along
with a new series for other macro
indicators like gross domestic product and index of industrial production. The statistics ministry will
be using 2024 as the base year for
the upcoming CPI series. The
Household
Consumption
Expenditure Survey (HCES) 202223 released last year is being used
to prepare this new series.
HCES 2022-23 showed that the
average monthly per capita expenditure (MPCE) on “housing” in
rural areas increased nearly five
times to ~30 from ~7 spent during
the previous HCES which was conducted in 2011-12. As a share of total
expenditure, its share doubled to
0.8 per cent from 0.4 per cent during the same period.
In contrast, the average MPCE
on housing in urban areas stood at
~423 in 2022-23 from ~160 in 201112. As a share of total expenditure,
it stood at 6.6 per cent in 2022-23.
Securitisation – sale of loans to investors – by
lenders, including banks and non-banking
financial companies (NBFCs), crossed ~50,000
crore during the fourth quarter ended March
2025 (Q4F25). This is a tad higher than ~48,000
crore during the same period of FY24.
However, sequentially, securitisation volumes declined substantially from about
~69,000 crore each in the second and third
quarters of FY25, according to rating agency
ICRA. The sequential decline reflected part of
an improvement in liquidity conditions.
A few players, including private banks, who
securitised higher volumes in Q2 & Q3, were
less active in the final quarter of the financial
year, analysts and bankers said.
Securitisation involves pooling similar
assets, such as mortgages, auto loans, or credit
card debt, and then repackaging them into
securities like pass through certificates (PTCs).
The lenders, especially banks, buy a pool of
loans to meet priority sector lending norms.
ICRA data showed that securitisation volumes were about ~2.35 trillion for financial year
FY25, up from ~1.9 trillion in FY24.
Sachin Joglekar, group co-head of structured finance ratings, ICRA, said there was sluggishness in loan disbursements among NBFCs
in microfinance and other unsecured asset
classes in the fourth quarter.
MCA proposes tweaks to rules
related to fast-track mergers
Internal restructuring to ensure seamless solutions: Yes Bank
The Ministry of Corporate Affairs (MCA) has proposed
widening the scope of the present rules for mergers and
amalgamations to include more unlisted companies, and
subsidiaries of companies which are not just wholly owned,
under the fast-track mechanism. The fast-track mechanism
for mergers requires no involvement of the National
Company Law Tribunal and can be availed by small
companies, startups, and for mergers between holding
companies and their wholly owned subsidiaries. The MCA
has proposed that unlisted firms that have reasonable debt
exposure of less than ~50 crore and have not defaulted on
repayment can go through the fast track mechanism under
BS REPORTER
Section 233 of the Companies Act.
SUBRATA PANDA
Mumbai, 6 April
Private sector lender Yes Bank said that the
organisational streamlining underway now is
aimed at harnessing synergies across all functions to optimise efficiencies and enhance customer experience.
The internal restructuring is a strategic initiative designed to ensure seamless and consistent solutions at every touchpoint, aimed at
strengthening the bank’s position as a customer-centric institution, it said.
Recent media reports suggested Yes Bank
has revamped teams across retail, corporate, part of our organisational streamlining proand commercial banking as part of its restruc- cess, we are harnessing synergies across all
turing exercise, and has laid off four senior functions to optimise efficiencies and enhance
employees with immediate effect.
customer experience. This restrucThe four senior employees who
turing is a strategic step to ensure
Four senior
were asked to step down include
seamless and consistent solutions at
employees of
Akshay Sapru, head of affluent and
every touchpoint, aligning with our
the lender were
private banking, Dhaval Shah,
core values of agility and innovareportedly
head of small- and medium-sized
tion.”
asked to step
enterprises banking, Sanjiv Roy,
Additionally, the spokesperson
down recently
head of fee business, and Pankaj
said that the bank’s focus is driving
Sharma, chief strategy officer.
profitable growth while delivering
In response to Business Standard’s queries, unparalleled service and convenience to our
an official spokesperson of the bank said, “As customers. “As Yes Bank embarks on the next
phase of its transformational journey, we
remain committed to strengthening our position as a customer-centric bank”, the spokesperson said further. Yes Bank’s shares fell 4.18
per cent on Friday to close at ~17.2 on the BSE,
after the bank disclosed in its January-March
quarter (Q4FY25) update that its advances grew
8.2 per cent year-on-year (Y-o-Y) and 0.7 per
cent sequentially to ~2.46 trillion while its
deposits grew 6.8 per cent Y-o-Y and 2.6 per
cent sequentially to ~2.84 trillion.
The current account savings account ratio
stood at 34.3 per cent, an improvement of 12
basis points from the preceding quarter.
FROM PAGE 1
CEOs say will invest No ‘one-size-fits-all’ as exporters brace for fragmented pricing
more in India: BS poll
“The Indian government should review the duty on
American goods because our imports are much less.
Except for agri goods, there should be no problem,”
said the CEO of a large group.
Another CEO said India should negotiate hard with
the US and take this as an opportunity.
India, say CEOs, should work on negotiations with
the US by establishing bilateral trade agreements,
including buying more US goods.
Earlier, M&M Chairman
Anand Mahindra had said
India should have a measured reaction to the tariff
imposition and respond in
a way that does not jeopardise India’s long-term
strategic interests.
“We must build scenarios
of the policies we should rapidly
adopt
to leverage the situation and emerge
as the first and most reliable economic partner of countries around the world,” Mahindra said on a social
media platform.
According to the survey, a majority of Indian CEOs
(73.33 per cent) are not making changes to their
strategies to meet the challenge of higher tariffs. Twenty
per cent of them, however, are negotiating a new supply
chain, while the rest are looking for new export markets.
“We see more competition in the Latin American
and African markets, as several players (including larger
ones) will try to diversify from the US and, as a
result, competition will increase in the African and
Latin American markets, where players like us have
been operating,” said the CEO of a mid-sized pharma
company.
While 40 per cent of respondents said they foresaw
long-term impact from the tariff, a similar number said
they were unsure.
Almost all CEOs said they would invest more in
India. While 33.33 per cent said they would invest overseas, an equal number said they were unsure.
(Dev Chatterjee with Ishita Ayan Dutt,
Roshni Shekhar, Sohini Das, Sharleen D'Souza, Abhishek
Kumar,
Puja
Das,
Prachi
Pisal
and
Udisha Srivastav)
“There’s uncertainty at the moment. Buyers
are calculating their liquidity position in
view of the tariff hike. They will also need
to assess whether their buying volume will
remain the same or be reduced. This assessment will have to be made across all countries,” Sahai said.
Overall, every country’s exports to the
US will slow down as a result of this drastic
step, dampening demand for at least the
next few weeks.
Chandrima Chatterjee, secretary general
of the Confederation of Indian Textile
Industry, said some buyers were asking for
discounts, although the full picture would
emerge in a couple of weeks.
Chatterjee further noted that India’s
neighbouring rivals, such as Vietnam, had
already offered zero-duty access to the US.
If accepted, it would impact India’s competitiveness in the textile sector. The US has
announced a 46 per cent reciprocal tariff
on Vietnam. Two Gujarat-based midsized
exporters said that no negotiations had
begun with buyers yet, as clarity is still to
emerge on the implications.
“The situation is quite volatile. So, as of
now, no negotiations on price have begun.
As manufacturers and exporters, we don’t
yet know how much tariff will be levied,
how much we can absorb, and to what
extent we can pass it on. Therefore, it’s too
early for negotiations,” said the promoter
of one firm.
He added that they were keeping a close
watch on raw material prices.
“China is likely to keep prices competitive, as it is facing a 34 per cent tariff. With
its massive capacities, it needs markets. So,
raw material prices are likely to remain competitive,” he said.
The US has exempted imports of pharmaceuticals, energy, and certain minerals
from reciprocal tariffs.
However, Trump has said he plans to
impose additional tariffs on pharmaceuticals. The quantum and timelines are not yet
known.
Bhavin Mehta, vice-chairman of the
Pharmaceuticals Export Promotion Council
of India, echoed this view, saying raw material prices might stay competitive due to
China’s excess capacities.
“In the past two to three years, China has
built huge active pharmaceutical ingredient
capacities, and with the US market becoming a tough entry, it would need to sell its
production somewhere. Hence, prices may
remain competitive,” he explained.
Exporters say each company might take
a different approach. “Everyone has a different strategy for sourcing and will price
accordingly. So, there’s unlikely to be any
uniform negotiation — it will be on a caseby-case basis,” said a veteran executive who
previously headed a large pharmaceutical
firm in Mumbai.
Tiruppur, which contributes to around
55 per cent of India’s total knitwear exports,
has already started seeing demands from
customers in the US for discounts.
Manufacturers indicate that as they operate
with a squeezed margin of 5-6 per cent, it
will be difficult to give huge discounts to
match the Trump tariff, which may result
in the global majors passing on the burden
to customers.
“This tariff is coming at a time when the
industry is performing well. We may be able
to provide a maximum of around 2 per cent
discount,” said K M Subramanian, president
of the Tiruppur Exporters’ Association.
The region saw exports worth ~33,600
crore in FY24. Global brands that source
from Tiruppur belt include GAP, H&M,
Tommy Hilfiger, Carter’s, and Walmart,
among others.
IT firms to focus on cost efficacy
Jones said large enterprises would continue to optimise costs
through large deal activity.
“That is the reason we saw so many mega deals last year,
because companies were looking to fundamentally change
their cost structures through technology and transformational modernisation, which IT services firms excel at. In
exchange, they are signing up for longer-term deals, increasing the total contract value.”
> BS SUDOKU
#4548
FY26 growth forecast revision hinges on domestic demand
“Our growth forecast is also heavily reliant on domestic demand
conditions improving materially. Both monetary and fiscal accommodation would need to be frontloaded to drive this. In the absence
of a strong domestic demand recovery (due to weather-related disruptions with risk of heatwaves emerging, increased financial market volatility, inflation spikes, etc) or a more severe downturn in
the global economy (full-blown trade war with retaliation from
other countries), we would need to revise down our growth estimates for FY26 significantly,” she added.
The Ministry of Finance’s latest Monthly Economic Review —
released before Trump’s April 2 reciprocal tariff announcement —
said geopolitical tensions, increasing uncertainty around trade policies, volatility in international commodity prices, and the financial
market posed major risks to the outlook for growth.
“However, if the private sector were to invest in the economy,
banking on the resilience of the Indian economy and its steady
growth outlook, it would overpower the risks to the growth outlook
considerably,” it said.
The report said the proposed changes in the personal incometax structure were expected to improve the disposable incomes of
the middle class and their consumption.
“The 25-bp policy rate cut in February, as part of a more accommodative monetary policy and enhanced liquidity provisions, can
also bolster the growth momentum. The Union Budget’s focus on
longer-term development drivers and reforms, anchored around
the ambition of Viksit Bharat, adds to the confidence in
domestic economic resilience amid significant global uncertainties,” it added.
SOLUTION TO #4547
Hard:

Solution tomorrow
HOW TO PLAY
Fill in the grid so
that every row, every
column and every
3x3 box contains
the digits 1 to 9
6 WORLD
NEW DELHI | MONDAY, 7 APRIL 2025
>
N US RECIPROCAL TARIFFS’ FALLOUT N
50 countries reach ‘Hands Off!’ protests spread across
out to White House US, Europe to oppose Trump agenda
for trade talks
Protesters rallied around the US
against President Donald Trump
and Elon Musk, seeking to defend
the country from an
administration they say threatens
basic civil rights and calling for a
halt in efforts to downsize the
government. More than 1,200
‘Hands Off!’ demonstrations were
planned in all 50 states, the
Associated Press reported.
Organisers included civil rights
groups, labour unions, LGBTQ
advocates, and veteran groups.
Also, hundreds of people protested
in European cities against Trump
and Musk, following a bruising
week for financial markets after
Trump unveiled sweeping
global reciprocal tariffs.
Vietnam, Taiwan offer zero
tariffs on US goods; Bessent
allays recession fears
AGENCIES
6 April
M
ore than 50 countries have contacted
the White House in a scramble to open
trade talks after US President Donald
Trump announced sweeping reciprocal tariffs
last week that have roiled global markets,
sparked diplomatic outreach, and prompted
fears of a looming recession.
Top officials in the Trump administration
moved quickly over the weekend to defend the
controversial decision, which introduces acrossthe-board tariffs of 10 per cent on all US imports
and targeted duties of up to 50 per cent on goods
from nearly 60 countries. The new measures,
which came into effect Saturday, are the most
aggressive import levies imposed by the US in
over a century.
“We are repositioning the US in the global
economy,” said US Treasury Secretary Scott
Bessent on NBC’s Meet the Press. Rejecting concerns that the tariffs would tip the economy into
a downturn, Bessent insisted, “I see no reason
why we have to price in a recession.” He
added that any negotiations with affected countries would take time and be based on “believable” offers.
But financial markets have already begun
pricing in the pain. US equities shed $5 trillion
in value in just two trading days following the
announcement, the worst drop since the onset
of the Covid-19 crises. Economists at JP Morgan
have revised their outlook, now forecasting a US
recession within the year.
National Economic Council Director Kevin
Hassett also attempted to soothe markets,
stating the tariffs were not intended to manipulate the Federal Reserve or crash stock prices,
despite Trump’s reposting of a video that implied
as much. “There will be no political coercion of
the Fed,” Hassett said.
Hassett told ABC News that Trump’s tariffs
had so far driven “more than 50” countries to
contact the White House to begin trade talks.
Taiwan’s President Lai Ching-te on Sunday
offered zero tariffs as the basis for talks with the
US, pledging to remove trade barriers rather than
imposing reciprocal measures and saying
Taiwanese companies will raise their
US investments.
Vietnam has taken perhaps the most conciliatory stance. In a letter sent to President Trump
on April 5, Vietnamese Communist Party chief
To Lam offered to eliminate all tariffs on US
imports in exchange for a delay or reversal of
the 46 per cent tariff Washington imposed on
Vietnamese goods. The letter, seen by
Bloomberg, also asked for at least a 45-day
postponement of the measures set to take effect
on April 9.
Vietnam’s overture comes as the country has
emerged as a major manufacturing hub and
WE COULD SEE FROM THE JOB NUMBER,
WHICH WAS WELL ABOVE EXPECTATIONS,
THAT WE ARE MOVING FORWARD. SO I SEE
NO REASON WHY WE HAVE TO PRICE IN
A RECESSION”
1
AGENCIES
SCOTT BESSENT, US TREASURY SECRETARY
Starmer vows steps to
bolster UK economy
UK Prime Minister Keir Starmer said he’ll announce
measures this week to support Britain’s economy and
businesses amid the threat posed by Donald Trump’s
tariffs. Writing in The Telegraph, Starmer said, “The
world as we knew it has gone. We must rise to meet
the moment.” The US president last week announced
sweeping global tariffs, including a 10 per cent levy on
British goods, despite a weeks-long push for an
economy deal by the UK government. Measures
could be unveiled as early as this week may include
emergency reforms.
2
3
Demonstrators take part in a ‘Hands Off!’ protest against US President Donald Trump and his advisor Elon Musk in Los Angeles (1), in Portsmouth (2), near
Washington Monument (3), and at Trafalgar Square in London (4) over the weekend
PHOTO: AP/PTI, REUTERS
JLR may look to clear US inventory fast
SOHINI DAS
MAJOR MARKET
Mumbai, 6 April
BLOOMBERG
alternative to China, with deepening economic
ties to the United States. Trump acknowledged
the outreach in a Truth Social post following a
call with Lam.
Meanwhile, Malaysia has announced it will
lead a regional diplomatic push through Asean
to address the tariffs. Malaysian Prime Minister
Anwar Ibrahim said in a video address on
Sunday that the country, as Asean’s current
chair, will seek to coordinate a unified response
to maintain “open and resilient supply chains”.
Beyond Asia, long-time US allies are also
grappling with the impact. Israeli Prime Minister
Benjamin Netanyahu is expected to meet Trump
in Washington this week after Israeli exports
were hit with a 17 per cent US tariff. “I hope
President Trump will ease the burden,”
Netanyahu said on Sunday as he concluded a
visit to Hungary and departed for Washington.
Despite criticism and market volatility, the
Trump administration appears in no mood to
pull back. Officials believe that the shock to the
system will force countries to revise trade policies that they argue have long disadvantaged
the United States.
Tata Motors’ luxury arm Jaguar Land
Rover (JLR), which has announced a
pause on shipments to the United
States, is expected to clear its current
inventory in the market sooner than
anticipated, analysts believe.
JLR is estimated to have between
one and two months’ worth of inventory in the US, according to a Mumbaibased analyst who spoke on condition
of anonymity. Another analyst noted
that with the company halting
exports, this stock could deplete more
quickly. Typically, it takes at least twothree weeks for shipments to reach
the US from the UK and other parts of
Europe.
“The USA is an important market
for JLR’s luxury brands,” the company
said in a statement on Saturday. “As
we work to address the new trading
terms with our business partners, we
are enacting our planned short-term
actions including a shipment pause
in April, as we develop our mid- to
longer-term plans.”
Earlier, on April 2, JLR had stated
‘0 to 1939 in 3 secs’: Why anti-Musk
satire is flourishing in Britain
MICHAEL D SHEAR
London, 6 April
On the side of an East London bus
stop, one of them shows Elon Musk,
the world’s richest man, emerging
from a Tesla’s roof with his hand
pointing upward in a straight-armed
salute. “Goes from 0 to 1939 in 3
seconds”, the ad reads. “Tesla.
The Swasticar”.
Another mock ad shows Musk and
US President Trump in front of a red
Tesla with the words: “Now With
White Power Steering”. In North
London, a fake movie billboard blares:
“The Fast and the Führer”, with a
picture of Musk saluting beside a
Tesla with a DOGE licence plate, a
reference to the budget-slashing
federal agency he currently leads on
behalf of Trump. “Parental
Guidance”, warns the billboard, put
up by a group calling itself Overthrow
Musk. “Tesla’s CEO is a Far-Right
activist. Don’t give him your money”.
Across the British capital and in
4
Musk hopes for
zero tariffs with
EU someday
Elon Musk told Italy League
leader Matteo Salvini on Saturday
that he hoped in the future the
US and Europe could create “a
very close, stronger partnership”
and reach a “zero-tariff zone”.
Musk spoke to Salvini in a video
conference during the League’s
congress in Florence. Salvini is
the leader of the far-right, antimigrant League party and vicepremier of the Italian
conservative government led by
Premier Giorgia Meloni. REUTERS
several European cities, Musk’s
signature business has become the
target of the same kind of political
anger that has fuelled vandalism of
Tesla cars in the US and sometimes
n In FY24, JLR sold about 430,000
vehicles globally
n US market accounted for 23% of its
revenue, 26% of wholesale volumes
n This share climbed to 33% in nine
months ended December 31, 2024
that its luxury brands have a “global
appeal” and that its business remains
“resilient”, being accustomed to evolving market dynamics. “Our priorities
are now delivering for our clients
around the world and addressing
these new US trading terms,” the company said.
For the year ended March 2024,
JLR sold approximately 430,000
vehicles globally. The US market
accounted for 23 per cent of its revenue and 26 per cent of wholesale volumes during that financial year. That
share climbed to 33 per cent in the
nine months to December 31, 2024.
Currently, JLR exports vehicles to
the US primarily from its plants in
“Takedown Tesla”. “Nobody who is
that rich and powerful has behaved
that outrageously”.
In Europe, Musk is not just a
faraway example of American wealth
and power. Over the last year, he has
become a frequent political meddler,
often weighing in on behalf of FarRight causes on X, his social media
platform, where he has 218 million
followers. In Britain, Musk is known
for sharing misinformation about a
child rape scandal and calling for
Prime Minister Keir Starmer to be
jailed. Theodora Sutcliffe, a London
resident who helped organise Tesla
Takedown, said none of the
people she works with are
participating in
violence.
Instead, they
have sought to find
other ways to capture
public attention.
violent protests at his dealerships.
There have been some instances of
unruly protests and vandalism in
Europe. But much of the anti-Musk
sentiment has taken the form of
political satire, of the kind that has
flourished in Britain since at least the
18th century.
Just outside Berlin, a group called
the Center for Political Beauty used
high-power lights to project the
word “Heil” onto the side of a
Tesla factory so that it read
“Heil Tesla”, along with a
picture of Musk saluting
during a speech in
Washington. In Italy, street art
depicts Elon Musk taking off a
mask to show Adolf Hitler’s face
underneath. The words “Elon
Mask” appear above the picture.
“There’s never been a target
exactly like this,” said John
Gorenfeld, a software
engineer who helped
start a London-based
group called
©2025 The New York
Times News Service
Solihull and Wolverhampton in the
UK, as well as from a facility in
Slovakia. Given that US automobile
tariffs are set at a flat 25 per cent, the
location of production is unlikely to
influence pricing.
The company has also indicated
plans to establish a manufacturing
facility in India in the medium term.
“With no manufacturing facility in
the US, all JLR vehicles will be subject
to tariffs, which could impact pricing
and profitability,” said Mrunmayee
Joglekar, auto and FMCG research
analyst at Asit C Mehta Investment
Intermediates, a few days ago.
Credit ratings agency Moody’s
pointed out that while JLR’s customer
base is typically less price-sensitive
than that of mass-market brands,
passing on the full tariff burden may
prove difficult. “A decline in demand
from the US, which accounts for
nearly a third of JLR’s sales, would be
credit negative,” the agency noted in
a recent report.
Nevertheless, key brands in the
premium segment-- Range Rover,
Range Rover Sport, and Defender -have shown price resilience. “The
Defender, for instance, was earlier
priced at an average of £45,000, which
has now increased to £60,000.
Further, the recent differentiated
offering in the model, Defender Octa,
is priced at almost £200,000 and is
expected to be the biggest blockbuster
launch in the Middle East. Customers
in this price segment are willing to pay
a significant premium for unique products that stand out as differentiated,”
analysts at Motilal Oswal said in a
March report.
Analysts believe these three
models have been effectively positioned as aspirational vehicles. The
company is now aiming to reposition
the Discovery line similarly.
West Asia stocks suffer worst rout
since 2020 on oil, trade shocks
BLOOMBERG
LOSING STREAK
6 April
Saudi Arabian Oil Company ($ per share)
Main equity benchmarks in West Asian countries, including Saudi Arabia, sank the most
since 2020 on Sunday as investors reacted to
the risks of a fresh global trade war and
depressed oil prices. Stocks on the kingdom’s
main exchange fell as much as 6.1 per cent,
while gauges in Qatar and Kuwait dropped more
than 5.5 per cent. Equities in Tel Aviv dropped
the most since October 2023, when Hamas
launched the deadly attack on Israel that
sparked the start of the war in Gaza. All four
stock markets were closed on Friday.
Saudi Aramco — the world’s biggest oil
exporter — was one of the biggest losers in the
region. The company at one point erased more
than $90 billion from its market capitalisation.
Saudi Arabia cuts prices for Asia oil supply
Saudi Arabia slashed its flagship oil price by
the most in more than two years, just days
after the Opec+ alliance announced an
unexpectedly large output hike.
Saudi Aramco will lower Arab Light crude
to its biggest buyers in Asia by $2.30 a barrel
for May, according to Bloomberg. While the
MARKET CAP
($ trn)
8.16
1.70 1.61
9
April 3, ’25 April 6, ’25
-89.4 (chg $ bn)
8
6.64
7
6
Apr 6,’25
Apr 14,’24
Index
Tadawul All Share
Qatar Exchange
Boursa Kuwait
Premier Market
Country
Saudi Arabia
Qatar
Kuwait
% 1-day chg
-6.4
-4.2
-5.7
Note: Kuwait & Saudi Arabia index change over April 3
& Qatar over March 27
Source: Bloomberg
large reduction comes on the back of some of
the kingdom’s biggest price increases in years,
the move was still bigger than expected in a
survey of traders and refiners.
IN BRIEF
UK hits out at Israel for
detaining 2 British MPs
Meta launches Llama 4
models for multimodel AI
Ukraine attacked energy
infra, claims Russia
70 pro-Awami League
lawyers jailed in B’desh
The British government has described as “unacceptable” the
detention of two Labour Party members of parliament in Israel after
being denied entry for a proposed visit to the West Bank as part of a
parliamentary delegation. Abtisam Mohamed, MP for Sheffield
Central in northern England, and Yuan Yang, MP for Earley and
Woodley in southeast England, said in a joint statement posted
on social media on Sunday that they were “astounded” at the
unprecedented step. Israel's immigration authority said the entry
had been denied because the UK MPs intended to “spread hate
speech” against Israel and were travelling to “document the
security forces” amid the ongoing conflict with Hamas.
PTI
Meta Platforms Inc announced the release of its new Llama 4
artificial intelligence models, built on what the company says is
one of the world’s most advanced large language models.
At the core of the new Llama 4 family is Llama 4 Behemoth, a
2-trillion-parameter LLM that is still in training, with two
distillations from it — dubbed Maverick and Scout — available
right away for developers to build on and users to try via Meta’s
apps or Meta.ai website. They come with the promise of being
natively multimodal, meaning capable of working with a variety
of media beyond text, and benchmark scores that Meta says puts
BLOOMBERG
them ahead of well-known competitors.
Ukraine continues to carry out attacks on Russian energy
infrastructure despite a US-brokered moratorium on strikes
against energy facilities, the Russian Defence Ministry said on
Sunday. According to the ministry, Ukrainian forces conducted
seven such attacks over the last 24 hours in Crimea, Bryansk,
Rostov, and Voronezh regions. In the Voronezh region, the attack
damaged a gas distribution pipeline, the ministry said. In separate
report the ministry said that Russian forces launched an overnight
strike using long-range precision weapons and drones against
Ukraine's central artillery armament base and defence industry
REUTERS
enterprises involved in drone production.
A court on Sunday sent to prison 70 lawyers known for their support
for the Awami League party to face charges of “assault” and
“attempt to murder” of fellow advocates during last year's mass
uprising that toppled then prime minister Sheikh Hasina’s
government. Court officials said Dhaka's Metropolitan Sessions
Judge Mohammad Zakir Hossain ordered the lawyers to be sent to
prison after they appeared on the dock with bail pleas. The court,
however, granted bail to nine female lawyers and Dhaka Bar's
former president Abu Sayeed Sagor. Earlier, the lawyers secured
anticipatory bail from the high court for eight weeks and surrendePTI
red before the lower court after the period was exhausted.
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OPINION 7
>
VOLUME XXXI NUMBER 303
STAY INFORMED THROUGH THE DAY @ WWW.BUSINESS-STANDARD.COM
A new world in the making
NEW DELHI | MONDAY, 7 APRIL 2025
Spiralling downwards
ILLUSTRATION: AJAYA MOHANTY
Govt must make its moves carefully
G
lobal reactions to American President Donald Trump’s announcement of
a new tariff structure for the United States (US) on “Liberation Day”, April
2, are now beginning to be seen. They vary widely. In what was a major
negative signal for markets, China took a strong stance, tariffing US imports
at 34 per cent to match the additional levy that Mr Trump had imposed on its exports.
This was a straightforward tit for tat — unlike the US administration’s ersatz country-specific formula, which, in spite of claims, had nothing “reciprocal” to it. Beijing
can perhaps take the risk of a strong line because it is now less dependent on direct
exports to the US than it had been in the past — its producers are at the heart of a
supply chain that spans multiple countries which have been hit with different tariff
rates. Some of those have signalled a desperate willingness for a deal: Cambodia,
heavily dependent on textile exports, faces a ruinous 49 per cent tariff and has voluntarily cut import tariffs to 5 per cent in response to the US action. Vietnam has
similarly offered duty-free access to its markets to the US. It is far from certain that
Mr Trump will respond positively — though many US-based companies dependent
on its factory floors, such as shoemaker Nike, would dearly hope that he does.
The markets displayed deep concern at Beijing’s strong and swift retaliation
because the outcome of such cascading confrontation over trade actions is well
known. Economist Charles Kindleberger produced a famous graph, known as the
“Kindleberger Spiral”, which traced out how world trade spiralled down, month after
month, in the years after the 1929 stock-market crash and subsequent protectionist
measures. Almost two-thirds of world trade was wiped out till then US President
Franklin D Roosevelt announced that the US would reduce tariffs on any trading
partner that would do so as well. While it is unlikely that world trade will fall to the
same degree this time around, the danger of a severe dip and associated uncertainties
cannot be ignored. Much depends on how other large trading powers, particularly
the European Union (EU), respond. If they choose not to limit their reaction merely
to retaliatory tariffs on merchandise trade but also to services, in which trade the US
enjoys a surplus of ^100 billion with the EU, then an additional spiral of escalation
opens up.
India is in a difficult position at this point. Some take heart from the fact that the
country’s relative underperformance in exports means that it has been hit with a
much lower rate than, say, Vietnam. But that will not assist existing exporters, who
are already receiving demands for 15-20 per cent discounts on US orders that had
already been settled. The exact proportions of how the additional costs will be
managed — how much will be paid by consumers, by the US-based importer, and by
the India-based exporter — will be decided by negotiations. The question is whether
the financial system in India will be agile enough to provide the working capital
required for any transition period. The government must also pay attention, at the
macro level, to the US administration’s attitude on deal-making, and what it expects.
Certainly, India must offer to drop unnecessary regulatory restrictions on imports,
such as quality-control orders and other non-tariff barriers. The government would
do well to push for an early conclusion of the bilateral-trade agreement. It must also
move swiftly on its free- trade negotiations with the EU and Britain. There is work to
be done to stave off catastrophe.
Bloc development
Bimstec needs to move faster
T
wenty-eight years after its inception, member-countries of the Bay of Bengal
Initiative for Multi-Sectoral Technical and Economic Cooperation, or Bimstec,
appear to have attempted to instil a greater sense of purpose by adopting a
Bangkok Vision 2030, outlining a road map for regional prosperity. The aim
is to build a “prosperous, resilient and open” or “PRO” Bimstec by 2030 and create a
zone of peace, stability, and economic sustainability in line with the United Nations’
Sustainable Development Goals and Thailand’s bio circular-green economic model,
which focuses on creating a low-carbon ecosystem. This sixth summit, hosted by
Thailand under its chairmanship, saw some energetic interventions by India as part
of the “PRO” agenda. The initiatives unveiled by Prime Minister Narendra Modi in
Bangkok ranged from Bimstec Centres of Excellence, focusing on disaster management,
sustainable maritime transport, traditional medicine, and agri-research, to a “Bodhi
Programme” for skill development, a pilot study for digital public infrastructure, a
Bimstec chamber of commerce and greater people-to-people linkages.
India’s drive for greater strategic cohesion within a group comprising Bangladesh,
Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand aligns with New Delhi’s
“Act East” policy, balance growing Chinese influence in the Bay of Bengal and to act
as a counter balance to the South Asian Association for Regional Cooperation (Saarc),
which tensions with Pakistan have rendered virtually moribund. The question is
whether Bimstec can fulfil these multiple agendas. First, intra group political tensions
have expanded. Indo-Bangladesh ties have weakened. Though the summit offered
Mr Modi and Bangladesh Chief Advisor Mohammad Yunus an opportunity to exchange
views on issues of mutual concern on the sidelines, it is far from clear that the agendas
correspond to each other. Bangladesh has problematic relations with Myanmar since
it hosts over 900,000 Rohingya refugees. Myanmar’s civil war, where the military has
lost its grip on most of the country, means it can make little productive contribution
to the grouping.
Second, the grouping has been characterised by inertia. Bimstec meetings were
supposed to take place every two years but there have been only six summits so far. A
secretariat in Dhaka was established in 2014 but remains chronically under-resourced.
A charter, outlining an institutional framework for the organisation, was adopted in
the fifth summit in 2022. Bimstec appears to be galvanised whenever Saarc fails,
while Thailand and Myanmar have been focused on the more dynamic (Association
of Southeast Asian Nations). Part of the reason for inactivity under Bimstec is its wideranging agenda covering 14 areas — from trade and investment to health, climate
change, tourism, counter terrorism, among others — that dissipates energies towards
a meaningful alliance. A free-trade agreement, which was agreed on in 2004, has
made no headway. Meanwhile, infrastructure and connectivity via coastal shipping,
road transport, and an intra regional energy grid — all of which have the potential to
transform the region — are largely incomplete, the major obstacles here being finalising
legal agreements. Much of this can change if Bimstec injects greater dynamism into
its functioning. No doubt the growing power of China in the region and the need to
build greater intra group economic ties following the US tariffs are concentrating
minds in seven regional capitals now. As the largest economy in the bloc, much will
depend on how India manages the process of cooperation.
Is it time for a radical rethink of India’s economic
strategies and prepare accordingly?
“S
ir, please don’t say this openly … we will lose and, to cover the gap, the government borrows money
half our revenue if our key clients hear that!” through treasury bonds and then the cumulative borThis was the anguished response from a rowing over decades has resulted in its national debt
friend who had started a software company in the 1990s, exceeding $34 trillion as of early 2025, I can’t help but
when I suggested that I could help design an algorithm feel shaken.
The US is home to massive and world-dominating
to perform marketing analysis in one-tenth the time it
was taking at that time. His business was then to con- private tech companies, such as Google (Alphabet),
Microsoft, Amazon, OpenAI
duct marketing analysis, a service that
(ChatGPT), Meta, and Apple, yet
his company provided to blue-chip
the country as a whole is struggling
clients in India and the United States (US).
neck-deep in debt. The simple
His revenue was generated by charging
answer often given is that these
clients in accordance with the number
giants are private corporations, not
of hours spent by his team on this analygovernment-owned, and their profsis, as well as the number of people
its are all distributed to shareholdemployed to perform it.
ers, founders, and executives. The
This incident from a time nearly three
US government receives almost no
decades ago comes rushing to my mind,
share in these profits in the form
in effect telling me that banking on cheap
of taxes. So, while these companies
Indian labour, which I had apprehensions AJIT BALAKRISHNAN
are American and lead the world
about even in the 1990s, may soon come
in innovation, this does not transto haunt us and more so when I see the
late into government revenue.
current headlines flooding the world media:
This is a puzzle that all deep thinkers in the US and
“More than 130,000 IT employees have lost their
jobs so far this year as the tech industry continues to around the world are trying to solve, primarily because
if the present trend of deficits in the US continues and,
lay off workers”.
Or, more shocking to me, “Work for designers and God forbid, leads to a debt default by the US, the world
will be thrown into chaos. Countries like China, Japan,
photographers in their 30s drying up...”
Then, when I dig a little deeper, I am led to believe the United Kingdom, India, and Saudi Arabia hold their
that these problems in India seem to originate in prob- reserves in US dollars, and a US default would result in
losses on those holdings and panic in currency markets.
lems with the US economy:
“The US could run short of money to pay its bills by It could also lead to supply-chain disruption, resulting
in a crash in US demand and a reduction in global
August this year…”
When I see these reports about the US situation exports, particularly in Asia. It would also mean that
stating that the US spends more than it collects in taxes tech orders, services outsourcing, and raw material
BOOK REVIEW
KATIE NOTOPOULOS
A
challenge of writing a book on the
tech industry, especially something
as rapidly evolving as artificial intelligence (AI), is that the story will be slightly
out of date in the few months between the
final draft being turned in and the hardback
hitting the shelves.
For example, Stephen Witt’s The
Thinking Machine, a lively biography of the
CEO Jensen Huang, whose company
Nvidia makes microchips that power AI
systems like ChatGPT, recounts events
only up to a mid-2024 climactic showdown
between the author and his subject over the
possibility of AI destroying humanity,
which means that a line that appears in an
earlier chapter — about how Elon Musk
The author (ajitb@rediffmail.com) is devoting his life to
unravelling the connections between technology and society
US tariffs: Running blind on a tightrope
L
ast week, American President Donald Trump
set the global trading system ablaze by imposing
massive tariffs on countries/geographical
regions with large trade surpluses with the United States
(US), such as China, Japan, South Korea, Vietnam,
India, and the European Union. The repercussions are
mind-boggling. A month ago, I suggested: “Unless
something changes, Trump is a huge threat right now,
which is perhaps not being fully recognised.” In fact,
way back in mid-November, I wrote: “It would be suicidal to assume that his promised actions would be
tempered … Even if a part of Trumponomics is implemented, it will hit the rest of the world like a tidal wave.”
This has now happened. As economists, policymakers,
and businesses scramble to chart a dangerous and
unpredictable future, they are first trying to discover a
method in Mr Trump’s madness. What
is he trying to achieve? Here is the logic
from Trump apologists.
The supposed method
1. Force yields lower: The biggest
problem for the US is its massive
national debt of $36 trillion, of which
$9.2 trillion must be refinanced in
2025. The only short-term fix for this
is lower yields, which would mean
lower interest payments. How can Mr
Trump drive yields down or induce a
massive buying of US bonds, especial- DEBASHIS BASU
ly when inflation rates are not low? By
playing the madman, which creates
tremendous uncertainty. Abnormally large tariffs create
panic and a risk-off scenario, where investors exit stocks
and buy US treasuries, thus lowering yields. What would
help additionally is the US Federal Reserve cutting
interest rates. This is why Mr Trump was yelling at
Jerome Powell, chairman of the US Fed, to cut interest
rates during the Fed’s press conference on Friday.
2. Cut deficit: A lower yield will do nothing to reduce
debt. Therefore, the second plank of Mr Trump’s strategy is to cut the deficit by apparently eliminating “waste
and fraud” from the US Federal Budget. This is the
work of Doge (Department of Government Efficiency),
overseen by Elon Musk. Doge aims to slash $2 trillion
from the US Federal Budget, which totals over
$6.75 trillion.
3. Tariff revenues: The third plank of the strategy
is to raise revenues. For Mr Trump, the most obvious
revenue source is tariffs. According to the Trump camp,
tariffs could generate $600-700 billion annually.
4. Geostrategy: The next part of the strategy is supposedly to force negotiations with Europe, Japan,
Australia, South Korea, and Taiwan — countries that
depend on the US for their security — in a way that
benefits US trade and investment. This is why the
Trump team went after these long-standing allies first.
5. Reshoring: The final plank of this strategy is to
force exporters to make their products in the US. While
there are no estimates on how much investment and
how many jobs this will create, there
are only a few pledges — from companies like Taiwan Semiconductor,
Hyundai Motors, Nvidia, and Apple.
What if the plan fails?
Even assuming this is all well thought
out, it is an extremely risky strategy,
akin to running blind on a tightrope.
For one, tariffs come into effect immediately and are so huge that significant
costs will be passed on to US consumers and businesses. This could
lead to an inflation spike and job losses. If inflation rates remain high, the
Fed may raise rates, and the “loweryield” plan will fail. The Fed can cut rates during a
recession, but that would also lead to massive job losses
and lower tax revenues. The savings effected by Doge
could fall far short of target while causing massive disruption in US society. Mr Trump cannot have trade
deals, tariffs, jobs, and reshoring all at the same time.
If trade deals are struck, there will be no need for
reshoring. Reshoring will take years. As the Alcoa chairman has said, the company makes large investment
decisions based on a 20- to 30-year outlook, not on
months and years. Why would anyone commit to longterm investment in the US based on a presidential
IRRATIONAL CHOICE
Nvidia: From video games to the AI revolution
differs from Huang in temperament —
mentions that the Tesla CEO has “at least”
11 children. That count is now woefully
behind. By most estimates, he’s up to 14.
It also means Witt’s account doesn’t
include the recent drama that arose after
the release of a new AI chatbot from the
Chinese company DeepSeek.
A rival to ChatGPT, the Chinese chatbot
was allegedly built for a fraction of the cost,
with fewer fancy chips. This bucked the
accepted wisdom that the only way to
improve AI was to shovel vast sums of
money at Nvidia to buy more and more
of its hardware. When the markets
absorbed this fact in January, Nvidia’s
stock price tumbled.
Before that fall, however, there was an
astonishing rise. The story of how Nvidia
became the hottest investment on Wall
Street and a household name is fascinating
because its trajectory differs significantly
from that of its Big Tech peers.
For most of the time that companies
like Apple, Meta and Amazon have been
around, regular people used their products
and services every day. But, unless you
imports all take a hit, affecting the export revenue of
many countries. For India, this could potentially be a
catastrophic decline in IT (information technology)
outsourcing revenue from the US.
Since I couldn’t find any intelligent explanation in
the mass media about all this, I dived headfirst into
any possible book that could unravel this puzzle for
me, and I thought I’d share some of my findings with
you, dear reader.
Several books analyse the possibilities and effects
of such an event. The Storm Before the Calm, by George
Friedman, which predicts internal US economic and
institutional upheaval in the 2020s, potentially affecting
global stability, and The End of the Dollar Empire, by
John Perkins, which explores what happens when the
dollar loses its dominance, are two prominent examples.
Some other books also list and analyse how India can
potentially deal with such an event. The Future is Asian,
by Parag Khanna (it suggests India should do more
regional integration and move towards supply-chain
leadership and economic diplomacy beyond Western
dependencies), and India in the Age of Ideas, by Sanjeev
Sanyal (it gives an insider’s view into how Indian policymaking is adapting in this era of global uncertainty)
are two.
Then, there is at least one book that deals specifically
with what India, in particular, can or should do. This is
Breaking the Mould: Reimagining India's Economic
Future, by Raghuram Rajan and Rohit Lamba. It
proposes a new growth path for India, based on
encouraging decentralised, grassroots-driven innovation, which can be achieved by building an ecosystem
suited for small and medium enterprises (SMEs).
Support this effort by investing in education and skills
rather than subsidising capital-heavy industries. In
addressing the emerging fragile global world order, the
book cautions against relying too heavily on exports,
as China does. This is because they argue that in the
emerging world, Western markets, such as the US, will
become increasingly protectionist. You can see that,
while this book was published last year, before Donald
Trump was re-elected US President, Mr Trump’s key
actions have all centred around protectionism:
Increasing import duties for goods coming to the US
and demanding reductions in import duties by other
countries on goods from America.
India, these authors say, should be a “creative country”, “build from the bottom up to become shock-proof,
not just chase big-ticket industrial dreams that may be
vulnerable to global shifts”, and focus on “India’s services edge, digital stack, and human capital, which are
exactly the kind of assets that become valuable in a
post-dollar or post-US-hegemony world”!
Is it time for a radical rethink of India’s economic
strategies and prepare for this new world coming?
were a hard-core gamer, you probably
hadn’t heard of Nvidia until recently.
Huang doesn’t offer the author much
on how his upbringing may have led to his
current status as a technology apex
predator (“I try not to analyse myself in that
way,” he tells Witt), but there are early
glimpses of his incredible drive and focus.
In 1973, at 10 years old, he immigrated to the
United States from Thailand and
eventually landed in Oregon, where,
between homework and shifts at Denny’s,
he played competitive Ping-Pong at the
national level.
By the early nineties, popular video
games like Myst and Doom were coming
out and the industry around personal
computing was ramping up. In 1993,
instead of trying to compete against giants
like Intel and Sun in the general computer
chip space, Huang co-founded Nvidia, a
company focused specifically on PC video
games; their chips were robust enough to
process the immersive visuals that the new
games were creating.
For much of Nvidia’s history, success
was far from assured. Over 30 years, the
company had ups and downs, nearly
facing bankruptcy and fighting off activist
investors. Huang’s tolerance for risk pulled
his company through again and again.
Huang was also notorious
for his management
style; his trademark
technique is rage and
yelling. In 2008, one
of the company’s new
graphics chips had a
design flaw that
caused
mass customer
returns and a plunge
in stock price. In front
of a large group in the
company cafeteria,
including more than
a hundred executives, Huang reamed out
the chip architect responsible for
the error.
These screaming sessions seem at odds
with other, kinder aspects of Huang’s
personality — his friends from his personal
life said they didn’t ever witness any
blowups. And somehow he’s retained
diktat when the presidency itself lasts just four years?
The biggest issue is the assumption that while Mr
Trump upends the existing order at his own will, “all
other things will remain equal”. They will not. China,
which is ruled with an iron hand, has an enormous
capacity to endure pain, which most democracies don’t.
It has retaliated with a 34 per cent increase in tariffs on
US imports, sanctions on select US companies, and a
ban on some rare earth exports that the US electronics
industry depends on. China, the world’s largest holder
of US treasuries, can even force yields up by dumping
US debt. The People’s Bank of China has announced
the digital cross-border settlement system will be fully
connected to the 10 members of Asean (Association of
Southeast Asian Nations) and six West Asian countries,
which means that 38 per cent of the world’s trade
volume will bypass the SWIFT (Society for Worldwide
Interbank Financial Telecommunication) system,
dominated by the US dollar. Reports say that SWIFT
clears cross-border payments in three-five days while
the Chinese system has a clearing speed of just seven
seconds, possibly leading to a massive shift away from
the dollar.
It will be messy
Countries will attempt to work out deals with the US.
The deals will be messy, long-drawn-out, and likely to
be capriciously altered. As the world learns of these
negotiations in real time from Mr Trump’s social media
handles, strategies will have to be drawn and redrawn,
buffeted by mercurial shifts in his imperious demands,
backed by outright falsehoods. The most likely outcome
is higher tariffs, but at lower rates than the current
ones, along with lower economic growth across the
board — perhaps leading to a recession, lower US tax
revenues, new trade alliances with China at the centre,
and continued uncertainty. Not since Covid has the
world faced such a dire threat to growth and stability.
Equity markets, which are derivatives of business and
economy, will react with extreme volatility to each twist
and turn. Buckle up.
The writer is editor of www.moneylife.in and a trustee of the
Moneylife Foundation; @Moneylifers
many long-time loyal employees, even
people from the early days when it wasn’t
obvious that working at a gaming chip
company — not the most glamorous part of
the tech industry — was a golden ticket to
enormous wealth. He’s also a loyal boss:
The guy from the cafeteria wasn’t fired after
the showdown.
Over and over, Huang made decisions
that worked out. He
hired well, he saw
THE THINKING
MACHINE: Jensen
opportunities
Huang, Nvidia,
around corners.
and the World’s
The smartest risk
Most Coveted
Huang took was
Microchip
listening to a
Author:
midlevel researcher
Stephen Witt
who, in 2013, pitched
Publisher:
Penguin Random him on a technology
House
called “neural nets,”
Pages: 248
then a fringe area
Price: ~899
being explored by a
handful of academic
researchers. Huang saw the potential, and
set Nvidia on a path that would make his
chips the premier tool for today’s
AI revolution.
The arc of Nvidia’s rise to dominance
can’t really be built out of explosive
interpersonal moments at the office or
reflections on its founder’s stranger
personality traits, as entertaining as those
things are. Instead, the drama most
naturally arises from a series of technical
achievements where Huang and his gang
pulled ahead of the competition by sheer
feats of computer engineering. Thankfully,
Witt does a decent job at drawing the reader
into those moments.
It’s hard not to compare Huang with
Zuckerberg, Bezos and Musk and see him
as a kinder, less evil version of his tech
overlord peers.
For all his verbal abuse, he hasn’t
attempted to reshape global society or
exploit low-wage workers.
Still, the big questions about how AI will
change humanity are left unanswered.
When Witt tries to ask Huang about these
things, the CEO brushes him off, saying, “I
feel like you’re interviewing Elon right now,
and I’m just not that guy,” before getting
irate and yelling.
In the end, The Thinking Machine
leaves us unsure of its subject’s vision of the
future. Huang is someone who dreamed of
beating Intel in Q2 sales numbers, not of
ushering in a new technological age. It just
so happens that by achieving the first goal,
he also ended up doing the latter.
©2025 The New York Times News Service
8 POLITICS & PUBLIC AFFAIRS
NEW DELHI | MONDAY, 7 APRIL 2025
“THE NEXT STEP (BY THE BJP AFTER WAQF
LAW) WOULD BE TO EYE THE LAND OF
CHRISTIANS, JAINS, BUDDHISTS AND
EVEN HINDU TEMPLES”
“IF IT (AMENDMENTS) IS USED PROPERLY,
THE ENTIRE WAQF BOARD CAN BE USED FOR
THE WELFARE OF POOR MUSLIM BROTHERS
AND SISTERS”
“WE DO NOT SEEK TO CONTROL THE WAQF
BOARD. WE ARE ONLY ASKING THOSE WHO ARE
OPERATING (THE WAQF BOARD) THAT YOU
DO IT ACCORDING TO RULES”
UDDHAV THACKERAY, Shiv Sena (UBT) chief
SHIVRAJ SINGH CHOUHAN, Union minister
J P NADDA, BJP president
>
.
‘Recessionary phase not ruled out in Shrimp farming:
US shockwaves
major economies (after US tariffs)’ rock AP shores
MONTEK SINGH AHLUWALIA, former deputy chairman of the Planning Commission and currently distinguished fellow at the Centre for Social
and Economic Progress (CSEP), tells Indivjal Dhasmana in New Delhi that tariff advantages for India vis-à-vis other economies in the US,
will not yield any immediate gains in the American textiles market. He also shares thoughts on regional groupings, free-trade agreements
(FTAs), and the efficacy of exchange rates. Edited excerpts:
Will tariffs imposed by the US take the
world back to the pre-globalisation era?
President Donald Trump’s proposals
will bring US tariffs back to where they
were after the Smoot- Hawley Act of
1930, which triggered the trade wars of
the 1930s, intensified the recession,
and brought on World War II. Global
financial markets have already been
shocked, but the full effects will be
known only after retaliation from
other major players. China has already
announced 34 per cent tariffs on
imports from the US. The EU has also
said it will retaliate.
The rise in tariffs will raise prices in
major economies and trigger an
economic slowdown, possibly even
prompting a recessionary phase. The
tariff action will affect more than just
trade — it will also affect investment
because of the unilateralism of the
action. Also, the departure from MFN
(most favoured nation) rules adds huge
uncertainty. The future of global value
chains as a vehicle for achieving
competitive efficiency is now in doubt.
The International Monetary Fund
(IMF) is specifically tasked with
surveillance of the global economy
and the MD of the IMF has described
the US’ action as “a significant risk to
the global outlook at a time of sluggish
growth”. But their comprehensive
assessment will be unveiled at the
IMF/ World Bank meetings in late
April. All G20 finance ministers will be
there, and it will be interesting to see
what happens.
IF GLOBAL TRADE IS
BEING FRAGMENTED INTO
DISTINCT TRADE BLOCS,
WE SHOULD WORK TO BE
IN AS MANY OF THEM AS
POSSIBLE. WE ARE
CURRENTLY NEGOTIATING
FTAs WITH THE UK AND
THE EU. WE SHOULD
MOVE AS QUICKLY AS
POSSIBLE…”
legitimate reason for departing from
normal trade rules and the WTO
(World Trade Organisation) allows
for this. The previous US
Administration had sought to address
this concern by introducing
protectionist walls in select high-tech
areas — what they called a high fence
around a small yard. Countries with
similar concerns vis-à-vis China could
follow this approach.
The problem with the recent US
action is that it goes well beyond
national security. It is prompted by the
belief that the US has been
What can other countries
unfairly treated by others,
do in response to the
but this argument does not
US’ action?
stand up to scrutiny. The
Large individual countries
EU, for example, is being
will want to take retaliatory
penalised for running a
action, as China has done
MONTEK SINGH
large bilateral surplus on
and the EU is considering.
AHLUWALIA
goods trade, ignoring the
Retaliation will increase the
fact that they have an
damage, but it has the adva- Former deputy
chairman, Planning almost equally large deficit
ntage that the US will learn
Commission
in services trade. In any
that unilateral behaviour
case, imposing tariffs to
involves costs, which will
correct bilateral trade balances just
hurt American export interests.
does not make sense. I hope that the
I hope major players also realise the
enormous economic expertise
importance of protecting multilateral
available in the US will surface in some
rules of trade among themselves, even if
way and be heard.
the US opts out. This means all
countries other than the US should
avoid arbitrary protectionist action
What should India do? Should we
among themselves and continue to
follow the US and also turn
observe multilateral rules, while hoping
protectionist? Should we retaliate?
that the US will re-join the global
I don’t think retaliatory action by
consensus sooner rather than later.
India makes sense. The US is our
largest trading partner, but we are not
a significant trading partner for the
But many other countries have concerns
US. Retaliatory tariffs by us will not
about China on national security
hurt the US or deter it significantly.
grounds, similar to those of the US…
We must also keep in mind that
National security is accepted as a
when Prime Minister (Narendra) Modi
met President Trump in Washington
recently, they agreed to initiate a
bilateral trade dialogue.
President Trump also said he had
told Modi that he felt India’s tariffs
were too high, but he hoped we would
reduce our tariffs. It makes sense to
give these negotiations a chance.
I have long argued that our tariffs
are too high and we should lower them
for our own good. There are many
others who share this view. Even the
NITI Aayog’s first three-year reform
programme, published in 2016, said we
should reduce our tariffs. Perhaps we
can reap some “early harvest” from the
ongoing trade dialogue and lower
some other tariffs, as part of a deal
whereby the US delays the tariff
increase for India scheduled for April 9.
If global trade is being fragmented
into distinct trade blocs, we should
work to be in as many of them as
possible. We are currently negotiating
FTAs with the UK and the EU. We
should move as quickly as possible to
conclude these discussions. For this,
we may need to be more flexible on
some of the “behind the border” areas
than we have been.
I think we should also consider
entering the Comprehensive and
Progressive Agreement for TransPacific Partnership (CPTPP), which is
led by Japan and includes 11 countries.
We opted out from joining the RCEP
(Regional Comprehensive Economic
Partnership) at the last minute
because our industry was reluctant to
grant duty-free access to China. China
is not a member of the CPTPP and is
unlikely to be admitted. We should
apply for admission immediately. It
will take time but it will send a good
signal. Given the uncertainty about
the US’ trade policy, other members
would value getting India in the group.
Trump’s tariffs, falling shrimp prices, and fears of
additional US levies, spark a crisis in the state’s politically
vital aquaculture sector. SHINE JACOB elaborates
Since US President Donald Trump’s dominates the Indian shrimp story: Vannamei,
announcement of reciprocal tariffs on April which accounts for 87 per cent — or 625,475
2, Duggineni Gopinath, a veteran shrimp tonnes — of total shrimp exports, with a value
farmer from Prakasam district in Andhra of $4.25 billion. The US market alone absorbs
Pradesh, has been losing sleep. Shrimp prices 54 per cent of that, followed by China at 16
across all categories have since dropped by per cent and the European Union at 9 per cent,
10–15 per cent, triggering widespread panic MPEDA data shows. “Even though Andhra
Pradesh’s share is only about 30 per cent of
among farmers and exporters.
Industry experts peg the potential annual the Vannamei shrimp export value, exporters
loss to the Indian shrimp sector at nearly $1 here are using the situation to slash prices
billion. Even more unsettling is the prospect across all markets,” Gopinath said. “We are
of additional levies in the US — a countervail- the sufferers.”
Between the 5.77 per cent countervailing
ing duty (CVD) and anti-dumping duty that
could raise the cost burden for Indian duty and the 1.38 per cent anti-dumping duty,
exporters by about 7 per cent, in addition to “we’re becoming less competitive compared
to countries like Ecuador,” said Sridhar Lanka,
the new 26 per cent set by the US.
While only shrimp under the 50 count former advisor to the Andhra Pradesh govthreshold are typically exported to the US, ernment. The effects are cascading. Hatcheries
—where shrimp are bred and
prices for other varieties — 100,
raised through their early life
90, 80, 70, and 60 count — pristages — are seeing demand fall
marily shipped to China, the
sharply. “All exporters have
European Union, Southeast
stopped buying shrimp; prices
Asia, Japan, and other Asian
have tanked by about ~50 per
markets, have also seen a steep
kg across categories,” said P
fall. Farmers and the state’s
Opposition parties are crying Share of frozen shrimp in Prasad of Ravi Hatcheries.
“We’re also seeing a slowdown
foul, alleging “cartelisation”. All India’s total marine
at the hatchery level. The centhis comes at a time when the export value
tral government should take
harvest season, which runs from
immediate steps for relief to the
April to July, is just beginning.
industry.”
Shrimp size is measured by
The political tide is rising as
count per kilogram — fewer
well. The Opposition YSR
shrimp per kilo means larger
Congress Party has latched
individual size. A 20 count, for Frozen shrimp exported
onto the issue, seeing an openinstance, represents 20 shrimp in 2023-24; total value
ing in the geopolitical trade war.
per kilogram. “Prices dipped by was $4.88 bn
“Companies formed syndicates
an average of ~40-50 per kg
and began exploiting farmers,
across categories. Above-50
while the government stood
count shrimp aren’t even
by,” said Mudunuri Prasada
exported to the US, yet prices
Raju, senior YSR Congress
have crashed across the board.
leader and former Narsapuram
That’s illogical,” said Gopinath, US market exports
MLA. “If this continues, the
who is also president of the
aquaculture sector, which conPrakasam Shrimp Farmers
tributes over 9 per cent to allied
Association. “I’m facing one of
Vannamei
agricultural income, could fall
the biggest crises since I began
exports – 87% of total
into a crisis.”
farming in the 1990s.”
The political significance of
In Andhra Pradesh, the shrimp exports
the shrimp industry earlier
shrimp industry has political Source: MPEDA
reflected in stock markets, too.
significance, too. The industry
was championed by Chief Minister Nara Shares of Andhra Pradesh-based firms — such
Chandrababu Naidu in the late 1990s, who as Avanti Feeds and Apex Frozen —surged
saw global potential in the state’s long coastline after the Assembly election results last June,
and farming talent. Today, more than 140,000 reflecting investor confidence in Naidu’s
farmers and nearly 2 million people in the return. One share of Avanti Feeds, the sector’s
state are directly or indirectly tied to the aqua- heavyweight, traded at ~494.95 on June 4 last
culture sector, which spans 212,000 hectares year; the price jumped over 45 per cent since
and includes both fish and shrimp cultivation. then to ~720.25 (as of Friday). The stock had
The panic is understandable. Shrimps hit a 52-week high of ~965 on March 24.
Sources close to the industry say many
account for 41 per cent of the volume and 66
per cent of the value of India’s total marine shrimp farmers backed Naidu’s Telugu Desam
exports. According to the Marine Products Party — a National Democratic Alliance conExport Development Authority (MPEDA), stituent — in the polls, betting on a return of
India exported 716,004 tonnes of frozen support for the sector. Gopinath echoed that
shrimp worth $4.88 billion in 2023–24. Of this, hope: “We’re counting on the Centre to step
297,571 tonnes went to the US. One species in and help us.
Many say India now has a distinct
advantage over Bangladesh, China,
and Vietnam for textile exports to the
US. What is your take?
It is true that the tariffs imposed on us by
the US are lower than on these
countries, and that gives us a relative
advantage. However, we cannot expect
any early gains on this count because
the overall effect of US tariffs and
possible retaliatory tariffs will have a
negative effect on total import demand
in the US. So, even if we are in a better
position compared to others, we may
not see much absolute gain.
Meanwhile, we should address the
many other constraints that affect our
exports in these areas. That’s a very big
agenda for policy reform, which should
have high priority, especially if we are to
enter into more FTAs.
POPULAR
CRUSTACEAN
What should be India’s approach when
negotiating a bilateral investment
treaty (BIT) with the US?
66%
This is important not just for the US but
also the FTAs with the UK and EU where
some assurances on BITs will be
needed. Our record on dispute
resolution is very bad and our insistence
that investors should first exhaust all
domestic legal avenues before invoking
international arbitration will not stand
scrutiny. Some imaginative rethinking
of our position on this issue is
urgently needed.
716,004
tonnes
297,571
Does the exchange rate play an
important role in trade policy when
tariffs are lowered?
tonnes
Domestic producers don’t like any
reduction of tariffs, but any
disadvantage from lowering
protective duties can be offset by a
corresponding depreciation in the
exchange rate. More importantly, the
exchange rate depreciation also
directly helps exporters. If duty
reduction is staggered over time, the
depreciation required will be gentle.
Unfortunately, the exchange rate
policy is viewed as a sensitive issue
across the world and no government
likes to make its exchange rate
policy explicit. Central bankers are
especially skilled at making vague
statements. Alan Greenspan once
famously said while testifying before
the US Congress: “If you think you have
understood what I said, you haven’t
listened carefully enough!”
We should leave it to the central
bank to weave its magic nontransparently, while keeping in mind
the importance of keeping the exchange
rate competitive.
625,475
tonnes:
M A Baby elected Fast tracks, fuzzy math
CPI (M) gen secy As Bihar polls near, upcoming Patna Metro fuels
ARCHIS MOHAN
New Delhi, 6 April
The Communist Party of
India (Marxist) elected 71year-old
Mariam
Alexander Baby as its
new general secretary, in
Tamil Nadu’s Madurai,
on Sunday. His appointment and other key
changes in the politburo
mark the end of the
Prakash Karat-Sitaram Yechury era, and a generational
shift in the party’s leadership.
The CPI (M) announced a reshuffled 18-member
politburo — the party’s highest decision-making body
— with eight new members inducted. The transition
echoes changes last seen at the 14th Party Congress in
Madras (now Chennai) in January 1992, when
Harkishan Singh Surjeet succeeded E M S
Namboodiripad as party chief, and both Karat and
Yechury joined the politburo for the first time. They
would go on to serve as Surjeet’s key lieutenants until
his retirement in 2005, when Karat took over the leadership. At the 24th Party Congress in Madurai, which
concluded on Sunday, senior leaders including Prakash
Karat, Brinda Karat, former Tripura chief minister
Manik Sarkar, and former Lok Sabha MP Subhashini
Ali retired from the CPI (M)’s top decision-making body,
having all crossed the age of 75.
Yechury, who led the party from 2015 until his death
in September 2024, was succeeded on an interim basis
by Karat. Baby now takes the helm following these transitions. Among those newly inducted into the politburo
include Kisan Sabha General Secretary Vijoo Krishnan,
Mariam Dhawale, and Lok Sabha MP Amra Ram.
Baby becomes the second CPI (M) general secretary
from Kerala after Namboodiripad, underlining the
enduring prominence of the state’s party unit. He is
also the second leader from a minority community to
hold the post since the party’s founding in 1964, following Surjeet. Like Surjeet, who was born into a Sikh
family, Baby — born into a Christian family — is a selfdeclared atheist.
excitement — but across India, expensive metro
dream projects often outweigh ridership and
financial reality, writes ADITI PHADNIS
Patna is fizzing with excitement. It is
getting a new international airport,
which Prime Minister Narendra Modi
will inaugurate on April 24, and an elevated roadway.
And come August 15, the city will
get a metro line — Bihar’s first; it is only
the first phase, covering five stations
and stretching just over 6 km. But even
this has sparked anticipation, especially
as further lines are expected to follow.
In June last year, the state government
approved the construction of metro
lines in Muzaffarpur, Gaya, Darbhanga
and Bhagalpur. With these additions,
Bihar will join Agra (the most recent),
Lucknow, Jaipur, and a host of smaller
Indian cities that already have functioning metro systems.
And the demand for metros is only
rising — especially when elections
loom, as in Bihar, which heads for
assembly polls at the end of the year.
The best part: This is infrastructure
with no political downside — just a lot
of financial question marks.
A member of the Legislative
Council, Devesh Kumar (Bharatiya
Janata Party, or BJP), says the metro
will help decongest Patna and eventually lead to the development of satellite
townships, particularly with the construction of the new airport.
Patna is bursting at the seams: It was
the 21st fastest-growing city in the world
and the fifth fastest-growing in India
between 2006 to 2020 (City Mayors’ statistics). The metro area population in
2025 is estimated to be around 2.7 million, up 2.16 per cent from 2024.
In 2019, the Patna Metro became a
key government poll promise during
the assembly elections. At that time,
Nitish Kumar’s Janata Dal (United) was
in alliance with the BJP. Since then,
Kumar has changed partners twice —
first aligning with the Rashtriya Janata
Dal (RJD) in August 2022, then returning to the BJP in January 2024. And
while the political drama has been
intense, the metro — both the one
under construction and the others on
the horizon — has never been a point
of contention.
In this, Bihar follows a familiar pattern seen across India. Everyone wants
a metro — whether it’s Guwahati,
Ranchi, Varanasi or Aurangabad. And
politically, no one dares oppose it.
Rashmi Sadana, a professor of sociology and anthropology at George
Mason University who has done extensive research on urbanisation and
authored Metronama, a book about
how the Delhi Metro transformed the
city, puts it plainly: “Yes, metros are
more expensive to ride, but people will
pay a little more to have their travel
times cut by a third and to travel in a
more dignified manner —with better
lighting, climate control, even surfaces
and clean stations.
“The metro is not only a form of
transport, it is an experience. It changes
people’s understanding of their city and
of themselves. People step into this
hypermodern infrastructure and
become part of it.”
But there are caveats. “The success
of Delhi’s Metro is partly due to its size
Patna is preparing for its metro debut. Bihar’s first metro line, spanning just over
6 km and connecting five stations, opens on August 15
PHOTO: X/@PMRCLOFFICIAL
COMMUTER REPORT
Average daily ridership
City
2023
Bengaluru
688,000
Ahmedabad 90,000
Lucknow
73,476
Jaipur
35,768
Noida
47,427
2024
762,361
100,000
87,000
57,211
53,600
Source: Annual reports of various metros
— it’s an expansive system covering
major swathes of the city. Even then,
it’s not the most cost-efficient transport,
but enough people use it for it to make
sense,” says Sadana. “In smaller cities,
having a metro is more of a vanity project — short lines with low ridership.
Having short metros in every other city
is a kind of financial disaster.”
“Even with Delhi’s Metro, you can’t
ignore other forms of transport, especially buses. You still need to connect
to those. Investments should be made
in the entire transport ecosystem — not
just in expensive metro systems,” she
argues.
A parliamentary standing committee that presented its report in 2022
echoed this. It found that most metro
projects — with the exception of Delhi
and Mumbai Line 1 — had significantly
lower average daily ridership than what
was needed to break even. These
included Bengaluru, Hyderabad,
Chennai, Lucknow and Jaipur.
The report cited the numbers: In
2020–21, Bengaluru Metro had an
average daily ridership of 96,000
against the 1.86 million needed to
break even. Hyderabad Metro had just
65,000 riders, compared with the 1.9
million required.
“The committee noted that poor
performance of metro projects indicates
several things such as: (i) Lack of first
and last mile connectivity, (ii) faulty
detailed project reports, and (iii)
absence of parking at stations. If the
metro is to be made a medium of mass
transportation, commuters need to be
shifted away from using private vehicles. Therefore, the Committee recommended ensuring ridership estimation
(which determines the selection of the
type of metro) is realistic and accurate,
and taking concrete steps to increase
the ridership of all metro projects,” the
report said.
While average daily ridership on
metros across India is rising, it still falls
well short of initial projections. Metro
trains are popular, just not as popular
as originally imagined. Sharad Saxena,
who leads research on transport infrastructure and policy at the Asian
Development Bank (ADB), says relying
solely on fare income won’t work.
Ticket prices have to be kept low to
attract large numbers of riders -- after
all, the whole point is that this is “mass”
transportation, accessible to everyone.
“So, we’re in a bit of a Catch-22,” he
says. “Keep fares low and make the system financially unviable. Or, raise fares,
lose ridership, and once again face a
financial crisis.” Transit companies, he
adds, need to “avoid relying on state
largesse in perpetuity”.
“The best solution is to aggressively
explore non-farebox revenues -- from
sources other than ticket sales,” Saxena
says. That includes advertising, branding rights and property development.
Right now, smaller-city metros are
struggling to do just that: Raise revenue
from alternative sources.
Even as ridership lags behind projections, Noida Metro has started offering a new service -- birthday parties.
Users can host celebrations in static or
moving coaches for a modest fee. You
can decorate the coach yourself, or have
metro staff do it for you. Magic shows
and tattoo artists can also be part of the
party. The highest package is ~10,000
an hour.
Pre-wedding celebrations are also
available.
In Lucknow, the metro encourages
people to host kitty parties, engagement
parties and family reunions — though
food and drink are still off-limits inside
the coach.
More on business-standard.com
9
NEW DELHI | MONDAY, 7 APRIL 2025
<
.
Deep Memorial Public School, Block A, Ramprastha Ghaziabad
Email: ubin0905348@unionbankofindia.bank
[Rule - 8(1)] POSSESSION NOTICE (For immovable property)
Whereas The undersigned being the authorised officer of Union Bank of India,
Ramprastha GHAZIABAD BRANCH under the Securitisation and Reconstruction of
Financial Assets and Enforcement Security Interest (Second) Act, 2002 (Act No. 54 of
2002)and in exercise of powers conferred under Section 13(12) read with rule 3 of the
Security Interest (Enforcement) Rules, 2002 issued a demand notice dated 30-12-2024
calling upon the borrower & mortgager Mr. RAKESH ANTIL and Mrs. POOJA KUNDU to
repay the amount mentioned in the notice being Rs. 11,95,631.48 (ELEVEN LAKH
NINETY FIVE THOUSAND SIX HUNDRED THIRTY ONE RUPEES AND FORTY EIGHT
PAISA only) within 60 days from the date of receipt of the said notice.
The borrower having failed to repay the amount, notice is hereby given to the borrower and
the public in general that the undersigned has taken possession of the property described
herein below in exercise of powers conferred on him/her under Section 13(4) of the said Act
read with rule 8 of the said rules on this 04th day of April 2025.
The borrower in particular and the public in general is hereby cautioned not to deal with the
property and any dealings with the property will be subject to the charge of the Union bank
of India for an amount Rs. 11,95,631.48 and interest thereon.
The borrower’s attention is invited to provisions of sub-section (8) of section 13 of the Act,
in respect of time available to the borrower to redeem the secured assets.
Description of Immovable Property
All that part of the residential property in the name of Mr. RAKESH ANTIL S/O Mr. NAFE
SINGH and Mrs. POOJA KUNDU W/O Mr. RAKESH ANTIL consisting Residential Flat
(Without roof right) No. 1528, 14th Floor, Tower-D, 5th Avenue, GH-01, Sector-4, Gaur City,
Greater Noida U.P. Pin 201301.
Bounded:, On the North-East by Flat No 1529, On the South-West by Tower E
On the North-West by Open area at ground floor,
On the South-East by Common passage, Stairs & Flat no 1527
Sd/Authorised Officer
Date: 04.04.2025
UNION BANK OF INDIA
Place : Ghaziabad
COLAB PLATFORMS LIMITED
(Formerly known as Colab Cloud Platforms Limited)
CIN: L65993DL1989PLC038194
Regd. Off.: Innov8 CP2 44, Backary Portion, Regal Building, Delhi, India, 110001
Phone: 8828865429 Email: cs@colabcloud.in Web: www.colabcloud.in
NOTICE OF EXTRA ORDINARY GENERAL MEETING
NIT Faridabad Branch
Address at 5E/3BP Neelam Railway Road, Faridabad, Haryana Pin No:121001
Contact no: 91-8356804792 mail ID: ubin0904791@unionbankofindia.bank
ANNEXURE - I [Rule - 8(1)] POSSESSION NOTICE (For immovable property)
Whereas the undersigned being the authorised officer of Union Bank of India 5E/3BP
Neelam Railway Road, NIT Faridabad, Haryana Pin No:121001 under the Securitisation
and Reconstruction of Financial Assets and Enforcement Security Interest (Second)
Act, 2002 (Act No. 54 of 2002)and in exercise of powers conferred under Section 13(12)
read with rule 3 of the Security Interest (Enforcement) Rules, 2002 issued a demand notice
dated 08-01-2025 calling upon the borrower M/s AVA Exports Company through its
Proprietor Smt. Meena W/o Anil Kumar at DE25, Ward No. 5, Aligarh Road Near Ambedkar
Park, New Basti, Sallagarh, Palwal, Haryana Pin No: 121102 and guarantors namely,
(1) Mr. Sunil Kumar R/o 13-J, Gali No 7 Ashok Vihar Phase-III, Gurugram, Haryana 122001 and (2) Mr. Surender Kumar R/o House No B-119, Near Ambedkar Park,
New Basti, Sallagarh, Palwal, Haryana-121102, to repay the amount mentioned in the
notice being Rs. 23,30,496/- (Rupees Twenty-Three Lacs Thirty Thousand Four Hundred
Ninety-Six Only) as on 04.01.2025 and interest thereon within 60 days from the date of
receipt of the said notice.
The borrower having failed to repay the amount, notice is hereby given to the borrower and
the public in general that the undersigned has taken possession of the property described
herein below in exercise of powers conferred on him/her under Section 13(4) of the said Act
read with rule 8 of the said rules on this 04th day of April of the year 2025.
The borrower in particular and the public in general is hereby cautioned not to deal with the
property and any dealings with the property will be subject to the charge of the
UNION BANK OF INDIA for an amount Rs. 23,30,496/- (Rupees Twenty-Three Lacs
Thirty Thousand Four Hundred Ninety-Six Only) as on 04-01-2025 and interest thereon.
The borrower’s attention is invited to provisions of sub-section (8) of section 13of the Act, in
respect of time available to the borrower to redeem the secured assets.
Description of Immovable Property
All that part of the property consisting of House No. B-119 Measuring 190 Sq Yd. forming
Part of Khasra No. 142/22(8-0) situated near Ambedkar Park, at New Basti, Sallagarh,
within the limit of Municipal Council Palwal, Tehsil Palwal, Distt. Palwal (Haryana) owned
and possesses by Sh. Sunil Kumar S/o Sh. Uday Singh R/o 13-J Gali No 7 Ashok Vihar
Phase-III Gurugram Haryana-122001 and Sh. Surender Kumar S/o Sh. Uday Singh R/o
House No. B-119, Near Ambedkar Park, New Basti, Sallagarh, Palwal Haryana -121102.
North: 16’ Wide Road, South: House of Punni Ji
East: House of Shahtri Ji, West: House of Vikram Singh
Sd/Authorised Officer
Date: 04.04.2025
UNION BANK OF INDIA
Place : Faridabad
NOTICE is hereby given that the 01st Extra Ordinary General Meeting (EOGM) of the
members of COLAB PLATFORMS LIMITED (“the Company”) will be held on Monday 28th
April 2025 at 12:00 noon through Video Conference (VC)/ Other Audio Video Means
(OAVM), to transact the businesses as set out in the Notice of EOGM:
All the members are hereby informed that:
1. The Company has completed dispatch of the Notice of EOGM to the Members
through permitted mode on Saturday, 05th April, 2025.
2. The businesses as set forth in the notice of EOGM may be transacted through
remote e-voting system or at the EOGM.
3. The facility of casting the votes by the members (“e-voting”) will be provided by
Central Depository Services (India) Limited (CDSL) and the detailed procedure for
the same is provided in the Notice of the EOGM.
4. The cut-off date for determining the eligibility to vote through remote e-voting or at
the EOGM shall be Monday, 21st April 2025.
5. Persons whose name is recorded in the register of beneficial owners maintained
as on the cut-off date, only shall be entitled to avail the facility of E-voting.
6. The remote e-voting period commences on Friday, 25th April 2025 (09:00 A.M.) and
end on Sunday, 27th April 2025 (05:00 P.M). Member may also cast their votes at the
time of EOGM.
7. Any person who acquires the shares and becomes the member of the company
after the dispatch of the notice and hold shares as on the cut-off date of Monday, 21st
April 2025, may obtain login ID and password by sending request on
helpdesk.evoting@cdslindia.com, to cast their vote electronically. However, if a
person is already registered with CDSL for e-voting then existing User Id and
password can be used to cast their vote.
8. The members who have cast their vote by e-voting prior to meeting may also attend
the meeting but shall not be entitled to cast their vote again.
The results declared along with scrutinizer report within the prescribed period shall be
displayed on the Company’s Website and also communicated to the stock exchange.
Members are requested to note that in case you have any queries or issues regarding
e-voting, you may refer to the Frequently Asked Questions (‘FAQs’) and e-voting manual
available at www.evotingindia.com under help section or write an email to
helpdesk.evoting@cdslindia.com or call 1800 22 55 33 or send a request at
helpdesk.evoting@cdslindia.com.
By Order of the Board
For Colab Platforms Limited
(Formerly known as Colab Cloud Platforms Limited)
Place: New Delhi
Sd/Mukesh Jadhav
Date: 5th April 2025
Director
DIN: 09539015
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QLAR OPENS NEW PULVERIZER
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sustainable innovations,’ explains
Ramachandra Rao, Head of R&D
and Engineering – Mills at
QlarIndia. ‘We see great potential for significantly reducing the
industry's carbon footprint in the
development of energy-efficient
milling technologies, the use of
industrial by-products such as
slag and fly ash, and the promotion of a circular economy.’ Qlar's
vision is to establish the Test
RAMACHANDRA RAO,
Head of R&D & Engineering –
Mills at Qlar India
Center in Bangalore as the most
advanced, data-driven and
sustainable grinding mill test
facility in the world. This strategic direction underlines the
company's commitment to
actively shaping the future of
grinding technology and setting
global standards.
For more information: —
https://www.qlar.com/services/testing
Qlar (formerly Schenck
Process) is a global provider
of sustainable products,
integrated solutions, and
services in mission-critical
applications for bulk materials. Headquartered in
Darmstadt, Germany, the
group has more than 1,100
employees with a presence in
over 13 countries focusing on
markets alongside chemicals
and performance materials,
infrastructure and energy as
well as alternative fuels. The
production sites are located
around the globe in India, China, Germany, UK and Czech
Republic.
The product range includes
solutions for industrial weighing, feeding, conveying, milling
and grinding, and related
digital applications of the
CONiQ product family. With its
testing infrastructure of 4
global test centres and 6
centres of competence, Qlar
knows more than 40,000
different bulk materials across
its relevant verticals.
Under the motto “driving
circular transformation” the
long-established international company is taking on a
leading role in climate-neutral
material processing and will
focus even more strongly on
digitalised and sustainable
solutions in future, helping
their clients to achieve a
carbon-neutral sector by
2050.
For more information,
please visit: www.qlar.com
10
NEW DELHI
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|
Busine ss Standard
M ON DAY, 7 APRIL 2 0 2 5 utsrnihedaSIDBA
DSPL-09 YWRPONMLIHEDA
©DIShIA
N E W
WUTSRPONIE
FICCI
O P P O R T U N I T I E S
Shri Narendra Modi
Shri Mohan Charan Majhi
Prime Minister
Chief Minister, O d i s h a
Memorandum of Understanding(MoU)
Signing Ceremony
rpliMA
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2 Sardar Patel Marg Diplomatic Enclave,
New Delhi, 110 021
OPPORTUNITIES
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Mr. Rajib Dhal,
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0
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11
NEW DELHI | MONDAY, 7 APRIL 2025
<
.
PUBLIC NOTICE
Notice is bereby given that the Reserve
Bank of India (RBI) has vide its letter dated
25th March 2025, granted approval to the
proposed change in management and
shifting of Registered Office of the Goldline
Finance Private Limited (”the Company”)
i.e appointment of Mr. Karri Rakesh Kumar
and Mr. Vasu Bansal as Executive Directors
on the Board of the Company and to shift
the registered office of the company from
Unit-885, 8th Floor, Office Block-B High
Street, Vegas Mall, Dwarka Sector 14,
South West Delhi, India, 110075 to 8th
Floor Orbit Tower 1 Sy No 83/1, Hyderabad,
Madhapur, Hyderabad, Shaikpet,
Telangana, India 500081 subject to
meeting the requirements of Companies
Act or any other Acts, which may apply in
this case for the Company. This public
notice is given in compliance of RBI’s
direction pertaining to change in
control/management of NBFC in terms of
their Circular no. DNBS (PD) CC.No.
11/02.01/99-2000 dated November 15,
1999, and para 5 of Notification no. DNBS
(PD) 029/CGM (CDS-2015) dated July 09,
2015. Any person having any objection or
whose interest, if any, is likely to be
adversely affected by such change may
send his objection within 30 days of the date
of publication of this notice to the manager
DNBS, RBI 6 Sansad Marg, New Delhi-110
001 with a copy to the Company at above
mentioned address.
For Goldline Finance Pvt. Ltd.
Sd/Mr. Sandeep Kurapati
Director
DIN: 09368064
Place : New Delhi
Date : 5th April 2025
CIRCLE SASTRA CENTRE, CIRCLE OFFICE BULANDSHAHR. E-Mail: - CS8212@pnb.co.in PH NO: 8171640088
POSSESSION NOTICE [Rule 8(1) Read with Section 13(4)]
Whereas the undersigned being the Authorised Officer of the Punjab National Bank under the Securitisation and Reconstruction of
Financial Assets & Enforcement of Security Interest Act, 2002, and in exercise of powers conferred under Section 13 read with Rule 3 of the
Security Interest (Enforcement) Rules, 2002, issued demand notice/s as mention below table calling upon the respective borrower/s to
repay the amount as mentioned in the table within 60 days from the date of notice(s)/ date of receipt of the said notice(s).
The borrower having failed to repay the amount, notice is hereby given to the borrower and the public in general that the undersigned
has taken possession of the properties described herein below in exercise of powers conferred on him under sub-section (4) of Section
13 of Act read with Rule 8 of the Security Interest Enforcement) Rules, 2002.
The borrower’s /guarantor’s /mortgagor’s attention is invited to provisions of subsection (8) of section 13 of the Act in respect of time
available to redeem the secured assets. The borrower/s in particular and the public in general is hereby cautioned not to deal with the
properties and any dealing with the properties will be subject to the charge of Punjab National Bank for an amount and other expenses until
payment in full.
DESCRIPTION OF IMMOVABLE PROPERTIES:
Date of Demand Notice
S.
Name of the Branch
Description of the property mortgaged
No.
1.
Date of Possession Notice
Amount Outstanding as on
the date of demand Notice.
Name of the
Account / Borrower
/ Guarantor
One residential house area measuring 83.66 Sqmtr or 100.00 Sqyards
01.08.2024
OBC MOTIBAGH 014010
situated at Maukhera, Pargana baran, Tehsil & District Bulandshahr in
03.04.2025
Kamlesh Devi W/o Sukhpal the name of Smt Kamlesh Devi W/o Sukhpal Singh. Boundries as
Rs.
10,12,766.35
(Rs. Ten Lakh Twelve
Singh A/c 0140109300000086 below: East: Rasta 8 feet Wide West: House Gajendra
North: House Lekhraj
South: House Sushila
*Property details as per title deed.
2.
SAKHNI 187310
Devesh Kumar S/o Vijay
A/c 187310ND00000024
Thousand Seven Hundred Sixty Six and
Thirty Five Paisa Only) + Int. wef.
31.07.2024 + Other cost and expenses
One Vacant shop having an area 89.93 Sqmtr situated at Mohalla
24.09.2024
Bazar Pukhta, Jahangirabad, Tehsil Anoopshahar, Bulandshahr in the
03.04.2025
name of Devesh Kumar S/o Vijay. Boundries as below:
Rs. 16,87,512.64 (Rs. Sixteen lakh Eighty
East: Road 18.00 ft
West: Shop Than Singh 20.12
seven Thousand Five hundred Twelve
North: Rasta gali 11 feet wide South: House Mohan Lal
and Sixty Four paisa Only) + Int. wef.
***Property details as per title deed*
01.09.2024 + Other cost and expenses
3. UBI BULANDSHAHAR 145020 Plot no 2S-24, measuring Area 22.35 Sqmtr situated at Kalindi Kunj
10.01.2025
Residential Scheme Khurja, Tehsil Khurja Distt -Bulandshahar in the
04.04.2025
Mrs Pooja W/o Komal Singh name of Pooja D/o Om Prakash W/o Komal Singh
Rs.
10,01,927.09
(Rupees Ten Lakh One
D/o Om Prakash
Bounded as under: East: Plot no 2S -25, West: Plot no 2S -23
Thousand
Nine
Hundred twenty Seven
A/c 1450209300000242
North: 2.5 mtr Open space 24.00 mtr Road
and Nine Paisa only) with further interest
South: Plot no K- 44
and incidental charges
Property Details as per Title Deed*
4. OBC SIKANDRABAD 084110 One residential House, Jharkhandi Nai Abadi, Gata no 2121, Area
19.11.2024
measuring 62.11 Sqmtr in the name of Mohd Irfan and Mrs Akila
03.04.2025
Mohammad Irfan S/o
(Covered under Doc No Bahi no 1, Zild no 10266, Page 167/186 Rs. 17,79,960.75 (Rs Seventeen Lakh
Sirajuddin & Akila W/o Mohd Document no 6120 dtd 20.06.2022. Bounded as under
Seventy Nine Thousand Nine Hundred
Irfan A/c 0841108700000281 & East: Home Tahira Bano
West: Plot Yasmeen
Sixty and Seventy Five Paisa Only) with
North: Gali 7 Feet
South: Home Mohammad Ahmad
084110ND00000033
further interest and incidental charges
*Property Details as per title deed*
EM of one commercial shop measuring area 23.10 sqmt situated at
5.
29.11.2024
KHURJA MAIN 026700
Moh Laxmanganj, Gandhi Road, Kasba Khurja Distt : Bulandshahar
04.04.2025
M/s Bharat Furniture and Toys which is registered at Bahi No 1 Jild No 3099 pages 375 to 428 at Serial
Rs. 12,57,323.04/- (Rs Twelve lacs fifty
Prop. Smt Shama Parveen No 5949 dated 17-07-2006 at SRO Khurja Distt: Bulandshahar.
seven thousand three hundred twenty
A/c 0267008700008985
Boundries as below: East By: Shop of Murtaja Market
three and four Paisa Only) with further
West By: Footpath Badhoo Gandhi Road, North By: Shop Faeeda D/o
interest & cost w.e.f 31.12.2024 less
Shree shree Munna Khan bakirayedri Anwar Ali etc
recovery if any w.e.f 10.01.2025
South By: Shop Shree Rajendra Kumar
*Property details as per title deed.
Date: 05.04.2025, Place: Bulandshahar
Authorized Officer, For Punjab National Bank, Circle SASTRA Head (Chief Manager)
12 PERSONAL FINANCE
NEW DELHI | MONDAY, 7 APRIL 2025
>
WORLD HEALTH DAY
Run these critical checks
on your health cover
Increase cover if inadequate; exit policies with sub-limits, copayment
SANJAY KUMAR SINGH & KARTHIK JEROME
A
pril 7, observed as World Health
Day, is a good occasion for policyholders to re-evaluate their health
insurance policies. If the existing policy
has glaring inadequacies, port to a more
comprehensive plan.
Inadequate cover
Many individuals who bought health
insurance a decade or so ago, continue
with a sum insured of ~2–3 lakh. With medical inflation averaging 14–15 per cent
annually, this amount is now grossly inadequate. “The average cost of hospitalisation for 2.5–3 days can come to ~1.5–1.75
lakh. The cost in metros tends to be even
higher,” says Ashish Yadav, head of products and operations, ManipalCigna
Health Insurance.
Treatment of critical illnesses can be
prohibitively expensive. “The cost
incurred on treatment of cancer, kidney
or lung transplant could be ~20-30 lakh or
more,” says Siddharth Singhal, head of
health insurance, Policybazaar.
A single member of a family floater
could exhaust a small cover, leaving other
members vulnerable.
Singhal suggests combining a ~10 lakh
base policy with a ~90 lakh super top-up
for an individual or even a family of three.
However, managing claims across two policies can be more complex, so buy both
base and super top-up from the same
insurer. Yadav adds that the policy should
also take care of inflation by offering noclaim bonus.
Room rent and treatment sub-limits
Policies often have sub-limits on room rent
and specific treatments. A one per cent
cap on room rent in a ~5 lakh policy means
one can stay in a room that costs up to
~5,000 per night. Choosing a higher-cost
room triggers proportionate deduction.
“The other expenses—doctor consultations, treatment costs, etc.—are linked to
room rent,” says Singhal. So, if a person
with a ~5,000 room rent cap stays in a
~10,000 per night room, he may receive
only half the total bill from the insurer.
Certain policies impose sub-limits
linked to specified ailments, such as cataract, hernia, knee replacement, etc.
Copayment and deductible
A copayment clause requires the insured
to pay a fixed percentage of the bill.
For example, if the copayment is 20 per
cent, a ~1 lakh bill means the policyholder
pays ~20,000.
A deductible is a fixed amount borne
by the insured; the insurer pays only above
that threshold. “Customers should go for
a deductible where their liability is limited.
In copayment it keeps increasing with the
bill amount,” says Singhal.
If you can pay the premium, then avoid
ESSENTIAL POINTS TO KNOW ABOUT PORTING
n Many mistakenly believe porting results
in loss of continuity benefits
n Consider porting if premiums rise
sharply or the benefits offered by
the policy are inadequate
n Don’t choose new policy based on
lower premium alone; check benefits,
exclusions, claim-settlement ratio, and
willingness of insurer to offer a high
sum insured
n Avoid plans with sub-limits on
treatment methods
n Start porting 45–60 days
before policy expiry
n Disclose all health conditions,
especially recent ones
n After porting, go through
new policy document
to ensure that the
continuity benefits
are intact
both copayment or deductible. To make
premiums manageable, seniors may go for
a deductible they can afford.
Claim settlement track record
Ideally, select insurers with claim settlement ratio above 90 per cent. “Even
though this data from the regulator is not
available by line of business or product,
and is not segregated for retail and group
insurance, nonetheless it is a very important parameter one must review,” says
Kapil Mehta, co-founder, SecureNow.
He also recommends checking grievance-related data from the regulator and
insights from industry bodies like the
Insurance Broking Association on the performance and credibility of various
insurers.
Waiting periods for ailments
The regulator now caps the waiting period
for pre-existing diseases (PEDs) at three
years. For a higher premium, you can now
get policies that offer day-one coverage for
PEDs. The waiting period for specified ailments like cataract and hernia has been
capped at two years. Again, many products
are now available where this type of waiting period also does not apply.
Short-duration procedures
Today, many surgeries, such as laparoscopic procedures, cataract removal, tonsillectomy, etc. do not require 24-hour hospitalisation. “Such surgeries are typically
categorised as daycare procedures and are
covered in most policies,” says Shilpa
Arora, co-founder and chief operating
officer, Insurance Samadhan.
Mehta adds that all insurers must cover
a list of such procedures issued by the regulator. Review your policy carefully for
what is excluded. “It is possible that some
insurers place a cap on modern-day treatments,” says Mehta.
Restore benefit
Restore benefit automatically reinstates
the sum insured if it is exhausted during
the policy year. “This benefit is crucial to
ensure access to quality treatment, especially for individuals with chornic or multiple health concerns,” says Arora.
Check the finer nuances of this benefit.
“Sometimes, insurers may replenish the
sum insured, but may not allow it to be
used for the same disease for which it was
used earlier in that year,” says Mehta.
To avail cashless facility, Arora recommends periodically checking the insurer’s
website or app to track network hospitals,
as they can change.
What should you do?
Study your policy to identify missing features and exclusions. Consider adding a
rider or shifting to a better plan within the
same company. “Whether one is able to
do so depends on the insurer’s underwriting philosophy,” says Yadav.
If shifting within the company is not
possible, port to a better policy from
another insurer.
Allow advance power of attorney
for mentally incapacitated
TRUTH BE TOLD
HARSH ROONGTA
As I approach the evening
of my life, one troubling
image often keeps me
awake. In August 2016, my
father suffered a massive
stroke. It left him bedridden and entirely dependent on others. For someone fiercely independent,
self-made, disciplined —
and who had risen to
become the chief financial
officer (CFO) of a large,
listed company — losing
autonomy had always
been his greatest fear.
He had witnessed a
similar fate befall his
father, my grandfather,
who spent his final years
mentally and physically
incapacitated after a
stroke. Determined not to
leave anything to chance,
my father prepared
meticulously: He prepared
a registered will,
nominated family
members for his accounts,
and maintained detailed
records of his assets.
Ironically, he overlooked
the one scenario he feared
most — mental
incapacitation.
When the stroke struck,
we found all his accounts
mental capacity. In India, a
were solely in his name,
regular PoA becomes
leaving us unable to access
invalid if the grantor
funds even for his care.
becomes mentally
Fortunately, he retained
incapacitated — because
enough awareness to
legally, an agent cannot
eventually authorise my
perform actions the
sister and me to manage his
principal cannot.
affairs. But what if he had
There is an urgent
slipped into a coma or lost
need for legislation that
all mental capacity?
allows individuals to plan
In researching
for such scenarios. Such a
solutions, I encountered
law should:
numerous families
One, allow individuals
grappling with similar
to appoint a PoA holder in
challenges. Without clear
advance; two, define the
legal guidelines, families of
authority of the PoA holder,
incapacitated persons
activated upon confirmed
(ICPs) must endure
mental incapacitation;
prolonged and costly court
three, create an
processes just to
independent
Clearly define the medical panel to
access their
authority of the
loved ones’
verify mental
PoA holder, which incapacitation
finances. Courts
usually appoint a should get
and activate the
activated upon
close relative as
PoA; four,
guardian, but the confirmation of
provide a clear,
mental
process is tiring,
court-supervised
incapacitation by process for
complicated,
an independent
and involves
appointing
strict monitoring medical panel
guardians if no
to avoid misuse.
PoA holder was
Surprisingly, India still
chosen earlier; and five,
lacks clear laws for
ensure accountability and
appointing a guardian for
supervision to protect the
mentally incapacitated
incapacitated person’s
adults. Regulators like the
interests and dignity.
Securities and Exchange
The United Kingdom’s
Board of India (Sebi) and
(UK) Mental Capacity Act of
the Reserve Bank of India
2005 serves as an excellent
(RBI) have rules to help
model. Organisations like
physically incapacitated
the Moneylife Foundation
individuals, but these
advocate for similar laws in
solutions do not extend to
India. Their extensive
mental incapacitation.
research (bit.ly/ 4jij6NV)
Internationally, the issue is
compares practices in
managed through
five countries — United
“durable” or “lasting”
States, Canada, Australia,
power of attorney (PoA),
the UK, and Germany —
which remains valid even if
and shows how far India
the person granting it loses
still needs to go.
Truth be told, with
India’s senior citizen
population growing, such
legal safeguards have
become critical. These
citizens don’t seek
government funds; they
simply want reassurance
that their twilight years
won’t become a nightmare
of helplessness despite
having enough financial
resources.
Given my family’s
history, I have taken
several precautions. My
spouse and I jointly own
all movable assets on an
“either-or survivor”
basis, ensuring that either
of us can manage the
assets independently if
needed. We are also
selling immovable
properties where joint
ownership does not
resolve the mental
incapacitation issue.
But personal
precautions alone are not
enough. My father’s ordeal
taught me that preparation
brings peace of mind only
when backed by
supportive laws — without
them, awareness alone is
inadequate. I sincerely
hope the organisations
striving for these crucial
legal reforms succeed. I
hope to see these
regulations implemented
in my lifetime — and
God willing, never have
to use them.
The writer heads Fee-Only
Investment Advisors
LLP,a Sebi-registered
investment advisor;
X: @harshroongta
1
QUICK TAKE: PRESTIGE ESTATES RAISES NEW PILLARS OF PROFIT
The Smart
NEW DELHI |
MONDAY, 7 APRIL 2025
Investor
(Stock price in ~)
1,900 Prestige Estates Projects has shed 32% over the past
1,600 three months, but Motilal Oswal Research is holding
1,127.05 1,300 firm on its ‘buy’ call. The developer has carved out a
foothold in the Mumbai Metropolitan Region and is
1,000
now turning to the National Capital Region and Pune
Jan 3,'25 Apr 4,'25
to tap new revenue streams, the brokerage said
Markets were closed on Jan 4
1,660.10
LOOKING UNDER THE HOOD
WEAK NUMBERS KEEP ER&D MAJORS IN NEUTRAL FOR Q4
RAM PRASAD SAHU
Mumbai, 6 April
Pure-play ER&D firm
L&T Technology Services
Cyient
KPIT Technologies
Tata Elxsi
Tata Technologies
P
ure-play engineering research and
development (ER&D) firms lagged
behind their information technology (IT) services peers in calendar year
(CY) 2024, hit by US election-related
uncertainty, weak demand across
sectors, and delays in client decisionmaking. That underperformance may
extend, with a soft January-March
quarter likely and modest projections for
CY 2025. ER&D stocks have already
dropped over 20 per cent on average
since early February.
Girish Pai of BOB Capital Markets
says deceleration and no-growth risks
are rising, and the Street hasn’t fully
priced in the earnings downside. Tariff
hikes — including retaliatory ones —
and fiscal tightening in the US could
force further earnings revisions even
into 2026-27 (FY27), where the Street is
still pencilling in a rebound.
For now, attention is on the JanuaryMarch quarter numbers. Kotak
Institutional Equities (KIE) expects steep
revenue declines in the transportation
vertical across Tata Elxsi (TELX),
Tata Technologies (TTL), and L&T
Technology Services (LTTS). Cyient,
TTL, and TELX are expected to post
revenue drops both sequentially and
Source: Kotak Institutional Equities
year-on-year.
LTTS is likely to report a seasonal
uptick in organic revenue, while KPIT
Technologies may see growth ease. Weak
demand and broader sector worries are
set to pressure margins and could weigh
on what is typically a stronger AprilJune quarter. KIE has a ‘sell’ or ‘reduce’
call on all the ER&D firms it covers.
Given the cautious sentiment and
earnings downgrades, the premium that
ER&D leaders command over midcap IT
names has narrowed — from a threeyear average of 60 per cent to 15 per cent,
according to Antique Stock Broking —
and may compress further.
Within the ER&D space, brokerages
flag higher risk for the retail and
manufacturing verticals, including
automotive, electronics, and chemicals,
‘A bottomless pit’:
Current climate
mirrors chaos of
2020 black-swan
event, say analysts
From 106 companies at
halfway mark, number
slipped to 86
PUNEET WADHWA
FRIDAY’S MARKET TREADMILL:
The current market environment LOCKED IN A LOSING LOOP
New Delhi, 6 April
THIN AIR
AT THE TOP
Just 5 reach
the trillionplus crest in
FY25’s toughest
climb yet
Number of
companies
Source: Capitaline
THE FY25 CAROUSEL
THE SPIN CYCLE NEVER STOPPED:
Who got on, who slipped off
Addition
Mazagon Dock Shipbuilders
Solar Industries India
Max Healthcare
United Spirits
Indian Hotels Company
Torrent Pharmaceuticals
Shriram Finance
Divi’s Laboratories
Bajaj Holdings & Investment
Shree Cement
Cholamandalam Investment
and Finance Company
Subtraction
IndusInd Bank
Adani Total Gas
Indian Overseas Bank
Canara Bank
Zydus Lifesciences
Dr Reddy’s Laboratories
Union Bank of India
Tata Consumer Products
-
SAMEER MULGAONKAR
mirrors the turmoil of 2020 during
the black-swan event, with markets
sinking into panic driven by
uncertainty, according to analysts.
They suggest that the announcement of tariffs by US President
Donald Trump has trapped markets
in a bottomless pit for now, forecasting further declines in the near
future, though occasional pullbacks
are expected. Investors, they
recommend, should use market
dips as opportunities to buy for the
long term but should spread their
investments over time.
Structurally, inflation is set to
rise, while growth is expected to
slow, said Jyotivardhan Jaipuria,
founder and managing director of
Valentis Advisors. He believes
tariffs have placed the global
economy in uncharted territory,
stoked by fear of the unknown.
“Bond markets expect the US
Federal Reserve to cut rates as fears
of a dwindling economy tied to tariffs grow. Friday’s drop in the US
markets was largely driven by
China’s retaliatory measures. As
things stand, the market’s bottom
remains unclear, much like during
the pandemic in 2020. Volatility will
persist. Investors should avoid
lump-sum investments and instead
stagger them,” Jaipuria advised.
US stocks fell for the second
consecutive day on Friday
after China retaliated to President
Index
Nasdaq Composite
Dow Jones Industrial Average
NSE Nifty 50
Even as markets prepare for the new financial year, SANDEEP NAYAK, executive
director and chief executive officer at Centrum Broking, shares insights with
Puneet Wadhwa in an email interview. He discusses how the ‘Trump reset’ is not
yet fully reflected in markets and that its full impact will become clear over the
next quarter in terms of its effect on countries and sectors globally. Excerpts:
fully priced in, and its full
impact will become clear
over the next quarter.
The outlook for Indian
equity markets is construcAre the risks for the
SANDEEP NAYAK
markets more from global
tive. The gross domestic
ED & CEO,
developments or local?
product growth for FY26 is
Centrum Broking
India’s growth outlook has
estimated at around 6.5 per
improved, supported by
cent, and the earnings
high-frequency indicators. As the margrowth for Nifty for FY26, based on
ket adjusts to this uncertain new norconsensus estimates, is around 10 per
mal, caution is advised. Exposure to
cent. The valuation of Nifty, at just
largecap stocks is a safer bet. Equities
under 20x forward, is slightly below
are likely to face volatility, and the key
long-term averages. At the headline
question is how one can use this vollevel, the markets seem fairly valued.
atility to accrue shares in solid comTwo approaches will be critical for
panies whose prices fall due to weak
outperforming in the year ahead: first,
sentiment rather than any deteriorabottom-up stock selection in growth
tion in their business prospects.
sectors of the Indian economy, and
second, leveraging volatility and
Which sectors and stocks will
correction phases to add fundamentally
retail and institutional investors
solid stocks where price declines do
focus on over the next year?
not reflect any change in company
Domestic consumption stories that
fundamentals.
are insulated from global uncertainties
Domestic factors are largely priced
should perform well. With the
in. However, the Trump reset is not yet
Trump’s reciprocal tariff announcement, imposing a 34 per cent tariff
on US imports.
The Nasdaq Composite dropped
5.8 per cent to 15,588, officially
entering bear market territory
(down 22 per cent from its
December 2024 peak), while the
Dow Jones Industrial Average
plunged by 2,231 points, or 5.5 per
cent, to 38,314.86 — its largest
single-day drop since June 2020.
The S&P 500 also fell 5.97 per cent
to 5,074.
Besides markets, analysts
cautioned that tariff impositions,
supply-chain disruptions, and the
global growth slowdown would also
impair corporate earnings.
“Overall, earnings growth is
expected to slow, with Nifty
earnings per share likely to face a
further 3-4 per cent cut in 2025-26,
reducing it below our previous
growth forecast of 12 per cent.
Sectors such as defence, electronic
manufacturing, real estate, utilities,
and power may experience minimal impact,” said Jitendra Gohil,
2025-26: MARKET
OUTLOOK & STRATEGY
 Outlook: Positive for 2025-26
 GDP growth: 6.5% estimate
 Nifty earnings: 10%
growth forecast
chief investment strategist at
Kotak Alternate Asset Managers.
While the tariff imposition
marks a critical moment for the
world economy and markets,
analysts observed that the
future hinges on how China, India,
Russia, and other emerging
markets coordinate to weather
this onslaught.
“I believe that over the next two
or three years, India will emerge
much stronger. In the short term,
however, we should brace for
another 10 per cent correction,
which is my personal outlook,”
Gohil said.
Technically, the Nifty has
broken all major price and moving
average supports, indicating
further downside potential.
“The immediate support lies at
22,600, while a decisive breach
could open the door to 22,100. On
the upside, any recovery would
likely face stiff resistance in
the 23,100–23,400 zone,” said
Ajit Mishra, senior vice-president
of research at Religare Broking.
banks have undergone a long
consolidation over the past few years,
and have borne the brunt of foreign
portfolio investor selling.
Another sector driven by domestic
factors and shielded from international
developments is India’s healthcare and
diagnostics. The increasing awareness
among Indians about preventive
healthcare bodes well for this sector,
making it an area of growing
investor interest.
How do you see FY26 playing out for
the Indian broking sector?
 Valuation: Nifty at 20x, fair value
 Strategy: Stock selection
+ capitalise on volatility
 Domestic factors: Priced in
 Trump reset: Impact to unfold
 Geopolitical risk: Short-term,
buying opportunity
individual tax relief measures
introduced in the Budget, consumer
staples and fast-moving consumer
goods stocks are expected to benefit
from demand growth in the next year
or so, with this momentum likely
extending into 2026-27. Financials look
appealing from a top-down perspective, given the expected 6.5 per cent
growth for the next two years and a
strong credit growth backdrop.
April 4, ’25
15,588
38,315
22,904
% CHANGE
One-day
Two-day
-5.8
-11.4
-5.5
-9.3
-1.5
-1.8
Source: Bloomberg
‘FY26: A market-share grab year for broking’
What’s your outlook for
the Indian stock markets
for 2025-26 (FY26)?
while other segments could see milder
order slowdowns.
The automotive segment, already
under strain from a tech shift and soft
demand, now faces new challenges — a
proposed 25 per cent tariff by the US and
expected countermeasures from other
countries. These could disrupt supply
chains, raise costs, delay capital expenditure, and trigger steep volume drops.
In a recent note, KIE analysts led by
Kawaljeet Saluja flagged rising caution
among automotive original equipment
manufacturers (OEMs) on R&D
spending as policy risks compound
demand uncertainty. Companies say
peak investment is behind them, and
Tier-I suppliers aren’t counting on better
conditions in CY 2025. The Trump-era
tariffs, they add, are likely to intensify
short-term cost-cutting efforts. KIE sees
limited scope for a quick recovery in deal
pipelines, which could weigh on
2025-26 (FY26) prospects.
ICICI Securities has downgraded
ER&D stocks, citing mounting concerns
in the automotive sector. Analysts led
by Ruchi Mukhija say the space remains
under pressure from weak demand,
Chinese OEM competition, and tariffdriven input cost spikes.
If the slump drags on, revenue
growth could slip to high single digits in
FY26-27 — a stark contrast to the over
20 per cent gains during the previous
automotive upcycle.
ICICI Securities has downgraded
Tata Elxsi to ‘sell’ from ‘hold’. It also cut
TTL to ‘sell’ (from ‘add’), LTTS and
KPIT to ‘reduce’ (from ‘hold’), and
maintained a ‘hold’ on Cyient.
Trump tariffs push mkts down
rabbit hole of uncertainty
JUST 5 SECURE KEYS
TO THE TRILLION-PLUS
VAULT IN FY25
The ~1 trillion-plus market
capitalisation club saw a net
increase of only five companies
in 2024-25 (FY25), as a sharp
market selloff in the second half
of the year erased earlier gains.
At the end of FY25, 86
domestically listed firms had a
market value above ~1 trillion,
up from 81 a year ago. At the
halfway mark (H1FY25), the
count had peaked at 106, but
a steep decline in stock prices
from late September to early
March pared down the list.
Nearly a dozen companies
joined the club during the year,
including Divi’s Laboratories,
Bajaj Holdings & Investment,
Hyundai Motor India (a recent
listing), Shriram Finance, and
Mazagon Dock Shipbuilders.
Meanwhile, eight companies
dropped off the list: among
them were IndusInd Bank,
Indian Overseas Bank, Canara
Bank, Dr Reddy’s Laboratories,
Adani Total Gas, and
Zydus Lifesciences.
FY25 marked a tepid year for
equities. The Nifty rose 5.3 per
cent and the Sensex 7.5 per cent
— both recording their weakest
annual gains since 2022-23.
The Nifty Midcap 100 and Nifty
Smallcap 100 rose 7.5 per cent
and 5.4 per cent, respectively.
Q4FY25 revenue growth estimates (%)
Q-o-Q
Y-o-Y
13.7
16.8
-0.5
-2.1
2.3
14.4
-5.3
-3.0
-2.7
-2.4
Q4: Fourth quarter; FY25: 2024-25
A YEAR OF NARROW GAINS
MATTHEW D MISKIN
Co-Chief Investment
Strategist, John
Hancock Investment
Management
<
Warning lights flash for ER&D
as auto sector runs low on fuel
ER&D downshifts on
weak Q4, gloomy 2025;
more downgrades loom
“Markets may end up as their own
worst enemy. A drawdown like this
could rattle confidence — and drag
down economic activity”
Interest rates are expected to decline
in FY26. A lower rate trajectory will
affect the net interest margins of
banks, particularly those with a lower
proportion of fixed-rate loans.
From a valuation standpoint, banks
appear reasonably priced compared to
their historical valuations. The top four
private banks and the top two public
sector banks should be part of a wellrounded portfolio. The private sector
It’s a fact that operational costs
continue to rise each year, eroding
margins, and this reality is unlikely to
change for the industry. However,
tailwinds seen over the past five years
are expected to persist, with retail
investors in India becoming more
mature in terms of systematically
allocating funds to equities.
The industry has seen numerous
changes aimed at curbing speculation
over the past year. Alongside these
measures, the market also saw a
correction driven by concerns
about valuations and foreign
investor withdrawals.
The year ahead starts with
headwinds due to sentiment
around global factors. It is likely to
be a ‘market-share grab’ year for the
broking industry.
STREET
SIGNS
Class in session: Sebi schools
investors on money smarts
The Securities and Exchange Board
of India (Sebi) is stepping up efforts
to build financial literacy and
investor awareness. Working with
other financial regulators, Sebi is
developing a Financial Literacy
Assessment Portal under the
National Centre for Financial
Education. The portal will offer
interactive quizzes, analysis tools,
and enrolment programmes aimed
at schools and investor groups.
Chairman Tuhin Kanta Pandey, in
his first public speech, underlined
the need to educate investors and
also outlined plans for a wideranging awareness campaign
focused on cyberfrauds, stressing
the urgency of staying alert online.
US panic meter explodes;
India hits snooze
The Volatility Index (Vix), often dubbed the fear
gauge, is flashing very different signals in the
US and India. On Friday, the Chicago Board
Options Exchange’s CBOE Vix surged 15.29
points, or 51 per cent, to 45.31 — its highest
level in five years — suggesting deep anxiety in
the market. Meanwhile, India’s Vix remained
subdued at 13.76. Traders typically view a
reading above 30 as a warning of turbulent
conditions, often seen around major events
such as elections or credit scares. Despite the
calm in India, analysts caution that it might
not last. “The US Vix shows markets have
entered a phase of sharp swings, and India
could follow, even if the Vix hasn’t picked it up
yet,” said one analyst. The jump in US volatility
follows a 10 per cent selloff over two days,
triggered by concerns over President Donald
Trump’s sweeping tariffs and the risk of a
recession. The Nifty ended the week down
2.6 per cent at 22,904.
The odd couple: FPIs, DIIs
become partners in pullback
In an uncommon move, both foreign portfolio
investors (FPIs) and domestic institutional
investors (DIIs) turned net sellers on Friday,
dragging the benchmark Nifty down 1.5 per
cent and wiping out ~10 trillion in market
capitalisation. Provisional data shows FPIs
offloaded stocks worth ~3,484 crore, while DIIs
pulled out another ~1,720 crore. This kind of
synchronised exit marks a break from the
usual pattern where one steps in while the
other retreats. The last time both were net
sellers was on December 16, 2024. Market
watchers see this unusual alliance as a red
flag. In 2024-25, FPIs have sold stocks worth
~1.27 trillion, while DIIs — mainly mutual funds
— have put in a record ~6 trillion.
Contributed by
SAMIE MODAK & KHUSHBOO TIWARI
EVENTS THIS WEEK
Date
Events
Apr 9
 India: RBI Monetary Policy
 US: Weekly Mortgage
Applications Survey
Apr 10
 US: Core Consumer Price
Index, Jobless Claims, Federal
Reserve Budget Balance
 UK: RICS House Price Balance
 China: Consumer Price
Index and Producer Price Index
 Results: TCS
Apr 11
 India: Industrial Production
 UK: Industrial Production,
Balance of Trade
Sources: Bloomberg, exchange
Compiled by BS Research Bureau
TOP BULK DEALS
Date
Apr 1
Apr 1
Apr 3
Apr 3
Apr 3
Apr 3
Apr 4
Apr 2
Apr 2
Apr 2
Apr 3
Scrip
Client
Price (~)
Galaxy
ICICI Prudential 2,092.0
Surfactants
Mutual Fund (B)
Galaxy
ICICI Prudential 2,092.0
Surfactants
Mutual Fund (B)
Balaxi Pharma Unico Global
68.0
Opportunities
Fund (S)
Anzen India Chryseum
106.3
Energy
Advisors (B)
Anzen India Discovery Global 106.3
Energy
Mauritius (S)
Balaxi Pharma Nexpact (B)
68.0
NACL
Mridul
135.2
Industries
Dhanuka (S)
Bright Outdoor Aegis
499.9
Media
Investment
Fund (B)
Bright Outdoor Ashish Pannalal 499.9
Media
Nanda (S)
NACL Industries Triveni Trust (S)
123.1
SAR TeleVenture Vikas Kataria (S)
294.5
(B) Buy (S) Sell
Source: Exchanges
14 MONEY MANAGER
NEW DELHI | MONDAY, 7 APRIL 2025
1
>
GUEST COLUMN
K V KARTHIK
What global
finance must
do to fight
digital fraud
The digital revolution in financial services has
reshaped customer interactions, offering
unmatched convenience, speed and
accessibility. However, this progress has also
fuelled a sharp rise in financial fraud, making it
imperative for banks and financial institutions
to proactively adopt cutting-edge risk mitigation
techniques.
The Reserve Bank of India’s (RBI’s) annual
report for 2023–24 shows a worrying increase in
fraud, with 36,075 cases reported, involving
losses of ~13,930 crore. Deloitte India’s ‘India
Banking Fraud Survey 2021’ reveals that nearly
40 per cent of fraud cases are linked to digitaland cyber-related issues. Similar trends have
been observed globally, with financial regulators
highlighting rising incidents of digital fraud. For
instance, the US Federal Trade Commission
reported that in 2023 alone, American
consumers lost nearly $9 billion to digital fraud.
Fraud methods have become sophisticated,
challenging traditional detection systems.
Phishing remains widespread, deceiving
customers into revealing sensitive information
through cleverly disguised emails and
messages. Malware and ransomware continue
to disrupt financial institutions, causing
substantial operational losses. Social
engineering attacks, flash fraud exploiting realtime payment systems, fraudulent mobile
applications, and mule accounts further
A framework comprising technology,
regulatory compliance, customer
education and strategic collaboration
across sectors, will reduce the risks of
fraud in global finance
complicate the landscape.
The RBI has strengthened regulatory
frameworks. Its updated Master Directions on
Fraud Risk Management (2024) stresses on a
cohesive regulatory framework through
comprehensive governance, including Early
Warning Systems, dedicated fraud detection
units, board-level oversight, fair classification of
fraud cases and streamlined compliance
processes. The RBI’s Digital Lending Guidelines
(2023) set stringent standards, mandating
explicit transparency on fees, interest rates and
clear identification of digital lending partners.
Financial institutions and regulators
worldwide are using technology-driven
solutions that incorporate artificial intelligence
(AI) and machine learning. Regulators such as
the European Banking Authority advocate for
AI-powered real-time transaction monitoring,
recognising its ability.
Biometric authentication methods —
including fingerprint scans and facial
recognition — are gaining traction globally.
Regulators such as the UK’s Financial Conduct
Authority recommend biometrics for protection
against identity theft and unauthorised account
access.
Predictive analytics has become crucial in
detecting fraud. Institutions use big data
analytics to identify subtle fraud indicators by
continuously analysing transaction patterns
and customer behaviour.
Multi-Factor Authentication (MFA)
continues to be a widely endorsed method. MFA
reduces unauthorised access risks through
layered authentication involving passwords,
PINs and biometric data.
Robust data encryption is also universally
acknowledged by global regulators, such as the
European Union’s General Data Protection
Regulation and the Payment Card Industry Data
Security Standard, to protect sensitive customer
information.
A critical component in fraud prevention is
customer education. The RBI has emphasised
the importance of consumer awareness within
its digital lending guidelines, urging institutions
to educate borrowers about safe lending
practices and potential risks.
Combating digital fraud requires
coordinated efforts at multiple levels. Crosssector collaboration between financial
institutions, global regulators, law enforcement
agencies and technology providers significantly
enhances collective resilience.
In conclusion, addressing digital financial
fraud requires a balanced and integrated
approach combining advanced technologies,
robust global regulatory compliance,
comprehensive customer education and
strategic collaboration across sectors. Such a
holistic framework not only reduces fraud risks
but also fortifies customer trust, safeguarding
global finance.
The writer is Partner (Forensic & Financial Crime) at
Deloitte India. The column has been edited for space
From the
shop floor
Change is underway in the
deployment of point-of-sale
devices, but the business may
need a tweak, reports
RAGHU MOHAN
T
wo years ago, Worldline (India)
— the Indian arm of the
French payments firm —
launched VABOX (Voice Alert Box):
Merchants would get instant audio
alerts on settlement of UPI (Unified
Payments Interface) payments via
QR codes in the language of their
choice when customers checked out.
It took the point-of-sale (PoS) device
ecosystem nearly two decades to
reach 10 million in deployments,
whereas UPI sound boxes are at 12-14
million installations already.
“This growth trajectory is
expected to continue, with sound
boxes projected to reach 40 million
over the next five years. We have
recognised the shift. The focus is on
sound boxes and we have three lakh
[300,000] devices. Our goal is to
scale this to a million over the next
two years,” says Ketan Patel,
cofounder and chief executive
officer (CEO) of Mswipe, one of the
largest non-bank deployers in the
country. The big change underway,
as Ramakrishnan Ramamurthy,
chief delivery and operations
officer at Worldline (India), views it,
is the sound box driving the next set
of innovations: value-adds,
embedded payments, check-out
experience, in-system integrations,
and comprehensive reconciliation.
“The transition from card-present
to card-not-present, and customerpresent to customer-not-present
can also be enabled through
embedded solutions like link-pay,”
he says.
On the ground
What does deploying sound boxes
lead to? It eliminates the need for
merchants to check their phones for
verification. For fast-moving and
high-footfall shops, it enables
merchants to manage multiple
transactions at once, reducing
delays and disputes. The real-time
confirmation builds efficiency and
trust, keeping operations smooth
and allowing the merchant to focus
on business. This has been helpful
for barbers, grocers, food stalls,
salons, and pharmacies, where high
activity and limited staff can make
manual payment verification
impractical.
The dynamics of in-store
payments are being hewed again;
this has implications for fortunes in
retailing. Boston Consulting Group
estimates the sector will be at $1
trillion by 2027. Merchant onboarding will be of singular
importance in this journey. For what
needs to be pencilled is the skew: We
have far more pieces of plastic to
swipe with — 982 million debit and
108 million credit cards in January
2025 — relative to the places to
swipe at. This is because the number
of PoS terminals, the swipes on
them, the kind of cards used, the
volumes and value of transactions,
at malls like Palladium in Mumbai
or DLF Emporio in New Delhi, far
outstrip the same at millions of
smaller outlets.
Blame this poor run-rate on the
one-time hardware cost of around
~10,000 plus monthly charges at
~300 or so, to onboard merchants.
Now, link this with the fact that
there’s nothing you incur by way of
investments to do so via QRs and
merchant apps. In March, UPI had
19.78 billion transactions (up 14 per
cent over February) with a value of
~24.77 trillion (up 13 per cent). Here
again, Mintoak — a merchant
software as a service platform that
enables banks to engage with
merchant payments and commerce
apps — is taking the fight to
PhonePe and Paytm. The four
catalysts to where we are at:
“The focus is on
sound boxes. Our
goal is to scale
this to a million
over the next
two years”
KETAN PATEL
Cofounder & CEO,
Mswipe
“A calibrated approach
[is needed] where MDR
is applied to medium
and large merchants
with a certain
threshold”
RAMAN
KHANDUJA,
Co-founder &
CEO, Mintoak
TOP DEPLOYERS OF
PoS MACHINES
Kotak Mahindra Bank 1%
Canara Bandhan
Yes Bank
Bank Bank
1%
1% 1%
IndusInd
Bank 2%
State Bank
of India
15%
BANKS' SHARE IN
PoS UNITS
DEPLOYED
Others
4%
Foreign banks
0.40%
Public-sector
banks
17.40%
RBL Bank
21%
Axis Bank
20%
HDFC Bank
17%
Private-sector
banks
82.2%
ICICI Bank
18%
Source: Worldline's 'India Digital Payments Report 2H 2024'
Reliance Jio, which crashed data
pricing (smartphones existed
earlier but data got democratised);
the government’s move to knock off
the merchant discount rate (MDR)
on transactions up to ~2,000 on the
Rupay platform (it’s another matter
that this affected PoS deployers);
cashbacks on UPI (think Paytm,
Amazon Pay, Google Pay, PhonePe
or a Cred); and the big boost to
digital payments after the
coronavirus pandemic.
But what do sound boxes mean
for legacy PoS devices? As Sumit
Chopra, chief operating officer at
Pine Labs, views it, there can never
be a one-size-fits-all approach. Pine
Labs Mini offers the dual
functionality of a QR sound box and
card payment acceptance from a
single device. Its touchscreen
devices have software
enhancements to help merchants
upsell products through in-built
equated monthly installment
integrations, run loyalty
programmes, leverage utility
applications, and address other
operational requirements. An
interesting aspect is the use of
biometrics for authentication
purposes for disbursal of loans by
shadow banks. “The possibilities
are endless and PoS terminals will
continue to find newer and
interesting use cases,” says Chopra.
Sticking point
The move in the Union Budget of
July 2019 to go in for zero MDR on
RuPay debit-cards-UPI on
“The possibilities
are endless and
PoS terminals will
continue to find
newer and
interesting
use cases”
SUMIT
CHOPRA,
COO, Pine Labs
transactions of
up to ~2,000;
and the issue of
free UPI
transactions,
continue to be in
the spotlight.
The MDR is a
percentage of
the transaction
size which is
shared by the
card-issuing
bank, the network
— be it Visa,
MasterCard or RuPay —
and the acquiring entities —
be it banks, or non-banks like
Mswipe Technologies or
Paytm. In the case of Rupay UPIdebit cards, without MDR income,
the business of PoS providers and
payment service providers is under
pressure. While the government has
proposed that the Reserve Bank of
India and banks absorb the lack of
MDR inflow (even as there are
several ways for banks to recover
such costs), there is no way for PoS
deployers to recoup it. Again,
neither the Nandan Nilekani report
(2019) nor the Ratan Watal
Committee (2016) made a case for
zero-MDR, but said it should be
determined by market forces.
The industry has all along taken
the stance that it would be better to
give an MDR exemption on RuPay
UPI-debit cards to all merchants
with turnovers of up to ~20 lakh
rather than on ticket-sizes of up to
~2,000 at all outlets. They believe
that this will give relief to smaller
merchants, but at larger outlets, the
MDR should hold even if it is up to
~2,000. As matters stand, the
“positive discrimination” sought to
be achieved in the first place is
getting distorted because the
government picks up the tab for the
larger merchants who can afford to
absorb the MDR. There is growing
stress on the payments
infrastructure and a sustainable
model is the need of the hour.
“A calibrated approach where
MDR is applied to medium and
large merchants with a certain
threshold can strike the right
balance. Many of these merchants
already have an outgoing MDR and
are better positioned to absorb the
cost,” points out Raman Khanduja,
cofounder and CEO, Mintoak.
It is a mixed message from the
shop floor.
“The big change
underway is that the
sound box is driving
the next set of
innovations”
RAMAKRISHNAN
RAMAMURTHY,
Chief Delivery
& Operations
Officer,
Worldline
(India)
‘State-run banks can do more for affordable housing’
The Indian Mortgage Guarantee Company (IMGC) — the only of its
kind in the country — has guaranteed over ~8,700 crore in FY25,
up 40 per cent over FY24. The total guarantees written by the company
are at about at ~35,000 crore. IMGC aims to ramp up its portfolio
five-fold to ~1 trillion over the next few years. MAHESH MISRA,
managing director (MD) and chief executive officer (CEO) of IMGC,
spoke with Raghu Mohan over the phone on issues facing the
home loan sector. Edited excerpts:
Can you give us a sense of the stress
level in home loans?
Isn’t it comforting that the
underlying asset is appreciating,
and provides a cushion?
We are starting to observe early
warning signals, particularly in
Price appreciation matters if the
affordable housing. But I wouldn’t
property is being viewed as an
necessarily classify it as stress just
investment. In recent years, the
yet. Housing finance is dominated
percentage of those buying homes
by banks, which account for about
for self-occupation has increased
70 per cent of this business, but it is
significantly, and speculators have
the housing finance companies
almost vanished. So while it’s true
(HFCs) which are more involved in
that the asset appreciates, this
the affordable segment; and
doesn’t offer much solace
many of them rely on
to borrowers living in the
advanced analytics to monitor
home who have to manage
risks. One key observation is
their repayments.
that individuals with higher
MAHESH MISRA
leverage are seeing their credit MD & CEO, IMGC
What explains the
bureau scores deteriorating. If
reluctance of some banks
someone had a score of 740
to venture into affordable
three years ago, they are now
housing even as they are fine giving
defaulting on unsecured loans,
out unsecured loans?
which could eventually impact the
There are two dichotomies here.
ability to repay home loans. That
First, affordable housing
said, home loans generally hold a
has higher unit
higher priority in repayment
economics —
hierarchies as these are typically
underwriting a ~2 lakh
self-occupied homes. So, while
loan costs almost the
delinquencies are slightly higher,
same as
this is mainly due to overunderwriting a ~45
leveraging, especially in the selflakh loan. It involves
employed segment.
lending to a riskier
segment; and requires a specific set
of underwriting skills that banks
don’t necessarily have or want to
develop, such as assessing cash
flows instead of declared incomes.
Additionally, not all lending
institutions have the same level of
collateral comfort. HFCs are willing
to take more risks on collateral,
including the likelihood of
demolition. State-run banks are
already committed to other
financial inclusion initiatives like
Mudra and opening of JanDhan
accounts; and don’t have a specific
mandate to grow affordable
housing.
The second dichotomy arises
from government policy. The
government has launched a
guarantee programme for loans up
to ~20 lakh for borrowers with
annual incomes of ~6 lakh or less, to
promote affordable housing. At the
same time, the Reserve Bank of
India has revised the priority sector
lending (PSL) guidelines, raising the
cap for PSL-eligible housing loans to
~50 lakh from ~20 lakh. This change,
while understandable due to
inflation adjustments, creates an
inconsistency in messaging. On one
hand, the government promotes
low-ticket home loans; on the other,
banks now have an easier route to
meet PSL targets by giving out
bigger ticket home loans.
What share of IMGC-guaranteed
loans are under the Pradhan Mantri
Awas Yojana (PMAY)?
Nearly 85 per cent of the loans we
guarantee fall under the PMAY. For
affordable housing to grow, staterun banks must start taking it more
seriously. Currently, the average
ticket size for a housing loan from
them is around ~30 lakh. Unless
banks focus on the ~10-15 lakh loan
segment, growing affordable
housing will remain a
challenge. Moreover, half
of the housing loans
availed of are
concentrated in the top
five or six cities. There’s significant
untapped economic potential if
these banks begin to expand their
reach to smaller geographies and
take on higher risks. Right now, most
state-run banks heavily favour the
salaried segment; and the selfemployed segment is often underserved. While programmes like ours
can act as a backstop to mitigate risk,
the mindset around lending to the
self-employed segment remains
cautious.
What has been the recent trend in
sign-ups for IMGC’s support?
We now have more than 25 lenders
onboard, and in the last quarter of
FY25, signed up three new lenders:
GIC Housing, Bank of India, and a
HFC we hadn’t worked with
previously. We’ve guaranteed over
~8,700 crore in FY25, which is nearly
a 40 per cent increase from last year.
The total guarantees we’ve written
are approximately ~35,000 crore.
Until now, we’ve only guaranteed
home loans, but we’ve recently
received approval to guarantee
other products, such as loans
against property, provided they are
backed by residential collateral.
Further, the National Housing Bank
has launched a securitisation
company, RMBS Development
Company, which will improve
liquidity. As this market accelerates,
we will likely play a role by
guaranteeing tranches, making the
overall structure more capitalefficient.
TAKE TWO 15
NEW DELHI | MONDAY, 7 APRIL 2025
<
.
A PINCH OF SUGAR?
Expect a 25-bp rate cut,
but no change in stance
As crushing season comes to a close, there’s concern that
sugar production levels might not be all that sweet
As headline inflation moves closer to RBI’s target, and growth
momentum remains elusive, a rate cut may be on the cards
SANJEEB MUKHERJEE
New Delhi, 6 April
I
Prices & payments
Isma also estimates that sugar consumption in
2024–25 will be around 28 MT, down from 29
MT last year. The dip is attributed to the absence
of the election-related bump that typically
boosts sugar demand.
Millers, meanwhile, are confident that retail
prices would hover around ~43-44 per kg –
almost the same as last year.
Ballani said the biggest highlight this season
was that they’d cleared almost 99.9 per cent of
last year’s cane dues, and also settled nearly 80
per cent of current season’s dues. He credited
In March, the US Federal Reserve side). It dropped to 5.48 per cent in
kept policy rates unchanged, November and further to 5.22 per
extending the pause that began in cent in December.
Analysts expect CPI to decline
January after three successive rate
cuts. It preferred to wait and assess further in March to around 3.5 per
the impact of US President Donald cent. Overall, for the fourth quarter
Trump’s economic policies. The of FY25, inflation could average
Fed is now closely watching two key below 4 per cent, compared with
factors: Is inflation heading towards the RBI’s estimate of 4.4 per cent.
the 2 per cent target? And is the US For the full year, it is expected to be
economy weakening more than around 4.6 per cent, again below
the RBI’s projection of 4.8 per cent.
what the central bank expected?
Assuming a normal monsoon, a
For the second consecutive
time, the Fed has held borrowing stable rupee, and soft global crude
costs steady after bringing them prices, inflation could align with
down to the 4.25–4.5 per cent the RBI’s 4.2 per cent estimate
range in December 2024 — a level for FY26.
The last pollast
seen
in
icy
was
December 2022.
announced on
The Fed’s latest
February 7. On
projections signal
that day, the doltwo rate cuts durlar traded at Rs
ing the current
87.59. Since then,
year, but the marthe rupee has
ket is expecting
strengthened.
more as the econLast Friday, it
omy may weaken
ended at ~85.23
more than anticito the dollar,
pated and inflation
after hitting an
could turn out to
intraday high of
be higher.
~84.95. The last
The Bank of
time the dollar
England also kept TAMAL BANDYOPADHYAY
traded below ~85
its policy rate
unchanged at 4.5 per cent in its was on December 18, 2024.
Bond yields have also been movMarch meeting, factoring in rising
global trade uncertainties that ing southwards. The 10-year paper
escalated into a full-blown trade yield was 6.7 per cent on February
war last week. It had previously cut 7. Last Friday, it was 6.47 per cent,
the policy rate by 25 basis points below the 6.5 per cent level, last
seen in January 2022. At the shorter
in February.
There was no surprise in the end, 364-day treasury bill yield
decision to hold rates, but Bank of dropped from 6.54 per cent to 6.3
England Governor Andrew Bailey per cent during this time.
The most critical change is seen
was explicit about the rate outlook
when he said the Bank still believed in liquidity. Since mid-December
rates were “on a gradually declining 2024, the system was facing a
path”. Economists expect two more liquidity shortage, which at one
rate cuts this year, with the first point reached ~3.3 trillion. After a
likely in May. Inflation remains little over four months, by April,
we’re seeing surplus liquidity — it
above the 2 per cent target.
China, too, kept its policy rates was around ~2.16 trillion last
unchanged in the third week of Thursday. As a result, the RBI
March, after a 25 basis point cut in refrained from conducting a 14-day
October 2024. Its central bank has variable rate repo auction that day.
Against this backdrop, it’s
been balancing a modest pickup in
growth with pressure on the cur- safe to bet on yet another rate cut
rency amid an escalating trade war. this week.
In February, the RBI cut the repo
What’s the Reserve Bank of India
rate by 25 basis points (bps) to 6.25
(RBI) expected to do this week?
First, let’s examine what has per cent — the first cut since May
changed in India since the 2020, when it slashed the rate by
40 bps to 4 per cent amid the Covid
February policy announcement.
The Consumer Price Index (CPI) crisis. It was also the central bank’s
inflation data for March will be first rate move since February 2023,
released after the policy meeting. when the rate had been raised to
In February, it had dropped to a 6.5 per cent. (One basis point is a
seven-month low of 3.61 per cent, hundredth of a percentage point.)
However, there was no change
down from 4.31 per cent in January.
Food inflation was at its lowest level in the monetary policy stance in
since May 2023, even as core infla- February; it remained neutral. RBI
tion (non-food, non-oil) edged up. Governor Sanjiv Malhotra’s first
The CPI trend has been on a policy also offered no forward guiddownward trend since October, ance. He did, however, commit to
when it hit 6.21 per cent — piercing providing sufficient liquidity. He
the upper band of the RBI’s infla- said the RBI would monitor evolvtion target (4 per cent with a 2-per- ing liquidity and financial concentage-point margin on either ditions, and take proactive meas-
SEASONAL STORY
Estimated sugar balance
sheet for 2024-25
(Oct ’24 to Sep ’25) in million tonnes
8
Opening
Stock
26.4
Net sugar
34.4
Total
production*
availability
28
Internal
consumption
1
Exports
5.4
Closing
stock
*After providing for ethanol diversion; the cooperative mills have estimated a net sugar production of 25.9 million tonnes and
closing stocks at 4.4-4.8 million tonnes
Source: Indian Sugar and Bio-Energy Manufacturers Association (Isma)
the government’s timely decision to allow 1 MT
of exports, enabling farmers to receive nearly
~21,000 crore in payments between January
and March.
Once the full export quota of 1 MT is shipped,
the sugar sector is expected to earn approximately $500 million in revenue, Ballani added.
Echoing Isma’s view, Tarun Sawhney, vice
chairman and managing director of Triveni
Engineering and Industries Ltd, dismissed talk
of supply shortage due to drop in production as
disinformation.
He said the decision to allow exports was a
well-thought-out move — “I wish it had been a
bit more.” It helped push up prices slightly in a
market where the Fair and Remunerative Price
and State Advised Price have been consistently
rising, while sugar prices have remained flat,
he said. A 2–3 per cent increase isn’t significant,
he added, but it makes a difference.
He stressed the importance of exports in
keeping India linked to the global sugar market.
“Now that we’re in the game, I hope we’re
allowed to export next year as well.”
Festive worries?
Sawhney also downplayed concerns around the
early arrival of Diwali (around October 20) and
its potential impact on consumption and stock
levels. In fact, he argued that an early Diwali
could prove beneficial. “Sugar factories usually
wait for Diwali, and then start their operations,”
he said. “So, Diwali coming early means we’ll
have an early start, which means you’ll have
more fresh sugar in the market.”
He also expressed optimism about exports,
pointing out that the bulk of outbound shipments would take place in April and May, likely
fetching favourable prices as global sugar markets begin to firm up.
“Northern mills have sold off nearly 95 per
cent of their allocated export quotas,” he said.
The remaining volumes are now with traders,
and usually get executed through direct dealings, he added.
One factor that could influence sugar policy
decisions is the upcoming election in Bihar.
According to political observers, the polls are
likely to be held in early October. Any sharp spike
in sugar prices during the festival-heavy months
of Diwali and Chhath could weigh on the elec-
STATSGURU
Trump Tariffs:
Hopes & fears
toral prospects of the ruling government.
Though the broader industry maintains that
sugar production will be sufficient to meet
domestic consumption and ethanol requirements, some remain concerned about availability during the crucial festival window from
August to October.
Senior industry officials estimate that after
accounting for domestic consumption of 28.5
MT, 1 MT of exports, and 3.2–3.5 MT of diversion
to ethanol, the domestic closing stock by endSeptember could be 4.4–4.8 MT — creating a
touch-and-go situation right in the middle of
peak festive demand.
While that level of stock can cover the first
two months of consumption, any further drop
in production could complicate things, said one
senior industry official.
His own production estimates were currently aligned with those of the cooperative sector — around 25.9 MT. However, a further dip
of 100,000 tonnes remains possible as some
mills have been diverting sugar to produce Extra
Neutral Alcohol, drawn by its high market
prices, he added.
Adding to regional concerns, he pointed out
that most of the 4.4–4.8 MT of closing stock
would likely be located in North India, which
could cause a shortfall in Maharashtra
and Karnataka.
Ganesh Chaturthi kicks off the festive season
in Maharashtra from August, so the supplydemand balance in the western and southern
regions could be tight, he said.
BANKER’S TRUST
A case for early crushing
To preempt potential shortages, the official recommended that the central government introduce incentives for mills to begin crushing earlier for the 2025–26 season.
Crushing typically begins in November, with
new sugar arriving in the market from
December, he said. “But if mills are incentivised
for the loss in recovery due to early crushing,
they can start sugarcane crushing from October
1 itself,” the official said. This, he added, would
not only ensure that fresh sugar enters the market earlier, but would also enable the full utilisation of closing stocks.
The months ahead will unfold the sugar
story, whether sweet —or not so.
SHIKHA CHATURVEDI
& YASH KUMAR SINGHAL
US President Donald Trump has
imposed a “concessional” 26
per cent general tariff on imports from India.
Many say this will give New Delhi a distinct
advantage over competitors in certain sectors.
India is not a major player in the US market
– 10th-biggest with a share of just 2.68 per
cent in the US’ total imports in 2024 (Chart 1).
Electrical machinery & equipment is India’s
top category of exports to the US, followed by
gems & jewellery, precious & semi-precious
stones, including pearls, and pharmaceutical
products (Chart 2).
After tariffs, India may get an edge over
China, Vietnam and Bangladesh in textiles. But
China and Vietnam were way ahead of India in
the US’ textile imports in 2024 (Chart 3).
In the automobile component sector,
India's position is even
weaker. Mexico takes
the lion’s share of the
US’ imports of auto
parts, followed by
Canada and China.
While India struggles in
this space, it might now
be hurt further, as the
first two countries have
been exempted in the
recent tariff hikes
(Chart 4).
Pharmaceuticals
remain India’s strength in
the US. For now, these will
continue to benefit from a
steady demand, as no new
trade barriers have been
imposed on them (Chart 5).
Even as India runs a trade
deficit with the rest of the
world, it has consistently
managed a surplus with the
US (Chart 6).
1 INDIA AT 10TH SPOT IN US IMPORTS
ures to ensure orderly liquidity.
Malhotra has indeed been walking the talk. The RBI has been infusing liquidity through dollar-rupee
buy-sell swaps, daily variable rate
repo (VRR) auctions of varying tenures, and open market operations
(OMOs) — buying government
bonds from banks and releasing
rupee liquidity.
First, it introduced long-term
VRR auctions of 42, 49, and 56 days,
infusing ~1.83 trillion to ease liquidity deficit. Since January, it has conducted OMOs worth ~2.5 trillion.
Second, an additional ~80,000
crore in OMOs has been
announced, to be conducted in
phases till April 29.
The third liquidity tool has been
three-year dollar buy-sell swaps.
Through $25 billion in forex swaps,
the RBI has injected about ~2.15 trillion into the system.
The RBI is expected to continue
deploying different tools to infuse
liquidity to ensure the transmission
of rate cuts. Post a rate cut without
a change in the policy stance, the
RBI will keep the door open for
either a pause or another rate cut
in June.
Changing the stance at the juncture may be unwise when a fierce
global trade war is unfolding before
us. While its impact on India is still
being assessed, the positive signals
for now are subdued inflation and
the fact that the worst is behind the
rupee, at least for the time being.
This has created breathing room
for the RBI, despite global uncertainties. It could go for a rate cut,
maintain a neutral stance, and keep
liquidity taps open until government spending picks up.
In February, the RBI projected
India’s real gross domestic product
(GDP) growth at 6.7 per cent for
FY26. For FY25, it cited the National
Statistical Office’s first advance estimate of 6.4 per cent. These projections are unlikely to change at
this point.
Since January, central banks in
several emerging markets —
including Australia, Indonesia,
New Zealand, South Korea, Taiwan
and Thailand, besides India — have
cut policy rates. While New Zealand
opted for a 50 bps cut, the others
have made 25 bps reductions. This
trend is expected to continue.
As headline inflation moves
closer to the RBI’s target, and
growth momentum remains elusive, the central bank could follow
up with more rate cuts. Will it,
for sure? Ask US President
Donald Trump.
The writer is an author and senior
advisor to Jana Small Finance Bank
Ltd. His latest book: Roller Coaster: An
Affair with Banking. To read his
previous columns, please log on to
www.bankerstrust.in
X: @TamalBandyo
2 61% OF INDIAN EXPORTS
TO US BELONG TO 6 MAJOR CATEGORIES
Country-wise imports by US
Share of major exports out of total Indian exports to US (in %)
Items
FY21 FY22 FY23 FY24 FY25*
Electrical machinery & equipment
5.33
4.7 8.65 14.29 14.88
Mineral fuel, oil & its products
2.23
6.7 8.68 7.52 5.54
Pharmaceutical products
13.89 8.49 8.71 10.42 11.00
Apparel & clothing articles
11.6 11.54 10.31 9.66 9.96
Pearls & precious/semi-precious stones 16.89 19.25 16.02 12.84 11.70
Nuclear reactor machinery & parts
7.85 7.61 7.65 7.95 8.23
Total
57.79 58.29 60.02 62.68 61.31
Note: USA's total imports in 2024 were $3,267.38 billion.
Source: International Trade Administration website of USA, BS calculations
3 INDIA A DISTANT
THIRD IN US
TEXTILE IMPORTS
24.45 Top countries by share in US
textile imports in 2024 (in %)
15.15
Note: *April-December, apparel and clothing articles include items present in chapters 61, 62 and 63 of
the Harmonised System (HS) code.
Source: Department of Commerce, BS calculations
4 MINIMAL SHARE
5 STRONG SHARE
Top countries by share in the US’ automotive
part imports in 2024
(in %)
India 1.57
41.15
Mexico
9.87
Canada
9.25 8.01 6.42
China
Japan
Korea
8.91
IN PHARMA
India's share in US imports by category in 2024
(in %)
Pharmaceutical Products >
Engineering goods >
Natural pearls & precious stones >
Iron and Steel >
6.06
2 . 5 1 . 45
0
n a few days, most sugar mills across India
will conclude their sugarcane crushing operations for the current season (October 2024–
September 2025). This year, industry watchers
are keeping a close eye on final production
numbers and their potential impact on domestic sugar availability in the coming months.
Typically, cane crushing begins around
November and wraps up within a few
months, but sugar marketing continues
through September, making the entire cycle a
single season.
This time, the supply situation has become
tricky. Net sugar production — after accounting
for diversion towards ethanol — is estimated to
have declined by nearly 16–18 per cent from last
year. The drop is primarily due to disease infestation in Uttar Pradesh (UP) and a prolonged
drought in Maharashtra, the country’s two
largest cane-growing states.
The fall in production has revealed rifts
within the industry, with one section urging
the government to halt the one million tonnes
(MT) of sugar exports allowed in January to
ensure adequate supply during lean months.
They argue that India’s ethanol blending programme, which relies heavily on sugarcanebased molasses, could suffer if domestic
supplies fall short.
However, the Indian Sugar and Bio-Energy
Manufacturers Association (Isma), the country’s
leading sugar industry body, has dismissed fears
of a supply crunch. It maintains that sufficient
sugar will be available to meet both domestic
consumption and ethanol requirements.
In a recent statement, ISMA said though net
sugar production for the 2024–25 season is now
projected at 26.4 MT — down from its January
estimate of 27.2 MT due to lower recovery in UP
and reduced output in Maharashtra — this
shortfall will not affect supply or prices. The
country is expected to end the season with
about 5.4 MT in closing stock — more than sufficient for domestic needs, it said. The closing
stock for the season would, therefore, be higher
than the normative requirement of two months’
production estimated, at 4.5 MT, it added.
ISMA’s confidence comes from a robust opening
stock of 8 MT at the start of the 2024–25 season.
“We will have a very comfortable opening
stock for the 2025–26 season,” said Deepak
Ballani, ISMA’s director general, in an interview
with Business Standard last month. He added
that the next sugarcane crop looks promising,
thanks to a favourable 2024 monsoon and
improved reservoir levels, which have helped
boost planting in Maharashtra and Karnataka.
Consequently, he said, the 2025–26 crushing
season is expected to begin on time in October.
He had added that varietal replacement in UP
and other northern states had shown marked
improvement, which should lead to better yields
and higher recovery rates in the 2025–26 season
in these regions.
Source: International
Trade Administration,
BS calculations
6.97
3.1
3
Source: International Trade Administration, BS calculations
3.83
6 INDIA RUNS A SURPLUS WITH THE US, DEFICIT ELSEWHERE
India's trade balance with US and the rest of the world (in $ billion)
US
INDIA
China
Vietnam
REST OF THE WORLD
Mexico
Bangladesh
Source: International Trade Administration,
BS calculations
Note:* April-December
Source: Department of Commerce
StatsGuru is a weekly feature. Every Monday, Business Standard guides you through the numbers you need to know to make sense of the headlines
16
NEW DELHI | MONDAY, 7 APRIL 2025
>
Medtech sector goes local to ‘Many myths among global clinical
researchers about India capabilities’
develop high-end devices
India has around 8 per cent share of global clinical trials, and several pharma companies take
their early-stage trials overseas due to regulatory bottlenecks here. SEEMA PAI, president of the
Indian Society for Clinical Research (ISCR), in an email interview with Sohini Das, advocates for
more predictable regulatory timelines through streamlined review processes and enhanced
digital infrastructure to enable early clinical development in India. Edited excerpts:
SANKET KOUL
New Delhi, 6 April
W
India’s diverse population is an asset for
clinical trials, offering researchers access
to rich datasets. Why is the Indian
demographic not adequately
represented in global clinical trials?
DATA PULSE
India’s medical device trade data ($ bn) nImports nExports
8.54
8.19
7.49
6.24
5.85
2.29
2.53
2.92
3.39
3.79
2019-20
2020-21
2021-22
2022-23
2023-24
4.26
1.95
2024-25*
*: Data till September 2024, Source: Dept of Pharmaceuticals Report
artificial heart to function for 10 to 12 years
while the patient leads a life of good quality. “A prototype of the artificial heart has
been developed, and we are now in the
process of obtaining all the essential ethical approvals for animal testing, followed
by exacting clinical trials,” the team added.
Following regulatory approvals, the IITK team expects the implantable device to
be ready for commercialisation by the end
of 2027. While a LVAD may cost between
~70 to 80 lakh, IIT-K’s prototype is expected to cost between ~10 to 15 lakhs.
Similarly,
Gurugram-based
SS
Innovations is working on developing a
pediatric surgical robotic system and a
mobile operating room that meets
all required standards necessary to conduct surgery.
Sudhir Srivastava, founder, chairman
and CEO, SS Innovations, said that by making our surgical robotic system indigenously, we have made great efforts to help
bring down the running costs of not only
the system, but for the instruments and
consumables as well.
Experts believe that such indigenous
projects are expected to drive down costs.
Himanshu Baid, managing director of
medical device maker Poly Medicure, said
that one of the primary cost drivers in surgical procedures is the reliance on expensive imported medical devices, which
come with high procurement costs, maintenance expenses, and recurring consumable costs.
“By manufacturing these technologies
within India, costs can be significantly
reduced due to lower production expenses, reduced import duties, and locally
available spare parts and consumables,”
he added. Another industry executive
added that lower device costs directly
translate into reduced hospital charges,
making critical procedures more within
reach for a larger population.
The move towards manufacturing highend devices also assumes significance as
CDSCO last month disallowed all imports
of pre-owned and refurbished devices over
concerns of patient safety, providing a window for domestic manufacturers working
under PLI or their own projects.
Experts indicate that the high-end
devices market was usually dominated by
pre-owned, refurbished devices imported
from countries such as the US, Germany
and Singapore.
Rajiv Nath, forum coordinator of
Association of Indian Medical Device
Industry (AiMeD), said that the move has
provided domestic manufacturers a level
playing field by stopping the import of
refurbished devices, with domestic manufacturers facing reduced competition
from cheaper, imported alternatives.
India is a significant player in global
clinical trials today for all multinational
companies with a footprint in the
country. Most of these companies have
an Indian entity and strive to collaborate
with their global counterparts to place
global clinical trials in India. However,
many myths persist among global
clinical researchers who are unfamiliar
with India’s capabilities, and have not
updated themselves on the country’s
advancements. Local affiliates work to
dispel these myths, but concerns about
regulatory pathways and the
predictability of approval timelines often
remain for global sponsors. While the
2019 NDCT Rules improved processes,
the socialisation may not have reached all
global decision-makers. When planning
global trials where synchronised starts
are critical, sponsors may hesitate to
include Indian sites if they perceive
potential delays.
India has an 8 per cent share in global
clinical trials, as against China’s 29 per
cent. What steps do policymakers need
to take to increase this share?
India should expedite its journey to
become a full member of the
International Council for Harmonisation
(ICH). This would be a step towards more
What kind of discussions are you having
with the Indian regulator, and what are the
key demands of the clinical trial industry?
We are advocating for more predictable
regulatory timelines through streamlined
review processes and enhanced digital
infrastructure. Our engagement with the
Central Drugs Standard Control
Organisation (CDSCO) has been positive
and the collaboration has improved over
time. The interactions are also leading to
acceptability of data generated from
further deliberations on enabling early
Indian participants and eliminate
clinical development in India for all new
redundant requirements. We urgently
discoveries (in India and outside).
need all stakeholders to work together to
Another focus area is capacity
ensure we deliver on our late phase trials
building within regulatory bodies. We've
and further enable first-in-human trials
proposed collaborative training
for internationally discovered molecules
programmes between ISCR, global
in India. This restriction
regulatory experts, and
significantly limits our
Indian authorities to share
participation in early-phase
best practices in reviewing
research, forcing many Indian
complex trial designs and
companies to conduct their
new therapeutic
early clinical development
modalities. The clinical
SEEMA PAI
studies outside India.
research industry's
Policymakers should
primary demands include
President, ISCR
establish dedicated clinical
acceptance of global data
research units within premier institutions standards (CDISC), mutual recognition of
like Aiims and NIPERs, coupled with
inspection outcomes, and India’s full
substantial tax incentives for research
membership in ICH and PIC/S to
and development (R&D) investments.
eliminate duplication of efforts.
Regulatory authorities would also need
support in developing their domain
More on business-standard.com
PM MODI INAUGURATES PAMBAN BRIDGE IN TN
PHOTO: X/@NARENDRAMODI
ith 80 to 85 per cent of the country’s needs for medical devices
currently being met through
imports, both the government and
medtech manufacturers are looking to
accelerate projects to indigenously develop high-end equipment.
Taking steps towards this, the All India
Institute of Medical Sciences (Aiims), New
Delhi, last month announced its plans to
install the country’s first indigenously
developed 1.5 tesla magnetic resonance
imaging (MRI) machine by October this
year. The project is to be trialled in partnership with the Society for Applied
Microwave Electronic Engineering and
Research (SAMEER), an autonomous body
under the Ministry of Electronics and
Information Technology.
Similarly, Bengaluru-based medical
device maker Voxelgrids Innovations,
which claims to be the first and the only
indigenous manufacturer of MRI scanners
in India, has already received a licence
from the Central Drug Standards Control
Organisation (CDSCO) for commercial
manufacture and sales.
According to the Department of
Pharmaceuticals’ annual report for 202425, India imported medical devices worth
$8.1 billion, while exports stood at $3.7 billion in the financial year 2023-24 (FY24).
The move not just aims to increase selfreliance, but also ensure affordability.
Arjun Arunachalam, founder and CEO,
Voxelgrids, told Business Standard that the
company’s MRI machine can cost approximately 50 per cent less compared to the
value and performance of MRI products
offered by other vendors.
On an average, a 1.5 T MRI machine
can cost anywhere between ~3 crore to ~4.5
crore for hospitals.
High-end medical devices include
advanced technologies used for screening,
monitoring, diagnosis, or treatment, often
with high costs and complex functionalities, including devices like PET/CT scanners, MRI machines, and surgical robots.
A seven-member multi-disciplinary
team of experts from the Indian Institute
of Technology (IIT), Kanpur is at the centre
of the development of Hridayantra, country’s first indigenously developed left ventricular assist device (LVAD), which works
as an implantable mechanical blood pump.
The team working at IIT Kanpur said
that the design target aims to allow the
expertise and are also in need of resources
for ensuring they can work together with
the stakeholders to enhance approval
timelines further. We are also lacking in
specialised workforce development
within the industry, and a national
mission to train clinical research
professionals across the ecosystem would
address this gap.
Prime Minister Narendra Modi on Sunday
inaugurated the Pamban bridge, India’s
first vertical-lift sea bridge and flagged off
a train service linking the Rameswaram
island to the rest of the country. Tamil
Nadu Chief Minister M K Stalin skipped the
event. Modi flagged off a Coast Guard ship
that sailed under the bridge and also laid
the foundation stone for various rail and
road projects worth over ~8,300 crore.
Modi said efforts were on to take the Tamil
language and heritage to all corners of the
world. Without naming anyone, the PM
said he gets letters from leaders of Tamil
Nadu and “they do not sign in Tamil”, and
asked them to at least sign in Tamil.
Earlier, the Prime Minister prayed at the
PTI
Ramanathaswamy temple.