HYDERABAD, NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, PUNE* VOL. 19 NO.

84

Monday, April 7, 2025

Think Ahead. Think Growth.

mint primer QUICK EDIT

Will consumer be Big-power

king again as war flares
summer sets in?
China “played it wrong”,
according to US President
Donald Trump, referring to Bei-
jing’s retaliatory 34% tariff on
BY SOUMYA GUPTA American imports in response
An urban slowdown has begun to show in the balance sheets of to his extra levy of that rate as a
consumer goods companies. Earnings previews predict disappointing “reciprocal” barrier to Chinese
numbers for Q4. How will India’s consumer economy close FY25 and goods. This marks a flare-up in
what can we expect from the new financial year? Mint explains. economic warfare between the
world’s top power and its chief
Tepid times challenger. It also makes many
India’s biggest FMCG firms may report largely disappointing numbers but AC economists wonder if China’s
and appliance makers will shine. response was knee-jerk. Its
Estimated year-on-year growth in profit after tax (in %), for Q4FY25 reply to earlier tariff hikes was
nuanced; it seemed aimed at
Honasa (Mamaearth) -54
Tata Consumer Products -32.1
reducing Chinese demand for
Godrej Consumer -19.9 stuff coming from US ‘red
Dabur 0.5 states’. This time too, it could’ve
Hindustan Unilever 2.2 finessed its hit-back to pack a
ITC* 2.4 punch at US producers with
Marico 8.1 minimal recoil impact on its
Blue Star 38 own economy. Does China plan
Voltas 99 to substitute all its US imports?
IFB 164 Maybe it expects to defend its
*Figures adjusted for demerger of ITC’s hotels business Source: IIFL Capital, Nuvama Research bilateral trade surplus and
thwart Trump’s latest tariff,

1 What do earnings
previews predict?
Brokerage firms say they expect
2 What are consumer
companies saying?
Firms are also warning investors
whose rate is based on that gap
as a ratio of its exports to Amer-
ica. Yet, the US-China trade bal-
consumer packaged goods firms to about a consumer slowdown. ance cannot really be kept
report 6-8% growth in sales for Q4 Marico and Dabur told investors in steady. But is it a prelude to a
FY25 although several are likely to a note that rural demand is currency-value battle? Under
see a drop in their Ebitda (earnings growing faster than urban but Trump 1.0’s salvos, Beijing got a
before interest, taxes, inflation and stagnant wages are weaker yuan to shield its export
depreciation, and amortization) hurting sales. Marico said sales of
interests. Under Trump 2.0,
and net profit. Equities brokerage its flagship Parachute coconut oil
firm IIFL Capital said this month were affected as it hiked prices and complexity arises from his mul-
that consumer demand continues reduced package sizes. For Dabur, tiplicity of targets. Action in the
to be “subdued” and that some of a delayed and unusually short currency theatre of war could
the growth in companies’ topline winter hurt the company’s sales as heat up. India must stay alert.
will likely come from price hikes. customers bought fewer bottles of
Besides, the industry’s margins the its Chyawanprash and honey,
will be squeezed because inflation both marketed for the winter
is driving up costs of inputs such as
wheat, coffee, and palm oil.
season. Dabur added that the
general trade channel was hurting
QUOTE OF THE DAY
Trump’s new tariffs may drive even as quick commerce and
these costs further up. supermarkets grew.
We have been clear that we are
HT disappointed by the tariffs. We
don’t think a trade war where
3 Is the situation dire for all
consumer categories?
There are pockets of optimism. Consumer
all of these retaliatory tariffs are
durables companies are expecting a good
in place is good for anyone
year, specially for air conditioners.
Carmakers may also report good sales for
the March 2025 quarter as they pushed
discounts and deals for Eid and Navratri.
The Vahan portal shows passenger vehicle KEIR STARMER
sales for March 2025 grew 5% year-on- UK Prime Minister
year while electric 2-wheelers rose 7%.

4 Are things looking

better for FY26?
There are encouraging signs. An
5 Are there risks to this
turnaround?
Yes. The Met has predicted a
early and extremely hot summer is normal monsoon, but will release
expected to drive sales of ACs and an official update later this month. INSIDE
fans. Nomura wrote in a note this Both deficit and surplus rains
month that AC primary sales likely could hurt rural areas that are Mark to Market | EM earnings brace for
grew by 20-25% in the March fuelling consumer demand. tariff wrath >P4
quarter after forecasts of a fierce Besides, the aftershocks of Global | Inside Elon Musk’s shock-and-
summer. Besides, AC makers like American tariffs on goods and the awe months in the White House >P8
Blue Star said they will likely hike resulting global uncertainty could
Money | Dated tax trick or secret weapon:
prices this month. Similarly, hurt jobs and income growth in
Can indexation still pack a punch? >P11
leading car makers including India’s export-oriented industries.
Hyundai and Maruti Suzuki have In the long run, these changes Views | Are startups failing us? Look at
hiked prices. Besides, the RBI’s could hurt discretionary incomes the big picture >P12
Monetary Policy Committee is of urban, premium consumers, Business of Life | How sleep can make or
likely to cut rates again this week, slowing growth in consumer break your career >P14
boosting consumer demand. demand.

THE WEEK AHEAD

7-12 APR

Q4 EARNINGS MPC MEETING

7-9 APR

The March-quarter earnings season kicks off, Will RBI continue cutting rates? Monetary Policy
with TCS set to announce its results on 10 April Committee’s first meeting for FY26 to be held
8-10 APR
7-10 APR

PRESIDENT ABROAD FM IN UK
Droupadi Murmu to visit Portugal and Slovakia, a India-UK FTA, Bilateral Investment Treaty likely to
first for an Indian president in nearly 3 decades be discussed during FM Sitharaman’s London visit

TARIFFS STRIKE FOMC MINUTES

9 APR

9 APR

US’ additional tariff on select nations, with 26% on The minutes of the FOMC’s last meeting to be
India, kicks in. Counter-measures by some likely released against the backdrop of US tariff moves

ZOMATO REBRANDING CHINA TRADE DATA

12 APR
9 APR

Zomato to formally start trading as ‘Eternal’ on China exports slowed more than expected in 2025
BSE and the National Stock Exchange amid trade war with US. Was March different?
 PLAIN FACTS

Skilled Indians drive

the remittances story
BY HOWINDIALIVES.COM

I
ndiaistheworld’slargestrecipientofremittances,with$119.5billionreceivedin2023.Indiaalsohasthelargeststockofinter-
nationalmigrantsintheworld,estimatedbytheUnitedNationsat18.5millionin2024,followedbyChinaat11.7million.But
while India has been a big recipient of remittances for a couple of decades now, shifts are unfolding within.
“TheshareofadvancedeconomiesinIndia’sinwardremittanceshasrisen,surpassingtheshareofGulfeconomies,reflecting
a shift in migration pattern towards skilled Indian diaspora,” India’s central bank said following a recent survey that tracked
trends and patterns in remittances for 2023-24.
As a share of gross domestic product (GDP), India’s remittances, at 3.4%, is similar to that of Mexico, but much lower than
countries such as the Philippines (about 9% of GDP). For China, remittances are far less important, accounting for just 0.2%
of its GDP. Remittances will continue to be important for the Indian economy, given key trends in the global population.
Currently, India accounts for around 18.6% of the global working-age population (aged
20-65 years). According to UN estimates, this is estimated to creep up to around 19% by Liked this
2040,bywhentheshareoftheworking-agepopulationinhigh-incomeandupper-middle- story?
incomecountriesisprojectedtofallbysixpercentagepoints.Thus,notwithstandingaback- Share it by
lash against foreign-born migrants in many high-income countries, the demand for scanning the
migrants to fill crucial gaps in the workforce in those countries will only persist. QR code.

India's status as the world's largest recipient India's share of the world's working-age
of remittances remains intact population is projected to keep rising
Remittances received (in $ billion), top seven countries Share of world population aged 20-65 years (%)
2025 2030 2040
125 India Mexico Philippines France
China Pakistan Bangladesh
High-income, upper
middle-income countries
100

Africa

75

India

50
Least-developed
countries

25
China

0 0 10 20 30 40 50 60
2001 2023
Data does not add up to 100% due to overlapping categories.
Source: World Bank Source: UN Population Prospects, medium-variant projection

High-Income Tilt Fewer Indian migrants from advanced

nations send bigger share of money
IN 2023-24, the US remained India’s largest source of Share of Indian migrants in 2024
remittances by country, accounting for 27.7%, up from 23.4% in Share of Indian remittances in 2023-24
2020-21 and 23% in 2016-17, as per the Reserve Bank of India In %
(RBI). Five high-income countries taken together—the US, the Gulf countries*
UK, Singapore, Canada, and Australia—accounted for about 52%
of India’s remittances in 2023-24, while hosting around 36% of all US
migrants from this country. UK
In contrast, the set of six Gulf countries, the other major
destination of migrants, accounts for 45% of the number of Singapore
Indian migrants, but 38% of remittances. Jobs in the Gulf are Canada
more blue-collar in nature, in sectors like construction.
Australia/
Thus, on average, migrants from high-income countries send New Zealand
more, reflecting their higher pay levels and the fact that migrants 0 10 20 30 40 50
to these countries tend to be more skilled, working in white- *Constitutes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE.
Source: Reserve Bank of India, United Nations
collar jobs like software development.

Maharashtra, Kerala and Tamil Nadu

receive the largest share of remittances
Richer Destinations
Share of remittances received in 2023-24 (in %) MAHARASHTRA, KERALA and Tamil Nadu accounted for
Maharashtra about half of the remittances received in 2023-24. However,
Kerala Maharashtra’s share fell from 35.2% in 2020-21 to 20.5% in
Tamil Nadu 2023-24, which may reflect the effects of economic conditions
Telangana of covid. In pre-covid 2016-17, for which RBI has published
Karnataka data, Maharashtra’s share of remittances was 16.7%. From 2016-
Andhra Pradesh 17 to 2023-24, Karnataka’s share fell the most: from 15% to 7.7%.
Delhi NCT “Maharashtra, Telangana and Punjab accounted for the
Punjab largest number of Indian students migrating abroad for
Gujarat education and staying back for employment opportunities,
Uttar Pradesh which is reflected in the increasing share of these states in
Haryana India’s inward remittances,” RBI said in its report.
Others It’s worth noting that almost all the top recipient states for
0 5 10 15 20 25 remittances are relatively more prosperous, with Uttar Pradesh
Source: Reserve Bank of India
being the only lower-income state in the top 10.

Size Bias Remittances above ₹5 lakh in size

dominate the total share
THE RBI survey shows that about 70% of remittances are of less Share in remittances received by India (in %), by size
than ₹ 50,000. High-value remittances (above ₹5 lakh) account Value Volume
for 28.6% of total remittances received, but only 1.4% of the total 10.7 1.5 1.4
number of remittances. In other words, high-skilled migrants, 40.6 31.4 14.5
earning high incomes, are the main remitters to India. However, 28.6
to an extent, this may be an artifact of the way data is compiled. 26.3
The survey covers data from banks, money transfer companies
and cross-border remittance fintech firms. The average cost of 15.6 15.7
sending $200 to India is around 4.9% or $10.
While this is lower than the global average, it may be high for 9.2
low-income workers, nudging them to cheaper means of 4.6
transfers such as hawala. Such remittances may not be captured
in data compiled by RBI. As more countries raise protectionist
<₹16,500 ₹16,500- ₹50,000- ₹1-3 lakh ₹3-5 lakh >₹5 lakh
barriers and scrutiny, remittance figures should be watched. 50,000 1 lakh Source: Reserve Bank of India
howindialives.com is a database & search engine for public data
PARAS JAIN/MINT

MINT VIDEOS
MINT DEEP DIVE MINT MONEY TALKS MINT MONEY
China has Jim Walker, Two things
been hit by chief econo- that you must
34% tariffs. mist at do in the first
With 20% Alethia Capi- week of April
earlier and talwasamong arecontribut-
now 34%, it those who ing to PPF
takes the predicted the and NPS—
total tariff on 2008 reces- ₹1.5 lakh and
China to 54% by the US. Trump has sion. Today, he says he would be ₹50,000 respectively. Though these
also imposed high tariffs on Chinese amazediftheUSdoesn’tenteranother instruments are not entirely tax
routes like Myanmar (44%), Vietnam recession soon. Why does he say that, exempt under the new regime, they
(46%) and Laos (48%). But what’s the rationale still are good savings
with these moves, is behind how tariffs affect instruments and still offer
Trump actually helping businessandmarkets,and attractive benefits. Neil
China in the long term? is there any way out of it? Borate explains how.
 HYDERABAD, NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, PUNE* VOL. 19 NO. 84 Rs. 15.00 16 PAGES

Monday, April 7, 2025

Decoding g Trump’s ‘liberation Kotak’s Upadhyaya

p y y trusts
livemint.com day’ tariffs uP10 domestic-focused biz uP4

SENSEX 75,364.69 0.00 NIFTY 22,904.45 0.00 DOLLAR ₹85.24 ₹0.00 EURO ₹93.64 ₹0.00 OIL $65.58 $5.63 POUND ₹110.71 ₹0.00

New-look digital bill RBI may cut repo,

keep policy stance
You may get
to buy ETFs
DON’T MISS
MINT

on China, US
may spare startups unchanged: Poll in GIFT City
Srushti Vaidya & Anil Poste
Centre plans to cut list of categories, and raise the thresholds Gopika Gopakumar MUMBAI
[email protected]

A
ISTOCKPHOTO MUMBAI new investment route
Gireesh Chandra Prasad
BILL CHECK is opening up for Indi-

A
GIFT Nifty signals sharply lower
[email protected] combination of easing ans keen to invest in
NEW DELHI inflationary conditions exchange-traded funds (ETFs)
opening; retail, HNIs may suffer

T
and tightening eco- tracking global indices, but are Retail and high-net-worth investors, with
heCentremayreworkthe nomic growth may prompt exasperated by the higher pri- large bullish positions open on Nifty and
digital competition bill to India’s central bank to cut the ces they shell out now thanks Bank Nifty derivatives, could bear the brunt
of a sharp correction on Monday if the
spare a big chunk of policy rate in the upcoming to the limited availability of markets were to open as signalled by GIFT
Indian startups from meetingofitsrate-settingpanel, such funds in India. Nifty’s steep drop at closing on Friday. >P4
heavy regulation, two according to a Mint poll of 10 Stock exchanges in Guj-
people aware of the matter said. economists.Addedexpectation: arat's GIFT City have sounded
Thedraftbillhadproposedbring- more rate cuts may happen this out multiple Indian asset man- Prestige hotels arm to file for
ing nine types of digital businesses year than earlier anticipated. Falling inflation has created agement companies (AMCs) to ₹2,000-2,500 cr IPO this month
under its ambit, if these businesses The economists unani- space for an RBI rate cut. REUTERS gauge their interest in intro- Prestige Hospitality Ventures Ltd, part of the
crossed certain thresholds of finan- mously predicted that the ducing ETFs tracking major Prestige group, is likely to file draft papers
cialstrengthandmarketreach.Now, Reserve Bank of India’s (RBI) However, only three out of American and Chinese indi- this month for an IPO to raise up to ₹2,500
the list of businesses may be monetary policy committee the 10 economists polled ces, three people aware of the crore, aiming to fast-track expansion in the
trimmed and the thresholds raised (MPC) would announce a 25 expect a change in policy matter said. If the AMCs backdrop of India’s thriving hospitality and
sothesmallerfirmscanbreatheeas- basispoints(bps)cutintherepo stance to ‘accommodative’ indeed launch such products, tourism market. >P6
ier, the people cited above said on rate to 6% after it meets from 7 from ‘neutral’ at present. An Indian investors will able to
the condition of anonymity. to 9 April, as inflation and accommodative stance indi- buy them just like local stocks, Tata Motors braces for impact
The move comes a year after the growth estimates undershoot cates RBI is ready to support and at a lower price than they as JLR stops US shipments
corporate affairs ministry released EASE ONLINE earlierforecasts.Further,econ- growth by reducing interest pay for ETFs now.
Tata Motors Ltd’s decision to pause exports
the draft bill and the report of an THE bill had proposed HIGH thresholds to GOVT is reviewing omists from Barclays Bank did rates. "We have held a couple of of Jaguar Land Rover (JLR) cars to the US for
expert committee that helped pre- bringing nine types of keep small businesses the segments to be not rule out even a 35-bps cut. “The path for further policy discussions with them April raises concerns for both the company’s
pare it. The ministry has received biz under its ambit out of the law’s ambit covered by the law It would be the second suc- easing appears quite clear and (exchanges) about launching volumes and financial performance this fiscal
feedback from various startups dur- cessive cut in repo rate after 7 straightforward, with growth ETFs which give access to year, as well as for the broader auto sector
ing this period. February, when the MPC, likely to be seen in a range global markets. Currently, that sees the country as a key market. >P6
“Theneedforex-anteregulations ered by this statute may need to be action after a problem arises. headed by new RBI governor which is deemed non-infla- these talks are preliminary in
by way of a digital competition law recalibrated because the start-up The proposed law will also man- SanjayMalhotra,finallycutthe tionary, headline inflation nature as we need to take a look
was confirmed by both the Parlia- ecosystem cannot be disrupted,” date periodic compliance reporting repo rate by 25 bps, the first likely to be sub 4% for next few at the back-end for these offer- NOTE TO READERS The Media
mentary Standing Committee on said one of the two persons cited bydigitaleconomyfirmsdesignated such cut since May 2020. A months, and the pressure on ings," said an official at an AMC.
Finance and the expert committee above. as ‘systemically significant’ or mar- basispointisone-hundredthof exchange rate coming down Emails sent to exchanges Marketing Initiative on Page 3 is the
equivalent of a paid-for advertisement,
on digital competition law. It is very Ex-ante regulation establishes ket gatekeepers. a percentage point, and the substantially,”saidRahulBajo- NSE IX and India INX which and no Mint journalist was involved in
muchonthetable.Boththefinancial rulesbeforepotentialanti-competi- The bill had proposed that a busi- repo rate refers to the rate at ria, head of Indian and ASEAN operate in GIFT City, as well as creating it. Readers would do well to treat
andmarketreachthresholdsandthe tive behaviours surface, unlike which RBI lends money to it as an advertisement.
specific market segments to be cov- ex-postregulation,whichprescribes TURN TO PAGE 6 commercial banks. TURN TO PAGE 6 TURN TO PAGE 6
02 MONDAY, 7 APRIL 2025
HYDERABAD ECONOMY & POLICY LIVEMINT.COM

STRAIGHT
F O R WA R D
Insurance laws bill likely to be US to see
major impact
SHASHI SHEKHAR

Respond to this column at

[email protected]
tabled in monsoon session of tariff, says
Kaushik Basu
IS A NEW AYODHYA- Bill was delayed as finance ministry sought to add provisions on FDI, ease of operational issues
PTI
[email protected]

LIKE PLAN BREWING

NEW DELHI

F
ormer World Bank chief
Subhash Narayan & Rhik Kundu ble while encouraging insurers to economist Kaushik Basu

IN RSS BACKROOM? NEW DELHI develop tailored, affordable products, on Sunday described the

T
while also enhancing risk management reciprocal tariffs imposed on
he Insurance Laws (Amend- capacity, accelerating tech adoption approximately60countriesby
ment) Bill, which proposes and expanding the customer base, the Trump administration as

O
ne winter evening in 1989, the Mathura correspondent sweeping reforms, is likely to leading to a strong foundation for long- baffling,sayingthatwhilethese
called me up at the Agra office and said the police had betabledinthemonsoonses- term sectoral growth. tariffs will have some adverse
roughed up some kar sevaks at the police station and sionofParliamentinJuly,two “Beyond financial boosts, the effects on India, the major
stopped them from proceeding to Ayodhya. According to his people aware of the matter toldMint. changes also signal a strategic shift, impact will be felt in the US.
report filed later, a bus from Maharashtra packed with kar sevaks The bill, originally slated for the encouraging a dynamic ecosystem Basualsosaiditisnotreallya
was on its way to Ayodhya when the police stopped it for a check. recently concluded budget session, was where new entrants and established reciprocal tariff as the Trump
The kar sevaks started sloganeering that Ayodhya was just a delayed as the finance ministry sought players alike can thrive,” said Shruti administration calls it, as it is
beginning, and that Mathura and Kashi remained. The police to add provisions on 100% foreign Ladwa, partner and insurance leader, based on the trade deficit the
said it had to use force when an argument with the kar sevaks direct investment (FDI) and ease of EY India. US has with India.
threatened to get out of hand. The kar sevaks denied this version. operational considerations for foreign “While these reforms are a signifi- “ThenewUStariffof26%on
That day, we couldn’t foresee that one day Mathura and Kashi investors, requiring fresh vetting by the cant step toward achieving ‘Insurance India is baffling. While it will
would become as important focal points as Ayodhya of the eight- law ministry before being sent for cabi- for All by 2047,’ their success hinges on have some adverse impact on
ies and nineties. Even when the Ayodhya movement was nearing net and legislative approval. robust implementation and consumer- India,itsmajornegativeimpact
culmination, people believed that law enforcement agencies “Thegovernmentcouldhaveconsid- The Insurance Laws (Amendment) Bill was originally slated for the recently centric policies. Thoughtful execution will be on the US,” he told PTI.
would maintain order. ered an ordinance for immediate concluded budget session of Parliament. BLOOMBERG will be key to balancing growth with Basu, currently the Carl
But on 6 December 1992, that veneer of belief was tattered for- implementation, but since several pro- stability,” she added. MarksProfessoratCornellUni-
ever. No one had imagined then that within a short span of 32 visions required time for regulatory and lation—the Insurance Act, the Life The introduction of composite licen- Interestingly, the draft bill empow- versity in the US, said it is natu-
years, a grand temple would be erected at the site. As the founda- industry readiness, finalizing the bill Insurance Corporation (LIC) Act and ces and approval for 100% FDI will be a ers the regulator Irda to set relaxed ral for a country like the US,
tions of the Ram Temple were being laid, questions popped up with full details before seeking Parlia- the Insurance Regulatory and Devel- shift for the insurance sector, which licensing and capital requirements for which has a currency that is
if Mathura or Kashi were still on the RSS agenda. Leaders of the mentary approval was preferred,” the opment Authority (Irda) Act—paving will allow a single insurer to offer both smaller insurers or single-product enti- trustedandusedworldwide,to
RSS and the BJP shied away from offering a clear answer. first person mentioned above the way for greater autonomy life and non-life products—cur- ties, replacing the fixed capital have trade deficits.
You may remember the controversy surrounding the Gyan- said, requesting anonymity. for the insurance regulator rently permitted only clause with a more flexible, “Hence,thisnewtariffpolicy
vapi mosque adjacent to the Kashi Vishwanath temple. The “With the finance min- and LIC for appointments, through separate entities. consultative framework. looks almost like an effort to
movement was gathering steam when RSS chief Mohan Bhagwat
said there’s no need for a Ram Mandir-style movement anymore.
istry clearing the bill, cab-
inet approval could come 100%
FDI proposed for
office setup and staffing. Composite insurers are
The comprehensive already allowed in Singa-
Key laws the bill will
It also introduces a dif-
ferential licensing 3 erodetrustintheUSdollar,”he
said.
Bhagwat also said targeting new sites and hate-mongering were soon,” the person men- legislative structure will pore, Malaysia and the regime to support micro- Basu also suggested that
unacceptable. It seemed to put an end to the movement, but last tioned above added. the sector by the also eliminate the need UK. revise—Insurance, insurers in serving low- India should not respond by
week RSS general secretary Dattatreya Hosabale said RSS had no The second person said finance ministry for future amendments to A spokesperson for the LIC and Irda Acts income and rural popula- raisingorloweringtariffsonUS
objection to their workers joining movements related to Kashi the bill focuses on ensuring the LIC Act and related laws finance ministry didn’t tions and paves the way for imports.“Indiashoulddowhat
and Mathura. To add weight to his argument, he referred to the clarity and preparedness, toenablecompositelicensing. respond to an emailed query. captive insurers—allowing Europe, Canada and China are
Dharm Sansad organized by the Hindu Mahasabha. In 1984, sad- adding, “A well-rounded bill, The bill proposes key reforms, According to experts, the pro- conglomerates to establish doing,whichistotrytoexpand
hus organized a religious conference called Dharm Sansad backed by full regulatory alignment, including a composite insurance posed Insurance Laws (Amendment) in-house insurers to manage group- trade among themselves. This
demanding the liberation of temples in Ayodhya as well as Kashi was seen as the more prudent path.” licence, simplified entry norms, Bill will deepen market penetration in level risks. is the time for new trade agree-
and Mathura. The Insurance Laws (Amendment) streamlined investment rules and more underserved rural and semiurban For an extended version of this story, ments,” India’s former chief
It would be a mistake to consider it an off-the-cuff statement Bill will revise three key pieces of legis- regulatory powers to set licensing fees. areas, making insurance more accessi- go to livemint.com. economic adviser said.
by Hosable as it came just after the conclusion of Sangh’s All India
Representative Meet in Bengaluru. It’s
The RSS is clear that the RSS is unleashing its
unleashing its
cadre while
cadre while retaining the option of
deniability. It would help them achieve
their goal without maligning their
Starmer vows steps Govt rushes to find demand for e-trucks
against tariff threat
retaining the image. They are masters of this strat-
option of egy. In such a situation people such as Manas Pimpalkhare scheme, the government has
deniability Asaduddin Owaisi can pat themselves [email protected] not notified the PMP for
on their back. They have been airing NEW DELHI e-trucks. In previous consulta-
suspicions that RSS wants to launch Bloomberg sary to protect Britain’s tions,manufacturershadasked

T
movements to regain not only the three temples (Ayodhya, Mat- [email protected] national interest,” Starmer he ministry of heavy the government for a window
hura, and Kashi) but thousands of other disputed places, too. wrote. Labour will “turbo- industries has identified to ensure PMP compliance.

U
The RSS is in the thick of this debate. That’s the reason the day K Prime Minister Keir charge” plans to improve ports, steel, cement and Mint had reported in
Hosable gave his statement, Sangh senior Bhaiyyaji Joshi made Starmer said he’ll domestic competitiveness and logistics as sectors to generate November that stakeholders
an equally important statement. He said the Aurangzeb contro- announce measures stands “ready to use industrial demand for electric trucks hadaskedforan18-monthwin-
versy was raked up unnecessarily. Maharashtra chief minister this week to support Britain’s policy to help shelter British (e-trucks) under the PM dow to comply with the PMP
Devendra Fadanavis echoed the sentiment in a bid to end the fra- economy and businesses amid business from the storm.” E-Drive scheme after turning for e-trucks, a first for such
cas. It’s clear RSS wants to move ahead one campaign at a time. the threat posed by Donald Downing Street will need to up empty-handed in the first vehicles, whenever it is issued.
Those looking at the events from a political perspective are Trump’s tariffs. move quickly as companies are halfofthescheme,accordingto There were 6,158 electric
sure to conclude that RSS will raise the issue of Kashi and Mat- Writing in the Telegraph, already grappling with the fall- twoofficialsawareofthedevel- goodscarriers—thecategoryof
hura during the next Lok Sabha elections. But will it lead to the Starmer said, “The world as we out from Trump’s tariffs. UK opment. trucks on the government’s
revival of those harrowing days we witnessed between 1989 to knew it has gone. We must rise automaker Jaguar Land Rover The ₹500 crore, two-year Vahan portal—sold in 2024,
1992? I am not so sure. In those days Samajwadi Party supremo to meet the moment.” on Saturday said it’s pausing schemefore-trucksissettoend Chinese manufacturer BYD accounted for 82 out of a total of 224 compared with 2,603 such
Mulayam Singh was the chief minister in Lucknow and weak The US presi- shipments of its in fiscal year 2026 (FY26). electric heavy goods carriers sold in India in 2024. units the year before, indicat-
khichdi sarkar (coalition government) was in power in New Delhi. dent last week US President cars to the US as it At the end of the first year, ing a rapidly growing market.
The RSS launched the Ram Mandir campaign to pave the way for a n n o u n c e d Donald Trump last looks at ways to there has been no progress on pletedhalfitsruntimeinFY25. which the government has Of this, in the heavy goods
the BJP to ascend to power. In the changed scenario they don’t sweeping global week announced address the new e-trucks, and the government Thisgivesthegovernmentonly considered sunrise sectors carrier segment in 2024, Chi-
need high-octane street movements. tariffs, including sweeping global trading terms. is yet to notify the localization another fiscal to incentivize such as public transportation nese manufacturer BYD sold
Today New Delhi and Lucknow are both governed by saffron a 10% levy on Measures that norms for these zero-emission automakers and consumers to and trucks. 82 units out of a total of 224
tariffs, including a
governments. A large-scale street protest or movement can dent British goods, could be unveiled vehicles at a time when the adopt electric But reducing units—more than a third. In
their image of strong and efficient governance. The RSS has despite a weeks- 10% levy on as early as this industry has asked for 18 mobility in the At the end of the carbon emissions 2023, BYD sold 268 such units
social media and other outlets to connect with its mass base and long push for an British goods week may include months to comply. commercial vehi- first year, there[s in trucks has not outofatotalof326unitssold—
it could be useful to scale up the issue. People who always see economy deal by emergency Portshavemultipleusecases cle segment. been no progress beenwithouthur- a whopping 82% share—indi-
everything from a political prism can claim Mathura and Kashi the UK govern- reforms to regu- for electric trucks, including Under the PM on e-trucks, and dles. The govern- cating a dominant presence of
issues have been raised for political gains. The assembly elections ment. While the levy was half lation that will cut red tape as the movement of cargo within E-Drivescheme—
the government is menthadstatedin the Chinese in the sector.
in Uttar Pradesh are scheduled for February 2027 and the general that handed to the European well as tax breaks for strug- the port facility. Similarly, the the Centre's third the PM E-Drive As per the scheme notifica-
elections are a distant four years away. The duration is adequate Union, it was enough to gling sectors, the Telegraph cement, steel and logistics sec- electric vehicle yet to notify the scheme notifica- tion, the government had
for RSS and its sister organisations. threaten thousands of jobs and reported separately. The gov- tors rely on trucks for the (EV) subsidy localization norms tion that it would planneda₹150croreallocation
Sangh baiters and supporters can both claim that Kashi and potentially wreck the UK’s ernment is also planning to movement of cargo across the scheme—auto- notify the phased towards e-truck subsidies in
Mathura have been on the RSS agenda since long. But beginning hopes of boosting economic bring forward plans to water country. makerssellEVsto manufacturing FY25, the first year of the PM
with the end in mind, creating contradictions while preparing an growth and battling its way out down electric vehicle targets The government's efforts to consumers at a discount, and programme(PMP)fore-trucks E-Drive scheme, with the
escape route beforehand puts RSS in a class of its own. of stagnation. to ease the burden of net zero mobilize e-trucks come at a the government reimburses at a later stage. PMP means remaining ₹350 crore ear-
Shashi Shekhar is editor-in-chief, Hindustan. Views are per- “This week, the Govern- on the car industry, according time when the ₹10,900 crore the difference. localization norms. markedforFY26.Butnoincen-
sonal. ment will do everything neces- to the newspaper. PM E-Drive scheme has com- The scheme is the first in But, one year into the tives have been disbursed yet.

Centre plans university for public health amid mounting concerns CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Priyanka Sharma and global leadership’ focused demics, and also involves set- we have the National Medical HealthandtheNationalCentre suggestions or complaints
[email protected] on the urgent need for an ting up a public health council Commission, or Dental Com- for Disease Control for taking about errors.
NEW DELHI ‘Indian public health univer- to oversee the work of public mission,etc.Thethirdproposal uniformjointandboard-based
Readers can alert the
sity.’ The meeting was chaired health institutes in India and a is to establish public health decisions. These institutions

T
newsroom to any errors in the
he Centre is planning to by the minister of state for consortium of public health consortium before we form directly report to the Director- paper by emailing us, with your
set up the country’s first health, Anu Priya Patel. institutes in the country. public health university ate General of Health Services full name and address to
dedicated university for Participants included “Covid-19 pandemic has because it is a long process and (DGHS)atthehealthministry,” [email protected].
public health amid mounting expertsfromtheNationalInsti- showntheimportanceandpri- may take time which is being informed the first official.
health concerns in the world tute of Health Family Welfare, orityofpublichealth.Thestan- proposed through an Act of The difference between a It is our policy to promptly
respond to all complaints.
mostpopulousnation,twooffi- the All India Institute of Medi- dardization of public health Parliament. The plan is to syn- university and an institute is Readers dissatisfied with the
cials familiar with the matter cal Sciences, the health minis- courses is lacking. So, the ergizeourworkandtheneedof that a university gets recogni- response or concerned about
said. try, NITI Aayog, the National experts unanimously made the work shoulder to shoulder tionfromtheUniversityGrants Mint’s journalistic integrity may
The proposal under consid- Centre for Disease Control three proposals Indian Public to take fully informed deci- Commission (UGC) while an write directly to the editor by
eration of the health ministry (NCDC), the Indian Institute of The plan is to establish something similar to the US’ Johns Hopkins Health University very sions,” said an official aware of institutehastogetanaffiliation sending an email to
follows an expert group meet- TechnologyinDelhi,theInter- Public Health University and Harvard School of Public Health. urgently because there are the matter. from a university. [email protected]
ingheldlastmonthonthepub- national Institute for Popula- around 50 multiple disciplin- “Till the public health con- Queries sent to the health Mint’s journalistic Code of
lic health situation in India on tion Sciences, the All India Ashoka University. sityandHarvardSchoolofPub- ary cadre courses for which sortiumisformed,theplanisto ministry spokesperson last Conduct that governs our
the topic. Discussions on the InstituteofHygieneandPublic The plan is to establish lic Health in the US. there is no standardization of formacoordinationcommittee week remained unanswered. newsroom is available at
topic of ‘advancing public Health, the Gates Foundation, somethingsimilartotheJohns TheaimistomakeIndiaself- public health. We also need a with the experts from All India For an extended version of www.livemint.com
health priorities, innovation, Johns Hopkins University and HopkinsPublicHealthUniver- reliant to address future pan- public health council just like InstituteofHygieneandPublic this story, go to livemint.com.

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LIVEMINT.COM DEALS, TECH & STARTUPS MONDAY, 7 APRIL 2025
HYDERABAD 03

m THE MONDAY QUIZ

1) WHO has been 2) WHICH IT firm is Air
Pristyn in talks to raise Wipro’s venture
arm banks on AI
up to $10mn for Beatxp
appointed as the new India partnering with to

with new co-chief

global chief information integrate AirTag tracking
officer at IT firm Wipro? into its baggage system?

3) IN which two cities did cloud service provider E2E

Cloud deploy NVIDIA GPU infrastructure last week? Jas Bardia
[email protected]
4) WHICH data centre 5) WHICH fintech BENGALURU
provider launched a new unveiled the ‘Maha- Pristyn Care was trying to raise a higher amount earlier for its fitness arm
W
AI-capable campus in kumbh Soundbox’ with a ipro Ventures’ new
Kolkata last week? payment alert screen? co-managing part-
Sowmya Ramasubramanian ner Ali Wasti is
[email protected] expected to drive a deeper
BENGALURU focus on artificial intelligence
GLOSSARY
H
at the $500-million corporate
ealthtech startup Pristyn venture arm of Wipro Ltd.
Care is in talks to raise a frac- The investment firm
Neuromorphic Comput- standard offering a pro- tion of the money it has been recently appointed Wasti, a
ing: An approach to com- gramming language-ag- trying to secure for about a veteran investor in deep-tech
puting that designs hard- nostic framework for year for its fitness arm, mak- startups, to replace Venu Pem- Wipro Ventures was launched
ware to mimic the neural defining API call sequen- ing the latest negotiations crucial for the maraju, who retired from the in 2015 as strategic investment
structure of the human ces and their interdepend- company’s growth. company last week. arm of Wipro. REUTERS
brain. This technology aims encies. This specification Pristyn, founded as a startup dealing in San Francisco-based Wasti
to enhance computational simplifies the developer minimally invasive surgeries, is in talks to was previously with Hewlett founder of Constellation
efficiency and processing experience by addressing secure $7-10 million for Beatxp, its fitness- Packard Enterprise, where he Research, a California-based
capabilities, particularly for common issues such as tech business that sells massage guns and was senior managing director tech consulting firm.
tasks involving pattern rec- poor documentation and weighing scales. Negotiations are on with andglobalheadofinvestments Wipro did not reply to que-
ognition and sensory data workflow orchestration. investors like current backer Peak XV Par- at Pathfinder Ventures, HP’s ries emailed on Saturday.
processing. tners, two people in the know said. venture arm. Wipro Ventures was launc-
Vibe Coding: An The specifics of the deal are being In his new role, Wasti will hed in 2015 as an investment
approach to programming worked out and a term sheet is expected to (L-R) Pristyn Care co-founders Dr. Vaibhav Kapoor, Harsimarbir Singh, and Dr. Garima work alongside Biplab Adhya, arm of Wipro to gain a toehold
where artificial intelli- be signed in two weeks, one of them said. Sawhney. Wipro Ventures’ co-managing in startups that threatened the
gence handles most of the “The deal has been in the works for partner who has been with the dominancethatITservicepro-
coding tasks. Developers some time now and is likely to be finalized fundraising weren’t disclosed. those executives were senior VP finance investment firm since it was viders had in the space.
interact with code using in two weeks. The funding will be Pristyn Care is dealing with senior-level Prabhat Agarwal, senior VP business and started a decade ago. Although Over the years, automation
simple prompts, voice reflected in the books of Beatxp,” this per- exits, with Shaloo Varma, senior VP of operations Tarun Bansal, senior VP Wasti joined Wipro Ventures and the sprouting of startups
commands, or by provid- son said. “If it goes through, the funding medical directorate, being the latest. human resources Srinivas P. Reddy, and in January, the company has developinginnovativesoftware
ing error messages for will help Beatxp extend its runway and Varma has resigned and is serving notice, marketing head Gagan Arora. notyetpubliclyannouncedhis productshastakenatollonthe
Quantum Benchmark- automatic resolution. This scale to reasonable levels till such time a said the two people mentioned above, Founded in 2018 by Singh, Vaibhav appointment. work done by IT outsourcers,
ing: A process initiated by method aims to make cod- larger round comes in.” speaking on condition of anonymity. Kapoor, and Garima Sawhney, Pristyn AnMBAfromHarvardBusi- whichemployanarmyofengi-
organizations like DARPA ing more accessible and “Pristyn Care’s growth depends on Varma, who was in the role for 4.5 years, Care’s core business involves operating a ness School, Wasti began his neers to oversee such work.
to evaluate the potential efficient, though it raises Beatxp,” said an investor on condition of according to her LinkedIn profile, did not network of hospitals and clinics via part- career at IBM. At Pathfinder When Wipro Ventures inv-
and performance of vari- concerns about learning anonymity. “After scaling ners. In 2021, Pristyn gained Venturesforoverfouryears,he ests money in a startup, it takes
ous quantum computing depth and security vulner- down smartwatches, (Bea- BALANCING ACT its unicorn tag when it raised focused primarily on artificial the startup’s offerings to
approaches. The goal is to abilities. txp’s) sales have stagnated, $100 million in Series E funds intelligence, data infrastruc- Wipro, which then sells those
determine whether quan- which makes this funding IN Feb last year, NEGOTIATIONS THE specifics are from Tiger Global Manage- ture and cybersecurity, per his to its clients—allowing Wipro
tum technologies can Phygital Convergence: round crucial.” A spokesper- to the firm was looking are on with several being worked out ment, Hummingbird Ven- recent LinkedIn post. tomakemoneyfromitsinvest-
raise $50-75 mn at investors including and a term sheet is
achieve utility-scale opera- The integration of physical son for Peak XV Partners a valuation of about existing backer expected to be tures, and others at a post- Pemmaraju,whoco-steered ments and the startups to gain
tions, where their compu- and digital experiences, declined to comment. Harsi- $400 mn for Beatxp Peak XV Partners signed in two weeks money valuation of $1.4 bil- Wipro’s venture arm for a dec- accesstoWipro’ssteadypoolof
tational benefits outweigh creating environments marbir Singh, Pristyn Care’s lion. In February Mint quoted ade and invested in companies clients.
operational costs. where online and offline co-founder and CEO, did not Singh saying, “We have like Vicarious, Tradeshift, and “While in the past there was
interactions complement comment on the fundraising plans. respond to Mint’s queries. “We don’t com- slowed that business down because even Lilt,announcedhisretirement a heavy investment in automa-
Arazzo Specification: A each other to enhance user The deal being negotiated is much ment on conjecture about our team,” though we were the youngest and fastest on LinkedIn on 2 April. tion and cybersecurity, I
community-driven API engagement. smaller than what the Gurugram-based Singh said. “Most senior leadership has in the market to grow in smartwatches, we AnanalystattributedWasti’s believeWiproisrampingupon
healthtech startup set out to raise. In Feb- been here for 4+ years, and this is for a believe there is less scope for innovation, appointment to Wipro Ven- not only AI investments but
ruary last year, Mint reported that the firm 5-year-old company, and we are very IP and design in that market.” Beatxp is tures’ focus on AI. alsoverticalinvestmentsgoing
4) ST Telemedia Global Data Centres 5) Paytm was looking to raise $50-75 million at a proud of it.” In February, Mint reported banking on sportswear and shoes for “With a big focus on AI, I forward,” said Wang.
1) Kenny Kesar 2) Apple Inc. 3) Delhi-NCR and Chennai valuation of $400 million for Beatxp. In that a host of senior executives had growth, which will be for premium audi- believe they are looking for Wiprorecentlyinfused$200
THE MONDAY QUIZ ANSWERS: December, Mint reported that Pristyn resigned from Pristyn Care, presenting a ences, Singh had added. someone with more of a soft- million into Wipro Ventures.
Care was looking to raise as much as $100 fresh challenge to the startup that has For an extended version of this story, go to ware background and proven For an extended version of
million. Beatxp’s valuation in the latest been scrambling to raise funds. Among livemint.com track record,” said R. Wang, this story, go to livemint.com

Meta MINT MEDIA MARKETING INITIATIVE

releases Mutual fund investment approach

new Llama M
utual funds have
become a popular
option for many
4 AI models investors. However, compre-
hensive due diligence must
p r e s e n t s
be undertaken before invest-
Bloomberg
ing. Investing in mutual
[email protected]
funds involves much more
Mr. INVESTOR

M
than simply buying the top
eta Platforms Inc.
performing funds as there is
announcedtherelease
ofitsnewLlama4arti-
no guarantee that these will Mr. MUTUAL FUND Ms. INVESTOR
ficialintelligencemodels,built continue to deliver impres-
on what the company says is sive returns. A solid invest-
one of the world’s most adva- ment approach is essential risk tolerance, you can select 1 year, 3 years or 5 years. Look for a long duration as this is
nced large language models. as it can make a significant funds that are in harmony for consistency in returns crucial in optimising returns
AtthecoreofthenewLlama difference in achieving your with your financial aspira- and compare the fund’s per- and minimising risks. It also
4 family is Llama 4 Behemoth, financial goals. tions.The initial step in iden- formance against its bench- provides greater opportuni-
a two-trillion-parameter LLM tifying the appropriate mark index and peer group. ties for growth by allowing
that is still in training, with two Ms Investor:What due dili- mutualfundschemeinvolves It is also important to con- more time for investments
distillations from it—dubbed gence is required to ensure clarifying your investment sider the pedigree and age to mature.

Have fun
MaverickandScout—available a sound investment plan? objectives and evaluating of the fund house. You could also consider a
right away for developers to
Mr Mutual Fund: While your risk appetite. Established funds with a Systematic Investment Plan
build on and users to try via
Meta’sappsorMeta.aiwebsite. there is no hard and fast rule, Choosing the Right reputable background typi- (SIP) which allows you to
there are a few basic con- Mutual Fund Schemes: cally have well-established regularly invest a fixed

with facts
Theycomewiththepromiseof
being natively multimodal, cepts that one can keep in Selecting the right mutual processes and internal amount in mutual funds. It
meaning capable of working mind before selecting funds fund schemes is crucial. controls. helps in wealth accumula-
with a variety of media beyond for your portfolio. Some Mutual funds are available Fund Fees: Consider the tion over a long period
text, and benchmark scores effective steps to optimise in various types and catego- expense ratio and other fees through the power of com-

on Sundays
thatMetasaysputsthemahead mutual fund investments are ries, such as equity funds, associated with the fund. pounding. SIPs also reduce
of well-known competitors. as follows: debt funds, hybrid funds, Expense ratio represents the the impact of market volatil-
Meta’s release comes as US Setting Clear Financial thematic funds, solution- annual management cost of ity by spreading invest-
firmsracetorespondtoaflurry Goals: The first step in any oriented funds etc. Each the fund as a percentage of ments. You buy more units
of new models and services by Catch the latest column of investment plan is setting category serves distinct pur- its assets. Generally, lower when prices are low and
China’s tech sector in recent

A
c l e a r f i n a n c i a l g o a l s. poses and presents different expense ratios are more fewer units when prices are
weeks. Since the debut of
DeepSeek in January, compa- Knowing what you want to risk levels. It is imperative to advantageous for investors, high, thus averaging out the
niesfromAlibabaGroupHold- achieve with your invest- choose funds that align with leading to improved net cost.
ing Ltd, to Tencent Holdings ments— whether it be short- your risk tolerance and returns. It is advisable to Regularly review your
Ltd have accelerated the pace A quiz on the week’s development. term, medium-term, or long- investment objectives. compare the expense ratios portfolio to assess the per-
of new AI announcements and term—helps in choosing the Past Performance: While of similar funds to make a formance of different assets.
deepenedinvestmenttosecure right mutual fund schemes. past performance is not a well-informed decision. Rebalancing your portfolio
a strong position. Baidu Inc. Assessing One’s Risk guarantee of future results, is essential to maintain the
made its Ernie Bot free, Ten- Tolerance: Understanding it can provide insights into Mr Investor: What other desired asset allocation and
cent integrated DeepSeek into your risk tolerance is crucial how the fund house has essential factors have to be manage risk effectively. If
itsubiquitousWeChatapp,and in selecting the right mutual managed the fund under kept in mind? you are unsure about your
Alibaba brought out models it fund schemes. Risk tolerance different market conditions. Mr Mutual Fund: Mutual investment choices, consider
claimed beat DeepSeek.
refers to your ability and will- Investigate the historical funds can help you accumu- consulting a financial advisor
Meta is similarly measuring
itself against DeepSeek— ingness to endure market performance of the mutual late wealth only if you are as a professional can help
alongside OpenAI and Alpha- fluctuations. By understand- fund scheme, ideally across disciplined and consistent you create a tailored invest-
bet Inc.’s Google—and also ing your financial goals and multiple timeframes, such as enough to remain invested ment strategy.
addressesthematterofcostfor
users of its new Llama tools. In
afirst,thecompanyisadopting
the mixture of experts (MoE)
architecture, which DeepSeek
used to great effect to reduce
Disclaimer: Know Your Customer (KYC): It is mandatory to complete KYC process before investing in Mutual Funds (MF). For this, submit the completed KYC Form at any Asset Management Company (AMC) branch or
the cost of its model. The nearest Point of Service (POS) or through a financial advisor. For KYC Form, click link: https://www.canararobeco.com/docs/default-source/forms-downloads/kyc-forms/cr_central-kyc-registry_application-form-individual.
advantage of that approach is pdf?sfvrsn=38d35f74_12. If you would like to update any KYC information (address, contact details etc.), submit the KYC Form with updated details at your nearest AMC branch or POS. Check KYC status at Know Your
Status (www.karvykra.com). For change of bank details registered with any MF, download bank mandate change form from that MF’s website, and submit the form to that MF’s branches or Official Points of Acceptance.
greater efficiency, with MoE SEBI Registered Mutual Funds: Investors should deal only with registered Mutual Funds, details of which can be verified on the SEBI website under “Intermediaries/Market Infrastructure Institutions” at https://www.sebi.
systems segmenting the work- gov.in/intermediaries.html. Complaint Redressal: For complaints, contact the Investor Service Department of the respective MF (for contact details, refer scheme related documents of MFs). In case, the investor is not
satisfied with the resolution, the investor can complain on SCORES platform (SEBI Complaints Redress System) at https://scores.gov.in/scores/Welcome.html. For cases, where the investor is not satisfied with the resolution
load into more manageable hindustantimes htTweets www.hindustantimes.com by AMC/ MF or through SCORES, the investor can complain on Online Dispute Resolution Portal (“ODR Portal”) at https://smartodr.in/login.
This program/ material is a part of the Investor Education and Awareness Initiative by Canara Robeco Mutual Fund.
pieces.
04 MONDAY, 7 APRIL 2025
HYDERABAD MARK TO MARKET LIVEMINT.COM

S&P BSE Sensex Nifty 50 Nifty 500 Nifty Next 50 Nifty 100 S&P BSE Mid-cap S&P BSE Small Cap
CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%)

75364.69 -2.65 22904.45 -2.61 20805.35 -2.50 61468.70 -2.50 23433.25 -2.59 40508.53 -2.46 45867.17 -1.65
1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%)

3.25 -4.87 3.72 -4.58 4.46 -8.38 6.04 -11.16 4.13 -5.81 4.61 -13.69 5.87 -18.26
6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%)

-7.74 1.53 -8.44 1.73 -11.60 0.68 -17.62 -1.11 -10.07 0.98 -15.44 -0.29 -18.01 0.14

Bearing down
The Gift Nifty futures contract signals a 560-point or
2.4% drop when the Nifty opens on Monday.
Index Puts Index Futures Number of open contracts
EM earnings brace for tariff wrath
400,000
Harsha Jethmalani tariffsarepassedontoUSend-consum- (India) in a 4 April report. Trade open-
200,000 [email protected] Hard pressed ers, there will likely still be some costs ness is a measure of a country's reliance

U
0 The consensus earnings growth forecasts for various Asian economies are at risk that Asian manufacturers will have to on international trade, indicating how
S President Donald of downgrades due to trade tariffs. bear. Many of the Asian manufacturing much its economy is influenced by
-200,000
Trump’s decision to levy 2025 2026 Consensus earnings per share growth estimates (in %) companies have also relocated produc- globalmarket.Itiscalculatedasthesum
-400,000 reciprocaltariffsontrading 25
tion to other parts of the world (Asean, of a country's exports and imports,
-600,000 partners has opened a can India, Mexico, etc) over the years – but dividedbyitsgrossdomesticproduct.A
Retail/HNI* DII FPI Proprietary of worms for emerging given broad-based tariffs, that strategy high trade openness ratio suggests that
20
Bullish Bearish market (EM) equities. A 10% baseline willunlikelyprovetobeacompletemit- a country is highly integrated into the
*Designated client by exchange Source: NSE
tariffisleviedonallcountrieseffective5 igationstrategy,”saidNom- globaleconomyandactively
15
GOPAKUMAR WARRIER/MINT
April, while countries with whom the ura Global Markets DOMINO participatesininternational
UShaslargetradedeficitsaresubjectto Research report of 3 April. EFFECT trade. A low trade openness

Futures signal higher reciprocal tariff rates effective 9

April.Withthat,EMeconomiesarenow
exposed to external risks such as sub-
10

5
An end-demand slowdown
in the US due to potentially AN end-demand
higherpricescouldhurtthe slowdown in the US
ratio means less reliance on
international trade.
For India, every 100 bps

Monday pain
from higher prices
duedexportdemandandcurrencyvola- top-line of Asian exporters. could dent Asian decline in trade openness
tility weighing on their economic 0 Nomura cautions slower exporters’ top-line leads to a 100-120 bps drop
growth prospects. top-line and margins will in sales growth, points out

for retail, HNIs

“For Asia, we believe growth overall -5 have an impact on Asian ASIAN firms may the Systematix report. A
also face weaker
could fall to 4% or lower in 2025, down MSCI MSCI MSCI MSCI MSCI MSCI earnings, so it expects domestic demand as restrictiveglobaltradeenvi-
Hong Kong Indonesia Malaysia Singapore Thailand Asia-ex-Japan
from around 5.1% last year, with the Asia downside to current con- protectionism hits ronment adversely impacts
trade-driven economies of North Asia, MSCI MSCI MSCI MSCI MSCI MSCI Emerging sensusearningsprojections. household incomes corporateprofitsbyincreas-
Ram Sahgal on Saturday. Thailand,Malaysia,andSingaporemost China India Korea Philippines Taiwan South East Asia Markets In a double whammy of ing the cost of input. “A 100
[email protected] "Theretail/HNIcategory susceptibletoaslowdown,”UBSsaidin Source: IBES Consensus forecasts, MSCI, LSEG, Nomura research; data as on 1 April 2025 sorts,Asianfirmsmaysuffer bps decline in trade open-
MUMBAI couldsufferseriouslossesif anoteon3April.Thedirecttariffimpact a blow even on domestic demand front ness leads to 200 bps lowered earnings
ANIL KUMAR/MINT
the market plunges as onAsiangrowthcouldbeupwardsof50 as rising global protectionism could growth, and a 100 bps increase in aver-

R
etail and high-net- much as that indicated by basis points (bps), while for every 100 added.Ontheotherhand,domestically porates in these regions getting bleak. adversely impact real household age import duty can compress it by 130
worth investors the Gift Nifty," said Rohit bps reduction in US growth, Asia’s driven economies such as India, Indo- This could, in turn, mean earnings incomes. “For the EMs, every 100bps bps,”addedthereport.Moreover,ifthe
(HNI) could bear the Srivastava,founderofIndi- trade-oriented open economies like nesiaandthePhilippinesmayseearela- downgrades —a sentiment dampener declineinglobaltradeopennessresults scenario plays out as currently feared,
brunt of a sharp correction aCharts. Singapore,Malaysia,Thailand,Taiwan, tively muted 100 bps hit. forequityinvestors.“ForAsia,whichwe in a 200-600 bps decline in per capita then the aftermath would also be felt in
on Monday if the markets Retail and HNIs, desig- and South Korea could see their own At the micro level, this could perco- viewasthemanufacturingpowerhouse income and a 123 bps loss in productiv- theformofdecliningcapitalflows,both
were to open as signalled nated “client” by NSE, are GDP reduced by 2 percentage points, it late to earnings growth outlook of cor- of the world—we think even assuming ity,” said Systematix Shares and Stocks FDI and FPIs, for these economies.
by Gift Nifty's steep drop at amongthekeyparticipants
closing on Friday. on the markets. Others are
These market constitu- domestic institutional Mark to Market writers do not hold positions in the companies discussed here unless otherwise informed
ents, who have been investors (DIIs), foreign
absorbing foreign investor portfolio investors (FPIs)
outflows from India, have and proprietary traders.
significant bullish posi- Retail investors, who
tions open on Nifty and trade directly on NSE
Bank Nifty derivatives, against mutual fund inves-
INDIA'S GLASS HALF FULL OR HALF EMPTY? NO CLEAR ANSWER YET
besides being net buyers tors, net purchased shares

B
on the cash segment, worth₹1.4trillionlastfiscal ertie tends to exit all WhatsApp ods of time. The investing results have been stunning, which is one
shows exchange data. year (FY25) through Feb- MARKETS groups that have more than ten peo- of the reasons why it is one of the handful of investment firms that
with
The Gift Nifty futures ruary, per exchange data. ple. As groups get larger, odds are Bertie genuinely respects.
contract,theerstwhileSGX March data was not availa- thatafewstronglyopinionatedand/orper- AndywasinBertie’shoodwithtimeonhandsothetwodecidedto
Nifty, traded ble. FPIs net manentlyoffendedWhatsAppwarriorswill meetatoneofthethreegoodcoffeeshops.Afterthemandatorymar-
by foreign Retail and HNI sold shares monopolize all discussions with their ketandstockviewswereexchanged,Bertieposedaquestionthathe
investors well investors have worth ₹1.27 extreme views about everything under the was always curious about. “How do you pitch this PIPE strategy to
after the NSE significant bullish trillion in the sun.Theonenotableexceptiontothisruleisamotleygroupofwork- yourinvestors,Andy?”heasked.“Isn’titneitherherenorthere?Insti-
and BSE shut positions open fiscal, per ing professionals from diverse backgrounds who share interesting tutionalinvestorsunderstandpublicequitystrategiesthatgenerally
at 3:30 pm on NSDL. articlesthattheyhavereadalongwithashortsummary.Occasionally, invest in the top couple of hundred stocks, and they understand pri-
on Nifty and
Friday, sig- Retail cate- there is a discussion but it is always nuanced, respectful and open- vate equity that invests in unlisted shares. What’s your sales pitch?”
nals a 560- Bank Nifty gory’s net minded. Andytookathoughtfulsipofhiscortado.“Itwashardinitially,Bert.
point or 2.4% derivatives cumulative Recently, an article was shared on the group that stated that 90% Theydidnotknowwheretoslotusbutovertimewehavebeenableto
drop when open or out- of Indians had no money for discretionary spends. The discussion demonstratetheadvantagesofwhatwedo.”Andyexplainedthatmost
Nifty opens standingposi- that followed quoted the India 1,2,3 framework attributed to a now- ofthewell-managed,mid-sizedcompaniesinIndiadonotneedexternal
on Monday. tions on Nifty and Bank bankrupt modern retail pioneer. Some others shared charts from a capital.Theyhavestronginternalaccruals
The contract closed at Nifty futures stood at reportbyaninternationalbrokeragethatshowedthatevenaftertwo It’s heartening that are sufficient to take care of their
22,343.5 early Saturday 40,514 contracts. On Nifty decadesofoperationinthecountry,quickservicerestaurantsthatsell that nobody was growth needs. Private equity will never be
morning—tradingrunsfor and Bank Nifty index puts, pizzasandburgerswerepresentinonly7%ofIndia’spostalcodes.The abletoinvestinsuchcompaniesbutifthey
over19hoursasopposedto they were net short by toneofthediscussionwastherewasa‘StockMarketIndia’ofroughly called an andh happen to be listed, the PIPE investor can
the six hours fifteen min- 410,515 contracts. They 150 million people who were investing in stocks of companies that bhakt, neither patientlyaccumulatetheirsharesandpar-
utes on NSE and BSE—in were net short on index primarily sold to the same 150 million. asked to decamp ticipateintheirgrowth.“Feesandliquidity
response to a global stock calls by a much lesser Theconversationsoonveeredtoquickcommerce(QC),wherethe to Pakistan aretheotheradvantages,”Andycontinued.”
meltdown. 197,468 contracts. But this proponents were of the opinion that this was one service that would Wechargemuchlowerthanprivateequity
TARUN KUMAR SAHU/MINT
DowandNasdaqtanked would be scant as a hedge breakthroughtheceilingof150millionpeople,sinceitwasadelivery and,incaseweneedtosellourinvestments
by almost 6% on Friday on against their bullish posi- pipe rather than a product or service that lays claims on consumer ing very slowly, then we are overpaying for consumer companies’ forwhateverreason,wecandoitquicklyandcheaply.”
growingfearsofarecession tions in cash and on puts. budgets. The building blocks of cheap internet, easy user interface, growth. However, if the 90% of the untapped population is latent “Thebiggestadvantageversusprivateequityisthattheydealwith
in the US over the next 12 Their counterparties, convenience, assortment and affordability, they argued, were all in demand,thentherunwayforexpansionislongandattractive.Butfor Mr.Promoterwhentheybuy,butwedealwithMr.Market.Thepro-
months after President FPIs, were cumulatively place. The detractors pointed to the fact that despite all this, house- now,whethertheglassifhalffullorhalfemptyisnotapparenttoBertie. moter is a very knowledgeable seller who will extract the maximum
Donald Trump imposed net short on futures by holdpenetrationofQCwasjust7%andthateconomicsinnon-metro The monks of the market value from the sale but Mr. Market can be moody and, at times, even
reciprocal tariffs. 86,592 contracts and long citieswillnotbelucrativefortheplayers.Fortheconsumer,QCmight The advantage of having a centrally located office is that whimsical.Whenbuyingsomething,onewouldratherdealwithMr.
The Nifty closed 1.5% indexputsby355,447con- beano-brainer,butprovidingthoseservicestoeveryonemaynotbe impromptumeetswithfriendsbecomeeasier.Havingthreegoodcof- Marketthanthepromoter.”ThatmadesensetoBertie.“Therealchal-
down at 22,904.45 on Fri- tracts as of Friday. FPIs sofortheQCcompanies.Thehearteningfactwasthatallthroughthe feeshopsintheofficebuildinghelpsaswell.Yes,thereisafourth,but lenge,myfriend,istositstillformonthsifnotyears.Becausethemar-
day before the US markets have net sold stocks worth discussion nobody was called an andh bhakt, neither was anyone Bertie hesitates to call it good. Last week, Andy, an old friend of Ber- ketopenseverydayat9.15amandshowsuspricesofeverything.You
opened. But the Gift Nifty ₹10,355 crore in the cash asked to decamp to Pakistan. tie’s,wasintownfromSingapore.Thegentlemanworksforalow-key almost have to be a monk.” Andy signed off with a zen smile.
took cues from weaker US market so far in FY26. ForBertie,thisdiscussionframestheIndianconsumeropportunity but very well-respected firm that believes in PIPE (private invest- Bertie is a Mumbai-based fund manager whose compliance depart-
and European markets, For an extended version, debate. If India is going to remain a two-tiered economy with the ments in public equity) investing. They make very few transactions, ment wishes him to cough twice before speaking and then decide not to
closing 2.68% lower early go to livemint.com creamylayeraccountingforthebulkoftheconsumption,butexpand- whicharegenerallyinthemid-capspace,andholdthemforlongperi- say it after all.

‘Domestic-focused businesses can shield portfolio from uncertainty’

Ram Sahgal That global growth will slow pitch. However, growth may cesandvaluationsoverthenext equity is happening through economic parameters. To that
[email protected] down and inflation moving up slow down for export-oriented few weeks. Volatility will con- that particular fund. Whereas extent,domestic-focusedbusi-
MUMBAI appear to be a reality now. techcompaniesifcompaniesin tinue. supposeifaninvestoriscoming nesses will continue perform-
When you look at the impact, theUSstartedfeelingthepinch You said there is uncer- into our fund and if he thinks ing as they have been doing.

I
ndia's domestic-focused obviously anybody who is oftariffs.However,fromapure tainty and there are many that it has to be 50%, it is his Our portfolio is anyways
businesseswillfeelrelatively exportingtotheUSwillhavean tariffbarrierperspective,there people who are managing decision that he keeps 50% tilted towards the domestic
lesspainoftheUSreciprocal impact. is nothing that's happening to other people’s wealth. Are asideandgivesonlytherestfor basket. I would say depending

‘
tariffs and it would pay to stay The relative impact on India the IT services. With other you fully invested now or investing. onwhichportfolio(small-,mid-
investedinbusinessesoriented could be lower compared to exporters, too, relative advan- sitting on a little cash? B
Because of the mandate, we or large-caps) you look at,
toward local markets, accord- some of the other countries, tage will come into play. Most of our funds have keepacashaswedon'thave maybe 85% or more will be in
ing to a top fund manager of which are competing with us As of now, the listed space anywhere to necessarily domesticfacingbusinesses.To
Kotak Mahindra Asset Man- for increasing export share may not have a very large between 2% and investeverything that extent, we believe that our
agement Company Ltd. However, the point is when impact directly, but the indi- 4% in cash. One of the largest thatcomesprevi- portfolios have taken the
The tariffs have raised costs go up for a consumer or rect impact or second-level As an invest- exposures we have ous night, the requiredstepstoinsulatewhat-
uncertainty, which the market business, then there is going to impact is difficult to under- mentphilosophy is large banks, both very next morn- ever little drag might ensue
doesn't like, said Harsha Upad- beeitherdefermentofdemand stand. at Kotak Mutual ing. But we will from some of the export-ori-
hyaya, presi- or destruction Let's say we supply to Fund, we never PSU and private, not use cash as a ented businesses.
dent & chief m
INTERVIEW of that demand another manufacturer in take large cash and not just tool and we have Thebulkofyourportfolio
investmentoffi- and that's what Europe. We may feel that calls. We don't because of tariffs communicated mix is in domestic busi-
cer at the fund we need to between Europe and India ios unravel. Therecouldbeotherreactions use cash as a tool this to investors nesses, but if you narrow it
Harsha Upadhyaya
house. “One way of insulating worry about. nothinghaschanged,soevery- There is retaliation by from elsewhere or even from to manage vola- President & CIO, clearly. Because down,whatwouldbeoneof
investor portfolios amid this Ifyoulookatthelistedspace, thing will be all right. But in China and the EU, which China or from the US itself. It's tility or perform- Kotak Mahindra AMC themomentIam the top ones?
rising uncertainty is by invest- it is dominated by domestic turn, if that European manu- could complicate issues for clearly very uncertain at this ance because it's takingacashcall, One of the largest exposures
ing in domestic-facing busi- businesses in India. So, to a facturer is supplying to the US, financial markets as seen point of time. I think we'll have a double-edged you as an inves- we have is large banks, both
nesses.” large extent, the impact will be his demand may change or his over the past two days, pro- to wait for a few more weeks, sword. Only in hindsight we tor will never know what am I PSU as well as private, and not
Hisfund'sportfoliosare85% lotlessercomparedtowhatyou costing may change. And so longing the uncertainty few more months probably, to will know whether that deci- going to do with it. just because of what has hap-
tilted toward such companies, would otherwise see if all the thatcouldhaveasecond-order which markets don't like. really get to know the extent of sion is right or wrong and who In the context of global pened on the tariff side. Even
and prefers large banks and ar exporters were listed. Within impactonallthesupplierswho First of all, we don't know impact that you will see. am I to decide asset allocation uncertainty, which sectors otherwise for the last six to
eslightly underweight on IT. thelistedspacealso,therearea areinvolvedinthatvaluechain whether we have had the last Markets will remain volatile for lakhs of investors out there. are you betting on as a fund eight months, we've been talk-
couple of large US -oriented or if, let's say, one of the coun- word from the US. Second, we is what I guess. The market Today, when you come to house? ingaboutthevaluationcomfort
Edited excerpts: exporters. trieswhichwasexportingtoUS still do not know what will be hates uncertainty and to the Kotak Mutual fund, for exam- Most domestic businesses being in large caps within
Reciprocal tariffs have Say IT services are not earlier starts to look at other thereactionofothercountries. extent that they are unable to ple, you may have completely should be okay because this banks.
upended markets. Your impacted as of now, but sec- exportmarkets.Itwillbetough We have just seen the reaction assess the impact, we will con- decided that whatever alloca- (global trade uncertainty) is For an extended version, visit
take? ond-ordereffectscanqueerthe to ascertain how these scenar- from China, but who knows. tinuetooscillateintermsofpri- tion you wanted to make in unlikely to impact domestic livemint.com
LIVEMINT.COM
MONDAY, 7 APRIL 2025
HYDERABAD 05
Advertisement

A PERSONAL TRIBUTE
THE ARCHITECT OF TOMORROW
CHAN
N CHANDRABABU NAIDU
Sameer Kochhar Microsoft’s Bill Gates expressed saw an opportunity to reimagine a
Reforms Historian and hesitation about investing in new capital from scratch.
Chairman, SKOCH Group Hyderabad due to infrastructure Amaravati was not just about
concerns, Naidu didn’t defer the replacing Hyderabad—it was about

I
’ve spent the better part of my decision. He responded with a building a capital that matched
career studying public policy detailed, actionable blueprint on the the aspirations of a 21st-century
and observing India’s political spot—complete with power plans, India. Inspired by global models
evolution with a mix of admiration road connectivity, and land use like Singapore and Masdar, it was
and skepticism. Across this journey, zoning. More impressively, he planned as a green, climate-resilient,
I’ve come across all manner of delivered on it. and technologically integrated city.
public figures—some with sharp The result wasn’t just Every element—from land pooling
rhetoric, some with strong a tech park. It was a new mechanisms to zoned development,
administrative skills, some riding urban identity: Cyberabad. from flood mitigation to transport
the wave of ideology, and many Today, companies like planning—reflected a sophisticated
content with managing the Microsoft, Oracle, vision.
status quo. But now and then, Facebook, and Google The political churn that followed lifelines during COVID-19, proving track real outcomes: how well a state
someone stands apart. A leader call Hyderabad home, may have slowed its pace, but once again that investing in resilience converts capacity into citizen welfare,
who doesn’t just respond to thanks in large part to a Amaravati remains a case study in pays off. how effectively it delivers services, and
the present, but anticipates leader who understood ambition rooted in feasibility. If Education and skilling remain how prepared it is for the future.
the future. One who not only that investment follows India is to build cities of the future, other quiet success stories. Through While national schemes like Digital
imagines what’s possible, confidence—and Amaravati offers a blueprint—not polytechnics, vocational hubs, and India deserve their due, it’s clear that
but brings it into being. N. confidence comes from just in design, but in governance partnerships with industry, Naidu Andhra Pradesh’s “early harvest” of
Chandrababu Naidu, the current competence. philosophy. helped create one of India’s most reforms came because its soil had
Chief Minister of Andhra Pradesh, Where most leaders might employable youth populations. been enriched earlier—by institutional
is one such rare individual. pitch visions, Naidu engineered Digital Pioneer Before It A skilling ecosystem backed by frameworks and digital backbones laid
Naidu defies easy categorisation. outcomes. He didn’t just attract Was Popular data, linked to jobs, and designed down during Naidu’s earlier tenures.
To many, he is the man who capital—he built ecosystems. Before “Digital India” became the for scale—that’s rare in Indian
transformed Hyderabad into a buzzword it is today, Naidu had governance. The Work Continues
global tech hub. To others, he is Governance That already implemented Mee Seva—a Today, as Naidu returns once again to
the architect of e-governance in Reaches Every Doorstep platform that consolidated over 300 A Global Statesman with lead Andhra Pradesh, his focus remains
India, or the builder of institutions Even as he shaped futuristic public services into one-stop digital Local Roots unchanged: deliver better governance,
that outlast governments. But skylines, Naidu remained grounded centers across towns and villages. Naidu has always understood that faster, and more inclusively. His recent
to those of us who’ve observed in the realities of rural Andhra Whether it was land records, state leadership in India must look announcements reaffirm commitment
Indian governance systems from up Pradesh. One of his most enduring pension forms, utility bills, or caste beyond borders. His presence at to citizen-first reforms—whether it’s
close, he is something even more contributions is the Janmabhoomi certificates—citizens could now Davos wasn’t ceremonial—it was reviving Amaravati, expanding fibre
significant—a reformer with an Maa Vooru programme—launched access them without bribes or delays. strategic. He knew that global connectivity, or reintroducing large-
engineer’s precision, a visionary in 1997 and revived in his more He followed this up with capital, technology, and ideas flow scale skill development missions.
with an implementer’s tenacity, and recent tenures. Unlike top-down Real-Time Governance Centers towards clarity, not confusion. At a time when governance is often
a democrat who sees citizens not as policy templates that treat people as (RTGCs)—cutting-edge facilities In fact, at the 2017 AgTech reduced to slogans and spectacle,
passive recipients of welfare, but as passive beneficiaries, Janmabhoomi using AI, remote sensing, and Summit, Bill Gates famously Naidu’s work reminds us of something
active co-creators of development. created platforms for genuine predictive analytics to monitor remarked that Naidu believed in deeper—that true leadership lies in
participatory governance. Through everything from roadworks to flood digital governance “even more than I building systems, not just stories. In
From Red Tape to Silicon gram sabhas, villagers could raise alerts, from school attendance to do.” That’s not just admiration—it’s architecture, not just applause.
Horizons local issues, track implementation, citizen grievances. recognition of a fellow traveler on
When Naidu first assumed office and co-design development. In a country where most the path of reform. Designing the Future
in the mid-1990s, India was just I’ve personally witnessed the e-governance projects begin and By forging international In a democracy like India’s, where
beginning to experience the stirrings vibrancy of such interactions— end with a website, Naidu’s digital partnerships, signing MoUs with global short-term populism often trumps long-
of economic liberalisation. Yet, for farmers debating borewell locations, push has always been about system universities, and inviting investment term planning, N. Chandrababu Naidu
all the talk of reforms, governance women’s SHGs presenting sanitation redesign—integrated, proactive, in sectors like food processing and is a welcome anomaly. He doesn’t
remained mired in red tape. It was proposals, and schoolteachers asking and citizen-centric. His use of aerospace, Naidu positioned Andhra just chase headlines—he lays down
in this setting that Naidu made an for digital classrooms. This wasn’t technology is not cosmetic. It’s Pradesh not just as a state but as a blueprints. He doesn’t just think about
unconventional and, at the time, tokenism. It was governance with functional. It’s reform in action. global development lab. the next election—he plans for the next
politically risky bet: he embraced the people, not just for them. generation.
technology as the foundation of state That philosophy - “Prajala More Than IT: Agriculture, The Indices Don’t Lie His legacy is not limited to one
capacity. Vaddaku Palana,” or governance Health, and Human Capital Naidu’s record speaks clearly. city, one industry, or one era. It’s
This wasn’t symbolic. It wasn’t a at people’s doorstep—is perhaps Naidu’s governance model isn’t According to the SKOCH State a philosophy of governance that
PowerPoint dream. It was structural. the clearest window into Naidu’s tech fetishism—it’s inclusive of Governance Transformation fuses discipline with imagination,
Naidu saw technology not leadership. For him, reforms are not transformation. Consider his work Index, Andhra Pradesh was among technology with empathy, and
as a luxury for the elite, but as He saw early on what many are abstract—they must touch lives, in agriculture. From micro-irrigation the top performers between 2014 and efficiency with inclusion.
a lever to eliminate corruption, only now coming to terms with: reduce friction, and enhance dignity. subsidies to soil health mapping, 2019—years coinciding with Naidu’s As India prepares for an uncertain,
reduce inefficiencies, and make that digital infrastructure is no less from e-marketing platforms to cold leadership. Whether in administrative data-driven, AI-powered future, it’s
government work for the people. His important than physical infrastructure. Amaravati: Embodiment of chain logistics—his interventions efficiency, digital infrastructure, worth asking—who are the leaders
decision to digitise land records—a a New Beginning have helped farmers move from or sectoral innovation, the state who’ve already done the groundwork?
technical-sounding but politically HITEC City: A Plan When Andhra Pradesh was subsistence to sustainability. consistently outperformed national Naidu is one of the few. And now, with
transformative intervention—set Delivered bifurcated in 2014, most leaders in In health, too, Andhra Pradesh averages. another opportunity to serve, he’s not
a precedent for transparency and The creation of Hyderabad’s HITEC Naidu’s position would have played under his leadership pioneered Even now, Andhra Pradesh just continuing a legacy—he’s updating
accountability. In a country where City is often cited as Naidu’s the victim card. After all, he had lost mobile clinics, early adoption features among the “Performers” in it.
land disputes are among the leading masterstroke—and rightly so. But it Hyderabad—the very city he had of telemedicine, and real-time the SKOCH Government Efficiency He remains, unequivocally, India’s
causes of litigation and violence, this is the how that sets him apart. helped transform. But Naidu did dashboards for maternal and child Index and the Development Index. Architect of Tomorrow. More
was a quiet revolution. As the story goes, when what only a true reformer would: he health. These systems became These are not vanity metrics—they importantly, he’s still building. 

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The above content has no involvement of Mint [email protected] skochgroup skochgroup skochtv @skochgroup @skochsameer
06 MONDAY, 7 APRIL 2025
HYDERABAD CORPORATE LIVEMINT.COM

Tata Motors braces

for impact as JLR
Prestige hotel arm to file for
pauses US exports ₹2,000-2,500 cr IPO in April
Ayaan Kartik
[email protected]
NEW DELHI
Company may dilute 10% stake in public offer; funds to be used for growth, retiring debt
T
ata Motors Ltd’s decision
to pause exports of Jag- Retail inflation fell to a seven-
uar Land Rover (JLR) Madhurima Nandy & Anirudh Laskar pitality companies is somewhat differ- month low of 3.61%, in Feb. MINT
cars to the US for April raises BENGALURU/MUMBAI ent especially with rising average indi-
RBI may cut
P
concerns for both the com- vidual income and a palpable desire
pany’s volumes and financial restige Hospitality Ventures among the country’s urban youth to

rates amid
performance this fiscal year, as Ltd is likely to submit its spend on luxury work stays and family
well as for the broader Indian papers to the market regulator vacations.
auto sector that sees the coun- Securities and Exchange Nikhil Shah, senior director and head,
try as a key export market.
On 26 March, US President
Donald Trump had announced North America comprised over
Board of India (Sebi) this
month for a public listing to raise
₹2,000-2,500 crore, according to two
hospitality, capital markets and invest-
ment services, Colliers India, a property
advisory, said hotels were doing well
easing
a 25% duty on all cars and car a fifth of JLR’s FY24 sales. REUTERS
parts imported into the coun-
people directly aware of its expansion
and fundraising plans.
due to strong domestic demand and are,
therefore, expanding. inflation:
Mint poll
try. Since that announcement, according to two analysts. “The process has started and the “Hospitality companies want to hit
Tata Motors shares have slid “The problem for Tata DRHP (draft red herring prospectus) the market to list in the current sce-
over 13% as of Friday’s closing, Motors is that JLR has been fac- will be filed in two weeks or so,” said one nario,” said Shah. “The market had an
against a fall of over 5% in the ing headwinds in Europe and of the people mentioned above, on con- appetite for IPOs. However, given the
BSE Auto Index. China. North American market dition of anonymity. “The money will be current subdued market prices, IPO val- FROM PAGE 1
North America—including was looking strong but with used for funding the growth plans in the uations are likely to be more realistic.”
the US and Canada—accounted this decision in the first month, hotels and hospitality space.” To be sure, Prestige’s proposed IPO economic research at Bank of
for more than a fifth of JLR’s there can be a severe impact on “Prestige is looking to dilute 10% will follow a slew of hospitality IPOs in America Global Research, in
overall sales volume in fiscal the company,” said Sanket stake in the subsidiary through the pro- recent months, including Samhi Hotels his report.
2024. The region accounted Kelaskar, equity research ana- posed IPO (initial public offering) and (in September 2023), Juniper Hotels Since the previous policy
for 15% of Tata Motors’ consoli- lyst at Ashika Group. has plans to significantly ramp up its The Prestige Group had indicated last year that it plans to double its hospitality (February 2024), Park Hotels (February announcement in February,
dated revenue of ₹4.37 trillion “In the near term, there is a hotel portfolio,” said the second person, portfolio in three to four years. 2024) and, most recently, the December retail inflation has slipped to a
in FY24. risk of a hit to the volumes of also requesting anonymity. “Apart from listing of Ventive Hospitality Ltd, a joint seven-month low of 3.61%,
To be sure, JLR exports to the company due to this deci- growth, part of the funds may be used to Prestige’s hospitality portfolio an agreement with global hospitality venture between real estate developer down from 4.3% in January,
the US primarily from its Soli- sion, resulting in weaker shave off debt.” includes eight operating hotels (1,477 giant Marriott International to develop Panchshil Realty and global asset man- mainly driven by lower food
hull plant in the growth,” said Saji Prestige Hospitality Ventures is a keys) and four ongoing projects (1,137 six hotel projects in the country in two to ager Blackstone. prices. Food inflation eased to
UK. The British luxury John, senior wholly owned subsidiary of Prestige keys). It is now developing a St Regis five years. In the coming months, more hospital- 3.75% in February, a significant
“The USA is an car brand research analyst Estates Projects Ltd, which houses all hotel and a Marriott Marquis hotel and In the first nine months of FY25, Pres- ity IPOs are expected to hit the market. drop from 5.97% in January
important market constituted 69% at Geojit Financial hospitality assets and projects of Benga- convention centre in Delhi’s Aerocity, tige's operational hotels achieved an Bengaluru-based realty firm Brigade 2025. Meanwhile, the rupee
for JLR’s luxury of Tata Motors’ Services. “But the luru-headquartered Prestige Group. with almost 800 keys cumulatively, average room rate (ARR) of ₹14,139 and Group’s Brigade Hotel Ventures Ltd in appreciated 1.74% against the
brands,” the com-
overall revenue in situation remains The company owns properties such February received Sebi approval for US dollar since 7 February.
pany said in a
the fiscal year
volatile, so it as JW Marriott Prestige Golfshire ROOM FOR MORE a ₹900 crore IPO. Schloss Banga- At the same time, econo-
statement on 5 remains to be and Conrad Bengaluru. lore, the parent of Brookfield- mists, who earlier expected RBI
April. “As we work 2024 seen how the The move to go public comes in THE Prestige Group THE move comes in ITS hospitality IT has a pipeline of owned Leela Palaces Hotels & to cut rates once or twice more
to address the company will the backdrop of the realty major JW owns properties like the backdrop of the portfolio includes 11 hotel projects in Resorts, also secured the market this year, now see more cuts
Marriott Prestige firm putting its hotel eight operating Chennai, Bengaluru,
new trading terms tackle Trump’s putting its hotel business expansion Golfshire and business expansion hotels and four Mumbai, Hyderabad, regulator’s nod for its ₹5,000-crore happening, and are pencilling
with our business partners, we tariffs.” plans on the fast track in the back- Conrad Bengaluru plans on fast track ongoing projects Goa and Hassan proposed IPO, which could be the in a 75-100 bps rate cut through
are enacting our planned short- The British brand consti- drop of the country’s thriving hospi- country’s largest IPO in the hospi- 2025 as they expect a possible
term actions including a ship- tuted 69% of Tata Motors’ over- tality and tourism market. tality sector. economic slowdown in India.
ment pause in April, as we all revenue in the financial year As a real estate group, Prestige Group among others. revenue per available room or RevPAR “The next two to three years should The rate-setting committee
develop our mid- to longer- 2024. In the October to has largely focused on residential and The developer also has a significant of ₹8,522, the presentation said. Rev- continue to see high demand for hotels meets once every two months
term plans.” December period, the share of commercial projects but has also built pipeline of 11 hotel projects, with around PAR measures the average revenue gen- fuelled by domestic demand; business or six times a year.
No sales in April for JLR in its the brand in revenue and profit and scaled up hospitality and shopping 2,146 keys, in Bengaluru, Chennai, erated per room over a specific period. travel should also do well,” said Shah, Goldman Sachs has lowered
largest market in the first before tax of Tata Motors was mall properties alongside. The group Mumbai, Goa, Hyderabad and Hassan Even though the primary market is while cautioning that the US tariff its estimate for India’s gross
month of the new fiscal year almost three fourth. had indicated last year that it plans to (near Bengaluru), according to its latest now perceived to be less vibrant than announcement may have an impact on domestic product (GDP)
implies weaker full-year For an extended version of double its hospitality portfolio in three investor presentation. the last calendar year by analysts and IPOs going forward. “We have to see growth for FY26 to 6.1% from
growth for the company, this story, go to livemint.com. to four years. In March 2024, Prestige had signed bankers, the scenario for hotels and hos- how it plays out,” he said. 6.3%. Nomura has now forecast
GDP growth at 6% in FY26
compared to its earlier expecta-
tion of 6.2%, while Mumbai-

GIFT City ETFs on foreign indices Revamped Digital Competition based QuantEco Research esti-
mates a 30-bps hit.
Most of the economists

FROM PAGE 1 eign company which then sells

them to investors.
Bill likely to spare many startups polled by Mint do not expect
RBI to revise its GDP growth
forecast of 6.7% and inflation
GIFT City’s regulator Interna- However, launching ETFs forecast of 4.2% for FY26.
tional Financial Services Cen- may be only a beginning. FROM PAGE 1 “Secondly, the government “It is too early to consider
tres Authority remained unan- “Liquidity in ETFs isn’t just could bring out its thinking on actual forecast changes, but to
swered. about listing; it requires ness which, for three years, this topic along with the ration- state the obvious: risks to
Indians can freely buy ETFs authorized participants and had annual sales of ₹4,000 ale for changes contemplated, FY26E growth of 6.5% are
tracking indices such as Nas- liquidity providers to offer crore in India, or had global in public domain in the form of materially downwards,” said
daq or Dow Jones from brok- two-way quotes on exchanges. sales of $30 billion, or had gross a white paper so that all stake Madhavi Arora, chief econo-
ing platforms. However, the Without them, ETFs can trade merchandise value in India of holders can give their consid- mist, Emkay Research.
central bank prevents mutual at significant premiums or dis- ₹16,000 crore, or had global ered views. If the policy intent “This will emanate from a
funds from collectively buying counts, impacting investor market capitalization of $75 is to focus on large tech firms much higher risk of a US/global
foreign stocks above $7 billion, experience,” said Vaibhav million and also separately had and to exclude start-ups, it recession if these global tariffs
with a sub-limit of $1 billion for Shah, associate director and at least 10 million end users in would be ideal to treat all are maintained. The disinfla-
buying ETFs. These limits GIFT City exchanges may launch not just global ETFs, but ETFs in head of business strategy, India, or 10,000 business users start-up firms alike without any tionary impulse for Indian
were crossed three years ago, gold and silver as well in the early part of FY26. ISTOCKPHOTO products and international in India, would qualify as a sys- Experts said the Centre could artificial distinction based on industry could emanate from
preventing MFs from buying business at Mirae Asset Invest- temically significant digital bring out a white paper on the ownership or nationality,” said lower global commodity pri-
more ETFs. This means the (LRS), Indians can invest up to expected to launch not just ment Managers. enterprise or SSDE. proposed statute. ISTOCKPHOTO Kulkarni. ces/supply glut of goods,” said
only such ETFs available for $250,000 abroad every year. global ETFs, but ETFs in gold “Launching ETFs for global In addition to a review of “While there are some Arora.
purchase are those from Since GIFT City is designed as and silver as well in the early markets is a good idea in the these thresholds, the govern- Amazon, Google and Meta aspects of the Digital Competi- Late last week, the US
before 2022. The lack of new an offshore finance hub within part of FY26. long run,” said Pramod Gubbi, ment is also reviewing the seg- remained unanswered. tion Bill (like financial and user announced a volley of recipro-
supply has raised the premium India, the LRS limit will apply Currently, the GIFT City founder of Marcellus Invest- ments to be covered by the pro- Experts said the government thresholds) that require con- cal tariffs, triggering concerns
on such ETFs, and a new route to GIFT City exchanges NSE ment Managers. However, he posed law. could bring out a white paper sultation among stakeholders of a global trade war and an
holds the potential to access investments as Under India’s IX and India INX agreed that in the short run, The bill had originally pro- on the proposed statute. to arrive at figures that are economic slowdown.
ETFs cheaper. well. liberalized offer derivatives there will be issues of liquidity posed to net digital gatekeeper “There is a need for more more relevant to the Indian Since the previous policy
An ETF trades purely based “Even though remittance for the Nifty 50 and market-makers are needed firms with significant market robust consultations on first, context, the anti-competitive announcement in February,
on demand and supply dynam- the US and China scheme (LRS), index and Sensex to provide liquidity. “Even influence in nine core digital whether ex-ante approach to practices recognized under the the RBI is estimated to have
ics; when investor demand remain popular
Indians can invest 30 index, respec- then, there has to be genuine services—online search, online competition regulation is Bill (self-preferencing, anti- infused liquidity worth ₹7.5
exceeds supply, the ETF starts destinations, it tively. Besides, demand from buyers. If that social networking, video-shar- needed or whether the existing steering etc.) are relevant trillion, leading to system-wide
trading at a premium to the will depend on up to $250,000 NSE IX offers ETF does not have genuine ing, inter-personal communi- ex-post approach could be across jurisdictions and need to liquidity finally turning to a
value of its underlying stocks. the AMCs to abroad every year u n s p o n s o r e d demand, then there could be cation, operating system, web- made to work more effec- be regulated sooner rather than surplus at the end of March. It
This means investors end up decide which depository gaps building up between the browsing, cloud services, tively,” said Amol Kulkarni, later,” said Snehil Khanor, has announced open market
paying more than the actual countries' ETFs receipts (UDR) for underlying asset value and the advertising and online inter- director of research at CUTS co-founder and chief executive operations of over ₹2 trillion,
value of the underlying stocks, to launch, depending on 50 US stocks and is planning to price of the ETF,” Gubbi added. mediation. This list is likely to International, an India-based officer of Truly Madly, an two long-dated variable repo
making global market exposure where they see demand,” said launch 70 more, the third per- srushti.vaidya@live- be trimmed, the person cited international non-government online match-making applica- rate operations, and two addi-
expensive and inefficient. one of the people cited above. son said. UDRs are depository mint.com above said. organization working on com- tion. tional USD-INR (dollar-rupee)
Under India’s so-called lib- The second person said that receipts initiated by a bank For an extended version of Queries emailed to the min- petition and public interest For an extended version of buy-sell swap operations
eralized remittance scheme GIFT City exchanges are that purchases shares of a for- this story, go to livemint.com istry of corporate affairs and to issues. this story, go to livemint.com amounting to ₹1.7 trillion.

DESPITE TARIFF HEAT, POLICY EASING LIKELY TO STAY ON TRACK

than a tenth of the total exports to the US, with other sectors still of the target range. stronger rupee is set against the backdrop of ongoing US-India
exposed to higher tariffs. Our growth impact framework mar- Deceleration in vegetable prices is likely to face a hurdle in negotiations where non-tariff barriers, including currency
EXPERT ries export elasticities and bilateral trade/ sector flows, signal-
ling about 0.3-0.4% of GDP modest downside risk for India.
the June quarter heading into the summer months as the offi-
cial weather department has cautioned about high tempera-
movements, are under scrutiny.
Bonds have gained from expectations of further rate cuts and
VIEW India has steered clear of retaliatory action, instead counting on tures and drier months. While inflation readings might head steady purchases under the ongoing open market operations
a successful conclusion of the ongoing bilateral trade agree- back towards 4%, we don’t expect a marked departure from the (OMOs). Bond yields slipped further after the RBI surprised by
RADHIKA RAO ment with the US next quarter to lower the effective tariff rate target. Growth, meanwhile, is seen around 6.4-6.5% in FY25 announcing another ₹80,000 crore OMO for April, signalling
on India’s exports to the US. and FY26, down from the 8% run rate a strong preference for surplus liquidity to aid transmission.
Respond to this column at
[email protected]
Despite the tariff heat, multiple domestic data sets—low oil India’s in the previous two years. OMOs were already at a four-year high in FY25. April-June
prices, easing inflation, slower growth and a firmer currency— inflation may The rupee was the regional outper- quarter is also expected to benefit from a significant RBI divi-
have aligned to make way for the Monetary Policy Committee former, rallying 2.3% in the past dend payout, estimated to be north of ₹2 trillion. We look for a

F
inancial markets are gradually coming around to the view (MPC) to lower rates further. An agreement by key Opec+ pro- undershoot month, as seasonality and dollar 25 bps cut in the repo rate to 6%, and a change in stance to
that higher tariffs on the region will be a burden on the ducers to raise output from May has further depressed global RBI forecast by weakness coincided. Barring a knee- accommodative at the April meeting, tapping into the wide real
outlook for the US as well. Arguably, the level of reciprocal oil prices, with world growth slowdown risks likely to keep 40-50 basis jerk weak spell on Thursday on the rate cushion.
US tariffs appears more to be driven by the trade gap between over-supply risks in view. points back of reciprocal tariffs, the rupee Policy guidance will be important as markets price in the pos-
the countries rather than the tariff differential. Any retaliatory India’s January-February inflation, combined with our early continues to benefit from a resump- sibility of at least two rate cuts in the coming months. While
action from America’s trading partners could attract higher tar- estimate for March, points to a potential 40-50 basis points tion in foreign inflows into both confident on domestic developments, the MPC is likely to be
iffs, while conciliatory moves or concessions might presumably undershoot in the actual inflation versus RBI’s quarterly fore- equity as well as debt markets, also helped by a likely current guarded on the uncertain global backdrop as trade distortions
translate to relief. cast. Our trimmed inflation measures stayed flat, reflecting account surplus in the March quarter. pose stagflationary risks to the US and raise the risk of slower
Tariff rates imposed on India are less than those of most benign conditions in recent months. Additionally, more than A more notable shift was the authorities’ reaction, especially global trade.
Asean-6 peers, with sectoral carve-outs and exemptions provid- 67% of the inflation basket rose by less than 4% year-on-year at tolerance for a period of rupee strength against expectations Radhika Rao, executive director and senior economist at DBS
ing temporary relief. That said, exemptions add to a little more the start of 2025, with only a small pocket above the mid-point that dollar inflows might be absorbed to rebuild reserves. A Bank
LIVEMINT.COM CORPORATE MONDAY, 7 APRIL 2025
HYDERABAD 07

Tariff hikes may spare Hyatt eyes tier-II India for next 50 hotels
Varuni Khosla

high-end Indian spirits

kar. Others will be in Kochi,
[email protected] Bhopal,Vithalapur,andJaipur,
NEW DELHI catering to business, leisure,
and religious travellers.

H
yatt Hotels will open "Thereisahugeupsidetothe
new properties in India hotel industry in the coming
and Southwest Asia, yearsinIndia.Wealsostilldon't
targeting growing domestic have the added advantage of
demand for experience-led some international business
26% US reciprocal tariffs on liquor unlikely to dent single malt exports stays and expanding into lei- comingin.Whatevernewhotel
sure and business hubs even as supply is being created, it is
international arrivals have yet likelytobeabsorbedfasterthan
Dhirendra Kumar & Varuni Khosla to pick up. therateatwhichhoteldemand
NEW DELHI The hospitality group plans is growing," Sharma added.

I
toaddsevenmorepropertiesto Whennewhotelsopen,more
ndia’s premium whisky, including sin- its 50 hotels in India in 2025 The hospitality group aims to reach 100 properties in the roomsareaddedtoageography
gle malts, headed to the US may not be andaimstoreach100by2030, country by 2030. REUTERS or market. These rooms get
hit even as the liquor sector may feel according to Sunjae Sharma, “absorbed” when they are
the heat of the additional 26% recipro- managingdirectorforthecom- said.“Corporatebusinessisnot new brand here. Like peers, booked regularly—so the new
cal tariffs introduced by the US. pany in India and Southwest back yet, but domestic travel is Hyatt Hotel is also moving to supply doesn't sit empty. The
“An increase in tariffs does have an Asia.“Thereisahugeupsideto still not relenting. This is fuel- experience-ledstays,withtrav- company also has three hotels
impact, but whether it will be significant the hotel industry in the com- ling demand in India." ellers' ability to pay for hotel underconstructioninGoa.Itis
or just a knee-jerk reaction will become ing years in India.” "As India progresses, tier II rooms growing within the expandingitsfootprintinareas
clear only after the release of the detailed The supply of new hotels in cities are also growing. The country. The company will like Nepal, with seven new
schedule in the next few days,” said Vinod the country is being absorbed propensity to pay for hotels in open a hotel in Kasauli, Hima- properties set to open in 2025.
Giri, director general, Brewers Associa- fasterthanexpectedevenwith- these cities is also growing. chal Pradesh, and has signed a In 2023, the company
tion of India (BAI). out the boost of international We're also turning our focus to 200-plus-roomGrandHyattin launchedthefive-starboutique
However, the additional duties may not business,saidthecountryhead destinations like Igatpuri in Timber Trail, Pawanoo and hotel brand, Hyatt Centric, in
impact premium spirits like single malts of the company that operates Maharashtra, Indore, in Mad- another one at Kandaghat in Uttarakhand’s Dehradun. Last
or other high-end categories as the prod- brands like Hyatt Regency and hya Pradesh and Vitthlapur, the same state. year, it signed 21 new hotel
ucts have a greater capacity to absorb tar- Alila Diwa. and Bharuch in Gujarat seri- Itwillalsohavepropertiesin deals across the region, rein-
iff-related costs, Giri said. The steep rise in "International travel has still ously," he said. “newleisureandculturaldesti- forcing its commitment to
duties could threaten the sector’s overall not come back and India's The next 48 hotels will nations” like Vrindavan, growth.
momentum, particularly in the case of travelisstillprimarilydrivenby mainly be branded Andaz and Kumbhalgarh, Katra, Jim Cor- For an extended version, visit
ethyl alcohol, said trade experts. The domestic consumption,” he JdV, while introducing one bett National Park, and Push- livemint.com
existing duty on the category was 3.3%. Tariff hikes for other nations may offset competitiveness gap for Indian brands
India’s presence in the global spirits
landscape remains modest but the coun- term, despite the current headwinds. who prefer the finest, even a 30% hike is
try has made notable gains in recent years, While the volume remains modest, the unlikely to have a serious impact,” said
with rising consumer recognition of new duty structure could discourage fur- Amar Sinha, chief operating officer at
Indian single malt brands. India’s exports ther growth, particularly for small and Radico Khaitan. “If costs rise marginally,
‘Tesla entry will help grow India EV market’
of alcohol and related spirits to the US rose medium-sized distillers, experts said. the segment is resilient enough to absorb
from $7.09 million in FY23 to $10.5 mil- However, large players in the premium the increase. We are not overly perturbed PTI its total sales in India coming coexist and you can see last 56,181 units, respectively.
lion in FY24, registering a growth of 48%, segment seem unfazed. by these changes and will adjust ourselves [email protected] from EVs, Pawah toldPTI in an year figures worldwide, we In February, Tesla opened
according to commerce ministry data. High-end Indian spirits, which have accordingly.” This is a stage where firms NEW DELHI interview. were the ones who were grow- recruitments for various roles
India sold around 675,000 are still trying to understand “I think the market should ing. We grew in electric sales in India, including business
IN HIGH SPIRITS
B
cases of single malt whisky in the ramifications of Trump’s MW Group India is grow. Anytime there’s more worldwide.” Not many manu- operations analyst and cus-
2023, growing 16% over 2022, reciprocal tariff move, Sinha unfazed by the prospect competition, facturers can talk tomer support specialist, in
according to Confederation IN 2023, 100,000 INDIA’S FY24 liquor SMALL and medium added. of Tesla entering the we’ve seen that Tesla opened about growth in what could be a precursor for
of Indian Alcoholic Beverage were cases of single malt exports to US grew distillers may feel the “This is (reciprocal tariff) a electric vehicle (EV) market in the market
exported out 48% to $10.5 million pressure, but larger recruitments for electric vehicles, the company’s entry into the
Companies. Domestic brands of 220,000 produced led by rising demand brands are relatively substantial increase but since India and feels it will help grow grows,” he said various roles in he asserted. country.
made up over half of the total. by domestic brands for single malts unfazed by tariff hike Indian single malt sales in US the segment, according to its when asked how India in February, In 2024, the On the BMW Group’s EV
Of the 220,000 cases of single are relatively low, it will have managing director and chief BMW is looking BMW Group sold growth prospects in India,
in what could be a
malt produced by local firms, minimal impact,” said Paul P. executive officer Vikram at how the EV a total of 426,594 Pawah said at present it
about 100,000 cases were exported. carved out a niche in mature markets such John, chairman, John Distilleries. “Also, Pawah. market will shape precursor for the f u l l y - e l e c t r i c accounts for 17% of total sales.
The US alcoholic beverages market was as the UK and Singapore, are not likely to tariffs have been increased for most coun- The group, which sold a up with Tesla company’s entry vehicles and The group had reported a
valued at $543.13 billion in 2024 and is feel the pinch. “Reciprocal taxes have tries producing single malts so overall sell- total of 1,249 units of electric entering India. achieved battery 7% increase in its car sales in
projected to grow to $806.44 billion by shaken the whole world—it’s a knee-jerk ing price in US will increase and I expect cars in India across two When asked EV sales growth India at 3,914 units in the Jan-
2033, at a CAGR of 4.99%, according to reaction and capital markets are affected. things to settle down in a few months.” brands—BMW and Mini—has about competition from the of 13.5 per cent. Both BMW uary-March quarter.
GlobeNewswire. However, when it comes to Radico Khai- [email protected] already sold 646 units in the American electric carmaker, and MINI brands posted dou- BMW is slated to launch one
This makes the American market a key tan’s premium brands, which are seen as For an extended version of the story go to first quarter of 2025 and is Pawah said,”In all the markets ble-digit battery EV growth, of its best-selling models, the
target for Indian exporters for the long a lifestyle statement and chosen by those livemint.com keeping its forecast of 15% of in the world, we coexist. We all with sales of 368,523 units and X3, in the second quarter.

‘Alternative energy to gain prominence’

Rituraj Baruah & oil, which is very true of India.”

Markets
Swarnali Mukherjee She, however, said coun-
tries in the ‘Global South’ may
NEW DELHI not benefit from global action
in terms of technological inno-

A
t a time protectionism vations, newer and alternative
is rising around the energy sources, and climate
world, global trade is action. With action towards
witnessing dynamic changes achieving energy transition
and several countries are mov- and curbing climate change is
ing away from globalization. expected in pockets without
Mallika Ishwaran, chief econo- large-scale global coordina-
mist, Shell, said countries are tion, Ishwaran said the Paris
likely to turn towards alterna- Agreement target to limit the
tive energy sources to achieve Mallika Ishwaran, chief economist, Shell, said countries will turn temperature increase to 1.5

Navigate Markets
energy security on their own. towards alternative energy sources to achieve energy security. degrees Celsius above pre-in-
In an interview, Ishwaran dustrial levels may not be met
said climate change will con- today. There’s a lot of geopoli- matter of ‘national interest’. in such a scenario.
tinue to be an issue of utmost tical, geo-economic fragmen- So, countries are doing things “It is still progress because of

with Precision!
importance and a matter of tation that you’re seeing, trad- like shifting away from fossil energy security, there’s a sense
national interest for countries ing blocs forming and regional fuels if they are imported. It’s of ‘let’s move away from
in a scenario where the global alliances forming. What we see about cutting import depend- imported fossil fuels towards
world is fragmented. is the response to this frag- ence and shifting to domestic domestic renewables, so that
Citing Shell’s projection on mentation is protectionism.” energy, which in the global drivesalotofchange.Butinavi-
energy security scenarios,
which talks about the dynam-
The cost of energy and tech-
nologies to implement alter-
south is renewables,” he said.
“It’s not necessarily for solar
ation and marine, you need
moreinternationalcooperation
Access real-time data and in-depth
ics of interdependence among
countries and the quest for
native energies will rise amid
the breakdown of the global-
or wind. We’re seeing energy
transition happen even in this
ontechnology,deployment,and
learning.Andthatdoesn’tsortof analysis with the Mint Market Dashboard.
energy security, she said, “A ised supply chain, she added. world because of the energy getunlockedinthisscenario.”
key scenario is ‘archipelagos’. “And again, it is a world where security lens for reducing your For an extended version of
So, it’s very much what you see you know climate is seen as a dependence on imported gas, the story go to livemint.com

VW delayed $1.4 bn tax case: Customs

Neha Joshi Skoda Auto said it was cooper- completed in three cases. Two
[email protected] ating with the authorities. more cases, namely Volks-
MUMBAI The core of the dispute, evi- wagen Group Sales India Ltd.
dentfromtheshow-causenoti- andVolkswagenIndiaPvt.Ltd.

C
ustoms authorities said ces of September and Novem- (both are group entities) were
that Skoda Auto Volks- ber 2024, is the company’s also pending, thus totaling to
wagen India Pvt. Ltd classificationofpartsandcom- ten SVB cases.”
delayed provisional tax assess- ponents imported for its “It remains an undisputed
ments of $1.4 billion (approxi- Aurangabad factory between fact that material information
mately ₹11,526 crore) by not March 2012 and July 2024. and documents critically
providing the required infor- The government argues the requiredforcompletionofSVB
mation on time. importsshouldhavebeenclas- proceedings are being fur-
The customs commissioner On 29 January, Skoda moved sified as CKD kits – unassem- nished by the Petitioners only
rejected the automaker’s chal- Bombay HC challenging the bled motor vehicle parts in tranches and it remains
lenge to the tax notice, assert- customs dept notice. MINT intended for local assembly. undisputed that still some
ing that the delays were “solely The customs commis- more information and docu-
attributable to the company importedoverthepast12years. sioner’saffidavit,submittedon ments are yet to be furnished,”
and not to any inaction on the Responding to Mint’s the direction of the high court, the affidavit stated.
partoftheauthorities”,accord- emailed query, the company saidtheproceedingswerepro- The department urged the
ing to an affidavit filed before said,“We,atŠkodaAutoVolks- tracted due to ongoing investi- court to dismiss Skoda’s writ
the Bombay High Court. Mint wagen India Pvt Ltd, acknowl- gations by the Special Valua- petition. It committed to
has reviewed a copy. edge the ongoing proceedings tion Branch (SVB), which scru- appointing an adjudicator in
Skoda Auto approached the and are actively pursuing all tinizes import transactions the rank of commissioner for Scan to explore now
high court on 29 January, con- legal remedies available to us between related parties. show-causenoticesandfinaliz-
testing the customs depart- under the law. As this matter is Thedepartmentsaidthat“as ingtheprovisionalassessments
ment’s demand for duty at the currently under legal review, many as eight proceedings within six to eight months. Mint App www.livemint.com Mint Newspaper
Completely Knocked Down we cannot provide further were pending, out of which Foranextendedversionofthe
(CKD)ratesoncarcomponents comments at this moment.” investigationreportshavebeen story, visit livemint.com
08 MONDAY, 7 APRIL 2025
HYDERABAD GLOBAL LIVEMINT.COM

China wanted to negotiate with Trump.

Now it’s arming for another trade war.
Communication between Washington and Beijing is at a standstill, raising the prospects of a long cycle of tariff retaliation
Lingling Wei tion, they found only closed doors. The fact that China didn’t appear China over the Panama Canal in his
[email protected] ForeignMinisterWangYisought to figure as a primary focus for inaugural address, leaders were

B
a meeting with Trump’s national- Trump in his first two months was caught off guard when Hong
eijing spent the first security adviser Mike Waltz in Feb- unnerving to senior Chinese offi- Kong’s CK Hutchison announced a
months of President ruary while he was in the U.S. for a cials who had expected negotia- deal to sell its Panama ports to a U.S.
Trump’s second term United Nations meeting, according tions between the two sides to investor group led by BlackRock.
trying—and failing—to to people who consult with senior begin almost right away. Trump’s statement that China
figure out the new Chinese officials. Wang, who had When Trump in his first two was operating the waterway and
administration’s approach to hoped to revive a line of communi- months raised China tariffs by 20%, that the U.S. was taking it back
China. Officials hoping to build cation he had had with Waltz’s pre- citing China’s role in the fentanyl was barely discussed among sen-
lines of communication with Wash- decessor, Jake Sullivan, got crisis in the U.S., senior Chinese ior leaders, according to the peo-
ington had no luck. nowhere with the Trump team. officials considered the fentanyl ple who consult with Chinese offi-
With Trump’s latest tariff The full-blown trade war during issue as a pretext intended to pres- cials. No one thought to reach out
action, the magnitude of his trade Trump’s first term had strength- sure Beijing, according to the peo- to CK Hutchison to pre-empt a
assault hit home and Beijing’s ened Xi’s resolve to fortify China ple who consult with Chinese offi- sale, they said.
hope for dialogue melted into frus- against a new Trump-like assault. cials. The Xi leadership didn’t rush If anything, the Xi leadership
tration and anger. And yet, in the absence of contacts to talk to Trump or offer him any thought it could use the Panama
Until now its response had been with the Trump team, Washing- concessions on the issue like lead- port issue as a bargaining chip in
restrained. On Friday, Beijing ton’s most formidable adversary ers from Canada and Mexico did. negotiations with the Trump
matched Trump’s 34% additional settled on a wait-and-see approach. Adding to Beijing’s wait-and-see administration, which they
tariffs and for the first time it hit all Gone was the swagger Xi’s team approach was its belief that tariff expected to start soon.
U.S. products, no exceptions. It also often projected in interactions with hikes threatened to push up infla- Now China is in a no-win situa-
restricted exports of certain rare- Biden officials. When Trump set tion in the U.S. and tank the U.S. tion, trying to regain leverage with
earth minerals, added U.S. compa- 10% tariffs on Chinese goods in two markets, prospects officials an antitrust review of the CK
nies to trade blacklists and aimed an separate rounds, China’s retaliation thought might force Trump to back Hutchison transaction. But any
antitrust probe at the China opera- was cautious. down, the people said. move to interfere with the deal
tions of U.S. chemicals and materi- Then came the shock of the extra The full-blown trade war during Donald Trump’s first term had strengthened Xi Jinping’s resolve to fortify China When U.S. markets started losing could give ammunition to Trump’s
als company DuPont. 34% tariffs Trump slapped on against a new Trump-like assault. REUTERS ground this year, some Chinese charge that China controls the
Trump’s response to its retalia- China on Wednesday. That brings commentators seized on the rise in canal.
tion suggested things would only the average U.S. import levies on Center at the Brookings Institution with Xi could come in the “not too people who consult with Chinese China’s own stock markets, riding Officials are eager to not repeat
get worse. In a social-media post, Chinese products to 76%, figuring in Washington. “Beijing is almost distant future.” But given the officials. Beijing had hoped that the sudden fame of Chinese artifi- the mistake and give up any lever-
Trump wrote, “CHINA PLAYED IT in the previous 20% tariffs and lev- entirely in a reactive posture.” heightened pressure from the U.S., Musk,whosecompanyTeslamakes cial-intelligence startup DeepSeek, age it might have with Washington
WRONG,THEYPANICKED—THE ies that predate Trump’s second Some foreign-policy and trade Chinese officials have indicated to half its electric vehicles in China, to revive a Xi adage that “the East is over TikTok as Trump weighs pro-
ONE THING THEY CANNOT term, according to Chad Bown, a analysts say Beijing was smart to U.S. executives that Xi is unlikely to could help counterbalance the rising and the West is in decline.” posals for divesting the app’s U.S.
AFFORD TO DO!” senior fellow at the Peterson Insti- wait it out as Trump has also signifi- visit the U.S. soon. Chinahard-linersonTrump’steam. “Within the Chinese govern- operations from Chinese parent
The lack of communication tute for International Economics— cantly bumped up import levies on Trump’s latest tariff moves Other U.S. business leaders, such ment, the view is that the U.S. is tak- ByteDance.
between the two sides shows no more than 20 times what it was traditional allies and other big trad- exceededbothmarkets’andgovern- asWallStreetfinanciersthatChinese ing measures to alienate itself,” said In recent meetings, according to
signs of letting up. What lies ahead before Trump launched his first ing partners, raising the specter of ments’ expectations, said the China leadershaveoftenturnedtoinperi- Craig Allen, a senior adviser to people familiar with the matter,
is likely to be a cycle of tit-for-tat trade war against China in 2018. a global backlash against the U.S. Finance 40 Forum, a Beijing think odsoftrouble,nowseelittleupsidein Washington-based consulting firm Chinese officials have indicated to
retaliation, making it hard to even “That amounts to a declaration of that could benefit China. tank, in a report Thursday. It esti- acting as a go-between for Beijing. Cohen Group, who attended a visiting U.S. business leaders that
start negotiations in the near term. ‘strategic decoupling’ with China,” A key reason for Beijing’s defen- matesChina’sexportstotheU.S.will “Whowantsthatrole?”saidasenior high-level economic forum in Bei- Beijing is firmly against any form of
Beijing had been cautiously opti- said a senior economist in Beijing, sive posture, according to the peo- drop by more than half as a result. American executive. “No one.” jing in late March. “They think the what they called “commercial rob-
misticintheTrumpadministration’s using a term from Trump’s first- ple who consult with senior Chi- No more back-channeling Beijing’s inability to think U.S. is on the wrong side and China bery” and in particular, against any
firstdays.XiJinpingdispatchedatop term trade czar, Robert Lighthizer. nese officials, is that while Beijing The Chinese political system beyond formal diplomatic protocol is on the right side.” sale that would involve China losing
envoy to attend Trump’s inaugura- “Can we find a pathway toward e x p l o r e s isn’t built to has proven to be a mismatch with a Trump’s sweeping tariffs could control over TikTok’s algorithm,
tion, a move that was seen as an negotiations under such maximum whether it’s still nimbly respond Trump team willing to engage only be an opportunity for China to the app’s secret formula for steering
openingforfruitfulcommunication. pressure? The lack of communica- possible to to a leader like with those closest to Xi. People attempt to capitalize on anger content to users.
While Trump had threatened to hit tion between the two sides might strike a trade Trump. Chinese close to Beijing’s thinking say that against Washington, especially For now, the people said, no
China with tariffs when campaign- make it difficult.” deal with Trump, Xi doesn’t want to leaders rely heavily on established when Trump’s people have sug- among the U.S.’s traditional allies negotiation over TikTok, or any
ing for president, he held off on Day Some policy advisers in Beijing be seen as an overearnest suitor. ways to engage with the outside gested Xi top aides they would like and trading partners. trade or economic matters, has yet
One. His only mention of China in described the stunned reaction “TrumpandXiarelockedinapar- world, including through back- to talk to—such as Xi’s chief of staff, There are big challenges. With taken place between the Trump
hisinauguralspeech,aboutwresting within the Chinese system over adox of pressure and pride,” said channeling with adversaries. Cai Qi —Beijing has recoiled, seeing the new U.S. tariffs, even more Chi- administration and the Chinese
the Panama Canal from Chinese Trump’s latest tariff increases. CraigSingleton,aseniorfellowatthe During Trump’s first term, Bei- the political risk from such improv- nesegoodswillbereroutedtocoun- government. China will expect an
control, raised no alarms. That, the advisers said, raises ques- FoundationforDefenseofDemocra- jing’s then-ambassador to Wash- isation as unacceptable. triesinEuropeandAsia,wherelead- off-ramp to enter into any kind of
Trump had indicated that he was tions about whether Beijing has the ciesinWashington.“Trump’sstrat- ington, Cui Tiankai, built connec- Meanwhile, China’s Commerce ers are already concerned about a compromise, or even talks, one of
open to a deal with China, and Bei- ability to effectively negotiate with egy mixes maximum pressure with tions with Trump’s son-in-law Minister Wang Wentao had no luck flood of Chinese products that have the people said—for instance, if
jing hoped to explore one centered Trump to alleviate pressure on the sudden diplomatic overtures—he Jared Kushner that helped facilitate with February letters to Commerce jeopardized jobs. Trump finds himself forced to pull
on what China was willing to offer, Chinese economy—and prevent a sees leverage and engagement as negotiations between the two capi- Secretary Howard Lutnick and U.S. In addition, Beijing has deeply back on tariffs. After his sweeping
such as more Chinese purchases of deeper decoupling with the U.S. complementary. Xi, by contrast, is tals. With the new Trump team, no Trade Representative Jamieson antagonized Europe with its sup- action, markets fell around the
American products and more Chi- “The Trump administration is methodical and risk-averse, relying such channel has been established. Greer. Instead, in late March, Greer port for Moscow during Russia’s world, but hardest in the U.S.
nese investment in the U.S. driving the agenda,” said Ryan on delay and discipline.” ThecurrentChineseambassador held an introductory video call with three-year-long invasion of For now, whoever is in the
But in the following weeks, Hass, a former national-security If Xi engages too soon, Singleton to Washington, Xie Feng, has tried Vice Premier He Lifeng, Wang’s Ukraine. driver’s seat of U.S.-China relations,
wherever senior Chinese officials official in the Obama administra- said, he risks looking weak. in vain to engage with Trump superior and a trusted Xi aide. Leverage lost it’s not Beijing.
tried to engage the new administra- tion and now director of the China Trump had suggested a meeting adviserElonMusk,accordingtothe ‘The wrong side’ Despite Trump’s warning to ©2025 DOW JONES & CO. INC.

Inside Elon Musk’s shock-and-awe months in the White House

Josh Dawsey, Annie Linskey, said this past week that Musk, and secret U.S. war plans at the SpaceX’s Starlink satellite ser- lieutenants, White House offi- “Maybe it’s just me, but I think
Brian Schwartz & who leads electric-vehicle Pentagon. Publicly, Trump vice there, impressing Trump, cials said. it’s a red flag,” Musk said.
Dana Mattioli maker Tesla and SpaceX, dismissed the report as “fake who saw it as a political win for Republicans around the Trump later used the same
among other enterprises, news.” Privately, he called the him.MuskpitchedtheDepart- country have learned that information in his speech to
WASHINGTON eventually had to return to his potential briefing a conflict of ment of Government Effi- Musk is sometimes the easiest Congress, even though some
companies. He is expected to interest given Tesla’s exten- ciency to Trump, who prom- way to get ideas in front of of his senior advisers were

I
n the end, all it took to remain an informal adviser sive operations in China and ised him broad freedom. Trump. James Fishback, the dubious of it. Trump’s aides
oust Postmaster General and friend to Trump, White was frustrated he didn’t know Musk was involved in many head of investment firm Azo- have sought more information
Louis DeJoy, whom Presi- House officials say. about it in advance. of the administration’s hiring ria, proposed on X a “DOGE from Musk about the claims,
dent Trump appointed in his Trump staffers, worried Thetwomencouldhardlybe decisions, aides said. dividend” where 20% of hoping to substantiate some of
first term, was a nudge from about how Musk could moredifferent:Trump,78years Meanwhile, Trump has DOGE’s savings would be them, people familiar with the
Elon Musk. become a political albatross, old, is a consummate host, trusted Musk with some of the returned to taxpayers, and matter said.
DuringaFridaymeetinglast highlighted to Trump the wants to be seen in coat and tie projects he is most interested tagged Musk. Trump’s senior aides and
monthatTrump’sBedminster, extent to which the Wisconsin atalmostalltimes,lovestoplay in. He made Musk a key go-be- Within two hours Musk said cabinet have grown frustrated
N.J.,club,Muskcomplainedto Supreme Court race—where a golf and has little interest in tween with Boeing over its he would share it with Trump, with how Musk carries out his
the president that DeJoy was liberal judge won despite technology. Musk, 53, usually delayed new model of Air who endorsed the idea the haphazard foreign-aid and
resistinghiscost-cuttingefforts Musk and groups tied to him wearsaT-shirtandhat—evenin Donald Trump has tried to smooth over cracks in the Force One, according to peo- next day at a Miami invest- other cuts, even if they broadly
at the U.S. Postal Service, spending some $20 million to the White House—is awkward relationship between Elon Musk and the rest of his team. AFP ple familiar with the matter, ment conference sponsored agree with his goals.
according to people briefed on defeat her—became a contest in conversation and has little with Musk demanding to by the Saudi government. Senators also have started to
the conversation. about Musk. interest in sports. March, where Musk tried to sort of character that reflects speak to the planemaker’s Lobbyists say it is impossi- privately complain. After
Trump had grown annoyed But Musk has also helped They nevertheless have explain his work to others at well on the United States.“ engineers about the progress. ble to get on Musk’s calendar Musk brandished a chain saw
with DeJoy already, and Trump by absorbing criticism forged a symbiotic bond. The the event. As the 2024 campaign got DOGE dividend so they create campaigns hop- on stage at the CPAC confer-
wanted the postal service pri- for government cuts and other two men speak daily, often “I think they both think like under way, though, Musk On a recent evening at Mar- ing to reach him on X, in the ence to underscore his cuts,
vate and profitable, so he politically unpopular moves many times, and Musk flits in athletes, and athletes hate los- becameincreasinglydistrustful a-Lago, Musk was on the patio hopes he might then share the Sen. Lindsey Graham (R, S.C.)
planned to fire him the follow- that might otherwise be andoutofmeetingsintheWest ing,” said Rep. Jim Jordan (R., of Democrats. He repeatedly near Trump, twirling silver- material with Trump. told other Senate Republicans
ing week, the people said. By trained on Trump himself. WingandOvalOffice,wherehe Ohio) who was with the two called Ronna McDaniel, who ware around on his pinkie as Musk also has a Trump-like that he imagined that clip
Monday, DeJoy announced The president has tried to has walk-in privileges. men at the match. chairedtheRepublicanNational Trump entertained others. tendency to absorb new infor- would be in every campaign
his resignation, effective smooth over cracks in the rela- Trump has told others he Trump still sees Musk as Committeeatthetime,tocom- Musk’s influence with mation and then add his own commercial against vulnera-
immediately. tionshipbetweenMuskandthe finds Musk to be funny, that he another business leader who plainaboutthenumberofpeo- Trump is partially powered by spin to it, at times over-extra- ble senators next year. A
In the months since Trump rest of his team. After an early appreciates both the world’s experienced the pain associ- ple surging across the border, his close relationship with Ste- polating. In late February, a spokeswoman for Graham said
took office, Musk has alienated Marchcabinetmeeting,where richest man’s wealth, and the ated with going from being and worried that the party phen Miller, Trump’s domes- DOGE aide called Musk at the he had worked closely with
some Trump aides with his severalcabinetsecretariesaired interest other world leaders beloved to needed to tic-policy adviser and the conservative CPAC confer- Musk on budget issues.
chaotic approach to his role. grievances about Musk, the take in Musk. Members at ridiculed, do more to architect of the executive ence to say they had identified Trumphasnotedtoadvisers
Worried Republicans are con- president pulled aside chief of Trump’s Mar-a-Lago club say said people ensure the orders, and Miller’s wife, Katie, people who were listed in the howpopularitistocutthegov-
cerned his unpopularity could staffSusieWilesandtoldherto Musk is with Trump almost who have election a special government Social Security database as ernment, and bragged that
cost them future elections, as it improverelationsbetweenthe every weekend when the pres- spent time around both of wasn’t stolen. employee who is viewed as one being more than 120 years old, while other Republicans have
did in Wisconsin this week. agencies and the man he ident is there. The two talk them. Last year, he said at a Palm of Musk’s top aides. Katie Mil- but didn’t say they had been promisedtomakesuchcuts,he
Through it all, Musk has empowered to cut them. often about their skepticism Karoline Leavitt, the White Beach, Fla., breakfast that he ler has been known to invoke issued inappropriate checks. is the only one who has done it.
retained his status as among Wiles needed to manage toward many government House press secretary, called wasn’t a Republican and had Musk’s name and give orders Musk told the aide to dig Aboard Air Force One on
the most influential advisers in Musk, Trump said, making it agencies, their hatred of for- Musk a critical part of Trump’s never voted for Trump—but liberally at the White House, to deeper, according to a person Thursday, Trump told report-
Trump’s White House—pro- clear that he backed Musk’s eign aid and the need to deport team. “He’s doing a tremen- that billionaires needed to the consternation of other who heard the remarks. ers that Musk is “fantastic,” but
ducing shock-and-awe, for a government-cutting zeal but illegal immigrants and close dous job cutting waste, fraud, back Trump to “save our coun- staffers skeptical of her sta- Then he got on stage and left room for his exit.
shock-and-awe president— sympathized with complaints the U.S. border. and abuse from our federal try.” He went all in after Trump tus—like Musk’s—as an riffed about how his team Musk will step back and
and using his unpaid perch to from his cabinet. Wiles now Senior White House offi- government,” she said. was shot in July at a campaign unpaid, temporary employee found that the Social Security return to running his busi-
reshape the federal bureauc- has two long meetings a week cials are even reading a popu- Shift to supporting Trump rally in Pennsylvania, rather than a salaried one. databases included more than nesses, Trump said. “There’s a
racy, punish critics and serve with Musk, people briefed on lar 2023 biography of Musk in While Trump’s political impressed with his heroism. Musk has an office on the 400 million Americans who point at which time Elon’s
as a key interlocutor to Trump. the meetings said. an attempt to better under- persona has changed little He ultimately spent $300 mil- second floor of the White were alive and eligible for the gotta have to leave,” he said,
Aides expect Musk to leave Trump was also unhappy stand him and his proclivities. since 2016, Musk’s has lion on November elections. House, but the door is rarely benefit—more than the cur- adding that time will come in
his formal White House post when he learned in mid- Trump brought Musk to the changed a lot. That year, Musk As hurricanes destroyed opened, and the lights are rent population of Americans “a few months.”
after his short-term assign- March that Musk was sched- NCAA wrestling champion- said about Trump on CNBC: swaths of North Carolina, in never on, with Musk working of any age—and one person ©2025 DOW JONES & CO. INC.
ment ends. Trump himself uled to get a briefing on China ship in Philadelphia in late “He doesn’t seem to have the October,Muskagreedtoinstall across the street instead with was shown as 360 years old. [email protected]
LIVEMINT.COM NEWS WRAP MONDAY, 7 APRIL 2025
HYDERABAD 09

NEWS
₹38.5k cr
THE TOTAL value of transactions
₹14.7k cr
THE ESTIMATED size of India’s Business
₹500 cr
THE AMOUNT NBFC IIFL Finance plans
9.69%
THE REAL economic growth rate of Tamil
11
THE number of Indian fishermen Sri
IN enabled by the government e- Correspondent (BC) sector in FY2025, to raise through non-convertible Nadu for the financial year 2024-25, the Lanka released as a goodwill gesture
NUMBERS marketplace (GeM) for 30,000 startups,
according to the commerce ministry.
growing at a compound annual growth
rate of 19%, according to BLS E-Services.
debentures towards refinancing, onward
lending and general corporate expenses.
highest among Indian states. Its nominal
growth rate was 14.02% for the year.
following PM Narendra Modi’s discussions
with Sri Lankan President Dissanayake.

HOWINDIALIVES.COM

Amul total revenue ENHANCING CONNECTIVITY Toyota for volume

likely ₹1 tn by FY26 growth this fiscal

I T
ndia’s leading dairy brand Amul’s revenue is oyota Kirloskar Motor aims to maintain
expected to rise more than 10% to about ₹1 sales volume growth in the current fiscal
trillion this fiscal due to rising consumer with plans to expand the sales network
demand for milk and its products. and introduce new models, according to a
Gujarat Cooperative Milk Marketing senior company executive.
Federation Ltd (GCMMF) sells dairy products The firm, which reported record sales in the
under the Amul brand. last fiscal, expects demand for its SUVs (sports
Besides, its 18 district cooperative milk utility vehicles) and MPVs (multi-purpose
producer’s unions sell on their own in local vehicles) to remain robust in the ongoing fiscal.
district markets. In an interaction with PTI, Toyota Kirloskar
In an interview with PTI, GCMMF managing Motor Vice president (sales-service-used car
director Jayen Mehta said the total revenue of business) Varinder Wadhwa said the carmaker
the Amul brand is likely to touch ₹1 trillion in plans to increase its production capacity and
2025-26 fiscal against around ₹90,000 crore in explore electrification, including the
the previous year. “At GCMMF, we are targeting introduction of battery electric vehicles as part
a 14% growth this fiscal to ₹75,000 crore,” of its commitment towards carbon neutrality.
Mehta said, anticipating demand growth. Toyota currently has around 1,100 sales
The turnover from direct marketing of Amul outlets across the country. Wadhwa noted that
products by 18 member unions will be around the firm is looking to expand its presence in
₹25,000 crore this fiscal, taking the total rural areas and smaller towns in the country. PTI
revenue to ₹1 trillion. PTI

A train crosses the newly inaugurated Pamban sea bridge, which is India’s first vertical lift sea bridge, during the flagging off of the new Rameswaram-
Tambaram (Chennai) train service by Prime Minister Narendra Modi in Rameswaram in Tamil Nadu on Sunday. PM Modi also flagged off a Coast
Guard ship that sailed under the bridge. Spanning 2.08 kilometres, the bridge comprises 99 spans and a 72.5-metre-long vertical lift span that can be
raised up to 17 metres, allowing the smooth passage of large ships while ensuring seamless train operations. PTI

‘More women participating in A panel headed by Congress MP Digvijay Singh

economy, education, business’

Billionaire Gautam Adani’s group has shown made the observations in its report. HT
interest in acquiring Jaiprakash Associates. AFP

Adani among 26 in India yet to secure

fray to acquire JAL offshore campuses

I
ndia is yet to secure a campus from any of the

B
illionaire Gautam Adani’s group, mining leading global universities, including Ivy
mogul Anil Agarwal’s Vedanta and yoga Female participation in capital market is also growing, but overall numbers are small League institutions, and should make efforts
guru Baba Ramdev’s Patanjali Ayurveda for it, a Parliamentary panel has noted.
are among the 26 suitors looking to acquire The panel, headed by Congress Member of
Jaiprakash Associates Ltd (JAL). Rhik Kundu womenaged15andaboveimprovedsignificantly, headed proprietary establishments across manu- Parliament (MP) Digvijay Singh, made the
Others who showed interest in acquiring [email protected] rising from 49.8% in 2017-18 to 60.1% in 2023-2, facturing, trade, and services over the past three observations in its report tabled in the Rajya
Jaiprakash Associates, currently under NEW DELHI the report said. years (2021-22 to 2023-24), reflecting growing Sabha earlier this week.

W
insolvency proceedings initiated to recover In the financial sector, women own 39.2% of all economic independence. The report said that the committee noted that
defaulted loans, include Ahmedabad-based omen in India are steadily gain- bank accounts and contribute to 39.7% of total Political participation among women has in recent years, there has been a notable trend of
Torrent Group, Jindal Power, Dalmia Cement, ing ground across education, deposits, with their presence most prominent in strengthened as well, according to MoSPI. foreign universities establishing campuses in
GRM Business, Oberoi Realty and Kotak finance,enterpriseandpolitical rural areas, where The number of India which is driven by India’s vast student
Alternate Asset Managers, according to a filing participation, the ministry of they account for male and female market and the government’s efforts to increase
by the firm to stock exchanges. statistics and programme 42.2% of account In the financial sector, women voters grew from collaborations and joint degrees.
In the filing, JAL, which has business interests implementation(MoSPI)saidinareportpublished holders. own 39.2% of all bank accounts 173.2 million in 1952 However, India is yet to secure a campus from
spanning real estate, cement manufacturing, on Sunday. Female participa- to 978 million in any of the leading global universities (the Ivy
hospitality, and engineering & construction, The26theditionofMoSPI’sWomenandMenin tion in the capital and contribute to 39.7% of total 2024, with an Leagues, New York University, Carnegie Mellon
issued the provisional list of eligible Prospective India 2024 report noted that the Gender Parity market is also grow- deposits increasing share of University, etc). The Committee recommended
Resolution Applicants (PRAs) under Regulation Index (GPI) for enrolments at the primary and ing, but overall females. that the Department of Higher Education
36A (10) of Insolvency and Bankruptcy Board of highersecondarywashigherinFY24thaninFY23 numbers are small. In the 2024 gen- should make efforts to secure the same. PTI
India (Insolvency Resolution Process for and FY22, meaning more girls are being enrolled Between March 2021 and November 2024, the eral elections, female voter turnout (65.8%) sur-
Corporate Persons) Regulations 2016. now. number of DEMAT accounts surged from 33.26 passed male turnout, even as it dipped slightly
JAL was admitted into the Corporate At upper primary and elementary levels the million to 143.02 million. Of these. the number of from 67.2% in 2019.
Insolvency Resolution Process through the
National Company Law Tribunal, Allahabad
enrolmentnumbersweremoreorlessthesamefor
boys and girls.
women account holders rose from 6.67 million in
2021 to 27.71 million in 2024.
The number of startups recognized by DPIIT
withatleastonewomandirectorrosesharplyfrom
‘Doing better than
Bench, order dated 3 June 2024. PTI TheLabourForceParticipationRate(LFPR)for The MoSPI report indicated a rise in female- 1,943 in 2017 to 17,405 in 2024.
others after tariffs’

A
sserting that a situation of confusion
Saudis slash oil prices for Asia after surprise output hike EV sales set for persists in the world after the recent
imposition of reciprocal tariffs by the US,
rapid growth: Garg National Stock Exchange (NSE) managing

S
audi Arabia slashed its flagship oil price by the most in more than two director and chief executive officer Ashish
years, just days after the OPEC+ (Organization of the Petroleum Kumar Chauhan on Sunday said India is doing

T
Exporting Countries+) alliance announced an unexpectedly large he electric vehicle (EV) segment is set for much better than other countries.
output hike. rapid growth as its penetration in the He said a clear situation is expected to emerge
State producer Saudi Aramco will lower Arab Light crude to its biggest domestic passenger vehicle segment may within the next one or two weeks as there will be
buyers in Asia by $2.30 a barrel for May, according to a price list seen by touch 12-13% over the next four-five years amid negotiations and the duty structure will be
Bloomberg. favourable government policies and mainstream stabilized.
While the large reduction comes on the back of some of the kingdom’s OEMs (original equipment manufacturers) driving The NSE chief said it seems that the Indian
biggest price increases in years, the move was still bigger than expected in a in models to cater to diverse customer needs, share market is doing much better than other
survey of traders and refiners. It follows an OPEC+ output increase that Hyundai Motor India whole time director and countries post the US decision on reciprocal
delegates privately said was intended to instill better discipline among chief operating officer Tarun Garg said. tariff. “You must have seen the market for the
members like Kazakhstan and Iraq. There is now clarity in the industry that EVs last 2-3 days. America has made a decision on
OPEC+, in which Saudi Arabia plays a leading role alongside Russia, are the way forward in the country, Garg added. tax, which is applicable to every country in the
announced on 3 April that it would add more than 400,000 barrels a day “Clarity was lacking earlier whether it would be world. They have also imposed new import
back into the global market next month, a supply boost three times larger EVs or hybrid or any other technology. Now, it is duties for India, which is doing better than other
than previously signposted. BLOOMBERG Saudi will lower Arab Light crude to its biggest buyers in Asia. REUTERS clear that all the policies favour the EVs.” PTI countries,” he said. PTI

Protein powers new launches for dairy and snacking companies

Suneera Tandon diet. Children and women are ing demand for high-protein 21% to 26% of food-related The company, which mar- change in consumers, we have
[email protected] particularly vulnerable to pro- foods, which are available in spending in 2012 to just 13% to kets packaged dairy under launched the range. Protein
NEW DELHI tein deficiency. different forms and formats. 15% in 2024. According to a brands such as Gowardhan deficiency is a key challenge in
The entry of larger players is The company also plans to February report by Deloitte on ghee, Go cheese, and Pride of India, so offering food that is

I
ndia is witnessing a surge in set to drive down prices and expand its protein range with India's changing consumption Cows milk, will now sell low- protein-rich is an opportu-
demand for protein-en- improve access to such prod- Greek yogurt and high-pro- habits, this decline has been fat and high-protein paneer, nity," Akshali Shah, executive
riched foods and beverages, ucts, said companies. tein paneer. accompanied by flavoured Greek director of Parag Milk Food,
prompting major dairy players Mother Dairy recently “Our studies indicate that increased spend- Nearly 70-80% of yoghurt (contain- said in an interview with Mint.
like Amul and Mother Dairy, launched Pro Milk in Delhi- 70% to 80% of Indian consum- ing on protein- Indians fail to ing 8g of protein), Gujarat Co-operative Milk
companies such as Parag NCR, a protein-enriched milk ers consume less protein in rich foods such as meet their daily protein bars and Marketing Federation Ltd,
Foods, and startups like Yoga in pouch format. It offers 30% their daily diet. This is more eggs, fish and protein snacks. which sells products under the
Bar to actively pursue this seg- more protein than regular pronounced among vegetari- meat, alongside The market for Amul brand, has been launch-
requirements,
ment. milk and is priced at ₹70 per ans. This issue has been identi- processed foods, protein-rich ing a range of protein bevera-
Companies cited greater litre, slightly higher than their fied by various companies, and dining out and according to products is ges, including lassi, milk-
demand for such products in full-cream milk at ₹68 per they are doing their bit to build ordering in. Mother Dairy expanding rap- shakes (priced at ₹40 for 180
urban areas and consumer litre. the category,” Manish Band- Mother Dairy’s MD Manish Bandlish at the launch of Pro Milk. PTI Parag Milk idly, the company ml), along with milk with
awareness as driving growth According to the company, lish, managing director, Foods announced said, explaining greater protein content, and
for protein-enriched products nearly 70-80% of Indians fail Mother Dairy, said in an inter- value-added products. “Pro India’s consumption patterns a broader portfolio of protein- its entry into the market. protein paneer.
in India. Indians, in general, to meet their daily protein view with Mint. milk will give you around 40 have also undergone signifi- enriched foods that expanded “Consumers are becoming Bengaluru-based Sproutlife
face high protein deficiency. A requirements despite the var- Bandlish said urban Indian grams of more protein; it will cant shifts. beyond its existing sports more conscious—they want to Foods, which started selling
very small percentage of the ied forms of protein products consumers are becoming help democratize the overall Expenditure on essential nutrition range, which know the source of the prod- energy bars, has expanded its
population consumes ade- available in the market. Pro- more aware of their dietary protein market,” he added. items such as cereals has included muscle-building uct, etc. People want to know range to include protein bis-
quate protein in their daily tein deficiency in India is driv- requirements and are seeking Between 2012 and 2024, decreased dramatically, from protein products. carb content. Seeing this latest cuits, shakes, and chocolates.
10 MONDAY, 7 APRIL 2025
HYDERABAD LONG STORY LIVEMINT.COM

DECODING TRUMP’S
‘LIBERATION DAY’ TARIFFS
As the dust settles on Trump’s new tariff wall, Mint explains the implications—for the US, India and rest of the world
REUTERS
N. Madhavan
mint
[email protected]
SHORT
CHENNAI STORY

I
n 1947, the US led 23 nations into sign-
ing the General Agreement on Tariffs WHAT
and Trade (GATT). The effort was to
lower trade and tariff barriers among President Trump’s new
nations. Over the next 48 years, it took measures have taken US’
eight rounds of painstaking negotiations weighted average tariffs to a
before GATT could evolve into the World staggering 24%. Through higher
Trade Organization (WTO) in 1995. tariffs, he is hoping to revive
On 2 April, in a speech that lasted 48 American manufacturing.
minutes, US President Donald Trump
effectively shredded this multilateral
trading system and signalled a fundamen- BUT
tal shift in US trade policy.
Speaking from the White House Rose Replicating the supply chain in
Garden, Trump levied what he called the US will be costly. The
reciprocal tariffs on all trading partners. tariffs can create 1.5 million
The quantum of tariffs stunned the world. manufacturing jobs but the
He announced a universal tariff of 10% on economy could lose 3.5 million
all imports. But countries which enjoyed jobs due to a recession.
a trade surplus with the US were hit with
much higher tariffs. No trade partner, big
or small, was spared. China was slapped NOW
with a 34% duty but if one added the 20%
tariff imposed earlier, it totalled 54%. Viet- The tariffs will have lesser impact
nam got 46%; India 26% and the European on India, but as the global
Union 20%. These duties are over and economy slows down,
above what various countries were India’s exports will decline.
charged earlier. Low-priced imports can flood
Even remote uninhabited islands such the domestic market.
as Heard and McDonalds Islands, located
4,100km from Western Australia and
home to penguins and seals, were hit economy to grow at 3.3%. Its next update
with a 10% tariff. Australian territories may see a downward revision. The WTO
such as Norfolk Island, Cocos Islands and has said that in 2025 global trade will con-
Christmas Island with an aggregate pop- tract by 1% due to the trade war.
ulation of 4,236 people were tariffed too.
So was Diego Garcia, a British territory in A SLAP ON THE WRIST COLLATERAL DAMAGE
the Indian Ocean with no permanent
population. It just houses a joint UK-US
military base.
Trump hasn’t spared any trading partner. The catalyst T rump’s tariffs, experts believe, will
have less impact on India compared
to its peers. This is because it has been
A few countries did not feature in the 2 US reciprocal tariffs on goods from select countries (in %) Can tariffs increase India-US bilateral trade? slapped with a lower tariff relative to oth-
April list— Canada, Mexico, Russia, North India's bilateral merchandise trade with the US, in $ billion ers. This should give India a competitive
Korea, Cuba and Belarus. Canada and Cambodia 132 129 advantage when it comes to sectors such
49 124
Mexico were spared because Trump had 113 as textiles, leather and auto components.
already levied a 25% tariff on all imports
Vietnam 46 Also, its major export sectors, pharmaceu-
87 92
from the two nations excluding those Sri Lanka 44 ticals and information technology, have
74 78
items that fall under the United States- 66 67 been spared, at least for now.
Mexico-Canada Agreement (USMCA). Bangladesh 37 But India cannot completely escape the
Russia, Cuba, North Korea and Belarus Thailand 36 impact. As the US and global economy
were excluded as they are heavily sanc- slow down, India’s exports will decline.
tioned and have no ‘meaningful trade’ China 34 Also, other countries that have been
with the US. 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 slapped with higher duties such as China
Taiwan 32
These measures, including the 25% Source: US Census Bureau and Vietnam will flood their goods at
duty imposed earlier on all automobile India 26 lower cost, potentially pricing Indian
and auto parts imports, take US’ weighted exporters out of many markets.
average tariffs to a staggering 24%. It was European Union 20 The risk Sitting duck For 2025-26, the Reserve Bank of India
around 3% in December last year. Reciprocal tariffs could push the US Chinese imports into India have risen has estimated GDP growth at 6.7%. This
According to Fitch Ratings, this would Source: The US White House economy into a recession . sharply in recent years. now appears challenging. Goldman Sachs
be the highest tariff wall the US has Year-on-year growth in US real GDP (in %) China's imports to India, in $ billion
has lowered the forecast by 20 basis
erected since 1909. And Trump has just points. Morgan Stanley has pegged a 30 to
ignited a global trade war—China has Trillion dollar angst 6.1 2019-20 65.3 60 basis points reduction in growth.
retaliated by imposing a 34% tariff on The aggregate trade deficit of US’ top 10 trading partners The biggest worry for India will be in
American exports; other countries are 2020-21 65.2 protecting the domestic industry. Low or
exceeds $1 trillion.
weighing their options. Stock markets predatorily priced imports are set to flood
2.9
2021-22 94.6
across the world have swooned since his US trade deficit with top trading partners (in $ billion) the country from China, which is sitting
2.5 2.5 2.2
announcement. 2022-23 98.5 on excess capacity. China’s domestic
China 295 demand is weak and the inability to export
‘LOOTED, PILLAGED’ 2023-24 101.7 to the US worsens this situation. A price-

“M y fellow Americans, this is libera-

tion day. April 2, 2025, will be
forever remembered as the day American
Mexico

Vietnam 124
172
2021 2022 2023 2024
GDP is gross domestic product; E: estimate
2025 (E) 2024-25*

*Data for April-December 2024

84.6
conscious market such as India is a big
opportunity for China. Data suggests that
imports from China have already seen a
industry was reborn, the day America’s Source: World Bank Source: Commerce ministry
sharp increase in recent times. Indian
destiny was reclaimed and the day we
Ireland 87 industry has been urging the government
began to make America wealthy again,” to tighten its defences.
Germany 85
Trump said, explaining the rationale The dive 6,500 The Indian government, meanwhile, is
behind the tariffs. Taiwan 74 In the last six months, S&P negotiating a bilateral trade agreement
“For decades, the US has been looted, 500, a gauge of large-cap 6,100 with the US. The two nations are looking
pillaged, raped and plundered by nations Japan 69 US equities, has crashed 5,762.48 to more than double their trade to $500
near and far, both friend and foe nearly 12% billion. The industry is hoping for a quick
alike...destroying the beautiful American South Korea 66 5,700 deal that could end the reciprocal tariffs.
dream,” he added. “It will not happen any- Daily closing price of S&P 500
more.” Canada 63 ACUTE PAIN?
His anger was singularly directed at the
large trade deficit the US shares with its
trade partners. In 2024, it ran up to $1.2
India 46
5,300

5,074.08
T
he biggest question in everyone’s
mind is whether Trump will roll back
the tariffs. In the last six months, the S&P
trillion. For years, he has considered the Note: Data is for merchandise trade deficit in 2024 4,900 500, a gauge of large-cap US equities, has
trade deficit as the main cause of Amer- Source: US Census Bureau Source: Bloomberg 30 Sep 2024 04 Apr 2025 crashed nearly 12%. Investors in the US
ica’s decline. have lost as much as $9 trillion since
He and his officials have conveniently SATISH KUMAR/MINT Trump took office. Economists have
ignored the fact that the US was the big- warned of economic troubles ahead. The
gest beneficiary of the post-Second World president has said that he is prepared to
War multilateral trading system, his crit- American manufacturing. In 1940, iron supply chain brought in efficiencies by increase in jobs in the steel sector was far recession by year-end has risen to 60%. suffer ‘temporary’ pain.
ics have pointed out. It made America very ore and rubber entered one end of Ford’s taking advantage of the lowest available less than those lost elsewhere on Inflation is also expected to rise. Jer- Stock markets do not bother him as
rich and gave it the status of a super- River Rouge complex and completed cars cost across the world. account of higher prices the tariffs ome Powell, the Federal Reserve chair- they did in his first term. He expects coun-
power—economically and militarily. rolled out of the other. Today, a vehicle Replicating the supply chain in the US caused. A similar scenario is set to play man, warned that the tariffs will acceler- tries that depend on the US market to rush
Through higher tariffs, Trump hopes to crosses the US-Canada border multiple will be costly and inefficient. Experts are out again, on a larger scale. It is expected ate inflation and dampen economic in and strike deals. Vietnam has already
not only erase the trade deficit but restore times during production to make the not sure how many companies will set up that the tariffs will, at best, create 1.5 mil- growth. “We are well positioned ed to wait reached out. Others, he believes, will
Americanmanufacturing manufacturing process their manufacturing units fearing the lion manufacturing jobs. But according for greater clarity before con- come too.
to its past glory. He has efficient. The supply tariffs. Setting up factories is expensive to Moody’s Analytics, the economy will sidering any adjustments to ourr Nonetheless, Trump, and his
said that his tariff meas- Trump has just ignited a chain that once existed, and most large players have invested in lose 3.5 million jobs if the US heads into policy stance,” he said speakingg advisers, may need to revisit his-
ures will increase foreign global trade war—China has he wrote, is completely capacities in countries such as Vietnam, a recession because of the tariffs. to business journalists in Vir- tory lessons. In 1930, President
investments as more fac- eroded. Mexico, India and elsewhere fairly ginia on Friday. Consulting firm Herbert Hoover signed the
tories are built in the US. retaliated by imposing a 34% In the 1950s, the share recently—after the US-China trade war RECESSION IS COMING EY has said that consumer pri- Smoot-Hawley Tariff Act, a pro-
He also hopes to raise
substantial resources
tariff on American exports; of manufacturing in US surfaced during Trump 1.0 and during
gross domestic product the covid-19 pandemic.
throughtariffs,estimated other countries are weighing (GDP) was 25%. Today, it Some companies such as Hyundai,
I
n the middle of all this uncertainty, one ces will increase by 1% by year-
thing is certain—an economic fallout. end, pushing inflation to 4% Scan the
Trump’s actions have further hit con- levels. It was 2.8% in February. QR code
tectionist trade measure that
imposed a 25% duty on all
imports. Major trading partners
at$100billion,tofundhis is 10%. Higher wages and Honda, Apple, Volvo, Audi and Mercedes- sumer sentiment. This will hold them The impact on low-income for more Canada and Europe retaliated.
proposed tax breaks. their options. production costs had Benz have said they will increase produc- back from spending. With 70% of US GDP households will be $1,000 Long Stories US exports fell sharply, and the
moved manufacturing tion in the US. Even if they do, the produc- growth dependent on consumer spend- annually, it added. measure worsened the Great
JOBS GAINED, JOBS LOST to low-cost economies like China first and tion lines would be heavily automated. ing, such a scenario will cause growth to If the US, the world’s largest economy, Depression. In 1934, President Franklin

F ew agree with his strategy. Writing in then to countries such as Thailand, Mex- They are unlikely to create a huge number slow down. Moody’s Analytics expects slows down, global growth will be hit too. Roosevelt had to repeal the tariffs.
the newspaper The Hill, Macabe Keli- ico and India. According to data from the of jobs, as Trump expects.
her, associate professor at Southern Meth- US Labour Department, factory jobs
GDP growth to reduce by 2% and the International Monetary Fund (IMF) chief The world is ‘flatter’ now with countries
Tariffs in the past have not revived unemployment rate to increase to 7.5% Kristalina Georgieva warned that Trump’s more deeply coupled. In 1930, imports
odist University, Dallas, and an expert on accounted for 33% of the total workforce factory jobs. According to a Federal from the current 4.1%. Worse, the risk of a tariffs pose a significant threat to the accounted for just 3% of US’ GDP. Today
East Asian economic development, in the 1950s. In 2024, it was just 8.4%. Reserve study, when Trump imposed recession has increased. JP Morgan, an already sluggish global economy. The it is at 14%. The pain the country has to
argued that tariffs alone cannot rebuild Manufacturing left the US as the global steel tariffs during his first term, the investment bank, says the odds of a US IMF, in January, projected the world bear could be more acute.
LIVEMINT.COM MINT MONEY MONDAY, 7 APRIL 2025
HYDERABAD 11

Dated tax trick or secret weapon: POWER

POINT
Can indexation still pack a punch? V I J AY K U M A R P U R I

We welcome your views and comments at

[email protected]

Difference between 12.5% without indexation and 20% with it lies in the fine print, affecting your final tax bill
IS YOUR IPHONE GST
Jash Kriplani "If we consider the 20% scenario,
HACK CLEVER? NOT
[email protected]
MUMBAI
Capital gains: how indexation affects set-offs the capital gain is computed after the
original cost has been adjusted for IF THE TAXMAN ASKS

B
Capital loss from property sale cannot be adjusted if indexation is used; set-off is permitted only without indexation
inflation (indexed), and this can
udget 2024 scrapped the Indexation: key conditions and limits potentially reduce the taxable gain,”

O
What's changed
indexation benefit—a pro-  Indexation allowed, but only under specific conditions said Shobhit Agarwal, managing n social media, tax-saving hacks often get more likes than
vision that allowed adjust-  Budget 2024 removed director and chief executive officer at they deserve. A popular tip doing the rounds is: “Buy an
indexation benefit for  Property must be acquired before 23 July 2024
ing prices for inflation—to  Capital loss with indexation can't be set off against capital gains Anarock Capital. “Conversely, the iPhone for ₹2 lakh and claim 18% GST input credit. You
property sales
make tax rates uniform 12.5% rate is levied on the full differ- save ₹36,000!” On paper, this sounds like a smooth strategy. But
 Grandfathering applies to  Capital loss without indexation can be set off
across asset classes. For real estate, property purchased before 23 ence between the sale price and the as with most things involving tax, the devil lies in the details. Let’s
 Only resident individuals and HUFs are eligible for indexation
the tax on long-term capital gains July 2024* original purchase cost, without break down what this GST input tax credit (ITC) really means —
(LTCG) — when a property is held for  Not available to NRIs, companies, firms, or LLPs adjustments. If appreciation over- and why blindly following such advice could cost you more in the
 LTCG tax will be calculated for
at least two years—was reduced from  Applies to residential, commercial property and land takes inflation substantially, the over- long run, not just in money but also peace of mind.
both new & old tax scheme:
20% with the indexation benefit to 1) 20% with indexation  Indexation on under-construction properties is not straightforward** all tax payable at the lower flat rate Conditions to avail GST ITC on gadgets
12.5% without it. (old rule) **Where work wasn't completed before 23 July 2024; Capital gains are treated as long-term would be better than the higher tax First, ITC isn’t a discount. It’s a credit reducing your GST liabil-
if the holding period exceeds 2 years
Following concerns that this could 2) 12.5% without indexation rate on the indexed amount.” ity, and it’s only available to GST-registered businesses. If you are
raise tax liability for real estate inves- (new rule) How indexation works Let’s again assume that Mr. A an individual without a business, this hack will not apply to you.
tors, the Centre introduced a grand-  Lower of the two tax amounts  Neutralizes impact of inflation on capital gains bought a property in FY02 for ₹1 Even if you are GST-registered, claiming ITC is not automatic.
fathering clause to allow indexation will apply  Buying price is revised upwards for inflation crore. He is selling it in FY25. What ITC isn’t guaranteed either.
on properties bought before 23 July *Date of Budget presentation
 Useful when appreciation at near-inflation rate will be his tax liability under the old The gadget must be used strictly for business—using the phone
2024—the day of the budget. Under 20% LTCG tax rate with indexation for work calls, client emails, meetings. But the moment you hop
the clause, if the new 12.5% tax rate and the new 12.5% LTCG tax rate on Instagram or Netflix, you are mixing business with personal
results in a higher liability than the Set-off and carry-forward rules without indexation. use. In such cases, you can claim credit proportionate to business
previous 20% rate with indexation,  Capital losses can be set off only against capital gains The answer depends on the appre- use. And yes, tax officers can ask for proof. Call logs, emails, app
the excess tax will be ignored. How-  Long-term capital losses can be set off only against long-term ciation of a property — if it is closer or usage — if you can’t show that it was primarily a work tool, your
ever, if indexation results in capital capital gains higher than the inflation rate. Assum- claim can be denied. If that happens, you will have to repay the
loss— the cost of buying a property is  Short-term capital losses can be set off against both short-term ing Mr. A sells the property for ₹3.81 credit, along with interest and penalties.
higher than the sale price — it can no and long-term gains crore in FY25 at an annual growth of Rules on transfer
longer be set off against capital gains.  Unused losses can be carried forward for up to 8 financial years 6%, the old tax scheme of 20% with Here’s where it gets even more complicated. Under GST law,
“There can be no capital loss due to indexation will help save more taxes capital goods like phones and laptops are considered long-term
indexation as indexation is only for Real-world impact of indexation Scenario 1 Scenario 2 as the price is largely driven at a near- assets. If you sell or dispose of them within five years, you have to
computation of tax liability and not When growth is low When growth is high inflation rate. He will save ₹31.45 lakh reverse a part of the ITC you claimed. Let’s go back to the iPhone
Annual growth rate @ 6% Annual growth rate @ 12%
for the computation of capital gain,” with the old 20% rate with indexa- example. You buy a ₹2,00,000 phone and claim ₹36,000 as ITC.
explained Gautam Nayak, partner at A) Buy price in FY02 ₹1 crore ₹1 crore tion. Things start changing at higher Three years later, you upgrade to a new phone. Under the rules,
CNK & Associates. “Capital loss com- B) Sale price in FY25 ₹3.81 crore ₹13.55 crore growth rates. If the sale price is ₹13.55 you need to reverse ITC at 5% per quarter for the remaining
puted without indexation can be set crore after factoring in 12% growth, period, or 5%* 8 quarters (the remain-
C) Indexed buy price ₹3.63 crore ₹3.63 crore
off against other capital gains.” the 12.5% tax rate without indexation If the device is ing two years), which makes it 40% of
Here is a look at how capital losses Capital gains (B-C) ₹18.97 lakh ₹9.92 crore will lead to savings of ₹41.54 lakh. used personally, ₹36,000, that is, ₹14,400.
can be used to reduce capital gains Under-construction property But it gets trickier. If you sell the
and carried forward under the new
Tax liability with indexation (20% LTCG rate) ₹3.79 lakh ₹1.98 crore
If you bought a property that was the input credit phone for ₹1,00,000 and charge 18%
tax rate; and when indexation under Capital gains (B-A): ₹2.81 crore ₹12.55 crore under construction and remained so may be denied, GST on sale, you collect ₹18,000. The
the old rate may save more tax. Tax liability without indexation (12.5% LTCG rate) ₹35.24 lakh ₹1.57 crore until 23 July 2024, whether you can and penalties law says you must reverse the higher of
Set-off and carry forward
Savings with old scheme/new scheme ₹31.45 lakh ₹41.54 lakh
claim indexation benefit on such a could apply the two — ₹14,400 (prorated ITC) or
If the capital loss occurs without property may not be straightforward. ₹18,000 (GST on sale). So now, you’re
indexation, it can be utilized to set off “What constitutes as date of acqui- paying ₹18,000 back. That benefit
Setting off gains
gains and the unabsorbed losses can sition in the case of an under-con- does not seem so cool now, does it?
Allowed only when loss is computed without indexation Loss calculated with indexation can't be set off
be carried forward. struction property has always been Buying a gadget using a friend or relative’s GST?
Assuming Mr. A bought a property Scenario 1 Allowed on loss Scenario 2 Not allowed on loss debatable with conflicting judicial Some people get “creative” and buy gadgets using a friend’s or
for ₹1 crore in FY02 and sold it for ₹80 without indexation with indexation precedents which are fact and docu- relative’s GST number. Sounds harmless — they claim the credit,
lakh in FY25. Let’s assume Mr. A A) Buy price in FY02 ₹1 crore A) Buy price in FY02 ₹1 crore mentation specific,” said Parizad Sir- you share the benefit. But legally, the gadget now belongs to the
made capital gains of ₹1 crore from B) Sale price in FY25 ₹80 lakh B) Sale price in FY25# ₹2.46 crore walla, partner and head of global business, not you. If it’s damaged, lost or stolen, claiming insur-
2nd property. He can offset the ₹20 mobility services tax, KPMG India. ance will be difficult. Also, during a GST audit, if the authorities
lakh capital loss against gains from Capital loss (B-A) -₹20 lakh C) Indexed buy price ₹3.63 crore “In general, immovable property is don’t find the device at the business location or in use for work,
the second property. He will pay tax Capital gain in second property ₹1 crore Capital loss (B-C) -₹1.17 crore construed to be acquired on the date all of you could face the wrath of the GST department.
on net capital gains of ₹80 lakh. on which it is completed and all rights FlexiPay for salaried folks: not a free pass
If there are any unabsorbed losses Net capital gain ₹80 lakh Gain from stock sale ₹50 lakh^ transferred. So if that has not hap- Many companies offer “flexi pay” structures where employees
— the capital loss is higher than the Indexation is used to compute tax, not to determine gain or loss; ^Loss arising after indexation cannot be set off against capital gains from any asset class pened before 23 July 2024, indexa- can choose gadgets as part of compensation—the employer buys
Note: Indexation based on cost inflation index of 100 in FY02 and 363 in FY25
capital gain — such losses can be car- Assumptions: Purchase year: 2001; sale year: 2024, holding period: 23; #assumed annual growth rate of 4%
tion benefit may not be available.” the gadget and claims ITC. Legally, the company owns the gad-
ried forward and set off against capital LTCG: Long-term capital gains; HUF: Hindu Undivided Family; LLP: Limited liability partnership; NRI: Non-resident Indian According to Hegde, “If the land on get. If you leave the firm before five years and choose to take the
gains in eight subsequent financial which the construction is to be gadget with you, the employer may have to reverse part of GST
years. “Long-term capital losses can PARAS JAIN/MINT undertaken has been registered credit. Some firms account for this and other benefits (deprecia-
be set off against long-term capital crore from a second property in the gains from other properties or stocks indexation benefit. It is available for before 23 July 2024, it implies that tion, etc.) in your final settlement. So, that “free” iPhone you got
gains. Short-term capital losses can same financial year, he could set it off or other asset classes. Nor can any computation of tax liability, not for the undivided interest in the land has as part of your CTC could end up costing you if you change jobs.
be set off against both long- and with the ₹1.17 crore capital loss com- unabsorbed losses be carried for- other purposes like exemption. Non- been acquired. The indexation bene- There’s also the matter of usage. Employees don’t just use their
short-term capital gains,” Nayak said. puted in the first property and pay ward,” said Prakash Hegde, a Benga- resident Indians (NRIs) or non-indi- fit can be considered under such situ- phones for work — they stream movies, scroll social media, and
Before budget 2024, even capital taxes on net gains of ₹2 crore. If there luru-based chartered accountant. vidual taxpayers (companies, part- ations to limit the tax burden. In nor- play games. While some can argue that even entertainment sup-
loss derived from indexation could be were any unabsorbed capital losses, Indexation benefit nerships, etc.) won’t be able to claim mal situations, an immovable prop- ports productivity, and is technically a business use case, that’s
offset or carried forward. Here is how these could be carried forward for Indexation benefit was allowed so indexation. The indexation benefit erty needs registration of ownership.” not how the taxman sees it. ITC is meant for business use, and the
it worked: Assuming Mr. A bought a future set-offs in the earlier system. that capital gain offered for taxation is will be available for land or buildings moment personal use creeps in, it becomes legally ambiguous.
property for ₹1 crore in FY02 and sold If Mr. A had capital gains of ₹50 not inflation-driven but represents or both,” said Balwant Jain, a Mum- ITC is a great tool, when used right. But it is meant for genuine
it for ₹2.46 crore in FY25, the annual- lakh from his stock investments, can the asset’s actual capital appreciation. bai-based tax and investment expert. Scan the QR business expenses, not to subsidize personal gadgets. When it
ized growth rate was 4%. The cost of he use capital loss computed by It is still allowed with conditions. The With or without indexation code to read comes to taxes, shortcuts are rarely worth it. Seek advice from a
acquisition, indexed or adjusted for indexation on his property to set it first one, as mentioned, the property For investors, when is indexation an extended qualified tax professional before attempting any clever strategies
inflation, is ₹3.63 crore, resulting in a off? “In the present tax scheme, the must be bought before 23 July 2024. with the old rate more tax-efficient version of this you read online. Because once the audit notice arrives, that dis-
net capital loss of ₹1.17 crore. ₹1.17 crore capital loss from the first “Only resident Indians and Hindu than the new rate without the benefit story. counted iPhone won’t feel like such a good deal after all.
If Mr. A made a capital gain of ₹3.17 property cannot be set off against Undivided Family (HUF) can claim and vice-versa? Puri is a chartered accountant and partner at VPRP & Co LLP

What a car loan costs TDS on rent: what if there are 2 landlords?
I t is tempting to buy a new car, be it an upgrade, a first car or another car for the family. Whatever
be the reason, a car loan makes the purchase easier. Car loans are usually of three to five years
but some lenders may offer loans for up to seven years too. A loan for longer may mean smaller
Mahesh Nayak
ISTOCKPHOTO
bank account for the regular
expenses and maintenance of
equated monthly instalments (EMIs), which makes the car seem more affordable, but overall, you What is the tax deducted at the family. However, if the
pay more as interest. Don’t forget that a car is a depreciating asset, so taking a bigger loan source (TDS) obligation for cash withdrawals are not for
may not be the best thing to do. But if you take a car loan for a short duration, the EMIs a tenant if a house has two the maintenance needs of the
will be heavy and non-payment will mean a blot on your credit report. Conditions owners with each receiving family (say, for investment by
apply to the loan amount also. For instance, some lenders give a loan for the full rent of less than ₹50,000 a the karta in his personal capac-
ex-showroom price of the car, while others may offer a loan up to 80%. Apart from month—but the total rent ity), such withdrawal may be
the interest rate on a car loan, also take a look at the applicable processing fee and paid exceeds ₹50,000? treated as a receipt by the
other charges. Does TDS still apply even if karta, and as a partial partition
Loan amount = ₹1 lakh. Tenure = 5 years only one tenant pays rent of the HUF.
and claims HRA? The income tax provisions
Interest —Name withheld on request do not recognise partial parti-
Lender EMI ( ) Processing fee tion and therefore, any income
rate (%)
As the rent paid by the ten- from the amount received by
Indian Overseas Bank 8.40-9.80
8.40 - 9.80 2,047 - 2,115
2,047-2,115 As applicable ant to each owner does not ASK MINT amount paid is less than the karta on such partial parti-
Canara
Bank ofBank
Maharashtra 8.45-11.70
8.45 - 12.75 2,049 - 2,209
2,049-2,263 100% waiver
0.25% from 1 and
(Min ₹1,000 Jan 2025
Max to 31 March 2025*
₹15,000) exceed ₹50,000 per month, m TA X AT I O N ₹50,000 per month. tion will continue to be taxed
the requirement for TDS in the hands of the HUF, even
Central Bank of India
Canara 8.45-9.90
8.45 - 11.70 2,049 - 2,120
2,049-2,209 Waived(Min
0.25% up to 31 March
₹1,000 and2025
Max ₹5,000) + GST
under section 194-IB does not I have a HUF of which I though the amount received
UnionBank
UCO Bank of India 8.45-10.20
8.45 - 10.75 2,049 - 2,135
2,049-2,162 Up to ₹1,000
0.50% + GST;
(Max Rs. Nil+for
5,000) GSTe-vehicles apply. Section 194-IB refers to Recently, notices have been am the Karta. Say, I create on partial partition is exempt
Indian Bank of India
Union 8.50-9..75
8.45 - 10.20 2,052 - 2,112
2,049-2,135 ₹1,000 + GST + GST; Nil for e-vehicles
Up to ₹1,000 payment of rent to a resident, issued to taxpayers who have capital through a gift in my in the hands of the karta.
and therefore the monthly claimed HRA without deduc- new HUF from non-mem- While creating the capital of
PunjabBank
Indian National Bank 8.50-9.35
8.50 - 9.75 2,052 - 2,093
2,052-2,112 0.25%
₹1,000(min ₹1,000 and max ₹1,500)
+ GST limit of ₹50,000 would apply tion of TDS. While one may bers and then invest the the HUF, one also needs to
& Sind Bank
Punjab National Bank 8.60-10
8.50 - 9.35 2,056 - 2,125
2,052-2,093 (min ₹1,000 and Max
0.25% (Min max ₹1,500)
₹15,000);** vis-à-vis each recipient sepa- need to substantiate the genu- amount in fixed deposits in keep in mind that gifts
rately. However, HRA exemp- ineness of the HRA claim, if the bank. After 2-3 years, I received by the HUF from
UCO Bank
Central Bank of India 8.60-10.05
8.60 - 10.05 2,056 - 2127
2,056-2,127 0.50%
Not (max ₹5,000)
updated + GST
on website
tion can be claimed on the TDS is applicable on the rent need money so I withdraw non-members would be taxa-
Bank of&Maharashtra
Punjab Sind Bank 8.70-13
8.70 - 10.10 2,061 - 2,275
2,061-2,130 (min ₹1,000 and Max
0.25% (Min max ₹15,000)*
₹15,000) entire rent paid to both the paid and not deducted, the money from those FDs. Is ble in the hands of the HUF as
Bank of India 8.75-10.60
8.75 - 10.60 2,064 - 2,154
2,064-2,154 0.25% (min max ₹10,000)
(Min ₹2,500 and Max joint owners of the same prop- consequences for non-deduc- withdrawal of cash from Income from Other Sources, as
erty. While claiming HRA tion of TDS, including interest, HUF bank account consid- the exemption applies only in
Karnataka
IDBI Bank Bank 8.88-12.11
8.80 - 9.60 2,070 - 2,230
2,066-2,105 0.5%
Up to(min ₹2,500 and max ₹10,000) + tax
₹2,500 exemption, the tenant would may apply. ered partition or not? Can a case of gifts received from
IDBI Bank Bank
Karnataka 8.90-9.70
8.88 - 12.11 2,071 - 2,110
2,070-2,230 Up to(Min
0.5% ₹2,500
₹2,500 and Max ₹10,000) + applicable tax need to provide the PAN of The above response is on Karta withdraw cash freely members.
both the owners as the annual the assumption that both the from HUF bank account Mahesh Nayak, chartered
Nainital Bank 8.90-12.50
8.90 - 12.50 2,071 - 2,250
2,071-2,250 Nil till
Not 31 March
available on2024
website
rent exceeds ₹100,000. owners are residents. If either any time? accountant, CNK & Associates.
CSB Bank 8.95-10.75
8.95 - 10.75 2,073 - 2,162
2,073-2,162 Not available on website If monthly rent paid exceeds of the owners is a non-resi- —Name withheld on request
₹50,000 to any owner, TDS is dent, TDS would need to be Do you have a personal
State Bank of India 9.10-10.15
9.10 - 10.15 2,081 - 2,132
2,081-2,132 Nil required to be deducted by the deducted on any payment Under Hindu law, each finance query? Send in your
Banks that have not updated information on their websites are not included here. Data was taken from bank websites on 2 April 2025. The EMI range is tenant on payment to such made to such owner under co-parcener has joint rights in queries at
indicative and calculated on the basis of interest rate range. In an actual situation, it may include other fees and charges. Actual applicable interest rate may owner at the rate of 2%. Such section 195 at the rate of 30% the property of the HUF and [email protected]
vary based on the credit profile, loan amount, tenure and as per bank’s discretion. *Up to 50% concession available and get them answered by
TDS is to be deducted from the plus applicable surcharge and therefore, a Karta can with-
PARAS JAIN/MINT Source: MyMoneyMantra.com industry experts.
rent of the last month. education cess, even if the draw cash freely from the HUF
12 MONDAY, 7 APRIL 2025
HYDERABAD VIEWS LIVEMINT.COM

OUR VIEW MY VIEW | THE INTERSECTION

Fiscal federalism and economic

MINT

freedom can drive our prosperity

A trade war must not distract India from pursuing a clear domestic agenda for economic success

invest in nuclear power plants. This mission ensure that all citizens get
might not cover all our requirements. enough resources for there to be broad
So we will have to economize on the parity. However, it should not use fiscal
use of energy. Electricity cannot policy to determine the pattern of eco-
be provided free of cost to anyone, not nomic activity. It shouldn’t be in the
even farmers. business of choosing who produces
That brings us to food. Without what, where and at what prices.
petroleum imports, we will have to Indeed, a self-sufficient India cannot
figure out how to make fertilizer. In be prosperous without political and fis-
NITIN PAI addition to chemical methods, closed cal federalism, all the way down to the
is co-founder and director of The loop biological methods that convert level of local governments.
Takshashila Institution, an independent human and animal waste into manure There is nowhere to import technol-
centre for research and education in will be an obvious choice. Farmers will ogy from. So a lot of public investment
have to change their cropping patterns will have to go into scientific research

Are startups failing us?

public policy
and farming methods. and development (R&D) as well as edu-
Indeed, because electricity will not cation. Again, comparative advantage

I
magine there was no other country be free, it will no longer be possible to suggests that the government should
but India. The subcontinent was all pump out ground water and use it to finance firms and institutions that can

Look at the big picture

the landmass that there was on the grow crops inappropriate to those soil do this efficiently, without insisting
planet, with oceans all around. And all conditions. Indian farmers will no that those doing state-funded R&D also
1.5 billion people in the world were longer grow water-intensive crops in be government employees.
Indians. The Indian national economy water-deficient areas on the back of The backbone of the economy will
would be the global economy. There subsidized electricity. Many farmers need a financial system that can gather
would be no such things as interna- will have to change their farming savings and surplus capital and put it
tional trade, foreign investment and methods. Quite a number of them will into the hands of those who can make
Piyush Goyal’s unflattering contrast of their business disposition with Chinese innovation immigration. The Indian economy have to stop farming and find other the best use of it.
would be an autarchy. By definition, it livelihoods. India will have to enable I could go on, but the upshot is that if
has stirred a debate that must both widen and deepen for India to credibly play catch-up would be self-sufficient. this transition. you want India to be self-sufficient and
Now think how such an economy The idea that people are better off prosperous, the government’s eco-

I
could also be prosperous. The immedi- doing what they can do more effi- nomic role must shrink and change. It
ate order of business—as Bhishma ciently is called ‘comparative advan- should abandon striving for ‘even
ndia’s commerce and industry minister research outlay of a single mega-corp like teaches us in the Mahabharata’s Shanti tage.’ It is the single biggest idea that development’ and stop trying to redis-
Piyush Goyal has faced a lot of flak online Amazon outstrips the combined R&D spend Parva—would be to establish the rule can make our self-sufficient closed tribute money and economic activity.
of law, protect property rights, govern economy a prosperous one. When Let’s bring this thought experiment
for the disdain he recently articulated for of India, public and private sectors combined. justly and ensure that people live people, firms and regions do what they to an end. Even as you worry about
the relative reluctance of Indian startups to The Australian Strategic Policy Institute’s criti- peaceful lives where they can enjoy are most efficient at doing, they spe- tariffs and trade wars, note that a lot of
take on challenges in deep-tech sectors—be cal-technology tracker finds that China is the the fruits of their labour. cialize and become more productive. what we must do to be prosperous is a
it artificial intelligence (AI), semiconductor global leader today in 57 of 64 critical technolo- The next task would be to ensure They then trade with others who are matter of domestic policy. Of course,
design, building chip fabs or electric-vehicle gies, having displaced the US. This is thanks to economic integration of the vast sub- better at other things. Some places spe- international trade is very desirable. It
continent, where goods, services, peo- cialize in software technology, some in will make us more prosperous, faster
and battery technology—and their preference Beijing’s policy focus and investment in quality ple, ideas and capital can move freely manufacturing, some in agricultural and at lower cost. It will open up wider
for consumer-facing businesses that might education at all levels, apart from its push for from one place to another. products, some in tourism, and so on. possibilities.
make money but do not address the nation’s research capacity and publication of substan- Now that basic political and eco- Indeed, comparative advantage is not We should hope that a mindless
strategic challenges. He praised the perform- tive findings. In fact, this is what explains its AI nomic integration has been achieved, an imposition. People specialize trade war doesn’t start (or at least ends
ance of Chinese startups, which are innovating success. Indian researchers do publish, but are let us look at economic policy. What because they have reasons and the quickly). India is a big country with a
will we do for energy? There is very lit- freedom to do so. diverse geography and a large as well as
at the cutting edge of technology. The backlash rarely cited since their research aims tend to tle oil we can pump out of the ground. By extension, we can see that pros- young population. Our domestic econ-
has come from successful startup leaders and tick the right boxes for career gains rather than There are no foreign countries that we perity requires the political system to omy is capable of weathering this
venture investors. Much of their response is advancing the frontiers of knowledge. Startups can buy it from. be federal. States and regions should storm. It is a good time to break down
valid, clothed though it is in disappointment will routinely be able to tackle hard tech if and So we will have to rely on solar, wind have the autonomy to engage in activi- the constraints we have imposed on
that the minister overlooked the vital roles only if they can draw on a talent pool that’s large and hydro-electric sources. We will ties of their choice. The Union govern- ourselves and unleash the awesome
have to use the coal that we have and ment can through the Finance Com- energy of the national economy.
they’ve played in job creation, organizing rural and diverse enough. Indian political leaders,
supply chains, using tech for efficiency and so on their part, would help if they harp less on
on. These protests, however, obscure a kernel ancient glory as part of their politics and pro-
of truth in Goyal’s concern. We do need start- mote scientific attitudes driven by evidence.
ups to help solve some of the problems we face Then there is the question of our business
in our quest for strategic autonomy. To that culture and funding. Risk-taking, by and large,
end, we require innovation in defence modern- remains the preserve of a section of society that www.livemint.com New Delhi, Mumbai, Bengaluru, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Tuesday, April 7, 2015 Vol.9 No.84 `4.00 in Delhi-NCR/`5.00 outside Delhi-NCR 32 PAGES

ization and indigenization, space capabilities has traditionally been in business. Others often SCIENCE: The science of the
breast cancer gene >22
ENERGY: Halliburton, Baker Hughes pull

and advanced materials, computing and com- find it hard to raise capital again if their startups
out of OVL’s Russian oil, gas fields >8
INTERNATIONAL: Saudi Arabia’s request
for help in Yemen puts Sharif in a bind >24
ENVIRONMENT: Air quality index marred
twitter.com/ facebook.com/ plus.google.com/ pinterest.com/
livemint mint.live +livemint livemint/ by glitches >32

munication technologies, plus more. end up failing. Meanwhile, scholastic pursuits

SENSEX 28,504.46 Æ 244.32 NIFTY 8,659.9 Æ 73.65 DOLLAR `62.19 æ `0.31 EURO `68.35 Æ `1.16 GOLD `26,840 Æ `210 OIL $57.69 Æ $2.74

I believe in innovation
TOUGH LOVE
SENSEX RISES ON Home delivery QUICK EDIT

Jaitley says RATE CUT HOPES service Grofers Bernanke

What the minister could have avoided was an have not broadened to involve all social seg-
Stocks rose on Monday, sending the benchmark Sensex to more than a in talks to raise blogs
two-week high, amid speculation that the central bank may cut reserve
up to $50 mn

India not a
requirements at its policy meeting on Tuesday. While property
developer DLF Ltd increased the most in three weeks, Housing
Development and Infrastructure Ltd surged 24%, the most since May B Y S WA R A J S I N G H D H A N J A L & B en Bernanke has
begun blogging.

and that the way you get

2009. The S&P BSE Sensex gained 0.9% to 28,504.46, after changing A SHNA A MBRE What Bernanke has
direction at least 12 times in the first half of the session. While five of ···························· written in his initial posts is

implication that the contrast with China is sim- ments and knowledge creation rarely ever com-
MUMBAI
the ten economists and bankers polled by Mint expect a cut in the puzzling. He has defended

D elhi-based hyper-local his policies as chairman of

tax haven
statutory liquidity ratio, two see the possibility of a reduction in the
cash reserve ratio to infuse liquidity into the banking system. delivery start-up Grofers, the US Federal Reserve.
See Page 3 run by Locodel Solutions Pvt. The entire argument is
28,550
28,504.46 Ltd, is in talks with investors, based on the fact that the
including Goldman Sachs, to economy needed low
28,500
raise up to $50 million (around interest rates. Bernanke has
`310 crore), as the start-up looks said the state of the
to expand its service nationally, economy, rather than the

ply a matter of startup choice, independent of mands the premium it should. Small ventures innovation is you fund
Finance minister applied retrospectively.
Chatter about the govern-
28,450 according to two people familiar
with the development.
central bank, determines
the real interest rates.
justifies govt’s stand ment’s approach to taxes picked 28,400 A hyper-local delivery service There is no mention of
on MAT, says every up after Cairn India Ltd, a subsid-
28,320.91
is one which provides home the emerging markets in
iary of Anil Agarwal’s Vedanta deliveries from local vendors this narrative, especially
demand should not be Resources Plc., said last month 28,350 such as kirana stores. the fact that low interest
seen as tax terrorism that it had been slapped with a In February, Grofers raised rates in the developed
capital gain tax demand of 28,300 $10 million jointly from venture countries led to asset
B Y A SIT R ANJAN M ISHRA `20,495 crore by the income-tax capital firm Sequoia Capital and bubbles, appreciating

the ecosystem in which our businesses operate. that take off often struggle for funds to scale up.
[email protected] (I-T) department—double the American hedge fund Tiger Glo- exchange rates and
···························· 28,250
sum sought from UK-based Cairn bal Management Llc. financial instability in other

research and you learn

F
NEW DELHI Energy Plc. The government clar- Prior to that, in October 2014, parts of the world. But
inance minister Arun Jaitley ified that the demand arose from 28,200 9.15am 3.30pm
the company raised `3 crore then, Bernanke has
did some plain speaking on a process initiated during the from Sequoia and Deepinder suddenly made emerging
Monday on the issue of tax UPA’s tenure. Goyal, founder and chief execu- markets the central theme
notices that have displeased for- The tax department also issued
TOP SECTORAL GAINERS OF THE DAY tive of Zomato Media Pvt. Ltd, when it comes to
eign investors, saying India didn’t notices to nearly 90 foreign port- Close as on according to a Registrar of Com- explaining why interest
aspire to be a tax haven and every folio investors (FPIs) for a sum of Index 6 Apr % change panies filing. rates were pushed down in

Overall, India spends just 0.65% of GDP on Venture funding in India comes mostly from
tax demand could not be equated `100 crore to pay minimum alter- Realty 1,800.22 6.43 The company’s valuation the developed countries.
with an act of “tax terrorism” by nate tax (MAT) for the 2012-13 stood at `204.8 crore after its He repeats his old
the government. assessment year in the past few Healthcare 18,539.36 4.84 fund raising in February, shows argument that excess
“An emerging economy (like months and is expected to FMCG 8,062.78 2.35 the filing. savings in the emerging

the basic facts.

India) that expects investment broaden its net to include an “Grofers is in talks to raise world created a global
cannot really indulge in tax ter- additional 6,000, according to the Source: Bloomberg, BSE savings glut.
rorism or aggressive tax policy. Press Trust of India. TURN TO PAGE 2® It is a very self-serving
But our fairness is partly misun- This year’s budget proposed to PARAS JAIN/MINT narrative.
derstood. The converse of tax ter- exclude income of FPIs in rela-

research and development (R&D), according to abroad. Should a thin slice of the enormous
rorism is not (being a) tax haven,” tion to capital gains (other than
Jaitley told a conference organ- short-term capital gains not sub- CHRONIC CONDITIONS
ized by the lobby group Confed- ject to securities transaction tax)
INSIDE
eration of Indian Industry.
Investors who believe that a tax
demand isn’t warranted have the
for the purposes of levying MAT, a
tax paid by profit-making compa-
nies that do not pay corporate tax
Health body wants tighter rules,
higher taxes on unhealthy foods
option of challenging it, said the on account of incentives and
finance minister. exemptions. Such companies pay

World Bank data, narrowly ahead of Gambia pool of retirement savings in the Employees’
Since the Bharatiya Janata a fixed proportion of their book
Party (BJP)-led National Demo- profit as MAT.
cratic Alliance (NDA) govern- Jaitley in his 2015-16 budget B Y V I D YA K R I S H N A N launched by the minister on disease crisis’.
ment came to office 10 months speech proposed to rationalize [email protected] Tuesday, and has been prepared Other significant recommen-
ago, the finance minister has the MAT provisions for FPIs; prof- ···························· by experts from Emory Univer- dations include increased regula- Is there a case for
4-day Test cricket?
NEW DELHI
promised to end the “tax terror- its corresponding to their income sity, the All India Institute of tory control and taxation on
ism” that was perceived to have
marked the previous United Pro-
gressive Alliance (UPA) regime,
from capital gains on transactions
in securities, which are taxed at a
lower rate, would not be subject
I ndia could consider harsh
measures, including tighter
regulation on sales, and higher
Medical Sciences (AIIMS), the
London School of Hygiene and
Tropical Medicine and the Public
palm oil and imposing urban
design laws to allow people the
opportunity of physical activity. C olin Graves, the
incoming chairman of

and South Africa, but trailing Tunisia, Morocco Provident Fund and National Pension System BILL GATES
which slapped aggressive tax to MAT, he said. (almost punitive) taxes on not Health Foundation of India If adopted, the recommenda- the England Cricket Board,
demands on foreign companies Finance ministry officials later just tobacco but alcohol, satu- (PHFI). tions could lead to India’s own is batting for four-day Tests:
operating in India. clarified that this would be appli- rated fats and foods high in salt The four institutions are also so-called fat tax. an additional hour of play in
Jaitley has also repeatedly said cable only prospectively from and sugar. behind the centre. New York imposed a contro- a day, use of floodlights to
that his government will not financial year 2015-16. However, Recommendations to the effect Chronic conditions are now versial trans-fat ban in 2006 and complete the day’s
introduce retrospective tax laws are part of a report on chronic the leading cause of death in banned super-size sodas in 2012. mandated overs and
(the UPA did, in an attempt to tax TURN TO PAGE 2® diseases which will be released India, accounting for more than 5 The Centre for Control of Thursday-only starts.
Vodafone Group Plc.). Ironically, by Y.S. Chowdary, minister of million deaths each year—over Chronic Conditions has the man- Intricacies of weather, a
some of the recent angst of for- ALSO SEE state for science and technology, 53% of all deaths. This is pro- date of providing a coherent, stra- weathering pitch and

and the UAE, not to speak of the US (3.46%), not be channelled to startups? Why should the
eign investors arises from a tax on Tuesday. jected to rise to almost 75% of tegic approach to the health min- withering players aside, it’s
amendment that provides them >Cairn India moves court over `20,495 cr The report has been drafted deaths by 2030. istry to deal with the non-com- an argument that has, in the
tax demand >P7
relief and which they want to be under the aegis of the country’s The report expresses concern municable disease epidemic in last 15 years, gained
first Centre for Control of Chronic about India’s “compromised” numbers on its side. >P13
Mint is also available for R8 with Hindustan Times in Delhi-NCR only Conditions, which will be capacity to deal with the ‘chronic TURN TO PAGE 2®

China (2.43%), South Korea (4.93%) and Israel government drag its feet on the R&D corpus
(5.56%). Blame India Inc and the government announced in the Union budget years ago? The
first for this abysmal state of affairs, in which the answer is with the government, not startups.

MY VIEW | MODERN TIMES

How to reform your son after you watched a TV show

MANU JOSEPH You have a problem; it is a toxic sub-
stance called testosterone inside you. It
means, but it sounds like something good.
Also, you should read literary fiction. All
how that is not the same. You should
express emotions in ways that are interest-
means that when a muscular guy in deep
sorrow is getting angry with the world, flail-
builds muscle, improves oxygen delivery in men should read it. This is the life-altering ing to people who do not find sports inter- ing his arms and expressing himself in a
the blood, reduces inflammation, enhances advice of all knowledgeable reformers of esting. Though it was very moving to watch negative way (even though he is never cross
spatial problem-solving and memory, and men, which includes men who are probably Roger Federer cry. Men should cry more. with his wife and daughter, whom he keeps
influences fat distribution. It also triggers blessed with low testosterone levels. Your future girlfriend will hate you for it referring to as “love”), he is calmed by the

M
y dear son, I’m watching Adoles- sexual desire. Most of what some feminists In a work of literary fiction, you will find because ideally men should cry only when women who let him vent. This aspect of the
cence on Netflix, and I need to over- think is caused by testosterone in men of delicate men who notice they win a grand slam, or series has reminded several reformers of
articulate my limited understand- their age is probably caused by morning the colour of curtains. something as rare, but she men that all peace in a family is a contribu-
ing of human nature using terminology from cortisol; even so, testosterone influences Like: “Grant caught sight Reformers of may not be able to admit it tion of women because they ‘regulate the
therapy and gender studies. If you wish to be the development of those dangerous things of two layers of front-win- in public. What matters is emotions of men.’
a modern man, you must talk about your called muscles from where the ill-gotten dow curtains, both blue, men are asking what reformers of men say Look, you may not fully understand this
feelings; talk, talk, talk. Not podcast; the
world doesn’t need another podcast from a
powers of men arise. You have many times
the level of this hormone than a girl your
one sheer and one silky, a
matching blue sofa and a
boys to watch in public, which is that you
must cry more.
complex explanation from a ‘science of the
humanities,’ which by the way I forbid you

is a journalist, novelist, and the

male. Talk to people who love you, and since
they would be very few, also talk to under-
age, and that is worrisome.
I am told by reformers of men that there
daunting pale carpet…”
See, that is a new way to
‘Adolescence’ You need to keep talk-
ing about your mental
to follow as you must seek a more lucrative
career. What matters in life is not under-
creator of the Netflix series,
‘Decoupled’
employed friends who love to gossip.
You are showing some toxic signs already,
is something called a ‘manosphere,’ which
is a devious world on the internet that
be. Men who read literary
fiction are appealing and
in the hope that health, especially. A
strange way of the world is
standing all the good stuff, just knowing the
synopsis of all the good stuff.
or at least they seem toxic. For instance, you belongs to men, though it is hard to tell safe, unlike muscular it will prove that you will never hear When we sit to watch Adolescence, you
spend hours alone because you love it. Your what about this world does not belong to men. Even women who diabetics give sermons on will notice a big flaw. We don’t see the point
love for sports demonstrates a clear need for men. Let us say the ‘manosphere’ is a lot don’t read find men who educative physical health; but much of view of the dead girl. Now that is because
aggression and ambition. You have never worse than the world that belongs to men. read appealing. of the articulation of men- the creators of the series are men and may
plucked a single flower, which is disturbing. It is also filled with stuff that boys might be My darling son, as you tal health is by people who have indulged in something called the
You don’t read made-up drama. interested in, like videos by fitness instruct- can see, the objective of your life should be say they are not mentally healthy. What can ‘male gaze,’ which is a horrible device by
To reform you, I must force you to watch ors on making muscles. Fitness is a lure to be more like women, but without their go wrong? Nothing, apparently. So you which male artists express only what they
Adolescence, which is about a boy of 13 who is through which young boys are radicalized. bone density. must sit and listen to them talk about them- know. You should, of course, condemn it,
suspected of murdering a girl his age. You Why are you building your muscles when You should start expressing your emo- selves. Men who call other men ‘misogynists’ are
will suffer chiefly because it is slow. It’s a you can do something better, like stretching tions more. You may argue that any fool You will observe in Adolescence how the often frauds, but it is an excellent way to
show on adolescence for adults, like one of exercises or sitting in a lotus position with who has watched sports will know that men show’s female characters are constantly defame your competition. Be smart, dear
those films made in India for foreigners. eyes shut? Nobody knows what meditation express their emotions freely. But some- ‘regulating’ the emotions of men. This son, be modern.
LIVEMINT.COM VIEWS MONDAY, 7 APRIL 2025
HYDERABAD 13

THEIR VIEW M I N T C U R AT O R

From US tariffs to a trade deal: Chinese history shows what a

closed economy may result in
What are our strategic options? The Middle Kingdom erred greatly by giving up on foreign trade

India should not rush into a pact but instead watch how various scenarios might unfold while accelerating domestic reforms

REUTERS

DAVID FICKLING
is a Bloomberg Opinion columnist covering
climate change and energy.

ARPITA MUKHERJEE
is a professor, Indian Council for Research on
International Economic Relations (ICRIER)

F
rom a certain angle, US President
Donald Trump’s tariff blitz looks like
nothing so much as a chronic case of

I
China envy. Look at the losers’ list Ming China lost its economic strength
n the India-US Joint Statement of 13 February announced last week in the season finale of after making a sharp inward turn AFP
2025, both sides set a target of $500 billion in this all-too-real reality show: Every sign
bilateral trade by 2030. During the visit of the points towards a desire to Make America money system, risking the hyperinflation
United States Trade Representative (USTR) to China Again, from the obsession with trade that plagued the era. Perhaps it was just
New Delhi (26-29 March 2025), the two sides deficits to the promise to bring back manu- about power, with many officials quietly
agreed to discuss a mutually beneficial, multi- facturing jobs from abroad. Think of a con- profiting from illegal voyages.
sector bilateral trade agreement (BTA), with the tinent-sized economy with a persistent As with Trump’s tariffs, the attempt to
goal of finalizing its first tranche by the fall of 2025. trade surplus and a booming factory sector, hold back the economic tide prompted
This announcement came amid some perplexity and the most obvious candidate is China. more extreme measures. Consider the big-
among Indian policymakers and trade experts, If Trump is borrowing an economic les- gest victims: Countries like Vietnam, Thai-
who were busy trying to decipher exactly what US son from China, though, it’s not the one land, Taiwan and Malaysia that had been
President Donald Trump meant by the “reciprocal that drove its economic rise over the past expanding trade with the US in recent
tariffs” he had promised to levy. Most experts felt two-and-a-half decades. That episode fol- years as back-door conduits to China in
that since India had high tariffs compared to the lowed a sharp reduction in trade barriers response to Trump 1.0’s attempt to decou-
US, product-specific tariffs in areas of American and decades of reforms to reduce the role ple the two economies. The Ming sea bans,
export interest, along with some kind of tariff of the state and provide a stable investment similarly, had limited success in shutting
equivalent of non-tariff measures imposed by environment, pretty much the opposite of off commerce, prompting ever-more-ex-
India, may constitute ‘reciprocal tariffs.’ If that what the US is doing right now. treme measures. At its most reactionary,
were so, the USTR’s National Trade Estimate Instead, Trump’s model could be drawn the government depopulated whole
Report on Foreign Trade Barriers (NTE 2025), from an earlier episode: the Ming Dynasty’s swathes of the country’s coastal regions.
would have helped identify US pain points, some bans on foreign trade from the 14th century The effect was devastating. With trade
of which could be addressed through a BTA. onward. Far from making China great, that seen as a threat rather than a boon, China
The 2 April tariff announcements by Trump isolationist policy paved the way for centu- found itself cut off from the wider world,
confused everyone because ‘reciprocal tariffs’ ries of decline and eventual humiliation by and fell further behind. Despite worldly
appeared to cover US trade imbalances with other foreign powers. An America that wasn’t officials and a bustling class of brokers in
countries rather than their tariff and non-tariff able to reverse the curbs on commerce the few ports where trade was permitted
measures. Free trade agreement (FTA) partners imposed by Trump 1.0 should reflect on who could see the benefits of trade, the sys-
of the US, like Vietnam and Japan, faced a high target for higher reciprocal tariffs in the future? industry may be happy. how much worse things may get now. The tem stayed largely in place until the mid-
‘reciprocal tariff’ on account of their positive trade So far, things have been in our favour. This is Scenario 3: Companies may start changing their US has imposed a 34% tariff hike on most 19th century, when the Opium Wars saw
balance with the US. Vietnam faced a reciprocal primarily because our policymakers have taken sourcing hubs and making use of trans-shipment Chinese products, adding to the 20% tariffs British and other colonial forces forcing its
tariff of 46%, despite its comprehensive agreement the right decisions. With America’s growing hos- hubs. For example, they may export goods through that took effect earlier this year, bringing market open.
with the US, and Japan with a limited trade deal tility with China, US companies need a large mar- the UAE or Singapore, which face lower tariffs, total levies to at least 54%. Nothing of that level is going to happen
faced 24%. None of America’s FTA partners has ket, which we offer. But we cannot be relaxed or rather than directly to the US market. So, there Like 21st century America, 13th century to the US any time soon. Even so, Trump’s
been spared. So, trade agreements, irrespective of happy with the 26% tariff announced on 2 April as could be changes in the way products are routed. China was one of the world’s great powers. measures are world-historical in scale, as
their scope and coverage, do not guarantee trade new sector-specific tariffs may unfold on 9 April. Scenario 4: Some of our competing countries The development seafaring around 1,000 they lift tariff barriers to their highest levels
certainty with the US. In any case, will a tariff that is lower than our may bring down tariffs to zero for US exports, as CE fostered lively commerce, with Chinese since the 19th century, by some estimates.
Compared to many other Asian countries, India Asian competitors give us a competitive edge in Vietnam is reportedly considering, while others, ceramics and textiles traded for Indian and Like China, America is a continental econ-
did much better, faced with a reciprocal tariff rate the US market? There are many scenarios and like China and Canada, may impose reciprocal Southeast Asian spices and commodities. omy that needs the world much less than
of 26%, without any trade agreement. Therefore, possibilities. Let us consider four. tariffs. Some countries may quietly and smartly The existence of paper money backed by the world needs it: As a share of gross
will a trade deal with the US really help? Scenario 1: If our price competitiveness vis-à-vis subsidize their exports and others may play with the imperial treasury’s reserves of silver, domestic product, only Cuba, Sudan, Ethi-
The reason that the US targeted its FTA partners competing countries increases on account of lower exchange rates to absorb the high tariff impact. and the development of steelmaking and opia, Bermuda and Guam exchange less
with high reciprocal tariffs is its trade imbalance tariffs, then we can export more to the US, but that All these scenarios may work together and there coal mining, fostered similar conditions to merchandise with other nations. These
with them. The USTR has come up with a unique could worsen the latter’s negative trade balance could be more scenarios that we have not thought those seen in Britain at the dawn of the measures will be painful for Americans, but
formula to calculate reciprocal tariffs, which is with us. So, while we may have a short-term gain, about. Therefore, we should not be in a rush to sign Industrial Revolution. even more painful for other nations.
tilted towards trade deficits rather than barriers to in the future, an enlarged trade deficit with the US a BTA, but wait and watch as the situation unfolds. Isolationism put an end to that golden Therein lies the danger. Trade restric-
American exports. may engender the risk of higher tariffs imposed on This is the right time for India to implement age. For the next five centuries, Chinese tions cushioned Ming China against the
In this situation, even if a developing country our exports, while our competitors may face lower domestic reforms, including lower tariffs, to governments imposed stricter and stricter shock of its relative decline as the Age of
like India or Vietnam goes for zero-for-zero import tariffs as their exports might decline, leading to attract investment and improve industry compet- controls on foreign trade, blocking ports, Sail put Europe in control of the world. A
duties for American goods in their FTAs, it may not better balanced trade with the US. itiveness, especially of our micro, small and banning ship-building and conducting similar policy may provide some psycho-
be able to address its trade gap with the US. How Scenario 2: If both India and the US reduce tariffs medium enterprises (MSMEs). Tariff reductions military expeditions against merchants logical comfort to a 21st century America
much domestic demand can be generated in a to zero, the latter’s negative trade balance may should be done to support ‘Make in India’ in gen- who the government saw as pirates. unable to come to terms with the similar
developing country for American products like remain, or even grow. But if we reduce tariffs for eral and not to support any specific industry. We The reasons for its haijin (sea ban) policy rise of China, and of India after that.
apples, corn, motorcycles, automobiles, flowers, products that are considered sensitive by New should closely monitor what competing countries have long been debated. Perhaps China Like muscles that atrophy from lack of
coffee, raisins, walnuts and alcoholic beverages? Delhi, like dairy items or cotton, there may be a are doing and how supply chains are changing, wanted trade under tighter control, replac- use, however, a country closed off from
On the contrary, if we get zero duty, we can export domestic backlash. In such cases, different lobby even as we diversify and de-risk our own supply ing freewheeling commerce with tribute international commerce will gradually
a lot more products to the US. So, as in the case of groups are likely to behave differently. For exam- chains and continue to smartly engage with the missions. Perhaps it was concerned about weaken. If Trump wants America to be
Vietnam, our trade surplus with the US could ple, if our import duties on cotton from the US are US to ensure some stability and predictability in silver disappearing into foreign merchants’ great again, a retreat into isolationism is
enlarge after a BTA. Would that make India a zero, farmers may be unhappy, but our textile our bilateral trade in an uncertain situation. coffers and undermining the base of its fiat the worst path to follow. ©BLOOMBERG

MY VIEW | GENERAL DISEQUILIBRIUM

Why banks got a knuckle rap for their awry retail focus
RAJRISHI SINGHAL ces under the carpet: “I would also like to
draw your attention to the misclassification
received originated from individuals, signify-
ing the banking industry’s systemic inability
payment, the bank is expected to communi-
cate the event to credit bureaus, which as a
ble in case of mistakes in the credit score or
credit report. However, very few borrowers
of complaints as requests, queries and dis- to deal with retail customers. The com- matter of routine take the bank’s word on know about this. In any case, dispute resolu-
putes by the regulated entities. This results plaints were largely against public sector face value and downgrade the individual’s tion by the bureaus takes anywhere between
in the complainants’ grievances remaining banks (38.32%) and private banks (34.39%). credit rating. Now, many banks have started 30 and 45 days. No wonder that the ombuds-
unaddressed. Moreover, this is also a gross Interestingly, while complaints against pub- sending out automated missed-payment man annual report shows a rising number of

R
eserve Bank of India (RBI) Governor regulatory violation.” This indicates that lic sector banks increased by only 10.27% notices to customers. Like all programmed complaints against these organizations.
Sanjay Malhotra does not seem to banks either lack the capacity to address the between March 2023 and bots, many of these have The presence of other anomalies also
believe in slow starts. Soon after rising tide of complaints or deliberately March 2024, those against bugs and communicate indicates the banking industry’s struggle
assuming office, he has shot multiple arrows ignore customer grievances, allowing com- private banks grew 37%. RBI Governor missed-payment notices to with retail-facing operations. For example,
from his regulatory bow. This has met with plaints to get bumped around. This is significant given the customers even when there in the previous two years, banks indulged in
the customary scepticism, but a central bank This also demonstrates how the organiza- larger footprint enjoyed by Sanjay Malhotra are no defaults. However, an unsecured retail lending binge to make
governor’s words have weight and can work
through multiple regulatory channels.
tional structure of most banks is fundamen-
tally misaligned with the retail business. As
public sector banks in
terms of both branches
has done the credit bureaus do not reach
out to affected customers
up for otherwise lacklustre credit growth.
The rates charged on these loans ranged

is a senior journalist and author

It is, therefore, remarkable that he has
chosen to address the issue of power hier-
an individual, suppose you get a wrong mes-
sage about your credit card dues or a missed
and market share of assets.
Non-banking financial
right thing by to check the veracity of the
information. It is odd that
between 10% and 15%. But their rates on
credit card dues, which is another unse-
of ‘Slip, Stitch and Stumble: The
Untold Story of India’s Financial
archies and asymmetries in the financial sys-
tem, especially the disadvantageous position
payment. If you try to get the bank to admit
its mistake, you are in for a rough ride. It will
companies (NBFCs) were
third (14.53%), ahead of
shining a light credit bureaus exhibit such
remarkable alacrity in
cured form of retail borrowing, are usurious
and range anywhere between 30% and 36%.
Sector Reforms’ of individuals in the banking system. A little first throw its entire bureaucracy at you. If other institutional catego- on unaddressed downgrading individual Even RBI’s regulatory framework may
@rajrishisinghal over three months into his tenure, he has you persist, it will reward your doggedness ries. The top three catego- credit ratings, especially in need a retail check. Incidentally, RBI’s
decided to address the banking system’s by lining up its legal machinery. For a ries alone accounted for grievances a financial system where introduction of organisations (SROs) for
aversion to addressing customer grievances. resource-constrained individual, this over 87% of all complaints, most institutions are many emerging sectors (such as fintech)
Quoting official data, he said that the num- becomes a soul-sapping event. Even if one reflecting the aggressive known to make mistakes, marks a fundamental shift in its regulatory
ber of complaints received under RBI’s Inte- were to disregard the lack of moral and ethi- drive during 2023-24 to grow their loan have yawning gaps in their systems that approach. But the movement seems to have
grated Ombudsman Scheme increased at a cal values in these actions, imagine the books. The annual report also shows that the allow information slippages and have failed bypassed the banking system. The Indian
compounded average rate of almost 50% per administrative time and cost that banks are highest number of complaints (29%) per- to achieve the ideal human-machine config- Banks’ Association has been around for
year over the past two years to reach willing to incur to avoid saying sorry. tained to loans and advances. uration. A reason could be their dependence about 80 years and is also considered an
934,000 in 2023-24. Data from RBI’s 2023-24 annual report of There are other instances where bank on institutions, and not individuals, for fees SRO. But, unfortunately, its functioning has
Malhotra also decried the banking sys- the Ombudsman Scheme makes for inter- processes and rates are antagonistic towards and incomes. no resemblance to that of an SRO. Change
tem’s deliberate attempts to sweep grievan- esting reading. Over 80% of the complaints individuals. In the event of a missed interest There is a dispute-resolution route availa- can start here.
14 MONDAY, 7 APRIL 2025
HYDERABAD BUSINESS OF LIFE WORKPLACE LIVEMINT.COM

How sleep can make

or break your career
Indian adults lose about
ISTOCKPHOTO

three nights of sleep CATCHING

every week, which
affects their physical and
UP ON SLEEP MONDAY MOTIVATION

mental health and

productivity at work
Skimping on sleep is not advised, but
there are some tips to deal with the
workday after a night of inadequate
‘Hate your
Reem Khokhar
rest. Expert Luke Coutinho suggests
a 30-minute power nap to refresh
and energise during the work day. He heroes to change
T for the better’
advises against oversleeping to
rishita Das, 26, sleeps only “make up” for lost hours. Instead
three-four hours every night. “I return to a consistent bedtime to
am anxious by nature and have realign your circadian rhythm.
difficulty ‘turning off’ my brain Hydrating with water and fruit juices
at the end of a day, especially
when working on a difficult project or dealing
without added sugar is better than
overloading on caffeine, which can
Architecture Discipline’s Akshat Bhatt
with stress,” says the Delhi-based publishing cause energy crashes and disrupt on mentorship and being a metalhead
professional. “I have struggled with sleep for sleep the following night. Gentle
a decade.” Inadequate sleep causes migraines, movements like stretching or walking
fatigue and a lowered immunity, which makes and sunlight exposure can improve Shail Desai
her prone to frequent colds or bouts of flu, and circulation and reduce grogginess

B
impacts her work. “It makes me less efficient after a bad night. efore he donned the architect’s hat, Akshat Bhatt played
and more irritable on many days. Managing the guitar, which made him a metal-head for life. Today,
stress is even more difficult because of insuffi- he’s found a link between his architecture practice and his
cient sleep and work always comes with When Das’ choice is between finishing a love for the progressive metal genre, djent.
stress.” project on time or getting enough rest, going out “This form of music is intense and honest. It requires rigour
Das is not alone. Health technology com- with friends or an early night, sleep always loses. and you cannot fake it. I believe those fundamentals are also true
pany ResMed’s recent Global Sleep Survey “It doesn’t feel like a ‘productive’ use of for architecture,” says Delhi-based Bhatt, 45, principal architect
2025 concluded that adults are losing an aver- time—I’m not getting anything out of it,” says and founder of Architecture Discipline, a multi-disciplinary prac-
age of three nights of sleep per week, pointing Das. tice behind projects like Mana Hotel in Rajasthan, the Discovery
towards a global sleep crisis. The survey Coutinho advises against underestimating Centre in Bengaluru, and the Make in India Pavilion at the Han-
results, based on interviews with 30,026 peo- the importance of sleep, reiterating how the nover Messe in Germany.
ple from 13 countries, including India, Japan, lack of it impacts productivity, cognitive abili- In an interview with Lounge, he talks about mentorship and
China, Thailand, Germany and the US, showed ties and career growth. why he encourages collaboration on all his projects. Edited
that 49% of Indians struggled to fall asleep at excerpts:
least three times a week, and 47% took sick IMPROVING NAP TIME Who do you consider your mentor?
leave at least once in their careers due to poor Das has tried medication, meditation and white I don’t think I have a mentor; I have many influences. I believe
sleep. Indian women had worse sleep quality noise playlists, but in vain. “The only thing that if you have a few influences, you’ll become a derivative of those
than men, experiencing fewer nights of good seems to help is avoiding screen time before and if you have hundreds of influences, you’ll become an original.
sleep (3.83 hours versus 4.13 for men), with bed, especially social media. I also try to do some My professional influences started with deconstructivism, which
hormonal changes and menopause being key form of exercise during the day so that I am was a progressive modern movement, and then I moved to high
disruptors. more likely to sleep at night.” She manages her modernists in great detail for reverence and for criticism. You
Sleep goes beyond rest. It helps boost short- migraine and fatigue with painkillers and caffe- must love your heroes, but you also learn to hate them because
and long-term physical and mental perform- ine to get through the workday. otherwise you can’t make an evolutionary change.
ance. “Science shows that even one night of Others are overhauling their lifestyles to An insight you worked on with your mentor’s guidance?
sleep deprivation can reduce natural killer (NK) improve their sleep quality. Hospitality profes- You have to build for the right reasons and with the right narra-
cell activity, compromising immunity and sional Anahita Nair has struggled with sleep tives. These narratives keep evolving.
increasing inflammation,” says Luke Coutinho, since she was a child. “It worsened in my late 20s If you have one Our conversations over the last few
an integrative and lifestyle medicine specialist. and continues in my early 30s, with adulting influence, you’ll years have been revolving around sus-
At the workplace, erratic sleep can impact and the grief of losing my dad when I was 30 fur- tainability, but we should also talk
focus, creativity, stress management, mood and ther affecting my sleep,” says the 32-year-old be derivative; if about patterns of consumption.
more. “Poor sleep quality affects your work life marketing head of a global hotel chain in Hyder- you have What does being a mentor mean to
significantly, including decision-making, abad. Light dinners, sleeping early and a lei- hundreds, you’ll you?
increased mistakes, irritability, anxiety, burn- surely start with a nourishing breakfast helps be an original I encourage collaboration on all pro-
out, and can lead to health issues like obesity, her energy levels during the day. She avoids jects, both within the design studio and
diabetes, depression and more,” says Dr. “I fall asleep quickly because I am exhausted, says Delhi-based Sonawane. “My social out- socialising on weeknights, and prefers relaxing with co-architects, consultants, clients
Nileena N.K.M, a psychiatrist and sleep medi- but I wake up around 3am either because my reach visits are postponed due to lack of sleep as weekends. Reading before bedtime and during and specialists. The practice fosters young architects and pro-
cine specialist who is a consultant at Chennai’s baby needs to be walked, or due to something I don’t feel rested enough to travel.” her cab rides to work helps clear her mind and motes the “Think Tank” philosophy. Weekly design meetings are
Nithra Institute of Sleep Sciences. that I am worried about and struggle to go back Many organisations across the world empha- have a more restful day and sleep. held every Monday to provide a vital forum for the discussion of
“As we age, it is challenging to learn new to sleep,” says the 40-year-old who works for a sise work-life balance, but the reality of working Dr. Nileena advises sticking to the same sleep current competitions and ongoing projects, and to create a plat-
things and poor sleep further impacts memory. multinational in Delhi. with international teams and looming deadlines schedule on weekdays and weeknights, as dif- form for creativity and new solutions appropriate to each design.
Career development can be derailed as upgrad- He is often tired at work, unable to do deep makes rest difficult. Rajesh works across multi- fering schedules can disrupt the regularity and We work in a completely open-plan office with democratic
ing skills is essential dives that require ple time zones, with meetings stretching into quality of sleep schedules. She also encourages beliefs. This collegiate approach extends to the broader world
to staying relevant at focused thought or the night. people to identify their chronotypes—the indi- with a constitution that consciously brings a moral dimension to
work,” Dr. Nileena Women have worse sleep writing, only manag- “International systems have frequent mid- vidual preference for when we are the most alert our work. This includes a staff sharing scheme and contributions
says. quality, experiencing fewer ing administrative or year breaks which is absent in India,” he says. and productive and when we sleep best, a reflec- to charity.
Sleep issues are not coordination work in His company supports employees through tion of our own circadian rhythm. Any book or podcast you would recommend about men-
new, but Dr. Nileena nights of good sleep (3.83 hours this state. He tries to hybrid working, and flexible hours and leaves. “One should ideally prioritise work and rest torship and growth?
has observed them vs 4.13 for men), shows a study shut off by watching “I don’t have to deal with micromanaging or around their chronotype.” However, this can be It is important to read about your value systems. Skills can be
worsening in recent something, but that watching the clock. But WFH (work from home) difficult with traditional office hours and social taught but character takes a long time to build. I would recom-
years with the over- doesn’t always help. means you are always on call, so you never com- schedules. If lifestyle changes are not helping, mend reading Atlas Shrugged by Ayn Rand, 1984 by George
stimulation caused by technology, more light Some resort to medication or supplements to pletely switch off,” he says. seek professional help, advises Dr. Nileena. Orwell, and Darwin’s Theory of Evolution.
exposure, increased caffeine usage and changes help them sleep. Social development profes- Despite growing awareness of its importance, One thing Coutinho makes clear is that one How do you unwind?
in work culture post covid. sional Ella Sonawane, 61, often struggles to fall sleep is still not often prioritised. “We often treat cannot catch up on a sleep deficit overnight. I play the guitar at earth shattering volumes to unwind.
For Rajesh P., sleep issues began post covid asleep, resorting to medicines to help her sleep sleep as something we can catch up on later, “The body needs consistent, quality sleep to
owing to disrupted work-from-home schedules on some nights. But the next day she struggles squeezing in a few hours between work, social function optimally,” says Coutinho. “The more Monday Motivation is a series in which business leaders discuss
and a stressful period at home, which led to anx- to concentrate at work. “I’m irritable but can’t commitments, and late-night screen time,” says mindful you are about sleep discipline, the bet- their mentors and their work ethics.
iety and depression. show it. I’ve had to leave work and go home,” Coutinho. ter you’ll perform—at work and in life.” Write to us at [email protected]

Be goal-oriented, not task-focused, to get ahead at work ISTOCKPHOTO

Reliable workers are While experience provides valuable les- Shweta Pritam. Until last year, the market- and must step out of their comfort zone
sons, it can become obsolete if not com- ing professional, 32, paid little to no atten- and upgrade their skills to take on more
often taken for granted. plemented by new knowledge and skills,” tion to highlighting her achievements. challenging assignments.
Strategic changes like says Srinivas Krishnan, managing director Juniors in her organisation had got pro- Talati also says they should be mindful
(South Asia) at global logistics company, motions but she had not. of the kind of assignments they pick,
highlighting your work Crown Worldwide Group. “I decided to spotlight my wins every assessing the scope of work and its impor-
Hard workers are typically task-ori- month, making sure I put out my hard tance in their overall growth within the
can change the game ented and may show little interest in work upfront without sounding boastful. company.
anything beyond immediate responsi- Fortunately, I have been able to grab the “It is possible that seniors or colleagues
Geetika Sachdev bilities. So they assume the role of “relia- attention of my seniors with this may take advantage of their ‘saying yes’
ble troubleshooters”, who can consist- approach. I have received a pay hike as tendency to push on execution-intensive

S
hruti Mehta, a content strategist at a ently put in the hours needed to com- well as a change in designation,” she says. tasks. Hard workers need to use their skills
Mumbai advertising agency, takes plete their work. Puri’s advice to elevate one’s status to their strengths,” says Talati.
on any task assigned to her, even if “However, their sense of achievement within an organisation is to make the shift Building a personal brand is another
she has too much on her plate. She is closely tied to their completion of tasks, from being seen as “just reliable to candi- way to be in the spotlight. From contribut-
describes herself as a ‘workhorse’ but which can lead them to invest less in their dates for new projects.” ing to the company newsletter to sharing
complains that it has not helped her career own professional development,” points insights in town hall meetings or even
as she has not been promoted in three out Roma Puri, associate professor and CHANGE THE NARRATIVE posting industry-related content on
years. “Despite being a reliable resource area chair (organisational behaviour and Workhorses often go unnoticed, but with LinkedIn, the options are plenty.
and never refusing any task, my boss has human resources), International Manage- some strategic changes, they can gain Knowing when to pitch ideas and how
always preferred others who don’t put in ment Institute, Kolkata. “Organisations recognition. For one, employees could to present them is also significant.
as much work but deliver big wins. That’s might prefer to keep these individuals in refrain from being available 24X7 since it “Workhorses should focus on articulat-
something I lack,” she says. their current roles rather than promote creates a perception that their time is not ing their thoughts clearly and choosing
Thomas Edison’s famous line, “There’s them.” important. the right moments to contribute,” says
no substitute for hard work”, has long “Workhorses may be used to taking on Krishnan. “The ability to analyse situa-
served as a guiding principle. While per- BEYOND LONG HOURS longer be relevant. Knowledge quickly ones,” says Mumbai-based Bhakti Talati, tasks promptly at any hour of the day but tions, solve problems and think crea-
severance and sincerity are crucial for With the advancement of technology and becomes outdated, making continuous a work-life balance coach. it has an opposite impact. Their presence tively is a major differentiator. Develop-
professional growth, hard work alone change in industry practices, strategic upskilling essential,” adds Krishnan. At the same time, employees must have is then taken for granted,” says Talati. ing intellectual capacity through contin-
cannot guarantee success anymore. planning, time management and measur- The ability to learn, unlearn and relearn the confidence to highlight their victories Setting firm time and workload bounda- uous effort helps professionals navigate
“The marketplace and ecosystem are able outcomes are more likely to deter- is crucial to get ahead at work. “Reports throughout the year, instead of only dur- ries is key. challenges effectively.”
evolving rapidly and experience alone is mine career progress. “Professionals must say that in as little as five to seven years, ing promotion periods. They must develop the habit of high-
not enough to keep up with these changes. recognise what worked in the past may no many current jobs will be replaced by new This approach helped Kolkata-based lighting their impact in professional tasks, Write to us at [email protected]
Size : below 8 mb