BACK PAGE, P24 MARKETS, P6 INTERNATIONAL, P7 WILL POWER BARD, PIXEL ‘JOB CREATION KEY’ YEAR OF ‘NUCLEAR FUSION’ Google rolls out its multimodal AI model Gemini in three sizes Without better governance, all changes will be stillborn, says Raghuram Rajan Taylor Swift named Time magazine's Person of the Year MUMBAI, THURSDAY, DECEMBER 7, 2023 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. LXIII NO. 287, 24 PAGES, `12.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 69,653.75 ▲ 357.61 NIFTY: 20,937.70 ▲ 82.60 NIKKEI 225: 33,445.90 ▲ 670.08 HANG SENG: 16,463.26 ▲ 135.40 `/$: 83.33 ▲ 0.06 `/€: 89.91 ▲ 0.41 BRENT: $76.62 ▼ $0.58 GOLD: `61,969 ▼ `132 IN THE NEWS RALLY CONTINUES, SENSEX CLOSES IN ON 70,000-MARK INDIAN EQUITIES CONTINUED their upward march on Wednesday with the benchmark indices scaling new peaks, reports Siddhant Mishra. ■ PAGE 6 CENTRE SEEKS NOD FOR `14K-CR EXTRA SPEND FOR NREGS THE CENTRE ON Wednesday sought approval of Parliament for gross additional spending of `1.29 trillion, including `14,524 crore for MGNREGS and `13,351 crore for fertiliser subsidy. ■ PAGE 2 ADANI TO INVEST $75 BN IN GREEN ENERGY BY 2030 ADANI GROUP PLANS to invest $75 billion on energy transition initiatives by 2030, chairman Gautam Adani said on Wednesday, reports Raghavendra Kamath. ■ PAGE 4 EXPLAINER Why organ trade continues to flourish despite a ban ■ PAGE 9 MOVE PART OF SHIFTING OUT OF CHINA Apple pushes for Indian batteries FE BUREAU New Delhi, December 6 INADEVELOPMENT thatwill deepen India’s local value addition in the mobile and electronicsmanufacturingchain,Applehasasked its suppliers to make batteries for its forthcoming iPhone 16 domestically. This is part of the company’s plans to shift its global supply chain out of China. According to a Financial Times report, Apple has asked its battery manufacturers, like Desayof China,to establish newfactories in India. Similarly, Simplo Technology, a Taiwanese battery supplier has been asked to scaleupproduction in India forfuture orders. Earlierthisweek,ministerofstateforelectronicsand ITRajeevChandrasekharhadsaid that TDK, a Japanese supplier for Apple, was setting up a 180-acre facility in Manesar, Haryana,to build batteries for iPhones. CompanieslikeDesayandSimplopackage the electric cells produced by TDK and its counterparts into modules and send them to contract manufacturers like Foxconn,which has a manufacturing base in India. In a recent interview to FE, communications and IT minister Ashwini Vaishnaw said that after achieving success in domestic mobile manufacturing, the government is working on a strategy for export-led growth for smartphones and electronics. “Today, India has become part of the global value chain (GVC) of mobile phones andelectronics.Nowwe are lookingat a strategy of export-led growth rather than simply import substitution and looking at our needs,”Vaishnaw said. “A great opportunity has come ourwayandwe have reached a level SOURCING STRATEGY ■ Chinese battery manufacturer Desay asked to set up factories in India ■ Taiwanese firm Simplo told to scale up production in India for future orders 15-18% domestic sourcing of components for smartphones, electronics in value terms ■ This is against 30-40% for China, 20-25% for Taiwan where we can rapidly grow our exports.” There is huge scope for India to increase exports and become a GVC.Forinstance,Vietnam’s domestic market for mobile phones and electronics invalue terms isworth $2 billion,but exports areworth $40 billion.India’s domestic market is worth $44 billion, but exports as of FY23 stood at $11 billion. Currently, domestic sourcing of components for smartphones and electronics is around30%involumetermsand 15-18%in value terms. Continued on Page 7 GST: Infra firms to move court New tax on corporate TAX TANGLE guarantee may impede financing of projects 50-60 PRIYANSH VERMA & RAGHAVENDRA KAMATH New Delhi/Mumbai, December 6 SEVERAL REAL ESTATE AND infrastructurecompaniesaresettofilewritpetitions beforevarioushighcourts,challengingthe 18% Goods and Services Tax (GST) imposed on corporate guarantees issued by parent companies to subsidiaries and related parties, sources aware of the matter told FE. The move follows 50-60 such companies receiving tax notices after the GST Council’s decision in late October to tax these guarantees. companies, such as DLF, IL&FS, Indiabulls Real Estate, Supertech issued tax notices regarding corporate guarantees Experts feel the new tax will cause stress in the infrastructure sectors as many firms are heavily dependent on external financing for mega projects. The companies, the sources said, will challenge the logic of taxing corporate guarantee as a service being rendered, Share of high-paying FDs surges to 80% SACHIN KUMAR Mumbai, December 6 THE SHARE OF term deposits offering an interest rate of 6-8% surged to nearly 80% at the end of Septemberfrom 58% at the end of March, Reserve Bank of India (RBI) data shows. Approximately half of the fixed deposits (FDs) with banks, amounting to `52.87 trillion, now offer an interest rate of 7-8%. Suresh Khatanhar, DMD, IDBI Bank, saidtheliquiditydeficitinthebankingsystem was at a five-year low and banks need `1,000 crore aggregate tax demands in the notices funds to meet credit demand.“The rates on deposits are bound to go up, but banks are not too concerned at the higher cost because credit demand is strong,” Khatanhar added. The cost of funds for banks has risen since the share of term deposits carrying sub-6% interest rates declined to 16.7% in September from 38.7% in March. The amount parked in deposits offering less than 6% interest halved to `17.59 trillion at the end of September from `36.82 trillion at the end of March. Continued on Page 7 18% GST on corporate guarantees between parent and subsidiaries, related parties as per October notification ■ Firms to challenge taxing of corporate guarantee as a service being rendered the sources said. The pleas will also raise questions overthevaluation mechanism of taxing such transactions, as well as the retrospective nature of the current set of notices. Continued on Page 7 BANKS' TERM DEPOSITS (% share) As of March-end 2023 As of Sept-end 2023 Less than 1.31 3% 0.66 3% & above 1.53 but <4% 0.92 4% & above but <5% 5% & above but <6% 6% & above but <7% 7% & above but <8% Source: RBI 4.13 2.51 12.55 31.81 27.51 28.61 30.27 50.01 Roz thoda thoda aage badhna hai zindagi ki SIP Zindagi ke liye SIP Adhik jaankari ke liye apne MFD/RIA se sampark karein ya scan karein SIP ke fayde Market ki timing se azadi Nivesh raashi chunne ki azadi An Investor Education and Awareness Initiative SIP - Systematic Investment Plan. Visit https://www.hdfcfund.com/information/key-know-how to know more about the process to complete a one-time Know Your Customer (KYC) requirement to invest in Mutual Funds. Investors should only deal with registered Mutual Funds, details of which can be verified on the SEBI website (www.sebi.gov.in/intermediaries.html). For any queries, complaints & grievance redressal, investors may reach out to the AMCs and / or Investor Relations Officers. Additionally, investors may also lodge complaints directly with the AMCs, if they are unsatisfied with the resolutions given by AMCs they may raise complaint through the SCORES portal on https://scores.gov.in. SCORES portal facilitates investors to lodge complaint online with SEBI and subsequently view its status. In case the investor is not satisfied with the resolution of the complaints raised directly with the AMCs or through the SCORES portal, they may file any complaint on the Smart ODR on https://smartodr.in/login. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.