ECONOMY | PAGE 2 MARKETS | PAGE 6 COMPANIES | PAGE 4 Bilateral ties crucial for boosting trade, says FM Ikea plans mix of online & offline expansion in India NEW DELHI, FRIDAY, FEBRUARY 28, 2025 3 years of Sebi chief Buch: Many rights, one wrong FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM VOL. L NO. 310, 26 PAGES, `12 (PATNA & RAIPUR `12, SRINAGAR `15) 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 READ TO LEAD SENSEX: 74,612.44 ▲ 10.32 NIFTY: 22,545.05 ▼ 2.50 NIKKEI 225: 38,256.17 ▲ 113.80 HANG SENG: 23,718.29 ▼ 69.64 `/$: 87.20 ▼ 0.01 `/€: 91.43 ▼ 0.08 BRENT: $73.32 ▲ $0.79 GOLD: `85,225 ▼ `1,050 SUGGESTIONTO BE MADETO FINANCE PANEL Tuhin Kanta Pandey new Sebi chief FINANCE SECRETARY Tuhin Kanta Pandey has been appointedthenewchairmanof the Securities and Exchange Board of India (Sebi).The 1987batch IAS officer will be taking charge as the Sebi chief for a period of threeyears. “The Appointments Committee of the Cabinet has approved the appointment of Tuhin Kanta Pandey, IAS (OR:1987), finance secretary and secretary, department of revenue, to the post of chairman, Securities and Exchange BoardofIndia(Sebi),initiallyfor a period of three years from the date of assumption of charge of the post or until further orders, whicheverisearlier,”thegovernment orderstated. He will be replacing current Sebi chief Madhabi Puri Buch. —FE BUREAU »INSIDE« EKTA KA MAHAKUMBH: DAWN OFA NEW ERA, PM WRITES PAGE 14 FE SPECIAL ‘AI-powered precision to drive growth’ CEO of Publicis Media, South Asia, talks about firm's roadmap for 2025 ■ BRANDWAGON, P9 Realty World Pune A RED initiative appears in today’s edition of Financial Express. This magazine is an initiative of the marketing solutions team of The Indian Express Group and contains content paid for by advertisers. The magazine should be read as an advertisement Govt seeks to cut states’ tax share ● Panel to submit recommendations byOct 31 forFY27 SHUBHAM BATRA & NIKUNJ OHRI New Delhi, February 27 THE UNION GOVERNMENTis seeking to cut the central tax revenues that states receive, three sources with the direct knowledge of the matter said. The suggestion will be made to the Finance Commission,which makes recommendations on tax sharing along with other aspects of the Centre-state fiscal relations, and could lead to a flaring of tensions between the two tiers of government. The panel, headed by economist Arvind Panagariya, will submit its recommendations by October 31 to be implemented from fiscal 2026-27. The recommendations are binding. The Central government will recommend the share of taxes going to states be reduced to at least 40% from the current 41%, said one of the sources. A 1% swing in the states' MONEY MATTERS ■ Centre may recommend the share of taxes going to states be cut to at least 40% from current 41% ■ This could ■ States have `35,000 cr 60% give the Union govt about based on expected tax collections for the current year a share of over in total govt spending in the economy shareoftaxrevenuescouldgive the Central government about `35,000 crore, based on the expected tax collections forthe current year.The final number will vary based on the individualyear’s tax collections. Anemailsenttothefinance ministry and the Finance Commission did not get any response. The share of taxes going to the state governments has jumped from 20% in 1980 to 41% now. But spending ■ Since the pandemic, the Centre has raised share of cesses and surcharges, which are not shared with states to over 15% of gross tax revenue from 9-12% earlier Eager to elevate ties: EU chief ● Arrives herewith otherofficials,to meet Modi today SHUBHAJIT ROY New Delhi, February 27 CALLING INDIA A “trusted friend” and “a strategic ally”, European Commission president Ursula von der Leyen,who reached NewDelhi on Thursday with the European Union’s College of Commissioners, said she will discuss with Prime Minister Narendra Modi on “how to take our strategic partnership to the next level”. Modi and von der Leyen are to meet on Friday.Hervisit to India is taking place at a time when the trans-Atlantic External affairs minister S Jaishankar with European Commission president Ursula von der Leyen, in New Delhi on Thursday ANI partnership between Europe and the US is navigating uncertainty. India and EU are looking to unveil a new “strategic partnership road map” as they deal with the flux in geopolitics. External affairs minister S Jaishankar called on von derLeyen and,in a post on requirements for the Central government, particularly in years of economic slowdown, have increased,the first source said. This has led to calls for a lower share of tax revenues goingtostates,thesourcessaid. The Centre’s fiscal deficit is estimated at 4.8% of gross domestic product (GDP) for 2024-25,while the states have a fiscal deficit of 3.2% of the national GDP. Continued on Page 14 It’s telcosvs tech firms again on private 5G JATIN GROVER New Delhi, February 27 THE BATTLE BETWEEN telecom operators and enterprises over private 5G networks is back. While telcos previously opposed direct spectrum allocation to enterprises for setting up captive networks,they are now opposing any form of licensing or authorisation framework for enterprises to build such networks. The latest flashpoint follows a recent communication by the Telecom Regulatory Authority of India (Trai) to the department of telecommunications (DoT),seeking itsviews onwhetherenterprises should be granted an authorisation framework to establish private 5G networks.If approved,specific clauses would need to be AT LOGGERHEADS ■ Telecom operators argue that private 5G networks are unnecessary in India ■ Say there's no justification for enterprises to operate independent 5G networks incorporatedintothetelecommunications Act. Telecom operators argue that private 5G networks are unnecessary in India, where telecom coverage is extensive. They claim that captive private networks are only relevant in countries with vast, sparsely populated regions, ■ Tech firms, meanwhile, say telcos fear losing business in lucrative private 5G segment ■ Say they should have control over their own networks without external dependency lacking reliable public telecom infrastructure. In India, where public networks already offerwidespread connectivity, telcos insist that there is no justification for enterprises to operate independent 5G networks. Continued on Page 14 ● P VENKATESALU, MANAGING DIRECTOR, TRENT ‘Theentiregameinretailisto constantlyevolve&change’ PVenkatesalu, managing director at Trent, which runs Westside, Zudio and Star Bazaar, believes the retail business is about constant change and staying relevant to the consumer.Venkatesalu, 47, who has been with Tata Group for over two decades and was elevated to the MD’s post in 2024, talks to Viveat Susan Pinto about how the retail company is navigating the consumer slowdown, competition from fast-fashion brand Shein, and Trent’s bet on categories beyond food and fashion. What do you think of the demand environment in retail? Most retailers have pointed to a prolonged slowdown... Demand has been less strong in ❝ IF YOU LOOK AT THE LAST FIVE-YEAR PERIOD, DEMAND HAS NEVER BEEN LINEAR OR SMOOTH IN RETAIL recent months, but certain pockets have been positive. Having said that, is it all gloom and doom in retail? I wouldn’t think so. If you look at the last five-year period, demand has never been linear or smooth in retail in general.There have been positive spikes as well as negative demand trends. However, if you look at a 10-year horizon, the domestic retail market has been growing at a CAGR (compounded annual growth rate) of & about 9-10%. So, the secular trend of growth remains intact. However, consumer demand varies across markets with pockets of growth. The fiscal stimulus announced in the Budget is expected to boost consumption, especially in the discretionary space. Do you think it would kickstart the virtuous cycle of growth in retail? The Indian consumer is getting far more exposure to brands today and what is good for her from a consumption standpoint.This has also made her far more aspirational than earlier.To that extent, any initiative, policy measure or stimulus that puts more money in her hands is going to be good for consumption. It will be difficult for me to put a specific finger on the pulse of the consumer and indicate where she will put that extra money. But directionally speaking, the fiscal stimulus is positive for the retail industry. Continued on Page 14 Related reports on Page 4 ■ New Delhi X, said, “Appreciate her thoughts on re-energising India’s engagement with Europe. The wide-ranging participation of Indian ministers and EU College of Commissioners during this visit stands testimony to the importance we place on deeper India-EU ties.” President von der Leyen is accompanied bythe European Union College of Commissioners — of the 27 EU commissioners, 22 are part of the delegation — and the second ministerial meeting of the India-EU Trade and TechnologyCouncil and bilateral ministerial meetings will be held during the visit. She went to Rajghat to pay tribute to Mahatma Gandhi. Continued on Page 14