ECONOMY | PAGE 2 Capex revisions not due to fiscal constraints: FM WWW.FINANCIALEXPRESS.COM FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE READ TO LEAD VOL. NO. XXI 284, 26 PAGES, `12 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 *Prv close SENSEX: 76,024.51 ▼ 1,390.41 NIFTY: 23,165.70 ▼ 353.65 NIKKEI 225: 35,624.48 ▲ 6.92 HANG SENG: 23,206.84 ▲ 87.26 `/$: 85.46* ▲ 0.33 `/€: 92.09* ▲ 0.33 BRENT: $75.11 ▲ $0.34 GOLD: `90,797 ▲ `2,106 ChatGPT’s Studio Ghibli feature Do tech-assisted creative products undermine artistic legacy? ■ EXPLAINER, P9 -3.46 76,882.58 -3.35 (Open) -2.81 1,390.41 -2.73 points 1.80% (close) (cl ) AHEAD OF US President Donald Trump’s imposition of reciprocal tariffs, gold prices on Tuesday hit an all-time high as investors sought safety amid a stock-market meltdown.In the international market,spot gold KAROLINE LEAVITT, press secy,USTR report slam‘unfair trade practices’ WHITE HOUSE PRESS SECRETARY You have 100% tariff from India on American agricultural products... This makes it virtually impossible for American products to be imported into (India) MUKESH JAGOTA New Delhi, April 1 HDF HDFC Bajaj Baj Finance Fin Infosys In 76,024.51 Gold prices zoom to all-time high ● White House HCL Tech Bajaj Baj Finserv Fin Canada and Mexico, countries which faced additional US tariffsafterTrumpassumedoffice. Separately, in a report, the United StatesTrade Representative (USTR) made extensive adverse comments on India’s assortedeconomicpolicieslike Make-in-India, defence offset requirements, data localisation norms, import licensing, and patenting rules. “...You have a 100% tariff fromIndiaonAmericanagricultural products,” Leavitt told reporters. Clubbing India with the European Union and Japan, she said,“These countries have been ripping off our nation for fartoolong,andthey’vemade,I think, their disdain for the Americanworkers quite clear.” Continued on Page 17 prices hit $3,148/ounce. In Mumbai’s Zaveri Bazar spot market, gold prices (99.5% purity or standard gold) have gained 20% this calendar year. OnTuesday,goldpricesclosedat `90,750 per10 gram. ■ PAGE 7 CHINA IS READY to import more Indian products and strengthen trade cooperation, its ambassadorto India said. ChinaandIndiashouldwork more closely together, Chinese President Xi Jinping told PresidentDroupadiMurmuonTuesday,while exchanging congratulatory messages to mark the 75th anniversary of the start of theirdiplomaticties. “We arewilling toworkwith the Indian side to strengthen practical cooperation in trade and other areas, and to import more Indian products that are well-suited to the Chinese market,” Chinese envoy Xu Feihong told the Global Times.“We also welcome more Indian enterprises to cross the Himalayas andseekopportunitiesforcooperation in China, sharing the dividends of China’s development,” he said. —REUTERS Bankingliquidityturnspositiveafter3months THE RESERVE BANK of India’s aggressive fund infusion in the past few months is beginning to show results, as the banking system’s liquidity position turned surplus at the end of March — the first time in three months. The banking system’s liquidity stood at a surplus of `89,399 crore on March 30. On March 29, the liquidity was at `71,672 crore.The last time,therewas a liquiditysurplus was on December 15, when it stood at `33,533 crore. At the start of December, the surplus stood at `1 lakh crore. In the past few months, the banking system was cashstrapped, as foreign institu- RBI net liquidity injection/absorption (in ` crore) 3,50,000 2,50,000 -51,123 Dec 1, ‘24 1,50,000 50,000 0 -50,000 -1,50,000 tional investors (FIIs) exited the market in droves. In the second half of FY25, FIIs sold shares of $25 billion, which led to significant pressure on the rupee. In response, the Reserve Bank of India (RBI) sold dollars aggressivelyto defend the ■ The last banking liquidity surplus was on Dec 15, when it stood at `33,533 cr ■ In January, the RBI announced a `1.5L-cr package to boost liquidity in the system ■ Positive liquidity could -89,399 Mar 30, ‘25 rupee that put pressure on the liquidity. In addition, there were tax outflows due to advance tax and goods and services tax (GST) payments. In January, the RBI announced a comprehensive `1.5-lakh-crore package, including purchases of gov- give comfort to banks to lower lending rates ernment securities, variable rate repo auctions, and dollar-rupee swaps. Overall the central bank has infused over `5 lakh crore in the past three months. The surplus in the liquidity position has also happened because of a rise in spending Jun–2024 12.5 69.1 82.0 68.1 82.5 47.7 77.7 Sep–2024 Jun–2024 Mar–2024 -12.6 1.2 -82.0 Sep–2024 5.8 Dec–2024 6.8 Mar–2025 12.9 67.5 4.65 3.28 Total 15.2 Mar–2024 Jun–2024 Dec–2024 Private Mar–2024 75.4 « « 117.3 2.6 -12.2 -71.5 Sep–2024 8.5 Dec–2024 8.3 82.3 18.7 Mar–2025 Private sector projects Value (` lakh cr) chg (%, y-o-y) FY21 FY22 FY23 -0.9 FY24 23.3 FY25 7.4 -18.4 114.6 103.3 -9.0 -8.8 15.9 32.3 29.4 26.8 Source: CMIE ● RBI MARKSAMILESTONE PTI ...meanwhile, China willing to buy more from India RBI’s aggressive fund infusion and rise in govt spending yield results EASING PRESSURE -20.3 5.8 Continued on Page 17 President Droupadi Murmu with RBI governor Sanjay Malhotra at an event to mark the central bank’s 90th foundation day, in Mumbai, on Tuesday ■ REPORT, PAGE 7 GSTcollectionsin Marchsecond-best ● Grow 9.9% to FE BUREAU Mumbai, April 1 124.8 Dec–2024 1.5 « -3.87 74.2 Top Sensex losers -39.3 2.7 Mar–2025 Sep–2024 TECK TE -10.0 Jun–2023 -1.73 Sep–2024 2.7 1.4 « Fin Financial ser services -1.78 Jun–2024 « « -2.24 ` lakh cr chg (%, y-o-y) Mar–2024 « « (Intra-day, April 1) Reciprocal tariffwaiver gets two hard knocks... EVEN AS IT geared up to announce reciprocal tariffs, theDonaldTrumpadministration has fired fresh salvos at India’s import curbs, denting hopes of any reprieve for New Delhi from the much-touted additional trade barriers. On Monday, White House presssecretaryKarolineLeavitt made sharply critical comments about India, Japan, and the European Union for their “unfair trade practices.”These countries are amongAmerica’s major trading partners, but were not listed among China, Co Consumer dur durables IT -2.51 Govt « Sensex THE WAIT FOR a robust capex cycle only appears to get longer. The value of new projects announced bythe private sectorwasupjust3.3%onyear in the March quarter, causing itsshareinallprojectsunveiled todeclineto 69%from around 82% in both the previous and the year-ago quarters. Data from the Centre for Monitoring Indian Economy (CMIE) also showed that in the whole of 2024-25, privatesector capex fell nearly 9% on year to `26.8 lakh crore, the lowest in three years. It is for the second straight year that private capex dropped on a year-on-year basis, implying that the post-Covid pick-up was short-lived. Alsoworryingisasignificant andsustaineddropintherateof completionof projects. « « FE SPECIAL Re Realty -3.05 New projects announced Share of private sector (in %) « THE ESTIMATED ECONOMIC growth of India at 6.5% in FY26 will remain the highest of the advanced and emerging G20 countries, supported by tax measures and continued monetary easing, Moody’s Ratings said, reports fe Bureau. ■ PAGE 2 Continued on Page 17 77,414.92 (Pr (Previous close) Top sectoral losers « India to lead G20 nations in growth, says Moody’s ITWASAcrueljokeonthestock markets on April Fool’s day, whichwasalsothebeginningof a new financial year. Stock indices fell over 1.5% on Tuesday — their biggest single-day drop in more than a month. Fears of US President Donald Trump’s reciprocal tariffs kicking in April 2 kept investors on theedge,andmanytookmoney offthetableduetotheuncertain outlook. The Sensex declined 1,390.41 points, or 1.80%, to close at 76,024.51, while the Niftydropped353.65points,or 1.50%, ending at 23,165.70. The markets remained closed on Mondayon account of Eid. However, despite the sharp fall in benchmark indices, the broader market remained relatively resilient.The BSE Midcap indexdeclined1.04%,whilethe BSESmallcapindexedgedupby 0.07%. The overall market breadthwaspositive,with2,708 gainers against1,344 losers. FEAR GAUGE SURGES INVESTMENT SLUGGISH « « « PASSENGER VEHICLE SALES — dispatches from factories to dealers — rose 4% year-onyear in March to 388,249 units, with leading makers reporting varied performances, reports Nitin Kumar. For the full FY25, total sales were up 2% at 4.3 million units. ■ PAGE 4 KISHOR KADAM Mumbai, April 1 VIVEAT SUSAN PINTO, KISHOR KADAM & SAIKAT NEOGI Mumbai/New Delhi, April 1 « Automobile sales up 4% in March, 2% in FY25 Markets bleed in fear ofTrump fire « THE SECURITIES & Exchange Board of India (Sebi) has extended to May 1 the deadline for implementing rules related to retail investors’ participation in algorithmic trading, reports fe Bureau. The actual effect of the circular, which Sebi brought out in February, will be from August 1. ■ PAGE 7 Tariff turbulence by the government. FIIs have also turned net buyers in the Indian stock market in the last couple of weeks. Further, there are expectations of the liquidity conditions easing further in the April-June period, following the central bank’s transfer of surplus dividend to the government,estimated at over `2 lakh crore. The positive liquidity in the banking system is good news,as it could give comfort to banks to lower lending rates at a time when the RBI has taken its first step at cutting key rates, with a rate cut of 25 basis points in February. Analysts expect there could be two more rate cuts totalling 50 bps this financial year. There are expectations that the next rate cut may happen this month. `1.96 lakh crore KITTY SWELLS GST collections (in ` lakh cr) GROSS GOODS AND services tax (GST) collections grew 9.9% to `1.96 lakh crore in March (February transactions), the second-highest mop-up ever, reflecting an uptick in goods shipments. According to official data, GST revenue from domestic transactionsrose8.8%to`1.49 lakh crore,while revenue from importedgoodswasup13.56% to `46,919 crore.The gross collections include Central GST receipts of `38,145 crore,State GST of `49,891 crore and Integrated GST of `95,853 crore. Cess collections stood at `12,253 crore in March.Due to a jump in refunds,net GST revenue rose 7.3% on year to over `1.76lakhcroreinMarch.Total tax refunds grew 41% to `19,615 crore in March. GST mop-uphadhitarecordhighof `2.1 lakh crore inApril 2024. “Single-digit growth in GST Apr HYDERABAD Zomatoaxes 600staffers as AItakesover customercare RAGHAVAGGARWAL New Delhi, April 1 PRASANTA SAHU New Delhi, April 1 revenueforthemonthwouldbe a bit of concern for the government,though partlyit seems to be because of higher refunds compared to last year,” said Pratik Jain,partner,PwC India. FOOD DELIVERY PLATFORM Zomato has laid off around 600 customer support executives as,sources said, the company increasingly integrates artificial intelligence into its customer support operations. Theseemployeeswerehired under the Zomato Associate AcceleratorProgramme(ZAAP), launchedlastyearand designed to train employees to enhance customerservice.Fresherswere primarily hired for the programme, with an average annualsalaryofapproximately `4.5 lakh. These employees worked from Zomato’s Gurugram and Hyderabad offices. “About1,500-1,600people were recruited for ZAAP from various campuses across the country,”said a source.Sources said more lay-offswithin ZAAP are likely in the coming weeks. Whencontacted,Zomatodid not comment on the matter. Continued on Page 10 Continued on Page 10 Growth (y-o-y, in %) 2.1 12.4 May 1.73 10 Jun 1.74 8 Jul 1.82 10.3 Aug 1.74 10 Sep 2024 Sebi extends deadline for retail algo trading rules Private capex intent at three-year low in FY25 1.73 6.5 Oct 1.87 8.9 Nov 1.82 8.5 Dec 2025 IN THE NEWS Apr–2025 HYDERABAD, WEDNESDAY, APRIL 2, 2025 OpenAI raises $40 bn at a valuation of $300 bn Dec–2024 India is amazing from space: SunitaWilliams INTERNATIONAL | PAGE 10 « « BACK PAGE | PAGE 26 1.77 7.3 Jan Feb Mar 1.95 12.3 1.84 1.96 9.1 9.9