POLITICS | PAGE 10 COMPANIES | PAGE 5 CM apologises for Manipur ethnic conflict INTERNATIONAL| PAGE 7 BPCLbuys more crude from Middle East Arrest warrant against South Korean president NEW DELHI, WEDNESDAY, JANUARY 1, 2025 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. L NO. 260, 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 SENSEX: 78,139.00 ▼ 109.13 NIFTY: 23,644.80 ▼ 0.10 NIKKEI 225: 39,894.54 ▼ 386.62 HANG SENG: 20,059.95 ▲ 18.53 `/$: 85.61 ▼ 0.07 `/€: 89.20 ▲ 0.06 BRENT: $74 ▲ $0.01 GOLD: `75,913 ▲ `39 THE CENTRE’S FISCAL deficit stood at `8.47 lakh crore in AprilNovember, 52.5% of the Budget estimate, a release by the finance ministry said. The Centre has pegged the fiscal deficit in FY25 at `16.13 lakh crore. ■ PAGE 2 Rupee closes at new all-time low of 85.61 THE RUPEE CLOSED at fresh low of 85.61 due to broad-based dollar bids and declining Chinese Yuan, said forex traders, reports Anupreksha Jain. For the last three months, the rupee has been on a depreciating path. ■ PAGE 6 Correction The report ‘FM says wishes to do more for middle class’ was based on an earlier interview with aTVchannel.The FM did not make any statement on the issue on Monday.We regret the error. »EXPLAINER« KEN-BETWA PROJECT: HOPES MEET FEARS PAGE 9 FE SPECIAL ‘AI and marketing make a powerful combination’ Infosys EVP Satish HC on how AI is redefining the role of marketers ■ BRANDWAGON, P9 ments that prioritise resilience over efficiency. This shift can positionIndiaasacriticalplayer in global manufacturing. The Tata Group’s ambitious plans include creating 500,000 manufacturing jobs over the next fiveyears and establishing cutting-edge facilities such as India’sfirstsemiconductorfabrication unit in Gujarat and advancedOutsourcedSemiconductor Assembly and Test (OSAT) plants in Assam.These projects are expected to generatesignificantindirectemploymentopportunitiesandbolster THE YEAR AHEAD 2025 expand access to clinical care and environmentalresearch’. Chandrasekaran foresees 2025 as a transformative year for manufacturing, driven by global supply chain realign- BajajAuto overtakes Ola in DecemberE2Wsales NARAYANAN V Chennai, December 31 OFF THE FAST TRACK BAJAJAUTOTOPPED electric two-wheeler (E2W) sales in December, ending market leader Ola Electric’s reign in monthly rankings. According to the latest Vahan data, the maker of Chetak electric scooters sold 18,035 units in December, a 73% year-onyear increase, to capture a market share of 25%. In November, the Pune-headquarted company had a market share of 22%. Bhavish Aggarwal promoted Ola Electric, meanwhile, slipped to the third place. The company sold 13,569 units in December, down a sharp 55% from 30,470 units in the same month in 2023. The company’s market share plummeted to just 19% down from a strong 40% share in December 2023. Total E2W sales in December dropped to 72,090 units, compared to 1,39,449 units in Octoberand 1,19,644 units in November. This is despite the Monthly E2W sales 75,945 72,090 y-o-y change (%) -5 Dec 2023 Dec 2024 CEO, OYO Look forward to integrating AI for personalised guest experiences, and empowering small hotel owners, showcasing India’s tech prowess India’s position as a manufacturing hub. Leaders like Saugata Gupta, MD & CEO of Marico, emphasise the importance of‘innovation,affordability,andavailabilityas keydrivers of growth’. Harsha Vardhan Agarwal, managing director of Emami and president of Ficci, believes India’seconomicfundamentals remain strong and that healthier bank and corporate balance sheets will support the next phase of growth. Continued on Page 10 Gold set to shine brighter in new year GOLD IS EXPECTED to keep shining in 2025, but faces a two-way risk that could dim its sheen, reports Akshata Gorde. An easing interest rate cycle and ongoing geopolitical tensions could aid the precious metal’s rally to even `90,000 levels, but if central banks turn hawkish or geopolitical fears ease—investors may move to riskier assets. Units sold* 25 Bajaj Auto 24 TVS Motor 19 Ola Electric 14 Ather Energy THE FUNDING WINTER for startups is far from over. Although funding in 2024 increased slightly to $11.1 billion,markinga 6%uptickfrom lastyear,itremainsastaggering 56% lower than the $25.4 billion raised in 2022.Further,the fourthquarterof2024recorded only$1.8billionfundingacross 219 rounds – the lowest in the pastthreeyears–asharp47.5% drop from Q3’s $3.5 billion and 33.3% lower than Q4 2023. Decembercappedtheyearwith amere$433million,thelowest monthly funding figure of the calendaryear. Despite the bleak numbers, 2024 offered a glimmer of hope forthestartupecosystem.Tracxn data shows startups raised slightly more than the $10.7 billion secured in 2023, and the 4 Greaves Electric in the same month last year. Ola, which commanded half the market with a 51% share, in April this year, has been grappling with several problems including consumer complaints about defective products and inadequate after-sales service. Ola’s sales halved from 29,252 units in November. Continued on Page 10 THE GOVERNMENT'S AMBITIOUS push to build new airports in smaller centres is hittingturbulence,withseveralof these facilities struggling to attract traffic and some turningintoghostairports.Despite heavy investment in infrastructure, newer airports like Kushinagar in Uttar Pradesh and Sindhudurg in Maharashtra remain largely inactive, as airlines scale back operations citing low passenger demand. The Union Territory of Pondicherry, for instance, did not see a single scheduled flight for eight consecutive months thisyear.The dryspell ■ Pondicherry airport did not see a single scheduled flight for eight consecutive months this year ■ Kushinagar International Airport has been without flights since April ended only on December 20, when a 78-seater turboprop flight from Bengaluru landed at the Pondicherry airport. Marking its arrival with a ceremonial water cannon salute, the IndiGo flight underscored the irregularity of air traffic at ■ Data reveal a similar fate for other airports like Kurnool (AP), Pakyong (Sikkim) & Sindhudurg (Maharashtra) such locations. Kushinagar International Airport, inaugurated in October 2021 as one of 12 greenfield projects under the government's ambitious infrastructure drive, has been without flights since April. ■ Disruptions caused by Covid, global aircraft engine issues have exacerbated the problem Built to connect eastern Uttar Pradesh and neighbouring Bihar, the airport was also expected to serve Buddhist pilgrims but now sits idle. Recent data from the Airports Authority of India (AAI) reveal a similar fate for other ▼ 8% Series A+ rounds 393 ▼ 40% First time funded companies 2020 2021 2022 2023 2024 funding ($ bn) # rounds Source: Tracxn Technologies ecosystem saw 20 funding rounds of over $100 million. Additionally, more startups achieved public exits, signalling improved investorconfidence at thehigherendofthemarket. However, these gains mask deeper challenges. The 1,604 funding rounds recorded this year represent the lowest number in seven years. Seed funding has been particularly hard hit, with rounds plummeting 40% to 925 – the lowest since 2020. Total seedstage funding fell 22% to $971 million, reflecting increased investor caution toward earlystage and unproven business models. Continued on Page 10 Market share cap for UPI postponed by two years JASPREET KALRA Mumbai, December 31 THE NATIONAL PAYMENTS Corporation of India (NPCI) on Tuesday delayed the implementation of market share caps for transactions processed via the unified payments interface (UPI) by two years, a move that will benefit Google Pay and Walmartbacked PhonePe. According to the proposal, first made in November 2020, digitalpaymentfirmswouldnot be allowed to hold more than 30% share of the volume of transactions processedvia UPI. The mandate,which was to take effect from the end of 2024,willnowkickinattheend ofDecember2026,accordingto a statement from NPCI. Google Pay and Walmartbacked PhonePe are the two most widely used apps in India to make UPI payments. Other players include fintech companies such as Paytm, Navi, Cred andAmazon Pay. PhonePe's share of UPI payments stood at 47.8% in November 2024 while Google Pay's sharewas at 37%,according to regulatorydata. Continued on Page 10 IT SERVICES COMPANIES are projectedtoseeagradualrecovery in the October-December quarter, driven by stronger demand in the banking, financial services, and insurance (BFSI) sector,as well as a reduction in project cancellations, shorter furlough periods, and easing macroeconomic uncertainties, reports Padmini Dhruvaraj. Margins are expectedtoshowmixedresults across the industry. ■ PAGE 4 Newairportsstruggletoattractflyers DRY RUN 523 2,114 1,448 2,321 ▼ 39% New additions to Soonicorn Club 3,140 3,311 No flight in months at some locations due to irregular passenger demand SWARAJ BAGGONKAR Mumbai, December 31 New Unicorns 99 AYANTI BERA Bengaluru, December 31 ITfirms may see gradual recovery in Q3 *Dec 1-30 Souce: Vahan dealers offering attractive discounts. TVS Motor sold 16,966 units of its iQube e-scooters in December, a 37% year-onyear increase,to secure a 24% market share,retaining its second spot. IPO-bound Ather Energy saw a 56% year-onyear increase in sales, delivering sales of 10,237 units in December. Its market share rose to 14%, compared to 8% 6 ■ PAGE 6 % share A LONG WINTER 11.1 For most FMCG Strong bank firms, the key and corporate ask is boosting balance sheets, urban demand. improving rural Measures to demand and mitigate inflafiscal discipline tionary concerns promise a posi- will increase tive outlook consumer for 2025 confidence RITESH AGARWAL, 2024butnowhere nearthe2022high 10.7 We expect 2025 to be a better year for the sector and for us as we stay focused on accelerating the momentum of our diversification and capitalise on it EMAMI MD & FICCI CHIEF CEO, DABUR INDIA ● 6%increasein 25.4 AS THE COUNTRY steps into 2025,theaspirationsofitscorporate sector are anchored in four overarching priorities: regulatoryreforms,technologicalleadership,fiscalprudence, and measures to boost consumption. Progress in these areas, India Inc believes, can help create a robust business ecosystem and make Indian industry globally competitive.Healthy bank and corporate balance sheets, combined with prudent economic management, are key to attracting investment and ensuring private-sector-led growth. Innovation and technology remainattheheartofIndiaInc’s aspirations. Ritesh Agarwal of Oyo see artificial intelligence (AI) and machine learning as criticalforcreatingpersonalised offerings and showcasing India’stechnologicalprowesson the global stage.AI’s transformative applications extend beyond business, impacting healthcare,mobility and scientific discovery. TataSonschairmanNChandrasekaran,inhisyear-endnote to the group's employees,highlights the AI-driven breakthroughs such as protein structure prediction, which ‘are poisedtorevolutionisedrugdiscoveryanddiagnostics,aswellas MOHIT MALHOTRA, Fundingworries remain forstartup ecosystem 37.2 HARSHA VARDHAN AGARWAL, 2,755 Fiscal deficit at 52.5% of full-year target at Nov-end MD & CEO, MARICO SAUGATA GUPTA, 10,237 THE OUTPUT OF eight core industries’ rose 4.3% on year in November, primarily due to an uptick in production of coal, cement and steel, according to official data released on Tuesday, reports Priyansh Verma. ■ PAGE 2 FE BUREAUS New Delhi/Mumbai, December 31 13,569 Core sector output grows 4.3% on year 16,966 IN THE NEWS India Inc’s 2025 wish list: A future-ready economy 18,035 WE WISH OUR READERS A HAPPY NEW YEAR 11.6 INNOVATION,TECHNOLOGYCENTRALTOCORPORATES’ASPIRATIONS newer airports, such as those in Kurnool (Andhra Pradesh), Pakyong (Sikkim) and Sindhudurg (Maharashtra). Solapur Airport in Maharashtra, after a `65 crore revamp, also remains dormant. While Sindhudurg was intended to rival Goa’s coastal tourism with its pristine beaches,Kushinagar aimed to boost religious tourism. But poor demand and unviable operations have forced airlines like SpiceJet and Alliance Air to discontinue routes under the government’s regional connectivity scheme (RCS) – Ude Desh Ka Aam Nagrik or Udan. Continued on Page 10 New Delhi STATUS QUO Market share PhonePe 47.8 Others: 15.2% (%) Google Pay 37% ■ Other players include Paytm, Navi, Cred and Amazon Pay ■ PhonePe and Google Pay processed a combined 13.1 billion transactions in November