COMPANIES | PAGE 4 COMPANIES | PAGE 4 AI first in India to offer Wi-Fi on local routes INTERNATIONAL | PAGE 7 Indiatoleadglobalsupply chains:AnandMahindra Russia, Ukraine end gas transit to Europe NEW DELHI, THURSDAY, JANUARY 2, 2025 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. L NO. 261, 24 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: 78,507.41 ▲ 368.40 NIFTY: 23,742.90 ▲ 98.10 NIKKEI 225: 39,894.54 ▼ 386.62 HANG SENG: 20,059.95 ▲ 18.53 `/$: 85.65 ▼ 0.04 `/€: 88.70 ▲ 0.50 BRENT: $74.64 ▲ $0.65 GOLD: `76,308 ▲ `395 Bhuvnesh Kumar appointed new UIDAI CEO BHUVNESH KUMAR, ADDITIONAL secretary in the ministry of electronics and IT, on Wednesday assumed charge as the chief executive officer of Unique Identification Authority of India. Q-comm sales hit record high on New Year's Eve QUICK COMMERCE FIRMS saw their sales soaring to unprecedented levels in December 31, reports Raghav Aggarwal. ■ PAGE 4 FE S P E C I A L S Separating hype from reality Google's new quantum computing chip, Willow, marks a groundbreaking step in the race to revolutionise many industries ■ EFE, P9 Why Trump’s base is debating H-1B A public row has erupted over the H-1B visa, whose biggest beneficiaries are Indians. FE explains the issues at the heart of it ■ EXPLAINER, P9 5.6 5 Projects completed Govt Private 25.0 -40.0 1.2 0.5 0.3 -42.9 20.0 Private 1.6 1.4 -6.7 84.6 -22.1 -36.8 0.9 Projects dropped Govt 63.6 6 TOTAL 0.7 0.6 -53.3 -57.1 -52.6 TOTAL 2.4 3 -30.2 2.4 4.8 45.5 Q3FY25 was down 52.6%. The Centre’s capex in the AprilNovember period has contracted 12.3% on year to `5.13 lakh crore. To meet the target of `11.11 lakh crore set out in the Budget 202425, the expenditure needs to grow at 65% on year in the DecemberMarch period, a somewhat tall ask, say analysts. In the latest‘MonthlyEconomic Review’report,thefinanceministry had observed there are signs of capital formation growth rebounding Source: CMIE Economic Outlook earlyin H2 of FY25,with the central government’s capex picking up pace. “The order books of infrastructure and capital goods grew sharply in FY24 and H1 of FY25, indicating a pent-up investment impulse that will play out in the quarters ahead,”the review noted. The slower government spending and project announcements have been attributed to the general elections and some state elections. Continued on Page 5 Dec GSTmop-up at `1.77Lcr PRIYANSH VERMA New Delhi, January 1 THE GROSS GOODS and Services Tax (GST) collections in December cameinat`1.77lakhcrore,up7.3% on year,data released by the finance ministryonWednesdayshowed. With this,the monthlygross GST mop-up has now stayed above the `1.7lakh-croremarkfortenconsecutive months. However,thepaceofyear-on-year growthslowedtoathree-monthlow in December.In theApril-December period,grossGSTcollectionsstoodat `16.33 lakh crore,up 9.1% on year, which is lowerthan the 11% growth anticipated earlier by the finance ministryofficials. AsGSTcollectionsreflectthestate of demand in the economy,a lowerthan-expectedgrowthinthemop-up maypromptthegovernmenttolook atmeasurestoboostconsumptionin the Budget for2025-26,sayexperts. AccordingtoPratikJain,partner,PwC India, one of the ways to boost consumption is to rationalise the GST rates,which the GST council is currentlyworking on. In the April-December period, GST collections from domestic sourcesstoodat`12.37lakhcrore,up 10.1% year-on-year; imports contributed `3.96 lakh crore,up 6% on year. December recorded an 8.4% growth in collections from domestic sources, but merely 3.9% from imports. Meanwhile,refundsinDecember rose45.3%onyearto`22,490crore. As a result,net collections came in at `1.54lakhcrore,up3.3%onyear.For PACE OF GROWTH SLOWS ■ In the April- Gross GST collections (in ` trillion) December period, gross GST collections stood at `16.33 lakh crore, up 9.1% on year ■ The GST Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Council is likely to discuss rate rationalisation for about 150 items at its next meeting Carmakersend UPI transactions 2024with14% rise 8% to new spikeinDecsales record in Dec DRIVEN BY robust demand for SUVs,passengervehiclesales–dispatches from manufacturers to dealers–stoodat320,000unitsin December,a rise of 14% year-onyear, marking a strong end to 2024,reports RaghavAggarwal. Of the five leading automakers which reported their sales number, only Hyundai reported a decline of 1.3%. ■ PAGE 4 April-December,the net GST collections stood at `14.49 lakh crore, up 8.6% on year, and refunds at `1.89 lakhcrore,up 13.5%onyear. Saurabh Agarwal,tax partner,EY India said:“The government is providingmoreGSTrefundsforexports, ● MeitYto shortly start public consultations DIGITAL TRANSACTIONS have continued their upward trend with the number of UPI transactionsrising8%month-on-month tohitarecordvolumeof16.73billion in December,from 15.48 billioninNovember,accordingtolatest NPCI data, reports Sachin Kumar. The transaction value also surged 8% to `23.25 lakh crore. ■ PAGE 6 signifying an increase in the volume ofgoodsandserviceswearesellingto other countries.This suggests that Indiaisreducingitsrelianceonproductsmanufactured abroad.” Continued on Page 11 SLOW PROGRESS ■ The clearance marks a significant milestone, as the DPDPAct, passed over 16 months THE LONG-AWAITED IMPLEMENTATION oftheDigitalPersonalData Protection (DPDP) Act is one step closer to reality as inter-ministerial consultations on the draft rules concluded on Tuesday with the home ministry’s approval. The ministry of electronics and information technology (MeitY) is nowset to release the draft rules for public consultation, setting the stage fortheireventual notification and phased implementation. The clearance marks a significant milestone, as the DPDP Act, passed over 16 months ago, has remained inoperative pending finalisation of its rules. The delay has left key provisions – ensuring data privacy, enforcing data minimisation and purpose limitations, and imposing penalties for violations – unrealised. The final rules will address critical aspects of theAct,including user Subsidypackage forDAPfertiliser getsextension THE GOVERNMENTON Wednesday extendedanadditionalsubsidyondiammoniumphosphate(DAP)beyond December31,2024,aimedathelping maintain retail prices of this key fertiliserat`1,350/abagof50kg,reports SandipDas.Thiswillpushupthefertiliser subsidy by `3,850 crore in the current financial year. The MRP of DAP has remained at the same level sincetheCovidperiod. ■ PAGE 2 Crop insurance schemes now valid till FY26 THEUNIONCABINETonWednesday extended two crop insurance schemes—thePradhanMantriFasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop InsuranceScheme(RWBCIS)—byone more year till 2025-26 to align their implementation with the 15th Finance Commission period,reports SandipDas. ■ PAGE 2 2024was India’s warmest since 1901, says IMD THEYEAR2024wasthewarmeston record in India since 1901,with the averageminimumtemperaturesettling 0.90 degrees celsius above the long-period average (LPA), Mrutyunjay Mohapatra, director general, India Meteorological Department (IMD) said on Wednesday. Mohapatra said the rise in minimum temperatures in 2024 was ‘quite high’. ■ PAGE 2 ago, has remained inoperative pending finalisation of its rules ■ The final rules will address critical aspects of the Act, including user consent mechanisms, data handling procedures, and compliance timelines ■ The Act will empower consumers with greater control over their data ■ Entities found guilty of breaches could face penalties of up to `250 crore per incident ■ The rules will also have provisions, such as consent management for minors consentmechanisms,datahandling procedures, and compliance timelines.Accordingtoofficials,thetransitionperiodforcompaniestoadapt to the new regulatory framework is expected to range from 18 to 24 months. This is more or less in line withglobalpractices,whichallow12 to 30 months for similar overhauls. “Given the sensitivity of personal data,itwas essential to ensure all government departments and stakeholders were aligned with the draft rules,” said an official. Some ministries had earlier cited challenges in setting up mechanisms for seeking user consent and requested additional time to tran- sition to the new system. Private entities, too, have sought an adequate adjustment period to comply with the rules. Once implemented, the Act will empower consumers with greater control over their data. Companies handling user data will be required to disclose the information they possess, enabling users to request its deletion or specify usage preferences.Additionally, consumers will have the right to demand details on the purpose of data collection, permissible uses and the timeline for its deletion. Continued on Page 11 Re continues its slide to newlow; nudges towards 86 mark ANUPREKSHAJAIN Mumbai, January 1 ON A WEAK BASE THE RUPEE CONTINUED its slide on Wednesday, slipping to a new all-time low of 85.65 against the dollar, 4 paise or 0.05% weaker than Tuesday’s closing of 85.61. Intra-day, the Indian currency fell to 85.72 levels, recovering after the Reserve Bank of India stepped in, dealers told FE. The rupee has now depreciated by 244 paise or 2.93% since January 1, 2024, when it was trading at levels of 83.21 to the greenback. Most of the fall »INSIDE« has taken place since end-SepINDICES tember. BEGIN With most 2025 ON A POSITIVE markets around NOTE theworldshuton account of New PAGE 6 Year’s Day,global cues were negligible. Traders said volumes during the session were thin, leaving the price movements range bound. Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors observed the central bank intervened in the market to sell dollars at around 85.72 levels.Most corporates,however,were absent. The rupee which took nearly 14 months, from September 2023 through October 2024, to weaken from 83 to 84 per dollar, took only two months to breach the 85 mark. The Indian currency has, however, performed better than many of its peers such as the Chinese yuan, Malaysian ringgit and the Indone- Dec 31, 2024 (close) 85.61 Inverted scale HOUSING FINANCE COMPANIES are stepping into the new year under stricter regulatory oversight as new norms by the Reserve Bank of India (RBI) came into effect on January 1, reports Sachin Kumar. ■ PAGE 6 7.2 69.7 Private -15.3 1.77 HFCs step into 2025 with stricter regulatory oversight 1.1 TOTAL 1.6 1.82 E-COMMERCE PLATFORM SNAPDEAL has reduced its losses in FY24 by 43% to `160.4 crore from `282.2 crore a year ago. On an adjusted basis, Ebitda loss narrowed by 88% to `16 crore from `144 crore in FY23. ■ PAGE 5 45.5 -38.9 Govt Data protection rules get home ministry’s go-ahead JATIN GROVER New Delhi, January 1 % chg, y-o-y (` lakh crore) 1.87 Snapdeal cuts FY24 losses by 43% to `160 crore NEW PROJECT STARTS saw a disappointing 22.1%year-on-yearfall in the December 2024 quarter, reversing the trend in the Septemberquarterwhen theyhad recorded a smart 64 % y-o-y increase. Data from the Centre for Monitoring Indian Economy (CMIE) reveals that the total value of new projects announced in the December quarter was `6 lakh crore. This is much smaller than the `7.7 lakh crore worth of investments announced in the December 2023 quarter and the `7.2 lakh crore worth of projects announced in the September 2024 quarter. Announcements from both the private sector and the government slowed, belying expectations of a meaningfulpick-upincapex. While a host of companies are investing, especially in sectors such as renewableenergy,capitalgoods,thequantum of investments taking place was expected to be bigger. Worryingly,thevalue of projects completed by the government and the private sector, were down 57.1% and 40%y-o-yrespectively. The total projects completed in Q3FY25 1.73 ACCEL HAS RAISED $650 million (`5,500 crore) for its eighth India fund, according to the US Securities and Exchange Commission filings, reports Raghav Aggarwal. ■ PAGE 5 PRIYANSH VERMA New Delhi, January 1 Q2FY25 New projects announced 1.74 Accel raises $650 million for new India fund downmorethan50% REPORT CARD 1.82 ■ PAGE 2 ● Projectcompletion 1.74 THE PRICE OF ATF was reduced by 1.5% on Wednesday while the rate of commercial LPG was cut by `14.5 for a 19-kg cylinder in the monthly revision done in line with benchmark international prices, reports PTI. New projects unveiled down 22% in Q3: CMIE 1.73 ATF price cut 1.5%, commercial LPG `14.5 cheaper SLOWDOWNWITNESSEDINBOTHGOVT,PRIVATESECTORS 2.1 IN THE NEWS 0.05% `/$ Jan 01, 2025 (close) 202 85.65 ■ The rupee has now depreciated by 244 paise or 2.93% since January 1, 2024 ■ The Indian currency has, however, performed better than many of its peers such as the Chinese yuan, Malaysian ringgit sian rupiah. However,withthedollarexpected to remain strong as President –elect Donald Trump takes office later this month,therupeeremainsvulnerable to further depreciation. The dollar index could test 109.90 levels with 105.50actingasamajorsupport.The dollarindex,whichgaugesthegreenback'sstrengthagainstabasketofsix currencies,was at levels of 108.48. Both the dollar index (DXY) and the yields on US 10-year treasury bonds havebeenonanuptrend,onaccount of the Federal Reserve's cautious stance on interest rate cuts and the Trumppresidency.Thedollarhasput on approximately 7% since the US Fed’s Septemberrate cut. Cost-effective offerings by the two may force market leader to lower prices AMD,InteltargetAIinferencingtorivalNvidiamonopoly JATIN GROVER New Delhi, January 1 THE RACE FOR dominance in AI computing is intensifying as AMD and Intel have set their sights on AI inferencing,acriticalandfast-growing segment poised to disrupt Nvidia’s monopoly. With enterprises increasingly prioritising cost-effective and energy-efficientsolutions,thelandscapeofAIhardwareisundergoinga shift. Nvidia has long held a commanding lead in AI computing, fuelled by its cutting-edge graphic processing units (GPUs) that dominate AI training workloads. However,industryanalystssaytheemergenceofAIinferencing–theprocess of deploying trained AI models to CHALLENGERS RISE ■ ■ Inferencing represents the stage where businesses begin to see tangible returns on their AI investments ■ Nvidia GPUs remain the gold standard for AI training but they are up to five times $30.8 billion in the July-September quarter compared to AMD’s $3.5 billion ■ Intel, though still a minor player in the GPU market, is leveraging its CPU expertise to carve out a niche in inferencing costlier than MD and Intel alternatives make real-time predictions or decisions – could redefine the competitive dynamics in this market. AI inferencing represents the stage where businesses begin to see tangible returns on their AI investments and AMD and Intel are posi- Nvidia's data centre revenue reached tioning themselves to capitalise on this opportunity. While Nvidia GPUs remain the gold standard forAI training,their high cost – up to five times more than AMD and Intel alternatives – poses a challenge for enterprises looking to scale inferencing operations.“AI inferencing will become a larger market than training over time and both AMD and Intel are positioning their GPUs and CPUs to capitalise on this transition,” said Sunil Gupta, co-founder and ■ Gartner projects that by 2028, over 80% of workload accelerators in data centres will be dedicated to AI inferencing CEO of Yotta. The demand for power-efficient,cost-effective solutions is driving enterprises to consider AMD and Intel’s offerings. Both companies are expected to roll out dedicated chipsets optimised for infer- New Delhi encing tasks, increasing the pressure on Nvidia to lower its prices. Lisa T Su, president and CEO of AMD, highlighted the company’s confidence in its inferencing capabilities during a recent earnings call.“The $5 billionwe’re projecting for 2024 data centre GPU revenue reflects early traction primarily in inferencing,thanks to the MI300’s memory capacity and bandwidth optimisation,”Su said. Nvidia continues to dominateAI compute, with its data centre revenue reaching $30.8 billion in the July-September quarter, dwarfing AMD’s $3.5 billion. Yet, AMD and Intelseeinferencingastheirchance to challenge Nvidia’s supremacy. Continued on Page 5