BIG IDEA | PAGE 22 ECONOMY | PAGE 02 Rapido: Underdogs turn the tide INTERNATIONAL | PAGE 05 Export-import policy must protect farmers' interests AHMEDABAD, MONDAY, JUNE 9, 2025 Trump warns Musk not to back Democrats FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XX-07, 24 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 India not keen to dent Turkey trade ties with curbs AMID MOVES TO curb the role of Turkish companies in critical infrastructure, there is palpably less appetite within the government to extend this approach to the bilateral trade basket despite calls from industry to ban the imports, reports Ravi Dutta Mishra. ■ PAGE 2 Took 18 yrs to go deep and wide: Idea Forge CEO ANKIT MEHTA, CEO and cofounder of ideaForge, speaks to S Shanthi about scaling innovation, geographical expansion, and why building resilience in drone tech. ■ PAGE 4 Short-duration debt funds turn attractive THE RBI’S DECISION to slash the repo rate and CRR is likely to boost returns from short-to-mid-duration debt funds, reports Ananya Grover. ■ PAGE 6 FE SPECIAL Making a living on the App Store From small towns to global charts, Indian app developers are making their mark—thanks to Apple’s support and reach ■ eFE, P10 6.6 4.2 All India 7.6 4.4 Urban 5.8 4 All India Rural areas, and large, listed players have seen a growth of just 2.1% in urban areas in FY25. “This is not happening in a vacuum,”Kantarsays.“Thelisted manufacturers,whose brands are often highly penetrated, have developed a strong rural strategy, consumer loyalty and distributionnetwork.Therefore, the rural shopper,who is generally becoming more aspirational, is gravitating towards these brands.This accentuates Rural during tough times.” At an all-India level, FMCG growth stood at 4.2% in FY25, down from 6.6% in FY24, according to Kantar. Continued on Page 5 Bajaj plans cheaper 125cc bike SWARAJ BAGGONKAR Mumbai, June 8 AFTER LOSING MARKETshare in the commuter motorcycle segment last year, Bajaj Auto aims to regain momentum with the launch of a cheaper entry-level 125cc bike in the coming months.The launch of the model,which is expected to costlessthanthecurrententrylevel price of `85,178 (exshowroom), comes at a time when buyers are shifting away from the budget 100cc bike segmentinfavourofmorepow- RAKESH SHARMA, EXECUTIVE DIRECTOR, BAJAJ AUTO Fromanestimatedmarketshareof 21%inFY23,wewentupto26%in FY24andhaveclosedat24%in FY25inthe125cc+segment erful yet fuel-efficient motorcycles, such as those in the 125cc category. The cheapest bike in the segment is the Hero Super Splendor priced at `80,848. Bajaj has two other Pulsars in the 125cc category priced at `99,000 and `1.06 lakh. “The 125cc+ segment is ourcore focus area inwhichwe continue to hold a solid num- RBI’s repo rate cut prompts banks to lowerlending rates FE BUREAU Mumbai, June 8 PUBLIC SECTOR LENDERS — Punjab National Bank,Bank of Baroda,BankofIndia,andUCO Bank — and private lender HDFC Bank have cut lending rates following the Reserve Bank of India’s decision to reducethereporateby50basis points (bps) to 5.5%. Bank of Baroda and Punjab National Bank have reduced the repo-based lending rate by 50 bps to 8.15% and 8.35%, respectively. HDFC Bank has cut its marginal cost of funds-based lending rates (MCLR) by 10 bps across tenures. The move will benefit bor- CHEAPER LOANS ■ Bank of Baroda has reduced the HDFC Bank has cut MCLR by 10 bps across tenures 8.15% ■ repo-based lending rate by 50 bps to ■ Punjab National Bank has cut lending rate to 8.35% rowers whose loans are linked to this benchmark. The new rates of PNB will comeintoeffectfromMonday. BankofIndiahasrevisedits repo-based lending rate to 8.35% from 8.85%. UCO Bank has cut its MCLR by 10 bps, which will be effective Tuesday. The rates are in ■ Bank of India has revised its repobased lending rate to 8.35% from 8.85% the range of 8.15%-9.00%. The bank has reduced its overnight MCLR from 8.25% to 8.15%, one-month MCLR from 8.45% to 8.35% and the three-month MCLR from 8.60%to8.5%.Thesix-month and one-year MCLRs have been reduced to 8.8% and 9%, respectively. Ratecutsettodrivecredit-backed durablesalespast50%thisyear THE RESERVE BANKofIndia’s higher-than-expected rate cuts on Friday may push durable sales, backed by easy financing schemes, to over 50% from the current 47-48% in the ongoing financial year as electronic firms, non-banking finance companies (NBFCs) and retailers look to capitalise on the incentive provided by the central bank. Conversationswithmultiple retailers and consumer durable companiesindicateanexpected interest rate cut of about 25-30 basis points on consumer durable loans in the coming months, following the central bank’s 50-basis-point repo rate cut last week. Industry executivessaidthatcumulatively,the RBIhasreducedthereporateby 100basispointsinthreerounds sinceFebruarythisyear,fueling these expectations. Moreover, the interest rate cuts on durable loans are likely tobetimedjustaheadofthefestive Independence Day period Urban Source: Kantar Retailers, consumer goods firms anticipate 25-30 basis point loan rate cut VIVEAT SUSAN PINTO Mumbai, June 8 5.1 FY25 4 (figures in %) FY24 Unbranded Listed Players Rest of the market 2.3 FMCG: Urban v/s Rural growth FMCG: Growth by manufacturer type (%) 3.8 URBAN AND RURAL areas are showing contrasting trends within the `5-lakh-crore domestic fast-moving consumer goods (FMCG) market. While small and local brands have driven growth in urban areas in FY25, big players are getting bigger in rural areas. Data from research firm Kantar shows that small, local brands have seen an 8.4% growth in urban areas in the period under review, while large,listed brands have grown by 5.1% in rural areas. Meanwhile, small brands have grown by just 2.3% in rural CONTRASTING TREND RATE RELIEF ■ Firms expect an interest rate cut of about 25-30 bps on consumer durable loans in the coming months A cut in interest rates on durable loans will further reduce the acquisition cost of these products ■ in August. September will see regionalfestivalssuchasOnam andGaneshChaturthi,followed by major events like Navratri, Durga Puja, Dussehra, and Diwali in October-November. These festivals are crucial for durable goods companies, accounting for over 50% of theirannual sales. “The premium end of the durablemarkethasbeengrowing faster than the mass end for some time now. Finance Share of sales from schemes such as nocost EMIs, longer-tenure loans, etc has more than tripled over six years, up from 15% in 2019 ■ Interest rates on consumer durable loans currently average around 11-12% per annum, say experts ■ schemes have been a significant contributorto driving the affordability of premium products.This trendwill get an impetus with the rate cut announced bythe RBI,”Avneet Singh Marwah, CEO, Super Plastronics, a consumer durables manufacturing firm based in Noida, which has licenses for brands such as Thomson, Kodak and Blaupunkt in India,said. Experts say that while piecemeal payments have driven high-value purchases in India for long, be it homes or cars, the trend is catching up with smaller purchases too, as consumers look to upgrade their products or seek instant gratificationwithnewgadgets. In recent years, consumer durable companies,electronics retailers and NBFCs have aggressively promoted credit schemessuchasno-costorlowcost EMIs,longer-tenure loans, zero-down payment options, and cashbacks.As a result, the share of sales from these schemes has more than tripled over six years,rising from 15% in 2019,according to experts. A cut in interest rates on durable loans will further reduce the acquisition cost of theseproducts,especiallyinthe premium segment, at a time when urban demand trends have been mixed.While interest rates on consumer durable loans vary by product, experts say they currently average around 11-12% per annum. Alate bloomer,India has to sprint ahead ARUNIMA BHARADWAJ & NITIN KUMAR New Delhi, June 8 8.4 VIVEAT SUSAN PINTO Mumbai, June 8 2.1 BILLATKINSON, THE Apple Computer designer who created the software that made machines accessible to millions of users without specialised skills, died on Thursday night at his home in California, reports NYT. He was 74. ■ PAGE 22 Rural goes up the value chain, urban cuts back 6.1 Bill Atkinson, who made computers easier, dies at 74 SMALLBRANDS RISE IN URBAN INDIA,BIG GETS BIGGERIN BHARAT 3.6 3.9 IN THE NEWS ber 2 position. Estimating market share basis Vahan registrations, we have noticed erosion during the year,” Rakesh Sharma, executive director, Bajaj Auto said in a post-earnings call. “Fromanestimatedmarket share of 21% in FY23,wewent up to 26% in FY24 and have closed at 24% in FY25 in the 125cc+segment.Ourcountermeasures to reverse this are already in place from April onwards,”Sharma added. Continued on Page 11 CHINA'S EXPORT RESTRICTIONS on rare earth magnets have had a sudden impact on India’s burgeoning electronics manufacturing,as the country doesn’t manufacture them. Assorted critical minerals andrareearthelementsarethe cornerstones of the high-tech manufacturing sector that India is focusing on to accelerate growth and create jobs. These minerals serve as the building blocks forpowerwindows, electric vehicle (EV) batteries, renewable energy storage systems, semiconductor manufacturing, defence production,and much more. That is why globally, critical minerals are the most soughtafter resources now and are even defining geopolitics. In fact, China’s move in April to tighten export restrictions on a host of rare earth elements has hit supply chains across many SOUGHT-AFTER RESOURCES Annual domestic production Import Lithium 0 1,629,366 Graphite 168,341 156,669 Nickel 0 131,433 Rare earth elements 6,500 2,270 Niobium 0 325 Cobalt 0 893 Source: Ministry of Mines In tonnes, for FY24 RARE EARTHS SHORTAGEP PA RT- I Thefirstofatwo-partseries examineswhyIndia’s criticalmineralsstrategy isn’tyieldingswiftresults parts of the world, and the US, seemingly a prime target, is seriously impacted. For India, theChinaepisode,however,has also exposed how under-preparedthecountryisinensuring the supplies of these resources. Of course, India started an auction for critical mineral blocks in November 2023,and five rounds have already taken place. The National Critical Mineral Mission (NCMM) was launched in January this year with a public-sector outlay of `34,300croreoversevenyears. Continued on Page 5 Adanisalaryup ‘IPO rush can 12%inFY25 hurt return’ MSME credit cover by Sept ADANI GROUP CHAIRMAN Gautam Adani earned `10.41 crore in remuneration from group companies in FY25, marking a 12% increase from the previous financial year, latest reports of the group’s listed companies showed. CENTRE TO DRAFT new MSME export credit scheme in a month, offering collateral-free loans up to `20 crore. It may guarantee 95% for micro, small firms and 75% for medium ones. Guarantee fee likely around 1.5%. ■ PAGE 4 IN AN INTERVIEW with FE, R Janakiraman, chief investment officer – emerging markets equity — India, Franklin Templeton, tells said a large supply of IPOs and geopolitical tensions are some of the risks. ■ PAGE 6 ■ PAGE 2 India's first international university campus at Gujarat International Finance Tec-City International education, closer than you think Master of Business Analytics International tional accreditations itations Deakin University is ranked in the Top 200 universities worldwide# Fortune 100 Industry Network 25% Merit Scholarship OR 20% Accelerator Bursary* APPLY NOW FOR JULY 2025 INTAKE gcadmissions@deakin.edu.au | +91-89290 92840 SCAN TO CHECK YOUR ELIGIBILITY FOR SCHOLARSHIPS #2025 QS World University Rankings | * Terms and conditions apply Continued on Page 5 Ahmedabad