ECONOMY | PAGE 3 COMPANIES | PAGE 5 CCI seeks 9-year records from top cement makers INTERNATIONAL | PAGE 7 India will remain among fastest-growing, says FM HYDERABAD, SATURDAY, JULY 5, 2025 Google’sAI Overviews hit by EU antitrust complaint FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. NO. XXII 55, 20 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 SENSEX: 83,432.88 ▲ 193.41 NIFTY: 25,461.00 ▲ 55.70 NIKKEI 225: 39,810.88 ▲ 24.98 HANG SENG: 23,916.06 ▼ 153.88 `/$: 85.40 ▼ 0.07 `/€: 100.59 ▲ 0.04 BRENT: $68.33 ▼ $0.47 GOLD: `96,609 ▼ `324 IN THE NEWS GoM considers steps to curb GST evasion AHEAD OF THE upcoming GST Council meeting, the Group of Ministers (GoM) on GST Revenue Analysis, met on Friday to deliberate on sector-specific tax leakages and potential corrective measures to address GST evasion estimated at over `2 lakh crore. ■ PAGE 2 RBI’s VRRR auction receives robust market response RBI’S SECOND VARIABLE reverse rate repo (VRRR) auction on Friday received a strong response from the market, unlike the previous one, reports Christina Titus. Market participants bid `1.70 lakh crore at the auction, whereas RBI accepted `1,00,010 crore. ■ PAGE 6 Forex reserves top $700 bn, hit 9-month high INDIA'S FOREIGN EXCHANGE reserves topped $700 billion last week to hit a 9-month high, which, alongside the central bank's shrinking forward book, cements the rupee's defences at a time when US trade policy uncertainty looms, analysts said, reports Reuters. ■ PAGE 2 Tata Steel gets `1,903-crore demand notice TATA STEEL HAS received a penalty demand of `1,902.73 crore from the Odisha government for allegedly failing to meet its mineral dispatch obligations at the Sukinda chromite mine, the firm said in an exchange filing on Friday. ■ PAGE 5 FE S P EC I A L S Driving in rains on Kerala roads Munnar to Kodaikanal can be the loveliest, mistiest drive of your life ■ MOTOBAHN, P9 Loan for e-car comes at a lower cost The interest rates are 5-25 bps less than that for ICE cars ■ EXPLAINER, P9 INDIANTEAM BACK FROMWASHINGTON; NEGOTIATIONS CONTINUE No race against deadline: Goyal ● Minister says US deal only if both sides gain MUKESH JAGOTA New Delhi, July 4 "INDIA NEVER NEGOTIATES tradedealsondeadlines,”commerce and industry minister Piyush Goyal said on Friday in what's seen to convey a stern message to Washington that strong-arm tactics won't help in concluding the high-stakes bilateral trade deal between the two nations. “Tradeagreements arepossible only when both sides get benefits.Itshouldbeawin-win agreement,andnationalinterest should always be supreme,” the minister said here. Earlier in the day,a team of Indian negotiators led byadditional secretary Rajesh AgarwalreturnedfromWashington after seven days of intensive engagements with their US counterparts.Theintentwasto hammer out a mutually beneficial interim trade deal. Askedwhetherhewould be going to the US in near future, Goyal replied in negative. The US had earlier set a deadline formost of its trading partners to strike trade deals DRAGGING ON THE CENTRE ON Friday extended the income tax benefits available under the market-linked national pension system (NPS) to the new guaranteed unified pension scheme (UPS). The move is expected to give an impetus to the UPS, which hasn't gained much traction among government employees yet. “The government has decided that tax benefits as available under NPS shall apply to UPS as it is an option under NPS,” the finance ministry said. These provisions would ensure parity with the existing NPS structure and provide substantial tax relief and incentives to employees opting for the UPS. According to the current norms,tax-free withdrawal of a maximum of 60% of the NPS corpus accumulated during a person’s working years is allowed on retirement. The subscriber has to invest a minimum of 40% of the corpus in annuities for a regular pension, which is not engaged and expect to finalise early tranche of the BTA before July 9, said an official ■ If an interim deal is struck, the immediate gain for India would be exemption from the 26% reciprocal tariff set to be effective from July 9 ■ India is also ■ Differences reportedly remain on liberalisation of trade in agri and auto for US seeking to avoid extra duties on steel, aluminium, auto and auto parts Trump says 10-12 nations to start getting tariff letters US PRESIDENT DONALD Trump said his administration will probably start notifying trading partners on Friday (US time) of the new US tariff on their PIYUSH GOYAL, COMMERCE & INDUSTRY MINISTER Trade agreements are possible onlywhen both sides get benefits.It should be a win-win deal,and national interest should always be supreme involving tariff cuts during a 90-day pause from the socalled steep reciprocal tariffs announced earlier by it. In India’s case, the extra tariff proposed was 26%. Sources indicated that differences remain on the liberalisation of trade in agriculture andautomobilesfortheUS,for the proposed interim deal, UPS subscribers to get NPS-like tax benefits PRASANTA SAHU New Delhi, July 4 ■ Both sides remain exports effective August 1, while reiterating a preference for simplicity over complicated negotiations five days before his deadline for deals, reports Bloomberg. Trump told reporters that about “10 or 12” letters would go out, with additional letters coming “over the next few days.” “By the ninth they’ll be fully covered,” Trump added, referring to a July 9 deadline he initially set for countries to reach deals with the US to avoid higher import duties he has threatened. ■ PAGE 7 »INSIDE« MAY RETALIATE AGAINST US AUTO TARIFFS: INDIATO WTO PAGE 2 which is seen a prelude to a broader bilateral trade agreement (BTA). Though the minister's statement signalled India's discomfiturewiththeUSstand on some aspects of the trade deal, a potential announcementofthedealcouldstilltake place soon. Despite the differencesremainingwithregardto some key sectors, both sides will remain engaged and expect to finalise the early tranche of the BTA before July 9,a senior official said. Apart from exemption from reciprocal tariffs of 26%, India is also seeking to avoid extra duties on steel, aluminium, auto and auto parts. Whilebilateralnegotiationson these issues continue, India has reserved its right to retaliate against the additional sector-specific tariffs. Continued on Page 7 ● PM HONOURED INTRINIDAD &TOBAGO LIKELY RELIEF Sebi puts brakes on Jane Street ● Regulatorbans US trading firm; to impound `4,843 cr —the highest ever 60% withdrawal of of pension corpus can be withdrawn tax-free after 60 yrs of age of selfcontribution during service period Jul 23: NSE asked to examine if there was any market abuse involved IN A MAJOR blow to high-frequency traders in the futures and options market, the Securities and Exchange Board of India (Sebi) on Friday temporarily barred US-based market maker, Jane Street Group, over index manipulation. In its 105-page interim order, the markets regulator said it will impound `4,843 crore—the highest amount—for unlawful gains made by the company. To provide ‘balance of convenience’, Jane Street can continue to trade after depositing the amount in an escrow accountwithascheduledcommercial bank,it added. Oct 1: Sebi circular to curb overtrading in index options on expiry day Continued on Page 7 20 `50,000 special deduction can be claimed for additional contribution in old tax regime ■ All these benefits currently available under NPS guaranteed. Under the UPS too,tax waiver is available for withdrawal of up to 60% of the corpus on superannuation, but only with a proportionate reduction in the guaranteed pension. Continued on Page 15 Nov 13: NSE submits its report Feb 4, 2025: Sebi team notes group’s activities violated PFUTP norms Feb 6: NSE cautions Jane Street; group sends replies on Feb 6 & 21 May 15: Jane Street Group observed to continue to run very large cash positions in index options July 3: Sebi bars Jane Street, says it will impound `4,843 cr for unlawful gains Order may hit ‘Likely collusion tradingvolumes with other FPIs’ THE SEBI ORDER banning Jane Street is expected to hit trading volumes at exchanges and brokerages, reports Ananya Grover. Experts warned any second-order impact on other high-frequency traders could trigger panic, especially if it spills over into the cash market. The impact was also reflected in the share prices of brokerages and exchanges. TRADERS AND FUND managers have alleged that multiple large algorithmic trading firms — both foreign and domestic — colluded to manipulate Indian indices, causing steep losses for investors, reports Nesil Staney. Sources said at least two other large algo-trading firms may have been practising similar strategies. ■ PAGE 6 Renaultintalkswith JSWforIndiatie-up 25% pay contributed for % pension can be claimed as tax deduction under old regime & 14% in new regime Apr 2024: Sebi analyses reports of legal dispute over theft of Jane Street’s options strategy concerning India ANANYA GROVER & JOYDEEP GHOSH Mumbai, July 4 ■ PAGE 6 ■ Tax-free CASE FILES Prime Minister Narendra Modi is greeted by people dressed as characters from Indian mythology on his arrival at Piarco International Airport, in Port of Spain. The PM was conferred the highest civilian honour ofTrinidad and Tobago on Friday ReNewpromotersbumpupoffer RAGHAVENDRA KAMATH Mumbai, July 4 NASDAQ-LISTED RENEW Energy Global on Friday said its promoters—founder & CEO Sumant Sinha, Abu Dhabi’s Masdar, Canada Pension Plan Investment Board, and Abu Dhabi Investment Authority—who are looking to take the company private,have revised upwards their offer to the remaining shareholders. The consortium has revised its bid to $880 million or $8 per share from $700 million or $7.07 they offered in December last year. The revised bid values the company at around $3.2 billion or about `27,000 crore. The consortium has collective voting rights of 64% in ReNew. The bid to take the company private is a precursor to taking ReNew public in India, according to earlier reports. ReNew is the secondlargest renewable company in the country after Adani Green in terms of total installed capacity. It has an operational capacityof 11.2 GW. Continued on Page 15 Sumant Sinha,CEO, ReNew FE BUREAU Mumbai, July 4 FRENCH CARMAKER RENAULT is exploring a new partnership in India as part of a broader strategy to strengthen its presence in the country.According to sources quoted by Bloomberg, the company has initiated preliminary discussions with the JSW Group for a joint venture. JSW entered the automotive space in late 2023 after it bought equity from Chinese company SAIC in MG Motor India. The move comes on the heels of Renault’s decision to unwind its long-standing joint venture with Nissan Motor in India. Earlier this year, Renault signed a restructuring agreement to acquire Nissan’s 51% stake in their Chennai-based DRIVING NEWTIES ■ Renault has decided to unwind its JV with Nissan Motor in India ■ Carmaker expected to firm up its India roadmap once a new global CEO is appointed ■ JSW MG Motor India has expressed interest in expanding into new vehicle categories manufacturing unit, effectively ending their twodecade-long collaboration in the country. Continued on Page 7 Carmaker overtakes Mercedes-Benz riding on success ofJimny, Fronx Suzuki Japan’s top importerwith made-in-India cars TSUYOSHI INAJIMA July 4 SUZUKI MOTOR BEAT Mercedes-Benz Group to become Japan’stopcarimporterinJune, thankstotheJimnyNomadand another popular small SUV assembled in India. TheJapancarmakerbrought 4,780 vehicles into the nation last month,up a dramatic 230fold jump from a year earlier, overtaking Germany’s Mercedes-Benz, according to data from the Japan Automobile Importers Association on Friday.Suzukialsoclinchedthetop stop inApril. Although Honda Motor is also known as a long-time importer of its own cars into Japan, Suzuki’s feat is notable because it’s one of the smaller manufacturersintermsoftotal globaloutput,wellbehindmarket leaderToyota Motor. Automobile imports have become a hot topic again with US President Donald Trump deployingthethreatoftariffsto pressure Japan to import more cars made inAmerican. “Japanese consumers don’t particularly care whether vehicles are produced in Thailand, IndiaorJapaniftheywantaparticular car,” said Takeshi Miyao, an analyst at automotive consultancy Carnorama.He argues that General Motors, Ford Motor and other US carmakers aren’t able to gain traction in Japan because they don’t offer HIGH ROAD ■ It began importing ■ Suzuki Motor brought 4,780 vehicles into Japan in June, up a dramatic 230-fold jump from a year earlier ■ Feat is significant as it’s one of the smaller manufacturers in terms of total global output India-produced compact SUV, the Fronx, in October ■ Suzuki had also clinched the top stop in April, data show ■ It plans to ramp up production of the Jimny Nomad in India from July productssuchassmallerKeicars that appeal to local buyers. The Jimny Nomad, an extended five-door version of Suzuki’s popular Jimny model, has been a runaway success. Priced from ¥2.65 million ($18,300),thevehicle attracted about50,000pre-ordersbefore it went on sale in April, even thoughSuzukihadsetaninitial monthly sales target of 1,200 units.That forced the carmaker tohaltordersafterjustfourdays due to overwhelming demand. Suzukiplanstorampupproduction of the Jimny Nomad in IndiafromJuly,whichwillprobablyboostimportnumberseven more.Suzukialsobeganimporting another Indiaproduced compact SUV, the Fronx, in October.Suzuki has a long history of manufacturing and selling cars and motorcycles in India, where were labour and production costs are still low. Suzuki predicts that India’s car market will reach 20 million units in annual sales by 2047.It’stargetinga50%market share by Maruti Suzuki India,theJapaneseautomaker’s HYDERABAD subsidiary,by2030. Honda has also seen success with its India-produced compact SUV, the WR-V,which was introducedinMarchoflastyear atanaffordablestartingpriceof around ¥2.1 million. Honda’s imported registrations surged about 22-fold year-on-year to 45,107 vehicles last year. The carmaker was also the top importer into Japan during the first three months of 2025. For the first half, Honda ranked second in imports with approximately 22,000 vehicles, trailing MercedesBenz’s 25,016 units. Suzuki was third, while Nissan was in ninth place with its Thailandproduced Kicks crossover. —BLOOMBERG