BACK PAGE | PAGE 24 BRANDWAGON | PAGE 9 Jaishankar meets Xi, first since Galwan clash INTERNATIONAL | PAGE 10 Myntra driving next phase of content-led commerce CHENNAI/KOCHI, WEDNESDAY, JULY 16, 2025 China’seconomygrows inQ2despiteTrumptariffs FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XLVI 60, 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 SENSEX: 82,570.91 ▲ 317.45 NIFTY: 25,195.80 ▲ 113.50 NIKKEI 225: 39,678.02 ▲ 218.40 HANG SENG: 24,590.12 ▲ 386.80 `/$: 85.82 ▲ 0.18 `/€: 100.28 ▲ 0.25 BRENT: $68.99 ▼ $0.22 GOLD: `97,604 ▼ `357 IN THE NEWS DeeptechbreaksthroughasVCschasenextwaveofinnovation Tepid response to ● Startup funding RBI's `1-lakh-cr in sectordoubles to VRRR auction $324 mn in Jan-Apr THE THREE-DAY VARIABLE rate reverse repo (VRRR) auction, conducted by the Reserve Bank on Tuesday for an amount of `1 lakh crore, saw a tepid response, with bids coming in for `57,450 crore, reports Christina Titus. ■ PAGE 6 India, EU make progress in FTA, exchange offers NEGOTIATIONS ON THE free trade agreement between India and the European Union made substantial progress in the latest round that concluded last week with both sides exchanging their offers on goods and services trade, reports Mukesh Jagota. ■ PAGE 2 S SHANTHI Bengaluru, July 15 LONG SEEN AS niche and capital-intensive,deeptech is gaining traction from venture capital (VCs). The sector earlier faced limited funding and slow adoption,but that is now changing as issues like self-reliance in energy, defence modernisation, semiconductor self-sufficiency,and climate resilience have caught on. This shift is reflected in an uptick in funding activity. In the first four months of 2025, deeptech startups raised $324 million across 35 deals, more than double the $156 million raised across 21 deals during the same period last year, according to data from Venture Intelligence.According to investors, this momentum signals a maturing ecosystem where deeptech ventures are no longer seen as too early or too risky, but as potential engines of long-term value and innovation. “The increased interest by investors reflects a growing convictioninIndia’slong-term innovation potential,”said Bri- MOVING UP A GEAR ■ Deeptech ■ Bengaluru-based 3one4 Capital, Seafund, Bluehill VC, and Artha Venture Fund are leading the funding push ■ They have startups raised raised more than double of that across $156 million 35 deals in the same period this year across 21 deals in January-April 2024, Venture Intelligence data showed ■ This momentum signals that deeptech ventures are no longer seen as too early or too risky for funding jesh Damodaran, managing partner at Auxano Capital. “Deeptech ventures across AI/ML (artificial intelligence/machine learning), advanced materials, semicon- ductors, and spacetech are increasingly seen as commerciallyviableopportunitieswith strong IP (intellectual property) moats and revenue-generating businesses,”he added. ● Foreign banks may hold 26% in local lenders FE BUREAU New Delhi, July 15 SEASONAL FACTORS AGAIN weighed on India’s labour market in June as the unemployment rate remained unchanged at 5.6%, although the Labour Force Participation Rate (LFPR) declined to 54.2%, suggesting fewer people looked for jobs, reports Siddharth Upasani. ■ PAGE 3 Tesla opens shop in Bookings open for Mumbai; Delhi next twoVinFast EVs THE ELON MUSK-LED Tesla began its Indiajourneywiththeopeningofashowroom in Mumbai on Tuesday, reports Swaraj Baggonkar.Launching its global best-seller Model Y here,Tesla instantly addedweighttothepremiumEVsegment already filled with established German names and fast-growing Chinese contenders. It will open its second outlet in Delhi’sAerocitylaterthismonth.■ PAGE 4 13.27 7.3 2024 Jun 18.7 Apr Mar Jan Feb -3.71 Dec 0 15 0 Oct 10 -0.05 May 30 20 Growth (%, RHS) 30 Export Import Trade Deficit ($ bn, LHS) Nov 40 Sep ■ EXPLAINER, P9 IMPORTS FALL, EXPORTS FLAT Aug 2025 and October 2024. The pick-upinAprilwaslargelydue to the rush among the exportINDIA’S MERCHANDISE ing community to execute TRADE deficit fell to a four- orders, in order to beat the month low of $18.78 26%reciprocaltariffby billion in June, as sub- »INSIDE« the US. That extra dued oil imports impost has since been WORLD brought down overall TRADE UP put in abeyance,while a inward shipments by 5.3%: WTO 10% baseline tariff has 3.7% onyearto $53.92 taken effect,besides the PAGE 3 billion while exports earlier MFN (most were flat at $35.14 billion. favoured nation) rates in Exports have been either exports to the US. flat or negative in most of recent months, except April Continued on Page 7 Jul The ELI scheme nudges the organised sector to create more jobs KIA INDIA ON Tuesday launched the country’s first all-electric multi-purposevehicle(MPV),theCarensClavisEV. The launch is significant as it expands the reach of EV technology beyond hatchbacks and SUVs. With a seating capacity of seven, the vehicle caters to larger families and is available in four variants, starting at `17.99 lakh, reports Vikram Chaudhary. ■ PAGE 4 June trade deficit narrows to 4-month low MUKESH JAGOTA New Delhi, July 15 Making incentives work to create jobs Kia rolls out India’s first electric MPV VIETNAMESEELECTRICVEHICLEmanufacturer VinFast on Tuesday initiated pre-bookingsforitstwoelectricSUVs,the VF 6 and the VF 7, in the Indian market. The bookings can be done through the company’s official website, VinFastAuto.in, as well as at its showrooms, reports Nitin Kumar.These models are set to go on sale in August and customer deliveries to start soon after. ■ PAGE 4 Jun FE S P EC I A L Tesla’s 3,000-square-foot experience centre in Mumbai — its first outlet in the country opened on Tuesday — drew a steady stream of visitors since early morning despite heavy rains. Two variants of its Model Y SUV were on display AMIT CHAKRAVARTY May 22.1 STATE-RUN TELECOM OPERATOR MTNL has formally disclosed defaults in principal and interest payments to seven public sector banks, amounting to `8,584.93 crore, the company said, reports fe Bureau. ■ PAGE 7 Bengaluru-based 3one4 Capital is among the firms strengthening its deeptech focus.Known for early bets on ToneTag and Bugworks, the firm has continued to invest -15 -30 2025 A DAY AFTER India’s retail inflationfelltoamorethansixyear low of 2.1% in June, Reserve Bank of India Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) will consider cutting interest rates further if inflationfallsbelowitsprojectionor growth comes under pressure. In an interview to CNBCTV18 on Tuesday, Malhotra said,“We’re in a neutral stance, which means we can move in either direction depending on the outlook, not just the current data.”One cannot say inflation is more important than growth, it’s always the mix of both factors, he added. The RBI has already delivered two consecutive rate cuts,including a surprise 50 basis points cut in June. Many had expected the central bank to pause in Q1 RESULTS CORNER HDFC Life net profit up 14% HDFC LIFE INSURANCE on Tuesday reported a 14% yearon-year increase in standalone netprofitforthefirstquarterof FY26 at `546 crore, reports fe Bureau. Total premium rose 16% to`14,875crore. ■PAGE 6 HDB Financial profit falls 2% HDB FINANCIALNETprofitfor the quarterended June fell over 2%onyearto`568croredueto sharpriseinloanlossprovisions and lower disbursements, reports KshipraPetkar. ■ PAGE 6 Astronaut has inspired a billion dreams...another milestone towards India's own human spaceflight mission: PM ShuklareturnstoEarth;Gaganyaandreamtakesflight ANONNA DUTT New Delhi, July 15 ONLYTHE SECOND Indian to travel to space, and the first from the country to visit the International Space Station (ISS),Group Captain Shubhanshu Shukla returned to Earth on Tuesday, after a 20-day landmark space journey that prepares the ground forIndia’s own human spaceflight mission,Gaganyaan. Assisted by two people, and with a broad smile on his face, Shuklaemergedfromthespace capsule, getting his first feel of Earth in almost three weeks with a few tentative steps. Exactly 50 minutes earlier, the space capsule, named Grace, carryingShukla,PeggyWhitson fromtheUS,SlawoszUznanskiWisniewskiofPolandandTibor Kapu of Hungary,had splashed down in the Pacific Ocean, off the coast of California. After detaching from the ISS on Monday afternoon, the spacecrafttookabout20hours to reach Earth. On its way, it made another few rounds of Earth, giving the astronauts some more opportunities to view it from space. During their 18-day stay on the ISS, the astronauts completed 288 revolutions of the Earth. After the splashdown, whichhappenedatabout3pm India time (2.30 am Tuesday morning in California), the spacecraft was towed by ropes to a waiting ship, before being lifted by cranes and placed on the ship deck. There, one by one, the astronauts were helped out, as they felt the weight of their bodies for the Shubhanshu Shukla greets as he reaches Earth with other crew members of Axiom-4 mission aboard the Dragon spacecraft that splashed down off California, the US, on Tuesday PTI first time since theirjourneyto space on the Axiom-4 mission on June 25. Whitson was the first to come out, followed by Shukla, and the two others. Aftera health check,the astro- size of their upcoming fundraises. Seafund aims to make up to 20 investments by FY27 from its `250 crore Fund II. Chennai-based Bluehill VC is targeting five investments in IP-led deeptech startups by the end of FY26. Artha Venture Fund has outlined plans to participate in 18-20 investment rounds this year, with a focus on applied AI, spacetech, and semiconductors. Even academic institutions are stepping in.Most notably,IIT Madras is launching a `200-crore‘IITM Alumni Fund’ to back earlystage deeptech startups. Continued on Page 7 Rate cut door open, says RBI governor Tesla begins its India journey withY Joblessness steady in June, but fewer queries for jobs MTNL defaults on `8,585-crore loan payments ■ Deeptech appears to be entering a new phase, with rising capital infusion and growing institutional support in companies such as Exponent Energy, Agnit, Fermbox, and Scimplify. “Our belief in India’s deeptech ecosystem has continued to rise,” said Sonal Saldanha, vice president, investments, 3one4 Capital.“We continue to track strong tailwinds across manufacturing-driven themes like energy, semiconductors, materials innovation and industrial automation,” Saldanha told FE. Other early-stage firms including Speciale Invest, Ideaspring Capital, and Mela Ventures are actively raising new funds, while Java Capital and Bharat Innovation Fund are planning to increase the nauts were airlifted by a helicopter to the NASA Space Center in Houston,where theywill spend the next few days, resting and recovering, and briefingtheAxiomSpace,NASAand other teams on the journey, and the experiments that they carried out in space. Congratulating everyone involved in the mission, President Droupadi Murmu said in a post on X,“A hearty welcome to Group Captain Shubhanshu Shukla as he comes back on Earth after his space journey. His role in piloting of Axiom Mission 4 to the International Space Station has created a newmilestoneforIndia'sspace exploration aswell as forinternational collaboration in science and technology.” Prime Minister Narendra ModisaidShuklahadinspireda billion dreams.“As India’s first astronaut to have visited International Space Station, he has inspired a billion dreams throughhisdedication,courage and pioneering spirit. It marks another milestone towards our ownhumanspaceflightmission — Gaganyaan,” he said onX. “He has not just touched space,hehasliftedIndia’saspirations to new heights. His journey to the International Space Station and back is not justapersonalmilestone;itisa proudstrideforIndia'sgrowing spaceambitions,”defenceminister Rajnath Singh said on X. “Bharat today finds an enduring space in the world of Space,” said science minister Jitendra Singh,who is also the minister in charge of space. Continued on Page 7 its monetary policy meeting which begins on August 4. The central bank will continue to be data-dependent going forward, the governor said, adding that there is an expectation that inflation for the current year could underSANJAY MALHOTRA, RBI GOVERNOR We’reinaneutral stance,whichmeans wecanmoveineither directiondepending ontheoutlook,not justthecurrentdata shoot its 3.7% forecast. Malhotra said the RBI’s policy framework seeks to keep overnight borrowing costs aligned with the benchmark repurchase rate, currently at 5.5%. It seeks to do that by injecting or absorbing liquidity as needed. The resultant fall in lending rates by banks may spur consumption and investment. “There’s been a 24 basis points transmission on new loans and 16 basis points on outstanding loans in the three months till May 2025,” he said. The governor said that 6.5%growthisthelatestnumber, in line with RBI’s latest estimate.“There are mixed signals but aligned with our expectations. The monsoon is favourable, optimism in consumer surveys is high, trade deals are ongoing — we will continue to review our growth projections,”he added.Malhotra also said the central bank will examine if foreign banks can be allowed to own 26% in local banks“as a general matter of policy.” Continued on Page 7 Sumitomolinesup $1.1billionfor5% moreinYesBank BAIJU KALESH & HIDEKI SUZUKI July 15 SUMITOMO MITSUI FINANCIALGroup(SMFG)isconsidering making an additional $1.1 billion investment in Yes Bank, people familiarwith the matter said,followingapreviousinvestment made by Japan’s secondbiggest bank two months ago. SMFG is seeking to acquire about 5% more of Yes Bank shares from US investment fund Carlyle Group and other minorityshareholders,thepeople said,asking not to be identified because the deliberations are private.SMFG may also buy about $680 million in convertible bonds issued byYes Bank to help boost growth,they said. Thefreshinvestmentwould bring the total amount to $2.7 billion, giving SMFG a roughly 25% stake inYes Bank,the people said. Considerations are ongoing and no final decisions have been made,theysaid. Representatives for Sumitomo Mitsui Banking Corporation,the banking unit of SMFG, CarlyleandYesBankdeclinedto comment. Yes Bank shares extendedtheirgainstoasmuch as 3.3% in Mumbai trading on Tuesday, their biggest intraday jump in more than a month, beforeparingsomeofthem.The stockhasaddedroughly3%this year, giving the bank a market value of about $7.4 billion. SMFG in May agreed to acquirea20%stakeinYesBank for about $1.6 billion. For Japan’s second-biggest lender, Yes Bank represents an opportunitytoownasizeablestakein CHENNAI/KOCHI BOOSTER DOSE July 15 (close) Yes Bank 20.47 July 14 (close) 19.99 2.4 ■ SMFG in May agreed to acquire a 20% stake in Yes Bank for about $1.6 billion ■ The fresh investment would bring the total amount to $2.7 billion ■ Yes Bank stock has added roughly 3% this year, giving it a market value of about $7.4 billion alargeIndianfirm.YesBankhas made a steady turnaround following a rescue by the central bankin2020whenitwasinundated with bad loans, and SBI had to inject new capital with otherparties.SumitomoMitsui and its Japanese peers have been sealing deals in India. It spent $700 million in March last year to take full control of the local company formerly knownasFullertonIndiaCredit after first buying a $2 billion stake in 2021. —BLOOMBERG