BACK PAGE | PAGE 24 'Nuke sabre-rattling': India hits back at PakArmy chief Ola Electric’s staffcount falls as attrition rate rises KOLKATA, TUESDAY, AUGUST 12, 2025 VOL 34 NO. 240, 24 PAGES, `12 (NORTH EAST STATES `12 & ANDAMAN `20) INTERNATIONAL | PAGE 11 COMPANIES | PAGE 4 Nvidia,AMD to pay 15% of ChinaAI chip sales to US FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM 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 READ TO LEAD SENSEX: 80,604.06 ▲ 746.27 NIFTY: 24,585.05 ▲ 221.75 NIKKEI 225: 41,820.48 ▲ 761.33 HANG SENG: 24,906.81 ▲ 47.99 `/$: 87.66 ▲ 0.01 `/€: 102.05 < > 0.00 BRENT: $66.91 ▲ $0.32 GOLD: `99,669 ▼ `1,003 — AIR INDIAWILL SUSPEND flights between the national capital and Washington DC from September 1, mainly due to non-availability of multiple Boeing 787 Dreamliner planes as the legacy aircraft fleet is undergoing retrofit, reports PTI. ■ PAGE 5 Minimum account balance norms up to banks: RBI Guv RESERVE BANK OF India (RBI) Governor Sanjay Malhotra on Monday said banks are free to decide the minimum balance for savings accounts and that it does not fall under the regulatory domain of the RBI, reports PTI. ■ PAGE 6 Indian Hotels to buy 51% each in ANK Hotels, Pride TATA GROUP-LED Indian Hotels Company (IHCL) will acquire a stake of 51% each in ANK Hotels and Pride Hospitality for a total of `204 crore to add 135 midscale properties to its tall, reports Swaraj Baggonkar. ■ PAGE 5 The bank projects 12% loan growth during the period ■ INVESTOR, P9 Universal banking licence for AU SFB The approval marks a significant shift in its operational scope ■ EXPLAINER, P9 RISHI RAJ New Delhi, August 11 AFTER US PRESIDENT Donald Trump decided to slap a total tariff of 50% on Indian exports barring a few exceptions, the Prime Minister’s Office (PMO) hasswungintoactiontocontain thepossibledamages.Following a series of meetings chaired by Shaktikanta Das,principal secretary-2 to the Prime Minister, the PMO has directed the departmentofeconomicaffairs (DEA)inthefinanceministryto set up an inter-departmental committee to overhaul tax and export clearance processes for the manufacturingsector. Thepanelhasbeentaskedto examine bottlenecks in customs, duties and incentives, aiming to make Indian goods morecompetitiveinanincreasingly protectionist global market.It has been asked to submit its reportwithin two months. The panel will be headed by economic adviser (investment) intheDEA,withrepresentatives ■ Representatives of industry bodies like CII, Assocham, and FIEO to be special invitees ■ Principal secretary-2 to the PM Shaktikanta Das has chaired a series of meetings welcomed the move, but sought speedy decision-making of Economic Affairs (DEA) asked to set up inter-departmental panel BENCHMARK INDICES GAINED nearly 1% on Monday, in line with Asian peers, beginning the week on a strong note and almost fully recovering Friday’s losses on positive global cues. Indices rebounded aftersix consecutive weeks of decline, with the Sensex jumping 746.29 points, or 0.93%, to 80,604.08,andtheNiftyrising 221.75 points, or 0.91%, to 24,585.05, as news of peace talks between Russia and the US later this week boosted market sentiment. In Asia, apart from India, equity markets in Japan, Taiwan, Hong Kong, China, Malaysia,andIndonesiagained upto1.85%,whilethoseinthe Philippines, Singapore, and South Korea fell by up to 1.34%. US equity markets hit record highs on Friday, while Europeanindicesendedmixed. “Global market sentiment improved following reports of US-Russia peace talks likely to be held thisweek,while Indian investors cheered FII inflows of `1,933 crore on Friday,”said Siddhartha Khemka, head of research,wealthmanagement, NIKUNJ OHRI & ASHWIN MANIKANDAN New Delhi/Mumbai, Aug 11 ■ Panel to be headed by economic adviser (investment) in DEA »INSIDE« US TARIFFS TO COVER 55% OF INDIA EXPORTS: FINMIN P2 ZELENSKYY CALLS PM, SEEKS LIMITING RUSSIAN OIL BUY P11 from the departments for promotionofindustryandinternal trade (DPIIT), commerce and revenue, representative of DGFT, and Reserve Bank of India(foreignexchangedepartment).Director(FT),investment division,DEA,will be the member-secretaryof the panel. Continued on Page 7 30 more countries in focus under rejig plan AS PART OF its export diversification measures,the government isworking to expand the current list of 20 “focus markets”byadding 30 more countries, officials said Monday, reports Mukesh Jagota. The market expansion efforts that started earlier to de-risk exports will be expanded. Top 10 countries accounted for 50% of total Markets stage a comebackahead ofUS-Russiatalks KISHOR KADAM Mumbai, August 11 guarantees for small firms ■ Industry ■ Department exports when the focus country list was expanded to 20 countries. The addition of 30 countries will take the focus country initiative to cover 90% of India’s exports. The top 10 markets for Indian exports are the US, the UAE, the Netherlands, China, Bangladesh, Singapore, the UK, Saudi Arabia, Germany, and Indonesia. ■ PAGE 2 Continued on Page 7 Equity inflows (` cr) Chg (%, m-o-m) Jul Nifty 0.91 % ■ RELATED REPORT ON PAGE 6 24,585.1 Previous close: 24,363.3 Motilal Oswal Financial Services. Public sector banks saw strong buying interest after SBI posted better-thanexpected Q1 results,he added. Ajit Mishra,SVPof research at Religare Broking noted that in recent weeks, the Nifty has oftenstartedtheweekstrongly only for the momentum to fade by the close. Continued on Page 7 Rapido puts food delivery pilot on hold RAPIDO’S MUCH-ANTICIPATED entry into the food delivery market has been delayed beyond its originally planned July pilot launch in Bengaluru, with sources close to the development citing procedural hurdles that the bike-taxi company is still working to resolve, reports Anees Hussain. ■ PAGE 5 3 Sep 34,419 10 Oct 41, 41,887 21.7 35,943 35, 14.2 41,156 41, 14.5 Jan Previous close: 79,857.8 38,239 Dec EQUITY MUTUAL FUND (MF) schemes recorded their best month in July, garnering net inflows worth `42,702 crore, up 81% from `23,587-crore inflows seen in June, reports Ananya Grover. The surge was propelled by a sharp rise in inflows into thematic and sectoral schemes. 8.6 Nov 39,688 39, 3.6 Feb 29,303 29, 26.2 Mar 25,082 25, 14.4 Apr 24, 24,269 3.2 May 19,013 21.7 Jun 23,587 24.1 Jul 0.93 % 37,113 Aug CLOCKING GAINS Sensex THE GOVERNMENT IS planning to provide credit guarantees forloans overdue up to 90 days to small businesses and exporters, amid higher tariffs imposed by the US, two government sources told Reuters. The finance ministry has proposed to provide 10%15% credit guarantees to banks for advancing loans to stressed smallbusinesses,with turnoverup to `500 crore,that fall under the Reserve Bank of India's (RBI) so-called special mention accounts (SMA), the sources said. Loans that have not been repaid for 0-90 days fall under RBI'sSMA0-2category,butare not classified as non-performing assets. Equity MFinflows at record high « SBI targets 1% return on assets in FY26-28 submit report in two months IN ACTION MODE « FE S P EC I A L S ● Committee to 2024 AI to suspend Delhi-Washington flights from Sept 1 Saudi fund gets PMOmovestotackleTrumptariffs explicit waiver Centre plans 10-15% credit under tax Bill FINMINASKEDTO SETUPPANELTO IDENTIFYEXPORTBOTTLENECKS,REFORMTAXES 2025 IN THE NEWS 42,702 81.0 Record monthly inflows in July Positive montly flows for the 53 consecutive months Source: AMFI Tesla opens showroom in Delhi TESLAONMONDAYopenedits first NCR showroom at Delhi’s Aerocity,lessthanamonthafter launchingitsdebutretailoutlet in Mumbai and unveiling the Model Y, priced at `59.89 lakh (ex-showroom), which is currently the only vehicle on display, reports Nitin Kumar. It alsosaiditplanstostartdeliveries bySeptember. ■ PAGE 5 Ad spends of banks surge 160% in 5 yrs INDIAN BANKS SEEM to have ramped up their advertising & publicitystrategies,focusing on brand-building and customer acquisition, reports Mahesh Nayak. Over the past five years, 11 large-cap banks across the public as well as the private sectors witnessed a substantial surge in ad spends. ■ PAGE 6 ● Lok Sabha gives nod to newI-TBill FE BUREAU New Delhi, August 11 THE LOK SABHA on Monday approved the Income-Tax (No. 2) Bill, 2025, a modified version of anearlierBill,as part of its plans to streamline and simplify direct tax laws. While the proposed law does not include many policy proposals, it seeks to clarify that limited liability partnerships (LLPs) not claiming any deductions will not attract 18.5%alternateminimumtax (AMT) on long-term capital gains (LTCG). Saudi Arabia’s sovereign wealth fund PIF and its subsidiaries are specifically mentioned for tax exemption on dividends, interest, and LTCG on investments in infrastructure assets. It also included the recent government decision to extendtheincometaxbenefits available under the marketlinked national pension system (NPS) to the guaranteed unified pension scheme (UPS) in a bid to provide further impetus to the scheme. So, a maximum of 60% of the accumulatedUPS corpusfrom contributions during a person’s working years and lump sum payments is allowed to be withdrawn tax-free at the time KEY CHANGES ■ LLPs not claiming any deductions to not attract 18.5% alternate minimum tax on LTCG ■ Tax benefits under NPS extended to Unified Pension Scheme ■ Taxpayers allowed to claim refund even if return is filed beyond statutory timeline of retirement,among others. The 624-page Bill incorporates the recommendations made by the Lok Sabha Select CommitteeheadedbyBaijayant Panda as well as from other stakeholders.NILTCS on LiberalisedRemittanceScheme(LRS) remittances for education purposes financed by any financial institutions,whichwasinadvertentlymissed out has nowbeen incorporated to align with the recently introduced proviso to section 206C(1G) of the Income-taxAct,1961. Continued on Page 11 Adani Defence to acquire Indamer FE BUREAU Mumbai, August 11 ADANI DEFENCE SYSTEMS and Technologies (ADSTL), in partnership with Prime Aero Services,has signed a definitive agreement to acquire a 100% stake in Indamer Technics (ITPL),amaintenancerepairand overhaul (MRO) provider, according to a statement. Theinvestmentwillbemade through Horizon Aero Solutions,which is a 50-50 partnership betweenADSTLand Prime Aero,a company owned by PrajayPatel,thedirectorofIndamer Technics.The involved entities, however, did not disclose the acquisitionprice. Located at Nagpur in the MIHAN special economic zone, ITPLhassetupagreenfieldfacilityonthe30-acresite.Thefacility has the capacity to accommodate 15 aircraft bays across 10 hangars.ITPLis approved by DGCA,FAA(US)andotherglobal civil regulators.It offers a comprehensive suite of MRO ser- vices, including lease return checks, heavy C-checks, structuralrepairs&aircraftpainting. Jeet Adani, director, Adani Airports,said:“This acquisition is the next step in our push to establish India as a premier global MRO destination. Our goal is to create a single-point aviation servicesplatform.” “Following the addition of Air Works, this acquisition further strengthens our capabilities and footprint in the MRO segment and reinforces our position as the largest privatesector MRO player in the country,”saidAshishRajvanshi,CEO, Adani Defence &Aerospace. Push domestic demand,but don’t get into a groove: Experts THE SWADESHI FACTOR PART-I Trump’s punitive tariff on India has revived the ‘Swadeshi’ mantra.In a four-part series, FE examines whether the country can meet its growth targets even with far less external support PRASANTA SAHU, SAIKAT NEOGI & MUKESH JAGOTA New Delhi, August 11 CAN INDIA BECOME the third-largesteconomybyovercoming Germany sooner and then accomplish the Viksit Bharat goal by 2047, if the country’s traders take a pledge to sell only Swadeshi goods? Two alternative views have emerged on this question after PrimeMinisterNarendraModi recentlyreferredtothe“uncertainty the world is going through”, and called upon political parties, leaders and citizens “to promote indigenous goods”. While both sides agree that US President Donald Trump's “America first” policy has upended the rule-based world trade order and seriously set backprogressiveintegrationof TAKING STOCK $736 bn (19.1% of GDP) Import tariffs (%) Simple average Weighted average 100 External debt (March 2025) 80.9 2005 Forex reserves to external debt ratio Merchandise 13.4 7.5 16.2 12 56.4 1990 4.3 Services Settlement of trade 2016 2016 25 1.9 2 14.3% 50 2023 0.8 India received of global remittances in 2024 75 0 90.7% India's share in global trade (%) 2024 Source: GTRI analysis based on WITS and World Tariff Profiles data the global economy,the jury is out on how India should respond to the situation. The prominent view is that the country must seize the moment of apparent crisis 95% in dollar 4% in euro Only 1% of $5 bn trade with Russia settled in rupee settle and import payments 22 countries have agreedintorupee export Source: RBI, commerce ministry, World Bank caused bythe 50% US tariff on most of its goods,as an opportunity, and open up the economy faster, especially to nonUS markets--Asia and Europe in particular.A divergent posi- tion is that since free markets have always been a “myth”, India should not allow itself to be beguiled into it any further. “In the current volatile globalenvironment,Indiamay need to slow down a bit.But to recover sharply by depending on domestic growth drivers, the country would need second-generation economic reforms in regulatory, legal, institutional and factor markets,” Madras School of Economics director NR Bhanumurthy said. He noted that domestic consumption (both private and government) was 71% of GDP in 2024-25. “We may have to factor in some impact on growth in exports to the US as some of the competing countries have lower tariffs.As of now it does not look like that eitherexport of services or remittances would be affected as the tariff plan is primarily on goods,” Madan Sabnavis,chief economist at Bank of Baroda, said. Even though the Indian economy is “majorly domesticdemand-driven”, Sabnavis feels India needs to increase its global presence to accelerate growth. Over the last two-and-ahalf decades, India grew by an average of roughly 6.5%, but for it to meet the Viksit Bharat goal, average growth needs to be much higher (8-8.5%). “The domestic economy provides opportunities for both consumption (given the large population), and investment (outlays needed in infrastructure). Hence, policies must work on both the segments to bring about accelerated growth and development as both these channels generate jobs and income,”Sabnavis said.He addedthatthe governmentwould dowell to design a package for exporters in the current environment. “This can be through PLIs, tax breaks, credit guarantees, TLTROs, etc. so that the exporters are able to adjust to the new environment that has been presented by the tariff regime in the US.” Continued on Page 11 Kolkata