NEWS POINT | PAGE 4 ECONOMY | PAGE 2 US tariff impact to ease out in 1-2 quarters: CEA INTERNATIONAL | PAGE 21 Perplexity's Chrome bid a big deal but a bigger risk HYDERABAD, THURSDAY, AUGUST 14, 2025 India a ‘bit recalcitrant’ on trade talks, says Bessent FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. NO. XXII 89, 60 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 A TA , 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: 80,539.94 ▲ 304.35 NIFTY: 24,619.35 ▲ 131.95 NIKKEI 225: 43,274.67 ▲ 556.50 HANG SENG: 25,613.67 ▲ 643.99 `/$: 87.49 ▲ 0.21 `/€: 102.59 ▼ 0.78 BRENT: $66.06 ▼ $0.06 GOLD: `99,722 ▲ `351 IN THE NEWS Tata Sons AGM today; vote on Noel Tata, 3 others TATA SONS will hold its 107th AGM on Thursday, where shareholders will vote on key board changes and other matters, reports fe Bureau. A major item on the agenda is the appointment of Noel Tata as a non-executive director. A proposal on reappointment ofVenu Srinivasan & Saurabh Aggarwal as directors will also be taken up. Shareholders will also vote on a proposal to appoint Anita George, co-founder and CEO of emerging-markets growth fund Prosperete— as an independent director. RBI to conduct `2-lakh-cr VRRR auction today RBI WILL CONDUCT an eight-day variable rate reverse repo auction on Thursday, amounting to `2 lakh crore, it said in a release on Wednesday, reports fe Bureau. Pre-IPO investors gain from exiting new-age tech cos PRE-IPO investors achieved optimal risk-adjusted returns by exiting during the lock-in expiry window rather than maintaining long-term positions, data by Client Associates showed, reports Ananya Grover. ■ P7 FE S P EC I A L S Karnataka bets on tech clusters Beyond Bengaluru, the state is positioning tier-2 cities as next-gen tech & R&D hubs ■ EFE P9 Towards a peace pact or a selfserving exercise? The impact of the Alaska meet will be felt beyond Russia & Ukraine ■ EXPLAINER, P9 SOLAR STOCKS DROPUPTO 5% US starts probe against Indian solar imports RAGHAVENDRA KAMATH, ARUNIMA BHARADWAJ & KISHOR KADAM Mumbai/New Delhi, Aug 13 UNDER SCANNER THE US DEPARTMENT of Commerce has initiated an investigation into imports of solarphotovoltaic(PV)cellsand modules from India.The probe willassessiftheseitems,which were imported by the US in 2024,were sold at unfairlylow prices or received unfair government subsidies. Shares of major renewable firms such as Waaree Energies andPremierEnergies,whichare among the major exporters to the US, took a beating on Wednesday, falling up to 5% afterreports of the US probe. The investigation has been startedonapetitionfiledbythe Alliance for American Solar Manufacturing and Trade on solar modules in 2024, of which India exported around 8% ■ Probe comes on a plea by Alliance for American Solar Manufacturing and Trade ■ US imported 54 GW ■ Similar probes have been launched against Indonesia and Laos imports ■ Brokerages see the investigation hitting solar firms WAAREE ENERGIES 3,084 Aug 12 2,942 Aug 13 4.61% July 17. Similar probes have also been launched against Indonesia and Laos. In calendar year 2024, the US imported 54 GW worth of solar modules, of which India exported 4.4 GW, constituting around 8% of the total vol- PREMIER ENERGIES 1,015 Aug 12 ■ Companies say there will be no major impact 998 Aug 13 1.63% umes,KotakInstitutionalEquities said in a recent report. Brokerages such as Kotak have said the probe could hit solar exports to the US. “Any acceleration in short-term demand due to the impact of BigBeautifulBill(taxcreditsfor IPPs if renewable projects are completed by 2027 or start construction by July 4, 2026, and enter service by 2030) couldgetimpactedduetothese investigations,”it said. Continued on Page 7 ICICI cutsminimumbalanceto`15K FE BUREAU Mumbai, August 13 IN A SIGNIFICANT policy reversal, ICICI Bank has withdrawn an earlier mandate that required urban customers to maintain a minimum average balance (MAB) of `50,000 in newly opened accounts to `15,000. The new balance requirement was brought into effect from August 1. The bank has also brought down the semiurban and rural customer's MAB to `7,500 and `2,500, respectively. It has also said ICICI Bank had earlier mandated a minimum balance of `50,000 for new accounts, a move that received backlash that for pensioners and students, the MAB remains nil. While sources had said that the bank’s decision to increase the MAB by as much as five times was an attempt to discourage new customers who keep smaller amounts in the bank and raise the bar to become their India nowleast-favoured Asian stock market: BofA ANANYA GROVER Mumbai, August 13 US PRESIDENT DONALD TRUMP'S announcement of 50%tariffsonIndiangoodshas turned investor sentiment sharply against the domestic stockmarket.AccordingtoBofA Securities’latestAsiaFundManager Survey, India is now the least-favoured market. It was the most-preferred just three months ago in May. A total of 99 panellists with $183billionofassetsresponded to the survey’s regional questionsandanet30%ofthemare underweightIndia.Lastmonth, itwas in thefourth spot. InMay,whenIndiadisplaced Japanasthemostfavouredmarket,there was a perception that India will remain largely unscathed because of the ongoing bilateral trade negotiations HOW THEY STACK UP 30% 43% 23% 20% of those panellists surveyed overweight on by BofA Japan, making it said they the most are preferred underweight on India betweenIndiaandtheUS. The survey noted that the panellistfavouringChina,which has moved to the second place after Japan from third-last in July,hasgrownattheexpenseof India.Anetof23%panellistare nowoverweightonthenationas its growth outlook is at a fivemonth high and households to allocateincrementallytospend- overweight on are China, which took underweight the second spot for Thailand, while 10% for Malaysia ing & investment, it said. In China, AI/semis and buybacks/dividendsarethepopular plays,whilerealestateandgreen energy fail to gain traction, it said, while in India, panellist have increased preference towardsinfrastructureandconsumptionplays. Continued on Page 7 primary account, there was a widespread backlash from customers and social media. Bankers such as Jay Kotak, co-head of Kotak811 took to X and publicly criticised the bank’s decision. “Every Indian must access our financial sector. 90% of India makes less than `25,000 a month. A `50,000 minimum balance implies a sum equal to around 94% of Indians’ monthly income is to be left with the bank at all times, else a fee!” stated Jay Kotak in his tweet. Continued on Page 7 G-sec yields hit four-month high of6.51% THE YIELD ON the 10-year GSec benchmark hit 6.51% —a four-month high—on Wednesday due to heavy sell-off,afterwhichitretreated marginally, reports Christina Titus. It finally closed at 6.48%against6.49%inprevious session. ■ P6 Fractal, India’s 1stAI unicorn, files for IPO FRACTAL ANALYTICS, A provider of enterprise artificial intelligence (AI) solutions, has filed draft papers for an initial public offering worth up to `4,900 crore, reports fe Bureau. The listing, if successful, would see an Indian AI-focused company making debut on the bourses. ■ P7 Infosys to acquire 75% in Telstra unit for`1,300 cr Versent offers cloud services to Australian firms ● DEAL DONE CEO, TELSTRA to retain the remaining FE BUREAU New Delhi, August 13 ITMAJORINFOSYSonWednesday said it will acquire a 75% stakeinVersentGroup,awholly owned subsidiary of Australia's TelstraGroup,inadealvaluedat $233.25 million (over `1,300 crore) to form a joint venture aimed at accelerating artificial intelligence-led cloud and digital transformation for Australian enterprises. Though Telstra will retain the remaining 25%, Infosys will have operational control over the Melbourne-headquartered firm.The deal value includes upfront and deferred consideration,excluding management incentives and retention bonuses. The new entity will combine Telstra’s connectivity, Versent’s local digital engineering capabilities and Infosys’ global scale in AI and cloud. It will leverage Infosys’ AI platform Topaz, cloud servicessuiteCobalt,andcybersecurity capabilities from The Missing Link to deliverend-toend transformation for large enterprises and government VICKI BRADY ■ Telstra Group 25% stake in Versent ■ JV aimed at accelerating AI-led cloud & digital transformation for Australian enterprises ■ Infosys and Telstra have an ongoing tech partnership SALIL PAREKH CEO, INFOSYS agencies in Australia. Versent Group was formed through the integration of Versent,Epicon,Telstra Purple Digital, and associated cloud products.With 650 engineers, strategists and advisors, the company serves bluechip clients in government and education, financial services, energyand utilities.In FY25,it reported revenues of 211.4 millionAustraliandollars(over `1,800 crore). “This collaboration reflects Thiscollaboration reflectsour confidence inthe value wecan unlock together ...Anewopportunity tofurtheraccelerate theinnovation agendafortheregion our confidence in the value we can unlock together,” Telstra CEO Vicki Brady said. “Their global scale, deep industry knowledge, and culture of innovation and service excellence will be instrumental in accelerating Versent Group’s growth and impact across the region,”she added. Infosys and Telstra have an ongoing technology partnership. Continued on Page 7 AirIndiaintalksto makeNaviMumbai airportaglobalhub Sebibans Wadhawans, 4othersin DHFLcase SWARAJ BAGGONKAR Mumbai, August 13 PRESS TRUST OF INDIA New Delhi, August 13 AIR INDIAIS INtalkswithAdani Airportstomaketheupcoming Navi Mumbai airport a hub for its international operations as it looks to significantly step up its global presence. The Navi Mumbai airport, which is controlled by Adani AirportsHoldings(AAHL),tobe India’s second-largest airport operator (in terms of passengers serviced), is expected to commencecommercial operations from mid-November. Both domestic and international flights will start from the opening day. “Terminal 2 at the Navi Mumbai airport will be designed and built for hub operationsfromDay1.AAHLis workingwithAirIndiafortheir design input and to help them make it a hub fortheirinternational operations,” said an industry source. Astheexistinginfrastructure at the Chhatrapati Shivaji Maharaj International Airport (CSMIA)isstretchedtoitslimits with regards to passenger handling capacity,there is no room formakinganydesignandstructuralchangesattheairport. “Navi Mumbai airport will FLIGHT PLAN ■ The Navi Mumbai airport, eventually become the international hub. It is a modern airport compared to CSMIA. There cannot be too many changes at terminal 2 at CSMIA. So, eventually you will have international operations becoming more dominant at the Navi Mumbai airport,”said the source. THE SECURITIES AND Exchange Board of India (Sebi) has banned Dewan Housing Finance’s (DHFL) formerchairman & managing director Kapil Wadhawan, ex-director Dheeraj Wadhawan, and four others from the securities markets for up to five years. The markets regulator also imposed a penalty totalling `120 crore on them for diverting funds and fabricating books. Additionally, Wadhawans and the others have been restrained from holding any key position in a listed company for up to five years. Apart from Kapil and Dheeraj, restraints have been imposed on Rakesh Wadhawan, who was non-executive chairman, Sarang Wadhawan, a former non-executive director, Harshil Mehta, who was joint MD & CEO, and Santosh Sharma, a former CFO. Wadhawans were the promoters of the housing finance company. Continued on Page 7 Continued on Page 7 controlled by Adani Airports, is expected to start commercial ops from mid-November ■ Both domestic & international flights will start from the opening day ■ Existing infra at Chhatrapati Shivaji airport said to be stretched to limits Exportersscurrytofallbackonlocalmarket,butquestionmarksremain THE SWADESHI FACTOR PART-III NARAYANAN V, KRISHNA BAROT & SANDIP DAS Chennai/Ahmedabad/ New Delhi, August 13 SHOULD INDIA'S LABOURINTENSIVE industries worry much about Trump tariffs or any more such external shocks, when the domestic markets for their goods are growing exponentially? This question was implicit in Prime Minister Narendra Modi’s exhortation to the industry and consumers to go“Swadeshi”. Sample this: domestic gems and jewellery consumption is valued at $85 billion at present; in just the next two years, this market is expected to leapfrog to $130 billion, with a stupendous annual growth of 24%. From $106 billion in FY25, India's consumption of assorted textiles items and apparel grewto $147 billion in FY25 (CAGR 7%). In contrast, the exports grew at just 2% CAGR during the period to $37 billion, with a quarter of the goods shipped to the US. Similarly, India’s food processing industry is already the sixth-largest in the world and is currentlyvalued at $389 billion. This sector grew at an average of 3.9% a year in the last decade,thanks to massive capital investments and spe- DOMESTIC COMFORT $86 bn India's current market for gems & jewellery $130 bn $106 bn & Size of India's textiles $147 bn Industry size clothing industry in FY20 in FY25 Exports of textiles and apparel: Annual growth Agri & processed foods exports: Likely market size in two years cial support from the government,given its close linkage to agriculture and farmer incomes. Exports from the sector have been beating the odds but still pale in comparison to the large domestic market,with onward shipments of $52 bn (FY25) $51.9 billion in 2024-25. “The domestic opportunity is immense,”said Kewal Chand Jain, director at KKCL, a branded apparel player. Jain said the company’s exclusive focus on its own brands and domestic business keeps it largely insulated from tariffrelated disruptions. However, the story is also a bit complicated because units that have traditionally been export-oriented have product mixes and business strategies that could make it ratherdiffi- CAGR CAGR (FY20FY25) $37 bn (FY25) Food processing industry turnover: $389-bn 24% 7% 2% ~3.9% Annual growth in last decade cult for them to change tack. Siddhartha Rajagopal, executive director at Texprocil,said, “In the short run,at least until things settle down,the industry should look at alternative markets,including the domestic one,” Rajagopal added. The short-term strategy of exporters, according to him, maybe to see if the alternative export markets and local demand could absorb the surplus ahead of the upcoming festive season.” Industry sources also cited examples of prominent apparel and textile brands such as Arvind Mills,Welspun and Indo Count, which maintain some export presence,but focus mostly on the domestic demand.While exports in certain categories can yield higher unit realisations, domestic sales offer distinct advantages, according to Paresh Dattani,chairman and managing director at Sanathan Textiles, which has manufacturing units at multiple locations in the country. “Lower logistics costs, HYDERABAD shorter payment cycles and reduced exposure to currency fluctuations are key benefits (from focusing on the domestic market), he said. Recognising the stronger margins at home, Sanathan, which manufactures both cotton and polyester yarns, including “speciality”items,and technical textiles, has reduced its export share,with more yarns now being sold domestically. This has worked well – the company will start commercial production at its Punjab facility later this month, doubling its total yarn capacity. Prabhu D, convener at the Indian Texpreneurs Federation, said the domestic textile market will continue to expand. Continued on Page 7