ECONOMY | PAGE 3 ECONOMY | PAGE 2 Steps soon to support exports, assures Goyal INTERNATIONAL | PAGE 7 Putin, PM meet on Monday on sidelines ofSCO Summit NEW DELHI, SATURDAY, AUGUST 30, 2025 Musk seeks dismissal of SEC suit onTwitter stake FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. L1 NO. 155, 42 PAGES, `12 (PATNA & RAIPUR `12, SRINAGAR `15) 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: 79,809.65 ▼ 270.92 NIFTY: 24,426.85 ▼ 74.05 NIKKEI 225: 42,718.47 ▼ 110.32 HANG SENG: 25,077.62 ▲ 78.80 `/$: 88.21 ▼ 0.57 `/€: 102.96 ▼ 0.89 BRENT: $68.09 ▼ $0.53 GOLD: `1,01,967 ▲ `968 Pleasantsurprise:Q1GDPgrowthatfive-quarterhighof7.8% Fiscal deficit at ● Robust services 30% of annual target in April-July and front-loading of government THE CENTRE’S FISCAL deficit capex key drivers Q1 Q2 Q3 Q4 Q1 FY24 Q2 Q3 Q4 FY25 defied most high-frequency indicators. The data released by the National Statistics Office on Friday,however,did not prompt most analysts to Q1 FY26 Source: MoSPI revise the forecasts for the country’s economic growth in the current financial year upwards, with baseline estimates being maintained at a 9.5 Public administration, defence 9.8 little above 6%. This contrasted with the wide band of 6.3-6.8% predicted by economists in the finance ministry, and a forecast of 6.5% URVI MALVANIA Mumbai, August 29 FORWARD CALL RELIANCE INDUSTRIES CHAIRMAN Mukesh Ambani first flagged plans in 2019 to list Jio within five years.In the annual general meeting last year, he was silent on the issue. On Friday, Ambani finally ended the suspense by telling shareholders that Jio Platforms, RIL’s telecom and digital platforms, is preparing to go public by the first half of next calendar year. Speaking at RIL’s 48th annual general meeting, Ambani said, “This will demonstrate that Jio is capable of creating the same quantum of value like our global counterparts.I am sure that it will be a very attractive opportunity for all investors.” The Jio share sale would mark RIL’s first public offering of a major business since Reliance Petroleum debuted in 2006. The announcement comes as India’s largest telecom operatorbymarket share,with a 500 million consumer base, celebrates 10 years of operations. As on June 30, the market leader had an average revenue per user of `209,buoyed Reliancewillmore thandoubleits Ebitdabytheend ofitsgolden decadein2027 »INSIDE« the market leader had an average revenue per user of `209 ■ Analysts say the ■ Jio revenue was `1,28,218 crore, a growth of 17% yearon-year, in FY25 ■ Its Ebitda was `64,170 crore company would be looking at a valuation of `10-12 lakh crore COMING SOON... JioFrame, a smart glass, voiceenabled AI assistant with cameras; JioPC, a service that converts televisions into AI-enabled computers by steadily increasing data consumption,and an expanding home internet base. In addition to listing on Indian exchanges, the firm, which houses RIL’s telecom business underJio Infocomm, will also chase global aspirations.“With strategic partnerships and a clear roadmap,we will take Jio’s services to the rest of the world,” Akash Indianeednotcopyany foreignmodel.Wehavethe ability,andtheresponsibility, tocreateanIndia-firstmodel ofdevelopment Ambani, chairman, Reliance Jio Infocomm, said. Analysts said that the companywould be looking at a valuation of `10-12 lakh crore. This would translate into an IPO size of `50,00060,000 crore under the current guidelines of minimum 5% dilution. Continued on Page 7 MUKESH AMBANI, RELIANCE INDUSTRIES CHAIRMAN ENERGY SECURITY `1 lakh cr: 20%+ Aims nearly tenfold increase in FMCG revenue from current `11,500 crore in 5 years ■ As on June 30, coming quarters. Its secondary and tertiary effects, especially in the form of job losses in export-oriented sectors, is likely to be severer, Continued on Page 7 CAGR expected in firm’s retail revenue over the next three years 30% Reliance's share in India’s natural gas output KG-D6 production up 4% to 28 mmscmd of gas and 21,000 barrels of oil per day, with plans to add new wells 550,000 acres Size of its upcoming solar projects in Kutch, Gujarat — a single site that could meet nearly 10% of India’s electricity needs within the next decade AMBANI SEES GROWTH IN OIL BIZ DESPITE GLOBALTENSIONS PAGE 4 JIO IPO MAYTRIGGER TARIFF HIKE BY YEAR-END, SAYANALYSTS PAGE 4 RILenters the AI race, joins handswith Google, Meta FE BUREAU Mumbai, August 29 VENTURING INTO THE artificial intelligence space, Reliance Industries (RIL) on Friday announced the formation of a new wholly-owned subsidiary, Reliance Intelligence, and entered into strategic partnerships with Google and Meta, positioning the conglomerate at the forefront of India’s AI revolution. Speaking at the company’s 48th annual general meeting (AGM), RIL chairman and managing director Mukesh Ambani outlined an ambitious four-pronged AI strategy encompassing infrastructure development, global partnerships, AI services delivery, and talent acquisition. “Jio promised and delivered digital everywhere and for every Indian. Similarly, Reliance Intelligence promises to deliver AI everywhere for every Indian,” Ambani said. The new subsidiary will house the country’s nextgeneration AI infrastructure through gigawatt-scale AIready data centres powered by green energy in the Jamnagar region of Gujarat, the work for which is underway. These facilities will be delivered in phases aligned to India’s growing needs and purpose-built for AI training and inference at national scale, he said. Ambani also emphasised the company’s commitment to sustainable AI infrastructure. Continued on Page 7 RIL LOOKS TO SEIZE HIGH-GROWTH OPPORTUNITY IN FMCG PAGE 4 GSTcuts:Oppn-ruledstatesdemandcompensation EIGHT STATES RULED by Opposition parties on Friday demanded that all states be compensated forfiveyears for an estimated annual revenue lossof`2lakhcroretheymight incur as a result of the proposed cuts in Goods and Services Tax (GST) rates. Addressing the media here, ministers from Karnataka, Himachal Pradesh, Jharkhand, Kerala,Punjab,Tamil Nadu and Telangana, as well as a representative of the West Bengal government, also asked for a mechanism to guard against profiteering bybusinesses post the tax cuts to ensure the benefitsaccruetothecommonman. by the Reserve Bank of India. Analysts see a significant macro hit if the 50% additional US tariffs on Indian merchandise persists over the REPORT ON PAGE 2 Jio signals IPO byJune Annual revenue loss estimated at `2 lakh crore, states be provided relief for five years: Ministers FE BUREAU New Delhi, August 29 8.6 Financial, real estate & professional services KEY PROPOSALS KRISHNA BYRE GOWDA, FINANCE MINISTER, KARNATAKA ■ Mechanism to guard against profiteering by businesses after GST rate cut ■ Additional duty on sin and luxury goods over the proposed 40% to maintain current tax incidence ■ The base year for calculating revenue protection for states be fixed as 2024-25 The states suggested that an additional dutybe levied on sin and luxury goods over the proposed 40% rate to maintain the current tax incidence. Part proceeds from this levy should be fully distributed Everystate is expected to lose 1520% of its GST revenue...Losswill seriouslydestabilise the state’s fiscal structure among states to compensate them for revenue losses. These states will present their proposals before the GST Council, chaired by Union finance minister Nirmala Sitharamanandcomprisingall state ministers,at the September 3-4 meeting.The Centre is keen that the reforms are implemented bymid-September so that the consumers get the benefit of it in the coming festive season. Apart from streamliningthemultipleslabs under GST into a two-pillar structure of 5% and 18%, the proposal intends to levy a special rate of 40% on sin and luxurygoods.The existing rates of 12% and 28% will be abolished.TheCentrehasnotgiven an estimate of the revenue loss duetotheratesrationalisation. Karnatakafinanceminister Krishna Byre Gowda said each state is expected to lose 1520% from its current GSTrevenue and debunked the claim that tax revenue buoyancywill increase afterthe rate cut.“The 20% GST revenue loss will seriously destabilise the fiscal structureofstategovernments across the country,”he said. Continued on Page 7 Prime Minister Narendra Modi greets guests before delivering a speech during the India-Japan AP Economic Forum in Tokyo on Friday. Modi is on a visit to Japan after a gap of seven years Japantoinvest10-trnyen inIndia;focusontech,AI SHUBHAJIT ROY & DIVYAA August 29 CHARTING WHAT PRIME MinisterNarendra Modi called “a roadmap for the next decade”,IndiaandJapanonFridayagreedtoraisetheJapanese investment target in India to 10 trillion yen, launch initiatives on economic security cooperation, digital partnership, artificial intelligence and a new mobilitypartnership. This comes amid concerns »INSIDE« PM: INDIA, CHINAMUSTWORK TOWARDS GLOBALSTABILITY PAGE 2 in India that steep US tariffs of 50% may hit the domestic MSME sector in the coming days. India and Japan are part of the Quad grouping, besides the US and Australia. After bilateral talks with Japanese counterpart Shigeru Ishiba — the 15th India-Japan Annual Summit — Modi, who reachedTokyoearlyFriday,also said India and Japan will exchange about 500,000 peopleinthenextfiveyears,including 50,000 skilled professionals from India. Describing the talks as “productive” and “purposeful”, Modi said “strong democracies are natural partners in shaping a betterworld”. From Japan, Modi will travel to China to attend the SCO Summit. Continued on Page 13 Re at all-time low, breaches 88-mark ● Recordsfallof 0.65%,single biggestinamonth MAHESH NAYAK Mumbai, August 29 TARIFF TOLL Rupee vs dollar 87.6 87.63 Previous close Pr 87.8 THE RUPEE BREACHED the 88 levels for the first time on Friday, recording its biggest one-daymonthlyfalltocloseat an all-time low of 88.20 against the US dollar. “Tariffs sneeze has seen rupee catching pneumonia,” says Kunal Sodhani, head of treasury at Shinhan Bank, addingthatthe“outflowsfrom equity markets, US President DonaldTrump’stariffpressure on India, month-end oil demand and rupee-yuan dynamics are all creating pressure”onthedomesticcurrency. Agreeingwithhim,Anindya Banerjee, head of currency & 0.65 % 88.0 88.21 88.2 88.4 Open Close commodities,KotakSecurities, said,“RBI’swillingnesstoallow rupee to depreciate has also added to the weakness.” The undervaluation of the rupee is the biggest positive,he added. Continued on Page 7 Markets’ worst week in 5 months Sensex 82,000 Net equity investments FPIs 81,306.85 DIIs 81,500 81,000 80,500 1.84 % 80,000 79,500 79,809.65 Aug 22 Aug 29 New Delhi Govt names RBI ex-guv Urjit Patel as IMFED FE BUREAU New Delhi, August 29 Inverted scale 8,312 11,487 ■ PERSONAL FINANCE, P9 7.6 they felt. Many expressed hope that a consumption push from the proposed Goods and Services Tax (GST) rates rationalisation could serve as a buffer. The solid growth figure for Q1FY26 was despite a 3.1% contraction in “mining and quarrying” and a steep fall in gross value added (GVA) in the electricity sector (0.5% versus 10.1% in the year-ago quarter) on account of a benign summer. Agriculture gross value added grew at a satisfactory 3.7%, compared with 1.5% in theyear-ago quarterand 5.4% in Q4FY25. TELECOM SUBSCRIBER BASE CROSSES 500 MILLION,TO GO GLOBAL Reliance Consumer Products (RCPL) will now be a direct subsidiary of Reliance Industries The dealer adjusts the price so your instalments appear interest-free 0.5 Construction Trade, hotels, etc HELPED BYA buoyant services sector, a push from government spending, and a low deflator,India’sgrossdomestic product (GDP) registered a healthy expansion of 7.8% in theApril-June quarter. The five-quarter high growth rate beat all analyst estimates, the median of which was around 6.7%, and CONSUMER FOCUS Hidden costs of a zero-cost EMI Electricity, gas, water Aug 29 FE S P EC I A L 6.4 Aug 28 GOLD PRICES RALLIED `2,100 to hit a fresh all-time high of `1,03,670 per 10 grams on Friday due to persistent buying by stockists and a depreciation in the rupee, while silver prices retreated from their all-time high level & declined `1,000 to `1,19,000 per kg, reports PTI. ■ PAGE 6 5.6 -6,088 -3,857 Gold surges `2,100 to scale new peak, silver slips `1,000 6.5 7.7 Manufacturing 7.4 7.8 There could be some downside risks to (growth) projections if (US) tariffs remain for a longer period « WITH THE EXPORTER segment hit by steep US tariffs, the initial impact is already visible in slowing credit demand and cautious lending, particularly in labour-intensive sectors grappling with margin pressures and order volatility, reports fe Bureau. ■ PAGE 6 8.4 MUKESH JAGOTA New Delhi, August 29 -3.1 Mining & quarrying 3,177 Growth in export credit at 4.7% amid tariff heat 9.7 9.3 9.5 3.7 -5,650 Aug 26 7,060 THE ROLLOVER PERCENTAGE in Nifty futures August series increased to 84% from an average 78% in the past three series suggesting that market participants expect a further fall, reports Ananya Grover. ■ PAGE 6 Agriculture Real GDP (% chg, y-o-y) V ANANTHA NAGESWARAN, CEA Aug 25 Higher rollover hints Nifty staring at volatile Sept Sectoral GVA (% chg, y-o-y) -1,555 widened to 29.9% of the annual target in the first four months of 2025-26, sharply higher than 17.2% in the year-ago period, as net tax revenues continued to contract and capital expenditure accelerated, reports fe Bureau. The fiscal deficit rose to `4.7 lakh crore during the period. ■ PAGE 2 HEALTHY EXPANSION « IN THE NEWS FORMER RESERVE BANK of India (RBI) governorUrjit Patel has been appointed as an executive director(ED) at the International Monetary Fund (IMF) forathree-yearterm.Hewillfill the position lying vacant since the premature termination of the tenure of »INSIDE« K V Subramanian in THE ‘OWL’ ON A NEW April this year. PERCH The Appointments NEWS POINT, Committee of PAGE 20 the Cabinet has approved Patel’sappointment,whichwill be effective from the date of assumption of charge, accordingtoanorderdatedAugust28. Hewillrepresentaconstituency comprising India, Bangladesh, Bhutan and Sri Lanka on the IMF executive board, overseeing daily operations and shaping policydecisions.