INTERNATIONAL | PAGE 10 COMPANIES | PAGE 4 ParamountgetsDoJnod forWarnerBrosdeal Livspacesacks1,000, co-founderresigns KOLKATA, SATURDAY, FEBRUARY 21, 2026 VOL 35 NO. 96, 20 PAGES, `12 (NORTH EAST STATES `13 & ANDAMAN `20) INTERNATIONAL | PAGE 10 US GDPgrowsatslower paceonshutdownhit 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: 82,814.71 ▲ 316.57 NIFTY: 25,571.25 ▲ 116.90 NIKKEI 225: 56,825.70 ▼ 642.13 HANG SENG: 26,413.35 ▼ 292.59 `/$: 90.99 ▼ 0.31 `/€: 107.07 ▲ 0.28 BRENT: $71.30 ▼ $0.36 GOLD: `1,54,463 ▲ `326 TrumpcallsUStopcourtrulinga‘disgrace’, hintsatback-upplan TARIFFSTRUMPED GREG STOHR Washington, February 20 THE US SUPREME COURT struck down President Donald Trump’s sweeping global tariffs,undercutting his signature economicpolicyanddelivering his biggest legal defeat since he returned to theWhite House. Voting 6-3, the court said Trump exceeded his authority by invoking a federal emergency-powerslawtoimposehis “reciprocal” tariffs across the globe aswell as targeted import taxes the administration says address fentanyl trafficking. The justices didn’t address the extent to which importers are entitled to refunds,leaving it to a lower court to sort out those issues. If fully allowed, refunds could total as much as $170 billion—more than half the total revenue Trump’s tariffs have brought in. TheWhite House has said it will quickly replace the levies using other legal tools,though thefall-backoptionstendtobe either more cumbersome or more limited than the wideranging powers Trump asserted under the International Emergency Economic Powers Act. Trump described the SC decision against him as a“disgrace,” and claimed he has a “back-up plan”, reported Reuters citing sources familiar with the developments. The White House did not immediately respond to a BIG BLOW ■ The US Supreme Court struck down President Donald Trump’s sweeping global tariffs in a 6-3 decision The court ruled Trump exceeded his authority under the International Emergency Economic Powers Act ■ ■ The decision invalidates the April 2 “Liberation Day” tariffs of 10-50% on most imports ■ Tariffs tied to fentanyl trafficking targeting Canada, Mexico, and China were also blocked request for comment. The judges referred to the tariffs imposed on India for Russian oil purchases in his dissenting opinion. Trump had imposed 25% reciprocal tariffs on India and an additional 25% punitive tariff for Delhi’s purchases of Russian oil. Stocks rose on news of the decision given investors previouslyfrettedtariffswouldhurt the outlook for economic growth and company earnings. Treasuries extended declines with yields rising broadly and the rate on the benchmark 10-year note climbingto4.10%asinvestors ■ The ruling casts doubt on separate IEEPAbased tariffs on Brazil and India priced in the likelihood of lower tax revenues. A Bloomberg gauge of the dollar fell as much as 0.2% before erasing the drop. The decision invalidates Trump’s April 2 “Liberation Day” tariffs, which put levies of 10-50% on imports from most countries. It also scuttles duties he imposed on goods from Canada, Mexico and China in the name of addressing fentanyl trafficking,and it casts doubt on separate IEEPA tariffs placed on goods from Brazil and India for various reasons. Continued on Page 10 FTApromises fail to put a halt to Big Pharma exits MANU KAUSHIK New Delhi, February 20 NOVARTIS AG'S DECISION to exit its modest Indian subsidiary signals once again that Big Pharma is still looking to disinvest and nurtures no real ambition to expand its presence in the country. The Swiss drugmaker’s move also contradicts the promise that India’s new trade pacts like the one with the UK and the European Free Trade Association (EFTA) would prompt innovatordrug companies to rethink their India plans. The India-EFTA FTA was believed to inspire confidence in companies like Novartis because of the reference therein to “data exclusivity”. Commerce and Industry Minister Piyush Goyal had said a few months ago that India might attract $150 billion in investments if it adopted data exclusivity provisions. Continued on Page 3 Novartis to exit India biz in `1,446-crdeal ● Sharesrally20% postannouncement MANU KAUSHIK New Delhi, February 20 FE BUREAU New Delhi, February 20 THE US SUPREME Court’s decision invalidating country-specific tariffs by theTrump administration will free about 55% of India’s exports to America from the reciprocal tariffs that are to be brought downto18%from25%as partofatradedeal,according to trade policy think tank GTRI. The 55% Indian exportswillnowbesubject to only standard MFN tariffs, founder of Global Trade Research Initiative AjaySrivastava said. On the remaining exports,(i) Section 232 tariffswillcontinue—50%on steel and aluminium and 25% on certain auto components. The products accounting for roughly 40% of export value, including smartphones, petroleum products and medicines, will remain exemptfromtheUStariffs. Trade deal with US to be operational by Apr: Goyal MUKESH JAGOTA New Delhi, February 20 complete its transformation into a pure-play innovative medicines company and continuestoadaptitsfootprintfor efficient, sustainable longterm growth aligned with its global strategy,” a company statement said. INDIA'S TRADE AGREEMENT with the US is likely to become operationalbyApril,Commerce and Industry Minister Piyush Goyal said on Friday. To finalise the legal text of the trade deal with the US, Darpan Jain, joint secretary in the Department of Commerce and the chief negotiator from the Indian side,will lead a team of officials to Washington from February23.Theteamwillbein the US till the end of nextweek. The pact signing will occur sometimeinMarchanditwillbe operationalised in April, Goyal said.InApril,thefreetradeagreements (FTAs) with the UK and Omanwouldalsostartoperating. US Trade Representative (USTR) Jamieson Greer is likely tovisitIndiainMarchtosignthe pact.AtaneventattheAIImpact Summit,USAmbassadorSergio GorsaidthattheIndia-UStrade deal is set to be inked soon. Continued on Page 10 Continued on Page 10 ON THE DECLINE MNCs share in Indian pharma market (%) 25 20 SWISS PHARMA MAJOR Novartis AG on Friday said it has agreed to divest its entire 70.68% stake in its listed subsidiary, Novartis India, for around `1,446 crore to a consortium led by private equity firm ChrysCapital. The company expects the deal to close by the third quarter of 2026, subject to certain conditions. After the announcement, sharesofNovartisIndiasurged 20% to close at `996.50 apiece on the BSE.“This divestmentfollowsastrategicreview announced and conducted by Novartis AG starting February 2024.Upon completion of this transferof shares,Novartiswill Over50% of exports free from extra levies 21 14 15 10 5 0 Dec 2015 Source: Pharmarack Dec 2025 Sam Altman, chief executive officer, OpenAI, with Anant Goenka, Executive Director, The Indian Express Group, at the Express Adda in New Delhi on Friday The questionAltman won’t ask ChatGPT: How to be happy ● ‘Closecooperation 'SKILLS THAT WILL ALWAYS MATTER: FLUENCY WITH AI TOOLS, RESILIENCE, HOW TO WORK WITH OTHER PEOPLE' betweengovtsand AIfirmsbecoming moreimportant’ SOUMYARENDRA BARIK New Delhi, February 20 A “CLOSE COOPERATION” between governments and AI companies will become “increasingly important over time”, Sam Altman, CEO of OpenAI, said here on Friday, underlining the need to democratise the technology and build robust infrastructure. He also stressed that, given the size of India’s economy, the country should work across all layers of theAI stack: from energy and infrastructure to chips, frontier models and applications. Altman is in India to attend the India-AI Impact Summit, where his company has announced a number of part- nerships,including a data centre deal withTata Consultancy Servicesandplanstoopennew offices in Bengaluru and Mumbai. Speaking at Express Adda,where he was in conversation with Anant Goenka, Executive Director,The Indian Express Group, Altman, IndiaentersPaxSilica;US sayscoalitionbolstered SHUBHAJIT ROY, PRATYUSH DEEP & RAVI DUTTA MISHRA New Delhi, February 20 AS INDIA ON Friday joined the Pax Silica, a US-led strategic alliance focused on securing AI and tech supply chains, US AmbassadorSergioGorsaidSecretary of State Marco Rubio will be visiting India“very soon,in a matter of months”.This was an indication of the recent warmingoftiesbetweenthetwocountries after months of strained relationsovertheTrumpadministration’stariffsonIndia. Gor also said the India-US tradedealissettobeinkedsoon. AskedabouttheQuadgrouping, hesaid,“TheQuadisveryimpor- INSIDE Union Minister Ashwini Vaishnaw (second from right) with US Ambassador to India Sergio Gor & others, in New Delhi tant.The first meeting that Secretary Rubio had was with the Quad.Andthatsendsamessage totheworld.Hedidn’tmeetwith anyone else. We’re actively in talks.Idon’thaveexactdates,but IT CEOs DISPEL FEARS OF A SECTOR WIPEOUT P6 Rubio will be travelling to India verysoon,inamatterofmonths. Andsothat’llbepartoftheQuad, alongwithotherinitiatives.” Continued on Page 10 AI IS LIKE A TSUNAMI HITTING INDIAN, GLOBAL FIRMS JOIN LABOUR MKT: IMF CHIEF P6 HANDS AMID TECH SHIFT P7 Paymore to feel more: Businesses up‘premium’game FROM FOOD DELIVERY to streamingandshopping,India Inc is discovering that loyalty isn’t enough.The new mantra: gopremium—andthengopremium again. You get home hungry,open Zomatoand,asaGoldmember, expect the usual perks — free delivery, extra discounts. But just before checkout, a new temptation flashes: add “VIP Mode” for a small fee and unlockthefastestdelivery,premiumsupport,top-rateddelivery partners and even refunds on delays. Dinnersorted,youswitchto Prime Video for the latest blockbuster. Your Amazon Prime membership grants access — but a few seconds of ads interrupt the experience. Want them gone? Pay a little more. Even premium now comes with layers. Welcome to India’s emerging “premium-within-premium” economy, where platforms are stacking paid privileges atop existing memberships to monetise speed, certainty and status. At Amazon, the shift is deliberate. After introducing ads to PrimeVideo in India last year, customers were given a choice: stay on the ad-supported plan or pay extra for an uninterrupted experience. According toAbhinavAgarwal, director and head of PrimeIndia,thatflexibilityhas VIP OFFERINGS ■ Zomato's VIP Mode (~ `50 extra per order) offers fastest delivery, premium support ■ Multi-tier subscription models let you go premium within premium ■ Amazon Prime's premium add-on offers ad-free viewing ■ Aim is to shift towards ■ Flipkart Black offers monetising engagement and convenience been a success. India has also served as a testinggroundfortieredPrime memberships—an“India-first approach that is nowinfluencing global thinking within Amazon,” Agarwal says. The logicissimple:Primemembers perks across shopping, travel & entertainment shop over five times more frequently than non-members, andthetop10%save8.5xtheir membership fee, reinforcing stickiness while opening new monetisation layers. The strategyisn’t limited to one platform. At Flipkart, the paid membership “Black” sits above the existing Plus loyalty programme, bundling exclusive shopping, travel and entertainmentbenefitsforfrequent transactors. Meanwhile, Swiggy has taken the idea further with arguably one of the most influential technology leaders today,spokewith candouron a range of issues reflecting both the breadth and depth of his engagement with AI and its place in the world. From what he wouldn’t ask ChatGPT—how to be happy— towhyonlysomechildrenmay use AI as a shortcut to do homework even as others use it to break new ground, Altman,who co-founded OpenAI in 2015, addressed key questions on AI and power,the disruptive effects of the technology,and the role of China. Continued on Page 10 QUICK PICKS Benigninflation anchoredFeb MPCratehold WITH DOMESTIC GROWTH remaining resilient and inflation expected to stay benign, RBI GovernorSanjayMalhotra said the current policy rate remains appropriate, as reflected in the February minutes of the Reserve Bank of India’s Monetary Policy Committee (MPC). ■ PAGE 5 Premium-within-premiumnewsubscriptionmodelformanyservices KUNAL DOLEY New Delhi, February 20 RENUKA PURI Swiggy One BLCK — an inviteonly tier positioned as the “business class equivalent” of its regular Swiggy One membership. Members get faster deliveries, on-time guarantees and concierge-style support. According to co-founderPhani Kishan,it is built for users who demand the highest levels of speed, reliability and personalised care. The economics are compelling. Nearly 80% of Swiggy One members use two or more services on the app and spend three times more than non-members. A higher tierpromises even greaterwallet share from the most engaged users. Consultantssaythislayered approach reflects a maturing Kolkata digital market. Naveen Malpani, partner and consumer & retail industry leader at Grant Thornton Bharat, notes that globally, subscription-led ecommerce is expanding rapidlyasplatformsusedifferentiated pricing to offer priorityaccess,fasterfulfilmentand ad-free environments. In India, the model allows platformstomovebeyonduniform benefits to graduated value propositions,where customers pay incrementally for greater service assurance. The result: more predictable recurring revenues at a time when customer acquisition costs are rising and competition is intense. Continued on Page 10 Trade deals to boost growth: RBI bulletin THE COMPLETION OF IndiaEU FTAs and the interim trade pact between India and the US are expected to expand India’s market access,diversifyexport destinations and sustain growth momentum, RBI said in its latest State of the Economyassessment. ■ PAGE 2 CAFEnorms mayhitsmall carmakershard SMALL CARMAKERS MAY be badlyimpactedbytheproposed third phase of Corporate Average Fuel Economy (CAFE-3) norms.The Bureau of Energy Efficiency (BEE) plans a uniform 36% cut in fleet-average CO2 emissions by the fifth year,irrespective of theweight of the car. ■ PAGE 4 Core sector growth eases to 4% in Jan INFRASTRUCTURE SECTOR INDUSTRIES grewby4%y-o-y in January, down from an upwardlyrevised4.7%growth in December. Seven of the eight core sectors recorded a decelerationinthegrowthrate in January. ■ PAGE 2