ECONOMY | PAGE 2 COMPANIES | PAGE 4 NFRAsets 90-daywindow for Big Four to fix gaps INTERNATIONAL | PAGE 7 Airlines diverge as fuel costs bite amid Iran war Pentagonmakesdealswith AItitans,butnotAnthropic MUMBAI, SATURDAY, MAY 2, 2026 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL LXVI NO. 103, 12 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: 76,913.50* ▼ 582.86 NIFTY: 23,997.55* ▼ 180.10 NIKKEI 225: 59513.12 ▲ 228.20 HANG SENG: 25,776.53* ▼ 335.31 `/$: 94.92* ▼ 0.07 `/€: 110.98* ▼ 0.04 BRENT: $108.66 ▼ $1.74 GOLD: `149,777* ▲ `2,316 *Prv close IN THE NEWS ECONOMY PAGE 2 MONSOON LIKELY TO HITKERALA IN EARLYJUNE THE SOUTHWEST MONSOON is likely to arrive over the Kerala coast on time in early June given the current conditions, the IMD said on Friday while indicating that rains are expected over the Andaman and Nicobar Islands during May 14-20, reports Sandip Das. ECONOMY PAGE 6 RBI MUST DIRECT TATA SONS TO LIST: INGOVERN INGOVERN ON FRIDAY urged the RBI to formally rejectTata Sons’ application to surrender its registration as a Systemically Important Core Investment Company, reports Kshipra Petkar. Trump to raise tariff on EU cars, trucks to 25% US PRESIDENT DONALD Trump said he was raising tariffs on cars and trucks from the European Union to 25%, claiming that the bloc had failed to fully comply with a trade agreement negotiated with the US. ■ PAGE 7 AGR relief for Vi shrinks to `10K cr in real terms THE CENTRE’S 27% reduction in Vi’sAGR dues translates into an effective benefit of under `10,000 crore when adjusted for payment timing, much lower than the headline relief of about `23,600 crore, reports Rishi Raj. ■ PAGE 4 Power grid strain deepens before summer peaks THE HEAT HAS not peaked yet, but India’s power system is already under strain, and the warning signs are flashing early, reports Saurav Anand. Electricity demand surged from 215,832 MW on April 1 to a record 256,117 MW on April 25. ■ PAGE 3 TAXBUOYANCYUNDERACLOUD,SAYS EXPENDITURE SECRETARY Govt hints at fiscal strain but capex plan on track PRASANTA SAHU New Delhi, May 1 RED FLAG THE WEST ASIA war has begun to cause fiscal pressure, by raising questions over tax revenue buoyancy, but the government will maintain its capital expenditure at the budgeted level in FY27, Expenditure SecretaryVVualnam said on Friday. Responding to a question on whether India’s Goldilocks phase was over and the country was entering a period of cautious resilience, Vualnam said, “Yes, the situation has indeed changed.For instance, buoyancy on our gross tax receipts in the coming months is a big question…. probablythe qualityof expenditure is what we will be fully focused on.” He was speaking at the ICPP Growth Conference organised by Ashoka University. In the Budget, the Centre ■ The Centre may raise petrol, diesel and domestic cooking gas prices to keep the subsidy burden manageable ■ The government has set a capex target of `12.2 lakh crore for FY27 ■ Rising subsidy burdens linked to automobile fuel, cooking gas and fertiliser imports are a concern V VUALNAM, EXPENDITURE SECRETARY The next few months, the next quarter and the coming year are indeed very difficult to envisage, lots of possible stress points has factored in a modest tax buoyancyof 0.8,but nowthere is a big question if even that could be maintained. “The fiscal stress is indeed very much a reality, but at the same time... the capex would really be a priority item which we would like to preserve and ensure that it continues at the budgeted level,” he said. The Centre has set a capex target of `12.2 lakh crore in FY27 compared with around `10.95 lakh crore revised estimate for FY26.He added that highways, railways, shipping, ports and urban development would remain the prioritysectors for FY27 capital spending. Continued on Page 7 ON PAGE 2 M NAGARAJU, financial services secretary The proposed panel is expected to review the banking sector with a focus on making it more effective, inclusive, and better aligned with India’s growth needs POONAM GUPTA, deputy governor, RBI Our remittances are solid, $135-bn plus, (and they) only move in one direction, which is a healthy growth every single year Carsales inApril At`2.42lakhcr, see 25% jump GSTreceiptshit IN TOP GEAR newhighinApril NITIN KUMAR New Delhi, May 1 PASSENGER VEHICLE (PV) makers reported a strong start to FY27, with domestic wholesales rising 25.1%yearon-year to 4,45,417 units in April, compared with 3,56,113 units in theyear-ago period, reflecting a mix of base effect, sustained SUV demand and improving rural traction. Market leader Maruti Suzuki India led the growth with a 35.3% increase to 1,87,704 units, while Tata Motors reported a 30.5% rise to 59,000 units. Mahindra & Mahindra posted a 7.6% increase to 56,331 units, and Hyundai Motor India recorded a 17% growth to 51,902 units. Toyota Kirloskar Motor and Kia India grew 21.4% and 15.5% to 30,159 units and 27,286 units, respectively. Executives attributed the uptick to improved demand conditionsfollowinglastyear’s indirect tax changes, continued preference forutilityvehicles and a gradual recovery in rural markets. A low base in April 2025, when demand remained muted, also aided the year-on-year comparison. Maruti Suzuki reported its highest-ever monthly sales – domestic plus exports -- at KULDEEP SINGH New Delhi, May 1 Company-wise sales April 2026 Chg (%, y-o-y) Maruti Suzuki Tata Motors 1,87,704 35.3 59,000 30.5 Mahindra 56,331 Hyundai 51,902 7.6 17.0 Toyota 30,159 21.4 Kia 27,286 15.5 Source: Companies 2,39,646 units, with domestic volumes at record levels. The company’s SUV sales touched 55,000 units during the month. “Rural market response is very good, where we grew 39% inApril,and our rural penetration now stands at 52.3%, up 2.4 percentage points compared to last year,” Partho Banerjee, senior executive officer, marketing and sales, Maruti Suzuki, said. Continued on Page 11 GROSS GOODSAND Services Tax (GST) collections grew 8.7%year-on-yearinApril (for March transactions) to an alltime high of `2.42 lakh crore, driven by a surge in revenue from imports and also signalling a year-end spurt in transactions amid the West Asia crisis. Typically,April GST collectionstendtoberobust,asbusinesses try to clear tax dues for the fiscal year. According to official data released by the Ministry of Finance on Friday, gross domestic revenue rose by a modest 4.3% to `1.85 lakh crore, while gross GST revenue from imports stood at `57,580 crore, up 25.8%, reflecting sustained inward shipments even in a volatile external environment. The net GST revenue (after refunds) grew 7.3% to `2.10 lakh crore. The refunds rose 19.3% to `31,793 crore, driven largely by higher domestic refunds, pointing to faster,system-driven processing and improved liquidity flows back to businesses. YEAR-END SPIKE Gross GST collections (` lakh cr) Iransendsfreshproposal forUStalkstoPakistan ASIF SHAHZAD, HUMEYRA PAMUK & AHMED ELIMAM Islamabad/Washington/ Dubai, May 1 TEHRAN HAS SUBMITTED its latest proposal for negotiations with the United States, Iranian state media and a Pakistani official said on Friday, a move that could offer hope for breaking a deadlock in efforts to end the Iran war. The official, involved in Pakistani mediation efforts overthewar,said Pakistan had received the proposal late on Thursdayand had forwarded it to the US. Neither the official nor Iranian state news agency IRNA gave details. Global oil prices, which remain well above $100 a barrel,eased following news of the proposal. The closure of the Strait of Hormuz has caused unprecedented disruption to energy markets, choking off 20% of theworld's oil and gas supplies and causing a record rallyin oil prices. The blockade of the vital sea channel has also increased concerns that there will be an economic downturn.The US Navy is blocking exports of Iranian crude oil.A ceasefire has been in place BSEedges pastNSEin F&Otradefor thefirsttime ANJANATHERESEANTONY Mumbai, May 1 Saurabh Agarwal, Tax Partner, EY India, said that while the headline numbers are encouraging, the divergence between modest domestic GST growth and the significant uptick in importlinked collections warrants a strategic pivot. FORTHEFIRSTtime,thefutures and options (F&O) market share of BSE has surpassed that of its unlisted peer, National Stock Exchange(NSE)inApril. The listed bourse’s share in notional F&O turnover rose to 55.4% in April from 43.6% in March, while NSE’s share declinedto44.6%from56.4%. BSE’s average daily turnover (ADT) in the F&O segment grew nearly20%month-on-monthto `269.07 lakh crore in April. In contrast, NSE’s ADT fell about 26%to`216lakhcrore. Intheoptionssegment,NSE’s totalpremiumturnoverdeclined 28%month-on-monthto`12.9 lakh crore,while BSE reported a modest 5.6% increase to `6.63 lakh crore. Additionally, NSE’s averagedailypremiumturnover dropped 35% to `61,417 crore, whereas BSE’s remained largely flatat`33,150crore. Despitethisshift,NSEcontinues to dominate the overall options market,holding a 66% share in options premium turnover compared with BSE’s 34%. Continued on Page 7 Continued on Page 7 2.6 2.2 2.37 2.42 1.8 1.4 1 Apr 2025 Apr 2026 Source: Finance Ministry Placement season seeing higher number of new-age companies as traditional tech firms scale down recruitment Startups cushion IThiring slowdown POULOMI CHATTERJEE Bengaluru, May 1 FRESHER HIRING IN the technology sector is undergoing a reset, with large IT services firms pulling back from mass recruitment even as startups widen their campus footprint—helping keep overall placement volumes broadly steady. Top IT companies such as Tata Consultancy Services, Infosys, Wipro and HCLTech have scaled down hiring after the post-pandemic surge. TCS plans to hire about 25,000 freshers in FY27, down from 44,000 in FY26, while Infosys has kept its target unchanged at 20,000.Others have not disclosed numbers. “While the sector saw over 10% hiring growth and aggressive fresher intake in FY22, the pace has moderated READY FOR HIRE ■ Top IT companies such as Tata Consultancy Services, Infosys, Wipro and HCLTech have scaled down hiring after the post-pandemic surge ■ Some AI-focused startups are ■ Campus placement trends suggest that reduced intake per company is being offset by a rise in the number of recruiters, particularly startups offering significantly higher packages than IT firms — `20–40 lakh — for a limited number of hires ■ Estimates suggest startups could collectively hire 60,000–80,000 people this year sharply, with overall headcountgrowthhoveringaround 2% in FY25 and FY26,” said Nitin Bhatt, technology sector leader at EY India. Campus placement trends suggest that reduced intake per company is being offset by a rise in the number of recruiters, particularly startups. At Vellore Institute of Technology, around 1,500 companiesvisited the campus this year,up from about 1,000 last year, according to placement officials—helping sustain overall hiring levels. “Instead of mass recruitment, hiring is now split into different tiers of salary packages and domains like AI data training, coding, testing and security,” said Jayakumar S, assistant director at VIT’s career development centre, adding that total hiring numbers were broadly in line with previous years. Other institutions report similar patterns. Christ University said hiring volumes havegrown10–15%annually, supported by offshoring demand and stronger startup participation. Tier-2 colleges, however, pointed to the continued absence of large IT recruiters, even as startups maintained steady hiring through the year. While startups are not matching IT firms in scale, they are becoming increasingly visible in campus placements. They now account for 25–35% of software engineering offers at leading institutions,accordingtoSanjuBallurkar, president of Experis IT India. Many are targeting jobready candidates with skills in product development, data and artificial intelligence. The shift is also evident in pay. IT services firms typically offerentry-level salaries in the `6-20lakhrange,butselectAIfocused startups are offering significantly higher packages—sometimes `20–40 lakh—for a limited number of hires.At top institutes,startup offers have reached `30–35 lakh, comparable to global technology firms. Industryestimates suggest startups could collectivelyhire 60,000–80,000 people this yearacross software engineering,product,data and AI roles, with campus hiring expected to grow 20–30% annually from a smaller base. Analysts say this marks a structural shift in the technology hiring model. Companies are moving away from volume-led recruitment towards capability-drivenhiring,building leanerteams and prioritising specialised skills. The result is a more fragmented but diversified ecosystem, where IT services firms, startups and global capability centres together shape entrylevel opportunities. NEW PUSH ■ The official, involved in Pakistani mediation efforts over the war, said Pakistan had received the proposal late on Thursday and had sent it to the US ■ Global oil prices, ■ President which remain well above $100 a barrel, eased after the news Brent Oil 108.29 (-1.91%) 10 pm IST Donald Trump's administration, meanwhile, is arguing that the war in Iran has already ended because of the ceasefire that began in early April ■ It would allow the White House to avoid the need to seek Congressional approval »INSIDE« NASDAQ , S&P 500 HIT FRESH HIGHS PAGE 7 since April 8 but reports that US President Donald Trump was to be briefed on plans for new military strikes to compel Iran to negotiate had pushed global oil prices up to a four-year high at one point on Thursday. Iran has activated air defences and plans a wide response if attacked, having assessed that there will be a short,intensive US strike,possibly followed by an Israeli attack, two senior Iranian sources told Reuters on condition of anonymity. Washington has not said what its next steps are.Trump said on Tuesday he was unhappy with the previous proposal from Iran, and Pakistan has not set a date for new talks on ending a war that has killed thousands, mainly in Iran and Lebanon. Continued on Page 7 LPG hike to hit labour-intensive manufacturing NARAYANAN V, NANDINI OZA & SAURAVANAND Chennai/Ahmedabad/ New Delhi, May 1 INPUT COSTS UP A STEEP HIKE of nearly50% in commercial LPG cylinderprices may disrupt downstream processesintextiles,leatherand tyre manufacturing. With the steepestpriceincreaseonrecord, the cost of a 19-kg cylinder has risenbyabout`993sinceMay1. Prices now stand at `3,071.5 in Delhi,with Chennai having the highestpriceat`3,237. However,the overall impact on manufacturing may be limited, given the sector’s low relianceonLPG.Bulksuppliesto industry account for less than 4% of total LPG sales by staterunoilcompanies. Apart from raising costs for restaurantsandhotels,theLPG price hike is set to add strain to some labour-intensive manufacturing sectors, already under pressure since August 2025 due to US tariffs and, more recently, disruptions linked to the Gulf conflict. Surat's man-made fibre (MMF) industry, for instance, was already grappling with elevated raw material costs due to crude-linked disruptions as higher LPG costs came as anotherblow. Mahendra Ramoliya,directoratSachinIndustriesAssociation,said LPG is used only for a day or two in a typical 45-day saree production cycle,but the pricespikewillstillsqueezemargins.Heallegedthatcommercial PSU sales % growth FY25* 31,190 Total LPG consumption (Thousand metric tonne) FY26* 5.66 32,956 LPG consumption LPG Packed Domestic 87.23 Auto LPG 0.21 LPG bulk 3.49 % share^ LPG packed non-domestic 9.07 *Provisional ^FY26 »INSIDE« LPG IMPORTS FALL 13% IN APR, 55% SINCE JAN P2 EDIT: FUEL PRICES AT PUMP MUST BE RAISED FAST P8 LPG cylinders are being sold for as much as `8,000 in the black marketsincetheWestAsiacrisis escalated.“We have no option buttobuy,orproductionwillsufferfurther,” he rues,adding that availability remains a key concernevenathigherprices. Continued on Page 7 First-timeuserskeepApple onagrowthpathinIndia APPLE CHIEF EXECUTIVE Tim Cook said on Friday that the company continues to see double-digit growth in India, describing the market as a huge opportunity driven by a rising middle class and low current penetration across product categories. “I am over the moon excited about India,” Cook said during the company’s fiscal second-quarter earnings call, adding that India is the world’s second-largest smartphone market and the third-largest PC market. “Despite doing extremely well there for quite some time, we still have a modest share. And so I think that really speaks to the opportunity that we have.” Cook, who is set to step down on September 1, will be succeeded by John Ternus. Cook said demand is being led by first-time users across devices. ■ PAGE 5