COMPANIES | PAGE 6 EXPLAINER | PAGE 11 iPhone 18 Pro supplier list exposed inTata data leak INTERNATIONAL | PAGE 9 The twists and turns in Delhi’s EVroad map CHENNAI/KOCHI, WEDNESDAY, JULY 1, 2026 Witkoff andKushnersetto holdindirecttalkswithIran FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XLVII 47, 32 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: 76,478.67 ▼ 249.70 NIFTY: 23,865.75 ▼ 80.50 NIKKEI 225: 70,062.32 ▲ 594.51 HANG SENG: 22,881.02 ▼ 145.66 `/$: 94.67 ▼ 0.13 `/€: 107.90 ▼ 0.09 BRENT: $73.21 ▼ $0.06 GOLD: `140,864 ▼ `204 ECONOMY PAGE 2 RISKSTO MACRO OUTLOOK EASING: FINMIN REPORT THE CESSATION OF the conflict in West Asia has significantly improved India's macroeconomic outlook by easing risks to growth, inflation and the external sector, finance ministry economists said, reports fe Bureau. » NEWS POINT « HDFC BANK HOPESTHE FORMER POLL PANELCHIEF CAN STEADY THE SHIP. PAGE 24 Integrated cover for pension, health in 60-70 days PFRDACHAIRMAN S RAMANN on Tuesday said the proposed NPS Swasthya Pension Scheme will roll out in the next 60-70 days, introducing a product that combines retirement savings with health insurance to help subscribers meet the cost of major medical emergencies, reports fe Bureau. ■ PAGE 3 Govt raises petrol export duty, levy on diesel, ATF cut THE CENTRE ON Tuesday raised the export duty on petrol while lowering levies on diesel and aviation turbine fuel for the fortnight beginning July 1, reports Saurav Anand. ■ PAGE 2 » INSIDE « THE ECONOMICS OFAI, WRITES SAUMITRABHADURI PAGE 10 afterMeity, finance ministry finalise contours PRASANTA SAHU New Delhi, June 30 KEY FOCUS AREA ■ Much of the original incentive corpus has already been committed, necessitating a second phase of the programme ■ The proposed outlay is about 64% higher than the `76,000 crore corpus approved for ISM 1.0 in December 2021 ■ The higher allocation underscores the government's intent to move beyond attracting a handful of fabrication and packaging units THE GOVERNMENT'S SEMICONDUCTOR ambitions are set fora majorexpansion,with the expenditure finance committee (EFC) underthe finance ministry clearing a proposal for a `1.25 lakh crore outlay under India Semiconductor Mission (ISM) 2.0, significantly higher than the `76,000 crore allocated under the first phase of the programme. The proposal, however, will require Cabinet approval before the second phase of the incentive scheme is formally rolled out. Officials in the ministry of electronics and information technology (MeitY) said discussions are still underway with the finance ministry on the final outlay and subsidy structure. The proposal will be placed before the Union Cabinet once those are ■ ISM 1.0 has so far resulted in the approval of 12 semiconductor projects involving investments of around `1.64 lakh cr finalised. The higher allocation underscores the government's intent to move beyond attracting a handful of fabrication and packaging units to building a broader semiconductor ecosystem spanning chip design, materials, equipment, packaging and talent development. The proposed outlay is about 64% higher than the `76,000 crore corpus approved for ISM 1.0 in December 2021. Under the first phase, the Centre offered fiscal support of up to 50% of eligible project costs for semiconductor fabs, display fabs, compound semiconductor facilitiesandassembly,testing, marking and packaging (ATMP/OSAT) units. Continued on Page 9 Adaniarminks$1.4-bnport dealwithSwissgiantMSC RAGHAVENDRA KAMATH Mumbai, June 30 INTHELARGESTforeignprivate investment in Indian ports segment,Swisstransportandlogistics conglomerate Mediterranean Shipping Company (MSC) will acquire a 49% stake inAdaniVizhinjamPort(AVPPL), theconcessionaireforVizhinjam port in Kerala,Adani Ports and SEZ(APSEZ)saidonTuesday. The acquisition will be through MSC’s arm Terminal Investment (TiL),which as per the dealwill invest $1.39 billion (over`13,000crore)inAVPPLfor a49%stake.Thetotalvaluation of AVPPL is estimated at $2.85 billionforthedeal. APSEZ and MSC have entered into a definitive agreement for the deal which will be subjecttocustomaryapprovals, including regulatory ones, the Adani Group arm said. “Vizhinjam port has emergedasapremiertransshipment hub and ramped up at an unprecedentedpace,becoming the first Indian port to earn the AFTER A PARTICULARLY dry June,monsoon rains are likely to be below par in July, the wettest period in the fourmonth season through September, which accounts for over 70% of the country's annual precipitation. The India Meteorological Department (IMD) on Tuesday forecast'below-normal'rainfall of less than 94% of the benchmark long period average (LPA) for July, citing El Nino conditions evolving over the Pacific Ocean. However, east-central India and the eastern peninsular region may see normal to above-normal rainfall, the IMD stated. Rains in July are crucial for boosting kharif sowing and replenishing 8,741 points 76,478 June 30, 2026 (10.26%) June rain deficit (% deviation from LPA) July rainfall (% of LPA) 2023 112.8 108.6 2024 104.8 2025 Less than 94 2026* *forecast largest shipping transport and logistics conglomerate »INSIDE« JFE STEELTO RAISE STAKE IN JSW JFE KALINGA P6 KOTAK BANKTO BUYPART OFDEUTSCHE’S INDIABIZ P8 uniquedistinctionofcrossing2 millionTwenty-footEquivalent Unit(TEUs)within18monthsof operations,” said Ashwani Gupta,whole-timedirectorand CEO,APSEZ. “ I am confident that our associationwilldeliverenhanced supply chain efficiencies at a reservoirs. “In the first half of July, adequate rainfall is forecast especially in the rainfed monsoon core region of central Indiawhich is expected to give a boost to paddy and other crops sowing,” Mrutyunjay Mohapatra,directorgeneral of ■ The total valuation of AVPPL is pegged at $2.85 bn global scale and improve India’s access to key global mature and developingmarkets,”hesaid. The collaboration between APSEZ and MSC Group will deliversignificantadvantagesfor APSEZ,including increased volume visibility and accelerated ramp-upaheadofplan,drivenby additionalcargovolumes,higher share of Bangladesh cargo, , strengthening presence on East Africatraderoutes,elevatedrelay cargovolumes,APSEZadded. Continued on Page 9 Ad veterans blame ‘scam ads’, weak ideas and a loss of consumer focus India’sCannescollapsesparks adindustry’ssoul-searching CHRISTINA MONIZ Mumbai, June 30 INDIA'S ADVERTISING INDUSTRY is facing its biggest creative reckoning in years after recording its worst performance at the Cannes Lions International Festival of Creativity, winning just two Silver and three Bronze Lions against 32 awards a year ago. The dramatic fall has triggered intense soul-searching within the industry,with leading advertising professionals warning that the setback is not simplyabout a pooryearat the world's biggest creative awards, but reflects a deeper crisis of credibility,originality and relevance. “The biggest concern for our industry today is credibility,”said Sandeep Goyal,managing director of Rediffusion. NARESH GUPTA, CO-FOUNDER & CHIEF STRATEGY OFFICER, BANG IN THE MIDDLE As a collective industry,we have forgotten how to charm the customer SANDEEP GOYAL, MANAGING DIRECTOR, REDIFFUSION Campaigns created purely for awards with little or no real impact hurt the credibility of the entire industry »INSIDE« ORIGINALTHINKING NOW MOSTVALUABLE CURRENCY: DHRUV SACHDEVA P11 Goyal pointed to last year's biggest Indian winner — FCB India’s “Lucky Yatra” campaign for Indian Railways, which won nine Lions, including a Grand Prix — but later came under scrutiny after critics questioned the extent of its real-world exe- cution and consumer impact. “Campaigns created purely forawardswith little orno real impact hurt the credibility of the entire industry. This is a matter of ethics,” Goyal said, warning that unless the trend is reversed, India could see fewer entries — and fewer 39.8% 2026 Reservoir water level 26% of capacity (as on June 25) wins — in the years ahead. For many industry veterans, Cannes 2026 has exposed a problem that has been building foryears: agencies chasing award juries instead of consumers. Continued on Page 9 CHENNAI/KOCHI meteorology,IMD said. Central India accounts for a third of the area under main kharif crops, namely paddy, pulses and oilseeds. Kharif sowing till last Friday was 23% down on year. Continued on Page 9 H1 2025 2026 (in ` cr) DIIs KHARIF SOWING DOWN 23% PAGE 3 Shipping Company (MSC) will make the acquisition through its arm Terminal Investment (TiL) for ■ The deal is the largest foreign private investment in Indian ports segment H2 Net equity investments BLEAK PICTURE »INSIDE« H2 2024 FPIs Julyrainforecastbelowpar SANDIP DAS New Delhi, June 30 H1 -1.1 2023 ■ Mediterranean ■ MSC is the world's H1 H1 DEAL HUNTING $1.39 bn H2 -10.3 Dec 31, 2025 7.0 85,220 1.9 Sensex returns (%) *up to June 29 Apr May Jun* IN THE NEWS ● Cabinet approval Sensex 69,221 38,423 142,960 51,064 82,669 78,958 www.tmb.bank.in | Toll-free: 180 0425 0426 SENSEX DECLINED 10.26% during January-June 2026, weighed down by concerns over US tariffs,AI-led disruptions, and theWestAsia crisis.The period »INSIDE« marked its worst halfTOP WEALTH yearly performance in CREATORS six years, reports Kishor AND Kadam. Despite the LAGGARDS sharp correction in PAGE 8 benchmark indices, investor wealth declined by a relatively modest `1.72 lakh crore to `474.07 lakh crore during the first half of 2026. Jan Feb Mar 7.75%* % Semicon II may get 64% more 9.4 WITH TMB'S 567 DAYS DEPOSIT SCHEME *T&C Apply 11.6 Tenor: 567 Days STREET'S H1 RETURNSWORSTIN SIX YEARS 6.4 DEPOSIT SCHEME MORE RETURNS. MORE REASONS TO SMILE. SCHEMEGETSGOVTPANELNODFOR`1.25L-CROUTLAY Jan -29,487 Feb 15,242 Mar -112,307 Apr -68,872 May -46,889 Jun* -19,241 Tamilnad Mercantile Bank 2026 QUICK PICKS Financial risks contained: RBI INDIA’S FINANCIAL SECTOR stability risks remain contained, but recurring external shocks could spill over and affect the macroeconomic outlook,the Reserve Bank of India said in its Financial Stability Report, released on Tuesday, reports fe Bureau. ■PAGE8 Call for gold loan vigilance THE RAPID GROWTH in gold loans amid elevated price volatilitymeritscontinuedvigilance, the RBI has said. Gold loans have become the biggest category in non-housing retail lending, expanding at a CAGR of 42.4% since March 2024, reports fe Bureau. ■PAGE 8