ECONOMY | PAGE 2 EFE | PAGE 9 FTAs give respite to India as EU, UK impose steel quotas BACK PAGE | PAGE 24 Intel sees growth potential in robotics, enterpriseAI NEW DELHI, THURSDAY, JULY 2, 2026 US govt lifts curbs on Anthropic'sAI models FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL LII NO. 106, 34 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: 76,922.64 ▲ 443.97 NIFTY: 24,005.85 ▲ 140.10 NIKKEI 225: 70,474.96 ▲ 412.64 HANG SENG: 22,881.02 ▼ 145.66 `/$: 95.24 ▼ 0.48 `/€: 108.47 ▼ 0.57 BRENT: $71.97 ▼ $0.98 GOLD: `140,269 ▼ `595 ECONOMY PAGE 11 MANUFACTURING PMI INJUNE FALLS TO 3-MONTH LOW THE GROWTH IN India’s manufacturing activity eased in June, as new business orders and international sales increased at softer rates, reports PTI. The HSBC India Manufacturing PMI fell from 55.0 in May to 54.2 in June. Airlines unbundle fares to woo passengers DOMESTIC AIRLINES ARE increasingly unbundling their products to cater to different categories of travellers, offering stripped-down fare options that lower the entry ticket price while charging separately for services such as checked baggage and meals, reports fe Bureau. IndiGo has rolled out an entry-level fare category for economy passengers. ■ PAGE 4 Banks mull scaling up non-financial entities’ deposits BANKSARE LOOKING to scale up deposits from non-financial entities after the revised liquidity coverage ratio norms provided more favourable treatment to such funds.The move is also expected to open up fresh business opportunities for lenders, reports Christina Titus. ■ PAGE 6 SANDIP DAS New Delhi, July 1 firm eyes $100 m fund raise POULOMI CHATTERJEE Bengaluru, July 1 RELIANCE INDUSTRIESBACKED ROBOTICS and industrial automation companyAddverb plans to launch a fully two-legged humanoid robot by the end of 2026 as it expands beyond warehouse automation into advanced robotics,a segment expected to see rapid growth globally over the next decade. The Noida-based company, which is also looking to raise $100 million, plans to begin customer trials and proof-ofconcept deployments of the humanoid next year before scaling commercial deployments, Prateek Jain, cofounder and chief operating ■ One of the government's primary ■ WhatsApp on Monday unveiled usernames as a way for users to connect without mobile numbers THE GOVERNMENT ON Wednesday asked Meta to put on hold the rollout of WhatsApp's proposed usernames feature in India and sought a detailed explanation from the company within three days, signalling heightened regulatory scrutiny of the privacyfocused feature, sources familiarwith the matter said. The ministryof electronics and information technology (MeitY) has issued a notice to Meta directing it not to roll out the feature until consultationswith the government are completed. Officials are examining whether the move raises legal and regulatory issues, particularly around cybercrime investigations, impersonation, online fraud and intermediaryobligations, sources said. WhatsApp on Monday unveiled usernames as a new way for users to connect without sharing their mobile numbers. The feature, which is being rolled out globally in phases, is intended to enhance privacy by allowing users to communicate through unique handles instead of phone numbers. According to sources, one of the government's primary concerns is whether replacing phone numbers with user- names as the public-facing identity could complicate cybercrime investigations.At present,complaints involving WhatsApp accounts are typically linked to a mobile number, which serves as the first point of identification for law enforcement agencies. Officials are also assessing whether the feature could become a fresh avenue for impersonation and phishing. Similar-looking usernames could potentially be used to mimic banks, government departments, companies or public figures,increasing the risk of financial fraud at a Re breaches 95 after 3 weeks, falls 58 paise Indirectreceiptof publicfundsclause backforUL-NBFCs CHRISTINATITUS Mumbai, July 1 THEINDIANRUPEEfell58paise onWednesday,itsbiggestsingledaydeclinesinceJune8,breachingthe95-per-dollarmarkagain asittrackedbroaderweaknessin Asiancurrenciesandastrengthening dollarindex despite lower crude oil prices. Falling for the third consecutive day,the rupee closed at 95.24 against the dollar,itslowestlevelinthreeweeks. Thedollarindex,whichmeasures the US currency against a basket of six major currencies, rose around 0.3% to 101.45.It has gained nearly 2% over the pasttwoweeks,supportedbyrisingUSTreasuryyieldsandgrowing expectations of a hawkish stancefromtheFederalReserve. Continued on Page 7 Addverb takes a humanoid leap ● Reliance-backed RUNNING INTO AWALL PRATEEK JAIN, CO-FOUNDER AND CHIEF OPERATING OFFICER, ADDVERB Humanoidsarea naturalextension oftheautomation journeywehavebeen onforthelastdecade officer,told FE. "Humanoids are not a pivot forus.Theyareanaturalextensionoftheautomationjourney we have been on for the last decade,"Jain said. Continued on Page 7 concerns is whether usernames, as the public-facing identity, could complicate cybercrime investigations ■ Similar- looking usernames may be used to mimic public figures ■ Meta recently appointed Kunal Shah as the global head of WhatsApp ■ The move signals heightened regulatory scrutiny of the privacyfocused feature, experts said EXPLAINER:WHYTHE GOVTISWARY P9 »INSIDE« ● ForTata Sons, reprieve proves short-lived KSHIPRA PETKAR Mumbai, July 1 THE RESERVE BANK of India (RBI) has restored the definition of “indirect receipt of public funds” in its master directions for classifying upper-layer NBFCs. In a footnote added on Wednesday to its June 24 circular,the RBI reintroduced the definitionof indirect receipt of publicfundsas“fundsreceived not directly but through associatesandgroupentitieswhich have access to public funds”. time when cybercrime through messaging platforms is on the rise. The ministry is also examining whether existing intermediary obligations adequately address disputes over usernames, including the removal of fake or misleading handles and protection of trademarks and brand identities. The review is understood to focus on the operational impact of the feature rather than WhatsApp's endto-end encryption, which remains unchanged. Continued on Page 5 GSTmop-upgrowsatarobust14% FE BUREAU New Delhi, July 1 ON A STRONG FOOTING GROSS GOODS AND services tax (GST) collections rose 14% year-on-year to `1.95 lakh crore in June (May transactions), marking the highest growth rate so far in the currentfinancialyearandindicating a stronger and more predictable revenue base. Onasequentialbasis,collections were only marginally higherthanthe`1.94lakhcrore recorded in May (April transactions),yetreflectedtheresilience of Indian businesses despite headwindsarisingfromtheUSIran conflict. Net GST revenue (afterrefunds)increased11.2% to `1.62 lakh crore in June, despite a 29% jump in refunds to`32,436crore. The gross collections comprised Central GST (CGST) of `37,376crore,StateGST(SGST) of`45,116croreandIntegrated GST (IGST) of `1.12 lakh crore. Gross GST revenue from imports surged 34.6% to `60,038 crore, while gross domesticrevenuegrew6.5%to `1.35lakhcrore. "What stands out is the 34.6% growth in gross import revenue,significantlyoutpacing the 6.5% growth in domestic collections,reflectingsustained import activity despite an uncertain global environment," said Ikesh Nagpal,lead-indirect tax,AKMGlobal. Equallyencouraging,hesaid, is that the robust growth came alongside a 29.1% increase in refunds,indicating that higher revenue collections were achievedwithoutaffectingbusinessliquidity. "Whiletheheadlinegrowth is impressive,it has been aided significantlybyhigherimportrelated GST collections. The focus now should be on accelerating domestic economic activityandfurtherimproving compliance to sustain this momentum," said Pratik Jain, partner, Price Waterhouse & Co LLP. Continued on Page 7 The omission of this clause first mentioned in an April 29 circular had been interpreted by some observers as a partial relief to Tata Sons which has been opposing listing. But the reprieve has proved to be short-lived. Besides the public funds criterion, the asset size threshold forclassification as an upper-layer NBFC remains at `1 lakh crore. Tata Sons had assets under management of `1.75 lakh crore as of FY25. The RBI said the `1 lakh crore threshold was decided based on the current profile of the NBFC sector and an analysis of the financial profile of existing upper-layer NBFCs. Gross GST collections ` lakh crore 3 0 (after refunds) increased 11.2% to `1.62 lakh crore in June Growth, %, yoy (RHS) 16 14 ■ The collections comprised CGST of `37,376 crore and SGST of `45,116 crore 12 2 1 ■ Net GST revenue 8 8.7 4 2 March April May 1.95 June 0 Source: Finance Ministry 34.6% 8.4% Gross import revenue growth GST growth in Q1FY27 on year At nearly 400,000 units,car sales move in the fast lane AKBAR MERCHANT Mumbai, July 1 SMOOTH RIDE PASSENGER VEHICLE WHOLESALES rose 24.1% year-on-year to 397,607 units in June, driven by robust demand for SUVs and an improving small-car segment, even as automakers cautioned that geopolitical tensions, higher fuel prices and a deficient monsoon could weigh on demandinthecomingmonths. The month also saw Hyundai Motor India lose ground because of production disruptions following a fire at a supplier's manufacturing facility. MarutiSuzukiIndiaretained itsleadershipwithdomesticpassengervehiclesalesrising23.7% to 147,187 units. Entry-level modelsAltoandS-Pressoposted a sharp 78% jump to 11,416 units, while sales of compact cars, including Baleno, Swift, Dzire and WagonR, increased 15.6% to 63,815 units. Utility vehicles remained the biggest growthdriver,withdispatchesof Brezza, Fronx, Grand Vitara, e Vitara,Ertiga,Jimny,Invicto,Victoris and XL6 rising 28.7% to 61,726units. "The tailwinds of GST 2.0, income tax relief on income up Domestic sales (June 2026) Maruti 23.7 Suzuki Change (%, y-o-y) 147,187 Tata Motors 67 62,076 Mahindra & Mahindra 28 60,393 Hyundai Motor India 10 Toyota Kirloskar Motor 39,635 28,441 8 JSW MG Motor India 29.8 Nissan Motor India 129 7,568 3,006 »INSIDE« HERO HOLDS 2W LEAD AS HONDA CLOSES THE GAP P4 EV MAKERS POSTS RECORD QTR AS BUYERS SHIFT P4 to `12 lakh and RBI repo rate cutscontinuetodrivedemandin the domestic market," Maruti Suzuki senior executive officer (marketing & sales) Partho Banerjee said.He,however,cautioned that the Iran conflict,its impactonvehiclepricesandthe deficient monsoon remain emerging risks that warrant closemonitoring. Banerjee said higher fuel prices increase the total cost of ownership, with the impact more pronounced in the entrylevel segment. However, he noted that the company has increased supplies of CNG variantsastheirlowerrunningcosts continuetoattractbuyerswhen petrolpricesrise. TataMotorsretaineditsposition as the country's secondlargest passengervehicle maker afterreportingdomesticwholesales of 62,076 units, up 67% year-on-year. Continued on Page 5 ● JAPANESE PM IN INDIA,TO HOLDTALKSWITH MODI PTI Japanese Prime Minister Sanae Takaichi arrived in New Delhi on Wednesday on a three-day visit to India, during which she will hold talks with Prime Minister Narendra Modi. "A very warm welcome to India, Prime Minister Sanae Takaichi,” Modi posted on X. REPORT, PAGE 2 Continued on Page 7 Sharper slowdown in sectors exposed to foreign trade but GCCs buck the trend with 11% rise in hiring White-collarhiringdipsforfourthstraightmonth MANU KAUSHIK New Delhi, July 1 INDIA'SWHITE-COLLAR HIRING has suffered a sustained slowdown after touching a high in February,with companies pulling back on fresh recruitment. According to the latestfounditreport,thehiring index has fallen for four consecutive months– from 404 in Februaryto 385 in March,370 in April, 348 in May and further to 331 in June.This represents an 18% decline from the February peak. HiringinJunewas9%lower than a year ago and 5% below May,signallingthatemployers have become increasinglycautious amid an uncertain business environment. OFF THE PEAK IN FEB 500 7 400 6 200 0 -5 Feb Mar Apr May 2026 Source: foundit was 9% lower than a year ago & 5% below May ■ The adverse Hiring Index (LHS) 6 300 100 ■ Hiring in June 10 White-collar recruitment 331 INDIA'S IT SERVICES companies are expected to report another subdued quarter for the April-June period, with weak discretionary spending, delayed client decision-making and uncertainty around artificial intelligence (AI) continuing to weigh on revenue growth, analysts said, reports Urvi Malvania. Govt’smessageto WhatsApp:Pause 348 ITSERVICES FIRMS FACEANOTHER SOFTQUARTER 0 370 PAGE 4 385 385 COMPANIES MEITYSEEKSREPLYIN3DAYSONUSERNAMEMOVE 404 4 IN THE NEWS -9 Jun The slowdown has been mostvisible in sectors exposed to international trade, the report showed, reflecting the adverse effect of geopolitical turbulence on the Indian job % chg (m-o-m, RHS) % chg (y-o-y, RHS) 2 -2 -6 -10 market. In June, for instance, import & export sector hiring dropped 30% year-on-year, the steepest decline among all industries tracked,continuing the trend seen over the past impact is due to the geopolitical turbulence on the Indian job market ■ Hiring index at 331 represents an 18% decline from the Feb peak few months. “The pullback reflects softer external trade volumes, tighter shipment activity, and reduced hiring bycustoms and trade-compliancefunctionsas cross-border movement of goods cools. The decline (in import &export) sitsalongside similarly steep falls in chemicals & plastics (-28% year-onyear) and logistics & transportation (-23%) – three sectors whose fortunes are tightly linked to the same underlying trade and manufacturing cycle,” the report noted. Other sectors that have registered a considerable fall in hiring include retail (-18% year-on-year),energy (-12%), BFSI (-9%) and IT Software & Services (-6%).“The pullback is broad-based: most industries and functions softened month-on-month.A handful of consumer- and care-led sectors are still growing, but New Delhi they aren't enough to offset declines in IT services, BFSI, retail and outsourcing,” the report stated. However, India's Global Capability Centre (GCC) story continues to run against the wider trend. The report said that GCC hiring rose 11% year-on-year in June, and the sector is projected to reach 510,452 jobs in 2026, a 12% increase over last year. India's GCC hiring has jumped 3.4 times since 2021, reaching 227,991 jobs in the first half of 2026 alone, while the number of GCCs has expanded to around 2,120, according to the report. Continued on Page 7