COMPANIES | PAGE 5 NEWS POINT | PAGE 18 boAt, Urban Company & 11 others get IPO nod INTERNATIONAL | PAGE 10 The Bollywood buffwho built an infotainment hub AHMEDABAD, WEDNESDAY, SEPTEMBER 3, 2025 Xi, Putin reaffirm 'old friend' ties amid US challenges FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XX 80, 54 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: 80,157.88 ▼ 206.61 NIFTY: 24,579.60 ▼ 45.45 NIKKEI 225: 42,310.49 ▲ 121.70 HANG SENG: 25,496.55 ▼ 120.87 `/$: 88.16 ▲ 0.04 `/€: 102.60 ▲ 0.76 BRENT: $68.48 ▲ $0.33 GOLD: `1,03,987 ▲ `18 IN THE NEWS Sebi imposes intraday limits on derivatives IN A SIGNIFICANT move to curb manipulation in the derivative market, Sebi has put out a detailed framework to monitor intraday positions in equity index derivatives, reports Nesil Staney. ■ P6 Festive demand drives up August two-wheeler sales MOTORCYCLE AND SCOOTER despatches to dealers rose for the second consecutive month in August as manufacturers bet on an expected surge in demand in the upcoming festive period, reports Swaraj Baggonkar. ■ P4 REFORMING GST-II For easier compliance The second in a 3-part series looks at how tax experts & industry executives think the reformed GST & compliance procedures must look like ■ P18 COAL,PREMIUMAPPAREL,EVs MAYMOVETO HIGHER SLABS Sweeping tax cuts on GSTCouncil agenda ● Two-day meet begins today PRASANTA SAHU New Delhi, September 2 THE PROPOSED RESTRUCTURING of the goods and services tax (GST) will see lowering of tax rates for items ranging from parantha and butter to washing machines and television sets; from toothpaste and shampoos to cement, small cars, bikes, and life and health insurance. However, the GST Council at its two-day »INSIDE« meet starting FM: NEXT-GEN Wednesday, GSTTO OPEN may also deUP ECONOMY cide to hike P7 taxes on a slew of items such as high-end apparel and cars, coal, online gaming, and even electric vehicles, as it seeks to contain the revenue loss from an instant consumption booster (see chart). Apart from streamlining the multiple slabs under GST into a two-pillar structure of 5% and 18%, a proposal to be considered bythe Centre-state Council at its 56th meet also includes a special rate of 40% on sin and luxury goods. Continued on Page 5 LIKELY RATE CHANGES FOR KEY ITEMS 5% to Nil Pre-packed/ labelled paneer 18% to Nil Indian breads (parantha, etc), life and health insurance 12% to 5% INDIA IS HOPEFUL that negotiations with the US on the bilateral trade agreement (BTA) will come back on track and both sides will sign the first tranche by November, as was originally envisaged. “Wehadalittlebitofgeopolitical issues overtaking trade negotiations with the US. I do hope things will get back on tracksoonandwewillconclude BTA by fall or November as was discussed by our two leaders,” commerceandindustryministerPiyushGoyalsaidataglobal investorconferenceonTuesday. Earlierin the day,the minister had said at a CII event that dialogue with the US on BTA continues despite US President Donald Trump’s statement on TruthSocialonMondayevening that the trade relationshipwith India has been a “totally one- 28% to 18% Small cars Lower GST likely on food items THE CENTRE IS said to have proposed cutting the rate on personal care items to 5% from 18%. This, with a likely cut for food & beverage items to nil & 5% may give a big boost to consumption, reports Viveat Susan Pinto. ■ P2 PIYUSH GOYAL COMMERCE & INDUSTRY MINISTER We had a little bit of geopolitical issues overtaking trade negotiations. I do hope things will get back on track soon »INSIDE« EASIER NOD LIKELY FOR FDI FROM CHINA PAGE 7 sided disaster”as its high tariffs have prevented American businesses from exporting to India. Later,in an interviewto Fox News, US treasury secretary Scott Bessent said,“at the end of the day India is the most 28% to 40% Assorted agri machinery, tractors, bio-pesticides Solar cookers and water heaters, bio gas plants, wind mills Most textile items, synthetic yarns, carpets, handicraft 5% to 18% Coal, lignite 12% to 18% Apparel above `2,500/piece (5% for lowerpriced items to continue) Man-made fibres may move to 5% IN A MAJOR boost to India’s $184billion textile and apparel sector, the Centre plans to slash GST on man-made fibres from 18% to 5%, addressing a long-standing duty inversion issue, reports Narayanan V. ■ P2 ● India’s smallest chiptodriveworld’s biggestchange:Modi OJASVI GUPTA New Delhi, September 2 12% to 5% Sugar confectionery, chocolates, corn flakes, pastry, cakes, biscuits, ice cream, talcum powder, tooth paste, hair oil, shampoo, etc Pan masala, caffeinated/ carbonated beverages, cigars, cigarettes First tranche of trade pact with US byNov,says Goyal MUKESH JAGOTA New Delhi, September 2 18% to 5% Condensed milk & milk beverages, butter, ghee, cheese, dates, citrus fruit, preserved fish, vegetables, animal fats/oil, drinking water in 20 litre bottles, tooth powder, utensils, bicycles, napkins, etc PM unveils next phase of semicon mission 18% to 5% Synthetic staple fibres 28% to 18% Air-conditioners, dish washing machines, TV sets, cement Cars, 2Ws may get cheaper BUYERS OF SMALL cars, SUVs, compact sedans and almost every kind of twowheeler can expect a big relief as the GST on them is set to be slashed to 18% from 28%, reports Swaraj Baggonkar. ■ P3 PRIME MINISTER NARENDRA MODI on Tuesday said India is moving into the next phase of itssemiconductormissionwith a sharper focus on chip design and intellectual property, promising a revamp of the design-linked incentive (DLI) scheme to give the country a strongerfootholdinthetrilliondollarglobal chip market. “The government will also give a new look to the designlinked incentive scheme. Our effortistodevelopIndianintellectual property in this sector,” Modi said at the fourth annual SemiconIndiaconference.“The dayis not farwhen the smallest chipmadeinIndiawilldrivethe biggest change in theworld.” TheDLIscheme,launchedin 2021 with an allocation of `1,000 crore,was designed to encouragestartupstobuildchip designs and own patents. But uptake has been slow,with just 23 projects approved so far. Industry leaders have long argued the subsidyof up to `15 crore per startup, along with a sales-linkedincentivecappedat `30 crore, was insufficient to attractdeeptechentrepreneurs. Bypromisingareset,thePM has indicated that these shortcomingswouldberemovedand PM Narendra Modi with Union minister Ashwini Vaishnaw at the inauguration of Semicon India 2025, in New Delhi on Tuesday PTI »INSIDE« ASML PITCHES FOR INDIA’S CHIP PUSH P4 TATA ELECTRONICS PARTNERS MERCK FOR DHOLERA UNIT P4 EDIT: INDIA NEEDS TO MOVE BEYOND THE BACK END P8 the programme would be aligned with the government’s larger ambition to shift India from being a talent reservoir to a creator of semiconductor IP. “Today, India contributes 20% of the world’s semiconductor design talent,” he said, urging smallfirmsandstartupstoseize the opportunity. “Design is ready. Mask is aligned. Now is thetimeforprecisionexecution and deliveryat scale.” “In the world of semiconductors, it is often said, ‘Oil is black gold,but chips are digital diamonds’.Oilshapedthepreviouscentury,butthepowerofthe 21st century is concentrated in the small chip,” he said, noting that the global semiconductor market has already reached $600 billion and is on course to cross $1 trillion. Continued on Page 10 TCS rolls out 4.5-7% pay hikes after delay URVI MALVANIA Mumbai, September 2 populous democracy in the world their values are more closer to ours than to China’s, than to Russia’s”.“I think at the end of the day,two great countrieswillgetthissolved.Butthe Indians have not been great actorsintermsofbuyingRussian oil and then reselling it, financing the Russian war effort in Ukraine.” AFTER MONTHS OF uncertainty, Tata Consultancy Services (TCS) has finally announced salary hikes for its employees,bringingsomerelief to its workforce. On Monday evening,incrementletterswere rolled out across the company, with an average hike of 4.5-7% fornearly80% of staff. Top performers, insiders said, received double-digit increases, though the bulk of the workforce will see incrementswithinthe4.5-7%band. The company did not reply to emailed queries till the time of going to the press. The payrevision,whilewelcome, remains modest compared to earlieryears. Continued on Page 10 Continued on Page 10 Delivery agents clock more hours but get paid less Festive grind forgigworkers ANEES HUSSAIN Bengaluru, September 2 ASBENGALURUCELEBRATED Ganesh Chaturthi recently, delivery platforms saw a sharp spike in orders for sweets,flowers and last-minute puja essentials. For delivery workers, it meant long hours, congested streetsandconstantordernotifications across multiple apps. Festival days, once a chance for shorter shifts and steady earnings,have now become the busiest and most demanding periods.Three years ago, delivery workers could make `600800 with around 20 orders in a day.Thisyear,manyareworking 14-15 hours and completing nearly double the number of deliveries,only to earn roughly the same amount. Analysts say that the imbalancereflectsadeepershiftinthe gig economy. Platforms are preparing to hire more than 260,000 seasonal workers this LITTLE TO CHEER ■ Platforms preparing to hire 20-25% more seasonal ■ Delivery workers made `600-800 with around 20 orders workers this festive season than last year in a day three years ago ■ As a result, workers face falling per-order payouts and rising workload ■ This year, many are working 14-15 hours completing nearly double deliveries to earn same amount festive season—a 20-25% rise fromlastyear.Butwhilecompaniescelebratethegrowth,workers face falling per-order payouts and risingworkload. Data from staffing firms showthat during festiveweeks, gig workers deliver 60-80% more orders daily compared with regular days.Yet per-order payouts have fallen by as much as 25% overthe pastyear. “Quick commerce is leading the surge with a projected 3540%increaseinhiring,whileecommerce is set to expand by 25-30%,”said Deepesh Gupta, director and head of general staffingatAdeccoIndia.Butthis demandispairedwithdeclining uniteconomics.“Duringthefestive season, gig workers are expected to handle 22-32 orders on average perday,com- pared to 12-18 orders during regularmonths,” he added. Per-orderratesinquickcommerce have seen the steepest drop. Gupta said that payouts, which ranged between `34 and `42 in 2024, have slid to `22-30 in 2025, with some platforms paying as little as `15-25 perdelivery. Continued on Page 10 Ahmedabad