BACK PAGE | PAGE 14 COMPANIES | PAGE 4 Salman aims for the stars with Sikandar INTERNATIONAL | PAGE 7 IHCLtoopen30 hotelsnextyear Xiwoosglobalbusinesses amidTrump’stradewar HYDERABAD, SATURDAY, MARCH 29, 2025 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. NO. XXI 282, 14 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: 77,414.92 ▼ 191.51 NIFTY: 23,519.35 ▼ 72.30 NIKKEI 225: 37,120.33 ▼ 679.64 HANG SENG: 23,426.60 ▼ 152.20 `/$: 85.46 ▲ 0.33 `/€: 92.09 ▲ 0.33 BRENT: $73.66 ▼ $0.37 GOLD: `88,691 ▲ `579 Tariffcutsonfarmimports& Govtnodto`22,919-cr LNGtaxremovalonthetable SCHEMETOATTRACTINVESTMENTOF `59,350 CRORE Follow us @PSBIndOfficial Unreported income in returns filed earlier need to be disclosed ■ PERSONAL FINANCE, P9 THE CABINET COMMITTEE on Security approved the biggest-ever defence deal on Friday to buy 156 light combat helicopters (LCHs) worth over `62,700 crore for the IndianArmyandAirForcefromstaterun HindustanAeronautics (HAL). Out of 156 LCHs,66 LCHs will be supplied to the Indian Air Force and 90 to the Indian Army, the government said in a statement.The choppers,knownasPrachand,willbebuilt at HAL plants in Bengaluru and Tumkurin Karnataka. The supply of these helicopters shall commence from the third year and will be spread over the next five years.The contractswill enhance the combatcapabilityofthearmedforces at high altitudes. LCH is India’s first indigenously India leads Asia with $2.1-bn FPI inflows FPI inflows/outflows during the week in $million Source: Bloomberg Taiwan FOREIGN PORTFOLIO INVESTORS bought shares of Indian companies worth $2.1 billion during the week, the highest among Asian markets (excluding China, Japan). However, they remain net sellers of Indian equities, with outflows totalling $25 billion in the current calendar year. Apart from India, Indonesia was the only otherAsian country to receive FPI inflows, amounting to $196 million this week. Meanwhile, Taiwan recorded the highest outflows of $2.6 billion, followed by South Korea ($231 million) and Malaysia ($174 million). The Indian benchmark indices had corrected by up to 15% from their peak in late September before the recent uptrend, creating buying opportunities for foreign investors. -- KISHOR KADAM -2606.3 File updated ITR before March 31 designedanddevelopedcombathelicopter,having a capabilityof operating at an altitude of over 5,000 meters. This helicopter has a large number of components designed and manufactured in India,and it is plannedtoachieveanoverallindigenouscontentof65%andaboveduring the execution of this procurement. Thiswillinvolveover250domestic companies, mostly MSMEs and willgenerateover8,500direct&indirect jobs,the government said. The total number of contracts signed by the defence ministry during2024-25reached193withoverall contract value exceeding `2.09 lakh crore,which is the highest ever andnearlydoubletheprevioushighest figure.Out of these,the contracts to domestic industry are 177 (92%) with a contract value of `1.69 lakh crore (81%). South Korea FE S P E C I A L FE BUREAU New Delhi, March 28 -231.1 KIA INDIAWILL need to invest `1,400 crore in FY26 to secure incentives under the `25,938 crore PLI-Auto scheme for the automobile & auto components sector. ■ PAGE 4 Cabinetclearsrecorddefence dealsworth `62,700crore Malaysia Kia needs to invest `1,400 cr in FY26 to retain PLI incentives Continued on Page 7 government's ambition to double the country's electronics exports within the next threeand-a-half to four years, from the current `2.5 lakh cr -173.6 SEBI ON FRIDAY asked stock exchanges to monitor the existing position limits for index derivatives on an intra-day basis from April 1, but there will be no penalties for breaching these limits until further notice, reports PTI. ■ PAGE 6 ■ Vaishnaw also outlined the Vietnam No fine for breach of index derivatives’ intra-day limits While active components will be covered under the semiconductor mission, the electronics component scheme will drive passive component manufacturing -81.8 THE NATIONAL FINANCIAL Reporting Authority (NFRA) has flagged concerns on the independence of EY-affiliate firm SRBC & Co in its latest inspection report, reports Manu Kaushik. ■ PAGE 2 duration, the programme is expected to create 91,600 jobs Thailand NFRA finds audit gaps, ‘independence concerns’ at EY firm ■ Over its -54.5 APOWERFUL EARTHQUAKE rocked Myanmar and neighbouring Thailand on Friday, destroying buildings, a bridge and a dam, reports AP.At least 144 were killed in Myanmar, where photos and video from two hard-hit cities showed extensive damage. ■ PAGE 7 scheme, spanning six years, will generate electronic products worth `4.6 lakh crore Philippines Over 140 dead in Myanmar, Thailand after huge quake ■ The ASHWINI VAISHNAW, ELECTRONICS AND IT MINISTER -35.3 IN THE NEWS INAMAJOR push to strengthen the country's electronics manufacturing ecosystem, the Union Cabinet on Fridayapproved a `22,919 crore incentiveschemeaimedatboosting domestic production of key electronic components. The scheme, spanning six years, is designed to attract investments of `59,350 crore and generate electronic products worth `4.6 lakh crore. Announcing the decision, electronics and IT minister Ashwini Vaishnawsaidthescheme’srolewill be to enhance local production while also setting employment targets. Over its duration, the programme is expected to create 91,600 jobs,Vaishnaw said. Theschemeoffersthreeprimary incentives: employment-linked benefits, capital expenditure support, and turnover-based incentives. These will support the productionofvitalcomponentssuchas printed circuit boards, lithium-ion batterycells,sub-assembliesfordisplay and camera modules, and enclosures formobile and electronics hardware. Each category will have pre-defined turnover targets, determining the incentive structure,which aligns with the broader semiconductor incentive framework already in place. Additionally,theschemeaimsto localise production of capital goods and components essential formanufacturing, with capital expenditure-based incentives. However, as per a government official, these incentives will be capped at under 50% of the firm’s investment. “In just 10 years of domestic manufacturing, we have achieved 20% value addition. OUTPUT BOOSTER 195.9 1800 419 8300 (Toll Free) a Indonesia / nearest branch FE BUREAU New Delhi, March 28 2,111.0 Visit our website: https://punjabandsindbank.co.in PLIforelectronicsparts India ia 8.49 NIDHI VERMA & MANOJ KUMAR New Delhi, March 28 THE GOVERNMENT HAS offered tariff cuts on imports of US farm products like almonds and cranberries as a further concession to the United States, sources said, hoping to avert President Donald Trump's reciprocal tariffs set for next week. There is also a proposal to scrap import tax on US liquefied natural gas (LNG) to boost purchases and help cut the trade surplus with Washington, a key irritant for Trump, sources said. »INSIDE« Unlike China, NITI AAYOG: Canada and the US MOVE European Union, TO BENEFIT India is actively INDIA seekingtoappease PAGE 3 theTrump adminEDITORIAL: istration and is OPPORTUNITY open to cutting INADVERSITY tariffs on over half PAGE 8 of US imports worth $23 billion, Reuters reported earlier this week. In a series of meeting in New Delhi with Brendan Lynch, the assistant US trade representative for South and Central Asia, India agreed to cut tariffs on bourbon whiskey and agricultural products such as almonds,walnuts,cranberries, pistachios and lentils, a source familiarwith discussions,said. The talks to fast-track negotiations will conclude on Saturday. Continued on Page 12 DEAL-IN-PROGRESS ■ US is India's second biggest LNG supplier, and the imports attract a 2.5% basic customs duty and an additional 0.25% social welfare tax ■ In a series of bilateral meetings, India has agreed to cut tariffs on bourbon whiskey and agricultural products such as almonds, walnuts, cranberries, pistachios and lentils ■ India is seeking greater market access for shipments of fruits like pomegranates and grapes besides rice to the US market. TradepacttalkswithUS teamextendedtilltoday FE BUREAU New Delhi, March 28 THE TALKS BETWEEN India and US on the contours of a Bilateral Trade Agreement (BTA) could not be concludedonFriday,officialsourcessaid, addingthatbothsideswerehopingto wrapupthediscussionsonSaturday. Boththesidesagreedanothersession was required to cover as much groundaspossiblebeforethevisiting US delegation, led by Assistant US Trade Representative for South and CentralAsiaBrendanLynch,leaves. Bothsidesarepiningalotofhopes on the BTA parameters even as the Banking liquidity hits three-month lowof `13Kcrore SACHIN KUMAR Mumbai, March 28 CASH FLOW THELIQUIDITYDEFICITinthebanking system fell to `13,000 crore on Thursday,its lowest since December 16. Experts say the worst of the liquiditydeficit maybe overand expect it to turn surplus in the first quarter. The Reserve Bank of India (RBI) conducted a five-day variable rate repo (VRR)auctionwithanotifiedamount of `1 lakh crore on Friday, which received bids worth `38,423 crore only,reflectinglowdemandforfunds from banks. “Based on our current assumptions,durableliquidityisexpectedto remain in surplus over next few quarters assuming OMOs (open market operations) of `0.5-1 lakh crore,RBIdividendofapproximately `2.5 lakh crore or more,rolling over of maturing forwards position and balanceofpaymentsurplusof$5-15 billion in FY26,” Anubhuti Sahay, head,India,economicresearch,Standard Chartered Bank, said. “RBI’s bold and swift action also assures of more action if needed and thus one can say that worst on liquidity is probablybehind us.” Sahaynotedthatnotedthatakey risktotheoutlookisifthesizeofforex intervention turns out to be much larger than liquidity injections via various sources. ■ There is still resistance in government circles to lowering tariffs for dairy products, rice, wheat and maize DonaldTrumpadministrationisbent onimplementingreciprocaltariffson theUS'tradingpartnerseffectiveApril 2.Officialsrefusedtoelaborateonthe key areas of agreement or discord regardingtheBTAtalks. Ajointstatementisexpectedafter today'sfinalsession,thesourcessaid, without indicating the extent of progressintalks. Apartfromcontoursoftheagreement, the talks which started on Wednesday,are also aimed at fixing theschedulefordetailednegotiations onBTA. Continued on Page 7 Airtravelfrom IGItocostmore asdevelopment chargehiked NITIN KUMAR New Delhi, March 28 Liquidity remained in surplus mode until mid-Decemberlastyear but began to tighten in the final week of December. The cash squeeze tightened further with deficit breaching `3 lakh crore mark to touch 10-yearhigh in January. Intervention by the RBI to defend the rupee, outflows related toadvancetaxpaymentsandGoods andServicesTaxcreatedshortageof funds in the banking system. FLYING OUT OF Delhi’s Indira Gandhi International (IGI)Airport will become more expensive for international travellers starting April 16, as the Airports Economic Regulatory Authority (AERA) has approved higher and variable user development fees (UDF) for economyand business class passengers. Recognising that domestic travellers make up 80% of IGIA’s total traffic, AERA has decided to keep the UDFfor domestic passengers unchanged at `129 for the fourth control period. Currently, UDF charges remain uniform for both domestic and international travellers. However, with the revised tariff structure, international passengers will now pay significantly higher fees depending on their class of travel. Under the new fee structure, international economy class passengers will be required to pay `650 for departure and `275 for arrival. For business class travellers, the UDF will be `810 for embarking and `345 for disembarking. In contrast, the domestic UDF remains `129 for departing passengers and `56 for those arriving. Continued on Page 12 Continued on Page 7 ■ Experts say the worst of the liquidity deficit may be over and expect it to turn surplus soon ■ Liquidity remained in surplus mode until midDecember last year ■ The cash squeeze tightened further with deficit breaching `3L cr mark in January ■ RBI took series of measures like OMO and VRR auctions to inject durable and short term liquidity in the system Clients seeking integrated solutions and coming in of foreign law firms aid corporatisation Lawfirmsgoinginformakeoverbyinductingnon-legaltalent JYOTSNA BHATNAGAR Ahmedabad, March 28 ANTICIPATING AN IMMINENT entry of foreign names and the increasing use of artificial intelligence, Indian law firms are going in for a makeover in accordance with global best practices.The bid to corporatise has seen induction of top non-legal talent across legal organisations. Leading the charge are the old guard of India's largest law firms including Khaitan & Co (KCo),Trilegal, Shardul Amarchand Mangaldas (SAM), Cyril Amarchand Mangaldas (CAM) and Luthra & Luthra. Some mid-tier and smaller players including Hyderabad-based Tatva Legal have also joined the game. Balanand Menon, Partner and Head of Consulting at Vahura, a leading legal recruitment and consulting firm says the legal services industry is seeing a fundamental transformation in a market that is becoming intensely competitive,both from a business and talent perspective.“The multidisciplinary professionals who are being hired aren't just nice-tohave additions—they're strategic imperatives who drive innovation at the intersection of law, technology, and business operations.” India's top rated full services law firm Trilegal,which is already modelled as a corporate with no single person or family at the helm, has in the recent past hired MOVING WITH THE TIMES ■ Khaitan & ■ India's largest law firms including Khaitan & Co (KCo), Trilegal, Shardul Amarchand Mangaldas (SAM), are going in for a makeover in accordance with global best practices ■ Hyderabad-based Tatva Legal is headed by a former HR practitioner Mrinalini Reddy who has risen up the rungs to her current position as CEO non-lawyers into top corporate roles. Dhruv Nagarkatti, Head of Practice Transformation, brings with him a wealth of experience in legal technology and transforma- ■ India's top rated full services law firm Trilegal has in the recent past hired nonlawyers including Dhruv Nagarkatti as Head of Practice Transformation tion from PwC, one of the largest accounting firms where he served as Director, legal business solutions. A former investment banker, Nagarkatti says Trilegal is Co has hired Rohit Shukla (Legitquest co-founder) as chief digital officer to drive digital & tech related innovation within the firm now concentrating on taking in the right professionals at the right time." A non-lawyer, Nagarkatti says,he understands the business of law which, like any other busi- ness requires constant upscaling, adapting to digital transformation and strategising to keep pace with changing times." Trilegal has also roped in Avnish Kshatriya, global IT head at software giant Wipro, as chief digital & information officer in view of the critical need for AIdriven solutions.With a formidable experience of 26 years in digital transformation, his mandate at Trilegal is to focus on enhancing client service delivery though scalable digital capabilities. Most law firms fail at the last line adoption of digital technology which requires breaking barriers and changing mindsets and that's where the expertise of a top professional like Kshatriya makes the HYDERABAD difference. Nagarkatti attributes the induction of non-legal professionals to the natural progression and evolution of the firm and says professionals bring a value-add to different key functions and while it involves investment in hiring them, they ultimately realise value over time. A similar move to implement successful digital transformation has been undertaken by top-tier firm Khaitan & Co which has hired Rohit Shukla (co-founder of Legitquest) as chief digital officer,who drives digital and other tech related innovation within the firm. Continued on Page 12