ECONOMY | PAGE 3 COMPANIES | PAGE 4 PM, Xi set to meet as India, China move to repair ties INTERNATIONAL | PAGE 7 Nykaa makes UK foray to take on global giants HYDERABAD, FRIDAY, AUGUST 29, 2025 Fed guv Cook suesTrump over his attempt to fire her FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. NO. XXII 101, 36 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: 80,080.56 ▼ 705.98 NIFTY: 24,500.90 ▼ 211.15 NIKKEI 225: 42,828.79 ▲ 308.52 HANG SENG: 24,998.82 ▼ 202.94 `/$: 87.63 ▲ 0.05 `/€: 102.08 ▲ 0.01 BRENT: $67.81 ▼ $0.24 GOLD: `1,00,999 ▲ `648 IN THE NEWS Private capex may increase 20% in FY26: RBI bulletin THE TEPID PRIVATE sector investment has turned around and is estimated to touch `2.67 lakh crore in FY26 — a rise of around 20% over FY25 — according to the latest RBI bulletin, reports fe Bureau. The rise will be aided by factors such as robust macroeconomic fundamentals and improved balance sheets, it said. ■ PAGE 6 Sectoral funds continue to catch investor fancy EVEN AS THE equity markets are facing continued pressure due to elevated valuations and trade uncertainties, investors continue to subscribe to thematic stories sold by mutual fund houses, reports Ananya Grover. ■ PAGE 6 EXPLORINGOPTIONSTOPROTECTEXPORTERSAGAINSTUSLEVY:FM MSMEssettogetpackage similartoCovid-19times ● Textiles,marine products to get prioritysupport MITIGATING MEASURES ■ Scheme 100% credit guarantee on loans to MSMEs PRASANTA SAHU New Delhi, August 28 WITH KEY EMPLOYMENTINTENSIVE industries grappling with high tariffs in the lucrativeUSmarket,thecentral government is formulating a supportpackageforthem,with micro, small, and medium enterprises (MSMEs) being at thecoreofthebeneficiarypool. According to government sources,as part of the package, a scheme may be launched to extend100%creditguarantee onloanstoMSMEsonthelines of a similar one that ran through the Covid-19 period. While this scheme may be announced in the next 7-to10 days, the sources said the ■ Three-to-six-month moratorium on repayment of loans may be offered may extend ■ RBI may also chip in with regulatory forbearance for MSME loans with regard to NPA classification ■ The Emergency Credit Line Guarantee Scheme, unveiled during the Covid-19 period, helped save at least 1.46 million MSME accounts, according to an SBI report REVERSAL OF TARIFFS BY US WILLAID RESUMPTION OF TRADE TALKS PAGE 2 »INSIDE« Reserve Bank of India may also chip in with certain regulatory forbearance for MSME loans with regard to their classification as nonperforming assets (NPA). Athree-to-six-monthmoratorium for repayment of loans (principalandinterests),asprevailed during the pandemic, maybeoffered,thesourcessaid. The credit guarantee will be designed to give the muchneeded liquidity support to units struggling with working capital constraints. Under the scheme, collateral-free fresh loans up to 20% of the outstanding credit of MSMEs may be fully guaranteed. Other Tariff heat melts markets KISHOR KADAM Mumbai, August 28 SENTIMENT CAUTIOUS US PRESIDENT DONALD Trump’sadditional25%import tariffsthatcameintoforcefrom Wednesday triggered a sell-off in Indian equitymarkets. The Sensex tumbled 705.97 points, or 0.87%, to close at a two-week low of 80,080.57, extending losses for the second straight session on Thursday. The Nifty fell 211.15 points, or 0.85%, to end at 24,500.90 on the monthlyexpirydayforderivatives contracts. The domestic markets were shut on Wednesday for Ganesh Chaturthi. On Tuesday, both indiceshadlostover1%eachin anticipation of the tariff blow. SENSEX (Intra-day, Aug 28) TOP SECTORAL LOSERS % loss -2.27 Services (Previous close) -1.73 Telecom 80,754.66 -1.68 IT 80,786.54 (Open) -1.59 TECK Realty -1.47 705.97 points 0.87 80,080.57 (Close) ■ DII inflows top `5 lakh crore this year, compared with their total investments of `5.26 lakh crore in 2024 Continued on Page 5 Rajan for a rethink Modi’swar:Trump on Russian oil buy aide on Ukraine INDIA SHOULD NOT give in to US bullying on tariffs, Maruti Suzuki chairman RC Bhargava said on Thursday, adding the country should stand united against the intimidation, reports Nitin Kumar. RAGHURAM RAJAN HAS saidIndiamustweighthe benefits of Russian oil buy against the losses from higher US tariffs. “It is worth considering whether we should continue these purchases,” he told India Today, reports fe Bureau. ■ PAGE 2 WHITE HOUSE TRADE adviser Peter Navarro cranked up pressure onIndiatohaltitspurchases of Russian oil, and casting the Russia-Ukraine conflictasPrimeMinister Narendra “Modi’s war”, reports Bloomberg. ■ PAGE 2 Act puts businesses at risk of immediate closure: Head DigitalWorks Rummy platform mounts first legal fight to online gaming law FE BUREAU Bengaluru, August 28 IN THE FIRST legal challenge to the recentlyenactedPromotionandRegulation of Online Gaming Act, Head DigitalWorks,theoperatorofrummy and poker platform A23, has moved the Karnataka High Court contesting a blanket ban on all forms of online money games. The matter is scheduled to be heard onAugust 30. Thelaw,whichreceivedparliamentary approval and presidential assent last week, put the booming online gaming industryin a bind,with many of them shutting real-money games. Several key players in the sector like Dream11, Gameskraft, and Zupee have,however,decided not to put up a legal challenge to the legislation, and instead focus on pivoting their businesses.Dream11haslaunchedwealth managementappDreamMoney,while WinZOintroducedWinZOTV,amicrodrama platform. In its petition,A23 argued that the legislation effectively criminalises COURTROOM BATTLE ■ The Karnataka High Court is scheduled to hear Head Digital Works’ petition on August 30 ■ Platform argued that the law criminalises skill-based games such as rummy and poker, and urged court to declare it unconstitutional ■ After the law was enacted last week, many platforms shut real-money games mechanisms are also being examined to assess the loan requirement, like operational costs for each MSME for the next six months, including salaries,utilityexpenses,etc.for extending the guarantee cover, the sources explained. Continued on Page 7 IIP growth at 4-month high of 3.5% in July OJASVI GUPTA & KRISHNA BAROT Ahmedabad, August 28 TECH MILESTONE CG SEMI,ASUBSIDIARY ofCG Power and Industrial Solutions, would roll out the first made-in-India chip from its facilities in Sanand in Gujarat. Inaugurating the facility on Thursday, Union electronics and information technology minister Ashwini Vaishnaw said that Prime Minister NarendraModiwill“soon”dedicate the chip produced at this facility.“This is a major milestone in our country’s semiconductor journey,”he added. The Murugappa Group company’s facility is India’s first full-service outsourced semiconductor assembly and test (OSAT) provider, and aims to offer solutions meant for both traditional as well as advancedpackagingtechnologies.“This marks a major step in strengthening India’s semiconductor capabilities and supporting the country’s goal of becoming self-reliant while also serving global markets,” the firm said in a statement. The first facility, known as G1,which was inaugurated on over five years to develop two units — G1 and G2 FE BUREAU New Delhi, August 28 A SPIKE IN manufacturing activity drove the overall industrial output growth to 3.5% in July,thehighestratesinceMarch,accordingto datareleasedbythegovernmentonThursday. Manufacturing sector during the month grewat5.4%onyear,thehighestinsixmonths, and covered up fora 7.2% contraction in mining andjust 0.6%growth in electricityoutput. Manufacturingindustryhasaweightof77.6% in the Index of Industrial Production (IIP). In July last year, the IIP growth was 5%, and all threecomponentsoftheindex—manufacturing,miningandelectricity—wereinthegreen. Within manufacturing,base metals,mineral products, pharma, machinery, motor vehicles, electrical equipment, metal products, and transport IIP growth (%) owth equipment were the growth drivers. This also 7 5.2 indicates an 6 increase in demand from 5 the industrial 3.5 sector, rather 4 than just among 3 final consumers. Some of the 2 consumer sectors like food, 1 beverages, tex0 tiles and leather, Apr 2024 Jul 2025 however,continued to report a contraction in output form last year’s levels. This trend is confirmed by 11.9% growth in infrastructure and construction goods, 5.8% in intermediate goods,and 5% in capital goods.The consumerdurables sectorsawa growth of 7.7% during July, while nondurableswas up just 0.5%.The primarygoods sector saw a decline of 1.7%. “IIPnumbers forJulyare encouraging as it shows that investment is picking up not just in the government space but also in the private sector,” chief economist at Bank of Baroda Madan Sabnavis said. BRIGHT SPOT Don’t give in to US bullying: Bhargava ■ PAGE 4 TARIFF-HIT FIRMS SEE SHARE PRICES TAKE A BEATING PAGE 10 CG Semi to roll out first made-in-India chip soon Continued on Page 7 ■ Dream11, Gameskraft, and Zupee have decided not to put up a legal challenge ■ Govt has said the law encourages e-sports and social gaming while putting a ban on online money games that cause social harms skill-based games such as rummy and poker, putting legitimate businesses at the risk of immediate shutdown. It urged the court to declare the law unconstitutional in its application to games of skill. Head Digital Works did not immediatelyrespond to a request for comments on the development. GaminglawyerJaySayta,founderof Glaws.in,outlinedmultiplegroundsto challenge the law, including “lack of legislative competence since the central government has encroached in subject matters falling squarely in the domain of states,and infringement of right to trade and commerce of legitimateskill-basedonlinegamingfirms”. Continued on Page 7 HYDERABAD ■ CG Semi will invest over `7,600 crore ■ G1 will have a peak capacity of 0.5 mn units per day ■ G2 will have a maximum capacity of 14.5 mn units per day ■ Two facilities will generate over 5,000 direct and indirect jobs IT minister Ashwini Vaishnaw at the CG Semi plant inauguration Thursday, will operate at a capacity of 0.5 million units per day. It is equipped to handle end-to-end chip assembly, packaging, testing, and posttest services. With support from the central and stategovernments,andincollaboration with Renesas and Stars Microelectronics, CG Semi is investing over `7,600 crore overfive years to develop two OSAT facilities (G1 and G2) in Sanand. Commercial production in the G1 plant is set to commence in 2026, with a peak capacity of an estimated 0.5 million units per day. The G2 facility, currently underconstruction,isexpected to be completed by the end of calendar year 2026 and will scale up to a maximum capacity of approximately 14.5 millionunitsperday.Together,the two plants are projected to create over 5,000 direct and indirect jobs in the region. Continued on Page 5