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Friday, June 20, 2025

Rate cuts turn the heat on Maran vs Maran: Dayanidhi

livemint.com banks’ deposits uP1 asks for Sun TV ownershipuP1
 NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, PUNE* VOL. 19 NO. 148

Friday, June 20, 2025

Think Ahead. Think Growth.

mint primer QUICK EDIT

People love them Honda’s

but do bike taxis rocket SpaceX’s famous reusable space
have a future? rockets may soon get competi-
tion from a surprise source:
Honda. Earlier this week, the
BY SAKSHI SADASHIV Japanese automaker reportedly
Karnataka’s ban on bike taxis has revived the debate on their legality test-launched an experimental
and safety. With Indian states taking varied stances, more bans could space rocket that can be reused.
upend low-cost urban mobility and disrupt gig economy jobs, raising The six metre-plus rocket,
fresh questions about the industry’s future. Mint explains: weighing about 900kg—about
HT as much as a small car—went up
nearly 300 metres before
returning. Sure, that isn’t too
high for a vehicle designed for
space. But a critical element of
such flights is not just to lift off
smoothly, but also to return
safely. As reported, Honda’s
rocket made a precise landing,
which has given its space ambi-
tions a boost. In 2021, the com-
pany had said it was studying
space technologies, but kept
quiet after that. With its latest
success, it’s aiming for subor-
bital space missions by 2029.
Reusable rockets vastly reduce
What’s behind the ban Could other states do the cost of space operations. So
1 by Karnataka?
Karnataka’s decision stems from
2 the same?
Some might. Maharashtra, for
far, SpaceX has had all the glory
in this field, though others have
legal and regulatory concerns over instance, hasn’t banned bike taxis been raring to make their own
the use of white-board (privately outright but made a switch to breakthroughs. Honda’s car-
registered) two-wheelers for electric two-wheelers mandatory market rival Toyota is eyeing
commercial purposes, which the which could discourage entry. reusable rockets too. Why Japa-
state sees as a violation of the Delhi has made a similar move, nese carmakers have caught
Motor Vehicles Act. Officials cite citing environmental and
this bug isn’t entirely clear, but
safety risks, lack of commercial regulatory concerns. Fragmented
insurance, and mounting pressure policy has created uncertainty for we can expect this race to heat
from auto and cab unions as key platforms and investors. Telangana up. With India’s space sector
factors. The high court had earlier does not permit them, but West open to private players, maybe
deemed unlicensed bike taxi Bengal does. The Central we’ll see action here as well.
operations illegal, strengthening government’s silence adds to the
the state’s stance. Facing political confusion, leaving states to
pressure and regulatory interpret the law individually. If
ambiguity, the government opted legal ambiguity persists, more
for a blanket ban rather than states could turn cautious, leading
QUOTE OF THE DAY
regulation, outlawing bike taxi to de facto bans or restrictive EV- Ultimately the cost of the tariff has
services from 16 June. only models.
ISTOCKPHOTO to be paid, and some of it will fall
on the end consumer. We know
3 What does this mean for gig
workers and startups?
The impact is immediate and
that’s coming, and we just want to
see a little bit of that before we
destabilizing. Gig workers relying on bike make judgments
taxi income face job losses or costly EV
transitions. Startups like Rapido, which prematurely.
derive up to 50% of their revenue from
bike taxis, could lose key markets or be
pushed into expensive compliance.
Investor sentiment may sour unless states
provide policy clarity. JEROME POWELL
CHAIRMAN, US FEDERAL
RESERVE

4 How are everyday

commuters affected? 5
For urban commuters, especially
Is this the end of the
road for bike taxis?
Not quite—but the road is
students, working women, and narrowing. A national policy could
lower-income workers, bike taxis bring clarity, with formal licensing, INSIDE
offer a cheap, fast alternative to insurance, and safety norms.
cabs and autos. Fares are ₹20–₹50 Maharashtra’s and Delhi’s EV-only Mark to Market | HZL expansion plan not
for short distances—half the price path may become a blueprint, enough >P4
of auto-rickshaws. Sudden bans or though affordability and charging Global | US officials plan for a possible
EV mandates limit transport infrastructure remain hurdles. strike on Iran >P8
choices, raise prices, and extend Startups are exploring other
Money | Why Ayush claims are often
commute times—especially in last- pivots, but survival depends on
denied despite health cover >P11
mile areas underserved by regulatory clarity and scalable
traditional public transport. EV- compliance models. Without Views | Sebi’s new reforms will help
only models may not scale fast these, the bike taxi model may only up to a point >P12
enough to replace conventional shrink or shift towards other Business of Life | Taking the loom route
bikes. Autos or cabs may not solve services – risking stalling just as it to explore historical weaves >P14
the affordability gap. was scaling.

mint Data Bites

THE CHANGING WORLD OF DIGITAL NEWS:

HOW PEOPLE PREFER TO CONSUME IT
A new Reuters report suggests that most people globally prefer to read news online
over watching videos or listening to audio. But it's not so in India.
Share of respondents (%) who prefer to read, watch, or listen to online news, in selected markets
Prefer to read Prefer to watch Prefer to listen
All markets 55 31 15
Norway 76 15 9
UK 73 16 11
Germany 65 25 10
US 60 27 13
Japan 48 41 10
India 38 40 23
Mexico 36 41 23
Philippines 31 55 14
Responses to the question: "In thinking about your online habits around news and current affairs, which of the following statements applies best to you?"
The sample size (excluding “Don’t Know”) in all markets was 86,027, including 1,882 from India. The survey was Data: Shuja Asrar; design: Satish Kumar
conducted online by YouGov from the middle of January to the end of February 2025. Source: Reuters Institute Digital News Report 2025
 PLAIN FACTS

DATA RECAP THE WEEK IN CHARTS

India’s unemployment rate rose to 5.6% in May, with rural areas seeing a
sharper rise. The tragic Air India crash has added to Boeing’s struggles amid
tough competition from rival Airbus. And the Israel-Iran conflict has caused
oil prices to spike. This week’s numbers curated by Payal Bhattacharya

Job Strain Limited Impact

Unemployment rate (%) in the 15 years and above age group Relative movement of prices (rebased December 2019 = 100)
Apr 2025 May 2025 Petrol Diesel Crude oil*
200 *Indian basket of crude,
4.5 180 a mix of Oman and
Rural
5.1 160 Dubai for sour grades
140
and Brent (dated) for
6.5 sweet grade, has been
Urban 120 used, and prices were
6.9 100 converted to rupee.
5.1 80 Petrol and diesel prices
Rural + Urban 60 for Delhi have been
5.6 taken into account.
40
Based on current weekly status, which refers to a person's work status Monthly average figures
20 used for the analysis.
during the seven days preceding the date of the survey. Dec 2019 Jun 2025
Source: Statistics ministry Source: Production, Planning and Analysis Cell, Investing.com, Mint calculations

UNEMPLOYMENT RATE rate rose to 5.6% in May THE ESCALATING conflict between Israel and Iran
from 5.1% in April, as per the latest periodic labour force has led to a surge in oil prices, with Brent crude futures
survey (PLFS) report from the statistics ministry. The rise hovering around $75 per barrel as opposed to a recent
was due to both rural and urban unemployment. Rural low of $64 per barrel average in May. While this could
unemployment rose 60 basis points (bps) to 5.1%, while impact India’s growth and current account deficit, a
that of urban areas was up 40 bps to 6.9%. This could be significant impact on fuel prices is unlikely since the
attributed to seasonal patterns, especially in rural areas, government can cut excise duties on petrol and diesel.
where activity may pick up in June due to kharif sowing. The recent trend shows petrol and diesel prices have
Urban unemployment may need close monitoring. remained stable despite volatility in crude oil prices.

Price Plunge
THAT’S INDIA’S wholesale inflation rate for May, a 14-

0.39%
month low, driven by falling prices of food, fuel and key
manufacturing items. Wholesale food inflation dropped to
1.72%, with sharp deflation in vegetables, pulses and
potatoes. This comes after retail inflation eased to a six-
year low of 2.8% in May, signalling broad price stability. A
favourable base, lower global commodity prices and hopes
of a normal monsoon are expected to keep inflation
subdued in the coming months.

Boeing vs Airbus Trade Tides

Number of accidents India's merchandise trade, monthly ($ billion)
70 Airbus Boeing
60 80 Exports Imports
60 70 60.6
50 60

40 50

30
28 40
30 38.7
20 20 Trade deficit.
10 10
0 0
2015 2024 Jan 2024 May 2025
Source: Aviation Safety Network Source: CMIE

THE AIR India crash has added to Boeing’s troubled INDIA’S TRADE deficit narrowed sharply to $21.9
run, which has severely hampered its operations and billion in May from $26.4 billion in April, driven mainly
profitability. Between 2015 and 2025, Boeing saw 467 by lower imports. Merchandise exports stood at $38.7
accidents and 1,458 deaths, compared to Airbus’s 246 billion, up slightly from $38.5 billion in April. Imports, on
accidents and 564 deaths—despite similar fleet sizes, per the other hand, fell sharply to $60.6 billion from $64.9
an analysis by howindialives.com. Boeing’s reputation billion in April. Falling crude and gold imports also
has been hit since the 737 Max crashes of 2018 and 2019, supported the narrowing gap. While India’s trade
leading to grounded planes, inquiries and losses. Airbus balance improved from the previous month and year-ago
has delivered more aircraft and reported steady profits. period in May, exports were 2.2% lower year-on-year.

Capacity Boost

₹12,000
THAT’S THE size of the new expansion plan by
Hindustan Zinc Ltd to boost its metal capacity. According
to a Mint report, the company plans to add a capacity of 250
kilo tonnes per annum (ktpa). This would be the first phase

crore of its ambitious plan to double metal output over the next
few years. To achieve its goals, the company’s board has
approved the investment to add a new smelter at its
integrated zinc metal complex in Debari, Rajasthan.

Apple’s Slide Chart of the Week: Nuke Check

Daily share price rebased (2 January 2025 = 100) Number of nuclear weapons, January 2025
Apple Google Meta Amazon Microsoft US 5,177
130
Russia 5,459
120
China 600
110
France 290
100
UK 225
90
India 180
80
Pakistan 170
70
Israel 90
60
2 Jan 2025 19 Jun 2025 North Korea Source: Stockholm International Peace Research
Source: Nasdaq, Yahoo Finance
50 Institute (SIPRI) Yearbook 2025

APPLE’S SHARES have fallen nearly 20% so far this NINE NATIONS, including the US, Russia, UK, France
year, marking the worst performance among big tech and India, collectively held around 12,241 nuclear
firms, an analysis by howindialives.com showed. The weapons, with about 3,912 deployed and 2,100 on high
iPhone maker is facing persistent issues from stagnant operational alert, a report by Stockholm
sales, regulatory heat on its services business, and a International Peace Research Institute
shrinking Chinese market. While rivals push ahead in showed. The US and Russia together
artificial intelligence (AI), Apple lags, relying on partners own nearly 90% of all nuclear warheads.
such as OpenAI. Overall, weak innovation and global Follow our data stories on the In
pressures have made 2025 a tough year for the tech giant. Charts and Plain Facts pages.
PARAS JAIN/MINT

MINT BEST OF THE WEEK

WILL US JOIN THE WAR? VOICE FIRST FOR AI LEADERSHIP GAP
As Israel and For India’s As China
Iran trade non-typing tightens rare
blows, Presi- majority, earth exports,
dent Donald voice is India’s IREL
Trump hints emerging as is headless,
at US inter- the default with no full-
vention— digital inter- time CMD
possibly with face, reshap- since Decem-
bunker-buster bombs. While Israel ing sectors from farming to finance. ber 2024. The leadership gap comes at
may gain, Gulf states and Trump’s Backed by IndiaAI, startups are build- a critical moment for domestic EV and
own supporters are uneasy. Could ing voice-first tools in local languages electronics manufacturing. Will India
this spark wider turmoil to bridge the digital miss its rare earth
or force Tehran to bend? divide. Will voice be the moment, again? Scan the
Scan the QR to read the future of inclusion? Scan QR to read more on this
full analysis. the QR to read the story. unfolding story.
 New Delhi, mumbai, bengaluru, kolkata, chennai, Ahmedabad, Hyderabad, pune* VOL. 19 NO. 148 Rs. 12.00 . Price with Hindustan Times Rs. 17.50 18 pages

Friday, June 20, 2025

In India, a gold rush for weight Tata Sons chair skips TCS AGM
livemint.com loss drugs uP10 amid Air India crisis uP5

SENSEX 81,361.88 82.78 NIFTY 24,793.25 18.80 DOLLAR ₹86.73 ₹0.26 EURO ₹99.55 ₹0.08 OIL $77.02 $0.88 POUND ₹116.42 ₹0.01

Catch-22 for banks Maran vs Maran:

Dayanidhi asks for
Strike threat
looms over
DON’T MISS
REUTERS

Hyundai’s
as interest rates dip Sun TV ownership Chennai plant
Ayaan Kartik &
Banks must cut deposit rates; but that may put off depositors Varun Sood & Satish John Nehal Chaliawala
bengaluru/mumbai
Mumbai Relief for banks as RBI eases
Shayan Ghosh & Anshika Kayastha

A
family dispute has infra loan provision norms
cash counter
S
mumbai erupted at India’s larg- outh Korean automotive The Reserve Bank on Thursday relaxed the
est listed media entity giant Hyundai Motor’s provisioning norms for project finance loans,

L
enders will have to fight Banks’ savings deposit rates are currently at the lowest in at least 25 Sun TV Networks Ltd, with India unit faces a poten- following appeals by lenders. The RBI, in its
harder for deposits as sav- years, since the central bank started collecting such data in FY01 former telecom minister Daya- tial worker strike at its plant final guidelines, has mandated that banks set
ings rates plunge to a Range of savings deposit rates in top five banks (%), annual nidhi Maran crossing swords near Chennai from a union aside only 1% of standard asset provisioning
25-year low and term with billionaire brother Kala- backed by the Communist for projects under construction. >P5
4
deposit rates see sharp cuts, Highest nithi Maran. Party of India (Marxist) or the
raising the spectre of a liquidity 3.5
In a legal notice, Dayanidhi, a CPI(M), if the outcome of Slow recovery from dubious
squeeze if and when credit demand member of Parliament from ongoing triennial wage nego- pre-bankruptcy transactions
picks up. Even as a 100 basis point Lowest 3 the Dravida Munnetra Kazha- tiations is not to the union’s
3 Firms on the brink of collapse tend to do
reduction in the repo rate has forced gam (DMK), accused his Kalanithi Maran did not own satisfaction. The same union transactions that benefit the promoters.
lenders to reduce deposit rates, brother and several others of any shares in the company 22 had earlier halted operations While such ‘dubious transactions’ can later be
banks hope that savers would con- 2.5 2.7 “fraudulent practices” and years ago. at the nearby manufacturing set aside during bankruptcy proceedings by
tinue to park idle funds with them “misgovernance” in taking facility of Samsung, another tribunals, getting the money back is proving
given the broader economic uncer- 2 control of Sun TV after their brought down the sharehold- Korean giant. an uphill task. >P6
tainties. FY01 FY25** father Murasoli Maran’s death ing of my client’s parents from Hyundai had received a
*Savings deposit rates were de-regulated from
The Reserve Bank of India’s (RBI) October 2011. FY12 onwards, the rates relate to
in 2003. Dayanidhi also sought 50% to 1 single share whereas temporary stay from the Global FDI shrinks again in 2024;
rate cuts have automatically brought balance up to 1 lakh to restore Sun TV’s 2003 share- No.1 (Kalanithi) of you being an Madras High Court in March
down loan rates on 60% of floating **As of 1 Sept 2024 Source: RBI's Database on India Economy holding structure. ex-employee who did not even against any disruption from
UN body warns of more shocks
rate loans, which are linked to exter- This implies that Dayanidhi own one share is now holding workers, as per the company’s Global FDI declined 11% in calendar year
nal benchmarks like the repo. How- CTRL+ SAVE and his sister, Anbukarasi more than 75% shareholding of writ petition, a copy of 2024 to $1.5 trillion, marking a second
ever, since term deposit rates can be Maran, along with current chief the company, without even which Mint has seen, but that consecutive year of double-digit
rbi has cut repo rate savings rates fall lower rates prompt contraction, while international project
lowered only at the time of opening by a total of 100 bps immediately, deposit depositors to park minister of Tamil Nadu, M.K. employing any of your self could change depending on finance deals slumped 27%, a UN agency
or renewing a deposit, banks are in the latest cycle rates fall with a lag money elsewhere Stalin, and his two brothers and earned money,” said a notice, the outcome of the wage nego- said in a Thursday report. >P2
forced to slash savings rates more to sister, would be the owners of dated 10 June, sent by K. tiations.
PARAS JAIN/MINT
maintain margins. Sun TV, as Kalanithi did not Suresh, a lawyer representing The Hyundai Motor India
“Savings deposit rates are being deposits, wealth and bancassurance crunch that prompted former RBI own any shares in the company Dayanidhi Maran, to eight Employees Union (HMIEU), Geopolitical risk clouds India’s
cut across the banking system and it at Federal Bank. Joy said the latest governor Shaktikanta Das to remark 22 years ago. executives. Mint has seen a which is backed by the market premium
is not limited to a few players any- 50-bps reduction in the repo rate in August that “alternative invest- Dayanidhi warned that he copy of the notice. CPI(M)-affiliated CITU (Cen- Cautious investor sentiment because of the
more. The reason banks are doing will lead to a decline in yield on ment avenues” were becoming more would seek a probe by the Seri- Seven other executives tre of Indian Trade Unions), Israel-Iran conflict has sparked a significant
that is because the transmission in advances or the average lending rate attractive to retail customers, and ous Fraud Investigation Office served with the legal notice are has called for a secret ballot to flight of foreign capital from India, reversing
savings deposits is immediate, of a bank’s loans and, there is no banks were facing funding challen- (SFIO) of the ministry of corpo- Kalanithi’s wife and Sun TV establish itself as the majority recent inflows. Foreign portfolio investors
unlike a term deposit which happens option but to cut deposit rates. ges. “This may potentially expose the rate affairs if his brother refuses executive Kaveri Kalanithi, union of Hyundai’s factory have already pulled nearly ₹8,423 crore from
with a lag,” said Joy P.V., executive Deep deposit rate cuts could lead to comply. domestic equities in June. >P7
vice-president and country head of to a re-run of last year’s liquidity TURN TO PAGE 4 “All of you have fraudulently TURN TO PAGE 4 TURN TO PAGE 6

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02 FRIDAY, 20 JUNE 2025
NEW DELHI ECONOMY & POLICY LIVEMINT.COM

m MINT SHORTS
Rupee at three-month low as oil
Global FDI shrinks again in Govt to get
Telangana
spikes on West Asia conflict
The Indian rupee weakened to its lowest level in three months,
as a surge in oil prices underscored the nation’s vulnerability to
energy shocks.The currency fell 0.4% after declining as much as
‘24, project finance falls 27% data for EV
payouts
0.5% to 86.8875 per dollar, the lowest since 17 March. Brent crude
has climbed about 20% this month, driven by escalating tensions Manas Pimpalkhare
between Israel and Iran. India relies heavily on overseas crude manas.pimpalkhare@hindustantimes.com
purchases to meet its energy needs. BLOOMBERG Investment activity weakened sharply, particularly in major economies like China and India NEW DELHI

T
he Union ministry of
India kick-starts fifth gen Rhik Kundu
FDI squeeze ongoing wars in Ukraine and West Asia heavy industries is plan-
rhik.kundu@livemint.com to tighter financial conditions and pol- ning to work directly
stealth fighter jet build NEW DELHI
FDI flows saw sharp contractions in developed economies in 2024.
icy uncertainty in the US. with Telangana's transport
PTI Inflows into India have declined sharply in six years, with outflows rising.
"The global economy continues to department to promptly

G
Charts by Payal Bhattacharya.
lobal foreign direct grapple with a complex set of challen- secure the state's vehicle regis-
Year-on-year change in FDI inflows (%), India's foreign direct investments
investment (FDI) declined by economic groups and regions ($ billion)
ges: mounting debt, persistent under- tration data and disburse
11% in calendar year 2024 Inflows Outflows
performance in GDP growth, geopoliti- incentives to electric vehicle
to $1.5 trillion, marking a World -11 cal tensions and structural shifts in makers, according to two peo-
70
second consecutive year Developed economies -22 trade and investment flows," said ple aware of the development.
60
of double-digit contraction, while North America 23 Rebeca Grynspan, secretary-general of The ministry, the nodal
international project finance deals US 20 50 UNCTAD. agency for the implementa-
slumped 27%, a UN agency said in a 50.6 "What is most alarming, is the con- tion of the ₹10,900-crore PM
Europe -58 40
Thursday report. Investment activity Developing economies 0.2 27.6 tinued deterioration of investment E-drive green mobility
weakened sharply, particularly in Africa 75
30 flows into key sectors aligned with the scheme, collates registration
major economies like China and India. 20 Sustainable Development Goals," data from the central govern-
Latin America and the Caribbean -12
The World Investment Report 2025 Grynspan added. "The world can least ment's Vahan portal, tallies
New Delhi: India has kick-started the process to develop by the UN Conference on Trade and
Asia -3 10
afford to fall short of these goals." them with claims made by
13.1 23.8
a fifth generation stealth fighter jet to boost its air power. Development (UNCTAD) noted that China -29 0 UNCTAD flagged sharp investment companies before disbursing
India -2 2019 2020 2021 2022 2023 2024
The Aeronautical Development Agency (ADA), an entity after stripping out financial flows declines in sectors aligned with the financial incentives.
Source: World Investment Report 2025, UNCTAD
that operates under the defence ministry, has invited routed through European conduit Sustainable Development Goals. Infra- Vahan is a national platform
GOPAKUMAR WARRIER/MINT
Expression of Interest (EOI) for developing prototypes of economies—typically for tax avoid- structure investments dropped 35%, which is used for facilitating
the aircraft. The government plans to build five prototypes ance—global FDI actually rose 4% last new investment is yet to translate into sentiment, and market stability. renewable energy fell 31%, and spend- vehicle registrations, permits,
of the Advanced Medium Combat Aircraft (AMCA). PTI year. But overall, the report offers a actual flows. “While tariffs have triggered a few ing on water, sanitation and hygiene taxation and also for enforce-
sombre assessment of global invest- Southeast Asia offered a rare bright supply chain realignment projects, contracted 30%. Agrifood investments ment.
ment trends, especially in developing spot: the Asean bloc attracted a record their dominant impact has been to declined 19%. Only health and educa- However, the portal does
Dinesh K. Patnaik likely next high Asia, which remains the world’s $225 billion in FDI, up 10% year- sharply elevate investor uncer- tion bucked the trend, posting a not currently record vehicle
largest recipient region. on-year. tainty,” it added, noting deal 25% increase. registration data from one
commissioner to Canada FDI inflows into devel- Despite hopes of a and project activity hit Semiconductors and the state, Telangana, which con-
New Delhi: Seasoned diplomat Dinesh K. Patnaik is likely to be
appointed India’s new high commissioner to Canada with both
oping Asia fell 3% in 2024,
reflecting growing -27%
CY24 international
rebound, UNCTAD record lows in early 2025.
warned that the invest- UN Secretary-General
India’s FDI decline;
strongest investment-2%
digital economy saw the tinues to use its own system for
vehicle registration, taxation,
sides looking at rebuilding bilateral ties that came under severe uncertainty in cross-bor- ment outlook for 2025 António Guterres, in the surges—rising 140% and and driver licence approvals.
strain following the killing of a Sikh separatist in 2023, people der capital flows. project finance has turned sharply nega- report’s preface, spoke much smaller than 107% respectively—while "It is under consideration to
familiar with the matter said on Thursday. Patnaik, a 1990-batch China saw one of the deals slump tive, citing persistent geo- about the broader rever- China’s 29% fall global value chain–inten- get the data from the state gov-
Indian Foreign Service officer, is currently serving as India’s steepest drops, with inflows political tensions and eco- sal of global integration. sive industries grew a mod- ernment directly, to ensure
ambassador to Spain. PTI plunging 29%, extending the nomic headwinds. “Rising trade tensions, policy est 1%. The number of green- that the ministry of heavy
sharp retreat from the previous “The outlook for global invest- uncertainty and geopolitical divi- field investment projects world- industries is up to date with
year. India recorded a smaller 2% ment in 2025 has turned negative,” the sions risk making the investment envi- wide rose 3%, while cross-border the latest registration figures,"
‘Will cut oil product exports if decline, though UNCTAD pointed out report said, citing downgrades across ronment even worse,” Guterres said. mergers and acquisitions jumped 14%. said one of the two people.
that an uptick in greenfield project key indicators such as GDP growth, The global economy continues to For an extended version of this story, For an extended version of
Strait of Hormuz is blocked’ announcements suggests much of the capital formation, exports, investor face a confluence of challenges—from go to livemint.com this story, go to livemint.com
REUTERS

Indian cos rise in UK India to curb Chinese paper imports

as trade ties deepen Dhirendra Kumar
dhirendra.kumar@livemint.com
mills in the country, only
around 550 are currently
NEW DELHI operational. This is a signifi-
Dhirendra Kumar hensive trade deal. cant setback for a sector that

I
dhirendra.kumar@livemint.com Union commerce minister ndia is set to tighten con- traditionally supported a large
NEW DELHI Piyush Goyal is currently in trols on substandard paper number of rural and small-
India is preparing to source crude oil from outside the Per- the UK, where he held discus- product imports, particu- scale livelihoods,” said this

T
sian Gulf and cut its own refined-product exports should he number of Indian- sions with his opposite num- larly from China, with the person, a senior DPIIT official.
the Strait of Hormuz be blocked to ship traffic, oil minister owned companies in the ber Jonathan Reynolds. Goyal Department for Promotion of According to Rohit Pandit,
Hardeep Puri said on Thursday. Some market watchers are UK has touched a record also participated in the plenary Industry and Internal Trade secretary general of the Indian
concerned that Iran, locked in a conflict with long-time high—a sign of growing inves- session of the India Global (DPIIT) in the process of intro- Paper Manufacturers Associa-
adversary Israel, could choose to attack tankers sailing tor confidence following the Forum, launching the report. ducing a new Quality Control tion (IPMA), “Indian consum-
through Hormuz or close the strait altogether.BLOOMBERG conclusion of talks on the Indian businesses in the UK Order (QCO) for a wide range ers deserve quality products,
India–UK free trade agree- reported a combined revenue of commonly used paper prod- whether manufactured
ment (FTA). of £72.14 billion in 2025, com- ucts, said two people directly domestically or imported.
India seeks to ban non-conforming A total of 1,197 Indian com- pared to £68.09 billion in the involved in the process. QCOs ensure the supply of
panies are active in the UK, up previous year, as per the This mandatory quality cer- India sources a substantial amount of coated and uncoated quality products to Indian
structures near airports more than 23% report. The com- tification will be applicable to paper from China, Indonesia, and South Korea. BLOOMBERG consumers, prevent unfair
Bengaluru: India plans to clamp down on structures near air- from 971 firms A total of 1,197 panies employ writing and printing paper, trade practices and check the
ports that don’t comply with height regulations, as the govern- recorded in Indian companies 126,720 people in coated paper, and boards used uncoated paper from China, for about 20% of total imports. import of substandard prod-
ment seeks to tighten aviation safety in the wake of the Air India 2024, according are currently and generated for packaging by the consumer Indonesia, and South Korea. In value terms, overall imports ucts into the country.”
crash last week that ranks as the country’s worst in several dec- to the latest edi- active in the UK, over 8,000 new products industry. India’s imports of paper and touched nearly $1.81 billion “To make India globally
ades. The government is drafting a law that would allow the dem- tion of the ‘India
up more than 23% jobs in the past This comes in the backdrop paperboard have been steadily during the year, with China’s competitive in the world mar-
olition of buildings near airfields that don’t meet vertical limits, Meets Britain year. The share of of supply concerns following rising over the share amounting ket, the government has been
which isn’t the case now. BLOOMBERG Tracker’. from 971 firms women on com- China’s move to halt exports of past five years, In FY25, India’s to about $800 emphasising the need for the
This is the recorded in 2024 pany boards rose rare earth magnets, a key com- according to data imports of paper million. domestic industry to manufac-
highest number to 24% from 21% ponent of electric vehicles, to from the com- and paperboard “ C h e a p ture high-quality products.
India, Croatia call for disruption of since the tracker in 2024. India and other countries. merce ministry. from China was imports are hav- IPMA has been pursuing with
began monitoring company The tracker identifies 74 Once the QCO comes into Imports rose
recorded to have ing a serious neg-
the government the need to
terror financing networks presence in 2017 and repre- companies that recorded reve- force, import consignments from 1.08 million ative impact on issue QCOs for different
Zagreb: Condemning terrorism and violent extremism in all sents the steepest year-on- nue growth of over 10%, with will be subject to BIS (Bureau tonnes in FY21 to jumped 33% in the domestic grades of paper,” said Pandit.
forms and manifestations, India and Croatia called for the disrup- year increase. The report does an average growth rate of 42% of Indian Standards) certifica- 2.06mt in FY25. volume paper industry, “We have informed the
tion of terrorism financing networks, elimination of safe havens, not mention the number of and a combined revenue of tion requirements, leading to In FY25, making many members of the World Trade
and bringing its perpetrators to justice swiftly. A joint statement companies operating in 2017. £32.6 billion. These high- delays in customs clearance imports of paper small and medi- Organization (WTO) about the
dated 18 June, issued a day after Prime Minister Narendra Modi’s The sharp rise comes as the growth firms paid £67.3 mil- and higher compliance costs and paperboard from China um-sized mills commercially upcoming QCO,” said the sec-
visit to Croatia, said that it “injected a fresh impetus” into the two countries prepare to usher lion in corporation tax. for foreign suppliers. recorded a 33% jump in vol- unviable,” said the first of the ond official cited above.
bilateral partnership, highlighting complementarities of the two in a new phase of economic For an extended version of India sources a substantial ume, and the Asean countries two people cited above. For an extended version of
economies, especially in tourism, trade and technology. PTI cooperation under a compre- this story, go to livemint.com amount of coated and of South East Asia accounted “Out of over 850–900 paper this story, go to livemint.com

Wheat procurement surges, giving govt breathing room on grain aid CORRECTIONS AND
CLARIFICATIONS
A 19 June, Long Story, ‘Why lab-
Vijay C. Roy & month—currently split as 2 kg polls in West Bengal are due in 67% or 551 million of the 813 Much of this season’s surge grown diamonds are yet to
Dhirendra Kumar wheat and 3 kg rice—translat- March 2026, with subsidized million poorest beneficiaries has come from Punjab sparkle’, should have noted
ing to an annual wheat require- food aid remaining a politi- covered under NFSA. At that (11.92mt), Haryana (7.14 mt) that Saurabh Shatdal is
executive managing director,
NEW DELHI ment of around 19.5 million cally potent issue in both. time, all beneficiaries received and Madhya Pradesh (7.77mt),
capital markets and head, retail
tonnes (mt). Wheat procure- The robust procurement only rice for their 5 kg monthly where state governments India, Cushman & Wakefield.

T
he Centre is confident of ment in the 2025–26 Rabi mar- comes after two years of short- entitlement. offered additional bonuses The error is regretted.
maintaining wheat-rice keting season (April–June) has falls that forced the Centre to This year’s rebound is over the Centre’s minimum
allocations under its already crossed 30mt, nearing slash wheat allocations and driven by improved produc- support price (MSP) of ₹2,425 Mintwelcomes comments,
Pradhan Mantri Garib Kalyan the government’s target of replace them with rice—only tion prospects. The govern- per quintal. Madhya Pradesh suggestions or complaints
about errors. Readers can alert
Anna Yojana (PM-GKAY) this 33.37mt, according to the Food restoring the original ratio in ment expects wheat output to announced a ₹175-per-quintal the newsroom to any errors in
year, said two officials familiar Corp. of India (FCI). September 2024. rise 2% to a record 115.4mt in bonus, while Rajasthan the paper by emailing us, with
with the matter, buoyed by “We have enough stock to In May 2022, wheat quotas the 2024-25 Rabi season on offered ₹150. your full name and address to
strong wheat procurement meet the requirement, and it under the National Food Secu- account of higher acreage. Procurement from Uttar feedback@livemint.com.
ahead of key state elections will continue through the Wheat procurement in the 2025–26 Rabi season (April–June) has rity Act (NFSA) were cut for 10 According to official data, Pradesh, India’s largest wheat It is our policy to promptly
where food for the poor year,” said one of the officials crossed 30mt, nearing the government’s target of 33.37mt. PTI major states—Bihar, Jhark- procurement stood at 26.6mt producer, has reached 1.02mt respond to all complaints.
Readers dissatisfied with the
remains a sensitive political cited earlier, adding that ade- hand, Odisha, West Bengal, in 2024-25 and 26.2mt in so far, against an initial esti- response or concerned about
issue. quate stocks would also allow the central pool stood at ing to official data. Delhi, Uttar Pradesh, Gujarat, 2023-24, far above the sharp mate of 3mt. Mint’s journalistic integrity may
Under PM-GKAY, 813.5 mil- for market interventions if pri- 37.99mt, comfortably above The timing is crucial as Maharashtra, Madhya Pradesh drop to 18.8mt in 2022-23. The vijay.roy@livemint.com write directly to the editor at
lion beneficiaries receive 5 kg ces rise. the buffer requirement of assembly elections approach and Tamil Nadu. These states highest ever procurement For an extended version of asktheeditor@livemint.com
of free food grains each As of 31 May, wheat stocks in 27.58mt set for 1 July, accord- in Bihar this November, while collectively account for nearly remains 43.3mt in 2021-22. this story, go to livemint.com

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LIVEMINT.COM DEALS, TECH & STARTUPS FRIDAY, 20 JUNE 2025
NEW DELHI 03

m MINT SHORTS
Apple eyes using AI to design its
Google faces EU blow United Spirits to buy
Greater Than gin
chips, technology executive says
San Francisco: Apple is interested in tapping generative artifi-
cial intelligence to help speed up the design of the custom chips
at the heart of its devices, its top hardware technology executive
in €4 bn Android case maker Nao Spirits
said in private remarks last month. Johny Srouji, Apple’s senior
vice president of hardware technologies, made the remarks in a Varuni Khosla
speech in Belgium. He said one of the key lessons Apple learned varuni.k@livemint.com
was that it needed to use the most cutting-edge tools available to Top court’s final order may alter how Android sets access terms in Europe NEW DELHI
design its chips, including the latest chip design software from

U
electronic design automation (EDA) firms. REUTERS nited Spirits Ltd, the
Bloomberg Indian arm of global
feedback@livemint.com liquor firm Diageo Plc,
SpaceX’s Starship explodes on is acquiring homegrown craft

G
oogle’s fight against a record spirits maker Nao Spirits and
test stand in another setback €4.1 billion ($4.7 billion) Beverages Pvt. Ltd in a deal
European Union antitrust valued at about ₹110 crore, it
fine suffered a blow after an said in a stock exchange filing
adviser to the bloc’s top court late Thursday evening.
said regulators were right to punish the US USL’s board approved the USL board also authorized a
giant for abusing Android’s market power. acquisition of an additional ₹20 cr investment in the firm
Advocate General Juliane Kokott of stake in Nao Spirits, which
the EU’s Court of Justice said in a non- owns gin brands like Greater mium gin market in 2016.
binding opinion that Google’s appeal Than and Hapusa, on Wednes- “Ventures, our investment
should fail because the legal arguments day. The company, which has arm, is dedicated to strength-
put forward by the US tech giant fell a 30% stake in the business, ening our portfolio by invest-
short. “Google held a dominant position will buy 37,683 equity shares ing in disruptive alco-bev
in several markets of the Android ecosys- from existing shareholders in startups. The acquisition rep-
tem and thus benefited from network two tranches for around ₹53.8 resents a pivotal step in explor-
Texas: A SpaceX Starship exploded on a test stand in Texas, effects that enabled it to ensure that users crore. It will also invest about ing future growth opportuni-
in yet one more setback to Elon Musk’s ambitions to oper- used Google Search,” Kokott said. “As a ₹56 crore via a fresh subscrip- ties in Indian craft spirits…,”
ate return trips to Mars. In a statement, SpaceX said the result, Google got access to data that ena- tion of 31,820 equity shares Praveen Someshwar, MD and
Starship “experienced a major anomaly” during prepara- bled it in turn to improve its service.” and 27,577 com- chief executive,
tions for a tenth flight test. The blast enveloped the craft, The bloc’s top court often heeds the Advocate general Juliane Kokott said Google’s legal arguments fell short and the firm pulsorily con- The ₹110-crore Diageo India, said.
before massive plumes of flames and smoke mushroomed opinions of its advisers in its final rulings, abused its dominant position in the Android ecosystem to cement its lead in search. AFP vertible prefer- deal includes In September
into the night sky, according to video footage of the inci- which typically follow in several months. ence shares a two-tranche Mint reported that
dent late Wednesday. No one was injured. BLOOMBERG Google said it’s disappointed with the more than €8 billion also echoed the US with the record fine. (CCPS), it said in share purchase Diageo, the larg-
opinion and if the bloc’s top court eventu- Department of Justice’s suggestion that First, it said Google was illegally forcing the filing.
and a fresh equity est spirits maker
ally follows it, the ruling would discourage Google’s advertising technology business handset makers to pre-install the Google Following the globally, planned
Q-com startup Pico Xpress raises investment and harm Android users. should be broken up—a position backed Search app and the Chrome browser as a completion of infusion of about to pour $100 mil-
The European Commission declined to by Ribera. condition for licensing its Play Store — the the first tranche ₹56 crore lion (₹840 crore
funding from Japanese VC comment. The EU court’s final decision may prove marketplace for Android apps. and the new issu- then) in India over
Bengaluru: Japanese venture capital firm Enrission India Capi- The Android fine, which was originally pivotal for the future of the Android busi- Second, the EU said Google made pay- ance, USL will three years to
tal said on Thursday it has invested in quick commerce logistics €4.3 billion before being slightly reduced ness model—which has provided free soft- ments to some large manufacturers and own around 97.07% of Nao grow its premium portfolio
startup Pico Xpress as part of a pre-Series A round. The funding by the EU’s General Court in 2022, is ware in exchange for conditions imposed operators on condition that they exclu- Spirits’ paid-up capital on a and develop new products tai-
will support infrastructure development for deliveries ranging among a slew of EU penalties sively pre-installed the Goo- fully diluted basis. The second lored to local tastes.
from five to 120 minutes. Financial details were not disclosed. targeting Big Tech that has ANTITRUST SETBACK gle Search app. tranche of the share purchase, CEO Debra Crew said India
Founded by Aniruddha Gangopadhyay and Kamal Syal, Pico provoked a a conflict between Lastly, the EU said the to be completed later, will be was emerging as a key innova-
Xpress offers last-mile delivery across eight Indian cities. EU watchdogs and Silicon THE EU found that THE court advisers GOOGLE said it Mountain View, California- raising its ownership to 100%, tion hub for Diageo, where
Valley executives, with US Google boosted
dominance by pre-
opinions, though
non-binding, often
was disappointed,
warning the opinion
based company prevented making the craft spirits maker products like homegrown sin-
President Donald Trump installing apps and influence the EU top could hurt users and manufacturers wishing to a wholly owned subsidiary of gle malt Godawan are tested
Nikhil Kamath bets on creative slamming the fines as tariffs paying for exclusivity court’s decisions deter investment pre-install apps from running the Diageo arm. and refined before a launch in
against American firms. alternative versions of The USL board also autho- global markets. It was open to
agency set up by ex-AIB execs The Android case was one Android not approved by rized a further investment of investing in Indian craft spirit
Bengaluru: Creative agency One Hand Clap Media, founded by of four that formed the centerpiece of on mobile phone manufacturers. Google. In their September 2022 ruling at up to ₹20 crore in the alco-bev brands. Besides its investment
Aakash Shah and Naveed Manakkodan, has raised an undisclosed erstwhile EU competition chief Margre- Such contracts provoked the ire of the the lower General Court, judges had startup via equity or CCPS to in Nao Spirits, it has set up a
amount from Zerodha co-founder Nikhil Kamath. It offers digital the Vestager’s efforts to crack down on the commission in 2018, when the watchdog upheld the vast majority of the European support its working capital and ₹45 crore innovation centre in
and influencer marketing services via ad films, creative cam- growing power of big tech companies. accused Alphabet Inc.’s Google of three Commission’s arguments, but cut the fine business requirements. Goa for research and develop-
paigns and digital mandate management to the likes of Swiggy, Before being replaced as the EU’s anti- separate types of illegal behavior that from €4.3 billion after finding that regula- USL first acquired a stake in ment of premium beverages.
Chetak, BGMI, Netflix India, Bumble, EMotorad and CRED. trust commissioner by Spanish socialist helped cement the dominance of its tors hadn’t provided enough evidence for the company in March 2022. For an extended version of
COMPILED BY ROSHAN ABRAHAM Teresa Ribera, Vestager fined Google search engine, accompanying the order specific abuses by Google. Nao Spirits entered the pre- the story go to livemint.com
04 FRIDAY, 20 JUNE 2025
NEW DELHI MARK TO MARKET LIVEMINT.COM

S&P BSE Sensex Nifty 50 Nifty 500 Nifty Next 50 Nifty 100 S&P BSE Mid-cap S&P BSE Small Cap
CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE

81,361.87 -0.10 24,793.25 -0.08 22,763.50 -0.71 65,848.15 -1.41 25,320.45 -0.31 44,941.19 -1.64 52,093.75 -1.77
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

81,444.66 81,403.94 24,812.05 24,803.25 22,925.20 22,921.60 66,788.70 66,752.35 25,398.05 25,388.20 45,690.53 45,688.39 53,033.80 53,065.58
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

81,583.94 81,191.04 24,863.10 24,733.40 22,973.15 22,712.55 66,969.40 65,690.05 25,446.70 25,261.80 45,773.94 44,852.31 53,288.18 51,979.99

Relief to banks as
HZL expansion plan not enough RBI eases infra loan
Ashish Agrawal
feedback@livemint.com Mixed bag
Continued buoyancy in silver prices should support Hindustan
waste, expected to increase to 830 as global supplies rise. Spot prices at
tonnes per annum (tpa) from 800 the London Metal Exchange are 8%
tpa. After the second phase, total below Q4FY25 levels, though low
provision norms

H
industan Zinc Ltd Zinc's FY26 earnings despite dull prospects for other metals. metals refining capacity (zinc plus inventory should lend some support. Gopika Gopakumar
(HZL)’s capacity expan- Zinc and lead Silver Ebitda (in  crore) lead) would go up to 2 mtpa, with sil- Domestic demand remains strong gopika.g@htlive.com
sion plan failed to cheer 16,000 ver production capacity increasing to with sustained growth in steel pro- MUMBAI
investors, with the stock 14,000 1,500 tpa. The cost of setting up the duction where zinc is used during the

T
sliding about 10% after smelter is projected to be lower than galvanization process. he Reserve Bank of India
the promoter group offloaded 1.6% of 12,000 the global average and According to a 17 June (RBI) on Thursday
its shareholding. The company has 10,000
would help the company DIVIDEND JM Financial Institu- relaxed the provisioning
announced plans to invest ₹12,000 achieve the production DOUBTS tional Securities report, norms for project finance
crore in the first phase between FY26 8,000 cost of $1,000 per tonne, HZL’s zinc realization is loans, following appeals by
and FY28, with total capex reaching 6,000
marginally lower than DESPITE a healthy projected at $2,900 per lenders.
₹32,000-35,000 crore by FY31. current $1,025-1,050. balance sheet, the tonne in FY26, com- The RBI, in its final guide-
scale of expansion
Despite a healthy balance sheet, 4,000 Yet, the near-term raises questions over pared to $2,910 in FY25. lines, has mandated that banks
with net debt-to-equity of 0.1x at 2,000
earnings outlook dividend outlook Silver, which contrib- set aside only 1% of standard
FY25-end, and steady operating cash remains tepid, with lim- uted 29% to HZL’s FY25 asset provisioning for projects The new norms come into
flows, the scale of expansion raises 0 ited headroom for vol- THE near-term Ebitda, could benefit under construction. It has, effect from October. REUTERS
FY20 FY21 FY22 FY23 FY24 FY25 FY26* earnings outlook is
questions over future dividend pay- ume growth amid mixed muted with limited from stronger prices, however, retained the provi-
Note: Ebitda is earnings before interest, *estimates
outs. But the management has indi- taxes, depreciation and amortization Source: Company, Kotak Institutional Equities
trends for commodity headroom for which are expected to sioning requirement for oper- types of risks including legal.
cated it may tap the balance sheet to and precious metal pri- volume growth average $33 per ounce ational projects at 0.4%. The “Final guidelines on project
maintain dividend payouts. GOPAKUMAR WARRIER/MINT
ces. Despite plants run- versus $30.4 last year. JM provisioning requirement for finance comes as a relief to the
The first phase, to be completed in ing the associated mining infrastruc- may face higher royalty. ning at near full capacity, Financial estimates loans for under-construction lenders, as for operational pro-
three years after equipment order- ture to meet additional ore needs. A 17 June Kotak Institutional Equi- metals output rose by just 1% CAGR Ebitda to rise a modest 6% in FY26 commercial real estate will be jects the extant requirement
ing, involves setting up a zinc smelt- However, the expiry of lease for ties report estimates HZL’s Ebitda between FY23 and FY25. Volume against 28% growth in FY25. slightly higher at 1.25%. continues at 0.4%, which is
ing plant of 0.25 million tonnes per three of its five mines in 2030, from the expansion project to decline guidance for FY26 stands at 1,100 The stock trades at an enterprise The new norms come into lower than 1%/2.5% indicated
annum (mtpa) capacity at its existing accounting for 65% of its total ore by 17% in case of a 10% increase in kilo tonnes (kt) against the 1,052 kt value of 9.1x FY26 estimated Ebitda, effect from October. in the earlier draft. For under-
facility in Dariba, Rajasthan, increas- production, dampens the returns royalty. Also, the report pointed out output in FY25, and silver at 705 ton- as per Bloomberg, slightly higher than This is a major relaxation construction project finance,
ing the total capacity by over one- prospects from the project. While the that the project is prone to delays. nes, against 687 tonnes in FY25. the five-year average of 9x. It faces risk from the draft guidelines provisions are kept at 1% vis-a-
fifth to 1.38 mtpa. About half of the company may be able to retain the HZL would also set up a plant to Zinc prices are expected to fall from commodity price fluctuation released in May last year that vis 5% suggested in the draft.
investment would go towards build- mining rights over these mines, it increase the recovery of silver from marginally after a 16% jump in FY25 and lacks near-term upside triggers. had proposed that lenders This is however higher than
must set aside 5% of the loan 0.4% applicable at present for
amount—for potential losses— banks,” Karthik Srinivasan,
for an under-construction group head, financial sector

Dull summer cools Voltas’s AC sales in seasonally strong Q1 project, 2.5% for those already ratings, Icra, said. He sees lim-
operational and 1% once the ited impact on NBFCs as suffi-
project has ade- cient provisions
quate cash flow to The RBI, under are provided as
Manvi Agarwal But with channel inventory at production-linked incentives. The JV posted 57% volume repay obligations.
Catching a cold governor Sanjay per the expected
feedback@livemint.com 6-8 weeks and weak second- Revenue growth of Voltas’s unitary cooling products business
Increased backward integra- growth in FY25, though much “Rationaliza- Malhotra, has credit loss assess-
ary demand, the industry is is set to drop steeply in FY26. tion should keep costs ele- of that came from lower-mar- tion of standard taken multiple ment and provi-

T
he summer ended in a tracking below expectations vated,” said a Nomura report. gin stock-keeping units, keep- asset provision- sioning at present
Unitary cooling products revenue (in  crore)
ing requirement
steps since Jan to is closer to the
rush thanks to unsea- in the April-June first quarter Year-on-year growth (in %) (right-hand scale) It has factored in a 10%/21% ing profitability elusive. Voltas
sonal rains. But that left (Q1FY26). The industry is UCP volume growth for Voltas plans to contain VoltBek to 1% for projects stimulate credit requirement.
12,500 40
air conditioner sales suffering offering free installation and in FY26/27, while maintain- Ebitda margin at -5% in FY26. under construc- demand “Also, the provi-
10,000 30
in the typically strong June bundled deals to move stock, ing Ebit margin at 8.5%/9.0%. In the electro-mechanical tion, which shall sions are applica-
quarter. raising the risk of discounting. 7,500 20 New Bureau of Energy Effi- projects and services business, gradually ble prospectively,
In an analyst meet,Voltas Voltas’s room air condi- 10
ciency standards for air condi- international order inflows increase for each quarter of from October 2025 and, thus
5,000
Ltd said room air conditioner tioner plant in Chennai is run- tioners from January will raise have been slow. But domestic DCCO (date of commence- overall impact for lenders shall
volumes dropped 20-25% ning at suboptimal utilisation. 2,500 0 unit costs by ₹800-1,000, project activity is expected to ment of commercial opera- be limited,” he added.
year-on-year in April and May The management expects it to 0 -10 which Voltas intends to pass pick up meaningfully in FY26. tions) deferment,” said RBI. The RBI, under governor
for it and the industry. Voltas’ improve to 75-80% by the end FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26* on to consumers. This could To be sure, at 35x FY27 esti- Separately, RBI has permit- Sanjay Malhotra, has been tak-
*estimates Source: Company, Kotak Institutional Equities
unitary cooling products seg- of FY26, provided volumes drive pre-buying in Q3FY26 mated earnings, as per Bloom- ted deferment of date of com- ing steps to stimulate credit
ment, comprising room air recover in the second half. GOPAKUMAR WARRIER/MINT
(October-December). berg, Voltas’s stock isn’t cheap. mencement of commercial demand. Since January, the it
conditioners, contributed Persistent volume pressure cooling products (UCP) seg- aggressive pricing/higher dis- Another relative bright spot For the valuation to sustain, operations (DCCO) to up to has reduced risk weights on
69% of its revenue in 2024-25. could weigh on Voltas’s profit ment can achieve a high sin- counts to recover market is VoltBek, Voltas’s joint ven- demand for room air condi- three years for infrastructure bank loans to small borrowers
Some recovery was seen in margins and FY26 earnings. gle-digit Ebit margin in FY26. share are likely to lead to mar- ture with Turkey’s Arçelik for tioners and the company’s projects and up to two years and non-bank lenders, eased
June in parts of north India. Voltas believes its unitary “Rising competition and gin risks for Voltas despite large household appliances. execution must improve. for non-infra projects. rules for small-ticket gold
This is a bit tougher from loans and relaxed rules around
the draft norms, which liquidity requirements.
Mark to Market writers do not hold positions in the companies discussed here unless otherwise informed allowed up to four years of For an extended version of
extension of DCCO due to all the story, visit livemint.com

Catch-22 for banks as repo Dayanidhi asks brother Kalanithi to hand over Sun TV
cut reduces interest rates FROM PAGE 1 Murasoli Maran’s wife Mallika
Maran. Kalanithi owns 75% of
and interests of the other family
stakeholders and to clandes-
Dayanidhi and Kalanithi had
reportedly not spoken to each
compliance officer Ravi Rama- Sun TV, which has a market tinely usurp absolute control other for several years.
FROM PAGE 1 moorthy, two chartered capitalization of ₹24,356.4 over the said corporate entities, Text messages and calls to
Shrinking returns accountants and other financial crore. According to Forbes, No.1 (Kalanithi Maran) of you Dayanidhi and Kalanithi went
system to structural liquidity Banks’ savings deposit rates are currently at the lowest since executives. Dayanidhi also Kalanithi is estimated to be have orchestrated the falsifica- unanswered. Dayanidhi’s law-
FY01, when the central bank started collecting such data.
issues,” Das had cautioned in claims in the legal notice that worth $2.9 billion. tion of company records and yer Suresh did not respond to
Current deposit rate (in %)
July. their father died intestate, that “In order to take over the manipulated statutory registers texts and calls.
To be sure, the liquidity situ-
State Bank of India (15 Jun 2025) 2.50 is, without leaving a will. entire company and its assets to create an illusion that the Dayanidhi is a four-time MP,
ation is different now than last HDFC Bank (10 Jun 2025) 2.75 Dayanidhi, 58 and Kalanithi, for the personal benefit of No.1 said equity shares were trans- having won from Chennai Cen-
year, with system liquidity ICICI Bank (12 Jun 2025) 2.75 60, are sons of former Union (Kalanithi Maran) & 2 (Kaveri) ferred and acquired by No.1 of tral constituency in 2024.
comfortably in surplus. Bank of Baroda (12 Jun 2025) 2.70-4.25 minister Murasoli Maran and of you, No.1 of you orchestrated you at a paltry ₹10/- per share Sun TV claims to be the
As rates fall, attracting Axis Bank (12 Jun 2025) 2.75
the grandnephews of M. Kar- a deceptive and devious plan in Seven other execs were also on 10.11.2005,” country’s largest listed media
deposits could become chal- unanidhi, former chief minis- active conspiracy with No.2 to 8 served a legal notice. BLOOMBERG “It is very unfortunate,” an conglomerate, with 37 TV
lenging, bankers said. Large Canara Bank (19 May 2025) 2.70-4.00 ter of Tamil Nadu. of you. As part of executing executive privy to the develop- channels, 69 radio stations, and
banks like State Bank of India, Kotak Mahindra Bank (18 Jun 2025) 2.75 Their uncle Stalin is the cur- your premeditated fraudulent ment said, adding, “It is a pri- three daily newspapers. Its film
HDFC Bank and ICICI Bank Federal Bank (17 Jun 2025) 2.50-6.25 rent chief minister of Tamil scheme, taking advantage of health, No.1 of you and No.2 of vate family matter. Since a legal division Sun Pictures owns the
recently lowered their savings IDFC First Bank (17 Jun 2025) 3.00-7.00 Nadu and the president of the family’s situation, espe- you commenced your first ille- notice about some properties SunRisers Hyderabad IPL
deposit rates to 2.5-2.75%, the DMK. cially when my client’s father’s gal activity in September has been sent, I’m sure Kala- team.
Indian Overseas Bank (18 Jun 2025) 2.65-2.90
lowest since RBI began collect- The legal notice said Sun TV, health was critically ill, that he 2003,” said the legal notice. nithi will respond accordingly”. According to an executive,
ing such data in FY01. While YES Bank (21 Apr 2025) 3.00-5.00 founded in 1985, had two could pass away at any moment “With a sinister and premed- “This has been simmering SunRisers Hyderabad is valued
savings deposits earned 4% RBL Bank (16 Jun 2025) 3.00-6.75 shareholders: Karunanidhi’s and the entire family was con- itated intent to unlawfully for a long time now,” said a sec- at ₹17,000 crore or $2 billion.
interest in FY01, the rate stood Figures in bracket are dates of last revision second wife M.K. Dayalu, and cerned about his deteriorating eliminate the legitimate rights ond executive, adding that varun.sood@livemint.com
Source: Bank websites
at 2.7-3% in September 2024.
PARAS JAIN/MINT
“Today, deposit rates, espe-
cially savings, are very low and a bank deposits, said Biji S.S., sen- Cooling credit demand
potential depositor or investor is ior general manager and head of could offer banks a breather for
likely looking at all possible branch banking, South Indian some time. Growth in non-food
options, including deposits, that Bank. The chief executive of a credit slipped to 10.2% year-on-
Central banks trim rate as war, tariffs fog outlook
provide some real rate of return. public sector bank said the len- year in April, down from 19% a
In that context, a deposit prod- der could go for a 15-20 bps cut year earlier, RBI data showed. Reuters US President Donald move seen weakening the by 25 basis points said there rate to 2.00% from 2.25% on
uct paying 2.5% will not be seen in savings rate, joining peers However, whenever credit feedback@livemint.com Trump’s haphazard threats of global economy and so keeping were more cuts to come due to Wednesday and said that, with
as an investment who have already demand picks up, banks will ZURICH heavy trade tariffs and an esca- a lid on inflation pressures in a more benign outlook for pri- price pressures weak, it may
product and Growth in done so. have to push for more deposits, lating Israel-Iran conflict have many countries. ces. ease further before the end of

T
attract a whole lot non-food credit The share of or risk drawing regulatory glare he Swiss and Norwegian left top central banks trying to “Inflationary pressure has “Inflation has declined since the year to boost sluggish
of funds,” said Sas- slipped to 10.2% low-cost deposits on their credit-deposit ratios. central banks became the steer policy in conditions of decreased com- the monetary pol- growth.
wata Guha, senior year-on-year in — current and The CD ratio indicates how latest European rate-set- near-unprecedented uncer- pared to the pre- Trump is icy meeting in On 6 June, the European
director, financial
April, down from savings accounts much of a bank’s deposits are ters to ease monetary policy on tainty for the global economy. vious quarter,”
due in coming March, and the Central Bank cut its main inter-
institutions or Casa — in over- being utilized for loans. Thursday, citing a weaker infla- Speaking after a two-day the Swiss inflation outlook est rate for the eighth time in
(banks), Fitch Rat- 19% a year earlier, all deposits has “If credit demand picks up, tion outlook that contrasted meeting where Fed policymak- National Bank days to say for the coming the past year and signalled a
ings. according to RBI been shrinking banks will need to rebalance sharply with the Federal ers kept rates on hold, the US said as it cut rates whether tariffs year indicates pause in policy easing at least
Guha said he for sometime now their funding mix and mobilize Reserve’s warnings about central bank’s chair Jerome by 25 basis points currently pegged lower inflation next month because inflation
was not sure if and the March more deposits, particularly higher US prices. Powell on Wednesday laid out to zero and did at a 10% baseline than previously was now safely back at its 2%
there are ways other than mak- quarter was no exception. retail savings accounts. This The Bank of England kept how import tariffs imposed on not rule out will rise expected,” Gover- target after three years of over-
ing deposits more attractive for Casa ratio of SBI, HDFC could pose a challenge unless rates on hold as expected, while America’s trading partners will returning to neg- nor Ida Wolden shooting.
current and potential customers Bank and ICICI Bank fell 110 banks enhance their competi- flagging that they would remain raise prices for US consumers. ative rates. Bache said of Earlier this week the Bank of
for greater deposit mobilization. bps, 340 bps, and 40 bps, tiveness or offer better digital on a “gradual downward path” Trump is due in coming days In a move that took most inflation which slowed to 2.8% Japan kept interest rates steady
Other bankers are hopeful that respectively, between Q4 of value propositions,” said Biji. in a finely balanced statement to say whether tariffs currently analysts by surprise, even Nor- in May. and said it would move cau-
faced with macro-economic FY24 and FY25, as per data shayan.g@livemint.com that also acknowledged pegged at a 10% baseline will way’s central bank—long the That mirrored the view tiously in removing remnants
uncertainties, many investors compiled by Kotak Institu- For an extended version of the “heightened unpredictability” rise—in some cases to more most hawkish of major central taken by Sweden’s central of its massive, decade-long
may stick to safer options such as tional Equities. story, go to livemint.com. in the global environment. than double that level—in a banks —also cut its policy rate bank, which cut its key interest stimulus.
LIVEMINT.COM CORPORATE FRIDAY, 20 JUNE 2025
NEW DELHI 05

Tata chair Chandrasekaran Trent sticks to its US resumes

target of growing visas for
skips TCS AGM amid AI crisis 25% every year
foreign
students
Suneera Tandon & AP
Vaeshnavi Kasthuril feedback@livemint.com
This is the first time in 18 years that the Tata Sons’ chairman has missed TCS annual meeting WASHINGTON
NEW DELHI

T
he US State Department
Jas Bardia & Varun Sood

T
ata group-backed Trent said on Wednesday it is
BENGALURU Ltd remains committed restarting the suspended
to the long-term target of process for foreigners applying

N
atarajan Chandrasekaran growing 25% annually, focus- for student visas but all appli-
skipped Tata Consultancy ing on brands such as its value cants will now be required to
Services’ annual general fashion format Zudio, opening unlock their social media
meeting on Thursday stores in micro-markets, and accounts for government
after staying away from expansion into new categories, review.
Tata Consumer Products Ltd’s share- the retailer told analysts at its Trent operates 1,091 stores as The department said consu-
holder meeting a day earlier, as the investor day. of 31 March 2025. BLOOMBERG lar officers will be on the look-
Tata Sons chairman battles a crisis fol- It seeks to operate in catego- out for posts and messages that
lowing a deadly Air India plane crash ries with repeat consumer pur- including its first two overseas could be deemed hostile to the
last week. chases instead of chasing like- stores in 2024-25. Westside, a United States, its government,
This is the first time in 18 years that for-like (LFL) sales growth, lifestyle and apparel brand, culture, institutions or found-
Chandrasekaran has missed TCS’s store count growth, and total ended the year with 248 stores. ing principles.
shareholder meeting since he was addressable market (TAM), Trent’s apparel division, In a notice made public
inducted into the board in 2007. He Nuvama Institutional Equities which includes brands such as Wednesday, the department
served as the chief executive officer of said in a report released on Zudio and Westside, contrib- said it had rescinded its May
TCS from 2009 to 2017, when he was Thursday following Trent’s 18 uted about 80% of the com- suspension of student visa pro-
picked to take over as the chair of Tata June investor day meet. pany's overall revenue. Its cessing but said new applicants
Sons. “The chairman of the board, N. “There is no point driving stock has rallied by over 700% who refuse to set their social
Chandrasekaran, will not be able to LFL via discounts or driving over the past five years on BSE. media accounts to “public” and
attend the meeting due to some exi- price-led growth at the cost of India’s retail market is pro- allow them to be reviewed may
gencies,” said Yashaswin Sheth, TCS’s volumes (and losing relevance) jected to grow to $2 trillion in a be rejected.
company secretary. or chasing TAM decade from $820 It said a refusal to do so could
TCS’s stock ended about 1% lower at Since the plane crash, N. Chandrasekaran has met with Air India staff, government officials and Boeing representatives. PTI by adding more Trent is billion in 2023, be a sign they are trying to
₹3,424.25 on the BSE on Thursday. and more catego- aggressively per Boston Con- evade the requirement or hide
During TCS’s 30th annual general with Air India employees, government rebuilding efforts to aid those who have karan has attended all board meetings ries. Trent oper- pursuing growth, sulting Group. their online activity.
meeting, wishes poured in for Ratan officials and Boeing and GE Aerospace been impacted,” said Mistry, in in the past, he is probably trying to bal- ates under a dis- aligning with Despite a six- The Trump administration
Naval Tata, former chairman emeritus representatives. The Air India flight response to shareholder questions dur- ance his time commitments,” said Shri- tinct set of con- fold jump in reve- last month temporarily halted
chairman Noel
of the Tata Group, who passed away on was a Boeing 787-8 Dreamliner model, ing TCS’s AGM. The Aircraft Accident ram Subramanian, founder and man- straints compared nues during the scheduling of new visa
9 October due to age-related issues. and GE Aerospace built the two Investigation Bureau (AAIB), part of the aging director of the proxy advisory to other brands,” Tata’s vision of FY19-25, the man- interviews for foreign students
Noel Tata was named as the chairman engines. Mistry said that the Tata ministry of civil aviation, is investigat- firm InGovern Research Services. the report said. growing 10x agement indi- hoping to study in the US while
of Tata Trusts. At least four wishes Group would extend support to those ing the cause of the air crash. A team Chandrasekaran is the chairman of It said the cated that Trent’s preparing to expand the
came in for Chandrasekaran, with six listed Tata Group companies, retailer’s commit- share in the coun- screening of their activity on
sitting chairman Keki Mistry add- CRITICAL TIMES including Tata Consultancy Servi- ment to no discounting, maxi- try’s fashion and lifestyle retail social media, officials said.
ing that Chandrasekaran was ces, Tata Motors, Tata Steel, Tata mizing full-price sales, avoid- industry remains in low single- Students around the world
“working a lot on the unfortunate THE Tata Sons HE served as the HE is also the chair HE is the chairman Power, Tata Consumer Products ing advertising, and exclusively digits, analysts at Motilal Oswal have been waiting anxiously for
incident that happened last week”. chairman battles a
crisis following a
CEO of TCS from
2009 to 2017, when
of four privately-held of six listed Tata
Tata Group Group companies,
and Indian Hotels Company. He is using private labels narrows its Financial Services said. US consulates to reopen
On 12 June, an Air India flight from deadly Air India he was made chair of companies, including TCS, Tata also the chair of four privately-held strategic options. However, Trent believes appointments for visa inter-
Ahmedabad to London crashed plane crash Tata Sons including Air India Motors, Tata Steel Tata Group companies, including Trent is aggressively pursu- there is still a “long runway” for views, as the window left to
soon after take-off, killing more Agratas, Tata Electronics, Tata Dig- ing growth, aligning with growth and aims to grow at 25% book their travel and make
than 240 people and making it the ital and Air India. He stepped down chairman Noel Tata’s vision, annually over the longer term housing arrangements narrows
country’s worst civil aviation disaster in affected by the Air India crash. from the National Transportation as the director and chairman of the which is to grow the retailer 10x through a multi-brand, cluster- ahead of the start of the school
almost three decades. “The Tata Group is fully committed Safety Board, the US investigative board of directors of Tata Chemicals its current size. It operates 1,091 based approach to increase its year. Foreign students make up
Chandrasekaran was among the first to support the ongoing investigation agency responsible for civil transporta- last month. Tata Motors Ltd’s annual stores as of 31 March 2025. market share in key micro- more than 15% of the total stu-
of the Tata Group leaders to reach and cooperate with the regulatory tion accident probe, the Federal Avia- general meeting is on Friday. Fast-growing Zudio led the markets, they added. dent body at almost 200 US
Ahmedabad, saying it was “the worst authorities. The Tata Group has tion Administration, Boeing and GE j a s . b a r d i a @ l i v e m i n t . c o m expansion with 244 new out- suneera.t@htlive.com universities, as per an Associ-
day” of his “professional career”. pledged comprehensive support Aerospace are assisting the AAIB. For an extended version of this story, go lets, increasing its presence to For an extended version of the ated Press analysis of federal
Since then, Chandrasekaran has met including financial assistance and “Considering chairman Chandrase- to livemint.com 765 stores across 235 cities, story, visit livemint.com. education data from 2023.
06 FRIDAY, 20 JUNE 2025
NEW DELHI CORPORATE LIVEMINT.COM

Slow recovery from dubious m

MOVES
pre-bankruptcy transactions A weekly list of C-Suiters who have moved up
the corporate ladder either within or outside
their companies.
Aabhinna Appointed as chief marketing
Suresh Khare officer at Nucleus Software

Only a tenth of amount in ‘avoidance transactions’ disposed of by tribunals recovered in ’25 Abhik Appointed as chief human
resources officer at Arka Fincap
Sinha

Former Sebi chairman Gireesh Chandra Prasad Avinash Appointed as president projects at
U.K. Sinha. PTI gireesh.p@livemint.com Nagpal Bhumika Realty
NEW DELHI
Bhuwnesh Appointed as vice president HR at
Gaja names Singh Chauhan Havells India

C
ompanies on the brink of
collapse tend to do certain
former transactions that benefit
the promoters or close
Dr. N A
Vekariya
Appointed as president API R&D at
Ipca Labs

Sebi chief as partners but are detrimen-

tal to the organization and its creditors.
While such ‘dubious transactions’ can
Manish
Israni
Appointed as chief technology
officer at Westcon-Comstor

non-exec later be set aside during bankruptcy

proceedings by tribunals, getting the
Manu
Saigal
Appointed as country manager
enterprise Solutions India at Hays
money back is proving an uphill task.
chair in rejig Data from regulator Insolvency and
Bankruptcy Board of India (IBBI) Nazia
Appointed as chief people officer,
Pizza Hut, Indian Subcontinent at
reviewed by Mint showed that in FY25, Abidi Yum Brands
Sneha Shah just ₹1,322 crore or a tenth of the amount
sneha.shah@livemint.com
MUMBAI

G
aja Capital Alternatives
AMC, a homegrown
private equity firm, has
appointed former Securities
and Exchange Board of India
chief U.K. Sinha as non-execu-
involved in ‘avoidance transactions’ dis-
posed of by tribunals were recovered.
And overall, just 12% of the ₹65,650
crore worth voidable deals executed by
promoters and management of 368
companies—and where tribunals have
given their verdict—were recovered,
according to IBBI.
Such deals could include paying off a
Nilesh
Garg

Pankaj
Goel
Pradeep
m Appointed as chief business and
growth officer at Assurance
International

Appointed as chief technology

officer at Leadsquared

Appointed as chief executive

MOVES
Kumar officer India at Infravision
tive chairman and rejigged its friendly creditor just before bankruptcy As per IBBI, a decision on avoidance transactions by tribunals will add recovery to creditors by at least 10%. MINT
board of directors, as the com- proceedings while ignoring others, Appointed as chief financial and
pany prepares to launch an ini- moving assets to related parties or hid- add recovery to creditors by at least 10%. However, this makes it hard to ceedings through litigation, and tracing Pranav strategy officer, Pizza Hut, Indian
tial public offering (IPO). ing them, selling assets for less than Yogendra Aldak, partner at Lakshmi- recover money from avoidance transac- diverted assets is complex, especially Dahiya Subcontinent at Yum Brands
The firm, looking to raise they’re worth, or taking loans on unfair kumaran and Sridharan Attorneys, said tions. For example, only deals made when routed through layers of related
₹500 crore from the IPO will or excessive terms. the high amounts being flagged as within two years before the insolvency entities or parked overseas. Appointed as group president
become the first standalone “There is often misconduct by earlier avoidance transactions highlight an process can be reviewed, which means “The high quantum of flagged trans- Rajesh Engineering Business at Neterwala
private equity firm in India to management pre-insolvency and it alarming trend of promoters deliber- many questionable transactions are actions reflects serious lapses and, in Saigal Group
list on the exchanges. might be a reason for the insolvency in ately using such transactions “to deprive never examined, Aldak explained. some cases, wilful misconduct by pro-
The company has named some cases,” said Dhananjay Kumar, a company of its resources for self-serv- Another problem, he said, is tracking moters, particularly during the twilight Rakesh Appointed as managing director
Shailesh Haribhakti, chartered partner (head-insolvency and period before insolvency,” said Solanki India at Vargus India
accountant and a seasoned restructuring) at Cyril Amarchand UPHILL BATTLE Jhunjhunwala. “It shows that pro-
board member on many firms, Mangaldas. “Recovery of such moters, anticipating distress, often Saurabh Appointed as chief financial
Prithvi Haldea, founder of amounts is a fundamental function JUST 12% of voidable SUCH deals could IBC is not designed THIS is the reason prioritize asset stripping over stake- Agarwal officer at RedBus
Prime Database, Manish Sab- of a law like the Insolvency and deals executed by
promoters and
include paying off a
creditor ahead of
to recover debt, it that makes it hard
prioritises resolution to recover money
holder interest, highlighting the
harwal, vice-chairman of Bankruptcy Code (IBC).” need for stricter pre-insolvency Appointed as Group chief
management of 368 bankruptcy while of distressed firms, from avoidance Shubham executive officer at Infomerics
TeamLease Services, Arindam Other challenges pointed out by cos were recovered ignoring others says Aldak transactions oversight and faster adjudication Jain
Bhattacharya, senior advisor Kumar include lack of data to chal- timelines.” Ratings
and emeritus partner of Boston lenge these transactions, lack of The fact that it often takes consid-
Consulting Group and Shital funds with resolution professionals, and ing purposes leading to a snowball effect the money, as it is often moved through erable time for a bankruptcy petition by
Sumit Appointed as executive VP at
Mehra, director and share- slow movement in National Company during times of stress”. shell companies or hidden in other a creditor to be admitted in a tribunal Gupta Zurich Kotak General insurance
holder in Human Capital for Law Tribunal. Further, Aldak said IBC has not been countries, making recovery even only allows more time for such unscru-
Third Sector, India, as inde- The matter assumes significance designed as a debt-recovery machine harder. pulous activities to take place.
Swati Appointed as managing director at
pendent directors. because money recovered from dubious and, instead, prioritises resolution of Anisha Jhunjhunwala, senior con- Till the end of March 2025, close to Dalal Zydus Healthcare
It is expected to file its IPO transactions adds to the pool of resour- distressed companies. So, to avoid sultant-IBC at NPV Insolvency Profes- 1,200 bankrupt enterprises have been
Yatish Appointed as chief business
documents later this quarter. ces available for a corporate restructure delays in rescuing businesses, taking sionals Pvt. Ltd, said that despite clear restructured under IBC and their credit-
Bhargava officer at Honasa Consumer
As per a January 2025 Mint plan. According to IBBI’s estimates, on decisions on avoidance transactions has evidence, enforcing clawbacks from ors got the chance to recover ₹3.89 tril-
report, Gaja Capital appointed a conservative scale, a decision on avoid- been kept independent of corporate avoidance transactions is a lengthy legal lion or about a third of their admitted
Source: Accord India, executive search worldwide
investment banks IIFL Securi- ance transactions by tribunals would debt resolution. battle, with promoters delaying pro- claims.
ties and JM Financial to help
with the IPO. It recently raised
₹125 crore in a pre-IPO place-
ment led by HDFC Life, SBI
Life, investor Jagdish Master
and Akash Bhanshali (Enam).
Strike threat looms over Hyundai’s Chennai plant Amazon to
This comes amid rising
investor interest in India’s asset FROM PAGE 1 In India, a union that ple rounds of discussions and ing trade negotiations con- Hyundai is the second South
scale India
management companies.
Recently, ICICI Prudential
AMC announced plans to go
workers in India, according to
CITU’s state president A.
secures affiliation from 51% or
more workers is entitled to be
recognized as the majority
negotiations. clude, HMIEU will have legal
“We are currently engaged recourse to address its griev-
in ongoing discussions with ances, if any.
Korean chaebol after Samsung
to face worker displeasure in
Tamil Nadu. Samsung India
operations,
public. Market experts expect
the firm to be valued at ₹1 tril-
Soundararajan. The associa-
tion also wants the company to
union by the employer.
HMIEU is awaiting the conclu-
union representatives of “The injunction granted by
UUHE, which is the recog- the Madras High Court to
Workers’ Union (SIWU), a
worker union affiliated to pump in
lion. Mutual fund AMCs and engage with it for the wage sion of Hyundai’s ongoing nized majority union at Hyun- Hyundai in March temporarily CITU, had in September last
wealth management firms like
HDFC AMC, Nippon Life AMC,
negotiations. “The union is
asking the management to
negotiations with UUHE
before deciding its further
dai Motor India Limited and as restrains the union from initi-
per the Labour Department of ating strike action,” said
year and again in March this
year called strikes at the com-
₹2,000 cr
UTI AMC, Aditya Birla Sun Life recognize them as the majority course of action, which can Government of Tamil Nadu,” Rohitaashv Sinha, partner at pany’s plant near Chennai. The
AMC, 360 One (formerly IIFL union as now they have 2,000 include a strike, CITU’s the company said. law firm King union wanted to be recognized Reuters
Wealth), Anand Rathi Wealth, workers associated under Soundararajan said. “We remain In India, a union Stubb & Kasiva, as the majority union, a theme feedback@livemint.com
and Nuvama have already gone them,” said Soundararajan. Hyundai negotiates three- focused on reach- that secures Advocates and repeating itself at Hyundai’s

A
public and many delivered “This can be done using a year wage agreements with its ing a mutually affiliation from Attorneys. “How- manufacturing facility just half mazon will invest more
strong returns since their lis- secret paper ballot.” workers in India. The last beneficial out- 51% workers’ can ever, such an an hour’s drive away. than ₹2,000 crore
tings. Nuvama Wealth Man- The current majority union agreement was reached in May come. HMIL
agement's stock, for example,
Hyundai got a temporary stay
be recognized as injunction does In fact, HMIEU had called ($233 million) in India
for Hyundai’s two integrated 2022. “When the last settle- from Madras HC in March. MINT leads the industry not grant the for a strike to show solidarity in 2025 to expand and update
surged 200% since its Septem- manufacturing facilities near ment was done, the union in offering among majority union by company indefi- with Samsung’s workers in its operations infrastructure,
ber 2023 listing. Chennai is the United Union of (HMIEU) was not in majority, employee friendly company, the best-in-class the employer nite or absolute March, prompting Hyundai to develop new technology for its
In January, the investment Hyundai Employees (UUHE), but now they are,” Soundara- Hyundai Motor India Ltd con- wages and bene- protection from move the Madras High Court fulfilment network and
firm had converted itself into a which is not affiliated to any rajan said. tinues to maintain a harmoni- fits, and priori- future strikes." for an injunction. Moreover, improve delivery safety, it said
public limited company from a political party. UUHE has dis- In an emailed statement to ous and inclusive work envi- tizes employee well-being and If it is unhappy with the out- the union had also threatened on Thursday.
private limited one; a prelude puted HMIEU’s claims that it Mint on Thursday, Hyundai ronment while adhering to all operational continuity as part come of the wage negotiations, to hold an indefinite strike The investment builds on
to an IPO. On 1 January, the holds majority affiliations referred to HMIEU as an applicable Indian laws and of its long-standing commit- HMIEU can move the state’s from 5 April onwards to ask top of Amazon’s prior invest-
company registered its name as from workers. “We have unrecognized minority union internal protocols,” the com- ment to India and the automo- labour department to either management to listen to its ments for the creation of an
Gaja Alternative Asset Manage- 2,000 members and have all and said that “in lieu of the pany said. tive industry.” challenge the wage settlement demands of recognising the operations network to deliver
ment Ltd, changing it from required documents to prove ongoing litigation before the On the wage negotiations, Legal experts said while the or seek voting by secret ballot union as the majority union. to all serviceable pin-codes in
Gaja Alternative Asset Manage- the membership. The negotia- Court, HMIL cannot comment the company said in its state- company is currently pro- to establish itself as the major- ayaan.kartik@live- the country, it added.
ment Pvt Ltd. tions with the management on any matters which are sub- ment that long-term settle- tected against any worker ity union, said Kinjal Cham- mint.com In June 2023, the e-com-
For an extended version of this are ongoing,” UUHE’s presi- judice”. “As a responsible and ments are a standard industry- strike due to the Madras High paneria, partner at law firm For an extended version of merce major—which competes
story, go to livemint.com dent Ramanathan said. ethical corporate entity and an wide practice involving multi- Court’s orders, once the ongo- Solomon & Co. the story, go to livemint.com. with Walmart’s Flipkart and
billionaire Mukesh Ambani’s
Reliance Retail in India—had
said it will take its investments

Sharmila Tagore, Raakhee draw Bengali viewers in with family films in the country to $26 billion by
2030, without providing a
breakdown. The new invest-
ment will be used to launch
Lata Jha and Moushumi Chatterjee instrumental in bringing cul- tering major films around fes- the elderly come to theatres, in new sites and upgrade existing
lata.j@htlive.com (Aarii) have helped the local turally rooted stories to the tive periods that only ends up which case, multiple tickets are facilities across its fulfilment
NEW DELHI industry reclaim some of its forefront. Projects such competing for audience atten- bought for the entire family. and delivery network, improv-
past glory. These movies as Bohurupi, Raktabeej tion. With better planning and Economically, films starring ing speed and processing

W
est Bengal’s theatri- emerged as hits when barely and Haami have managed to release strategies, films can be elderly protagonists make capacity, it said.
cal business has anything was working in thea- successfully better positioned sense,” Mukherji added. Amazon also plans to use
received a boost tres across languages, thanks to blend traditional Bengali industry to shine individu- Experts said Bengali indus- tech to alert delivery associates
lately after going back to doing their appeal among family themes with con- has long grappled ally and reach try has long grappled with the about unsafe speeds and ensure
what it does best: family films. audiences. temporary with dominance their full potential. dominance of Hindi films that equitable distribution of deliv-
This is while films in most other Aamar Boss grossed ₹4.15 appeal, finding of Hindi films that Filmmaker Sri- continue to be popular in the ery routes. Some of the funds
languages have put up a mixed crore in worldwide box office both critical and jit Mukherji, state. While a big Bollywood will also be used to expand initi-
continue to be
box office show over the past collections, while Puratawn commercial known for hits star vehicle can make ₹35-40 atives to improve the health
few months, ranging from and Aarii clocked in ₹1.52 crore appreciation.” hugely popular in like Killbill Society crore in box office collections, and financial well-being of its
inconsistent (Tamil, Telugu) to and ₹33 lakh, respectively. The Bengali the state and Shotyi Bole regional language films only employees, the company said.
disastrous (Hindi). While the figures aren’t com- The figures aren’t comparable to Hindi, Tamil or Telugu movies but box office is cur- Shotyi Kichhu Nei, clock up to ₹10-15 crore. In March, the IT ministry
Even though cinemas in the parable to Hindi, Tamil or Tel- reflect significant demand for regional language cinema. REUTERS rently in a reflect- both released this That said, when the narrative said cloud services provider,
state were dominated by Bolly- ugu movies, they reflect signifi- ive phase, offering an opportu- year, agreed that one sure-shot, is crafted to match the gravitas Amazon Web Services, will
wood over the past few years, cant demand for regional lan- ing with Bengali audiences, leading role in mainstream nity for strategic recalibration, safe bet to box office success in of senior actors, the cinematic invest about $8.2 billion in
the recent success of films fea- guage cinema that is often often featuring veteran actors Bengali cinema,” said Ashish Saksena added. An area of Bengali cinema in the past 10 experience evokes nostalgia India.The announcements
turing yesteryear stars such as limited to a single market. in fresh narratives such Saksena, chief operating offi- improvement that could aid years is the family drama. and also speaks powerfully to come at a time India’s e-com-
Sharmila Tagore (Puratawn), “There has been a trend of as Aamar Boss, which marked cer, cinemas, BookMyShow. growth could be in optimising “Several filmmakers have audiences, resulting in merce market is booming.
Raakhee Gulzar (Aamar Boss) unconventional films resonat- Raakhee Gulzar’s return to a “Production houses have been release schedules to avoid clus- shifted genres to ensure that impressive earnings. With inputs from PTI
LIVEMINT.COM CORPORATE FRIDAY, 20 JUNE 2025
NEW DELHI 07

Global conflicts temper FPI Air India faces DGCA notice

over Airbus safety lapse
optimism on India outlook Reuters
feedback@livemint.com
NEW DELHI
AI to cut
flights on 16
I
ndia’s aviation regulator has

FPIs remain net sellers for 2025, and experts expect more outflows if Israel-Iran war lingers
warned Air India for breach-
ing safety rules after three of
its Airbus planes flew despite
international
Abhinaba Saha
FPIs retreat Premium pressure? this financial year, particularly in the
being overdue checks on emer-
gency equipment, and for routes
abhinaba.saha@livemint.com
Monthly FPI net equity flows, in 2025 (₹ crore) One-year forward price-to-earnings second half. being slow to address the issue,
mumbai ratio (in times) “Next year, we will see an upward government documents show. PTI
19,860
20.2
revision in the government’s pay com- The warning notices and an feedback@livemint.com

C
S&P 500 (US)
autious investor sentiment mission, and then tech-related hiring investigation report—both Mumbai
4,223
because of the Israel-Iran Nifty 50 (India) 19.3 will pick up from 2027,” Sen said, adding reviewed by Reuters—were not

A
conflict has sparked a sig- Nikkei 225 (Japan) 18.2 that these factors will pave the way for a in any way related to last week’s DGCA warns Air India for ir India on Thursday
nificant flight of foreign -3,973 -6,232 consumption revival. “So I think we are crash of an Air India Boeing breaching safety rules. REUTERS said flights will be
capital from India, revers- Taiex (Taiwan) 14.5 at the bottom of a medium-term con- 787-8 plane that killed all but reduced on 16 interna-
ing recent inflows. Dax (Germany) 14.3 sumption cycle.” one of the 242 people onboard, to deficiencies raised by the tional routes and suspended on
Foreign portfolio investors (FPIs) Ample liquidity in the market has also and were sent days before that DGCA, “further evidencing three overseas destinations
have already pulled nearly ₹6,232 crore -34,574 Cac 40 (France) 13.7 been pushing up India’s valuation pre- incident. weak procedural control and between 21 June and 15 July.
from domestic equities in June. This FTSE 100 (UK) 12.4 mium, according to Sheth of SAMCO In the report, the Directorate oversight,” it added. The Tata Group-owned air-
outflow follows ₹19,860 crore and Securities. General of Civil Aviation Air India, which was taken line, grappling with disruptions
₹4,223 crore of inflows in the preceding CSI 300 (China) 12.1 “DIIs (domestic institutional inves- (DGCA) said spot checks in May over by the Tata Group in 2022 following the fatal plane crash
two months, respectively. FPIs remain Hang Seng (Hong Kong) 9.6 tors), including mutual funds, are on three Air India Airbus planes from the government, said in on 12 June in Ahmedabad, said
net sellers this year, and experts expect investing ₹1,300 crore in the Indian found that they were operated statement that it was “acceler- the objective is to restore
further outflows if the conflict extends. -78,027 Kospi (South Korea) 9.2 market almost daily, creating a situation despite mandatory inspections ating” verification of all mainte- schedule stability and mini-
“FPIs are free birds and aren’t under Ibovespa (Brazil) 7.7 where huge liquidity is chasing fewer being overdue on the “critical nance records, including dates mize last-minute inconven-
Jan Feb Mar Apr May Jun
any compulsion to buy stocks at spe- stocks, resulting in their premium valu- emergency equipment” of of the escape slides, and would ience to passengers.
Latest data as on 19 June 2025. Source: NSDL Source: Bloomberg
cific prices to support the counter, like ations” he said. escape slides. In one case, the complete the process in the The detailed announcement
GOPAKUMAR WARRIER/MINT
we do,” said Apurva Sheth, head of But rising crude oil prices due to the watchdog found that the coming days. comes a day after the carrier
market perspectives and research at indicates. year-on-year (y-o-y) sales growth in ongoing Israel-Iran conflict may inspection of an Airbus A320 In one of the cases, Air India said it would temporarily
Samco Securities. “Their latest position A premium valuation made sense in Q4FY25, although net profit grew 7%, weaken the arguments for India’s high jet was delayed by more than a said, the issue came to light reduce flights operated with
in the derivatives segment shows that the past because Indian Inc.’s earnings mainly aided by benign raw material valuation, Kotak Institutional Equities month before when an engineer wide-body planes by 15%.
they are heavily bearish on the Indian grew at a compounded annual growth prices and cost-cutting measures, it said. said in its report. If crude touches being carried out Air India said it from AI Engineer- “These reductions will be
stock market.” rate (CAGR) of about 24% in the last four A broad-based future earnings down- $90-100 per barrel, it can derail any on 15 May. AirNav was “accelerating” ing Services effective from 21 June 2025,
But experts also say such concerns years, said Jaiprakash Toshniwal, fund grade suggests that demand woes will hopes of India Inc’s earnings recovery in Radar data shows verification of all “inadvertently and last until at least 15 July
might be transitory as India still offers manager and senior equity research persist in the economy for some time. FY26, as raw material costs would go up that during the maintenance deployed an 2025,” the airline said in a state-
the best growth story in an era of global analyst at LIC Mutual Fund Asset Man- Yet, on the macro front, Ranju Rajan, significantly, noted experts. delay the plane escape slide dur- ment.
records, including
slowdown. “India’s macro fundamentals agement. “(However,) we need to keep head of managed accounts at Axis Secu- This bearish outlook, however, finds flew to interna- ing maintenance”. Services will be suspended
are head and shoulders above any a counterpoint in the views of some tional destina- dates of the The DGCA and on Delhi-Nairobi, Amritsar-
other top 10 economy in the world,” GEOPOLITICAL DRAG analysts. We have seen that 90% of tions such as escape slides Airbus did not London (Gatwick) and Goa
said Vikas Gupta, CEO and chief the time crude reacts much more Dubai, Riyadh respond to Reuters (Mopa)-London (Gatwick) till
investment strategist at OmniS- FPIS withdraw INDIA remains a PREMIUM valuation CRUDE oil volatility than the actual event,” said Sumit and Jeddah. queries. 15 July.
cience Capital. “From GDP growth ₹6,232 crore in June,
reversing inflows
strong macro story,
backed by high
now under pressure,
with the Nifty 50
weighs on oil-linked
sectors, though high
Pokharna, oil and gas analyst at Another case, involving an Separately, the Union civil While the Delhi-Nairobi
numbers to inflation control, build- from the previous growth, low inflation trading at 19.3x prices may be short- Kotak Securities. “The situation def- Airbus A319 used on domestic aviation ministry on Thursday route has four flights per week,
ing forex (foreign exchange) two months and forex stability forward earnings lived, say experts initely remains fragile, but global routes, showed checks were said the probe into the Air India the Amritsar-London (Gat-
reserves to maintaining forex stabil- demand for crude is falling and over three months late, while a AI -171 crash, is progressing wick) and Goa (Mopa)-London
ity, even controlling the fiscal and there is enough supply to keep price third showed an inspection was steadily in India, with the Air- (Gatwick) routes each have
current account deficits, from all angles in mind that earnings growth is rities, insists the Reserve Bank of India’s rises in check.” As a result, several two days late. “The above cases craft Accident Investigation three flights a week, according
we are one of the strongest worldwide.” expected to be in the lower double digits ongoing liquidity measures, including a experts expect that high crude oil pri- indicate that aircraft were Bureau (AAIB) having started to the airline.
Naturally, India has been command- in the medium term, based on consen- 100 basis-point rate cut this year, along ces might not sustain for long. operated with expired or investigations six days ago. The Besides, flights will be
ing a premium over its global peers, par- sus estimates,” he added. with a pickup in government capital But sectors dependent on oil, such as unverified emergency equip- investigation is being con- reduced on 16 international
ticularly in the previous five years. Cur- Still, that would be a step up from expenditure, will spur economic growth paints, tyres, petrochemicals, automo- ment, which is a violation of ducted with support from local routes connecting cities in
rently the benchmark Nifty is trading at India Inc.’s performance in 2024-25, in FY26 and FY27. biles and consumer goods, may see a dip standard airworthiness and authorities and agencies, it said North America, Europe, Aus-
19.3 times its one-year forward earnings which was mostly dismal throughout Echoing this optimism, Seshadri Sen, in earnings for a quarter before bounc- safety requirements,” the avia- in a clarification following tralia and the Far East.
estimate, a level that, while having mod- the fiscal year. According to a recent head of research and strategist at Emkay ing back for the broader part of FY26. tion regulator report said. reports it was sending black On Thursday, Air India again
erated, now sits closer to September Kotak Institutional Equities report, Global, said India will see the effects of For an extended version of the story, go Air India “failed to submit boxes recovered from the acci- apologized to the passengers
when markets peaked, Bloomberg data Nifty 500 companies reported a 5% monetary and tax stimuli playing out to livemint.com timely compliance responses” dent site to the US. affected by these curtailments.

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08 FRIDAY, 20 JUNE 2025
NEW DELHI GLOBAL LIVEMINT.COM

The US Federal Reserve

waits out the tariff economy US officials plan for a
Nick Timiraos
feedback@livemint.com
“It’s clear there are two seg-
ments within the Fed, and so
far it’s not an open warfare
possible strike on Iran
F
ederal Reserve Chair Jer- between the two,” said Mich-
ome Powell projected ael de Pass, global head of rates
confidence when he trading at Citadel Securities.
insisted the central bank was “If we do end up in a world
in a good position to handle where the tariff inflation feeds US President Donald Trump has for days publicly mused about joining Israel’s strikes on Iran
whatever the economy does through at the same time that
next—all while repeatedly the labor market is softening,
acknowledging the Fed has lit- there’s much more tension at Bloomberg
tle idea what’s actually com- that stage.” feedback@livemint.com
ing. The Fed leader defended

S
The Fed is trying to see the central bank’s wait-and- enior US officials are prepar-
how the dust will settle from see posture at a news confer- ing for the possibility of a
the aftereffects of President ence on Wednesday hours strike on Iran in coming days,
Trump’s April 2 “Liberation Federal Reserve Chair Jerome after a barrage of insults from according to people familiar
Day” tariff announcements, Powell. AFP Trump, who made new with the matter, as Israel and
among other policy changes. demands for the central bank the Islamic Republic continue to
Most economists expect tar- 19 policymakers who gather to make the equivalent of exchange fire.
iffs to lift prices over the com- roughly every six weeks to anywhere from four to 10 Some of them pointed to potential
ing months, and that is a set rates. While 10 of them—a rate cuts. plans for a weekend strike. Top leaders
worry for the Fed because narrow majority—penciled Trump argued that inflation at a handful of federal agencies have
officials still don’t feel as if in at least two rate cuts this has been tamed and that by begun getting ready for an attack, one
they com- year, the keeping overnight rates person said.
pletely cohort of around their current level of A missile from Iran on Thursday
v a n - o f f i c i a l s 4.3%, the Fed is needlessly struck an Israeli hospital for the first
quished who think inflating federal borrowing time since the war started almost a
inflation after a three-year- the Fed won’t cut at all this costs. “We have a stupid per- week ago, a reminder of the risks to
long fight. year saw its ranks rise, to son, frankly, at the Fed,” civilians in both countries.
“We haven’t been through a seven from four in March. Trump said. “He’s costing the Israel’s health ministry said there
situation like this, and I think Powell played down poten- country a fortune.” were only a number of light injuries in
we have to be humble about tial internal disagreements. Some investors warn that the incident at Soroka Medical Center
our ability to forecast it,” Pow- “You can make a case for any of cutting rates aggressively in the south of the country, as the mis-
ell said. the rate paths that you see” in without clear economic weak- sile landed in a department that had
Inflation has eased recently, the latest projections, he said. ness could backfire by pushing been evacuated just hours earlier.
but tariff effects loom. The job The divide suggests more long-term rates higher. Still, Israel will exact “the full price” from
market shows hints of soft- officials won’t consider cuts the Fed could be a useful foil the Iranian administration for the Smoke rises from a building of the Soroka hospital complex after it was hit by a missile fired from Iran in Beersheba, Israel. PTI
ness, though unemployment without clear economic weak- for Trump, because if the strike, Prime Minister Benjamin Net-
remains low at 4.2%. ness. Fed officials don’t feel as economy weakens and the Fed anyahu said. country’s most critical atomic infra-
“The data to date can be
viewed as glass half-full, or
glass half-empty,” said Krishna
if they can pre-empt any slow- subsequently cuts, he will
down because that could make claim vindication.
inflation worse, particularly Powell’s let-the-data-speak
US President Donald Trump has for structure.
days publicly mused about joining European stocks and US futures
Israel’s strikes on Iran, a move that edged lower on geopolitical uncer-
Israel hits nuclear sites,
Guha, vice chairman at Ever- after four years with inflation posture helped underline the would escalate the conflict in the oil- tainty and concerns about the infla-
core ISI.
Powell offered nothing to
running above the central central bank’s independence
bank’s 2% target. from the White House, “par-
rich Middle East. The situation is evolv- tionary impact of higher crude prices.
ing and could change, said the people, Brent rose 1.2%, trading above $77 per
Iran strikes hospital
hint at a July rate reduction, “We’ve just come through a ticularly at a time when the who requested anonymity to discuss barrel.
and investors eyed September generationally bad episode of institution is under attack, and private talks. Cash trading in US stocks and Trea- Reuters nuclear sites. A military spokesper-
as the earliest possible inflation, and that he personally is Israel said it would escalate attacks suries is closed for the Juneteenth holi- feedback@livemint.com son initially said it had also hit Bush-
resumption of rate cuts undoubtedly has Some investors under attack,” de on Iranian strategic and government day. ehr, site of Iran’s only functioning

I
paused earlier this year. With undermined con- warn that cutting Pass said. targets “to remove threats to the State Efforts to contain the escalation of srael bombed nuclear targets in nuclear power plant, but a spokes-
most relevant data still to fidence…that the rates aggressively Powell spent of Israel and undermine the Iranian the conflict continue, while the US Iran on Thursday and Iranian person later said this was a mistake
come, it made little sense for Fed has the capa- without clear much of his hour- regime,” defense minister Israel Katz weighs its options. Anwar Gargash, dip- missiles hit an Israeli hospital to have said this.
the Fed chair to commit to a bility to control long news confer- said. lomatic adviser to United overnight, as the week-old air war Earlier, the Israeli military said it
specific course of action, inflation on a pre-
economic ence reviewing all “Khamenei will be held Jets struck dozens Arab Emirates President escalated with no sign yet of an off- targeted the Khondab nuclear site
Guha said. cise basis over a weakness could that the Fed accountable,” he added, of military targets Mohamed bin Zayed Al ramp. near Iran’s central city Arak over-
The timing for rate cuts near-term period backfire doesn’t—yet— directly naming Iran’s in Iran overnight, Nahyan, said on X the war Following the strike which dam- night, including a partially-built
“could come quickly. It could of just a year or know. supreme leader Ayatollah including an between Iran and Israel aged the Soroka hospital in Israel’s heavy-water research reactor.
not come quickly,” Powell two,” said David Chief among Ali Khamenei. marks “a pivotal moment southern city of Beersheba, Prime Heavy-water reactors produce plu-
inactive nuclear
said. “We feel like we’re going Wilcox, a former Fed econo- those uncertainties is whether The comments indicate with far-reaching conse- Minister Benjamin Netanyahu said tonium, which, like enriched ura-
to learn a great deal more over mist now at Bloomberg Eco- businesses will succeed in a widening of Israel’s war reactor in the quences for both nations Tehran’s “tyrants” would pay the nium, can be used to make the core
the summer on tariffs.” nomics and the Peterson Insti- passing tariff increases along objective beyond the area of Arak and the region.” He called “full price”. of an atom bomb.
If consumer prices shoot up tute for International Eco- to customers or whether infla- destruction of Iran’s for an end to hostilities His defence minister Israel Katz The UN nuclear watchdog, the
this summer, the Fed will nomics. tion-weary households and nuclear program, and the and return to dialogue. said the military had been IAEA, said it had information that
likely stay on the sidelines for “That lack of confidence businesses will resist, leading country’s campaign showed no signs of Iranian foreign minister Abbas instructed to intensify strikes on the heavy-water research reactor
longer. The labor market makes the inflation process to demand destruction. letting up. Araghchi said in a social media post strategic-related targets in Tehran had been hit, but did not contain
would have to sputter convin- more fragile so that it will take “There are many parties in Jets struck dozens of military targets Wednesday that his country remained in order to eliminate the threat to radioactive material. It had no
cingly to prompt rate cuts. less in the way of a shock…to that chain. There’s the manu- in Iran overnight, including an inactive “committed to diplomacy” and has Israel and destabilise the “Ayatollah information that a separate plant
But if a widely anticipated move actual inflation up,” Wil- facturer, the exporter, the nuclear reactor in the area of Arak. never sought and would never seek regime”. there which makes heavy water had
tariff-driven price punch turns cox said. importer, the retailer and the Arak has long been the focus of inter- nuclear weapons. Netanyahu has said that Israel’s been hit.
out to be a damp squib, the Fed Powell has suggested that as consumer, and each one of national scrutiny due to its potential Araghchi is set to meet foreign min- military attacks could result in the The director general of the Israeli
could be in position to con- the Fed studies more labor- those is going to be trying not role in plutonium production, which isters from the UK, France and Ger- toppling of Iran’s leaders, and Israel hospital that was damaged in Beer-
sider cutting rates sooner, market and inflation data, the to be the one to pay for the tar- could potentially be used in future many on Friday in Geneva to discuss would do whatever is necessary to sheba, Shlomi Kodesh, told report-
especially if the job market answer on whether to act or iff,” Powell said. nuclear-weapon production if repro- the Islamic Republic’s nuclear program remove the “existential threat” ers at the site that a missile strike
cools further. hang tight will grow more But someone will have to cessing capabilities were developed. and the war with Israel, according to a posed by Tehran. had destroyed several wards and
Rate projections released obvious. The Fed has a man- pay, Powell said—whether it’s The Arak-Khondab region area, situ- statement from his office. The Euro- Israel said on Thursday it had injured 40 people, mostly staff and
Wednesday revealed a wid- date to maintain low inflation just one party or all of them. ated in central Iran, is itself strategically pean Union’s top diplomat, Kaja Kallas, struck Iran’s Natanz and Isfahan patients.
ening divergence among the and robust employment. ©2025 DOW JONES & CO. INC. significant as it is home to some of the will be present.

Insiders spill the secrets behind a Bezos-sized ‘super-wedding’

Chavie Lieber “It used to be about fire- remained largely under wraps. from $750 to $1,000 per head. American families, indicating come true, no matter how triv-
feedback@livemint.com works, then it was about The couple hired the wedding Cheng recalled hiring a food that some wealthy Americans ial it might sound,” he said,
drones,” said Colin Cowie, a lux- planner Lanza & Baucina, a stylist to work on a luxury aren’t feeling confident in the adding that his role requires

F
loor-to-ceiling floral ury planner who’s done wed- discreet London-based group wedding and set up a night- economy. She predicts more him to take all requests seri-
installations. Performan- dings for celebrities like Jenni- that planned George Clooney’s market style buffet with multi- luxury American weddings ously. “You can’t tell someone
ces by pop megastars. fer Lopez. “Now, it’s shooting 2014 wedding, and is report- ple food stalls. “We created a will move abroad now that tar- how to drive their Rolls-
Catering by Carbone. A secu- fireworks from drones.” edly tying the knot on a Vene- spice-market story. We cre- iffs have hit the industry. Royce.”
rity guard just for the gold- A multiday luxury wedding tian island. Protests against the ated a sardine story,” said “You want European lux- Bailey recalled a time when
plated cutlery. with 200 guests now carries a couple using Venice for their Cheng. “People want more ury? It doesn’t make sense to flowers shipped from the
For the wealthiest people on price tag of about $4 million, event are already under way. than just a three-course import it,” she said. Netherlands for a wedding in
Earth, it’s no longer enough to according to Jamie Simon, A representative for Bezos menu.” Pumping AC into a castle Kuwait got stuck at the airport
have a luxury wedding. Today, director of events at luxury and Sánchez declined to com- Super-weddings today Haywood said it can be chal- due to an alleged customs
the new normal is a “super- planning firm Banana Split, ment. Lanza & Baucina didn’t often include a celebrity enter- lenging to work with a popula- issue. “I had to send someone
wedding,” akin to a music fes- which brought the Grainge respond to requests for com- tainer, where families shell out tion “where no one says no to with $3,000 or $4,000 cash.
tival in size and with costs run- wedding to life. Cowie said ment. for a headliner to perform a them.” At that point, you’re willing to
ning into the millions. he’s worked on weddings that A luxury destination wed- couple of hits. “The Russians “They’ll show me a photo do anything.”
Anant and Radhika cost eight figures. ding takes a village to produce. When Jeff Bezos weds Lauren Sánchez in Venice, it is expected to started this,” Haywood said. and I’m like, That’s great Cali- Ruth Minkowitz, a luxury
Ambani’s three-day wedding The cost includes upscale Haywood in London works raise the bar on luxury events for the wealthiest people on Earth. AP Families have paid top dol- fornia light, but you’re getting event planner in Italy, said
in India last year included a vendors for everything from with teams as large as 500 peo- lar to hire musi- married in Lon- Venice weddings like Bezos
custom-built glass palace and cocktail-hour caviar to ple for the events she plans. has built $600,000 structures, Ira Levy, a luxury lighting cians like Paul Super-weddings don on a rainy aft- and Sánchez’s are a special
a performance by Rihanna. $75,000 hanging installations “We’ve got 80,000 rose stems rented 10-foot candelabras designer, who said such light McCartney, Elton today often ernoon,” Hay- kind of logistical nightmare.
The wedding of Sofia Richie to nightclub-worthy sound here. Can you imagine how and ordered custom furniture projections cost $60,000 to John, the Rolling include a celebrity wood said. When her family’s company,
Grainge and light- many people it takes to condi- from Egypt. He typically works $100,000. “We’ve taken peo- Stones and Lionel entertainer, where She said a cou- Elite Kosher Events, has a
and Atlan- ing. Those tion those flowers?” she said, with silk flowers for overhead ple through different parts of Richie. Justin ple recently wedding in Venice, they start
families shell out
tic Records vendors taking a call while setting up a installations, which can cost the world.” Bieber reportedly requested white getting ready six days in
Chief Exec- need ven- wedding near Monaco. She $25,000 to $75,000. Bailey recently commis- earned $10 mil- for a headliner to peacocks at an advance, instead of three.
utive Elliot Grainge in 2023 dors too: Caterers are now hir- declined to name the couple. Wedding decor now some- sioned a $500,000 holograph lion for perform- perform a few hits August wedding “Food, plates, material,
spanned multiple days in ing food stylists to make sure Beyond manpower to set up, times requires the work of a of a bride’s deceased grandfa- ing at the Ambani in Italy—a request everything, it all goes by boat,”
Antibes, France, featured their culinary creations are assist and serve, Haywood also drapery artist, who swaddles ther to share well wishes. wedding last she couldn’t fulfill said Minkowitz. “You need a
haute couture Chanel gowns displayed artfully. Bartenders maintains a 20-person team to walls and ceilings with miles of “For billionaires, if it’s excit- summer. Through a repre- because summer is the pea- lot more personnel, just to
and an afterparty headlined by tap mixologists to craft assist with small details like fabrics. ing, they’ll go for it,” Bailey sentative, Bieber declined to cock shedding season, and so schlep.”
rock band Good Charlotte. bespoke cocktails. Florists are steaming bridesmaid dresses. “Drapery is the showcase of said. comment. undefined the birds would be featherless. Minkowitz said she worked
When Jeff Bezos and Lauren working with drapery artists, They also look after family the party,” said Tommy Mur- Celebrity chefs and mil- The only musician he has (Not to mention aviary restric- on a wedding at a historic cas-
Sánchez tie the knot in Venice who add huge swaths of fabric VIPs—making sure, for exam- phy, a drapery artist with the lion-dollar DJs found to be not bookable, tions due to bird flu.) The bride tle on the outskirts of Rome
in a multiday celebration that’s for additional layers of drama. ple, that “the grandparents Orlando-based Swag Decor. Simon said Banana Split has Simon said, is Adele. Adele did was fixated on the detail, and two summers ago, where the
anticipated next week, their Nearly everyone signs a non- have a drink at all times.” He recently worked on a lux- worked with celebrity chefs not respond to a request for Haywood said she gently had family requested the ancient
event is expected to raise the disclosure agreement before “This type of client lives in a ury wedding in an upstate New like Wolfgang Puck and Gor- comment. to push back. “Ultimately you building be pumped with air
bar even higher. the work begins. beautiful home, and owns York barn that had $170,000 don Ramsay on weddings, Increasingly, name-brand try to give the client what they conditioning. Minkowitz said
The trend has turned plan- “Luxury weddings have multiple homes that are fully worth of drapery. “It doesn’t though other clients prefer to DJs like Gryffin and Martin want. But you have to steer her team had to buy voltage
ners into “wedding produc- turned theatrical,” said Pres- staffed, so when they come matter if you spend $1 million keep it as casual as a menu of Solveig are becoming in them.” from the Rome municipality to
ers,” as London luxury planner ton Bailey, an event designer and host a wedding, they on flowers if you have ugly chicken and fries. demand too, as couples look to Simon recalled sending a ensure they had enough
Sarah Haywood put it, leading who has planned weddings require this level of service,” walls,” he said. At this level, it’s become turn the wedding afterparty courier on a private jet from energy.
armies of vendors in pulling off like Ivanka Trump’s and last Haywood added. More wealthy couples are common to work with a food into an Ibiza nightclub. London to the Maldives to “Italians would have been
what couples hope will not year’s Ambani wedding. Bailey said clients typically also opting for video mapping, stylist, to help “the menu tell a “Even the DJs charge a mil- deliver celery salt because the OK,” she said. “But we made the
only be the most memorable 80,000 rose stems “hope to show the guests where lighting artists project story,” said Olivier Cheng, a lion dollars,” Bailey said. couple felt the wedding’s castle freezing. In July. Because
event of their lives, but their Details about the Bezos- something they’ve never 3-D images throughout a venue. caterer based in New York. He Haywood said she’s seen a Bloody Mary cocktails needed it. the Americans like it cold.”
guests’ lives too. Sánchez wedding have experienced before.” Bailey “They are immersive,” said said luxury catering can range slight drop in inquiries from “You want to make dreams ©2025 DOW JONES & CO. INC.
LIVEMINT.COM NEWS WRAP FRIDAY, 20 JUNE 2025
NEW DELHI 09

NEWS
543.5
THE NUMBER of ’thinking’ tokens per
53
THE RANK secured by IIM Bangalore in
$70
THE EXPECTED average price per barrel
77 bps
THE YIELD gap between India’s 10-year
5.94%
THE STAKE HDFC Mutual Fund has in
IN question required by reasoning-equipped QS Global MBA Rankings 2025, leading of Brent crude oil in FY26 as markets and 30-year sovereign bonds, at around retail company Vishal Mega Mart
NUMBERS AI chatbots, compared to 37.7 tokens for
concise models, according to a study.
Indian B-schools, ahead of IIM
Ahmedabad at 60th, IIM Calcutta at 65th.
remain fundamentally well supplied
despite Israel-Iran conflict, as per a report.
its highest level since 2021, encouraging
funds to opt for longer-maturity notes.
currently, following the acquisition of
150 million shares worth 3.23%.

HOWINDIALIVES.COM

JSW Energy to seek SOWING SEASON NaBFID plans debut

fundraising nod overseas fund raise

J T
SW Energy will seek shareholders’ approval he National Bank for Financing
for raising up to ₹10,000 crore in one or more Infrastructure and Development
tranches through the issuance of securities in (NaBFID) is considering raising up to $1
its annual general meeting on 11 July. billion in its debut overseas borrowing this
In a regulatory filing, the firm said it is fiscal year, as it looks to diversify funding
exploring various avenues of business growth in sources, a senior official said on Thursday.
line with its vision to achieve a target of 30GW The state-run infrastructure lender could
installed capacity and 40 GWh of storage raise funds through external commercial
capacity by FY2030 and is pursuing various borrowings or dollar bonds, “depending on
growth opportunities, including organic and interest rate conditions”, managing director
inorganic opportunities. Rajkiran Rai G. said in an interview.
The growth and expansion plans may “We are looking to tap the overseas market...
necessitate raising funds, it stated adding that for the first time in FY26 simply to expand our
the company will raise funds up to ₹10,000 borrowing sources.”
crore in one or more tranches through issuance The government has made infrastructure a
of securities by way of private offerings and/or cornerstone of its economic strategy.
on preferential allotment basis and/or qualified Mumbai-based NaBFID had sanctioned
institutions placement. loans worth over ₹2 trillion through March-
On 15 May 2025, the board of JSW Energy had end, and aims for loan sanctions of ₹1.2 trillion
approved the proposal to raise ₹10,000 crore in by the end of this fiscal year, Rai said. REUTERS
one or more tranches. PTI

Women plant paddy saplings in a field during the monsoon season on the outskirts of Chhattisgarh’s Jagdalpur, in Bastar district, on Thursday.
Paddy sowing, as on 13 June, was 13% higher than last year at 453,000 hectares, according to the latest data provided by the government. PTI

Larsen and Toubro’s first-ever issuance of the

Justice Varma had ‘covert or The IPO will invite bids from big institutional or
anchor investors on 24 June. ISTOCKPHOTO
green notes was sold at a premium.

L&T mulls another

REUTERS

active’ control over cash: Panel HDB Financial IPO

to open on 25 June
ESG bond issue
H
DB Financial Services, a unit of private

I
ndian infrastructure major Larsen and lender HDFC Bank, will open its initial
Toubro (L&T) could raise funds through Top court-appointed panel says evidence points to misconduct, merits impeachment public offering (IPO) for subscription for
environmental, social and governance (ESG) retail investors on 25 June, the non-banking
bonds again, after its first-ever issuance of the financial company said on Thursday.
notes was sold at a premium, a company HT Correspondent expected of a member of the higher judiciary, say- The in-house inquiry panel comprised justices The IPO will invite bids from big institutional
spokesperson said on Wednesday. letters@hindustantimes.com ing his actions, omissions and explanations did not Sheel Nagu (then Punjab and Haryana chief jus- investors or anchor investors on 24 June, the
In the debut bond sale under India’s newly- NEW DELHI inspire confidence and undermined public trust. tice), G.S. Sandhawalia (then Himachal Pradesh company said in a filing.
introduced ESG debt securities framework, “The very existence of judicial office is founded chief justice) and Anu Sivaraman (Karnataka high In October, HDB Financial filed for an IPO of

T
L&T on Wednesday raised ₹500 crore ($58 he Supreme Court’s in-house panel that upon the trust of the citizens. Any deficiency in this court judge). It was set up on 22 March by then CJI up to ₹12,500 crore ($1.5 billion).
million) through three-year notes at a coupon investigated the presence of charred regard erodes public trust,” the committee noted Khanna. HDFC Bank, which holds a 94% stake in the
of 6.35%. currency notes in justice Yashwant in its report, accessed by HT. The revelations come days before the monsoon lender, will sell shares worth up to ₹10,000
This compares with 6.45%-6.50% secondary Varma’s official residence in Delhi ear- The report added that once it was established session of Parliament is set to begin. The Lok Sabha crore, while fresh shares worth up to ₹2,500
market yields on the company’s near three- lier this year concluded that while there that burnt cash was there in his and the Rajya Sabha are expected crore will be issued.
year bonds, according to merchant bankers. may be no direct proof linking the high court judge store room, “the burden shifted to take up an impeachment Its listing follows new norms introduced by
“We remain open to raising more funds to the stash, “strong inferential evidence” suggests upon justice Varma” to account motion against justice Varma in the country’s central bank in 2022 that require
through ESG-linked issuances...,” the his “covert or active control” over the cash, which for the money by giving a plausi- the session. large non-banking financial companies to be
spokesperson told Reuters. “Should the need “belied the trust” reposed in him as a constitutional ble explanation which he failed to do, except pro- The row began on 14 March when a fire broke listed on stock exchanges by September 2025.
arise, and if market conditions are conducive, court judge. jecting a case of flat denial and raising a bald plea of out at the outhouse of justice Varma’s official resi- For the quarter ended 31 March, HDB
we may consider the ESG debt market again.” This, the panel said, amounts to serious judicial conspiracy.” dence in Delhi. Firefighters reportedly found Financial posted a profit of ₹530 crore. REUTERS
The notes, rated AAA by Crisil, saw banks misconduct, meriting initiation of impeachment It added: “Whether this stashing was done with charred currency notes in sacks. The chief justice
and mutual funds as investors, the proceedings. tacit or explicit consent of justice Varma or his fam- of the Delhi high court, justice Devendra Kumar
spokesperson said. In its 64-page report submitted to then chief jus- ily members is of little significance in the face of Upadhyaya, flagged it to then CJI Khanna, who
SBI Mutual Fund was the anchor investor
and bought at least ₹75 crore of the bonds,
tice of India (CJI) Sanjiv Khanna on 3 May, the
three-judge panel found the conduct of justice
larger concept of breach of public trust and prop-
erty expected of the high constitutional office held
constituted a three-judge inquiry committee,
which submitted its report on 3 May, concluding
Siemens’ energy co
bankers said. REUTERS Varma to be incompatible with the standards by justice Varma.” justice Varma was liable for misconduct.
listed on bourses

S
iemens Energy India Ltd (SEIL) got listed
LG mulls resuming on the BSE and National Stock Exchange
Pablo Isla to head Nestlé as chairman Thursday. While Siemens AG and its arms
IPO of Indian unit hold 69% stake in SEIL, Siemens Energy AG’s
arms hold 6%, with the remainder in free float.
Nespresso coffee and Purina pet food With the listing, SEIL is set to operate with

L
G Electronics Inc. is considering reviving an follows the surprise ouster of chief greater agility, transparency and strategic focus,
initial public offering (IPO) of its Indian unit executive officer (CEO) Mark Schneider ready to lead in one of the most dynamic and
as soon as September, people familiar with last year. His successor, Laurent Freixe, has fast-growing energy markets, a statement said.
the matter said. been trying to restore sales growth as the The firm supports renewable energy’s
The South Korean company is planning to Swiss company confronts challenges integration, modernization of the national grid
refile its preliminary prospectus with updated including rising costs and trade wars. and decarbonization of key industries.
financial results after the summer, with the IPO In contrast to the abrupt change of “With this listing we reaffirm our long-
potentially taking place as early as Q4, according CEOs, Nestlé signalled an orderly standing commitment to India’s energy future.
to the people, who asked not to be identified transition from Bulcke to Isla, who’s As India advances toward becoming a $7 trillion
because the information isn’t public. currently vice chairman of the board. He’ll economy, a strong and resilient energy system
LG Electronics paused work on the IPO in stand for election to the new role at the 18 high-potential sectors, which include EVs and AI, will be essential. SEIL with its dedicated team is
April, partly because of market volatility, next shareholder meeting in April, the could contribute 30% of India’s GDP by 2040.REUTERS ready to support this important journey for
Bloomberg News reported at the time. The Pablo Isla was CEO of Inditex, the Spanish company said Wednesday in a statement. India and its people,” managing director and
company later said it would make a decision on
the plan based on market conditions.
apparel multinational. AFP Isla was CEO of Inditex, the Spanish
apparel multinational and owner of Zara,
India Inc.’s $2 tn EV chief executive Guilherme Mendonca said. PTI

to AI opportunity
N
Considerations are ongoing and LG estlé SA extended its leadership from 2005 to 2011, and chairman of the
Electronics could decide to delay the IPO overhaul by proposing longtime same firm from 2011 until 2022. He has
further, the people said. Inditex SA executive Pablo Isla as its served on Nestlé’s board since 2018.
Adani Power nears
I
An LG Electronics India IPO had been next chairman to succeed company Bulcke’s pending departure, while ndian companies could emerge as major players
expected to raise as much as $1.7 billion, making
it one of India’s larger floats. Investors pushed
veteran Paul Bulcke when he retires next
year.
carefully orchestrated, nonetheless marks
the end of an era for the world’s biggest
in shaping the global economy over the next
decade, with 18 high-potential sectors poised to VIPL’s acquisition
back against the parent’s valuation expectations, The move by the Swiss owner of food company. BLOOMBERG generate $1.7-2 trillion in revenue by 2030, up

A
people familiar with the matter said. BLOOMBERG from $690 billion in 2023, according to a new dani Power Ltd has inched closer to
report by McKinsey and Co. acquiring the bankrupt Vidarbha
Collectively, these sectors—which include Industries Power Ltd (VIPL), a former
electric vehicles and batteries, artificial subsidiary of Reliance Power Ltd, adding to a list
India’s largest port in the making to raise $3.5 billion debt intelligence (AI) software and services, and e-
commerce—could contribute nearly 30% of
of distressed but strategically located power
assets as it strives towards its goal.
India’s GDP by 2040, the report said. The National Company Law Tribunal on 18

T
he firm building what will become the largest port in India plans to raise Among the other sectors it mentioned are June approved Adani Power’s ₹4,000 crore
as much as ₹30,000 crore ($3.5 billion) of debt, giving lenders an semiconductors, medical devices and resolution plan to acquire VIPL following a
opportunity to invest in one of the cornerstones of Prime Minister biopharma, aerospace and defence, and cloud majority nod in February by the distressed
Narendra Modi’s infrastructure overhaul. computing. company’s committee of creditors.
Owners of the Vadhvan Port Project Ltd, located a few hours north of Titled ‘India’s Future Arenas: Engines of Adani Power aims to raise its 17.55GW of
Mumbai, are looking to raise debt with tenors in the range of 15 to 20 years. Growth and Dynamism’, the report also power-generating capacity—including thermal
They’re considering onshore and offshore markets to raise the funds, highlights emerging opportunities in plants across states and a 40MW solar project in
according to a top official. cybersecurity, industrial electronics, robotics, Gujarat—to 30.67GW by 2030, making it
“We have started the process of raising debt which will happen in two renewables with storage, urban construction, India’s largest private sector capacity expansion.
phases,” said Unmesh Sharad Wagh, chairman at Jawaharlal Nehru Port auto component manufacturing, space, nuclear With its latest acquisition, Adani Power will
Authority, or JNPA, which holds a 74% stake. The Maharashtra Maritime Board fission, travel and tourism, and the bio-to-X gain control of VIPL’s 600MW thermal power
owns the remaining 26%. economy. plant in Nagpur. The deal follows Adani’s recent
Upon completion, which is expected toward the end of the decade, Vadhvan Bio-to-X systems, which convert biomass into acquisitions of Coastal Energen, Dahanu Power
will have the capacity to handle some 23 million container units, making it one other products, offer lower carbon emissions and Lanco Amarkantak Power, underscoring
of the 10 largest ports in the world, according to its backers. BLOOMBERG Vadhvan Port is located a few hours north of Mumbai. AP than fossil fuel-based systems. RHIK KUNDU Adani’s strategy to drive growth. KRISHNA YADAV
10 FRIDAY, 20 JUNE 2025
NEW DELHI LONG STORY LIVEMINT.COM

IN INDIA, A GOLD RUSH

FOR WEIGHT LOSS DRUGS
Lured by a global rage, Indian drug makers are eyeing fat profits from GLP-1 drugs

T. Surendar & Jessica Jani Despite the high costs, Rybelsus sales assume that there is enough confidence
MASTERS OF DRUGS mint
MUMBAI have notched up ₹418 crore, between its SHORT among Indian players to make the drug,”
launch in 2022 and March 2025, accord- Medications used to treat obesity, like Ozempic and Mounjaro, are among STORY Mehta of Research Delta Advisors said.

I
n late May, Dr. Reddy’s Laboratories, ing to Pharma data agency IQVIA. the top 10 drugs in the world.
a pharmaceutical company from Mounjaro’s injectables, available in INDIA STACK
Top selling drugs globally in 2024 (in $ billion)
WHAT
Hyderabad, sprang a surprise. It filed
a patent challenge against Novo Nor-
disk, a Danish company, for its popu-
India, cost far less—₹17,500 per month.
“Since India sells branded generic dosa-
ges, the retail price of new launches will be
Name

Keytruda
Indication

Oncology
Company

Merck
Sales
Weight loss drugs, such as
A long list of companies, from different
pharma sub-sectors, could benefit
from the weight-loss bonanza.
29.5
lar weight loss drug semaglutide. 40-70% of the innovator’s price,” Ravinder Ozempic, are a rage globally. For the domestic market and for generic
Novo Nordisk filed for two patent appli- Singha, managing director of Firmlink Eliquis Cardiovascular BMS/Pfizer 20.7 Social media has contributed exports to countries where no patents exist,
cations in India—in 2006, which expired Pharma, a generic exporter, said. “But immensely to the street the list of companies waiting to launch sem-
Ozempic Metabolic disease Novo Nordisk 17.5
in September 2024, and another in 2007, since Mounjaro is the benchmark treat- popularity, largely driven by aglutide next year includes Dr. Reddy’s,
which is set to expire in March 2026. Dr. ment, we should expect semaglutide drugs Dupixent Immunology Sanofi 14.1 celebrity endorsements. Sun Pharma, Cipla, Zydus Lifesciences,
Reddy’s has challenged the second patent, to be substantially cheaper,” he added. Biktarvy HIV Gilead Lifesciences 13.4 Lupin, Mankind Pharma, Alkem Laborato-
contending that it lacks novelty. Semaglutide tablets, therefore, could be ries, Biocon, Aurobindo Pharma, Natco and
Pharma companies often file follow-on available for ₹4000-₹7000 per month Jardiance family Metabolic disease Boehringer/Eli Lilly 12.4 NOW Torrent Pharmaceuticals among others.
patents with claims of modifications to the and Wegovy clones at a bigger discount to Skyrizi Immunology AbbVie 11.7 Zydus Lifesciences is working on a sin-
original compound and its derivative Mounjaro’s ₹17,500 per month. Such drugs have a growing gle pen device in multiple strengths, The
forms. The follow-on patents allow drug “Generic brands in India will hit the Darzalex Oncology Johnson & Johnson 11.7 market in India where obesity Economic Times reported last month. It is
developers to extend their market shelf the next day a drug goes off patent,” Mounjaro Metabolic disease Eli Lilly 11.5 rates are on the rise. Indian also working on a novel formulation for
monopoly and halt generic competition said Nimish Mehta, founder of Research pharma companies are semaglutide to commercialize in India
Trikafta Respiratory Vertex Pharma 10.2 working on generic versions to
for longer. Generic versions are cheaper Delta Advisors, a pharma consultancy. and other markets. “We are on track for
copies of the original drug. So, Indian generics should be available meet the demand. day one launch in India,” managing
TOP DOLLAR
Dr. Reddy’s, obviously, is in a hurry to from April 2026 onwards. Annual top selling drugs between 2000 and 2024. director Sharvil Patel told investors dur-
launch a generic version. A win for the Meanwhile, Indian pharmacies have ing an earnings call last month.
company will upend the plans of more than acknowledged the growing demand for Year Drug Indication Company Peak sale year Peak sales ($ bn) SO Cipla, meanwhile, is eyeing the launch
a dozen local pharmaceutical firms, all of such drugs. 2000 Prilosec Ulcer AstraZeneca 2000 6.3 of GLP-1s through partnerships as well as
whom are eyeing a slice of the estimated “These GLP-1s…everyday we are selling Besides drug development firms, through its own generic version. In a post-
$25 billion Indian weight loss market. huge quantities,” Shobana Kamineni, 2001-2011 Lipitor Lipidemia Pfizer 2006 13 contract manufacturers and earnings media interaction recently, the
No prescription drug in recent memory executive chairperson of Apollo Health Co device makers could benefit company’s managing director and global
2012 Advair Asthma GSK 2012 8.9
has captured the imagination of Indian and Apollo Pharmacies, said. from the gold rush. Nonetheless, CEO Umang Vohra said: “I think the big-
patients as much as semaglutide. Or for Medications used to treat obesity and 2013-2021 Humira Autoimmune AbbVie 2022 21.2 speed to market will separate the gest opportunity for us, at least, would
that matter globally. In 2024, sold under type 2 diabetes are classified as GLP-1 winners from the also-rans. continue to be the Indian market.”
2022 Comirnaty Covid vaccine Pfizer/BioNTech 2022 59.1
three brand names—Ozempic, Wegovy (glucagon-like peptide-1) drugs. Biocon has already launched another
and Rybelsus—semaglutide is the second 2023-2024 Keytruda Oncology Merck 2024 29.5 GLP-1, liraglutide, in India earlier this
most prescribed drug in the world, notch- THE SCIENCE WEIGHT’S WORTH Indian weight loss market (in $ billion)* tide the same month—December 2021. month. “Our strategy is to offer liraglutide
ing sales of $29 billion annually.
A more recently launched competing
brand, Mounjaro, by US-headquartered
G LP-1 is an equivalent of peptide gluca-
gon that is produced in the small
intestine and colon after ingestion of food
India’s weight loss
market is expected to
double by 2033.
*Products and services
** forecast
21
2022
25
2024
35
2028**
51
2033**
They did so to avail what is called the first-
to-file (FTF) status. Overall, 18 Indian
companies have applied.
at competitive prices, aligned with local
healthcare economics to maximize patient
access in India,” a company spokesperson
drug maker Eli Lilly, grew 123% in 2024 to which increases blood sugar. Glucagon Source: Drug Discovery and Development; Fiercepharma.com; Drugtopics.com; Nuvama Research
Generic applications in the US are filed told Mint in an email response.
$11.5 billion and is already among the top then stimulates the pancreas to pro- way before patents expire and an FTF Biocon plans to launch semaglutide in
10 drugs in the world, according to Drug duce insulin to control blood sugar. SATISH KUMAR/MINT
allows a company to market its generic for India mid-next year, CEO Siddharth Mittal
Discovery & Development, a pharmaceu- GLP-1 drugs behave like syn- 180 days exclusively in the US, before had told Mint in an earlier interview. The
tical industry news website. thetic glucagon and stimulate the more cheaper generics hit the market. company now plans to expand its manu-
“It’s a big opportunity. It’s a product that same effects from the body. In Natco (through Mylan) is the only facturing capabilities to ensure supply
comes once in a while in the pharma cycle, addition, GLP-1 drugs leave company to have sought approval for reliability, it said in the emailed response.
and perhaps a product that people are a lot the user with a feeling of generic Wegovy. Sun Pharma and Mankind are also work-
more aware of, much before its launch,” fullness that sends a mes- The US FDA has not yet approved any ing on their own novel anti-obesity drugs.
Umang Vohra, managing director and sage to the brain to slow generic so far. Sun Pharma is working on a novel GLP-1
global CEO of Cipla, told journalists dur- down the ingestion of food. “Since an application to the FDA will GL0034 called utreglutide, which will likely
ing an interaction last month. From the last decade, include a sample of the product and be commercialized by the end of this decade.
Social media has contributed immensely there is enough evidence details of manufacturing plants, we can Mankind’s drug candidate, GRP119, is
to the street popularity of Ozempic, largely that the new class of currently in phase 2 trials in Australia. For
driven by celebrity endorsements by the GLP-1 drugs, like sema- the generic version of semaglutide, the
likes of Oprah Winfrey and Elon Musk. glutide and tirzepatide, company is banking on its salesforce and
Both admitted to using such drugs to man- offer weight reduction reach to give it a competitive edge, man-
age their weight. Though Indian celebri- between 21-23% of the initial aging director Rajeev Juneja told Mint in
ties haven’t yet admitted to their use, the body weight without any severe an earlier interview.
mystery slimming of Bollywood film side effects. And as anti-diabetic “Any doctor would want to prescribe it,
maker Karan Johar and TV talk drugs, they were meant because now people know that there is
show host Kapil Sharma have for prolonged use. “In the something called Mounjaro, or semaglu-
drawn comparisons. range of medication for tide or Ozempic,” Juneja said. “We, by
management of obesity, default, have a natural advantage because
OPPORTUNITY 2.0 (GLP-1s) have proven to be we have the deepest coverage, we have the

N onetheless, it is not all social

media. There is a genuine
market for weight loss medica- Scan the
the game changer,” bariatric
surgeon Dr Muffazal Lakda-
wala told Mint.
maximum number of people working in
each division,” he added.
Further, players like Divi’s Laboratories,
tions—numbers tell the story. QR code to Historically, GLP-1 class of a manufacturer of active pharmaceutical
A recent Lancet study stated read more drugs did not see much com- ingredients, and Syngene Interna-
that India is expected to total 450 Long Stories. petition for two reasons. tional, a contract research, develop-
million overweight or obese Initially, these drugs ment and manufacturing company, can
people by 2050, the largest in the world. were marketed as an anti-diabetic also benefit from the gold rush.
The study also found that obesity rates injection—there were already “Divi’s Laboratories will be a key ben-
increased from 1.2% in 1990 to 9.8% in 2022 many competing drugs available eficiary in GLP-1 manufacturing as it
for women and 0.5% to 5.4% in men. Those in that space. makes several components in the peptide
with body mass index (BMI) between 25 Second, glucagon being a peptide sequence,” Shrikant Akolkar, head of
kg/m2 to 29.9 kg/m2 are considered over- hormone, an organic substance, the pharmaceutical research at Nuvama, a
weight while those with an index of over 30 drugs had to emulate their form and brokerage, said.
kg/m2 are considered obese. structure. Like insulin, they can be OneSource Specialty Pharma, the con-
“Often, lifestyle diseases are associated produced by fermentation or by tract development and manufacturing
with adults but we must not overlook the chemical synthesis and both have arm of Strides Pharma, is among the few
increasing issues of overweight and obesity their complexities. Producing large companies with end-to-end capabilities
in juveniles. It is a growing menace,” said Dr quantities of fermentation medici- for GLP-1s—from formulation to device
Sambit Patnaik, a Mumbai-based surgeon. nes like insulin or penicillin assembly. “The most complex part of the
The pharmaceutical industry has also require high investments, whole value chain is to assemble the pen
spotted a rare opportunity, similar to the both in manufacturing and devices,” OneSource Pharma’s CEO,
one it saw in anti-diabetic drugs at the turn cold supply chains. Neeraj Sharma, told Mint during a
of the century. At that time, the Indian phar- Even in the oral version recent interaction.
maceutical market, according to market of semaglutide, which is Another company, Vadodara-
research agency MARG, was all of ₹16,000 manufactured by chemi- based Shaily Engineering Plastics,
crore and diabetic drugs accounted for cal synthesis, the manu- says it is nearly doubling its manufac-
about ₹1,000 crore of it. Today, the market facturing process is a long turing line to make injectable pens—
for diabetic drugs is worth ₹40,000 crore and complex one. Oral from 45 million to 85 million—funded
and it accounts for roughly 10% of the ₹4 delivery of peptides does by customer advances.
trillion Indian industry. not permeate the gas-
Back then, the boom was aided by the trointestinal tract A CAUTION
generic version of metformin, an oral drug easily and, there-
with lower gastric side effects for type 2 fore, Novo Nordisk
diabetes. It caught the fancy of Ranbaxy had to engineer its product
C learly, speed to market will separate
the winners from the also-rans.
“Early movers among the Indian play-
Laboratories, Dr. Reddy’s, Glenmark differently to ensure potency. ers stand a good chance to benefit from
Pharmaceuticals and a host of other GLP-1,” said Akolkar. A recent report by
Indian pharmaceutical companies. US DREAMS Nuvama put a buy on Dr. Reddy’s and
Like diabetes drugs, weight loss medica-
tions also have to be taken as long as a D espite all the complexities,
Indian companies want
patient wants to manage her or his weight— to grab the opportunity the
Divi’s Laboratories and a hold on Natco
Pharma based on their GLP-1 play.
Nonetheless, some doctors fear misuse
which explains the current gold rush. US, global and Indian mar- of the drug because of its popularity.
kets present. Let’s look at A prescription for diabetic drugs can be
CRASH THE PRICE the US first. written by any medical practitioner.

I n India, generic versions can cut cur- Companies like

rent prices substantially, thereby Sun Pharma, Dr.
expanding the market. Reddy’s, Lupin
Weight loss clinics in the unorganised
sector could start dispensing the drug for
cosmetic purposes. For instance, a person
Novo Nordisk’s Rybelsus is available in a n d Natco in her 20s, who is slightly overweight, may
India but only in oral form and a month’s Pharma (which be tempted to use these drugs instead of
supply costs ₹10,000. The most effective has a tie-up with trying to lose weight by making lifestyle
form of the drug is as an injectable, and it Mylan Pharma- changes.
is delivered in metered doses using a pen- ceuticals) filed “We need some regulations to prevent
like device with thin hair like needles. applications with the over-the-counter use for weight loss,” Dr
Imports can cost upwards of ₹80,000 per US Food and Drug Adminis- Muffazal Lakdawala said. “It is a hormonal
month. The injectable version is expected tration (FDA) to make the TARUN KUMAR SAHU/MINT
drug so you have to be a little careful.”
to launch soon. generic versions of semaglu- surendar.t@partner.livemint.com
LIVEMINT.COM MINT MONEY FRIDAY, 20 JUNE 2025
NEW DELHI 11

Why Ayush claims are often WHAT'S THE FOREX RATE?

Whether you are planning
overseas travel or want to

denied despite health cover send money abroad, it is

always a good idea to shop
around for the best forex
exchange rate. From banks,
travel aggregators to money
changers, various small and
big players sell foreign
exchange. To simplify your
work, here is a list of INR to
Irdai directed insurers to treat Ayush at par with allopathy, but they continue to reject claims USD forex rates offered by
some of the major banks
and travel aggregators. We
Aprajita Sharma recommend that you also
check the commission
aprajita.sharma@livemint.com
NEW DELHI
The AYUSH puzzle in insurance being charged by these
players to ensure that you
While AYUSH treatment is covered in health insurance policies, getting a cashless approval or

C
are getting the best deal.
hhattisgarh-based Moin reimbursement clearance becomes challenging for various reasons
Vanak, who suffers from FOREX RATES (/$)
diabetes, digestive issues MOIN VANAK AYUSH hospital: Definition
and hypertension, turned Chhattisgarh A healthcare facility providing treatments and therapies Wire transfer* Buy forex
Bank/travel
to naturopathy for his per- Ailment: Back, shoulder pain, on the principles of Ayurveda, Yoga and Naturopathy, aggregator inward Outward Forex/travel card Cash
sistent shoulder, knee and calf pain—as diabetes, and BP Unani, Siddha, and Homoeopathy
well as long-standing sleep issues. Hop- Claim amount: 57,894  Having at least 5 in-patient beds SBI 85.95 86.80 86.97 87.30
ing for sustained relief, he enrolled in a Nature of treatment:  A qualified AYUSH medical practitioner round the Bank of Baroda 85.87 86.73 87.15 87.60
10-day in-patient treatment at a NABH- Naturopathy clock
accredited naturopathy hospital.But,  Dedicated AYUSH therapy sections as required Canara Bank 86.02 86.75 86.97 NA
They rejected the claim saying the
despite having health insurance policy,  And/or equipped operation theatre for surgical IndusInd Bank 84.80 87.80 88.59 88.89
admission happened only for health procedures
he paid the expenses out of pocket and
applied for reimbursement later.
evaluation not the treatment, hence not Kotak Bank 84.70 87.97 88.42 89.06
To his surprise, the insurance claim payable
Why claims get rejected HDFC 84.81 87.89 88.15 88.61
was rejected. The insurer stated: “As BHAIRAV VASHISHTH  A lack of standard protocol for treatment ICICI 84.67 87.97 87.97 88.23
per submitted documents, the patient (on behalf of daughter)  Insurers taking a stance that
was admitted primarily for diagnostic Faridabad hospitalisation was not needed Axis Bank 84.71 88.01 NA 88.27
and evaluation purposes only,” which Ailment: Morphea  The condition could have been
doesn’t meet the criteria for in-patient Yes Bank 84.84 87.84 88.79 88.79
Claim amount: 75,000 treated on an OPD basis
treatment under most policies.  The treament being preventive in Thomas Cook 84.78 87.07 86.49 87.88
Nature of treatment:
Vanak has since submitted a doctor’s nature, not curative
Ayurveda and Panchkarma Note: Data collected from website of respective entities as on 18 June 2025; Rate mentioned in the table denotes INR/USD.
justification stating that IPD or in-pa-  Treatment centre more of a The rate is as mentioned on the website of the Bank/FI and it may vary according to different amount slab; *Wire Transfer/TT
tient care was medically necessary in "Insurer approved cashless claim after recreation destination than a hospital Buying is Inward Rem to receive Forex & Wire Transfer/TT Selling is Outward Rem to send forex
his case. However, the claim remains multiple rounds of back and forth and Compiled by BankBazaar.com
unresolved. “They’re still refusing even an intervention by the treating doctor What to keep in mind before going
though the hospital is NABH-accred-
ited,” he added. His experience reflects MAYANK GOSAR for the treatment
a growing problem with AYUSH insur- (on behalf of parents)  Read policy document well; some insurers may
exclude a couple of treatments*
ance claims: a gap between regulatory
intent and ground-level execution.
What the rules say
Mumbai
Ailment: Diabetes, digestive issues
Claim amount: 14,200 each
 Prefer a network AYUSH centre of your insurer
 If others, it should be an NABH-certified AYUSH
hospital
Want better hospital coverage?
In January 2024, the Insurance Reg-
ulatory and Development Authority of
India (Irdai) directed that all health
Nature of treatment:
Ayurveda and Panchkarma
They rejected my mother's claim stating
 Check credentials of the medical practitioner
administering your case
 Have proper documents of prior consultation and
Consider porting your policy
insurance policies must cover that IPD was not needed. They are yet diagnosis ISTOCKPHOTO

AYUSH—Ayurveda, Yoga and Natu-  Inform insurer before admission or within 24 hours Shilpa Arora
to take any action on my father's claim which after hospitalization
ropathy, Unani, Siddha, and Homeopa-
is pending for over a year."
thy—treatments at par with allopathy. *Yoga and naturopathy excluded in Star Comprehensive, My current health insur-
IPD - In-patient department; OPD - Out-patient department yoga in Niva Bupa Reassure 2.0
Earlier, policies often came with exclu- ance policy has a room rent
sions or sub-limits for AYUSH, which Ayushman Bharat Pradhan Mantri-Jan Arogya Yojana (AB-PMJAY) capping, and it’s up for
were to be removed. does not cover AYUSH treatment yet. renewal in July. My advisor
Insurers have also been instructed to has suggested that I con-
establish controls and standard operat- sider porting the policy to
PARAS JAIN/MINT
ing procedures (SOPs) to: a) empanel another insurer that
AYUSH hospitals and day-care centres; hasn’t processed the claim in over a underway,” he said. “Some insurers ask managing blood sugar or BP without a doesn’t have such a cap. I
b) include appropriate clauses in agree- year. He has now approached the for discounts based on outdated CGHS formal diagnosis,” said Nerurkar. wanted to understand what
ments with such hospitals; c) ensure Insurance Ombudsman. (Central Government Health Scheme) Paperwork inconsistencies also porting means. If I choose
standard treatment protocols; and d) Some manage to get approvals after rates that haven’t been revised since cause trouble. “Even if a qualified doc- to port, will it affect my
detect and manage fraud or misuse. extended follow-ups. Faridabad-based 2016. That creates a financial strain for tor supervises treatment, if internal future claims? I have dia-
Despite the guidelines, some policies Bhairav Vashishth initially saw his hospitals, patients and even insurers.” records mention someone else, that’s betes and have already ASK MINT The new insurer will then
retain certain exclusions. Star Health’s claim denied when his daughter under- What patients must consider enough for the claim to be rejected,” made one claim under this m HEALTH INSURANCE underwrite your application
comprehensive plan, for instance, has went treatment for morphea, a rare Before opting for AYUSH treatment, Arora added. policy, during which I real- and may request medical tests,
excludes yoga and naturopathy, while skin condition. After repeated clarifica- policyholders must check if the hospi- What needs fixing ized the impact of room if necessary. Once they carry
Niva Bupa’s ReAssure 2.0 policy also tions and a doctor’s letter, the insurer tal is both NABH-accredited and part of As AYUSH gains wider acceptance, rent capping and had to pay porting is not an automatic out an assessment, they may
excludes yoga treatments. finally approved a cashless claim. “It the insurer’s network. Admission must the need for coordination between a significant amount from process. It must be initiated at accept, decline, or even pro-
Steep rejection rates took several rounds, but it eventually be based on prior consultation and a insurers and hospitals has become my own pocket. least 45 days before renewal pose modified terms.
Even with rising demand, claim came through,” he said. documented diagnosis from a recog- more urgent. Standardised treatment —Name withheld on request date of your current plan. For If accepted, you will be able
rejections remain high. “We spoke to a Insurers’ stance nised AYUSH practitioner. packages, transparent billing, and instance, if your renewal is due to carry forward all applicable
couple of AYUSH hospitals, and they Insurers maintain that Insurers cite lack “You can’t just walk into proper documentation can help reduce Health insurance porting is in July, now is the ideal time to waiting periods and continuity
said at least 70% of insurance claims get AYUSH claims are treated of standardized an AYUSH centre and get rejections and make cashless claims a valuable right granted by the begin the process. benefits to the new policy
rejected,” said Shilpa Arora, co-founder like any other standard treatment admitted. There needs to more feasible. Insurance Regulatory and So, start by carefully com- without any loss of coverage.
and COO of Insurance Samadhan, a policy terms. “We have protocols and be medical justification, Surprisingly, India’s own flagship Development Authority of paring plans from other insur- Porting gives policyholders
grievance redressal platform. observed a sharp increase backed by diagnostic health insurance scheme—Ayushman India (Irdai). ers to find one that better suits a flexible way to upgrade their
Mumbai-based chartered account- in AYUSH claims. In fact,
outdated CGHS reports,” said Bhabatosh Bharat Pradhan Mantri-Jan Arogya It legally allows individuals your needs—this could insurance coverage without
ant Mayank Gosar had a similar experi- between FY24 and FY25, pricing as reasons Mishra, COO at Niva Bupa. Yojana (AB-PMJAY)—still does not to switch their health insur- include broader room rent having to forfeit the benefits
ence. His parents, both diabetic and claim count rose by over for disputes Hospitals must also cover AYUSH treatments, despite the ance policy from one insurer coverage and better benefits they’ve already earned over
facing digestive issues, underwent 7–8 30%, and payouts went up meet certain criteria: at government’s push to promote tradi- to another without losing for managing pre-existing time. It’s especially valuable
days of AYUSH treatment at a NABH- by around 48%,” Bhaskar least five in-patient beds, tional systems of medicine. accumulated benefits. Porting conditions like diabetes. for those dissatisfied with
accredited hospital. Nerurkar, head – health administration 24x7 availability of qualified AYUSH For patients and their families, navi- is designed to empower poli- Once you’ve shortlisted a restrictive features in their
“There was substantial improve- team, Bajaj Allianz, said. practitioners, and dedicated therapy gating AYUSH claims can still be an cyholders to make better choi- suitable plan, you’ll need to fill current plan and looking for
ment. They had panchakarma and “For the same condition, the medical sections. Mishra also cautioned against uphill task. Until stronger processes ces as their health needs and out a portability request form broader, more comprehensive
detox therapies, full-body acupressure, management strategy of AYUSH could wellness resorts that market them- and greater standardisation are in financial priorities evolve, and submit a new proposal health protection. When done
abdomen and neck packs, hydrother- be different from conventional medi- selves as retreat centres while offering place, they will need to be extra cau- without being penalised for form to the insurer you wish to right, porting offers a seamless
apy, and other Ayurvedic procedures,” cine and therefore the decision of who medical treatments. “Some AYUSH tious—checking policy inclusions, changing providers. switch to. It’s critical that you and efficient path to better
Gosar added. needs in-patient treatment may be dif- hospitals are listed on travel aggregator maintaining thorough documentation, In your case, since your cur- fully disclose all existing medi- coverage, tailored to your
However, the insurance claim for his ferent. We see this understanding not platforms offering packages including and being prepared to challenge rejec- rent policy has a room rent cal conditions, including evolving health needs.
mother was rejected on the grounds fully baked in especially at the ground a pleasant stay. If you are treating ail- tions where necessary. capping that led to out-of- chronic illnesses like diabetes, Shilpa Arora co-founder and
that the hospitalisation was not medi- level. Consequently, we see genuine ments, how can you project yourself as pocket expenses during a pre- and also mention any previous COO, Insurance Samadhan
cally necessary, despite the nature of patients facing claims rejection despite a hotel?” he asked. vious claim, porting to a plan claims made under your cur-
the treatment. giving all necessary diagnostic docu- Treatment vs prevention Liked this without such restrictions rent policy. Full and honest Do you have a personal
“The doctor clearly mentioned in the ments and treatment plans,” said Sree- Another common misunderstanding story? Please could offer significant finan- disclosure at this stage is abso- finance query? Send in your
justification letter that hospitalisation jith Edamana, COO, Apollo AyurVAID. is the difference between preventive share it by cial relief and better hospitali- lutely vital—any missing or queries at
was medically required,” Gosar said. In Over 80% of its urban patients have and curative care. “Insurance covers scanning the sation options. incorrect information can mintmoney@livemint.com
and get them answered by
his father’s case, the insurer repeatedly health insurance. “Claims process must treatment for disease, accident, or QR code. How to port your policy result in rejection of the appli-
industry experts.
asked for the same documents but be seamless. Industry discussions are infection—not preventive care like However, health insurance cation or future claims.

WHEN PLAYING BY THE RULES BECOMES A COMPETITIVE DISADVANTAGE IN INVESTING

PARAS JAIN/MINT
ried taxpayers priced out of key opportunities. consequences. The technology exists; the enforcement doesn’t.
Real estate is just one example of a wider distortion. From pri- Tax on honesty What can honest taxpayers do in the meantime? First, recog-
POWER vate equity to art to traditional businesses, cash deals often side-
line honest taxpayers. Entrepreneurs who fully disclose income
 Unequal battlefield: Legit taxpayers lose purchasing
nise that your long-term interests align with systemic reform,
even if short-term profits might be lower. Second, support trans-
POINT lose out to those operating with parallel books.
power to zero-tax rivals flush with undeclared cash.
 Distorted markets: Black money inflates real estate
parency initiatives wherever possible. Third, diversify your
Several readers suggested solutions ranging from abolishing investments to include assets where cash transactions are diffi-
DHIRENDRA KUMAR and private asset prices, crowding out rule-followers.
high-denomination currency notes to creating property cult—mutual funds, listed shares, and bank deposits remain rela-
exchanges with dematerialised documents. While these ideas  Culture of tively clean investment avenues. And, most importantly, don't
We welcome your views and comments at have merit, they miss a crucial point: the problem isn’t just tech- evasion: Kickbacks abandon your principles. The current
mintmoney@livemint.com and cash dealings are
nical but cultural. We’ve normalised tax evasion to such an extent
normalised, turning Build smart— system may favour tax evaders, but sys-
that honest taxpayers are viewed as naive rather than principled. ethics into a diversify, invest tems do change.

L
ast week, I wrote about why young professionals earning In fact, this cultural acceptance has created perverse incentives perceived liability. When transparency arrives—and it
₹20 lakh a year—among India’s top 5%—can’t afford basic throughout the economy. Why invest in productivity improve- in transparent will, given technological trends—those
homes in metros. The mismatch between incomes and pri- ments when manipulating taxes offers better returns? Why focus  Integrity assets, avoid the who built wealth honestly will have
dividend: Stick with
ces pointed to “invisible buyers” using black money to inflate real on real value creation when wealth comes from opacity and con-
transparent
cash economy; sustainable advantages over individu-
estate values. The response was overwhelming. Readers shared nections? The result is an economy where honest participants are assets—funds, listed honesty pays als whose fortunes depend on opacity.
stories pointing to something deeper: a parallel economy where systematically disadvantaged. shares—while The Centre has demonstrated its abil-
tax evasion is widespread and often rewarded—making honesty For individual investors, this presents a genuine dilemma. Do pushing for digitised, ity to digitise complex systems when it
a disadvantage when building wealth. you compromise your principles to compete effectively, or do enforceable reform. chooses to do so. Until then, playing by the rules may seem like
Consider one response: a mutual fund distributor said he pays you accept that your ethical choices will constrain your invest- a disadvantage, but it’s also an investment in a more equitable
32% income tax and 18% GST, while vendors earning lakhs via ment returns? Most readers who wrote to me have chosen the lat- future. Your compliance today isn’t just about following the law;
UPI face little tax scrutiny. This points to a deeper issue—when ter, diligently paying their taxes while watching others prosper ple lose faith that playing by the rules leads to fair outcomes, the it’s about building an economy where merit matters more than
honest taxpayers face near 50% effective tax rates while others through tax evasion. entire system becomes unstable. manipulation, where transparency trumps opacity, and where
pay none, the playing field is skewed. Their compliance lowers However, there is a deeper issue that affects everyone, includ- The digitisation that has transformed banking and payments the next generation doesn’t inherit a system that punishes hon-
their real purchasing power. ing those who benefit from the current system. An economy offers hope for other sectors, but only if implemented with genu- esty. That’s worth the short-term competitive disadvantage.
As a result, those with the most capital to invest are often not where tax compliance becomes a competitive disadvantage ine political will. Every UPI transaction leaves a digital trail, yet Dhirendra Kumar is founder and chief executive officer of Value
the most productive, but the best at evading taxes—leaving sala- eventually destroys trust in institutions and markets. When peo- readers report vendors earning lakhs daily with no apparent tax Research, an independent investment research firm.
12 FRIDAY, 20 JUNE 2025
NEW DELHI VIEWS LIVEMINT.COM

OUR VIEW THEIR VIEW

REUTERS

A bifocal framework could foster

competition in digital markets
A mix of prohibitions and positive obligations may help keep the dominance of Big Tech in check

inhibit the tipping effect. For instance, Cross-utilization of data: Tech firms
Europe has enacted the Digital Markets have been consolidating their dominant
Act (DMA), which bans bundling and position through unauthorized access
tying, self-preferencing and cross-utili- to personal data. For instance, in the
zation of data. Digital gatekeepers have Facebook data sharing case, Germany’s
a positive obligation to ensure the inter- federal cartel office found the company
operability of their technologies. to be profiling users for advertisements
Bundling and tying: There are many without consent. The European Com-
adjacent services in digital markets and mission has held Meta in violation of the
SUMIT JAIN & VIKRANT SINGH a core issue with the business model of DMA, stating that its pay-or-consent
are directors, Centre for Competition Law digital companies has been the group- model didn’t give users any realistic
and Economics. level tying and bundling of services in choice to sign up for a less intrusive data
ways that can result in power concen- sharing model.
tration. Big Tech entities ensure that Positive obligations: It is important to

Sebi’s new reforms will

the behavioural bias of users is fully give obligations such as interoperability
exploited so that dominance in one rele- and data portability their due focus,

T
he US Department of Justice vant market stream could be exploited given concerns of whether negative
recently filed a petition in the to foreclose competition in a second obligations will actually help promote
Google Search case suggesting market. For instance, while using Gmail competition in digital markets.

help only up to a point remedial action to promote competi-

tion in digital markets. Key steps include
opening up the search ecosystem by
prohibiting Google from offering any
along with its search engine may appear
‘optional,’ the size and placement of its
pop-up on the search engine screen
would suggest otherwise.
The European Commission recently
developed guidelines to ensure the
interoperability of Apple devices . Even
the Court of Justice for the EU recently
monetary incentives for the distribution Self-preferencing: This is another held that there is a positive obligation
of its search services, combining its ubiquitous practice found to be anti- on a dominant company to keep its
The regulator’s latest changes are welcome from a capital market perspective. However, search with other products and signing competitive. The strategy remains the technology interoperable.
exclusive agreements with content pub- same: i.e., to exploit a behavioural bias India’s startup ecosystem may benefit
policymakers must always take the viewpoint of households and lay investors into account lishers. It also suggests that Google be so that the user doesn’t exit the ecosys- from expanded space for competition
asked to offload its web browser Google tem. For instance, an Android phone in various fields, be it app stores, web
Chrome, through which about 30% of comes with Google Chrome as its browsers or cloud computing plat-
the total search queries are obtained. default web browser. While users can forms. India’s draft digital competition

T
he capital markets regulator Securi- greased these uneven wheels: excess liquidity The petition comes in the backdrop install competing browsers, user inertia law provides for data portability, indi-
ties and Exchange Board of India in global markets that found its way into over- of multiple contravention orders by would support the status quo, which cating a change in direction.
competition authorities globally. For cements the position of the incumbent. Conclusion: Digital markets have
(Sebi) has announced a slew of regu- priced shares. With that money having grown instance, in this case, the District Court posed unique challenges for competi-
latory reforms that are designed to scarce and IPO enthusiasm having dimmed in of Columbia held that Google is monop- tion law enforcement. The Google case
clear roadblocks impeding market 2025, it’s unclear if the primary market can get olizing the general search and general has highlighted the detrimental effect
efficiency, eliminate disincentives back to form. Domestically, the Reserve Bank of search text advertisement market. QUICK READ on competition of practices such as
hindering investor access to markets and India (RBI) recently cut rates and plans to leave Verdicts in Europe have found digital bundling, tying, self-preferencing and
companies such as Google, Amazon and The Google Search case in the cross-utilization of data.
encourage greater startup participation in the banks a larger fraction of deposits to lend out, Meta engaged in practices like exclusive US highlights the need for an So, positive obligations such as inter-
primary market. Sebi is clearly acting on the but it also shifted its stance to ‘neutral’ from deals, lock-in provisions and self prefer- effective approach against operability and data portability must be
knowledge that geopolitical turmoil might ‘accommodative.’ The stock market has had encing that foreclose avenues of com- anticompetitive practices accorded high priority. A combination
unsettle stock indices and the flow of fresh some visible support from domestic institu- petition to the incumbent. such as bundling and of negative and positive obligations is
equity. Available data for the past few months tional investors, but again, there are early signs Negative obligations: The digital self-preferencing. more likely to work as a deterrent to
industry is characterized by network anti-competitive activity and ensure
shows that global portfolio investors have been that this may change with retail inflows into effects and economies of scale. These Those could be barred but we that digital markets become duly
acting antsy: they have withdrawn large sums mutual funds reportedly slowing. sometimes also exhibit the first-mover should also insist on positive competitive. Such a framework would
from India’s equity market lately. Sebi has eased This raises a larger question of retail savings advantage and winner-takes-all effect. obligations such as data guard against abuses of digital market
pathways for private equity vehicles and ven- in India’s economy and an elephant in the The concentrated nature of platform portability and platform dominance and ensure that both our
ture capital (PE-VC) funds to unlock invest- room: financial repression through low interest markets has been such that govern- interoperability to strengthen short-term and long-term goals of
ments globally have taken steps to rivalry in favour of end users. consumer welfare are served.
ments in India, particularly in startups, which rates on deposits. RBI’s latest repo rate cut of
should attract more long-term capital. There half a percentage point has made banks slash
has been some chatter about how Sebi’s rules their fixed deposit and savings account rates.
favour foreign funds, including the PE-VC uni- The country’s largest lender, State Bank of
verse; as if to counter these unsubstantiated India, now offers only 2.5% on its savings
conspiracy theories, Sebi has ensured that even accounts. After accounting for inflation and tax
startup promoters gain from regulatory reforms liability, this translates into negative earnings www.livemint.com
New Delhi, Mumbai, Bengaluru, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Saturday, June 20, 2015 Vol.9 No.148 `10.00 in Delhi-NCR/`11.00 outside Delhi-NCR 12 PAGES
+ 20 PAGES LOUNGE

Amish on what it takes

and are better motivated to take their busi- for depositors. Even for fixed deposits or gov-
Q&A:
to create Ram Rajya >4
NATION: Train services halted, schools shut as
Mumbai rains flood streets >2

nesses public. However, while these measures ernment bonds, the current rates offer meagre
MARKETS: Government floats sovereign gold
bonds proposal >12
INTERNATIONAL: Bank of Japan keeps policy
twitter.com/
livemint
facebook.com/
mint.live
plus.google.com/
+livemint
pinterest.com/
livemint/
steady, maintains upbeat view of economy >12

are likely to work for issuers of paper, we should or negative annual returns. Low interest rates An IPO is like a negotiated
SENSEX 27,316.17 Æ 200.34 NIFTY 8,224.95 Æ 50.35 DOLLAR `63.55 æ `0.18 EURO `71.84 æ `0.82 GOLD `26,780 ® OIL $62.66 æ $1.60

SC ORDER
FTIL in new QUICK EDIT
SENSEX MARKS BEST
Stiff terms deal to sell
WEEK IN FIVE MONTHS IEX stake for
Hot-button

assess their success likelihood from a counter- undoubtedly work for borrowers, but this must for Sahara
Shares rose for a sixth consecutive session on Friday, extending a
recent rebound to mark their biggest weekly gain in almost five
months as heavy rains eased fears that the country would experience
a drought. The Sensex gained 0.74% to close at 27,316.17 points,
gaining 3.37% in the week. The Nifty rose 0.62% to 8,224.95 points,
rising 3.03% this week. Both indices posted their best weekly
`357 crore
B Y A S H I S H R U K H A I YA R
ashish.r@livemint.com
····························
issue
T he heat wave that killed
hundreds across India
this May was not an
isolated event. Climate
scientists in the US have
transaction—the seller
chief’s release
said this week that the
performance since the week ended 23 January, and snapped a MUMBAI

party point-of-view as well. not be at the cost of household savings. Data

world just saw the hottest
three-week losing streak.
27,400
See Page 3
F inancial Technologies (India)
Ltd (FTIL) has entered into a
new share purchase agreement
May in 135 years.
This information has
been released just after
27,316.17

chooses when to come

with a clutch of entities, includ- Pope Francis issued an
A step closer to getting The `5,000 crore bank guaran-
tee will be liable to be encashed
ing DCB Power Ventures Ltd and
Aditya Birla Private Equity, to sell
encyclical urging the world
to abandon fossil fuels. The
bail, but Sahara will by Sebi if Sahara fails to pay any a 16.6% stake in Indian Energy real solution to the climate
have to pay `36,000 cr two instalments. It will also be 27,200 Exchange Ltd (IEX). challenge lies in new

The issue is moot once it’s slightly reframed: from RBI shows a falling share of bank deposits
encashable if Sahara fails to pay The new agreement is for the technology that will make
to Sebi within 18 the entire sum within 18 sale of the stake for `357.06 crore. other sources of energy
months of Roy’s release months. FTIL holds a nearly 26% stake in more attractive compared
The court also said Roy would the energy exchange. with fossil fuels. The fiscal
B Y S HREEJA S EN have to surrender to judicial cus- An earlier share purchase pact strategy should focus on
27,000
shreeja.s@livemint.com tody if Sahara failed to pay any stands cancelled and the new imposing higher taxes on
····························

public—and it’s unlikely

three instalments. agreement will be closed within carbon use rather than
NEW DELHI Roy can seek the court’s per- 60 days, subject to certain tech- providing subsidies to

I n a setback to jailed Sahara mission to sell any of Sahara’s nology-related conditions and alternative forms of energy.

who will buy the paper offloaded by startups? in household financial assets. Prudent invest-
group chief Subrata Roy, the properties frozen by the court regulatory approvals, according It is a subtle yet important
Supreme Court on Friday earlier within 15 days of his 26,800 to regulatory filings. difference.
directed that the group will have release. The new agreement has been All this will have to be
to pay the `36,000 crore it owes The court also directed Roy signed between FTIL and DCB backed by a global pact to
market regulator Securities and and the two directors to deposit 26,586.55 Power Ventures, Kiran Vyapar limit the rise in
Exchange Board of India (Sebi) their passports in the court Ltd, Agri Power and Engineering temperatures. Such global
within 18 months of his release. within 15 days of Friday’s order Solutions Pvt. Ltd and Aditya agreement is tough.
26,600
In a 27-page verdict, the court, or their release, whichever is Birla Capital Advisors Pvt. Ltd Developing countries also
while accepting Sahara’s liability earlier, “keeping in view the fact (for and on behalf of Aditya Birla have reason to worry

The initial public offering (IPO) market in India ment theory advocates a mix of asset classes to be a time that’s
as `36,000 crore, noted that the that a large amount remains to Trustee Co. Pvt. Ltd, trustees to whether they will have to
group had “failed to give satis- be deposited”. They will also Aditya Birla Private Equity Fund I abandon economic growth
factory proof of redemption of need the court’s permission to and Aditya Birla Private Equity before mass poverty is
`17,400 crores by SIRECL leave the country. 26,400 Sunrise Fund). abolished. But the hot May
(Sahara India Real Estate Corp. When Roy’s counsel Kapil 15 Jun 19 Jun This is the second time that this year is a reminder that
Ltd) and `5,442 crores by SHICL Sibal informed the court that FTIL has entered into such an kicking the can down the
(Sahara Housing Investment bankers had backed out of fur- Text: Reuters Data: Bloomberg road is not an option.
Corp. Ltd)”. nishing a bank guarantee, and TURN TO PAGE 2®
Sahara has consistently asked for an extension of office- PARAS JAIN/MINT

has been robust over the past 2-3 years. During in a portfolio, with their ratio going by one’s
claimed that it has refunded room facilities in the Tihar jail
nearly `17,000 crore to deposi- complex, the court granted an

favourable to you.
tors directly.
However, in what could come
eight-week extension.
Sahara will be allowed to meet Will 2015 be REBUILDING CONGRESS
as a measure of relief to Roy, the
court accepted the format for the
bank guarantee to be provided
by Sahara. The court’s accept-
all its other statutory liabilities,
tax dues, etc., only after deposit-
ing its dues to Sebi. The group
had earlier sought to use some
the hottest
year on record?
Five birthday resolutions that
ance of the format brings Sahara of the surplus cash arranged to
Rahul Gandhi should make
2024-25, for example, about 80 IPOs raised life-cycle stage. A single risky asset class, like
a step closer to posting Roy’s take care of unpaid salaries and B Y N I K I TA M E H TA
bail. wages (`198.22 crore), service nikita.m@livemint.com RAJ K. RAJ/HINDUSTAN TIMES
Roy and two Sahara group and other taxes (roughly `339.23 ···························· B Y A NUJA
directors—Ravi Shankar Dubey crore), bank loans (nearly NEW DELHI anuja@livemint.com
and Ashok Roy Choudhary—in
judicial custody since 4 March
`2,250.33 crore), and commer-
cial and other trade liabilities T he world faced the hottest
May in 135 years and 2015 is
····························
NEW DELHI

2014, also need to deposit

`10,000 crore as bail, half in cash
and the rest as a bank guarantee.
(`617.24 crore).
“I think that the order is clear
and in keeping with the rule of
on track to be the hottest on
record, according to latest data
from the US National Oceanic
C ongress vice-president
Rahul Gandhi turned 45 on
Friday. He will celebrate it at a

some ₹1.6 trillion from the primary market. shares or mutual fund units, should not domi-
Justifying Roy and the direc- law. There has been no relaxa- and Atmospheric Administration time when the Congress is at its
tors’ 15-month incarceration, tion in paying the liabilities as (NOAA). lowest ebb. As he rebuilds the
the court said, “It is an unprece- the order does not allow them The data was released on the party in the aftermath of a
dented situation of personal lib- (Sahara) to get out of their liabil- same day as Pope Francis’s land- humiliating defeat in the general
erty of the three applicants on ities. It is not harsh, it is in order mark encyclical where he urged election last year, Mint takes a

WA R R E N BU F F E T T
the one hand vis-à-vis the maj- with what the court laid down as the world to take swift action on look at the five key areas that the
esty of law and ensuring the bail conditions in March 2014. climate change and global warm- Gandhi scion needs to focus on,
larger public good, on the other. The court wants Sahara to settle ing, which will hurt the poor the a list that could well be the five
It is this sense of justice, in an its claims within 18 months of most. birthday resolutions he could

However, the rush to cash in on a bullish sec- nate anyone’s holdings. Policy frameworks that
unprecedented kind of situation, Roy’s release,” said Lalit Kumar, The world is on track for the make for 2015.
that has compelled the court to partner at J Sagar Associates, a warmest year on record for the Party’s hope: Supporters greet Rahul Gandhi at the Congress office in
take such an extreme step.” law firm. second time in a row after 2014 • Reclaim the Hindi heart- New Delhi on Friday.
The Sahara group declined to In May, Sebi had told the was declared so. land
comment on Friday’s develop- court that Sahara has to refund NOAA highlighted a few signif- Assembly elections in Bihar, his energies on Bihar and Uttar block committees and city com-
ments. nearly `39,000 crore to it. Sahara icant climate events from last where the Congress has been Pradesh to consolidate the mittees. If Gandhi can tackle dis-
The bench of justices T.S. has disputed this sum. The month. One of them is the heat struggling for the past two dec- party’s vote bank in the country’s enchantment and complaints of
Thakur, Anil R. Dave and A.K. group claims it has refunded wave between 21 and 31 May, ades, are scheduled for this year, biggest and politically most cru- being ignored by the ‘high com-
Sikri enumerated stiff conditions `17,000 crore to about 30 million when temperatures surpassed 42 while Uttar Pradesh will go to cial states. While the odds are mand’, he can re-build the cadre

ondary market also saw many fly-by-night drive such a configuration could embed future
for the payment of the remaining depositors directly. degrees Celsius (°C) across much polls in 2017. against the Congress, Gandhi that works at the booth level.
liability of `36,000 crore by Sahara has deposited `3,827 of India, and 45°C in northern While the Congress sprung a needs to begin by making the • Move beyond rhetoric
Sahara—it has to be done within crore in cash so far with the Sebi and central areas of the country. surprise in Uttar Pradesh during party more visible. Gandhi caught the headlines
18 months and in nine instal- Sahara Refund Account. In Delhi, temperatures for the the 2009 general election, there • Realize small is powerful and the attention of the ruling
ments. period were 4°C above the May has been a steady decline ever After the defeat in the Lok Bharatiya Janata Party with his
The instalment scheme Sahara has filed a defamation average. since. Led by Gandhi, in one of Sabha elections last year, Gandhi “suit boot ki sarkaar” comment
requires Sahara to pay the first case in a Patna court against Here’s what the weather condi- his first big political assign- went in for a change of guard by during the budget session last
eight instalments of `3,000 crore Mint’s editor and some reporters tions were like in other parts of ments, the Congress increased putting younger people in month. While such comments

operators coming to raise capital from unsus- risks in the economy’s progress. Policymakers
every two months and the over the newspaper’s coverage of the world through the season: its tally to 21 Lok Sabha seats in charge. That alone will not help help the beleaguered party stay
remaining sum as the ninth the company’s dispute with Sebi. • Spain: After experiencing 2009 from nine in 2004, raising revive the party. He should on top of the opposition pile, the
instalment. Mint is contesting the case. warmer- and drier-than-normal hopes for the party’s revival in instead focus on smaller units time is now ripe for Gandhi to
the state. that are directly connected to the
Mint is also available for R14.50 with Hindustan Times in Delhi-NCR only TURN TO PAGE 2® Gandhi will now need to focus masses—the district committees, TURN TO PAGE 2®

pecting investors. There was one factor that should pay more attention to this.

GUEST VIEW

A steady India offers the wobbly world a useful anchor

ments were made with a fingerprint. Yet, the Further, India is deepening its economic alternative not just for cost reasons, but for to ideaForge (a UAV leader) and QNu Labs
RAJESH NAMBIAR network held steady, systems scaled effi- integration strategically. Recent free trade its capabilities and strong governance. (quantum cybersecurity), Indian startups are
ciently and people adapted swiftly. It was agreements with the UK, UAE and Australia With over 1,750 GCCs currently, it is clear setting global benchmarks. With the world’s
proof of preparedness. have gone beyond mere tariff concessions, that global enterprises increasingly view second-highest number of unicorns and a
India is no longer the world’s back office. encompassing critical areas like services, India as a critical hub for talent, innovation three-fold rise in tech initial public offerings
With Silicon Valley giants building their digital trade and investment—hallmarks of and operational excellence. since 2023, India’s innovation ecosystem is

T
he world today is undergoing a recali- largest hubs here and global capability cen- a tech-forward economy. Simultaneously, A robust talent and DeepTech pool: India’s scaling fast and gaining investor confidence.
bration of trade ties. From tariff esca- tres (GCCs) driving global digital operations, India is expediting discussions with the US vast pool of STEM graduates is driving inno- The cost of not betting on India: In an era
lation and geopolitical conflicts to India is becoming the brain and increasingly on a trade agreement. vation across sectors—from EVs and phar- where friend-shoring and de-risking domi-
export curbs and volatile commodities, the also the backbone of global tech. India’s role in shaping global tech: The case maceuticals to advanced digital products. nate global trade strategies, India offers not
post-globalization order is fundamentally When Tim Cook announced in his latest for investing in India has never been more This talent base positions India as a top only alignment with democratic values, but
being reshaped. In the past five years, global earnings call for Apple Inc that India will compelling. With a median age of 28, India’s choice for multinationals scouting for pro- also strategic economic rationale. Amid
businesses have had to rip up more play- become the primary manufacturing hub for demographic dividend offers a clear edge gramming expertise and/or locations to set today’s tariff uncertainty, India enjoys a win-
books than they have followed. Yet, despite iPhones sold in the US, it was not just over ageing economies up global IT centres. dow of opportunity. It faces lower reciprocal
robust global demand, cross-border busi- another big multinational shake-up story. It like in Europe. This tech- Indian developers are tariffs than many of its competitors, particu-
is president, Nasscom. ness has grown increasingly complex. exemplified the rising tide of interest that savvy user base is primed QUICK READ among the largest con- larly in sectors like electronics; this gives it
Amid this uncertainty, where can busi- corporations and governments are showing to adopt and scale tributors to platforms like an edge. While the US pushes for re-shoring,
nesses find predictability, scalability and in doing business with India. Just days emerging technologies India’s macroeconomic strength, GitHub. By 2028, India is higher export tariffs from countries like
resilience? The answer increasingly is India. before, US pharma major Eli Lilly set up its and AI solutions. democratic stability, rising projected to surpass the Vietnam, Thailand and Taiwan make India
Global businesses are shifting East, espe- second Indian GCC in Hyderabad. Tariffs may disrupt the innovation and robust pool of US to become the world’s more attractive. Though some firms may opt
cially to India, not because India is cheap, Stability and innovation: India’s macroe- movement of goods, but talent make it an increasingly largest developer com- to relocate closer to the US, the risks and
but because India has the potential. It stands conomic stability has positioned it as one of they don’t obstruct the valuable destination for global munity on that platform. costs of such re-shoring remain high.
out as a trusted, open and steady innovation the most resilient large economies globally. flow of talent, intellectual businesses looking to diversify. India also hosts the While no economy is immune to global
partner. But this is not only about resilience. While global growth is set to slow, India is property or digital servi- world’s third-largest tech shocks, India’s structural strengths—its
It is about readiness. defying the trend. Its relatively low depend- ces—areas where India It’s not just about Apple Inc’s startup ecosystem, home young workforce, robust digital stack and
In 2020, a moment of collective transfor- ence on external trade provides a buffer holds an advantage. Mul- iPhone production. Interest to 35,000 such new busi- deep entrepreneurship—make it a rare con-
mation unfolded almost overnight as a bil- against global disruptions. Its economy’s tinationals looking to in India is rising rapidly among nesses, 4,000 of them in stant in an otherwise volatile equation. For
lion Indians moved their lives online. Class- consumption-led growth model driven by de-risk supply chains are global businesses. The question DeepTech. From Skyroot global businesses and policymakers, the
rooms went virtual, groceries were ordered domestic demand provides a natural cush- increasingly finding now is not why they should shift Aerospace (India’s first question is no longer ‘Why India?’ but ‘How
through apps, offices went digital and pay- ion against external shocks. India to be a rational to India but how soon. private rocket launcher) fast can we move to India?’
LIVEMINT.COM VIEWS FRIDAY, 20 JUNE 2025
NEW DELHI 13

MY VIEW | STATISTICALLY SPEAKING M I N T C U R AT O R

India’s informal sector is being Star chase: Meta is deploying

billions to acquire hot AI talent
tracked better than ever before Its $14.3 billion ‘transfer fee’ for Alexandr Wang is an eye-popper

Arguments of GDP over- or under-estimation fall flat in the face of statistical progress made to measure this sector closely

HT

DAVE LEE
is Bloomberg Opinion’s US technology
columnist.

T.C.A. ANANT
is a visiting professor at the Institute for Studies
of Industrial Development and former chief
statistician of India

I
t sounded like something that should
have come from the sports desk—a $14.3

R
ecently, Indian GDP measurement billion transfer fee for a young up-and-
came under considerable discussion in coming prospect as Meta looks to rebuild Meta has taken a 49% stake in Alexandr
the media on account of an observation its team for the tough season ahead. The Wang’s Scale AI. AP
emanating from the Niti Aayog based head coach is an under-pressure Mark
on a projection made by the World Zuckerberg, and the hot talent is Alexandr to move quickly and take risks been more
Bank—that India has become the Wang, 28. His company is Scale AI, and apparent.
world’s fourth largest economy. As part of this Meta is taking a 49% stake, it was con- Does an Alexandr Wang find success at
discussion, some commentators speculated that firmed last week. a place like Meta had he been hired as a
Indian GDP is underestimated because “a very Were this an acquisition, it would be the young engineer? A company with 77,000
significant informal sector is not measured in the second largest in Meta’s history after its $19 employees and a fierce focus on keeping
GDP.” This allegation can be fairly easily dismissed. billion purchase of WhatsApp in 2014. But Wall Street happy? One that’s run by a CEO
The ‘informal sector’ is a term that is loosely it’s not an acquisition, so don’t call it that, he would likely have never been able to
used by many economists. There are two different even though it bears many of the hallmarks meet, let alone be able to influence?
conceptual approaches to defining this term. First, of one. Startups have always had an upper hand
by the International Labour Organization, which Wang is going to join Meta as a top exec- in this way, for sure, but the low barrier to
tends to focus on ‘informal employment,’ primarily utive tasked with running a crack team to entry for those with bright AI ideas means
referring to work that happens without written build an AI superintelligence, sitting next it has never been easier to attract attention.
contracts, job security and often on daily wages. to Zuckerberg at Meta’s headquarters. But then what? Founders are finding
Second, by the UN’s System of National Accounts In this context, it should be noted that the mere Other Scale AI employees will join, too, themselves staring at unfathomably large
(SNA), which refers to value added within the Informal isn't invisible introduction of GST does not by itself lead enter- according to multiple reports. So—defi- data centre costs to scale their businesses.
household sector, covering those establishments The contribution to India’s gross value added prises to formalize, since enterprises under a cer- nitely not an acquisition, just an invest- When a hyperscaler like Meta comes
that do not maintain regular books of accounts. of the household sector by economic activity tain size (₹20 lakh in services and ₹40 lakh in ment that also includes putting the com- knocking, it can look like the only sensible
Since 2011-12, the Indian System of National shows significant diversity. goods) are not required to register. Even those pany’s top talent on Meta’s payroll. Mean- way forward.
Accounts has used this globally accepted defini- Transport, Real estate, ownership of dwelling above this norm with a turnover up to ₹1.5 crore can while, Meta has been trying to poach AI So the startup ecosystem may now
tion to measure the informal economy. If we look storage, and professional services pay a fixed tax rate under the GST composition talent from Google and OpenAI with the behave like the minor leagues. Feeder
at the recent National Account Statistics 2025 communication Other services scheme and are not required to maintain books of promise of “seven-to nine-figure” salaries, clubs that are a breeding ground for talent
& services Agriculture,
released by the ministry of statistics and pro- related to forestry & fishing
accounts. In effect, enterprises with turnover below the New York Times reported. waiting in the wings of the bigger teams
gramme implementation, in chapter 7 we will find broadcasting
4 ₹1.5 crore remain in the household (i.e., informal) In its defence, Meta is hardly a pioneer with the deepest pockets. The talent leaves,
various aggregates pertaining to the household segment. here. As Bloomberg Tech’s Jackie Davalos but the club remains. In what form isn’t
sector of the economy. This alone is enough to 15 Since 2017-18, the NSS has been conducting mentioned, this kind of squad building is quite clear, though at least investors get
indicate that the informal economy is included in annual and quarterly surveys of employment, becoming a regular occurrence. Microsoft their money back.
India’s GDP measurement. 40 which from this year have become monthly. Since signed Inflection AI’s co-founders; Alpha- The approach may seem expensive, but
A second type of criticism arises from the argu- 6 2021-22, it has also been conducting an annual sur- bet hired Character.AI’s founders; Ama- it is certainly fast. Why would tech giants,
ment that the informal sector in GDP data is actu- 2023-24 vey of unincorporated enterprises . As of now, zon.com took on Adept AI’s chief executive seeking tighter headcounts these days, try
ally overestimated in the current series. This criti- (in %) three years of data from this survey are available. officer. On none of these occasions did they to incubate these talents when they could
cism has been around since the series was revised The survey is conducted on a design similar to the acquire the actual companies. just sit back and wait for special geniuses to
14
in 2015, with proponents arguing that demonetiza- earlier quinquennial survey of unincorporated Two forces are driving this approach. make themselves known? Of course,
tion and GST introduction had a severe impact on enterprises done in 2010-11 and 2015-16. Data from The first, glaringly, is that big companies there’s a risk of losing talent to a competi-
the informal sector and since this was not ‘ade- these surveys taken together suggests that the are particularly keen to avoid being seen to tor—hence the jacking up of compensation
16 4
quately’ reflected in the data, the numbers may be Mining & informal sector has been growing robustly, under- be making acquisitions right now when to levels that only the biggest companies
quarrying
faulty. Subsequently, the covid pandemic was also mining simple arguments of over-estimation. In judges are deep in consideration over could afford, consolidating AI expertise in
added to this list. This criticism requires more Trade, repair, hotels
1 fact, the employment survey seems to indicate that whether earlier actions, such as Meta’s pur- just a few of the usual places. At the same
Construction Manufacturing
careful analysis, and understanding it requires a and restaurants employment in the informal sector is now better chases of Instagram and WhatsApp, should time, some smaller companies may not
closer look at the composition of the household Source: Ministry of statistics and than at any time in the last 20 years. However, its be deemed illegal. For Meta, structuring want to be a feeder club and might feel
GVA: Gross Value Added programme implementation
sector (shown in the pie-chart for 2023-24). compositional character has shown changes, with the Scale AI deal as an investment means unfairly treated as homegrown talent dis-
Remember that national accounts calculate value GOPAKUMAR WARRIER/MINT
a very rapid growth in employment within house- avoiding a long, turbulent timeline that appears after receiving an email from
added in each of these segments differently. was to use a measure of effective labour that hold enterprises. Going forward, the concept of would come with a buyout effort. Zuckerberg offering $10 million to sign
The contribution to gross value added (GVA) by assigned different weights for different types of effective labour requires us to carefully assess its But the second factor is what I find more on—which is maybe just the beginning.
agriculture and construction (which account for employment (regular, casual, etc). In years after the impact on value added. interesting. Ever since the launch of We’ll see just how long this approach
over 56% of the household sector), is computed base year, the GVA was moved using different indi- The timeliness and regularity of informal sector ChatGPT, there’s been no shortage of soul- remains possible.
through a ‘commodity flow’ method. The produc- cators; in transport, the indicator was based on data now available through the NSS is searching among Big Tech firms as to why As Axios’ Dan Primack has pointed out,
tion data for these sectors is separately and inde- growth in commercial vehicles; in trade, it was better than it has ever been. This creates an oppor- they didn’t get there first. How could it be antitrust authorities do have the power to
pendently verifiable, leaving little scope for under- drawn from sales tax collections (which probably tunity for the ongoing base revision to measure that the pioneering work was done outside go after these kinds of deals if they want.
or over-estimation. For the remaining segments, shifted to GST post 2017); and in manufacturing, it informal sector value added in a manner that offers of their campuses by individuals and com- The Federal Trade Commission last year
GVA computation in the base year 2011-12 was done was drawn from the Index of Industrial Production more clarity. It should be possible for us to reduce panies with relative pennies compared announced it was looking into them—just
using employment data from the National Sample and Annual Survey of Industries. In other seg- our dependence on episodic base revisions and with their R&D budgets? The reason, as because they are not acquisitions doesn’t
Survey’s (NSS) employment-unemployment num- ments, it was based on the growth in the corre- have a genuinely continuous series of national evidenced by these hirings and invest- mean they can’t and won’t be scrutinized.
bers and establishment-level value added data from sponding corporate segments. The possibility of accounts. Base revisions could then be undertaken ments, is the very nature of bigness. But for Meta and its peers, that’s a later con-
the 2010-11 NSS on unincorporated enterprises. mis-measurement then depends on the dissonance (as is done globally) only to account for changes in Now that the Big Tech companies are cern. Today’s means assembling a squad as
The major innovation introduced in the revision between the chosen indicator and the sector itself. the global methodology as and when they occur. mature businesses, never has their inability quickly as possible. ©BLOOMBERG

GUEST VIEW

The fear of missing out is raising our risk of stampedes

FOMO—or the ‘fear of missing out’—dictates kumbh gathering in Prayagraj, followed by cautions just to be a part of the celebration. ceed without public cooperation. For that, a
ANUKARAN KHANNA & ASHISH GUPTA our actions in this age of keeping up with another at New Delhi railway station. Sports Several attendees later confessed that they cultural shift is needed—from ‘I must be
social media feeds? gatherings have been vulnerable globally. stayed on at the location even after it had there’ to ‘Do I need to be there?’
FOMO refers to the worry people experi- Cairo, Lusaka, Basra and other cities have begun to seem dangerous because they At its heart, cricket is a game of unity, pas-
ence when they believe they are losing out witnessed stadium stampedes that took didn’t want to be among those ‘who missed sion and joy. But when fans are pushed—by
on a significant or rewarding experience. lives. It’s part of a growing pattern of crowd out.’ This compulsion to witness something peer pressure, marketing hype and need for

I
t was on the night of 3 June that Royal While it is mostly linked with social media, disasters powered by FOMO culture. historic, to belong and to broadcast seems online validation—to display their loyalty by
Challengers Bengaluru (RCB), a cricket it also influences real-world behaviour, such This culture has powerful drivers behind like the result of emotional conditioning. It showing up, we turn a celebration into a cri-
team with a vast fan following, finally suc- as attending mass events. it. Consider the following. is as if our worth is increasingly measured by sis. It’s worth asking: Would RCB’s win be
ceeded in lifting their maiden Indian Pre- The star-studded RCB’s long-awaited vic- Social media urgency: The need to post how ‘in the moment’ we are, even when the any less fulfilling if one had watched it from
mier League (IPL) trophy after a wait of 18 tory had turned into more than just a sports that perfect photo or video ‘from the scene’ moment is potentially harmful. one’s living room? Does one’s support mean
long years. That this win had sent waves of moment. Fans across generations who had is a major motivation. While cultural reflection is necessary, so is less if one doesn’t post a reel from the
excitement around the city of Bengaluru was stood by the team through humiliating Celebrity worship: In India, cricket stars administrative accountability. The parade’s parade? The answer, surely, is no.
obvious. Many fans appeared delirious with losses, poor finishes and online trolling saw command a fanbase that planning—or lack The team’s IPL win will remain etched in
joy. But few could have expected that their the IPL win as redemption. The team’s rivals that of religious fig- thereof—was a disaster sports history. But the chaotic scenes that fol-
are, respectively, assistant celebrations would end in tragedy the very brand, popularized by superstar players like ures. Missing the parade QUICK READ waiting to happen. From lowed must be remembered too—not to tar-
professor, DIT University; and next day. Virat Kohli and others, had cultivated a near- may have been akin to here on, several measures nish the victory, but to illuminate a truth we
professor, IIFT New Delhi. A victory procession that seems to have religious following. The victory parade was, sacrilege for many. FOMO has been found to dictate need to be adopted. often ignore. That not all good things must be
been organized in a hurry led crowds of fans in essence, a spiritual culmination. The Scarcity mindset: The our actions in this age of keeping Attendance should be witnessed live in person to be meaningful.
thronging to a stadium in Bengaluru, where announcement of an open-top bus parade belief that ‘we will never up with social media feeds through pre-registration. Let this stampede be more than just
the gathering unexpectedly swelled beyond sent social media into overdrive. Thousands get this chance again’ can but the Bengaluru stampede Crowd-pulling events another urban cautionary tale. Let it spark
the ability of the security personnel to han- poured into key points along the route push people to take irra- suggests its strong influence should be live-streamed conversations in homes, schools and online
dle, resulting in a stampede that took several hours in advance. Traffic was choked and tional risks to participate even in the physical world. widely to reduce physical spaces about how we celebrate and why we
lives and left many injured. the police found themselves overwhelmed. in a crowd event. crowding. Points of fan chase moments. Maybe, just maybe, it’s time
What was meant to be a moment of tri- People climbed trees, bus stops and traffic The darker side of Let that tragedy be more than interaction should be to normalize saying, ‘I chose to stay away—
umph turned into a gloomy day that no one signals to catch a glimpse of the team. Amid FOMO is its ability to an urban cautionary tale. It spread out, so as to keep and I’m glad I did.’ And in a world addicted to
wants to remember. Like after every such all the fervour, as people converged on the override logic. People in should spark conversations numbers manageable. more, choosing less might just be an act of
incident, a committee was formed to probe stadium, things went out of control. Bengaluru skipped work, and make us reflect on the darker And the police should self-care that’s both bold and wise.
its causes. But a deeper question emerges: Is Stampedes are not very uncommon. Just school and in many side of FOMO and its unsettling hold crowd control drills. Prateek Khanna of ICFAI Business School
this stampede another example of how five months ago, one occurred at the Maha- cases, even safety pre- ability to override logic. But no system can suc- contributed to this article.
14 FRIDAY, 20 JUNE 2025
NEW DELHI BUSINESS OF LIFE LEISURE LIVEMINT.COM

Taking the loom route to

explore historical weaves ISTOCKPHOTO

DRESS A Carnatic music

SENSE performance.

S U J ATA
ASSOMULL

For the weekend

Respond to this column at
feedback@livemint.com

Curated craft trails,

immersive weaving and Flavours of
dyeing workshops
offer travellers a deeper music, mango
understanding of culture, A Mint round-up of what’s
heritage and slow luxury happening in and around your city

T
his is the time of year when peo- BENGALURU
ple look forward to travelling for A CARNATIC QUARTET
leisure. While I am always more 20-21 June
invested in all things fashion, my Enjoy an evening of classical music curated by renowned
focus lately has shifted to more violinist Shreya Devnath. The performance will bring
immersive travel. together four artists—Shreya Devnath (violin), Mylai M.
In India, though, you don’t have to choose Karthikeyan (nagaswaram), Praveen Sparsh (mridangam)
between the two. The country’s rich textile heri- and Adyar G. Silambarasan (thavil).
tage allows you to combine your love for fashion 9.30pm. Windmills, Craftworks, Whitefield. For details,
with a meaningful travel experience. India call 08045217761 or visit Windmills-india.com.
makes 95% of handwoven textiles in the world.
In other words, our weaving traditions are A HIMALAYAN CULINARY EXPEDITION
woven into the fabric of the Indian culture, Till 29 June
offering journeys that are as enriching as they This food festival, which brings together popular dishes
are beautiful. from Bhutan, Nepal and Tibet, includes Shaphale golden
In the past, I have visited pashmina ateliers in fried meat pies, stir-fried Shapta, Laphing, and Dresil, the
Srinagar, Ajrakh printing centres in Jaisalmer, Tibetan rice dessert.
chikankari centres in Lucknow and sari weav- Textile revivalist and curator Lavina Baldota older travellers with a passion for art, design and Timings vary. Lush, Renaissance Bengaluru Race Course
ing clusters in Kanchipuram—but those were is no stranger to the idea of textile trails. craftsmanship,” he says. Hotel, Madhava Nagar. For details, call 9513944520.
usually quick detours during work trips or sto- “For me, these are generally study trips—to “We’ve had couples gift each other weaving
len moments on a holiday. Now, I want to go understand, evaluate and document,” she says. workshops for anniversaries, friends gifting
deeper. And it is easier than you might think. While Baldota believes the interest in textile/ trips for birthdays, and professionals from com-
Homegrown boutique travel companies are loom tourism is on the rise, she points out that pletely different fields who simply want to
now offering textile trails as part of their itiner- mainstream media, even travel-specific publi- understand the intricacies of Indian weaving,”
aries. One of them is Breakaway, founded by cations, aren’t doing enough to give such expe- he explains.
Shilpa Sharma, in 2011. Her textile trails span the riences the coverage they deserve. Menon believes the next step forward is for
country, from Gujarat and Rajasthan to Madhya “Craft and textile tourism hold a lot of textile-driven fashion brands and retail stores to
Pradesh, Telangana, Tamil Nadu and Nagaland. potential. Every year, there are enthusiasts begin curating these kinds of journeys for their
“Each region offers something distinct— who come to India specifically to explore tex- consumers.
whether it’s the vibrancy of Ajrakh and bandhej, tiles,” she explains. Baldota says if more atten- “The fashion and retail industry can play a
or the intricacy of weaving traditions tucked tion was given to how textile and travel are a huge role. The ‘Handmade in India’ story is our
away in village clusters across the country,” says natural fit—both for Indian and international biggest asset. Positioning it within the realm of
Sharma, the visitors—it could high-end luxury—through loom tourism and by
co-founder of the become a powerful opening up ateliers and production units—will By Naira Mushtaq.
crafts-focused brand ‘Loom tourism’ can help bring way to understand An indigo workshop, organized by showcase our craftsmanship and ways of mak-
Jaypore, and of Goa- more depth, credibility and India’s culture and One Zero Eight by Save the Loom; and ing,” he explains. DELHI
based restaurant heritage. The gov- (top) a weaver at work. It can also help bring more depth, credibility THE SUBJECT IS THE SUBJECT
Mustard. capital to India’s growing ernment could orga- and capital to India’s growing influence in Till 28 June
Over the past few presence in global fashion nise and promote to tell better stories,” Menon says. global fashion. This is a solo exhibition by Naira Mushtaq, a London-based
years, Sharma has such trips, and so From there, Menon began hosting regular “At a time when the world seeks transparency multidisciplinary artist and educator whose work includes
observed a steady rise could the fashion programmes around weaving, ranging from and sustainability, when brands are being held deconstructing found photographs and film archives. The
in interest for textile-focused travel. “I think industry, Baldota suggests. three-hour workshops in handloom weaving accountable, and when we want to elevate tradi- exhibition explores the idea of “who controls the narrative,
there’s a larger cultural shift. We’ve seen that A similar belief led former journalist and and natural dyeing to one-day deep dives show- tional artisans globally, curating experiences challenging hierarchical dynamics between artist and sit-
travellers are increasingly craving ‘meaning’, Kochi-based sociopreneur Ramesh Menon to casing the entire process of yarn processing, around textile traditions is the most authentic ter, viewer and viewed”, state the show notes.
not just monuments. India’s textile heritage launch Save the Loom, a movement born after dyeing, winding, warping, weaving, and visits to way to claim our space in the luxury conversa- 10.30am-6pm. Gallery Pristine Contemporary, Kotla
offers a rich and tangible way to connect with the 2018 Kerala floods, which severely affected home weavers and women-led cooperatives. tion,” says Menon. Mubarkpur. For details, visit Gallerypristine.com.
memory, identity and place.” the weaving clusters around Kochi. These evolved into bespoke travel experiences, Perhaps it is time the fashion industry started
Their trips typically last four to 10 days, mak- “The once-famous weaving town had faded culminating in seven- to 21-day immersive tours thinking of clothing not just as product but as a CHENNAI
ing them easy to plan as long weekend getaways from public memory as a centre of craft heri- across states. journey. ĀMRA
or shorter immersive escapes that don’t require tage,” says Menon, the founder of One Zero “Though our primary focus is weaving, we Pairing craft with travel may well be the most Till 30 June
significant time commitments. Eight by Save the Loom, a concept store that also include other traditional craft experiences, powerful way to keep India’s story, and its pro- Curated by chef Rakesh Raghunathan, this pop-up cele-
For some locations, planning is necessary— collaborates with over 40 designers. museum visits, and ‘look-and-learn’ modules,” found influence on global material culture alive brates the versatility of the mango fruit. The menu includes
Kashmir and Ladakh are best visited between “I wished people had celebrated and pre- Menon says. “Even watching a Kathakali and thriving. Mango Crostini (papdis topped with mangoes, cream
May and September, while other regions are served their traditional crafts—taking pride in make-up session can be part of the itinerary.” cheese and mint), Shrimp Tacos with Mango Salsa, Avakkai
ideal in the cooler months between October and showcasing them to the world. Just after the What stands out to him is the diversity of travel- Dress Sense is a monthly column on the clothes we Biryani (Seeraga Samba biryani with Andhra Avakkai) and
March. It’s also worth noting that dyeing and floods, an elderly couple flew in from Manhat- lers who sign up. wear every day. Mamidikaya Chicken (Andhra-style spicy chicken sim-
printing activities slow down during the mon- tan, New York. The wife, a hobby weaver, had “There’s growing interest from young Indi- mered in a zesty raw mango gravy), and Mango Meringue.
soon season. So, do keep seasonality in mind read about our story and offered to volunteer. ans who want to experience and learn. On the Sujata Assomull is a journalist, author and mind- 10am-11.30pm. Wild Garden Cafe, Amethyst, Royapettah.
when you are planning a textile trail. That moment made us realise we had an avenue international side, it’s often ‘silver tourists’— ful fashion advocate.

Travelling to Barcelona? Beware of the humble water gun ISTOCKPHOTO REUTERS

Residents are using water “What happened later went viral, but in
reality it was just kind of a joke by a group
guns as a ‘weapon’ as of people who brought water guns
well as a tool to keep because it was hot,” Adriana Coten, one of
the organisers of Neighborhood Assembly
themselves cool at for Tourism Degrowth, told The Associ-
anti-tourism protests ated Press.
Then, some turned their water guns
from each other to tourists. The images
AP went around the world, becoming a pub-
feedback@livemint.com licity coup for the anti-tourism cause.
The guns reappeared in April when the

A
group of tourists were sitting at same group stopped a tour bus in Barce-
an outdoor table in the Spanish lona, the Catalan capital.
city of Barcelona, trying to enjoy
their drinks, when a woman raised a A SYMBOL OF DISSENT “This is a symbol to say that we are fed water guns that send a slim jet of water
cheap plastic water gun and shot an arc of Last week, around a thousand people up of how tourism industry is transform- not that far away.
water at them. marched from a luxury shopping boule- ing our country into a theme park,” Sán- Some tourists who were sprayed took it
Her weapon of choice—the cheap, vard popular with affluent foreigners chez said. in stride, even claiming it was refreshing
squirt-squirt variety—is an increasingly before police stopped them from getting Another demonstrator, Andreu Martí- on a day with temperatures pushing up to
common fixture at anti-tourism protests closer to Barcelona’s top sight-seeing des- nez, acknowledged it was “to bother the around 30 degrees Celsius.
in the southern European country, where tination: La Sagrada Familia church. tourists a bit.” But there were moments of tension.
many locals fear that an overload of visi- The marchers spritzed unsuspecting Laurens Schocher, a 46-year-old When several marchers squirted workers
tors is driving them from their cherished tourists along the way, chanting slogans The famous La Sagrada Familia church in Barcelona; and (right) demonstrators use architect, said he didn’t shoot any sus- at a large hostel, tempers flared and one
neighbourhoods. and carrying protest signs. One read: “One water pistols during a protest against mass tourism on 15 June. pected tourists but hoped that carrying a worker spat at his attackers as he slammed
How did the humble water gun become more tourist, one less resident!” water gun would bring more attention to the hostel door shut.
a symbol of discontent? They left a trail of stickers on hotel only shooting in the air or at each other. Can the water gun really change the their cause. Nora Tsai, who had just arrived from
The phenomenon started last July, doors, lampposts and outdoor café tables One dad was toting his baby in a front- minds of tourists, authorities or the busi- “I don’t think the tourists will get it,” he Taiwan on a short visit, was among those
when a fringe, left-wing activist group showing a squirting water gun encircled pack, water gun in hand. nesses that drive the industry? Depends said. “I think this is to send a message to spritzed on Sunday.
based in Barcelona that promotes the by a message in English: “Tourist Go Outside the protests, Barcelona locals on who you ask. authorities.” She said she was a bit frightened and
“degrowth” of the city’s successful tour- Home!” are not toting water guns or taking aim at Protester Lourdes Sánchez and her The marchers had no monster, saddened. The “Tourist go home!” chants
ism sector held its first successful rally. Still, the number of Barcelona protest- tourists. And many in the city still sup- teenage daughter, each holding a water pump-action water cannons most kids didn’t help either.
Some brought water guns to shoot one ers carrying water guns was a minority — port tourism, which is a pillar of the local gun, said the gun “really isn’t to hurt use for backyard battles in the summer. “I still like Barcelona,” she said. “I have
another and stay cool in the summer heat. and in the gun-toting group, many were economy. anyone.” Theirs were the old-school, cheap-o met a lot of people who were kind.”