COMPANIES | PAGE 4 COMPANIES | PAGE 4 IITs likely to see 20% rise in tech job placements INTERNATIONAL | PAGE 7 Gaming disputes await MeitYregulatory clarity Chinese central bank injects $111-bn liquidity NEW DELHI, SATURDAY, NOVEMBER 30, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM VOL. L NO. 233, 22 PAGES, `12.00 (PATNA & RAIPUR `12.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E READ TO LEAD SENSEX: 79,802.79 ▲ 759.05 NIFTY: 24,131.10 ▲ 216.95 NIKKEI 225: 39,208.03 ▼ 141.03 HANG SENG: 19,423.61 ▲ 56.65 `/$: 84.60 ▼ 13 `/€: 89.22 ▲ 0.22 BRENT: $73.20 ▼ $0.08 GOLD: `76,400 ▲ `417 Goenka rejection signals leadership change at Zee RETAIL INVESTORS STRUCK down the proposal to re-appoint Zee CEO Punit Goenka as a director on the board at the firm's AGM held on Thursday, indicating they wanted a change in leadership, proxy advisory firms said, reports Viveat Susan Pinto. ■ PAGE 4 FPIs turn net seller of bonds, first since JPMorgan inclusion FOREIGN PORTFOLIO INVESTORS turned net sellers of government securities under the fully accessible route for the first time in November since their inclusion into the JPMorgan emerging market index. They offloaded govt securities worth `7,000 crore in November, reports Anupreksha Jain. ■ PAGE 6 PRIYANSH VERMA New Delhi, November 29 DISAPPOINTING PERFORMANCE THE RATE OF expansion of India’s gross domestic product (GDP) plunged to a seven-quarter low of 5.4% intheJuly-SeptemberperiodofFY25, on account of a broad-based slowing of economic activities,data released bytheNationalStatisticsOffice(NSO) showed on Friday. The GDP had grown at a five-quarter low of 6.7% in Q1 and at 8.1%in Q2FY24. Amoderationofgrowthwaswidelyexpectedwith most high-frequencyindicators pointing to it and evidence of tepid urban consumption, but the extent of the slowdown was significantlyhigherthan estimates. Observerssaythismakesthetask of the Reserve Bank of India (RBI) more challenging.While high borrowing costs are also seen to be behind weak demand situation, the RBIhasbeenmaintainingthatarate cut would only be considered once inflation“is sustainably closer to the 4% target”.Retail inflation had risen to a 14-month high of 6.21% in October, driven mainly by key vegetable prices.Some economists now see higher changes of a rate cut in Decemberafterthe latest NSO data. Real GDP growth in H1FY25 is reckoned at 6.2%, compared with 8%ayearago.FortheRBIestimateof 7.2% growth for FY25 to come true, India needs to grow at 8.3% in H2 despiteanunfavourablebase(8.2%). This is an unlikelyprospect. 10 Continued on Page 13 Real GDP 8 5.5 6 5.4 4 2 Q2FY23 Q2FY25 Q2 5 6 5.6 4 2 Q2FY23 Q2FY25 (GVA, % chg, y-o-y) Manufacturing Construction Utilities stumbles sluggish subdued Q1 Q2 5 14.3 11.5 8.9 Q1 7 Q2 2.2 Q3 Q4 8.6 13.6 9.6 8.7 10.5 7.7 »INSIDE« FISCAL DEFICITAT 46.5% OF FY25 TARGET ECONOMISTS CUT FY25 GDP FORECAST NEW GDP, CPI SERIES BY FEB 2026 PAGE 2 IS RBI LISTENING? PAGE 8 10.5 9 6.2 7 7.7 10.4 3.3 7.6 7.1 EXPRESSINGDISAPPOINTMENT OVER the second-quarter gross domestic product (GDP) growth print of 5.4%, Chief EconomicAdvisorVAnantha Nageswaran said on Fridayitdoesn’tsignalthe beginning of a trend, reportsfeBureau.Thereis no threat to 6.5% growth target for the current financialyear,he said,while cal- ● AMAZON INDIAWORKERSJOIN BLACK FRIDAYSTRIKE Protesters wear paper masks in the likeness of Amazon’s Jeff Bezos as warehouse workers and delivery drivers stage a protest against the USbased company demanding higher wages and better working conditions, in New Delhi on Friday. About 200 warehouse workers and delivery drivers rallied under a ‘Make Amazon Pay’ banner AP EXPRESS NEWS SERVICE New Delhi, November 29 TERMING IT A legal matter involving “private individuals and entities”, ministry of external affairs spokesperson Randhir Jaiswal on Fridaysaidthegovernment had not been informed in advance by the US of the recent indictment of GautamAdani and others fromtheAdaniGroup,nor had it received any It is ideal for the selfemployed whose incomes tend to fluctuate ■ PERSONAL FINANCE, P9 ADANI HAS ENOUGH CASHFLOWS FOR DEBT OBLIGATIONS: CRISIL PAGE 4 THOSE ACCUSED TO CLARIFY MATTER IN 10 DAYS: ADANI CFO PAGE 4 request to serve a summons or arrest warrant. Replyingtoquestionsduring the weekly MEA briefing,Jaiswalsaid 4 4 Aster to be No.3 hospital chain with Qualitydeal ● Merger under share swap transaction to close by Q3FY26 NARAYANAN V Chennai, November 29 9.7 6.5 7.4 7.5 4.4 6 5.4 Consumption exp Govt Private Gross fixed capital formation Source: MoSPI ling Q2 figure a“one-off”event. TheEconomicSurvey2023-24 hadforecast6.5-7%GDPgrowth forFY25.TheGDPexpandedby 8.2% in FY24. GDP rose by 5.4% in July-Septembery-oy, the lowest in seven quarters,as weaker expansions in manufacturing and consumption hurt the economy. Detailed report on Page 2 AakashAoA: SCstopsplan, asksNCLAT totakecall FE BUREAU New Delhi, November 29 thecentralgovernmentsawthecase as a legal matter involving private firms and individuals, and the US Department of Justice. “Obviously,thereareestablished procedures and legal avenues in such cases,which we believe would be followed… We have not been informed in advance on the issue,” the MEA spokesperson said. Jaiswal added that there had beenno“conversations”withtheUS on the matter. Continued on Page 13 Continued on Page 13 ASTER DM HEALTHCAREonFriday announced its merger with Blackstone-andTPG-backedQualityCare India (QCIL), bolstering its position as one of the top three hospital chains — along with Apollo Hospitals and Manipal Hospitals — in terms of network size and revenue. The merger is expected to close by the third quarter of FY26. In a regulatory filing, Aster DM Healthcaresaiditwillacquire19millionequitysharesofQCILfromBlackstone and Centella Mauritius at `445.8pershare.Asterwillissue18.6 million of its own shares to QCIL’s shareholders at `456.33pershare. Currently, Aster DM Healthcare, founded by Dr Azad Moopen, operates 19 hospitals with 4,994 beds. QCIL, which owns Hyderabad-based Care Hospitals,Keralabased KIMS and Evercare brands, has over 5,150 operating beds.The new entity will be rebranded Aster DM Quality Care with a combined network of 38 hospitals and over MEGA MERGER 19 mn QCIL shares to be bought from Blackstone and Centella Mauritius at `445.8 per share 18.6 mn shares to be issued by Aster to QCIL shareholders at `456.33 per share ■ New entitiy, Aster DM Quality Care, to have 10,150 beds ■ It will have a network of 38 hospitals across 27 cities ■ QCIL owns Hyderabad-based Care Hospitals, Kerala-based KIMS and Evercare brands 10,150 beds across 27 cities. “The merger is expected to result in significant strengths, including scale, diversification, enhanced financial metrics, synergies, increased growth potential and backing from marquee PE investors,” Aster DM Healthcare said. Continued on Page 13 Volkswagen gets $1.4-bn tax notice ADITI SHAH, ADITYA KALRA & NIKUNJ OHRI New Delhi, November 29 THE GOVERNMENT HAS issued a notice to Volkswagen India unit for allegedly evading $1.4 billion in taxes by “wilfully” paying lesser import tax on components for its Audi, VW and Skoda cars, a document shows, in what is one of the biggest such demands. ASeptember30noticesaysVolkswagen used to import “almost the entire” car in unassembled condition, which attracts a 30-35% import tax under rules for completely knocked down units,but evaded leviesby“mis-declaringandmis-classifying” those imports as “individualparts”,payingjusta5-15%duty. SuchimportsweremadebySkoda AutoVolkswagenIndiaforitsmodels, including the Skoda Superb and Kodiaq, luxury cars like Audi A4 and Q5, and VW’s Tiguan SUV. Different shipment consignments were used toevadedetectionand“wilfullyevade payment”of higher taxes,the inves- THE FINE PRINT ■ Potential ■ Paid lesser $2.8 bn ■ Imported cars penalties could be as high as import tax on parts for Audi, VW, Skoda cars 'almost entirely' unassembled, which attracts a 30-35% import tax in India ■ Misclassified imports as 'individual parts', paying just a 5-15% duty tigation found. “This operating structure is nothing but a ploy to clear the goods without the payment of the applicable duty,” said the 95-page notice, which is not public but was seen by Reuters. Continued on Page 3 Nifty extends its Rupee at record losing run to Nov low of84.60vs $ NIFTY 50 CONTINUED its downward journeyforthe second month in a row — the first time since February 2023, reports Vivek Kumar M. In November, while the Nifty fell 0.3% to close at 24,131.10 points, the Sensex rose 0.5% at 79,802.79 points.This is on top of a 6% fall in October. ■ PAGE 6 THE RUPEE PLUNGED 13 paise to settle at a fresh all-time lowof 84.60 against US dollar on Friday,dragged down byunabated foreign fund outflows even asweak domestic macroeconomicdatajoltedtheoverallsentiment,reportsPTI.Rupee’sprevious lowest closing level of 84.50 was recorded on November21. Tweaked policy rules expected to be finalised by March 2025 AutomakerswithexistingplantsmaygetEVincentivestoo ADITI SHAH New Delhi, November 29 Limited premium plan easier on the pocket »INSIDE« 0.9 11.6 THE SUPREME COURT on Friday directed Aakash Educational Services not to give effect to the extraordinary general meeting (EGM) resolution to amend its Articles of Association (AoA). A bench of chief justice of India SanjivKhannaandjusticePVSanjay Kumar directed the institute, which is a subsidiary of Think and Learn, which runs edtech platform Byju’s, to approach the National Company Law Appellate Tribunal (NCLAT) in seven days. The Supreme Court’s stayon the implementation of the resolution will remain in place till the first date of hearing of the appeal before the NCLAT. Aakash and ManipalHealth Systems informed the apex court that they will not be pursuing the writ petition in the Karnataka High Court against the National Company LawTribunal’s (NCLT’s) order. The NCLAT has been directed to decide the case uninfluenced bythe Karnataka High Court’s decision. On November25,the high court had stayed the NCLT’s order that restrainedAakash Educational Services from implementing a resolution to amend its AoA. Adani charges legal matterinvolving private firms,individuals,US: Govt Mahindra BE 6e — Ahead of the Curvv ■ MOTOBAHN, P9 Q2 2.0 3.5 -3.2 It’s a one-off event,says CEA Forex reserves drop to five-month low of $656.58 billion Pronounced as ‘Be Sexy’, is more than a sexy design and appears far better than the best EV in India 6.7 1.7 Q1 14 2.6 -0.2 3.7 0.4 0.6 Q3 Q4 Agriculture a bright spot 12.6 THE FINANCE MINISTRY has released a consultation paper proposing to raise the foreign direct investment limit in the insurance sector from 74% to 100%, ahead of the likely introduction of a Bill to this effect in the ongoing Parliament session, reports fe Bureau. ■ PAGE 3 FE S P E C I A L S Financials muted 3.2 Comments sought on raising FDI limit to 100% in insurance FOREIGN EXCHANGE RESERVES dropped for an eighth consecutive week and stood at a five-month low of $656.58 billion as of November 22, data from the RBI showed on Friday, reports Agencies. The reserves fell by $1.3 billion in the reporting week. They have dropped by $47 billion cumulatively in the last seven weeks. ■ PAGE 3 All at constant prices (% chg, y-o-y) (% chg, y-o-y) FY24 8 GVA 10 (% chg, y-o-y) Weak trends in consumption, investment FY25 FIVE MAJOR AGRICULTURE producers led by the US have accused India of providing support to its rice and wheat producers far in excess to what the WTO rules allow, an allegation which has been rejected by Indian representatives in Geneva as baseless, reports Mukesh Jagota. ■ PAGE 2 5.4%Q2 GDPSHOCKER FY24 India counters US-led charge of 'high farm support' at WTO ECONOMIC GROWTH FALLSTOASEVEN-QUARTER LOW FY25 IN THE NEWS THE GOVERNMENT PLANS to expand electric vehicle (EV) incentives to automakers building models at existing factories in the country, instead of limiting the benefits to automakers willing to build new plants, a person with direct knowledge of the matter said. The EVpolicy,which is still being finalised,was originallydesigned to encourageTesla to enterthe market and manufacture locallybut the US automaker backed off from those plans earlier this year. Other foreign automakers have shown interest in making EVs in India at existing and new factories, according to minutes of a meeting with the ministry of heavy industries that was seen by Reuters. It is hoped that changes will encourage EVinvestmentfromthelikesofToyota and Hyundai,the source said. Under the policy announced in March, an automaker investing at least $500 million to manufacture EVs in India with 50% of components sourced locallyis entitled to a huge cut on import taxes — a drop to15%fromashighas100%forup to 8,000 electric cars peryear. The government will now also considerEVinvestments at existing factories that currentlybuild petrol and hybrid cars,said the sourcewho ON THE ROAD ■ At least $500-mn investment to manufacture EVs in India 15% on 50% import tax of components sourced locally is entitled to a huge import tax cut ■ EV policy was originally designed to encourage Tesla to enter India components against 100% for up to 8,000 electric cars per year ■ But the US automaker backed off from plan to manufacture locally earlier this year ■ Other foreign automakers have shown interest in making EVs at existing and new factories ■New policy will encourage EV investment from the likes of Toyota and Hyundai was not authorised to speak to mediaanddeclinedtobeidentified. The electric models must, however, be built on a separate produc- tion line and meet the local sourcing criteria,the source said. Inthecaseofanewfactory,investmentinmachineryandtoolstobuild EVswillbecountedinfulltowardsthe $500-million requirement even if the equipment is also used to manufacture othertypes of cars,he said. New Delhi To ensure automakers are treated fairly, the government will set a minimum EV revenue target for a plant or a production line whichmustbemettoqualifyforthe scheme, he said. He added that the policywould be finalised by March. According to the minutes of the meeting,Toyotaofficialsaskedifthe EVpolicywouldallowforinvestingin a separate assembly line within a plantthatproducesmultiplepowertrains.Italsosoughttounderstandif the manufacturing and installation of charging stations would be counted as part of the $500 million investment requirement. Continued on Page 3