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Business, Economy

Tesla’s India Entry Boosted by Government’s Updated EV Policy to Attract Global Automakers

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As the world’s most valuable electric vehicle (EV) company, Tesla, gears up for its highly anticipated entry into the Indian market, the Indian government is reportedly considering adjustments to its new EV policy. These modifications are expected to provide more attractive incentives and conditions for global automakers, including Tesla, in order to establish a foothold in India’s growing EV market.

This article explores the likely changes to India’s EV policy, how it could impact the Indian automobile market, and what Tesla’s entry into India means for the future of electric mobility in the country.

India’s Evolving EV Landscape

India, a country that has long struggled with air pollution and over-dependence on fossil fuels, has turned its focus to sustainable transportation. The government, recognizing the urgent need for cleaner alternatives, has made several efforts to accelerate the adoption of electric vehicles. The National Electric Mobility Mission Plan (NEMMP) and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) schemes were among the initial attempts to pave the way for EV adoption.

The EV market in India, while still in its infancy, is witnessing accelerated growth, with manufacturers and consumers slowly transitioning towards electric vehicles. The Indian government has identified electric vehicles as a key component of its strategy to reduce carbon emissions, improve air quality, and make the country less reliant on imported fossil fuels.

With rising global interest in electric vehicles and increasing investment in clean technologies, India has become a promising market for electric car manufacturers. The government’s push for a cleaner, greener future is especially timely as the country plans to make a significant leap into the electric mobility sector in the coming decade.

Tesla’s Entry Into India

Tesla, led by Elon Musk, has been eyeing the Indian market for years. Although Tesla has long been regarded as a leader in electric mobility, its formal entry into India has been delayed multiple times. However, recent developments indicate that the automaker is finally preparing to launch its electric cars in India.

Rather than setting up a manufacturing plant immediately, Tesla will likely begin by importing vehicles. The Berlin Gigafactory in Germany is expected to supply Model Y, the electric SUV, to the Indian market in right-hand drive configuration. This strategy will allow Tesla to tap into the Indian market and build brand awareness while gradually evaluating the viability of local manufacturing operations.

While Tesla’s expansion into India has been long-awaited, the company has already made significant strides in the country. Tesla opened an office in Pune, and it is actively scouting locations in key cities like Mumbai and Delhi to set up its first showrooms. The company is also hiring for several roles in these regions, including business analysts, service technicians, and customer engagement specialists.

Modifications to India’s EV Policy

In light of Tesla’s entry and other automakers’ interest, the Indian government is looking to revise its existing EV policy to ensure that it remains competitive and attractive to global manufacturers. Several sources indicate that the Centre may tweak the existing policy to encourage more investments in electric vehicle manufacturing and to bring in major players like Tesla.

One of the key changes in the revised policy is expected to be a turnover mandate of Rs 2,500 crore for automakers in their second year of operation in India. This is likely to be aimed at ensuring that companies like Tesla, which have a global presence and large-scale operations, meet certain financial and production benchmarks in the early stages.

Additionally, the government may offer further import duty relief, which could make it easier and more affordable for international companies like Tesla to import their vehicles into India before they begin local production.

The updated EV policy is likely to be announced in mid-March, with the application process expected to begin soon after. Approvals for EV manufacturers are anticipated to be finalized by August, allowing for a smooth transition to EV imports in India.

The Original EV Policy and Its Impact

The Indian government’s original EV policy, announced in March of the previous year, made significant strides in making India an attractive destination for electric vehicle manufacturing. The policy involved a reduction in customs duties, lowering them to 15% under certain conditions. It also outlined investment thresholds of Rs 4,150 crore for manufacturers looking to set up production facilities in India.

The policy laid out a clear roadmap for electric vehicle manufacturers, with specific targets for domestic value addition (DVA). The government set a goal of reaching 25% DVA within the first three years of operation, with a longer-term target of 50% within five years. These measures were designed to encourage local production and reduce the dependence on imports for critical EV components.

Tesla and other international manufacturers have viewed this policy favorably, as it provides the foundation for long-term EV manufacturing and investment in India. However, the revisions being considered now aim to fine-tune the policy to make it even more attractive to large companies, especially foreign automakers with extensive operations abroad.

Impact of Tesla’s Entry on the Indian EV Market

Tesla’s entry into India could have a profound effect on the Indian automotive landscape, particularly in the electric vehicle sector. The company’s presence is expected to accelerate the adoption of EVs, especially in the luxury car market, where Tesla’s vehicles, like the Model S and Model Y, will compete with other premium automakers.

Tesla’s reputation for high-performance electric vehicles could also lead to increased consumer interest in electric cars, particularly among the urban middle class and affluent consumers who are willing to invest in premium products.

Industry experts predict that the Indian EV market could achieve over 40% penetration by 2030, with a projected revenue of $100 billion. Tesla’s entry is seen as a key catalyst that could help the country reach these ambitious goals more quickly.

Additionally, Tesla’s expansion could spark further innovation and investment in EV infrastructure, including charging stations, battery technology, and smart grid solutions, benefiting not just Tesla but other players in the Indian EV ecosystem.

Challenges and Opportunities for Tesla in India

While Tesla’s entry into India is a milestone for the global electric vehicle industry, there are several challenges that the company must overcome. One of the most pressing issues is price sensitivity in India. The majority of Indian consumers are highly price-conscious, and Tesla’s premium pricing may limit its reach to a niche segment of the population.

In addition, India’s charging infrastructure is still in the early stages of development, and consumers may be hesitant to switch to electric vehicles without a reliable and accessible network of charging stations. Tesla will need to partner with local stakeholders and invest in the EV ecosystem to address these concerns.

Despite these challenges, Tesla’s brand appeal, cutting-edge technology, and focus on sustainability could position it as a leader in India’s emerging electric vehicle market.

The Future of Electric Vehicles in India

As the Indian government prepares to unveil an updated EV policy, Tesla’s entry into the market is set to play a pivotal role in shaping the future of electric mobility in India. With policy changes designed to attract global manufacturers, including Tesla, the country is poised for a sustainable transportation revolution.

The collaboration between government and industry will be crucial to achieving India’s EV goals, including environmental sustainability, economic growth, and technological innovation. While challenges remain, the long-term prospects for electric vehicles in India are promising, and Tesla’s entry is just the beginning of what could be a transformational shift for India’s automotive landscape.

As more companies follow Tesla’s lead and as the EV ecosystem evolves, India is on track to become a significant player in the global electric vehicle market, driving the shift towards clean energy and a greener future for all.

Economy

India’s GDP Growth Expected to Reach 6.6% in Q3 FY25: Steady Growth Amid Challenges

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India, one of the world’s fastest-growing major economies, continues to exhibit a strong economic trajectory, even as global factors and domestic challenges cast a shadow over its growth. According to the latest report from Bank of Baroda, India’s Gross Domestic Product (GDP) is expected to grow by 6.6% in the third quarter (Q3) of the 2024-25 fiscal year (FY25). This growth rate is lower than the 8.6% recorded in the same period of the previous fiscal year but still reflects the resilience and stability of the Indian economy. The decrease in growth rate is primarily due to high comparison base effects from the previous year, but the factors supporting the country’s economy remain strong.

Key Drivers of India’s Economic Growth in Q3 FY25

India’s economy has witnessed remarkable resilience despite the global slowdown, with growth driven by a combination of government spending, a robust services sector, and a healthy agriculture output. The government’s proactive policy measures, especially in terms of capital expenditure, continue to bolster key sectors, making sure that the economic engine keeps running even as growth moderates.

Capital Expenditure Drives Construction and Employment

One of the key highlights from the report is the surge in capital expenditure by the government, a strategic move aimed at driving infrastructure development and job creation. In Q3FY25, the capital expenditure has risen to 47.7%, up from 24.4% in the corresponding quarter of FY24. The sharp increase in government investment has resulted in an uptick in construction activities, especially in critical sectors such as highways, ports, and railways.

These infrastructure projects have played a crucial role in generating employment opportunities and improving incomes, both in urban and rural areas. This increase in infrastructure spending aligns with India’s long-term plans to boost its connectivity, logistics, and overall economic competitiveness.

Services Sector Continues to Shine

India’s services sector has always been a major contributor to GDP, and it is projected to grow at 6.9% in Q3FY25, only slightly lower than the 7.1% growth recorded in the same period of the previous fiscal year. Among the services driving this growth are trade and hospitality, which are benefiting from the surge in demand, particularly in the “experience economy.” With the pandemic-induced restrictions lifted, people are returning to travel, entertainment, and leisure activities, boosting this segment.

The financial services sector is also showing strong growth, with an expected increase of 6.5% in Q3FY25. The recovery of financial institutions and their increased lending to both businesses and individuals will likely contribute to the sector’s sustained growth. The financial sector’s continued expansion suggests that India’s economic base remains strong, despite the challenges it faces.

Agriculture Sector Shows Resilience

A standout performer in Q3FY25 is the agriculture sector, which is expected to grow by 4.5% in the third quarter, a sharp rebound from just 0.4% in Q3FY24. This growth is being supported by better foodgrain production and a strong rabi (winter) crop season. Additionally, the increase in rural demand is being reflected in the rising sales of tractors and two-wheelers, key indicators of rural prosperity.

The government’s agricultural policies, as well as favorable monsoon conditions, have played a role in enhancing agricultural output. As the country continues to focus on improving food security and enhancing rural incomes, the agriculture sector remains a vital part of India’s economic story.

Moderation in Industrial and Manufacturing Growth

While the overall economic growth remains steady, the industrial and manufacturing sectors are showing signs of moderation. This slowdown is primarily attributed to the high base effect from the previous year, which saw a significant surge in production and business activity. The industrial growth in Q3FY25 is expected to slow to 5.9%, compared to 10.2% in the previous year. Similarly, manufacturing growth is expected to decelerate to 6% from 11.5% in Q3FY24.

The slower pace of growth in these sectors can also be attributed to challenges within specific industries. Sectors such as crude oil, steel, and automobiles have faced lower corporate earnings, which have affected their overall performance. Mining growth is also expected to slow to 3%, down from 7.5% in the previous year.

Despite these setbacks, the moderation in industrial and manufacturing growth can be seen as a natural phase after a period of rapid recovery following the pandemic. With the global economy showing signs of fragility and some industries in India grappling with supply chain disruptions, these challenges are to be expected.

Risks to India’s Growth Outlook: Global Uncertainties and Geopolitical Pressures

Despite India’s economic resilience, there are several external risks that could weigh on the country’s growth outlook. The global economic environment remains uncertain, with risks arising from geopolitical tensions, trade disputes, and economic fragmentation. These global factors could potentially affect India’s growth trajectory, particularly in the trade and currency sectors.

India’s currency and trade balance are likely to feel the pressure of external global factors, and any unforeseen international disruptions could have a ripple effect on the Indian economy. For instance, shifts in global commodity prices, particularly crude oil, can affect inflation and the country’s import costs. Additionally, global supply chain disruptions have the potential to exacerbate inflationary pressures, hampering growth in key sectors.

The Road Ahead for India’s Economic Growth

India’s economic fundamentals remain strong, with a diversified economy and a growing middle class that is driving domestic consumption. As the third quarter of FY25 progresses, the Indian economy will continue to rely on government expenditure, agriculture growth, and a vibrant services sector to maintain its positive growth trajectory.

The positive outlook for rural demand, combined with government-led infrastructure development, will likely offset some of the challenges faced by manufacturing and industrial sectors. Additionally, India’s strong fiscal measures and focus on financial stability provide a buffer against external shocks.

In conclusion, India’s projected GDP growth of 6.6% in Q3 FY25 reflects a steady but moderate economic performance. The country’s growth is supported by strong domestic demand, particularly in agriculture and services, along with increased government spending on infrastructure. However, the moderation in industrial and manufacturing growth points to the challenges India faces as it navigates a post-pandemic recovery phase.

While global uncertainties, including geopolitical risks and trade disputes, may pose threats to India’s growth outlook, the country’s economic fundamentals remain robust. With the right mix of domestic policy support, infrastructure investment, and favorable global conditions, India is well-positioned to maintain its growth momentum. However, it is important to monitor both domestic and external factors closely to ensure that the economy can continue to thrive in the coming years.

Economy

Morgan Stanley Predicts Strong Upsurge for Indian Stocks Amid Improving Global Factors

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India, one of the world’s fastest-growing economies, has seen its stock market endure some turbulent months. Yet, according to global brokerage firm Morgan Stanley, the future looks promising for Indian stocks. The firm has outlined that the revival of Indian equities is not only a matter of domestic growth but is also closely tied to external factors in the global economy. This marks an exciting opportunity for investors who are looking for growth in emerging markets, but it is essential to keep a close eye on global cues that could either fuel or dampen this potential resurgence.

In this article, we will delve into the key elements of Morgan Stanley’s analysis, exploring why the brokerage believes Indian stocks could experience a revival soon, the role of global economic factors, and the important steps India is taking to secure its financial growth.

India’s Stock Market: The Current Scenario

Over the past year, Indian stocks have experienced a marked downturn. The benchmark indices, NSE Nifty 50 and BSE Sensex, have fallen by significant margins — 13.3% and 11.7%, respectively, from their previous highs. This has left investors questioning the long-term prospects of Indian equities. However, Morgan Stanley sees this dip as an opportunity for those who are patient enough to ride the market’s potential recovery.

The brokerage notes that the Indian stock market is now priced lower than it has been in years, since the bottoming out during the Covid-19 pandemic. While predicting the exact market bottom is challenging, Morgan Stanley suggests that buying Indian equities at this stage could prove rewarding, especially as the country moves into a phase of recovery. The dynamics that drove the recent decline, such as the aftermath of the pandemic and global inflationary pressures, are being replaced by signs of stabilization.

Global Conditions Play a Crucial Role in India’s Economic Future

While the outlook for Indian stocks looks positive, Morgan Stanley acknowledges that the trajectory of global markets is going to play a pivotal role in determining whether the country can maintain its growth momentum. A key part of the firm’s outlook for India is based on improving global conditions, including the potential for lower commodity prices, especially crude oil, which has weakened in recent months. Geopolitical conditions are also showing signs of improvement, with conflicts that have plagued global markets potentially beginning to fade.

At the same time, the U.S. dollar, which has had a major impact on emerging markets, including India, has seen some correction. This brings relief to the Indian economy, which benefits from a weaker dollar and lower oil prices. Additionally, the declining real effective exchange rate of the rupee adds to India’s competitiveness in the global market, which could help boost exports and attract foreign investment.

India’s Domestic Policies: A Key Support to Growth

India’s domestic policy landscape also presents favorable conditions for stock market revival. The government’s Union Budget has played a crucial role in fostering economic growth by increasing capital expenditure while reducing subsidy expenditure. These measures aim to stimulate the economy by enhancing infrastructure development, which will ultimately benefit various sectors, including construction, manufacturing, and services.

The Reserve Bank of India’s decision to cut interest rates and implement liquidity-boosting measures is another important step toward stimulating growth in India. With lower borrowing costs, businesses and consumers alike are expected to have increased access to capital, which will support both consumption and investment.

Furthermore, Morgan Stanley highlights the importance of the ongoing series of tax reforms that are being implemented in India. These reforms are designed to simplify the tax system, improve the ease of doing business, and make the Indian economy more attractive to foreign direct investment (FDI). FDI is an important source of capital and technology for India and can help accelerate the country’s development.

Earnings Growth Outlook: India’s Strong Fundamentals

Another significant reason for optimism surrounding Indian equities is the projected earnings growth. Morgan Stanley forecasts mid- to high-teen earnings growth annually over the next three to five years for India. This growth is expected to be supported by strong macroeconomic stability, improving terms of trade, and domestic consumption.

Moreover, India’s young and growing population, combined with an increasingly well-educated workforce, presents a solid foundation for long-term economic growth. The country’s expanding middle class and increasing urbanization are expected to drive consumption, which is a key engine for the country’s economic expansion.

The report also emphasizes the importance of reliable domestic risk capital. A robust and dynamic financial system is essential for supporting new businesses, innovation, and entrepreneurship, all of which are critical for maintaining economic growth. India’s well-established financial markets and institutional investors play a major role in providing this capital.

Managing Risks and Global Uncertainties

While Morgan Stanley is optimistic about India’s growth prospects, it also warns that global risks could derail this potential. The brokerage notes that one area of concern is the reciprocal tariff hikes between the U.S. and other nations, particularly in emerging markets. While the direct impact of these tariff hikes on India is likely to be manageable, the indirect effects—such as increased uncertainty and reduced business confidence—could weigh on the broader economy.

Despite these risks, Morgan Stanley maintains that domestic policy measures will continue to support India’s growth trajectory. The government has demonstrated a strong commitment to fostering an environment conducive to business, and additional measures will likely be taken if any downside risks emerge in the future.

A Promising Outlook with Cautionary Considerations

In conclusion, the outlook for Indian stocks appears to be improving, with key economic factors such as supportive domestic policies, lower commodity prices, and geopolitical stability driving the country toward a potential revival. The country’s strong macroeconomic fundamentals and anticipated earnings growth provide an optimistic outlook for the coming months and years. However, global economic conditions, particularly uncertainties arising from tariff policies and geopolitical tensions, remain a critical factor that could impact India’s stock market performance.

As Morgan Stanley suggests, India could experience a revival in its stock market performance if global conditions remain favorable. Investors who are able to assess these factors carefully and take a long-term view may find opportunities for growth in India’s vibrant and evolving market. Nevertheless, the key to success will be staying attuned to both domestic developments and global factors that can significantly influence the country’s trajectory in the years to come.

Economy, Nation, International

Qatar’s Emir Receives Grand Ceremonial Welcome at Rashtrapati Bhavan during State Visit to India

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Qatar’s Emir, Sheikh Tamim Bin Hamad Al Thani, has arrived in India for a two-day state visit, marking the second time he has visited the country since March 2015. The visit highlights the growing bilateral ties between the two nations, and the Emir was given a grand ceremonial welcome at Rashtrapati Bhavan, the official residence of the President of India, on Tuesday. The Emir’s arrival and subsequent interactions with Indian leaders are expected to play a significant role in further strengthening the long-standing friendship and cooperation between India and Qatar.

Welcoming a Distinguished Guest

The official welcoming ceremony at Rashtrapati Bhavan was a symbolic gesture of the close relationship between India and Qatar, countries that share strong historical and cultural bonds. Sheikh Tamim’s state visit is part of a larger effort to enhance diplomatic, trade, and investment relations between the two nations. Indian President Droupadi Murmu welcomed the Emir and later introduced her ministers and key officials to the visiting delegation, setting the stage for a series of meetings aimed at deepening bilateral ties.

The state visit comes after a period of growing collaboration between the two nations, with areas like trade, energy, culture, and technology taking center stage in recent years. Qatar has been one of the most significant partners for India in the Gulf region, contributing to an increasingly dynamic partnership across multiple sectors.

Bilateral Talks to Strengthen Relations

After the formal ceremonial events, the Emir will hold an important bilateral meeting with Indian Prime Minister Narendra Modi at Hyderabad House. The meeting is expected to cover a broad spectrum of issues, with a focus on how India and Qatar can enhance their long-standing cooperation. Both leaders are anticipated to discuss the future of trade, investment opportunities, energy cooperation, and the growing people-to-people exchanges between the two nations.

This face-to-face interaction between the two leaders is particularly significant as both India and Qatar aim to further strengthen their political and economic ties. Qatar has been a key player in regional diplomacy, and India’s strategic partnership with the country is expected to grow even more important in the coming years, especially as the two nations navigate global geopolitical dynamics and explore new opportunities for growth.

Exchange of MoUs: A Step Toward Deeper Collaboration

A major milestone of the visit will be the exchange of Memoranda of Understanding (MoUs) scheduled for 1:00 p.m. at Hyderabad House. These agreements are expected to cover various fields, including energy, trade, technology, and cultural exchange. The MoUs will not only formalize the growing collaboration between the two nations but also pave the way for practical, long-term partnerships that benefit both countries.

Qatar’s commitment to investing in India’s energy sector, particularly in natural gas, is one of the focal points of these agreements. Similarly, India’s technology sector and Qatar’s investments in that space will likely be enhanced, with both sides exploring new avenues for digital collaboration.

The MoUs will also lay the groundwork for deeper cultural exchanges, highlighting the importance of people-to-people connections. Tourism, education, and cultural diplomacy are set to become key pillars of the bilateral relationship, strengthening the foundation of shared understanding and respect between the two countries.

A Special Banquet and Strengthening Diplomatic Ties

In the evening, the Emir will meet with President Droupadi Murmu for a formal meeting at Rashtrapati Bhavan. Following the meeting, the President will host a banquet in honor of Sheikh Tamim and his delegation. This special dinner is more than a gesture of hospitality; it represents a celebration of the strong friendship and mutual respect that defines India-Qatar relations.

The evening’s gathering will provide both leaders with an opportunity to reflect on the long history of bilateral cooperation and discuss future steps for enhancing the relationship. These events offer a platform for both India and Qatar to reaffirm their commitment to shared goals and future aspirations.

Strengthening Historical Ties

India and Qatar have shared historical ties that date back several centuries, driven by their deep cultural, social, and economic connections. In recent years, both countries have worked diligently to enhance their relationship, driven by a shared vision of prosperity and development. India is one of the largest recipients of foreign workers from Qatar, and the Indian diaspora plays a significant role in Qatar’s economy.

Moreover, the energy sector remains one of the key drivers of the India-Qatar partnership. Qatar is a significant supplier of liquefied natural gas (LNG) to India, contributing to the country’s energy security. In addition, the two nations have explored joint ventures in sectors such as construction, financial services, and technology, with both parties keen on expanding these collaborations further.

Trade between India and Qatar has flourished, with Qatari investments in various sectors in India continuing to increase. The bilateral economic relationship has helped both nations achieve sustained growth, with Qatar’s wealth benefiting India’s infrastructure, technology, and manufacturing sectors.

A Warm Welcome from Prime Minister Modi

In a special display of friendship and respect, Prime Minister Narendra Modi personally welcomed Sheikh Tamim Bin Hamad Al Thani at the Air Force Station in Palam on Monday evening. This warm reception set the tone for the Emir’s state visit, highlighting the strong personal bond between the two leaders. The embrace between Prime Minister Modi and Sheikh Tamim symbolized the special relationship between India and Qatar, marked by mutual trust, respect, and cooperation.

Prime Minister Modi’s personal gesture underscored India’s appreciation for Qatar’s leadership and the strategic importance of the relationship. The warm welcome also indicated India’s willingness to further deepen its collaborative efforts with Qatar in areas such as energy, security, trade, and cultural exchange.

Conclusion: Strengthening India-Qatar Ties for a Promising Future

As the Emir of Qatar concludes his state visit, it is clear that the India-Qatar relationship is poised for continued growth and collaboration. The visit has not only reinforced the strategic partnership between the two countries but also set the stage for future cooperation in key sectors like energy, trade, technology, and cultural exchange. With shared values and a commitment to mutual development, the relationship between India and Qatar remains strong and holds significant promise for the years ahead. The exchange of MoUs, bilateral meetings, and diplomatic gestures during this visit will undoubtedly pave the way for even stronger ties between these two important nations in the future.

This visit serves as a reminder of the significance of international diplomacy and the potential of bilateral relationships to shape the global landscape, ensuring that both countries can continue to thrive together in an increasingly interconnected world.

Business, Economy

Indian Stock Market Opens Higher, Nifty Above 23,120

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Indian Markets Show Strength Amid Global Uncertainty

The Indian stock market opened on a positive note on Thursday, bolstered by buying in the PSU bank and financial services sectors. The broader market movement followed a mixed set of global cues, reflecting cautious optimism among investors.

Strong Opening for Sensex and Nifty

As of 9:45 AM, the BSE Sensex was trading 244.25 points higher, or 0.32%, at 76,415.33, while the NSE Nifty 50 climbed 79.25 points, or 0.34%, to reach 23,124.50. A total of 1,528 stocks on the National Stock Exchange (NSE) were in green, indicating positive sentiment, while 781 stocks were in red, suggesting some caution among traders.

The Nifty Bank index recorded an 85.65-point increase, translating to 0.17% growth, settling at 49,565.10. The Nifty Midcap 100 index inched up 35.55 points, or 0.07%, standing at 50,791.95. However, small-cap stocks witnessed a slight dip, as the Nifty Smallcap 100 index fell 37.75 points, or 0.24%, to 15,995.25.

Top Gainers and Losers in Early Trade

Within the Sensex pack, some of the biggest gainers included Zomato, Kotak Mahindra Bank, Sun Pharma, Adani Ports, Bajaj Finserv, M&M, Bajaj Finance, ITC, Infosys, Tata Steel, SBI, and ICICI Bank. These companies saw strong buying interest, supporting the index’s positive trajectory.

On the other hand, Titan, Tech Mahindra, Hindustan Unilever, IndusInd Bank, and NTPC emerged as the top losers, witnessing profit-booking amid the broader market uptrend.

Global Market Trends Impacting Indian Equities

Global market movements provided a mixed backdrop for the Indian stock market:

  • U.S. Markets: The Dow Jones declined 0.50%, closing at 44,368.56. Meanwhile, the S&P 500 slipped 0.27% to 6,051.97, and the Nasdaq ended flat, up only 0.03% at 19,649.95.
  • Asian Markets: Jakarta and China witnessed negative momentum, while Seoul, Bangkok, Japan, and Hong Kong traded in green, indicating a divergence in investor sentiment across the region.

Institutional Activity: FIIs Sell, DIIs Buy

Foreign Institutional Investors (FIIs) continued their selling spree on February 12, offloading equities worth Rs 4,969.30 crore. However, Domestic Institutional Investors (DIIs) acted as a stabilizing force, buying Rs 5,929.24 crore worth of stocks, thereby balancing the overall market sentiment.

Technical Analysis and Market Outlook

The previous session on Wednesday witnessed high volatility, with the Nifty rebounding strongly from an intraday low of 22,798. Despite initial weakness, the market managed to recover, ensuring a subdued but positive close.

Key Support and Resistance Levels

  • Support Zone: 22,900-22,800
  • Intermediate Resistance: 23,250-23,350
  • Major Resistance: 23,400-23,500

Market expert Sameet Chavan, Head of Research (Technical and Derivative) at Angel One, noted that a further correction below 22,800 could disrupt the short-term technical structure. On the upside, if the Nifty surpasses 23,250-23,350, it could pave the way for further gains toward 23,400-23,500.

Similarly, Aakash Shah of Choice Broking advised traders to remain cautious and to wait for confirmation of price action before making fresh trading decisions.

Conclusion: Market Poised for Further Gains, but Caution Needed

The Indian stock market continues to showcase resilience, supported by institutional buying and strength in key sectors. However, global cues, foreign investor activity, and technical resistance levels will play a crucial role in determining market direction in the coming days. Traders and investors should exercise caution while navigating the current landscape, as volatility remains a persistent factor.

World, Economy

IMF Expresses Strong Support for Pakistan PM Shehbaz Sharif’s Economic Reforms

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Pakistan’s Economic Reforms Gain Global Recognition

The International Monetary Fund (IMF) has expressed firm support for Pakistan’s Prime Minister Shehbaz Sharif and his decisive economic policies aimed at stabilizing the country’s financial situation. On Wednesday, February 12, 2025, the IMF Managing Director, Kristalina Georgieva, publicly praised Pakistan’s ongoing economic reforms and efforts to sustain fiscal discipline, which are integral to the $7 billion Extended Fund Facility (EFF) loan program agreed upon last year.

The backing from the IMF comes at a crucial time as Pakistan continues to implement tough economic measures to overcome its balance of payments crisis. These measures have been essential for securing global financial credibility and setting the stage for sustainable economic growth.

Shehbaz Sharif’s Meeting with IMF Chief in Dubai

Prime Minister Shehbaz Sharif, during his visit to the United Arab Emirates (UAE) for the World Governments Summit (WGS) in Dubai, held a strategic meeting with Kristalina Georgieva. The discussion revolved around Pakistan’s economic trajectory, ongoing structural reforms, and financial stability, as outlined in the IMF-supported program.

The PM Office released a statement highlighting the primary focus areas discussed during the meeting, including:

  • Macroeconomic stability achieved through comprehensive reform efforts.
  • Implementation of structural changes to drive sustainable development.
  • Long-term fiscal discipline to ensure economic resilience.

Following the meeting, Georgieva took to social media platform X (formerly Twitter), stating:

“I am encouraged by their strong commitment to Pakistan’s IMF-supported reforms and support their decisive actions to pave the way to higher growth and more jobs for Pakistan’s youthful population.”

This endorsement reinforces the IMF’s confidence in Pakistan’s ability to navigate economic challenges and build a robust financial framework for the future.

Pakistan’s Progress Under the IMF Loan Program

In 2024, Pakistan secured a $7 billion IMF bailout package, which required the government to undertake strict economic reforms. The program focused on reducing fiscal deficits, boosting revenue generation, and improving governance. As a result, Pakistan has witnessed significant improvements, including:

  • A steady increase in foreign reserves
  • Declining inflation rates
  • A stronger regulatory framework for economic activities

Finance Minister Muhammad Aurangzeb emphasized these achievements, stating that Pakistan is on track to fulfill its IMF commitments. He also mentioned that the government is prioritizing taxation reforms, energy sector efficiency, and state-owned enterprise (SOE) restructuring to further stabilize the economy.

IMF’s Scrutiny on Pakistan’s Financial Governance

An IMF team is currently in Pakistan conducting an in-depth evaluation of the country’s judicial and regulatory systems. The assessment aims to address vulnerabilities related to governance and corruption and ensure that reform measures are being effectively implemented.

According to government sources, the IMF’s review will focus on:

  • Transparency in financial transactions
  • Efficient tax collection mechanisms
  • Public sector expenditure management
  • Energy sector sustainability

This evaluation will play a crucial role in determining the next phase of Pakistan’s economic recovery, as the country seeks to maintain investor confidence and unlock further financial support.

Pakistan’s Economic Outlook: Challenges and Opportunities

Challenges

While Pakistan has made significant progress, several economic challenges persist, including:

  1. High External Debt – Pakistan still faces a large external debt burden, which requires careful management to avoid financial instability.
  2. Inflationary Pressures – While inflation is declining, essential commodity prices remain a concern for the general public.
  3. Structural Weaknesses – The government continues to work on restructuring state-owned enterprises (SOEs) and reducing fiscal deficits.

Opportunities

Despite these hurdles, Pakistan’s economic reforms offer new opportunities:

  • Foreign Direct Investment (FDI) Growth – Improved economic policies are expected to attract foreign investors, especially in technology, energy, and infrastructure sectors.
  • Job Creation – With IMF-backed reforms, Pakistan aims to generate employment opportunities, particularly for the youth.
  • Trade Expansion – Strengthened financial policies will facilitate better trade agreements and enhance exports.

Pakistan’s ongoing economic transformation under the IMF’s guidance is a positive step toward long-term financial stability. The government’s commitment to structural reforms, fiscal discipline, and investment-friendly policies is crucial for achieving sustainable growth. However, continued transparency, governance improvements, and policy consistency will be essential to fully realize Pakistan’s economic potential.

With IMF backing and global support, Pakistan is on a path toward economic resilience, job creation, and enhanced investor confidence. The coming months will be crucial in determining the success of these efforts, and all eyes will be on Islamabad’s ability to sustain and expand these hard-earned gains.

Business, Economy

Shriram Finance Bets Big on Green Energy—Targets ₹5,000 Crore Portfolio!

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Shriram Finance, one of India’s leading non-banking financial companies (NBFCs), is set to embark on an ambitious expansion of its green finance portfolio, aiming for a 20-fold increase over the next three years. This strategic move comes as the company seeks to diversify its loan book and leverage the growing demand for sustainable financing solutions.

Shriram Finance’s Green Ambitions

In a recent interview, Executive Vice Chairman Umesh Revankar revealed the company’s plans to add solar panels and other renewable energy sectors to its financing portfolio. This expansion is expected to significantly boost the company’s green finance book, which currently stands at approximately Rs 250-300 crore. The ultimate goal is to escalate this figure to Rs 5,000 crore (about $576 million) in the coming years.

This substantial increase will be driven by small-ticket loans primarily focusing on two-wheeler and three-wheeler electric vehicles (EVs). With the rapid evolution of the electric mobility sector in India, Shriram Finance sees enormous potential in financing electric vehicles, battery technologies, and other sustainable projects. Green finance is crucial for India’s transition to a low-carbon economy, but its adoption has been relatively slow. Some of the key barriers include limited awareness, high transaction costs, and restricted access to affordable green technologies. However, government initiatives such as tax incentives and subsidies for renewable energy projects are making sustainable investments more attractive for financial institutions. With rising fuel prices and stringent emission regulations, the demand for electric vehicles (EVs) and green energy solutions is growing exponentially. Shriram Finance aims to capitalize on this trend by offering affordable loans to individuals and businesses investing in clean energy and sustainable transportation.

Shriram Finance’s Broader Growth Strategy

Apart from its green finance ambitions, Shriram Finance has set an aggressive target to double its overall loan book and assets under management (AUM) by 2030. As of December 2023, the company’s total loans stood at Rs 2.51 trillion, while its AUM was Rs 2.54 trillion.

To achieve this rapid growth, the company is focusing on key lending segments, including medium and small enterprises (MSMEs), vehicle loans, and tractor financing. According to Revankar, Shriram Finance aims to increase its AUM by 15% annually over the next two financial years, driven by strong demand for commercial and passenger vehicle loans.

Key Highlights of the Growth Plan:

  • Targeting 20% annual growth in small business lending
  • Increasing financing for electric vehicles (EVs) and battery technologies
  • Expanding loan offerings for solar energy and green infrastructure
  • Tapping into MSME lending opportunities

Shriram Finance has been actively expanding its MSME lending segment, recognizing the vital role small businesses play in India’s economic growth. Currently, small business loans account for approximately 14% of the company’s AUM. By implementing customized lending solutions, the company aims to better understand small business repayment capabilities and improve collection efficiency. With India’s growing entrepreneurial ecosystem, the demand for flexible and accessible credit solutions is on the rise. Shriram Finance’s focus on small enterprises, transport businesses, and rural entrepreneurs will be a key driver of its sustained financial growth. To support its ambitious expansion, Shriram Finance is considering raising at least $750 million through dollar bonds in the next fiscal year. This move will depend on global market conditions and investor sentiment.

Tapping into international debt markets could provide the company with additional resources to fund its green financing initiatives and overall growth strategy. By diversifying its funding sources, Shriram Finance aims to maintain financial stability while expanding its loan book. Shriram Finance’s aggressive push into green finance marks a significant step towards sustainable economic growth in India. By scaling its green loan portfolio to Rs 5,000 crore, expanding MSME financing, and tapping global markets for funding, the company is positioning itself as a leader in India’s NBFC sector. As the demand for electric vehicles, renewable energy, and small business financing continues to rise, Shriram Finance’s strategic expansion could redefine the financial landscape. With a strong commitment to sustainability and financial inclusion, the company is on track to achieve its ambitious targets over the next decade.

Economy, Finance, International

Trump Orders Halt to Penny Production, Citing Rising Costs and Waste

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In a decisive move to curb governmental waste, President Donald Trump has directed the U.S. Treasury Department to halt the production of new pennies. Citing the escalating costs associated with minting the one-cent coin, Trump emphasized the inefficiency of continuing its production.

The penny, featuring President Abraham Lincoln since 1909, has been a staple of American currency. However, the financial burden of its production has become increasingly untenable. In the 2024 fiscal year, the U.S. Mint reported a loss of $85.3 million from producing nearly 3.2 billion pennies, with each coin costing approximately 3.7 cents to manufacture.

This is not the first time the elimination of the penny has been proposed. Economists and lawmakers have debated the coin’s relevance for years. In 2013, economist Henry Aaron advocated for dropping both pennies and nickels, arguing that “life would be simpler without this monetary detritus.”

The rising costs are primarily due to the prices of metals like zinc and copper, which constitute the penny’s composition. As these commodity prices have increased, so too has the expense of coin production. This financial strain has led to broader discussions about the necessity of low-denomination coins in today’s economy.

Supporters of the penny argue that it helps keep consumer prices lower and serves as a source of income for charities. However, many Americans find the coin to be a nuisance, often discarding it in drawers and piggy banks. If the penny were to be discontinued, one proposed solution is to round all product prices to the nearest five or ten cents, simplifying transactions.

The authority to eliminate the penny does not rest solely with the President. Currency specifications, including the size and metal content of coins, are dictated by Congress. Therefore, while the President can direct the Treasury to cease production, a complete withdrawal of the penny from circulation would require legislative action.

This move aligns with the broader efforts of the Trump administration to reduce unnecessary expenditures. Billionaire entrepreneur Elon Musk, leading the Department of Government Efficiency (DOGE), has been a vocal advocate for eliminating the penny. In a recent post, DOGE highlighted that the penny costs over 3 cents to make, resulting in a taxpayer expense of $179 million in the 2023 fiscal year.

Historically, attempts to eliminate the penny have faced significant opposition. Former lawmakers, including Rep. Jim Kolbe and Sen. John McCain, introduced bills to discontinue the coin, but these efforts were unsuccessful. Public sentiment has been mixed, with some polls indicating a majority in favor of keeping the penny.

Other countries have successfully phased out low-denomination coins. Canada eliminated its penny in 2012, rounding transactions to the nearest five cents. This move was met with minimal public resistance and has been considered a success in reducing costs and simplifying transactions.

The debate over the penny’s future touches on broader themes of tradition versus efficiency. While the coin holds historical significance, its practical utility in a modern economy is questionable. As digital payments become more prevalent, the reliance on physical currency, especially low-denomination coins, continues to decline.

In conclusion, President Trump’s directive to halt the production of new pennies marks a significant step in addressing governmental inefficiency. However, the ultimate fate of the penny will depend on legislative action and public sentiment. As the economy evolves, so too must the instruments of commerce, balancing respect for tradition with the demands of modern efficiency.

Business, Economy, Nation

Over 17,600 Companies Shut Down While 138K Registered in FY25 – Government Data Reveals Trends

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India’s corporate sector has witnessed a dynamic shift in the current financial year, with 17,654 companies closing down while 1,38,027 new firms have been registered as of January 26, 2025, according to data released by the Ministry of Corporate Affairs.

The figures were disclosed in a written response by Minister of State for Corporate Affairs Harsh Malhotra during a session in the Rajya Sabha. The statistics shed light on the evolving business climate in India, with both company closures and fresh registrations reflecting the broader economic environment.

Breakdown of Company Closures

The 17,654 shuttered companies include those that have been:

  • Amalgamated with other firms
  • Converted into Limited Liability Partnerships (LLPs)
  • Liquidated or dissolved
  • Struck off from official records

This trend is part of an ongoing shift in the corporate ecosystem, where businesses either consolidate, transform into LLPs for tax efficiency, or shut down due to financial constraints or regulatory non-compliance.

Comparing the Numbers: Past Financial Years

The latest data indicates that company closures have declined compared to previous years:

  • FY 2023-24: 22,044 companies shut down
  • FY 2022-23: 84,801 companies shut down

The reduction in company closures suggests improved business conditions and regulatory reforms that may have helped stabilize struggling enterprises.

New Business Registrations on the Rise

Despite the closures, entrepreneurial activity remains strong, with 1,38,027 new firms registered between April 2024 and January 26, 2025. This marks a steady increase in business formation and investment confidence.

Comparison of New Registrations Over the Years

  • FY 2023-24: 1,85,318 new businesses registered
  • FY 2022-23: 1,59,302 new businesses registered

Although the FY25 registrations are slightly lower than in FY24, the numbers still indicate strong business growth and confidence in India’s economic potential.

The government has implemented several initiatives to promote ease of doing business, which include:

  • Decriminalization of 63 offences under the Companies Act and LLP Act
  • Simplified compliance processes for corporate filings
  • Digital transformation initiatives, including online business registration
  • Financial incentives for startups and MSMEs

These reforms have played a crucial role in encouraging more entrepreneurs to enter the market while reducing bureaucratic hurdles that previously discouraged company formation.

Why Are Companies Shutting Down?

While thousands of new businesses are being established, several factors contribute to company closures, such as:

  • Economic downturns impacting profitability
  • Regulatory non-compliance leading to company strikes
  • Shifts in market demand, making some businesses obsolete
  • Mergers and acquisitions, leading to business consolidations

For many firms, conversion into LLPs is a strategic decision due to lower compliance costs, better tax benefits, and reduced liability risks.

Outlook for Indian Businesses in 2025

Experts suggest that the Indian business ecosystem will continue evolving with a strong focus on digital transformation, sustainability, and global competitiveness. The government’s pro-business policies and increasing access to funding for startups and MSMEs could further boost business registrations.

Despite global economic uncertainties, India’s resilient entrepreneurial landscape signals a promising future for business expansion and innovation.

World, Economy, Finance

Asian Stocks Surge as Trump Pauses Tariffs on Canada and Mexico

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Markets Rally Amid Tariff Uncertainty

Asian stock markets rallied on Tuesday following an unexpected decision by former U.S. President Donald Trump to pause planned tariffs on Canada and Mexico. The reversal, which came just hours before the new tariffs were set to take effect, injected fresh optimism into global markets that had been rattled by escalating trade tensions.

The Hang Seng Index in Hong Kong soared 3.3%, while Japan’s Nikkei 225 climbed 1.6% and South Korea’s Kospi index rose 1.7%. Meanwhile, Taiwan’s Taiex benchmark gained 0.6%, reflecting the broad-based recovery across Asia’s financial markets.

Trump’s decision was seen as a strategic move following his recent announcement of substantial tariffs on Canada, Mexico, and China, which had caused a sharp downturn in global equities. Despite the relief for North American trading partners, tariffs on China remain on schedule, leaving market analysts uncertain about the long-term stability of trade relations between Washington and Beijing.

Optimism on a Potential U.S.-China Deal

Financial experts believe that Trump’s tariff rollback on Canada and Mexico could signal a possible deal with China in the near future. The U.S. President is expected to engage in talks with Chinese leader Xi Jinping in the coming days, a move that has fueled speculation over a broader resolution to the trade dispute.

Jason Lui, head of Asia-Pacific equities and derivatives strategy at BNP Paribas, highlighted this sentiment: “Markets are pricing in at least some chance of a deal with China, following Trump’s recent moves with Canada and Mexico.”

Investors took this as a positive sign, triggering a surge in Chinese technology stocks. Leading the rally were Trip.com, Tencent, BYD, and JD.com, all of which posted significant gains in Hong Kong’s morning trading session. State-owned chipmaker SMIC witnessed an 8% spike, further reinforcing investor confidence.

Trump’s Social Media Hint Sparks a TikTok Frenzy

Adding fuel to the market rally was Trump’s cryptic message on social media regarding TikTok. The former President posted on Truth Social, stating, “GREAT INTEREST IN TIKTOK! Would be wonderful for China, and all concerned.” This statement sent shockwaves through the Chinese tech industry, with investors interpreting it as a sign of potential relief for ByteDance, TikTok’s parent company. Trump had previously set a deadline for ByteDance to sell its stake in TikTok or face a potential ban in the U.S. His latest remarks have renewed optimism that a compromise could be reached, avoiding a forced divestiture of the popular social media platform.

Wee Khoon Chong, a senior market strategist at BNY Mellon, commented: “There’s a growing sense of optimism in Chinese tech stocks. If DeepSeek can navigate these regulatory challenges, then maybe it’s not as bad as investors initially feared.”

Automakers and Semiconductor Stocks Rebound

The automobile sector, which had been hit hard by tariff threats, saw a swift recovery as well. Japanese and South Korean car manufacturers with North American supply chains that depend on the free flow of goods posted impressive rebounds.

  • Toyota Motor Co. surged 2.9% after plummeting 5.4% on Monday.
  • Kia Motors edged up 2.3%, recovering from a 5.8% loss earlier in the week.

Meanwhile, semiconductor stocks also posted gains, with:

  • Taiwan Semiconductor Manufacturing Co (TSMC) rising 1.6%.
  • Samsung Electronics climbing 4.3%.
  • SK Hynix gaining 0.8%.

These market rebounds reflect growing investor confidence that Trump’s tariff threats may not be as severe as initially feared.

Regional Markets Gain Amid Trade Optimism

Beyond the major Asian economies, Australian and New Zealand stock indices also benefited from the renewed optimism. The ASX 200 in Australia rose 0.4%, while New Zealand’s NZX 50 gained 0.2%. Financial analysts believe that while Trump’s tariff strategy remains unpredictable, recent developments suggest a willingness to negotiate, particularly with allies like Canada and Mexico. However, the U.S.-China trade relationship remains fragile, with the de minimis rule changes still in effect, affecting imports worth under $800.

The pause on U.S. tariffs for Canada and Mexico has provided much-needed relief to Asian stock markets, fueling a broad-based rally across sectors, including technology, automotive, and semiconductor stocks. However, with Trump’s tariffs on China still looming, global investors remain cautious, keeping an eye on potential developments in upcoming U.S.-China trade talks. As financial markets respond to political decisions, the coming days will be crucial in determining the long-term trajectory of U.S.-Asia trade relations. Investors are now eagerly awaiting further clarity on Trump’s next move, especially regarding the TikTok deal and potential tariff negotiations with China.