Zomato to Share Customer Phone Numbers with Restaurants: Major Policy Shift Could End Long-Running Dispute

In a significant development for India’s food delivery sector, Zomato is finalizing an agreement with the National Restaurant Association of India (NRAI) to share customer phone numbers with partnered restaurants. The move could finally resolve a dispute that has lasted nearly a decade.

NRAI president Sagar Daryani confirmed that similar discussions have also begun with Zomato’s main competitor, Swiggy. If successful, both platforms may soon allow restaurants direct access to customer contact details for targeted marketing.

What’s Changing for Customers?

Zomato has already started rolling out a new consent feature in its app. Users are now being asked whether they agree to share their phone numbers with restaurants “to directly receive marketing and promotional updates.”

This opt-in approach aims to balance restaurant demands with user privacy concerns. Past attempts to share data reportedly led to negative customer feedback, forcing platforms to mask details such as names and phone numbers.

Why Restaurants Have Been Pushing for Data Access

Restaurant owners argue that understanding customer behavior is essential for efficient operations and marketing. Key insights they seek include:

• Average order value (ticket size)
• Preferred cuisines and menu items
• Peak ordering times and location-based trends
• Frequency of orders from repeat customers

According to NRAI, access to this information helps restaurants optimize menus, run targeted promotions, and reduce reliance on costly platform-driven discounts.

“We don’t want to spam customers. We simply want to make smarter marketing decisions and build direct relationships,” an NRAI representative explained.

Competition Heats Up with New Entrants

The timing of these discussions coincides with the entry of Rapido’s new food delivery service, Ownly. Unlike established players, Ownly has already signed an agreement with NRAI to share customer data from day one – giving it a potential edge with restaurant partners.

Regulatory Backdrop and Ongoing Concerns

The issue of “data masking” has been a central point in complaints filed by NRAI with the Competition Commission of India (CCI). The association has accused major platforms of anti-competitive practices, including high commissions (now often around 30-35%) and withholding valuable consumer insights.

While the CCI case remains pending, the voluntary shift by Zomato signals a possible de-escalation of tensions.

India’s Booming Food Delivery Market

Recent data highlights the massive scale of the sector:

• India’s total food services market: $70 billion in FY25
• Online food delivery segment: $10 billion (14% of total)
• Zomato’s active restaurant partners (Q2 FY26): 327,000
• Swiggy’s active restaurant partners: 264,000

Analysts believe future growth will depend less on acquiring new users and more on increasing order frequency, introducing innovative categories, and improving affordability.

What This Means for Investors and Consumers

For Zomato and Swiggy shareholders, smoother relations with restaurant partners could reduce regulatory risks and commission-related conflicts. Better restaurant satisfaction may also drive higher listings and order volumes over time.

For consumers, the change introduces a choice: opt-in for potentially more personalized offers directly from favorite restaurants, or opt-out and keep interactions limited to the app.

The coming weeks will reveal whether Swiggy follows Zomato’s lead and how enthusiastically customers respond to the new consent prompts.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Infosys Buyback 2025: 8 Key Checks for Investors Before Tendering Shares

Infosys Share Buyback 2025: 8 Smart Checks Before You Tender Your Shares

Search description: Infosys Rs 18,000 crore share buyback: key eligibility rules, tax impact and 8 smart checks before retail investors tender shares.

Labels: Infosys share buyback, stock market news, capital gains tax

Infosys Rs 18,000 Crore Buyback: Why Investors Are Watching Closely

Infosys has launched its biggest-ever share repurchase programme — a Rs 18,000 crore buyback through the tender-offer route at a fixed price of Rs 1,800 per share. The stock opened around Rs 1,555 on the buyback start day, making the offer price look attractive for many investors.

However, the headline premium tells only part of the story. The tax rules around buybacks have changed significantly, and your decision to tender should factor in not just the offer price but also your holding period, tax slab, and overall income level.

Here are eight practical checks to go through before you hit the tender button.

8 Smart Checks Before Tendering Infosys Shares

1. Confirm Your Eligibility First

Only shareholders who held Infosys shares on the record date of November 14, 2025 can participate in this buyback. If you bought the shares after this date, you are not eligible to tender.

Also remember, Infosys is buying back only about 2.4% of its equity. This limited size means that not all the shares you offer are likely to be accepted. Acceptance ratios may be modest, especially for large holdings.

2. Decode the New Buyback Tax Rules

Under the revised tax framework, buyback proceeds are treated as “income from other sources” and taxed at your applicable slab rate, not at capital gains rates.

• The entire buyback amount you receive is taxable, not just the profit portion.
• If you fall in the 30% tax bracket, the tax outgo can substantially erode the premium you earn over your purchase price.

Previously, the company paid a 20% buyback tax (plus surcharge and cess), and the buyback income in the hands of shareholders was tax-exempt. That favourable treatment is no longer available, making personal tax planning crucial.

3. Compare With Selling in the Open Market

Before tendering, compare the post-tax outcome of the buyback with simply selling your shares on the exchange.

• Long-term capital gains (holding > 12 months) on an exchange sale are taxed at an effective rate of about 12.5% (including surcharge and cess).
• Short-term capital gains are taxed at 20%, irrespective of your income slab.

In some cases, especially for investors in higher tax brackets, the open-market sale route may be more tax-efficient than treating the buyback proceeds as slab-rated income.

4. Use Section 87A Rebate Wisely Under Old vs New Regime

Tendering in the buyback can be tax-efficient if your total taxable income remains within the Section 87A rebate limits.

• New tax regime: If your total taxable income, including the amount received from the buyback, does not exceed Rs 12 lakh, you may be able to claim a rebate against the tax payable on this income.
• Old tax regime: If your total income (including income taxed at special rates) does not exceed Rs 5 lakh, you can still claim the rebate even when booking capital gains from a market sale.

Tax efficiency improves if you also have capital gains that can be set off against any capital loss arising from your cost of acquisition when you tender into the buyback.

5. Remember: Your Cost Is Not Deductible From Buyback Income

One of the most important changes is that your purchase price is not deductible when computing tax on buyback income. Instead, your cost becomes a capital loss.

• Short-term capital loss (STCL) from the cost of acquisition can be set off against both short-term and long-term capital gains in the current year.
• Long-term capital loss (LTCL) can be adjusted only against long-term capital gains.
• Unadjusted losses can be carried forward for 8 years, provided you file your income tax return on time.

This makes it critical to map your existing and expected capital gains before deciding how many shares to tender.

6. Plan for TDS and Cash Flow Impact

Infosys will deduct TDS at 10% on buyback proceeds exceeding Rs 1,000. For investors in lower tax slabs, this could eventually lead to a refund, but only after filing the tax return.

In the short term, this TDS can affect your liquidity. If you rely on the full buyback amount for other investments or expenses, factor in the cash flow impact of the tax deduction.

7. Promoters Are Not Participating — What It Means

Infosys’s promoters have chosen not to tender their shares in this buyback. This slightly improves the acceptance prospects for public shareholders because the promoters’ portion of the entitlement effectively gets redistributed.

However, this does not guarantee full acceptance, particularly for larger investors. A concern for many long-term shareholders is that the amended tax rules do not provide grandfathering for shares purchased before the change in law, meaning older holdings are also subject to the new treatment.

8. Check If You Qualify as a “Small Shareholder”

If the market value of your Infosys holding was Rs 2 lakh or less on the record date, you fall into the “small shareholder” category.

This category enjoys a higher reserved quota in the buyback, which can translate into a better acceptance ratio compared with larger shareholders. For retail investors, this improves the chances of tendering a greater proportion of their shares at the buyback price.

Bottom Line for Retail Investors

For retail investors, the decision to tender shares in the Infosys buyback should balance the attractive Rs 1,800 offer price against the new tax treatment, the impact of Section 87A rebates, and your overall capital gains and loss situation.

If your total income is within the rebate threshold under the new regime, tendering can be particularly tax-efficient. On the other hand, investors in higher tax slabs may find that selling on the exchange — and paying capital gains tax — sometimes offers a better post-tax outcome.

Evaluate your eligibility, tax position, cash flow needs, and small shareholder status before making the final call.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Microsoft and Nvidia to Invest Up to $15 Billion in AI Developer Anthropic

In a landmark deal that reshapes the artificial intelligence landscape, Microsoft Corporation and Nvidia Corporation announced on Tuesday their commitment to invest up to a combined $15 billion in Anthropic PBC, the AI safety-focused company behind the Claude chatbot. This strategic partnership brings Anthropic closer to two of the technology industry's most influential players, both of which are also major supporters of rival OpenAI.

Massive Cloud Computing Agreement

As part of the broader arrangement, Anthropic has committed to purchasing $30 billion worth of computing capacity from Microsoft's Azure cloud service. This substantial commitment underscores the enormous computational requirements of developing and deploying advanced AI models at scale.

The deal represents one of the largest cloud computing agreements in the AI sector and will provide Anthropic with the infrastructure necessary to support its ambitious growth plans and ongoing model development.

Market Reaction and Circular Investment Concerns

Microsoft shares declined 2.6% on Tuesday following the announcement, reflecting investor concerns about the structure of such partnerships. The arrangement is part of a growing trend where cloud computing and chip providers invest in AI developers, who then spend money on services from those same companies—creating what analysts call "circular AI deals."

These interconnected financial relationships have raised questions among investors about whether they represent sustainable business models or potential indicators of an AI investment bubble. The pattern of mutual investment and service agreements has become increasingly common across the sector.

Strategic Significance for Microsoft

The partnership brings Anthropic into closer alignment with Microsoft, which has already invested more than $13 billion in OpenAI and played a crucial role in the success of ChatGPT. However, recent months have seen Microsoft and OpenAI increasingly competing in certain market segments, making the Anthropic investment strategically significant.

Microsoft CEO Satya Nadella explained the collaborative nature of the partnership in a video statement released Tuesday: "We are increasingly going to be customers of each other — we will use Anthropic models, they will use our infrastructure, and we will go to market together. Of course, this all builds on the partnership we have with OpenAI, which remains a critical partner for Microsoft."

About Anthropic

Founded in 2021 by former OpenAI employees, Anthropic has positioned itself as a safety-conscious AI company that prioritizes responsible development and deployment of artificial intelligence. While smaller than OpenAI, the company has achieved significant market penetration through its Claude chatbot and underlying AI technology.

Strong Enterprise Adoption

Anthropic's technology has gained substantial traction with enterprise customers, particularly in highly regulated sectors such as:

• Financial services and banking
• Healthcare and medical institutions
• Legal and compliance-focused organizations
• Technology development platforms

The company recently reported having 300,000 business customers and raised $13 billion at a $183 billion valuation in September, demonstrating strong investor confidence in its approach and market position.

Ambitious Infrastructure Expansion

Like its rival OpenAI, Anthropic is rapidly expanding its physical infrastructure to support AI development and broader technology adoption. The company has announced plans to invest $50 billion in building custom data centers dedicated to AI workloads across multiple US locations, including facilities in Texas and New York.

This massive infrastructure buildout reflects the immense computational demands of training and operating state-of-the-art AI models, as well as the company's confidence in long-term growth prospects.

Multi-Cloud Strategy with Google Partnership

In addition to the Microsoft agreement, Anthropic announced a separate major deal with Alphabet Inc.'s Google in October. Under that arrangement, Google will supply up to 1 million specialized AI chips to Anthropic, representing a deal worth tens of billions of dollars and dramatically increasing the startup's computing capacity.

This multi-cloud strategy provides Anthropic with flexibility and reduces dependence on any single infrastructure provider, while also creating multiple pathways to market for its AI models.

Integration with Microsoft Azure

The partnership will bring significant changes to Microsoft's cloud offerings. Anthropic's models, including the popular Claude Sonnet, will be made available on Microsoft's Foundry service for deploying AI models on the cloud platform.

This represents a notable expansion of Microsoft's model portfolio, which previously offered AI models from:

• OpenAI (ChatGPT and GPT models)
• Meta Platforms Inc. (Llama models)
• DeepSeek (Chinese AI models)
• Elon Musk's xAI (Grok models)

Claude's addition fills a significant gap in Microsoft's cloud AI offerings and provides enterprise customers with additional options for their AI implementation strategies.

Workplace AI Integration

Microsoft announced in September that it would begin using Anthropic's models to enhance its workplace AI assistant capabilities. This integration demonstrates Microsoft's commitment to leveraging multiple AI technologies to deliver comprehensive solutions to business customers.

Amazon's Competing Investment

The Microsoft-Nvidia partnership comes as Anthropic maintains strong relationships with other technology giants. Amazon has invested $8 billion in Anthropic and constructed massive data center complexes and custom chip infrastructure to support the AI startup's operations.

This multi-partner approach allows Anthropic to access diverse technologies, infrastructure capabilities, and go-to-market channels while maintaining some independence from any single investor.

Implications for AI Industry Competition

The deal highlights the increasingly complex web of partnerships, investments, and competitive dynamics in the artificial intelligence sector. Major technology companies are simultaneously:

• Competing in AI model development
• Collaborating on infrastructure and services
• Investing in multiple AI developers
• Creating interdependent business relationships

This arrangement between Microsoft, Nvidia, and Anthropic demonstrates how competitive and collaborative forces are reshaping the industry landscape. As AI technology continues to evolve rapidly, these strategic partnerships will likely play a crucial role in determining which companies succeed in the emerging AI economy.

Future Outlook

With substantial backing from multiple technology leaders and ambitious infrastructure expansion plans, Anthropic appears well-positioned to compete in the increasingly crowded AI development space. The company's emphasis on safety and reliability, combined with strong enterprise adoption and now enhanced infrastructure capabilities, provides a differentiated market position.

However, the sustainability of circular investment patterns and the ultimate profitability of massive AI infrastructure investments remain open questions that will be closely watched by investors and industry observers in the months and years ahead.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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GQG Partners Increases Stakes in 5 Adani Companies with Rs 5,094 Crore Investment

Rajiv Jain's GQG Partners Increases Stakes in 5 Adani Group Companies with Rs 5,094 Crore Investment

In a significant vote of confidence for the Adani Group, Rajiv Jain-backed GQG Partners executed large block deals on Tuesday to increase its holdings across five major Adani companies. The investment firm deployed a substantial Rs 5,094 crore through multiple transactions, purchasing shares from Reliance Trust across key entities in the conglomerate's portfolio.

Strategic Investment Across Diverse Sectors

GQG Partners expanded its exposure to the Adani Group by acquiring additional stakes in companies spanning critical infrastructure sectors including energy generation, renewable power, port operations, and power transmission. The transactions were executed through GQG Partners International Equity CIT, with all shares being sold by Reliance Trust Institutional Retirement Trust Series Eleven.

Detailed Breakdown of Transactions

1. Adani Enterprises: Rs 1,315.20 Crore

GQG Partners purchased approximately 53.42 lakh shares in Adani Enterprises through three separate block deals at a price of Rs 2,462 per share, totaling Rs 1,315.20 crore. This represents the largest single investment among the five transactions.

The flagship company's shares closed at Rs 2,439 on the NSE on Tuesday, declining by Rs 23 or 0.93% compared to Monday's closing price. As of September 30, 2025, GQG held a 1.75% stake in Adani Enterprises, representing approximately 2.01 crore shares.

2. Adani Ports and Special Economic Zone: Rs 1,103.14 Crore

The investment firm acquired nearly 73.17 lakh shares in Adani Ports through two tranches at Rs 1,507.60 per share, with a total deal value of Rs 1,103.14 crore.

Adani Ports shares ended trading at Rs 1,491.20, down Rs 16.40 or 1.09% from the previous day's close. GQG's existing stake as of September 30, 2025, stood at 2.42%, equivalent to over 5.21 crore shares in the ports and logistics major.

3. Adani Green Energy: Rs 842.53 Crore

In the renewable energy sector, GQG Partners bought over 77.39 lakh shares of Adani Green Energy across three tranches at Rs 1,088.60 per share. The aggregate investment amounted to Rs 842.53 crore.

The renewable energy company's shares closed at Rs 1,077.20 on the NSE, declining by Rs 11.40 or 1.05%. Prior to this transaction, GQG held a 2.46% stake in Adani Green Energy, representing over 4.04 crore shares as of September 30, 2025.

4. Adani Energy Solutions: Rs 551.08 Crore

GQG acquired over 53.94 lakh shares in Adani Energy Solutions through two tranches at a price of Rs 1,021.55 per share, totaling Rs 551.08 crore.

As of September 30, 2025, GQG held a 1.86% stake in the power transmission and distribution company, representing over 2.23 crore shares.

5. Adani Power: Rs 1,281.57 Crore

The investment firm purchased over 83.61 lakh shares in Adani Power across three tranches at Rs 153.28 per share, representing a deal size of Rs 1,281.57 crore. This marked the second-largest transaction among the five companies.

GQG's existing holding in Adani Power as of September 30, 2025, stood at 1.54%, equivalent to over 29.23 crore shares.

About GQG Partners

GQG Partners is a specialized investment boutique that manages global and emerging market equity portfolios for institutional investors, financial advisors, and individual clients worldwide. The firm, led by veteran investor Rajiv Jain, has established a notable presence in Indian markets through strategic investments in various large-cap companies.

GQG's Commitment to Adani Group

GQG Partners has emerged as a significant institutional investor in the Adani Group, consistently demonstrating confidence in the conglomerate's business model and growth prospects. The firm's latest investment further solidifies its long-term commitment to the group's diverse portfolio spanning infrastructure, energy, and logistics sectors.

Market Context and Implications

The substantial investment comes at a time when institutional participation remains crucial for market confidence in large conglomerates. GQG's decision to deploy over Rs 5,000 crore across multiple Adani entities signals:

• Strong institutional confidence in the group's operational performance
• Long-term growth potential in India's infrastructure and energy sectors
• Strategic positioning in businesses with monopolistic or near-monopolistic characteristics
• Diversification across renewable energy, traditional power, ports, and transmission infrastructure

Transaction Structure

All transactions were executed as block deals, which are large-volume trades negotiated privately between parties and executed on the exchange in a single transaction. The seller across all five deals was Reliance Trust Institutional Retirement Trust Series Eleven, indicating a potential portfolio rebalancing or allocation adjustment by the trust.

The block deal mechanism allowed for efficient execution of large volumes without significantly impacting market prices, though all five stocks experienced modest declines on the day of the transaction.

Sector-wise Investment Distribution

GQG's investment strategy demonstrates diversification across the Adani Group's key business verticals:

• Infrastructure and Conglomerate: Adani Enterprises (Rs 1,315.20 crore)
• Ports and Logistics: Adani Ports (Rs 1,103.14 crore)
• Thermal Power: Adani Power (Rs 1,281.57 crore)
• Renewable Energy: Adani Green Energy (Rs 842.53 crore)
• Power Transmission: Adani Energy Solutions (Rs 551.08 crore)

This allocation reflects a balanced approach across traditional and renewable energy assets, while maintaining exposure to critical infrastructure through ports and the flagship enterprise.

Future Outlook

GQG Partners' continued investment in the Adani Group underscores the firm's positive long-term outlook on India's infrastructure development story. As these companies execute their expansion plans and capitalize on India's growing energy and logistics needs, institutional investors like GQG are positioning themselves to benefit from the anticipated growth trajectory.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Government Approves 17 Electronics Manufacturing Projects Worth Rs 7,172 Crore

In a major boost to India's electronics manufacturing sector, the government on Monday sanctioned 17 new projects under the Electronics Component Manufacturing Scheme (ECMS), representing a total investment of Rs 7,172 crore. This strategic initiative aims to strengthen domestic participation in the electronics supply chain while positioning India as a global manufacturing hub.

Strategic Push for Domestic Manufacturing

Electronics and IT Minister Ashwini Vaishnaw emphasized the government's commitment to increasing domestic companies' involvement in the electronics supply chain, particularly given the evolving geopolitical landscape. "The way geopolitics and geoeconomics are emerging, the challenges will be bigger, and in those challenging periods, your ability to have good supply chain control will define your resilience and ability to compete in difficult times," Vaishnaw stated during the announcement.

Job Creation and Economic Impact

The approved projects are expected to generate 11,800 direct jobs, providing significant employment opportunities across various skill levels in the electronics manufacturing sector. Beyond job creation, these initiatives will drive production valued at Rs 65,111 crore, substantially contributing to India's manufacturing output.

Companies Receiving Approval

The latest round of approvals features a diverse mix of established multinational corporations and domestic players. The list includes:

• Global Players: Jabil, AT&S, TE Connectivity
• Indian Manufacturers: Aequs, ASUX Safety, Ehoome IoT, Hi-Q Electronics, UnoMinda, Zetwerk
• Specialized Suppliers: Meena Electrotech, MicroPack, Rakon, Sahasra, Secure Meters, Sierra Circuits, Syrma Mobility

Component Categories Under Production

The approved projects will focus on manufacturing critical electronic components that serve as building blocks for various devices and systems. Key components to be produced include:

• Camera modules for smartphones and imaging devices
• Multi-layer Printed Circuit Boards (PCBs)
• Enclosures for electronic devices
• Electrical connectors
• Oscillators for timing applications
• Optical transceivers for data communication

Target Sectors and Applications

The manufactured components will serve multiple high-growth sectors crucial to India's technological advancement:

• Consumer Electronics: Smartphones, IT hardware, wearables
• Communication Infrastructure: Telecom equipment and networking devices
• Mobility Solutions: Electric Vehicles (EVs) and automotive electronics
• Industrial Applications: Industrial electronics and automation
• Strategic Sectors: Defence electronics and equipment
• Healthcare: Medical electronics and diagnostic devices
• Clean Energy: Renewable energy systems and components

Path to $500 Billion Manufacturing Vision

Minister Vaishnaw highlighted that ECMS is enabling the next phase of value chain integration in India's electronics sector, moving beyond device assembly to encompass components and sub-assemblies. This comprehensive approach is designed to help achieve the ambitious target of $500 billion in electronics manufacturing value by 2030-31.

Quality and Design Focus

To ensure India's competitiveness in the global market, the minister outlined three critical focus areas:

• Design Capabilities: Building robust design teams to foster innovation and intellectual property creation
• Quality Standards: Implementing six sigma quality standards across all products to meet international benchmarks
• Supply Chain Localization: Partnering with domestic ('Swadeshi') suppliers to strengthen the indigenous supply chain

Quality systems will form a key component of the evaluation process for future approvals, ensuring that Indian-made electronics components meet global standards.

Previous Approvals Build Momentum

This second tranche follows the first round of approvals announced on October 27, where seven applications representing an investment of Rs 5,532 crore were sanctioned. Those projects were projected to create 5,000 jobs.

Collectively, the two tranches represent a total investment of Rs 12,704 crore and potential employment for 16,800 individuals, demonstrating the scheme's significant economic impact.

Geopolitical Context and Supply Chain Resilience

The ECMS initiative gains particular relevance in the context of shifting global supply chains and increased emphasis on self-reliance. Recent geopolitical tensions and supply chain disruptions during the pandemic have highlighted the importance of domestic manufacturing capabilities in critical technology sectors.

By strengthening component manufacturing within India, the government aims to:

• Reduce dependence on imports for critical electronic components
• Enhance supply chain security and resilience
• Position India as an alternative manufacturing destination for global companies
• Create a complete ecosystem from components to finished products

Long-term Industry Transformation

The Electronics Component Manufacturing Scheme represents a strategic shift from India's traditional role as primarily an assembly hub to becoming a comprehensive manufacturing destination with strong backward integration. This transformation is essential for capturing greater value addition within the country and reducing the trade deficit in electronics.

As these approved projects commence operations over the coming months and years, they are expected to catalyze further investments in the sector, attract ancillary industries, and strengthen India's position in the global electronics value chain. The success of ECMS will be crucial in determining whether India can achieve its ambitious goal of becoming a $500 billion electronics manufacturing powerhouse by the end of the decade.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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India's Trade Deficit Surges to $41.68 Billion as October Exports Fall 11.8%

India's Trade Deficit Soars to $41.68 Billion as October Exports Plunge 11.8%

India's trade balance deteriorated significantly in October as exports witnessed a sharp contraction while imports surged, according to official government data released on Monday. The widening gap between outbound and inbound shipments has raised concerns about the country's external sector performance.

Export Performance Shows Sharp Decline

India's merchandise exports fell 11.8 percent to $34.38 billion in October, marking a notable setback for the country's export sector. This contraction comes at a time when global demand conditions remain challenging and economic uncertainties persist across major markets.

The decline in exports affected multiple sectors, with the United States — one of India's largest trading partners — showing reduced demand. Exports to the US dropped to $6.3 billion in October compared to $6.9 billion in the same month last year, Commerce Secretary Rajesh Agrawal confirmed during a media briefing.

Import Surge Driven by Precious Metals

While exports struggled, imports experienced robust growth, jumping 16.63 percent to $76.06 billion during the reporting month. This substantial increase was primarily attributed to heightened demand for gold and silver, which saw unprecedented inflows.

Gold Imports Triple Year-Over-Year

The most striking component of the import surge was gold, which witnessed a dramatic increase. Gold imports skyrocketed to $14.72 billion in October, representing a nearly three-fold jump from $4.92 billion recorded in the same month last year.

This surge in precious metal imports can be attributed to several factors:

• Seasonal demand ahead of the festive and wedding season in India
• Investment-driven purchases amid global economic uncertainty
• Rising gold prices in international markets
• Consumer preference for safe-haven assets

Trade Deficit Reaches Critical Level

The combination of declining exports and surging imports resulted in India's trade deficit ballooning to $41.68 billion in October. This represents one of the highest monthly deficits in recent times and highlights the growing imbalance in the country's external trade position.

A widening trade deficit puts pressure on the current account balance and can impact foreign exchange reserves and currency stability. Economists suggest that sustained deficits at these levels could necessitate policy interventions to boost exports and moderate non-essential imports.

Cumulative Trade Performance for April-October

Looking at the broader picture for the current fiscal year, the trade data reveals mixed trends:

• Exports: Registered marginal growth of 0.63 percent to $254.25 billion during April-October period
• Imports: Rose significantly by 6.37 percent to $451.08 billion in the same timeframe

The slower export growth compared to robust import expansion indicates that the trade deficit challenge is not limited to a single month but reflects a sustained trend over the fiscal year.

Factors Behind Export Weakness

Several factors have contributed to the subdued export performance:

• Weakening global demand amid economic slowdown in key markets
• Increased competition from other exporting nations
• Supply chain disruptions affecting certain sectors
• Currency fluctuations impacting price competitiveness
• Geopolitical tensions affecting trade flows

Economic Implications and Outlook

The substantial trade deficit poses several challenges for India's economic managers. The Commerce Ministry and related government agencies are likely monitoring the situation closely and may consider measures to stimulate export growth while managing import demand, particularly for non-essential items.

Potential policy responses could include:

• Enhanced incentives for export-oriented industries
• Trade facilitation measures to reduce costs
• Bilateral and multilateral trade agreements to open new markets
• Quality improvement initiatives to enhance competitiveness
• Monitoring of precious metal imports through appropriate mechanisms

Looking Ahead

As India navigates the remainder of the fiscal year, attention will focus on whether export performance can recover and whether the elevated import levels — particularly for gold — will moderate. The government's ability to manage the trade balance will be crucial for maintaining macroeconomic stability and supporting the rupee.

Market observers will be watching closely for upcoming monthly trade data to assess whether October's figures represent a temporary aberration or signal a more concerning trend that requires immediate policy attention.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Tata Motors and Hyundai Clash Over CAFÉ Norms as Weight vs Price Debate Intensifies

India's automobile sector is witnessing a major internal dispute as manufacturers remain deeply divided over the framework for upcoming fuel efficiency regulations. The controversy centers on whether small car eligibility under the next phase of Corporate Average Fuel Efficiency (CAFÉ) norms should be based on vehicle weight or pricing considerations.

Market Split: Two Camps Emerge

The automotive industry has fractured into two distinct groups with opposing viewpoints. On one side, Maruti Suzuki, Toyota, Honda, and Renault — collectively commanding 49 percent of the passenger vehicle market as of September 2025 — are supporting a Bureau of Energy Efficiency (BEE) proposal that recommends weight-based relaxations for smaller vehicles.

However, major competitors including Tata Motors, Hyundai, and Mahindra & Mahindra have strongly objected to this approach. These manufacturers contend that using weight as the sole criterion could create market distortions and unfairly disadvantage companies operating in related vehicle segments.

The Core Disagreement

According to a senior executive from a leading automaker, consensus discussions within the Society of Indian Automobile Manufacturers (SIAM) have reached an impasse. "Few manufacturers have not agreed to a consensus on small cars. Among the various proposals discussed within SIAM, one relates to the price of the car for qualifying for the norms," the executive revealed.

Industry officials advocating for price-based criteria argue that affordability must be factored into the equation. They point out that the price differential between an average two-wheeler and entry-level four-wheeler stands at 3.5 to 4 times. Furthermore, they emphasize that lightweight construction doesn't automatically equate to affordability — several vehicles weighing under 909 kg carry price tags approaching ₹10 lakh.

Tata Motors Takes Strong Stand

Tata Motors has emerged as the most vocal critic of weight-based categorization. Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, issued a clear rejection following the company's September quarter financial results.

"There has been an effort to define an arbitrary category of small cars based on weight. We will not support this," Chandra stated emphatically. "We have absolutely no concerns in meeting the CAFÉ norms even with a high share of small cars, and we see no justification for special concessions."

Safety Concerns at the Forefront

As India's second-largest producer of small cars with over 85 percent of sales coming from this segment, Tata Motors has raised critical safety concerns regarding the proposed weight relaxation framework. Chandra highlighted that no vehicle below 909 kg currently meets the Bharat New Car Assessment Programme (BNCAP) safety standards.

The company argues that encouraging lighter vehicle designs could reverse the significant safety improvements achieved by the Indian automotive industry over the past decade. Chandra emphasized that diluting emission standards based purely on weight compromises vehicle safety and diverts attention from the industry's broader goal of transitioning toward sustainable mobility solutions.

Impact on Major Manufacturers

The debate carries significant implications for market leader Maruti Suzuki, which maintains an extensive portfolio of sub-909 kg models. Popular vehicles in this category include:

• Wagon R
• Celerio
• Alto
• Ignis (sold under the Nexa brand)

These lightweight models form a substantial portion of Maruti's product lineup, making the weight-based relaxation particularly advantageous for the company.

Current Regulatory Framework

Under existing GST regulations, vehicles are classified based on length and engine displacement. Sub-4-meter petrol vehicles with engines under 1,200cc and diesel variants under 1,500cc are taxed at 18 percent, while larger or more powerful vehicles attract a 40 percent tax rate.

Stringent CAFÉ 3 Norms Ahead

The upcoming CAFÉ 3 regulations, scheduled to take effect on April 1, 2027, represent a substantial tightening of emission standards. The revised CO₂ emission target has been set at 88.4 gm/km, significantly stricter than:

• The previously anticipated target of 91.7 gm/km
• The current CAFÉ 2 benchmark of 113 gm/km

Manufacturers failing to achieve their fleet-average emission targets under the new framework will face substantial financial penalties, raising the stakes considerably for all industry participants.

Industry at Crossroads

With the implementation date approaching and no consensus in sight, the automobile sector faces a critical decision point. The outcome will not only shape compliance strategies for individual manufacturers but could also influence vehicle design philosophies, pricing structures, and the pace of India's transition toward cleaner mobility.

As discussions continue within industry forums, stakeholders on both sides remain firm in their positions, suggesting that resolution may require intervention from regulatory authorities or compromise solutions that address concerns about both market fairness and environmental objectives.

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