Business

Now that the government had done enough investments during and post Covid to revive the economy, is now time for the private sector to do the heavy lifting (to keep the momentum), said Atanu Chakraborty, part- time chairman and independent director of HDFC Bank while speaking at the 31 Annual General Meeting of the Bank on Friday (August 9, 2025) in Mumbai.

“Time has come for the private sector to do the heavy lifting by not just waiting for uptick in the demand cycle but rather innovating on product design, implementing cost efficiency, and improving delivery systems for myriad products,” he told shareholders. 

Expressing optimism on the Indian economy despite global headwinds, he said, “India today remains amongst the best performing major global economies. Last fiscal real GDP growth moderated to 6.5% following an average of 8.8% over the previous three financial years. This can be attributed to “base effect”, modest aggregate demand and spillovers of global uncertainties,” he said.

“We also witnessed softening of urban demand. Fixed investments stayed modest. Foreign capital inflows also weakened in the latter half of the year, reflecting global uncertainty,” he added.

The chairman said the domestic growth had found meaningful support in rural demand that was backed by favourable monsoon conditions and a strong harvest.

“Exports grew by 6.3%, led by services, with Global Capability Centres continuing to expand. Construction and services remained robust, expanding above 9 and 7% respectively. Manufacturing, however, showed a slowdown,” he added,

BSES Yamuna Power Ltd. and BSES Rajdhani Power Ltd., the two subsidiaries of Reliance Infrastructure, will recover power dues worth ₹28,483 crore following a Supreme Court ruling.

As on July 31, 2025, the total dues of BSES Yamuna Power Ltd. and BSES Rajdhani Power amounts to ₹28,483 crore, according to Reliance Infrastructure.

The two power distribution companies (discoms), in which Reliance Infrastructure (RInfra) holds 51%, supply electricity to 5.3 million households in Delhi. The remaining 49% stake is with the Delhi government.

In a regulatory filing on Friday (August 8, 2025), Reliance Infrastructure (RInfra) said its subsidiaries will “recover ₹28,483 crore of regulatory assets over a period of 4 years starting retrospectively from April 1, 2024”, following a Supreme Court order that has set guidelines for the recovery of regulatory assets.

The Apex Court on Wednesday (August 6, 2025) directed that the regulatory assets, including carrying costs to the tune of ₹27,200.37 crore, be paid within three years to Delhi’s three private discoms.

Regulatory assets, essentially deferred revenue gaps to be recovered in future tariffs, have risen sharply, reaching ₹12,993.53 crore for BSES Rajdhani Power Ltd., ₹8,419.14 crore for BSES Yamuna Power Ltd. and ₹5,787.70 crore for Tata Power Delhi Distribution Ltd. as on March 31, 2024, totalling ₹27,200.37 crore.

RInfra further said its subsidiaries had filed a writ petition and civil appeals in 2014 before the Supreme Court, raising the issue of “non-cost reflective tariff, unlawful creation of regulatory asset and non-liquidation of regulatory asset”.

The writ petitions along with connected matters were heard at length by the Supreme Court, and after hearing all parties, including the state governments and state electricity regulatory commissions.

As per the order, RInfra said, Electricity Regulatory Commissions (ERCs) must provide the roadmap for liquidation of existing regulatory assets, which will include provisions for dealing with carrying costs.

“ERCs must also undertake a strict and intensive audit of the circumstances in which the Discoms have continued without recovery of Regulatory Assets,” it said.

The government has extended the validity of the ₹10,900-crore PM E-DRIVE Scheme by two years till March 2028 for certain categories of vehicles including electric buses, e-ambulances and e-trucks.

According to a gazette notification on the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, the provisions of the scheme will now be in effect till March 2028 instead of March 2026.

However, the terminal date for registered e-2W (electric two-wheeler), registered e-rickshaws & e-cart and registered e-3W (L5) shall be 31st March 2026, as per the notification.

“This is a fund limited Scheme. Total payout under the Scheme shall be limited to the scheme outlay of ₹10,900 crore,” the notification said.

It further stated that in case the funds for the Scheme or its relevant sub-components are exhausted prior to the terminal date of the Scheme i.e. 31st March 2028, then the Scheme or its relevant sub-components will be closed accordingly and no further claims will be entertained.

Saurabh Agarwal, Partner & Automotive Tax Leader, EY India, said the extension of the PM E-Drive scheme till March 2028 is a timely and focused move by the government to support electric mobility in high-impact areas like electric buses, trucks, and ambulances.

“These vehicles play an important role in public transport and essential services, and increasing their adoption will help improve air quality, reduce emissions and increase adoption of electric vehicles across all cities in India.

Keeping the same budget of Rs 10,900 crore and using a first-come, first-serve model will promote healthy competition and push manufacturers and operators to act quickly,” he added.

The 50% tariff imposed by U.S. President Donald Trump is expected to increase risk to India’s growth and inflation, rating agency Moody’s said on Friday.

“Should India continue to procure Russian oil at the expense of the headline 50% tariff rate on goods it ships to the U.S., which is currently its largest export destination, we project that real GDP growth may slow by around 0.3 percentage points compared with our current forecast of 6.3% growth for fiscal 2025-26,” Moody’s said.

On the other hand, a decision to curtail Russian oil imports to avoid the imposition of the penalty tariff could pose difficulties in procuring alternative sources of crude petroleum in sufficient amounts and in a timely fashion, proving disruptive to economic growth if the overarching supply of oil to the economy is interrupted, it stated. 

“Since India is among the world’s largest oil importers, a shift toward non-Russian oil would tighten supply elsewhere, raise prices and pass through to higher inflation. The consequently larger import bill would also contribute to a wider current account deficit against the backdrop of weaker tariff competitiveness that potentially undermines investment inflows,” it said.

However, since India retains sufficient foreign-reserve currency buffers it could weather external volatility.

“The magnitude of the drag on growth from tariff obstacles will influence the government’s decision to pursue a fiscal policy response, although we anticipate the government will adhere to its focus on gradual fiscal and debt consolidation,” the rating agency said.

While India has been imposed with 50% tariff, other countries in

Asia-Pacific are bearing 15-20% tariff rates and this will provide them competitive advantage.  

India has been able to purchase Russian oil capped at ($60 a barrel) at below global prices, which has helped insulate India’s inflation from the pass-through of global commodity price movements, while preempting pressures on its current account deficit.

If India stopped oil imports from Russia during the rest of FY26, then India’s fuel bill might increase by only $ 9 billion in FY26 and $11.7 billion in FY27, according to estimates by SBI Research. 

Russia accounts for 10% of global crude supply, if all the countries stopped buying from Russia the crude price may increase by 10% if no other countries increase their production, the research arm of State Bank of India (SBI) said.

India’s imports of Russian crude rose to $56.8 billion in 2024 from $2.8 billion in 2021, corresponding to a rise in India’s share of total crude oil imports to 35.5% from 2.2%. Today India is Russia’s biggest oil importer.

In terms of volume, India imports 88 MMT from Russia in FY25 from the total import of 245 MMT, SBI said adding besides Russia, India buys oil from Iraq – its top supplier before the war in Ukraine followed by Saudi Arabia and the UAE.

Since Mr Trump’s executive order stipulates an effective date of 21 days after the signing of the order, it indicates room for negotiations in coming weeks. “India’s response to these developments will ultimately determine the effect on its growth, inflation and external position,” Moody’s said.

Since 2022, India has increasingly ramped up its crude oil imports from Russia as demand from the latter’s traditional offtakers dried up amid sanctions tied to its invasion of Ukraine.

According to Moody’s beyond 2025, the much wider tariff gap compared with other Asia-Pacific countries would “severely curtail India’s ambitions to develop its manufacturing sector, particularly in higher value-added sectors such as electronics, and may even reverse some of the gains made in recent years in attracting related investments.”

From being a quiet colony in Bandra West, housing government employees on reclaimed land in the 1950s, a micro-market in Bandra Reclamation has now turned into a gold mine for realtors and house owners with luxury housing cluster coming up through redevelopment.

What began as a housing solution for engineers and civil servants is transforming into a prime address for diamond merchants, businessmen and professionals, with sea-facing homes commanding prices between ₹6-12 crore a unit. 

This transformation reflects not only Mumbai’s rising real estate prices but also the city’s desperate need to reclaim and redevelop land intelligently and sustainably, according to analysts.

Bandra Reclamation, especially around KC Marg, was part of a larger city planning vision by the state’s housing authority (MHADA) where dozens of housing societies came up. 

“The 26 housing societies on KC Marg in Bandra Reclamation were primarily built to address the growing need for housing in Mumbai, particularly for the middle and low-income groups,” said Virendra Vora, Promotor and Managing Director, Excel Infra Construction, a local developer currently redeveloping one of the old buildings.

“This area was reclaimed from the sea and became ideal for public sector housing initiated by MHADA in the ’50s and ’60s,” he said.

Now, these very buildings with a height of 5 to 7 floors, once modest homes for ONGC engineers and state government employees, are being redeveloped into luxurious high-rises, with new construction offering panoramic sea views, sky lounges, and high grade amenities.

“Many of these buildings are now undergoing redevelopment to improve living conditions and infrastructure, with an increased Floor Space Index (FSI) being granted to facilitate the process,” Mr Vora added.

“In Bandra West legacy meets luxury. The upcoming sea-facing projects here are among the most luxurious in Mumbai. With seamless access to the Coastal Road, Bandra-Worli Sea Link, and key business hubs of BKC and Worli, KC Marg is emerging as one of the most coveted addresses in the country,” he explained.

The old buildings are being replaced with swanky towers that rise 40 to 50 storeys high. The building named New Deep CHS Ltd which Mr Vora’s company is redeveloping as Bellissma now offers three luxury residences per floor, including two sea facing ones priced about ₹12 crore each. 

“Properties in KC Marg and its vicinity offer access to a wide range of amenities and so the demand for a home is very high,” said Kailas Sinari, Partner, Surefire, a project management firm. “This locality offers comfortable and convenient lifestyle for residents,” he added.

From Bollywood stars to top bankers, many are eyeing Bandra West’s reclaimed coastline for its exclusivity, beauty, and location. With the Bandra Fort, Bandstand Promenade, and the sea just a stroll away, the allure is natural and growing, he added.

“Due to its strategic location, infrastructure developments, and growing demand, properties in KC Marg have shown good appreciation in value over time,” said Deepak Singh, who runs Bridge the App for real estate brokers. 

Such micro markets make Mumbai’s real estate, where a pharma baroness bought two duplex apartments for ₹639 crore earlier this year.  

The Supreme Court on Friday (August 8, 2025) admitted an appeal filed by Alphabet, the parent company of online search engine Google, against a judgment of the National Company Law Appellate Tribunal (NCLAT) that partially upheld a Competition Commission of India (CCI) finding that the technology major abused its dominant position in Android device systems to indulge in anti-competitive practices.

A Bench headed by Justice P.S. Narasimha also admitted appeals filed by the Competition Commission of India and the Alliance Digital India Foundation, and listed the matter for hearing in November.

Google was investigated by the CCI in 2020 for unfair billing practices on Play Store services and for promoting its own payment app, Google Pay.

In 2022, the CCI concluded that Google had mandated the use of the Google Play Billing System (GPBS) for app purchases, while exempting its own apps such as YouTube. The regulator imposed a fine of ₹936.44 crore on the company.

The company law appellate tribunal, while upholding several of the CCI’s findings, reduced the penalty to ₹216.69 crore in a judgment delivered in March this year.

In May, the tribunal reintroduced two of the CCI’s directions, requiring Google to be transparent about its billing data policies and prohibiting the company from using such data to gain a competitive advantage.

Tata Motors Ltd. for the first quarter ended June 30, 2025 reported 30.46% drop in consolidated net profit at ₹3,924 crore as compared with ₹5,643 crore in the year ago period. 

For the quarter the company’s revenue decreased 2.45% Year on Year (YoY) to ₹1,03,792 crore. 

P.B. Balaji, Group Chief Financial Officer, Tata Motors said,” Despite stiff macro headwinds, the business delivered a profitable quarter, supported by strong fundamentals.”

“As tariff clarity emerges and festive demand picks up, we are aiming to accelerate performance and rebuild momentum across the portfolio. Against the backdrop of the upcoming demerger in October 2025, our focus remains firmly on delivering a strong second-half performance,” he said.

Tata Motor’s subsidiary Jaguar Land Rover (JLR) delivered 11th successive profitable quarter amid challenging global economic conditions.

Its revenue for the quarter at £6.6 billion dropped -9.2% impacted by significant new U.S. trade tariffs and planned legacy Jaguar wind down; EBITDA at 9.3% was down 650 bps.

Profit Before Tax was £351 million for the quarter, down 49.4% YoY. It was impacted by U.S. tariffs and foreign exchange headwinds.

“U.S. trade tariffs had a direct and material impact on profitability and cash flow in the period. The U.S.-U.K. trade deal will significantly reduce the financial impact of U.S. tariffs going forward. The decrease in profitability YoY was impacted by the introduction of U.S. tariffs and FX headwinds in the period,” the company said.

Tata Motors’ Commercial Vehicles business saw domestic volumes going down by 9% while exports were up by 68%. Revenues were down by 4.7% YoY. 

Girish Wagh, Executive Director Tata Motors Ltd. said, “We witnessed a decline in domestic sales volumes, reflecting broader market softness and delayed fleet replacement cycles, while segments like Buses and Vans showed resilience and our International Business delivered growth.

The passenger vehicles (PV) business experienced volume pressures, particularly in May and June, with flat growth reflecting continued softness in demand.

In the quarter wholesale volumes decreased 10.1%, on account of industry decline & transitions for new models of Altroz, Harrier & Safari, even as the company continued to ensure controlled channel inventory growth.

Revenues dropped 8.2% YoY on account of drop in volumes. EBITDA margin was down by 180 bps YoY at 4.0% while EBIT margins declined by 310 bps YoY to 2.8%. 

Shailesh Chandra, Managing Director TMPV and TPEM said, “The quarter was a subdued one for the passenger vehicle industry, with volume pressures persisting across most segments. Demand softness weighed on overall performance, although the Electric Vehicle category remained a bright spot, supported by new launches and growing customer interest.”

“Our continued focus on customer engagement and portfolio renewal remained strong during the quarter. New launches—Altroz and Harrier.ev—received encouraging initial market response,” he said.  

Securities and Exchange Board of India (SEBI) has done away with transaction charges for mutual fund distributors, according to a circular released on August 8, 2025.

According to the master circular on mutual funds in June 2024, Asset Management Companies (AMCs) were allowed to pay transaction fee for subscriptions worth more than ₹10,000 to the mutual fund distributors. 

SEBI in its old circular had said AMCs could pay ₹100 as transaction charge for subscriptions of more than Rs. 10,000 . This would be deducted from the subscription amount and only the balance shall be invested. For new investors, this was ₹150 to incentivise distributors to bring in new investors. This rule now stands cancelled, SEBI said in its latest circular adding that the decision was taken after public consultation. This however applies only to regular schemes and not to direct schemes.