BACK PAGE | PAGE 24 EFE | PAGE 9 SRK is India’s most valuable celebrity at $177.9 mn ECONOMY | PAGE 2 India’s drones take off on homegrown tech LUCKNOW, THURSDAY, AUGUST 6, 2026 Somanathan gets another year as Cabinet Secretary FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL 19 NO. 206, 58 PAGES, `12 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 78,581.00 ▲ 152.05 NIFTY: 24,624.65 ▲ 9.75 NIKKEI 225: 66,300.44 ▲ 2,342.91 HANG SENG: 25,915.82 ▲ 62.90 `/$: 95.13 ▲ 0.26 `/€: 109.78 ▼ 0.02 BRENT: $79.22 ▼ $0.14 GOLD: `1,44,617 ▲ `2,469 INTERNATIONAL PAGE 11 IRAN AND OMAN REACH HORMUZ ROUTE PACT IRANAND OMAN have reached an understanding on the geographic coordinates for a shipping route through the Strait of Hormuz, and a joint announcement is being finalised on Wednesday, provided certain third parties did not interfere, Iran's Foreign Ministry spokesperson Esmaeil Baghaei said on Wednesday. Baghaei added that any such agreement between Iran and Oman would not, by itself, guarantee security in the strategic waterway. The proposed deal between Iran and Oman would give Tehran control over ships entering the Gulf through the Strait of Hormuz, a senior Iranian source and two regional officials told Reuters on Wednesday, in one of the biggest concessions yet to Iran. —AGENCIES » INSIDE « RETAILINFLATION LIKELYROSE TO 19-MONTH HIGH PAGE 2 SERVICES PMI HITS OVER 4.5-YEAR LOW PAGE 2 ‘India’s consumer more resilient than EM peers’ THE INDIAN CONSUMER has remained relatively insulated from disruptions and inflationary pressures compared with several other emerging markets, Marico MD & CEO Saugata Gupta said, reports Viveat Susan Pinto. He said larger players are also better positioned than smaller competitors during periods of supplyPAGE 4 chain uncertainty. ● MPC HOLDS RATE FOR 4TH ● INFLATION FORECAST CUT, TIME, STANCE ‘NEUTRAL’ GDP ESTIMATE RAISED RBI signals long pause MANJU AB Mumbai, August 5 AMID A PROLONGED USIran conflict, an erratic monsoon and simmering inflationarypressures,the Reserve Bank of India (RBI) left the policy repo rate unchanged at 5.25% for the fourth consecutive time on Wednesday, with the six-member monetary policy committee (MPC) voting unanimously to hold and retain its‘neutral’stance. The decision, in line with the overwhelming majorityof forecasts, sets India apart from regional peers such as Indonesia, the Philippines, Japan and Australia, which have tightened policy in response towar-driven energy costs and currency volatility. The RBI has instead chosen to treat the conflict as a temporary supply shock—to be answeredwith rate action only if higherenergycosts spill into broad-based inflation—while deploying capital-flow measures to defend the rupee. “We are neither dovish nor are we hawkish. We feel that this is the right policy rate for the given growth-inflation dynamics that we are in today,” RBI Governor Sanjay Malhotra said at the post-pol- WAIT AND WATCH Retail inflation (% y-o-y) 6.6 7 5.1 4.7 Q2FY27 Q3FY27 6.5 6.5 5.4 5.5 Q4FY27 6.8 6.8 6.6 6.7 5.1 5 Q1FY28 * Actual 6.3 6.4 5.9 5.9 FY27 5.3 June 5, 2026 REUTERS August 5 GDP growth (% y-o-y) 4.2 3.9* Q1FY27 7.3 August 5, 2026 Source: RBI SANJAY MALHOTRA, GOVERNOR, RBI We are neither dovish nor are we hawkish. This is the right policy rate for the given growth-inflation dynamics icy press conference. The dovish tone of the policy has firmed up a consensus among bankers and economists that the repo rate will stay on pause at the October review, with some predicting status quo through the remainder of the fiscal year. “No hawks in sight as RBI keeps rates unchanged while lowering its inflation and raising its growth forecast for FY27,” says Pranjul Bhandari, chief India economist at HSBC Global Investment Research. The RBI cut its inflation forecast for FY27 to 5% from 5.1% earlier, pared its core inflation projection more sharply to 4.3% from 4.7%, and nudged up its GDP growth estimate to 6.7% from 6.6%.For the first quarter of FY28, the central bank pegs inflation at 5.3% and GDP growth at 7.3%. scribed criteria would continue to be included in the upper layer. “It is principlebased. Anyone who meets the criteria,theycontinue,”hesaid. Asked specifically whether Tata Sons would remain in the upper layer, the governor declined to comment on an individual entity.“Let us not ask questions relating to a specific entity. The status is what it was earlier,”he said. Deputy Governor Shirish Chandra Murmu said the revisedlistofupper-layerNBFCs would be released shortly. Under the revised frameworknotifiedinJune2026,the RBI replaced the earlier parametric scoring methodology with a principle-based assetsize criterion. NBFCs with standalone audited assets of `1 lakh crore or more will be considered forinclusion in the upperlayerthrough an annual identification exercise. The regulatory obligations applicable to upper-layer entities, including the listing requirement,remain unchanged. Tata Sons has standalone assets of approximately `1.75 lakh crore, well above the `1lakh-crore threshold. INDIA MAY IMPOSE a charge on cooking gas and natural gas consumers to help fund a planned $42 billion strategic fuel reserve, according to sources familiarwith the matter, after disruptions from the Iran war exposed supply chain vulnerabilities. The plan would extend India’s strategic reserves beyond crude oil for the first time,with stockpiles designed to cover about two months of crudeandliquefiednaturalgas (LNG) demand,and around six weeks of liquefied petroleum gas (LPG), or cooking gas, con- MARKETS REGULATOR SEBI sees no flaws in the structure or design of the new stock closing auctionandisunlikelytoimmediately review it, a source with direct knowledge of the matter told the news agency on Wednesday. The benchmark Nifty 50 index had seen sharp volatility earlierthisweekasanewmechanism to determine the closing prices of stocks was introduced on Monday. The change triggeredwildswingsinfuturesand optionspricesonTuesday,when weekly derivative contracts expired. “It’s too early to do any review. Participation increased on Tuesday and the Securities and Exchange Board of India (Sebi) expects participation to increase further,” said the source,whodeclinedtobeidentified as he is not authorised to speak to the media. He added that brokers have been urged to increase retail participation. Following the rollout, options premiums swung sharply,resultinginunexpected losses for some traders and SHARP SWINGS 24,669.2 24,624.65 Open CAS closing 24,570.2 Normal session closing Nifty Intra-day, August 5 Nifty movement Normal session closing CAS closing % change Aug 3 Source: NSE Aug 4 Aug 5 gainsforothers.Arbitragefunds wereamongthebiggestbeneficiaries, recording a one-day mark-to-marketjumpinvaluations. The unexpected price swings prompted traders to say that the system was not functioning as intended and the issues needed to be addressed. “Sebi expects these issues to settle soon.There is no specific timeline for reviewing the sys- RESERVE BANK OF India (RBI) Governor Sanjay Malhotra on Wednesday reiterated that the categorisation of upper-layer non-banking financial companies (NBFCs) is now based on objective principles ratherthan entity-specific decisions—a stance that experts said strengthens the case for Tata Sons remaining subject to the listing requirement. Responding to questions at thepost-monetarypolicypress conference, Malhotra said companies meeting the pre- EXPANDING RESERVES ■ Govt may use the amount collected to help fund a planned $42 bn strategic fuel reserve Continued on Page 11 ■ The storage infrastructure would be financed through levies that could raise about $1.5 bn annually ■ Govt estimates it will ■ The storage infrastructure would be financed through levies that could raise about $1.5 bn annually sumption,the sources said. Under the plan, cooking and natural gas storage infrastructure would be financed through levies on users that could raise about $1.5 billion annually,the sources said. The Ministry of Petroleum 0.62 0.22 24,573.35 24,774.3 24,463.45 24,614.9 24,570.2 24,624.65 tem,” the source said. OnWednesday,thevolatility waslowerwiththeNiftymoving upby54pointsduringtheclosing auction session, a substantially lower spike than the 200 and 150 points rise seen in the previous two trading sessions. The spike resulted in the Nifty closing 10 points higher at the endofCASafterbeing45points lowerat the start. »INSIDE« Tewoldestepsinto RBI keepsTata listing issue alive AirIndiacockpit tosteernextphase URVI MALVANIA Mumbai, August 5 0.82 Continued on Page 11 EDIT: WAITING IT OUT PAGE 8 need nearly 9 MT of LNG storage and 4 MT of LPG storage over the next 10 years and Natural Gas is considering a levy of `1.29 per kg of LPG, which would raise about $460 million ayearbased on current consumption and add about `18 to the cost of a standard domestic cooking gas cylinder, the sources said. For natural gas, the ministry has proposed a levy of `1.43 per standard cubic metre, generating about $1 billionannuallyatcurrentconsumption levels, the sources said. It was not immediately clear how the levies would be ● FormerEthiopian RAISING THE BAR FOR A RATE HIKE, WRITES SOUMYA KANTI GHOSH PAGE 8 Airlineschiefto succeed Campbell RBI TO RESUME URBAN CO-OPERATIVE BANK LICENSING PAGE 6 AKBAR MERCHANT Mumbai, August 5 NO EARLY END TO FOREX DEPOSIT SCHEMES PAGE 6 GovtplansLPGlevy;cylinderpricemayriseby`18 NIKUNJ OHRI, SARITA CHAGANTI SINGH & NIDHI VERMA New Delhi, August 5 Sebiunlikelytoreviewnew stockclosing auction soon 2026 IN THE NEWS collected. The proceeds would primarily fund natural and cookinggasstorageinfrastructure, while crude reserves and strategic fuel inventories would continue to be financed bythe Centre,the sources said. The sources requested anonymity because the proposal is being discussed across ministries and has not yet received final approval from the Union cabinet.The proposed levies would add about 2% to household gas bills, the sources said. This would be a politically sensitive move for Modi’s government as it raises the costs for millions of consumers amid elevated fuel prices. Continued on Page 11 AIR INDIA ON Wednesday appointed former Ethiopian Airlines Group chief Tewolde Gebremariam as its chief executive officer and managing director,as it looks to steer the Tata Group-owned carrier through its next phase of expansion amid operational disruptions,elevated costs and mounting financial pressure. Gebremariam will succeed Campbell Wilson, who resigned in April after leading Air India through the initial phase of its post-privatisation turnaround, including the merger of the group’s airlines, large aircraft orders and the integration of operations. The exact timeline for the leadership transition will be announced later. The appointment follows a global search overseen by a committee of the Air India board, which evaluated both internal and external candidates. The airline said the board was looking for a leader with experience in managing large-scale airline transformations, driving operational excellence, strengthening safety standards and delivering profitable growth. Zuckerberg apologises overMeta’s shortcomings OJASVI GUPTA New Delhi, August 5 Tewolde Gebremariam, CEO & MD designate, Air India »INSIDE« NEWSPOINT: THE TURNAROUND SPECIALIST PAGE 24 The change at the top comes at a critical juncture for Air India.While the airline has laid the groundwork for its long-term transformation under the Tata Group, it continues to face significant challenges, including weak financial performance, operational bottlenecks and disruptions to global operations. Continued on Page 11 META PLATFORMS CEO Mark Zuckerberg apologised to the Indian government over the temporary removal of Prime MinisterNarendraModi’sFacebook post,with the company’s globalleadershipalsoadmitting tofailuresinvolvingchildsexual abuse material (CSAM), deepfakes and content moderation during talks with Information Technology Minister Ashwini VaishnawonWednesday. The apology came after the Centre summoned Meta’s global leadership overthe brief removalofModi’sJuly23Facebook post, an incident the company had earlier blamed on a technical glitch.The Meta delegation, led by Global Affairs Chief Joel Kaplan, first met Information Technology Secretary S Krishnan before holding discussions with Vaishnaw. According to government sources,Meta expressed regret overtheincidentandacknowledged broader shortcomings in the operation of its platforms. Continued on Page 11 NetflixCo-CEOTedSarandosisguestatExpressAddatoday EXPRESS NEWS SERVICE New Delhi, August 5 THE WAYWE WATCH stories has changed dramatically over the past decade.Streaming has transformed not only how entertainment reaches audiences,but also how films and series are created,discovered and celebrated across the world.As storytelling continues to evolve, so do the questions: What does the future of entertainment look like? Howwill changing audience habits and evolving business models redefine the industry? What does it take to build a global platform that speaks to viewers across cultures and languages? Few people are better placed to explore these questions than Ted Sarandos, CoCEO of Netflix. He will be the guest at Express Adda Thursday in New Delhi,in conversation with Anant Goenka, Executive Director, Indian Express Group. Widely regarded as one of the architects of the streaming revolution, Sarandos has played a pivotal role in transforming Netflix into one of the world’s leading entertainment companies. Sarandos, who has been with Netflix for over two decades, has been key to its expansion into all areas of entertainment programming. He led the company’s transition into original content production with the launch of the series“House of Cards”, “Arrested Development”and“Orange Is the New Black”, among others. Named one of Time Magazine’s 100 Most Influential People in 2013 and 2025, under his leadership,the platform has invested in diverse voices and reshaped the way audiences discover and experience films and series and championed bold,innovative and engaging storytelling from around the globe. The Express Adda is a series of informal interactions organised byThe Indian Express Group and features those at the centre of change. Recent guests include Managing Director at Peak XV Partners Rajan Anandan; Cofounderand CEO of SarvamAI Pratyush Kumar; CEO of OpenAI Sam Altman; Union Ministers S Jaishankar and Hardeep Singh Puri; Nobel Laureate Amartya Sen; Indian-American journalist Fareed Zakaria; cricket icons Virat Kohli and Rohit Sharma; chess legend Viswanathan Anand; Olympic gold medallist javelin thrower Neeraj Chopra; comedian Zakir Khan; and, actor and former White House staff member Kal Penn. QUICK PICKS LIC OFS gets over `31 K cr THE CENTRE ON Wednesday successfullyconcludedtheoffer forsale (OFS) of a 6.5% stake in LIC, raising around `31,552 crore in non-tax revenues, reports FE Bureau. PAGE 10 Audi eyes 16% market share AUDI INDIA HAS unveiled a turnaround strategy aimed at doubling its market share from around 8% to 16% over the next three years, reports Akbar Merchant. PAGE 5 Lucknow