THE BIG IDEA | PAGE 18 MOTOBAHN | PAGE 9 CoinSwitch’sjourneyfrom arbitrage to digital assets BRANDWAGON | PAGE 9 Why EVs are leaving hybrid cars in the dust KOLKATA, MONDAY, AUGUST 10, 2026 FSSAI bites, F&B brands feel the pain FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL 35 NO. 239, 18 PAGES, `12 (NORTH EAST STATES `12 & ANDAMAN `20) 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 IN THE NEWS COMPANIES PAGE 4 LEGAL EXPERTS DIFFER ON TATA SONS’ CIC MOVE RBI’S ‘INDIRECT ACCESS to public funds’ criterion has become central to Tata Sons’ CIC deregistration bid, with legal experts divided over whether investments by group firms trigger the rule, reports Urvi Malvania. MARKETS PAGE 6 DIVIDEND TAX RELIEFTO BOOST REIT, INVIT FLOWS TAX RELIEFS on dividends from REITs and InvITs under the new tax regime are expected to enhance their appeal and attract greater investor interest, potentially driving higher investment flows into these instruments, reports Kushan Shah. » INSIDE « NORMALJULY RAINS ERASE KHARIF SOWING LAG PAGE 2 QUALCOMM STEPS UP CARTO-CARTECH PUSH PAGE 5 OPINION PAGE 8 THE QUESTIONS WE DID NOTASK, WRITES CHIEF ECONOMIC ADVISOR V ANANTHA NAGESWARAN Maruti accelerates drive towards three million sales MARUTI SUZUKI expects to reach its next million annual sales milestone faster than anticipated, MD and CEO HisashiTakeuchi said, as SUVs and alternative powertrains drive the automaker’s next phase of expansion, reports Nitin Kumar. ■ PAGE 4 AI Phuket-Delhi flight flagged as ‘serious incident’ AAIB IS INVESTIGATING theAir India Phuket-Delhi flight after it lost around 300 feet during cruise onAugust 4. DGCAremoved both pilots from roster after classifying the occurrence as a ‘serious incident’. THE HUMAN FACTOR WHENTHE BOSS ISANAPP PAGE 8 SCORECARD MAYTOUCH $50 BILLIONTHISWEEK FCNRwindow may close early as inflows surge PRASANTA SAHU New Delhi, August 9 THE RESERVE BANK ofIndia’s (RBI) special window, which offers high tax-free returns on dollardepositsofnon-resident Indians, may close well before the scheduled deadline of September 30 as robust inflows have started raising concerns about ‘reversal risks’, official sources told FE. “Nobody expected this volume of inflows in such a short time,” one of the sources said, adding that inflows under the special foreign currency nonresident (bank) {FCNR(B)}window might touch $50 billion this week. The sources indicatedthatthegovernmentand theRBImaydiscussclosingthe window once inflows reach around $50 billion. The scale of the response has shifted the policy debate from whether the scheme DOLLAR GAINS ■ The Centre and the central bank, however, would retain the option to reopen such schemes ■ RBI-govt may discuss closing the window once inflows reach $50 billion ■ The concern is that it could lead to higher foreign currency liabilities ■ In 2013, a similar FCNR(B) drive yielded around $26 billion would work to how soon it should be switched off, they added. The government and RBI, however, would retain the optiontoreopensuchschemes if external shocks exert fresh pressure on the rupee, the sources said. The concern is that the chances of much ■ The RBI package was designed to make FCNR(B) deposits more attractive by removing interest-rate caps higherinflowsifthe windowis kept open for another 40 days could potentially result in foreign currency liabilities that aredifficulttomanageasthese deposits mature. According to official data, betweenJune23,wheninflows startedtricklingin,andAugust 6,FCNR(B) deposits accounted Q-comm’s private label share doubles ANEES HUSSAIN Bengaluru, August 9 PRIVATE LABELS ARE gaining groundinthequick-commerce marketwiththeirshareofsales risingto12-16%from6-8%in early 2025, as platforms are looking to improve margins and gain greater control over pricing, availability and customer retention, according to industryestimates. The shift is being led by staples,where platforms are building their own brands, while newerlabelsinpremiumsnacks, beveragesandfreshproduceare expandingtheprivate-labelplay beyondcommodities. Tata-owned BigBasket remainsthebenchmark,withits private labels accounting for around35%ofrevenue.ItsportfolioincludesBBPopularandBB Iran:Nodirect UStalks;third partyrouteon vest, launched in 2022, now accounts for 22-25% of staples sold on the platform, up from about18%ayearago,according to e-commerce analytics firm 1digitalstack.ai. Continued on Page 11 Continued on Page 5 ■ BigBasket remains the benchmark, with its private labels around 35% of the revenue share ■ Among quick- ■ Private labels in staples earn margins of 15-25%, roughly twice those on third-party brands Royal in staples, BB Home in home care and Fresho in fresh produce. Among quick-commerceplatforms,Swiggy'sInstamart has emerged as the most aggressive, followed by Zepto andEternal'sBlinkit. Instamart's Supreme Har- Continued on Page 11 IRAN IS NOT currently engaged in direct negotiations with the United States, while messages between the two sides are being exchanged through intermediaries, Iranian Foreign Minister Seyyed Abbas Araghchi said on Sunday. According to his statement carried byIranian state media, IslamicRepublicofIranBroadcasting (IRIB), Araghchi said that several countries were continuing efforts to create conditions for the resumption of negotiations between Tehran and Washington. "We are not currentlynegotiating with the United States; the exchange of messages takes place through intermediaries," Araghchi said, as quoted by IRIB. STAPLE BET commerce platforms, Swiggy's Instamart has emerged as the most aggressive for $42.78 billion of the $47 billion mobilised through the newswapfacility,withanother $1.5 billion coming through external commercial borrowings (ECBs) and $2.8 billion through overseas foreign-currency borrowings (OFCBs). FDI limit for CCEA nod to treble to `15,000 cr MUKESH JAGOTA New Delhi, August 9 IN A MOVE that will further liberalise foreign direct investment (FDI) inflows, the government is considering raising thethresholdforlargeFDIprojects requiring the approval of the Cabinet Committee on Economic Affairs (CCEA) from `5,000 crore at present to `15,000 crore. Currently, all FDI applications that need government approval and involve investment of less than `5,000 crore can be approved by the ministryordepartmentoverseeing the sector concerned. For proposals of more than `5,000 crore,thecompetentauthority places the application for consideration before the CCEA. If the new proposal is implemented, ministries and departments will get power to approve investments up to `15,000 crore. “Prevailing economic conditions, inflation, the growing scale of investments over the years,and the objective of promoting ease of doing business necessitate a review of the existing threshold,” sources said. The limitwas last revised in March 2016 to `5,000 crore new proposal is implemented, ministries and departments will get power to approve investments up to `15,000 crore ■ Net FDI inflows, however, declined to less than $1 billion in FY25 from a high of $44 billion in FY21 Economists project net FDI inflows to rise to a four-year high of around $15 billion in FY27 from `3,000 crore. Before 2010, all FDI proposals worth more than `600 crore went to CCEAforapproval.In February 2010, it was raised to `1,200 crore, and then by April 2015 to `3,000 crore. This liberalisation in limits was accompanied by abolition of Foreign Investment Promotion Board (FIPB) in May2017. This latest proposal follows a series of steps taken by the government to boost foreign investment inflows as the MANJU AB Mumbai, August 9 ASSET RECONSTRUCTION COMPANIES (ARCs) acquired bad loans worth `26,304 crore from the banks in first quarter of FY27,compared to `16,876 crore during the same time last year. The over 50% y-o-y rise in purchases of non-performing loans,in the normallylean June quarter,indicatesapositivesignal that more transactions are taking place in the stressed assets space as resolutions are accelerating. The purchase order during rupee and current account came under pressure. While overseas debt raising has brought in substantial shortterm funds, FDI will deliver long-term investments. Last week,the government operationalised FDI in e-commerceforexports.Itisalsoconsidering a proposal to exempt foreign companies from obtaining fresh approvals for downstream investments. Continued on Page 11 CLEAN-UP ACT ■ ARCIL was one of the most active players in Q1, having acquired bad loans `3K-cr theJune2026quarterincluded `17,942 crore of corporate loans and `8,362 crore of retail loans. In the year-ago quarter, ARCshadbought`10,250crore of corporate loans and `6,626 crore of retail assets. “Despite headline NPAratio of the banking system coming down from 2.8% in FY24 to 1.8% in FY26, acquisition of NPAs by ARCs continues to grow. This is because sale to ARCs not only comes from headline NPAs, but also from technical and prudential writtenoffaccount,notappearingin balance sheet of banks,which are almost double the amount ofNPAs,”saidHariHaraMishra, CEO, Association of ARCs in India. Continued on Page 5 BeyondSkyroot,fundingremainsachallenge Carfirmsrevupfor S SHANTHI Bengaluru, August 9 SKYROOT AEROSPACE'S SUCCESSFUL Vikram-1 launchhasboostedconfidence in India's private spacetech industry but investors and founders say the bigger challenge now is ensuring the milestone translates into funding for a wider pool of startups rather than remaining concentrated among a few market leaders. The orbital mission, which saw the launch of a privately built rocket forthe first time,is beingseenasavalidationofthe country's private space capabilities after years of technology development and policy reforms. Venture capital investors expect the achievement to improve sentiment towards the sector, although they caution that growth capital continues to be scarce for companiesattemptingtoscale. "Skyroot has become the poster child. Several more spacetech companies will get funded because twoyoung scientists proved it could be done 100% indigenously, at a fraction of global capex, in record time," Vikas Choudhury, founding partner at Playbook Partners,told FE. The optimism, however, masks a highly uneven funding landscape. According to Tracxn, India's spacetech ecosystem has raised about $871 million across 241 funding rounds till July 2026. Yet more than half the funding raised during 2025 and 2026 went to just five startups: Skyroot Aerospace, Digantara, EtherealX, Bellatrix Aerospace and AgniKul Cosmos. Continued on Page 11 MONEY MATTERS ■ India's spacetech ecosystem has raised about $871 million across 241 funding rounds till July 2026 ■ More than half the funding raised during 2025 and 2026 went to just five startups including Skyroot ■ Of the 334 spacetech startups in India, only 106 have secured institutional funding ■ Experts say the shortage is no longer at the seed stage, where investor interest has improved but at growth stage The missing manufacturing middle INDIA’S MANUFACTURING AMBITIONS aregettingbigger. Semiconductor fabs, battery gigafactories, electronics plants, data centres and renewable-energyprojects are drawing billions of dollars in investment.Butbetweenthese large anchor projects and India’s millions of small manufacturers lies a much thinner layer of companies capable of supplying the sophisticated components,machinery,tooling and engineering systems they need. That is emerging as the ■ If the Purchase of banks’bad loans spikes 50% in Q1 INDIAHASATTRACTEDTHE MEGAPROJECTS;THE BIGGER CHALLENGE ISTHE LOCALSUPPLIER ECOSYSTEM VIVEAT SUSAN PINTO/ NANDINI OZA/OJASVI GUPTA/V NARAYANAN Mumbai/Ahmedabad/New Delhi/Chennai, August 9 EASE OF INVESTING THE GAP BENEATH THE MEGA-PROJECTS ■ Over 99% of registered enterprises are micro, while medium enterprises account for less than 0.05% ■ Mega projects need a deep domestic supplier base spanning precision components, machinery, cooling systems etc ■ Data centres, semiconductors, EVs and renewable energy are opening new opportunities for established manufacturers missingmiddleinIndia’smanufacturing push. The imbalance is stark. Of the 92.4 million enterprises registered on the government’s Udyam and Udyam AssistplatformsasofAugust9, 91.9 millionwere micro enterprises,541,000weresmalland just 41,751 were medium enterprises, according to the Ministry of MSME’s real-time ■ The bigger prize is not just attracting mega factories, but building competitive domestic companies around them that can supply more of their machinery & components needs dashboard. More than 99% of registered enterprises are therefore micro, while medium enterprises account for less than 0.05%—roughly 2,200 micro enterprises for every medium one. The figures cover manufacturing,servicesandtrading, not manufacturing alone, but they underline the scale of the graduation challenge. The dashboardseparatelylists18.4 million registered manufacturing enterprises. And “medium” is not particularly large by official standards. Expertssaythisthinmiddle matters because the economic gains from a new factory depend partly on the ecosystem that develops around it.A semiconductorfab,datacentre or electric vehicle plant needs a long chain of suppliers making everything from cables, motors, gears and cooling systemstoprecisioncomponents, sensors, specialised materials and testing equipment. The deeper that domestic ecosystem, the greater the potential for local value addition. MSMEs alreadyaccount for about 35.4% of India’s manufacturing, 48.58% of exports and 31.1% of GDP, according to the Economic Survey202526. The Survey identifies scaling up MSMEs, improving competitiveness, expanding marketaccessandbridgingthe credit gap as key to India’s industrial transformation. Demand from the new investment cycle is creating opportunities, but relatively few companies have the scale and technological capabilityto capture them. Continued on Page 11 Kolkata festivalrushwith slewoflaunches AKBAR MERCHANT Mumbai,August 9 STRONG RETAIL GROWTH is leading automakers to enterthe festive season with one of their most aggressive product refresh cycles,withMahindra&Mahindra,MarutiSuzuki,Hyundai,Tata Motorsandothersliningupnew modelsandfaceliftsacrossSUVs, electric vehicles and premium cars. Mahindra & Mahindra is expected to be among the most active players.After refreshing the Scorpio N with feature upgrades,thecompanyislikelyto update the three-door Thar, which has seen softer demand following the launch of theThar Roxx.Its BE6 electric SUVis also expected to get a model-year refresh,includingadditionalfeatures and a triple-screen dashboardlayout. MarutiSuzuki,meanwhile,is preparing facelifts of two of its keyvolume models,the Baleno and Fronx.The Baleno facelift is expectedinearlySeptember,followedbytheupdatedFronx.The company is also working on a three-row electric MPV, as it is looking to strengthen its presenceinboththeSUVandelectric vehiclesegments. Hyundai is readying an allnewmid-sizeSUVtositbetween the Venue and Creta, giving it another offering in one of the fastest-growingsegmentsofthe market.Themodelisexpectedto comewithpetrolandpetrol-CNG powertrains,withadieseloption HOT WHEELS ■ Maruti Suzuki is preparing facelifts of two of its key volume models, the Baleno and Fronx ■ M&M will come out with upgraded Scorpio N, the three-door Thar & electric SUV BE6 ■ Hyundai is readying an allnew mid-size SUV to sit between the Venue and Creta alsobeingconsidered. Tata Motors is preparing a comprehensive refresh of the Tigor,covering its exterior,interior and features,with a similar updateexpectedfortheTigorEV. The company is also gearing up tolaunchtheSafariEV,whichwill competewithMahindra’sXEV9S inthepremiumelectricSUVsegment.Toyotaisexpectedtobring a mid-life update to the Innova Hycross in the coming months, while JSW MG Motor India is preparing a new three-row SUV, expectedbylateAugustandlikely tobecalledHectorHawk. Continued on Page 11