Newspaper Summary 110226

 

Will India’s New Startup Rules Really Help Firms?

India has recently tweaked its rules for startup recognition to better reflect the realities of businesses that require long gestation periods or are in the process of scaling. By expanding eligibility timelines and easing various thresholds, the government aims to help a larger number of startups access tax breaks and other support for longer periods.

Changes to Startup Recognition Rules

The government recently revised the Startup Recognition Framework under the Startup India Action Plan to be more inclusive of innovation-led and scaling businesses. Key changes include:

• Increased Turnover Limit: The turnover limit for a firm to be recognized as a startup has been raised from ₹100 crore to ₹200 crore. This allows growing firms to retain their official recognition and the associated benefits for a longer duration.
• Deep-Tech Sub-category: A new sub-category has been introduced specifically for deep-tech startups. These firms can now be recognized for up to 20 years from their date of incorporation, a significant increase from the previous 10-year timeline. Additionally, their turnover limit for recognition has been set higher at ₹300 crore, acknowledging their inherently longer product development cycles and higher capital requirements.

Expansion Beyond Traditional Startups

The new rules have expanded eligibility to include cooperative societies and voluntary, member-owned associations, whether they operate at the state or multi-state level. By allowing these community-led enterprises to tap into startup incentives, the government hopes to promote innovation-driven growth at the grassroots level in sectors like farming, rural industries, and other allied fields.

Benefits for Recognized Startups

Official recognition provides startups with several critical advantages, including:

• Financial and Regulatory Support: Eligibility for tax exemptions, faster regulatory approvals, and preferential access to various government schemes.
• Access to Schemes: Recognized firms can participate in programs such as the Technology Incubation and Development of Entrepreneurs, the Credit Guarantee Scheme for Startups, and the Technology Development Fund.
• Public Procurement: Greater visibility and access within public procurement channels.
• Policy Continuity: For firms approaching or crossing the previous ₹100 crore revenue mark, these rules provide the necessary policy continuity as they transition from early-stage growth to commercial scale.

Impact on Fundraising

These changes are expected to provide founders with a longer runway to demonstrate progress without the fear of losing access to government incentives. Investors suggest this will make it easier for startups to attract "patient capital," such as long-term venture funds, strategic corporate investors, and government-backed R&D grants. For deep-tech firms, the alignment of policy support with their longer business timelines reduces regulatory uncertainty, creating a more credible environment that could lead to larger cheque sizes and increased participation from global funds.

Reasons for the Policy Shift

The Centre made these changes to reflect the evolution of the Indian startup ecosystem. While startups were previously seen as primarily internet and consumer-technology focused with short product cycles, the landscape now includes more research-intensive and capital-heavy ventures. Sectors such as artificial intelligence (AI), biotech, space, robotics, and advanced materials require more time, significant investment, and sustained regulatory support, which the new deep-tech category specifically acknowledges.

GDP to Vibes: India’s New Growth Game

The economic survey and the budget have underscored the importance of India’s “orange economy,” explicitly acknowledging its potential as an engine of growth. According to the economic survey, orange economy activities are driven by creativity, culture, and intellectual property, where value addition comes from the overall consumption experience rather than just the actual good or service purchased. Key sectors in this economy include media, entertainment, and experiential tourism.

Strategic Outlays and Job Creation

To support this vision, Budget 2026 proposed an outlay of ₹250 crore for talent development in the animation, visual effects, gaming, and comics (AVGC) sector. The government estimates that this sector will create 2 million jobs by 2030. Within this space, fast-growing segments like gaming and live entertainment are expected to be major future job creators with significant spillovers into the tourism, transport, and hospitality sectors.

The Numbers Game of Live Entertainment

Live entertainment in India is driven by the world’s largest cohort of millennials and Gen Zs, many of whom are willing to spend significantly on live shows. For instance, Coldplay’s 2025 concerts in Mumbai and Ahmedabad attracted over 400,000 fans, generating an estimated economic impact of ₹641 crore through ticket sales, travel, and logistics. While these events can re-brand cities, India requires world-class facilities and better urban infrastructure—modeled after hubs like Singapore—to fully benefit from the multiplier effects of the concert economy.

Online Gaming Potential

India is one of the largest mobile gaming markets globally, with 400-500 million gamers. The profile of Indian gamers shows that 43% are Gen Z, 72% prefer vernacular content, and 66% reside in non-metro cities. Unlocking the economic potential of this sector involves:

• Cultural Content: Publishing high-quality games based on India’s rich heritage of legends and stories.
• Non-metro Talent: Tapping into the growing gamer base in smaller cities.
• Influencer Ecosystem: Leveraging India's nearly half a million gaming influencers.
• Education: The budget proposed setting up content creator labs in 15,000 secondary schools and 500 colleges to cultivate fresh talent.

The Rise of Experiential Tourism

Experiential tourism goes beyond passive sightseeing to offer immersive and emotionally satisfying experiences. This trend is often driven by media; for example, fans visiting filming locations of popular shows or movies. India has massive potential here due to its wealth of ancient structures, water bodies, and ecological features. Budget initiatives aimed at developing wildlife trails, Buddhist circuits, and archaeological walkways, alongside standardized training for tourist guides, are intended to facilitate this experience-led growth.

India’s bet on the orange economy is essential as consumers increasingly prioritize experiences over purchases. By converting intellectual property into immersive travel and entertainment, India aims to turn "vibes" into a sustainable driver of GDP growth.

Laptops Fly Off Shelves as Smartphone Sales Stagnate

The two pillars of India’s electronics market are currently experiencing diverging fortunes. Personal computer (PC) sales surpassed pandemic-era highs last year as consumers upgraded their devices, while smartphone demand has stagnated.

Record PC and Laptop Sales

In 2025, companies sold a record 15.9 million personal computers in India, including 11.4 million laptops. This is a significant increase from 2024, when 14.4 million PCs were sold, 10.1 million of which were laptops. Laptops now account for approximately 75% of all PC sales in the country. The average price of a laptop sold in India in 2025 was roughly ₹43,000, and the segment generated an estimated $5-6 billion in revenue.

Stagnation in the Smartphone Market

By contrast, the smartphone market saw 154 million units sold in 2025, marking another flat year. Sales remain below the 2021 peak of over 160 million units. Stakeholders attribute this stagnation to several factors:

• Lack of new features and longer usage spans.
• A saturated market.
• Slow upgrades, with a base of over 250 million feature phone users not yet transitioning to smartphones.

Drivers of the PC Resurgence

The growth in the PC market is largely driven by replacement demand. Five years ago, during the pandemic, market shortages forced many consumers to buy whatever laptops were available within tight budgets. Today, these buyers are seeking to upgrade to better laptops at higher price points. Analysts also believe there is significant room for organic growth, given India’s low PC penetration and large user base.

Market Leadership and Industry Impact

HP remains India’s leading laptop seller, holding a market share of 27-29%. Lenovo follows in second place with an 18% share (as of September 2025), with Dell, Acer, and Asus also maintaining significant presences.

The impact of this market divergence is evident in corporate earnings. Firms focused on PC components or assembly have seen growth, while others, such as Dixon—which derives nearly 70% of its revenue from mobile phone assembly—reported a 28% decline in its topline.

Potential Headwinds and the "AI PC" Trend

Experts warn that rising costs for memory chips have already pushed laptop prices up by 10-20%, which could eventually dampen demand among price-sensitive consumers. However, premium segments, including gamers, creators, and enterprise users, are expected to remain less sensitive to these price changes.

Additionally, analysts caution against overhyping the “AI PC boom.” While AI-enabled laptop sales are rising, this is largely because AI chips have become standard hardware in mid-to-high-end models. Customers are not necessarily walking into stores asking for AI features; rather, their standard upgrades are simply being categorized as AI PCs by default.

US Says India Committed to Digital Trade Negotiations

Talks to cover rules prohibiting customs duties on cross-border electronic transactions

In the latest update to the US-India trade pact, Washington has stated that India has committed to removing its digital services taxes and to negotiating trade rules that address "discriminatory or burdensome practices and other barriers to digital trade". This announcement was made in a White House factsheet released on Monday, which also clarified that the current framework does not mandate immediate changes to India’s domestic e-commerce policies.

Scope of Negotiations

A central focus of these negotiations will be rules prohibiting customs duties on electronic transmissions, which has been a long-standing priority for the US in global digital trade discussions. If these rules are established, India would be prevented from imposing import duties or similar charges on:

• Software downloads and apps.
• Cloud services.
• Digital media and e-books.
• Online subscriptions and any data transmitted electronically over the internet.

Industry Perspectives and Contentious Issues

The moratorium on customs duties for digital trade remains a contentious issue at the WTO, where India and the US have historically held divergent positions. Tax experts note that while the removal of GST challenges on digital products could resolve ongoing disputes, India has recently resisted the WTO moratorium, seeking the ability to impose duties on digital products like video games and audio-visual content.

For India, this remains a sensitive area because it limits future policy space to tax or regulate digital flows. Industry representatives suggest the issue is being framed as something "to be negotiated" rather than a settled agreement.

Background: Removing Digital Levies

This push for digital trade follows India's earlier moves to address US concerns regarding discriminatory taxes. In August 2024, India scrapped a 2% equalisation levy on e-commerce supplies and abolished a 6% levy on online advertising, often referred to as the "Google tax".

Part of a Broader Trade Framework

The digital trade negotiations are part of a larger interim trade agreement. Key components of this broader deal include:

• Zero-Duty Access: India is set to gain zero-duty access for goods worth approximately $44 billion, covering nearly half of its merchandise exports to the US.
• Tariff Reductions: The US has agreed to reduce tariffs on Indian produce to 18%.
• Policy Links: Washington stated these concessions followed New Delhi’s commitment to stop purchasing Russian oil.

Both nations have reaffirmed their long-term commitment to negotiating a wider US-India Bilateral Trade Agreement.

New IT Rules Mandate Labels for AI, Deepfake Takedowns

The Indian government has formally notified the amended Information Technology (IT) Rules, 2026, bringing in a stricter compliance regime for social media companies such as X, Facebook, Instagram, and Telegram. The new regulations are specifically aimed at combating the misuse of artificial intelligence (AI), with a focus on deepfakes and other sensitive "synthetic" content.

AI Content Labeling Rules

Under the new framework, social media intermediaries are required to label AI-generated and modified content in specific circumstances. Labeling is mandatory when the information:

• Appears to be "real, authentic or true".
• Depicts an individual or event in a manner that is likely to be perceived as indistinguishable from a natural person or real-world event.

This requirement follows the government's decision to drop a contentious proposal that would have required platforms to watermark 10% of all online content, a move hailed as a victory by industry stakeholders.

Tightened Takedown Timelines

The government has sharply shortened the windows for platforms to remove prohibited or reported content:

• Deepfakes and Non-consensual Sexual Imagery: Removal is now required within two hours, a major reduction from the previous 24-hour limit.
• Other Unlawful Content: Intermediaries must act within three hours of receiving a user report or a government/court order, down from 36 hours.
• Defamation and Harassment: Action on content linked to defamation, harassment, or privacy invasion must be taken within 36 hours, compared to 72 hours previously.

Faster Grievance Redressal and User Notifications

The rules also expedite the internal processes of digital platforms. Grievance resolution officers are now required to produce a final verdict on user reports within seven days, down from 15 days. Additionally, platforms must notify their users of rules and policies at least once every three months, rather than once a year.

Compliance and Enforcement

Failure to comply with these tighter timelines will attract criminal litigation under India's existing social media intermediary laws. Companies have been granted a 10-day window to align with the new rules, which will take effect starting February 20. While some analysts flagged the potential for industry pushback, government officials maintain that platforms have already demonstrated the capacity to act within minutes when necessary. Industry bodies like Nasscom have described the final set of rules as "fairly balanced" following the removal of the broad watermarking mandate.

IPOs lose shine as venture fund exits pivot to block deals

Mansi Verma, Abhinaba Saha MUMBAI

Initial public offerings (IPOs) are losing their appeal for private equity (PE) and venture capital (VC) investors seeking to monetize their holdings. While IPOs have traditionally been seen as the primary liquidity event, data from the past five years indicates that investors are now realizing significantly higher exit values through post-listing bulk and block deals than through the offer-for-sale (OFS) segment of an IPO.

Divergence in Exit Strategies

Since 2024, there have been 43 PE- and VC-backed IPOs where shares worth nearly ₹59,000 crore were sold via the OFS route. This figure represents only about one-third of the ₹1.9 trillion realized through post-listing bulk and block deals during the same period.

An OFS allows promoters and existing investors to sell shares to the public during an IPO, whereas post-listing options allow them to sell shares on the exchanges after the company is already listed. Over the last two years, more than 950 block deals were executed, signaling a clear preference for deferring large exits until after listing due to volatile valuations.

Widening Gap Between IPO and Post-Listing Exits

The shift toward post-listing exits began in late 2023 and has continued despite brief pauses caused by geopolitical and trade disruptions. A comparison of the data shows a widening gap:

• 2021: Investors sold shares worth roughly ₹48,000 crore through OFS, compared to nearly ₹62,500 crore through post-IPO trades.
• PE Exit Share (2021 vs. 2025): In 2021, IPOs accounted for 12% of PE exits while block trades were at 23%. By 2025, IPO exits shrank to 8%, while block trades rose to 30%.
• The 2023 Peak: The divergence was most extreme in 2023, when block trades surged to 47% of total exits, while IPO exits collapsed to just 6%.

Why Block Deals are Winning

Market experts suggest that selling shareholders are intentionally trimming the OFS component of IPOs, choosing to hold onto stakes to pursue secondary sales once companies are listed.

Pranav Haldea, managing director at Prime Database Group, notes that the block deal ecosystem has matured significantly. "What has changed is the depth of domestic liquidity, especially from mutual funds, which are now willing and able to absorb large secondary stakes," Haldea said. He added that many older private equity funds have reached their exit phase, making block deals the preferred monetization mechanism.

Abhishek Guha, a partner at Trilegal, points out that block deals offer structural advantages for large financial investors. "There is far greater flexibility in pricing since block deals are private and negotiated," Guha noted, adding that these deals also provide superior discretion and speed. Following a year of aggressive sell-downs, funds are now recalibrating their pace, and many more exits through block sales are expected in 2026.

400 million calls daily: Trai mulls tougher spam rules

By Jatin Grover NEW DELHI

India’s telecom regulator, the Telecom Regulatory Authority of India (Trai), is looking to widen its current enforcement framework and is prepared to tighten rules if compliance gaps persist among telemarketers. This move comes as telecom operators are now blocking or flagging nearly 400 million suspected spam calls and messages every day.

The Scale of the Spam Problem

Trai Chairman Anil Kumar Lahoti revealed in an interview that the regulator has taken several measures over the last 18 months to curb unsolicited commercial communications. Currently:

• Approximately 75 million calls or SMS are blocked daily through scrubbing against the customer preference register.
• Telecom operators are flagging an additional 320 million spam instances daily from 10-digit phone numbers.
• A major challenge remains that only 220 million out of 1.16 billion mobile subscribers have registered their preferences on the DND (Do Not Disturb) platform, meaning roughly 80% of users remain open to receiving unwanted calls.

Digital Consent Acquisition (DCA) Framework

Trai is moving toward a full rollout of the Digital Consent Acquisition (DCA) framework, which aims to make user consent for promotional calls and SMS digital and visible to the consumer.

• Pilot Success: A pilot involving 11 banks and telecom operators proved the system works technically.
• Full Rollout: The regulator is now moving toward a complete rollout for these entities, involving the Indian Banking Association (IBA).
• Legacy Consents: To ease the transition, banks are allowed to upload their existing "legacy" consents to the digital platform based on their own certification. Users will eventually be able to check and revoke these consents once the data is digitized.

Fraud Prevention and Number Identification

To combat fraud, Trai has held extensive discussions with banks, requiring them to whitelist thousands of URLs. Any SMS containing a URL that has not been whitelisted is now blocked.

Additionally, new numbering rules are being implemented to help users identify genuine calls:

• 160 Series: All service and transactional calls (such as OTPs, balance alerts, or official notifications) from banks, insurance companies, and mutual funds will originate from this series.
• 140 Series: All standard telemarketing calls will continue to originate from this series.

Future Regulatory Action

Lahoti stated that Trai is currently engaged with stakeholders to identify specific gaps in telemarketer responsibilities. If the existing rules prove insufficient, the regulator is open to strengthening the Telecom Commercial Communications Customer Preference Regulations (TCCCPR) to fix responsibilities.

Separately, Lahoti noted that recommendations for the next spectrum auction are in their final stages and are expected to be submitted to the Centre within a month.

Netflix’s Hollywood edge heats up India OTT rivalry

By Lata Jha NEW DELHI

The niche, urban, English-language OTT space in India is bracing for a significant shake-up following Netflix’s recent deal to stream all films produced by Sony Pictures Entertainment globally after their theatrical release. Furthermore, the streaming giant is potentially moving to acquire the massive Warner Bros library, a move that would further consolidate its position.

Impact of Catalogue Consolidation

Industry experts believe these international shifts will fundamentally alter consumer choices in India. The clustering of global libraries under fewer platforms reduces friction for consumers who are tired of navigating multiple subscriptions to find their favorite content. This consolidation is forcing rivals like Prime Video and JioHotstar to rethink their strategies for targeting up-market, premium users.

While Netflix moves toward a dominant position, Prime Video is fighting back with an "add-on" strategy. It recently onboarded Moviesphere+, a subscription-based platform from Lionsgate that offers heavyweights like The Hunger Games: The Ballad of Songbirds and Snakes, Mad Men, and The Princess Bride.

A Depth-Driven Market

According to Berjesh Chawla, managing director and lead at Accenture in India, the English OTT category functions differently from mass-language streaming. Consumption is concentrated in urban markets and driven by long-running franchises, making it a depth-driven category rather than a reach-driven one. Platforms that can own, organize, and consistently serve these franchises in one place are best positioned to lead.

Charu Malhotra, co-founder and MD of Primus Partners, notes that while English OTT content has demand, India does not yet have a single, unified leader in that niche. Currently, Netflix shares the space with Prime Video, HBO (streaming on JioHotstar via Discovery and Warner ties), and others like MUBI.

Pricing and Strategic Response

For consumers, the most visible impact of this rivalry may come through packaging and pricing. A platform that establishes itself as the "home of Hollywood" could justify premium pricing or higher subscription tiers, though competitive pressures are expected to keep prices in check.

Prime Video and JioHotstar could respond with bundled offerings or discounts, particularly through telecom partnerships. This might include flexible pricing or combining verticals, such as pairing sports with English films or bundling premium global catalogues with television subscriptions.

Long-Term Structural Changes

Consolidation may also alter how Indian rights deals are structured. If Netflix has "first dibs" globally, it could put pressure on free or low-price licensing models in India. While structural changes are possible, experts suggest they will be gradual, and rivals will continue to fight on the basis of price, bundles, and specialized content.

Ultimately, leadership in the English OTT space will depend on clarity of positioning. A platform that becomes the obvious "home for Hollywood, plus global hits" is likely to capture urban subscriptions, forcing rivals to double down on differentiation through exclusives, regional depth, or curated experiences.

Elon Musk’s go-to banker is back in action for the SpaceX IPO

By Corrie Driebusch & Becky Peterson

Michael Grimes, the longtime Morgan Stanley rainmaker, spent years laying the groundwork for his bank to land a role leading the initial public offering (IPO) of Elon Musk’s rocket maker SpaceX. However, by the time Musk finally decided to take the company public, Grimes was serving in the Commerce Department, having followed the billionaire to Washington, D.C. From afar, he watched former colleagues pitch for roles on what could potentially be the largest IPO of all time.

Returning to the Middle of the Action

This week, Grimes returned to the private sector and is in line to reap millions of dollars in fees. Morgan Stanley announced on Monday that he is rejoining the bank as chairman of investment banking, a promotion from his previous role as head of global technology investment banking.

SpaceX is a highly coveted prize for IPO bankers, especially after its valuation skyrocketed to $1.25 trillion last week following a merger with Musk’s AI startup, xAI. The offering is expected to raise tens of billions of dollars to fund ambitious plans, including launching data centers in space and colonizing the moon.

A Massive Fee Pool

Bankers estimate that if SpaceX raises the $40 billion some envision, the participating banks could split fees of roughly $400 million. The largest portions of these fees would go to the four expected lead banks: Morgan Stanley, Bank of America, JPMorgan Chase, and Goldman Sachs, as well as the individual bankers, like Grimes, who helped secure the mandates.

Deep Ties to Musk

Musk’s relationship with Morgan Stanley is extensive; both his money manager, Jared Birchall, and xAI’s CFO, Anthony Armstrong, are alumni of the bank. Grimes has spent years developing a personal rapport with Musk, becoming one of the few bankers the entrepreneur "tolerates." During his three decades at the bank, Grimes assisted Musk with the Tesla IPO in 2010 and the 2022 acquisition of Twitter.

During the Twitter deal, Grimes famously instructed his team to work in “minutes and hours” rather than days to keep up with Musk’s rapid pace. He has historically gone to extremes to win clients, such as playing hours of FarmVille to land Facebook's 2012 IPO or moonlighting as an Uber driver to secure a role on that company’s 2018 offering.

The Government Detour

Grimes left Morgan Stanley a year ago when Musk launched the Department of Government Efficiency (DOGE). He took a role leading the Commerce Department’s Investment Accelerator, reporting to Commerce Secretary Howard Lutnick. Even after Musk left Washington after six months, Grimes remained to lead President Trump’s “Invest in America” push, which included helping the government take a 10% stake in Intel.

A Record Year for IPOs?

While the U.S. IPO market was relatively quiet during Grimes's time in government, 2026 has the potential to be a record-breaking year. In addition to SpaceX, other major technology firms like OpenAI and Anthropic are also considering significant market debuts.

Inside Hyderabad 500075: India’s Property Hotspot

The pincode had the highest residential sales by value in the country in 2025.

Short Story

• THEN: Hyderabad’s real estate market peaked in 2005–07 after the IT boom but faced setbacks during the 2008 economic slowdown and Telangana’s statehood struggle.
• WHAT: Both housing and commercial markets have bounced back on a wide NRI buyer base, local spending power, and demand for homes, offices, and Global Capability Centres (GCCs).
• NOW: Rapid growth has been further fueled by government support and a strong business ecosystem that continues to draw in national developers and investors.

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Giant mounds of broken black stones and rocks, typical of the Deccan Plateau, lie beside the eight-lane Nehru Outer Ring Road in Hyderabad. Nearby, the tips of tall towers and yellow construction cranes are visible from afar, marking the rise of Neopolis in west Hyderabad. Spread across over 530 acres, Neopolis—which means "new city" in Greek—looks like an urban center being built from scratch.

Hyderabad’s "Manhattan"

Property agents are marketing this area as Hyderabad’s own Manhattan. What was empty land just a few years ago is now a site of frenzied activity, featuring branded residences, premium offices, high-end homes, and a World Trade Centre. Major players like MyHome Group and Godrej Properties Ltd are either launching massive projects or aggressively buying land here.

The Telangana government’s vision for Neopolis is a mixed-use district with unlimited floor space index (FSI), meaning there is no vertical limit. This policy inspired the tagline on the government website: "Time to go beyond the skies." Officials believe Neopolis will eventually outperform established hubs like Mumbai's Bandra Kurla Complex (BKC).

Record-Breaking Numbers

According to data from Liases Foras Real Estate Research, 500075 (Hyderabad Urban)—which covers Neopolis, Kokapet, and Narasingi—was the pincode with the highest residential sales by value in India in 2025. Last year, residential stock worth ₹24,341 crore was sold in this area, surpassing two high-performing Gurugram pincodes.

This boom is driven by several factors:

• A strong non-resident Indian (NRI) buyer base.
• Significant spending power of local buyers seeking larger homes.
• Thriving demand for offices and Global Capability Centres (GCCs).
• A proactive government push to market and develop prime land.

Highs, Lows, and the Great Revival

Following the IT boom of the 1990s, Hyderabad's market peaked between 2005 and 2007. However, the 2008 global slowdown and the subsequent Telangana statehood struggle caused the market to collapse. While other Indian cities recovered, Hyderabad remained a laggard for years as the bifurcation struggle continued.

The eventual formation of Telangana led to a massive resurgence. Infrastructure quality became a primary advantage, attracting multinational firms and GCCs beyond just the IT sector. Office rentals have risen by 25–30% in recent years as demand for premium space has spiked.

The Hub for Global Captives

While Bengaluru still leads in total office leasing, Hyderabad attracted the highest share of new GCCs set up in India over the last three years. Major global names like Netflix, Eli Lilly, Costco, and Stolt-Nielsen have either recently entered or are expanding their presence in the city. Additionally, beauty giant L’Oréal recently announced it would set up its first beauty technology hub in Hyderabad with an investment of ₹3,500 crore.

Sky-High Land Valuations

The demand for land in Neopolis has led to record-breaking auctions conducted by the Hyderabad Metropolitan Development Authority (HMDA). In November 2025, a 4.03-acre land parcel was sold for ₹151.25 crore per acre, a new record for the area. Earlier, pharma firm MSN Laboratories bought land at ₹177 crore per acre, the most expensive per-acre transaction in the city's history.

National developers are racing to establish a footprint:

• Godrej Properties entered the market in early 2025 and has already sold stock worth ₹3,000 crore across two projects.
• Brigade Enterprises recently launched Brigade Gateway in Neopolis, which will feature one of the city's tallest residential buildings.
• MyHome Group has several projects lined up on 85 acres in the area, including luxury homes spanning nearly 10,000 sq. ft.

Comparison with Bengaluru

Developers note that Hyderabad is now seen as more than just a backup to Bengaluru. In terms of infrastructure, work environment, and buying capacity, some experts argue Hyderabad is currently the stronger market. While Bengaluru often struggles with monsoonal flooding and crumbling infrastructure, Hyderabad's government is praised for proactively identifying and addressing urban pain points.

Challenges Ahead

A common criticism is that growth is heavily concentrated in Western Hyderabad, leaving older parts of the city behind. To address this, the government recently approved the Hyderabad Industrial Lands Transformation Policy, aimed at converting 9,000 acres of legacy industrial land into multi-use zones. Furthermore, while the vertical boom continues, there are signs that home sales are beginning to soften after years of rapid growth.

Carlyle to buy Nido Home Fin for ₹2,100 cr

The deal for the Edelweiss unit is expected to close by 31 July 2026.

By Agnidev Bhattacharya MUMBAI

US-based asset manager The Carlyle Group Inc. will acquire Nido Home Finance Ltd, the housing loan unit of Edelweiss Financial Services Ltd, in a ₹2,100 crore deal. The Rashesh Shah-led financial services firm informed the exchanges of the agreement on Monday.

Details of the Transaction

The acquisition will be executed through investment funds affiliated with Carlyle Asia Partners—CA Sardo Investments—and Salisbury Investments Pvt., which is the family office of Aditya Puri. Puri, the former chief executive and managing director of HDFC Bank, currently serves as a senior adviser on Carlyle’s Asia private equity team.

The deal involves two primary components:

• Secondary Purchase: The funds will pick up a 45% stake in Nido from Edelweiss for ₹602 crore, involving the sale of 31.2 million shares.
• Primary Infusion: The Carlyle-backed funds will make a primary equity capital infusion of ₹1,500 crore. This includes issuing 25.7 million fresh shares to CA Sardo and 185,000 to Salisbury at a price of ₹193 per share.

Upon completion, these funds will collectively hold approximately 73% of Nido on a fully diluted basis. The issue price represents a 73% premium over the stock's closing price on the previous trading day. Additionally, the funds will receive fresh warrants priced at ₹193 apiece, and Edelweiss may receive an "upside share" if Carlyle realizes returns above a specified threshold.

Stakeholder Perspectives

Edelweiss described the transaction as a "win-win-win" for all parties involved. For Edelweiss, it advances the objective of value creation; for Nido, it provides fresh capital to reinforce growth; and for Carlyle, it facilitates entry into India’s housing finance sector.

"Housing remains a critical national priority for India, and we have strong conviction in the growth potential of the housing finance industry," said Sunil Kaul, partner and Asia financial services sector lead at Carlyle.

About Nido Home Finance

Established in 2010, Nido Home Finance (formerly known as Edelweiss Housing Finance) focuses on affordable housing and mass-market segments. Key performance metrics include:

• Assets Under Management (AUM): Currently manages assets worth ₹4,804 crore.
• Reach: Serves over 800 talukas across India.
• Financial Contribution: In fiscal 2024-25, it contributed 5.5% (₹521 crore) to Edelweiss's top line and 14% to its net worth.

Market Context

This transaction marks the second major deal in India's housing finance sector within a single week. On February 3, private equity firm Advent International announced it would acquire a 14.3% stake in Aditya Birla Housing Finance Ltd for ₹2,750 crore.

The Carlyle-Edelweiss deal is subject to regulatory approvals and is expected to close by July 31, 2026. Legal advisers for the deal included AZB & Partners for Edelweiss and Trilegal for Carlyle.

Trade Reset: US Tariff Cuts Welcome, but Energy Security Paramount

India and the United States have announced the finalization of the framework for an interim trade agreement, which serves as a precursor to a more comprehensive bilateral deal. For Indian exporters, particularly in labor-intensive sectors, this framework offers significant and meaningful relief.

Benefits for Indian Exports

The commercial upside for India is primarily on the export side of the agreement:

• Regained Competitiveness: Sectors such as textiles, gems and jewellery, and shrimp exports are expected to regain their competitive edge in the US market.
• Tariff Reductions: With US duties on Indian exports set to fall to 18%, Indian goods will become more affordable compared to those from regional competitors.
• Significant Gains: The deal is expected to benefit sectors that currently account for nearly 40% of India's exports to the US, including pharmaceuticals and electronics, which already enter duty-free.

India’s Concessions and Obligations

While the export benefits are clear, India's own concessions are broader and less precisely defined:

• Import Duties: India has agreed to eliminate or reduce import duties on almost all US industrial goods.
• Specific Purchases: New Delhi has stated its intention to purchase $500 billion worth of US energy, aircraft and aircraft parts, technology, and coking coal over the next five years.
• Agricultural Limits: The deal currently maintains protections for India's sensitive dairy and poultry sectors, though it leaves room for future negotiations on "unspecified additional products".

Strategic Concerns and "Red Lines"

The agreement is not without its strategic complexities and potential risks:

• Oil Policy: The US executive order regarding tariff rollbacks is reportedly contingent on India's commitment to stop purchasing Russian oil. This linkage has raised concerns regarding India’s strategic autonomy and its ability to source energy based on national interest.
• Policy Precedents: Some analysts warn that tying trade concessions to specific foreign policy commitments (like the purchase of Russian oil) sets an undesirable precedent for future negotiations.
• Unresolved Issues: There are still areas of ambiguity, particularly regarding agriculture, where trade agreements must balance economic engagement with the need to protect domestic food security.

Ultimately, while the interim framework provides a welcome boost to Indian exports and restores a degree of predictability to trade relations, experts emphasize that strategic autonomy remains indispensable as India continues to engage with Washington on a broader Bilateral Trade Agreement.

DIIs DOMINANCE

In a significant structural shift, domestic institutional investors (DIIs) have now overtaken foreign institutional investors (FIIs) in Nifty50 ownership, reflecting the deepening of India’s domestic capital base. Gaurav Bhandari, CEO of Monarch Networth Capital, noted that while the shift was accelerated by cyclical global risk-off sentiment, it represents a fundamental change in market dynamics.

Over the last few years, domestic institutions have become a permanent and predictable source of capital, driven largely by SIP-led mutual fund inflows, insurance allocations, and retirement savings. This rise in domestic influence comes as many actively managed equity schemes faced a slowdown in collections due to high valuations, sluggish corporate results, and ongoing FII selling.

While the broader trend shows DIIs taking the lead, recent market momentum has also been supported by a resurgence in FII inflows and rupee appreciation, even as intermittent profit-booking remains visible across various sectors. Market participants are now looking toward global data releases and the final leg of Q3 earnings to determine the next phase of this rally.

India Under Pressure to Toe US Line on Oil

Joe Biden never thumped his chest and demanded that India immediately halt buying Russian crude oil. He understood that forcing large volumes of oil off the global market risked a price shock that could ripple through economies worldwide. Those fears were well-founded, as Brent crude surged past $100 a barrel following Russia’s invasion of Ukraine. During that period, India emerged as a crucial shock absorber, buying discounted Russian crude and exporting refined fuels that helped stabilize global prices.

Fast forward to 2026, and the White House’s current occupant believes the oil game has changed. With crude prices hovering around $60 a barrel and soft demand, Donald Trump appears willing to gamble by ordering India to cut Russian oil purchases to zero. Despite discounts of up to $26 a barrel, India’s crude purchases from Russia are expected to fall to approximately 500,000 barrels a day in March and April, leading to fears that the country has caved to US demands.

India currently finds itself under intense pressure in US trade negotiations. While New Delhi aims to present itself as a natural destination for companies diversifying away from China, this pitch is weakened by prolonged trade confrontations with Washington. Almost the entire world, including the EU, UK, Japan, and Southeast Asian rivals, has already struck tariff deals with the US.

In the textile sector, India received a "rude shock" when the US granted special zero-tariff treatment to Bangladesh for garments made with US cotton. In contrast, Indian exports face an 18 per cent duty even when using the same US cotton, making Bangladesh a far more attractive sourcing option. Additionally, India’s pledge to buy $500 billion worth of US goods over five years remains ambitious, given it imported only $41 billion in the most recent financial year. While big-ticket items like Boeing aircraft and defense equipment are cited as potential contributors, many Indian carriers rely heavily on French Airbus fleets, and US armaments often carry restrictive political and operational conditions.

On agriculture, India has moved cautiously, cutting tariffs on fruits and nuts while keeping dairy, poultry, and meat protected. However, Russian crude remains the greatest controversy. Flows from Russia dropped from nearly 2 million barrels a day to 1.2 million in December and January and are likely to fall further, reshaping refinery economics.

Trump has issued a blunt warning that continuing to buy Russian oil could trigger the return of 25 per cent tariffs. Strategist Brahma Chellaney noted that by lifting the "Russian oil penalty" only on the condition that India cease all imports from Russia, Washington has "effectively weaponised trade to constrain Indian foreign policy".

For years, New Delhi insisted on buying the cheapest crude available. Being forced toward costlier oil from the US or Venezuela adds freight costs and involves grades often ill-suited to Indian refineries. Across both trade and energy, India is increasingly being asked to accept US diktats in exchange for erratic market access.

Author: Paran Balakrishnan

FDI in banking sector drops from $898 m to $115 m in 2 yrs

Foreign direct investment (FDI) equity inflow in the banking sector has seen a sharp decline, falling to $115 million at the end of FY25 from $898 million in FY23, the Finance Ministry informed the Rajya Sabha on Tuesday.

In a written reply, Minister of State for Finance Pankaj Chaudhary described FDI as a major source of non-debt financial resources vital for economic development. He noted that FDI infuses long-term sustainable capital into the economy and facilitates technology transfer, greater innovation, competition, and employment creation.

Total FDI inflow consists of:

• Equity inflow
• Equity capital of unincorporated bodies
• Re-invested earnings
• Other capital

Chaudhary also highlighted the regulatory framework governing these investments. According to the Reserve Bank of India’s (RBI) Master Directions, acquiring or controlling 5 per cent or more of the paid-up capital or voting rights in a banking company requires prior approval from the RBI. Additionally, the RBI continues to issue guidelines to regulate priority sector lending (PSL), which is applicable to all commercial banks.

Author: Our Bureau, New Delhi