Newspaper Summary 270226

 

Compensate content creators: IT Minister to online platforms

GIVES ULTIMATUM. If not done voluntarily, there are legal ways to enforce it: Vaishnaw

Our Bureau New Delhi

Digital platforms must ensure fair revenue share with news publishers and content creators, Union IT Minister Ashwini Vaishnaw said on Thursday. If this is not done voluntarily, there are clear legal pathways, already shown by other countries, to mandate them, he added.

Speaking at the Digital News Publishers Association (DNPA) Conclave 2026, Vaishnaw said, “Platforms must share revenue in a fair way with the people who are creating the content, whether it is news persons, conventional media, creators sitting in far-flung areas, influencers, the professors and researchers who are disseminating their work using the platforms... This is a major concern that the entire society is raising. Everywhere, the principle now has to be set right”.

EQUITABLE SHARE

“I will request all the platforms to rethink your revenue sharing policies. And if this is not done voluntarily, there are so many countries which have shown the path to get it done in a legal way,” the Minister said. News organisations and industry bodies have been raising the issue of equitable revenue share with tech giants for some time now. Several countries, such as Australia and Canada, have either enacted laws, while others have brought in different frameworks that mandate or encourage revenue-sharing arrangements between tech giants and news publishers.

Pointing out that original content had powered society’s growth historically, he cautioned that if intellectual property is not respected and fairly compensated, the growth of society, science, technology, arts and literature will all be stunted. Simultaneously, Vaishnaw stated that platforms must take responsibility for the content hosted by them and proactively take measures to ensure online safety of children and citizens from harmful or misleading content.

He added that every institution is based on the fundamental tenet of trust, which is under threat particularly from deepfakes, disinformation and synthetically generated content using faces and voices of public figures.

CONTENT RESPONSIBILITY

The Minister said platforms are no longer pure intermediaries but hosts which need to take responsibility. “Today, platforms have become powerful media outlets. And like media organisations, platforms must take responsibility for the content that is hosted by them. Non-adherence to these principles will definitely make them responsible because the nature of the internet has changed now".

“Also, synthetic content should not be generated without the consent of the person whose face or voice or personality has been used to create the content. Time has come to make that big inflectional change,” Vaishnaw stated.

NRI deposit inflows fall 16% in FY26 due to weak rupee

Yashaswani Chauhan New Delhi

NRI deposit inflows declined 16 per cent to $11.2 billion during April-December FY26, reversing a sharp 42.8 per cent surge to $13.33 billion in the corresponding period of FY25. The moderation follows two years of strong growth where inflows rose 72.7 per cent in FY24 and 42.8 per cent in FY25, marking a recovery from a 61.1 per cent contraction in FY22.

“Growth in NRI deposits has always been very episodic and inconsistent,” stated Anil Sood of the Institute for Advanced Studies in Complex Choices. He noted that after stabilising around $6 billion annually between 2017-18 and 2022-23, flows rose to $9 billion and $13 billion in the following years. The current reduction may simply be bringing flows back to a normal level of less than $10 billion.

CURRENCY EXPECTATIONS

Vivek Iyer, Partner and Financial Services Risk Advisory Leader at Grant Thornton Bharat, attributed the slowdown to expectations of a weaker rupee amid global geopolitical uncertainties. He described it as a "timing game" to ensure more rupees are received for the same amount of dollars, suggesting the change is tactical rather than structural.

FCNR (B) DEPOSITS

Category-wise data indicates the overall decline was led by FCNR(B) accounts, where inflows dropped sharply by 68.4 per cent year-on-year to $2.04 billion in FY26. These are foreign currency-denominated term deposits that protect investors from exchange rate risks.

In contrast, other categories saw growth:

• NRE deposits: Grew 41.7 per cent to $5.06 billion in FY26. These rupee-denominated accounts are tax-free and fully repatriable.
• NRO accounts: Expanded 24.3 per cent to $4.09 billion. These are used for managing income earned in India, such as rent or dividends.

REPATRIABLE SENSITIVITY

Nearly 80 per cent of NRI deposits are held in repatriable accounts (FCNR(B) and NRE), making them highly sensitive to interest rate differentials and currency expectations. Historically, inflows have been supported by macroeconomic stability and higher interest rates, occasionally driven by RBI incentives.

Experts noted that while FCNR(B) deposits are more volatile and yield-sensitive, NRE accounts tend to be more stable, often held by workers with long-term ties to India. During phases of rupee depreciation, NRE accounts become more attractive as they translate into higher rupee returns for the same dollar inflow.

Looking forward, analysts expect flows to stabilise. Sood cautioned that stable flows depend on a stable INR and the RBI maintaining policy rates, noting that rate cuts or further depreciation expectations could deter future deposits.

Japanese auto firms plan green investment in UP

S Ronendra Singh New Delhi

Automobile and auto components companies like Suzuki Motor (SMC), Honda Motor (HMC) and Minda Corporation have offered to invest in Uttar Pradesh towards green mobility and sustainable industrial growth. Senior leadership of these companies met Uttar Pradesh Chief Minister Yogi Adityanath in Japan and discussed future plans. For instance, Yogi met Toshihiro Suzuki, President of SMC, and Hisashi Takeuchi, Managing Director and CEO, Maruti Suzuki India, who proposed a compressed biogas plant.

4 DAY VISIT

As per the State government, during his four-day visit, the Chief Minister held successful investment road shows in Singapore and Japan. In Singapore, the State government received investment proposals worth around ₹1 lakh crore and signed MoUs worth ₹60,000 crore. Similarly, it received investment proposals worth ₹1.5 lakh crore and inked MoUs worth ₹90,000 crore in Japan.

“Discussions focused on Suzuki’s proposed entry into the renewable energy sector through a compressed biogas plant, along with expansion of its supplier ecosystem to strengthen the automotive value chain and generate employment,” Yogi said in a social media post. He apprised the delegation about land parcels available at competitive rates for auto clusters, specifically offering land in the Bundelkhand Industrial Development Authority for renewable energy projects.

HONDA'S UP FOOTPRINT

Similarly, Honda Motor, which has housed its first factory and corporate office in Greater Noida for the last 30 years, stated that 30 per cent of its investment in India had been made in Uttar Pradesh. Though Honda Cars India has discontinued making cars in the Greater Noida factory (moving production to its Tapukara plant in Rajasthan), it still retains its corporate headquarters in Greater Noida.

“Uttar Pradesh is the home of Honda Motor Company in automobiles as well as the byproducts... We see a lot of potential in Uttar Pradesh,” said Noriya Kaihara, Director, Executive Vice President and Representative Executive Officer, HMC.

New GDP series to use 600 item level data

FOCUS ON ACCURACY. The revised series will adopt double deflation for sharper growth estimates

Shishir Sinha New Delhi

The Ministry of Statistics will significantly expand the data used to calculate India’s Gross Domestic Product (GDP) in the upcoming series with base year 2022-23, aiming to improve the accuracy of growth estimates. The revised series, scheduled for release on Friday, will use nearly 600 item level data indicators under the double deflation method, more than three times the current 180 level data used for price adjustment.

NEW GROWTH DATA

A senior official said once the national GDP numbers under the new base year are released, work will begin on compiling revised growth data for States and Union Territories.

At the heart of the revision is the shift to full adoption of the double deflation method for key sectors such as manufacturing and agriculture and the complete elimination of the single deflation method. Under this approach, the value of output and the cost of inputs are adjusted separately for price changes before calculating real growth. Previously, India used a mix of single and double deflation; the new series expects to make GDP estimates more robust and internationally aligned.

BROADER PRICE BASE

Statisticians will now track a much wider basket of goods and services to strip out inflation effects. While the Wholesale Price Index (WPI) will continue as the main deflator until its own base year is updated, the expansion to 600 item level indicators will improve the reliability of real growth numbers, especially in sectors where input costs fluctuate differently from output prices.

SURVEY-BASED DATA

The new series will rely more heavily on administrative and survey-based data rather than proxy estimates. Key changes include:

• Household sector estimates: Now based on actual annual surveys like the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and the Periodic Labour Force Survey (PLFS).
• GST data: Used extensively to allocate private corporate sector output across States and cross-verify estimates.
• E-Vahan data: Will help estimate household spending on road transport services.
• Public Finance Management System (PFMS): Data will be used to compile Central government expenditure and distribute it across States.

CHANGES AFOOT

• Annual quarterly estimates for 2022-23 to 2025-26 are to be released on Friday.
• Back series data are expected by December 2026.
• The revised series is in sync with international statistical standards.
• Major methodological improvements include a reduction in allocation-based methods in favor of direct estimation for some sectors and a reduction in reliance on fixed ratios and proxies.

Securities Bill has a problematic Section

ANTI-MARKET. An omnibus exemption for public sector companies from governance norms risks weakening accountability and competitive neutrality

MS SAHOO & CKG NAIR

The Securities Market Code Bill, 2025 is a significant attempt to modernize India’s securities law architecture, yet Section 65(2) risks diluting the reformist ethos the Bill otherwise seeks to advance. This specific section empowers the Centre, in the "public interest," to exempt any listed public sector company (PSC) from any or all requirements relating to capital issues, corporate governance, disclosures, takeover regulations, and public shareholding norms. In effect, it enables the executive to suspend core market disciplines for an entire ownership class, striking at the philosophical core of India’s post-1991 economic reforms.

SHORT SHRIFT TO NEUTRALITY

A central pillar of Indian economic reform has been competitive neutrality, where public and private enterprises in the same market are subject to the same laws and governance expectations. Section 65(2) departs from this logic by creating a dual regime where private companies remain bound by strict norms while listed PSCs may be relieved from them through executive notification. This disturbs the level playing field and injects uncertainty into regulatory expectations.

Furthermore, the provision creates an anomalous relationship between market access and market discipline. While listed PSCs benefit from attracting institutional investors and market valuation to support disinvestment, they may now be exempted from the very rules—such as public float requirements and takeover protections—that underpin investor confidence. To enjoy market benefits without being subject to its discipline is to create "regulatory free riders," which can irretrievably weaken long-term confidence in the system.

REGULATORY AUTONOMY

The justification of "public interest" cannot be presumed solely based on state ownership, especially when listed PSCs compete directly with private firms in sectors like banking, energy, and infrastructure. If a public sector steel company and a private peer access the same capital market, the rationale for differential compliance becomes difficult to sustain.

Independent securities regulation evolved to ensure rule-making remains stable and insulated from short-term pressures. The prospect of selective exemptions may unsettle the perception of global institutional investors who value consistency. Moreover, there is little evidence that regulatory relaxation enhances enterprise value; markets consistently reward governance quality, board independence, and credible minority shareholder protection.

NEED FOR SAFEGUARDS

Minority shareholders in PSCs, including retail investors and pension funds, rely on these standards for protection. When the state acts as both the controlling shareholder and the rule-maker, these safeguards assume even greater significance.

The Bill presents an opportunity to reinforce India’s commitment to competitive neutrality. If public enterprises seek capital from public markets, they must accept the accompanying discipline. Ownership itself should not be the basis for differential treatment; instead, genuine sector-specific challenges should be addressed through transparent consultation or targeted legislative changes applicable to all similarly situated entities.

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Sahoo is former Chairperson, Insolvency and Bankruptcy Board of India; Nair is former Director, National Institute of Securities Markets.

The large US public debt, and the way forward

MONEY MATTERS. More than financing fiscal deficits, the solution lies in cutting them

GURBACHAN SINGH

The tariffs in the US have been repeatedly in the news, and understandably so. However, there is another very important issue which is, in the process, getting much less attention. This is the very large US public debt, which now stands at about 120 per cent of the GDP. The interest payments on the public debt now exceed the military spending. The international reserve currency status for the US is increasingly in question; the sell-off of US government securities by China over time is just one prominent example. How is the US handling the whole situation?

For a clear understanding, we need to first go back in time. In the aftermath of the Global Financial Crisis in 2007, the US public debt rose substantially. However, the interest cost was low for a long time. This is because the Fed used quantitative easing. The so-called base money expanded massively and the Fed bought government securities on a large scale. Most of the additional base money issued by the Fed was, in turn, held by the banks as reserves. The Fed started paying interest on reserve balances in October 2008, which made reserves relatively attractive and helped finance fiscal deficits.

THE LCR MANDATE

In 2015, the liquidity coverage ratio (LCR) was initiated and it was in force fully by 2019. The banks needed to hold high quality liquid assets. Basically, banks are required to hold a good amount of US government securities directly, or indirectly through their holdings of reserves with the Fed. The latter, in turn, holds government securities. Though the LCR requirement is a prudential norm, this too has helped in financing the fiscal deficits.

It is true that the high quality liquid assets actually held by banks are, in any case, significantly more than the requirement. Nevertheless, the regulation matters because the assets held for this reason are effectively illiquid in the normal course of banking! So, additional reserves and government securities are needed for normal banking. This is partly the reason for “excess” liquid assets with banks; the other reason was that the credit off-take was not strong for many years.

Completing the story on base money, though this expanded massively, the time path of money in circulation with the public hardly changed till the time of the Covid-19 crisis. Relatedly, the time path of bank deposits did not rise for a long time. On the assets side, the time path of bank loans was at a lower level, given that banks held large reserves. This is consistent with the relatively low growth of GDP for many years. Though the banks’ direct and indirect holdings of the US public debt are not massive, they are large enough to provide confidence at the margin to the other main buyers. The prices of US government securities did not fall substantially and consistently, which is to say that the yields did not jump even though the debt was large. This contributed synthetically in meeting the sustainability condition for public debt.

After the crisis due to Covid-19 showed up, conditions changed. Though the interest rates fell further for a while, there was soon good economic recovery. Relatedly, the interest rates rose and so did the interest burden on the existing debt. Moreover, the additional debt was very large—the treasury sent cheques to its citizens.

SITUATION DETERIORATING

Overall, the situation on the US debt front and its financing has been deteriorating. The voluntary demand for reserves by banks is softening, which is to say that their indirect demand for the US government securities has been weakening. Again related, the Fed had been moving for some time to quantitative tightening, which is a reversal of quantitative easing. Also, the treasury may be now somewhat increasing the fiscal deficit with its recent Big Beautiful Bill.

It is true that some new positive developments too have been happening for the financing of the public debt. The mortgaged-backed securities that have been held by the Fed are maturing, and some reinvestment is being done in the US government securities. Also, there are new buyers of government securities like the companies that issue Stablecoin. The GENIUS Act, 2025 helped here though the amount reached so far is small. The quantitative tightening has now been stopped by the Fed. The US leadership may do more to manage the situation.

It may exercise various selling or licensing rights, and even use its gold reserves. And, the high inflation seen over the period 2021-23 may happen yet again in future. This could again help in eroding a part of the real debt through the non-transparent ‘inflation tax’. It has helped that hedge funds are now holding a good amount of the long-term US government securities, but we have derivatives and short-term financing, which have their own fragility issues. Relatively more stable, the Fed uses ‘reserve management’ and the treasury intervenes now and then to deal with some frictions.

The point is that the focus has been, by and large, on financing the fiscal deficits. However, the basic policy solution lies in cutting down the fiscal deficits. This can be done in two ways: the treasury needs to cut public spending on some fronts, and it can raise the tax revenues, given that the tax-GDP ratio is low compared to many other developed countries. Otherwise, the debt is very hard to sustain without serious adverse implications. There is scope for course correction—more so when the US has a strong and innovative economy. But it is not clear if the correction is happening anytime soon.

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The writer is an independent economist. He taught at Ashoka University, ISI (Delhi) and JNU.

Gift City goes global: Cyprus’ EllinasFin to be first overseas equity to list on NSE IX

DUAL LISTING. Positioned as a test case for such cross-border capital flows through IFSC

BILATERAL AGREEMENT. The development follows the MoU signed in June 2025 between NSE IX and the Cyprus Stock Exchange during Prime Minister Narendra Modi’s visit

Avinash Nair Ahmedabad

In a milestone for Gift City’s evolving offshore capital markets, Cyprus-based financial services company Ellinas Finance will soon list its equity shares on the NSE International Exchange (NSE IX), marking what exchange officials describe as the first cross-border equity listing between India and Cyprus.

“This is the first cross-listing in Gift City,” said V Balasubramaniam, MD and CEO of NSE IX. He told businessline that the Cyprus-listed company will debut on NSE IX next week. “We are going through the listing documents. We are expecting to complete the listing in the next one week,” he added.

Echoing the significance, Viraj Kulkarni, Honorary Consul of the Republic of Cyprus in Mumbai, while speaking at the Global Securities Markets Conclave 2.0 in Gift City on Thursday, said, “This in effect is the culmination of the MoU signed and announced last June in Nicosia by the leaders of both the countries”.

Already listed on the Cyprus Stock Exchange (CSE), Ellinas Finance will now have its equity shares admitted for listing on the NSE IX at Gift City, creating a dual listing structure that allows the company’s shares to be listed on two separate exchanges in different jurisdictions. The Ellinas Finance listing is being positioned as a test case for such cross-border capital flows through India’s International Financial Services Centre (IFSC).

The development follows the MoU signed between NSE IX and the CSE during Prime Minister Narendra Modi’s visit to Cyprus. The agreement laid the groundwork for cooperation on cross and dual listings, joint product development, research collaboration, fintech engagement, and investor access to a wider pool of financial instruments.

According to the CSE, Ellinas Finance is currently headed by Chairman Demetris Petrides. The main activities of the company, founded in 1992, include providing short- and medium-term lending to individuals and companies through specially-tailored personal and business loans, financing of investor accounts, factoring services, and private equity, among others.

“Cyprus currently holds the presidency of the Council of the European Union. Last year, it was the second-fastest growing country by GDP in Europe. Cyprus ranks among the top 10 countries from which FDI comes to India — a total of $15.3 billion and in the last six months $1.5 billion has been committed,” Kulkarni added.

OTHER PACTS

On Thursday, the Taiwan Stock Exchange signed bilateral MoUs with NSE IX and India INX stock exchanges in Gift City. “The MoU with Taiwan Stock Exchange is more exploratory in nature. Taiwan has a number of larger semiconductor firms whose subsidiaries have operations in India. We are exploring to see if some of them can get listed here,” Balasubramaniam said.

A similar MoU was signed between Afrinex, Mauritius and NSE IX. Afrinex is a Pan-African financial exchange headquartered in Mauritius, established to operate as a multi-currency, multi-asset securities exchange serving investors and issuers across Africa and beyond.

‘Luxembourg facilitates European, global investments into India’

Gilles Roth, Minister of Finance, Luxembourg

Avinash Nair Ahmedabad

Positioning itself as a gateway for European and global capital into India, Luxembourg on Thursday outlined a five-point roadmap to deepen financial cooperation. Speaking at the Global Securities Markets Conclave 2.0 in Gift City, Gilles Roth, Minister of Finance, Luxembourg, stated, “This is a historic opportunity to work with India and we should seize this opportunity. India’s market and growth story is remarkable”.

STRATEGIC COOPERATION

Roth noted that an EU-India trade deal would represent a “strategic step forward,” increasing business predictability, deepening investment links, and creating more structured economic cooperation. He emphasized that such a deal would lead to “fewer frictions and more confidence and more incentives to build long-term partnerships”. As India’s capital markets expand and funding needs rise, Luxembourg positioned itself as a platform to channel international capital into the country.

“Luxembourg is a cross-border financial centre by design. We specialise in building bridges between countries, investor bases and real economy needs,” Roth said. He highlighted that Luxembourg hosts around €8 trillion in assets under management, distributes funds in over 80 countries, and represents approximately 60 per cent of global cross-border fund distribution.

The Minister identified two primary options for cooperation:

• Supporting Indian institutions seeking European and global investors through Luxembourg structures and platforms.
• Facilitating European and global investments into India.

5-POINT PLAN

Roth outlined a specific five-point framework designed to deepen financial integration between the two nations:

1. Investment Connectivity: Focusing on investment fund and asset management connectivity.
2. Reducing Friction: Centering on reducing friction for high-quality issuers and investors, including facilitating sustainable listings and improving market access mechanisms.
3. Institutional Capital: Channeling European institutional capital into India’s large investment requirements by making projects “investable, transparent and scalable”.
4. Digitalisation: Targeting collaboration in the digitalisation of financial markets, including tokenisation and the use of AI in capital market infrastructure.
5. Policy Dialogue: Calling for a more structured and operational policy dialogue aimed at strengthening regulatory cooperation and making frameworks more effective for cross-border market participants.

Slack demand, competition weigh on onion exports

ERODING SHARE. Bangladesh and Saudi Arabia cut imports from India, while Pakistan gains on price edge; currency advantage boosts rival suppliers

Vishwanath Kulkarni Bengaluru

India’s onion exports have come under further pressure this financial year, reflecting a sustained decline driven by changing global market dynamics. Shipments have slowed primarily due to reduced off-take from key buyers such as Bangladesh and Saudi Arabia, as these countries increasingly rely on their own domestic production, according to exporters.

POLICY IMPACT

This structural shift in demand has curtailed shipment volumes even as competitive pressures weigh on exports. The weaker currency of Pakistan, a major competing origin, has enhanced its price competitiveness in international markets, making it more difficult for Indian exporters to defend market share, particularly in price-sensitive destinations.

“Demand is there, but we have lost some markets," said Ajit Shah, President, Horticulture Exporters Association. "Bangladesh, one of the biggest buyer, is not buying from us. Lot of countries have developed their own crop; now even Saudi, a good buyer, is not buying”. He added that an Indian export ban imposed 2-3 years ago caused traditional buyers to shift to other suppliers like Pakistan, Sudan, and Yemen.

Earlier, these competing countries exported in small quantities for only 2-3 months a year, but they are now exporting for 6-7 or even nine months annually. Shah noted that while Indian onion quality remains superior, every market is now price-sensitive, leading to a decrease in India's share of demand.

According to DGCIS data, India’s onion exports during April-December of the current financial year registered a 22 per cent decline in value terms at $298.69 million compared to $380.08 million in the corresponding period last year due to lower prices.

VOLUMES UP

Despite the value decline, shipment volumes during this period were up 37 per cent at 11.33 lakh tonnes, compared to 8.26 lakh tonnes the previous year. Onion shipments have generally trended downward in recent years following a ban from December 2023 to March 2024, though all restrictions were removed by March 2025 as supplies improved.

Shah further explained that when Bangladesh lacks its own crop, it now buys maximum quantities from Pakistan, while Saudi Arabia is purchasing from Yemen and Sudan.

“Our prices are similar or up by say $10-50 per tonne, when compared with onions from Sudan or Yemen," Shah stated. "However, we are expensive in comparison with Pakistan as there is a vast difference in their dollar rate and our rate. Our dollar-rupee rate is 90.5, while their dollar to Pakistan rupee rate is 280". This weaker currency gives rival suppliers a significant edge. Currently, Indian exports continue to destinations like Sri Lanka and West Asian countries.

RABI ARRIVALS

Trade sources indicated that prices have eased in recent weeks with improving arrivals. Per Agmarknet data, modal prices are hovering between ₹775-1,500 per quintal in Maharashtra, the major producing State. All-India average wholesale mandi prices eased from ₹1,410.44 per quintal on February 17 to ₹1,085.64 on February 24. Shah noted that the upcoming rabi onion crop is expected to be bigger than last year.