Newspaper Summary - 070626

 

Tractor dumping puts India-China trade ties to test

The Indian government has launched an investigation into the alleged dumping of electric tractors from China. This probe matters because it could become a broader test of India-China business ties, with implications extending far beyond the tractor market.

Mint Primer

Why has the Centre launched the probe? The Directorate General of Trade Remedies (DGTR) under the commerce ministry announced the probe on 30 June following a request from IPLTech Electric Pvt. Ltd (Montra Electric), the clean mobility arm of the Murugappa Group. The company claims that Chinese electric tractors—used for logistics and goods transportation—are hindering the development of domestic models. The investigation will examine semi- and fully-knocked-down tractor units assembled in India, as well as fully imported models.

Why is the timing significant? The investigation comes during a revival of India-China business relations, as New Delhi has been gradually allowing investments to flow in from China and relaxing Press Note 3 norms introduced in 2020. With reports indicating India was set to approve a $370 million investment from a company backed by China’s Geely Auto, any adverse findings in this dumping probe could "turn the clock back" on these improving business relations.

How does China shape India’s EV push? China currently has a stronghold in the Indian EV sector, supplying everything from batteries and rare earths to motors, cheap scooters, and tractors. Many Indian efforts to localize technology rely on Chinese partnerships. Because Chinese players lead in key technologies, they can offer products at much lower prices, making them highly attractive in price-sensitive rural and semi-urban markets.

What does the probe mean for the industry? Action to halt imports could significantly boost the prospects of domestic manufacturers such as Sonalika Tractor, Montra, and AutoNxt, which have electric capabilities but have not yet scaled sales. Vahan data shows that in a market of nearly a million tractors, India has sold only about 35 electric tractors. The Centre has expressed a desire to reduce diesel-guzzling tractors in favor of electric models.

Can the problem be wider than electric tractors? Yes. Other products, such as slow-speed electric two-wheelers, are also seeing a surge in imports. In 2025-26, China flooded the Indian market with over 1 million units of slow-speed electric scooters.

El Niño set to slam wind power output

By Rituraj Baruah & Vijay C. Roy
New Delhi

Low wind speed in peak June-September season to hit output

El Niño is typically linked to weaker rains and slower farm activity. To make matters worse, the prevailing weather pattern could also leave India's power sector with less wind to work with this year.

Lower wind speeds during the peak June-September season are expected to weigh on wind power generation, just as India's electricity demand is projected to hit a record high, according to three officials in the government and the industry. This comes at a time when low rains are already putting pressure on hydel power output.

The risk is significant for India, where wind power accounts for 56.8 gigawatts (GW), or over a tenth of the country’s total installed power generation capacity of 520GW. It also comes at a time when the power sector is already under pressure—hydro power has been hit by a weaker monsoon, while the Central Electricity Authority has projected a record peak power demand of 272GW this year, after it hit an all-time high of 270.8GW in May.

The country's wind sector, meanwhile, continues to grapple with land acquisition hurdles, right-of-way issues, squatters on high wind-potential sites, lack of grid connectivity, unsigned power purchase agreements, and challenges in scheduling and forecasting wind energy.

“The key wind power generating states, including Gujarat and Madhya Pradesh, may witness less rains and wind this monsoon. So, in regions where the CUF (capacity utilization factor) is usually about 38%, we may see a decline to 31% in the coming months,” said one of the officials.

Another official stated that if wind power output is hit, India’s thermal (coal) power generation will have to be ramped up to meet demand. According to climate experts, El Niño weakens atmospheric circulation, reducing wind speeds across several regions.

Srivatsan Iyer, global CEO of Hero Future Energies, noted: “The El Niño years have historically coincided with weaker monsoon winds, and since June-September is peak generation season for Indian wind assets, output can moderate during these phases". He added that the compounding effect of dipping power generation and simultaneous demand spikes is the "real red flag".

Akshay Hiranandani, CEO at Serentica Renewables, said it would be premature to assess the precise impact now, as conditions are yet to fully unfold. However, M.P. Ramesh, former executive director at the National Institute of Wind Energy, cautioned that quantification is difficult, as lower rainfall does not always mean a commensurate fall in wind speed.

Centre to count public asset upgrades, retrofits as capex

The Centre will also introduce expenditure heads for digital and ICT equipment from FY28

Priyanka Sharma & Ramita Mishra New Delhi

The Centre is set to widen the scope of what counts as capital expenditure from 2027-28 by including spending on rehabilitating, retrofitting and upgrading public assets, according to two officials close to the development. The step is aimed at better reflecting the government’s growing investments in productive assets and improving the quality of expenditure reporting. It comes as the Centre has continued to rely on public investment as a key driver of economic growth, with annual budgetary allocations for capex rising sharply over the past five years.

The revamped expenditure rulebook will also introduce dedicated expenditure heads for digital equipment and information, computer and telecommunications (ICT) equipment. This will allow the government to separately account for investments in software, ICT equipment, and telecommunications infrastructure alongside traditional infrastructure assets such as roads, railways, and power projects.

Accounting Changes

“The core objective is to present a more comprehensive picture of public investment and support the government’s infrastructure-led growth strategy,” one official stated. Under the revised framework:

• Digital items are treated as revenue expenditure if they cost ₹1 lakh or less, or have a useful life of up to three years.
• ICT equipment, including hardware, telecom gear, and software, must be classified as capex if it costs more than ₹1 lakh or has a useful life exceeding three years.

The central government has earmarked a record ₹12.22 trillion for capex in the Union Budget 2026-27. This is equivalent to 3.1% of GDP and is approximately 11.5% higher than the revised estimate of ₹10.96 trillion for FY26.

Implementation and Scope

The revised accounting framework will take effect from FY28, allowing ministries time to align their financial management systems. Under this framework:

• Expenditure on rehabilitation, overhaul, retrofitting, and upgrading public assets will be booked as capex.
• Routine repair and maintenance will continue to be treated as revenue expenditure.

This classification will apply to a broad range of infrastructure, including:

• Strengthening and widening highways and bridges.
• Mid-life rehabilitation of railway tracks, locomotives, and rolling stock.
• Modernization of airports and ports.
• Renovation and capacity enhancement of power plants.
• Refurbishment of irrigation canals and dams.
• Retrofitting government hospitals and public buildings for safety and energy efficiency.

Such expenditure extends the productive life, capacity, or efficiency of an asset and therefore represents investment rather than consumption, according to the second official. By recognizing these outlays as capex, the government expects to present a more realistic assessment of investments made in modernizing public infrastructure rather than only focusing on new assets.

Saudi Arabia trims main oil price to rare discount as market dives

Saudi Arabia has made significant reductions to its primary crude oil prices for buyers in Asia, selling barrels at a discount for the first time since the 2020 price war. This move comes as a surge in global supply intensifies competition for buyers.

State-owned producer Saudi Aramco is lowering the price of its Arab Light oil for the upcoming month by $11 a barrel, resulting in a $1.50 discount over the regional benchmark. Historically, the company has only sold this grade at a discount during price wars in 2015 and 2020.

Market Dynamics

The price retreat highlights the increasing volumes of oil available on global markets. Several factors are driving this supply surge:

• US-Iran Peace Deal: The interim agreement has allowed Gulf producers to ramp up exports.
• Strait of Hormuz: A "flood of trapped barrels" is now escaping through this vital waterway.

Impact and Outlook

The price cut—the largest in at least 26 years—was more aggressive than the $8 decline anticipated in a Bloomberg survey. This follows a period of elevated prices during the Iran war, when disruptions in the Strait of Hormuz restricted Saudi flows.

This aggressive pricing strategy raises questions about whether other West Asian producers will be forced to implement steep price cuts to compete for customers who are currently inundated with supply.

India for a Brics virtual working group to combat drug trafficking

Guwahati: India on Monday proposed a dedicated virtual working group to address evolving trends in narcotics trafficking at a two-day meeting of the heads of anti-drug agencies from Brics member countries here. Narcotics Control Bureau (NCB) director general Anurag Garg said at the inaugural event of the meet that the “emergence of modern, highly sophisticated methods of trafficking has turned what was once a localized problem into a hyper-connected global threat”. —PTI

Check how your NPS investments are faring

There are very few retirement products that help you accumulate a retirement nest egg and one such product is the National Pension System (NPS). It is a market-linked choice where the returns are based on the performance of the fund you choose. There are eleven pension fund managers to choose from, and one way to evaluate them is by looking at the returns of the equity fund, government bond fund, and corporate bond fund within the private sector NPS.

The following table shows returns for pension fund managers who have completed at least one year of operation as of the reporting date.

Non-Government POP Returns (Tier-1 Account)

Returns are in %; data as of July 2026

Pension Fund Manager	Equity Fund (1yr / 3yr / 5yr)	Govt Bond Fund (1yr / 3yr / 5yr)	Corporate Debt Fund (1yr / 3yr / 5yr)
Benchmarks	9.92 / 10.91 / —	3.59 / 3.68 / 3.25	6.05 / 5.90 / 6.15
Axis Pension Fund	11.55 / 12.88 / 11.99	3.17 / 3.56 / 3.12	5.55 / 6.01 / 5.55
Aditya Birla Sun Life	10.70 / 9.62 / 13.19	3.71 / 3.78 / 2.87	6.19 / 7.89 / 7.85
DSP Pension Fund	12.09 / — / 11.29	3.76 / 7.06 / 7.40	— / 8.23 / 7.99
HDFC Pension Fund	— / 11.67 / 12.72	— / 7.01 / 7.17	8.08 / 7.69 / 8.07
ICICI Pru. Pension Fund	12.28 / 11.48 / 10.58	6.78 / 7.37 / 7.42	7.86 / 8.02 / —
Kotak Mahindra Pension	— / 11.98 / —	6.82 / 7.44 / —	6.84 / — / 7.12
LIC Pension Fund	— / — / —	6.74 / — / 6.30	6.87 / 6.88 / 6.66
SBI Pension Funds	— / — / —	6.37 / 6.28 / 6.59	6.91 / — / 6.82
Tata Pension Fund	— / — / —	6.58 / — / 6.71	— / — / —
UTI Pension Fund	— / — / —	5.96 / 5.56 / 6.21	— / — / —

Note on Benchmarks:

• Equity Fund: Nifty 200 Total Return.
• Government Bond Fund: CCIL All Sovereign Bond-TRI.
• Corporate Debt Fund: CCIL Bond Broad-TRI.

(Source: Excerpts,,)

Ace investors rebound from the Q4 rout

By Mayur Bhalerao
Mumbai

The June quarter may have brought a sharp reversal in fortunes for some marquee investors, as easing crude oil prices and a rebound in small- and mid-cap shares helped portfolios recover from the March-quarter selloff. A Mint analysis of data from Primeinfobase showed that the value of disclosed holdings of 16 out of 17 ace investors (those holding more than ₹1,000 crore) increased between 31 March and 30 June 2026, based on stock price movements of the same set of shares.

Portfolio Performance

The median portfolio of these investors likely gained 18.7% in the June quarter, compared with a median fall of 15.6% in the March quarter. The combined value of the analyzed holdings rose 13.6% to approximately ₹4.30 trillion from ₹3.78 trillion, adding over ₹51,300 crore during the three-month period.

This recovery follows a March quarter where the West Asia war, high crude oil prices, a foreign investor selling spree, and weakness in IT stocks triggered a broader market correction. During the June quarter, the BSE SmallCap index rose 24.1% and the BSE MidCap gained 14.5%, both outpacing the BSE LargeCap’s 7.2% gain.

Individual Rebounds

Among the prominent investors, Ashish Kacholia recorded the strongest recovery, with his disclosed holdings jumping 51.3% to around ₹2,099 crore, reversing a 16.9% decline in the previous quarter. He was followed by:

• Hemendra Kothari: Portfolio rose 37.7% to ₹6,170 crore.
• Madhusudan Kela: Holdings rose 36.1% to ₹2,236 crore.
• Mukul Agrawal: Portfolio increased 35% to ₹6,272 crore.
• Ashish Dhawan and Akash Bhanshali: Posted gains of 30.8% and 30.5%, respectively.
• Yusufali Musaliam Kader: Gained 28.1%.
• Nemish Shah: Holdings rose 20.2%.

The late Rakesh Jhunjhunwala’s portfolio rose 18.7% to ₹68,333 crore. Radhakishan Damani’s holdings climbed 10.8% to about ₹1.94 trillion, and Nirajkumar Bajaj’s portfolio gained 13.5% to ₹1.10 trillion. Together, these three portfolios accounted for over 80% of the sample’s total increase. Conversely, Sunil Munjal was the only investor in the sample whose portfolio value declined, falling 4.1% to ₹14,813 crore.

Market Drivers and Outlook

Domestic flows added significant support as investors continued to allocate money to small- and mid-cap schemes, which received ₹11,831.47 crore and ₹11,270.96 crore, respectively, during April-May.

Expert commentary suggests that while the tide rose for most, individual choices remained critical. “Stock-picking mattered more than the tide,” said Vedant Gupte, co-founder of a portfolio management service. Prabhakar Kudva, director at Samvitti Capital, noted that the recovery is partly "mean reversion after an oversold March quarter" and that sustainability will depend on earnings delivery over the next two to three quarters.