The following is the full text of the article titled "HDFC lessons" from page 4 of the July 31, 2026, edition of Business Line:
HDFC lessons
Sharp practices to get deposits not desirable
HDFC Bank has been in the news for the wrong reasons since March, when its Chairman Atanu Chakraborty resigned after dropping vague hints about internal trouble. Since then, some unsavoury developments have come into view, such as the Bank’s convoluted dealings with Maharashtra State Road Transport Corporation (MSRTC). The episode raises a governance question at a micro level; at a macro level, it appears that banks are increasingly crossing red lines to attract wholesale or bulk deposits.
With households channeling their savings into higher yielding investments such as mutual funds and stock markets, the competition for bulk deposits has intensified. In May, a special disciplinary committee of independent directors of HDFC Bank had been asked to investigate how the differential interest (the difference between the publicly stated interest rate and the higher rate paid to MSRTC) of ₹55 crore had been paid to MSRTC. These funds were allegedly used to pay vendors for road safety awareness campaigns run by the bank's marketing department.
In early March, the bank also terminated three senior officials in its Dubai and Bahrain branches for allegedly making payments to consultants in the UAE to win NRI business. The zeal to grow quickly to satisfy shareholders can lead to questionable practices. Reports indicate banks are chasing bulk depositors like state corporations and software companies with large cash surpluses, offering them much higher rates than regular depositors.
While growing a deposit base through wholesale deposits is valid, any deliberate omission or misrepresentation in financial statements is a governance issue. Although banks are allowed to offer differential rates for bulk deposits, they must be transparently offered to all depositors in that category. The HDFC Bank Board’s view that the MSRTC case was merely "business overreach" without "malafide intent" appears to be a cavalier approach.
The RBI has reportedly sought more information from the Managing Director and CEO, CFO, and other key executives. It remains to be seen how this situation will affect the reappointment of Sashidhar Jagdishan as Managing Director and CEO. Reports suggest the RBI’s findings may recommend warnings or penal actions for potential divergence from norms. Given that guidelines for a Bank CEO require a proven track record of integrity, the head of India’s largest private bank must be above reproach.
The following is the full text of the article titled "The fragile basis of digital India" from page 4 of the July 31, 2026, edition of Business Line:
The fragile basis of digital India
Digital dangers. From being a smartphone assembling nation, we must move towards structural supply chain ownership
By Faisal Kawoosa
India’s transition into a digital-first economy is a globally lauded achievement in economic history. Powered by robust Digital Public Infrastructure (DPI), unified payments, and welfare transfers, we have brought hundreds of millions into the formal economy.
Yet a silent crisis is brewing at the structural entry point of this revolution: the humble budget smartphone. Driven by intense inflation in hardware costs — the cost of memory modules, display drivers, and raw semiconductor materials — the entry-level smartphone is shifting rapidly out of reach for millions of Indians.
For years, the success of Digital India relied on a steady, predictable supply of sub-₹10,000 devices. Today, that segment is vanishing. Component costs have triggered price increases of up to 40 per cent for entry-level models, pushing them into the ₹12,000-₹15,000 bracket. These price hikes significantly outpace the income growth of the demographic they serve. Recent tech outages like the global surge of Microsoft/CrowdStrike glitches highlight the severity of this problem. Reliance on an increasingly concentrated, expensive, and foreign-controlled hardware ecosystem for basic digital services is no longer a mere technical concern. It is a systemic threat to economic inclusion.
The arithmetic of this hardware crunch is stark. Over 40 per cent of India’s active smartphone users still use devices priced below ₹10,000. By their very nature, these essential, affordable handsets are built with tight lifespans, rarely lasting beyond three years of use. Without a continuous supply of sub-₹15,000 replacements, hundreds of millions of current smartphone users will be forced out of the digital ecosystem. This is not a future risk; it is a current reality. A reliable, mass-market smartphone will hit ₹15,000, while a reliable user experience will demand an investment of at least ₹18,000. For a vast section of the population, the entry barrier to the nation’s digital public infrastructure is becoming an unattainable luxury.
TACTICAL FIXES
Whenever economic friction threatens consumer accessibility, the default policy playbook points to tactical, fiscal adjustments. Calls for GST rationalisation on smartphones, tariff reductions on sub-components, or expanded financing facilities like NBFC-backed micro loans frequently dominate the discourse.
While valuable, these measures fail to solve the underlying problem. Lowering taxes or offering credit to consumers is merely papering over the cracks. Subsidising the consumption of expensive, imported hardware doesn't build resilience; it simply delays the inevitable. We need a fundamental shift from protecting consumption to owning production.
The "harsh reality" is that India remains a "smartphone assembly nation." Our manufacturing operations are primarily focused on assembly, highly exposed to the cyclical price hikes of global foundry and memory vendors, semiconductor wafer allocation, and foreign proprietary technology. Until we address the components baseline, we must move from assembling units to structural supply-chain interventions.
Affordable smartphones are a cornerstone of our digital democratic foundation. To ensure it we need to actively build a resilient, self-contained electronics ecosystem.
MOVING BEYOND ASSEMBLY
The core challenge of the current inflationary wave lies inside the device’s bill of materials (BOM). If India wants to command pricing gravity at the entry-level tier, it must secure deep supply chain ownership across three structural nodes:
- Upstream: Domestic silicon and memory OSAT. The most painful segment of the current supply chain crunch is memory shortages. Building large-scale semiconductor fabrication plants remains a long-term goal, but India can immediately build self-reliance in Assembly, Testing, Marking, and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) facilities. Under the India Semiconductor Mission (ISM), our policy focus must prioritise memory and logic packaging and test lines specifically optimised for budget platforms. By locally packaging imported silicon wafers into finished memory configurations, India can break free from foreign component markups and insulate entry-level hardware from global supply shocks.
- Deep Component Indigenisation: Local value addition must move from beyond layering plastic back panels and charging cables. Under localised manufacturing frameworks, the focus must shift aggressively toward complex sub-assemblies. India needs localised production of multi-layered Printed Circuit Boards (PCBs), display driver modules, and complex camera sub-assemblies. The local manufacturing ecosystem must extend the same vertical integration it has achieved in device assembly where domestic players have steadily narrowed the gap with global giants in speed and precision.
- Alternative Supply Networks and Regional Sourcing Hubs: Until full self-reliance is achieved, India must use its geopolitical and trade leverage to build highly resilient, diversified sourcing networks. Instead of relying on single geographic dependencies for vital materials, our trade frameworks should prioritise long-term dependency agreements with alternate hubs in South-East Asia. Securing raw materials and critical components through diversified, long-term bilateral agreements with multiple nations can effectively buffer local assemblers against sudden price spikes in any single geography.
ENSURING A SUSTAINABLE DPI
If we allow the entry threshold for smartphones to continue rising unchecked, the democratic foundation of the Digital India revolution begins to fracture. Micro transactions via UPI power the economic baseline of rural India. Digital authentication systems authenticate critical driver identities. Digital health records deliver vital governance directly to our citizens. None of these essential services can function without affordable hardware.
Digital inclusion must be fiercely protected as a public utility, rather than just a private consumer trend. If the basic gateway tool required to access public services is priced out of reach for our lower-income quartile, the digital divide will only deepen.
By pivoting our policy focus away from short-term financial subsidies and steering it toward structural supply chain ownership, India can build a resilient, self-contained electronics ecosystem. Ensuring long-term hardware affordability is no longer just an industrial target — it is an economic imperative to preserve the foundation of Digital India’s future.
The following is the full text of the article titled "Unease over Trump’s nuke deal with Saudi Arabia" from page 5 of the July 31, 2026, edition of Business Line:
Unease over Trump’s nuke deal with Saudi Arabia
The Saudi pact and Netanyahu's Washington visit stoke fears of escalating conflict with Iran
By Paran Balakrishnan
It was a decision that sent alarm bells across the Middle East, India and far beyond, as US President Donald Trump stunned allies and foes alike when he announced an agreement to help Saudi Arabia enrich uranium on its own soil. Adding fuel to the fire, he said Saudi nuclear facilities would not be subject to the same strict inspections that are normally demanded under nuclear pacts.
No country was watching more nervously than Iran.
For years, it had been argued that, despite decades of suspicion, Tehran has been careful not to cross the line into building a nuclear bomb. The reasoning is simple: an Iranian bomb would almost certainly trigger a nuclear arms race across the Middle East, with Saudi Arabia and potentially others seeking their own deterrents, creating a far more volatile and dangerous region.
That’s precisely why Trump’s Saudi deal is being seen as a game-changer.
Yet by this week, Trump appeared to have shifted gears. In his characteristically erratic fashion, he tossed a new wild card into the mix, suggesting Saudi Arabia would first have to sign the Abraham Accords and recognise Israel before any deal was finalised.
The Saudi response was swift and non-committal.
“If Saudi recognition of Israel had been a simple matter, it would have been dealt with already,” said one diplomat. “But making it a precondition for Trump’s fresh demands “do not simplify an already complex situation”.
MIDDLE EAST RESHAPED
The episode is the latest twist in a region already on edge. Last week, Donald Trump, buoyed by Israeli Prime Minister Benjamin Netanyahu’s visit, laid out a Middle East with a series of dramatic interventions that have left allies, rivals and even some in Washington scrambling to understand the new logic.
This week Netanyahu arrives in Washington for his first visit since the US-Israel-Iran conflict erupted. One question hangs over the trip: will he try to persuade Trump to resume military action against Iran? The answer is almost certainly yes.
Things could hardly be worse. As Houthi-led attacks in the US capital, the Gulf is again sliding deeper into turmoil. Yemen’s Houthis movement has entered the conflict and is threatening tankers funding route Saudi Arabia’s Jubail export terminal on the Red Sea before they pass through the vital Bab el-Mandab strait, the gateway linking the Red Sea to the Indian Ocean.
For India, there has at least been one good bit of news: Russian oil tankers appear to have been spared Houthi attacks. That matters because India’s appetite for Russian crude keeps growing. In June, Russia supplied a record 42 per cent of India’s oil imports. July’s figure will be even higher.
WHO’S FEELING THE HEAT?
All of this raises an obvious question: does Trump care about the turmoil his actions are causing?
Many analysts have long argued that, despite decades of suspicion, Tehran has been careful not to cross the line into building a nuclear bomb.
Apparently not as much as many other countries would like.
American motorists are paying significantly more at the pump than a year ago, something that could become a political headache ahead of the midterms. But the US imports only a small share of its oil from the Gulf. The countries facing the real headache are in Asia. India, Japan, South Korea and Vietnam have been forced to scramble for alternative supplies and rethink energy security calculations.
China, traditionally one of the Gulf’s biggest customers, has also surprised traders by sharply reducing purchases. Some oil industry analysts speculate Beijing may be wanting to remind Washington that the US remains the world’s dominant energy power and could disrupt Chinese supplies if it chose. If so, China may already have short-circuited the strategy.
Whatever Trump’s objective, one thing is evident: the region is growing more volatile by the day and the margin for error is shrinking.
Iran has stepped up attacks and pressure campaigns against multiple Gulf states, including the UAE, with which it has traditionally maintained relatively workable relations. Bahrain has also found itself in the firing line because it hosts a major US naval base.
Israel’s campaigns, meanwhile, have sent shockwaves through Syria, Lebanon and Iraq. For decades, Israeli leaders have viewed Iran as their most formidable regional adversary and sought to weaken its influence.
Yet Iran is not some minor regional player that can simply be wished away. It’s a nation of 95 million people, an old civilisation, and woven into the Middle East’s political, religious and economic fabric.
The uncomfortable reality is that after months of wars, threats, sanctions and brinkmanship, nobody has solved the problem. They have simply made it bigger. And in a Middle East already crowded with fault lines, the next spark could ignite a fire nobody can control.
The following is the full text of the article titled "Embassy REIT Q1 net operating income rises 17% to ₹1,020 crore" from page 6 of the July 31, 2026, edition of Business Line:
Embassy REIT Q1 net operating income rises 17% to ₹1,020 crore
Press Trust of India
Realty firm Embassy Office Parks REIT on Thursday reported a 17 per cent increase in net operating income (NOI) to ₹1,020 crore for the quarter ended June 30, 2026.
Its revenue from operations rose 14 per cent annually to ₹1,241 crore in the first quarter of the current fiscal, the REIT said in a regulatory filing.
The board of Embassy Office Parks Management Services Pvt Ltd, Manager to Embassy REIT, also declared a distribution of ₹598 crore for the June quarter of the current fiscal year.
Amit Shetty, CEO, Embassy REIT, said the company continued its strong performance and added 1.3 million sq ft of office space.
The following is the full text of the article titled "El Nino likely to strengthen further during Oct-Dec: Govt" from page 10 of the July 31, 2026, edition of Business Line:
El Nino likely to strengthen further during Oct-Dec: Govt
Our Bureau, New Delhi
The government has said El Nino is likely to strengthen further during the October-December period, and may reach a very strong category.
In a written reply in the Rajya Sabha on Thursday, Jitendra Singh, Union Minister of State (Independent Charge) for Science and Technology and Earth Sciences, said the India Meteorological Department (IMD) has classified as "very strong" based on the magnitude of sea surface temperature anomalies over the equatorial central Pacific Ocean.
The India Meteorological Department (IMD) has frequently monitored the development of the El Nino event in the 2024-25 season. During the 2024 South-West monsoon season, El Nino conditions were observed to be strong and intensified to moderate levels during October-December 2024.
DETERMINING FACTORS
"El Nino is likely to strengthen further during the October-December 2026 season and may reach a very strong category. However, its exact intensity and impact on weather patterns will depend on the evolution of other atmospheric and oceanic conditions, of which El Nino is one factor," the Minister said in a written reply, adding that the IMD continuously monitors the evolution of El Nino and other factors and issues regular updates.
MONITORING
IMD, under the Ministry, continuously monitors the evolution of El Nino and provides information to various users and stakeholders via regular seasonal/monthly forecasts, extended range forecasts and weather advisories for various Central and State government departments and other stakeholders.
IMD issues impact-based forecasts and risk-based warnings daily, valid for the next five days, through multiple communication channels for use by diverse management authorities. State governments, district administrations, and other stakeholders use these updates to plan and take appropriate response measures, he said.
The following is the full text of the article titled "PM E-Drive yet to fuel e-bus adoption, charging infra lags" from page 11 of the July 31, 2026, edition of Business Line:
PM E-Drive yet to fuel e-bus adoption, charging infra lags
Growth gap. 14,000 e-buses allocated, but concessions signed for 1,515 only: MHI data
Amit Vijay Mahia, New Delhi
The flagship PM E-Drive scheme has significantly accelerated electric vehicle adoption, supporting more than 23 lakh electric two-wheelers and receiving hit-rate from 0.7 per cent in FY20 to 8.2 per cent in FY24. However, the progress in electric buses and charging infrastructure remains slow, even as the Ministry of Heavy Industries (MHI) plans to launch more aggressive marketing and advertising campaigns for these segments.
Data presented in the Rajya Sabha on Tuesday showed that demand incentives for electric two-wheelers received between April 1, 2024 and July 23, 2024 were for 12,28,194 units. Of this, electric two-wheelers accounted for 11,51,003 units. The remaining 77,191 units were for electric three-wheelers, including e-rickshaws and heavy duty electric three-wheelers. Incentives for electric two-wheelers are set to end by July 31, 2024 although the government may extend the scheme. Any continuation would require fresh budgetary support, which would be decided in the new fiscal year allocation.
SLOW DEALS
While vehicle adoption has increased, progress in the e-bus segment and deployment remains limited. Letters of confirmation have been issued for 13,000 e-buses in states like Punjab, Tamil Nadu and Mumbai. An additional 200 buses have been sanctioned for Jammu & Kashmir, taking total allocations to 14,200 against a target of 14,038.
However, concession agreements have been signed for only 1,515 buses so far, just about 11 per cent of the buses allocated to the states. Several major cities, including Delhi, Mumbai and Bengaluru, are yet to sign agreements for the bulk of their e-bus deployment.
Successful bidders must still secure prototype approval before buses can be delivered. The e-bus segment is also facing supply chain challenges, with manufacturers struggling to meet the demand within stipulated timelines.
INFRA LAG
Progress in charging infra has also been slow. Of the ₹10,900 crore earmarked for the scheme, ₹4,393 crore had been approved for deploying 8,562 chargers. However, as of March 24, no funds had been disbursed for charging infra under the scheme.
The government is also attempting to build domestic battery manufacturing capacity. On July 29, it announced the re-bidding for the 10 GWh Advanced Chemistry Cell (ACC) PLI scheme, attracting 23 prospective bidders.
The following is the full text of the article titled "Domestic sugar prices to remain firm in short-term, says Triveni" from page 10 of the July 31, 2026, edition of Business Line:
Domestic sugar prices to remain firm in short-term, says Triveni
Higher sales volume and better price realization in sugar and alcohol led Triveni Engineering & Industries, a leading integrated sugar and ethanol manufacturer, to register a 21 per cent growth in net profit to ₹1,481 crore for Q1 FY27 (April-June) .
Net profit was despite the lower off-take in alcohol and add-on in revenue margin in the washroom section . "Profitability improved because of higher margins attributable to increase in sugar margin in both sugar and realization and lower procurement price of rice for producing power (DDGS) realization and other pre-agricultural products, which led to a healthy yield in the alcohol segment," a statement said .
During Q1 FY27, the company sold 2,72,005 tonnes of sugar against 2,58,150 tonnes a year ago . The domestic sales price reached ₹41,525/tonne against ₹40,142/tonne . The company said domestic sugar prices remained firm in June and July 2026 due to lower than expected production and high demand for exports .
EL NINO IMPACT
The sugar sector has faced the brunt of El Nino since 2024 (monsoon) of cut and 3 mt of diversion towards ethanol . In October 2025 (season 2025-26), these had impacted the country’s sugar stock, which may reach a 10-year low of 1.4 mt .
For the next season (2026-27), the government has already signaled firm sugar production in line with the estimates of 32.5 mt in the initial months of the 2026-25 season as well as 32 mt in 2025-26 . However, the impact of El Nino on production next season .
ETHANOL POLICY
"We look forward to new policy measures from the Government outstripping demand as we move closer to FY27, to tap the full potential of ethanol," it said .
The company said it is also looking at expansion under "Beyond 2030 framework," including for ethanol as well as for new application for ethanol as a green fuel and has the potential to strengthen long term demand for biofuels and create additional growth avenues .
The company's sugar inventory as on June 30 was 2.45 mt, while at the same time last year, it was 2.80 mt . On the other hand, the realised sugar price was ₹33,845/kg against ₹32,741/kg . (Note: These figures are reproduced exactly as they appear in the source, though they may contain typographical errors regarding the unit or decimal placement).
Tarun Sawhney, Vice-Chairman and Managing Director, said that sugar prices had significantly firmed up in line with the estimates of the 2026-25 season as well as in 2025-26 as a result of the impact of El Nino on production next season .
The following is the full text of the article titled "TN can lead the next phase of growth in wind energy: IWTMA" from page 11 of the July 31, 2026, edition of Business Line:
TN can lead the next phase of growth in wind energy: IWTMA
Our Bureau, Chennai
The Indian Wind Turbine Manufacturers Association (IWTMA) has said Tamil Nadu, with its strong industrial base, highly skilled workforce and natural resources, will lead India’s next era of growth in wind energy.
Following the vision, the Indian Wind Turbine Manufacturers Association (IWTMA) yesterday presented a roadmap for TN's leadership in the India's wind energy sector in Chennai.
GROWTH PLAN
The report also served as the centerpiece for the Tamil Nadu Wind Leadership Summit 2026 in Chennai on Wednesday, which brought together senior government officials, policymakers and industry leaders to discuss the critical policy priorities needed to accelerate Tamil Nadu’s wind energy potential.
The roadmap presented a roadmap focused on improving policy execution and fostering a more conducive investment environment for through expanding subsidies. It also outlines measures to promote wind repowering, develop manufacturing hubs around Ennore and VOC Port, and advance Green Energy Corridor planning, offering significant expansion and grid readiness. Additionally, it also places emphasis on strengthening the existing wind turbine and component export hubs from Tamil Nadu.
EXPORT HUB
Currently, the state exports wind turbines and components worth over ₹11,000 crore annually, supporting thousands of direct and indirect jobs. Building on its established leadership, the roadmap said the report outlines measures to further strengthen Tamil Nadu’s role as a global export hub for wind manufacturing and export.
GOVT-INDUSTRY NEXUS
Martand Singh, Vice Chairman and Secretary of IWTMA said, “As global demand for clean energy technology expands, Tamil Nadu state has a unique opportunity to consolidate its position not only as India’s wind manufacturing hub but also as a leading competitive export base. The deliberations today emphasized that sustained collaboration between government and industry to unlock this opportunity, creating an enabling ecosystem for the future of India's wind sector.”
Aditya Puri, CEO of WindOne, said, “The renewable energy landscape is evolving, creating an enabling ecosystem for investment in Tamil Nadu. This will be critical to sustaining TN's leadership. Suggestions presented in this report are intended to support the state government in strengthening manufacturing capacity, improving grid infra and fostering a more investment-friendly ecosystem.”
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