Trade deal windfall for Indian IT; Trump's warning shot
Also in the letter:
India-UK deal gives IT exports and workers a boost
Driving the news:
What they're saying:
Zoom out:
The big picture:
Also Read:
Trump warns US tech firms: No more factories in China, jobs in India
What's the matter:
Also Read:
Why it matters:
Expert take:
Reality check:
Also Read:
Blinkit drives Eternal's Q1; margin outlook improves with inventory shift
Catch up quick:
Gross order value jumped 140% year-on-year to Rs 11,821 crore.
Net order value (NOV) touched Rs 9,203 crore, overtaking Eternal's food delivery business for the first time.
The company added 243 dark stores in Q1 and aims to reach 3,000 by 2026.
Margin play:
Why it matters:
What's next:
Sponsor ETtech Top 5 & Morning Dispatch!
Why it matters:
The opportunity:
Reach a highly engaged audience of decision-makers.
Boost your brand's visibility among the tech-savvy community.
Custom sponsorship options to align with your brand's goals.
What's next:
Intel to cut 31% of workforce, cancels factory plans amid deep losses
The details:
Why it matters:
CEO speak:
Shake-up at Swiggy board; SoftBank, Accel exit stage
Tell me more:
SoftBank's Sumer Juneja and Accel's Anand Daniel have resigned from the board, according to a recent regulatory filing.
Both cited pressing professional commitments as the reason for their exits.
In their place, Swiggy has added Faraz Khalid as an independent director, the fourth such addition to its board.
Who's on board:
Introductions:
Significance:
Chart-ed: IPO winners and losers
India's software exports are set to get a boost from the latest trade pact with the UK. This and more in today's ETtech Top 5.■ Blinkit drives Eternal's Q1■ Intel hits reset button■ Swiggy's board shakeupIndia's IT services exports to the UK are projected to grow by 15–20% each year from the FY25 base of $32 billion, thanks to new tax and labour concessions under the India-UK trade pact.In a significant win, Indian tech professionals will now be exempt from UK social security contributions for up to 36 months. This move, which effectively saves 20% of their salary, will benefit around 60,000 workers and generate over Rs 4,000 crore in corporate savings.EY's Puneet Gupta called it a 'game-changer' for short-term projects. Nasscom estimates Indian professionals have lost $1 billion globally due to dual social security taxes. The exemption fixes a long-standing fiction point.Indian firms will also get a three-year waiver from the UK's Jobs Tax. Commerce minister Piyush Goyal said the agreement opens doors for IT, education, and services startups eyeing high-value UK clients.As US deal cycles slow, Europe is stepping up as a key demand driver. This UK carve-out sharpens the trend and signals India's intent to boost global mobility for its tech workforce.Just as India's tech workforce gains global mobility wins in the UK, a harder message is emerging from the US At an AI summit, President Donald Trump declared that the era of US tech firms manufacturing in China and hiring in India was 'over.' He urged the companies to 'go all-in for America,' accusing them of offshoring jobs while enjoying the benefits of American freedom.The speech came days after the US released its AI Action Plan , which tightens export controls and backs local tech manufacturing.The plan urges US allies to adopt similar curbs – or risk secondary tariffs. India isn't directly named, but may feel the heat if it doesn't fall in line on AI policy and trade.Jameela Sahiba of The Dialogue said the move signals a tightening tech bloc, emphasising that India must navigate a diplomatic tightrope and balance its tech alliances. 'This opens up opportunities, but also risks,' she noted.Despite the noise, US firms still depend heavily on Indian talent through GCCs. Futuresense's Raghav Gupta warned that protectionism could backfire on American innovation.Quick commerce platform Blinkit was the standout performer for its parent company, Eternal, in Q1 FY26, with its pivot to an inventory-led model earning praise from analysts.Brokerages such as Jefferies and Nuvama see a 1% margin improvement (as a % of NOV) over the next 2–3 quarters. Kotak expects Blinkit to hit Ebitda breakeven by March 2026. Switching to an inventory-driven model enhances return on cash employed and aligns Blinkit's accounting structure more closely with offline retailers like Dmart. However, this may reduce revenue recognition for Hyperpure, which previously managed Blinkit's backend fulfilment With quick commerce gaining momentum and food delivery showing signs of fatigue , Blinkit is set to shape Eternal's growth story through FY26, and possibly redefine its future.ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees.Interested? Reach out to us at spotlightpartner@timesinternet.in to explore sponsorship opportunities.Intel plans to shrink its global headcount to 75,000 by the end of the year – a sharp 31% drop from 2023 – as it battles mounting losses and resets its global strategy.The chipmaker has already laid off 15,000 employees and is scaling back factory projects in Germany, Poland, and Ohio (United States). It is also shutting down operations in Costa Rica and shifting work to lower-cost locations in Vietnam and Malaysia.The cuts reflect deeper challenges in the global semiconductor race, where cost pressures, geopolitical headwinds, and AI investments are reshaping the game. Intel's big bet on foundry services is still in early innings, and these moves suggest the turnaround is far from complete.The company posted a $2.9 billion loss in Q2, mainly due to restructuring charges, even as revenue edged past expectations at $12.9 billion.'We are making hard but necessary decisions,' CEO Lip-Bu Tan wrote to employees, vowing to boost efficiency and accountability.Another quarterly loss is expected. The real test is whether this reset unlocks the firepower needed to catch up with rivals Nvidia, AMD, and TSMC.Swiggy's board has seen a major reshuffle just months after the food and grocery delivery giant went public, with nominees of two heavyweight investors stepping aside.The current line-up includes chairperson and non-executive independent director Anand Kripalu, Swiggy CEO and MD Sriharsha Majety, cofounder Nandan Reddy, and independent directors Shailesh Haribhakti, Suparna Mitra and Faraz Khalid. Also on the board are Roger Clarks Rabalias, representing Prosus, and Ashutosh Sharma from MIH Internet India.Khalid is the CEO of the Middle East-based ecommerce, quick commerce, and food delivery platform Noon, and previously co-founded the online fashion store Namshi.Swiggy said the appointment reflects its shift to a more independent governance structure. 'With his (Khalid's) joining our board, our independent directors (led by our Chairperson) represent four pillars of strategic governance,' CEO Majety said in a statement.Zomato's parent, Eternal, led the IPO gains significantly, according to data from exchanges. The share price of the restaurant aggregator and quick delivery platform has risen by 309% from its IPO price of Rs 76 when it listed in July 2021.Travel platform Ixigo's parent, LeTravenues Technology, is a distant second, but still with a substantial 135% increase over its issue price.Ola Electric and Paytm are the laggards on our list, trading 46% and 50% below their respective prices.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
20 minutes ago
- Indian Express
Why has Delhi HC criticised the law capping rents in Delhi as unjust, and called it anachronistic?
Earlier this month, Delhi High Court criticised the tendency of some well-off tenants to 'unjustly' occupy premises paying a pittance as rent, while their landlords are forced into 'impecunious and desperate circumstances'. This, the court said, was an 'egregious misuse' of the Delhi Rent Control Act, 1958, which it described as an 'anachronistic piece of legislation'. The court was hearing a challenge to orders passed by the additional rent controller in 2013, which had dismissed eviction petitions relating to a property in Sadar Bazar, and ruled in favour of the tenants. The 1958 law has allowed many tenants of properties in areas such as Connaught Place, Karol Bagh, and Chandni Chowk to continue to pay rents that are sometimes as low as Rs 500. What is the Delhi Rent Control Act (DRCA)? The DRCA was enacted to regulate rents, prevent arbitrary evictions, and define the rights and duties of landlords and tenants in Delhi. The Act restricts landlords from charging tenants more than a fixed 'standard rent', and prohibits the collection of extra charges. It also specifies the limit by which rents can be increased – not more than 10% in three years. There are strong protections for tenants against eviction, and landlords are allowed to throw out tenants only under specific conditions, such as non-payment of rent and subletting without permission. The law also lays down the procedure for depositing rent, mechanisms for appeal, and summary eviction processes in certain cases. The DRCA was enacted in the aftermath of World War II and Partition to protect tenants in a situation of scarce housing in Delhi. Is the DRCA applicable everywhere in Delhi? The law is not applicable to government-owned premises. Later, certain other categories of properties were excluded from the ambit of the Act, such as those where the rent was more than Rs 3,500, and 'premises constructed on or after the commencement of the Delhi Rent Control (Amendment) Act, 1988, for a period of ten years from the date of completion of such construction'. It is important to note that while the Act is technically applicable to all remaining properties in the city, the precise percentage of housing to which it is applicable is not known because of the existence of a large number of illegal and unplanned settlements. In fact, about a quarter of Delhi's population is believed to be living in slums or squatter settlements. Implementation of the Act is uneven and mostly ineffective. Tenants pay market rents, not 'standard' rents fixed after both parties approach a rent controller. Landlords often do not issue rent receipts, and in many cases tenants have to make large advance deposits before they move in. What are some of the criticisms of the rent control law? Like rent control laws in other states, the DRCA has been criticised for being too tenant-friendly and facilitating an unfair situation of unrealistically low rents for landlords. Indeed, in the older markets of Connaught Place, Karol Bagh, and Chandni Chowk, monthly rents for some residential and commercial properties that are valued at crores can be still as low as Rs 500. In this situation, landlords often prefer to withdraw their premises from the rental housing market, creating an avoidable shortage and distorting the market. Economists have criticised rent control legislation around the world for decreasing or freezing the supply of urban rental housing, and for leading to a deterioration of housing stocks as a result of a lack of incentive for landlords to invest in maintaining and upgrading it. The National Urban Rental Housing Policy 2015 noted that rent control legislation in various states have 'resulted in rental housing being economically unattractive and thereby creating an informal market'. Rent ceilings had led to reductions in both the quality and quantity of housing, the policy said. 'These laws not only restrict supply but also drive away legitimate seekers of rental housing which force tenants into unrecorded and informal arrangements,' it said. Since land and housing are State subjects, the central government drafted a Model Tenancy Act in 2021 as a framework that could be adopted by states and Union Territories. The model Act sought to balance the interests of landlords and tenants by allowing rent be decided by mutual agreement between the parties. However, the Act has so far been adopted by only four states: Assam, Uttar Pradesh, Andhra Pradesh, and Tamil Nadu.
India.com
20 minutes ago
- India.com
Banks waived off fines, but earned Rs 90000000000, which bank earned the most? Not SBI, PNB, HDFC, ICICI
Banks waived off fines, but earned Rs 90000000000, which bank earned the most? Not SBI, PNB, HDFC, ICICI Public sector banks (PSBs) have collected a penalty of about Rs 9,000 crore (Rs 8,932.98 crore) from customers for not maintaining the 'Minimum Average Monthly Balance' (MAB) in the last five years (from 2020-21 to 2024-25), Minister of State for Finance Pankaj Chaudhary informed Rajya Sabha. Which banks have stopped collecting fines? According to the Finance Ministry, Canara Bank, Bank of Baroda, Punjab National Bank, Indian Bank, Bank of India and Central Bank of India have also waived off this penalty from this quarter. The country's largest bank, State Bank of India (SBI), was not charging this penalty since March 2020. The Minister of State for Finance also informed that the Department of Financial Services (DFS) has asked banks to consider reducing or waiving this penalty, especially to provide relief to customers in semi-urban and rural areas. How have banks changed their stance? This disclosure comes at a time when recently Union Bank of India also joined several other public sector banks in announcing the waiver of this penalty. The bank said that this move is to 'ensure equality, fairness and better access to basic banking services for customers'. Which bank earned the most? According to a report, Indian Bank collected the highest fine in five years. One-fifth of the total amount i.e. Rs 1,828.18 crores. Punjab National Bank came in second place (Rs 1,662.42 crores) and Bank of Baroda came third (Rs 1,531.62 crores). It was followed by Canara Bank, which earned Rs 1,212.92 crores. Bank of India earned Rs 809.66 crores, Central Bank of India Rs 585.36, Bank of Maharashtra Rs 535.20, Union Bank Rs 484.75, Punjab and Sind Bank Rs 100.92 and Indian Overseas Bank Rs 62.04 crores. Detailed break up of how fines have been increased? 2020-21: Rs 1,142.13 crore 2021-22: Rs 1,428.53 crore, up 25% from last year 2022-23: Again increased by 30% to Rs 1,855.43 crore 2023-24: Again increased by 26% to Rs 2,331.08 crore 2024-25: This year there was a slight decline of 7% and the amount stood at Rs 2,175.81 crore What banks are being pressurised? The decision of banks to abolish this penalty has come at a time when there is pressure on their current account and savings account (CASA) ratio. These accounts are the cheapest source of raising money for banks. In its latest Financial Stability Report released in June, the Reserve Bank of India (RBI) had said that the share of expensive fixed deposits and deposit certificates (CDs) is increasing in the liabilities of banks instead of cheaper CASA. State Bank of India (SBI), which has not been charging this penalty for the last five years, says the move has greatly benefited first-time bank account openers.
Economic Times
20 minutes ago
- Economic Times
Tariff worries trigger rupee's steepest fall in nearly three months
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The Indian rupee posted its steepest one-day drop since May and hit a five-month low on Wednesday, hurt by worries over steep U.S. tariffs on Indian exports alongside dollar demand from foreign banks and rupee hit a low of 87.5125 against the U.S. dollar before closing at 87.42, down 0.7% on the said that while the Reserve Bank of India likely stepped in to support the local currency, the intervention was not very aggressive.A 20%-25% tariff may be imposed on India's exports in the absence of a trade deal and as the Asian country holds off on offering fresh concessions ahead of Friday's deadline, Reuters reported on Tuesday.U.S. President Donald Trump said on Tuesday that a trade deal with India had not been finalised and higher tariffs were tariff threats, the psychological impact of the rupee breaching the 87 mark, and urgency among importers to hedge before the August 1 deadline has weighed on the rupee, said Dilip Parmar, a foreign exchange analyst at HDFC conditions remain the same, the rupee could fall below 88 in the coming weeks, Parmar said. The local unit had hit an all-time low of 87.95 in addition to trade uncertainty, persistent foreign portfolio outflows have also been a pain point for the rupee. Overseas investors have net sold over $1.5 billion of local stocks in among importers and the absence of inflows have kept the currency under pressure and that may persist in the near-term, a trader at a foreign bank Asian currencies were trading mixed and the dollar index was little changed at 98.8 as investors await the Federal Reserve's policy decision later in the Fed is widely expected to keep rates unchanged, with the focus on commentary from Chair Jerome Powell and whether the decision is unanimous.
