Innholdsfortegnelse for 16 February 2025 i Business Today

JUST SIX DAYS after Union Budget 2025-26 was presented and nearly five years after its last such decision, the Monetary Policy Committee of the Reserve Bank of India (RBI) on February 7 cut the repo rate by 25 basis points taking it to 6.25%. The move, under new RBI Governor Sanjay Malhotra, who chairs the MPC, comes amidst concerns of slowing growth and ebbing consumer demand that the Budget too tried to address with massive tax cuts for individual taxpayers. Together, these are expected to spark a virtuous cycle, providing taxpayers more disposable income and lower interest rates to make bigticket purchases from cars to homes and consumer durables, which will then set the wheels of the economy in motion and get the private sector to invest to meet this…

Finance Minister Nirmala Sitharaman finally moved in the Budget for FY26 to douse middleclass ire that it had received nothing in return for being the government’s staunchest support base since the National Democratic Alliance’s rise to power in 2014. In one stroke, Sitharaman raised to ₹12 lakh from ₹7 lakh the annual tax exemption threshold under the so-called New Tax Regime (NTR), which she had introduced five years prior, and lowered a range of tax rates, sacrificing an estimated ₹1 lakh crore in revenue. Sitharaman’s Budget was at least partly designed to address perceived middle-class resentment at a time of slowing economic growth that the vital demographic had not received its due from her previous fiscal packages, which had focused on boosting investment in infrastructure, stoking manufacturing and stirring corporate…

THE FINANCE MINISTER’S approach to the Union Budget 2025-26 embodies the well-known adage ‘When the going gets tough, the tough get going.’ Since the onset of Covid-19, the government adopted the Keynesian approach of pump-priming the economy through high capital expenditure in successive Budgets. While this strategy stimulated growth for three fiscals, the incremental returns on these investments began to taper off in FY25, largely due to lower investments from the private sector and a consumption slowdown resulting from stagnating wage growth coupled with inflation. Grappling with this reducing growth rate over the last seven quarters, the government’s budgetary strategy focusses on modification and moderation, striking a fine balance between the long term and the short term. It seeks to address the demand side of the GDP equation, putting more…

NARA LOKESH, Minister for Information Technology and HRD, AP, talks about, why investors are keen on Andhra Pradesh, and the how the government is tackling land challenge. Edited excerpts: On driving investor interest in Andhra Pradesh. First is talent and the quality of talent that we have in India nowhere in the world. The numbers that we have no country can compete with us. It’s interesting times where states are competing amongst each other to at-tract investments and it’s no longer about ease of doing business, it’s about speed of doing business. Third, the government’s focus on Make in India. Investors look for speed of doing business. I think if you look at the last seven months, the pace at which we’ve been able to close ground projects, no other state…

Westlife Foodworld Limited is a fast food restaurant holding company What was the problem you were grappling with? One of the most challenging moments was managing the transition of legacy employees to the organisation’s next phase of growth. Whom did you approach for advice and why? I needed clarity, and I sought advice from someone I deeply respect, a seasoned leader with decades of experience. What was the advice you received? The advice I received was simple yet profound, “As a leader your accountability is to always keep the organisation’s imperatives in mind first.” How effective was it in resolving the problem? I took a three-pronged approach. First, I made sure our conversations were transparent. Second, I ensured that we planned respectful transitions. Lastly, I focussed on reviewing roles with…

Kiran Mazumdar-Shaw, Founder and Executive Chairperson of Biocon, is one of India’s most well-known entrepreneurs. She has managed to do things with a lot of common sense, a lot of determination, and a lot of ‘foolish courage’. Mazumdar-Shaw sat down for an exclusive chat as part of the Business Today PODS with Sanjeev Krishan, Chairperson of PwC in India, and Siddharth Zarabi, Editor, Business Today. Edited excerpts: SIDDHARTH ZARABI: What was that instance of foolish courage that you deployed to get where you are today? KIRAN MAZUMDAR-SHAW: I started Biocon on a rebound. Why do I say a rebound? Because I came back to India thinking I’m going to pursue a brewing career. And when none of the breweries would offer me a job, I decided to create my own…

OUTLAYS, OUTCOMES, and outposts—the triumvirate of ‘O’s, which determine major microfinance decisions, are interlinked with an economy’s power to leverage self-sufficiency and ascendancy. In a tumultuous global disposition ridden with economic downturns and the US action on tariff structures, evident fall in most economic parameters on demand, investment and a slight dip in corporate tax collection, Finance Minister Nirmala Sitharaman had multiple challenges. On February 1, the matrix for her eighth consecutive Budget was unblemished: the document should transcend from policy prescriptions to bold affirmative action, signalling relief to the middle class and a message for continuity of reforms with the overarching theme of ‘Viksit Bharat’. The Budget announcements predicate four luminescent considerations for India: consolidating avenues for FDI inflows, measures to augment employability, foolproofing against externalities and geopolitical…

THE CENTRAL GOVERNMENT offered a big stimulus for middle class households in the Union Budget 2025-26 by ensuring that those who earn up to ₹12 lakh would not have pay any income tax in the new tax regime. This is expected to boost consumption and, hence, lead to a revival in corporate investment, which has remained tepid in recent years. The tax cut has turned the focus to stocks of companies in the consumption space. These companies had faced a demand slowdown, first in rural areas and then even in urban areas. Now, they are expected to see an increase in demand. As a result, their stocks could perform well on the markets. Market veteran and founder of MK Ventures, Madhusudan Kela, tells Siddharth Zarabi, Editor of Business Today, that…

N. CHANDRABABU NAIDU, Chief Minister of Andhra Pradesh, discusses his development vision for the state. In an interaction with Business Today, Naidu talks green energy investments, logistics expansion, and the role of AI in governance. Edited excerpts: What is the difference in the approach that you are following this term in power? We saw the Hyderabad IT model, Cyberabad that you built. How is your approach to trying to develop Andhra Pradesh different from what you tried in United Andhra Pradesh? Opportunities will change. Hyderabad is a model. There is Hyderabad, Secunderabad, I created Cyberabad (mid 1990s). Now, (in) Andhra Pradesh, the seacoast is the biggest advantage for me. Now the future is green energy, green hydrogen, downstream industries. I am planning to attract ₹10-lakh crore investment in green hydrogen, 0.75…

D. SRIDHAR BABU, Minister for Information Technology, Electronics & Communications, Industries & Commerce and Legislative Affairs, Telangana talks about the state’s plans for developing Tier II and Tier III cities. Edited excerpts: On infrastructure expansion in Telangana. Our government is focussed on a sustainable development model. With growing population in urban areas, it is our responsibility to create a sustainable environment for people to live in. There are two important projects we are taking up to this end—the regeneration of the Musi River in Hyderabad. The river flows about 55 kilometres through our city. And the second is to build a ‘net-zero’ emissions city, where we would put our strength to construct a sustainable model that will be a great example for tomorrow’s world. On building other industrial hubs across the…

TOTAL SPENDING THE COMBINED TOTAL EXPENDITURE OF CENTRAL AND STATE GOVERNMENT JUMPED SHARPLY AFTER COVID-19 ALLOCATIONS BARRING FINANCE AND DEFENCE, THE ROAD, RAILWAYS, PUBLIC DISTRIBUTION SECTORS SAW MAJOR CENTRAL SPENDING TOP SCHEMES CENTRE SPENT OVER ₹13 LAKH CRORE ALONE ON MGNREGA & PMAY IN THE PAST 10 YEARS TILL FY26 STATE PRIORITIES TOTAL EXPENDITURE BY STATE GOVERNMENTS ON SOCIAL SERVICES HAS RISEN OVER 200% IN 10 YEARS 8.4 PER CENT OR ₹4.26 LAKH CRORE, OF THE TOTAL BUDGET OUTLAY FOR FY26, IS THE SHARE OF SUBSIDIES. THIS MARKS A DECLINE FROM 21.6% (₹7.58 LAKH CRORE) IN FY21 ₹2.75 LAKH CRORE UTTAR PRADESH’S EXPENDITURE ON SOCIAL SECTOR, OR 10.8% OF ITS GSDP AT CURRENT PRICES IN FY24, AS PER RBI. IT WAS FOLLOWED BY MAHARASHTRA (₹2.39 LAKH CRORE OR 5.9% OF GSDP)…

INDIA HAS ITS growth path charted out: to become a developed nation by 2047, and to make that a reality, it is looking at robust expansion in the power sector. Union Budget 2025-26 lists the power sector as one of the six domains to augment growth potential and global competitiveness in the next five years. Finance Minister Nirmala Sitharaman focussed on India’s energy transition goals by enhancing budgetary allocation for clean power production and ensuring energy security for the country by boosting capabilities to produce coal. If numbers can tell a story, consider this: allocation to clean energy got a near 40% boost in FY26 over the last fiscal, with the solar segment getting three-fourths of the pie. The rooftop solar scheme was a clear winner, seeing a 220% jump…

As founding stories go, Swiggy’s is fascinating and one that is emblematic of the start-up journey in India’s Silicon Valley, Bengaluru. Swiggy was born “over two good beers” with Co-founder Nandan Reddy at Arbor Brewing, a craft brewery in Bengaluru, says Sriharsha Majety, Cofounder and CEO of the firm. What does it mean? With a wide grin, he says the logic was simple: it had to be short and catchy. “We were throwing darts with names and came up with Swiggy. I think it’s a fun name and has worked.” That was over a decade ago, and since then the firm, which has food delivery and quick commerce segments, has raised a lot of money and explored new business opportunities. And it went public last November. At an offer price…

What does it mean to eat at the Best Restaurant in the World? To find out, I landed in Barcelona in early December, dodged the Gaudí fans and pickpockets, and boarded a train to Girona—a medieval Catalan city so picturesque it might as well have been designed by Disney. But let’s be honest: nobody comes to Girona for its history or architecture. They come for the Roca brothers. Joan, Josep and Jordi Roca have transformed Girona into a global culinary destination. Their restaurant, El Celler de Can Roca, doesn’t just have three Michelin stars—it’s been crowned the World’s Best Restaurant twice. Each brother specialises in one part of the dining experience: Joan oversees savoury dishes; Josep curates beverage pairings; while Jordi has mastered the art of pastry. Together, they’ve built…

THE ENERGY WAS palpable on a warm Friday afternoon in Mumbai’s Willingdon Sports Club. Nestled away from the maddening crowd, the grounds hosted the Mumbai leg of Royal Ranthambore BT Golf’s 2024-25 silver jubilee edition. On January 17, 2025, numerous golf enthusiasts converged in the Maximum City, in an event that brought together business leaders and golf enthusiasts. Escaping the city rush was the chairman of the Board of Control for Cricket in India’s (BCCI) Senior Men’s Selection Committee, Ajit Agarkar, who set aside his cricket duties to relax with golf. The 0 to 14 handicap section saw the tightest competition as Karan Kamte of Goldfield Fragrances edged out Navnit Group’s CEO John Wilcox by 41 points to 40. In the well-represented Ladies section, Rohini Chatterjee of Angel One Wealth…