THE BIG IDEA | PAGE 26 COMPANIES | PAGE 4 Achildhood space dream takes flightwith rockets BRANDWAGON | PAGE 9 Maruti drives car exports as rivals lose ground CHENNAI/KOCHI, MONDAY, NOVEMBER 16, 2026 Streamers seek bigger slice of digital ad pie FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XLVII 162, 26 PAGES, `12 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E GOVERNMENTSLOOKBEYONDTAXESTOMEETGROWTHAMBITIONS States step up efforts for fresh revenue streams PRASANTA SAHU New Delhi, November 15 IN THE NEWS COMPANIES PAGE 4 INDIA-BOUND FLYERS ESCAPE US FLIGHT CHAOS DIRECT USINDIA passengers largely escaped nationwide flight crisis, but travellers relying on domestic connections faced trouble as cancellations and delays continued through Sunday, reports Nitin Kumar. ECONOMY PAGE 2 INDIA, EGYPT WEIGH RUPEE TRADE AND FTA INDIAAND EGYPT are exploring localcurrency trade settlement and a preferential or FTA to improve market access and competitiveness, Commerce Minister Piyush Goyal said on Sunday, reports FE Bureau. OPINION PAGE 8 WHO JUDGES INDIAN SCHOLARSHIP? WRITE SANJEEV SANYAL, SATVIK DEV & PAYAL SHARMA RBI holds firm on 50% MFI repayment cap THE RBI REJECTED MFIs’ demand to ease the 50% fixedobligation-toincome cap, with Deputy Governor SC Murmu saying it is already liberal given lowincome households’ limited financial cushion, reports ■ Page 6 FE Bureau. THE HUMAN FACTOR WHENTHE BOSS IS EVERYONE'S BUSINESS PAGE 8 FACED WITH LIMITED flexibility to raise tax rates and little prospectofasignificantincrease intransfersfromtheCentre,severalstatesareexploringnewrevenue sources to finance their ambitiousgrowthplanswithout increasingtheirdebtburden. Karnataka, Tamil Nadu, Maharashtra and Odisha are leading the effort, setting up expert committees to identify fresh revenue streams, strengthen tax collections and unlock value from government assets.The push comes as several states pursue ambitious economic targets, including planstoexpandtheirrespective GSDPsto$1trillion,evenasrising expenditure on welfare LEADING THE DRIVE State finances: Key indicators of FY25 Fiscal deficit/ Revenue receipts (% surplus (% of of GSDP) GSDP) Karnataka Tamil Nadu Maharashtra Odisha Committed expenditure (% of revenue expenditure) -3.24 -2.95 -3.25 -2.74 -2.81 12.6 8.9 9.5 11.8 22.5 43.07 32.05 54.01 29 36.54 Source: CAG, RBI schemes and subsidies puts pressure on theirfinances. The challenge is to mobilise additional resources without imposing an excessive burden ontaxpayers,underminingeconomicgrowthorrelyingheavily on borrowings.States are seek- ing to strike a balance between funding welfare programmes and social infrastructure, encouragingproductiveinvestment and ensuring the tax system also serves as an effective tool forredistribution. The four states are examin- Total liabilities (% of GSDP) 27.9 23.5 27.5 19.4 15.8 ing a range of options, from liquor and property taxes to monetisation of government land,dividendsfrompublicsectorenterprisesandusercharges foressential services. Continued on Page 11 Pvtcreditfaces$7-bnrefinancingwave ● Softmarketsand projectdelaysto drivedebtrollovers RAGHAVENDRA KAMATH Mumbai, November 15 INDIA’S PRIVATE CREDITmarket is heading into two busy years of refinancing as loans written after Covid fall due, industryplayers said. Privatecreditloanstypically run five to six years, so money BIG MONEY ■ Next year could see $5-7 billion of refinancing, or 55% more than normal refinancing deals ■ Typically, Indian private credit sees deals of $8 billion to $9 billion ■ Refinancing deals account for about 50-55% of it, which is around $4-$4.5 billion lent from 2021 comes up for repayment next year and the year after. With equity valuations cooling amid geopolitical tension, and supply-chain disruptions hurting revenue and profits,promoters are expected to refinance ratherthan repay. The market typically does $8-9billionofdealsayear,about half of it — $4-4.5 billion — is refinancing. Next year that couldriseto$5-7billion,players said, led by real estate, infrastructure and renewables. Gaurav Sarayan, partner at KotakAlternateAssetManagers, said geopolitical tensions and policy shifts have slowed some sectors,but traditional debt still runs on its original,rigid repayment schedule.“We are seeing several cases where a project’s actual cash flows simply aren’t keeping pace with its debt-servicingobligations,”hesaid. Continued on Page 11 Q2 lays bare a two-speed consumereconomy RAJAS KELKAR Mumbai, November 15 THERE ARE, IT seems, two Indian consumers. One is buying a bigger motorcycle and ordering a new suit for a winter wedding.The other is hunting foravaluemeal,postponingthe repaintingofthehouseandpaying for a new shirt in monthly instalments. Rarely have the two been seen as clearly side by side as in corporate India’s Septemberquarterearnings. “Thetophalfofthepyramid, the pricierproducts,not just for us,butfortheindustry,aredoing far better than the entry-level products,”RakeshSharma,joint managingdirectorofBajajAuto, told analysts last month. The numbers bear him out. Bajaj Auto’s premium motorcycles of 150cc and above, alongwith its electric scooters, grew as much as 32%, against 10% for the two-wheeler industry as a whole. Apparel makers, jewellers, hoteliers, restaurant chains and consumer goods companies SPENDING DIVIDE ■ Premium motorcycles, luxury hospitality, branded jewellery & wedding wear saw sustained demand ■ Middle-income households sought discounts and deferred discretionary purchases ■ Instalment financing spread beyond electronics to apparel and other consumer categories ■ Tighter lending norms and rising household debt raise questions over credit-led consumption growth describe a similar divergence. Economists call this Kshaped growth. But India’s divide is more intricate than the familiar contrast between prosperous cities and struggling villages. “It is not just about the Kshaped growth. It is about the geographies in our country where discretionary spending exists and where it does not,” THE SECURITIES AND Exchange Board of India (Sebi) will soon issue detailed guidelines forthe responsible use of artificial intelligence (AI) in the capital markets, Chairman Tuhin Kanta Pandey said at the 45th India International Trade Fair (IITF) 2026, emphasising the need to balance technological innovationwith investor protection. ■ PAGE 6 THE WINTER SESSION of Parliament is likely to begin in the first week of December, with possible dates discussed at the highest levels of the government, sources familiar with the discussions told PTI. The government is expected to push the proposed delimitation-linked women’s reservation bill during the session. SIGNS OF RESILIENCE SHUBHAM RANA New Delhi, November 15 THE INDIAN ECONOMY likely grewat7.7%inJuly-September, according to an FE poll of 12 economists. High-frequency indicators suggest economic activity remained resilient despite fears of a slowdown in growth momentum amidst headwindsarisingfromthewar inWestAsia,theyobserved. At 7.7%, the Septemberquarter GDP growth will be a tadlowerthan7.8%intheJune quarter and 8.1% in the yearago quarter. DBS Bank 7.7 Axis Bank 7.6 ICRA 7.5 HDFC Bank 7.7 Bank of Baroda Brickwork Ratings 7.4 BofA Global Research 7.7 However,economists’expectation for Q2 GDP growth,data for which will be released on November 30, is much higher thantheReserveBankofIndia’s (RBI) projection of 7.2% as well as the finance ministry’s nowcast of 7.35% forthe quarter. “Q2 GDP print could stay broadly in line with Q1 or even exceedit.Strongcorporateprof- 7.0 its and healthy high frequency indicators suggest a steady demand in H1,” said Madhavi Arora,chiefeconomistatEmkay Global Financial Services.“Second half, however is likely to slow to sub 7% as El Nino hit, tighter monetary conditions and fading GSTeffectweigh.” Continued on Page 2 DEDICATED FUNDS,VARSITYTIE-UPS BACKYOUNG ENTREPRENEURS VCsturntocollegecampusesin searchofthenextbigstartup S SHANTHI Bengaluru, November 15 COLLEGE CAMPUSES ARE emerging as a new hunting ground forventure capital (VC) firms, with investors increasinglybackingstudentsandcollege dropouts even before they haveafullydevelopedbusiness plan or a company to their name. What was once largely confined to campus projects and entrepreneurship competitions is now attracting institutionalcapital,withdedicated fundsanduniversitiesbuilding investment platforms to turn student ideas into businesses. Campus Fund, a VC firm focused exclusively on student anddropoutfounders,israising its third fund of $100 million. In six years, it has evaluated morethan25,000startupsand backed 50, including Digan- FUNDING IDEAS ■ VC firms are increasingly supporting students and college dropouts even before they come up with a fully developed business plan ■ Campus Fund is raising its third fund of $100 million, having backed 50 startups in six years ■ gradCapital has invested in over 40 startups, while Masters’ Union has launched a `100-crore venture platform ■ VIT has tied up with Thinkuvate and ValleyNXT to invest up to `10 crore in student ventures ■ Inexperienced founders, small initial cheques and follow-on dilution pose challenges for investors tara, EtherealX, Sarla Aviation, Banza,Gramiyaa and D-Nome. Across its three funds, it has deployedaround`200crore.Its portfolio companies have subsequently raised more than `1,500 crore from investors such asAccel,Peak XV,Chiratae and DST Global.“Student and dropoutfoundersareanunder- valued asset class. They have time, access to labs and research, and don’t yet know what is impossible,” Richa Bajpai, founder and CEO of Campus Fund,told FE. The trend is drawing in other specialist investors as well. gradCapital, which has raised more than $10 million Continued on Page 11 WinterSessionlikelyin firstweekofDecember July-September GDP growth projection (%) Emkay Global Financial Services 8.0 IDFC FIRST Bank 8.0 State Bank of India 7.8 Pantheon Macroeconomics 7.8 Kotak Mahindra Bank 7.8 said S Chandrasekhar, professor at the Indira Gandhi Institute of Development Research (IGIDR),Mumbai. The earnings season adds another layer to that picture: within every geography, purchasing power increasingly determines which businesses flourish. SebitoframeAInorms, investorprotectionkey Q2 growth seen at 7.7%, above RBI,govt forecasts FE POLL ■ Tractor sales weakened after last year’s GST-led buying surge, clouding the rural demand outlook acrossthreefunds,hasinvested in over 40 startups. It typically invests around $40,000 for a 4% stake, while also offering smallergrantstostudentslookingtotestideas.Theinvestment ecosystemisexpandingbeyond standalone funds. Continued on Page 2 CHENNAI/KOCHI