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Best of BS Opinion: Bonds, power, and the spirit of the Himalayas
Take the US, for instance. After over a century of triple-A glory, its sovereign bonds are slipping. Moody's has joined Fitch and S&P in docking America's rating, citing ballooning deficits and unstoppable interest costs. With the 30-year yield peaking above 5 per cent, it's not just a fiscal warning, it's a shift in how global capital flows, notes our first editorial. India, too, could feel the chill as narrowing bond yield spreads may tip investments away from equities, putting pressure on our rupee. As global borrowing costs spike, the dance is turning into a test of stamina.
Closer home, India's power utilities are taking tentative steps toward reform—listing on exchanges to enforce transparency. Gujarat's GETCO leads, but discoms across the country are still slipping on decades of political meddling, highlights our second editorial. Despite multiple bailouts, losses hover at ₹6.8 trillion, with pricing reforms stuck. Listings may force financial discipline, but it's like expecting figure skaters to perfect a routine on cracked ice. Change is needed, but the surface is fragile.
Meanwhile, Xi Jinping and Vladimir Putin have just performed a bold ballet in Moscow, affirming their alliance amid US-China trade manoeuvres and India-Pakistan skirmishes, writes Shyam Saran. Their synchronized steps, military parades, diplomatic statements, and joint condemnations of the West, mask a deeper chill: China is edging toward tech parity, and India must rethink its footing in a shifting strategic landscape.
In corporate India, the tension is more subtle. Promoters still dominate the floor, outvoting institutional dissent with ease, argues Amit Tandon. While regulatory reforms push for inclusivity, dissent often skates by unacknowledged. Amit Tandon proposes a gentle corrective—a 'dissent review' to ensure boards engage when more than 10 per cent disagree. Not a rupture, just a ripple, to keep the balance honest.
And in the Himalayas, Anu Malhotra dances with the unseen. Her book Shamans of the Himalayas captures trance rituals, divine possessions, and the unspoken codes that guide village life in Kullu, writes Neha Kirpal in her review. Here too, the ice is sacred, the ground invisible, the faith absolute. A different kind of balancing act, but no less daring.
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Indian Express
24 minutes ago
- Indian Express
Trump's 50% tariff: Beginning to get foothold in US market, Agra's leather belt takes a hit
US Tariffs Impact on Indians: In a sprawling shoe manufacturing unit in Agra, men in sweat-soaked vests move along the assembly lines in a choreography honed over the years — working in perfect rhythm, their hands following the machine's pace. As each shoe travels down the conveyor belt, it pauses briefly at each station dedicated to a specific task, such as removing wrinkles, cotton brushing, seat lasting, sole heat activation — a display of how a hundred small acts turn the raw leather into products destined for sale in international markets, including the US. However, US President Donald Trump's decision to raise tariffs on Indian goods — hiking duties on leather footwear from 5-8% to 25%, with a further 25% increase threatened by August 27 — has cast a shadow over the unit. India's leather exports across the world rose from $3,681 million in 2020-21 to $4,828 million in 2024-25 — a 31% rise. In the same period, exports to the US rose from $645 million to $1,045 million — a 62% jump. For manufacturers who had only recently begun gaining a foothold in the US market, the move has come as a significant setback. 'There will definitely be an impact. We only have three US-based customers, as most of Agra's exports have traditionally gone to Europe. But the US was a major market we were trying to enter. It's a huge consumer base, and any success there would have changed the scale of our business. This is going to slow that push down,' said Sushant Dhapodkar of Tej International Pvt Ltd. Agra is one of India's largest footwear manufacturing hubs, alongside Kolkata, Kanpur and Chennai. The city has around 10,000 micro-units apart from 150 small-, 30 medium-, and around 15 large-scale industries. Many use leather imported from Turkey, which takes 45–50 days to arrive via road, along with Indian leather sourced mainly from Kanpur and Chennai, and some from Jalandhar. While Europe remains the mainstay for Agra's leather shoe exporters, the US market, the largest consumer base in the world — accounting for 24% of global consumption despite just 4% of the population — has been developing fast. In the last quarter alone, nearly half of Agra's export business, worth about $594 million, went to the US. The growth was so sharp that many manufacturers had invested heavily in expanding production capacity. 'Those who were earlier working on six assembly lines are now running 14,' said Puran Dawar, chairman of the Development Council for Footwear and Leather Industry and president of the Agra Footwear Manufacturers and Exporters Chamber. 'We ourselves had set up a unit bigger than our existing one to tap into the US market. That's definitely out of the question now.' The tariff announcement has also come at the peak of production for autumn and winter collections — the busiest for Agra's export factories. Orders for leather boots, closed-toe shoes, and high-end formal wear are typically placed months in advance by American buyers. These are now in the final stage of production or ready for shipment — but buyers have been calling to put the stock on hold. According to manufacturers, some buyers are ready to look towards China for an alternative. Dawar said: 'This is the peak season for autumn and winter orders, and buyers are already telling us to hold shipments, even for goods ready to go. They want us to share the tariff loss. But the US is a price-sensitive market — nobody can afford to share even 12.5% of the burden, let alone 50%. Some buyers have already cancelled and are looking to China because their tariff is 30%, and to Vietnam, where it's just 20%. We can't compete at those rates.' Nazir Ahmed, owner of Park Exports, said the problem goes far beyond price competition. 'Now with the initial 25%, it's going to be a disaster unless Trump goes back to the original tariff,' he said. 'This won't just be a problem for India, but for the US as well… the higher the duty, the more expensive their product will be. In countries where lower tariffs are imposed, they will have the advantage, and we wouldn't be able to compete with them,' said Ahmed. He also highlighted the potential impact back home. 'If orders aren't placed, factories will be without work. And if factories are without work, workers will be without work. This industry is labour-intensive, so unemployment could run into millions if this continues. And I'm not just talking about manufacturing — textiles, tools, every industry linked to this process will take a hit,' he said. Manufacturers said the setback is particularly bitter because of the efforts they made to break into the US market. 'It's a setback to our plans to double or triple exports to the US,' Ahmed said. 'The government increases targets every year, and the American market has the potential to match our exports to Europe. Now all that planning is on hold.' Others, like Dawar, believe the hike is a 'pressure tactic' and will eventually be rolled back. 'The government is in touch with us to see how they can help. We were called to meet Commerce Minister Piyush Goyal last week to discuss relief. One idea discussed was that the government could bear a part of the hike, and the remaining could be between the manufacturer and the US importer.' The current uncertainty, meanwhile, is already triggering ripple effects beyond Agra. Naseem Khan, a Kanpur tannery owner whose leather is supplied to manufacturers linked to US exports, said clients have begun cancelling or freezing orders. 'Whatever the stage of production, they're saying stop immediately. Even though we don't directly export to the US, we are deeply connected; the leather we produce is approved by those who manufacture finished goods for the US,' Khan said. Meanwhile, exporters are brainstorming alternatives. Russia, once a major market for Agra, is being considered for revival. Others are looking inward to India's growing middle class — a customer base whose purchasing power has risen in recent years. Until now, much of the footwear sold domestically was made locally from scraps and leftovers of the export process. But with international orders in limbo, manufacturers are weighing whether to redirect their best designs and full-scale production to the home turf. Chairman, Council for Leather Export, Rajendra Kumar Jalan said, 'Currently, the dispatches have come to a standstill. All US buyers and Indian manufacturers exporting finished goods to the US have put their orders on pause because of the 50% tax. When the tax was raised to 25%, there was still some hope — we were still on par with competing nations like Bangladesh, Indonesia, Vietnam, and, to some extent, China. But now, we are completely out of the picture. China, in fact, is gaining an advantage because the additional Russian oil tariffs do not apply to them, and they also enjoy a 90-day moratorium.' 'That being said, the US purchases from us are in large volumes, and for these bulk buyers, getting an alternative source of production for these huge orders, and that too in a short period, will be extremely difficult,' said Jalan 'At present, the reaction is one of panic. But we remain hopeful of finding alternative markets. There will be competition from other leather manufacturing nations, but our focus will be on countries where India has signed or is about to sign an FTA — countries such as Chile, Peru, and some European nations,' he said. — With inputs from Nirbhay Thakur
India Today
3 hours ago
- India Today
India-US trade talks: Should New Delhi wait and watch or retaliate? Experts debate
The top focus of this episode of News Today is on India-US trade talks. Amid the India-US trade deal stalemate, New Delhi is focussing on export diversification. Meanwhile, sources said US trade representatives will travel to India for the next round of talks. While US President Donald Trump is set to meet Russian President Vladimir Putin in Alaska on Friday. Ahead of the talks aimed at ending the Russia-Ukraine war, Trump on Monday claimed to have dealt a big blow to Moscow by imposing unprecedented tariffs on India. While the US President trumpeted the tariffs on India, the highest in the world, he extended the trade truce with China by another 90 days, right after he called his relationship with President Xi Jinping very good. Now the trade talks between India and the US hang in the balance as Trump hopes putting pressure on New Delhi to curtail ties with Moscow will help him reach an agreement on Ukraine. So, is Trump linking tariffs to Ukraine war? Should India wait and watch or retaliate? Watch as panellists debate.
United News of India
3 hours ago
- United News of India
Hindalco Industries Q1 FY26 rises 30 pc at Rs 4,004 Cr
Mumbai, Aug 12 (UNI) Hindalco Industries Ltd has posted a profit after tax (PAT) of Rs 4,004 crore for the June 2025 quarter (Q1 FY26), which is a 30% year-on-year (YoY) increase, while the company's revenue rose 13% to touch Rs 64,232 crore, the company said today.. According to a company statement, the consolidated net debt-to-EBITDA ratio improved to 1.02x as of June 30, 2025, from 1.24x a year earlier, while consolidated EBITDA for the quarter stood at Rs 8,673 crore, which increased by 9% YoY, while net profit rose by 30% to Rs 4,004 crore. Aluminium upstream quarterly Earnings Before Interest, Taxes, Depreciation & Amortisation (EBITDA) stood at Rs 4,080 crore, increasing by 17%, with industry-best margins of 44%. The aluminium Downstream segment posted its highest-ever quarterly EBITDA of Rs 229 crore, surging 108% YoY, while the EBITDA for the copper segment is Rs 673 crore, in line with expectations, according to the statement. Hindalco's US-based subsidiary Novelis' shipments rose 1% to 963 kilotonnes, supported by an 8% growth in beverage can volumes. The company's cost reduction initiatives aim for $100 million in annualised savings by FY26 and $300 million by FY28. Key growth projects, including Bay Minette and India expansions, remain on schedule, the company statement mentioned. The strong results were led by a robust performance in the India business and resilient growth at Novelis. The India aluminium upstream segment delivered another strong quarter with EBITDA of Rs 4,080 crore, which is an increase of 17%, while aluminium downstream segment achieved a record Rs 229 crore EBITDA, increasing by 108% YoY. Despite challenges, Novelis saw a 1 per cent rise in total shipments, driven by an 8% jump in beverage can shipments over the previous year's quarter, the statement mentioned. UNI XC SSP
