Fiscal Deficit, SEBI's Key Reforms, Trump's Auto Tariff —The Week That Was

Wipro Ltd. winning a 10-year strategic deal with Phoenix Group, a potential delay of up to two years in launching the NSE's initial public offering and the Indian government's borrowing target of Rs 8 lakh crore (NSE. Photo: NDTV Profit)

Here are the key developments from this week.

Borrowing Target

On Thursday, the Ministry of Finance announced that the Indian government, with input from the Reserve Bank of India, decided to borrow Rs 8 lakh crore in the first half of fiscal year 2025-26.

This figure is lower than Bloomberg's estimate of Rs 8.4 lakh crore and slightly higher than the Rs 7.4 lakh crore planned during the same period last year.

Fiscal Deficit

By the end of the first 11 months of fiscal 2025, the Union government's fiscal deficit reached 85.8% of its budgeted target.

From April to February, the expenditure-revenue gap amounted to Rs 13.46 lakh crore, compared to the full-year target of Rs 15.69 lakh crore, as per provisional data from the Controller General of Accounts. During the same period last year, the fiscal deficit stood at Rs 82.8 lakh crore.

Core Sector Growth

The index of eight core industries recorded a growth of 2.9% in February, slowing down from the 4.6% growth seen in January, as per data released by the Ministry of Commerce & Industry.

This marks the fifth straight month of growth for the combined index, with six out of eight core sectors expanding in February.

NSE IPO Can Face Delay

The National Stock Exchange's planned IPO could be delayed by up to two years. This is due to a letter from the Securities and Exchange Board of India highlighting certain issues.

The market regulator has asked NSE to pause the IPO process and suggested a two-year wait to address these concerns, according to a senior official quoted by NDTV Profit.

SEBI's Key Reforms

On Monday, the Securities and Exchange Board of India introduced several reforms. These include setting up a top-level committee to manage conflict-of-interest disclosures by its board members, simplifying disclosure rules for foreign portfolio investors and extending the time research analysts can collect fees to one year.

Trump's Auto Tariff

The new 25% auto tariffs imposed by United States President Donald Trump will cover imported passenger vehicles, light trucks and key parts like engines, transmissions and electrical components.

These charges are in addition to existing duties and will apply only to non-US portions of vehicles and parts imported under the free-trade deal with Canada and Mexico.

As Trump's tariff plans unfold, Tesla stands out as a winner while the automotive industry faces difficulties.

Wipro's Deal With Phoenix Group

Wipro Ltd. has secured a 10-year strategic contract valued at 500 million pounds (over Rs 5,500 crore) with Phoenix Group, the UK's leading long-term savings and retirement company.

Wipro Financial Outsourcing Services Ltd. will provide extensive life and pension administration services to Phoenix Group's ReAssure customers, aiding in the company's operational transformation.

Vedanta's New CEO Of Aluminium Business

Vedanta Ltd. has named Rajiv Kumar as the chief executive officer of its aluminium business for a three-year term. His appointment was approved by the company's board, following a recommendation from the nomination and remuneration committee.

Rajiv Kumar, a metallurgical engineer from BIT Sindri, brings extensive experience from his time at Tata Steel Ltd., where he held leadership positions in the steel and mining sectors since joining the company in 1990.

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