Just a Little Beyond the Headlines - 17/02/25
Hey, and welcome to a little experiment we’re calling Just a Little Beyond the Headlines!
If you’re a regular listener of The Daily Brief, you know we wrap up each episode with quick tidbits—those extra headlines that didn’t make it to the main stories. Many of you keep telling us that you love them and ask for more as well. We got annoyed with all the comments asking for more and we decided to run a small experiment by moving these tidbits to a separate show. Now, we have no clue if this is good, bad, or if it is even worth it. So this is the first episode. If this doesn’t go viral, we are canning this.
So, here we are—giving you what you want. This show is for all those stories that didn’t quite fit into The Daily Brief, but are still worth your time. And we’re not just here to parrot headlines—you’ll get that one extra insight you wouldn’t catch just from reading the news. That’s why we’re calling it Just a Little Beyond the Headlines.
Oh, and to keep things neat, we’re rolling with an EIC format—E for Economy, I for Industry, and C for Company. That way, from macro trends to company-level moves, you’re covered for the day. You can watch it here.
Alright, let’s dive in.
Economy
[1] Lower Tax by Foreign Companies
Business Standard reported that new data from CMIE, that is Centre for Monitoring Indian Economy, shows that foreign companies in India paid just 24.36% of their pre-tax profits as tax in 2023-24—the lowest in decades. This drop is due to corporate tax cuts and GST reforms, which have made India a more attractive place for businesses.
At the same time, Donald Trump’s administration pulled the U.S. out of a global tax deal that aimed to set a minimum 15% corporate tax worldwide. This raises concerns that big companies might move profits to countries with lower taxes to save money. We saw that happen when Apple shifted jurisdictions to Ireland in 2015 and it gave Ireland’s GDP a 25% boost.
For India, this creates uncertainty. Without a global tax rule, countries may compete to offer even lower taxes, making it harder to maintain revenue. While India’s tax cuts have helped attract businesses, it will need to balance competitiveness with protecting its tax base, ensuring that companies don’t just come for the lower rates but also contribute fairly.
[2] NBFCs have heavy demands from RBI
Business Standard reported that a group of NBFCs met with RBI with a list of requests:
More Foreign Borrowing: They want the RBI to raise the external borrowing limit and allow housing finance companies to use these funds beyond just affordable housing. Why? - because the NBFCs are currently going through a funding crunch and they cost much less than other sources of funds.
Easier Loan Recovery: They asked for SARFAESI rules to apply to smaller loans (below ₹20 lakh) to make recovery smoother. These rules give power to NBFCs so that they can recover NPAs faster, but with greater penetration of lower ticket size loans, NBFCs want the SARFAESI rules to apply to them too.
Green & Auto Loans: They want lower risk rules for EV and CNG vehicle loans and want two-wheeler loans to be treated as priority sector lending. By lowering risk rules, NBFCs would find it easier to lend more money for buying EVs and CNG with the same amount of money parked with RBI.
Gold Loans: NBFCs dealing in gold loans asked for a separate NPA classification, arguing that gold-backed loans are different from other loan types.
[3] US Tariffs won’t impact India trade as badly
A new SBI report says that if the U.S. raises tariffs on Indian goods by 15-20%, the impact on Indian exports will be small—just a 3-3.5% decline. This drop can be offset by India's growing export goals.
The U.S. is India's biggest export destination but India is reducing its dependence on any single market by diversifying trade..
The report also shows that U.S. tariffs on Indian goods rose from 2.7% in 2018 to 3.8% in 2022. Meanwhile, India increased tariffs on U.S. imports more sharply, from 11.6% in 2018 to 15.3% in 2022.
India is focusing on expanding exports, adding more value to products, and exploring new trade routes to stay competitive, even if tariffs rise.
Industry
[1] Highest SIP Stoppage Ratio ever
The Indian markets are under pressure, with the Nifty and broader indices facing steep corrections. The Nifty 50 has dropped significantly from its peak, Nifty Smallcap 250 and Midcap 150 down 22.1% and 18.6%, respectively. While market volatility has sparked concern, especially among retail investors, a bigger stir is brewing around SIP (Systematic Investment Plan) closures.
In January 2025, SIP stoppages hit 109%. The SIP stoppage ratio measures the number of Systematic Investment Plans (SIPs) getting canceled against the number of new SIPs registered. This hovered around 50-55% last year.
Bears are seizing on this number to fuel panic, but the data tells a different story. A key reason for the spike was a 25 lakh account closure due to reconciliation between exchanges and RTAs—a one-off technical adjustment rather than a sign of investor exodus.
Despite the noise, SIP inflows remain strong at ₹2.37 lakh crore this fiscal—19% higher year-on-year—showing continued retail commitment. The reality? The market correction is real, but the SIP “panic” is overblown.
[2] Automatic Cars are expensive
ET reported automatic cars are gaining popularity in India, but their high price is keeping many buyers stuck with manual transmissions. The average price of an automatic car in 2024 was ₹16.33 lakh, while manual variants cost significantly less at ₹10.22 lakh—a steep ₹6.10 lakh difference.
A key issue is that automatic transmissions come bundled with luxury features like sunroofs, LED lamps, and alloy wheels, forcing buyers to pay for extras they don’t necessarily want. Many customers are only looking for ease of driving, but automakers are positioning automatics as premium models.
Despite the rising demand for automatic cars in metro cities, where over 39% of cars sold are automatic, affordability remains a major hurdle. Until manufacturers offer affordable automatic variants without unnecessary features, manual cars will continue to dominate India’s roads.
[3] Indian Wearable Market shrinks for the first time
Hindustan Businessline reported, For the first time, India’s wearable market shrank in 2024, with shipments falling 11.3% year-on-year. This includes everything from your smartwatches to fitness trackers. The biggest hit was in smartwatches, which saw a 34.4% drop, bringing their market share down to 29% from 40% in 2023.
This data is from IDC, International Data Corporation, a global market intelligence, and advisory services provider
The reason? Lack of innovation and too many similar products in older categories. With few major upgrades, consumers saw little reason to buy new models of smartwatches. Even lower prices couldn’t boost demand—the average smartwatch price fell by 9.1%, yet sales still declined.
On the bright side, emerging wearable categories like smart rings and smart glasses are showing promise, expected to grow at double-digit rates in 2025. Companies are now focusing on advanced health monitoring features like blood pressure tracking and AI-driven insights to revive demand.
Company
[1] Everyone has eyes on AkzoNobel’s Paint Business
Dutch paint giant AkzoNobel is selling its decorative paints business of Dulux across South Asia, including India, Pakistan, Nepal, and Sri Lanka. This has sparked a bidding war among private equity (PE) firms like Warburg Pincus, Carlyle, and CVC Capital Partners for the entire South Asia portfolio.
For their Indian business, paint majors including JSW Paints, Pidilite, and Indigo Paints are leading the race. However, Asian Paints, Berger, and Birla Opus have opted out.
AkzoNobel is selling this business despite being profitable in India because of its small market share (less than 10%). The company previously acquired this business from Imperial Chemical Industries (ICI) in 2008 but now seeks to focus on its powder coatings segment.
[2] Religare Takeover Saga
There is a takeover battle for Religare Enterprises. It began in September 2023, when the Burman family (owners of Dabur), who already held 25% in the company, made an open offer to buy another 26%. This was opposed by Religare’s management, led by then-chairperson Rashmi Saluja. She claimed the offer price of ₹235 per share undervalued the company.
In January 2025, U.S.-based investor Digvijay ‘Danny’ Gaekwad attempted to make a competing offer of ₹275 per share, but SEBI rejected it, citing procedural issues. Gaekwad then approached the Supreme Court, which allowed his bid—provided he deposited ₹600 crore with SEBI. He failed to do so, and the Burman family’s offer proceeded.
The case has raised questions about SEBI’s takeover rules. Some experts argue that SEBI needs clearer guidelines on how competing bids should be handled to ensure fairness and transparency.
[3] Private Hospitals are expanding smart
Business Standard reported that India’s private hospitals are set for a major expansion in FY26 and they have two focuses in mind. Increasing bed capacity and strengthening oncology services — which are meant for cancer treatment.
This push is driven by rising demand for healthcare, an increasing burden of chronic diseases, and the need for advanced medical infrastructure, especially in Tier-II and Tier-III cities.
With cancer cases expected to rise by 13% in 2025, hospitals are adding more specialized facilities like radiation therapy units and chemotherapy centers. The government is also stepping in, setting up dedicated cancer treatment hubs across districts.
This shift highlights a broader transformation in India’s private healthcare—hospitals are no longer just expanding, they are becoming “more specialized”. Instead of just adding beds, they are focusing on high-value, high-need treatments, making private healthcare a critical player in India’s medical landscape.
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Game changing initiative! Economy, industry, company 👌
Great initiative