MAYASIA BUSINESS OUTLOOK8NEWSROOMTata Steel will invest $2.5 billion (Rs 21,411 crore) in its Singapore unit, T Steel Holdings, to strengthen its European business operations and pay off debt. Tata Steel owns the businesses in the United Kingdom and the Netherlands through T Steel Holdings.Any overseas investment exceeding $1 billion in a fiscal year requires prior RBI approval. The board approved the investment proposal on Monday. T Steel Holdings is 100 percent. owned by Tata Steel, so the Singapore company's shareholding will remain unchanged following the capital infusion. This move comes after Tata Steel converted $565 million (Rs 4,822 crore) in loans to equity in fiscal year 25.The Indian company's units in the United Kingdom and the Netherlands are undergoing a transformation as a result of regulatory changes driving decarbonization in Europe. This entails discontinuing legacy assets and replacing them with new production routes centered on electric arc furnaces.Future cash flows will be determined by the impact of evolving carbon border adjustment regulations (CBA is Europe and the United Kingdom's method of establishing a fair price for carbon emissions while producing carbon-intensive goods). It charges this price when goods are imported into its territory, ensuring a level playing field for local producers facing comparable carbon costs), availability/pricing of clean raw materials, and assumptions about green steel costs and market premiums, according to the Indian company. TATA STEEL TO INVEST $2.5 BN IN SINGAPORE UNIT TO STRENGTHEN EUROPEAN BIZIndia's recorded total inflation rate of 3.16 percent is said to be the lowest recorded inflation in the past six years. This is the sixth straight month that inflation has fallen. The prior lowest reading was recorded in the month of March, with a total interest rate of 3.34 percent.The newly recorded inflation rate of 3.16 percent is lower than the expected inflation rate of 3.27 percent by Reuters. The key inflation in the metric of the country, food inflation, dropped to 1.78 percent in April, compared to 2.69 percent from March's record of food inflation rate. Therefore, the food inflation may remain stagnant for some time.The inflation figure for the Reserve Bank of India (RBI) may clear the way for cut rates. RBI will be shifting its stance to accommodative from neutral. This change in stance is to stimulate the economy through softer interest rates. Governor of RBI, Sanjay Malhotra in a statement released on "Going forward too, considering the evolving growth-inflation trajectories, monetary policy needs to be accommodative." The most recent meeting by RBI, concluded with a cutoff in policy rate to 6 percent.The Bank of America has expected the GDP growth to recover up to 6.7 percent when compared to the GDP of December's ending quarters of 6.2 percent. But, RBI has estimated a rate of 6.5 percent full year GDP. HSBC has previously highlighted that reciprocal tariff can directly shave off 0.5 percentage point from India's full-year growth for FY26 March ending.But the core inflation rate is expected to rise due to higher gold prices. The rise in the gold has also contributed to the tensions in the global market. INDIA MARKS LOWEST LEVEL IN INFLATION RATE IN THE PAST SIX YEARS
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