Why Even a Win-Win With the USA Will Be a Big Win For India

India seemingly faces stiff trade barriers from the United States, but in reality, these challenges are not as worrying as they might seem. India’s exports to the US, just about $78 billion a year, are tiny compared to its huge $4 trillion GDP - less than 2 percent. This means that even if US policies make selling to America harder, India’s economy won’t be badly hurt, since it mostly depends on its own people and growing trade with other countries.

The US often blames India for putting high tariffs or taxes on things like cars and electronics. For example, India has very high duties - sometimes up to 100 percent - on imported cars. But even if India cut these tariffs, American cars would still struggle to sell in India because they are far more expensive than cars from India, China, Korea, or even Japan. Indian customers want value for money, and local or Asian brands already meet these expectations at much lower prices. Removing tariffs would not suddenly open the floodgates for expensive US brands.

Trade talks now are caught in a web of international politics, especially because of the Russia-Ukraine war. Some in the US claim India’s oil purchases from Russia help fund the Russian war effort. But in truth, it is the US that has benefited hugely from the Russia-Ukraine conflict, selling over $68 billion worth of weapons to Ukraine since the war began. American companies, especially arms manufacturers, have made big profits while the war continues. Accusing India is more about politics than fact.

US decisions aren’t just about policy, they are influenced by business interests. Former President Biden’s government strongly backed Ukraine, partly because of his family’s connections to businesses there, and this has been well reported in the American press. The current President Trump is more selective, while arms sales continue, deeper US support for Ukraine has faded. Reports link some of Trump family’s business interests in Moscow, which could explain America's cooler approach to supporting Ukraine these days.

India has options. A zero-tariff trade deal with the US, where both sides drop taxes on many or even most products, could actually help India more, and not hurt it. With Indian exports like textiles, chemicals, IT services, and medicines, India could get more access to American buyers. Since US goods are expensive and not highly competitive in India, the risk of India’s market being swamped by US goods is low. Instead, Indian exporters could grow, learning from global standards and succeeding abroad.

But security remains a worry. The US keeps making overtures to Pakistan’s top military, especially welcoming their army chief with honors. This signals that Washington may still view Pakistan as a valuable partner, despite its poor track record on regional peace. This is quite ironic too, given the military animosity the US has with China, and how close China and Pakistan are. Trump family's business interests in Pakistan have also come under scrutiny recently. India must speak up in diplomacy, making it clear that stability in South Asia is non-negotiable.

There have been more pressure tactics. US officials recently raised the H1B visa fees, needed by Indian tech talent hoping to work in America, by almost 40 times. This is meant to push India diplomatically. But it could backfire, with the US tech industry relying on Indian engineers, and hurting them will cause problems for American firms, especially when local talent is in short supply.

India should not get distracted with all these. Instead, it should focus on building better ties with many countries, not just America. India is strengthening relations with the EU, UAE, ASEAN, and Latin American countries, opening up more trade channels.

India can also act quickly when needed. When US tariffs started rising, the Indian government recently responded by slashing GST rates on popular items just before the festive season, giving families more spending power and businesses a boost. Creative steps like tax cuts are a response to tough times and show India’s ability to adapt and thrive.

India’s biggest strength is indeed its booming home market. There are over 300 million middle-class consumers in India, and retail sales during Diwali 2024 alone had hit Rs 2 lakh crore - a sign of powerful domestic demand. By supporting small businesses, startups, and local supply chains, India can weather global storms. In the past year, Indian startups attracted $15 billion in new investment, proving India’s growing confidence.

In the end, the US trade barriers are not an existential crisis for India. Since Indian exports to the US are very small compared to India’s total economic size, and because US goods are not a big threat in the Indian market even without tariffs, India can confidently pursue fairer trade deals. By resisting political pressure, calling out misdirection, and pursuing reforms at home, India can turn challenges into stepping stones toward greater growth and global leadership.

IFHE Ties Up With University of Missouri, For Leadership in Global Business Education

In a landmark move that promises to redefine cross-border academic tie-ups, the ICFAI Foundation for Higher Education (IFHE), Hyderabad, has signed a Memorandum of Understanding (MoU) with the University of Missouri, USA, and its prestigious Robert J. Trulaske Sr. College of Business. This five-year partnership opens new frontiers in faculty exchange, joint research, student mobility, and executive education, with a strong emphasis on creating impactful global learning opportunities. The tie-up specifically links Missouri’s renowned business school with IFHE’s flagship ICFAI Business School (IBS) Hyderabad - one of India’s top management institutions. With the vision of IFHE’s Vice Chancellor Prof. L.S. Ganesh and IBS Director Prof. K.S. Venugopal Rao, this collaboration is poised to blend academic excellence, innovation, and international exposure into a transformative educational experience.

The signing of the MoU between the ICFAI Foundation for Higher Education (IFHE), Hyderabad, and the University of Missouri, USA, represents far more than a formal handshake. It’s a strategic step toward building a bridge of intellectual exchange between India and the United States. Held at the vibrant ICFAI campus in Hyderabad, the in-person ceremony was attended by senior dignitaries from both sides, underscoring the seriousness and scale of this partnership.

Representing IFHE were some of its most prominent academic leaders like Vice Chancellor Prof. L.S. Ganesh, a visionary academician known for his leadership in strengthening IFHE’s research culture and global collaborations; Prof. K.S. Venugopal Rao, Director of IBS Hyderabad, whose initiatives have continuously expanded IBS’s reach in industry-linked education; Prof. S. Vijayalakshmi, the Registrar; and Dr. Sitamma Mikkilineni, Dean of International Accreditation & Collaboration, who has been instrumental in forging global partnerships. Senior deans and directors from across IFHE’s various faculties also lent their presence, reflecting the institution’s collective commitment to the collaboration.

From the University of Missouri’s side, Professor Vairam Arunachalam, Director of the School of Accountancy, and Mr. Eric Jackson, Director of Strategic Partnerships at Becker Professional Education, joined the proceedings. Their presence not only symbolized Missouri’s enthusiasm for the alliance but also signaled a strong focus on areas such as accounting, finance, and professional certifications - domains in which both institutions have established reputations.

The MoU lays the foundation for deep cooperation in multiple spheres: faculty exchange programs to bring global perspectives into classrooms; collaborative research initiatives to address pressing global business and economic issues; student mobility programs for rich cultural and academic immersion; and executive education offerings designed for business leaders in both countries. The agreement also envisions the joint development of academic proposals, undergraduate and postgraduate programs, as well as tailored training and executive development initiatives.

The ICFAI Foundation for Higher Education, a Deemed-to-be University under Section 3 of the UGC Act, 1956, is home to over 6,500 students across five faculties: ICFAI Business School (IBS), Faculty of Science & Technology (ICFAITech), Faculty of Law, ICFAI School of Social Sciences, and ICFAI School of Architecture. IFHE enjoys the distinction of being a Category-1 Autonomous Institution, accredited with an ‘A++’ grade by NAAC and boasting a remarkable institutional CGPA of 3.59 out of 4.

At the heart of this MoU is IBS Hyderabad, the flagship management school of IFHE, celebrated for its industry-aligned curriculum, case-based learning methodology, and impressive corporate network. IBS consistently ranks among India’s top B-schools, producing graduates who are well-prepared for leadership roles in global organizations. Under Prof. Venugopal Rao’s stewardship, IBS has intensified its focus on global exposure, making this partnership with Missouri a natural progression.

Founded in 1839, the University of Missouri (often called “Mizzou”) is the flagship campus of the University of Missouri System and a proud member of the Association of American Universities (AAU), an elite consortium of leading research institutions in North America. Known for its comprehensive academic programs and strong research output, Mizzou attracts students from across the globe.

Its Robert J. Trulaske Sr. College of Business holds the distinction of being one of the oldest AACSB-accredited business schools in the United States. The College offers a full spectrum of undergraduate, MBA, and doctoral programs, emphasizing leadership, innovation, and experiential learning. Its deep ties with industry and its innovative approach to business education make it an ideal partner for IBS Hyderabad, which too is AACSB-accredited, in delivering cross-continental academic value.

Over the next five years, this MoU will see tangible academic and cultural exchanges that extend beyond classroom walls. Joint research projects could focus on emerging fields such as fintech, sustainability in business, and global supply chain resilience. Student exchange programs will expose Indian students to the academic rigor and multicultural campus life of Missouri, while American students will gain first-hand experience of India’s dynamic business environment.

The partnership also stands to benefit the corporate world, with executive education programs tailored for global business leaders, drawing from the combined expertise of faculty from both institutions. The ability to blend Missouri’s rich academic traditions with IFHE’s growing global footprint may well create new benchmarks in international business education.

The collaboration is not merely an institutional alliance but a shared commitment to shaping globally competent leaders who can navigate complex business landscapes with wisdom and innovation. With leaders like Prof. Venugopal Rao driving IBS’s vision, and Missouri’s long-standing academic excellence in play, this partnership is set to be more than the sum of its parts, and a leap toward creating a truly interconnected academic ecosystem.

ICFAI Honours Democracy with S Jaipal Reddy Awards

In a stirring tribute to democratic ideals and public service, ICFAI Law School, in association with the Capital Foundation Society, hosted the prestigious S Jaipal Reddy Democracy Award ceremony at Hotel Taj Krishna, Hyderabad. Telangana Chief Minister Shri A. Revanth Reddy led the event, reflecting on how leaders like the late Jaipal Reddy upheld democratic values through conviction and service. The highlight was the conferment of the Democracy Award to renowned policy thinker Mohan Guruswamy, alongside a slew of recognitions to legal luminaries, social activists, and change-makers across India. The ceremony also featured a compelling lecture by Dr. Sasmit Patra on the challenges before Indian parliamentary democracy. The event underscored ICFAI’s growing stature as a platform for dialogue on governance, justice, and institutional integrity.

Shri A Revanth Reddy, Honourable Chief Minister of Telangana was the Chief Guest  at the event organized by ICFAI Law School in association with Capital Foundation Society.

“In today’s politics, which has moved from ideology to fast delivery, challenging the roots of democracy, we need to remember leaders like Shri Jaipal Reddy, who worked relentlessly for the up liftment and holistic development of people and stood firmly by the values they believed in,” said Shri A. Revanth Reddy, Honorable Chief Minister of Telangana.

He was speaking at an Awards Ceremony at Hotel Taj Krishna, Hyderabad on Saturday, 26th July. The event was organized by ICFAI Law School in association with the Capital Foundation Society.

The Chief Minister said in various capacities, Shri Jaipal Reddy’s decisions were always aimed at the welfare of the people and rooted in democratic values. His focus was on bringing systematic change and addressing challenges from the grassroots. The Chief Minister emphasized that for any government, the focus should be on good governance, and constructive suggestions are a hallmark of a healthy democracy.

Sri Revanth Reddy conferred S Jaipal Reddy Democracy Award to Shri Mohan Guruswamy, prominent author, thought leader and policy advisor and said that Sri Guruswamy has been an inspiration to many.

Chief Minister Shri Revanth Reddy also gave away various awards for personalities who did remarkable service to the society. He conferred Attorney General K Parasaran Award on Mr N Venkataraman, Additional Solicitor General of India; Dr G V Rao, Senior Advocate, Superme Court of India received the Attorney General Soli J Sorabjee Award; Mr P H Arvindh Pandian, Senior Advocate, High Court of Madras received the Solicitor General of India Dipankar Gupta Award; Mr S S Ramdas, President, Mysore Education Society received the Attorney General K K Venugopal Award; Mr B V Subba Rao Distinguished Environmental Expert got the Environmental Protection and Sustainable Development Award.

The Capital Foundation Award was given to Col. (Dr) I V S Gahlot, CEO & Medical Director, Park Hospital, Dr Shilpa Krishna Social Activist,  Dr Thallada Bhaskar Director, CSIR Advanced Materials and Processes Research Instutite, and Mr J Nishanth Reddy, Founder & Managing Trustee, Dharma Seva. The Chief Minister also gave Prof Dr T R Subramanya, Dean CMR University of Legal Studies, Advocate General S G Sundarswamy Award; Mr M Sunil Kumar Advocate and Social Activist received Capital Foundation Social Activist Award, while Ms Anumapa Ramachandra, World Snooker Champion got the Justice A K Sikri Young Achiever Award.

On this occasion, the Dr. B. R. Ambedkar Outstanding Parliamentarian Award was presented to Dr. Sasmit Patra, who also delivered a special lecture on ‘Challenges before Parliamentary Democracy in India’. Dr. Patra highlighted the many challenges currently facing parliamentary democracy, recalling Dr. Ambedkar’s words before the adoption of the Constitution: “However good a Constitution may be, it is sure to turn out bad because those who are called to work it happen to be a bad lot. However bad a Constitution may be, it may turn out to be good if those who are called to work it happen to be a good lot.”

Dr. Patra emphasized that the responsibility of upholding democratic values must lie with the people, but today, it has been outsourced to political parties. He noted that as responsible citizens, we must question acts of omission and commission. He called the disruption of Parliament a serious threat, as it prevents many bills from undergoing legislative scrutiny. He also warned that tensions among the legislature, executive, and judiciary could create fault lines in democracy that must be addressed.

Prof. L. S. Ganesh, Vice-Chancellor of the ICFAI Foundation for Higher Education, in his welcome address, remarked that India must strive for collective brilliance and reduce its reliance on Western validation in intellectual pursuits. Mr. Vinod Sethi, Secretary General of Capital Foundation, Prof K Purushottam Reddy, Executive President of Capital Foundation also. The event was chaired by Mrs Sobharani Yasaswy, Chairperson, ICFAI Society,  Dr P Ravisekharraju, Director, ICFAI Law School, and Coordinated by Dr K Hariharan of ICFAI Law School

The ICFAI Law School is a significant segment of the ICFAI Foundation for Higher Education, Declared as a Deemed-to-be University established under section 3 of UGC Act, 1956. Established in the year 2010, the Law School has successfully completed a decade in professional teaching. It offers BBA LL.B (Hons) BA LL.B (Hons) five year integrated courses and two year LLM course recognized by Bar Council of India. It also offers PhD Program in Law and  Certificate Programs.

The Capital Foundation Society is a registered, non-governmental, non-profit, voluntary organisation which brings together persons of thought and learning to deliberate and articulate public opinion on vital issues. It promotes free flow of information and ideas from diverse sources to influence decision-making. The Capital Foundation Society, since its inception in 1987 has been engaged in providing a platform for policy dialogue and debate on issues of national and international importance. Over 250 events have been organised by the Foundation.

Participants have appreciated the quality of debate and dialogue in each one of them. One of the strengths of India's democratic system is the considerable  space it allows for open and vigorous debate on issues of public policy. Parliamentarians, civil servants, judges, diplomats, journalists, scholars and professionals  come together and exchange ideas.

The topics covered are issues relating to democratic governance and  accountability of representative institutions, electoral and educational reforms, criminal justice system and judicial reforms,  threats and challenges before media, gender justice and women  empowerment, problems of dalits, disabled or differently abled  persons, union budget and its impact on economy and capital  markets, challenges before the new governments, human rights,  national and international developments affecting India and humanity.

When It is By REC, The Future is Electric

Jitendra Srivastava, IAS, CMD, REC Ltd

In the heart of India’s rapidly evolving power and infrastructure landscape, REC Limited stands as a titan, driving the nation’s energy transition and infrastructure growth with unparalleled ambition. As a Maharatna Central Public Sector Enterprise under the Ministry of Power, REC has solidified its position as a cornerstone of India’s electrification and sustainable development goals. Recent developments, ranging from mega investment plans to leadership transitions, bond issuances, and strategic partnerships, underscore REC’s pivotal role in shaping India’s future. Under its new CMD Jitendra Srivastava, REC is destined to leverage its unique position in the power and infrastructure financing sector, to stay ahead as a standout performer in both financial markets and national development.

In April 2025, REC welcomed a new Chairman and Managing Director (CMD), Jitendra Srivastava, a 2000-batch Indian Administrative Service (IAS) officer from the Bihar cadre. Srivastava’s appointment, approved by the Appointments Committee of the Cabinet, marks a significant transition for REC as it diversifies its operations beyond traditional power financing into broader infrastructure projects.

Srivastava brings a wealth of experience from key administrative and leadership roles across sectors such as finance, power, education, public health, and infrastructure. Prior to joining REC, he served as Joint Secretary in the Department of Drinking Water and Sanitation under the Ministry of Jal Shakti, and held critical positions in Bihar’s Home Department and Public Health Engineering Department. 

His academic credentials, including a Bachelor of Arts (Honours) in Economics from Hansraj College, Delhi University, and an MBA in Finance from Cochin University of Science and Technology, equip him with the financial acumen and strategic vision needed to steer REC through its ambitious growth phase.

Srivastava’s appointment comes at a time when REC is expanding its footprint in renewable energy and infrastructure. His diverse experience positions him to navigate the complexities of financing large-scale projects while aligning with the government’s clean energy and infrastructure development goals. Srivastava is poised to lead REC into a new era of innovation and growth.

REC’s recent investment commitments reflect its bold vision to transform India’s infrastructure landscape. One of the most significant developments is REC’s recent Memorandum of Understanding (MoU) with the Mumbai Metropolitan Region Development Authority (MMRDA), signed during the India Global Forum Mumbai NXT 25 event in 2025.

This landmark agreement pledges Rs 1 lakh crore over the next five years to finance a wide range of infrastructure projects in the Mumbai Metropolitan Region (MMR). The MoU, executed by Harsh Baweja, Director (Finance) at REC, and Dr. Ankush R Nawale, Financial Advisor at MMRDA, focuses on urban mobility, affordable housing, and essential civic infrastructure. 

Maharashtra Chief Minister Devendra Fadnavis and other senior officials witnessed the signing, highlighting its importance to the region’s development. REC’s Rs 1 lakh crore commitment reflects their strong dedication to supporting large-scale infrastructure projects that will significantly improve the living standards for the people of Mumbai Metropolitan Region. 

This partnership also underscores REC’s growing role in urban transformation and sustainable development, beyond its original mandate which is reflected in its earlier name and branding, Rural Electrification Corporation.

Beyond Mumbai, REC has also signed an MoU with the Energy Management Centre (EMC), Government of Kerala, for Rs 18,360 crore in financing for pumped storage projects (PSPs) over the next five years. Signed during the Global Green Hydrogen & Renewable Energy Summit 2025, this agreement aligns with India’s renewable energy goals, particularly in enhancing energy storage to address the intermittency of solar and wind power. 

These investments demonstrate REC’s strategic focus on renewable energy infrastructure, a critical component of India’s commitment to achieving 50% non-fossil fuel-based energy capacity by 2030.

REC’s financing prowess extends to high-impact renewable energy projects, exemplified by its Rs 2,147 crore term loan agreement with Chenab Valley Power Project Limited (CVPPL) for the 1,000 MW Pakal Dul Hydro Electric Project in Jammu & Kashmir. 

Signed on February 11, 2025, this agreement supports the development of a project estimated to cost Rs 12,669 crore, located on the Marusadar River in Kishtwar district. The project is a cornerstone of India’s efforts to bolster renewable energy capacity and energy security in the region.

This follows REC’s earlier commitment of Rs 1,869.265 crore to CVPPL for the 624 MW Kiru Hydro Electric Project, also in Kishtwar. These agreements highlight REC’s critical role in financing hydropower, a renewable energy source that complements India’s solar and wind initiatives. 

By supporting such projects, REC is helping India harness its hydropower potential while fostering economic growth in strategically important regions like Jammu & Kashmir.

To fund its ambitious investment plans, REC has been actively tapping the bond market and expanding its borrowing program. In 2025, the company raised Rs 5,000 crore through two bond issuances - Rs 3,000 crore via five-year bonds at a 6.87% coupon rate and Rs 2,000 crore via 10-year bonds at a 6.86% coupon rate. 

These bonds, listed on the BSE and NSE, received an overwhelming response from investors, reflecting strong confidence in REC’s financial stability and growth prospects. Assigned “AAA” ratings by CARE Ratings, ICRA, and India Rating & Research, the bonds underscore REC’s low credit risk and high investor appeal.

In December 2024, REC had raised Rs 2,195 crore through bonds with tenures of 10 years and four months (Rs 1,620 crore at 7.10%) and 15 years (Rs 575 crore at 7.14%). These issuances demonstrate REC’s ability to secure cost-effective financing to support its expanding loan book.

Looking ahead, REC’s board has approved a revised borrowing plan of Rs 1.8 lakh crore for FY26, up from Rs 1.6 lakh crore. This includes Rs 1.55 lakh crore through domestic bonds, debentures, capital gains bonds, rupee term loans, and external commercial borrowings (ECBs), alongside Rs 10,000 crore in short-term loans and Rs 5,000 crore via commercial papers. 

The flexibility to interchange instruments ensures REC can adapt to market conditions and funding needs, positioning it to sustain its robust loan growth of 15-21% over recent quarters.

REC’s financial performance and strategic initiatives have earned it high praise from analysts. CLSA, a leading brokerage, maintains a “high-conviction outperform” rating on REC, citing its best-in-class loan growth, return on equity (ROE) of 19-20%, and an attractive dividend yield, which now stands around 4%. 

The brokerage highlights REC’s strong sanction pool, with 55% of sanctions from the past 2.75 years still undisbursed, primarily in generation, renewable, and infrastructure segments. This pool supports expectations of double-digit to mid-teen loan growth through FY 26-27.

CLSA also notes REC’s impeccable asset quality, with no slippages since FY22 and gross non-performing assets (NPAs) reduced to 2% as of December 2024, a significant improvement from a peak of 7.2% in the last bad cycle. The company’s cautious approach to financing, primarily targeting government-owned projects, further mitigates asset quality risks. 

Including CLSA, most analysts covering REC have “buy” ratings now. The company’s consistent dividend payouts - Rs 15.4 per share in FY25, including a fourth interim dividend of Rs 3.6 per share - further enhance its appeal to income-focused investors.

REC’s role in India’s power and infrastructure financing sector is unparalleled, driven by its status as a Maharatna company and its 20% market share in power sector financing. Unlike its parent, Power Finance Corporation (PFC), which focuses on large-scale power generation projects, REC specializes in transmission, distribution, and rural electrification, aligning with government initiatives to expand energy access in underserved areas. 

Of REC’s outstanding loans of Rs 5,65,621 crore, 88% are to state entities, with top states including Tamil Nadu, Telangana, and Maharashtra, while 33% of its portfolio is in infrastructure and logistics.

REC’s financing model addresses critical challenges in the renewable energy sector, such as intermittency, grid stability, and land acquisition. By providing long-term loans, bridge financing, and structured financial products, REC mitigates risks associated with high upfront costs and long gestation periods. 

Its support for projects like pumped storage and hydropower aligns with India’s goal of achieving 500 GW of non-fossil fuel-based capacity by 2030, as outlined by the Ministry of New and Renewable Energy.

REC’s parent, PFC, holds a 52.63% stake and is a leading NBFC focused on power generation and infrastructure financing. While PFC’s loan book is larger, REC’s specialized focus on rural electrification and transmission complements PFC’s strengths, creating synergies that enhance their combined impact on India’s power sector. 

The historical trend of external appointments for REC’s top management, including high-caliber professionals like Jitendra Srivastava to the CMD post, ensures fresh perspectives and robust leadership, distinguishing REC from many of its peers.

REC’s financial performance continues to be a proof of its resilience. For Q3 FY25, the company reported an 18.42% year-on-year revenue increase to Rs 14,272 crore and a 23.21% rise in net profit to Rs 4,076 crore. Its loan book growth, low NPAs, and high ROE position REC as a leader among NBFCs. 

The company’s ability to secure AAA-rated bonds and maintain investor confidence further bolsters its financial stability. Strategically, REC is diversifying into non-power infrastructure, as evidenced by its MMRDA partnership, while maintaining its core focus on renewable energy and rural electrification. 

The inauguration of a state-of-the-art Experience Centre in Gurugram recently, showcases REC’s contributions to the power and infrastructure sectors. Featuring digital displays and interactive exhibits, the centre serves as a knowledge hub, reinforcing REC’s commitment to innovation and transparency.

REC Limited is at the forefront of India’s energy and infrastructure transformation, leveraging its financial strength, strategic investments, and visionary leadership to drive sustainable growth. Under Jitendra Srivastava’s guidance, REC is poised to capitalize on its Rs 1.8 lakh crore borrowing plan, mega investment commitments, and robust loan agreements to power India’s renewable energy and infrastructure ambitions. 

With a stock that combines high dividend yields, strong fundamentals, and analyst confidence, REC remains an investment worth considering and a vital partner in India’s journey toward a cleaner, more connected and electric future. Since its IPO and listing in 2008, that is within 17 years, REC has grown investor wealth by more than 30 times.