CHENNAI, NEW DELHI, MUMBAI, BENGALURU, KOLKATA, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 17 NO.

234

Monday, October 2, 2023

Think Ahead. Think Growth.

mint primer QUICK EDIT

How falling rural Gandhian

incomes will hurt wisdom
This Gandhi Jayanti, we should
festive demand reflect upon an important
observation the Mahatma made
about us-versus-them thinking
BY SAYANTAN BERA and its corrosive effect on
Following an uneven monsoon, demand for work under the national judgement. Too often, he
rural jobs scheme has soared, while farm revenues have been hit by remarked, do we judge others
crop losses and export curbs. Will a dent to rural incomes take the by their worst actions and our-
sheen off festive season demand? Mint explores. selves by our best principles.
This double standard, often
A sign of distress adopted without due self-
Millions of rural families chasing low-paying jobs means a short supply of awareness of it, is worth a mull-
regular jobs, or a likely hit to household earnings. over in various contexts today.
Work demand under rural jobs scheme (No. of households, in million) In the context of India’s reli-
Jul Aug Sep gious diversity and the social
2019-20 14.6 14.3
dynamics thereof, for example,
18.3
Mahatma Gandhi’s caution
2022-23 20.4 15.9 16.7 should apply to all public dis-
course on the issue of Khalistan.
2023-24 23.5 19.1 18.5 Links of this fringe separatist
drive with terrorism do have a
15.3% 29.4% past record, as New Delhi’s spat
Increase in Jul-Sep 2023 Increase in Jul-Sep 2023 with Ottawa reminded us, but
as compared to 2022-23 as compared to 2019-20 care must be taken that the Sikh
Source: MGNREGS portal faith and community are not
PARAS JAIN/MINT cast in negative light. Since the
What’s up with the What about farm risk of this has heightened, all
1 rural jobs scheme?
The Mahatma Gandhi National
2 incomes in rural areas?
Retail prices of cereals, pulses and
deliberations on separatist vio-
lence demand reiteration by our
Rural Employment Guarantee vegetables in August were higher leaders and diplomats, both glo-
scheme (MGNREGS) promises 100 by 12%, 13% and 26%, respectively, bally and within India, that
days of work in a year to every year-on-year. But this does not Indian statehood is not founded
rural family. Between July and mean farmers are earning more. on religious belief. As the lan-
September, demand for these jobs Prices are on a rise following guage deployed tends to encode
was 15% higher than last year repeated crop losses due to freak
signals of inclusion and exclu-
(2022-23), and 29% higher when weather—damage to wheat due to
compared with the pre-pandemic heat wave and untimely rains, and sion, statistically invalid confla-
year (2019-20). Millions of rural lower anticipated rice harvest due tions of terror with any group of
families chasing low-paying jobs to deficit rains. Prices of pulses are people must be eschewed. Let
means a short supply of regular rising due to less area planted by principles predominate.
jobs, or a likely hit to household farmers and a coming shortage
earnings. Rising dependence on a due to drought in major growing
safety net scheme is a sign of states. Tomato prices shot up in
distress. Demand for MGNREGS July and August due to lower
jobs hit record highs after the
covid-19 lockdown was announced
production and damage due to
excess rains—but only a handful of
MINT METRIC
in March 2020. lucky farmers benefited. by Bibek Debroy
MINT

In Kerala, a dealer in drugs

3 How has been the impact of
the monsoon?
The south-west monsoon, a lifeline for
Trained his dogs to become thugs,
rural India, recorded a deficit of 6%
They attacked khaki uniforms.
compared to the 50-year-average. But the But cops weathered canine storms
spread of monsoon over time and across
regions was uneven. Several states were hit
And pulled all Robin George’s plugs.
by a drought while others battled floods
and extreme rains. The extent of crop
damage can be gauged once the kharif
harvest hits the market in October.
QUOTE OF THE DAY
I want to say in many ways, if
4 Have trade decisions
hit rural incomes?
The Centre has curbed the export
5 Will these factors
impact rural demand?
The hit to incomes can impact
there is a spring in our step, a
of cereals and onions, and cut sales of packaged consumer goods,
confidence in our voice, a sort
import duties on edible oil and consumer durables, small cars and of squaring of our shoulder,
pulses to check consumer prices. two-wheelers in the festive season.
These, and steps like stock limits One needs to watch out for
there are very good reasons
and open market sales from untimely rains during this month’s for it. Because it is built
government stocks at harvest time, kharif harvest. Consumer
depressed farm gate prices. A sentiment in rural India will also
today on 10 years of
recent report said that in 2023, depend on how the winter crop hard work...
wheat farmers lost ₹40,000 crore pans out. A silver lining is that
due to pro-consumer policies, and ahead of state and general
rice growers may face the same in elections, a boost in spending by
October. Oilseed farmers were hit political parties and government—
by output loss, yet cannot expect via cash transfer schemes and S. JAISHANKAR
higher prices as the market is cooking fuel subsidies—can help EXTERNAL AFFAIRS
flooded with cheap imported oils. plug a part of the income losses. MINISTER

STO C K TA L K DOWNLOAD THE

MINT APP
DALMIA BHARAT KAJARIA CERAMICS
It’s expected to bene- Bathware, plywood
fit from the price hike and adhesives to yield
of ₹45-50/bag in east benefits; it is guiding
HOLD BUY
India and ₹70-80/ for FY24E revenue of
TARGET PRICE TARGET PRICE
bag in south India. ₹410 crore, ₹100
₹2,525 Both regions con-
₹1,679 crore and ₹65 crore,
CURRENT PRICE CURRENT PRICE
₹2,405 tribute more than ₹1,325 respectively. Capac-
80% to its volume. ity addition in the val-
Factoring in the higher realization, we ue-added segment is expected to drive
raise FY24-26E Ebitda by 6-9%. volumes as well as margins.
EMKAY GLOBAL (ON 28 SEPTEMBER) NUVAMA RESEARCH (ON 28 SEPTEMBER)

JINDAL STEEL & POWER HINDUSTAN AERONAUTICS

It has followed a pru- We see sustainable SUBSCRIBE TO
dent deleveraging long-term demand OUR NEWSLETTER
policy to strengthen for indigenously TOP OF THE MORNING
BUY BUY
its balance sheet. developed modern
TARGET PRICE TARGET PRICE
With net debt of
₹790 ~₹6,800 in the June
₹2,266 military aircraft and
helicopters. Given its
CURRENT PRICE CURRENT PRICE
₹701 quarter and a net ₹1,929 position as the sole
debt-to-Ebitda ratio Indian manufacturer
at a comfortable level of 0.75x, it has of such aircraft, we are very optimistic
one of the strongest balance sheets. about its long-term prospects.
MOTILAL OSWAL (ON 28 SEPTEMBER) PRABHUDAS LILLADHER (ON 29 SEPTEMBER)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
 PLAIN FACTS

SME IPOs are on fire,

but could also singe
BY HOWINDIALIVES.COM

D
igikore Studios, Inspire Films and Saakshi Medtech are not exactly household names, but they announced themselves
to investors last week. Aiming to list on a stock exchange segment earmarked for small and medium enterprises
(SMEs), whose listing conditions are less stringent, they offered their shares to the public for the first time. Demand
was brisk. Their initial public offerings (IPOs) were subscribed 282, 129 and 92 times, respectively. Stories like these abound
among SME IPOs, which are on fire. However, as is the case with market investments, there is growth and quality, and there
is also flattery and fads that can unravel quickly.
Given the scorching interest and gains that SME IPOs have seen in the past two years, there’s much to consider and unpack. The
BSE has indices that trace the one-year share performance record of IPOs. Between September 2013 and September 2021, the BSE
IPO index and the BSE SME IPO index largely mirrored each other. But since then, the latter has broken away. Given that stocks
leave these indices after one year, it means successive new entrants in the BSE SME IPO index have posted handsome gains.
The current lot of SME IPOs are not dividend or asset plays. They are growth plays. One measure to assess their listing
gains is to also look at their earnings growth or the price-to-earnings (PE) ratio. On historical earnings, the BSE SME IPO
index is richly valued. But looking ahead, that valuation measure looks better as the index companies are expected to post
high growth. But where that growth doesn’t materialize, the unravelling can be quick and brutal.

SME IPOs have been on a tear Newly listed SMEs are richly valued,
in the last 2 years but also lead in earnings growth
Rebased indices (2 September 2013 = 100) Price-to-earnings ratio (times)
12,000 S&P BSE IPO S&P BSE SME IPO On trailing earnings On projected earnings
48

10,000

8,000 33 32

6,000 24 24

20

4,000

2,000

0 S&P BSE SME IPO S&P BSE IPO S&P BSE Sensex
2 Sep 2013 28 Sep 2023 As of 31 August 2023.
Source: BSE

Growth Winds Not all SME IPO index leaders

are growing fast
THERE ARE companies that have closed SME IPOs in the 2022-23 3-year
revenues (₹ crore) CAGR (%)
past year that are growing fast. Take one of the three
Veefin Solutions* 13 314
mentioned above, Inspire Films, which is doing a ₹21 crore
IPO. Revenues of this Mumbai-based content creator for Exhicon Events* 59 149
TV channels and streaming platforms have surged at an Virtuoso Opto. 337 70
average annual rate of 65% in the last three years to ₹48 crore Rhetan TMT 86 63
in 2022-23. Insolation Energy 259 43
Similar growth buoyancy is seen among the top 10 CFF Fluid Control 71 31
constituents of the BSE SME IPO index, as on 31 August. Sealmatic India 59 21
While the index had 67 companies, these 10 companies Bright Outdoor Media 92 9
accounted for a 57% weight of the index. Of these 10 Bondada Engineering* 331 7
companies, five grew their revenues at a compounded annual
Khazanchi Jewellers* 257 -11
rate of above 40% for the last two or three years. In other
*2-year CAGR (compounded annual growth rate). Revenues are from
words, they are doubling revenues every two years. But, operations only. Latest revenues for Khazanchi is for 2021-22.
equally, there are companies in this set that are seeing modest Companies arranged in descending order of growth.
Source: BSE, company documents
or negative revenue growth.

The BSE SME board trails the main

board in strike rate
Different Tracks
Share of IPOs listed on BSE currently showing gains (%) DISCRETION IS called for with SME IPOs. For one, these
100 IPOs undergo less scrutiny than the initial share sales on the
Main board
main board of stock exchanges. Companies wanting to list
on the SME board have their offer document vetted by the
80
stock exchange on whose SME board they wish to list, and
not the capital market regulator. The bar for these
60 companies is also lower in terms of size, track record and
shareholding.
SME board Despite variances in business performance, the BSE SME
40
IPO index, which captures the top end of these listings, has
shown an unabated increase. But break that down, and go
20 deeper in the SME sets, and the picture moderates. On the
BSE, a smaller share of IPOs between 2017 and 2023 on the
0 SME board have given positive returns as compared to the
2017 2023 main board. Further, barring years like 2020 and 2023, about
Source: BSE 40-50% of SME IPOs are currently in the red.

Growth and Excesses Investor interest in SME IPOs

exploded in the last 2 years
YET, CURRENTLY, there is a fervour for SME IPOs in the Number of Median subscription
stock market. One measure of that is the subscription garnered SME IPOs (times)
by the likes of Digikore Studios, Inspire Films and Saakshi
2018 141 1.6
Medtech. Another measure is that of the 23 IPOs that were open
for subscription in the week of 29 September, as many as 18
2019 51 1.4
were on the SME board.
The year 2023 is on course to top 2018 as the best year for
2020 30 1.6
SME IPOs. That year saw 141 SME IPOs. As of 28 September, this
year has seen 125 SME IPOs close for subscription. The
2021 54 2.9
difference is in investor interest. The median subscription level
in 2018 was 1.8 times of the shares on offer. In 2023, this has
2022 111 13.5
rocketed to 25.7 times. There are high-growth companies
there. There are also excesses that tend to breed when the
2023 125 25.7
market likes a story.
www.howindialives.com is a database and search engine for Data for 2023 as of 28 September
Source: Chittorgarh.com
public data.
PARAS JAIN/MINT

PEANUTS by Charles M. Schulz

 CHENNAI, NEW DELHI, MUMbAI, bENGALURU, KOLKATA, AHMEDAbAD, HYDERAbAD, CHANDIGARH*, PUNE* VOL. 17 NO. 234 Rs. 15.00 16 PAGES

Monday, October 2, 2023

The EU is rebooting its US averts shutdown of govt

livemint.com enlargement machine uP10 with funding bill uP9

SENSEX 65,828.41 0.00 NIFTY 19,638.30 0.00 DOLLAR ₹83.04 ₹0.00 EURO ₹88.15 ₹0.00 OIL $97.80 $0.05 GOLD ₹57,574 ₹0.07

Festive spirit drives Stocks brace

for volatile
DON’T MISS

month amid
record Sep car sales bearish FPIs
Ram Sahgal
Maruti, Hyundai, Mahindra report highest-ever monthly sales ram.sahgal@livemint.com
MUMbAI
New GST order hits one nation,
Alisha Sachdev one tax spirit: Gaming firms

I
ndian stocks may witness
alisha.sachdev@livemint.com HITTING TOP SPEED wild swings this month, with Stakeholders in the online real-money
NEW DELHI foreign portfolio investors gaming sector fear that the way the Centre
The surge in passenger vehicle despatches in September was led by The finance ministry said that GST revenue receipts are in line (FPIs) turning bearish on both has implemented the new GST rate on firms

I
ndian passenger vehicle (PV) sales of SUVs, which now command more than half of all PV volumes. with official estimates. MINT the cash and derivatives seg- in the sector could be used as a precedent
makers, including market ments of the National Stock for breaking the “one nation, one tax” format
leader Maruti Suzuki India Ltd,
reported record monthly dis-
patches in September, capitaliz-
Highest-ever
monthly sales
363,733 units despatched
DOMESTIC WHOLESALE DESPATCHES
148,380 150,812 GST collection hits Exchange (NSE) amid lofty
mid- and small-cap valuations,
rising US interest rates and
of GST. >P2

in Sep 2023 (up 2.4% vs Prime Video considers India a

ing on improved chip supplies as
they ramped up production to meet
demand following a raft of new car
launches ahead of the festive sea-
son.
Vehicle despatches hit a new
record at 363,733 units in Septem-
ber, a 2.4% increase from a year ago,
355,353 units in Sep 2022)
Previous record
360,700 units despatched
₹1.62 trillion in Sep bond yields, and the threat of
oil prices hitting $100 a barrel.
FPIs turned net sellers of
content engine, invests heavily
India needs to be a core country for anyone
Sep 2022 Sep 2023 ₹14,768 crore in NSE’s cash building a global media business, said Kelly
in August 2023 Gireesh Chandra Prasad ₹65,235 crore in September, market in September after buy- Day, vice president of international business
54,241
49,700 47,864 45,317 gireesh.p@livemint.com the Union finance ministry ing equities worth ₹1.69 trillion at Prime Video. Amazon.com Inc.’s Prime
Highest-ever
41,267 NEW DELHI said on Sunday. Proceeds from over six straight months. Video saw robust user growth in India, and it
34,508 has been a content engine, she said. >P6
quarterly sales the GST cess levied on items Simultaneously, they held a

according to data from carmakers
and industry estimates.
The August-to-November festive
season traditionally drives a sub-
stantial share of Indian car sales,
prompting automakers to replenish
dealer stocks in anticipation of
heightened demand. In addition, as
semiconductor shortages ease, car-
makers have lined up 81 new
launches in the current fiscal year,
piquing buyer interest, Mint
reported on 1 May.
The surge in despatches in Sep-
tember was led by sales of sport util-
ity vehicles (SUVs), which now
command more than half (52%) of
all PV volumes, indicating a shift in
buyer preferences.
Retail sales for the six months to
September exceeded the 1.94 mil-
1,076,983 units in
Jul-Sep 2023
Previous record
1,026,000 units in Maruti Suzuki
Jul-Sep 2022
lion mark, indicating the industry is
on track towards achieving record
sales of 4 million units for the full
financial year.
Additionally, stocks with dealers
and companies surged to 331,162
units, crossing the 30-day threshold
for the first time in many quarters,
said Shashank Srivastava, senior
executive director at Maruti Suzuki.
Maruti Suzuki, the country’s
largest carmaker, recorded domes-
tic PV despatches of 150,812 units, a
1.6% increase from a year earlier.
Hyundai Mahindra & Tata Motors
Mahindra
Source: Industry estimates, companies
SARVESH KUMAR SHARMA/MINT
Other PV makers, including Mahin-
dra & Mahindra Ltd (20% increase
in despatches in September from a
year earlier) and Hyundai Motor
India Ltd (13% growth, including
exports), also saw their highest-ever
monthly sales. Tata Motors Ltd, on
the other hand, saw domestic PV
TURN TO PAGE 6
Also see | Electric 2-wheeler
sales on upswing >P6
C
entral and state gov-
ernments collected
₹1.62 trillion in goods
and services tax (GST) in Sep-
tember, marking the fourth
highest monthly collection
since the inception of the indi-
rect tax regime and a 10%
annual growth from the year-
ago period.
Overall, GST receipts so far
this year are in line with the
10.5% nominal GDP growth
rate projected by the finance
ministry and reflect the trends
in tax administration effi-
ciency as well as consumption.
After the settlement of taxes
on inter-state sales, the central
government received ₹63,555
crore while states received
like high-end automobiles
stood at a robust ₹11,613 crore.
The ministry said GST reve-
nue receipts are in line with
official estimates. Gross
receipts from GST in the first
half of the current fiscal
improved 11% from the year-
ago period to ₹9.92 trillion.
The average monthly gross
collection this fiscal is ₹1.65
trillion, which is 11% more than
in the year-ago period.
Experts pointed out that
GST collection growth has
been aided to a considerable
degree by improved adminis-
trative efficiency as well as a
structural shift: micro enter-
TURN TO PAGE 6
cumulative net short position
in index and single stock
futures as of 29 September,
coinciding with their cash mar-
ket sales.
Their cumulative net shorts
in index futures (Nifty and Bank
Nifty) contracts stood at 72%
and in single-stock futures con-
tracts at 53% at the beginning of
the October series of deriva-
tives contracts. Against this,
they began the September
series with 51% cumulative
bullish positions in index
futures and 52.8% bearish bets
in single stock futures.
Derivative contracts expire
on the last Thursday of each
TURN TO PAGE 6
Novo in early talks with Torrent
to widen manufacturing ties
Novo Nordisk India Pvt. Ltd, the local unit of
the Danish drugmaker, is in initial talks with
Torrent Pharmaceuticals Ltd to expand their
manufacturing partnership, said Vikrant
Shrotriya, managing director of Novo
Nordisk India. >P7
SAIL plans to spend ₹5,500 cr
in FY24 to expand capacity
Steel Authority of India Ltd is planning to
invest ₹5,500 crore during this fiscal year to
expand capacity, said chairman Amarendu
Prakash. The company had spent ₹8,000
crore in the previous fiscal year, according
to Prakash. >P7

MEIL in talks to assemble BYD’s RBI may keep repo rate

EVs in India as JV plan sputters unchanged for 4th time
Utpal Bhaskar investment proposal is alive Gopika Gopakumar fall within RBI’s threshold of
utpal.b@livemint.com and active,” said one of the two gopika.g@htlive.com 2-6% in September.
NEW DELHI people cited above, requesting MUMbAI Economists expect RBI to
anonymity. also keep the retail inflation

M T
egha Engineering and In April 2020, DPIIT noti- he Reserve Bank of India forecast unchanged at 5.4% and
Infrastructures Ltd fied changes in India’s foreign (RBI) is likely to maintain GDP growth at 6.5% for FY24.
(MEIL) is in talks to direct investment (FDI) policy, its monetary policy rates Liquidity, which was in sur-
assemble the Atto 3 and e6 mandating government clear- and stance for the fourth time plus earlier, turned into a defi-
electric cars from China’s BYD ance for all FDI inflows from in a row this week, economists cit after RBI introduced the
According to ONGC’s annual report, the petrochemical sector Auto Co. Ltd in India, two peo- countries with which India polled by Mint said, amid ele- 10% incremental cash reserve
will remain the key driver of global oil demand growth. REUTERS ple aware of the development shares a land border. vated retail inflation and a ratio (ICRR) in the last policy.
said, at a time its $1 billion “The $1 billion investment hawkish US Federal Reserve. Retail inflation remains above The market expects RBI to

ONGC may invest investment plan with the elec-

tric vehicle (EV) giant has
stalled.
BYD entered the Indian
market in March 2007. REUTERS
proposal was submitted to
DPIIT for an equal joint ven-
ture between BYD and MEIL.
Most economists expect the
repo rate to stay unchanged at
6.5% and the policy stance at
RBI’s target band. MINT

would need to persist above 6%

maintain enough liquidity to
not impair credit demand dur-
ing the festive season.

$20 bn to set up Hyderabad-based Megha is

looking at contract-manufac-
turing the two models by
facturing around 25,000 units
and scale it up to around
The plan was to manufacture
around 200,000 EV units and
then scale up to 2 million units
the withdrawal of accommoda-
tion. Even as core inflation has
continued to cool, retail infla-
for at least two quarters, amid
transmission of pressures to
core inflation, to set the stage
The liquidity deficit is
expected to moderate thanks to
some government spending
assembling completely- 75,000 units for sale in India. and co-brand and market the tion remains above RBI’s target for a rate hike,” said Aditi and the reversal of ICRR
2 petchem plants knocked-down (CKD) kits,
which attract a lower import
duty than fully built cars. India
The new plans comes after
the duo’s $1 billion investment
proposal submitted to the
vehicles. The idea is to develop
India as a hub for right-hand-
drive EV manufacturing and
band, and the central bank may
keep a close watch on uneven
monsoon rains and rising crude
Nayar, chief economist at Icra.
Since the last policy in
August, inflation has posed a
impact, said Upasna Bhardwaj,
chief economist of Kotak
Mahindra Bank. “We expect
Rituraj Baruah & Utpal Bhaskar cut its reliance on the volatile levies 100% basic customs duty department for promotion of cater to the markets such as oil prices. mixed picture. Tomato prices, RBI to keep liquidity tight in
NEW DELHI oil market and improve profit- (BCD) on completely built-up industry and internal trade those of Thailand, India and “We expect the MPC (mone- which spiked earlier, have the near term to keep short-
ability in the long run. units of EVs priced over (DPIIT) for an equal joint ven- Japan,” the person cited above tary policy committee) to plunged, and core inflation has term rates elevated, given the

O
il & Natural Gas Corp.
Ltd (ONGC) is consid-
ering investing
around $20 billion to set up
two petrochemical projects in
India, either independently or
in partnerships with other
companies, chairman and
chief executive officer Arun
Kumar Singh said.
Establishing a large petro-
chemical plant is likely to cost
around $10 billion, Singh said.
“We may do it on our own or in
a JV (joint venture). It depends
on economics and what hap-
pens in respective states,” he
“We want to prepare ONGC
for a new world. In the new
world, we feel that our petro-
chemical footprint has to go up
to accommodate our product
in India,” Singh said, adding
that the demand for oil and its
derivatives is likely to grow in
India till 2040-45.
“Right now, for the next
10-15 years, we see commodity
petchem picking up very
strong. So, you have both
sides: you have polypropylene
side, then you have ethylene
side,” he said, adding that the
focus is on achieving increased
$40,000 and 70% on those ture is yet to secure approval. added. remain on hold in the October fallen to a four-year low. Crude pressure on the rupee and
below $40,000. In compari- “Contract manufacturing Queries emailed to the policy while continuing to prices are, however, up 10% underlying inflationary risks.
son, semi-knocked-down and will help Megha with the larger spokespersons of Megha, BYD demonstrate caution amid a since August, putting pressure We expect liquidity to normal-
CKD kits attract a lower BCD of JV (joint venture) plan as it will India, DPIIT and the heavy cloudy outlook for food infla- on consumer price inflation. ize towards the surplus zone by
35% and 15%, respectively. The help them with learning the tion and elevated crude oil pri- CPI inflation, which stood at
plan is to start contract manu- technology and process. The TURN TO PAGE 6 ces. In Icra’s view, inflation 6.83% in August, is expected to TURN TO PAGE 2
Streaming’s small fish stay clear of original content rat race
Lata Jha chief content officer of even if YouTube doesn’t com- However, the smaller com-
lata.j@htlive.com Crunchyroll, it is all about mission its own content, add- panies believe their engaging
NEW DELHI knowing what customers ing content creation is a very and relevant offerings give
want—adventure, mystery or expensive exercise. “It’s a bot- them a legitimate foothold.

said in an interview on 25
August.
Noting that the company is
looking at sites to set up the
planned projects, Singh said
the new plants will likely be
announced in the current
financial year.
Demand for petrochemi-
cals, the building blocks for
plastics, fertilizers and phar-
maceuticals, is expected to
remain robust due to their
wide range of uses across large
industries, including con-
struction, automotive and
electronics. Strengthening its
chemicals business will also
help the state-run oil explorer
W
recovery chemicals from
crude compared to conven-
tional refining, in the range of
50-70%.
In its annual report for FY23,
ONGC observed that petro-
chemicals demand is expected
to remain strong and will con-
tinue to be a key driver of oil
and gas demand in the future.
With this objective, the com-
pany is collaborating with
other entities to explore oppor-
tunities in the oil-to-chemical
(O2C) business, refining and
petrochemicals, it said.
“We are also planning to set
TURN TO PAGE 6
hile top video
streaming operators
invest heavily in cre-
ating original content, several
smaller ones, both subscription
video-on-demand operators
such as Crunchyroll and MUBI
and pay-per-view services like
BookMyShow Stream, are pur-
suing a conservative approach,
securing content only from
third-party sources.
Media experts said the strat-
egy sets them apart in a market
with intense competition, esca-
lating costs and a relentless
pursuit of talent and script
development.
According to Asa Suehira,
fun—and delivering it when
they arrive. “We acquire series
that we know fans in India will
enjoy, and then we explore bet-
ter ways to serve those fans
across touchpoints, be it
through local language dubs or
maybe even through event
experiences. Our success
allows us to invest in anime
production and the overall
anime ecosystem, but it’s not a
lever we utilize in marketing or
publicly tout,” Suehira said.
The platform, which is look-
ing to expand its offerings,
especially through the produc-
tion of local language dubs in
Hindi, Tamil and Telugu, has
Crunchyroll sees India as the world’s second-largest anime
market after the US.
seen sizeable subscription
growth over the last year due to
a growing library and addi-
tional dub offerings, Suehira
added. The company sees India
as the world’s second-largest
anime market after the US and
expects 60% of the global
growth in the next few years in
the category to come from the
country.
Anuj Gandhi, the founder of
media tech startup Plug and
Play Entertainment, said that
tomless pit, and not everyone
can compete in the top league.
For some, the aim is just to
remain viable,” Gandhi said,
adding that a lot of these servi-
ces would probably see how
things go in the short term
before evaluating if the strategy
is working from an Indian point
of view.
Original content production
requires massive expenses for
talent acquisition, script devel-
opment and production. As the
market becomes increasingly
cluttered, the costs of these
endeavours continue to soar,
making it less accessible for
many.
Their more streamlined opera-
tions allow them to cater to a
niche audience in a manner
that larger conglomerates often
find challenging. By not com-
peting in the race for original
content dominance, these ser-
vices focus on delivering
curated, third-party content
that appeals to specific tastes
and preferences.
Ashish Saksena, chief oper-
ating officer of cinemas at
BookMyShow, said every
streaming platform brings its
own unique value proposition
to the table. While some priori-
TURN TO PAGE 6
02 MOnday, 2 OCtObeR 2023
Chennai ECONOMY & POLICY LIVEMINT.COM

STRAIGHT
F O R WA R D
‘GST order on online gaming
SHASHI SHEKHAR

Respond to this column at

feedback@livemint.com
hits one nation, one tax spirit’
MAHATMA AND THE ‘Unprecedented’ for Centre to notify CGST changes before states could adopt tax rate: Experts
ENDURING POWER Shouvik Das Nazara, Mobile Premier League and
The Union govt has issued
orders on gaming GST. MINT

OF HIS IDEOLOGY shouvik.das@livemint.com

NEW DELHI
Paytm First among members, on Satur-
day wrote to Sanjay Malhotra, revenue
secretary at finance ministry, highlight- New tax rate

O
nline real-money gaming ing the points mentioned above. It also
on online
F
or the last two years we’ve seen slogans such as “Long live firms, and lawyers repre- sought answers to whether states may
Nathuram Godse” trend on social media on the birth anni- senting multiple compa- end up being penalized for failing to col-
versary of Mahatma Gandhi. It may repeat today as well. But
does it matter? Was Gandhi a hero or a villain? Is he relevant
today? These questions have been debated thousands of times
nies in this sector, have
termed the way the Cen-
tre has implemented the new goods and
lect state GST—in states where new tax
rate has not been notified.
A senior official with knowledge of the
money
since his assassination. Still, arguments and counter-arguments
continue. And these ideological duels are an enduring testimony
services tax (GST) rate on online gaming
companies as unprecedented. Stake-
matter, requesting anonymity, said most
states are likely to bring retrospective games
to the strength of Mohandas. He continues to stay alive in our holders of the sector, which has notifications of adopting the 28% tax rate
thoughts.
Gandhi may have been born in India and for India, but it was
remained under fire for numerous taxa-
tion issues through the year, claimed
on online gaming firms, and the Centre
is conversing with states to ask firms to
kicks in
South Africa that shaped the Mahatma. Late on 7 June 1893, he that the Centre’s notification of the new collect taxes at new rate. A senior execu-
was rudely pushed off a train at Pietermaritzburg station. This online gaming GST regime—done tive at a leading online gaming firm, who Gireesh Chandra Prasad
gave rise to a new Mohandas. His resolve to fight imperialist ide- before all states have fully adopted it— requested anonymity, agreed. “While gireesh.p@livemint.com
ology and excesses strengthened that night and it laid the foun- could be used as a precedent for break- On 29 Sep, the finance ministry’s revenue department notified a tax rate of 28% on this process may seem arbitrary, a tenta- NEW DELHI
dation for Gandhian philosophy. ing the “one nation, one tax” format of the gross revenue of online gaming firms. ISTOCK tive collection of new tax regime could

T
In 1997, I got an opportunity to meet Nelson Mandela as part GST going forward, and also violates the be the only way for us to simplify compu- he new Goods and Servi-
of then prime minister Inder Kumar Gujral’s visit to South Africa. law. for the new GST regime for online gam- precedent to states taking unilateral tax tation of overall tax liability for the year. ces Tax (GST) regime of
Our generation had never met Gandhi, but the man whom the On 29 September, finance ministry’s ing in the coming month. But, the nature decisions too,” said Sudipta Bhattachar- We’re also concerned that any anomaly 28% tax on online
Mahatma had deeply inspired was standing before us. revenue department notified the new tax of this unilateral interpretation by the jee, partner at law firm Khaitan & Co. in this could raise scrutiny and penalty money games, casinos and
But while Gandhi never eyed power after Independence, Man- rate via an amendment to Central Goods Centre raises graver questions on the Jay Sayta, a technology and gaming claims,” he said. horse racing has kicked in
dela chose to become South Africa’s president. However, Man- and Services Tax Act, 2017. The amend- greater precedent that it sets for overall lawyer, said the notification can “open However, this retrospective tax may from Sunday with Union gov-
dela implemented the policies of inclusion that Bapu professed. ment comes after 51st GST Council still retain operational complica- ernment issuing orders on
During Mandela’s regime, every racial group—be it black Afri- meet on 2 August recommended a OUTPLAYED tions. “For online gaming firms, this norms to be followed covering
cans, whites or South Africans of Indian descent—enjoyed equal tax rate of 28% on gross revenue of can pose serious interim operational taxes to be collected by Centre
status. That is why he could take his nation on the path of online gaming firms. THE sector has IT’S feared that the ALL India Gaming IT is learnt the challenges—in terms of determining and the Union Territories.
progress instead of disintegration. Industry stakeholders, however, remained under fire
with numerous
notification may
‘open floodgates’ to
Federation has
written a letter to
Centre is informally
conversing
which rate to tax their customers at. Some states are in the pro-
Bapu has faced bitter criticism on many issues, including Parti- are concerned about the notifica- taxation issues more GST Sanjay Malhotra, with states on Especially in states that have not cess of notifying legislative
tion. But his critics forget that no decision can prove to be the tion, with two senior taxation law- through the year complications revenue secy the GST notification adopted the new law yet, this can be changes for the part of taxes to
right decision for perpetuity. yers from top law firms stating that it particularly confusing, since techni- be collected by them. The new
Take the Bolshevik Revolution of 1917, for example. Lenin was is “unprecedented” for the Centre to cally speaking, no one can collect tax regime kicks in amid intense
then popularly perceived as an apostle of change. He was the notify an amendment to the central GST GST regime. Given that the entire GST the floodgates to more complications of that has not been formally brought into litigation around the regime
founder of the all-powerful Soviet Union. But in 1991, Soviet regime—before all states complete the framework hinges on the states and the implementation of GST across states and force by law yet,” Bhattacharjee said. that existed till today with
Union disintegrated. Does this mean Lenin’s dream of equality adoption of the tax rate. centre exercising their law making pow- the Centre, going forward.” Queries sent to finance ministry, and Supreme Court last month
for everybody was flawed? “Most states are likely to pass their ers ‘simultaneously’, this unilateral move Industry body All India Gaming Fed- Directorate General of GST Intelligence, issuing a stay order on a Karna-
Let’s come back to Gandhi. Fact is that he went to the Boer War respective State GST law amendments by the Centre could potentially lend eration, which counts Gameskraft, did not receive responses. taka HC decision, favouring an
to help the wounded, not the British. Similarly, Indians fought in online gaming company.
World War I and II not as Indian citi- The finance ministry orders
Gandhi’s critics zens, but as members of the British seek to implement GST Coun-
forget that no
decision can
armed forces. Gandhi tried to extract
concessions for India considering the
participation in a logical and rational
Inclusion of 65+ age ‘Canada’s charges against India cil’s decision to ensure that
‘the chance to win’ or ‘actiona-
ble claims’ supplied by online
prove to be the manner. He wasn’t completely suc-
right decision
for perpetuity
cessful but he helped the voices of sub-
jugated people to be heard in a world
in JE vax trial urged had poor credibility at UNGA’ gaming platforms, horse rac-
ing clubs and casinos should
be subject to 28% GST. Gam-
trampled by colonialism. ing companies have been
So firm was Gandhi in his beliefs that Priyanka Sharma brunt of the infections. Shashank Mattoo General Assembly session? resisting new tax regime say-
he didn’t even hesitate to ask for forgiveness for the killers of the priyanka.sharma@livemint.com There are 68,000 cases shashank.mattoo@livemint.com One thing is that the noise ing it will make the industry
Jallianwala Bagh massacre. It isn’t easy to go against the popular NEW DELHI reported globally per year. NEW DELHI has abated. Canada’s accusa- unviable.
opinion and express your views in public meetings without req- The panel recommended tions against India were not The notifications issued by

A T
uisite security. But Gandhi remained firm. top government panel revising the study for deter- he credibility of the sticky. People saw this as more the Centre cover aspects like
These days, even small-time politicians travel with an elabo- has recommended that mining the population’s Canadian government’s of a political ploy than protec- date of implementation, the
rate security entourage and change their colours like a chame- Bharat Biotech Ltd immunity to the infection by allegations made regard- tion of the national interests of value of the taxable service,
leon the moment they see a TV camera. But Gandhi never com- conduct phase-3 trials of its increasing the age group of ing India’s involvement in the Canada, a country which has a GST return form and import of
promised on his principles and stuck to his convictions even at Japanese encephalitis vaccine test subjects to 65 years and killing of a pro-Khalistan leader good relationship with an gaming as a service.
the cost of his life. for people aged 65 and above, above, the minutes of the remains poor, said US India emerging power. And people The new regime makes a
Ten days before his assassination, on 30 January 1948, the as the disease emerges as a key meeting showed. Strategic Partnership Forum saw Trudeau sacrificing that, clear distinction between
Mahatma was also the target of a bomb attack. Vallabhbhai Patel, concern in India. The Hydera- Persons vaccinated in the (USISPF) CEO Mukesh Aghi. and there was no evidence pre- casual online games and those
the then home minister, requested permission to tighten the bad-based company had asked last year for seasonal flu and President Xi or Putin. So there sented. At the same time, if you involving a wager. Only
Mahatma’s security and urged him to modify his routine on the the Drugs Con- Typhoid Conju- was a vacuum in global leader- look at history, Americans went actionable claims offered by
advice of his security officers. But Bapu didn’t listen to this advice. troller General of The plan is gate Vaccine
m INTERVIEW ship at the UN. into Pakistan and got Osama ‘online money games’ are sub-
Another fact is that Nathuram Godse, the man who killed the India (DCGI) for to develop should be That was the first thing. Sec- bin Laden. They knocked out ject to 28% tax on full value of

‘
Mahatma, didn’t hate him personally. He never used derogatory permission to advanced version excluded from Aghi, who was at the UN Gen- ond, unlike last year, Saddam Hussein. And you deposits made to the platform.
words against Gandhi during his hearing. Godse’s younger conduct phase-3 of JE vaccine the study, the eral Assembly session, said the Ukraine was look at the Online money games are
brother Gopal was also an accused in the Gandhi assassination trials in children panel said. After noise around Canada’s allega- not the burn- efforts to those in which the player
targeting large Canada’s accusations knock out
case. After his release, he visited me twice at Agra. In our long up to a year old, as this, Bharat Bio- tions had largely died down. In ing issue. So deposits an amount in the
conversation that lasted several hours and two rounds, Gopal was done in number of tech should sub- an interview, he stated that the the burning against India were not Fidel Castro expectation of winning some
reiterated: “Humne Gandhi ji ki hatya nahin,unka vadh kiya tha phase 1 and 2 populations mit the revised US has chosen to remain issues were sticky. People saw this and others. So amount in a game or event.
(We didn’t murder Gandhi. We assassinated him).” trials. However, phase III clinical largely silent on the allegations more climate I think coun- The amendments do not affect
I could never digest his justification, but Gopal wasn’t a person the expert panel trial protocol for given its sizeable political and and Global as more of a political tries do take the tax on casual online gam-
who got easily agitated. Years of imprisonment had given him of DCGI said the company may further deliberations. economic interests in India. South asking ploy than protection of action for ing in which no real money or
reservoirs of mental resilience. Today, when I look back and ana- conduct it for older individuals Queries sent to health min- Edited excerpts: for m o r e the interests of Canada n a t i o n a l betting or wager is involved.
lyze what he said three decades ago, apart from absolute disa- as well, minutes of its meeting istry and Bharat Biotech What was your sense of the reforms at UN. interest. It Experts advised that gaming
Mukesh Aghi
greement, one phrase that keeps recurring is: ideology. showed. The plan is to develop remained unanswered. atmosphere and conversa- There were CEO, US India Strategic
came out very platforms have to embrace the
Gandhi and Godse represented disparate ideologies. Had the an advanced version of JE vac- Meanwhile, efficacy of JE tions taking place at this financing dis- Partnership Forum clearly that revised taxation regime. While
Father of the Nation departed due to ill-health or any other cause cine that can cover a larger vaccination in India is 86.7%, high-level session at the UN cussions for Canada was most provisions for the revised
a few years earlier, he would still have been as revered as chunk of the population. according to a study by ICMR- General Assembly? w o m e n not trying to taxability have been notified,
Mahatma. But his murder brought Godse into the public eye. Japanese encephalitis is National Institute of Virology, One thing was that heavy- empowerment and climate control the Khalistanis but was ambiguity on some matters
This fundamental difference between Godse and Gandhi will spread by Culex mosquitoes, Pune. hitter presidents and prime transition. using it as a platform for a vote continues like classification of
remain forever. with Odisha, Jharkhand, In China it was found to be ministers were missing. You Were the Canadian allega- bank. So I think the credibility the supplies made, etc, said
Shashi Shekhar is editor-in-chief, Hindustan. Views are per- Chhattisgarh, Karnataka and 98% effective, according to didn’t have the Indian prime tions against India the ele- of the Canadians, in my discus- Abhishek Jain, Indirect Tax
sonal. Andhra Pradesh facing the World Health Organization. minister there. You didn’t have phant in the room at the UN sions, was very, very poor. head & Tax partner at KPMG.

RBI may hold ‘IBC’s resolution capacity has increased, but more needed’ CORRECTIONS AND
CLARIFICATIONS
policy rates Mint welcomes comments,
Gireesh Chandra Prasad that the number of corporate argue that in future, the num- doing well, indicating the suggestions or complaints
FROM PAGE 1 gireesh.p@livemint.com rescue cases will go up to 300 ber of new bankruptcy cases quality of the debt resolution. about errors.
NEW DELHI this financial year from 180 requiring resolution could “This is a very big contribution
Readers can alert the
early October amid the govern- cases last financial year. Govil come down from around 1,500 of IBC and it has led to growth
newsroom to any errors in the

ment’s month-end spending,”
Bhardwaj said.
Recently, JPMorgan decided
to include India in its GBI-EM
Global series starting June
2024, a move which is expected
to attract large capital flows.
“While the index inclusion
should structurally augur well
for lower cost of borrowings for
the economy at large, it will also
come with more accountable
fiscal policy-making and more
deft monetary policy-making
ahead,” said D.K. Joshi, chief
economist at Crisil.
T
he debt resolution capa-
city under Insolvency
and Bankruptcy Code
(IBC) should be stepped up by
more than three fold to handle
about 1,000 cases a year, said a
senior government official.
Speaking at the seventh
foundation day of the Insol-
vency and Bankruptcy Board
of India (IBBI), the rule maker
and regulator, ministry of cor-
porate affairs secretary Manoj
Govil said the pace of debt res-
olution under IBC was steadily
increasing and expectation is
said while this is a large num-
ber, the question is whether it
should be sufficient as a study
had shown that generally
about 5,000 new bankruptcy
cases are initiated every year.
Initially around 60% of new
cases were withdrawn at pre-
admission stage itself, but after
the government raised pay-
ment default threshold for ini-
tiating bankruptcy action from
₹1 lakh to ₹1 crore in 2020,
larger cases are coming and
fewer cases are expected to be
withdrawn at the early stage.
a year. These are also a func-
tion of economic cycles. “I
think we should have a capac-
ity of at least 1,000 cases (a
year),” Govil said.
IBBI chairperson Ravi Mital
said the number of cases to be
resolved under IBC is
About 5,000 new bankruptcy cases are initiated annually. MINT expected to be 300 this finan-
cial year and that the regulator
However, even if a third of new new cases to be resolved in a will in a week come out with
cases are withdrawn at pre-ad- year, Govil explained. three to four discussion papers
mission stage and some more The secretary explained on fresh proposals to reduce
subsequently due to factors that the expected resolution of delays. Mital said all compa-
including settlements, still 300 cases this year is a large nies that have been salvaged
there would be around 1,500 number and that one could under the IBC process are
in the economy,” said Mital. paper by emailing us, with your
He said till August this year, full name and address to
135 debt resolutions have hap- feedback@livemint.com.
pened, which would have
gone up by end of September. It is our policy to promptly
respond to all complaints.
“If that is correct, we will end Readers dissatisfied with the
this year with 300 (bank- response or concerned about
ruptcy) resolutions,” he said. Mint’s journalistic integrity may
Manoj Govil said a way to write directly to the editor by
increase capacity to resolve sending an email to
cases is to fill up positions of asktheeditor@livemint.com
members in National Com- Mint’s journalistic Code of
pany Law Tribunal (NCLT) Conduct that governs our
and National Company Law newsroom is available at
Appellate Tribunal (NCLAT), www.livemint.com
which is being done.

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First published in February 2007 to serve as an unbiased and clear-minded chronicler of the Indian Dream.
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04 MOnday, 2 OCtOber 2023
Chennai MARK TO MARKET LIVEMINT.COM

S&P BSE Sensex Nifty 50 Nifty 500 Nifty Next 50 Nifty 100 S&P BSE Mid-cap S&P BSE Small Cap
ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%)

65828.41 -0.27 19638.30 -0.18 17292.60 0.18 45036.65 -0.31 19577.05 -0.19 32340.71 1.23 37562.23 1.36
1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%)

1.16 2.99 1.53 3.51 2.16 6.24 1.00 3.61 1.48 3.58 4.20 13.14 2.78 15.80
6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%)

13.58 16.70 14.97 16.77 20.54 18.42 20.81 7.36 15.72 14.03 35.67 31.93 41.22 33.93

m MINT SHORTS
‘China’s factory activity
When World Cup brings a windfall
recovery slows in September’ Vineetha Sampath
Game on strong demand seen in recent quarters. out well for quick-service restaurant
China’s factory activity expanded at a slower pace in Sep- vineetha.s@livemint.com “We believe the hotel sector is yet to operators such as Westlife Foodworld
tember, a private-sector survey showed on Sunday, with The 2023 Cricket World Cup is set to mainly benefit hotel companies, shares of achieve its peak with further headroom Ltd and Devyani International Ltd. Fur-

A
sluggish external demand weighing on the outlook even fter twelve years, the which have risen sharply so far this year. for rates to grow in FY25. This comes on ther, as people stay glued to television
as output increased. The Caixin/S&P Global manufactur- cricket world cup tourna- 80 the back of rise in business demand, sus- screens, ordering from home might
ing purchasing managers’ index (PMI) fell to 50.6 in Sep- ment is returning to India. Calendar year-to-date return (in %) tained leisure demand and tailwinds spike, benefitting companies like
tember from 51.0 in the previous month, missing ana- The upcoming ICC Men’s 70 from election related campaigning,” Zomato Ltd. Recall that in Q3 of FY23,
lysts’ forecasts of 51.2. The 50 index point mark separates Cricket World Cup is set to said Prashant Biyani, an analyst at Elara Zomato had said one reason for the
growth from contraction. China’s economy is showing bring a one-time bonanza to many sec- 60 Securities (India). Here, muted sequential growth of
some signs of stabilizing, but the outlook is clouded by a tors, as fans splurge during the event favourable demand-supply SOME WIN, 0.7% in the food delivery
property slump, falling exports and high unemploy- that stretches from 5 October to 19 50 dynamics also help. SOME DON’T business’ gross order value
ment.The survey comes a day after China released its offi- November. Meanwhile, the cricket was due to the surge in
cial PMI, which showed factory activity expanded for the Hotels are the clear winners with the 40 frenzy would mean the sea- HOTEL companies, travel. The cricket fever
first time in six months in September, adding to the run event falling in the festive and holiday sonally strong December restaurant operators could work its magic, this
and the aviation
of indicators suggesting the economy has begun to bot- season when demand is usually strong. 30 quarter could be a stellar sectors are clear time around, though.
tom out. According to the Caixin PMI, factory output and Occupancies and average room rates one for airlines this time, winners Zomato’s shares have rallied
new orders remained in expansionary territory in Sep- are likely to rise in the December quar- 20 after potentially lower yield sharply this year amid
tember. REUTERS ter (Q3FY24) with the prices on match in Q2. Yield here refers to ON the flip side, PVR improving performance of
Inox Ltd’s footfalls
days expected to shoot up. 10
the revenue a carrier earns may see an adverse its food delivery business in
According to major hotel websites, a PVR per passenger per kilome- impact with the recent quarters.
room at the Ginger hotel in Ahmedabad, Inox tre. “In Q3, InterGlobe Avia- onset of matches On the flip side, footfalls
0
RTO Circle costs ₹43,000 to ₹48,000 InterGlobe Devyani The Indian Lemon Chalet Zomato tion’s yield is likely to be at PVR Inox Ltd may fall as
Aviation International Hotels Co. Tree Hotels Hotels
on 14 October, when India plays Paki- much better as benefits of cricket matches start. Even
-10
stan. Ginger is a hotel brand under The Source: Bloomberg
World Cup and festive season may set so, the multiplex operator is shielded to
Indian Hotels Co. Ltd (IHCL). in. But if the stiffness in crude oil price some extent as it plans to screen some
For perspective, IHCL’s average SATISH KUMAR/MINT
holds up, it may play spoilsport,” said matches—specifically when India is
room rate (domestic) in the June quarter resulted in rates rising sharply and rates days are high as well. Jinesh Joshi, an analyst at Prabhudas playing.
was ₹9,128. are likely to mostly increase further Understandably, investors are excited Lilladher. Recall that InterGlobe had To be sure, the benefit from the
“Our checks with reservation desks of closer to match dates,” wrote Prateek about hotel stocks. Shares of key hotel clocked a multi-quarter high yield of cricket mania would be a temporary
many hotels in bigger cities also indicate Kumar, an analyst at Jefferies India in a companies—IHCL, Chalet Hotels Ltd ₹5.40 per passenger per kilometre in windfall. The sectors mentioned above
that occupancies for match days are report on 27 September. and Lemon Tree Hotels Ltd—are up by Q3 of FY23. would need demand momentum to
already running high, which has The rates on the non-India match 29-60% in 2023 so far, also helped by The December quarter could also pan remain strong on a consistent basis.

In Sep, South Korea marked its 12th straight month of fall in

exports, albeit the smallest decline in the series. BLOOMBERG Accenture results leave IT investors between hope and despair
South Korea Sep exports fall Harsha Jethmalani consecutive quarter to 4%, which this also means that large deal quick turnaround in earnings of
Slipping
at mildest pace in 12 months harsha.j@htlive.com is the mid-point of its 2-6% gui-
Demand uncertainities weighed on Accenture’s revenue
ramp ups could take longer, fur- Indian IT companies are in for a
South Korea’s exports slowed their fall in September, in dance. This growth was driven by ther weighing on the sector’s disappointment. Accenture’s
growth in Q4FY23.

A
contrast to market expectations, marking the mildest ccenture’s revenue for the its managed services/outsourcing FY25 revenue growth trajec- FY24 organic growth guidance
Year-on-year constant currency revenue growth (in %)
decline in a yearlong downturn, a hopeful sign for the quarter ending August business, where it competes with tory—an incremental negative. (0-3%; lowest in a decade) coin-
30
global economy from the bellwether industrial economy. (Q4FY23), deal bookings tier-1 Indian IT companies, indi- Overall, management com- cides with H2FY24/H1FY25,
Overseas sales by Asia’s fourth-largest economy fell 4.4% and FY24 revenue growth gui- cating market share gains for mentary pointed to a tougher- when rebound for Indian IT was
20
from a year earlier to $54.66 billion, trade data showed on dance point to a long recovery Accenture. The consulting busi- than-anticipated macro environ- anticipated by the street to play
Sunday, compared with an 8.3% loss in August and a 9.1% path for the Indian information ness was weak, which could be a ment in FY23. Accenture’s FY24 out, said an Ambit Capital report
10
decline tipped in a Reuters survey of economists. It was technology (IT) sector. Accenture dampener for Wipro Ltd given the 4 revenue growth guidance of dated 29 September.
Q4
the 12th consecutive month of a decline in exports but the follows a September-August latter’s exposure to this area. FY20 2-5% was modest considering “Weak Q1FY24 (-2 to +2%
0
narrowest in the streak. The decline in China-bound financial year. The global IT com- Weak discretionary spending -1
Q4
FY23
that it delivered 8% growth in year-on-year in constant cur-
shipments eased to 17.6%, the slowest in 11 months, while pany’s performance is seen as a and slower decision-making by -10
FY23. While Accenture’s FY24 rency) guidance suggests H2
exports to the United States rose 8.5% and those to the precursor to the earnings outlook clients amid macro uncertainties guidance does not factor any recovery hopes for Indian IT
Note: Accenture follows September-August financial year Source: Company data, Jefferies
European Union by 6.5%. Exports of semiconductors fell of Indian IT companies. Accen- continue to weigh on demand improvement or deterioration in might be aggressive,” it added. In
13.6%, the slowest in a year. Exports of cars rose 9.5%, ture’s latest results show revenue for IT services. In this backdrop, SATISH KUMAR/MINT
macro and discretionary spend- that case, the Nifty IT index
machinery gained 9.8%, and ships jumped 15.4%. Trade visibility is still bleak. Accenture’s deal bookings fell for shorter deals and this is now nies, which are more dependent ing environment, it expects a pick which has risen by 11% so far in
minister Bang Moon-kyu said exports continued to In constant currency terms, 10% in Q4, dragged by the man- percolating down to larger deals on short-cycle deals, this is bad up in demand towards the back 2023 on expectations of recov-
improve and that they were now at the “inflection point” Accenture’s year-on-year revenue aged services segment. There is as well, the management said. news, especially given their rich end of the year. ery, may be poised for a correc-
for a transition to growth. REUTERS growth has narrowed for the sixth greater caution among clients For tier-2 Indian IT compa- valuation multiples. Secondly, In short, those rooting for a tion.

Mark to Market writers do not have positions in the companies they have discussed here

Rising crude prices take toll Jet fuel,

MINT MACRO TRACKER
on OMC marketing margins commercial Launched in October 2018, Mint’s macro tracker provides a monthly comprehensive report on
the state of the economy, based on trends in 16 high-frequency indicators. For each indicator,

Ujjval Jauhari
cooking gas the value in each month is assigned a colour-coding (red, amber and green) to denote where
it lies relative to the five-year average (worse, in line, or better). As of August 2023, six of the 16
Margin blues indicators were in red, five were in amber, and five in green—an improvement since July, when Now 1 month ago 2 months ago 4 months ago 6 months ago
ujjval.j@livemint.com
NEW DELHI
Since the rising crude prices impact the marketing margins of OMCs,
stock prices of BPCL, HPCL, IOCL have corrected 9-16% since Jul
to cost more seven indicators were in red.

Stock prices (rebased to 30 June 2023 = 100)

Rituraj Baruah

T
he oil marketing compa- 120 CONSUMER ECONOMY PRODUCER ECONOMY
nies (OMC)—Bharat rituraj.baruah@livemint.com
Petroleum Corp. Ltd NEW DELHI Passenger vehicle sales Tractor sales PMI composite Core* output
(y-o-y change, %) (y-o-y change, %) (y-o-y change, %)
(BPCL), Hindustan Petroleum 110 125 30 62
10

F
Corp. Ltd (HPCL), and Indian light ticket costs may rise 100 -9.5 20 1.1 60
60.9 8 8
75 58
Oil Corp. Ltd (IOCL)—are see- 99.6 further as oil marketing 10
56 6
IOCL 50
ing a significant decline in 100 companies (OMC) have 25
0 54 4
their stock prices due to a 95.0 raised the prices of aviation 0 -10 52 2
BPCL -25 -20 50 0
sharp surge in crude oil prices. turbine fuel (ATF) by around Sep 2022 Jul 2023
93.1 Sep 2022 Aug 2023 Sep 2022 Aug 2023 Sep 2022 Aug 2023
Since the rising crude prices 90 HPCL
5% across the four metro cities. *8 core infrastructure industries
impact the marketing margins 30 Jun 29 Sep In the national capital, jet
Source: Capital Market Broadband subscriber base Domestic air passengers Banks’ non-food credit Rail freight traffic
of OMCs, the stock prices of fuel now costs ₹118,199.17 per (y-o-y change, %) (y-o-y change, %) (y-o-y change, %) (y-o-y change, %)
SARVESH KUMAR SHARMA/MINT
BPCL, HPCL, and IOCL have kilolitre (kl), up 5.14% from 25 100 20 10
7.5 22.8 19.8 8 6.4
corrected 9-16% from closing Blended marketing margins companies are unlikely to be ₹112,419.33 last month. Simi- 20 75 15 6
highs seen in July. had declined sharply by 80% allowed to raise fuel retail pri- larly, the price of jet fuel in 15
50 10 4
10
Marketing margins are the sequentially to below norma- ces before the approaching Kolkata increased 4.65% to 5 25 5
2
0
margins that OMCs earn by tive levels of ₹2/ltr in 2QFY24- state elections. In fact, analysts ₹126,697.08 per kl. 0 0 0 -2
selling fuel in the retail mar- till date, as crude prices and at Jefferies India Pvt Ltd in a In the key cities of Mumbai Sep 2022 Jul 2023 Sep 2022 Aug 2023 Sep 2022 Jul 2023 Sep 2022 Aug 2023
ket. While the cost of crude oil product spreads increased, recent report have said with and Chennai, jet fuel is now
for OMCs has risen, retail pri- while retail product prices key elections in December, the priced at ₹110,592.31 and
ces of auto fuels have seen little remained unchanged. possibility of a retail price cut ₹122,423.92 per kl, according
change, thus OMC margins Based on current crude and in diesel or gasoline (petrol) to data from the OMCs. EXTERNAL SECTOR EASE OF LIVING
were bound to be hit. product prices, blended mar- cannot be ruled out. This increase in ATF prices Import cover Rupee vs dollar CPI inflation Core CPI inflation
Brent crude prices that had keting margins are deep in the The OMCs have been sup- may lead to a rise in air fares as (forex reserves in months) (m-o-m change, %) (y-o-y, %) (y-o-y, %)
been in the $70-75 a barrel red (loss of ₹5.30 a ltr) for ported by strong refining mar- the country has entered the 14 1 8 6.8 6.5 4.8
range during OMCs, as per gins, shored up by the season- festival season during which 11 -0.8
0 7 6.0
12
June, however, Brent Crude Nomura. ally favorable demand supply domestic travel increases. ATF -1 6 5.5
are close to $95 a prices that The crude pri- scenario and some unplanned price comprises 40% of the 10 -2 5 5.0
barrel, led by sup- had been ces are also not maintenance in Europe, ana- ticket price. This is the fourth 8 -3 4 4.5
ply tightness. in the range of likely to fall soon. lysts said. consecutive increase in jet fuel Sep 2022 Aug 2023 Sep 2022 Aug 2023 Sep 2022 Aug 2023 Sep 2022 Aug 2023
This means that
$70-75 a barrel in With Saudi Ara- The benchmark Singapore prices.
OMCs that were bia and Russia refining margins (GRMs) had An S&P Global Commodity Labour-intensive sector exports Trade balance Real rural wages Labour force participation rate
earning signifi- June are close to d e c i d i n g t o averaged at $4.0 a barrel in Insights report in August said (y-o-y change, %) (as a % of total trade) (y-o-y change, %) (in %)
$95 a barrel now reduce their daily 10 -14.6 0 -25.9 1 0.2 41.2
cantly higher Q1FY24 (from $8.2/barrel in air travel measured by flights, 42
0 0
marketing mar- crude oil produc- 4QFY23). This improved and returned to the pre-pandemic -10 41
-10 -1
gins in the last few tion by 10 lakh has seen highs of close to $12 a level in India but jet fuel -20
40
-20 -2 39
quarters, are likely to have barrels till December 2023, barrel in the July-September demand is still expected to
-30 -30 -3 38
seen marketing margins slip any major reduction in crude quarter. Though for the week remain below the 2019 level in
Sep 2022 Aug 2023 Sep 2022 Aug 2023 Sep 2022 Mar 2023 Sep 2022 Aug 2023
into negative zone in the prices is unlikely in the near ending 24 September it stood 2023, due to a slower rebound
ongoing quarter, said analysts. term as stable demand is likely at $8.9 a barrel. in long-haul travel and the dis- For each indicator, an average band (shown in grey) is constructed around the five-year average value. The size of the grey band rises with volatility. Values falling above this band
As per Nomura Research, to continue, said CareEdge Refining margins are the tressed airline industry. are in green, those falling below are red, and those within this band are coded amber (the red/green coding is reversed for inflation). While calculating the five-year average, data for
some indicators for April-May 2020 and 2021 have been removed to eliminate lockdown-induced skews in the trend. All data as of 30 September 2023.
till the week ended 24 Sep- Ratings. margins that oil companies Further, OMCs have
Source: Centre for Monitoring Indian Economy, Bloomberg, Mint calculations
tember, OMCs were recording The higher crude prices are earn by converting crude oil increased the price of com-
under-recoveries of ₹7.40 a ltr likely to keep pressure on the into various petroleum prod- mercial LPG cylinders by over Data: Payal Bhattacharya; Graphics: Paras Jain
on the sale of auto fuels. marketing margins as the ucts. ₹200 across the country.
06 MOnday, 2 OCtOber 2023
Chennai CORPORATE LIVEMINT.COM

ONGC may
‘Prime Video invests heavily GST collection
set up two hits ₹1.62 trillion
petchem
projects
in original content in India’ in September
Gaurav Laghate like it’s a homegrown service. FROM PAGE 1
FROM PAGE 1 gaurav.laghate@livemint.com What are some of the innovations
MuMbaI started in India that you’ve taken to prises taking GST registration,
up two greenfield O2C plants other markets? Also, are there plans broadening the tax base and

in India,” said the annual
report. ONGC aims to capital-
ize on the trend of growing
demand for chemicals with
plans to substantially expand
its chemical and petrochemi-
cal portfolio from the current
4.2 million tonnes per annum
(mtpa) to 8 mtpa by 2030.
The company already has a
presence in the petrochemical
sector through its unit Manga-
lore Refinery and Petrochemi-
cals Ltd (MRPL) and ONGC
Petro Additions Ltd, a JV with
GAIL (India) Ltd and Gujarat
State Petroleum Corp. Ltd.
According to ONGC’s
annual report, the petrochem-
ical sector will remain the key
driver of global oil demand
growth, with liquified petro-
leum gas (LPG), ethane and
naphtha accounting for more
than 50% of the rise between
2022 and 2028, and nearly
90% of the increase compared
with pre-pandemic levels.
“Oil demand in the petro-
I
ndia is one of the top markets world- to introduce AVoD service for increasing the formalization of
wide for Amazon’s video streaming Prime content? the economy. While streamlin-
service Prime Video, and among the Some examples include Prime Video ing the indirect tax system has
two markets where it disproportion- Mobile Edition, which we first intro- helped in stabilizing revenue
ately invests in local content, said duced in India and have now expanded collections, its potential is con-
Kelly Day, vice-president international elsewhere, as well as our work expanding strained by the vulnerability in
business at the company. In an inter- the linguistic palette within India. In India’s consumption revival
view, Day provided insights into the India, we are also co-producing movies after the pandemic in the face
over-the-top (OTT) giant’s strategies, for theatrical audiences, in addition to of high inflation. Experts
challenges and outlook in the dynamic making Original movies and licensing believe that rural consump- Consumer food price inflation
world of streaming content. She spoke content in 10 languages. On AVoD, I don’t tion, which was subdued ear- was 9.94% in August. HT
about topics ranging from the recent have anything further to share today, but lier and had begun to make a
industry labour disputes to content we are continuously experimenting with comeback at the beginning of been significant traction. He
localization, and how data drives content different models in India. We already this fiscal as many enterprises expects the economy to grow at
recommendations. Edited excerpts: have several ad-supported opportunities resumed operations, has since 6.3% this fiscal, a notch below
in India, including MiniTV, Prime Video remained flat. the Reserve Bank of India’s
What’s your overall view on the Mobile Edition and Prime Lite, all of Abheek Barua, chief econo- forecast of 6.5%.
recent developments in the Writers which involve partnerships with adver- mist at HDFC Bank Ltd, said Automaker Mahindra &
Guild of America (WGA) strike and tisers We’ll continue exploring options to there is a risk associated with Mahindra Ltd on Sunday
how has it impacted the industry enhance the customer experience and food price inflation. If it sus- reported a 20% jump in domes-
and Prime Video? monetize our investments. tains, consumption may take a tic passenger vehicle sales in
We’re very happy that AMPTP (Alli- How do you measure the success hit. According to him, there is September, while domestic
ance of Motion Picture and Television and impact of content offerings, one factor that is helping boost tractor sales saw a 10.75%
Producers) has reached an agreement India is a unique market with its content in four or more languages, especially when some of your biggest incomes and giving impetus to decline. Hero MotoCorp Ltd
with WGA. We’re certainly looking for- low average revenue per user (Arpu). expanding the overall linguistic palette shows — Lord of the Rings and Citadel — consumption: infrastructure reported a 3% improvement in
ward to the Screen Actors (Screen How important is India for Prime of Indian consumers. The localization got negative press on their high cost? projects being executed by September in its domestic two-
Actors Guild-American Federation of Video, given the competitive stream- experience is super important and our We believe our global originals are both central and state govern- wheeler sales, which is often
Radio and Television Artists) reaching ing landscape and diverse linguistic India team has been the biggest advo- very successful, and we tend to focus on ments, quick seen as a proxy for
an agreement hopefully very soon as diversity? cate for investing in localization features the positive reception they receive demand creators GST’s potential is the health of the

chemical sector is set to grow
in the short and medium term
before stabilizing and plateau-
ing at around 18 million bpd
(barrels per day) in mean
(1.9°C) scenario,” it said.
This plan for a major invest-
ment in the petrochemical
space comes at a time when
the government is considering
making India a refining and
chemicals hub.
In May, union minister for
petroleum and natural gas
Hardeep Singh Puri said that
25% of the global energy
demand growth in the next
two decades is going to ema-
nate out of India.
rituraj.baruah@live-
mint.com
‘
well. We’re looking forward to every- Not only is India an incredibly impor- that we can deliver to our customers worldwide. Shows like The Lord of the that leave money constrained by rural economy.
body getting an equitable resolution and tant locale for us, but also one of the larg- worldwide. As we Rings: The Rings of in the hands of the vulnerability Consumption
getting back to work. The strike wasn’t est geographies in the world now for develop more and Power and Citadel have people. in consumption could pick up in
great for anyone. Having said that, we Prime Video. I think, for anyone who’s more content outside Not only is India an performed exception- “Consumption the festive season,
revival after the
have an incredibly diversified business operating in this space, if you’re building the US, we’re very incredibly important ally well. The Lord of the is flat, and there is but since it is sea-
pandemic in the sonal, it remains
model, which makes us unique when a global media business, India really focused on enabling locale for us, but also Rings: The Rings of some risk
compared to other needs to be one of the that content to travel Power was watched by involved due to face of high prices to be seen how it
streaming players in the one of the largest
space. We offer SVoD
m INTERVIEW core countries that
you’re paying attention
across lots of different
countries and really geographies now for
over 25 million people
on the first day, and
elevated food pri-
ces, particularly
will impact year-
on-year growth.
(subscription video on to and investing in. It’s an find audiences in other Prime Video overall 100 million coming from rural consump- In the first quarter of this fiscal,
demand) service in 240+ countries and incredibly diverse population, and places. In fact, I would people worldwide saw tion demand. It (the consump- household consumption, a key
Kelly Day
territories now. We also have an ever-in- we’ve seen not only fantastic subscriber like to point out that
VP, international for
the show. It was the tion story) is somewhat intact engine of growth, had stayed
creasing selection through TVoD (trans- growth coming out of India, but it has 25% audience of Indian Prime Video at Amazon most acquisitive title but is not a key driver of eco- nearly steady, according to data
actional video on demand), and Prime truly turned into a content engine as titles comes from out- we have ever launched. nomic performance,” Barua from the statistics ministry.
Video Channels is live in 17 countries. well as a source of tech innovation. side India. We are excited about said. The Centre had collected
Besides that, we also have sports, linear We introduced Prime Video Mobile India is also a market, apart from the forthcoming season as well. We are Consumer food price infla- ₹8.65 trillion in direct taxes up
channels, fast channels, and AVoD Edition—a mobile-only subscription in Japan, where we are disproportionately deeply invested in and are very happy tion was 9.94% in August, to 16 September after account-
(advertising video on demand) in some India first. We are also focusing on local- investing in local originals because we with the performance of our global origi- pushing headline inflation to ing for tax refunds, showing a
markets. Our extensive content library ization efforts to cater to a linguistically know that our local customers really nals. Citadel was our second-highest- 6.83%. Barua also said that at 23.5% jump in receipts and
ensures we can continue delivering a diverse country. In fact, today, over 60% love seeing, local talents and local story- performing title after The Lord of the the middle to upper tier of the meeting a little more than half
very wide selection to our customers. of the customers on Prime Video stream telling, and we want the service to feel Rings: The Rings of Power. consumer pyramid, there has of the full-year direct tax target.

Electric 2-wheeler sales on upswing after subsidy shock Smaller OTTs

REUTERS
steer clear
Alisha Sachdev
of originals
alisha.sachdev@livemint.com
new delhI Festive spirit drives record FROM PAGE 1

T car sales in September

he electric two-wheeler
industry, after setbacks tize producing original content
because of subsidy reduc- as a significant part of their
tions on electric vehicles (EVs), strategy, other factors also
is now showing signs of recov- FROM PAGE 1 lar models like the Creta is by FY24 industry growth strike the right chord with con-
ery, with companies readying to also improving. “September expectations of close to 7-9% sumers.
launch new, low-cost models. sales shrink 6% for the month, has witnessed our highest- (coming on a life-high FY23 “The Indian OTT landscape
BYD has invested $200 million in setting up two factories in India Sales of high-speed electric owing largely to its winding ever monthly sales, with wholesales of about 3.9 mil- has become a heavily cluttered
that assemble the Atto 3 and e6. REUTERS two-wheelers rose 20% in Sep- down production of an older 71,641 units despatched, a 13% lion units). What is important space, leaving consumers in a
tember from a year ago and 2% variant of its Nexon compact growth, including exports, is how the main festive season perpetual dilemma about how

MEIL in talks to from the preceding month, for

a total of 63,716 units, accord-
ing to the government’s Vahan
High-speed e-two-wheelers’
sales rose 20% in September.
SUV.
“For Maruti Suzuki, this
has been a good quarter at
and achieving the second-
highest domestic sales of
54,241 units, reflecting a 9%
starts from the Navratri
period and culminates in
Diwali, as dealers have
many subscriptions they can
realistically manage. This is the
challenge we are solving by

assemble BYD’s database, which records vehi-

cle registration data.
Meanwhile, internal combus-
for the first half of 2023-24 stood
at 66,600 units, reflecting sus-
tained growth in e-two-wheeler
459,000 units in sales, which
is also the highest ever in the
passenger vehicle segment.
increase over last year. This
year has been defined by a
surge in new models across
stocked inventory in anticipa-
tion of a good festive season.
The start of the festive season
scaling up the TVoD model in
India, which enables the audi-
ence to ‘pay for what you
tion engine (ICE) two-wheelers sales. In comparison, the aver- We also claimed the number our entire lineup, with mod- with Onam in Kerala and watch’,” Saksena said, adding
EVs in India also reported a growth of 22% as
the festive season boosts
demand for top-end vehicles.
age monthly registration rate for
the entire 2022-23 was slightly
lower at 60,500 units.
one position in the SUV seg-
ment, selling over 217,000
SUVs in the first half of the fis-
els like Exter and Verna being
well-received by customers,”
said Tarun Garg, chief operat-
Ganesh Chaturthi in western
India has been encouraging.
However, one needs to keep a
that when coupled with a con-
tent library featuring diverse
offerings from around the
FROM PAGE 1 ers so far, limiting adoption. E-two-wheeler volumes Electric scooters represented cal year. Our market share has ing officer of Hyundai Motor close watch on the October- world, the combination has
The government has been dipped to 46,000 after the gov- 4.9% of India’s total two- now improved to 42.3%, India. November festive season. We proven effective in driving
industries ministry on 27 Sep- pushing EV adoption through ernment significantly slashed wheeler market by the end of increasing from 41% in Sep- The surge in car sales is pri- believe with a slew of new increased adoption.
tember remained unanswered. schemes such as Faster Adop- the incentives it offered on EVs, September, marginally lower tember 2022,” Srivastava marily led by the demand for launches from the industry, Further, the company’s
While Megha manufactures tion and Manufacturing of resulting in vehicle prices than 5% at the end of August. said. more expensive models. the demand for the upper end strategy is to provide a person-
electric buses through Olectra Hybrid and Electric Vehicles in increasing suddenly. However, Consolidation in the electric For Hyundai, new “The record PV sales in the of the market led by SUVs alized and customized library
Greentech Ltd, a partnership India, a ₹25,938 crore produc- analysis by equity research firm two-wheeler market continued launches like the Exter micro- first half of the year in terms of should continue to perform that showcases content from
with BYD, its subsidiary Evey tion linked incentive (PLI) Elara Capital suggests that the into September, as a handful of SUV have propelled sales at a wholesales is largely on well,” said Jay Kale, an analyst around the world across genres
Trans Pvt. Ltd operates electric scheme for the auto sector, average monthly registration top EVs increasingly account for time the availability of popu- expected lines if we were to go at Elara Capital. and languages, Saksena
buses. BYD set up BYD India in including EVs, and a ₹18,100 rate for electric two-wheelers the bulk of sales in the segment. pointed out.
March 2007 and has invested crore PLI scheme for advanced
$200 million in setting up two chemistry cell, as well as reduc-
factories that assemble the Atto ing the goods and services tax
3 and e6. rate on EVs from 12% to 5% and
Megha, which is building the on charging stations from 18%
Zojila tunnel between the to 5%. Also, the ministry of road
Equities brace for volatile October amid bearish FPIs
Union territories of Ladakh and transport and highways has
Jammu and Kashmir, has also advised states to waive road tax FROM PAGE 1 selling in index and single- Also, the Nifty Midcap 150 is extending voluntary output
shown an interest in buying out on EVs. stock futures and in cash. trading at 26.77 times the trail- cuts by a combined 1.3 million
the government’s 63.75% stake India’s EV market is expected month, with a new series start- HNIs and retail investors, ing price-to-earnings multiple, barrels a day through Decem-
in Shipping Corp. of India Ltd to expand at a compounded ing the following day. If Thurs- described as clients by NSE, while the Nifty Smallcap 200 is ber, which comes on top of an
and the 26% stake annual growth day happens to be a holiday, the hold cumulative net bullish at 24.54 times against the output cut in April this year.
in state-run India’s EV market r a t e o f 4 9 % contracts expire a day prior. positions of 60% in index Nifty’s 22.21 times. This puts Around 85% of India’s oil
defence equip- is expected to between 2021 and Unlike at the beginning of futures and a whopping 90% the mid- and small-caps at a needs are met through imports,
ment maker expand at a 2030, with the the previous series, the differ- long in single stock futures. higher risk of correction. and a rise to three digits or
BEML Ltd. It was compounded segment’s vol- ence in the current series is that Apart from FPIs, domestic According to above could obvi-
also in the fray for umes set to cross FPIs are bearish on both cash institutional investors (DIIs), Goldman Sachs, DIIs, including ate interest rate
annual growth
buying Neelachal annual sales of 17 and derivatives segments. This including mutual funds (MFs) India has under- MFs and insurance c u t s b y t h e
Ispat Nigam Ltd, rate of 49% in the million units by could increase the volatility in and insurance companies, are performed peer firms, are hedging Reserve Bank of
which was current decade 2030, according markets in October compared hedging their long cash portfo- markets compris- India, with infla-
their long cash
acquired by a Tata to Invest India. to previous months, analysts lios by shorting index and stock ing the MSCI Asia tion likely to
portfolios by
Steel arm. Megha “Moreover, the said. futures. Pacific ex-Japan remain above its
recently secured a $648 million gradual improvement in charg- “In index, FPIs are taking “Clearly, the FPI shorting in FPIs turned net sellers of ₹14,768 crore in NSE’s cash market in index during most shorting index 6% upper toler-
work order from Mongol Refin- ing infrastructure and invest- short bets and have increased cash and derivatives will make September. MINT sharp oil rallies, and stock futures ance range for
ery State Owned Llc. ments in developing a local shorts in SSF (single-stock the market choppy,” said giving a negative longer.
As part of its energy transi- vendor ecosystem has further futures) marginally,” said Abhi- Nilesh Shah, managing ing markets), are risks to the likely to keep interest rates six-percentage- “Over $100-a-
tion efforts, India is focusing on contributed to the rapid adop- lash Pagaria, head of Nuvama director of Kotak Mahindra upside.” higher for longer to bring infla- point return in dollar terms on barrel oil could impact profit
the electrification of its econ- tion of EVs. Impressive invest- Alternative & Quantitative Asset Management Co. Ltd Bond yields in the US are tion back to the 2% target from a median basis whenever oil margins of OMCs (oil market-
omy by greening electricity, ments of at least ₹70,000 crore Research. Pagaria said that (Kotak AMC). “The rise of oil by inverted, with the two-year US 3.7% currently, the rate differ- has rallied more than 20% ing companies), autos and avia-
which involves a concerted for the OEM segment and high-net-worth individuals 25%-plus since July to date, treasury at 5.05% currently and ential between the US and above $70 a barrel since 2008. tion companies, and result in
push for green mobility, includ- ₹30,000 crore for the compo- (HNIs) and small retail inves- lofty valuations in mid-cap and the benchmark 10-year at Indian 10-year benchmark Since 10 July, Brent oil has price correction in their
ing EVs. However, limited nents segment have already tors were counterparties to the small-cap stocks, rising US 4.57%, which shows more bonds would further compress risen by 26% through $92.13 a shares,” said Rajesh Palviya,
charging points and the high been announced,” Icra said in a foreign institutional investor bond yields, which are leading money flowing into the longer- the risk-free rate of return from barrel and could increase more senior vice-president
cost of EVs have deterred buy- 1 August note. (FIIs), buying what they were to outflows from EMs (emerg- term bond. With the US Fed India, leading to outflows. with Saudi Arabia and Russia (research), Axis Securities.
LIVEMINT.COM CORPORATE MOnday, 2 OCtOber 2023
Chennai 07

SAIL aims to invest

₹5,500 cr in FY24 Novo, Torrent may widen tie-up
Naman Suri a company. So, ICVL (Interna-
naman.suri@livemint.com tional Coal Ventures Pvt. Ltd Talks have started at a time Novo Nordisk is looking to launch its weight-loss drug Wegovy in India by 2026
New delhi ) will be looking for capital as
we fix our plans. There are
Naman Suri & Mihir Mishra

S
teel Authority of India some plans to raise debt,” Pra- they understand obesity better,” he growing at about 11% per annum.
Ltd (SAIL) is planning to kash said. “And SAIL would New delhi said. “Once we are done with aware- Novo is looking to enter this segment.
invest ₹5,500 crore dur- rather depend on sourcing ness, and penetrating India’s insulin “There is a lot awareness required

N
ing this fiscal year to expand coal requirements via the ovo Nordisk India Pvt. market, we will be finalizing obesity in terms of moving from oral medi-
capacity, Amarendu Prakash, company’s capital mines,” Ltd, the local subsidiary product launches as well.” cine to insulin, which is better for the
chairman, SAIL, said. he added. of Danish pharmaceuti- Wegovy made its debut in the US in patient. A lot of awareness is required
“Last year, it was at ₹8,000 Benga coal mine is owned cal major Novo Nordisk, 2021 and was subse- on that front, too,” he said.
crore. Since current expendi- by ICVL, a SAIL joint venture is in early talks with Tor- quently launched in sev- MARKET According to a study,
ture includes sustenance pro- with Rashtriya Ispat Nigam rent Pharmaceuticals Ltd to expand eral European markets, DYNAMICS India is estimated to have
jects and de-bottling projects, Ltd, NMDC Ltd, Coal India their manufacturing partnership, a including the UK. The 101 million diabetics, and
it will be the same level as pre- Ltd and NTPC Ltd for acquir- top company executive said. company maintained that INDIA’S insulin nearly 136 million are pre-
vious years, about ₹5,500 cro- ing overseas coal mines and “It is a formidable partnership,” it may not launch the market is estimated
to be around ₹4,000
diabetic.
res or so,” he said on the side- other assets. managing director Vikrant Shrotriya drug in developing coun- crore, growing in India and Denmark are
lines of a conference. Steel producers are said, noting it has stood the test of tries since it was not being high single digits also in talks to adopt parts
The move by India’s largest expressing concerns about time over three decades. “I believe able to meet the demand of Danish regulatory prac-
steel manufacturer is part of surging coking coal prices, they have been a very reliable part- of developed countries. INDIA’S oral anti- tices in India, said Freddy
diabetic drug market
its ₹1 trillion driven by the clo- ner. So, we have been evaluating on Novo enjoys a 50% is even bigger at Svane, Denmark’s ambas-
i n v e s t m e n t s The ₹5,500 crore sure of a few expanding our partnership with Indian market share for ₹14,000 crore and is sador to India.
towards de-bot- is part of the mines in Austra- them,” Shrotriya said in an interview. Currently, Torrent Pharmaceuticals manufactures insulin for Novo Nordisk at insulin, catering to 3-4 growing at about 11% “We are big time mov-
t l e n e c k i n g ₹11,000 crore the lia. This coin- “We are considering whether this its Gujarat facility from crystals imported from Denmark. ISTOCK million patients with ing into regulatory collab-
efforts, aiming to company plans to cides with efforts (existing capacity) is sufficient. Prob- capacities of 40-50 mil- orations. Our regulatory
boost its annual by Indian com- ably, there is time before we might be crystals imported from Denmark. “There are always plans, and we are lion vials. It is planning deeper pene- authorities are well known for their
spend on
capacity from the panies to stock- working on an expansion,” he said. Discussions have started at a time trying it as early as possible. We are tration into the market. capabilities, and so forth. So, we are in
existing 20.6 augmenting pile coal to meet However, Shrotriya did not share any the company is looking to launch its working to create the pre-launch pro- India’s insulin market is estimated a discussion and dialogue… how to
million tonnes existing facilities the post-mon- details on the ongoing discussions. weight-loss drug, Wegovy, in India by cesses in terms of creating awareness. to be around ₹4,000 crore, growing bring in our regulatory skills, that
(mt) to 35mt by soon rise in Currently, Torrent Pharmaceuti- 2026. The companies have initiated We are building capacity and work- in high single digits. India’s oral anti- would help India be more prepared
2031-32. demand. SAIL is cals manufactures insulin for Novo the pre-launch process, including ing with doctors to create awareness, diabetic drug market, however, is for whatever comes.”
“Proposed scale of indica- working to secure 300,000 Nordisk at its Gujarat facility from applying for regulatory approvals. working on training courses, so that much bigger at ₹14,000 crore and is naman.suri@livemint.com
tive investment by SAIL to tonnes of coal through Rus-
reach annual capacity of sian imports, for the second
around 35mt of crude steel by time this year.
2030-31 will be around Market insights shared by
₹1,10,000 crore,” the govern- consultancy firm SteelMint
ment said in a statement in on its website showed Austra-
August 2022. lian premium hard coking
The ₹5,500 crore is part of coal prices as of 30 September
the ₹11,000 crore the com- stood at $333 per tonne FOB
pany plans to spend on aug- (free on board) and at $349
menting existing facilities. per tonne CNF (cost, no insur-
The steel major is also seeking ance, and freight) increasing
to double its capacity at Benga 3% over the previous week
coal mine, Mozambique, from due to growing buyer inter-
the existing 2mt to 4mt, ests, amid limited supplies.
through debt. “Capital explo- So, import of cheaper coal
ration and sourcing capital is from Russia will help provide
A SYMBOL
always a strategic decision for cushion to the steel major.
THAT STANDS FOR
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According to a Bango report, the average number of

subscriptions per person stands at 3.4 in India. ISTOCK

‘85% Indians rely on

mobile networks for
OTT subscriptions’
Lata Jha important to deliver reach for
lata.j@htlive.com producers…who may have dis-
New delhi cerning and high-quality con-
tent,” Harit Nagpal, managing

A
pproximately 85% of director and chief executive of
Indians rely on mobile Tata Play Ltd, which operates
network providers for OTT aggregator Tata Play
subscriptions, 59% use digital Binge, had said in an interview.
wallets and 50% TV or satellite The Bango report is based on
providers, Bango, which insights from a quantitative
facilitates global stores to survey comprising 6,171 partici-
deliver mobile payments, said pants from six countries,
in a report. including 1,030 respondents
The findings underscore the from India. This online survey
significance of aggregators, was conducted in August 2023
especially in India’s cluttered featuring an equal distribution
over-the-top (OTT) market. of males and females (50:50)
According to the report, the across an age group of 18-65,
average number of subscrip- spanning socioeconomic clas-
tions per person stands at 3.4. It sifications and subscribing to at
said 24% of users spend ₹300- least one service across OTT
599 per month on prepaid sub- streaming, music, health, gam-
scription plans. ing and food delivery. hindustantimes htTweets www.hindustantimes.com
Several emerg- The report said
ing aggregator Several emerging 92% of the users
platforms played a aggregators are subscribers to
role in expanding played a role in subscription
the reach of expanding the video on demand
streaming services (SVoD) TV and
reach of
in a competitive film apps, 74% opt
online video mar- streaming for music, 57%
ket such as India. services in India have for food
Telecom oper- delivery, and 47%
ators have been for sports. In
offering bundled services for terms of subscription duration,
OTT video platforms, but the 54% of users have month-long
emergence of aggregators such plans, 19% year-long plans, and
as Prime Video Channels, Tata 17% prefer bi-annual plan.
Play and Airtel Xstream Pre- However, not all subscribers
mium is poised to enhance the are satisfied. Around 12% were
reach and subscriber base of frustrated as they did not know
platforms that are not aggres- how much they spend every
sive with their distribution and month, 37% admitted to paying
marketing efforts. for subscriptions they don’t
With nearly 60 OTT plat- use, 55% said piracy is the best
forms operating in India, it is way to access content in one
challenging for any individual place, while 43% felt that they
player to capture viewer atten- were ‘locked in’ with their cur-
tion, underscoring the role of rent service, and 66% would
aggregators, said experts. prefer to opt out of automatic
“Aggregators (like us) are subscription renewals.
08 MOnday, 2 OCtObeR 2023
Chennai NEWS WRAP LIVEMINT.COM

QUOTES
Preeti Bajaj Ashish Chauhan Sean Behr
Lennard Hoornik CEO, Luminous Power Tech CEO, NSE Founder and CEO, Fountain
Chief Commercial Officer, We are making our invest- There is a sharp rise in China has some similar
JLR ments to be a multi-model Indian space start ups dynamics, but obviously
In a country (India) that organization which can with figures twice as there’s geopolitical challen-
is so big, with so much provide full solar solutions, many as earlier. Pri- ges, while in India you have a
diversity, I think there’s a full inverter battery backup vate investments bigger population and a very
role for each of the solutions to India and poten- jumped by 77% good place for technology to
brands to play. tially the world to that effect. between 2021 & 22. invest in this market.

Auditors debarred CLEAN ICON Tata Steel UK plans

for DHFL lapses decarbonization

T T
he National Financial Reporting ata Steel aims to complete
Authority (NFRA) has imposed penalties decarbonization journey at its plant in
on 18 auditors and also debarred them for the UK in next three years, the company’s
varying periods for lapses with respect to CEO T V Narendran said. As part of its
audits of various branches of housing finance decarbonization plan, the company will shift to
company DHFL. low-emission electric arc furnace (EAF)
Penalties totalling ₹18 lakh or ₹1 lakh each process from the blast furnace (BF) route which
has been imposed on the auditors for their is nearing the end of life in the next couple of
professional misconduct, according to 18 months. India-headquartered Tata Steel owns
separate orders passed by the regulator. the UK’s largest steelworks of 3 million tonne
Also, they have been debarred for a period of per annum (MTPA) at Port Talbot in South
six months to one year from “being appointed Wales and employs around 8,000 people
as an auditor or internal auditor or from across all its operations in that country.
undertaking any audit in respect of financial Tata Steel and the UK government recently
statements or internal audit of the functions agreed on a joint investment plan of £1.25
and activities of any company or body billion to execute decarbonization plans at Port
corporate”. The review was to probe into the Talbot steel making facility in Britain.
role of the Statutory Auditors of DHFL for FY Narendran further said of the £1.25 billion,
2017-18, the year in which the alleged fraud was £500 million is going to come from the UK
primarily stated to have occurred, as per the government. PTI
NFRA orders dated 29 September. PTI

A worker cleans a statue of Mahatma Gandhi during a cleanliness drive organized under the ‘Swachchta Pakhwada: Swachchta hi Seva’ campaign
ahead of Gandhi Jayanti, at the Parliament House complex, in New Delhi, on Sunday. PTI

The case has been filed against the Go First RP

Govt to finalize model for SCL Sable rewrote the previous Asian Games record
of 8:22.79. AP
Shailendra Ajmera.

Another Go First
PTI

modernization by year-end Sable, Toor bring

accolades to India
lessor moves NCLAT
A
vinash Sable became the first Indian

B
luesky 19 Leasing Company Ltd, aircraft
lessors to Go First, has moved to the
National Company Law Appellate
Tribunal (NCLAT) after an aircraft and an
engine lessor secured favourable orders
allowing them to inspect their assets.
The case has been filed against the GO First
Resolution Professional (RP) Shailendra
man to win the gold medal in 3000m
A call will be taken on which direction SCL will go, either R&D fab or a commercial fab steeplechase at the Asian Games while
shot-putter Tajinderpal Singh Toor defended
his title with an amazing final throw to beat
Gulveen Aulakh “The future course of action also depends on the provide 100% capital expenditure support. back the challenge from his Saudi Arabian rival
gulveen.aulakh@livemint.com interest from private players to the modernization Two, converting it into an at-scale manufactur- on Sunday. Sable, the 29-year-old national
MohAlI proposal,” the official added. ing entity with volume production of semiconduc- record holder, earned India its first gold medal
As per the EoI, the government is exploring two tor devices or chips. This new commercial unit in athletics, completing the race in 8:19.50

Ajmera and is scheduled for a hearing on 5
October. This series of aircraft lessors turning
to NCLAT began with Engine Lease Finance
BV, an engine lessor, filing a plea to secure the
right to inspect the aircraft.
On 18 August NCLAT granted the engine
lessor the permission to carry out inspections
and modified the National Company Law
Tribunal’s (NCLT) order from July 26th, which
had initially allowed Go First to operate the
leased aircraft. In its directive, NCLAT
disagreed with the part of the NCLT’s order
that had restricted the lessor from inspecting
the assets. Subsequently, aircraft lessor
Jackson Square Aviation also approached
NCLAT with a similar plea to secure the right
to inspection. KRISHNA YADAV
T
he government will take a call by the options. One, transforming SCL into an R&D-led could do either silicon semiconductor chip fabrica- seconds.
year end on whether Mohali-based centre of excellence with semicon R&D capabili- tion, compound semiconductor chip fabrication or Sable rewrote the previous Asian Games
Semi-Conductor Laboratory (SCL) will ties encompassing assembly, testing record of 8:22.79 held in the name of Iran’s
be developed further as a research and advanced nodes, and packaging. Hossein Keyhani set at the 2018 Jakarta Games.
development facility or a commercial advanced packag- The future course of action also Within this, the gov- Sudha Singh had won a gold in women’s
fab will be set up at the facility, according to a senior ing, compound depends on the interest from private ernment has pro- 3000m steeplechase in the 2010 Asian Games
official. “The request for proposals for moderniz- semiconductors, vided two options. in Guangzhou. Toor, the 2018 Jakarta Asian
ing SCL has been issued only last week, but the design and EDA players to the modernization One, a multi-entity Games gold medallist, came up with a mighty
government wants to move swiftly. Within a quar- tools, materials and proposal joint venture model, throw of 20.36 metres on his sixth and last
ter, a call will be taken on which direction it will go, other R&D areas. where government attempt to overhaul his Saudi rival Mohamed
either R&D fab or a commercial fab,” the official Within this, a new can extend capital Daouda Tolo’s distance of 20.18 metres. PTI
said, asking not to be named. R&D-cum-prototyping line for 300 mm wafer pro- support of 50% of the overall project cost and take
The ministry of electronics and information cessing on advanced nodes—of 28nm or below— majority equity stake. The private player will have
technology that issued a preliminary information would be set up, with a roadmap on progressing complete operational autonomy. Two, a build,
memorandum seeking expressions of interest (EoI)
from global and Indian players for modernizing
from 28nm to 14nm and below nodes over time. operate and maintain model where government
This R&D fab could also have advanced packaging will provide 100% capital infusion but retain 100%
‘Labour-intensive
SCL, is expecting responses latest by 21 October. capabilities. For this option, the government may ownership.
exports falling’

I
ndia’s labour-intensive export sectors such
Afghanistan embassy suspends operations in New Delhi India allows Nepal as apparels, marine products, plastics, and
gems and jewellery are showing a “troubling
to sell electricity pattern” as the country is experiencing a

A
fghanistan’s embassy in India suspended operations on Sunday, more decline in global market share across these
than two years after the Taliban’s return to power in Kabul following segments during the last five years, a FIEO

the collapse of the Western-backed government.
Most foreign nations—including India—do not officially recognize
Afghanistan’s Taliban government, but acknowledge them as the de facto
ruling authority.
This has left many Afghan embassies and consulates in limbo, with
diplomats appointed by the former government refusing to cede control of
embassy buildings and property to representatives chosen by the Taliban
authorities.
“It is with profound sadness, regret, and disappointment that the Embassy
of Afghanistan in New Delhi announces this decision to cease its operations,”
said an embassy statement posted on the social media platform X.
I
ndia has allowed Nepal to sell electricity
generated through two hydropower projects in
its real-time energy market starting Saturday
midnight, according to the Nepal Electricity
Authority (NEA). The Central Electricity
Authority of India has allowed the trading of 44
MW of electricity generated from the 19.4 MW
Lower Modi and 24.25 MW Kabeli B-1
hydropower projects in the real-time market in
the first phase, according to Suresh Bahadur
AFP India does not officially recognize the Taliban government. AP Bhattarai, the spokesperson at the NEA. PTI
report has said.
Apex exporters body Federation of Indian
Export Organisations (FIEO) also said that a
note of caution is warranted regarding a
distinct spike in export growth of roughly $40
billion as this particular surge is likely
attributed to a rerouting of crude oil trade
routes via India to Europe. It added that the
most “pressing concern” regarding the
negative export growth is the “poor”
performance of labour-intensive sectors. PTI

Green DeveloPment Pact: InDIa’s G20 PresIDency shows the way

to enable emission reductions in hard-to-abate sectors; working
towards facilitating access to low-cost finance; accelerating universal
EXPERT energy access; and developing global value chains of critical minerals.
While not bereft of challenges, achieving consensus in G20
VIEW sends a strong signal to national policymakers and international
markets. To be action-oriented, we focused on uniting the G20
A m i tA b h K A n t& around key targets and scalable processes that ensure implemen-
P r A b h At U PA d h yAyA tation. Foremost to this was securing agreement on tripling of
Respond to this column at global renewable energy capacity; scaling up investment and cli-
feedback@livemint.com mate finance; and paving way for the climate vulnerable African
Union to join the G20 as a permanent member.
giving a clarion call to governments, pension funds, investors
and markets that we need to raise our climate finance ambition
by at least a factor of ten.
Any confusion on the scale of ramping up required is laid to
rest by the acknowledgement that by 2030, developing countries
need $5.8-5.9 trillion to implement their Nationally Determined
Contributions and $4 trillion per year is needed for promoting
clean energy technologies.
Africa as a whole has contributed
The Green least to the accumulation of GHG emis-
Development sions in the atmosphere. Yet it is most
role of circular economy, extended producer responsibility and
resource efficiency in achieving SDG was further emphasized.
The G20 also expressed its determination to end plastic pollu-
tion; committed to conserving, protecting, restoring and sustain-
ably using the world’s ocean and marine ecosystems; and reiter-
ated its commitment to increase efforts to phase-out and ration-
alize, inefficient fossil fuel subsidies.
Prime Minister Narendra Modi had emphasized that climate
action must ensure the rise and development of the last person
in our global society. This has guided our efforts to promote the
interests of the Global South while raising the climate and SDG

I
ndia is a leader in the realm of climate change and sustainable
development goals (SDGs). It is the only G20 country to make
it to the top 10 of the Climate Change Performance Index. The
Sustainable Development Index ranks India 8th in terms of the
positive spillover effect of its actions on other countries’ ability
to achieve the SDGs. When India performs, it also enables the rest
of the world to deliver.
The growing sensitivity to climate and environment action
domestically also enabled India to raise ambition and emphasize
implementation through its G20 presidency via the Green Devel-
opment Pact.
It set forth bold objectives and initiatives for all member countries
to rally around and identify building blocks for an ambitious Green
Development Pact. For instance, for enabling transition to clean
energy, G20 countries agreed on: voluntary principles on hydrogen,
Getting agreement on tripling of renewable capacity by 2030
was necessary. Currently close to 3,400 GW renewable energy
capacity has been installed worldwide. The International Energy
Agency (IEA) estimated that tripling of renewable energy will
result in avoiding carbon dioxide (CO2) emissions of 7 billion ton-
nes between now and 2030 and will help to keep the 1.5C goal
within reach. This commitment from the G20 provides a head start
to the incoming COP28 presidency of the UAE to focus on other
important pieces under negotiations at COP28, most notable
being the Global Stocktake which will inform countries about what
is needed to keep the Paris Agreement’s temperature goal alive.
G20 leaders have also recognized that the ambition on cli-
mate finance needs to be revisited. This has been captured elo-
quently in the phrase “rapid and substantially scale up invest-
ment and climate finance from billions to trillions of dollars”,
Pact, as a whole, vulnerable to climate impacts. Having
the African Union in the room – a
will stand as a region whose development gains are at
unique legacy of serious risk of being undercut by
India’s G20. increasing climate impacts – we can
expect a greater emphasis on imple-
mentation and accountability of the
decisions and declarations made at the G20.
Within the Green Development Pact, the Indian presidency
also gave prominence to pursue environmentally sustainable and
inclusive economic growth and development. The pact high-
lights tackling unsustainable consumption patterns by main-
streaming of Lifestyles for Sustainable Development (LiFE)
through G20 High-Level Principles. As per IEA, these can deliver
one-fifth of the emission reductions needed by 2030. The critical
agendas in the midst of a geopolitically fraught environment.
India’s presidency with support from our G20 partners across
the aisle has successfully brought consensus on action-oriented
decisions to serve three broad purposes: enhancing ambition and
prioritising implementation of climate targets and SDGs; inspire
optimism for a substantial increase in climate finance; and ensure
a strengthened voice of the Global South for influencing the
future course of climate action and SDGs.
The Green Development Pact, as a whole, will stand as a unique
legacy of India’s G20. In achieving consensus on important elements
of this pact, we have paved way for unprecedented climate mitiga-
tion and revitalized SDG delivery in G20 countries and beyond.
Amitabh Kant is India’s G20 Sherpa, and Prabhat Upadhyaya
is senior policy specialist in G20 Secretariat. The views expressed
in this article are personal.
LIVEMINT.COM
m MINT SHORTS
Israel tech investment falls for
US averts shutdown of
seventh consecutive quarter
Investment in Israeli tech startups declined for the seventh consec-
utive quarter, according to new data that also showed a sharper
drop in funding than other global hubs. Tech startups raised $1.7
govt with funding bill
billion in the third quarter, 10% down from the previous three
months and 40% less than the year-earlier period, according to a
report by the Israel-based Startup Nation Policy Institute. While
global slowdown was the main cause of the decline, the report said This buys both the parties time to negotiate longer-term federal funding
political instability in Israel also added to the cause. BLOOMBERG
Bloomberg
UK announces £4 billion deal feedback@livemint.com
to build attack submarines The US narrowly averted a disruptive and
REUTERS
costly shutdown of federal agencies as
Congress passed compromise legislation
to keep the government running until
November 17.
The legislation, passed in both cham-
bers Saturday just hours before a midnight
deadline, buys Democrats and Republi-
cans time to negotiate longer-term federal
funding. It doesn’t include new funding
for Ukraine.
President Joe Biden signed the bill late
Saturday night, capping an extraordinary
day in Washington that began with the
A British defence minister Grant Shapps announced on Sun- country careening to what appeared to be
day a £4 billion ($4.9 billion) deal to build attack submarines. an inevitable and prolonged federal fund-
“Our ultimate national insurance is of course our at at-sea ing lapse.
nuclear deterrent,” Shapps told the governing Conservative “Tonight, bipartisan majorities in the
Party’s annual meet in Manchester. “Today, I can announce House and Senate voted to keep the gov-
we have signed contracts with leading British businesses to ernment open, preventing an unneces-
drive forward and develop the most powerful attack subma- sary crisis that would have inflicted need-
rines ever operated by the British Navy.” REUTERS less pain on millions of hardworking
Americans,” Biden said in a statement.
Final passage by the Senate was set in
Panama Canal reduces maximum motion earlier in the day by embattled
house speaker Kevin McCarthy, who
number of ships to 31 per day called the bluff of the far-right Republi-
The Panama Canal said it will reduce the maximum number of cans and pushed the last-minute compro-
ships travelling the waterway to 31 per day, from 32 in August, due mise. They’d threatened to oust him from
to a drought that has reduced the supply of fresh water needed leadership if he didn’t shut down the gov-
to operate the locks.That compares to daily averages of 36 to 38 ernment, a move most in Congress see as
ships per day under normal operation. Nine ships per day will be highly unpopular with voters.
allowed to use the new, bigger NeoPanamax locks and 22 per day “If somebody wants to remove me
will be handled through the older Panamax locks. AP because I want to be the adult in the
room, go ahead and try,” McCarthy told
reporters.
Maldives opposition candidate In unusually swift action in the typically
slow-moving Capitol, the bill made it
Muizzu wins presidential vote through both chambers in less than 12
Opposition candidate Mohamed Muizzu has won the Maldives hours. “Total roller coaster,” Representa-
presidential election, beating incumbent President Ibrahim Solih tive Guy Reschenthaler, the House GOP
in a second-round runoff that could herald a pro-China shift for chief deputy whip, said of the day’s events.
the Indian Ocean archipelago, from traditional partner Americans to investors globally have
India.With nearly all votes counted, the Elections Commission of been watching Washington closely in
Maldives said on its website that Muizzu had received 54% of the recent days as the risk of a shutdown grew.
ballots , with 46% for Solih. “Today the people made a strong deci- Even a short-term funding breach would
sion to win back Maldives independence,” Muizzu said. REUTERS pause many federal functions and pay-
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GLOBAL MOnday, 2 OCtOber 2023
Chennai 09
EU’s carbon war
goes int’l as border
tax comes into play
Bloomberg
feedback@livemint.com
The European Union has been
accelerating its push to become
the first climate-neutral conti-
nent. A new policy coming into
force on Sunday will be a first
step toward nudging other
parts of the world to follow suit.
The measure will eventually
place a levy on carbon-inten-
sive imports so that European
companies forced to comply
with the continent’s strict cli- Russia and China have strongly
mate laws won’t face unfair opposed the matter. REUTERS
competition from producers
outside the bloc. From Sunday, in from January 2026, compa-
the start of the first phase of the nies will be required to pay a
so-called Carbon Border gradually phased-in levy in line
Adjustment Mechanism, with prices in the EU’s carbon
importers from six carbon-in- market. The benchmark EU
tensive industries will be emissions contract was at
required to start reporting on around €82 per metric tonnes
their emissions. of carbon on Friday.
“It will have strategic and Even the transitional phase
financial implications for busi- of the border mechanism,
nesses around the world,” said before any taxes are put in
The bill passed the Senate on an 88-9 vote, just hours after a House vote. AFP Tim Figures, a senior expert at place, will force producers in
Boston Consulting Group. exporting countries to put a
checks, while economists predicted that a ATACMS missiles. “Sunday is just the start of a bigger focus on their carbon
long-term shutdown could impede the Biden and other lawmakers sought to long process but footprint, accord-
Federal Reserve’s efforts to quell inflation assure Ukraine that the US remains com- even if some firms From Sunday, ing to Figures.
without widespread job losses. mitted to the war effort. are not impacted importers from 6 “First, their
Markets also considered how an The US has sent $44 billion to Ukraine right away, they carbon-intensive products will be
impasse could further harm perceptions since the Russian invasion last year and may be at a later industries will be less competitive if
of US governance. Biden has requested an additional $24 bil- stage, as the EU they don’t reduce
required to start emissions and
The legislation, which is devoid of deep lion to refill accounts that the Pentagon has an option of
spending cuts and border says are nearly depleted. including more reporting on second, the pros-
policies demanded by The legislation “We cannot under any cir- industries.” their emissions pect of paying a
Republican hardliners, passed on cumstances allow American The mecha- price on carbon in
marks a rare bipartisan vic- Saturday includes support for Ukraine to be nism has already the EU will act as
tory in a fiercely divided $16 billion in interrupted,” Biden said, faced pushback from the EU’s an incentive to invest in decar-
Washington. adding that McCarthy has major trading partners includ- bonization,” Figures said. “That
disaster relief
“After trying to take our committed to passage of a ing Russia and China, who may also mean a change in
government hostage, MAGA funding but not separate Ukraine aid pack- argue that it undermines the trade patterns: carbon-inten-
Republicans won nothing,” aid for Ukraine age. The bill passed the Sen- principles of free trade. It’s also sive products will be harder to
Senate majority leader ate on an 88-9 vote, just added to trade tensions sell on the EU market so they
Chuck Schumer said after hours after an overwhelming between the EU and US. could be shifted to third coun-
final passage. House vote that included nearly all Demo- But once it gets underway, tries without carbon tariffs.”
But the exclusion of the Ukraine aid —at crats and more than half of Republicans. the mechanism will be a key The EU still has a lot of work
least for now—is a blow to President Volo- The legislation includes $16 billion in test as to whether carbon pric- to do for the mechanism to
dymyr Zelenskiy, who last week met with disaster relief funding but not aid for ing can be established around operate smoothly, from ensur-
Biden and lawmakers and personally Ukraine. Lawmakers in both parties who the world as part of efforts to ing compliance supervision in
pleaded for new weapons systems, includ- support the Ukraine funding said that limit global warming. Under member states to introducing
ing F-16 fighter jets and longer-range would be handled separately. the second phase, which kicks more detailed technical rules.
10 MOnday, 2 OCtOber 2023
Chennai LONG STORY LIVEMINT.COM

THE EU IS REBOOTING
iTS EnlARGEMEnT MAChinE
Going from 27 to 36 members will, however, require reform of the bloc

European Union flags flap in the wind as pedestrians walk by the EU headquarters in Brussels on 20 September. The European Quarter is the headquarters of the main buildings of the European Union, inluding the European Parliament. AP

through the history of the club, which
started off with just six members and
ended up with 28 (before Britain left). But
by 2013, when Croatia was let in, the pro-
cess seemed to have run its course; no
member, saying it would take “several dec- mint membership. The aim is to provide imme- prove most divisive. Some issues are easy
ades”; he had previously thrown sand in SHORT diate returns for reforms, and not promise to handle: at the moment, the European
the gears of Balkan accession. Now France STORY a large but distant carrot only once mem- Commission, the bloc’s executive arm in
has become an unexpected champion of bership is secured. Beyond participating Brussels, is composed of one appointee
enlargement. Other existing EU members in EU policies, such as energy intercon- from each country. In a union of 36, some
WHAT

R
ussia’s invasion of Ukraine has one has joined since then, and the previ- were always keener on the idea: Ger- nections or student exchanges, the appli- (smaller) countries might have to give up
prompted a slew of geopoliti- ous entrants, Bulgaria and Romania, many’s governing coalition agreement, cant countries would get cash—a time- the right to a commissioner.
cal realignments, from China arrived as far back as 2007. signed in 2021, commits it to letting in the The EU is giving serious honoured way to spur reforms. A more contentious but necessary
to India by way of Turkey. Some of this reflected “enlargement West Balkans. Central Europe also wants consideration to bringing More chunky are the EU’s efforts to change would be for more decisions to be
Many are likely to prove fleet- fatigue” among Europe’s old guard, for Ukraine and others to join—on security nine new countries, including show that the club is undertaking its own made by qualified-majority voting,
ing. But one that may prove durable is a example France, which feared that wid- grounds. That is as much of a consensus as Serbia and Ukraine, into reorganisation, necessary for enlarge- whereby big countries carry more weight
new European order now being actively ening the EU had come at the expense of is likely to be reached on any EU issue. the club for the first time ment to happen. The buzzword in Brus- than small ones. At present important
considered. Some 2,000km from the deepening its integration. Others came to Two hefty obstacles lie in the way of in more than a decade. sels is “absorption capacity”, so that a swathes of policymaking—including for-
front lines, in Brussels, the war on its con- agree, especially after the behaviour of Europe formally welcoming nine new union of 27 does not collapse under its eign policy, economic sanctions, policing
tinent has prompted the European Union some of the new member states, former members. The first concerns the appli- own weight when it swells to 36. Not only matters and taxation—must be agreed
to give serious consideration to bringing Soviet-bloc countries granted entry cants. The second is the readiness of the SO would enlargement alter the shape of the unanimously by all 27 member states.
new countries into the club for the first mainly in 2004. Hungary and Poland club they want to join. EU, but it will have to modify its inner France and Germany are keen for more
time in over a decade—and to adapt the have at times been run by governments Start with the applicants. In short: On 6 October, the EU’s workings, too. areas to be impervious to veto by just one
union for what is likely to be its last big accused of flouting core EU values con- there is a good reason why Bosnia- 27 national leaders will Discussions are at an early stage and or two recalcitrant countries. But many
enlargement. cerning the rule of law. For much of the Herzegovina, Montenegro and the others meet in the Spanish city of will take years. But two big changes will small countries feel that such vetoes pre-
On October 6th the EU’s 27 national 2010s the EU was embroiled in the euro- are not already in the EU. None of them Granada to lay out a path have to take place. The first concerns the serve their sovereignty. And much of cen-
leaders will meet in the Spanish city of zone crisis and was not much in the mood is particularly well run. All suffer from a to what is likely to be its EU budget. The bloc normally spends tral Europe already distrusts decisions
Granada to lay out a path to this enlarge- to take on new challenges. Ukraine for its mix of autocracy, corruption and weak last big enlargement. only about 1.2% of its combined mem- crafted in Paris and Berlin that would be
ment, and ponder how a reshaped union part was too big, too poor, too corrupt rule of law. Moldova, Georgia and bers’ GDP, €1.8trn ($1.9trn) over its sev- foisted on them.
would work. The road to EU membership and too agrarian to enter a club that mol- Ukraine have Russian troops on their ter- en-year budget cycle. That is both not Hence a lot of cogitation. A group of
for up to nine new countries—including lycoddles its farmers. ritory. The EU prides itself as a “peace BUT very much and yet enough to create win- think-tankers commissioned by the gov-
Serbia, Albania and four The war in Ukraine project”, yet simmering tensions endure ners and losers—and ernments of France and
others in the Western has changed the calcu- between two putative members, Serbia Joining what would become more all-night wran- Germany has suggested a
Balkans, as well as Some countries have lus. “Enlargement used and Kosovo, including periodic armed the world’s largest economic gling at summits. Many member states, “multi-tier” structure for
Ukraine, Moldova and turned to new patrons, to be driven by hope; scuffles. Serbia has refused to apply sanc- bloc, on a par with America, The common agricul- including Poland, suspect Europe, with more pro-
possibly Georgia—will now it is driven by fear,” tions against Russia; its president, Alek- will require deep reforms tural policy hoovers up jects (like the euro)
be tortuous. Joining including Russia, Turkey as a diplomat from an sandar Vucic, used his recent address to of the sort current aspirants around a third of the the entire debate around adopted by only some
what would become the aspiring country puts it. the UN General Assembly to blast the have so far shunned. bloc’s budget, as do member states. Others
and China, which have EU reforms is being cooked
world’s largest eco- Strung along for years West over old grievances. Kosovo for its “cohesion” and region- want to make it easier to
nomic bloc, on a par showered the region with with promises of acces- part is not even recognised as a state by al-aid funds flowing to up to make it harder to punish governments that
with America, will sion, some countries five current EU members. promised EU membership as a reward poorer countries and flout democratic norms,
require deep reforms of aid and investment. have turned to new pat- Bosnia is still riven by the ethnic ten- for reforms since 2003. But enlarge- regions. Under current bring in new members. like Hungary today, for
the sort current aspi- rons, including Russia, sions that broke up Yugoslavia in the ment optimists—now in the ascendant rules, such funds would example by suspending
rants have so far shunned, or those that Turkey and China, which have show- 1990s. Montenegro, once a front-runner across the EU—think all that is needed is be soaked up by the newcomers, in par- their voting rights on EU matters.
Russian invaders make hard to pull off. ered the region with aid and investment. for EU membership, has had a caretaker a new dynamic. Up till now, applicant ticular by Ukraine and its vast farms. The Few of the suggestions put forward
From the EU’s perspective, morphing That used to be merely annoying for the government for over a year. Even when countries sensed that even if they upshot would be stark: 18 current EU today are likely to survive intact. Many
from a club of 27 today to perhaps 36 EU. Now it is an intolerable incursion pro-EU leaders seem to be undertaking reformed, the doors to the club would members now receive more money than member states, including Poland, suspect
tomorrow will be possible only if its inner into its back yard. useful reforms, for example Maia Sandu remain shut. This bred a vicious cycle of they put in, including all of central the entire debate around EU reforms is
workings are revisited. That will include When thinking of Ukraine, by far the in Moldova or Edi Rama in Albania, fears cynicism: they pretended to reform, and Europe. Unless existing policies are being cooked up to make it harder, not
changing the balance of power between biggest aspiring entrant, officials from EU abound over whether the next election’s the EU pretended to want them in. overhauled, quite possibly all today’s easier, to bring in new members. These
the bloc’s central institutions and its countries wonder if having a neighbour winner will be suitable to sit at the top The latest signals from Brussels are members would become net contribu- fears are accentuated when those who
national capitals, for example making the with lots of battle-hardened men left out- table of the European Council. The same different. “The EU is ready. The EU is tors. Mere tweaks to farming subsidies want lots of changes say the process must
club less hostage to a single country’s side the bloc looking in may be a recipe for is true of Ukraine and whoever might suc- serious this time,” says Miroslav Lajcak, are usually enough to send protesting involve a reform of the EU’s treaties—a
whims. Such internal reorganisations can future strife. The EU is on the hook for ceed Volodymyr Zelensky. Teams of EU the club’s point man for the Western Bal- farmers on their tractors into the streets cumbersome exercise last attempted in
easily prompt squabbling at the all-night reconstructing the country anyway. The officials visiting Kyiv have been kans. He adds a caveat: “But I feel that the of Brussels spreading manure. A more the 2000s.
summits the union is known for. costs of bringing Ukraine and others into impressed by how much effort the coun- region is still not convinced about that.” radical overhaul might be politically The topic of when and how enlarge-
Nobody expects the process to be the club will be heavy, for they are still try is putting into ticking all the boxes For now, there are few signs that the dis- unpalatable in several countries. Poland, ment will happen will dominate the Euro-
quick: a target date of 2030 that is being poor, corrupt and agrarian in varying required to keep the accession process trust and despondency that have charac- once Ukraine’s most steadfast ally within pean political discourse for years. The
considered for both applicants and the degrees. Yet there is a good case to be jogging along. But who will be Ukraine’s terised the Balkans’ relations with the the EU, recently blockaded grain final destination remains unclear. But the
EU to be ready is ambitious. But the fact made that it would prove even costlier to president in 2030, or 2035? EU—and its messy internal politics—are imports from its embattled neighbour, fact that the prospect of a bigger EU is at
that bringing more countries into the keep them out. being overcome. straining its relationship with the gov- last being taken seriously is a mark of how
bloc is on the agenda at all is remarkable, Nowhere has this new reality dawned so Balking at the Balkans Two things are being done to break this ernment in Kyiv. much the war in Ukraine has reverberated
seeing how enthusiasm for any newcom- clearly as in France. As recently as May
ers has waned in recent years. Enlarge- 2022 Emmanuel Macron seemed to write
ment had once been a red thread running off the prospect of Ukraine becoming a
T he obstacles may seem insur-
mountable, particularly in the
Western Balkans, which have been
cycle. The first is a new consensus in Brus-
sels that applicant countries should feel
the benefits of the EU before getting full
The other huge challenge is to adjust far beyond the front lines.
the EU’s basic rules over how decisions are ©2023, THE ECONOMIST NEWSPAPER LIM-
made. This is where the wrangling will ITED. ALL RIGHTS RESERVED.
LIVEMINT.COM
How this IT couple tackled a crisis
on their path to financial security
Bengaluru-based family sought the help of a registered investment advisor to close in on its financial goals
Jash Kriplani
jash.kriplani@livemint.com
H
ow do you deal with
unexpected financial
events, such as medical
emergencies or job loss?
Most people are unpre-
pared for such events and are eventu-
ally forced to dip into their savings.
Some already have a financial plan in
place to meet any exigencies and
their life goals.
To be sure, financial planning and
advice are taken much more seriously
globally, while Indians are slowly
opening up to it.
Ahead of Word Financial Planning
Day, which falls on 4 October this
year, Mint spoke with a Bengaluru-
based family about their decision to
opt for a financial planner and how
their 10-year financial plan helped
them achieve their goals.
Financial crisis
Sreekumar, 50, who works in the
information technology (IT) sector,
says the wake-up call for his family
came when his father fell ill suddenly.
“He was admitted to the intensive
care unit of an hospital and the treat-
ment lasted more than three months.
The recovery was short and, eventu-
ally, my father died, in 2012,” he
recalls.
Sreekumar and his two sisters had
employer insurance that covered their
father’s treatment as well, but even the
combined limits of these health covers
were not enough to meet the treat-
ment costs. This led to a significant
depletion of family finances.
Around the same time, Lovaii Nav-
lakhi, a Sebi-registered investment
advisor (RIA) and chief executive offi-
cer of International Money Matters,
told him about the financial planning
services offered by his company. “It
helped that Navlakhi was a neigh-
bour,” Sreekumar says. “Until then,
we did some bit of financial planning
by ourselves. But we were also look-
ing for a structured approach to our
finances and wanted to make sure
that we had enough funds set aside
for contingencies,” he adds.
Shock absorbers
Navlakhi’s first piece of advice for
Sreekumar was to buy a separate
medical cover for the family. “The
employer insurance covers back then
were not adequate. So, we immedi-
ately agreed and purchased a family
floater cover,” Sreekumar says.
A family floater is a health insur-
ance plan that covers all family mem-
bers of the policyholder. This policy,
which covered his wife Cynthia and
his daughter, who was nine years old
then, has a sum assured of ₹50 lakh.
Navlakhi also asked Sreekumar to
get adequate life cover through a
term plan to meet his family goals,
lifestyle expenses and liabilities dur-
ing any contingency.
Best home loan rates
Interest
Lender
rate (%)
Bank of Baroda 8.40-10.60
Union Bank of India 8.40-10.80
IDBI Bank Limited 8.45-12.25
Indian Bank 8.45-10.20
UCO Bank 8.45-12.60
Bank of India 8.50-10.75
Bank of Maharashtra 8.50-10.90
Central Bank of India 8.50-9.50
Punjab & Sind Bank 8.50-10
Punjab National Bank 8.50-10.10
HDFC Bank 8.5-9.40
Canara Bank 8.55-11.25
State Bank of India 8.60-9.65
Karnataka Bank 8.75-10.43
Kotak Mahindra Bank 8.75-9.60
Data taken from banks' websites as on 28 September 2023. EMI range is indicative and calculated on the basis of interest rate range; it may include other
charges and fees. Actual applicable interest rate may vary based on the credit profile of the loan applicant. Special Processing fee is only applicable for
salaried customer with Bureau Score >= 750 & loan amount >= 50 lakh & inclusive of all taxes, CIBIL & CERSAI charges (if applicable)
*& ₹8,500 + GST (Per Property) for Non-Digital Channel; #For self-employed non professionals: Up to 1.50% or ₹4,500 whichever is higher + applicable
taxes; ^Upfront PF of ₹5,000 (plus taxes and any other applicable statutory dues) shall be collected at the time of login which is non-refundable.
SATISH KUMAR/MINT
MINT MONEY MOnday, 2 OCtOber 2023
Chennai 11
POWER
POINT
JOYDEEP SEN
We welcome your views and comments at
mintmoney@livemint.com
WHAT TO EXPECT
FROM RBI’S POLICY
How financial planning turned this family's fortunes
and his daughter’s education.
“We got good advice and were told
to continue with the home loan as its
MEET THIS WEEK
tenor was ending soon and the inter-
T
We wanted to plan our finances better est component had largely been paid he last interest rate hike by the Reserve Bank of India (RBI),
after a sudden medical emergency in off over the years,” Sreekumar recalls. in the current rate hike cycle, happened on 8 February. The
the family led to depletion of funds" However, the corpus for some next meeting is round the corner, on 6 October. It is likely
financial goals has increased signifi- that RBI would pause at the current level for some time. There
-Sreekumar cantly over the years. For example, is also a faint expectation that RBI may hike the rate one last time,
Sreekumar’s daughter, who is 19 years taking the repo rate from 6.5% to 6.75%. Here are two factors that
Risk profile of family members now, enrolled at a foreign university will influence the decision by RBI.
SREEKUMAR, 50 (husband) last year. Sreekumar and his wife had Inflation spike: consumer price inflation (CPI) hit a high of
Slightly more aggressive investor set aside funds for their daughter’s 7.44% in July. This was higher than RBI’s tolerance band of 6 %,
graduation in India and postgradua- higher than what the market was expecting, and a leap from
CYNTHIA, 50 (wife) tion abroad. “But our education coun- June’s 4.87%. This had more to do with supply-oriented issues.
Conservative-to-moderately aggressive investor sellor suggested it would be better if It was largely due to vegetable prices, which shot up due to an
ANANYA, 19 (daughter) she does an undergrad course in lib- erratic monsoon and other reasons. Till 28 September, rainfall
Given a small portfolio to learn about investments eral arts from a foreign university, was 6% lower than the long-period average. We have already seen
given her academic record and acu- that tomato prices have eased from its peak of more than 100. The
Gaps identified and fixed men. She got admission in a university government has taken measures on grain and vegetable supplies,
Debt-heavy asset allocation in the UK,” he says proudly. with export restrictions, supply at controlled prices, etc. Inflation
 Moved to balanced portfolio Although the costs are high for a for August has eased to 6.83%.
Only employer medical cover
four-year undergrad programme— In the policy review meeting on 10 August, RBI revised the
 Suggested family floater (₹50 lakh cover) ₹25-30 lakh per annum, Sreekumar inflation projections upward. For the financial year 2023-24, the
says he has used investments linked CPI projection was revised from 5.1% in June to 5.4%. The revi-
No life cover to another goal (buying a new sion was steepest for the July-September quarter. From 5.2% ear-
 Suggested term plan (₹90 lakh cover#)
house) to fund his daughter’s educa- lier, projection for the quarter was raised by one percentage point
From left to right: Cynthia, Ananya and Sreekumar #Rider of income benefit due to accidental disability
tion. “We were again given timely to 6.2%. Inflation for July and August being 7.44% and 6.83%,
Couple's asset mix (in %) Changing goals advice to avoid taking education respectively, there is a possibility that CPI for the July-September
loans for at least the initial years. So quarter may overshoot RBI’s projection of 6.2%. Crude oil prices
Original portfolio Corrected for a Current asset New goals Adjustments far, we have easily managed her first have moved up to around $94 a barrel. However, petrol and die-
balanced portfolio allocation Sovereign
Equity (domestic) gold bond Undergrad education for two years of the undergrad pro- sel rices have not been increased for some time, which is a saving
Equity (domestic) gramme,” he says. grace in the context of inflation.
International daughter in UK
3 equity** 53 Utilized investments kept The goal of buying a new house was Spike in US treasury yields: US government bond yields
57 for new property purchase added back later. The tweaked finan- have moved up. The 10-year treasury
43 35 2023 57 cial plan now requires the family to There are mild is at 4.65%. The dollar has strength-
2013 2017 Debt Equity House upgrade
(domestic*) Debt make higher investments so that expectations of ened: Dollar Index (DXY), the global
(property purchase)
97 there is a sizeable corpus that can still measure, has moved up from 100 to
Debt Increasing investments to partially fund the house purchase. RBI hiking the more than 106. Expectations of
*Asset allocation to equity has reduced due to withdrawals for daughter's overseas education, domestic
restore funds for property
Sreekumar and his wife want to avoid rates again, the another rate hike by the US Federal
purchase
equity mix: 56% large cap, 22% mid cap, 10% small cap & 12% pharma; **International equity includes
international FoFs and shares of the multinational company where Cynthia works.
a home loan this time as they are clos- last time in this Reserve are high. This has been
ing in on their retirement. At a later rate hike cycle driven by positive GDP growth, buoy-
point, they could consider selling ant labour market data and the Fed’s
Status of goals their existing house but still want to communication after it met on 20
Corpus reached Retirement, medical corpus,
daughter's marriage fund the initial payments of the new September. The probability of a rate hike in US Fed meetings
Long-term goals
(5-year-plus) 60% home from their investments. is imputed from levels of US Fed Funds Futures. For the forth-
For now, the family’s allocation to coming Fed meeting on 1 November, the market is assigning a
Short-term goals Daughter's education, new equity has reduced due to recent 22% probability of a rate hike. It is 42% for the next meeting on
(0-5 years) 53% house, contingency fund
withdrawals. Their portfolio com- 13 December.
prises assets in the following propor- There is a perception in some sections of the market that a rate
PARAS JAIN/MINT
tion: equity-35%, international stocks hike by the US has to be followed here by RBI. The logic given is
Navlakhi’s firm reviews the fam- insurance coverage provided by my After the first review in 2013, Nav- -5%, debt-57%, and sovereign gold that if the interest rate differential and sovereign bond yield dif-
ily’s goals, expenses, liabilities and employer,” he says. lakhi decided it was time for the family bond -3% . The global equity expo- ferential between US and India is low, foreign investments may
liquid assets every year and recom- Getting the asset mix right to move slowly to a more balanced sure includes international funds and flow out. If the dollar is strong, we have to hike interest rates to
mends additional cover in case of a Sreekumar and his wife, both IT portfolio. For the first two years, they shares of the multinational company support the rupee. However, this logic is not right. Foreign port-
shortfall. Sreekumar has been professionals, underwent a risk pro- were asked to put in place all risk-miti- where his wife works. “Four-five folio investments in Indian sovereign bonds is less than 1% of the
enhancing the term cover intermit- filing exercise to determine their risk gating measures such as medical years back, Cynthia was allowed to outstanding stock. There is no need to modulate our interest rate
tently. At present, he has tolerance. cover, life cover and contingency fund. structure her salary in a way that part policy as per external suitability. Post the announcement of
a term plan that provides Besides a family Sreekumar was iden- Over the next three years, their asset of it was used to buy stocks of her inclusion of our government bonds in JP Morgan Emerging Mar-
₹90 lakh coverage and floater health tified as a slightly allocation was changed, to 57% invest- company,” he says. kets index from June 2024, FPI inflows in debt of more than $25
an income benefit rider plan, the couple aggressive investor, ments in equity and 43% in debt. The couple’s retirement plan billion is expected. On currency, while the level of DXY is rele-
that will take care of his have got a term while his wife fell in the “As the family didn’t have much remains intact. Although the corpus vant and influences the level of the rupee, our currency has been
financial goals in case of conservative-to-moder- experience with equity, we also didn’t requirement has increased a bit over reasonably stable. While the DXY strengthened from 100 to more
insurance cover
accidents resulting in ately aggressive cate- want to rush them into it. So, we let the years, Sreekumar says we are than 106, the rupee has just breached 83.
any disability. and also realigned gory. them gradually build their equity already halfway there in terms of the In the context of the forthcoming RBI policy review meeting,
Sreekumar has also their investments However, the family’s exposure through systematic invest- required corpus. “It is important that it is best to keep fingers crossed that interest rates are main-
put in place a separate existing investments ment plans,” says Navlakhi. there is enough corpus to fall back on tained—especially if you have availed of a home loan or any other
contingency fund on were highly conserva- Changing goals when regular income stops,” he says. floating-rate loan, . From the investment perspective, in the event
Navlakhi’s advice. The fund can be tive, with 97% of their portfolio When Sreekumar contacted Nav- The retirement corpus is expected of an unlikely repo rate hike, there will be some immediate reac-
used to draw up to three months of invested in debt instruments. The lakhi and his team, he already had a to cover the couple’s living, travel and tion in the market. However, thereafter, the market will look at
expenses. debt portfolio included bank fixed home loan. While Sreekumar wanted medical expenses post-retirement. it as the last in the rate hike cycle and move on. As and when infla-
Sreekumar’s 84-year-old mother deposits, some cash in savings to close the loan as soon as possible, Sreekumar is confident that by the tion eases, the case for interest rate cuts will build up, likely April
has moved in with one of his sisters accounts and employee provident he was advised to route his monthly age of 60, he and his wife would be 2024 onwards.
now. “My mother now has a medical funds. Only 3% of their portfolio was surplus towards long-term invest- comfortable stepping into their Joydeep Sen is a corporate trainer (financial markets) and
cover of ₹10 lakh as part of the health exposed to equity. ments for goals such as retirement retired life. author.
What are a nominee’s rights to investments?
A home loan is probably the biggest loan that one takes. Not only in terms of the loan
amount, but also tenure, which can be 15 years or more. The total final amount that one
pays can be double of what was borrowed. But a home loan is among the cheapest loans Keshav Singhania & Roopal Bajaj the propositus (the person
available, and usually it is the only way a person can buy a house. A home loan is called from whom the line of descent
a ‘good’ loan because it helps you acquire a tangible asset that can appreciate over the Is the nominee of a bank begins) and three generations
long term. It makes sense to buy a house if you plan to live in it. Given the fact that the account, fixed deposit, of lineal descendants.
construction of several housing projects in India continues to be delayed or stalled by bank locker, and other Following a 2005 amend-
many years, financial advisers say that one should buy a ready-to-move-in house. Here’s a investments automatically ment, daughters of coparce-
look at the lowest home loan interest rates of some leading banks. qualify to be the owner of ners are now recognized as
Loan amount = ₹30 lakh. Tenure = 20 years such assets in the event of coparceners by birth, in the
the death of the original same way as sons. In a land-
holder? mark decision, the Supreme
EMI (₹) Processing fee
-Atit Dalal Court affirmed that this
amendment aimed to ensure
25,845-30,153 Up to 0.50%. Nil, subject to recovery of out-of-pocket expenses of ₹7,500 + GST (online)
A nominee is not the legal equal rights for daughters.
25,845-30,558 0.50% (Max. ₹15,000) + GST owner of such asset and can Consequently, daughters
25,940-33,557 ₹5,000 to ₹15,000
only hold the asset in fiduciary also possess equal coparcenary
capacity for the benefit of the rights within their grandfa-
25,940-29,349 Up to 0.25% legal heirs, either determined ASK MINT a Karta also a part of his ther’s HUF.
25,940-34,296 0.5% (Min. ₹1,500 and Max. ₹15,000) by way of a will or as per rele- m E S TAT E P L A N N I N G Hindu Undivided Family However, it is also essential
vant succession laws. (HUF)? Does it make any to acknowledge that the law is
26,035-30,457 0.25% to 0.50% (Min. ₹1,500 and Max. ₹40,000) In essence, a nominee is an difference if the grandchil- not entirely clear regarding
26,035-30,762 Nil individual appointed by the ‘either or survivor’ or ‘former dren are the offsprings of whether the children of
asset owner to hold the asset in or survivor’ and ‘anyone or his married daughters (and daughters would have rights in
26,035-27,964 Completely waived till 31.12.2023 good stead as an interim survivor’. not of sons), and if they are their maternal grandfather’s
26,035-28,951 Up to 0.25% of the loan amount arrangement, until duly suc- In the event of death of one female offspring? HUF. Consequently, it may be
ceeded by the legal heirs and at of the fixed deposit/ bank —Name withheld on request prudent to seek appropriate
26,035-29,150 Nil up to 31.03.2024 no point has absolute title to account holder, the proceeds legal guidance when dealing
26,035-27,768 For salaried/self-employed professionals: Up to 0.50% or ₹3,000 (higher) + taxes # the asset. Legal heirs are the will be transferred basis the In accordance with the with cases involving such situ-
rightful economic owner of underlying mode of operation, Hindu law, a joint Hindu ations.
26,130-31,478 100% waiver from 01.09.2023 to 31.12.2023 under Retail Loan Festival the assets of the deceased. A keeping in perspective that family consists of all persons Keshav Singhania is private
26,225-28,258 0.35% of the loan amount (Min. ₹2,000 and Max. ₹10,000) + GST nominee’s right will be on a principles of nomination can lineally descended from a client leader, Singhania & Co.
lower pedestal vis-à-vis the never override the laws of suc- common ancestor and LLP, and Roopal Bajaj is lead-
26,511-29,810 0.25%
rights of a beneficiary under a cession, i.e. surviving holder include their wives and er-funds, Singhania & Co.
26,511-28,160 Salaried- 0.50%, Self-employed- 1%^ will and a will would prevail merely acts as the custodian of unmarried daughters. These
over nomination. the assets until the legal heirs family members can further Do you have a personal
Fixed deposits and bank undertake the needful. The be categorized as members finance query? Send in your
accounts can be held singly or same has also been upheld by and coparceners. queries at
jointly. Joint holding (in case various Indian courts. The concept of Hindu mintmoney@livemint.com
and get them answered by
of two or more than two hold- coparcenary, however, is
Source: MyMoneyMantra.com industry experts.
ers) is functional via ‘jointly’ or Are the grandchildren of much narrower. It comprises
12 MOnday, 2 OCtOber 2023
Chennai VIEWS LIVEMINT.COM

OUR VIEW GUEST VIEW

MINT

Gandhi’s timeless values inspire

young compassionate leaders
A new generation has been inspired to work passionately for compassion, equality and progress

age groups. Gandhiji and Greta both
started alone and spoke a language of
humanity that resonated with people
and won their hearts.
Another young woman, Malala
Yousafzai became an international
symbol of the fight for girls’ education
after she was shot at the age of 15 for
opposing Taliban restrictions on female
SWATI PIRAMAL education in her home country of Paki-
is vice chairperson of Piramal Group. stan. Over 2 million people signed a
right-to-education petition, and Paki-
stan’s National Assembly ratified the
country’s first Right to Free and Com-
ship development. The Teach for India
Fellowship, for example, encourages
college students, professionals and
entrepreneurs with leadership qualities
to teach underprivileged children in
under-resourced government schools
or low-income private schools in cities.
The Young India Fellowship by Ashoka
University focuses on fellows engaged
in a liberal art curriculum, training
them to become socially committed
agents of change. The Gandhi Fellow-
ship by the Piramal Foundation focuses
on awakening the nation builder in

The EU’s CBAM calls for

pulsory Education Bill. Malala went on every young individual. Inspired by
to become the youngest Nobel Peace Gandhiji’s advice, “Be the change you

R
esponsibility will mellow and Prize laureate in 2014. She continues to want to see in the world,” the pro-
sober the youth and prepare them fight for her beliefs, reminding us of yet gramme helps young people become
for the burden they must dis- another message of Gandhiji: “If we self-aware, connect with the country’s

a well-hedged response charge,” said Mahatma Gandhi. He

firmly believed in youth as torchbearers
of justice, compassion and progress
through value-based ‘sewa’ (service) as
want to reach real peace in this world,
we should start educating children.”
Garvita Gulhati is a Gen Z water
activist in India who founded Why
grassroots, understand issues first-hand
and implement innovative solutions.
Processes and activities such as commu-
nity immersion, meditation, leadership
a way of life. It is through the lens of the Waste? to change people’s attitudes boot-camps and field interventions help
youth that we can see early indicators towards water by promoting simple youth acquire an ability to adapt, be
Indian exports will be burdened by the EU’s carbon levy, but it does have a clear principle of change across generations. As tech- solutions. She began working with res- agile, collaborate and influence out-
savvy members of Gen-Z become aware taurants to prevent the waste of water comes without authority. In education,
backing it that requires us to be realistic and hedge our trade bets by decarbonizing output of global crises, they are driving a shift left behind in glasses. Her #GlassHalf- fellows partner with school principals as
in perspectives. Gradually, they are not Full campaign movement reached over well as high-ranking education officials
only becoming an inspiration to their 500,000 restaurants and 6 million peo- much older than themselves and with
own generation, but also emerging as ple, and prevented over 10 million litres more experience, inspiring them to act.

M
ahatma Gandhi’s observation
that the world has enough for
everyone’s needs but not
greed is oft-cited in the con-
text of our climate crisis. But
no less relevant is his advice
that we must not judge others by their worst
actions and ourselves by our best principles.
Evenness matters. With the EU’s Carbon Bor-
der Adjustment Mechanism (CBAM) in effect
from 1 October, India’s exports of carbon-laden
products to Europe—mainly aluminium and
iron-and-steel—have been burdened with
green reporting rules whose red-tape of data-
fields to be filled is so thick, it looks like a trade
barrier in itself. Annual shipments of over $8
billion are exposed to this strap-down already,
but a harsher blow might be dealt three years
hence, should the CBAM’s carbon levy kick in.
This action by the EU looks likely to hurt our
economic interests, which explains why the
government might protest it as an unfair tariff
at the World Trade Organization (WTO), the
revival of whose dispute-settling body the G20
of its carbon compression would be lost if mentors to their older counterparts. of water from being wasted. This resonates with Gandhiji’s remarka-
cheaper carbon-laden imports took the place As we grapple with challenges of While there are such young torch- ble ability to collaborate and take along
climate change, social issues and so on, bearers leading change in society, they people from diverse groups to deliver
of its internal production. If its producers must there are early but promising signs of are few. The world needs many more change. With a humble beginning of
bear the cost of going carbon neutral by 2050, Gandhian values being adopted and put Gen-Z change-makers driven by a sense just 10 fellows in 2008, this fellowship
so should imports. Else, demand would be met in practice by the youth today in their of purpose and an aspiration to create a now has an alumni count of around
by dirty industries outside the EU, achieving efforts to negotiate a rapidly changing healthier and just environment for all. 3,000 passionate youth, working at
little. The emissions of imports will have to be world and live meaningful lives that It is only through a larger collective social impact in various spheres.
help create a sustainable future. that a movement can begin to bring Gandhiji’s ideals, it seems, are not
paid for, it insists, for parity with EU-based Climate change, for instance, is about desired social changes at scale. confined to the annals of history. They
industries buying carbon credits to offset their impacting human lives like never Young people possess a wide range of thrive in the hearts and actions of a new
pollution. As carbon pricing is a useful device before. Greta Thunberg, a 20-year-old skills, are aware of relevant issues that generation of young leaders. As the
against climate change, the CBAM does have a Swedish activist, is famous around the affect them and the world, but wonder youth chart their path forward, these
clear principle behind it. How it will work out in world for her emphasis on sustainability how to go about making an impact. leaders serve as a reminder that
and unprecedented contribution in Creating platforms for such youth to Gandhiji’s timeless values remain
practice, though, is another matter. The EU’s creating awareness of the climate crisis. channel their motivations and drive highly effective as catalysts for change,
Emissions Trading System (ETS), its cap-and- Just as citizens of colonized India kept transformation is therefore critical. equipping a generation of informed and
trade mechanism, has revealed flaws that cast joining Gandhiji’s Dandi March in 1930, Social fellowship programmes in the empowered citizens to forge a future
doubts on its efficacy. Scandals have arisen over day after day, Greta’s voice for a green country are serving this need, offering marked by compassion, equality and
fudged offsets, suggesting that the ETS can be future went on garnering support on transformative experiences for self- progress. It feels as if a Gandhi is taking
social media across the globe and across awareness, societal change and leader- birth in every youth.
gamed. Moreover, a CBAM levy can be ques-
tioned if sought to be imposed post-2026 at the
ETS rate. At around €85 per tonne of carbon,
this figure reflects only the EU’s state of
demand and supply. China’s price is roughly a
tenth of that and India’s net-zero goal of 2070
and low cost base overall both suggest it would www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Tuesday, October 1, 2013 Vol.7 No.234 `3.00 in Delhi­NCR/`4.00 outside Delhi­NCR 24 PAGES

recently agreed upon. But, while anything that be even cheaper here. So what the EU claims as US nears first
INTERNATIONAL:
shutdown in 17 years >2
PHARMA: Supreme Court asks why
govt approved 162 clinical trials >3

distorts trade flows must duly be put to scru-
an equalizer could also act as an import barri- CONTENT PARTNER
CORPORATE: Top five IT firms may post
strong revenue growth in Sep quarter >5
REGULATION: SFIO report says
deposit­taking firms exploiting laws >4

tiny, we must take Gandhi’s cue and also weigh cade in the shape of punitively high tariffs.
SENSEX 19,379.77 æ 347.50 NIFTY 5,735.30 æ 97.90 DOLLAR `62.62 Æ `0.12 EURO `84.75 Æ `0.07 GOLD `30,225 æ `240 OIL $107.89 æ $0.74

ECONOMIC DATA
APPLE IS WORLD’S MOST Lalu Prasad’s QUICK EDIT

Glimmers of VALUABLE BRAND exit to leave Climate

the principles cited by the EU. It will give us a To be sure, a WTO wrangle over CBAM could hope on BoP, For the first itme since Interbrand, a corporate identity and brand consultancy,
a vacuum in
Bihar politics
B Y A NUJA & L IZ M ATHEW
·························
NEW DELHI
countdown
T he latest report by the
Intergovernmental
Panel on Climate Change
has put out a blunt mes-
sage: the world is perhaps

realistic view of future trade dynamics and help give New Delhi a bargaining chip for its ongoing fiscal fronts A
began compiling its Best Global Brands survey, Coca-Cola is not the most special court of the Cen- three decades away from
valuable brand, having been overtaken by Apple. See Page 4 tral Bureau of Investiga- catastrophe. The panel
tion (CBI) on Monday found says the world should not
MOST VALUABLE BRANDS

In a gentle way, you

Analysts say that while
widening fiscal, current
account deficits leave
former Bihar chief minister emit more than 1,445 bil-
Rank Rank Lalu Prasad and 44 others lion tonnes of carbon diox-
2012 2013 Brands guilty in a case involving the ide if it has to have a good
CAD at 3.7% of GDP and the fis- embezzlement of around chance of keeping global
cal deficit at 4.8% of GDP. 2 1  Apple `37 crore from the state gov- warming below 2 degrees
Economists expect CAD to ernment treasury meant for celsius. The current emis-

exporters hedge their risk of green barriers. trade talks with the EU. Even so, it would be
narrow in the coming quarters the purchase of fodder in the sion rate is around 50 bil-
outlook vulnerable, it with exports picking up on the 4 2  Google 1990s. lion tonnes a year. Work
back of a global recovery and a The ruling came as a body out the numbers.
is unlikely to worsen depreciating rupee and curbs on blow to Prasad, a former rail- Climate change sceptics
imports showing their effect. In- 1 3  Coca-Cola way minister, and could well may argue that the panel is

can shake the world.

B Y R EMYA N AIR & deed, India’s merchandise ex- spell the end to a colourful po- being unnecessarily glum.
A SIT R ANJAN M ISHRA ports grew at double digits in Au- litical career that was seeming- But, even if we consider
························· gust at 13% to $26.1 billion for
3 4  IBM
ly set for a resurrection, with massive climate change to
NEW DELHI the second consecutive month. his emasculated Rashtriya Ja- be an outlier, it is prudent

To the extent that today’s climate imperative best to bet on a global policy path that balances E conomic data released on
Monday showed that two
key macro economic pa-
rameters, the fiscal deficit and
the current account deficit
(CAD) on the balance of pay-
ments, further deteriorated in
the first few months of the cur-
rent financial year.
“The first quarter was the
worst quarter as far as the exter-
5 5 Microsoft nata Dal (RJD) party starting to
draw support in Bihar once
to start thinking hard about
it. The world increasingly
nal sector is concerned. The again in the run-up to next appreciates the potency of
coming quarters would see the 6 6 General Electric year’s general election. black swans—low proba-
deficit narrowing as gold imports Prasad, 65, became the sec- bility events that have a
reduce and exports pick up,” ond casualty of a Supreme very high impact. Climate
said Anubhuti Sahay, senior 7 7 McDonald’s Court order in July that imme- change is one.
economist at Standard Char- diately disqualifies Parliamen- There is a view that the
tered Bank. “Both merchandise tarians and state legislators frontlines of change will in-

justifies market intervention, we can expect trade with the planet’s interests. While the
Analysts said that while this
does leave the country’s eco-
nomic outlook vulnerable, it is
and service exports should pick 9 8  Samsung convicted by a court. Earlier this volve individuals, firms
up as the US and Europe show month, Rajya Sabha member and cities. But it is hard to
signs of recovery.” Rasheed Masood was convicted see how a global public
8 9
®

unlikely to worsen any further—
implicitly suggesting that the
worst may be over.
However, they added that any
recovery is presaged on a revival
in the investment cycle, which in
 Intel
Soumya Kanti Ghosh, chief by a special CBI court of nomi- good such as temperature
economic adviser at State Bank nating undeserving candidates stability can be ensured
of India, said he expects CAD to
fall to a nine quarter low of
10 10 Toyota to medical college seats. without agreements be-
tween governments.
Source: Interbrand report
1.5%-1.7% of GDP in the second TURN TO PAGE 8®
PARAS JAIN/MINT
quarter (July-September).

pro-planet riders to increasingly be placed on West’s lopsided emissions, for which pledged
turn is linked to the easing of in-
terest rates.
India’s CAD widened sharply
to 4.9% of gross domestic prod-
uct (GDP) in the first quarter of
the current fiscal from 4% of
GDP in the year-ago period, sig-
nalling the country’s vulnerabili-
MA HATMA GA N D HI
“Admitting a possible spike in
the current account deficit in the
third quarter of FY14 (October-
December), we still believe 2013- NSEL crisis: SERVICES SHIFT around 250,000 turbines, loco-
motives, medical equipment
14 current account deficit at be-
low $70 billion (3.8% of GDP), on
the back of robust invisible re-
EOW files Meet the 121-year-old and other machines installed
globally, and generating tera-
bytes of data that can be ana-
ceipts in the current fiscal,” he
FIR, begins software start-up lyzed to offer niche services for

free trade under the same argument. What New transfers have been slow, remain a sore point,
ty to external sector shocks, ac- added. improving efficiency and iden-

cording to the Reserve Bank of
India (RBI).
Separate data released by the
government showed that India’s
fiscal deficit in the first five
months (April-August) of the fi-
nancial year crossed 74.6% of the
annual projection, compared
In the April-June quarter, the
rise in CAD—the sum of the bal-
ance of trade and invisibles such
as remittances and software
earnings—to $21.8 billion from
$16.9 billion was mainly on ac-
count of a rise in the trade defi-
cit, balance of payments data re-
searches
tifying the next big opportuni-
ANIRUDDHA CHOWDHURY/MINT ties for customers.
B Y P ANKAJ M ISHRA “We want to deliver software
pankaj.m@livemint.com services across all our prod-
B Y K HUSHBOO N ARAYAN, ························· ucts at the Silicon Valley
BANGALORE speed,” William Ruh, vice-
A MI S HAH &
A NIRUDH L ASKAR
························· I f the world’s biggest soft-
ware services firms, includ-
president and head of GE’s
software and analytics busi-

Delhi sees as a distortive burden on EU imports the pragmatic way ahead for Indian exporters
with 65.7% a year ago, as revenue
failed to keep pace with expendi-
ture.
Finance minister P.
Chidambaram has promised
that the government will not
cross the so-called ‘red line’ on
current account and fiscal deficit
in the current financial year. The
leased by RBI showed. Trade
deficit increased to $50.5 billion
from $48.3 billion a year ago as
exports contracted and imports
rose.
While merchandise exports
declined by 1.5% to $73.9 billion,
imports rose 4.7% to $124.4 bil-
lion, mainly on account of a
MUMBAI
P olice searched at least 52 lo-
cations across India, includ-
ing the Mumbai homes of Jig-
nesh Shah, chairman and man-
aging director of Financial
Technologies (India) Ltd
(FTIL), and Joseph Massey, chief
executive officer and managing
ing International Business Ma- ness, said in an exclusive inter-
chines Corp. (IBM) and its In-
dian rivals, are only looking at
each other as competition,
view. “We are not going to sell
software. If you look at Google,
they have software but they
they may have to look again— sell advertising, Amazon too
and not because of a new start- sells retail. What we are going
up in Silicon Valley with a dis- to do is sell services wrapped
ruptive algorithm, but a cus- around our machines that
tomer they have worked with make them more efficient.”

from countries that did not pollute the world’s would be to double down on what they must do
finance minister plans to limit steep rise in gold imports in April
and May. Gold imports amount-
ed to $7.3 billion in the April-
June quarter. Pressure on servic-
es exports continued with
growth slowing to 2.1% in the
TURN TO PAGE 2®
director of MCX Stock Exchange
Ltd (MCX-SX), on Monday in
connection with the payments
crisis at National Spot Ex-
change Ltd (NSEL), an official at
the economic offences wing
(EOW) of the Mumbai Police
said. The dragnet of the simulta-
neous search also took in the
for decades.
General Electric Co. (GE),
one of the oldest and among
the largest customers for In-
dia’s $108 billion information
technology (IT) industry, is
now selling next-generation
software platforms for airlines
and power firms in a shift that
Branching out: William Ruh, head
of GE’s software and analytics
business.
Ruh is a relative newbie at
GE; he moved from Cisco Sys-
tems Inc. in 2011. He wasn’t
convinced GE was the place for
him till he met chairman and
chief executive officer Jeff Im-
melt and learnt about the com-
pany’s plans to combine its big
industrial machines with data

air, the EU projects as a field-leveller to prevent anyway, decarbonize their output, even as we
ALSO SEE
>Mark To Market: Has the balance of
payments problem bottomed out?
NOTE TO READERS
The Media Marketing Initiatives on
Pages 20 and 21 are the equivalent
FTIL’s Mumbai offices, the offi- underscores how consumers of
cial said. software are increasingly
Police also raided the resi- evolving into the IT world’s
>P14 dence of NSEL’s former MD and biggest innovators.
CEO Anjani Sinha. NSEL is pro- And so, the next-generation
TURN TO PAGE 24®
software services firm is not
taking shape inside labs of one
of the IT world’s biggest
names, or in a garage in Silicon
ALSO SEE
projects, software develop-
ment and software mainte-
nance work will still be carried
out by Tata Consultancy Serv-
ices Ltd (TCS), IBM, Wipro Ltd
and other such companies.
Its focus is on software built
around its products that helps
its customers create new reve-
and connectivity.
“I remember sitting there
and Jeff asking me at the end of
the interview—are you going
to take this up, I plan to invest
$1 billion in four years? And
that’s what changed my mind,”
said Ruh.
Already, by combining the

‘carbon leakage.’ An early mover on capping pry open a principle-driven debate on the
of paid­for advertisements, and no Valley, but inside a 121-year- nue streams and also become latest tech solutions such as
Mint journalists were involved in old company that makes every- more efficient. And key to this big data with almost every-
>In The Money: Is NSEL a case of a
creating these. Readers would do principal­agency problem? >P16 thing from aircraft engines to is Big Data and analytics, two thing it sells, GE is offering
Mint is also available for R7 with well to treat them as advertisements. >Former employee alleges false trades at diesel locomotives. of today’s buzz words in the
Hindustan Times in Delhi-NCR only FTIL unit >P24 By GE’s logic, back office technology business. GE has TURN TO PAGE 3®

industrial exhaust, the EU argues that the point impact of carbon prices on world trade.

MY VIEW | MoDeRN tiMes

In memory of Gandhi’s encounters with bio-hacking

else could people do other than helplessly
MANU JOSEPH adore him as a spiritual being? But now, we
can get a closer glimpse of his personality
because our present is filled with ascetics
who do extreme things to their bodies and
are not great souls.
for hours because sitting is decadence, and Siddhartha, on his way to becoming the was quite a spectacle. He walked in a shroud
hold pleasure inferior to pain. Like Gandhi, Buddha, interviews the bio-hackers of his of numerous austere monks. Many people
they are able to convert themselves into labs time, who were known as sages. One of them tried to imitate him, as later humans would
because they have a capacity to endure tells him, “By the path of pain they (the imitate Gandhi. What the imitators did not
ordeals, even enjoy some of it. If they had sages) eventually attain happiness—pain , grasp was that pain is a talent; those who
taken this capacity for pain to fight for a they say, is the root of merit.” In the pursuit seek it are made that way, and they are very

H
e was the kind of man who could dis-
suade people from calling him
“Mahatma” without making them
laugh. What created an added aura around
him was that he could do extreme things to
his body, some of which were not called
“intermittent fasting” then. More than once,
Mohandas Gandhi fasted for 21 days, surviv-
The present clarifies the past. And what it
clarifies is that Gandhi was a bio-hacker. To
the extent it was technologically possible in
his time, he did things to his body, listened
and tweaked, and went on experimenting
with himself. He did not perform “experi-
ments with truth,” for the whole point of an
experiment is that one does not know the
cause in another time, or even today, they of pain, young Siddhartha, “… plucked out few. They rate it higher than pleasure. If you
would be called saints. Just my hair and beard, and take out the rumour of philosophy from this,
like hallucinators of today kept the practice up. I it would merely be a mental state.
were celebrated as seers in Some people always stood, refusing to sit Gandhi’s son Harilal took fine digs at his
another time. down. I was a squatter on father’s asceticism. In an article by the Swed-
Across time, cults have a capacity my heels, upon a bed of ish writer Zac O’Yeah, I found this comment
sprang from men who thorns…The dirt of many by Harilal: “I cannot believe that a salt-free
pushed their bodies to the
for ordeals season gathered on my diet or abstinence from ghee or milk indi-

is a journalist, novelist, and the

ing only on water and perhaps a bit of salt
and lime. Once, he almost died. “Govern-
creator of the Netflix series,
‘Decoupled’
ment bulletins prepared Indians for news of
his death,” Time magazine reported. There
was a sacrificial quality to his fasts. But then
he probably liked fasts. Some of them were
surely ordeals, but he probably liked ordeals
too. He brought to his politics something
that came easily to him but which others
found daunting.
In his time, Gandhi was a puzzling person
and he belonged to a country where puz-
zling people who went without food were
allotted noble reasons and consecrated as
saints. Usually, such saints don’t complain,
but this man denied he was one. Yet, what
truth. What he did was use his capacity for
ordeals to toy with his own body. It was not
always pleasant. As is the fate of all bio-hack-
ers, Gandhi suffered from diet-induced
gloom, headaches and fevers.
He was in pursuit of the perfect diet; he
discovered the power of uncooked vegeta-
bles long before salads grew famous, he was
an early prophet of soya beans; he drank goat
milk, went to places with a goat. He practised
sexual abstinence not by fleeing women, but
by testing his resolve in close proximity.
Silicon Valley today has millionaires who
don’t look anything like Gandhi, but they
fast for days, monitor through devices every
small thing food does to their bodies, stand
limits. In Gem in the Lotus,
a captivating book about
and need to body… I lived even on my
own excrements. To such
cates strength of character and morality…”
Of millions of Indians who undertake long
“the seeding of Indian civi-
lisation,” Abraham Eraly
understand extremes did I go… as to live
on filth for food…”
fasts, Harilal wrote, “…barring a few excep-
tions, they possess no sterling virtues.”
talks about the time when their bodies Despite all this, he The ordinariness of ascetics is another
Siddhartha, the son of a doesn’t attain ‘enlighten- thing the present clarifies. Silicon Valley’s
tribal chieftain and one of through trauma ment,’ something people fitness bros, for instance, suffer for a very
the best documented down the eras have pre- material reason—to extend their youth by
ancient public figures, tended to understand. In decades.
gives in to a long nagging desire to abandon pursuit of this phenomenon, Siddhartha And so it has been for centuries. Some peo-
the good life. He goes to live in a forest. His begins to starve. All through the ordeal, he ple have a capacity for ordeals and a need to
baffled father sends a priest after the boy to documents the reactions on his body. understand their own bodies through
persuade him back. “Religion is not wrought That is very Gandhi, very Silicon Valley. trauma; often, they are misunderstood and
out only in the forests,” the priest tells the Siddhartha starves so much that, he says, overestimated; then millions who ail from
boy, “The salvation of ascetics can be accom- when he presses his navel, he feels his spine. normalcy attempt to ape them and suffer
plished even in a city.” It didn’t work. When he eventually became the Buddha, he without deriving any pleasure from it.
LIVEMINT.COM VIEWS MOndAy, 2 OCtOber 2023
ChennAi 13

guEsT VIEW M I N T C U R AT O R

A selective OTT ban will impose Avoid helicopter parenting in

the age of digital surveillance
too heavy a cost on the country Children may need more independence than parents tend to allow

Such a mechanism proposed by TRAI will be hard to implement and potentially violative of Constitutional rights as well

ISTOCKPHOTO

LISA JARVIS
is a Bloomberg Opinion columnist covering
biotech, health care and the pharmaceutical
industry.
KAZIM RIZVI
is founding director of The Dialogue.

L
ast spring, my tween was begging for
more freedom, starting with being
allowed to walk home from school

T
he Telecom Regulatory Authority of
India’s (TRAI) proposal for a selective
banning mechanism for over-the-top
(OTT) platforms has ignited discus-
sions on its technical and legal practi-
cality. OTT platforms can restrict OTT
applications for the general public if needed. How-
ever, implementing localized bans poses signifi-
cant challenges. OTT platforms must ascertain the
user’s location, usually through GPS or cell ID data.
Yet, not all devices have GPS, and obtaining user
consent for location data access raises privacy
concerns. Mandating GPS data access, possibly
through government directives, could jeopardize
individuals’ privacy rights and violate the propor-
tionality principle outlined by the Judiciary in the
Puttaswamy judgement. Cell ID data, essential for
location tracking, is primarily held by network
operators and protected from app providers for
privacy reasons. OTT service providers can also
use the IP addresses of users to block access, but
this requires pinpointing the user’s precise IP
address in a given locality. Users can easily mask
their IP addresses using tools like VPNs and proxy
servers. This situation might allow malicious
actors to successfully bypass restrictions, while
legitimate users would inadvertently bear the con-
sequences of these measures.
Instead of OTT platforms implementing select-
ive bans, telecom service providers (TSPs) can
attempt selective bans on OTT applications by
targeting the IP addresses associated with OTT
service provider servers. However, this approach
comes with challenges. IP addresses serve as the
‘home addresses’ of OTT services, and just as indi-
viduals safeguard their home addresses for safety
reasons, OTT service providers are cautious about
sharing their IP addresses with TSPs. They fear
that sharing could expose them to cyberattacks or
unauthorized access. Even if OTT providers share
their IP addresses, they often change dynamically,
especially since most OTT platforms are hosted on
cloud servers. The dynamic nature of IP addresses
means that several other OTT services may be
hosted on the same IP address, leading to the over-
blocking of OTT services.
Disproportionate ramifications for fundamental
rights: OTT services have seamlessly integrated
into daily routines, serving as communication
channels and platforms for various other crucial
activities, including small business operations.
Restricting access to OTT platforms can infringe
fundamental rights, specifically those under
Articles 19(1)(a) and 19(1)(g) of the Constitution.
The Supreme Court, in Anuradha Bhasin vs.
Union of India (2020), affirmed that “the right to
freedom of speech, expression, and online trade or
business under Article 19(1)(a) and 19(1)(g) are con-
stitutionally protected,” even when these rights
are exercised over the internet. Limiting access to
critical OTT services would contravene this judge-
ment, especially given the lack of data to prove that
selective banning is the most effective approach
for countering illegal and harmful online content
or upholding public order. While selective bans
might seem less severe than complete shutdowns,
considering the ubiquity of OTT platforms, such a
ban would severely affect millions. Considering
the proportionality principle, even a marginally
lenient measure isn’t justified constitutionally,
unless it’s the least restrictive action.
Impact on net neutrality and end-to-end encryp-
tion: Net neutrality comprises three principles:
end-to-end connectivity, best efforts in traffic
delivery and permission-free innovation. It means
keeping the internet open, secure and accessible to
promote innovation in ideas, commerce, culture
and expression worldwide. Equal access to all web-
sites and platforms is crucial. Selective bans violate
net neutrality, potentially denying access to critical
OTT platforms, undermining fair competition, and
jeopardizing users’ fundamental rights
Selective banning can also endanger secure
encrypted communication services that people
rely on to communicate privately, especially amid
crisis. Any prohibition on encrypted services
would be to the detriment of millions of people in
India. This would affect online safety and the right
to privacy because any instance of selectively ban-
ning communication services with end-to-end
encryption would deprive people of confidential
communication channels that preclude surveil-
lance, including by the service provider.
Note that public servants, security and law
enforcement officials also use end-to-end
encrypted communication platforms and banning
these would undercut law-and-order while also
rendering the state machinery vulnerable to for-
eign espionage. A case at hand is the Greek Water-
gate Scandal, where unknown actors tapped the
phones of the political and military elite through a
vulnerability (a backdoor) created for law enforce-
ment agencies.
Existing laws can be relied on to regulate online
content and OTT services: Section 69-A of India’s
IT Act, coupled with ‘Blocking Rule,’ offers a
framework to block online content or entire OTT
platforms if needed to safeguard India’s sover-
eignty, national security and public order. Simi-
larly, Section 79 of the IT Act, in conjunction with
the IT Rules of 2021, authorizes the government to
block online content under specific conditions.
These existing provisions already allow for the
regulation of online content and OTT services
without excessively limiting public access.
In an era where online communication is as
natural as breathing, OTT platforms are more than
just technology; they are lifelines connecting us to
the world. Not only would a selective ban on these
platforms be technically challenging, but also
replete with legal and constitutional complexities.
For the average Indian, this isn’t just about access
to an app, but about preserving the essence of our
digitally interwoven lives. Selectively banning
OTT service is not just infeasible, it’s a step away
from the progressive, connected world we envi-
sion for ourselves and our country.
alone. The walk involves crossing a few
busy streets. I was hesitant; she doesn’t
have a phone, so she had no way to contact
me if something went wrong. But we prac-
ticed a few times (with me trailing her) to be
sure she was confident of the route and
talked about what she would do in various
scenarios. Then, we let her do something
that some parents in our uber-connected
era might find truly wild: roam free.
The chance of something happening to
her is vanishingly low, but it still took a few
days to shed my anxiety. I reminded myself
that building her independence requires
mutual trust—and accepting some risk.
And failing to give kids sufficient inde-
pendence has risks, too. That’s a recurring
theme of Growing Up in Public: Coming of
Age in a Digital World by Devorah Heitner.
There are downsides to constantly tracking
our kids, whether that’s using Find My
Phone to keep tabs on their locations or fol-
lowing their performance at school
through apps. Even monitoring teens’ texts
and perusing their social media accounts
can backfire. “The culture of surveillance
is shaping our children’s sense of identity
and independence—and impacting our
mental health, our family’s connectedness,
and our ability to self-define in adulthood,”
Heitner writes. “This impact starts as early
as kindergarten.” This teaches our kids that
it’s normal to be constantly surveilled, she
argues. Living in this digital panopticon
can increase their anxiety.
And hard though it may be to admit,
parental vigilance can’t always keep kids
safe. Constant supervision just gives us the
illusion of control, it doesn’t prevent ques-
tionable decisions or bad grades. What’s
needed is a shift from “monitoring” to
“mentoring” so that teens learn to make
their own wise choices. One of parenting’s
challenges is walking that line.
Heitner’s perspective adds dimension to
the conversation about the current teen
mental health crisis. Whenever I’ve written
about the alarming decline in the mental
health of tweens and teens, I inevitably get
a flurry of emails telling me that the source
of the problem is clear: It’s all that TikTok
and texting. The solution, therefore, is sim-
ple: Parents just need to be more on top of
what’s going on in their teens’ digital lives
—less social media, more boundaries, more
monitoring. But that instinct to keep kids
safe through constant oversight might not
always be the right one. At times, it could
even do more harm than good.
Digital tools of surveillance get overused
because they exist ISTOCKPHOTO
Let me be clear: I’m a proponent of put-
ting off phones and social media for as long
as possible—and of forcing social media
companies to make their products safer for
younger users. Kids should not have free
rein with TikTok and Snapchat, nor should
parents be unaware of their tweens’ and
teens’ inner lives. Social media certainly
plays a role in kids’ deteriorating emotional
state.
But so, perhaps, do our well-meaning
attempts to cocoon kids from harm. “When
we say we’re keeping an eye on our kids
because they ‘make bad choices,’ we are
robbing them of opportunities to develop
good judgement and boundaries—and to
think for themselves,” Heitner writes.
As kids first dabble in social media, it
makes sense to provide structure, rules and
some oversight, and Heitner and others
certainly have advice on how to do that. But
ideally, they earn independence over time
through mutual trust.
In the process, they will undoubtedly
experience uncomfortable social situations
and even make mistakes. But that, too, is
part of growing up. As clinical psychologist
Lisa Damour drives home in her recent
book, The Emotional Lives of Teenagers:
Raising Connected, Capable, and Compas-
sionate Adolescents, some struggle is nor-
mal, and learning to cope with adversity is
critical to kids’ success later in life.
As Damour writes, “Mental health is not
about feeling good. Distress comes with
being human, and it certainly comes with
a teenager dealing with the challenges and
disappointments that are part of growing
up.” Parents, with good intent, too often
succumb to the urge to prevent or fix a
problem rather than help kids learn how
to manage their own emotions in a truly
healthy way.
Giving kids space often defies our paren-
tal instincts—particularly our sense that
more information about our kids’ inner
lives is always better. But as they grow up,
constantly supervising them is not a good
solution either.
My kid has now walked home from
school dozens of times. This fall, she asked
to roam even further… and got her first
Apple Watch, so she can text us if she needs
to. Even though I trust her, the urge to con-
stantly check in is strong. But so is my hope
that it will fade. ©BLOOMBERG

guEsT VIEW

The time is right for another global Gandhian moment

represents for us the grammar of politics
RAMIN JAHANBEGLOO that we have already forgotten. If Gandhi
had only left us an account of his life, as he
did in his famous autobiography The Story
of My Experiments with Truth, or if he had
simply retreated to his ashram in Ahmeda-
Gandhian Moment in politics as an excep-
tional phenomenon, an act of dissent and
resistance against the idea of absolute
power, one needs to know how to preserve
the passion of politics, while deepening and
enlarging the responsibility of the political.
leads him to the idea of “shared sovereignty”
based on the ethics of interconnectedness
and togetherness. That is to say, the Gan-
dhian approach to the idea of a dialogical
community is based on his theoretical and
practical efforts to find a balance between
sphere. In this respect, the contribution of
Mahatma Gandhi to the creation and culti-
vation of a public culture of citizenship
guarantees everyone the right to an opinion
and action as an ethical commitment to
norms of transparency, negotiation and

T
he 2nd of October, celebrated every
year in India and around the world as
the birth anniversary of Mohandas
Karamchand Gandhi, is a great opportunity
for Indians and citizens of the world who
are not suffering from the ‘success syn-
drome’ to review the relevance of the ideas
and ideals of the Mahatma. I sometimes
bad, without worrying much about the
future of the Indian subcontinent and the
world, he would probably have lived a hun-
dred years and been a page of Indian his-
tory, like Patel, Nehru and Azad.
However, as things turned out, Gandhi
was read, appreciated and practised by non-
Indians like Martin Luther King Jr., Nelson
At any rate, the core of Gandhi’s theory of epistemic humility (as an antipode of fanati- mutual respect.
politics is to show that the cism) and a need for trans- Contrary to those technocrats who claim
true subject of the political parent political action. that Gandhi was a traditionalist because he
is the citizen, and not the The Mahatma Clearly, the Gandhian con- preferred to walk rather than be carried
state. cept of “common good” is around by a Mercedes, it should be noted
In other words, in Gan- represents for formulated in the idea of that his critique of modern civilization did
dhi’s mind, the citizen self-realization and self- not mean a return to the past. It was actually
always stands higher than
us a meaningful regulation of non-violent a move forward in history and human moral

is director at Mahatma Gandhi

Centre for Nonviolence and
Peace Studies at Jindal Global
University
amuse myself by bringing Mahatma Gandhi
back to life, in my mind, and showing him
the political posters and ideological spaces
where his name and portrait are used in
India and around the world. In my imagi-
nary encounters with Gandhi, he is always
perturbed and perplexed by the incredible
sights and sounds of politics of the 21st cen-
tury. Though I prefer not to be called a
‘Gandhian,’ I believe that Gandhi is a better
‘cosmic companion’ than most corporate
leaders and technocrats who are currently
ruling our world.
I think the reason why Mahatma Gandhi
can still make our lives seem ineffably
meaningful and empathetic is that he still
Mandela, the Dalai Lama, Vaclav Havel and
many others who tried to forge a peaceful
human community in a plural world by
challenging the conventional motto that
“might is right.”
The 1989 fall of the Berlin Wall and demo-
cratic changes in South Africa and Chile
sparked a more pragmatic and realistic sense
of non-violence in international relations. As
such, the developments that followed
begged an interrogation of the relevance of
the Gandhian philosophy of non-violence
and question of whether the transition from
a dictatorship to a more democratic system
could occur peacefully and without vio-
lence. Truly speaking, to understand the
the state. For Gandhi, it is
not the subject that is the
grammar of citizenship.
Interestingly, for Gan-
progress. Gandhi not only saw the need for
fundamental change in the modern world,
consequence of sover-
eignty, but it is sover-
politics that we dhi, being a member of a
non-violent community
but even recognized its inevitability.
That is why his ideas have inspired so
eignty which is subordi- have already denotes an ontological many moral leaders around the world. As we
nated to the political effort to capture the idea of can see from the experience of non-violence
action of the subject. forgotten political agency beyond a around the world in the past 100 years, the
The major shift in focus national state. Gandhian Moment is not a dream, but an
that appears in the Gan- Gandhi was very aware ethical vision of global responsibility and
dhian Moment of politics is from the ever- of the fact that the democratic spirit can be transformation, which achieves its full
lasting idea of deriving political decisions shaped and preserved only in the shadow of meaning and essence when it is made flesh
from the primacy of the political as well as a civic citizenship. He also knew well that in exemplary human actions like those of
that of the ethical. Therefore, the pursuit of democracy is not only a set of institutions, King, Mandela, Tutu and Mother Teresa.
moral life in politics takes Gandhi to an argu- but a vital ideal of living together that Today, once again, the time is right for the
ment in favour of the responsibility of citi- involves constant passionate, active and emergence of a global Gandhian Moment in
zens. Gandhi’s critique of modern politics responsible intervention in the public the 21st century.
14 MOnday, 2 OCtOber 2023
Chennai BUSINESS OF LIFE WORKPLACE LIVEMINT.COM

The growing appeal of Tae-Jin Park, MD

& CEO, Kia India

low-stress ‘lazy girl’ jobs ISTOCKPHOTO

This trending work-life

phrase is all about
prioritising well-being, MONDAY MOTIVATION
setting boundaries and
being mindful of how
you spend your time
Deep focus at
Reem Khokhar work is key, says
he discourse on work-life bal-
Tae-Jin Park
T ance has grown louder in the
past few years, especially after
the pandemic. Diverse work
styles are increasingly being
articulated through emerging terms like slow
productivity, the benefits of doing nothing,
quiet quitting, and, most recently, the “lazy girl”
Kia India’s CEO on what led him to
working in the automobile industry
job, a term coined by social media influencer
Gabrielle Judge that furthers the argument Shail Desai
against work consuming our lives.

G
The concept is not specific to one gender, rowing up, Tae-Jin Park travelled a lot with his family at
and it centres around decent pay, work flexibil- home in South Korea. During these journeys, he keenly
ity, and a healthy work-life balance. It does not observed cars around him and soon developed a fascina-
promote laziness, but rather, a middle path that tion for them. Over time, he learnt every little detail related to a
allows adequate financial earning and the ability car’s design, technology and performance. The constant disrup-
to be more than your job. Judge advocates “lazy tion that he observed in the world of automobiles inspired him
girl” jobs as a way of setting boundaries to join the industry with Kia Motors in 1987.
and being discerning about how you spend your “The role of technology in enhancing driving experience fasci-
time. While it is attractive to Generation Z, the nates me. It’s why I’ve dedicated all these years to this sector,
concept also has wider appeal. where we’ve pioneered various features that have resonated with
“The pandemic has impacted employee pri- our customers,” says 62-year-old Park, managing director and
orities and how they perceive work and life,” INSTAGRAM/GABRIELLE JUDGE CEO at Kia India.
says Upasana Raina, director, HR and market- the 49-year-old. “This concept is more about Dayal Kapoor, 51, started her lazy girl journey 20 After working across the world for Kia, Park took over his latest
ing communications, GI Group Holding India. improving one’s quality of life.” years ago, when flexible working was unortho- role in 2021. The challenges were different at the time as the sec-
“Many people seek a middle ground, aiming for Divekar spent two decades working with dox. She had a fast-paced career in advertising ond wave of the Covid-19 pandemic was easing off. But after
roles that offer a balance between work and per- reputed Indian banks, before advice from a sen- and market research, which she had intended to safely navigating the period, he got down to tackling the cluttered
sonal life with less pressure.” ior colleague led him to rethink his path. The get back to after having children, but something Indian automobile market, which is the third largest in the world
Surveys reflect these changing priorities. In colleague, after working for 40 years, regretted changed for her. She had family support to help today. “Before our India foray in 2019, we had carried out deep
human capital management solutions provider his lack of friends beyond work and not devel- with her children while she worked, but Kapoor market research on various segments with respect to design and
UKG’s study of global workers, 88% of Indian oping any non-professional skills, and advised wanted to spend time with them and work too. technology. We found that customers were willing to experiment
employees were willing to exchange their high- Divekar not to fall into the same rut. This was a Her boss was understanding, allowing Kapoor with unique drive experiences and pay a premium for it,” he says.
paying jobs for lower-paying ones to improve wake-up call for Divekar, who left his corporate to scale down her responsibilities and split her Park talks to Mint about meditation and the importance of
their well-being and their personal lives. job in 2013. Working independently has hours between office and home. She changed focussing on one task at a time.
But is it easy to make the switch? allowed him to explore his interests, including organizations over the years, but always had One major insight you worked on
For those seeking better work-life balance starting a real estate fund and a fashion brand, supportive managers who let her continue this “I’ve realized the with your mentor’s guidance?
there are diverse income streams which provide and learn from diverse contacts—opportunities flexible arrangement. When her children grew importance of The need to focus on the unmet
options, whether as consultants, freelancers, or he feels corporate roles restrict. older, Kapoor continued working this way to and unfelt needs of the customer.
within flexible roles at companies. Mumbai- Mumbai-based Meghna Datta, 44, also had a pursue interests in theatre and music. “I may spending time in Deep research on the market oppor-
based Vipasha Rathore’s prior roles in market- prolific banking career. Her last corporate job have compromised somewhat on career growth nature and the tunity and leveraging emerging
ing and communications included extensive was a vice-president at a bank in 2013, handling and salary. But this suited me best,” she says. need to follow trends for business growth is another
travel and little time super high net worth While Generation Z workers are willing to a routine.” area where I’ve tried to differentiate
for anything beyond individuals’ business. experiment, Kapoor attributes the wider appeal our approach in India.
work. When her son In a recent survey, 88% of Indians A decade ago, she of lazy girl jobs to people being more confident What’s your morning schedule?
was born, she free- were willing to swap high-paying took a break when her and secure regarding finances. “We’ve seen a I meditate for ten minutes every morning, irrespective of
lanced for two son was born, and The term was coined by Gabrielle Judge. time of plenty after liberalization and I think we whether I’m travelling or not. My regular day includes meetings
years, which con- jobs for lower-paying ones to could have returned are not as scared of losing the plot completely. with the department heads, reviewing their performance and
vinced her of the improve their health to a corporate role employees value in their work arrangements.” Growing career options demonstrate different discussions on how we can serve our customers more efficiently.
value of a good work- when he started But Divekar highlights generational differen- ways to pursue a career and live one’s life.” What are some of the productivity principles you follow
life balance. This school. “But I felt that ces, where those who are now over 40 were This departure from the traditional norm of that have made your much easier?
influenced her decision to prioritise a job with I would be able to do a lot more by starting my instilled with the “work is worship” attitude. “I success captures the essence of a lazy girl job. I’ve come to realise that your ability to get things done depends
more autonomy and remote working, when she own thing. Though the money is not as much, I am 49 now. I am not seeing a lot of corporate There is hard work, but being able to structure on how well you can focus on each given task at a time, whether
resumed full-time work. She found this in her enjoy this as I am learning more things, and folks jumping into this.” work around your life, rather than life around it’s for five minutes or an hour. I am a firm believer in the power
current role as assistant general manager, cus- being able to do things I enjoy at my own pace,” Organizations dismissing these trends that work, is appealing. Along with virtual working, of taking breaks and practising deep focus during work hours.
tomer experience, at an educational technology says Datta. She runs a fintech startup and a bou- embody changing work priorities risk losing tal- Rathore meets clients during her child’s school What’s the one positive work routine you have developed
company. For Rathore, lazy girl work does not tique consulting firm for BFSI (business, finan- ented professionals. “It’s time to embrace this hours. “Having been with my organization for during the pandemic?
imply less exciting work. “It is no less challeng- cial services and insurance) clients, and is pur- trend and lead with empathy, flexibility, and a over half a decade, there is trust and I can define I’ve realized the importance of spending time in nature and the
ing. Did I compromise on the role? Not at all. Did suing a diploma in Bharatnatyam. focus on what truly matters,” writes Doug Den- my out-of-home work hours myself.” need to follow a healthy daily routine.
I compromise on the money? Unfortunately, nerline, CEO of Betterworks, a California-based Datta enjoys the option of reading a book in Any book or podcast you would recommend about men-
yes,” she says. “But it allows me to take a pause, GENERATIONAL DIFFERENCES HR management software organization, in an the morning if she wants to, and working later. torship and growth?
breathe, and be around more with my family.” Do generational differences in work attitudes article on the lazy girl trend for business media “My bank account is much leaner now, but my I would suggest the book, The Coaching Habit: Say Less, Ask
According to Prasanna Divekar, director and motivate certain age groups towards lazy girl outlet Fast Company. “By doing so, we foster a quality of life is richer,” she says, suggesting More & Change the Way You Lead Forever by Michael Bungay
co-founder of Amaresah Business Consulting in jobs? Raina says attributing certain attitudes to culture where employees feel cared for, where rechristening the term lazy girl jobs to “richer Stanier.
Mumbai, lazy girl jobs don’t always have to any homogeneous group is difficult. “Personal their lives outside of work are valued, and where girl/boy jobs” as they provide richness in experi-
involve financial compromise. “You can work experiences, family situations, career aspira- they can perform at their best.” ences and learning. Monday Motivation is a series in which business leaders and cre-
fewer hours and earn well, even making more tions, health concerns and other individualized Earlier too, there have been echoes of lazy girl ative individuals discuss their mentors and their work ethics.
money than in a full-time corporate job,” says factors play a significant role in shaping what jobs. Delhi-based education consultant Shivani Write to us at businessoflife@livemint.com Write to us at businessoflife@livemint.com

How Isro is trying to rebrand itself as approachable PTI

Historically, Isro was global commercial space market is atmosphere of straight talk helps projects ment of India’s space industry.
expected to be worth $1 trillion by 2030, move faster. Publicising Isro scientists’ “He [Modi] wants space to do what India
known to be closed-off, but at the moment India has only a 2% achievements has given them more confi- has been able to do with IT,” a person
but that is changing now share—about $8 billion—which the gov- dence and brought space startups to the familiar with discussions between the
ernment wants to change. India expects to door, asking for guidance as they plan pri- PMO and the industry said.
as the agency wants to have a $40 billion worth of slice of the pie vate launches. A more responsive agency The government is expected to open
grow the space market by 2040, the government has said. makes such partnerships more attractive, the doors to foreign investment in the sec-
Prime Minister Narendra Modi has private space insiders say. tor this year. Isro will focus on exploration
called on the agency to make India into a “Private industry does not need help, and new science, while three different
Reuters profitable space superpower. To get there, they need predictability,” said D.S. Govin- bodies—Indian National Space Promotion
the country needs to rope in young scien- drajan, president of Aniara Communica- and Authorisation Centre (IN-Space),

W
hen the Indian Space Research
Organisation’s (Isro) Chan-
drayaan-3 mission landed on
the moon, more than 8 million people
tuned in for the event’s YouTube live-
stream - a record for the site. The landing
was a win for India’s low-cost space engi-
neering, and science, as well as a quiet
initiative to rebrand India’s 54-year-old
space agency as approachable, according
to more than a dozen current and former
employees, and 10 consultants and
industry experts.
“Isro used to be a very closed organiza-
tion. There was hesitation in talking about
its missions,” said Namrata Goswami, a
space policy expert and professor at the
Thunderbird School of Global Manage-
ment at Arizona State University. “Fast
forward to 2023, I was surprised by the
amount of transparency from them. That
is very new, and very welcome.”
The stakes are high: the $400 billion
tists, startups, investors, and private
industry partners, none of whom respond
well to a closed-off approach, senior Isro
scientists said.
“The point is to be open and engage the
next generation,” said B.H.M. Darukesha,
49, who manages Isro’s social media posts.
“We want people to see us as friendly. This
represents a new focus at Isro.”
That has caught the attention of univer-
sity students who might otherwise have
steered clear of the industry. Sruthi Paru-
pudi, 18, who is studying interaction
design in Ahmedabad, said she had long
been interested in space, but thought such
careers were closed off to non-scientists.
“Now I see the many facets of the industry
open up,” she said. “I stand a chance to
work with Isro, being a design student.”
Isro insiders credit S. Somanath, who
took over as chairman in 2022, as being
instrumental in getting everyone at the
organisation onboard with the changes.
Many scientists initially worried about
job security and Isro’s relevance after
opening the sector to private industry,
said seven senior scientists, who did not
wish to be named.
Somanath said he implemented other
small changes, such as encouraging break
time, informal chats and refreshment
kiosks where employees can meet for tea.
His goal was to make it add up to a more
attractive place to work and partner with.
“These small things that global compa-
nies have are not automatically available
in government organisations all the time,
and these are important for young people,
whom we want to attract as we expand our
reach,” Somanath said. “Many ideas can be
discussed better over a cup of tea.”
Employees and experts say that they
have felt more autonomy, and that a new
tions, which provides satellite services for
emerging markets. “That kind of predicta-
bility is certainly there now.”
ABOVE AND BEYOND
From its humble beginnings, Isro has hit
recent highs, becoming the first nation to
land a rover on the Moon’s South Pole. It
has now set sights on studying the sun,
putting astronauts in orbit, exploring
Venus, and is a partner with the U.S.’
National Aeronautics and Space Adminis-
tration (Nasa) for planetary defence and
deep space exploration.
“Space is a critical place through which
you ascertain yourself as a superpower.
The U.S. is there, China is there, so India
has to be there,” said Ashok Sharma, visit-
ing fellow at the University of New South
Wales, Canberra at the Australian Defence
Force Academy.
Modi’s government, heading for elec-
tions next year, is pushing the develop-
NewSpace India Limited (NSIL), and
Indian Space Association (ISpA)—will
interact with the private sector, negotiate
launches and boost business.
There are many obstacles: space
launches are dominated by established
companies and organizations, and a costly
failure or economic downturn could undo
the momentum.
“You are using public money, so you
have to show the public what the money is
being used for,” said Somak Raychaud-
hury, an astrophysicist and vice chancel-
lor at Ashoka University.
But for now, the increased openness has
led to optimism that the positive changes
will be long-lived. “People can now see
scientists are normal human beings, and
in some ways, maybe that can inspire
young minds to study science further,”
Raychaudhury said.
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