MuMBAI, NEw DELHI, BENGALuRu, kOLkATA, CHENNAI, AHMEDABAD, HyDERABAD, CHANDIGARH*, PuNE*, LuCkNOw* VOL. 6 NO.

271

Tuesday, November 14, 2023

Think Ahead. Think Growth.

mint primer QUICK EDIT

Long hours is not Clarity on

the productivity
fix India needs
The growth of India’s labour productivity—output per person per
hour—has been tepid. And working longer hours is not a solution.
Mint looks at the reasons for the low productivity growth and what
needs to be done to improve it.
Growing but not enough
India’s labour productivity growth has slowed.
Growth (in %)
7.37
6.67
4.23 4.57
2011
How has India fared in
1 recent years?
Labour productivity has been
growing, but the pace of growth
has declined over the last six
years. Between 2004 and 2008, it
registered a growth of 14%. It
fell to a low of 4.23% in 2011 and
then grew consistently, touching a
high of 9.15% in 2016. Since then,
the growth has fallen (see chart),
barring a marginal post-pandemic
spike in 2021. In 2022, it was
just 2.53%. Experts worry that
this number should have been
higher given that India is
witnessing large non-labour
intensive (or capital-intensive)
investments. Ideally, such
investments increase productivity
per worker.
REUTERS
BY N. MADHAVAN
9.15
7.76
6.11
4.76
2.52
3.54
2.04
Source: CEIC Data
SATISH KUMAR/MINT
How do we compare
2 with other nations?
According to International Labour
Organization (ILO), India’s output
per hour per worker was $8.47 in
2021 (the latest available data).
Developed nations, on the other
hand, are way ahead. Output per
worker per hour in the US was
$70.68. For Germany and the UK,
it was $58.31 and $51.35,
respectively while for Japan, it was
$39.60. China’s productivity per
hour was $13.53. Qatar and UAE
clocked higher numbers of $52.7
and $42.99, respectively. ILO,
however, classifies them among
countries that have ‘not so decent’
working environment as they force
workers to put in more than 49
hours of work per week.
liability
The Supreme Court’s decision
upholding legal provisions
related to personal guarantors
under the Insolvency and Bank-
ruptcy Code (IBC) could open
the flood gates to action against
them. So far, as many as 150 of
the applications filed against
personal guarantors have
reportedly been rejected, while
282 were admitted. After the
top court’s order, this ratio will
likely see a far sharper skew in
favour of case admissions. Len-
ders would be pleased. It gives
them recourse to an otherwise
2.53
slippery source for the recovery
2022
of dues. Even in cases where set-
tlements have already been
reached, lenders could pursue
personal guarantors to make
good the portion of debt left
unpaid. Promoters, typically the
ones who provide these per-
sonal guarantees, would be dis-
pleased, now that a line which
may have limited their liability
appears to have blurred. But
then, offering a guarantee is a
voluntary act, and to that extent
amounts to a surrender of the
“limited company” principle
that only the capital staked in a
business can be seized, not
other personal holdings. Guar-
antors may start backing away
now. If a rash of corporate credit
re-ratings follows, then some-
thing was amiss all along.
MINT METRIC
by Bibek Debroy

In Chhindwara police station,

3 What contributes to the low
productivity in India?
Primarily, the structure of manufacturing.
60 bottles stored, pending investigation.
India is mainly into low-value high-volume
Rats destroyed the drink,
production. Investment in innovation and Or so the cops think.
technology, both by the government and
private companies, is low and where there
A rodent culprit nabbed for interrogation.
is investment, the intensity of its use is
poor due to inadequate skilling. And there
are issues of management quality and work
culture. QUOTE OF THE DAY
Demand for travel on Emirates
Will longer work hours How can productivity
4 increase productivity?
No. Indians already put in more
5 be raised significantly?
According to World Intellectual
is one of the strongest it’s ever
been in its history. If we had
hours at work. According to ILO Property Organization, India filed those aircraft we ordered today
data, Indians workers in 2021, on 55,718 patents applications in 2022.
an average, worked 47.7 hours a This pales into insignificance in place tomorrow,
week compared to Japan’s 36.6, against China’s 1.5 million and the we’d fill them up.
Germany’s 34.3, the US’ 36.4 and US’ 500,000. Our gross R&D spend
China’s 46.1. More than longer fell from 0.65% of GDP in 2017-18 to It’s as strong as that.
work, Indian workers need to be 0.64% in 2020-21. Higher
skilled to handle higher technology investment in technology and
content and automation. This is innovation will help India climb the
critical if we have to move up the manufacturing value chain. TIM ClARK
manufacturing value chain. Also, Company managements should EMIRATES AIRLINE
there is an urgent need to match experiment, look for best practices PRESIDENT
education to the needs on the and accept failures as they embrace
ground, especially when it comes to technology and produce high value
vocational training. products.

MINT PODCASTS

DEEPFAKE THREAT CYBERATTACKS AI INSIGHTS

Artificial intelligence (AI) tools’
increasing accessibility raises the
threat of deepfakes
in audio, video, and
photos. Identifying
the actual perpe-
trators is nearly
impossible due to
cyber tools mask-
ing origin traces. Listen now to the
Mint Primer podcast to stay
informed!
This month, Apple alerted users Join Leslie and Jayanth on AI Rising
about potential state-sponsored as they explore the AGI debate, delv-
cyberattacks. The ing into perspec-
Centre dismissed it tives from tech
as “vague,” sparking leaders like Musk,
opposition. While Bengio, Hinton, Ng,
Apple cautioned and LeCun.
the notifications Uncover key inci-
aren’t conclusive, dents, insights, and
the threat of cyber espionage is seri- the latest AI developments, from the
ous. Dive into the conflict with Mint’s US AI Executive Order to global pol-
Shouvik Das. icy debates.
 PLAIN FACTS

Safe havens no longer

immune to global risks
BY DEEPA VASUDEVAN

I
n financial markets, a safe haven is an asset that retains its value through war, calamities, economic troubles, or other disas-
ters. Historically, gold and US government bonds have been considered the safest of assets. In currency markets, the Swiss
franc and the Japanese yen—along with the US dollar—are the usual safe havens. But as the world lurches from one crisis
to another, and geopolitical tensions ratchet up, the notion of what is a safe asset is shifting in subtle ways.
Consider the dollar, the dominant reserve and trading currency with unparalleled global liquidity. Unfortunately, while
the dollar hedges well against geopolitical risk, it does not offer much protection against inflation. In September 2023, US
retail inflation was at 3.7%, about half the 8.2% recorded a year ago, but still far from the 2% target rate. The ongoing conflict
in West Asia has re-introduced inflation risk by pushing up oil prices.
US government bonds are preferred in times of economic uncertainty or market volatility, but recently, Treasuries them-
selves have become unstable. Yields dropped for some time after the Hamas’ attack on Israel, but concerns about massive
government borrowing, expectations of higher-for-longer interest rates, and front-loaded issuance of longer-dated securities
made markets so jittery that the 10-year yield briefly went past 5%. Hints of a drop in foreign demand (notably, sell-offs by
China) and negative tweets by hedge fund managers have also triggered bouts of volatility. That, and the rise in treasury yields,
have somewhat tarnished the image of the world’s benchmark risk-free asset.

Inflation above the 2% target remains US yields have risen and become
a threat to the dollar's strength more volatile
Dollar index* US retail inflation (%) (right-hand axis) 2-year treasury yield 10-year treasury yield
6

115 10

9
5
110 Easing
8 inflation
106.35
7 Dovish Fed
105 4
signals
6

100 5
3 US bank
crisis
4
95
3.7 3
2
(Sep 2023)
2
90 Ukraine war
begins
1
1

85 0
Jan 2021 Oct 2023

*Monthly average. The dollar index published by ICE is the weighted geometric 0
mean of the dollar's value against a basket of major currencies. A higher dollar 4 Jan 2021 27 Oct 2023
index means a stronger dollar.
Source: Investing.com, Yahoo Finance Source: St. Louis Fed

Gold Paradox Robust safe-haven demand has

decoupled gold prices from rate hikes
GOLD IS a hedge against inflation as well as geopolitical risk. 6 Gold prices 5.35
Not surprisingly, gold prices have been on a bullish trend. Until (rebased to 1 Jan 2003 = $1)
5
May 2023, US rate hikes were a key price trigger, as higher
interest rates increase the opportunity cost of holding gold. But 4
this negative relationship has become less powerful in recent 3
months. Between May 2022 and May 2023, as real rates rose 2.40
from negative levels to 1.4%, the price of gold increased by 2

nearly 8%. By October 2023, yields had shot up to 2.4%, but gold 1
prices remained stagnant, despite heightened geopolitical
0
tensions.
The decoupling of gold and interest rates does not signal a -1
decline in its safe-haven status. A likely explanation is that the Real interest rate, US (%)
-2
impact of future rate hikes has already been factored into gold Jan 2003 Oct 2023
prices. In fact, gold demand remains strong, driven by Real interest rate is proxied by the inflation-adjusted market yield
on US 10-year Treasuries. On 1 January 2003, the gold price was
consumer demand in Asia as well as purchases by central banks, $356.9 per troy ounce.
Source: World Gold Council, St. Louis Fed
which are keen to include gold in their reserves.

The yen's weakening has dented

its safe-haven status
Currency Shopping
Exchange rates indexed to 100 as of 3 Jan 2022 THE YEN and Swiss franc are popular safe-haven currencies.
90 (on inverse scale)
USD/CHF
The yen has weakened since 2022 mainly because of the Bank
95 of Japan’s contrarian policy of low interest rates and yield-curve
100 control. A slow reversal of policy has already pushed up yields,
105 and this in turn, is likely to attract capital inflows and
110
strengthen the yen. Additionally, authorities are expected to
115
intervene if the yen falls too far below 150 to a dollar. Either or
both events could increase market volatility and upend the yen-
120
based carry trade.
125
The Swiss franc, in contrast, is strengthening, though not
130 USD/JPY
entirely on account of being a safe haven. Since June 2022, the
135 Swiss National Bank (SNB) has intervened to support the franc
3 Jan Mar May 1 Nov
2023
and control imported inflation—without this the currency
2022 2023
Shaded areas represent recent periods when the two would have been weaker. The current climate of geopolitical
currencies moved in opposite directions against the dollar. risk favours the franc, but weakening pressures may build up
Source: Investing.com once inflation cools and the SNB stops intervening.

‘Last Asset Standing?’ Although still highly volatile, bitcoin has

managed to garner some acceptability
A MAY 2023 Bloomberg survey suggested that retail investors What investors would buy if the US hit the debt ceiling
would favour bitcoin over the dollar, yen and Swiss franc in the (survey responses in %)
event of a US debt default. Crypto assets have become widely 45.7
Gold
acceptable for two reasons. First, the belief that quantitative 51.7
15.1
easing has eroded fiat currency and high levels of national debt US Treasuries 14
could result in more money printing have led some to conclude 10.2 Retail investors
that bitcoin will be the last asset standing when conventional US dollar
7.8 Professional investors
policies fail. Second, traditional fund managers are endorsing Bitcoin
11.3
crypto hoping for a launch of bitcoin exchange-traded funds. 7.8
BlackRock’s Larry Fink described the recent bitcoin rally as a Yen
4.3
7.5
“flight to quality”; brokerage firm Bernstein went so far as to
6.5
label it a safe haven. Clearly, some investors view bitcoin as a Swiss franc
5.8
robust store of value. But for the rest, it remains a highly volatile 7
Something else
and controversial asset, and regulators globally advise caution 5.5
against it. Based on a market live pulse survey during 8-12 May 2023
with 637 respondents. Source: Bloomberg
The author is an independent writer in economics and finance.
PARAS JAIN/MINT

PEANUTS by Charles M. Schulz

 MuMBAI, NEw DELHI, bENGALuRu, kOLkATA, CHENNAI, AHMEDAbAD, HYDERAbAD, CHANDIGARH*, PuNE*, LuCkNOw* VOL. 6 NO. 271 Rs. 10.00 16 PAGES

Tuesday, November 14, 2023

How crypto funded the IPO after integrating Viatris:

livemint.com Hamas war uP10 Biocon Bio CEO Tambe uP3

Firmer push for local EV

production in FAME-III
Govt is considering introducing a 50% domestic value addition mandate
Rituraj Baruah & over time to discourage
Subhash Narayan GrEEn sOPs imports and boost demand for
local products.
The government is weighing doing away with the phased
NEw DELHI DVA is currently imple-
manufacturing programme as part of proposed FAME-III.
mented under production-

T
he government is
considering imple-
menting stricter
norms to enforce the
use of local compo-
nents to bolster domestic man-
ufacturing of electric vehicles
(EVs), amid instances of com-
panies violating phased manu-
facturing programme (PMP)
norms by assembling vehicles
with imported parts.
The Union ministry of heavy
industries (MHI) is consider-
ing introducing a 50% domes-
tic value addition (DVA)
requirement and doing away
with PMP as part of its pro-
posed Faster Adoption and
Manufacturing of (Hybrid and)
Electric Vehicles in India
(FAME) III, according to two
people familiar with the devel-
opment. DVA is calculated
based on the net selling price
of a product and the landed
cost of imported inputs.
Further, the heavy industries
Allocation EVs incentivized EVs incentivized linked incentive (PLI)
(in ₹ crore) (in million) under FAME-II
schemes, wherein selected
10,000 968,214
applicants need to apply for
DVA certification, and only
0.28 1.09* 115,292 after they receive the certifica-
Fame-I 14,231 tion do they become eligible
2 3 4 for the incentive.
Wheelers
“DVA is a more refined con-
Fame-II
cept. It’s much more stringent.
*Out of 1.55
million We will keep it at 50%,” one of
targeted
529 the two people said on condi-
tion of anonymity.
Fame-I Fame-II
Source: Bureau of Energy Efficiency, National Automotive Board
Earlier this year, the govern-
ment launched an investiga-
STRICTER NORMS tion into complaints of non-
A 50% DVA AnnuAl review of THE norms come compliance with PMP norms.
requirement compliance with after violations The investigation found that
instead of PMP indigenization rules by EV firms six two-wheeler FAME II bene-
ficiaries—Hero Electric, Oki-
SARVESH KUMAR SHARMA/MINT
nawa Autotech, Ampere EV,
ministry plans to introduce an phase of FAME, when it comes Revolt Intellicorp, Benling
annual review of compliance up, we would have DVA,” said a India and AMO Mobility Solu-
with indigenization norms. person aware of the matter. tions—violated the norms.
“One thing is, there would be Under PMP, the govern- Following the investigation,
an annual check of the appli- ment offers a graded duty the ministry asked these firms
cants. There would be DVA. structure and a timeline for the to return wrongly claimed sub-
There was no DVA in FAME so graded implementation of the
far; there was PMP. In the next indigenization of components TURN TO PAGE 9

DON’T MISS
Car, two-wheeler sales surge
Sales of passenger vehicles and two-
wheelers surged over Dhanteras and Diwali,
lifted by festive spirits and better availability
of products compared with last year. >P5
India bats for rare earth minerals
India is scaling up efforts to secure supplies
of critical and rare earth minerals, with the
Centre inviting R&D proposals for mining
technology from academic institutions. >P2
‘India may grow at 6.5% in FY24, 25’
India’s economy to grow at 6.5% in FY24 and
FY25, with strong domestic fundamentals set
to reduce any vulnerability to external
headwinds, predicts Morgan Stanley. >P2

Retail inflation hits Govt to tap OFS

4-month low in Oct route in rest of FY
MINT
Rhik Kundu Gulveen Aulakh
Prices cool down
rhik.kundu@livemint.com gulveen.aulakh@livemint.com
A Mint poll estimated India’s retail
NEw DELHI inflation to cool to 4.8% in October. NEw DELHI
CPI inflation, year-on-year (in %)

R T
etail inflation fell to a
four-month low of 4.87%
in October as food prices
eased, prompting expectations
that the central bank may yet
again keep policy rates
unchanged at its monetary pol-
icy review next month.
Consumer Price Index
(CPI)-based inflation stood at
5.02% in September, remain-
ing within the Reserve Bank of
India’s (RBI’s) comfort zone of
2-6% for the second consecu-
tive month. In October 2022,
retail inflation stood at 6.77%.
A Mint poll of 17 economists
estimated India’s retail infla-
tion to cool to 4.8% in October;
however, they believe volatile
vegetable prices could still
8 he government plans to
7.61 tap the offer-for-sale
7 (OFS) route for disinvest-
ments in listed public sector
6 enterprises during the rest of
the fiscal year instead of initiat-
5 ing fresh strategic sales, a gov-
4.87 ernment official said.
4 “Towards the end of the fis-
Oct 2020 Oct 2023
cal year, there are usually a few Due to a weak market, the Centre
Source: MoSPI
OFS,” the official said, adding decided against strategic sales.
this would not be done with the
upset forecasts. aim of meeting budget targets. ments given weak market con-
Food inflation, measured by “Some PSUs (public sector ditions, the official said. It is also
the Consumer Food Price undertakings), where the mini- averse to strategic divestments
Index, which accounts for mum shareholding norms have in PSUs that operate in states
nearly half of the overall con- to be met, may be considered,” going into elections.
sumer price basket, slowed to the official said on condition of Governments go easy on dis-
6.61% in October from 7.01% a anonymity. investments ahead of elections
The government decided
TURN TO PAGE 4 against strategic disinvest- TURN TO PAGE 6

Banks eye batch of ’24 in engg, biz schools

Devina Sengupta & resources (HR), Standard Char-
Shayan Ghosh tered Bank. He said as part of its
graduate programmes, Stan-
MuMbAI dard Chartered hires mainly
from B-schools for various

I
ndia’s top banks are looking
to hire aggressively from the
batch of 2024 in engineering,
business and graduate colleges
to complement hiring from the
market, augment digital initia-
tives and compensate for losses
in front-line sales staff.
According to bankers and
executives at some of the large
engineering and management
colleges, compensation could
range from ₹8 lakh to ₹40 lakh,
depending on the roles on offer.
Axis Bank, Bank of Baroda,
Standard Chartered Bank,
HSBC India and Deutsche Bank
India are among those who
have approached for roles ran-
ging from sales and marketing,
to global banking, said a place-
ment executive at a Bengaluru-
based engineering college that
has more than 1,000 students
Compensation could range from ₹8 lakh to ₹40 lakh, depending
on the roles on offer.
to place in the 2024 batch.
“Last year, we had hired
about 180-200 students from
campuses, but this year, the tar-
get is higher. If we hired 10 stu-
dents from tier 1 B-schools—
mostly the Indian Institute of
Management—this year, it will
double,” a banker at one of the
lenders mentioned above said
on condition of anonymity.
The banker said lenders are
hiring aggressively because they
BLOOMBERG
need to build a talent pipeline
that is young and can pick up
digital skills faster. “We do not
have enough resources and will
expand more into tier two and
three colleges to get a wider tal-
ent pool,” the executive added.
“Hiring from top engineer-
ing and B-school campuses
continues to be an integral part
of our hiring strategy,” said
Shivshanker S.V., India and
South Asia head, human
roles under core banking and
also across functions such as
risk and conduct, financial
crime and compliance. “In
addition, we also hire from
engineering schools for various
roles such as data scientists,
software developers across our
subsidiaries and global busi-
ness services.”
“Axis Bank, Deutsche Bank
and Standard Chartered are
some of the banks which are
ready to hire at a pay range of
around ₹20 lakh for some pro-
files,” the placement executive
cited earlier said, adding last
year, seven-eight banks rolled
out 40 offers, and more are
expected this year.
Archana Chadha, head of
HR, HSBC India said in terms of
TURN TO PAGE 6
02 Tuesday, 14 NoveMber 2023
MuMbai ECONOMY & POLICY LIVEMINT.COM

m MINT SHORTS
Palm oil, sunflower oil imports rise
India in push for rare earth ‘Delhi air
worst in the
to record highs; soya oil drops
Mumbai: India’s imports of palm oil and sunflower oil in
2022/23 surged by 24% and 54%, respectively, to record highs on
a rebound in consumption and as both oils were available at a
minerals with R&D focus world on
Monday’
steep discount compared to rival soyoil, a leading trade body said
on Monday. Higher purchases by the world’s biggest importer of Puja Das
vegetable oils could help to lower palm oil stocks in Indonesia puja.das@livemint.com
and Malaysia and support benchmark futures. The buying could Projects will look at critical minerals like lithium, nickel and tungsten over three-year period NEW DELHI
reduce inventories in sunflower oil-producing Black Sea coun-

D
tries. REUTERS elhi’s air quality on
Subhash Narayan sustainable manner,” said a govern- Monday slipped to
subhash.narayan@livenint.com ment official privy to the matter on ‘very poor’ as a thick
Government plans 1.4 bn-tonne NEW DELHI condition of anonymity. smog enveloped the city after
The R&D initiative of the mines min- people set off Diwali fireworks
coal output by 2027

I
ndia is scaling up efforts to secure istry is directed toward five broad on Sunday night in violation of
supplies of critical and rare earth heads—critical minerals, rare earth a Supreme Court order.
minerals, with the mines ministry minerals, recycling and circular econ- At 1:30 pm, the air quality
inviting research and development omy, energy efficiency, and new mate- index in Delhi was at 322 as
proposals for mining technology, rial and processes. The critical mineral against 218 at 4 pm the previous
including deep-sea and green mining, project include development and day, based on Central Pollution
from academic institutions. establishment of technologies for Control Board (CPCB) figures.At
India’s plan is to establish and sup- recovery of nickel and lithium from 1 pm, the AQI was 335 at Anand
port R&D projects, focussing on criti- scrap battery, recovery of lithium from Vihar, 342 at RK Puram, 342 at
cal, rare earth and deep-seated miner- new deposits including development of Punjabi Bagh and 319 at ITO.
als like lithium, nickel and tungsten process flow sheets for the mineral At 5.30 am, the AQI was 514,
over three years. The ministry seeks to beneficiation for new finds. higher than the 320-mark that
develop sustainable solutions using Projects have also been invited from is categorized as “hazardous”
technologies like robotics, Internet of institutions for development of a low- by Swiss group IQAir.
New Delhi: The union ministry of coal on Monday said that Things, artificial intelligence and The mines ministry has invited proposals on R&D for mining technology, including cost automated system able to separate According to IQAir, Delhi
it plans to increase India’s coal production to 1.4 billion ton- machine learning for exploration, deep-sea and green mining. aluminium alloys using laser-induced was the most polluted city in
nes by 2027. In a statement, the ministry also said that it prospecting, and mining of strategi- plasma to analyze the composition of the world on Monday.
plans to produce additional quantities of coal in its produc- cally important minerals found in chal- start soon. in off-shore and deep-seated mining, materials for rapid and accurate sorting The Anand Vihar region was
tion enhancement plan and will ensure adequate availabil- lenging locations. During the monsoon session, the including rare earth minerals critical and identification of metals in complex the worst, with the AQI reach-
ity of domestic coal to thermal power plants.RITURAJ BARUAH “Projects are invited from academic government revised the mining legisla- for industrial use. mixtures. Use of artificial intelligence ing 969 at 5 am, according to
institutions, universities, national insti- tion to remove various atomic and criti- “For several mineral categories, and machine learning will also be an weather agency aqicn.org.
tutes and R&D institutions recognized cal minerals, including lithium, from spanning critical, strategic, deep seated area for research where specific pro- As per Safar monitoring
Procurement from GeM portal by Department of Scientific and jects would establish technologies agency, the air quality is likely
crosses ₹2 trillion so far this fiscal Industrial Research, for up to three CRITICAL MINERALS PROJECT for metal scrap sorting, based on to worsen and reach ‘severe’
years on the identified topics of colour and shape, which utilize category between Tuesday
New Delhi: The procurement of goods and services from the directed R&D and in thrust areas THE ministry seeks R&D projects for MINERAL law was THE critical minerals advanced imaging and computer and Thursday. In the following
government portal GeM has crossed ₹2 trillion so far this fiscal which have direct bearing on the to develop
sustainable
mineral categories
which were recently
amended to allow
private sector mining
R&D project is also
geared for recovery
vision techniques to identify and six days, it is expected to
due to higher buying activities by ministries and depart- mineral sector, applied and sus- solutions using new made accessible to for critical and of nickel and lithium classify metal scraps. remain ‘severe’ to ‘very poor’.
ments.The government e-Market (GeM) portal was launched on tainable aspect of mining and technologies private sector mining deep-seated minerals from scrap battery In the category Internet of PM 2.5 concentration in the
9 August 2016 for online purchases of goods and services. “Gem industrial applications,” a ministry Things (loT) and sensor-based city has been 20 times above
of a landmark! Government e-Marketplace achieves an impress- note said. technology, the processes would the upper limit prescribed by
ive ₹2 lakh crore gross merchandise value in just eight months of The ministry proposes the establish- the restricted list, allowing the private and rare earth, mining will be fine for focus on development of systems for the World Health Organiza-
2023-24,” commerce and industry minister Piyush Goyal said on ment of R&D projects for mineral cate- sector to participate in the auction for the vert first time. The government’s metal recycling to enable real-time tion, prompting the city gov-
social media platform X. PTI gories recently made accessible to pri- mining. R&D initiatives seek to employ the monitoring, optimize resource alloca- ernment to order the closure
vate sector mining. The auction pro- Separate legislation was introduced right technologies so that mining can tion, and improve overall operational of all primary schools and
cess for these mineral blocks is set to to allow the private sector to participate be undertaken in most efficient and efficiency. restrict the entry of trucks.
Govt permits non-basmati rice
shipment to Nepal
Morgan Stanley forecasts 6.5% Centre seeks Rajasthan wheat
MINT

growth for India next fiscal too Puja Das

puja.das@livemint.com
NEW DELHI
Rhik Kundu GBI-EM index from Jun-24

T
rhik.kundu@livemint.com will likely support the balance he Centre is in talks with
NEW DELHI of payments by augmenting Rajasthan to increase
capital flows and thus aiding procurement of wheat

M
organ Stanley
Research on Monday
New Delhi: The government has provided a one-time said it expects India’s
exemption from the export ban to Patanjali Ayurved for economy to grow at 6.5% in
shipping 20 tonnes of non-basmati white rice as a donation FY2024 and FY2025, with
to Nepal for earthquake victims. Though exports of non-bas- strong domestic fundamentals
mati white rice were banned on 20 July to boost domestic set to reduce any vulnerability
supplies, exports are allowed on the basis of permission to external headwinds.
granted by the government to certain countries to meet The research arm of the
their food security needs and on request. “One time exemp- investment bank, in its 2024
tion from prohibition is granted to Patanjali Ayurved Ltd for India Economics Outlook, said
export of 20 MT of non-basmati white rice (semi-milled or domestic demand supported
wholly milled rice, whether or not polished or glazed)…as by strength in corporate and
donation to Nepal for earthquake victims,” the directorate financial sector balance sheets
general of foreign trade said in a notification. PTI and the follow-through of pol-
icy reform measures will aid
India’s growth amid a global
1st division mandatory in Bachelor’s slowdown.
The latest forecast from
and Master’s for IIM director’s post Morgan Stanley comes amid
New Delhi: The Centre has notified new norms for the appoint- escalation of conflict between
ment of directors of Indian Institutes of Management (IIMs), mak- Israel and Hamas that threat-
ing it mandatory for applicants to have first class degrees in both ens to impact the oil prices.
Bachelor’s and Master’s, along with a PhD or equivalent from a Recently, Moody’s Investor
reputed institute. Also, the President will now be a “Visitor” to the Services retained India’s eco-
prestigious B-schools with powers to appoint chairperson of the nomic growth at 6.7% for
board of governors, appointment and removal of directors and 2023, citing the country’s
dissolving the board for not performing duties or complying with resilience amid a global slow-
visitor’s directions. The eligibility for appointment as an IIM down buoyed by domestic
director now will include having a “distinguished” academic demand.
record with “first class degree in both Bachelor’s and Master’s The International Monetary
level, and with PhD or equivalent from a reputed institute”. PTI Fund (IMF) has also raised its
Strong domestic fundamentals
set to reduce the economy’s
vulnerability. BLOOMBERG
2023-24 growth projection for
India to 6.3% from its July esti-
mate of 6.1%, citing stronger-
than-expected consumption
during Q1.The Reserve Bank
of India (RBI) estimates
growth at 6.5% for FY24.
Morgan Stanley expects
headline inflation to moderate
to 4.9% in FY25 from 5.4% in
FY24. “On the external bal-
ance sheet side, we expect the
current account deficit to
remain in a range of 1.5-1.7% of
GDP in F2025-26, steady
terms of trade, and strength in
net service exports,” it said.
“India’s inclusion in the
the funding profile,” it added.
In September, JPMorgan
Chase & Co. said it will add
Indian government bonds to
its benchmark emerging-mar-
ket index from June 2024.
The inclusion of Indian
bonds in JPMorgan’s emerg-
ing market debt index is
expected to bring in more for-
eign inflows into the country.
Meanwhile, Morgan Stanley
expects the RBI to keep inter-
est rates steady till the first half
of 2024. “However, we main-
tain our expectation of a shal-
low rate cut cycle from
June-24, driven by visibility of
sustained moderation in infla-
tion. We build in two rate cuts
of 25bps each, which will keep
real policy rates averaging at
about 100bps in 2024,” it said.
“Risks of a delayed start to
the easing cycle could emerge
from higher commodity prices
(especially oil) pushing up
inflation and/or tighter global
financial conditions weighing
on the currency and adversely
impacting macro stability,” it
added.
and coarse grains, a govern-
ment official said, seeking ano-
nymity.
At present, Rajasthan buys
oilseeds and pulses in larger
quantities than it does wheat
and coarse grains. The centre
seeks to improve wheat pro-
curement and encourage millet
consumption by running the
procurement drive in collabo-
ration with state and central
agencies. “Historically, the
state is not very forthcoming
about procurement operations.
It purchases oilseeds and pulses
in bulk, but procuring wheat
and coarse grains is not sub-
stantial despite significant pro-
duction,” the official said.
As per the latest edition of
the annual Agricultural Statis-
tics at a Glance report, Rajast-
han, a significant contributor to
India’s agricultural output,
yielded 9.48 million tonnes of
wheat across 2.58 million hec-
tares in FY22. As the leading
producer of Bajra, it contrib-
uted 3.75 million tonnes to the
total coarse cereal production
of 7.07 million tonnes from
Rajasthan produced 9.48 mt wheat in FY22. PTI
3.74 million hectares. It har- added. While rice procure-
vested 4 million tonnes of ment in Rajasthan is zero, the
pulses and 8.4 million tonnes of centre could procure about
oilseeds in the fiscal year. 438,000 tonnes of wheat in the
In the 2021-22 crop year, FY24 Rabi marketing season, a
foodgrain pro- huge jump from
duction in the At present, 10,000 tonnes in
state was at 21.05 FY23, 2.3 million
million tonnes, or
Rajasthan buys
tonnes in FY22
oilseeds and
11.3% of the coun- pulses in larger and 2.2 million
try’s total output,
quantities than it tonnes in FY21.
from an area of “Right now,
14.71 million hec- does wheat and they are also busy
tares. “Paddy in coarse grains with elections. So,
Rajasthan is not as they should care-
big as in Punjab fully be thinking
and Haryana. We are not about wheat. We would like to
inclined to growing water-guz- push very hard this time to
zling crops in a desert region. increase procurement in those
So, we don’t expect rice pro- states that don’t do it, including
curement from there,” he Rajasthan,” the official said.

ADB to lend India $400 million to help turn cities into growth centres CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Subhash Narayan tary, department of economic Mission for Rejuvenation and ulatory and institutional through generation of addi- suggestions or complaints
subhash.narayan@livemint.com affairs, ministry of finance, and Urban Transformation reforms along with capacity tional revenues. about errors.
NEW DELHI Takeo Konishi, country (AMRUT) 2.0 targeted for uni- building of ULBs and commu- Moreover, cities will be
Readers can alert the
director of ADB’s India resi- versal access of water supply nity awareness. incentivised to become credit-
newsroom to any errors in the

T
he government on Mon-
day signed a $400 mil-
lion loan agreement
with the Asian Development
Bank (ADB) for creating high-
quality infrastructure,
improving service delivery,
and promoting efficient gov-
ernance systems in towns and
cities.
The signatories to the loan
agreement for the sub-pro-
gramme 2 of the sustainable
urban development and ser-
vice delivery programme were
Juhi Mukherjee, joint secre-
dent mission.
While sub-programme 1,
approved in 2021 with a
financing of $350 million,
established national-level pol-
icies and guidelines to
improve urban services, sub-
programme 2 supports invest-
ment planning and reform
actions at the state and urban
local body (ULB) levels.
After signing the loan agree-
ment, Mukherjee said the pro-
gramme supports the govern-
ment’s urban sector strategy
with a focus on urban reforms
and sanitation,” said Konishi.
“The sub-programme also
supports other mission objec-
tives for ensuring urban water
security through reducing
water losses, recycling treated
sewage for non-domestic use,
rejuvenation of water bodies,
The loan would support the government’s urban sector strategy and maintaining sustainable
with a focus on urban reforms and sustainable cities. BLOOMBERG ground water level.”
The programme envisages
aimed at making cities livable “Sub-programme 2 sup- integrated planning reforms to
and centres of economic ports the reforms initiated by control urban sprawls and fos-
growth through provisioning the states and the ULBs in ter systemic and planned
of inclusive, resilient and sus- operationalizing the national urbanization by enhancing the
tainable infrastructure. flagship programme of Atal entire ecosystem of legal, reg-
Specifically, ULBs will pro-
mote modernization of build-
ing bylaws, land pooling,
urban agglomeration and
comprehensive urban mobil-
ity planning through transit-
oriented development to help
cities become well-planned
centres of economic growth.
Such integrated planning
processes will incorporate cli-
mate and disaster resilience,
promote nature-based solu-
tions, improve urban environ-
ment, and improve cities’
financial sustainability
worthy through various
reforms on enhancing their
revenues such as property
taxes and user charges,
improve their efficiencies and
rationalize their expenditures.
This will substantially help
cities to mobilise innovative
financing such as commercial
borrowings, issuance of munic-
ipal bonds, sub-sovereign
debts, and public–private part-
nerships to bridge significant
deficits in urban infrastructure
investments, a finance ministry
statement said.
paper by emailing us, with your
full name and address to
feedback@livemint.com.
It is our policy to promptly
respond to all complaints.
Readers dissatisfied with the
response or concerned about
Mint’s journalistic integrity may
write directly to the editor by
sending an email to
asktheeditor@livemint.com
Mint’s journalistic Code of
Conduct that governs our
newsroom is available at
www.livemint.com

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LIVEMINT.COM DEALS, TECH & STARTUPS Tuesday, 14 NoveMber 2023
MuMbai 03

Faering
m MINT SHORTS
90% of organizations embrace
Biocon Biologicals’ IPO only Cap invests
gen AI for new business lines
New Delhi: As many as 90% of the organizations surveyed said
generative AI will help them add new lines of business over the
next 12 months, according to PwC’s 2024 Digital Trust Insights.
after integrating Viatris: CEO $16 million
in Bakingo
Newer regulations around cybersecurity and data privacy like the
Digital Personal Data Protection Act, 2023 have added to the PTI
strategic importance of enhanced cyber investments for organi- feedback@livemint.com
sations, it said. “More than half the business decision-makers are The company’s biosimilar arm is looking to complete the process by the end of March New DeLhi
most concerned about cloud security-related threats and almost

O
half of them are concerned that the outcome of a cyber attack nline bakery product
could result in loss of customer data and revenue,” said PwC Ranjani Raghavan seller Bakingo on
India’s 2024 Digital Trust Insights. PTI ranjani.raghavan@livemint.com Monday said it has
MUMBAi raised its first-ever round of
growth capital of $16 million

B
Google parent Alphabet dissolves iocon Biologics Ltd, the bio- (over ₹130 crore) from private
similar arm of Biocon, will equity firm Faering Capital.
stake in trading app Robinhood consider a listing only after it With this investment, the
ISTOCKPHOTO
completes the integration of company is looking to further
its Viatris portfolio, which is strengthen its distribution
due by the end of March, the company’s footprint by expanding from 75
chief executive officer Sreehas Tambe dark kitchens to 150 and enter-
said in an interview. ing 10 new cities, according to a
The company is also looking to secure statement.
US regulatory approval for Aspart (insu- “The company also plans to
lin biosimilar) and Bevacizumab (cancer open exclusive brand stores for
biosimilar) before going ahead with its customers to experience the
initial public offering, he added. product and to invest in tech-
Biocon Biologics had acquired Via- nology to enhance its produc-
tris’ global biosimilar portfolio for $3.34 tion, supply chain and forecast-
billion in November 2022 in a cash and ing capabilities,” the statement
Google-parent Alphabet said on Monday it had dissolved equity transaction. Biocon had paid $2 said. Bakingo has its services
its stake in trading app operator Robinhood Markets. The billion in cash, including a $1.2 billion across 13 cities in India and
disclosure comes months after Alphabet slashed its stake sustainability loan. It had also issued plans to add another 10 cities in
in the firm by nearly 90%. It had around 612,214 Robinhood compulsorily convertible preference the next two years.
shares after that sale. Alphabet had reportedly invested in shares (CCPS) to Viatris worth around $1 The firm also looks to secure the US regulatory approval for Aspart and Bevacizumab before considering a listing. MINT “We are in a prime position
Robinhood when the latter was an unlisted startup that had billion. to be the pioneering National
captured the enthusiasm of retail traders with its commis- Now, it is in the process of fully inte- The triggers include delayed approv- its bevacizumab in February. to generate robust growth for its core Bakery and Gifting platform.
sion-free trades and easy-to-use interface. As economic grating this business with itself by taking als for biosimilar (insulin) Aspart and On Friday, parent Biocon reported a businesses of oncology and diabetes, This growth capital investment
conditions turned murky because of the Federal Reserve’s control of Viatris’ operations. Currently, biosimilar (oncolology) Bevacizumab. profit after tax of ₹172.7 crore for the across advanced and emerging markets. by Faering Capital will propel
rate hikes last year, the app lost some of its charm as its cus- the Viatris management continues to On 6 October, it had received a com- September quarter compared to ₹81.8 The company had earlier notified that us in executing our vision and
tomer base stayed on the sidelines. REUTERS runs parts of the business, according to plete response letter (CRL) from the US crore a year ago. Its revenue increased it is likely to sell additional equity soon to scaling nationally,” Bakingo
the terms of agreement. FDA rejecting its application for its insu- by 49.2% from a year earlier to ₹3462.3 pare down debt. Tambe did not specify co-founder Himanshu Chawla
Biocon Biologics has accelerated the lin, Aspart. It is now working on getting crore. Of this, Biocon Biologics reported a timeline or the quantum, but said that said in a statement.
Nepal to ban TikTok as it ‘disturbs process of integration, and is look- “discussions were active”. In 2016, Chawla along with
country’s social harmony’ ing to integrate the Viatris portfolio SETTING ThE STAGE “We will be looking at paring Shrey Sehgal and Suman Patra
within a year compared to the ear- down debt with equity infusion, and founded Bakingo.
Kathmandu: Nepal said Monday it will ban TikTok, citing the lier guidance of two years, he said. BIOCON Biologics ThE firm has ON 6 Oct, the firm ThE US FDA had we do have active interest in conver- “We admire how Himanshu,
app’s negative effects on the country’s social harmony. The popu- The company has achieved inte- reported revenue
of ₹1,969 crore, up
achieved integration
milestones for US
received CRL from
the US FDA rejecting
denied approval for
bevacizumab
sations for that. We will talk about Shrey, Suman, and the Bakingo
lar video-sharing platform, which has around one billion gration milestones for the US as well 97% from ₹997 crore and emerging its application for (cancer biosimilar) that as these discussions mature,” team have built an around Rs
monthly users, has faced restrictions in many countries for alleg- as emerging markets for Viatris, and in Q2FY23 markets for Viatris insulin Aspart in February Tambe added. 200 crore profitable brand that
edly breaking data rules and for its potential harmful impact on expects to complete the integration At a consolidated level, Biocon’s consistently delivers customer
youth. “The decision to ban was made today, and relevant author- in Europea by the third quarter, and net debt was at $1.25 billion, exclud- delight across the country.
ities are currently addressing the technical issues,” minister for the rest by the end of FY24, Tambe said. the approval. “It is a sizable market with revenue of ₹1,969 crore, rising by 97% ing structured investments, the com- Even more impressive is that
communications and information technology Rekha Sharma “Once we’ve got control, we’re also no other biosimilar in play,” Tambe said from ₹997 crore in Q2FY23, following pany had said in July. they have built the company
said. Sharma said the decision was made because TikTok was looking at a few other triggers to make on the potential upside the company the Viatris deal. Meanwhile, the company received an bootstrapped, without any
consistently used to share content that “disturbs social harmony sure that the business is on the right expects from sales of Aspart. Tambe said the company could post approval from the UK regulator for Yes- external funding,” Faering
and disrupts family structures and social relations”. She did not track to get the right valuations before The US Food and Drug Administra- nearly 100% revenue growth due to the afili, the company’s biosimilar drug for Capital co-founder and manag-
specify what had triggered the ban. AFP we can talk about an IPO,” he said. tion (FDA) had also denied approval for Viatris business and had also been able macular degeneration. ing director Sameer Shroff said.

‘Broadband, FWA to increase Go Digit net at ₹36 cr for FY23

sales amid slowing 5G rollout’ Aman Rawat
aman.rawat@livemint.com
bled its gross written premium
from ₹3,243 crore in 2020-21.
In comparison, the general
Gulveen Aulakh

in India was one of the fastest
gulveen.aulakh@livemint.com globally, with the two telcos
New DeLhi setting up more than 370,000
sites in a year, massively front-
G
o Digit General Insur- insurance industry’s premi-
ance Ltd, backed by ums grew 16.4% to ₹2.6 trillion
Fairfax India Holdings, in FY23 from ₹2.2 trillion in
posted net profit of ₹36 crore the previous fiscal year. It also

F
innish telecom gear man-
ufacturer Nokia is expect-
ing the next wave of 5G
site deployment to stem from
increasing broadband reach,
fixed wireless access, as well as
a surge in 5G smartphone use.
This comes as telecom firms
plan to cut capital expenditure
on 5G sites for the short term,
having successfully launched
the fastest 5G network globally
within a year, starting October
loading capex between Octo-
ber 2022 and October 2023.
The companies are aiming
for a nationwide 5G rollout in
India by March, though major
deployments have been com-
pleted.
Nokia’s president and chief
Malik said the development
of use cases for 5G and moneti-
zation strategies by telecom
executive Pekka Lundmark
in 2022-23, marking a notable
turnaround from ₹296 crore
net loss in FY22, following its
efforts to improve its perform-
ance in managing claims and a
significant rise in assets under
management (AUM).
The initial public offering-
bound company also reported
a net profit of ₹58 crore in the
Go Digit surpassed the general
insurance industry in top-line
growth in FY23. ISTOCKPHOTO
means the company now has a
market share of around 2.8%
based on gross direct premium
during FY23.
Gross written premium for Didi’s comeback and eventual re-listing would offer a strong
the insurance sector refers to signal of Beijing’s renewed support for the tech sector. REUTERS
the total revenue derived from
both direct and assumed pre-
miums, excluding ceded rein-
surance or commissions.
Didi posts 1st profit

executive, Pekka Lundmark,

2022.
“There will be some modera-
tion in 5G rollout. But, once the
use cases of fixed wireless
access and broadband increase
5G devices will start increasing
as well as capacity utilization.
said net sales for mobile net-
works fell 19% from a year ago
as “we saw some moderation in
the pace of 5G deployment in
India, which meant growth was
no longer enough to offset the
slowdown in North America”.
companies will support ven-
dors to move beyond the cyclic
trough period.
With fixed wireless access
expected to be adopted faster
by consumers than enter-
prises it will influence moneti-
zation and increased data pro-
cessing demands for telcos,
necessitating installation of
first quarter of FY24, hinting
at the possibility of improving
its profitability further.
Go Digit declined to com-
ment on VCCircle’s queries.
Fairfax and Kamesh Goyal
hold an 83.5% stake in Go Digit
via GoDigit Info-
works Services Pvt.
Ltd , a joint venture
45.7% stake, respectively. It is
backed by mid-market private
equity firms Faering Capital,
TVS Capital, and venture capi-
tal firm A91 Partners as well as
cricketer Virat Kohli and actor
Anushka Sharma.
In FY23, Go Digit
surpassed the gen-
eral insurance indus-
Go Digit’s gross direct pre-
mium stood at ₹1,989 crore in
the first quarter of FY24. If the
since 2021 ahead
company improves this rate, it
could end the fiscal with gross
direct premiums of $1 billion.
Its claim ratio—percentage
of Hong Kong IPO
of claim costs incurred in com- Bloomberg businesses while enhancing
parison to premiums earned— feedback@livemint.com our product and service capa-
has further improved in FY23 bilities,” Cheng, also Didi’s

Then we will again increase on
5G and rollouts will start hap-
pening again,” Nokia’s senior
vice president and head, India,
Sanjay Malik, said in an inter-
view with Mint.
Nokia’s president and chief
India sales were up 102% to
€567 million for the quarter on
the back of Reliance Jio and
Bharti Airtel’s roll out 5G net-
works. India is now the third
largest market for Nokia.
The first phase of 5G rollout
additional network capacity,
he added.
At present, it imports FWA
equipment and is evaluating if
domestic demand will be ade-
quate to make them locally,
Malik said.
entity, while the rest
is owned by private equity
funds, individuals as well as
other entities.
Fairfax through FAL Corp.
and Goyal along with his entity
Oben Ventures hold 37.8% and
try in terms of top-
line growth. It registered 37%
growth in gross written pre-
mium from ₹5,268 crore in the
previous financial year to
₹7,243 crore. Notably, within
just two fiscal years it has dou-
to 67% from 74% a year ago.
Go Digit, founded in 2016,
offers various products such
as auto, health, travel, con-
sumer goods, home and shop
insurance primarily to retail
clients.
D
idi Global Inc. posted chief executive officer said in a
its first profit since rare statement since resolving
2021, sustaining the the investigation.
Chinese ride-hailing leader’s Once hailed as a national
gradual recovery ahead of a champion that drove Uber out
2024 Hong Kong listing. of China, Didi’s rapid downfall
China’s answer to Uber during Beijing’s tech crack-
Technologies Inc. posted a net down of 2021 and 2022 has
income of 107 million yuan come to encapsulate the
($14.7 million) in the third uncertainty of private-sector

‘Regulations important, but should not stifle innovation’ quarter, after it resumed regis- entrepreneurship during Xi
tering new users in January. Jinping’s reign.
Revenue in the September Didi’s comeback and even-
quarter rose 25% to 51.4 billion tual re-listing would offer a
Shouvik Das sary guardrails in place, so that the industry, academia and “At the Summit, we spoke yuan, the company said in a strong signal of Beijing’s
shouvik.das@livemint.com we don’t get AI causing harm,” governments. This should be about the need to have safe, statement on renewed support
New DeLhi she added. the way forward.” trusted AI platforms, and dis- Monday. Didi said it for the tech sec-
Gangadharan said regula- Leading tech figures, tinguishing them from The results has authorized tor, which is

R
egulations on artificial
intelligence (AI) will
play a crucial role in
guiding enterprises, but it’s
essential for governments to
ensure that laws do not stifle
innovation, said Sindhu Gan-
gadharan, managing director
of German enterprise firm SAP
Labs India, and vice-chairper-
son of industry body Nasscom,
in an interview.
This will foster the develop-
ment of diverse India-specific
use cases across industries, all
centered around AI, she said.
“At a policy level, we’re clear
that we’ve so much bandwidth
in innovation. As a result, we
should definitely not apply the
brakes on it. This is fundamen-
tal, but at the same time, it is
also important to have neces-
tors must strike the right bal-
ance to innovate for the multi-
tude of use cases. “In the India
context, there’s so much that
we can do with AI in health-
care, education, agriculture
and so on. You can’t stop inno-
vation in these areas, but these
would require guardrails
when it comes to deploying
and using AI.”
SAP is offering several
large language models
(LLMs) for its clients, and is
also building its own LLM to
source to businesses, chief
technology officer Juergen
Mueller, said in an interview
on 6 November.
This expertise will be cru-
cial for policymakers to tap
from enterprises, Gangad-
haran said. “Everyone is get-
including Elon Musk, Mark unsafe, untrusted platforms. suggest Didi is a $1 billion needed more
Zuckerberg, Satya Nadella, We proposed that AI should making headway share-buyback than ever to
and Sundar Pichai, have advo- not be demonized—in India, in an effort to
programme that revive a sputter-
cated for a unified global regu- and around the world, it rep- regain market ing Chinese
latory framework. resents a mas- share lost since will take place in economy. It
On 1 November, On 1 Nov, 28 sive opportu- 2021, when regu- next 24 months would shore up
28 n a t i o n s , nations, took the nity. So, it must lators launched a confidence for
including the US, first step towards not be demon- probe into its data private enterprise
the UK, China, establishing ized and regu- handling and forced it to delist after years of regulatory scru-
and India, took lated out of exis- from the New York Stock tiny humbled corporate lead-
common
the first step tence and inno- Exchange. That chilled busi- ers from Tencent Holdings
towards estab- regulatory vation. We ness expansion, drove Ltd. to Alibaba Group Holding
Sindhu Gangadharan, managing director of SAP Labs India, and lishing common guidelines on AI spoke about who co-founder Cheng Wei from Ltd., both Didi backers.
vice-chairperson of industry body Nasscom. regulatory guide- will determine the public spotlight and The company is planning a
lines on AI. safety and trust. allowed rivals such as Meituan public re-listing in Hong Kong
ting wary, but whether they approach is being taken in At the press briefing on 3 We also discussed four harms to encroach on its turf. In a sig- next year, propelled by grow-
understand AI to the fullest is Germany, and it is very clear November, Rajeev Chandrase- coming out of AI, including nal to investors, Didi said it’s ing signs that its business is
difficult to answer. In India, that government officials are khar, union minister of state workforce disruption, pri- authorized a $1 billion share- recovering since it restored its
our government is closely not technologists. As a result, for IT, said India intended to vacy impact on individuals, buyback program that will main apps to mobile stores
working with enterprises to they need to work with tech- advance the global dialogue on harms that are non-criminal, take place over the next 24 earlier this year. Didi nar-
make sure whatever they do nology companies, and aca- AI at the Global Partnership on and weaponization and crim- months. rowed net losses and grew
is in line with technology demia, to strike a super Artificial Intelligence Summit inalization of AI,” Chan- “In the future, we expect to sales more than 52% in the
advancements. A similar important triangle between in Delhi in 2023. drasekhar said. continue expanding our core June quarter.
04 Tuesday, 14 NoveMber 2023
MuMbai 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 PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE

64,933.87 -0.50 19,443.55 -0.42 17,318.60 -0.24 45,986.70 0.10 19,475.70 -0.35 32,817.65 0.10 38,814.07 -0.01
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

65,259.45 65,158.31 19,525.55 19,486.75 17,361.10 17,335.00 45,942.95 45,898.20 19,544.45 19,508.60 32,783.34 32,788.48 38,816.08 38,915.47
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

65,176.96 64,853.36 19,494.40 19,414.75 17,339.15 17,278.65 46,009.85 45,739.65 19,515.20 19,436.60 32,857.72 32,635.27 38,915.76 38,613.06

m MINT SHORTS
South African bonds post best
Rivals may dull Muthoot’s shine
returns in emerging markets Harsha Jethmalani
Limited cheer under auction and that the customers can ramp up disbursements,” said a Kotak
After months of under-performance, South Africa’s harsha.j@htlive.com get those assets back once the payment of Institutional Equities report.
Muthoot Finance's gold loan segment assets under management was
local-currency bonds are generating some of the highest robust in Q2FY24, aided by a low base
dues (principal and interest) is cleared, At the group level, it opened 331 new

G
returns among emerging-market nations in a relief rally old is a safe haven in tough
that’s set to continue into year-end.Yields on govern- times and the ongoing
ment securities reached a post-pandemic high in Sep- geopolitical tensions could
tember, making them the worst performers in emerging keep the yellow metal pri-
markets at the time after Turkey, amid a relentless selloff cey. In turn, this should
fuelled by concerns about a burgeoning budget deficit. drive demand for gold loan providers
Since then, they’ve earned 6.8% in dollar terms, more such as Muthoot Finance Ltd. But so far
than four times the 1.6% average return of developing in this financial year, Muthoot has lost
markets tracked by Bloomberg, and bettered in the period some of its spark with sequentially
only by Hungary and Colombia. The recovery started as declining gold loan assets under man-
global bonds rallied on speculation the Federal Reserve agement (AUM) growth and contracting
is done hiking interest rates. It gained impetus after net interest margin (NIM). The chal-
South Africa’s mid-term budget on 1 November, when lenge for Muthoot is to maintain its loan
the government reassured investors that issuance of growth and margin expansion simulta-
nominal bonds would not rise. BLOOMBERG neously. Here, competition, rising cost
of funds and elevated operating
expenses pose as key hurdles.
In this context, Muthoot’s September
quarter (Q2FY24) results have failed to
cheer. Among the key highlights, gross
AUM of its mainstay gold loan business
rose 21% year-on-year aided by a low
base, but quarter-on-quarter growth
was muted at 2% (versus 7% in Q1FY24)
to ₹69,002 crore. The management is
confident of achieving 14-15% AUM
growth in FY24. Reported net interest
margin (NIM) fell to 10.88% in Q2 from
11.58% in Q1 and 12.26% in Q4FY23
Gold loan assets under management (in  crore)
the management explained. branches in H1FY24. Its measures to
Year-on-year growth (in %) (right-hand scale)
But after a dull Q2, the road ahead may boost customer base are among the fac-
70,000 35
not be smooth for Muthoot. Competitive tors that have aided sentiment towards
intensity is stiff. Post the covid-19 pan- the stock. So far in 2023, the Muthoot
60,000 30
demic, due to lack of growth in other stock has rallied by 21%, marginally ahead
segments, banks entered gold lending. of close competitor Manappuram
50,000 25 NBFCs followed suit. Mut- Finance Ltd, but outperform-
hoot’s management does LOSinG ing Nifty50 by a wide margin.
40,000 20 not see increased competi- AppEAL Muthoot’s diversification
tion as a threat yet. But ana- to other lending segments
30,000 15 lysts are wary, especially MuTEd sequential will also be monitored, given
about competition from gold loan AUM
growth, declining
the cyclical nature of the gold
20,000 10 banks. “We see competition NIM were dampers lending business. Its consoli-
intensifying as banks scale in Q2FY24 results dated AUM rose 24% year-
10,000 5 down growth in unsecured on-year in Q2FY24. The
loans in favour of higher- WiTh rising cost of management aims at a grad-
borrowing and
0 0
yielding secured loans,” said competition, the way ual calibrated growth in non-
H1FY21 FY21 H1FY22 FY22 H1FY23 FY23 Q2FY24 Nuvama Research. ahead could be gold loan business compris-
9MFY21 Q1FY22 9MFY22 Q1FY23 9MFY23 Q1FY24
Against this backdrop, bumpy for Muthoot ing microfinance, housing
Note: Data as on end of the mentioned period Source: Company, Motilal Oswal Financial Services
Muthoot will have to up its finance, vehicle loans, per-
PRANAY BHARDWAJ/MINT
game on customer acquisi- sonal loans and corporate
owing to rising cost of funds along with Muthoot sold loans worth ₹700 crore tion, which depends on its branch loans. Over the next five years, Muthoot is
declining yields. The management from its total non-performing assets expansion strategy. “After Reserve Bank keen on increasing the proportion of
expects cost of funds to inch up from (NPAs) to Asset Reconstruction Company of India’s approval for opening 150 non-gold businesses to 18% from present
8.46% in Q2 to 8.6% ahead. Nonetheless, of India (ARC). This move would allow the branches in Q1FY23, Muthoot opened 13%, the management said. While the
the management aims to maintain mar- customers more time to repay loans. The 122 branches during Q2FY23-Q4FY23. company is taking steps in the right direc-
gin and spreads by passing higher inter- rationale behind the ARC transaction was We expect these branches to scale up, tion, the measures would yield results
est cost to borrowers. to maintain NPA levels steady, with an augmenting growth in H2FY24E, as it over a period of time, leaving limited trig-
Interestingly, for the first time ever, aim that customers’ gold assets are not takes one-two years for new branches to gers for the stock in the near term.

The slowdown of producer-side price growth this year is in

line with the BOJ’s view that inflation is moderating. AFP After rough Q2, Devyani International awaits demand rebound
Japan’s input inflation slows Dipti Sharma ance of Devyani’s core brands Against this backdrop, Devy- world Ltd is banking on the fes-
Downward slope
below 2%, first time since 2021 dipti.sharma@livemint.com KFC and Pizza Hut has been Devyani International's same store sales ani has moderated its net new tival season for recovery in Q3.
The pace of gains in Japan’s producer prices decelerated subdued in recent quarters. In performance has been discouraging in store guidance for FY24 to 250- Still, margin is something

A
more than expected in October to the weakest in over two t a time of slowing the September quarter the recent quarters 275, from 275-300 earlier. In that investors might have to
years, supporting the Bank of Japan’s view that inflation demand, store closures (Q2FY24), KFC and Pizza Hut 15 Q2, it increased store count by keep a tab on, considering
is cooling. A measure of input prices for Japanese firms and lowered sales same store sales fell by 4% and Same store sales growth (in %) 68 in the September quarter, higher input costs. In Q2, Devy-
10
rose 0.8% from a year earlier, the slowest pace of growth growth guidance are like cau- 10.4%, respectively. This marks KFC Pizza Hut taking the total count to 1,358. ani’s gross margin expanded
since gains resumed in March 2021, the Bank of Japan tionary road signs for investors the second and fourth consecu- 5 The company remains dedi- year-on-year, but Ebitda mar-
reported Monday. The data compared with economists’ in shares of quick service res- tive quarter of drop in same- 0 cated to reaching 2,000 stores gin fell. Ebitda is earnings
expectations of a 0.9% increase year-on-year. From the taurant operators. Devyani store sales for KFC and Pizza by 2026. before interest, tax, deprecia-
-5
prior month, prices fell 0.4%, compared to the consensus International Ltd is a case in Hut, respectively. Same-store Investors have now pinned tion and amortization.
view of a 0% change. The data came out weaker than the point. Lately, it has expressed sales measure the comparable -10 their hopes on Q3 when there is Devyani’s shares have under-
2.8% gain in core consumer prices measured in Septem- concerns over demand and low- sales over a particular period. -15 a typical seasonal boost to performed the Nifty 500 in the
ber, meaning inflation for materials was slower than the ered its store expansion projec- In Q2, Devyani also saw a Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 demand owing to festivities. last one month, dropping by
Source: Company
most recent reading of the central bank’s benchmark tion for FY24. drop in average daily sales at Devyani expects Q3 to be better 14%. Investors will watch how
PRANAY BHARDWAJ/MINT
gauge for the second consecutive month. The October Devyani, a franchisee of Yum KFC and Pizza Hut. KFC’s sales than Q2. This time, Q3 would near-term recovery in same
data for consumer inflation is due on 24 November. The Brands, operates KFC, Pizza were impacted owing to the period of Shravan this year, brunt of stiff competition in the also be aided by the World Cup, store sales growth shapes up,
slowdown of producer-side price growth this year is in Hut and Taco Bell restaurants in general slowdown in demand when a large part of the Indian pizza category and customers especially during specific sig- which would in turn determine
line with the BOJ’s view that inflation is moderating and India. and more vegetarian days population avoids non-vegetar- shifting to its more affordable nificant matches. Even McDo- the margin trajectory and share
needs close monitoring. BLOOMBERG Same-store sales perform- owing to a prolonged religious ian diet. Pizza Hut bore the Flavour Fun range. nald’s operator Westlife Food- price movement.

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

Protean IPO Retail inflation hits 4-month low in Oct m MINT Q2 EARNINGS TRACKER
up 12.5% on FROM PAGE 1 tinue as RBI’s decision will also Chaudhuri, chief economist at
The combined revenue of the companies that have declared their September-quarter financial results so
far has risen 5.2% year-on-year, while net profits have risen 42.8%, a Mint analysis showed. Excluding the
companies in the banking, financial services and insurance (BFSI) sectors, the topline contracted 0.3%,
day one, post year earlier. Food inflation was
at 6.62% in September, accord-
depend on the US Fed and
European Central Bank’s deci-
sion on interest rates,” he added.
Piramal Enterprises Ltd.
However, Chaudhuri cau-
tioned that if food prices turn
while profits were up 52.2%.
The analysis covered 3,013 BSE-listed companies (including 466 banking and financial services firms) that
had declared their results by Friday and whose data was available on Capitaline’s database.
muted debut ing to data released by the min-
istry of statistics and pro-
At its latest rate-setting meet-
ing in October, the central bank
volatile in the coming months,
retail inflation could soar again.
Most companies have announced their results in the ongoing results season, with some set to do so this week.
Q2 results so far, BSE-listed firms Upcoming key results this week
gramme implementation. kept the repo rate unchanged at “Indian agriculture contin-
Mayur Bhalerao Reduction in food and cook- 6.5%. Earlier this month, the US ues to depend largely on rain- Total: 3,013 companies Excl. BFSI: 2,547 companies Indiabulls Housing Finance
MMTC
mayur.bhalerao@livemint.com ing gas prices led to lower retail Federal Reserve held the key fed irrigation, making the pre-
Natco Pharma
MUMbAI inflation in October, said N.R. interest rate in a target range vailing El Nino conditions a sig- Aggregate revenue ₹28.5 tn (5.2%) ₹21.1 tn ( -0.3%) Rajesh Exports
Bhanumurthy, VC at Dr. B.R. between 5.25%-5.5%, where it nificant threat. However, Trident Tuesday

P
rotean eGov Technolo-
gies, formerly NSDL e-
Governance Infrastruc-
ture, had a muted debut on the
exchanges on Monday, but
closed 11.5% higher, allowing all
but one of the selling share-
holder to secure decent gains.
The stock opened for trading
at its issue price of ₹792. It rose
as much as 12.5% during the
day, before trimming some of
the gains to close at ₹883.
“Seven of the company’s 15
investors sold a small portion of
their stakes to help achieve the
listing status, but all existing
shareholders are invested and
believe in the company’s
growth story,” Protean eGov
Technologies Ltd’s managing
director and chief executive,
Suresh Sethi told Mint. “The
price band was set after taking
inputs from shareholders and
investors. The book running
lead manager recommended
Ambedkar School of Econom-
ics University, Bengaluru.
Last month, the Union cabi-
net approved a hike of ₹100 for
cooking gas subsidy under the
Pradhan Mantri Ujjwala Yojana
(PMUY), helping beneficiaries
get a total subsidy of ₹300 per
LPG cylinder at market price.
However, an increase in
international oil prices due to
the conflicts in Israel and
Ukraine and further volatility
in food prices, especially of sta-
ple vegetables like onions and
tomatoes, and pulses, continue
Newcomer frenzy in options market worrisome: NSE chief Chauhan
Ram Sahgal
ram.sahgal@livemint.com
MUMbAI
Food inflation slowed to 6.61%
in October. HT
to pose inflationary risks, Bha-
numurthy said.
“RBI’s decision on the inter-
est rate (during its bi-monthly
monetary policy meeting in
December) will depend on sev-
eral factors, including the
exchange rate and oil prices. We
expect the status quo to con-
had not varied as much daily,
implying that the number of
participants had not shot up
dramatically.
has been since July.
Similarly, in late October, the
European Central Bank ended
its run of interest rate hikes
when it kept the interest rates
unchanged at 4% after 10 con-
secutive hikes that began in
July 2022. “In my opinion, RBI
may wait this time to ensure the
US Fed maintains its rate pause
during its mid-December
meeting in the best interest of
the Rupee’s stability. Assuming
the Fed maintains its stance, I
expect the first rate cut in India
in Q4 FY24,” said Debopam
supply-side disruptions like Aster DM Healthcare 14 November
these may not entirely be in the Aggregate net profit ₹2.9 tn ( 42.8%) ₹1.7 tn ( 52.2%) KNR Constructions
realm of monetary policy, with Kalyan Jewellers India
Figures in brackets denote year-on-year change for the same
rate hikes having minimal set of companies. BFSI: Banks, financial services, and insurance. NMDC
transmission impact to control Standalone data used. NMDC Steel
high food prices caused by low
Year-on-year change in aggregate results (in %) Number of companies: 3,013
productivity,” he added.
Meanwhile, among states, Revenue Profit
Chhattisgarh and Delhi Q3FY23 18.1 4.6
reported the slowest retail infla-
tion during October at 2.44% Q4FY23 12.4 15.0
and 2.48%, respectively, while Q1FY24 7.0 38.2
states such as Odisha (6.47%),
Rajasthan (6.25%), Haryana Q2 FY24 5.2 42.8
(6.02%) and Karnataka (5.63%)
Analysis by Payal Bhattacharya Standalone data used Source: Capitaline, Mint calculations, Bloomberg
recorded the fastest price rise.
SATISH KUMAR/MINT
may look like you’re trading a over is ₹ 79.24 trillion or just “Broadly speaking, we have “Today, we might not be able
lot on a notional basis, the pre- 0.18% of the notional turnover. not seen a large increase in the to find out the difference
mium turnover is not varying as Buyers of an option have to number of people trading between who is a day trader, an
much daily.” pay sellers a premium to be able derivatives. We have seen more expert and who is a newcomer

the pricing,” he added.
The firm secured ₹490.33
crore through the offer for sale
and NSE Investments, NSE’s
investment arm, logged the
biggest profit of at least ₹131.4
crore among selling sharehold-
ers .Protean eGov issued shares
at just ₹55 to NSE Investments.
HDFC Bank and Axis Bank,
which acquired the shares for
₹49.50 and ₹112, made profits
of ₹52 crore and ₹48 crore,
respectively.
N
ewcomers to the equi-
ties market should
focus on long-term
investment instead of dabbling
in derivatives, especially if they
lack the expertise in trading on
futures and options (F&O), said
Ashishkumar Chauhan, MD
and CEO of NSE.
However, he said in the same
vein that while the notional
turnover of options seemed to
suggest very large trading
interest, the premium turnover
Terming the fetish for deriv- Notional turnover is a prod- to purchase or sell or less consistent and those are the things we
atives, particularly options, uct of the contract unit and its an underlier like Buyers of an numbers of par- should be able to put in place at
among new investors “worri- current price, while premium Nifty or Bank option have to ticipants, which is some point of time to separate
some,” he said, “We should turnover is the price at which Nifty, which are pay sellers 35-40 lakh in any and differentiate in terms of
motivate new investors to go the contract can be actually cash-settled con- to be able to quarter in the last statistics.”
toward longer-term invest- purchased and sold in the mar- tracts. three years.” He His comments come against
purchase or sell
ments through the cash seg- ket, or the market value. It is the While the also said that the backdrop of Sebi mandat-
ment of the exchanges and if product of premium and the notional turnover an underlier while those trad- ing that each contract note
they don’t have the expertise Ashishkumar Chauhan, MD contract unit. of index options like Nifty ing options might issued by brokers run a set of
(for derivatives) they should be and CEO of NSE. PTI In the case of index options rose by 15% so far be categorized as disclaimers to caution retail
on the cash segment all the (Nifty and Bank Nifty mainly) this fiscal year small investors, investors about the pitfalls of
time,” he said on the sidelines focused in the last half hour or the notional turnover so far this from the whole of FY23, the they might be day traders and derivatives trading, one such
of the muhurat trading on Sun- last two hours on the expiry day fiscal year stands at ₹42,977 tril- premium turnover is still lower experts and not just a lot of being that nine out of ten trad-
day. “Trading tends to be of the options and although it lion while the premium turn- by 28% from that in FY23. newcomers. ers in options lose money.
LIVEMINT.COM CORPORATE Tuesday, 14 NoveMber 2023
MuMbai 05

KG basin oil
production Festive weekend drives up
to begin in
Nov: ONGC
sales of cars, two-wheelers
PTI
feedback@livemint.com
NeW DelHI Dhanteras-Bhai Dooj period could see PV sales surge up to 21% as availability rises

S
tate-controlled Oil and
Natural Gas Corporation Alisha Sachdev
(ONGC) will kick off oil alisha.sachdev@livemint.com
production from its much-de- NeW DelHI
layed flagship deepsea project

in Krishna Godavari basin in
the Bay of Bengal this month,
helping reverse years of decline
in output, a senior company
official said.
“We plan to start producing
from the Cluster-2 project in
KG-DWN-98/2 block this
month and slowly ramp up,”
ONGC Director (Production)
Pankaj Kumar told PTI.
A floating production unit,
called FPSO, which will be used
to produce oil, is already in the
block. After several missed
deadlines, ONGC has told
Shapoorji Pallonji Oil & Gas
(SPOG) that its floating produc-
tion, storage and offloading
vessel (FPSO) Armada Ster-
S
ales of passenger vehicles
(PVs) and two-wheelers
surged over Dhanteras and
Diwali, lifted by festive spirits
and better availability of
products compared with last year.
Many Indians prefer taking deliver-
ies of new vehicles and purchasing big-
ticket items like homes and household
electronics during the festive period,
especially in the Navratri week and on
the days of Dhanteras, Diwali and Bhai
Grasim Q2 net up
Dooj, particularly
in the northern and central parts of the
country.
15% at ₹1,163 crore
Maruti Suzuki expects industry-wide
deliveries of passenger vehicles during Naman Suri tization (Ebitda) on a consoli-
the Dhanteras to Bhai Dooj period naman.suri@livemint.com dated basis slumped 19% to
(10-15 November) to touch NeW DelHI ₹4,509 crore with a margin of
55,000-57,000 units, up 18-21% from 15%, the company said in an

ling-V should prepare to
receive the first oil this month.
Oil production from Clus-
ter-2 should have begun by
November 2021, but was
delayed due to the pandemic.
Kumar said ONGC plans to
start producing from three to
four wells initially and slowly
connect others. “Initial produc-
tion could be 8,000 to 9,000
barrels per day.” KG deepsea is
treacherous terrain and ONGC
is mindful of not repeating mis-
takes of neighbouring KG-D6
block of Reliance Industries.
While gas production is not
so complex in the area, sand
and water ingress in wells may
happen if oil valves are opened
too fast. The trick is to drill
more wells and produce at the
optimal quantities, not rushing
in to produce bigger volumes,
an official explained.
Kumar said ONGC will ship
the first consignment of crude
oil to Mangalore Refinery and
Petrochemicals Ltd (MRPL).
A
a year ago, said executive director Sha- ditya Birla group flag- exchange filing.
shank Srivastava. An estimated 41,000 passenger vehicles were delivered on Dhanteras, compared with 32,000 last year. MINT ship Grasim Industries On a standalone basis, the
“However, we should wait until Bhai Ltd on Monday said textile manufacturer reported
Dooj to get a clearer picture with actual surpassing last year’s figure by more With inventory levels rising to 60 sales, with most dealers Mint spoke to consolidated net profit for the a 24% decline in consolidated
retail figures as some deliveries also than double. It reflects a clear prefer- days, Federation Of Automobile Deal- across Pune, Rajasthan and New Delhi, second quarter rose 15.31% net profit to ₹794.74 crore,
take place on that day. For Maruti Suz- ence for Hyundai vehicles, especially ers Associations (Fada) had said that indicating a 20% and above increase in from a year ago to ₹1,163.75 from ₹1052 crore a year earlier.
uki, we delivered close to 21,000 units post the announcement of six airbags as November sales would serve as a criti- sales during Dhanteras and Navratri crore, aided by its cement and Standalone revenue from
on Dhanteras and are estimating deliv- a standard safety feature across all our cal gauge for c compared with the year before. financial services businesses. operations fell 4.49% to
eries of around 27,000 units for the models and variants,” said Tarun Garg, rmakers to assess demand and shape “Demand was very healthy for us, Consolidated ₹6,442.02 crore
Dhanteras-Bhai Dooj period,” Srivas- chief operating officer, Hyundai Motor their future production plans. especially in the 125cc and above revenue from Consolidated from ₹6,745.24
tava added. India. Vehicle registrations during scooter and motorcycle seg- operations rose total income of crore a year ear-
An estimated 41,000 pas- Luxury carmakers too saw Navratri, encompassing all ments. We’ve seen a 20% 1 0 % t o the company for lier as the over-
senger vehicles were deliv- record deliveries during automobile segments, growth over last year,” a ₹30,220.68 the quarter in supply in the
ered on Dhanteras, com-
pared with 32,000 last 10,293
units delivered by
Dhanteras and Diwali, soared a record 18%,
even as they grappled crossing the highs previ- 6.5%
increase in PV
Pune-based dealer for
TVS Motor Co. said.
crore.
Cement sub-
consideration
stood at
domestic market
of caustic soda
year, a growth of 38%. with global supply chain ously recorded in 2017. “We’ve seen a 37% sidiary Ultratech and lower realiza-
For carmakers, the sea- Hyundai India on disruptions which con- However, the impact of registrations during surge in our sales during Cement Ltd ₹30,505.27 crore tions in line with a
son marks a record in sales Dhanteras strained product availa- local elections and mar- Navratri period the Navratri to Bhai Dooj reported consoli- sharp decline in
volumes, continuing with bility in the country. “We ket saturation meant that period,” Nikunj Sanghi, dated net sales of global prices
the momentum seen through have seen record deliveries the festive spirit didn’t trans- owner of JS 4Wheels, a Rajast- ₹16,012 crore, up 15%, while impacted the overall standal-
the initial phase of the season, and during this year’s Dhanteras and late uniformly into sales across all han-based Hero MotoCorp dealer- financial services subsidiary one performance.
even the entire year. Every month in Diwali, underlining a strong customer regions, Fada said. ship group said, adding, “Hero Moto- Aditya Birla Capital reported The earnings beat a Bloom-
2023 saw production rise to a record, sentiment. However, supply chain-re- Passenger vehicle registrations Corp also commands a 70% share of the consolidated revenue of ₹7,721 berg poll estimate of ₹725.7
as the semiconductor chip shortage lated disruptions continue to affect spiked 6.5% in the 10-day Navratri market in this region so our sales were crore, up 13%. crore net profit and ₹6,190.7
that had marred production last year production of SUVs, especially the period (15-24 October) year-on-year to strong. We expect further momentum to Consolidated total income crore revenue in the quarter
eased. GLC. We expect these disruptions to 140,000 units, data released by Fada come from demand during the wedding for the quarter in considera- under consideration. Standal-
“Hyundai Motor India marked the continue in the coming months as showed. season, including the auspicious day of tion stood at ₹30,505.27 crore. one total income for the quar-
auspicious day of Dhanteras by deliver- well,” Santosh Iyer, MD and CEO, Mer- Meanwhile, two-wheelers saw Akha Teej which falls on 23 November,” Earnings before interest, ter in consideration stood at
ing an unprecedented 10,293 units, cedes-Benz India, said. strong double-digit growth in retail Sanghi said. taxes, depreciation, and amor- ₹7,202.34 crore.

Mfg sector to see sustained growth: Ficci

Rhik Kundu the firms achieving higher quarter.
rhik.kundu@livemint.com output in the previous quarter. However, demand also
NeW DelHI The survey, which covered remained a major limiting fac-
380 manufacturers that tor in realizing the manufac-

T
he manufacturing sector
expects to see sustained
economic activity and
higher investments in the
remaining two quarters of this
financial year, anticipating
improved demand, with more
than half of the manufacturers
surveyed by Ficci reporting
investment and expansion
plans, the industry body said
on Monday.
Ficci’s latest quarterly sur-
vey on manufacturing said the
growth momentum acceler-
ated in Q2, FY24, and is likely
to continue for the subsequent
quarters of FY 2023-24 even
amid a global slowdown.
However, the absence of
robust demand remains the
major constraint to the coun-
try’s manufacturing potential
About 80% of the respondents
said they had a higher number
of orders during Q2. MINT
in the coming quarters, it
added.
In its latest quarterly survey
on manufacturing, Ficci said
about three-fourths of busi-
nesses in the manufacturing
sector surveyed by the indus-
try body expect higher output
in the September quarter,
compared to a little over half
account for about ₹4.8 trillion turing sector’s true potential.
in sales, showed a robust 74% Global trade has slowed
capacity utilization and down due to persistent infla-
improved future investment tion and tighter monetary pol-
outlook during Q2. icy stance adopted by major
“In the Q1 April- global econo-
June 2023-24, Ficci said about mies. Conflicts
57% of the respon- three-fourths of in Ukraine and
dents reported businesses in the Israel have sent
higher production manufacturing oil prices higher,
levels. Further, not only increas-
sector expect
over 79% of the ing inflation, but
respondents higher output in also resulting in
shared a higher the Sep quarter higher import
level of produc- bills, leading to
tion in Q2 July- higher fiscal def-
September 2023-24,” the sur- icit and balance of trade chal-
vey said. lenges.
About 80% of the survey India’s domestic demand,
respondents said they had a especially in the rural
higher number of orders dur- regions, has also remained
ing Q2, due to the anticipation weak largely on the back of
of higher demand during the uneven monsoons.

US sees 35% jump in students from India MAKE YOUR

AP focused on recruiting in India,
feedback@livemint.com
WASHINgToN
hoping to tap a growing popu-
lation that the United
Nations predicted would over- MONDAY MORNING
I
nternational students take China as the world’s larg-

attended US universities in
surging numbers last year,
rebounding from a pandemic
slump with the help of a 35%
jump in students coming from
India, according to a study
released on Monday.
Overall, the number of inter-
national students in the US
grew by 12% in the 2022-23
academic year, the largest sin-
gle-year increase in more than
40 years, according to findings
PLAYFUL
est this year. Students from
India now outnumber those
from China in 24 US states,
including Illinois, Texas and
Michigan, which rank among
the top destinations for inter-
national students.
For the second consecutive Catch the latest section of
year, America’s graduate pro-
American colleges enrolled nearly 269,000 students from India, grammes were the main attrac-
more than ever and second only to China. ISTOCKPHOTO tion for international students,
the study finds. Graduate
century,” said Allan E. Good- getting even stronger and even enrolment grew by 21%, while

to solve a set of intriguing puzzles.

from the state department and
the nonprofit Institute of Inter-
national Education. More than
1 million students came from
abroad, the most since the
2019-20 school year.
“This reinforces that the US
remains the destination of
choice for international stu-
dents wishing to study abroad,
as it has been for more than a
man, CEO of the Institute of
International Education.
American colleges enrolled
nearly 269,000 students from
India, more than ever and sec-
ond only to China. Most came
for graduate programs, often in
science, technology and busi-
ness. “The US maintains a
strong relationship with India
on education, which I think is
more connected,” said Mari-
anne Craven, the state depart-
ment’s acting deputy assistant
secretary for academic
exchange.
China still accounted for the
most foreign students in the US
with 290,000, but its numbers
decreased for a third consecu-
tive year.
The US universities have
undergraduate numbers ticked
up 1%.
It reverses a trend from the
previous decade, which saw
undergraduates come in larger
numbers.
The surge nearly brings
international numbers back to
their pre-pandemic highs, with
a peak of almost 1.1 million stu- hindustantimes htTweets www.hindustantimes.com
dents in 2018.
06 Tuesday, 14 NoveMber 2023
MuMbai CORPORATE LIVEMINT.COM

Banks eye
Change of plans
The budget had set a ₹51,000-crore disinvestment target for
2023-24. With higher OFS, it would continue to bank on
selling small stakes in listed PSUs.
Tanishq sparkles as buyers batch of ’24
snap up premium products
Disinvestment receipts Disinvestment targets

FY19 (in ₹ tn) in engg, biz

FY20

FY21

FY22
schools
FY23 FROM PAGE 1
FY24*
0 0.5 1.5 1.5 2.0
High-end pieces now bring 13% of Tanishq sales; company looks to add more Zoya outlets numbers, the bank is definitely
expecting a significant spike in
*Receipts as of November 2023. Source: GoI
hiring requirements for the
SARVESH KUMAR SHARMA/MINT Suneera Tandon coming season. “Great thing

Govt may tap OFS suneera.t@htlive.com

NEw DElhI
about being a bank is the vari-
ety of roles that we offer; ran-
ging from treasury to market-

for disinvestments
T
itan Co.’s jewellery division ing, relationship management
is witnessing a surge in to strategy we continue to
demand for premium pieces, extend a wide range of career
priced above ₹5 lakh, indi- opportunities for young gradu-
in rest of FY24 cating a growing appetite for
top-tier consumer goods. These high-
end studded pieces now constitute 13%
ates. With growing focus on
data skills; we offered roles in
data analytics, machine learn-
FROM PAGE 1 The Union budget had set a of its flagship jewellery brand Tanishq’s ing and risk analytics domain as
target of ₹51,000 crore from portfolio (excluding solitaires). The well,” said Chadha.
since many investors are wary disinvestments in 2023-24. contribution was under 7% about five Queries emailed to Axis
of possible political changes, a With higher OFS, the govern- years ago, said a top company execu- Bank, Bank of Baroda and
senior economist said on condi- ment would be continuing with tive. Besides, Titan is also expanding its Deutsche Bank remained
tion of anonymity. the trend of banking on selling higher-end jewellery brand Zoya to unanswered till press time.
Queries to the finance minis- small stakes in listed PSUs, sim- keep up with the demand for luxury B-schools will start their
try remained unanswered. ilar to sales in the past three to goods. placement season in February
The government had started four years. Against a disinvest- While Zoya currently has eight while some of the engineering
work on large strategic disin- ment target of ₹65,000 crore in stores nationwide, it is actively looking colleges have started the pro-
vestments in IDBI Bank Ltd, 2022-23, the government to add retail outlets in existing and cess. Banks hire from campuses
Shipping Corp. of India Ltd, raised ₹31,106 crore, with the untapped markets. beginning November so that
BEML Ltd, Projects and Devel- bulk of it— ₹20,516.12 crore— The company’s move aligns with the they can also head to older IITs
opment India Ltd coming from the broader trend of premiumization Titan’s growth is aided by the sale of Tanishq’s solitaires, besides high-end collections in its portfolio. which start their placement
and HLL Lifecare The Union budget initial public across India, spanning categories such season from December.
Ltd, and was also had set a offering of Life as automobiles, real estate, timepieces raised their market share in the last 10 are independents,” he added. within a year, Chawla added. Zoya sells “Banks are also recruiting for
considering Con- target of Insurance Corp. and jewellery. years. Share of organized retail chains Titan’s jewellery division comprises jewellery for an average price of ₹6 their back-end IT and software
tainer Corp. of ₹51,000 crore of India Ltd. Sepa- “Tanishq has done a lot of work at the rose from 5% in 2016 to 35% by 2021, as Tanishq, Zoya, CaratLane and Mia by lakh-₹6.5 lakh.“Zoya has been growing maintenance roles, and hence
India Ltd; how- rately, OFS in premium and high-end and has grown per a report by the World Gold Council. Tanishq. In FY23, its jewellery division its footprint as well as its top line and the are willing to pay ₹19 lakh to
from
ever, none of these ONGC Ltd and significantly in the ₹5 lakh-plus cate- Chawla said at the top end of the mar- reported revenues of ₹31,897 crore number of customers year-on-year. If computer science and IT grad-
transactions are disinvestments Indian Railway gory, which is now contributing to 13% ket, the retailer faces stiff competition (excluding bullion sales), up 37% from a we go back to FY20, the Zoya business uates,” said the executive.
likely to be con- in 2023-24 Catering and of the brand. This is huge. It has been from local independent stores across year ago. was about ₹65 crore, and about ₹240 HR experts said banks have
cluded this year. Tourism Corp. growing at a very rapid clip if I look at Indian cities. The absence of a national Earlier this year, Mint reported that crore in FY23. This year, we are hoping traditionally hired management
Till November, Ltd (IRCTC) the last three to four years,” said that it will grow 40-50%. We have trainees from tier 1 B-schools
the government raised ₹8,000 fetched ₹3,026.23 crore and Ajoy Chawla, chief executive, jew- GLITTERING GROWTH been adding stores…” The company and sales professionals from sec-
crore from disinvestments, with ₹2,723.73 crore, respectively. ellery division, Titan. follows the fiscal year to report its ond- and third-rung manage-
more than half of it coming from In 2021-22, OFS in NMDC Growth is also aided by the sale ZOYA is actively IN FY23, Titan’s ZOYA’S store count TITAN is hoping that financial results. ment colleges. “Frontline sales
a 3% stake sale in Coal India Ltd Ltd, Hudco and Hindustan of Tanishq’s pricey solitaires apart looking to add retail
outlets in its existing
jewellery division
reported ₹31,897 cr
could double within
a year, says Ajoy
Zoya will deliver
business growth of
“In Bengaluru, we added. Chen- hiring has become challenging
through an OFS. About ₹3,700 Chemicals Ltd fetched ₹5,112 from celebrity-backed, high-end and untapped revenue, excluding Chawla, CEO of Titan 40-50% this year. In nai, Pune, and Kolkata are works in for banks and other financial ser-
crore came from selling 5.36% crore, of the total proceeds of collections in its portfolio. “We will markets bullion sales jewellery division FY23, it was ₹240 cr progress. Ahmedabad we opened vices firms. Attrition is very high
in Rail Vikas Nigam Ltd, 4.92% ₹13,530 crore. Its target in the continue to launch collections new stores, in Hyderabad also we and the cost of hiring in the mar-
in SJVN Ltd and 7% in Housing fiscal year was ₹1.75 trillion. because our headroom for growth have added, and hopefully in Chan- ket is much higher, as employ-
And Urban Development Corp. In 2020-21, it conducted OFS in high-value studded space is very luxury jewellery chain presents a “huge Titan is also increasing its focus on pre- digarh also in some time…besides we are ees from other banks would ask
Ltd (Hudco) last month, all in Hindustan Aeronautics, Bha- high,” Chawla added. opportunity” for Tanishq, Chawla said. mium watches priced above ₹25,000. looking for one store each in Mumbai for 25-30% hikes to join,” said
through the OFS route. Mean- rat Dynamics, IRCTC, Steel India is among the largest consumers “Between Tanishq, which caters to The company is seeking to cash in on and Delhi. We are at eight stores now, Veinu Nehru, managing part-
while, the plan to sell 5-10% of Authority of India, Ircon Inter- of gold globally. While small independ- certain design language and Zoya offer- the growing demand for such time pie- with the work going on...hopefully by ner, Fynehand Consultants.
Hindustan Zinc Ltd through an national, Tata Communications ent retailers still dominate the market, ing a different design language, the ces among fashion-savvy consumers. next Diwali we should be at 14 or 15 devina.sengupta@live-
OFS is hanging fire. Ltd and Rail Vikas Nigam. jewellery chains have significantly opportunity is huge. Big players there Zoya’s store count could double stores of Zoya,” he said. mint.com

India's wanderlust set for holiday season take-off

Overseas travel is now past pre-covid levels after a sharp growth run since 2022 Indian passport holders can enter 25 countries without the need for a visa
Month-wise Indian nationals’ departures between 2018 and 2023, in million Type of visas required by Indian nationals for foreign travel
By Nandita Venkatesan and Payal Bhattacharya 2.46
2.5 Visa-free e-Visa Visa on arrival VoA/e-Visa Traditional visa required
nandita.venkatesan@livemint.com
2.24 31%
ndian globetrotters are in for a big festive
cheer as Thailand has recently announced Year-on-year growth in
2
visa-free entry for Indian citizens for six number of outbound
months. Sri Lanka has also waived visa fees Indian travellers this year
for six countries including India; Kazakhstan, until September, to over
1.5
Azerbaijan 20 million
too, has introduced visa-free entry for Indians
up to 14 days. With outbound travel surging, Vietnam
Thailand
countries are clearly jostling to woo Indian 1
Malaysia 41%
tourists. No wonder the Indian passport has Share of outbound
grown stronger with time: it now gets easier Sri Lanka travellers who stated
visa access (this includes various kinds of 0.5 'travel and leisure' as the
Australia
non-traditional access, including visa-free Zimbabwe reason
entry) to 57 nations, up from 52 a decade ago,
0 Source: Passport Index, Arton Capital, Mint research
according to Henley Global. By another
count, almost 25 countries give Indians
Jan 2018 Sep 2023 Indian tourists to Sri Lanka will need an electronic tourist authorization but visa fee has been waived till 31 March 2024. 80 million
Seychelles needs tourist registration; pre-enrolment needed for Cote d'Ivoire. Visa-free entry in most cases applies Number of foreign trips
visa-free access. Source: Ministry of tourism only to a limited period of stay.
Indians could make in
Indians, on their part, are also eyeing
Vietnam, UAE, Azerbaijan the How much money you will need to spend for your foreign trip South Asian destinations are the 2040, up from 13 million
accessible and affordable tourist destinations in 2022
with fewer visa hassles. McKinsey has stated biggest hits among prospective Indicative cost of travel for two persons, select destinations, in ₹ lakh flavour of the season
in a report that “the world could see a wave travellers Year-on-year change (%) in number of Indians
Flight cost Average travel cost Visa fees
Top 10 destinations searched by
of Indian travellers in the coming decade”. Indians on EaseMyTrip in 2023
visiting southeast Asian nations in 2023 50+
Data shared by EaseMyTrip with Mint showed US 2.05 2.36 244 The number of marketing
destinations such as Vietnam, Seychelles, Rank Country campaigns Thailand has
Japan and even Azerbaijan are among the #1 Vietnam UAE 0.94 2.09 rolled out targeting
most-searched overseas destinations by 191 Indians
#2 Dubai (UAE) 172
Indians this year. Some have responded to France 0.99 2.05
the demand with attractive policies: #3 Azerbaijan
Azerbaijan promises a new system to process
2019
#4 Japan Austria 0.93 1.30 103 The year when the first
electronic visas within three working days. direct flight to Vietnam
Based on travel during 26-31 Dec 2023,
A travel cost analysis shows a couple can #5 Thailand 1.29 between New Delhi and the respective 74 was launched by IndiGo
Singapore 0.68
make a hearty plan to exotic Asian country's capital city, staying in a
#6 Indonesia standard two-person room. Costs
destinations in less than ₹2 lakh. Vietnam and
Thailand 0.62 0.94 could vary widely for each tourist.
603,000
Indonesia are among the cheapest, thanks to #7 Hungary Cheapest flights chosen; travel cost Philippines
better accessibility with direct flights, and includes accommodation, transport, Approximate number of flight
#8 Seychelles Vietnam 0.78 0.51 food and entertainment, based on data Myanmar Indonesia Cambodia Thailand Singapore
-9 bookings to Thailand in 2023
even favourable forex rates. As you draw up crowdsourced from travellers on on EaseMyTrip
your travel plan this holiday season, we give #9 New Zealand budgetyourtrip.com. Visa fee excludes
Last available period taken for 2023. Data for Philippines is for February-October;
Cambodia for January-August; Myanmar for January-May; rest of the data for
you a lowdown and a helping hand on what Indonesia 0.68 0.48 service charges; cost is for a
#10 Austria single-entry visa.
January-September.
you can expect. Source: Individual government tourism or statistics Source: McKinsey, EaseMyTrip and
Source: EaseMyTrip Source: Skyscanner, Budgetyourtrip, VFS Global, country embassies ministry websites, Mint calculations Mint research, ministry of tourism
GRAPHIC: PARAS JAIN/MINT
LIVEMINT.COM CORPORATE TUESDAY, 14 NOVEMBER 2023
MUMBAI 07 Tuesday, 14 NoveMber 2023
MuMbai 07

Airlines are seeking tie-ups Boeing goes big at

Dubai Airshow,
with Air India: CMD Wilson while airbus waits REFILLABLE
Bloomberg
feedback@livemint.com MARKERS
The way India’s 37 million strong diaspora is served is going to change, says Wilson
B
oeing Co. opened the

Anu Sharma Air India has codeshare with
anu.sharma@livemint.com
NEw DElhI
international airlines such as LOT
Polish, Egypt Air, Hong Kong air-
lines, Singapore airlines, Air Mauri-
FULL SIZE
Dubai Airshow with a
flurry of orders led by a
whopping $52 billion wide-
body commitment from Emir-
ates Airline, while teasing the
Marker with Clip
● DARKER COLOUR
possibility of more as China

A
ir India, owned by Tal- tius, Avianca, Sri Lankan airlines, moves closer to a major deal
ace Pvt. Ltd, a subsidi- TAP Portugal, Croatia airlines, Eva for the 737 Max.
ary of Tata Sons, has
garnered global atten-
Air, Asiana airlines, Ethiopian air-
lines, Swiss, and Lufthansa.
Shares of the US plane-
maker advanced 3.3% in pre- ● LONGER WRITING
tion with foreign air- Recently, the airline also signed market US trading after Emir- Stan Deal, CEO, commercial
lines expressing rising interest in an interline arrangement with ates said it would buy an addi- planes, Boeing. BLOOMBERG
partnering with the full-service car- Alaska airlines. This will allow Air tional 90 of Boeing’s coming
rier, as they expect it to establish an India customers to avail seamless 777X model and five more Airbus, meanwhile, made
extensive network of non-stop long- connections from New York JFK, 787s, confirming a Bloomberg do with a midsize A220 nar-
haul flights from India, said a senior Newark-New Jersey, Washington News report. Emirates is rowbody order from AirBaltic
company executive. DC, Chicago, San Francisco, and already the biggest buyer of and a confirmation from Turk-
“Many airlines are seeking part- Vancouver gateways to and from 32 the massive twin-engine 777X, ish Airlines that the two sides
nerships because they see the bene- destinations in the USA, Mexico, and which sports wingtips that fold are close on a major aircraft
fit in connecting with the carrier Campbell Wilson, chairman and managing director, Air India. MINT Canada on Alaska Airline’s network. to make it easier to fit through order. But there was no mega-
from which most of the source traffic For April-June, the market share airports. deal, either from Turkish or
is coming. At present, 37 million tions, Air India underwent privatiza- back to non-stop business,” he said. of Air India and Air India Express Boeing also scored wins from Emirates, as talks around
people are there in the diaspora, but tion through a strategic divestment Indian airlines are expanding stood at 20.3% in the overall interna- with a narrowbody order for as engines supplied by Rolls-
we don’t serve them particularly programme led by the government. codeshare partnerships, as growth tional traffic to and from India and many as 90 of its top-selling Royce Holdings Plc proved to
well. That is going to change,” Air The Tata Group emerged as the top potential in the world’s fastest- IndiGo had 17.2% stake. 737 Max jets at be a sticking
India’s chairman and managing bidder for the airline and its subsidi- emerging market, and the third larg- The carrier, which is also oversee- Turkey’s SunEx- Boeing also point to a deal
director Campbell Wilson said at the ary, Air India Express, in January est in terms of air travel is supported ing a mega merger with Vistara, reit- press, and 18 of scored a win with with the Gulf car-
67th Association of Asia-Pacific air- 2022. by an aspirational middle class and erated that it is working on improv- the model from a narrowbody rier.
lines. While state-run Air India rising income levels. ing its product and travel EgyptAir. It also order for 90 of its Deal spent
Air India operates let the non-stop business In addition to Air India, experience. picked up more much of the day
“We are recruiting
737 Max jets from
direct international be taken away by for- India’s largest airline commitments for shuttling back
Turkey’s
flights to 38 destina-
tions including the 20.3% eign carriers, the new IndiGo is also aggres-
Air India is preparing sively expanding its 17.2% new crew, enhancing
and improving the
the hot-selling
787 widebody, SunExpress
and forth
between Boeing’s
US, Canada, Europe, Mkt share of AI, Air to get the direct busi- international wings in IndiGo’s market training regime, lot of with Royal Jorda- offices at the
Australia, South-east India Express in int’l ness back, Wilson said. order to tap the direct share in overall Int’l efforts has gone into nian adding a show, where air-
Asia, Far East Asia, traffic in Apr-Jun “Let us not forget the flights on short and traffic in Apr-Jun catering, improving handful of Dreamliners and line executives and prospec-
Africa, Gulf, the Middle reason. Other airlines medium-haul distance, the quality but also FlyDubai picking up 30 of the tive customers mingle to get
East and South Asian got so strong because Air in addition to entering changing the caterers, a lot model—the first time the car- deals over the line, and the
Association for Regional India and Indian Airlines were codeshare partnerships for of work on providing a consist- rier has bought larger twin- main press center where he
Cooperation (Saarc). International weak. So, by providing a non-stop, flights to Australia, the US and ent proposition when people fly with aisle aircraft. announced the accords in
departures for the airline have quality, affordable, reliable, trust- Europe. InterGlobe Aviation-pro- us whether it is the experience they “It’s pretty darn big,” Boeing rapid succession. Emirates
increased by 21% this year following worthy, and non-stop safe service moted IndiGo currently has code- get, service, product, punctuality. commercial chief Stan Deal made by far the biggest impact
its expansion to destinations like from India to key population centres share partnerships with Turkish Air- We don’t claim to be in the final said of the order flow in Dubai. with its top-up order, which
Copenhagen, Milan, Vienna, and pretty much anywhere in the world, lines, Qatar Airways, Qantas, Virgin steady state...there will always be “I’m not counting my chickens massively extends the airline’s
London’s Gatwick Airport. we are pretty confident that we can Atlantic, KLM, American Airlines, more work to do I think but we are yet, and it’s not over. But it’s a already huge backlog of wide-
After 67 years of state-run opera- drag a lot of that connecting business British Airways and Air France. making good progress,” he added. big one.” body planes.

Government of Maharashtra
Department of Co-operation, Marketing and Textiles,
Returning Officer,
The Nashik Merchants Co-operative Bank Ltd., Nashik (Maharastra) (Multi-State Scheduled Bank) &
District Deputy Registrar, Co-operative Societies, Nashik.

25
As the Quinquennial Elections of The Nashik Merchant's Co-operative Bank Ltd., Nashik (Multi-State Scheduled Bank) for the `
tenure of 2023-2024 to 2028-2029 are scheduled to be held and therefore the undersigned has been duly appointed as
Returning Officer for the said elections. PER PCS
Accordingly as per the provisions laid down in The Multi-State Co-operative Societies Act, 2002 & Rules 2002 made thereunder
& provisions made in the bye-laws of the Bank, the "Special General Meeting" of Members of the said Bank is scheduled to be
held under the Presidentship of Shri Fayaj Mulani, Returning Officer & District Deputy Registrar, Co-operative Societies, Nashik
for The Nashik Merchant's Co-operative Bank Ltd., Nashik. on the Day-Friday Dated: 24/11/2023 at 10.00 a.m. in the
Administrative Head Office premises of the said Bank, A-16, Industrial Estate, Padmashri Babubhai Rathi Chowk, Netajee
Subhashchandra Marg, Satpur, Nashik-422 007. You are therefore requested to remain present in the said meeting.
AGENDA FOR THE MEETING
1)To start the process of Quinquennial Elections of the Bank for the tenure of 2023-2024 to 2028-2029 to elect the Managing
Committee Members.

HAVE FUN
WITH FACTS ON SUNDAYS
Catch the latest column of

A
A quiz on the week’s development. Note: 1)The Special General Meeting will be postponed if not completed by proper quorum and the same will be held after half
an hour at the same place and there is no need of quorum. 2) For the post of managing committee member, the candidate should
have eligibility as per Sec.43 of the Multi-State Co-operative Societies Act, 2002 and under the bye-law No.31 of the said Bank.

20
3)The said election process & working (except voting & counting) will be completed by avoiding Govt. Holidays i.e. working days.
4) If necessary the place of voting & counting will be declared lateron as possible. `
hindustantimes htTweets www.hindustantimes.com Office Address of Returning Officer :-
Returning Officer,
PER PCS
The Nashik Merchants Co-operative Bank Ltd., Nashik
Adminstrative Office, A-16, Industrial Estate, Padmashri Babubhai Rathi Chowk,
Netaji Subhash Chandra Bose Marg, Satpur, Nashik-422007.

For SPL Discount on Bulk Buy:

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08 Tuesday, 14 NoveMber 2023
MuMbai GLOBAL LIVEMINT.COM

m MINT SHORTS
South Korea, US revise deterrence
Sunak brings Cameron
agreement to counter North Korea
US and South Korean defence chiefs on Monday updated a key
military agreement against nuclear-armed North Korea for the
first time in a decade as they hailed their “stronger than ever” alli-
back in fresh reshuffle
ance. US secretary of defence Lloyd Austin was in Seoul for an
annual security meeting with his South Korean counterpart Shin
Won-sik. At the Security Consultative Meeting, the defence
chiefs revised the Tailored Deterrence Strategy, a deal on joint The firing of interior minister Suella Braverman triggered the latest rejig Israeli Prime Minister Benjamin Netanyahu. REUTERS
deterrence strategies to counter North Korea’s nuclear weapons
and other arms, according to a joint statement. First adopted in
2013, the allies had been working to update the document to bet-
ter reflect Pyongyang’s rapidly advancing nuclear and missile
Reuters
feedback@livemint.com
Israel says it raised
threats, according to the Yonhap news agency. AFP London
$8 billion of debt
B
ritish prime minister Rishi
Thousands evacuated as Iceland Sunak brought back former
braces for volcanic eruption
REUTERS
leader David Cameron as for-
eign minister on Monday in a
reshuffle triggered by his firing
since start of war
of interior minister Suella Braverman Reuters As a result, Israel recorded a
after her criticism of police threatened his feedback@livemint.com budget deficit of 22.9 billion
authority. JerusaLem shekels in October, a leap from
It was the latest reset for a prime minis- 4.6 billion in September and

Some 900 earthquakes hit southern Iceland on Monday,
authorities said, adding to tens of thousands of tremors
that rattled the region in recent weeks as the country bra-
ces for what could become a significant volcanic eruption.
Almost 4,000 people were evacuated over the weekend
as authorities feared that molten rock would rise to the
surface of the earth and potentially hit a coastal town and
a geothermal power station. “We have this tremendous
uncertainty now; will there be an eruption and if so, what
sort of damage will occur,” said Matthew James Roberts,
director of the service and research division at the Ice-
landic Meteorological Office. The Reykjanes peninsula is
a volcanic and seismic hot spot southwest of the capital,
Reykjavík. REUTERS
South Africa offers first-ever tax
breaks for lion, rhino conservation
South Africa has offered its first ever tax incentives for the preser-
vation of endangered species. The department of forestry, fisher-
ies and the environment said that, together with the Sustainable
Finance Coalition and Wilderness Foundations Africa, it devel-
oped its first biodiversity management agreements with three
private black rhino and lion owners in the northeastern province
of Limpopo. The agreements allows the owners to deduct all their
expenses related to conservation from their taxable income. In
order to activate the agreements, applicants have to sign a man-
agement plan of at least a five-year duration. AFP
ter whose party is badly lagging the
Labour Party before an election expected
next year. The return of Cameron sug-
gested Sunak wanted to bring in a more
centrist, experienced hand rather than
appease the right of his party which sup-
ported Braverman.
It also reawakens divisive debate over
Brexit: Cameron held the referendum on
European Union membership in 2016 and
was hated by many on the right of the
party after he campaigned to remain. He
quit hours after Britain voted to leave.
Under fire from opposition lawmakers
and members of the governing Conserva-
tive Party to eject Braverman, Sunak
seemed to have brought forward a long-
planned reshuffle to bring in allies and
remove ministers he felt were not per-
forming.
His hand was forced when the ever-
controversial Braverman defied him last
week in an unauthorized article accusing
police of “double standards” at protests,
suggesting they were tough on right-wing
demonstrators, but easy on pro-Palestin-
ian marchers.
The opposition Labour Party said the
article inflamed tensions between a pro-
Palestinian demonstration and a far-right
counter protest on Saturday, when nearly
150 people were arrested.
While her removal was not a surprise, it
was the appointment of Cameron which
caused shock in the Conservative Party,
welcomed by more centrist lawmakers
but loathed by some on the right who
I
srael has raised about 30 bil- pushing up the deficit over the
lion shekels ($7.8 billion) in prior 12 months to 2.6%.
debt since the start of the The ministry said it would
war with Hamas militants, the continue to operate “in all
finance ministry said on Mon- channels in order to finance
day. the government’s activities,
Slightly more than half of including all the needs arising
that—16 billion shekels—was from the...war and the eco-
dollar-denominated debt nomic and civil aid to the
Rishi Sunak, prime minister, Britain. REUTERS raised in issuances in interna- home front.”
tional markets, it said. Prime minister Benjamin
described it as the ultimate “Brexit surren- “It’s a sign to the Tory blue wall and The ministry on Monday Netanyahu has vowed to
der”. moderate voters, we aren’t heading to the raised another 3.7 “open the taps” to
Cameron said he was glad to take on his right,” one Conservative lawmaker said, billion shekels in Israel recorded a h e l p those
new role because at a time of global using a phrase that is used to describe tra- the local market budget deficit of impacted by the
change, “it has rarely been more impor- ditional Conservative-supporting areas in in its weekly bond 22.9 billion war, which econ-
tant for this country to stand by our allies, the south of England. auction. shekels in omists believe
strengthen our partnerships and make Some lawmakers had feared that Brav- “The financing will sharply push
October, a leap
sure our voice is heard”. erman was determined to remake the capabilities of the up the deficit and
“Though I may have disa- Conservatives as the “nasty State of Israel from 4.6 billion in debt to GDP ratio
greed with some individual Braverman’s party” with her hardline allow the govern- September through 2024.
decisions, it is clear to me removal was not a focus on immigration and ment to fully and But Bank of
that Rishi Sunak is a strong surprise, but social issues, a moniker optimally finance Israel Governor
and capable prime minister, Cameron’s return former prime minister Ther- all its needs,” the ministry’s Amir Yaron has said the gov-
who is showing exemplary
has shocked the esa May used in 2002 to try to accountant-general division ernment needs to balance
leadership at a difficult time,” persuade the party to shed its said. “supporting the economy and
he wrote on X, formerly Conservative reputation of being uncaring. The war that began on 7 maintaining a sound fiscal
Twitter. Party But Cameron’s return October when Hamas gunmen position”.
Cameron has been out of compounded the anger felt rampaged through Israeli Credit rating agencies have
politics since 2016 and will be by some on the right after her towns has sharply boosted already warned they could cut
able to return to government via an sacking. They said Braverman’s stance on Israel’s expenses to fund the Israel’s ratings if debt metrics
appointment to the House of Lords upper how the police dealt with protests was cor- military as well as to compen- deteriorate.
house of parliament. rect and predicted she would remain a sate businesses near the bor- The accountant general
Lawmakers in the centrist wing of the vocal force. Some Brexit supporters also der and families of victims and denied an Israeli media report
party said Cameron’s appointment would said Cameron’s role in the Brexit vote hostages taken by Hamas. At that the state would apply for a
bring international experience, and send meant the so-called “remain” wing of the the same time, tax income has loan from the Bank of Israel for
a wider message to the country. party had taken over. slowed. the first time since 1986.

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LIVEMINT.COM NEWS WRAP Tuesday, 14 NoveMber 2023
MuMbai 09

NEWS
5,500
THE NUMBER of jobs that German
$400 mn
THE AMOUNT India will borrow from
74%
THE CAPACITY utilization of Indian
268,923
THE NUMBER of Indian students
4.87%
INDIA’S CONSUMER price index (CPI)-
IN auto parts maker Continental AG is Asian Development Bank to build urban manufacturing companies in Q2 FY24, up studying in the US in the academic year based inflation in October, down from
NUMBERS cutting globally as it aims to trim its
annual costs by €400 million.
infrastructure, among other things, as a
part of a policy-based loan agreement.
from 57% in Q1, according to a Ficci survey
covering 380 manufacturers.
2022-23, up 35% y-o-y, despite visa hassles,
according to Open Doors 2023 Report.
5.02% in September, and lowest in five
months, according to government data.

HOWINDIALIVES.COM

Indian goods get a TUNNELLING TROUBLES Manappuram beats

₹3.75 tn festive push Q2 profit estimates

R M
etail markets across India registered a anappuram Finance Ltd on Monday
record trade of ₹3.75 trillion during this reported a bigger-than-expected rise
festive season so far, traders’ body CAIT in second-quarter profit, aided by
said on Monday. strong demand for loans.
The Confederation of All India Traders The gold financing company’s consolidated
(CAIT) stated that festivals like Goverdhan net profit rose nearly 37% to ₹558 crore for the
Pooja, Bhaiya Dooj, Chhath Pooja and Tulsi quarter ended 30 September, beating analyst
Vivah are yet to be solemnized, which may expectations of ₹498 crore, according to LSEG
attract additional trade worth ₹50,000 crore. data. Gold prices hit a record high earlier this
“Notably, almost only Indian products were year and though it saw some subsequent
sold and purchased this Diwali, which is corrections, prices were up more than 20%
remarkable,” it stated. CAIT secretary general year-on-year for the quarter. Rise in gold prices
Praveen Khandelwal said Chinese goods lost a benefits gold financiers as more customers
trade of worth more than ₹1 trillion during the pledge the yellow metal as collateral for loans,
Diwali festive season. “In previous years, aiding growth.
Chinese products were occupying nearly 70% The Kerala-based company’s revenue from
market of Diwali festivals. However, this year, its gold loan business, which accounts for
appeal of Prime Minister Narendra Modi to about three-fourths of its topline, rose 18.5% to
make this Diwali vocal for local has gone down ₹1,537 crore, while its micro-finance arm
well and widely accepted and implemented by posted a 53% revenue growth. REUTERS
both traders and consumers,” he said. PTI

Rescue and relief operations underway after a portion of a tunnel under construction between Silkyara and Dandalgaon on the Brahmakhal-
Yamunotri national highway collapsed, in Uttarkashi district, on Monday. All 40 workers trapped are safe and communication has been established
with them, officials said on Monday as chief minister Pushkar Singh Dhami reached the site to oversee rescue operations. PTI

The companies obtained Sebi’s observation

Centre considering a number GAIL has contracted 5.8 mt per annum of LNG
from the US. MINT
letters between 30 Oct and 10 Nov.

Fedfina, IREDA get

MINT

of measures to boost MSMEs First ship-to-ship

LNG transfer done
IPO nod from Sebi
G
AIL has done the world’s first ship-to-

F
our firms—Fedbank Financial Services,
Indian Renewable Energy Development
Agency, EPACK Durable and Suraj Estate
Developers—have received capital markets
regulator Sebi’s approval to raise funds
through initial public offerings (IPO).
These companies, which filed preliminary
IPO papers with Sebi between July and
ship liquefied natural gas (LNG)
Govt to focus on high cost of credit, which is the single biggest roadblock for growth transfer to save on shipping costs and
cut emissions as the state-owned entity looks at
innovative ways as a pivot to boost business,
Rajeev Jayaswal roadblock in the growth of MSMEs, which could scored the importance of integrating MSMEs company officials said.
rajeev.jayaswal@htlive.com range between 15% and 28%, depending on the with international trade for global prosperity. GAIL has contracted 5.8 mt per annum of
new DeLhI nature of financial institution. “MSMEs account for 90% of businesses, 60% to LNG from the US. The ship typically travels a
The Emergency Credit Line Guarantee 70% of employment and 50% of GDP worldwide. distance of about 19,554 nautical miles for a

September, obtained the watchdog’s
observation letters between 30 October and 10
November, an update with the regulator
showed on Monday.
In Sebi’s parlance, its observations mean its
nod to float the IPO.
Going by the draft papers, the IPO of
Fedbank Financial Services Ltd (Fedfina)
consists of a fresh issue of equity shares
aggregating up to ₹750 crore and an offer for
sale (OFS) of 70.3 million equity shares by
promoter Federal Bank and existing
shareholder True North Fund VI LLP.
Fedfina proposes to utilize the net proceeds
from the fresh issue towards augmenting the
tier-I capital base to meet its future capital
requirements and offer expenses. PTI
T
he central government is considering a Scheme (ECLGS) was good, but it helped a frac- They play a key role in sustaining livelihoods, in round trip to transport LNG from Sabine Pass
slew of measures to boost Indian micro, tion of the 65 million MSMEs as it supported only particular among the working poor, women, in the US to India via the Suez Canal and
small and medium enterprises those who had youth, and groups in Gibraltar. This journey takes approximately 54
(MSMEs), which include policy meas- existing loans. vulnerable situa- days and emits about 15,600 tonnes of CO2.
ures to integrate them with interna- T h e c o s t o f The main agenda of the programme tions,” she said. Emissions are generally controlled using the
tional markets, digital support for global competi- finance must be is integrating domestic MSMEs It is also part of latest technology or changing the destination
tiveness, ease of compliance on goods and servi- reduced if the sector the G20 Delhi Dec- of the cargo.
ces tax (GST) laws, and providing low-cost credit, has to compete in with that of international standards laration. However, GAIL’s innovative contractual
two officials said. global markets for global prosperity Besides afforda- arrangement that results in vessels following
The measures are expected to be announced in though a targeted ble credit facilities, an optimized path has resulted in a significant
the interim budget on 1 February, the officials approach,” a second ease of doing busi- reduction in CO2 emission. PTI
said, requesting anonymity. It is likely that the official said. ness is the second most important factor required
government may announce its intent in the It is a work in progress, the officials said. “The to make the sector globally competitive, an expert
interim budget, but details of the schemes could aim is to make MSMEs globally competitive,” the said.
be unveiled later in the full budget for 2024-25 by
July, one of them said.
first official said. “Many MSMEs are facing issues with GST
Last week on Monday, addressing a seminar, authorities, even as most of them are under the
Bikanervala founder
“The high cost of credit is the single biggest finance minister Nirmala Sitharaman under- exempt category,” he said, requesting anonymity.
Aggarwal dies at 86

L
ala Kedarnath Aggarwal, who once sold
Tata Steel cuts 800 jobs in the Netherlands to up profitability 417 infra projects bhujia and rasgullas in buckets on the
streets of old Delhi before establishing
show cost overruns sweets and snacks brand Bikanervala, passed

T
he Dutch division of Tata Steel on Monday said it would cut around 800 away on Monday.
jobs at its IJmuiden plant in an effort to increase profitability. He was 86. The demise of Aggarwal, fondly

A
Tata currently employs around 9,200 people in IJmuiden, on the s many as 417 infrastructure projects, known as Kakaji, “marked the end of an era that
Dutch coast around 30 km west of Amsterdam. each entailing an investment of ₹150 has enriched palates and touched countless
“Despite all efforts by Tata Steel to improve its market position and reduce crore or more, have been hit by cost lives,” Bikanervala said.
costs, more needs to be done,” the company said. overruns amounting to more than ₹4.77 trillion The company operates more than 60 outlets
“Also in light of the transition to a cleaner company, in which significant in September this year, an official report said. in India and has presence in countries such as
investments are and will be made.” According to the ministry of statistics the USA, New Zealand, Singapore, Nepal and
The reorganization would mainly hit managerial and support staff, and was and programme implementation, which the UAE.
necessary to keep a competitive edge as the Dutch steel plant moves to more monitors infrastructure projects worth ₹150 “Kakaji’s departure is not just a loss to
sustainable production methods. crore and above, out of 1,763 projects, 417 Bikanervala; it’s a void in the culinary
Tata’s steel factory is responsible for around 7% of the total CO2 emissions reported cost overruns and as many as 842 landscape. His vision and leadership will
of the Netherlands, making it the biggest single polluter in the country. projects were delayed. Further, it stated that forever guide our culinary journey,” said the
The company is working with the Dutch government on plans to switch to for 298 projects, neither the year of group’s managing director Shyam Sunder
greener ways of making steel, but has not yet reached an agreement on the In order to remain structurally competitive and profitable now and in commissioning nor the tentative gestation Aggarwal. Kedarnath Aggarwal started his
support it says it would need. REUTERS the future, Tata Steel Netherlands is taking significant measures. AFP period has been reported. PTI entrepreneurial journey in Delhi. PTI

ED seeks foreign transaction Firmer push for local EV production in FAME-III

details from Qatar Airways FROM PAGE 1 fying agencies, yet it seems to
be disregarded somehow. We
17 complaints regarding the
misappropriation of subsidies
raised to ₹3,500 crore from the
current ₹2,000 crore, but the
sidies totalling ₹469 crore. are currently engaged in dis- under the FAME India phase II subsidy per kWh of battery
Neeraj Chauhan & respond to HT’s request for head office and its Indian While Revolt, Ampere and cussions with the government by some EV manufacturers. capacity has been reduced
Neha LM Tripathi comment but airline officials branch are treated as separate AMO Mobility have complied to address this matter on a case- “All the complaint cases have from ₹15,000 to ₹10,000 per
new DeLhI who asked not to be named entities. with the direction, Hero Elec- by-case basis, as our situation been referred to the testing electric two-wheeler.
confirmed ED has asked it for A statement issued by the tric, Okinawa and Benling are may differ from others who agencies for re-verification. The ministry formulated the

T
he Enforcement Direct-
orate (ED) has asked
Qatar Airways for docu-
ments related to its foreign
transactions being investigated
by the agency, people familiar
with the matter said
ED has sought information
from the airline under the pro-
visions of Foreign Exchange
Management Act, they added.
A senior ED official confirmed
the request on condition of
anonymity but added the probe
was at a “very initial stage”.
Qatar Airways didn’t
information. It wasn’t immedi-
ately clear whether the issue is
linked to alleged tax evasion by
Qatar Airways, in which the
director general of GST intelli-
gence (DGGI) last month con-
ducted searches at the offices of
foreign carriers including
Qatar Airways.
The searches were in con-
nection with alleged tax eva-
sion by airlines in the import of
services from their head offices
to Indian branches. The Goods
and Services Tax regulations
state that a foreign airline’s
finance ministry on 18 October
stated that DGGI has detected
GST evasion of ₹57,000 crore
from April 2020 to September
2023 involving over 6,000 fake
instances of input tax credit
claims leading to the arrest of
500 people.
The development comes
weeks after a Qatari court sen-
tenced to death eight former
Indian Navy personnel, who
were detained on undeclared
charges in August 2022.
letters@hindustan-
times.com
yet to pay their dues, another
person said, also on condition
of anonymity.
A Hero Electric spokesper-
son said: “Hero Electric had not
only diligently followed the
PMP norms in FAME-II but had
exceeded the DVA localization
norms now being considered in
FAME III. The recovery sought
back by MHI relates to subsi-
dies given to customers by
Hero Electric’s own funds two
years ago, a transaction that
had obtained explicit written
approval from MHI’s own certi-
have already made payments.”
Queries emailed to a spokes-
person for Okinawa remained
unanswered till press time.
Benling could not be reached
immediately. The ministry has
warned the companies to repay
the amounts or face legal
action. Queries emailed to MHI
also remained unanswered.
In July, a few companies,
through the industry body
Society for Manufacturing of
Electric Vehicles (SMEV),
reached out to the Prime Min-
ister’s Office (PMO) and the
FAME-II was formulated in 2019
for a period of five years. ISTOCK
heavy industries ministry seek-
ing a waiver of the penalty and
withdrawal of the notices.
Responding to a question in
the Parliament earlier this year,
the minister of state for heavy
industries, Krishan Pal Gurjar,
said the ministry had received
After examination of reports in
respect of two OEMs (original
equipment manufacturers), the
models of these two OEMs have
been suspended from the
FAME scheme,” the minister
said in a written reply without
divulging their names.
The government has also
reduced the subsidy per kilo-
watt hour (kWh) of battery
capacity under FAME-II start-
ing June. The total amount
allocated towards providing
incentives for such eco-
friendly vehicles has been
FAME India Phase II scheme for
a period of five years from April
2019 with a total budgetary sup-
port of ₹10,000 crore. This
phase focuses on supporting the
electrification of public and
shared transportation, intending
to provide incentives for 7,090
electric buses, 500,000 three-
wheelers, 55,000 four-wheelers
and 1 million two-wheelers,
along with the creation of charg-
ing infrastructure is also sup-
ported under the scheme.
rituraj.baruah@live-
mint.com
10 Tuesday, 14 NoveMber 2023
MuMbai LONG STORY LIVEMINT.COM

HOW CRYPTO FUNDED

THe HAmAS WAr
Pivot to digital currencies helped Hamas receive large sums from Iran in the two years preceding the Israel attacks

Smoke rises after an Israeli strike as Palestinians riding a donkey-drawn cart move southward after fleeing north Gaza, where Israeli tanks have rolled deeper into the enclave, amid the ongoing conflict between Israel and Hamas, in the central Gaza Strip on Sunday. REUTERS

Angus Berwick fers. Part of their businesses involved legit-
feedback@livemint.com imate activity such as trade payments and
remittances in order to generate sufficient
eign aid and tax revenues in Gaza. severe terror crime.”
mint
The U.S. designated Hamas a terrorist
organization in 1997, limiting the group’s
SHORT
STORY
A Binance spokesperson said it follows
internationally recognized sanctions US airstrikes

I
n mid-2019, Israel’s military used a cash flow to obscure the Islamist groups’ access to the international banking system. rules, blocking a small number of
precision strike on a narrow street to financing, the NBCTF officials said.
kill a Hamas commander whom it They said, at times, as much as half the
Israel’s blockade of Gaza has made it hard for
Hamas to obtain physical cash. Researchers WHAT
accounts linked to illicit funds.
That and later orders sought to seize the
hit terror
called Iran’s money man in Gaza.
The commander ran an off-the- to Hamas.
books system of remittances in which
money going through the exchanges went

Hamas, Shamlakh
say the group has often resorted to a net-
work of tunnels to smuggle in bills. Israeli
officials said in recent
Hamas has been using digital
currencies to lessen the risks of
Hamas-controlled exchange houses’ own
crypto trading accounts, as well as their
customers’ accounts and digital wallets,
bases in
trusted agents shuttled physical cash and and his businesses
goods across borders to settle customers’ didn’t respond to
years most of Iran’s
financing of Hamas
moving physical money. Since
2021, Israel’s NBCTF has issued
people familiar with the actions said. It is
possible that not all of the clients were Syria again
balances. This so-called hawala network, requests for comment. moved through the seven orders to seize crypto involved with Hamas.
as it is known in the Middle East, funneled Iran’s mission to the United Nations chain of hawala dealers and money-service funds held by Gazan exchanges. The wallets identified in the seizure AP
tens of millions of dollars in financing didn’t comment. Iranian government offi- providers that are spread across Gaza, Leba- orders likely only represented a fraction of feedback@livemint.com
from Iran to Hamas’s military wing. cials have characterized Western sanc- non, Syria and Turkey. the wallets used by Hamas, according to a
AND
T
His replacement, a Palestinian busi- tions as illegal financial warfare and have Western intelligence and security offi- former Israeli official, who worked on the he U.S. military conducted
nessman called Zuhair Shamlakh, said Iran has secret financing mechanisms cials say that Iran and its proxies often own NBCTF’s investigations until this year. airstrikes on two locations in
changed strategy to evade the Israelis: He meant to sidestep the sanctions and fund or control exchange houses as critical A significant portion of the funds “It’s a drop in the ocean,” the ex-offi- eastern Syria involving Irani-
turned to digital currencies. its regional allies. nodes for financing their operations. received by the Gazan cial said. an-backed groups, hitting a train-
Shamlakh’s money exchanges increas- Shamlakh, owner of the Al Mutahadun “This is the silent way for them to get exchanges were for Hamas. The use of crypto by the Gaza money ing location and a weapons facility,
ingly sent digital tokens to operators exchange, which was cited in five of the money into Gaza,” said Tom Alexandro- Security officials say that Iran exchanges was more sophisticated than according to the Pentagon and U.S.
abroad to settle hawala balances, accord- seizure orders, was Hamas’s “main vich, director of the cyber defense division and its proxies often own or Hamas’s earlier fundraising efforts in bit- officials. It marks the third time in a
ing to current and former Israeli law-en- money changer” tasked with arranging at Israel’s National Cyber Directorate, control exchange houses. coin. Digital wallets connected to the bit more than two weeks that the
forcement officials along with former the transfer of Iranian money, according which has supported the NBCTF’s crypto companies moved funds overwhelmingly U.S. has retaliated against the mili-
U.S. officials. Crypto sent to the digital to the Israeli defense ministry, which investigations. in the form of the stablecoin tether on a tants for what has been a growing
wallets controlled by the Hamas-affili- oversees the NBCTF. Hamas’s use of digital currencies has NOW blockchain system called Tron, which has number of attacks on bases housing
ated money exchanges could also be The owner of another exchange, called intensified scrutiny on the crypto industry. heightened user privacy. U.S. troops in Iraq and Syria.
swapped for cash at their offices in the Dubai Money, was a “key figure in Hamas’s While crypto transactions are visible on Scrutiny on the crypto industry To obscure the money trail, the In a statement, Defense Secre-
Gaza Strip. economic infrastructure public blockchain ledgers, many foreign has intensified. While crypto exchanges often changed the wallet tary Lloyd Austin said the strikes
This pivot helped for laundering and trans- platforms that customers use to trade digi- transactions are visible on public addresses they used each day, and sent targeted sites near Abukama and
Hamas and affiliates Digital wallets connected ferring capital” from tal currencies have weak compliance con- blockchain ledgers, many foreign funds through mixers, Israeli officials Mayadin and were used by Iran’s
such as Palestinian to the companies moved abroad, the defense min- trols or are designed to conceal their iden- platforms used for trade have said. They also received funds from Revolutionary Guard Corps as well
Islamic Jihad to receive istry has said. tities. weak compliance controls. Garantex, a large Russian crypto as Iran-backed militias.
large sums from Iran funds overwhelmingly After one 2020 order The Treasury Department last month exchange under U.S. sanctions, and sev- “The President has no higher
during the two years in the form of the stablecoin by the ministry to seize designated foreign “mixer” crypto plat- eral Iranian exchanges, according to the priority than the safety of U.S. per-
that preceded the his company’s assets, forms, which enable users to exchange Brigades, in a statement at the time called ex-official and blockchain analytics sonnel, and he directed today’s
attacks on Israel in Octo- tether on a blockchain Shamlakh denied that Al cryptocurrency with relative anonymity, Khudari “a generous and loyal mujahid- research. action to make clear that the
ber, the officials said. It Mutahadun received as primary money-laundering hubs to een.” A Palestinian media outlet reported A Garantex spokeswoman said it United States will defend itself, its
was an attempt to use a system called Tron. funds from Iran in a combat their use by Hamas and other ter- that Khudari was one of the territory’s adhered to international compliance stan- personnel, and its interests,” Aus-
new financial technol- statement carried by Pal- rorist groups. largest currency traders, distributing sala- dards on financial crime. tin said.
ogy to lessen the risks of moving physical estinian media, saying Israel’s allegations More than 100 U.S. lawmakers signed a ries to poor residents and militants alike. The Gazan exchange network A U.S. official said one site also
money and goods. were “pure lies and slander.” letter last month expressing concern Shamlakh took his place, according to remains active. In late September, included weapons storage. The
Since 2021, Israel’s National Bureau for about the “serious national security Israel’s defense ministry. another exchange service company official spoke on condition of ano-
Counter-Terror Financing (NBCTF) has UsinG the hawala networks threats” posed by crypto’s use to finance His Al Mutahadun exchange advertised called AlKahira, which shares an nymity to discuss details of a mili-
issued seven orders to seize crypto funds
held by three of these Gazan exchanges. I nitially, Hamas used crypto only to
receive small-scale donations from sup-
Digital wallets identified by the NBCTF porters as part of a broader crowdfunding
terrorism.
In a response to the lawmakers, the
Chamber of Digital Commerce, a business
on its Facebook page conversions for dol-
lars, shekels and other local currencies at
its streetfront office in Gaza.
address and phone numbers with Dubai
Money, posted a Facebook ad for cash
withdrawals and deposits via tether at its
tary operation.
The militant groups, many oper-
ating under the umbrella of the
in two of these orders as being connected effort, which Israeli officials said has likely lobby group, disputed crypto’s utility for Israeli military intelligence officers two branches in Gaza. Islamic Resistance in Iraq, have
to the exchanges had received $41 million raised several million dollars. terrorist financing. “Blockchain technol- began tracing tens of millions of dollars The NBCTF officials said AlKahira and carried out nearly 50 attacks since
in crypto, according to research by Tel Around 2020, crypto became a method ogy facilitates the tracking, tracing, and in payments from Iran’s Islamic Revolu- Dubai Money were affiliated and were also Oct. 17 on bases housing U.S. per-
Aviv-based analytics and software firm of large-scale transfers between Iran and dismantling of blockchain-based terrorist tionary Guard Corps to Al Mutahadun, linked to another money-changing house sonnel in Iraq and Syria.
BitOK. Wallets linked by the bureau in the group within the hawala networks, funding and has proven enormously and other exchanges owned by Sham- in Istanbul that the bureau targeted in a That was the day a powerful
another order to PIJ have received a fur- according to the current and former Isra- effective for law enforcement,” it said. lakh, that were earmarked for the July order to seize $1 million in assets. explosion rocked a Gaza hospital,
ther $93 million. eli officials and ex-U.S. officials. Al-Qassam Brigades to buy arms and pay AlKahira didn’t respond to requests for killing hundreds and triggering
Officials at the NBCTF said a significant Since then, crypto has been “an essen- Crypto in Gaza fighters, according to the defense minis- comment. protests in a number of Muslim
portion of the funds received by the Gazan tial part for their operational activity,” one
exchanges were for Hamas, citing Israeli senior NBCTF official said.
intelligence that went beyond blockchain Iran has long been Hamas’s primary
T he Israeli military targeted the com-
mander, Hamid Ahmed Khudari,
while he was in a car driving down a Gaza
try.
The NBCTF took action against Sham-
lakh’s shift to crypto in 2021.
AlKahira periodically has alerted cus-
tomers on its Facebook page that it was
“paying out funds for the martyrs and
nations. The Israeli military has
relentlessly attacked Gaza in retali-
ation for the devastating Hamas
analysis. They said the PIJ crypto transac- benefactor, with the U.S. putting regular street. The bureau issued its first order to wounded inside its branches.” Its most rampage in southern Israel on Oct.
tions also used the network of money-service funding from Tehran at roughly $100 mil- “Iran will need to find a new money man seize Al Mutahadun’s crypto funds, tar- recent such post was on Oct. 3, four days 7. And a number of groups have
businesses aiding Hamas and its affiliates. lion a year. Hamas also has earned income in Gaza,” the military said after the May geting 47 accounts at Binance, the before the attack on Israel. vowed retaliation against the U.S.
Some of the exchanges identified by from a global investment portfolio, raised 2019 strike, adding that Khudari was close world’s largest exchange. It said the Rory Jones & Omar Abdel-Baqui contrib- for backing Israel in the war against
Israel look like typical storefront opera- money through charitable organizations, to Hamas leaderYahya Sinwar. funds either belonged to the Gazan firm uted to this story. Hamas.
tions that offer international money trans- and skimmed off funds from official for- Hamas’s armed wing, the Al-Qassam or were “used for the perpetration of a ©2023 DOW JONES & COMPANY, INC
LIVEMINT.COM MINT MONEY Tuesday, 14 NoveMber 2023
MuMbai 11

Tax rules that you need to embrace POWER

POINT
along with those wedding presents M R I N AG A RWA L

We welcome your views and comments at

mintmoney@livemint.com

RAISING CHILDREN
It is necessary to keep a record of all gifts to ensure proper trail, declare high-value gifts while filing tax returns
TO BE FINANCIALLY
Jash Kriplani
jash.kriplani@livemint.com Marriage gifts: what are the tax implications
such clubbing provisions won’t be
applicable. But the ₹50,000 thresh-
old on gift value will still apply, as the
RESPONSIBLE

D
iwali is over, as are the woman is yet to become a member of
Gifts in regular course Gifts received on occasion of marriage Are only marriage

fireworks. But the joy of
gifting continues. For, the
wedding season is set to
begin from 23 November,
and will last till 15 December. Accord-
ing to the research arm of Confedera-
tion of All India Traders, there will be
a record 3.5 million weddings taking
place in India this year.
Marriages, one of the biggest finan-
cial goals of most Indian families, is a
reason for great celebration. On this
occasion, newlyweds, as well as their
families, usually receive gifts from well-
wishers. Such gifts can, however, attract
the provisions of the income tax laws.
Relatives vs friends
According to Indian tax rules, gifts
received by an individual on any occa-
sion, including a wedding, are exempt
from tax totally but those from friends
are tax-free only till the limit of
₹50,000, on occasions other than
wedding. So, if a gift given by any friend
on a birthday or anniversary is valued
at ₹1 lakh, the entire ₹1 lakh is taxable
under ‘income from other sources’.
Do note that marriage is the only
occasion when tax is exempted totally
on all gifts received by the bride and
groom from both relatives and friends.
In Indian weddings, even close rela-
tives of the married couple receive gifts.
In their case though, gifts valued above
₹50,000 will be considered as ‘income
from other sources’ and the recipients
will be taxed as per the income slab rate
on the full value of the gift.
Marriage ceremonies
Gifts given on the occasion of mar-
riage not only include presents gifted
on the day of marriage but also those
accepted during ceremonies that pre-
cede a marriage or functions that fol-
low a wedding. For example, gifts
received by the groom and bride dur-
ing mehendi, sangeet, bidaai or a wed-
Gifts from relatives are
tax-exempt
But from non-relatives…
… exempt only if gift value is
less than ₹50,000
ding reception will be tax-exempt bride and the groom—only express
fully. Such an exemption is allowed their commitments to marriage,
because the tax rule does
not explicitly define the A very costly gift together to conclude all
wedding functions. So, can raise
gifts received in ceremo- questions from
nies linked to the mar- the income tax
riage will be tax-exempt.
department
However, any gifts
received during about the source rule. So, any gift that has
betrothal ceremonies of such a gift
will not be considered as
a marriage gift. That’s
because the betrothal ceremony is be voluntary and should not be a pre-
where the two families—those of the requisite as that would be in breach of
M
the groom’s family. y heart swelled with pride on hearing my 18-year old’s bud-
 Tax-exempt, whether from family or friends day gifts exempt? “Clubbing provisions will continue geting tricks in college. Being a financial educator, it was so
 Exemption available, regardless of the value  Gifts can be given to apply even after the asset changes its fulfilling to note that my views on financial independence
of the gifts during ceremonies form,” Jain adds. For example, if a had actually had an impact on my daughter. In this age of abundance
related to marriage. piece of jewellery that is gifted to the and consumerism, getting children to be financially responsible is
If relatives get gifts instead of newlyweds  Tax rules say
daughter in law is sold off after a cer- not easy. Here are some things that worked in my case.
 Recipients  if gift value  Tax-exemp- 'occasion of marriage', tain period, capital gains from such a Posturing makes a big difference. Children emulate parent’s
will have to is more than tion only on not day of marriage.
pay tax ₹50,000, then gifts for
sale would be clubbed with the income savings, spending and borrowing actions. Actions speak louder
 But betrothal gifts of the respective parents-in-law. than words and financial responsibility cannot be taught but is
tax on total newlywed not exempt, as it only
value Recording gifts imbibed over the growing up years. The start of this journey is at
marks commitment.
It is important to record all the gifts the toddler stage, wherein one has to say no more than a ‘yes’.
received during marriage, whether it Even if they can afford it all, parents need to stop giving in to all
Keeping records is in the form of cash or immovable the demands of the child. The current generation of parents are
 Record all gifts, in particular assets. If any query is raised by the tax- making their children too entitled by giving them everything
high-value gifts. man, you should be able to sufficiently they want right from birth.
 Declare in I-T filing as exempt prove that these gifts were received on As children get to middle school age, peer pressure kicks in, in
income under ‘income from the occasion of the marriage, with a big way. There are so many comparisons on things like, the car
other sources’. proper paperwork to support it. owned by parents, vacations, etc. Everybody around feeds into
 Will help in keeping paper “It is recommended to declare the this—family, friends and even the media, so much so that an
trail if an asset is sold in future. high-value gifts under ‘income from advertisement of a travel portal actually had a child berating the
 If any wrongdoing/bogus are gifts given for tax evasion, then other sources’ in the exempt income parent for not being cool for vacationing at exotic destinations.
penalties can be much higher than slab rate. section. If the asset is later sold and Spending habits are typically imbibed between 8-14 years,
 Gifts should not be prerequisite/in breach of dowry laws. there is any capital gain, this would when there needs to be a balance on spending. Assess what are
help to create a proper trail,” says the expenses that might seem frivolous but are needed and those
Clubbing provision Nitesh Buddhadev, Mumbai-based which you can compromise on. While I spent on holidays, I did
 If gift is given by father-in-law to daughter-in-law or chartered accountant and founder of simple birthday parties at home versus the mini wedding like cel-
Mother-in-law to daughter-in-law and Nimit Consultancy. ebrations one sees these days! My children could make their own
If there is no proper paperwork and choices while shopping but not without seeing the price tags.
 If there is an income from such asset, it would get
clubbed in income of respective in-law. the tax department doesn’t find your Over time, they understood what was reasonable and overpriced
explanation to be satisfactory, it can expenditure. The money received on birthdays and festivals was
 Clubbing would also apply to any capital gains in future.
levy a tax rate that is much higher than partially allowed to be spent and the
your original income slab rate, along Children need rest was invested, so they balance
anti-dowry laws. with appropriate interest charges for to understand enjoyment with prudence. Getting
Clubbing provisions the delay in receiving the taxes.
much before they come Any income arising from a wed- How much to gift the importance kids to reuse or recycle things also
brings in financial consciousness.
ding gift will attract clubbing provi- It is advisable that relatives or of financial Every small action matters!
the marriage ceremo- sions with respect to certain relatives. friends give gifts that are commensu- stability at an For children in high school, the
nies. “If there is any income arising from a rate with their financial status or their early age focus is on further studies. Indian par-
The gifts given on gift given by the father or mother of relationship with the newlywed cou- ents do not like to involve their wards
betrothal will need to the groom to their daughter-in-law, it ples. A very costly gift can raise ques- in discussions regarding higher educa-
adhere to the ₹50,000 will be clubbed with the income of tions from the tax department, as to tion expenses. It is necessary to engage children in these matters
the respective parents-in-law and get the source of such a gift. Also, an so that they understand the value of the hard-earned money of
more value will be fully taxed as per the in-law’s income tax acquaintance other than a relative giv- parents and make prudent choices on colleges basis perform-
taxed in the hands of the slab,” says Balwant Jain, Mumbai- ing a very expensive gift can also lead ance, potential and affordability.
recipient. All gifts need to based tax and investment expert. to scrutiny. Bogus gifts, or gifts for College is the best time of your life or so they say! It is also the
However, if the gift is made by the converting black money into white, time parents should let kids take financial decisions. Give them
in-laws closer to the date of marriage, can lead to a serious tax litigation. a budget and let them buy whatever they need for college from
that pool. This will get them to distinguish between essential pur-
chases and teach them to compromise—for example, an earpod
which is seen as an essential by a teen needn’t be from the most

How to use employer health policy for childbirth expenses expensive brand. I hear too many parents allowing their teens
unlimited spending because they can afford it and it is the time
for kids to have fun. But fun can be had within a budget too and
this helps in building important life skills such as decision making
Jash Kriplani have separate health insur- less claims. After discharge in the policy. and problem solving. Buying a ebook over hard cover books or
jash.kriplani@livemint.com ance policies from their from the hospital, the remain- While an employer’s health using cabs only when absolutely necessary are some trade-offs
respective employers, both ing expenses can be claimed policy will cover hospitaliza- my teen did to stay within the budget.

G
roup health insurance
policies offered by
employers come with a
sub-limit for maternity deliv-
ery claims. Further, there will
be separate sub-limits for nor-
mal and caesarean (C-section)
deliveries. So, the amount you
would be eligible as an
employee for childbirth
expenses would depend on the
type of delivery and the sub-
limit offered by the policy.
If both the husband and wife
can claim maternity expenses
from their policies. The com-
bined sub-limits of the two
policies will become the total
sum assured. The maximum
claim allowed will be on the
actual expenses borne by the
parents. In a scenario, where
the total expenses have
already been claimed in one
policy, separate claims cannot
be made from the other policy.
Usually, it is difficult to make
two cashless claims at the same
time. So, parents can opt for
cashless claim in one policy
and make a reimbursement
claim with the second policy.
If both insurers are offering
cashless settlement in the
same hospital, use the policy
with higher limits for the cash-
from the second tion costs, it is Encourage children to maintain an expenses sheet and let
insurer after pro- An employer’s advisable that them decide how they want to use their monthly allowance. I
duction of neces- insurance policy parents have a have told my daughter that she can use her savings to buy some-
sary documents. can also cover separate family thing expensive on her birthday. A large discretionary expense
In some cases,
any post-delivery health policy as on an occasion can make the purchase special and valued. While
the same well. One can buy I have given my daughter an add-on credit card, she has kept it
employer insur- treatment in case family floater pol- for emergencies and only uses her debit card everywhere so that
ance policy could of any childbirth icies that come she spends only what she actually has. Fostering financial
also cover post- complications with maternity responsibly in children is an investment that can teach them the
delivery treat- benefits. Look for importance of financial stability and will be a lifelong trait. Give
ment in case of policies with the this topic importance and talk about the importance of not being
any complications. But check least waiting period and wide dependent on anybody regularly so that it becomes part of their
with your employer to ensure coverage. Then, there are also value system. Happy Children’s Day!
that the newborn is enrolled some maternity-specific plans. Mrin Agarwal is founder-director, Finsafe India.

Best home loan rates Can I benefit from HUF by splitting income?
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 Balwant Jain
available, and usually it is the only way a person can buy a house. A home loan is called
a ‘good’ loan because it helps you acquire a tangible asset that can appreciate over the I am a retired employee
long term. It makes sense to buy a house if you plan to live in it. Given the fact that the and my total income is
construction of several housing projects in India continues to be delayed or stalled by around ₹15 lakh per
many years, financial advisers say that one should buy a ready-to-move-in house. Here’s a annum. That includes pen-
look at the lowest home loan interest rates of some leading banks. sion of ₹6 lakh, LIC pension
Loan amount = ₹30 lakh. Tenure = 20 years of ₹1 lakh, rent from house
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Interest interest income from fixed
Lender EMI (₹) Processing fee
rate (%) deposit for the balance. I
get advantage of an addi-
Bank of India 8.30-10.75 25,656-30,457 Waived till 31 Dec 2023
tional 1% being a former
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Canara Bank 8.40-11.25 25,845-31,478 100% waiver from 01 Sep 2023 to 31 Dec 2023 under Retail Loan Festival
senior citizen. I am also
getting 8.2% on Senior Citi-
Indian Bank 8.40-10.20 25,845-29,349 Up to 0.25% zen Saving Scheme. If I
Indian Overseas Bank 8.40-9.55 25,845-28,062 Up to 0.50% (max. ₹25,000) + GST open a HUF (Hindu Undi-
vided Family) account and ASK MINT transferred by members to the income arising from the
Union Bank of India 8.40-10.80 25,845-30,558 0.50% (max. ₹5,000) + GST transfer my fixed deposits m INVESTMENTS HUF are clubbed in the hands income invested further
IDBI Bank 8.45-12.25 25,940-33,557 ₹5,000 to ₹15,000 to my HUF account, will I of such member year after year which has been already been
continue to get the extra till a full partition of the HUF clubbed. So, prima facie, it
UCO Bank 8.45-12.60 25,940-34,296 0.5% (min. ₹1,500 and max. ₹15,000) benefit of 1.5%? Is it advisa- gate value of gifts from all assets takes place after which seems the purpose of saving
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account? If so, how should ₹50,000 in a year but once the of share of such asset allotted ferring the fixed deposit to
Central Bank of India 8.50-9.50 26,035-27,964 Completely waived till 31 Dec 2023 I bifurcate my income to threshold is crossed the full on partition. The clubbing will your HUF. However, make gift
Punjab National Bank 8.50-10.10 26,035-29,150 Nil up to 31 Mar 2024 claim tax benefits? value of gifts are treated as continue to apply even if the of money to your adult chil-
—Krishnan income. asset is converted into any dren who are taxed at lower
HDFC Bank 8.5-9.40 26035-27768 For salaried: Up to 0.50% or ₹3,000 whichever is higher + taxes* However, gifts received other asset. rate than yours.
Punjab & Sind Bank 8.55-10 26,130-28,951 Up to 0.25% of the loan amount Banks offer higher interest from specified relatives are not So, by transferring your Balwant Jain is a Mumbai-
on fixed deposit to its former treated as income even if the fixed deposit to your HUF, you based tax and investment
State Bank of India 8.60-9.65 26,225-28,258 0.35% (min. ₹2,000 and max.₹10,000) + GST
employees and the HUF can- value exceeds ₹50,000 in a will not be able to reduce your expert
Axis Bank 8.7 26,416 Upto 1% (min of ₹10,000) plus GST shall be collected at time of login not be treated on a par with year. Members of an HUF are tax liability as the income aris-
Data taken from banks' websites as on 9 November 2023. EMI range is indicative and calculated on the basis of interest rate range; it may include other that of an ex-employee of the treated as its relatives and ing to HUF will still be taxed in Do you have a personal
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 bank so the same benefit will therefore there will not be any your hands. Please note that finance query? Send in your
salaried customer with Bureau Score >= 750 & loan amount >= 50 lakh & inclusive of all taxes, CIBIL & CERSAI charges (if applicable) not be available to your HUF. tax liability at the time of trans- the clubbing provisions apply queries at
*For self-employed non professionals: Up to 1.50% of the loan amount or ₹4,500 whichever is higher + applicable taxes Gifts received by an individ- fer of fixed deposits trans- only in respect of income aris- mintmoney@livemint.com
Note: Processing fee is a percentage of the loan amount and get them answered by
ual or an HUF are not treated ferred to your HUF. ing to the asset thus trans-
PARAS JAIN/MINT Source: MyMoneyMantra.com industry experts.
as income as long as the aggre- Income earned on assets ferred and does not apply to
12 Tuesday, 14 NoveMber 2023
MuMbai
OUR VIEW
Delhi’s toxic air: Treat it
like a top climate threat
Given the complexity of the capital’s crisis, odd-even road rationing is pointless. It needs a
big-picture solution and we could plausibly consider it a test case for climate mitigation
D
elhi’s flip-flop over an odd-even
vehicle scheme to get the gasping
city through its annual fortnight
of peak air toxicity has given us
flashes of clarity amid a policy
haze. Severe air quality last week
led the Delhi government to think of halving
four-wheelers on the capital’s streets, despite
past attempts offering little relief. When first
mooted, this idea rested on a study that traced a
sizeable share of the city’s foul air to vehicular
exhaust. But this was a slice-up of annual data,
while the worst phase is a different story, with a
significant role played by farm fires elsewhere.
Clarity came from the Supreme Court, which
dismissed odd-even as “optics,” while a pretext
to defer the plan was supplied by light showers
that rescued the capital from red-alert readings
on the Air Quality Index, though only for a brief
period before a Diwali-cracker spike in pollu-
tion blurred the scenario again. Delhi’s smog
has always had many contributors, and the
scope this creates for confusion makes it crucial
that bad ideas like odd-even get called out. This
is too serious a health hazard to trifle with.
Although mitigation efforts are directed at
anthropological aspects of the crisis, meteoro-
logical patterns are a key part of what’s going
on. As India’s northern plains cool in autumn,
wind flows shift and Delhi gets a north-westerly
draft; and as winter nears, cooler and denser air
closer to the land’s surface gets trapped in still-
ness under a warmer layer, whose low pressure
sucks in higher-level flows from surrounding
areas. In Delhi’s case, aided by north-westerly
winds, airflows come mostly from Haryana and
Punjab. If these happen to be smoke-laden—as
they have been for much of this century—the
capital turns into a kind of gas chamber with no
India’s insolvency law has cleared a significant hurdle
AJIT RANADE
T
he adoption of the Insolvency and
Bankruptcy Code (IBC) in 2016 was
one of the most important economic
reforms of the past 10 years. The passage of
this landmark law paved the way for a sys-
tematic and time-bound resolution of bank-
ruptcies and the transfer of assets to new
owners. Failed businesses with bad debts
is a Pune-based economist.
represent locked capital that is dead. Either
the business needs to be revived by new
owners or operators, or its assets need to be
liquidated and some capital value has to be
salvaged. Otherwise, the landscape would be
littered with dead capital in limbo—neither
revived nor liquidated.
Various earlier attempts, such as the very
old Sick Industrial Companies Act (SICA),
the SARFAESI law of 2003 and various debt
recovery tribunals, had yielded unsatisfac-
tory results. Matters could be stuck for years
or decades. One adage making the rounds
was that there could be sick industries, but
never a sick industrialist. Hence, the IBC was
a fresh approach from scratch. The lynchpin
VIEWS
HT
The narratives we choose today
shape war and peace tomorrow
A Bob Dylan anti-war anthem reminds us that stories justifying violence are often false or biased
RAGHU RAMAN
is former CEO of the National Intelligence
Grid, distinguished fellow at Observer
Research Foundation and author of
‘Everyman’s War’.
T
he legendary Bob Dylan is the
only person to have won a
Grammy, a Pulitzer, an Oscar, the
highest US civilian award, The Presi-
dential Medal of Freedom, and a Nobel
Prize. One of this poet-chronicler’s mas-
terpieces was the iconic 1964 song With
God on Our Side. Penned in the back-
drop of the Vietnam War, its lyrics high-
lighted how political leaders create nar-
ratives to justify violence used against
the opposing “evil,” portraying their
own actions as “righteous,” blessed by a
superior divine power. This core belief
that “our” side is right and the “other” is
exit channels for bad air to disperse. Records wrong is foundational to human con-
show noxious inflows gaining frequency, even flict. Every family, society and nation-
state maintains a tense balance in its
as the north’s isobar maps lose predictability. struggle for resources and needs narra-
This brings us to the anthropogenic causes of tives to rally its people around a strategy
Delhi’s seasonal suffocation. The post-harvest conducive to their survival.
burning of rice stubble across a vast paddy zone We experience this contradiction
to the city’s north-west is a direct cause, no without realizing our participation in
inherently conflicted narratives. How
doubt, but does climate change play a role too? else would we watch a Pakistani team
Cause-and-effect links haven’t proven con- playing cricket (a game taught by a com-
clusive. Yet, as the planet warms, a squeezed mon oppressor) in India on a TV made
sowing window for the north’s wheat crop after by a country with which we have hostile
its rice harvest has been a clear trend. In 2008, relations and trade deficits. All three
countries—India, China and Pakistan—
to prevent groundwater depletion, rice farmers harbour active face-offs in several mili-
were asked to use monsoon water for irrigation, tary and trade conflicts, wasting pre-
but late rains have spelt paddy delays, pushing cious resources and lives while bearing
the crop cycle forth, even as studies have found opportunity costs they can ill-afford.
wheat increasingly vulnerable to drops in yield Leaders of nations (especially nuclear-
powered historical and ideological ene-
if sown late. That winter rains are also more
erratic adds to this anxiety. The hurry to clear
fields leads some farmers to set paddy residue
aflame (machines could do this but take fuel and
more labour). On paper, an obvious solution is
to nudge farms away from rice cultivation. This
supply is not a response to market demand, www.livemint.com
after all, but to a government policy of procure-
ment. Rife with input subsidies, this sector’s
basic structural aim is to stuff central granaries,
SENSEX 20,194.40 æ 87.51
Q2 RESULTS
SBI stock rise
not go by market signals. Despite rising support doesn’t mean
worst is over
prices for foodgrains like rice and wheat, both
MARK TO MARKET
RAVI KRISHNAN
of which are dispensed free to the poor, farm
O ne swallow doesn’t a
summer make. Shares of
State Bank of India (SBI) rose
as high as 3.55% in intra-day
trading despite the lender’s
September quarter net profit
not only failing to meet Street
expectations, but also
incomes have been under such strain in recent
recording the sharpest fall in
two years. Investors seem to
have been initially enthused
by the asset quality numbers,
which didn’t worsen as much
as had been feared. But given
that the economic slowdown
is continuing and lending
growth is faltering, SBI will
years that farmers rejected the Centre’s 2020
find it difficult to halt the
piling up of bad loans.
In the September quarter,
SBI added `3,314 crore to its
gross non-performing assets
(NPA) tally, compared with
`9,702 crore in the three
months ended June. There
were a couple of factors
reform proposals on the worry that they’d be
responsible: It reported fresh
slippages into bad loans worth
only `8365 crore, compared
with `13,766 crore in the fiscal
first quarter. That was mostly
owing to a fall in agricultural
loans turning bad. Secondly,
the bank was able to upgrade
`2,383 crore of NPAs against
left even worse off. So, in practice, getting farms
`1,519 crore in the June
quarter.
But it’s too early to call the
bottom of the asset quality
cycle. These kinds of
improvements have been seen
in SBI’s and indeed in many
other banks’ numbers, earlier
as well. For instance, in the
off rice is a political hot potato. Yet, the annual
September 2012 quarter, SBI
had reported a sequential
decrease in bad loan addition.
In the March 2012 and 2013
quarters, outstanding gross
NPAs had actually declined.
But they were fleeting gains
and didn’t last. Other public
sector banks (excluding SBI)
chokehold that Delhi experiences must ease
have cumulatively added
`16,000 crore of bad loans in
September, the highest in the
past four quarters.
Moreover, SBI itself has
restructured loans worth
`8,585 crore in the September
quarter, higher than the
`5,000 crore it renegotiated in
one way or another. Perhaps it’s time to place
NOTE TO READERS
The Media Marketing Initiative on
Page 18 is the equivalent of a paid­
for advertisement, and no Mint
journalists were involved in
creating it. Readers would do well
this challenge on our climate agenda. Let it be a
to treat it as an advertisement.
Mint is also available for R7 with
Hindustan Times in Delhi-NCR only
test case of our resolve on eco-friendly living.
MY VIEW | MUSING MACRO
of the new IBC law was the time limit set for as the rules framed under it and how well
debt restructuring or resolution. If a debtor these rules are enforced. In that sense, the
and its consortium of creditors were unable IBC is still a work in progress. In the first five
to come to a satisfactory resolution within years of its operation, the value of capital
that time frame, then the asset would auto- realized from all cases admitted under IBC
matically go into liquidation. The resolution was only 20%, implying a rather dismal hair-
rules were also designed to prevent any cut rate of 80% for creditors. And nearly 30%
hold-up by a minority of (or small) creditors. of all cases were landing up
There have been two major amendments in liquidation, which was
to the IBC since 2016. Despite much prepa- not the main aim of the
ration prior to its passage, and much brain- law. Indeed, the law as it
power being invested in the writing of the stands is not meant to be a
Code, several tweaks have been necessary to debt recovery tool, but
tighten loose ends and plug loopholes. For rather an instrument to
instance, the possibility had to be closed of
owners of failed enterprises re-appearing as
restructure valuable capi-
tal and assets.
bidders for their own distressed assets dur-
ing the liquidation process. What if the
And one more failure
has been the frequent
bankruptcy process were to simply get used breaching of the Code’s
as a ruse to write-down the value of a firm’s time limit, which was its
bad debt completely, and then re-possess lynchpin. In its latest quar-
the same asset at far lower cost, free from all terly report, the Insolvency
prior debt obligations? This possibility was and Bankruptcy Board of
plugged with some tweaks. Whether they India (IBBI) reports that more than 65% of
have been adequate or not is yet to be seen, the cases under resolution have exceeded
since prior owners could re-appear ‘in dis- 270 days, defeating the very purpose of the
guise’ or as a newly formed corporate. law. While these delays have the legitimacy
But the fact that this issue and several oth- of judicial considerations, they are harmful
ers got attention from lawmakers and rule nevertheless.
makers is significant. The law is only as good The IBBI also noted that till June 2023,
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune*
CONTENT PARTNER
NIFTY 5,989.60 æ 28.45
SBI profit falls
35% on higher
provisioning
B Y A NUP R OY & and Adidas that have had long associations with Sachin Tendulkar, it won’t really
J OEL R EBELLO
·····················
MUMBAI
S
tate Bank of India’s
(SBI) quarterly profit
fell 35% after the nation’s
largest lender set aside
more money to cover bad
loans amid forecasts that
Asia’s third largest econ-
omy will grow at its weak-
est pace in a decade.
Still, the bank’s stock
rose the most in nearly
two weeks as accumula-
tion of new bad loans
showed signs of improve-
ment. Shares of SBI rose
1.34% to `1,697.85 apiece
on BSE, while the bench-
mark Sensex lost 0.43%.
Profit fell to `2,375.01
crore in the fiscal second
quarter ended 30 Septem-
ber from `3,658.14 crore
in the year-ago period,
SBI said on Wednesday.
That compares with the
`2,830 crore median net
profit estimate of 43 ana-
lysts polled by Bloomberg.
Arundhati Bhattachar-
ya, who became the first
woman to lead the bank
when she was elevated
last month, faces the dif-
ficult task of reducing bad
loans at a time when in-
flation is high, interest
rates are rising, and eco-
nomic growth is slowing.
India’ economic growth
TURN TO PAGE 2®
the three months ended June.
Other positives in the
results also may not be
sustainable. SBI’s net interest
income, another key
operational yardstick, was up
11.64% from a year ago,
compared with a tepid 3.48%
in the June quarter. That was
possible owing to a 19%
increase in its loan book,
something which has
happened because firms
switched their borrowings to
banks owing to money market
volatility. With money market
rates falling, bank credit
growth has been trending
downward.
The other reason for the net
interest income growth was
that SBI was able to improve
TURN TO PAGE 2®
The upholding
of rules related
to personal
guarantors can
help unlock vast
sums of dead
capital
MY VIEW | TIGhTROPE WAlk
Thursday, November 14, 2013 Vol.7 No.271 `3.00 in Delhi­NCR/`4.00 outside Delhi­NCR
EARNINGS: Tata Steel results
hint at recovery >14, 24
ECONOMY: BRICs face MINTs in growth race >4
TALKING MEDIA: A surrogate media ownership >8
VIEWS: Dani Rodrik on the real heroes of the
global economy >23
DOLLAR `63.32 æ `0.38 EURO `84.95 æ `0.66 GOLD `30,995 æ `185
Rajan soothes QUICK EDIT
market; bonds, Gold
BRANDS RIDE ON rupee gain
SACHIN MANIA
BY G OURI S HAH
A NUP R OY
questions
B Y J OEL R EBELLO
·························
MUMBAI
R eserve Bank of India (RBI)
gouri.s@livemint.com
·················································· governor Raghuram Rajan
MUMBAI calmed the money markets
S
achin Tendulkar plays his 200th and last test match in Mumbai beginning with a detailed and timely
on Thursday, and an entire industry has whirred to life in an attempt to cash statement on the current fi-
in. After all, as has been proved over a priceless 24­year career, what cricket nancial situation even as he
can sell, Tendulkar can sell better. ‘Forbes’ magazine pegged Tendulkar’s earnings announced measures to im-
at $22 million as of June 2012. Of this, prize money and earnings account for $4 prove liquidity in the banking
million, while endorsements account for a lion’s share at $18 million.
“There is dearth of role models in this country who, for one, have a squeaky
system.
Rajan said that “a majority”
clean image and are credible. Plus, he’s announced his retirement, so there is all
of the dollar demand from the
this sentimentality and emotion that everyone is awash with, which is probably
why you are seeing everyone pile onto this opportunity; it is the last chance they
have to juice the association dry,” said Anuja Chauhan, an author and advertising
oil marketing companies
(OMCs) is back in the foreign
exchange market and has been
consultant, who adds that while this strategy may work for brands such as Boost absorbed “smoothly”, even as
he announced the resumption
help those looking to jump onto the bandwagon for a free ride. of so-called open market oper-
“It (the Sachin mania) has reached ridiculous levels,” she said, adding that she ations (OMOs) to increase li-
deleted a message from her mobile service provider quidity in the system, with a
offering her a chance to download the “Sachin `8,000 crore bond purchase on
Anthem”. Monday.
Rajan’s announcements got
‘Mint’ presents a sampling of all the an instant thumbs-up from the
commercial activity around Tendulkar’s last money markets, with the rupee
Test match: recouping losses to gain for the
ADIDAS: Special #SRT (Sachin Ramesh first time in six trading ses-
Tendulkar for the uninitiated) T­shirt (`1,299). sions and the benchmark 10-
LUMINOUS POWER TECHNOLOGIES, whose year bond yields falling.
inverters are endorsed by the cricketer: a The rupee ended the day at
limited­edition inverter. 63.32 to the dollar, up 0.59%
MUSAFIR.COM, a travel website endorsed by from its previous close of
Tendulkar: free cab rides (on cabs featuring their logo 63.6950; it touched an intra-
and Tendulkar) to Wankhede stadium for the lucky few day low of `63.90 just after
that have managed to snag tickets for the match. opening, setting off fears that it
THE TATA LITFEST: an exhibition of unique cricketing TURN TO PAGE 3®
memorabilia and a lecture on Tendulkar by sports writer
Boria Majumdar.
THE INDIA TODAY GROUP: organized on Tuesday, a “Salaam
Sachin” conclave sponsored by Lava Mobiles, Jaypee TESTING KITS SHORTAGE
Cement, Priya Gold biscuits, Amul Macho innerwear and
Hero, among others. It featured former cricketers such
as Shoaib Akthar and Waqar Younis
speaking on “bowling to Sachin” and
Blood banks: no safety
actor Abhishek Bachchan talking of
about Tendulkar being a “real
guarantee for 90 days
hero”.
THE TAJ MAHAL PALACE IN
MUMBAI: It is bathed in blue B Y V IDYA K RISHNAN
light every evening to mark the vidya.k@livemint.com
momentous last Test match. ·························
NEW DELHI
KAILASH KHER: A “Sachin
Anthem”.
EBAY INDIA: Sachin Tendulkar I ndia’s government blood
banks will not be able to
guarantee safe blood for the
merchandise including limited­
edition Sachin silver coins (20gm and next 90 days because they have
200gm), and other things such as run out of stocks of HIV, Hepa-
books, posters, mobile phone cases, titis-B and Hepatitis-C diag-
miniature bats, coffee mugs, tees, caps, nostic kits, and the result
wallets and much else. could be a scramble for safe
blood.
COLLECTABILLIA.COM: A 25kg art In India, access to safe blood
installation featuring 100 autographed Coca­ is mandated by law and is the
Cola cans from Tendulkar’s “100th 100” at `5 lakh; primary responsibility of Na-
a `199 notebook featuring his initials; pre­ tional AIDS Control Organisa-
bookings for a special line including a bat signed tion (NACO). The organization
by Tendulkar and Sir Donald Bradman at $6,000; is charged with the task of pro-
autographed bats for $800; and autographed viding diagnostic kits to 1,137
balls for $300. government blood banks in the
CROSSWORD BOOKSTORE: A bouquet of country that test each unit of
books on cricket including books on blood for infections before use.
Tendulkar. In the absence of the kits,
RELIANCE LIFE INSURANCE RETIREMENT they will not be able to ap-
SOLUTIONS: Financial aid to Sudhir Kumar prove the use of blood.
Gautam, the man who paints his entire body
in the colours of the national flag and
The situation has arisen due
to the failure to procure testing
watches every match that he plays. kits in time.
According to the Reliance campaign, “Sudhir’s In the absence of centrally
god is retiring. His devotion should not.” procured diagnostic kits,
NACO has authorized local
purchase by blood banks,
ALSO SEE which officials maintain would
help in uninterrupted supplies.
>Business Of Life: Where “We are aware of the flaws in
fans don’t really count >P12­13
the system and are already
working on correcting them,”
LIVEMINT.COM
mies) work out ways to co-exist in a state Gaza, there are tens of millions of refu-
of ‘affordable’ war. This has adequate gees, displaced people and persecuted
jingoism to appeal to their political base minorities who are victims of war, con-
and is practical enough to avoid political flicts, social or economic subjugation,
hara-kiri. That is as true of our neigh- living in the very world that is enam-
bourhood as of Israel and Gaza, or for oured by space travel and AI-powered
that matter, the entire world. vehicles and is given to grandiose talk of
However, we are wired to accept nar- world unity and peace.
ratives agreeable to us. Especially those Leaders taking decisions about the
that we are inculcated into. Watching outcome of the war in Gaza or any other
the video of a four-year-old shivering in conflict are driven by simple reasoning.
sheer terror, with her face lacerated, What would satisfy their polity that can
slumped on a table bleeding from her be delivered fast enough to ensure their
wounds, in pain and bewilderment, will continuance in power? And what outra-
evoke strains of emotion depending on geous acts can they get away with with-
who that child was and the narratives out risking people’s revulsion? Ironi-
she is cloaked in. If the child’s face was cally, that is what it usually boils down
slashed and mutilated with a sharp to. Which brings us right back to where
razor, suggesting torture by Hamas ter- we began: The standards we adopt and
rorists in the presence of her parents, it
incites a particularly seething anger
in the community she presumably
belongs to. If instead it’s a face slashed
how we intend to develop as a society.
In any society, shivering lacerated chil-
dren are unlikely to grow into ‘gainful’
contributors. The use of hard violence
by shards of glass—the ones that ‘smart’ condones the creation of human time-
Israeli bombs throw around when they bombs in future generations, as does
explode, a different emotion overcomes the hypocrisy of euphemisms such as
another group. And what if it was a ‘collateral damage’ or whataboutery
Kashmiri face punctured with pellets or over who perpetuated an atrocity first.
Manipuri throats slit with machetes? There is no such thing as ‘collateral
How we choose to accept the suffer- damage.’ A wounded child, regardless
ing of others foretells our longevity as a of her nationality, is not ‘collateral’ to
race or nation and the character of the her parents. Her pain doesn’t become
world we shape for our children and any less if she is an Israeli or American,
narratives we commit them to. By an Indian or a Gazan. And if we choose
unconditionally empathizing with the to label a wounded child as a ‘collateral’
weak and persecuted, we demonstrate consequence of achieving our purpose,
sustainable core values. Those thrust then we are educating our next genera-
into conflict don’t get a choice of alter- tion that it is alright to kill innocents in
natives. Especially women and children pursuit of a goal. And so we must not be
with the misfortune of being born on surprised if that shivering lacerated
the wrong side of a border or narrative, child chooses to pursue revenge over
or simply being at the wrong place at reconciliation, regardless of which side
the wrong time. Innocent bystanders she belongs to.
don’t get the option of being killed by an Perhaps it is befitting that Bob
Israeli drone from above or Hamas Dylan’s song also tell us which beliefs
rocket from below. Orphaned children we should foster in future generations
and powerless women don’t get to and what we ought to demand from our
choose between state sanctioned secu- leaders. The last line of Dylan’s song is
rity forces or fate-imposed militants as (the thought): That if God’s on our side,
their murderers. he’ll stop the next war. We need leaders
That bleeding child on the table is who assure us of stopping the next
just the tip of an iceberg. Even without war—not starting it.
24 PAGES
+ 4 PAGES
OIL $107.20 æ $0.10
Twenty-five years ago,
O n Wednesday, Reserve
Bank of India
governor Raghuram Rajan
said that a part of the
compression in the current
people could be excused
account deficit was
because of steps taken to
curb gold imports. Virtually
for not knowing much,
in the same breath, he
expressed concern over
smuggling of the yellow
metal.
His statement only
proves that curbing gold
demand in a country with
such massive demand will
only fuel smuggling.
The government
probably realizes this. On
or doing much, about
the same day, it cut the
import tariff value of gold
by $23. It is a moot
question whether it took
this step because the
deficit has narrowed or
because smuggling is on
the rise.
There are, of course,
solutions to India’s gold
problem. For example, one
climate change. Today we
reason for the huge
demand is the search for
value in an inflation-prone
economy. Gold-backed
funds can obviate the need
to hoard the metal. These
funds have not been
promoted as vigorously as
they should have been.
have no excuse.
said Shobini Rajan, assistant
director general, NACO, ac-
cepting that there is currently
a blind spot when it comes to
tracking stock of kits.
“There is a lack of uniformity
(across the banks) as poorer
states tend to see more stock
out. We are toying with the
idea of decentralizing this
(procurement) slowly. It would
D E SMON D TU TU
be better for state governments
to take more ownership, do
their own stock-taking, and
obtain facility level insight.
Meanwhile, orders have been
placed and supplies are likely
to resume by the end of Janu-
ary,” Rajan added.
This isn’t the first time blood
banks have run out of testing
kits.
The problem was most acute
in January this year, when gov-
ernment-run blood banks in
India were completely stocked
out, resulting in NACO author-
izing local purchase of the di-
agnostic kits using funds gen-
erated by blood banks.
Nor is NACO the only agency
to have woken up late to a
health problem, highlighting
one of the most significant, yet
common problems ailing the
government’s healthcare initi-
TURN TO PAGE 3®
creditors have realized ₹2.92 trillion of value had a positive effect on the country’s credit
under various resolution plans of the initial culture and discipline in general.
total claims of ₹9.23 trillion. Thus, the reali- More recently, the Supreme Court’s deci-
zation ratio had improved marginally since sion to uphold the constitutionality of IBC
2021, from 20% to 32%. provisions related to personal guarantors is
The big benefit of the IBC, however, is a big shot in the arm for the insolvency reso-
invisible. Like the dog that did not bark. lution process. As of September, 2,289 insol-
Thanks to the threat of vency applications have been filed against
being pushed into an insol- personal guarantors involving corporate
vency resolution process debt of more than ₹1.64 trillion. Some of
(IRP), many debtors might these cases involve high-profile names.
be hastily settling their Guarantors had been seeking legal protec-
debts before their cases tion against the automatic application of
land up at the National insolvency proceedings against them,
Company Law Tribunal
(NCLT), which is the first
claiming that it amounted to a violation of
natural justice, and that resolution profes-
step of the IBC process.
Such unobserved data
sionals could not play an adjudicatory role.
The apex court asserted that the process
can be corroborated only was not arbitrary at all, dismissing more
through survey-based than 200 petitions of various personal guar-
questionnaires and anec- antors. Thus, a failure to recover dues from
dotal evidence. It needs a debtor will mean recourse can be taken to
independent verification personal or corporate guarantors within the
and triangulation both from lenders and same NCLT process. The IBC, therefore, is
debtors. But it is certain that credit discipline being continuously strengthened, whether
has improved and efforts to avert IBC provi- through legislative amendments, a tweaking
sions are significant. The ill-fated attempt of of rules, or a strengthening by means of case
the Reserve Bank of India to send all bad law. The medium- to long-term impact of
debt resolution after a deadline to the IBC this ruling on unlocking unproductive or
failed in the Supreme Court. But that move dead capital will be immense.
LIVEMINT.COM VIEWS TUeSday, 14 NoveMber 2023
MUMbai 13

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

From climate pledges to action: US infant mortality rise means

its moms need improved care
Let unbiased data show the way Policy to improve obstetric care must keep up with adverse policies

Technical assistance from independent NGOs can lay the groundwork for the policy successes needed to fight climate change

ISTOCKPHOTO

LISA JARvIS
is a Bloomberg Opinion columnist
covering biotech, health care and the
pharmaceutical industry.
ChRISTOPhER GRuNDLER &
AJAY MAThuR
are, respectively, senior adviser to the Crux
Alliance and director general of the
International Solar Alliance.

N
ew provisional data from the US
Centers for Disease Control and
Prevention offer a horrible statistic:

T
he Paris climate agreement, con-
cluded in 2015, has been instrumental
in rallying countries around the world
to commit to reducing greenhouse-
gas (GHG) emissions. But setting
ambitious climate targets has not
always resulted in meaningful action. The United
Nations’ recent ‘global stocktake’ report shows
that we are falling short of the drastic cuts
needed to achieve climate stability, underscoring
the urgent need for governments to act swiftly
and decisively to keep global warming within
safe limits.
As former regulators, we are confident that
developing effective solutions is still feasible.
While four economic sectors—industry, transpor-
tation, electricity and buildings—account for 75%
of global GHG emissions, well-designed public
policies could effectively reduce pollution from
these sectors, promote consumer savings, safe-
guard public health and stimulate sustainable
economic growth.
But crafting effective policies to transform
our fossil-fuel-based economies in time to avert
climate catastrophe and meet humanity’s energy
needs is a daunting task. Tackling it head-on
requires a combination of technical, economic and
political expertise, along with significant financial
resources and labour, but the agencies charged
with devising and implementing these critical
policies are understaffed and underfunded. Too
often, regulators have no choice but to rely on
the information provided to them by the very
industries they are charged with overseeing. This
dynamic can result in weak regulation and missed
policy objectives.
Crucially, independent NGOs can diminish this
power imbalance by providing policymakers with
the information and technical know-how they
need to design robust regulations that reduce
harmful emissions effectively.
The US Environmental Protection Agency’s
efforts to reduce truck pollution are a case in
point. In 2016, when the EPA was drafting rules to
limit GHG emissions from heavy-duty vehicles,
like commercial trucks, various industry bodies
provided policymakers with contradictory data.
The International Council on Clean Transporta-
tion (ICCT), an independent think tank, under-
took its own comprehensive study, which
included detailed cost projections for the pro-
posed regulations.
The ICCT’s impartial analysis provided the EPA
with data demonstrating the cost-effectiveness of
a stringent pollution standard. Consequently,
these regulations are expected to result in emis-
sion cuts equivalent to 294 coal plants, save truck
owners $170 billion in fuel costs, and prevent up
to $209 billion in damages over the next 30 years,
positioning the United States as a world leader in
truck efficiency.
Since then, the ICCT has assisted several gov-
ernments in crafting regulations to improve com-
mercial-truck efficiency. Using the organization’s
research, the European Commission drafted its
first-ever rule targeting pollution from commer-
cial trucks, which is projected to reduce truck
emissions by 150 million tonnes by 2035.
Specialized NGOs can also assist emerging
economies, especially those with fewer resources,
in kick-starting transformative climate pro-
grammes. By facilitating the rapid adoption of
clean-energy solutions, such organizations can
increase access to affordable, pollution-free elec-
tricity. Moreover, rules that promote the use of
cutting-edge technologies can foster innovation,
enhance competitiveness, and help countries
position themselves as climate leaders, benefiting
their people and the planet.
In 2006, for example, India launched a nation-
wide appliance-efficiency program. Through a
dedicated division of the Bureau of Energy Effi-
ciency (BEE), officials collaborated with NGOs
such as CLASP (formerly known as the Collabora-
tive Labelling and Appliance Standards Program)
to adapt key features from successful efficiency-
labelling programmes to the Indian market.
CLASP’s in-depth analysis also helped the BEE
identify which appliances it should focus on.
These insights enabled the BEE to launch its star
labelling programme rapidly. The agency then col-
laborated with another NGO, The Energy and
Resources Institute, to develop an efficiency pro-
gramme tailored for small businesses. By facilitat-
ing cooperation with business leaders, TERI
played a pivotal role in creating robust and cost-ef-
fective efficiency rules.
Since its launch, India’s appliance-labelling pro-
gramme has offset 400 million tonnes of GHG
emissions—roughly equivalent to the annual emis-
sions from India’s transportation sector—and is
projected to account for 30% of the country’s emis-
sions reduction by 2030.
In addition, India has established itself as a
leading manufacturer of energy-efficient air
conditioners, owing to the growing demand for
sustainable cooling solutions amid rising global
temperatures. With efficiency programmes
cutting corporate emissions by 105 million tonnes
annually, Indian industry now ranks among the
world’s most energy-efficient.
Although such activities rarely attract significant
attention, unbiased research provides regulators
with the data they need to devise transparent and
effective environmental policies. Technical assist-
ance from independent NGOs can lay the ground-
work for the policy successes needed to overcome
the climate crisis.
As developing and developed economies
enhance their state capacities, they will grow
more confident in setting ambitious targets,
creating a virtuous cycle. Given the right support,
we can ensure that the world’s next climate-action
report card features grades that make future
generations proud. ©2023/PROJECT SYNDICATE
The infant death rate in the US rose by 3%
in 2022 to 5.6 deaths per 1,000 live births,
the first significant increase in about 20
years. It’s too soon to know if this is the start
of a terrible trend or one bad year. Public
health researchers will need time and more
granular data to unravel factors behind the
rise in infant deaths.
Still, the data reflects hard truths about
the state of infant and maternal health care
in the US—and it could worsen. We should
consider even one year’s reversal in infant
deaths, a rate already exceeding that of
America’s economic peers, as a sign that
more should be done to address the issue.
When Marie Thoma, who studies repro-
ductive and maternal and infant health at
the University of Maryland School of Pub-
lic Health, saw the data, “my stomach just
dropped,” she says. The CDC pointed out
a few specifics: The increase was most pro-
nounced in babies born to Alaska Native
and American Indian women, as well as
Caucasian women and in births that were
pre-term (less than 37 weeks’ gestation)
and early pre-term (less than 34 weeks).
Plus, more deaths were due to maternal
complications and bacterial sepsis.
The question is whether this is a one-
year blip or part of a more concerning shift.
Public health experts stress that there’s not
enough information yet to draw conclu-
sions about why more babies died last year.
But they also stress that we can’t talk about
infant deaths without talking about the
ongoing crisis in maternal health. Moms
and babies are a package deal and failures
on one reflect failures for the other.
And it’s fair to say that “the pressures on
reproductive health are stacking up,” says
Laurie C. Zephyrin, senior vice-president
for Advancing Health Equity at the Com-
monwealth Fund. Those pressures include
increasingly limited access to abortion care
services, rising rates of maternal mortality
and morbidity, growing swathes of the
country that lack maternal care, and lack of
insurance coverage.
Maternal deaths in the US more than
doubled between 1999 and 2019, with
American Indian, Alaska Native and Afri-
can-American women faring much worse
than other groups. The numbers further
deteriorated during the early pandemic,
and while provisional CDC data suggest an
improvement in 2022 and 2023, they still
remain significantly higher than before
Covid hit. These unconscionable statistics
have forced some policy changes that
The role of abortion bans in America’s
infant mortality rise is under study AP
could benefit moms (and babies). Already,
38 states and Washington DC have
extended the time that women are covered
by Medicaid after birth from six weeks to a
full year, and seven more states plan to do
so, according to KFF. Given about 40% of
births in the US are covered by Medicaid,
the hope is that lengthier insurance cover-
age, which first became available in April
2022, can help move the needle on mater-
nal mortality and morbidity. But then,
some 10 million people and counting,
including some 1.8 million children
(including infants), have been dropped
from Medicaid as pandemic-era coverage
unwinds. There’s a reasonable fear that
infant and maternal mortality rates could
worsen if people aren’t getting appropriate
care, whether that’s before, during or after
a pregnancy.
It’s tempting to draw a line from newly
implemented abortion bans to infant
deaths. After all, three of the four states
with the most significant increases in the
death rate (Georgia, Missouri and Texas)
had the most restrictive laws either leading
into or immediately following the mid-
2022 dissolution of Dobbs. And while one
recent study suggests bans could lead to a
rise in infant deaths, it’s too soon to tell if
that will be broadly true. Among the fears
is that women will be forced to carry out
pregnancies that aren’t viable due to severe
genetic or other birth defects. An analysis
by CNN found that such deaths rose by 21%
in Texas after abortion rules tightened.
States with bans already had the worst
infant and maternal mortality rates, and
giving birth there could get riskier: a Com-
monwealth Fund analysis found that states
with abortion restrictions have a higher
proportion of so-called ‘maternity care
deserts,’ or counties lacking obstetric pro-
viders and hospitals offering such care, a
disparity that could widen as some obste-
tricians and gynaecologists opt to leave
states with strict bans.
Researchers will now pick apart what
happened in 2022 to understand how to
prevent infant mortality in the US from
worsening. But there are already many
emerging forces working against maternal
and infant health in America. The key
question is whether policy to improve
obstetric care can keep up with policy that
undercuts it. ©BLOOMBERG

MY VIEW | IT MATTerS

Indian IT firms must give up their ‘paisa vasool’ model

on this later). “Accenture’s clarity in embrac-
SIDDHARTH PAI ing these untested technologies contrasts
with the lack of visibility offered by the
homegrown technology giants,” says Sood.
What has let Indian IT majors stick with
their ‘paisa vasool’ (value for money) model
surge in offshore demand forced the usually
stingy Indian IT majors to pay large premia
to poach people from one another.
But now that things are ‘back to normal,’
the ‘paisa vasool’ aspect is at play again. Wit-
ness Wipro Ltd’s move earlier this year. On
sage T.V. Mohandas Pai, who was inter-
viewed by CNN News 18 when news broke on
this topic, this is “very wrong”
(bit.ly/3MDBvXq). During the interview, he
said that “companies need to be seen as
credible employers… yes, there is economic
tion” and that too at its new “Enterprise
Futuring” unit, formed as a part of an inter-
nal reorganization this year as a Spartan
wedge to counter the lead that firms like
Accenture have established for themselves
in emerging technology spaces.

V
arun Sood of Mint wrote a stinging
piece last week about how Accenture
continues to run circles around
Indian information technology (IT) firms
(bit.ly/3MF3Tso). If you haven’t already, I
urge you to read the piece. It places the lack-
lustre performance we have recently seen
from Indian IT companies in stark relief
is that the growth in salaries for Indian engi-
neers has not kept pace with the growth in
our economy. This is most evident in the
starting salaries being offered by our IT
majors to fresh engineering graduates.
These packages have remained more or less
constant for almost two decades, with insuf-
ficient correction for inflation. In my experi-
21 February 2023, India Today reported that difficulty… but you can’t say join with half Before you think I am singling out Wipro,
the company rolled back your salary… since these it is by no means alone. According to news
its commitment—by students would have reports, Infosys is abstaining from hiring
almost 50%—on the sala- Their low-cost turned down other offers to fresh graduates this year—after hiring
ries it was willing to pay go for the brand name…. 50,000 of these newly minted (and cheap)
fresh engineering gradu- game could When you are making engineers last year. Tata Consulting Services
ates (bit.ly/3SHqfgD). The ₹9,000 to ₹10,000 crore and HCL Technologies have also made it
article read as follows: “In
push them into profit per year, incurring clear that while they are still hiring, they

is co-founder of Siana Capital, a

venture fund manager.
against the visionary IT behemoth.
According to Sood, Accenture has clearly
defined its new strategy with “Reinvention
Phase” as its theme for growth, outlining
Generative Artificial Intelligence (AI), robot-
ics and the metaverse. The piece says Accen-
ture was early to define its focus on SMAC
(Social, Mobile, Analytics and Cloud), which
created a bedrock of its work in that space to
launch itself into its next phase. In contrast,
Indian IT has been asleep at the switch.
These firms have mainly been pushing their
tried-and-tested model of bringing in cheap
labour and assuming that the inexpensive
alternative they offer is the panacea to all ills,
while paying lip service to new spaces. (More
ence, in the early 2000s, fresh graduate
engineers in India could expect modest
starting salaries in the range of ₹2.5-3 lakh
per annum (or $4,500-6,500 at then prevail-
ing exchange rates). Apart from some excep-
tions, it appears as if the hiring of fresh engi-
neering talent at the same low salaries as two
decades ago is an exploitative tactic that is
still used by the country’s IT majors.
Accounting for inflation, this means that
engineers graduating today are only making
a fraction of what their seniors did 20 years
ago! The only exception was the sudden
surge during the pandemic, which pushed
global clients to outsource more of their
operations in a bid to keep down costs. This
an email, the company
asked the freshers to settle
a losing cycle
for almost 50 percent less
salary than what Wipro
of attrition,
was offering initially. Sala- automation and
ries were slashed to ₹3.5
lakh from the earlier ₹6.5 generative AI
lakh. While the tech firm
has blamed bad macro
environment for changes in its decision, it
has also asserted that freshers are at least
getting an opportunity to build their expert-
ise and learn better.”
“At least getting an opportunity”? I don’t
know if this was the exact statement, but if
so, it beggars belief. According to industry
an additional cost on 1,000
or 2,000 employees of
₹100-200 crore a year is
not going to hurt you…. It
should not be done…. It is
an issue of corporate val-
ues.” He advised freshers to
“take up the job with the
firm for now, get trained,
look around for a new job and leave as early
as possible.”
Now, Reuters says that Wipro has followed
up with similar action last week at the top
end of its staff. (reut.rs/47vFopG). Its report
claims that Wipro may skip giving hikes to
its “top performers with higher compensa-
intend to fill fewer spots than those being
vacated, thereby leading to reductions in
headcount. Infosys delayed giving pay hikes
by two quarters and HCL skipped giving
managers bump-ups.
“Blunt the top and trim the tail.” This
counter-strategy to cut salaries at both the
top and bottom end of the order cannot
make up for lost ground on new transforma-
tive technologies. It’s time that the Indian IT
industry changed course from ‘paisa vasool’
to adding front-edge economic value by
staying ahead of the technology curve. Else,
it risks getting into a model where the snake
eats its own tail through attrition, automa-
tion and generative AI.
14 Tuesday, 14 NoveMber 2023
MuMbai BUSINESS OF LIFE WELLNESS LIVEMINT.COM

ISTOCKPHOTO

How to combat climate

change with empty offices ISTOCKPHOTO

GOOD FOR
OUR HEALTH?
In vertical farming, crops are grown in
a controlled area, which engenders a
lot of health benefits.

u Complete control over growing

plants enables growers/farmers to
focus on the nutritional needs of the
crops without having to worry about
the success of their harvest.
Why you should
u Growing crops in accessible spaces
like empty office spaces or within
one’s home means fresh food can be
step out for a
harvested moments before cooking.

u There is ongoing research that’s

using vertical farming to grow foods
‘silent walk’
that can be adapted to specific The zero-distractions activity keeps
dietary needs.
you grounded to the present moment
change in the climates in which they are grown.
According to food delivery app Deliveroo, only Tanisha Saxena
15 plants contribute to almost 90% of our energy feedback@livemint.com
intake, and that’s a hefty reliance on something.

I
According to National Geographic on “Staple n the realm of wellness trends, ‘silent walking’ is the latest one
Foods,” more than 50,000 plant options are to claim its spot on the centre stage. The latest obsession on
available worldwide, many of which are low- TikTok offers its practitioners a unique path to mental serenity
cost in terms of water usage and energy, that – where silence becomes your most powerful workout partner.
may make natural alternatives. We just have to It all started when TikTok influencer Mady Maio shared her
find what they might be. nutritionist’s recommendation of going for a daily 30-minute
walk as an alternative to intense cardio workouts. To maximise
THE 15-MINUTE CITY OF THE FUTURE its advantages, Maio’s boyfriend proposed walking without any
If we zoom in and take the micro view, it’s not distractions- no AirPods and no listening to podcasts or music.
hard to get excited about how using abandoned Since then, silent walking has grown into a popular movement,
In a world that’s already worldwide are looking at these empty hulls and ple live also reduces transportation costs and office buildings as vertical farms can change with many individuals claiming that it provides them with a
realizing that they make amazing vertical farms. carbon emissions associated with transport and the shape of how we live our lives. In fact, it’s a chance for solitude and has improved their mental clarity.
stretched with food A vertical farm is precisely as it sounds: a delivers fresher food more quickly. significant step towards the idea of the Silent walking or walking meditation involves walking slowly
farming structure that is vertically stacked on There are a lot of benefits associated with ver- “15-minute city”. and mindfully, paying attention to what is happening in the
shortages, office spaces top of each other, some by using hydroponics tical farming. However, you still need to keep The 15-minute city is an urban-planning con- moment. “Walking silently helps awaken our senses and become
and aeroponics, some with conveyor belts to the electricity running to keep the lights on, cept that encourages sustainable living, where more aware of our environment and the people around us,” says
that are empty courtesy mimic a plant’s transition through a circadian which can be a costly expense. This is why many all the trappings of small communities – your Dr. Jitendra Varshney, wellness director at Six Senses Vana,
WFH may hold a solution rhythm. Whatever the process, the goal
remains: we can grow food in these structures.
vertical farms tend to stick with items like leafy
greens and strawberries. However, AgriPlay,
grocery stores, work, restaurants, and more- lie
within a fifteen-minute walk from your home.
Mumbai. “You can practice this activity while moving from one
room to another at home or at work, at a slightly slower pace than
to growing quality food based in Calgary, Alberta, produces tomatoes, It’s almost as if our entire psyche is starting to what you are used to,” he adds.
GROWING CLEANER FOOD strawberries, cucumbers, greens and much shift from being urban dwellers who endlessly Silent walking is a powerful practice as it promotes mindful-
It’s mind-boggling that we haven’t figured this more, with some crops, according to an article commute to the things we need to adopt a local ness and heightened awareness. Dr.
Jen Thomas out sooner. We have greenhouses and hot- in the Smithsonian titled “Empty Office Build- way of living while still living in our grand cities. The rhythmic, Shekhar Reddy, a psychologist in
feedback@livemint.com houses and at-home hydroponic plant-pod ings Are Being Turned Into Vertical Farms,” Deliveroo initiates the conversation about verti- repetitive act of KIMS hospital, Hyderabad says,
machines. Still, we have yet to consider convert- being harvested thirty times a year. cal farming in their 2023 ‘Snack to the Future’ “When you go on a silent walk, you
walking, in

O
ffice space, post-Covid-19, has
become a wasteland. What used
to house a vibrant hum of work-
ers talking on cellphones,
checking their watches as they
busily made their way to meetings, lies eerily
empty with remnants of recent history. Cov-
id-19 unshackled us from our desks and sent us
all home to work from our bedrooms and
kitchen tables, leaving our office space looking
like the set of the next big horror movie. Perhaps
extreme, but covid-19 was not only a hallmark
and harrowing experience in our lifetimes, but
it’s also one that transformed many things about
our society, not the least of which was our desire
to collectively work from a big building. Compa-
nies have realized how virtual they can be when
pressed and have learned how to optimize their
workforce to deliver the same quality of their
operations despite workers dispersed across
major geographical areas. Office buildings are
now mere monuments to a time just passed.
And what do we do with such empty vestiges
of the corporate world? Grand office buildings
take up space and require energy and money to
maintain, but equally so to bulldoze them to the
ground. Well, some innovative companies
ing our empty architectural structures into full- However, for every benefit, there is a draw- report by imagining that they could use their
blown plant-growing devices, such as empty back. For example, the article “The 7 Biggest food delivery service to scoot around town and
office buildings, shipping containers, and aban- Disadvantages of Vertical Farming” on agritech collect freshly picked and packed produce as
doned underground mines. company Arcticfarming’s blog explains that and when it’s needed, reducing transportation
They are surpris- aside from the rather costs and a substantial amount of food waste.
ingly efficient as well. substantial start-up If we zoom out and take a macro view of the
It just requires a Vertical farms use 95% less costs because the benefits of vertical farming, it’s more than just
steady electrical sup- water than traditional farms and technology doesn’t allowing humans to be connected on a local
ply to power the artifi- exist in economies of level and offering fresh produce; vertical farm-
cial lights and access can produce food all year, scale, vertical farms ing in office buildings could be a substantial
to water. According to irrespective of the weather are truly limited to piece of the food supply chain puzzle, in the face
“How Vertical Farm- small items due to the of climate change and food shortages. Deliv-
ing Can Transform space in which they eroo’s report projects the world’s population to
Unused Office Buildings,” an article published need to grow, and the correct pollination strate- grow by another 2 billion people by 2040.
by Nasdaq, vertical farms can grow up to 350 gies that need to be employed. However, I am a That’s 2 billion more mouths to feed in an
times more plants than traditional farming little skeptical about these arguments because already stretched global economy with famine,
using the same amount of land and 95% less if we can set our brains to developing a metav- natural disasters and food deserts where people
water. They can also produce food year-round, erse and an A.I. bot that is now the CEO of a can’t easily access healthy, fresh food options to
no matter how bad the weather is outside. And drinks company (Dictador), I daresay we can rub feed their families. To say we need innovation
they also don’t need chemicals to control pests some brain cells together, find the funding, and and human ingenuity to tackle this problem yes-
and weeds, making cleaner food. research the solution to these issues. terday is an understatement. By making a con-
The trickle-down effect of growing food in We will, however, have to get innovative with certed effort to become fractional farmers and
urban locations, rather than large swathes of the foods we grow, as I don’t think many people plan food harvests within our office buildings,
farmland in rural areas, is that it brings the prox- want to base their entire diets around basil and we could collaborate and personally take on the
imity of the ingredients and the food itself closer strawberries. We must bear in mind that many challenge of feeding the community around us
to places that need it – restaurants and grocery of the plant species we know and love today may based on its unique needs.
stores. Being centrally placed where most peo- simply not exist in years to come because of the Jen Thomas is a master women’s health coach.
intentionally focus on the physical
solitude, can sensations of each step: from the con-
help reduce tact of your feet with the ground to
mental chatter the movement of your muscles and
the feeling of balance.” Additionally,
synchronising your breath with your
step can deepen your connection to the present moment.
Being attuned to your surroundings, such as the sounds of
nature or the beauty of your environment can enhance this
experience, Reddy notes.
In 2022, the World Health Organization reported a 25%
increase in the global prevalence of anxiety and depression dur-
ing the first year of the COVID-19 pandemic. Recent data from
April 20, 2023, further confirms that the pandemic had a severe
impact on the mental health of young people and women com-
pared to other groups. Silent walking then can be a valuable tool
for reducing anxiety because it encourages mindfulness. “The
repetitive and rhythmic nature of silent walking can calm the
mind and reduce mental chatter. It is a simple yet profound way
to escape the distractions of daily life and find peace in the
present,” Reddy says.
While not extensively researched, silent walking is known to
help reduce stress and depressive symptoms, and improve health
metrics like HbA1c levels and blood pressure in diabetics. “Estab-
lishing a routine is key to success. So, all people need to do to
derive the benefits of silent walking is to set aside a mere 30 min-
utes each day or week to it,” Varshney concludes.

Here’s why everyone’s switching to a plant-based diet ISTOCKPHOTO

The diet that has processes, and use antibiotics and other Shalini Garwin Bliss, executive dietician at heart health is likely to improve. “Diets
drugs to make animals grow faster and Manipal Hospital, Gurugram. “When based on plants typically contain a lot of
emerged as a talking bigger, in order to maximise production planned carefully, plant-based diets can fibre, which promotes healthy digestion
point this year has and profits. be quite beneficial. For example, tofu, len- and lowers the risk of digestive problems.
Over time, many who switched to a tils and quinoa are excellent sources of Additionally, they may improve general
health benefits, and is plant-based diet and eliminated meat and well-balanced protein,” says Cult Fit’s vitality by reducing inflammation and
dairy from their diets, started reporting head of nutrition Chandni Haldurai. promoting a more alkaline body,” explains
lighter on the wallet too health benefits such as lower blood pres- Haldurai.
sure, better weight management, and AN ECONOMICAL DIET No diet is without shortcomings, how-
Shrenik Avlani healthier levels of cholesterol, among oth- Apart from the fact that plant-based diets ever. Just because a food is labelled as
feedback@livemint.com ers. All this played its part in fuelling the are much more environmentally friendly, plant-based, vegan or vegetarian does not
popularity of plant-based diets, and today they are also more practical and economi- mean it will be healthy, warns Jain. He

P
lant-based diets are all the rage these
days. There are full-fledged celebri-
ty-endorsed documentaries such as
the Netflix hit GameChangers, as well as
multiple scientific papers in top journals
that testify to the benefits of such diets. Be
it professional athletes, fitness trainers,
nutritionists or well-being influencers,
you’ll find a variety of people talking up
the benefits of switching to a plant-based
diet. While the vegetarian diet one finds in
India is largely plant-based, it is not
entirely plant-based.
Our vegetarian diet includes milk and
milk products such as yoghurt, butter
milk, paneer, ghee, butter and cheese that
we eat on a daily basis.
Plant-based diet started as a principle-
based approach as animal products such
as meat, poultry and milk often have a
huge carbon footprint. Moreover, meat
producing industries do resort to cruel
even someone like Arnold Schwarzeneg-
ger swears by a plant-based diet.
KEEPS BP NORMAL
“A plant-based diet may help in keeping
your blood pressure within normal range.
Vegetarians have a lower risk of develop-
ing hypertension than non-vegetarians. It
keeps your heart healthy. Meat contains
saturated fat which can increase the risk of
heart disease. To reduce the risk of devel-
oping heart disease, you need to consume
foods with anti-inflammatory properties
which are abundant in green leafy vegeta-
bles, whole grains, walnuts, olive oil,
tomato and fruits,” says Dr. Sanjay Jain,
consultant for internal medicine, cardiol-
ogy and diabetology at the Kokilaben
Dhirubhai Ambani Hospital in Indore.
He says that a plant-based diet may also
prevent type 2 diabetes. “As an animal-
products-based diet includes more fat, it
may cause weight gain and indirectly lead
to the development of insulin resistance
and increase the risk of diabetes. A plant-
based diet, on the other hand, can help
you to lose weight as whole grains and
vegetables have relatively low glycemic
index,” Jain says adding that a plant-based
diet also helps in decreasing the risk of
cancer. “Plant-based foods contain nutri-
ents like fibre, vitamins, minerals and
phytochemicals that protect us against
cancer,” he says.
The efficacy of plant-based diets, how-
ever, depends on one’s health and fitness
goals. “The debate over whether a plant-
based diet is superior to one that includes
meat is a complex and nuanced one. Both
diets have their merits and drawbacks,
and the answer largely depends on indi-
vidual preferences and health goals,” says
cal. While some specialised vegan foods
can be pricey, budget-friendly staples
include grains, beans, and lentils. “The
economic case in favour of plant-based
diets becomes persuasive when you take
into account the long-term health advan-
tages and decreased medical costs. Meal
planning and locating economical plant-
based supplies are key to practicality,
which may make it sustainable both for
earth and your money,” says Haldurai.
Eliminating meat, dairy, fish, and poul-
try from your diet can lead to several
health benefits, says Bliss. “These may
include reduced risk of heart disease,
lower cholesterol levels, better weight
management, and improved digestion,”
she adds. Haldurai points out that a lower
consumption of saturated fat from meats
and animal products means a lower risk of
developing certain malignancies, and bet-
ter weight control, which means your
cites the example of highly processed
foods rich in sodium such as French fries,
foods made with refined grains like white
bread, sugary drinks and soda. Dietary
shortages are commonplace when a plant-
based approach is not well-balanced,
especially in vitamin B12, iron, calcium,
and Omega-3 fatty acids, says Haldurai.
We need Omega-3 fatty acids for healthy
skin, hair and nails , and calcium is needed
for bone health.
Some people may also find it challeng-
ing to adapt to the dietary restrictions. Not
to mention the social situations in India
where butter and ghee are central to most
foods. “Careful planning and education
can help mitigate these challenges, mak-
ing a plant-based diet a viable option for
many. Ultimately, the choice between a
plant-based or omnivorous diet should
align with individual health goals and eth-
ical considerations,” says Bliss.