MUMBAI, New deLHi, beNGALuru, kOLkAtA, cHeNNAi, AHmedAbAd, HyderAbAd, cHANdiGArH*, PuNe*, LuckNOw* VOL. 7 NO.

Monday, January 8, 2024

Personal income tax to get a Adani weighs global plans for

livemint.com rebate sweetener uP1 airports business uP1
 MUMBAI, NEw DELHI, BENGALuRu, kOLkATA, CHENNAI, AHMEDABAD, HyDERABAD, CHANDIGARH*, PuNE*, LuCkNOw* VOL. 7 NO. 7

Monday, January 8, 2024

Think Ahead. Think Growth.

mint primer QUICK EDIT

What the surprise Point of

manufacturing balance
A Lagrange point is a position in
slowdown means space where the gravitational
forces of two large bodies, like
the Earth and Sun, interact to
BY N. MADHAVAN produce a balance that holds a
The HSBC India Manufacturing Purchasing Managers’ Index (PMI), small third body in place
compiled by S&P Global, surprisingly fell to an 18-month low in between both. Get the math
December. This came at a time when the economic growth has right, and it’s the perfect spot in
crossed expectations. Mint reviews its possible effect on the economy. space to place a solar observa-
tory, as India’s space agency did
A temporary blip? this weekend with its Aditya L1,
A drop in Manufacturing PMI comes at a time when economic growth is accelerating. which joins Europe’s SOHO,
60 among others. LI refers to the
PMI* first of five balance points. This
58 marks another moment of pride
for India, which has also been
56 investing in pushing the fron-
55.4 tiers of lunar knowledge. The
54 54.9
event holds inspiration for sci-
ence students, aspiring space-
52
farers and others, including
50
those inspired to see our latest
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec space success in terms ranging
2023 from euphoric to metaphoric.
* A score above 50 means expansion and below 50 means contraction Source: S&P Global After all, L1 offers an elegant
SATISH KUMAR/MINT
example of an equilibrium in
What was surprising What caused the fall in nature. To the literary inclined,
1 about the PMI data?
The manufacturing PMI for
2 manufacturing PMI?
Many factors have contributed to
it evokes the cautionary myth of
Icarus, who soared higher than
December came in at 54.9 as it. The pace of new orders has he should have and got danger-
against 56 in November. It was also been slower than in previous ously close to the Sun. It’s what
the lowest since October 2022 months. This is due to fading the world has hot-propelled its
when the index fell to 55.3. A demand for certain products. Also, way towards, in this metaphor,
reading above 50 means it could well be a case of inventory as the gaseous exhaust of an
expansion while that lower than management, as companies had
Industrial Age upsurge in fuel-
50 means contraction. This built up stock in view of the festive
surprised many as the economy season in the months before. burning leaves us exposed to
had just registered a strong 7.6% Exports have been sluggish as well, climate disaster. Studying the
growth in the July-September registering negative growth in the Sun could perhaps help design
quarter on the back of a 7.8% first two quarters of 2023-24. a good sun-shield someday.
growth in the April-June quarter. Inflation continues to remain
The just-concluded festive season, closer to the top end of Reserve
if consumer goods companies are Bank of India’s (RBI) target band of
to be believed, has been good, with 4-6%. With a combination of these
outstanding retail loans crossing
₹50 trillion for the first time in
factors, manufacturing output in
December rose at the slowest pace
MINT METRIC
November last year. in 14 months. by Bibek Debroy
BLOOMBERG

A lady named Jess

3 What does this mean for
India’s economic growth?
If the manufacturing slowdown continues,
Thought Alexa created a mess.
it may hurt growth that has been galloping
With her husband, its chats
at over 7.5% in the first and second quarters Drove her bats.
of 2023-24. As things stand, RBI expects
2023-24 growth at 7%. The government’s
She threw out the intrusive excess.
first advance estimate pegged it even higher
at 7.3%. All indicators, including GST mop-
up and direct tax collections, indicate
continuation of robust growth.
QUOTE OF THE DAY
I’m trying my best to ensure
4 How are the other
economies faring?
Global Manufacturing PMI ended
5 What is the outlook for
Indian manufacturing?
The Future Output Index, which
that democracy should
2023 with a December score of 49, measures purchasing managers’
continue in this country.
the 16th month it has remained optimism on production in the Without democracy, you cannot
below 50. US manufacturing has near term, is encouraging. Indian
been contracting for the past 14 purchase managers’ confidence is
make any development.
months. Europe, Japan and the at a three-month high. This
entire ASEAN region are faring no indicates a strong possibility of
better. China saw a manufacturing recovery in the manufacturing
PMI of 50.8 in December—a four- PMI soon. Other indicators like tax
month high. The battle to tame collections and corporate results SHEIkH HASINA
inflation in developed markets has have been buoyant. Exports may PRIME MINISTER,
seen interest rates rise and remain sluggish. However, a BANGLADESH
discretionary spending fall. India rebound in rural demand can push
remains the silver lining in an consumption, and consequently
otherwise gloomy manufacturing the manufacturing PMI, to much
story across the world. higher levels.

THE WEEK AHEAD

11-12 JAN

ZEE-SONY MERGER CASE IT EARNINGS

8 JAN

National Company Law Appellate Tribunal to Infosys and TCS to report Dec-quarter earnings
hear lenders’ plea seeking a stay on the merger. on 11 Jan; HCLTech and Wipro the next day.
11-12 JAN

BAJAJ AUTO SHARE BUYBACk GAZA WAR AT ICJ

8 JAN

Auto major to consider a proposal for share buy- International Court of Justice to hear South
back. Africa’s genocide charge against Israel.
8-12 JAN

PRO-CHINA TURN INDIA’S LONGEST SEA BRIDGE

12 JAN

New Maldives President Mohamed Muizzu to visit Prime Minister Modi to inaugurate the 21.8-km
China, in what is seen as a snub to India. six-lane Mumbai Trans Harbour Link.
10-12 JAN

GUJARAT SUMMIT INFLATION DATA

12 JAN

Vibrant Gujarat Global Summit 2024 to be held in Statistics ministry to release retail inflation data
Gandhinagar. for December 2023.
 PLAIN FACTS

Apple is smartwatches
king, but reign is tough
BY HOWINDIALIVES.COM

I
n December, Apple was briefly banned from selling its two most recent watch models—Series 9 and Ultra 2—in the US,
due to an ongoing patent dispute with Masimo, a medical device maker. The dispute reflects the rivalry in the smartwatch
market, dominated by Apple at present. That position is at stake as competition intensifies.
The fight is crucial for Apple as it seeks to strengthen its revenue streams beyond iPhones. Although the iPhone’s contribu-
tion to its total net sales has dropped from 62% in 2017-18, it was still a hefty 52% in 2022-23. Meanwhile, the share of weara-
bles, home and accessories, which includes Apple Watch and Apple AirPods, grew from 6.5% to 10.4%.
Apple, today, has a smartwatch market share of 22%. In the high-end HLOS (high-level operating system) segment, its
market share in July-September 2023 was a leading 45%, according to Counterpoint Research. To target the top end of the
HLOS market, Apple will have to fight companies such as Garmin, which has a loyal base of outdoor sport and fitness enthusi-
asts who swear by the range and accuracy of fitness metrics its devices offer. Apple’s recent ban was related to its infringement
of Masimo’s wireless pulse oximeter patent.
The sale of Apple smartwatches is also tied to smartphones. In the US, its “attach rate” (the percentage of iPhone users
also owning an Apple Watch) was 30% in 2022. However, the Apple stock got two downgrades in early January from Barclays
and Piper Sandler, both citing concerns around iPhone sales.

Apple's revenues from wearables

doubled in five years
Apple's revenues from wearables+ ($ billion)
Share of Apple's total revenues (%)

6.5 9.4 11.2 10.5 10.5 10.4

41.2
38.4
39.8 Apple dominates high-end
smartwatches globally
Market share in high-level operating system segment
30.6 in Q3 2023 (%)

23
24.5 Others
45
Apple
17.4

14
Huawei

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23

Wearables+ includes watches and airpods. Apple's financial year ends on the last 18
Saturday of September. Samsung
Source: Apple Source: Counterpoint Research

The Huawei Challenge Huawei is the leader in

smartwatches in China
WHILE APPLE dominates the smartwatch market globally, it Market share for smartwatches in China (%)
trails Huawei and imoo in China. Huawei’s market share in 39 Q2 2022 Q2 2023
China jumped to 39% in Q2 of 2023 from 26% a year ago, while
that of Apple Watches dropped from 16% to 13%, according to 32
Counterpoint Research. Since China accounts for a fifth of the
global smartwatch market, Huawei’s global share has also risen. 26
One reason is Huawei’s resurgence in smartphones. Last 21
October, Bloomberg reported that the sale of the iPhone 15
series in China dropped by 6% compared with the prior year, 16 16
14 13
while Huawei’s Mate 60 series doubled its sales in the launch 10
month compared with a year ago. Huawei’s bundled sales 8
model (clubbing smartwatches with phones) also helped,
according to Counterpoint Research. Meanwhile, Apple has 2 2
been facing other headwinds in China. Last September, the Huawei imoo Apple Mi Oppo Others
Wall Street Journal reported that China has banned Companies arranged in descending order of 2023 share.
government officials from using iPhones at work. Source: Counterpoint Research

Apple isn't one of India's top 5

smartwatch brands
Price-sensitive India
Market share for smartwatches in India (%) IN INDIA, Apple’s challenge is to match its growing iPhone
Q2 2022 Q2 2023 sales with watch sales. It recorded revenues of $5.9 billion in
2022-23, up 47.8% from the previous year. It was expected to
28.5
Noise (Nexxbase)
27.6 ship 9 million iPhones in 2023, against 6.5 million in 2022. Its
attach rates are low. Only last year, it opened the first Apple
24.8
Fire-Boltt
23.8 store in India, which could drive cross-selling.
19.7 In India, Noise and Fire-Boltt control half the smartwatch
boAt (Imagine) segment. Apple doesn’t feature in the top five. India could offer
15.2
Apple a huge opportunity in smartwatches, too.
Boult Audio 0.3 India accounted for 34% of global shipments in Q2 of 2023,
3.4
2.6 up from 22% in the previous year, according to Counterpoint
Titan
3.4 Research.
24.1 However, India is price-sensitive, and the growth is currently
Others
26.6 driven by basic smartwatches, running a lighter version of an
Companies arranged in descending order of 2023 share. operating system, with no ability to install third-party apps. Its
Source: IDC
success depends on increasing attach rates.

Wearables Opportunity Smartwatch share in wearables is

tipped to rise
WHILE DOWNGRADING Apple’s stock, Barclays raised Each product type's share (%) in global shipments
concerns over the company’s lack of new products. Apple has
Earwear Smartwatch Wristband Others
successfully moved from a Mac-driven to an iPhone-driven
ecosystem over the past decade, but “less ecosystem pull-through 4.7 0.3
with new products/services” could make growth harder over “the 5.7 0.3
next several years”, Barclays noted. Smartwatches might still
have some juice. IDC expects the share of smartwatches in
wearables to grow from 32% now to 34% by 2027, with average
Total Total
annual growth of 6.3%. But Apple’s small rivals are climbing the 625.4
32 519.9 34
value chain. Last October, the research director of the wearables million million
team at IDC noted that many small players driving growth are
focused on geographies such as China and India. “Looking ahead,
62 61
it isn’t too hard to imagine some of these brands being mentioned
in the same breath as the world’s most popular ones,” he wrote. 2023 2027 (projected)
www.howindialives.com is a database and search engine for
Source: IDC
public data.
PARAS JAIN/MINT

PEANUTS by Charles M. Schulz

 MuMBAI, NEw DELHI, BENGALURU, kOLkATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCkNOw*
Monday, January 8, 2024
SENSEX 72,026.15 0.00
Personal tax to get
a rebate sweetener
Income-tax rebate may be raised to ₹7.5 lakh in interim budget
Gireesh Chandra Prasad
gireesh.p@livemint.com
NEw DELHI
T
he interim budget on 1
February is likely to
increase the tax rebate
under the new personal
income tax regime, two
people close to the discussions
said, giving relief for the middle class
ahead of the approaching general
elections.
The plan is to raise the tax rebate,
which is now available for income up
to ₹7 lakh, to about ₹7.5 lakh under
the new regime, the people said on
the condition of anonymity.
Tax rebate eligibility is calculated
on the net income after taking into
account standard deduction of
₹50,000. Accordingly, a person with
income of ₹7.5 lakh, after accounting
for the standard deduction, will not
have to pay any income tax from
2024-25 onwards, according to the
proposal under discussion.
“This is aimed at giving tax benefit
to the hard-work-
ing middle class.
Of course, in the
full-year budget
to be presented
later in the year (after the national
elections), finer modifications could
be made,” one of the two people said.
VOL. 7 NO. 7 Rs. 10.00 18 PAGES
Poor supply chains choking Rothschild’s Shah says India
livemint.com airlines uP10 biz mirrors clients’ focus uP4
NIFTY 21,710.80 0.00 DOLLAR ₹83.16 ₹0.00 EURO ₹90.76 ₹0.00 OIL $78.76 $1.17 POUND ₹105.29 ₹0.00
Earnings bet, bond
index move lift FPI
Adani weighs
global plans
DON’T MISS
for airports
inflows to 9-yr high business
Mihir Mishra & Varun Sood
BFS
ANNUAL
SUMMIT&
AWARDS
16th Edition
Ram Sahgal Turning tide NEw DELHI/BENGALURU
ram.sahgal@livemint.com FPI inflows could set a new
Mint BFSI Summit and Awards
T
MUMBAI record in 2023-24. he Adani Group is look-
Net FPI flows* (₹ tn) ing to take its airports event in Mumbai on 11 January
GoodIeS Box
F
oreign portfolio invest- 3 2.77 2.68 business global begin- As many as 14 awards are to be presented at
ment (FPI) net inflows into ning with the Far East and the Mint BFSI Summit and Awards 2024
Individuals in the income range of ₹5.5 lakh to ₹9 lakh a year filed the Indian equities and debt in
2
Southeast Asia, a top executive event to be held on 11 January in Mumbai.
highest number of tax returns in AY22, showed CBDT data last year. The awardees have been picked by a stellar
2023-24 have reached a nine- 1 aware of the development said.
% growth year high, showed data from The expansion would be part jury of well-known names in the financial
0 services sector. >P6
Net direct tax collection* (in ₹ tn) Tax returns filed** (in mn) the National Securities Deposi- of the second phase of the air-
FY15 FY24**
tory Ltd (NSDL). -1 port plans of the group, which
20.7 9
At ₹2.68 trillion, this is just -2
entered the sector in 2020. Haldiram’s set to enter the
75.1 81.8 ₹9,625 crore away from *Include equity, debt, debt variable “The new strategy will run premium chocolates market
2014-15’s record net inflows of reverse rate repo and hybrid. parallel to the domestic
**As of 5 January Haldiram’s Foods International (Nagpur) is
₹2.77 trillion. In monthly aver- expansion strategy through entering the premium chocolate market as it
Source: NSDL
age terms, foreign portfolio acquisition of airports being widens its portfolio of packaged foods. The
PRANAY BHARDWAJ/MINT
13.7 investors have invested net divested by the government, brand will be retailed across modern trade
11.4 FY24 ₹29,780 crore in Indian equi- and the widening spread and also looking at bidding for and premium general stores as well as D2C
FY23
FY23 FY24 ties and debt this fiscal. With between the yields of US and greenfield airports,” the exec- platforms and quick commerce sites. >P7
three months left for the close India 10-year bonds. utive said on the condition
*1 April to 17 December; **Assessment years up to 31 December Source: CBDT
of 2023-24, the final figure “FPI inflows are likely to of anonymity. War in Gaza dampens free trade
could set a new record for FPI. remain strong owing to robust Any expansion will be
talks between India and Israel
POLL PITCH Between equity and debt, corporate earnings perform- funded by group company
the former accounts for net ance,” said Gautam Duggad, Adani Enterprises Ltd, the Talks between Israel and India on a free
THe move is aimed at THe interim budget is BuT, finer changes
flows of ₹2.02 trillion, while head of research, institutional executive added. trade agreement have hit the skids due to
giving tax benefit to likely to include a could be made in the the war in Gaza. The war, sparked by the
the middle class Finance Bill post-poll full budget debt investments stand at equities, Motilal Oswal Finan- In the first phase, the Adani
Hamas attack on Israel on 7 October 2023,
₹66,105 crore. In 2014-15, the cial Services. Duggad antici- Group had won contracts to has consumed much of the focus of India-
SARVESH KUMAR SHARMA/MINT
year that the Narendra Modi pates Nifty earnings to grow by operate, develop and manage Israel ties, people in the know said. >P2
The interim budget to be pre- In the last Union budget, the gov- government first came to 10% in the December quarter, six airports of the Airports
sented by Union finance minister ernment raised the rebate available power, equity inflows were at following a strong 28% growth Authority of India (AAI) in tier
Nirmala Sitharaman is likely to have under the new personal income tax ₹1.11 trillion, while net debt in the September quarter. II cities for 50 years—Ahmed- Policy for urban solid waste use
a Finance Bill pro- regime from ₹5 lakh to ₹7 lakh, while inflows stood at ₹1.66 trillion. According to Sujan Hajra, abad, Lucknow, Mangaluru, in highway projects soon
posing the also raising the basic exemption limit Inflows have jumped thanks chief economist and executive Jaipur, Guwahati and Thiru- The Union government will soon come out
change. to ₹3 lakh from ₹2.5 lakh earlier. The to expectations of robust corpo- director, Anand Rathi Shares vananthapuram. with policy guidelines mandating use of
Emails sent to a government then also allowed a rate earnings; global fund pur- and Stock Brokers, overall FPI It also acquired the GVK urban solid waste in all highway projects
finance ministry deduction of ₹15,000 for family pen- chases ahead of India’s upcom- flows have also been boosted by group’s stake in the Mumbai across the country. The plan aims to cut the
spokesperson on Friday seeking sion, reduced the surcharge for high ing inclusion in the JP Morgan global funds buying Indian gov- airport, India’s second busiest use of soil from agricultural land for building
comments remained unanswered Government Bond Index- embankments for highways. >P2
till press time. TURN TO PAGE 6 Emerging Markets (GBI-EM); TURN TO PAGE 4 TURN TO PAGE 6
02 Monday, 8 JanuaRy 2024
MuMbai ECONOMY & POLICY LIVEMINT.COM

STRAIGHT
F O R WA R D
Gaza war dampens push on ‘Stop selling
unhealthy
SHASHI SHEKHAR

Respond to this column at

feedback@livemint.com
India-Israel free trade talks food in
canteens’
Somrita Ghosh
OPPOSITION YET TO Normalcy in FTA negotiations is expected after de-escalation of the conflict, say officials
somrita.ghosh@partner.livemint.com
NEW DELHI

DISCOVER MEANS
T
he health ministry has
Shashank Mattoo & Rhik Kundu “The scope for trade opportunities directed all central gov-

FOR A FIGHTBACK NEW DELHI between our countries is huge and

there is a strong desire to finalise an
ernment-run hospitals
and medical institutes to stop

T
alks between Israel and India FTA that hopefully will further selling unhealthy high-fat
on a free trade agreement strengthen our economic ties,” Cohen foods in their canteens, and

I
t is often assumed that Indian voters have a poor memory: (FTA) have hit the skids due said. Key Indian exports to Israel instead promote fresh food.
When elections come, they forget past voting mistakes. But to the war in Gaza, two peo- include cut and unpolished diamonds, In a letter, the Directorate
does the same hold true for politicians? The INDIA bloc seems ple aware of the matter told electronics and telecom components, General of Health Services
to exemplify this. Only a few weeks are left for the general elec- Mint. The war, sparked by the Hamas and diesel. (DGHS) Atul Goel also asked
tions to be announced, and still they have done little to fix their attack on Israel on 7 October, 2023, has Major imports from Israel include all hospitals to ensure that
past mistakes. consumed much of the focus of India- pearls and precious stones, chemical their premises are tobacco and
The Trinamool Congress had recommended naming Mallikar- Israel ties, said one of the people men- and mineral/fertilizer products, alcohol free.
jun Kharge as INDIA convenor at the bloc’s last meeting on 19 tioned above, requesting anonymity. machinery and electrical equipment, There are 22 Centre-run
December. The TMC felt only Kharge was capable of opposing “It has become a major obstacle to petroleum oils, defence, machinery hospitals across the country,
Narendra Modi. Reasons? He is the leader of the country’s largest the regular pace of talks (on a free trade and transport equipment. with seven based in the
political party, and a dalit. He has extensive political and adminis- agreement) between the negotiating According to data from the com- national capital.
trative experience and is free of any taint. This “narrative” is also teams,” the person added. merce ministry, Indian export to Israel The letter said canteens
acceptable to the Congress. When Kharge was elected Congress Normalcy in the FTA negotiations during the April-November 2023 should replace “unhealthy
president, there was talk of him also being considered for prime between Israel and India is expected India is Israel’s 10th largest trade partner overall. period stood at $3.51 billion, compared high fat diet beverages with
ministership if the party returned to power. only after de-escalation of the war, said to $4.54 billion during the same period high sugar content, packaged
Janata Dal (United) members, though, were outraged that the second person, who too spoke Hamas conflict. attracting zero duty in Israel, the FTA of the previous year. processed food (with high con-
Kharge’s name was being brought up for prime ministership. under the condition of anonymity. India buys rough diamonds from with Israel will benefit trade in other Israel’s military campaign in Gaza tent of salt, sugar and preserv-
They say their leader, Nitish Kumar, had taken the initiative to Spokespersons of external affairs Israel, which it then sells back in a pol- commodities more than diamonds. has created other challenges for India. atives), fast food etc with diets
build INDIA and that the bloc’s founding meeting was held in and commerce ministries and the ished form. To be sure, Indian exports Talks between Israel and India on an Diplomatically, India has had to bal- rich in fresh fruit and vegeta-
Patna. Nitish not only has the ability to be the convener, but Embassy of Israel didn’t respond to of diamonds were already declining in FTA have moved slowly since starting ance its relationship between Israel and bles, healthy juices, nuts, mil-
should also be the country’s next prime minister, they believe, emailed queries. FY24 due to a slowdown in the back in 2010. Key issues its partners in the Arab world. lets, whole grains etc”.
also considering that he had been chief minister for nearly 19 India is Israel’s 10th larg- US market and supply con- included an Indian demand The crisis can have an impact The 1 January letter to prin-
years, and under his leadership, the backward sections and est trade partner, and third straints when the war for allowing the move- on ambitious connectivity cipals and deans said non-
women of Bihar had gained immensely. They also say there is no
problem with Kharge, but he has never served as chief minister,
largest in Asia after China
and Hong Kong. Bilateral $12
bn
bilateral trade
broke. ment of Indian IT profes-
However, former sionals to Israel. bn initiatives
India’s export to
$3.51
like the India
Middle East Economic
communicable diseases
account for 63% of all deaths in
and so Nitish has a stronger claim to prime ministership. trade was estimated at GJEPC chairman and Further, the Indian Corridor, which will con- the country, with cardiovas-
Meanwhile, a significant shift has occurred in the internal poli- about $12 billion in FY23. between India, Kama Jewelry MD Colin side has voiced concerns Israel during nect India to the Middle cular diseases leading with
tics of the JD(U). Nitish Kumar became president of his party, suc- One immediate fallout Israel in FY23 Shah said diamond that Israel was likely to Apr-Nov 2023 East and beyond to 27% followed by chronic respi-
ceeding Lalan Singh. Along with this, many storms have started of the war has been the exports from India haven’t gain far more from an FTA, Europe. ratory diseases (11%), cancers
brewing in the politics of Bihar. trade in diamonds, which really been impacted much, given the mismatch in the Meanwhile, attacks on (9%), diabetes (3 %) and others
There was talk that Nitish could now switch sides and again makes up over half of the bilateral as customers are now buying dia- size of the two economies. global shipping by Yemen’s (13%). He said NCDs are driven
join hands with the BJP. Some recalled that before the last gen- trade in value terms. monds from Dubai or Antwrep, where But in May 2023 Israel’s foreign min- Houthi militants, due to Israel’s mili- by four risk factors: tobacco
eral election, too, Nitish had met with Sonia Gandhi and asked India’s Gem and Jewellery Export more Indian diamond shipments are ister Eli Cohen pushed the FTA saying tary actions, have also jeopardized vital use, physical inactivity, harm-
that he be declared the prime ministerial candidate. But upon Promotion Council (GJEPC) has voiced landing up. a trade deal was essential to strengthen Red Sea trade routes. ful use of alcohol and
receiving no concrete signal, he established a coalition with the concerns about the escalating Israel- He added that with diamonds economic relations. shashank.mattoo@livemint.com unhealthy diets.
BJP. This is why, as soon as Lalan Singh left, there was a stir in the
INDIA bloc.
Prime Minister Nitish Kumar’s name was mentioned
Narendra Modi again for the position of coordinator.
has introduced It’s possible that he’ll be named coordi-
nator in the following days. There is no
Govt acts to prevent Norms may be eased for rooftop solar
a new type of
politics to the
Indian voter
doubt that he not only took the initia-
tive but also made sincere efforts to
bring the INDIA bloc concept to light.
zoonotic diseases Rituraj Baruah
rituraj.baruah@livemint.com
ble capacity of 500 GW by
2030.
His claim to the position of coordinator NEW DELHI The second person said the
is unquestionably strong. As far as dalit Somrita Ghosh spread by dogs, such as rabies national portal for rooftop

T
or non-dalit prime minister is concerned, it does not suit INDIA somrita.ghosh@partner.livemint.com and leptospirosis, and to pre- he slow growth in roof- solar may be revamped to pro-
bloc to work like this. Aside from winning the party election, NEW DELHI vent and control snake bites. top solar projects for vide more relevant informa-
Kharge has so far disappointed those who supported him. The health ministry had homes is prompting the tion and datasets along with

T
On the contrary, Prime Minister Narendra Modi has intro- he health ministry is earlier said that limited knowl- power ministry to look at new making it user-friendly.
duced a new type of politics to the Indian voter during the last sharpening its focus on edge and skills in identifying norms to boost adoption and Queries mailed to the minis-
nine-and-a-half years. People feel he is the prime minister capa- zoonotic diseases— zoonotic diseases, coupled speed up installation. tries of power and new and
ble of moving India ahead. He has total control of both the party infections that are spread with a lack of diagnostic facili- The need for technical feasi- renewable energy remained
and the government. There has been no prime minister since between people and animals. ties at all levels, has resulted in bility and prior permissions unanswered at press time.
Indira Gandhi who has demonstrated such grip over both the The move follows several such diseases being neglected. may be removed, said a person The Centre also provides
party and the administration. Not only that, his management zoonotic disease outbreaks, In 2022 the government aware of the developments. financial assistance for resi-
machinery periodically forces the opponent to adopt a defensive including from the Nipah and launched the National One “There is no need for tech- dential solar rooftop projects.
strategy. The latest example is the ceremony for the pran-prat- Zika viruses. The ministry Health Mission, a cross-minis- nical feasibility and prior per- In another effort to make it
ishtha (consecration) of Ram lalla’s idol, which will take place in noted last year that 75% of new terial effort to review areas of mission for setting up rooftop Relaxation in norms may be allowed for installations with less more attractive for homeown-
Ayodhya on 22 January. infectious dis- focus. The health solar at homes. That require- than 10 KW capacity. BLOOMBERG ers, the union ministry for new
Organizers of the event have invited all Opposition leaders. The eases that have The ministry ministry is ment may not remain manda- & renewable energy on Friday
Opposition’s biggest difficulty is that if they attend this ceremony, emerged over noted that 75% of already imple- tory. Further, after the instal- a consultation paper but no 2022, only 5.87 GW of rooftop revised the Central Financial
they would be seen as toeing the BJP line. If they refuse, political past three dec- new infectious menting various lation of panels, people from decision has been taken so far, solar projects has been Assistance (CFA) for residen-
efforts to paint them as anti-Hindu will gain traction. The Rash- ades have been diseases over the national pro- discoms are required to visit said another person. installed, less than 15% of the tial solar rooftop projects.
triya Swayamsevak Sangh and the BJP, on the other hand, have zoonotic. g r a m m e s and set net metering. There Net metering is needed for target, Parliament’s standing New beneficiaries can get
past three
chosen to turn this function into a new campaign. Following the An official at through NCDC, should be a timeline for that. rooftop solar installations con- committee on energy said in additional financial assistance
pran-pratishtha on 22 January, special trains would run till 25 the National Cen- decades have including those Right now there is no time- nected to the May. Currently of ₹10,000 to ₹22,000 under
March to bring Ram devotees from around the country to Ayo- tre for Disease been zoonotic for the preven- line,” the person said. In case grid, which Currently grid-connected the subsidy scheme through
dhya. Buses are also being scheduled to cover the 600-kilometre Control (NCDC) tion of zoonoses, the timeline is missed, a pen- allows customers permissions are solar rooftop the national solar rooftop por-
geographical gap. It suggests that efforts are being made to recre- said, “We are rabies, leptospi- alty may be imposed on the who generate required from the capacity stands at tal. At 15%, the composition of
ate the atmosphere like 1991-1992 throughout the country. There planning to have augmented rosis and snake-bite, distribution company. their own solar power supplier, 11.08 GW out of rooftop solar power in the total
is, nevertheless, a distinction between then and now. zoonotic disease surveillance Zoonotic pathogens may be The relaxations may be power to sell sur- the total solar installed solar capacity of India
the discom, or
Previously, there was a strong sense of struggle among those at the human-wildlife inter- bacterial, viral or parasitic, and allowed for installations with plus electricity capacity of 72.31 falls well below the global
who made it there; now, there is a sense of accomplishment. Will face. There is a need for better can spread to humans through less than 10 KW capacity, the back to the grid. the municipal GW, according to average of 40-50%..
success be achieved in presenting the mandir as victory? understanding of specific driv- direct contact or through food, person added. Currently per- The proposals authority the ministry of “This increase in CFA would
INDIA bloc has recognized this truth and fact. Its backers ers. Understanding the mech- water or the environment. missions are required from the come at a time new and renewa- make domestic customers
anticipate that it will have to create a “counter-narrative”. This anisms of zoonotic diseases is Common zoonotic diseases power supplier or the discom when rooftop ble energy. think to install solar panels,
has not yet occurred. In such a case, the question of whether there crucial to preparing for future in India include rabies, as well as municipal authori- solar capacity has fallen short Under the government’s which would reduce their
is still time left for this is unavoidable. outbreaks.” anthrax, brucellosis, plague, ties in some cases. of ambitious targets. energy transition plans, solar electricity bill,” said Arindam
Shashi Shekhar is editor-in-chief, Hindustan. Views are per- The NCDC said it aims to bovine tuberculosis, leptospi- The power ministry has Against a target of 40 GW to power is expected make up Ghosh, Partner, Power Advi-
sonal. eradicate diseases that are rosis and salmonellosis. proposed the changes through be achieved by the end of 292 GW out of a total renewa- sory, Nangia Andersen LLP .

Soil from landfill sites to be used for building roads under new policy CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Subhash Narayan pose of raising a roadway built into the project cost hectares of land is locked in waste, were undertaken. suggestions or complaints
subhash.narayan@livemint.com above the level of the existing which would be 10% less than dump sites. Due to limited The first pilot project was about errors.
NEW DELHI surrounding ground surface. the cost of soil sourced from land availability, these landfill carried out in Delhi-NCR on
Readers can alert the
This normally uses soil from private land. sites are on the verge of parts of the Delhi-Mumbai
newsroom to any errors in the

T
he government will soon
come out with policy
guidelines mandating
the use of urban solid waste in
all highway projects across the
country.
The plan aims to reduce the
use of soil from agricultural
land for building embank-
ments for highways, as well as
provide a viable outlet for mil-
lions of tonnes of solid waste
from landfills.
An embankment requires
earthen material that is placed
and compacted for the pur-
private land closest to a high-
way. According to officials
privy to the plan, under the
new policy guidelines, public
sector highway building agen-
cies such as the National High-
way Authority of India as well
as private sector entities would
be mandated to use processed
inorganic solid waste—inert
material or soil generated from
processing and bio-mining of
solid waste—in building
embankments for all upcom-
ing and under construction
highways and roads.
The official quoted above
said that draft policy guide-
lines on use of urban solid
waste have already been
issued and the roads ministry
proposes to finalize the policy
for implementation by the end
of the month.
The plan will provide a viable outlet for millions of tonnes of solid Queries sent to the ministry
waste from landfills. HT remained unanswered at press
time. The disposal of solid
Building agencies would Bharat Mission (Urban) 2.0 waste generated on a daily
also be mandated to use the and enter into contracts with basis has become a major envi-
Gati Shakti portal to identify the municipalities closest to ronmental challenge in urban
solid waste processing sites highway sites for supplies. The areas. As per the government’s
earmarked under the Swachh cost of this material would be assessment, around 10,000
exceeding capacity, posing
serious environmental and
health hazards.
The initiative is aimed at
providing a viable economic
alternative for use of solid
waste and lessen the pressure
on municipalises to look for
more land to dump waste.
The new initiative is based
on an exercise undertaken
through the NHAI under
which two pilot projects for
utilization of inert material
which is one of the major com-
ponents of municipal solid
expressway and the second on
the Ahmedabad-Dholera
expressway in Gujarat. In both
the cases, construction of
embankment was successfully
carried with strict quality con-
trol using the inert material.
Under the Swachh Bharat
Mission Urban 2.0 (SBM2.0),
funds are provided to local
bodies to take up processing of
urban solid waste. As per an
official assessment, about 170
million tonnes of waste is
accumulated across 2,304
dump sites in the country.
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

FOR ANY QUERIES/DELIVERY ISSUES

CALL: 60004242, Monday-Saturday, 10am-6pm (Delhi, Mumbai, Bengaluru, Kolkata, Chennai, Hyderabad, Ahmedabad, Chandigarh, Pune and Lucknow) MAIL: delivery@livemint.com TO SUBSCRIBE: Give a missed call on 7039035039 or visit www.mintreaders.com or write to us at subscription@livemint.com

First published in February 2007 to serve as an unbiased and clear-minded chronicler of the Indian Dream.

RAVI KRISHNAN (EDITOR); PUBLISHED/PRINTED BY MANHAR KAPOOR ON BEHALF OF HT MEDIA LTD, 9th Floor, Tower 3, Indiabulls Finance Centre, Senapati Bapat Marg, Elphinstone Road (West), Mumbai-400013
Printed at HT Media Ltd. Press at Plot No. 6, TTC Industrial Area, Thane - Belapur Road, Navi Mumbai - 400 708.
RNI Registration MAHENG/2018/76720; Mint welcomes readers’ responses to all articles and editorials. Please include your full name, address and telephone number. Send in your views to the editor at letters@livemint.com. ©2024 HT Media Ltd All Rights Reserved
LIVEMINT.COM
Monday, 8 January 2024
MuMbai 03
04 Monday, 8 January 2024
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 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%)

72026.15 -0.30 21710.80 -0.09 19590.60 0.83 54295.25 1.78 21974.60 0.25 37706.55 2.35 43819.39 2.68
1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%)

3.94 9.74 4.10 11.08 5.39 13.93 8.73 21.55 4.89 12.83 7.58 18.33 6.62 16.39
6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%)

10.05 19.34 11.92 20.67 18.04 27.33 23.10 28.81 13.87 21.07 30.05 48.74 32.77 51.12

Dabur hopes for rural revival

Grey to green
Key listed cement makers aim to slowly increase the share of
green energy in their power consumption mix
Share of green energy in total power mix (in %)
Current Target
80
Vineetha Sampath gle digit, while the home and per- up spending on advertising and pro-
vineetha.s@livemint.com
Gradual progress sonal care business is likely to clock motions. 60
Dabur India is likely to see a slight improvement in volume growth in Q3FY24
growth in mid-single digit. The delay Investors will be watching whether 40

D
Year-on-year change in domestic volume (in %)
abur India Ltd’s shares in the onset of winter chills, however, such marketing expenses lead to vol-
put up a poor show in 6 would likely hurt Dabur’s healthcare ume growth in the upcoming quar- 20
2023, falling by about 1% 4 business, which is expected to grow ters, especially amid intensifying
0
compared to the 29% in low-to-mid single digit. competition. It goes without saying Ambuja UltraTech JK Lakshmi The Ramco JK Cement Shree
2 Cement Cement Cement Cement Cement
jump in the sector index, Dabur’s international that a sustained recovery
Source: Centrum Broking
Nifty FMCG. A big worry for the fast- 0 business continued with GROWTH in rural demand is the
PRANAY BHARDWAJ/MINT
moving consumer goods company Q3FY22 Q3FY24 its robust momentum of CONUNDRUM need of the hour for

Cement cos’ green

-2 estimated
has been subdued volume perform- double-digit growth in Dabur.
ance in the previous few quarters. -4 constant currency terms A big worry for Further, “Given the
Sure, last week’s business update for Source: Company data, Nomura research in Q3. Overall, the com- Dabur has been
subdued volume
revival in new product
the December quarter (Q3FY24)
offers comfort, but only slightly.
Dabur said it saw sequential
pany expects consoli- performance in the
dated revenue growth for last few quarters
the third quarter in mid-
launches by Dabur, suc-
cess of such new products
would aid investor senti-
push to cut costs
improvement in demand, although to-high single digit. In DABUR saw ment,” said Ajay Thakur,
sequential demand Harsha Jethmalani
growth in rural areas has lagged that short, not very different rise in Q3 even as an analyst at Anand Rathi Tech Cement Ltd aims to raise
in urban markets. Still, early signs of from Q2, when revenue rural growth Institutional Equities. harsha.j@htlive.com its green-energy portion from
a revival in consumption would help grew by about 7% to lagged urban The Dabur stock trades 22% to 60% by FY26.

volume growth inch up.
“Unlike most consumer compa-
nies, Dabur witnessed a pick-up in
rural demand, which should bode
well in the coming quarters, given its
higher saliency in rural markets,” said
Nomura Financial Advisory and
Securities (India) in a report on 4 Jan-
uary. Analysts estimate rural markets
to account for 45-50% of Dabur’s reve-
nue.
Nomura expects Dabur’s domestic
volume to have grown by 4% year-on-
year in Q3. In Q2, volume growth was
PRANAY BHARDWAJ/MINT
3%. In view of subdued pricing
trends, revenue growth would be vol-
ume-led.
Dabur’s food and beverage seg-
ment is expected to grow in high-sin-
C
₹3,204 crore. at nearly 45 times its FY25 ement manufacturers But meaningful decarboni-
Coming to profitability, estimated earnings, are increasingly adopt- zation will be a slow process, as
Dabur’s gross margin is set to expand according to Bloomberg data. ing green technology by the results of these changes will
for the third time in a row in Q3, led “In comparison to the 5-year his- investing in wind and solar take time to manifest. Other
by moderating inflation and cost-sav- torical average, the valuation is energy, and waste heat recov- challenges include long gesta-
ing measures. broadly in line or slightly lower,” ery systems (WHRS) to shrink tion periods, time-consuming
These gains, however, would not says Thakur. It appears that inves- their carbon footprint and regulatory approvals, and high
reflect at the Ebitda level, given the tors are factoring in near-term reduce their power-production costs. “While alternative fuels
company’s continued efforts to step demand woes adequately. costs. Power and fuel costs are increasingly used to replace
account for an estimated coal/petcoke, full substitution is
35-40% of the sector’s total technically challenging as these
production cost. The use of organic materials have 20-25%

Turnaround in sight for Bhel; execution key m CHART BEAT green energy and alternative
fuels is expected to reduce its
lower calorific value than fossil
fuels,” said Miren Lodha,
Getting ahead dependence on expensive director, research, Crisil Market
India’s benchmark Nifty 50 index has put up a relatively
thermal power plants or state Intelligence & Analytics.
Dipti Sharma turn for the better. Bhel expects ordering cycle from FY24. Its investors’ confidence. grids for electricity. For an energy-intensive
better show in the first week of 2024
dipti.sharma@livemint.com to complete projects totalling outstanding order book stood In the coming years, the Week-on-week returns Nifty versus regional indices (in %) Biomass, municipal waste industry such as cement, which
20 GW in the next 12 to 18 at ₹ 1.14 trillion as of the end of share of thermal is expected to 2 and pharma waste are among uses coal and petroleum coke

S
hares of Bharat Heavy
Electricals Ltd (Bhel)
have shot up 139% in the
past year, powered by a solid
order pipeline, despite persist-
ent concerns about mounting
receivables, elevated debt and
strained working capital.
The state-owned power
equipment maker’s main issue
is that payment terms in some
months. This has given analysts September 2023. “We foresee drop. Bhel’s expansion into Nikkei 225 S&P 500 TAIEX AxJ Index KOSPI the alternatives that the indus- as primary fuels, reducing car-
Nifty 50 ASEAN 40 STI EM Index HSCEI CSI300
at JM Financial Institutional Bhel’s total order intake sur- scalable non-thermal power 0
JCI
try is exploring to heat cement bon footprint is a step in the
Securities confidence that the ging to ₹1.8 trillion during segments like Vande Bharat kilns. Cement manufacturing right direction. But this alone is
stress on receiva- FY24-26, which is trainsets, pumped-hydro stor- -2 requires extensive use of coal not enough to drive earnings
bles will ease from The company’s nearly thrice the age plants, nuclear power, during clinker production, upgrades for cement makers.
March 2025. main issue is that orders in the three defense business, and coal gasi- -4 which releases harmful green- In a competitive landscape,
Note: In local currency Source: Bloomberg, Jefferies
“The decrease payment terms in years preceding fication, offers some comfort. house gases. stock prices will continue to
SATISH KUMAR/MINT
in debtor days some projects are FY24,” Antique JM Financial has valued According to Crisil Market hinge on demand and prices.
along with better
payment terms
highly skewed Stock Broking
wrote in a report.
Bhel’s stock at ₹225 on a sum-of-
the-parts basis, giving the indus-
Nifty holds ground Intelligence & Analytics,
green power (including
Kotak Institutional Equities
estimates 10% year-on-year
(minimum 10% towards the This optimism try segment a price-to-earnings WHRS) accounted for 30-35% growth in cement demand in
latter stages

ongoing projects are highly
skewed towards the latter sta-
ges. Other problems include
slow execution, delays, and
milestone-linked payments. In
the September quarter, Bhel’s
trade receivables rose 13% year-
on-year to ₹7,493 crore.
However, things may take a
A
advance) will stems from the multiple of 40 times estimated fter closing 2023 on a high note, the Indian of the sector’s total power mix FY24 on pre-election tailwinds.
translate into 44% anticipation of FY26 earnings and valuing the equity market saw a slower start to 2024. In in FY23, and this number is Its channel checks show that
CAGR in the cash large orders such power business on a discount- the week ended 5 January, benchmark index expected to rise to 40-45% by all-India prices increased 3%
balance during FY23-26 versus as the 3x800 MW Talabira ed-cash-flow basis. On Friday, Nifty 50 was down 0.1% in local currency terms FY27. Ambuja Cement Ltd sequentially in Q3FY24 to ₹401
around -10% CAGR during the project and the 2x800 MW Bhel’s shares closed at ₹195.80 week-on-week. Still, India was on a relatively better recently announced an per 50-kg bag, led by sharp
preceding five years,” the ana- Koderma project, among oth- apiece. Even with the antici- footing compared to Asian peers. Last week, Nifty investment of ₹6,000 crore to front-end price hikes in the
lysts explained. ers. Bhel has been the sole bid- pated order wins, the company’s outperformed the emerging market index by 225 install solar and wind power southern and eastern regions.
Some analysts also foresee a der in some large thermal pro- turnaround will depend, to a basis points (bps), shows data collated by Jefferies. plants. The country’s largest But the question is whether
potential turnaround in Bhel’s jects of late, which has boosted large extent, on execution. cement manufacturer Ultra- higher prices can be sustained.

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

Earnings bet, IIFCL to raise ₹2,000 cr via green bonds M-cap of 6 of top 10 most valued
bond index PTI
firms declines by ₹57,408 crore ment gives us a better option He expects the FY24 profit

move drive feedback@livemint.com then we will go with domestic. to cross ₹1,500 crore.
If yen gives a better return, we IIFCL reported a two-fold
PTI

I
ndia Infrastructure Finance will go with yen.” he said. jump in standalone net profit The valuation of State Bank
FPI inflows Company Ltd (IIFCL) is
planning to raise ₹2,000
This is part of the company’s at ₹ 1,076 crore in FY23 aided
aim to diversify its borrowing by an increase in lending and
feedback@livemint.com of India dipped ₹89.24 crore to
₹5.72 trillion.

FROM PAGE 1
ernment paper ahead of its
inclusion in JP Morgan’s bond
index on 28 June. Hajra also
pointed to the widening spread
between yields in India and the
US since October, which was
inducing flows into Indian
paper lately. The spread wid-
ened from 242 basis points
(bps)at the end of October to
329bps by the end of December.
Investors buying now could
provide the supply when global
index funds enter the scene to
buy bonds in June, added U.R.
Bhat, founder, Alphaniti Fintech.
India could witness $20-25
billion of foreign fund inflows,
thanks to the inclusion in the
GBM-EM index. Around two
dozen Indian government
bonds are eligible for indexing
with a notional value of $330
billion. The bonds will be
included in the benchmark
crore through its maiden
green bonds in the next six
months to fund sustainable
projects.
It could be a mix of both
domestic and foreign issuan-
ces, depending on the cost of
funds, IIFCL managing
director P.R. Jaishankar told
PTI.
The state-owned infrastruc-
ture financier said it is explor-
ing options of yen-denomi-
nated green bonds, he said,
adding, it may happen in this
quarter or the first quarter of
the next financial year.
“Sustainable green bonds
are one of our major lookouts
‘Rothschild sees India as core market to increase its presence in’
Aman Malik
aman.malik@livemint.com
It aims to use the funds for
sustainable projects. ISTOCKPHOTO
and yen is one major currency
that we are considering, and
we are also looking at other
currencies, but it will all
depend on how cost-effective
it is, including the hedging
cost and the overall cost of bor-
rowings,” he said.
“If the domestic environ-
decade and a half, also speaks
about the most active sectors
T
portfolio and enhance the reduction of bad loans. he combined market val- However, the m-cap of Reli-
share of the green The infra len- uation of six of the top 10 ance Industries jumped
projects in the The state-owned der posted record most valued firms ₹14,816.85 crore to ₹17.63 tril-
portfolio mix. infrastructure sanctions and declined ₹57,408.22 crore last lion while ITC added
Last week, financier said it is disbursements at week, with Tata Consultancy ₹14,409.32 crore taking its val-
State Bank of exploring ₹29,171 crore and Services (TCS) and HDFC Bank uation to ₹5.91 trillion. Bharti
India (SBI) raised ₹13,826 crore, taking the biggest hit, in-line Airtel’s market valuation
options of
$250 million respectively. with muted trends in equities. climbed ₹8,200.55 crore to
(about ₹2,000 yen-denominated Since its incep- Last week, the BSE bench- ₹5.88 trillion.
crore) through green bonds tion, the com- mark declined 214.11 points, or TCS was among those that The m-cap of Life Insurance
the issuance of pany has given 0.29% even after hitting an all- took the biggest hit. HT Corporation of India (LIC)
green bonds ₹2.5 lakh crore time high of 72,561.91 on 1 Jan- soared ₹7,020.75 crore.
maturing in 2028 via private loans to 750 infra projects. uary.The market valuation of The valuation of Hindustan Reliance Industries contin-
placement. As of December 2023, the TCS fell by₹20,929.77 crore to Unilever fell ₹10,114.99 crore to ued to rule the chart of the most
From the performance per- company has earned a profit of ₹ 13.67 trillion, the most among ₹₹6.15trillion. The m-cap of valued firms followed by TCS,
spective, he said the company ₹1,189 crore with loan sanc- the top 10 firms. HDFC Bank’s Infosys went down ₹4,129.69 HDFC Bank, ICICI Bank, Info-
has been consistent both on tions of ₹30,315 crore, exceed- market capitalization (mcap) crore to ₹6.36 trillion, and that sys, Hindustan Unilever, ITC,
topline and bottomline ing the figures of last fiscal in declined ₹20,536.48 crore to of ICICI Bank by ₹1,608.05 Bharti Airtel, State Bank of
parameters. just three quarters. ₹12.77 trillion. crore to ₹6,97 trillion. India and LIC.
and acquire more companies tors is that most visible? when they are raising new created.
in India and then exit from A few sectors in India are funds, they have raised larger Among the sectors, financial

‘
index over 10 months with an new DelhI in terms of dealmaking and the their prior investments, we way ahead of their peers Asia-focused funds with a services has been a stellar sec-
inclusion of 1% weight a month. tailwinds that are powering will be advising them. across the very large alloca- tor in terms of investments

This has spurred FPI invest-
ments in debt this fiscal, partic-
ularly in November and
December, which at ₹33,162
crore account for half of the
debt flows so far. In terms of net
FPI equity inflows, December
at ₹66,135 crore saw record
high monthly investment.
FPI assets under custody in
equity and debt stood at $795.19
billion as of the fortnight ended
31 December, according to
NSDL. This is an increase of
34% from the $592.4 billion
held at the end of 2022-23.
G
lobal investment bank
Rothschild & Co has
been operating in
India since 1999. Over the
years, it has expanded its local
team and now intends to ramp
it up further as it expects the
pace of dealmaking to pick up.
In an interview, Rothschild
& Co managing director Aalok
Shah talks about the firm’s
business in India and the
country’s growing importance
for the firm.
Shah, who has been with
Rothschild for more than a
private equity as well as
merger and acquisition trans-
actions in India. Edited
excerpts:
How important is
India for Roth-
schild & Co in
terms of growth
and revenue?
Rothschild globally sees
India as the core market to
increase its presence in. This is
kind of mirroring what our cli-
ents are also doing. As more
financial sponsors look to
invest in companies in India
India is one of the very few emerging mar- tion for India. All and returns. Infrastructure
markets which are growing ket players. You Among sectors, of them are sit- continues to attract a lot of
year on year. If I take 2019 and should look at financial services ting on $5-15 bil- capital, be it energy transition,
compare that to 2023, we returns of the has been a stellar lion of funds core infrastructure like roads,
would have seen private equity with a large allo- airports, and also digital fibre
growth of more than firms who have sector in terms of cation for India. etc. Pharma and healthcare is
50% in our India exited some of investments and Limited part- another area which is seeing a
business. This year their invest- returns ners (LPs) give lot of activity.
(2023), we will grow 15-20%. ments in India. money to these Technology is another sec-
Aalok Shah
The Indian market itself is You would see managing director PE funds only tor where we are seeing some
not as large as any of the global that the inves- Rothschild & Co when they are investors continue to focus
markets. But unlike most tors are making returning capital either through growth invest-
other peers who probably are Can India generate better 25-30% in dollar with high ments or buyouts. Technology
seeing a drop in revenue com- alpha than other emerging IRRs (internal rate of return) returns. They are seeing that as a sector is seeing good tail-
pared to last year, we are grow- markets for foreign inves- on India investments. there is further growth for winds both from an India per-
ing. tors? If yes, in which sec- The other evidence is that them here and see alpha being spective as well as global.
LIVEMINT.COM DEALS, TECH, & STARTUPS Monday, 8 January 2024
MuMbai 05

m THE MONDAY QUIZ

1) WhAT is the name
of the AI-centric firm set
up by chipmaker Intel
last week?
2) WhiCh Indian IT firm
Aditya Birla Cap preps
digital, payments push
did Richard Lobo, former
EVP of Infosys, join as
chief people officer?

3) WhiCh Indian IT firm integrated two of its arms to

create a specialized Banking Transformation Practice?

4) WhAT is the name 5) WhiCh Indian

of Google’s next level AI startup was acquired The company will launch an app to directly source clients for its services
chatbot powered by by US-based firm
Gemini Ultra? SentinelOne last week?
Arti Singh
arti.singh@livemint.com
NEw DELhI

GLOSSARY
Daemon: A daemon is a
computer program that
runs in the background. It
handles things like net-
work connections and
hardware activities. They
often start when the oper-
ating system boots and
A
ditya Birla Capital Ltd (ABCL)
is looking to rev up its digital
investors, to review finan- distribution game through its
cial statements, and intel- recently-incorporated sub-
lectual property details,
etc. In legal settings, data
rooms are used for litiga-
sidiary Aditya Birla Capital
Digital (ABCD). The subsidiary, which last
week received ₹50 crore from its parent,
Nasher Miles kicks
tion and proceedings.

continues to run in the
background. One way to
recognize these system
processes is if their names
end with the letter “d”.
Cryptojacking: A type of
cybercrime, cryptojacking
involves unauthorized use
of devices such as comput-
ers by cybercriminals to
mine for cryptocurrency.
is planning to launch an app soon with an
aim to “directly source customers for its
financial services offerings,” Pankaj Gad-
off funding talks
gil, group head-digital platforms, Aditya
Birla Capital Ltd, told Mint. Malvika Maloo and Sauce.vc have shown inter-
ABCL offers protection, investment, malvika.maloo@livemint.com est in the newer players enter-
asset creation and transaction-related BENGALURU ing the space.
financial services such as insurance, For instance, Mokobara,

It usually involves embed-
ding malicious code
through web browser
downloads or mobile apps
into the user’s device.
These codes run in the
background, exploiting
computational resources
to mine cryptocurrencies.
Data room: A facility Advanced threat pro-
used to store privileged or tection:Abbreviated as
confidential data is called ATP, advanced threat pro-
a data room. Data rooms tection is a category of
can be both physical and solutions that defend
virtual. They usually have against complex malware-
two use cases—mergers based and hacking attacks.
and acquisitions (M&A), These solutions are
and legal transactions. In focused on prevention by
the M&A context, data blocking threats, instead
rooms allow authorized of cleaning up after a secu-
parties such as potential rity incident occurs.
4) Bard Advanced 5) PingSafe
1) Articul8 2) Tech Mahindra 3) LTIMindtree
THE MONDAY QUIZ ANSWERS:
N
mutual funds, stock investments, financ- ew-age bootstrapped according to media reports,
ing, wealth management, and advisory. luggage startup Nasher was in funding talks with ven-
“The strategy that we thought through Miles Pvt. Ltd has initi- ture capital firm Peak XV Part-
is we said we have a very large opportunity ated discussions to raise its ners to lead a $15 million fund-
to create an omnichannel platform which maiden round of funding from ing round. The development
will help us acquire digitally at scale, and Pankaj Gadgil, group head-digital platforms, Aditya Birla Capital Ltd. institutional investors, a top couldn’t be independently ver-
also allow us to cross-sell from one line of executive told VCCircle. ified by VCCircle.
business to another line of business. That shortly, catering to all the four require- group using the Aditya Birla Pay handle. Mumbai-based Nasher Uppercase, erstwhile Ace-
is where we created another organization, ments of the customer digitally,” Gadgil Without disclosing the banking part- Miles, which competes with the four, snagged $7 million in a
which is called Aditya Birla Capital Digi- said. ners for its TPAP business, Gadgil said the likes of Mokobara and Upper- pre-Series A round, led by Sixth
tal,” he added. Last year in March, the subsidiary also payments handle will be launched in part- case, is scouting for Sense Ventures along
The omnichannel business has all three decided to cater to the transaction needs nership with one large private sector bank investors to mop up with participation
form-factors, which includes 1,400 bran- of the customers by introducing pay- and a medium private sector bank. primary capital of as from Volrado Ven-
ches across all businesses and 50% of these ments. ABCD, which also houses pay- “The payments app is part of our overall much as $8-10 mil- ture Partners in 2022.
branches are co-located – app built, so it will go live lion (₹66-83 crore), said Founded by Abhishek,
meaning one premise, where FinTeCh LeAp within the app itself,” he founder and chairman Lokesh and Shruti Kedia Daga,
some of these companies shared. Abhishek Daga. Nasher Miles banks on its
have branches which can ABCL offers ABCD will have ABCD launched For payments, ABCD The company has hired mid- online approach, with multiple
engage with customers protection, investment and
its own TPAP and
will also be on
payments lounge
last year in June for
launched ‘payments lounge’ market boutique investment options for consumers to
deeply. Second form factor is transaction-related Bharat Bill Payment online payments last year in June for online bank o3 Capital for the process. choose from. The company
the virtual engagement point, financial services System collection payments collection. The The luggage maker intends retails a range of packing prod-
that is, large inbound and out- payment lounge, which sits to improve its market share in ucts, from suitcases to duffle
bound call centres to engage on top of all the aggregators, India, where this space is bags, and claims to have sold six
and serve customers better. ments business, will have its own TPAP allows “smart” routing of transactions largely unorganized barring a million units since its incep-
“And, we have a form factor coming up (third-party payments application pro- between aggregators and significantly few big players such as VIP, tion.
in the form of ‘mobile app’. This is ABCD’s vider) payments handle (in simple terms improves success ratio for the merchant Samsonite, and Safari. Nasher Miles also claims to
creation for the overall group (Aditya Birla UPI payments handle) and will also be on who is collecting payments. “Basically, the With a share to be gained, be profitable from the start and
Group)—which has 20 crore customers Bharat Bill Payment System, where cus- e-commerce success rates go up to many prominent investors has an annualized revenue run-
broadly. We will be launching this app tomers will be able to transact with the 96-97% with smart routing.” such as Sixth Sense Ventures rate of ₹100 crore.

Qualcomm India RIL to inaugurate its TN data centre shortly Companies raised $68.8 mn last week
Deal value ($ mn) Investors

to invest ₹177 crore PTI

feedback@livemint.com
one of the most business
friendly states in the country.
13.25
20
Country Delight Medway Hospital
ChENNAI “Therefore, I have every  Temasek,  Kyra Ventures
Gulveen Aulakh reason to believe it will soon Seviora Capital

B
gulveen.aulakh@livemint.com illionaire Mukesh become a trillion-dollar econ-
NEw DELhI Ambani on Sunday said omy, which is the apt slogan of Captain Fresh
 Nekkanti Sea 5
his firm Reliance Indus- this summit,” he said. Foods, Shakti 11.2

Q
ualcomm India will
invest more than ₹177
crore in setting up a
design centre in
Chennai, the chipmaker said
at the Tamil Nadu Global
Investors Meet on Sunday.
The centre will focus on
innovations in areas that com-
plement Wi-Fi technologies
and contribute to Qualcomm’s
Qualcomm currently has
about 17,000 employees in
India.
The US-based Qualcomm
currently has about 17,000
tries in partnership with
Canada’s Brookfield will open
a data centre in Chennai next
week, marking entry into the
fast-growing market.
Reliance had in July last
year invested about ₹378 crore
to enter an existing joint ven-
ture, where Brookfield Infra-
structure and US-based realty
estate investment trust Digital
Reliance, he said, has part- Finvest Pvt Ltd
nered in Tamil Nadu’s growth 10
over the years. Wiz Freight VRO Hospitality*
It opened nearly 1,300 retail  SBI Investment  Axis Bank,
Gruhas
stores across the state, invest- Note: List of deals is not comprehensive.
ing over ₹25,000 crore. Jio, *Includes debt funding Source: VCCEdge, VCCircle, Media Reports
the telecom arm of the group,
SARVESH KUMAR SHARMA/MINT
Mukesh Ambani, chairman and managing director of Reliance has invested over ₹35,000
Industries Ltd, said the data centre will come up in Chennai. MINT

of-the-art data centre, which vices and adoption of data-in-

global research and develop-
ment efforts in 5G cellular
technology, the company said.
“The new design centre in
Chennai plays a pivotal role in
shaping the future of connec-
tivity globally, especially in
India,” said Savi Soin, presi-
dent, Qualcomm India. “The
new design centre is a critical
asset to support Qualcomm’s
commitment to Make in India
employees in India. The com-
pany has been investing in
design-focused initiatives in
the country for several years
through programmes such as
“Qualcomm Design in India
Challenge” and “Qualcomm
Semiconductor Mentorship
Programme”.
India is the second-largest
base outside of San Diego for
Qualcomm’s research and
Realty were already partners.
The three own 33% each in the
venture.
Speaking at the Tamil Nadu
Global Investors Meet here,
Ambani, chairman and man-
aging director of Reliance
Industries Ltd, said his group
is investing in renewable
energy and green hydrogen as
well as in setting up a data cen-
tre in the state.
will be opened next week,” he
said.
The Indian data centres
market, which is expected to
grow 40% a year and draw $5
billion in investments by 2025,
is heating up with Reliance’s
entry to rival Gautam Adani’s
Adani Group and Sunil Mittal’s
Bharti Airtel Ltd in recent
months.
Data centre and compute
tensive technologies such as
artificial intelligence, among
other drivers.
The joint venture will start
the 20-megawatt (MW) green-
field data centre in Chennai
next week and has also
acquired 2.15 acres in Mumbai
to build another 40MW data
centre.
Stating that Tamil Nadu has
always been a land of rich cul-
crore in Tamil Nadu, bringing
the fruits of digital revolution
to 35 million subscribers in
Deal momentum
every town and village in the
state.
In December, Jio completed
loses steam in first
the fastest roll-out of 5G, any-
where in the world, he said.
“This will enable Tamil Nadu
to reap the benefits of artificial
week of 2024
intelligence and other break- K. Amoghavarsha & place, Captain Fresh’s $13.25
through fourth industrial rev- Priyal Mahtta million extended series C fund-
olution technologies, which ing round, led by Nekkanti Sea
will further accelerate its BENGALURU Foods, Shakti Finvest Pvt. Ltd,
economy.”Ambani said Reli- followed by angel investors

and Design in India.”
The facility is expected to
generate jobs for up to 1,600
professionals.
development efforts. In India,
Qualcomm has R&D centres in
Bengaluru, Chennai, Hydera-
bad and Noida.
“Reliance has partnered
with Canada’s Brookfield asset
management and US-based
Digital Reality to set up a state-
capacity requirements in India
are set to jump on growing
localization of personal data,
increasing access to digital ser-
tural and intellectual heritage,
Ambani said under the leader-
ship of chief minister M. K.
Stalin, the state has become
ance has committed to making
new investments in Tamil
Nadu in renewable energy and
green hydrogen.
P
rivate equity and venture
capital deal flow started
at a snail’s pace in 2024,
as momentum in terms of value
remained under the $100-mil-
lion mark, even as volume rose
marginally.
Ravi Shankar Pemmasani and
Shibu Mathai.
According to media reports,
Chennai-based supply chain
startup Wiz Freight also raised
₹93.3 crore ($11.2 million) in a
Series B round, led by Japan-

Investcorp set to float India-focused warehousing fund Mergers and acquisitions

saw a slight increase in volume
as well.
based VC firm SBI Investment.
In another mid-sized trans-
action, fine-dining chain oper-
Startups raised $69 million ator VRO Hospitality raised $10
Priyal Mahtta fund, where, like we have part- hati, and may set up centres these properties, the Chennai- last week, 31% less than the million in a bridge funding
priyal.mahtta@livemint.com nered up with NDR, we are under the hub-and-spoke based firm has about 5 million $100 million recorded in the round led by Axis Bank and
BENGALURU looking to partner up with mul- model. The private equity sq. ft of underconstruction/ preceding week. PE/VC trans- Nikhil Kamath-backed venture
tiple developers across India investor may also set up centres proposed assets as it plans to list action volume, however, capital fund Gruhas.

B
ahrain-based alternative
investment firm, Invest-
corp, is planning to float a
new India-focused warehous-
ing fund to shore up its portfo-
lio in the space over the next
12-18 months, a top executive
told VCCircle.
The investor, with
over $50 billion in
assets under manage-
ment globally and a
partner with NDR Warehous-
ing in India, is looking to dou-
ble down on the space here,
after its earlier bets in the coun-
try panned out well.
“On the back of our earlier
warehousing investment strat-
egy, we want to build out our
investments into warehousing
in India. We are contemplating
a warehousing development
and help them execute their
plans on warehousing invest-
ments,” said Gaurav Sharma,
head-India investments,
Investcorp.
“We would want to double
our allocation towards ware-
housing in the next 12-18
months. We think
there’s an opportu-
nity to put another
$100 million to work
in the next few months or a
year,” he added.
Currently, Investcorp mana-
ges investments worth ₹1,000
crore in India, including its
partnership with NDR.
It made a follow-on invest-
ment of ₹500 crore, or $61 mil-
lion, at that time, in NDR Ware-
housing last July. This followed
an earlier bet during an earlier
Investcorp manages investments worth ₹1,000 crore in India,
including its partnership with NDR.
$55 million round by NDR.
Speaking about raising capi-
tal for the firm, Sharma said
Investcorp has identified some
partners for the fund, adding
that working with multiple
developers would help identify
each partner in micro markets
and pick centres that are seeing
demand.
As for deployment from the
fund, the investor will target
the top eight real estate mar-
kets as they are the primary
economic and industrial con-
sumption centres. It may also
target some tier-II cities, such
as Indore, Jaipur, and Guwa-
around key destinations on the a part of its portfolio as an Infra- increased to 15 deals for the All but four deals last week
dedicated freight corridors structure Investment Trust week against last fell within the sub-$10
being developed by the Indian (InvIT). Investcorp will con- week’s 14. million value bracket,
Railways as a tinue to be a part Notably, consum- thus continuing the
measure to boost Investcorp made of the InvIT as er-focussed deals trend of sub-$10 mil-
railway freight a follow-on well. dominated the week, with one- lion deals dominating the deal
operations. investment of Besides ware- third of the transactions being volume over the last year.
Apart from ₹500 crore housing, Invest- in the consumer space. Some of the notable small
diversification via corp India’s next Additionally, the week’s top deals include Bollywood actor
in NDR
the warehousing area of focus is two deals in terms of value also Sonu Sood’s social media appli-
fund, the investor Warehousing in the residential were in the consumer sector. cation Explurger, which
may also look at July last year segment, where it In the week’s largest transac- secured ₹37.3 crore in a Series
investments is operating two tion, food essentials brand A investment from Affle (India)
opportunisti- debt funds with Country Delight raised $20 Ltd, a listed mobile commerce
cally, Sharma said, though cumulative size of about million in a Series E round, led and marketing solutions pro-
nothing has been planned yet. ₹1,500 crore. The fund also by Singapore-based Temasek. vider. Chennai-based multi-
As of July, NDR’s asset port- invests in educational infra- New investor Seviora Capital specialty hospital chain Med-
folio comprised 14 million sq. ft structure assets, valued at and existing investor Venturi way Hospitals also raised $5
of operational assets spread about $30 million, and has a Partners also participated in million (₹41.6 crore) in its first
across 10 cities in India, includ- pipeline of such assets, that the round. round of institutional equity
ing Chennai, Mumbai, Pune, may take the size of this portfo- The second-largest deal, in funding led by Kyra Ventures.
Coimbatore, and Kolkata. With lio to about $80-90 million, terms of value, was Bengaluru- k.amoghavarsha@live-
about 95% occupancy rate at Sharma said. based animal protein market- mint.com
06 Monday, 8 JanuaRy 2024
MuMbai CORPORATE LIVEMINT.COM

AI Express
inspects its Mint BFSI Awards 2023: A EXPERT
VIEW
Boeing 737
MAX fleet
stellar jury picks the finest Sachchidanand Shukla

Respond to this column at

feedback@livemint.com

Anu Sharma
anu.sharma@livemint.com
New DelhI Awards to be conferred in 14 categories across banking, NBFCs, insurance and mutual funds
Budget 2024 hopeS:
Stay SteadfaSt on
A
ir India Express has
completed the inspec- Shayan Ghosh India looking to achieve the target of
tion of its Boeing 737
MAX aircraft after the Direct-
orate General of Civil Aviation
shayan.g@livemint.com
MuMbAI
$5 trillion in gross domestic product
(GDP), with the financial services
industry playing a crucial role in eco-
capex-led growth

I
(DGCA) issued an advisory, a n its 16th year, the Mint Annual nomic growth.

company spokesperson said in
response to a query. The airline
operates nine B737-8 aircraft.
“We are aware of the recent
incident involving a Boeing air-
craft of Alaska Air. The aircraft
involved is different from the
B737-8 operated by Air India
Express. We are in touch with
Boeing for more information
regarding this, as well as with
our regulators, and will comply
with any advisory,” the spokes-
person said.
The development comes
after images on social media
showed Alaska Airlines flight
1282, a Boeing 737-9 MAX, with
a large hole in its side and pas-
sengers using oxygen masks.
The flight returned to Portland,
US, shortly after taking off for
Ontario, California, on 5 Janu-
ary. The US Federal Aviation
Administration later ordered a
temporary grounding of more
than 170 Boeing B737-9 MAX
aircraft for inspection.
“None of the Indian air oper-
ators have Boeing 737-9 Max as
part of their fleet yet. However,
as an abundant precautionary
measure, DGCA has directed
all the Indian air operators to
carry out a one-time inspection
of the emergency exits imme-
diately on all Boeing 737-8
MAX aircraft currently operat-
ing as part of their fleet,” DGCA
said in reply to a query.
It has asked Akasa and Spice-
Jet, too, to inspect their 737
MAX aircraft.
Banking Conclave has been
rechristened the Mint BFSI Sum-
mit and Awards, where 14 awards
would be given away on 11 January
based on decisions made by a stellar
jury of well-known names in the
financial sector.
The five-member jury comprised R.
Doraiswamy, managing director, Life
Insurance Corporation; Cyril Shroff,
managing partner, Cyril Amarchand
Mangaldas; Keki Mistry, additional
and non-executive (non-independent)
director, HDFC Bank; Amish Mehta,
managing director and chief execu-
tive, Crisil Ltd; and Nithya Easwaran,
managing director, Multiples Alter-
nate Asset Management Pvt. Ltd.
Mint’s knowledge partners in this
exercise were howindialives.com and
Fisdom.
Mint presented before the jury the
mathematics and rankings in all cate-
gories based on public data. The jury
then brought in the qualitative and
market intelligence aspects into the
conversation to pick winners in each
category. Lasting for nearly two
hours on a Saturday afternoon in
December, the closed-door meeting
saw the jury intensely deliberate
before deciding on the winners.
Some members recused themselves
in certain segments to avoid conflict
of interest.
Moreover, just because the data
ranked someone at the top did not
mean the jury had to settle for it as the
winner. In a few categories, the jury
decided to pick the second or even the
third-ranked (by data) as they believed
it to be qualitatively ahead. In fact, the
jury chose the number four as the win-
D
Crisil’s Mehta said if one looks at the omestically, the backdrop is that of an impending general
GDP growth and the $5-trillion target, election, and, traditionally, an incumbent government can-
one is going to look at the growth not present a full Union budget in such a year. Whereas,
driven by infrastructure and capital globally, the setting is that of a debate on debt and sustainability
expenditure on the investment side, amid falling growth. But that shouldn’t necessarily be the context
and the only way to build that is for the upcoming budget. A myopic focus a la the developed econ-
through investments on both equity omies or the rest of the world on just debt reduction could prove
and debt. “I think debt is going to be a to be costly in the long term as the India story literally has miles to
large part of that growth journey, and go. Likewise, an interim budget presented by the government
would mean that BFSI (banking, before the general elections should not constrain its ambition to
financial services and insurance) as a do what is right for an economy that is poised at a critical juncture.
segment is going to be a key constitu- The government must focus on nurturing and furthering India’s
ent needed to achieve that growth tra- human and physical capital, and invest in areas that can enhance its
jectory,” said Mehta. potential growth and usher it towards the goals of India’s Amrit Kaal.
Others agreed on the role of finan- The budget must provide a blueprint for steering the economy
cial services in supporting and propel- towards a sustained high-growth trajectory in a growth-starved
ling economic growth. world. This will ensure that our debt-to-gross domestic product
The jury members (L-R): Amish Mehta, managing director and chief executive, “It is an established fact that BFSI (GDP) ratio will decline once
Crisil Ltd; Cyril Shroff, managing partner, Cyril Amarchand Mangaldas; Nithya plays an important role in the building the economy is on a higher
Easwaran, managing director, Multiples Alternate Asset Management Pvt. Ltd; of the economy. Particularly in India, growth path. Note, the
R. Doraiswamy, managing director, Life Insurance Corporation of India; and Keki BFSI has been playing a great role, at global economy is forecast
Mistry, additional and non-executive (non-independent) director, HDFC Bank. MINT least in the last 5-10 years, and towards to slow even more in 2024
that its contribution needs to be to approximately 2.6%. Moreover, the expectation is that conditions
ner in one category. being best fintechs in online payments recognized and taken forward,” said will weaken over the year ahead due to high interest rates, geopoliti-
Neither Mint nor our knowledge and in digital lending, owing to the Doraiswamy. cal tensions and a slowdown in the world’s top economies.
partners had any say in the selection of paucity of available data and informa- Jury members also said awarding So, what should the interim budget focus on?
the winners. tion. And three, a fund house based on players in the BFSI sector would moti- Adherence to fiscal targets and fiscal consolidation road
The categories were: large bank; innovation, where the jury believed vate them. “I think the financial sector map: The targeted fiscal deficit for 2023-24 is 5.9%, which is a 50-ba-
mid-sized bank; small bank; small that the absolute returns of schemes in has such an important role to play that if sis-point reduction from 2022-23 levels. Adhering to these targets will
finance bank; large non-banking contention should cross a certain we can recognize the right and good reassure sovereign rating agencies and investors. It will also keep a lid
financial company (NBFC); mid-sized threshold. players in the sector, it encourages them on yields and borrowing costs that have been rising the world over.
NBFC; small NBFC; “It was a wonderful to provide better services for the nation,” Furthermore, it is important to re-emphasize a medium-term fis-
large life insurer; jury deliberation and said Mistry, adding that in his four-dec- cal consolidation road map with a clear elucidation of the fiscal jour-
ANNUAL
mid-sized life insurer; was a good mix of data ade career, he has not seen India in such ney ahead. The finance minister has in the past reaffirmed the desire
SUMMIT&
large non-life insurer;
mid-sized non-life BFS AWARDS
th
16 Edition
and research that
ranked the potential
a strong position as right now.
Meanwhile, Shroff said the award
to bring fiscal deficit under 4.5% by 2025-26. However, an important
question that follows is—should such consolidation be at the cost of
insurer; standalone participants in the would be something that players in spending? India’s fiscal consolidation has, more often than not, been
health insurer; industry. At the same the sector would look forward to. He on the back of expenditure cuts. The budget must reflect a concerted
actively managed equity mutual fund time, there were a lot of subjective fac- added that the $5-trillion target is effort to reinvigorate the Keynesian “animal spirit” and enhance
(MF); and actively managed fixed tors, including digital adoption, gov- quite achievable, given the number of long-term growth potential.
income MF. ernance, inclusion and reputation,” tailwinds in India’s favour. “The Quantity and Quality of spending: The quantum of the govern-
The jury unanimously decided to said Easwaran. awards will give relevant impetus to ment spending is now significant in size. For e.g., in 2023-24, the over-
drop three categories. One and two The awards come in the backdrop of players,” he said. all budgeted government expenditure stands at ₹45 trillion. The size
of spending corresponds to the size of
The budget India’s real GDP back in 2002. Thus, the
must reflect a improvement in the efficiency and effec-

Adani weighs global plans for airports business concerted effort tiveness
to reinvigorate
of public spending is a non-nego-
tiable. The capital budget and the frame-
work should be in order to meet national
the Keynesian development needs in a cost-effective
FROM PAGE 1 also owns and runs global air- “animal spirit” and coherent manner. Efforts should be
ports—one in Greece and one made to raise revenues structurally to be
airport after the New Delhi air- in the Philippines.) able to invest for future growth and sus-
port. It is now building a India has also seen the entry taining high growth rates. Thus, spending more, especially on capital
greenfield airport in Navi of Zürich Airport Interna- outlay, is as important as fiscal consolidation through higher revenues.
Mumbai through its holding in tional AG, which is a marginal Maintain the investment tempo: Reiterating the need for
Mumbai International Airport entity for now. It is building capex boost and doubling down on such spending will be an impor-
Ltd (MIAL), the company that the greenfield airport in Uttar tant signal that will have positive externalities, lower the logistics
runs the airport in Mumbai. Pradesh’s Jewar, which will act costs in the economy and make India globally competitive and spur
Adani Airport Holdings Ltd as a second airport for Delhi. exports. The government has done a commendable job in raising
(AAHL) holds 73% in MIAL, These airport operators are capex from 1.7% in 2019-20 to 3.3% in 2023-24, the highest since
An NCLAT bench in its order dated 5 January said it found no which, in turn, holds 74% in set to compete against each 2007-08. This has had a salutary impact on the economy and job
error in the NCLT order rejecting the appeals of Authum. Navi Mumbai International other during the next phase of market via the capital goods and infrastructure ecosystem.
Airport Ltd. With seven opera- airport divestment that the Thus, increasing capital spending by at least 25% to ₹12.5 trillion

NCLAT rejects tional airports in its manage-

ment and development portfo-
lio, AAHL services a quarter of
The Adani Group is building a greenfield airport in Navi Mumbai
through its holding in MIAL that runs the Mumbai airport. MINT
government is likely to
announce during the second
half of 2024 calendar year.
in 2024-25 could reaffirm these signals and help crowd in private
capex that has been lagging. Sustaining the rhythm in defence capex
spending will be vital given India’s volatile neighbourhood and the

Authum challenge India’s passenger footfalls and a

to Srei resolution
Priyanka Gawande
priyanka.gawande@livemint.com
MuMbAI
approved a resolution plan
submitted by National Asset
Reconstruction Co. Ltd
(NARCL) for Srei Infrastruc-
third of India’s air cargo traffic.
An email sent to the Adani
Group for comment remained
unanswered till press time.
Analysts feel that the strat-
egy to go global will not just
add to the bottom line, but also
help develop best practices for
airport management.
“It is the right strategy for an
but also helps learn best prac- investors, AAHL reported
tices available elsewhere that ₹1,905.5 crore in revenue in
As part of a monetization
plan, the government plans to
put up 25 AAI airports for
current geopolitical backdrop. Indian manufacturing is in the mid-
dle of a multi-year revival after a “lost decade” ending in 2020. Pro-
moting green hydrogen by expanding the definition of infrastruc-
can be used in India.” the September quarter, as operations and management ture sector to include various facets of the green hydrogen/ammo-
Martin added
that infrastruc-
ture growth in
As part of a
against ₹1,292.26
crore in the year-
ago period. Net
at Bhubaneswar, Varanasi,
Amritsar, Trichy, Indore and
Raipur, and also in tier II and
nia ecosystem should also be looked at in view of the “global boiling”.
Ease of doing business and reinforcing attempts to minimize the
regulatory and compliance burden imposed on the taxpayers and
monetization
India has not plan, the Centre profit totalled III cities such as Kozhikode, stakeholders in the economy and facilitating the growth of micro,
matched the plans to put up 25 ₹200 crore. Coimbatore, Nagpur, Patna small and medium enterprises must also stay high on priority.
pace of growth of India’s airport and Madurai. Lastly, the budget should be non-negative with no shock to the
AAI airports for
the country’s avi- ownership and While the Adani Group’s system, as the entry into global bond indices has put the spotlight
operations and

T
he National Company ture Finance Ltd (SIFL) and Indian airport company like ation market. So, management bids for the six airports in 2019 squarely on government finances and fiscal responsibility. The fiscal
Law Appellate Tribunal Srei Equipment Finance Ltd Adani to look beyond India,” it is “imperative management landscape has were aggressive, industry math and assumptions therefore must be credible. Volatility in for-
(NCLAT) has dismissed (SEFL). said Mark D. Martin, the chief for Indian airport three key players. watchers say the bids this time eign funds for funding domestic needs in the current global macroe-
an appeal by non-bank finan- At the time, the tribunal also executive of Martin Consult- companies to The biggest (in may be more realistic, imply- conomic backdrop entails significant risks and costs as was seen dur-
cier Authum Investment and rejected a plea by Authum, one ing, an aviation consultancy bring in efficiencies”. terms of number of airports) is ing lower revenues for the ing the global financial crisis and taper tantrum episodes.
Infrastructure against a of the bidders for the two com- firm. “Entering global markets According to numbers the AAI, followed by AAHL government. The author is group chief economist at Larsen and Toubro Ltd.
National Company Law Tribu- panies under the insolvency not just adds to the bottom line shared by the company with and the GMR Group (which mihir.mishra@livemint.com Views are personal.
nal (NCLT) order that rejected process. Following the tribu-
its objections to a resolution nal’s order, Authum
plan for two Srei firms. approached NCLAT.
“We do not find any error in NARCL’s resolution plan
the order of the adjudicating offered a net present value bid
authority rejecting the applica- of ₹5,555 crore for the two Srei
Interim budget may raise income-tax rebate to ₹7.5 lakh
tions,” said an NCLAT bench companies, which the lenders
led by Justices approved. The FROM PAGE 1 highest number of tax returns as the ₹1.5 lakh deduction availa- income tax regime, would give
Ashok Bhushan The NCLT’s two other bidders among all income ranges in ble to individuals under the old taxpayers, especially the mid-
and Barun Mitra approval of the were Authum, income earners, and lowered assessment year 2021-22, and tax regime for investments in dle-class, relief,” said Sudhir
in its order of 5 resolution plan with a bid of the number of income slabs accounted for a fourth of all life insurance and provident Kapadia, partner, tax and regu-
January. was in the ₹5,526 crore, and from seven to six to make this returns filed as well as income fund, and the ₹50,000 deduc- latory services at EY.
The NCLT’s Varde Partners scheme more attractive. reported in that year, indicat- tion for health insurance pre- New agency Press Trust of
commercial
approval of the along with Arena The government’s estimate ing this segment’s importance mium paid are not available in India reported on Friday quoting
resolution plan wisdom of the Investors (bid of is that a significant part of per- in tax policy. the new regime. PFRDA chairper-
was in the com- CoC, NCLAT said ₹4,680 crore). sonal income tax payers would The government’s stated “Parity on tax The government’s son Deepak
mercial wisdom of NARCL com- be in the new regime in position has been to lower the treatment of stated position Mohanty that the
the committee of pleted the acqui- 2023-24, which is now the tax burden in line with increas- employer contri- has been to lower pension regulator
creditors (CoC), NCLAT said. sition of the two Srei compa- default tax filing option with ing tax receipts. In the April to butions to the the tax burden in had recom-
“There is no merit in the nies in December. “This strate- the facility to opt out. The November period of this fiscal, National Pension mended employer
line with
appeal. The appeal is dis- gic move sets the stage for the increase in rebate being dis- the Centre’s tax revenue (direct Union finance minister Nirmala Sitharaman will present the Scheme (NPS) and contribution to the
missed,” it said. resolution of a significant cussed is expected to accelerate and indirect) grew by 14.7% interim budget on 1 February. PTI to provident increasing tax NPS up to 12% of
“Commercial jurisprudence financial debt amounting to this shift, while giving a feel- against the budget estimate of fund—by way of receipts salary be exempt
undoubtedly is the privilege of ₹32,700 crore,” NARCL said in good factor to the middle class 10.5% for direct taxes and should also consider greater tax ments. Deductions for contribu- tax exemption for from tax, up from
the CoC,” said Akshat Khetan, a statement on 8 December. in an election year. 10.45% for indirect taxes, indi- relief on social security pay- tion to life insurance and provi- employers’ contri- the presently
founder of AU Corporate Advi- In October 2021, the Reserve Budget proposals could cating a possible improvement ments. “An increase in the dent fund, etc., available under bution to the NPS to the extent allowed limit of 10%, bringing
sory and Legal Services. “How- Bank of India superseded the undergo several reviews before in tax collections beyond the extent of tax rebate under the the old regime should be of 12% of salary as against 10% parity between private sector
ever, NCLT and other judicial boards of the two Srei compa- they are finally presented. budgeted ₹23.3 trillion in new personal income tax allowed in the new personal now allowed in the private sec- employers’ NPS contributions
forums ought to scrutinize pro- nies citing governance con- According to data released 2023-24 after accounting for regime will obviously help tax income tax regime as well,” said tor—as reportedly suggested by and provident fund contribu-
cedural irregularity and ques- cerns and repayment defaults. by the Central Board of Direct states’ share. payers. It is also true that social Ved Jain, tax expert and former the Pension Fund Regulatory tions. In the case of government
tions of patent illegality while The regulator then moved the Taxes (CBDT) last year, individ- Experts said that while tax security is important and tax president of the Institute of Development Authority employees, government contri-
approving any resolution plan.” Kolkata bench of NCLT to initi- uals in the income range of ₹5.5 rebate increase will help the payers should be encouraged to Chartered Accountants of India (PFRDA), along with higher bution to the NPS up to 14% of
The NCLT had in August ate insolvency proceedings. lakh to ₹9 lakh a year filed the middle class, the government invest in social security instru- (ICAI). At present, benefits such rebate under the new personal salary is exempt from income tax.
LIVEMINT.COM CORPORATE Monday, 8 January 2024
MuMbai 07

Haldiram’s unwraps its Allied Blenders launches Zoya gin

Varuni Khosla mother brand grow,” he

premium chocolates varuni.k@livemint.com

New DelHI
added.
The company will manu-
facture gin at two locations

A
llied Blenders and Dis- and will begin to sell it in
tillers Ltd (ABDL), the about 10 big markets over the
maker of Officer’s next two quarters.
Choice whisky, has entered ABDL has a total of 33 man-
the gin segment with with a ufacturing units, of which it
The Nagpur arm of the firm launched chocolates under Cocobay brand premium brand called Zoya, owns nine (the rest are owned
which will be priced at around by contract manufacturers). It
₹2,000 in markets such as sells 30 million cases a year.
Suneera Tandon Haryana. “Our larger portfolio strategy
suneera.t@htlive.com Nearly all of the company’s is also to continue to make our
New DelHI sales come from brown spir- mass premium segment prof-
its, at present. It has been itable, where we have our lead

H
aldiram’s Foods Interna- looking to expand its pres- Nearly all of the company’s sales come from brown spirits at brand Officer’s Choice
tional (Nagpur) is entering ence in the premium spirits present. ISTOCKPHOTO whisky. This brand has given
the premium chocolate mar- market and has created a ver- us an exceptional return on
ket competing with the likes tical called PremBrands for executive of the company, huge growth and outpacing capital. Over the next three to
of ITC and Mondelez as the this. Apart from Zoya, Prem- told Mint. competitive white spirits, five years we are looking to
home-grown food major moves towards Brands includes spirits such To expand its presence in albeit on a small base of about sell 45 to 50 million cases. A
building a wider portfolio of packaged as Sterling Reserve B10, X&O, the prestige and luxury seg- 1.2 million cases a year. third of our product is captive
foods beyond mithai and savoury snacks. Srishti whiskies, and Kyron ments, the company plans to “India’s premiumization distillation and two-thirds is
Last year, the Nagpur arm of the family- Brandy. launch a new product every story is moving along at an bought,” he added.
run business launched an in-house incu- The company, meanwhile, quarter in calendar year 2024, unimaginable pace. From a The company, which com-
bation project to develop chocolates under plans to file its draft red her- Gupta added. Zoya gin is its customer lens, this is a cate- petes with the likes of United
the Cocobay brand. The chocolates priced ring prospectus (DRHP) this first product in the luxury gory which is prone to experi- Spirits Ltd, said it clocked
between ₹150 and ₹399 for single serve month and wait for Sebi’s segment, he said. mentation at a much higher gross revenue from opera-
bars to ₹2,000 for large packs have been approval of its initial public “In the spirits market in frequency than some of the tions of ₹7,105 crore in FY23
rolled out in various markets like Mumbai, offering (IPO). The offering, India right now, the gap lies in others. We have also already by selling 31.45 million (nine-
Pune, Nagpur, Bangalore, Surat, etc. originally planned for March the luxury segment where begun work on flavoured var- litre) cases. Its revenue from
“We are good at selling sweets, but 2024, is likely to be delayed about 12-15 million cases are iants of this gin, anticipating operations came in at ₹7,196
when it comes to chocolates, we saw a big by a few months, Alok Gupta, sold,” Gupta said. India’s pre- demand. Providing these new crore in FY22, when it sold
gap in the Indian market. Not many play- The move comes as the business is setting itself up for playing a greater role in the managing director and chief mium gin segment is seeing experiences will also help the 28.62 million cases.
ers are selling premium chocolates at packaged foods market. MINT
scale,” said Adeesh Jain, general manager,
Haldiram’s Foods International Pvt. Ltd the packaged foods market. While Haldi- machines for bakery products. Bakery is a
(Nagpur). Jain oversees the company’s ram’s branded namkeen, cookies, and very big segment but in India, it is largely
frozen foods as well as ready-to-eat port- bhujia are widely available in India and focussed on breads. There’s no organized
folio. To be sure, the company also sells overseas, Jain said the company is adding player doing premium bakery at scale,” he
Panasonic plans to make India export hub
namkeens and savoury snacks in a pack- more bakery and snacking products in said.
aged format. stores. Over the last three years, the com- The company is getting into a whole PTI in this country, said chairman consumer appliances, electric to set up around five factories
The brand will be retailed across mod- pany has also expanded its frozen foods “basket” of packaged food products. “So feedback@livemint.com of Panasonic Life Solutions boxes (wire and wiring devise), and two innovation centres,
ern trade as well as premium general trade portfolio under Haldiram’s Minute when people enter our stores, their entire New DelHI India and South Asia Manish supply chain where it provides Sharma said.
stores as well as direct-to- food needs are covered,” he Sharma. smart factory solutions, indus- When asked about the reve-
TASTY TREATS
P
consumer platform and quick said. anasonic expects a “dou- Panasonic Corporation is trial devices and energy busi- nue, Sharma said, “We had
commerce websites. Haldiram’s is also set to ble-digit” growth in the “heavily commit- ness in which it is ₹10,500 crore last year (FY23)
India’s chocolate market THE premium HOME-GROWN CHOCOLATE double its namesake restau- Indian market this fiscal ted” to the Indian In the last 10 offering lithium- and this year (FY24), again, we
was estimated at ₹17,200 chocolates are
priced at ₹150-399
major plans to
compete with the
market was at
₹17,200 crore in 2019;
rant chain in South and West while the company prepares to market as its years, Panasonic ion batteries for are looking at driving a dou-
crore in 2019; it is estimated for bars and ₹2,000 likes of ITC and to grow at a CAGR of India amid greater demand tap the long-term potential of “long-term has invested mobility and sta- ble-digit growth on that base.”
to grow at a CAGR of 10% for large packs Mondelez 10% in 2019-2023 for out-of-home food. the country by bringing high- potential is very funds to set up tionary storage According to Sharma, in
between 2019-2023, accord- The move comes as various tech products, besides making high” because of a
five factories and applications. India Panasonic is taking a
ing to researcher Mintel. packaged food players have it an export hub. lower penetra- Though India “very strategic and structured
Jain said young consumers are moving Khana—a largely export focussed brand. stepped up investments in India given India is among the three tion of products two innovation is a small market approach” to be able to align
away from consuming traditional Up until 2020, 95% of the company’s fro- greater conversion from unbranded to important regions for the in the country, centres in India for Panasonic, its “activities and intention,
sweets—the mainstay for several large zen foods such as samosas and paranthas branded foods. company headquartered in providing contributing less one with the capabilities
homegrown restaurant brands, including were exported; today, 25% of products are Last year, chocolate maker Mondelez Osaka, Japan, and it is in the enough space to than 2% to its which exist of a 100-year-old
Haldiram’s—to buying more western style retailed locally. India promised to invest ₹4,000 crore process of building and bring- grow, he said. global revenue, it is among the company (Panasonic Corpora-
premium products. “We aren’t moving away from the core over four years to expand its manufactur- ing many more products and The company is working on top three potential regions, tion) and second the opportu-
The move comes as the business is set- business at all. But we have started experi- ing capacity and build more warehouses high-technology solutions India-specific innovations for where the corporation in the nity which exists in the coun-
ting itself up for playing a greater role in menting a lot more. We started getting and cold-chain facilities. which did not exist in the past its business verticals such as last 10 years has invested funds try”.

Ponder beyond
‘How can
my business
sustain?’

to
‘Are sustainable businesses
more profitable?’
Have fun
with facts
on Sundays
Catch the latest column of

A
A quiz on the week’s development.

When you're thinking of the world being better,

you're already thinking bigger. Get answers and
updates on the latest happenings in the world of
business, only with Mint.
Scan to watch the film. hindustantimes htTweets www.hindustantimes.com
08 Monday, 8 January 2024
MuMbai GLOBAL LIVEMINT.COM

m MINT SHORTS
N. Korea vows military strike if any
Airlines ground Boeing’s 737
Max 9 after mid-air blowout
provocation, fires artillery rounds
North Korea will launch a military strike immediately in response
to any provocation, Kim Yo Jong, the sister of leader Kim Jong
Un, said on Sunday, as it fired artillery shells near its border with
the South for a third day. The remarks come after South Korea’s
military said the North had fired more than 60 artillery rounds
on Saturday near their disputed maritime border, following a
similar volley of more than 200 the previous day. North Korea
again fired about 90 rounds on Sunday, the South said. The Rush of groundings triggered by US action marks most severe response since the entire fleet was parked in 2019
North’s army said they did not pose any threat to the South as the
firing drill was conducted parallel to the border. REUTERS
Bloomberg seats next to where the door blew out,
feedback@livemint.com or “this story would have been a lot
Bangladesh’s low turnout in polls different,” he said.

T
he grounding of Boeing
set to keep PM Hasina in power Co.’s 737 Max 9 quickly
PTI
gathered pace, with carri-
ers from the US to Panama
to Turkey pulling the
model from service for inspections
after a fuselage section on a brand-
new Alaska Airlines jet blew out dur-
ing flight.
After Alaska Air kept its fleet of 65
737 Max 9s on the ground following
the incident on 5 January, United Air-
lines Holdings Inc., the model’s top
operator, followed suit with some
jets. Then the Federal Aviation
Bangladeshis largely stayed away from the polls in a general Administration ordered a temporary
election on Sunday set to give Prime Minister Sheikh Hasina grounding of 171 planes, accelerating
a fourth straight term, after a vote boycotted by the main the response among other airlines.
opposition party and marred by violence. Rights groups Aeromexico took all of its Max 9s out
have warned of virtual one-party rule by Hasina’s Awami of service, and Panama’s Copa Air-
League after the boycott by the Bangladesh Nationalist lines did the same with most of its jets.
Party and some smaller allies. Turnout was about 40% when The cascading grounding marks
polls closed, said chief election commissioner Kazi Habibul the most severe response since Boe-
Awal, compared with over 80% in the last election in 2018. ing’s entire fleet of Max aircraft was
Initial results are expected early on Monday. REUTERS parked in 2019 following two deadly
crashes. The 737 Max is by far the
company’s most popular aircraft and
Italian foreign minister calls for its biggest source of revenue. The
blowout puts the focus back on Boe-
formation of combined EU army ing’s manufacturing controls just as it
The European Union (EU) should form its own combined army was gearing up to raise output of its
that could play a role in peacekeeping and preventing conflict, cash-cow model and turn the corner
Italian foreign minister Antonio Tajani said. In an interview with on past defects.
Italian newspaper La Stampa, Tajani said that closer European “We are very fortunate this didn’t
cooperation on defence was a priority for the Forza Italia party end up in something more tragic,”
that he leads. “If we want to be peacekeepers in the world, we Jennifer Homendy, the head of the
need a European military. And this is a fundamental precondition National Transportation Safety
to be able to have an effective European foreign policy,” he said Board, said at a press conference in
in an interview published on Sunday. “ European defence coop- Portland, Oregon, on Saturday.
eration has risen up the political agenda since Russia’s full-scale “We’ve now determined based on our
invasion of Ukraine almost two years ago. REUTERS definition of substantial damage that
this is an accident, not an incident.”
Only two US airlines operate the
EU Council President Michel 737 Max 9 variant: United with 79,
and Alaska Air with its 65. Alaska said
says he will step down early late Saturday it was again removing 18
AFP
The 737 Max is by far the company’s most popular aircraft and its biggest source of revenue.
737 Max 9s that it had already
returned to service based on recent
maintenance, and said it would wait
for details of additional work required
by the FAA.
The company wasn’t sure what else
would be needed before adding the
planes back to its fleet, and said it
expects travel disruptions to last
through mid-week.
United, which earlier said 33 of its
Max 9 jets already had the checks
required by the FAA, grounded all of
the planes as it works to clarify the
inspection process and regulators’
requirements.
“We are working directly with
impacted customers to find them
alternative travel options,” the airline
said in a statement.
Turkish Airlines said its country’s
civil aviation authority asked it to
examine its small fleet of five 737 Max
9 planes. Until the technical review is
complete, the carrier has withdrawn
the jets from service.
Flight 1282 was carrying 171 pas-
sengers and six crew from Portland to
Ontario, California on 5 January
when the crew reported a pressuriza-
tion issue. A rear left part of the fuse-
lage had blown out, leaving the hole
resembling the opening for a door.
The aircraft returned to Portland
about 20 minutes after takeoff, hav-
ing reached an altitude of about
16,000ft.
Inside the aircraft, which was
delivered to Alaska Air only in Octo-
ber, part of the cabin wall had also
PTI
torn off, exposing insulation material.
Video footage showed the aircraft
landing again in Portland in darkness,
with passengers seated close to the
gaping hole. Nobody was seriously
injured.
“A mini boom or mini explosion
rattled and kind of shook the plane,”
said passenger Nicholas Hoch, a
33-year-old architect, adding that
there was an instantaneous depres-
surization of the cabin. “The best way
I can describe it is as this white vapour
or cloud just rushed through the
plane and, you know, blew my head
back a little bit. My hat flew off and
that was jarring to say the least.”
The cabin lights flickered and air
masks dropped from the ceiling,
Hoch said. No one was sitting in two
China’s aviation regulator con-
ducted an emergency meeting a day
after the incident to consider a
response, including a possible
grounding of the Boeing Max fleet in
the country, according to two people
familiar with the situation, who asked
not to be identified discussing private
deliberations. The aircraft variant
involved in the Alaska Air incident
isn’t flown by Chinese carriers.
China was the first country to
ground the 737 Max after the two
crashes several years ago. Relations
have only gradually improved, with
China taking the first delivery of a
larger 787 model in several years in
December. It has yet to resume 737
deliveries.
Boeing said it supports the FAA
move and that it was in close touch
with the regulator and with custom-
ers. A technical team from the US
planemaker is supporting the probe.
The European Union Aviation Safety
Agency said it’s checking if it will
need to mandate anything.
“Safety will continue to drive our
decision-making as we assist the
NTSB’s investigation into Alaska Air-
lines Flight 1282,” FAA Administrator
Mike Whitaker said in a post on X.
Some lawmakers are seeking
answers from Whitaker and Boeing
on how they will keep travellers flying
on similar aircraft safe.
“America has long held the record
of having the safest airspace and flight
protocols in the world,” Representa-
tive Norma Torres of California said
in a letter to the FAA administrator.
“That said, Boeing’s track record,
along with the FAA’s safety oversight
in recent years, has raised serious,
warranted concerns for the flying
public.”

Kishida suffers fresh blow as China sanctions 5 US defence

LDP arrest deepens scandal companies in tit-for-tat move
Bloomberg lowed by a deadly plane crash at AP “The Chinese government
feedback@livemint.com Tokyo’s Haneda airport on 2 feedback@livemint.com remains unwavering in our
January. Tokyo prosecutors, BEIJING resolve to safeguard national

P
Belgian politician Charles Michel has announced he will rime Minister Fumio Kis- Ikeda’s office and the LDP sovereignty, security and ter-

step down early as European Council president after he hida suffered another
runs in the European parliament elections set for June. The blow in Japan’s widest-
surprise move is likely to heighten speculation about who ranging political scandal in
will be the next European Union leaders as negotiations decades with the arrest of a rul-
begin for a new round of top jobs in November, when ing party lawmaker on Sunday.
Michel’s official mandate runs out. EU Commission Presi- Kishida told reporters on
dent Ursula von der Leyen of Germany, who like Michel Sunday that he was aware of the
was appointed in 2019, has so far kept quiet on whether she detention of Yoshitaka Ikeda, a
intends to seek a second term. BLOOMBERG member of the Liberal Demo-
cratic Party’s biggest faction,
and called it “very regrettable,
UN sounds alarm at rising cases and we take it very seriously.”
Ikeda will be expelled from the
of hate speech in DR Congo party, Kishida said.
The United Nations’ (UN) top human rights official, Volker Turk, It’s the first arrest of a politi-
voiced alarm on Sunday about rising ethnic tension and calls to cian in a slush fund scandal.
violence in the Democratic Republic of Congo following disputed Tokyo prosecutors detained
elections. Massive delays and bureaucratic chaos marred the 20 Ikeda for allegedly failing to
December ballots to choose the president, lawmakers for report 48 million yen that he
national and provincial assemblies, and local councillors. So far received from the faction,
the election commission has only announced the result of the according to public broad-
presidential vote—a landslide victory for incumbent Felix caster NHK. His secretary was
Tshisekedi that the opposition has rejected as a sham. AFP also held, local media reported.
PM Kishida speaks at a news
conference in Tokyo. REUTERS
The deepening turmoil has
pushed Kishida’s disapproval
ratings to the worst for a Japa-
nese prime minister since 1947
and may intensify speculation
that his days at the helm are
numbered. The embattled pre-
mier also faces a rising death
toll from a 7.6-magnitude
earthquake off the northwest
coast on New Year’s day fol-
didn’t respond to phone calls
from Bloomberg News seeking
comment on Sunday outside of
regular business hours.
In a pre-recorded interview
that aired Sunday on NHK, Kis-
hida addressed the fallout from
the political scandal and the
tremor.
“I must offer an unreserved
apology for causing such feel-
ings of mistrust among the peo-
ple of Japan,” he said. “I must
take the lead in efforts to
restore trust.” The coming
months will be make-or-break
for Kishida. Key events that
could either bolster his support
or add pressure for him to step
aside include the passage of the
national budget in parliament
and a potential state visit to the
US.
C
hina announced sanc-
tions on Sunday on five
American defence-re-
lated companies in response to
US arms sales to Taiwan and
US sanctions on Chinese com-
panies and individuals.
The sanctions will freeze
any property the companies
have in China and prohibit
organizations and individuals
in China from doing business
with them, the foreign minis-
try said in a statement posted
online.
It was unclear what impact,
if any, the sanctions would
have on the companies, BAE
Systems Land and Arma-
ments, Alliant Techsystems
Operations, AeroVironment,
Viasat and Data Link Solu-
tions. Such sanctions are often
The sanctions will freeze any
property the five US firms
have in China. AP
mostly symbolic as American
defence contractors generally
don’t sell to China.
The foreign ministry said
the US moves harmed China’s
sovereignty and security inter-
ests, undermined peace and
stability across the Taiwan
Strait and violated the rights
and interests of Chinese com-
panies and individuals.
ritorial integrity and protect
the lawful rights and interests
of Chinese companies and citi-
zens,” the ministry statement
said.
The announcement was
made less than a week ahead of
a presidential election in Tai-
wan that is being contested in
large part over how the gov-
ernment should manage its
relationship with China,
which claims the self-govern-
ing island as its territory and
says it must come under its
rule.
Taiwan is a major flashpoint
in US-China relations that ana-
lysts worry could explode into
military conflict between the
two powers. China says that US
arms sales to Taiwan are inter-
ference in its domestic affairs.

Israel signals it has wrapped up major combat in northern Gaza

AP officials, including Blinken, Israel’s hostages returned and Israeli military had no imme- Martyrs’ Hospital because of fighters, without presenting
feedback@livemint.com have repeatedly urged Israel to ensuring that Gaza won’t be a diate comment. the growing danger. evidence.
JErusalEm wind down its blistering air threat to Israel are met. Dahdouh previously lost “The situation became so Meanwhile, the Biden
and ground offensive in Gaza Israel’s retaliation by air, four other relatives, including dangerous that some staff liv- administration and Netanyahu

T
he Israeli military sig-
nalled that it has
wrapped up major com-
bat in northern Gaza, saying it
has completed dismantling
Hamas’ military infrastructure
there, as the war against the
militant group entered its
fourth month on Sunday.
The military did not address
troop deployments in north-
ern Gaza going forward. Its
spokesman, Rear Admiral
Daniel Hagari, said late on Sat-
urday that forces would “con-
tinue to deepen the achieve-
ment” there, strengthen
defences along the Israel-Gaza
border fence and focus on the
central and southern parts of
the territory.
The announcement came
ahead of a visit to Israel by US
secretary of state Antony
Blinken. Biden administration
and shift to more targeted
attacks against Hamas leaders
to prevent harm to Palestinian
civilians.
In recent weeks, Israel had
already been scaling back its
military assault in northern
Gaza and pressing its offensive
in the territory’s south, where
most of Gaza’s 2.3 million Pal-
estinians are being squeezed
into smaller areas in a humani-
tarian disaster while being
pounded by Israeli airstrikes.
The war was triggered by
Hamas’ 7 October attack on
southern Israel in which the
militants killed about 1,200
people, mostly civilians, and
took some 250 people hostage.
Israeli Prime Minister Ben-
jamin Netanyahu on Sunday
again insisted the war will not
end until the objectives of
eliminating Hamas, getting
land and sea has killed more
than 22,700 Palestinians and
wounded more than 58,000,
according to the health minis-
try in Hamas-run Gaza. The
count of the dead does not dis-
tinguish between combatants
and civilians. Health officials
say about two-thirds of those
killed have been women and
minors. Israel blames Hamas
for the heavy civilian casual-
ties because the group oper-
ates in heavily populated resi-
dential areas.
On Sunday, officials at Nas-
ser Hospital in the southern
city of Khan Younis received
the bodies of 18 people, includ-
ing 12 children, who were
killed in an Israeli strike late on
Saturday. More than 50 people
were injured in the strike on a
home in the Khan Younis refu-
gee camp, which was set up
Israeli Prime Minister Benjamin Netanyahu addresses a cabinet
meeting in Tel Aviv on Sunday.
decades ago to house refugees
from the 1948 Mideast war
over Israel’s creation and mor-
phed into a neighbourhood of
the city.
An airstrike near the south-
ern city of Rafah killed two
journalists on Sunday, includ-
ing Hamza Dahdouh, the old-
REUTERS
est son of Wael Dahdouh,
Al-Jazeera’s well-known chief
correspondent in Gaza, the
Arabic channel and local med-
ical officials said. Al-Jazeera
broadcast footage of Dahdouf,
weeping next to his son’s body
and holding his hand, before
walking away in a daze. The
his wife, two children and a ing in the neighbouring areas remain far apart on who
grandchild, in a 26 October were not able to leave their should run the territory after
airstrike, and himself was houses because of the constant the war, with the Israeli leader
wounded in an Israeli strike threats of drones and snipers,” repeatedly rejecting the
last month that said Carolina Washington-floated idea of
killed a Israel’s retaliation L o p e z , the having a reformed Palestinian
co-worker. by air, land and group’s emer- Authority, an autonomy gov-
Israeli forces sea has killed gency coordina- ernment in parts of the occu-
were also pushing more than 22,700 tor at the hospital. pied West Bank, eventually
deeper into the Hagari, the administer Gaza.
Palestinians and
central city of military spokes- In a further complication of
Deir al-Balah, wounded more man, said the Blinken’s mission, a new esca-
where on Satur- than 58,000 scattered fighting lation of cross-border fighting
day residents in in northern Gaza between Israel and Lebanon’s
several neigh- was to be Hezbollah has put strains on a
bourhoods were warned in fly- expected, along with rockets US push to prevent a regional
ers dropped over the city that sporadically being launched conflagration. Saturday’s
they must evacuate their from there toward Israel. He fighting was described by Hez-
homes. said Hamas no longer operates bollah as an “initial response”
The international medical in an organized manner in the to the targeted killing of a top
charity Doctors Without Bor- area, but that militants “with- Hamas leader in a Hezbollah
ders, known by the acronym out a framework and without stronghold of the Lebanese
MSF, said it was evacuating its commanders” are still present. capital of Beirut last week. The
medical staff and their families The military has said it has strike was presumed to have
from Deir al-Balah’s Al Aqsa killed more than 8,000 Hamas been carried out by Israel.
LIVEMINT.COM NEWS WRAP Monday, 8 January 2024
MuMbai 09

NEWS
₹2 cr
THE AMOUNT for which a Delhi-based
5
THE NUMBER of Boeing 737 Max 9
₹899 cr
THE GLOBAL box office collection of
10
THE NUMBER of international markets
7,931
THE NUMBER of units luxury car maker
IN lawyer bought 2 plots originally owned by aircraft that Turkish Airlines temporarily Ranbir Kapoor’s Animal, making it one of from which food delivery company Audi sold in India in 2023, up 89% from
NUMBERS gangster Dawood Ibrahim’s mother at an
auction, 1,300 times the reserve price.
withdrew for checks after Alaska Airlines’
midair accident involving the model.
the five highest-grossing
Hindi films of all time.
Zomato exited in less than a year,
including Vietnam and Poland
previous year, and its best year since 2015,
when it sold 11,192 units.

HOWINDIALIVES.COM

‘High inflation hits TOY STORIES FMCG sector eyes

consumption’ low volume growth

T L
he Indian economy is facing the
challenge of lower consumption growth
as high inflation is impacting people in
the lower income bracket, India Ratings and
Research chief economist Devendra Kumar
Pant said on Sunday.
He said although the country’s economy is
now resilient enough to deal with the dual
shocks of below-normal monsoon and high
global oil prices, the challenge is to bring down
inflation so that people can have more
disposable income in their hands.
“One percentage point reduction in inflation
will lead to 64 basis points increase in GDP or
1.12 percentage points increase in PFCE
(private final consumption expenditure)
growth...If inflation can be brought down by 1
percentage point, it would be a win win,” Pant
said in an interview to PTI. PFCE denotes
money spent by individuals on goods and
services for personal consumption.
eading FMCG makers are expecting a low
to mid-single-digit volume growth in the
October-December quarter, with an
improvement in consumer demand on a
sequential basis.
Consumer demand from the rural market is
lagging, though the urban markets stayed
steady in the third quarter as exhibited in the
September quarter, said leading listed FMCG
firms such as Dabur, Marico and Godrej
Consumer Products in their quarterly updates.
Companies are optimistic of a gradual uptick
as early signs of revival in consumption are
visible with improving trends in volumes.
Besides, the makers also expect expansion in
the gross margins on a year-on-year basis
helped by moderating inflation as prices of key
inputs such as copra and edible oil remained at
lower levels and crude derivatives also
exhibited some downward bias. PTI
PTI

Kite flying enthusiasts at the international kite festival in Ahmedabad on Sunday. PTI

The life insurance industry paid a total benefit of

Maldives govt clarifies after a The drive unearthed 29,273 bogus firms involved
in the suspected tax credit evasion. PTI
₹4.96 trillion in 2022-23.

Life insurers payout

MINT

minister’s remarks stir row ‘GST evasion of over

₹44,000 cr detected’
moderates in FY23
F
inance ministry said on Sunday that

P
ayout by life insurance companies
declined by about ₹6,000 crore
during 2022-23 because of lesser
number of death claims as compared to the
previous financial year which was impacted
by covid-19.
The life insurance industry paid a total
benefit of ₹4.96 trillion in 2022-23 as
suspected tax evasion related to Goods
Maldivian president’s office said 3 deputy ministers to be suspended for comments and Services Tax (GST) credit of more
than ₹44,000 crore has been detected since
last May in a drive against non-existent tax
Shashank Mattoo also announced that three deputy ministers, President Mohamed Muizzu’s government has payers.
shashank.mattoo@livemint.com including close associates of President Muizzu, asked India to withdraw its military personnel The drive unearthed 29,273 bogus firms
new DeLHI will be suspended for their comments. from the country. It has also refused to renew a involved in the suspected tax credit evasion
The controversy saw many on social media call treaty on hydrographic cooperation between the leading to arrest of 121 persons, the ministry

compared to ₹5.02 trillion in FY22, according
to the latest annual report released by sector
regulator IRDAI.
During FY22, the year hit by covid-19 wave,
the insurance companies paid ₹60,821.86
crore as death claims.
This came down by ₹19,000 crore to
₹41,457 crore in 2022-23.
The benefits paid on account of surrenders/
withdrawals increased by 25.62% to ₹1.98
trillion in 2022-23, of which public sector
insurers accounted for 56.27%.
During the year, out of the total surrender
benefits, it said, benefits for ULIP (unit-linked
insurance plans) accounted for 62.51% for
private insurers and 1.56% for state-owned life
insurers. PTI
T
he Maldivian government distanced for a boycott of Maldives as a tourism destination. two countries that was signed in 2019. said in a statement.
itself from the controversial remarks of Former president Mohamed Nasheed and Unlike previous Maldivian presidents, Muizzu To curb GST frauds and to increase
key government ministers on Sunday. former foreign min- has also not compliance, central and state tax authorities
This came after the concerned politi- ister Abdulla Shahid embarked on a visit are carrying out a focused drive against bogus
cians put out posts on social media that also criticised the A disruption in Indian tourism to India. GST registrations and issuance of fake
many felt insulted Prime Minister Narendra Modi ministers con- to Maldives could hurt its economy, Instead, the invoices without any underlying supply of
and Indians. cerned for their newly elected leader goods and services.
“The Government of Maldives is aware of comments about a said former minister has chosen to visit This effort has saved ₹4,646 crore of which
derogatory remarks on social media platforms close partner of the Ahmed Mahloof Turkey and will now ₹3,802 crore is by blocking of input tax credit
against foreign leaders and high-ranking individ- Maldives. visit China. and ₹844 crore by way of recovery, the
uals. These opinions are personal and do not rep- Former minister Muizzu, who is a ministry said. GIREESH CHANDRA PRASAD
resent the views of the Government of Mal- Ahmed Mahloof cited his concern at the escalat- protege of former president Abdulla Yameen, has
dives...Moreover, the relevant authorities of the ing rancour surrounding the controversy. A dis- been associated with an India sceptic wing of Mal-
Government will not hesitate to take action ruption in Indian tourism to Maldives could hurt divian politicians. One of the suspended minis-
against those who make such derogatory
remarks,” the government said in a statement.
its economy, he said. ters, Mariyam Shiuna, was Muizzu’s spokesper-
The controversy comes even as New Delhi and son when he served as Mayor of Male, the coun-
Auto loan interest
Following this, the Maldivian President’s office Male have faced setbacks to their relationship. try’s capital.
hike to hit PV sales

P
assenger vehicle sales in India could be
Footwear sector to weighed down by increase in interest
ONGC seeks premium on govt price rates for auto loans, if there is no
hit $90 bn by 2030 reduction in repo rates going forward as the
industry gears up for a single-digit growth this
per day of gas from the North Karanpura year, according to Maruti Suzuki India senior

M
arket size of the Indian footwear
industry can increase by over three
times to $90 billion by 2030 provided a
host of measures such as a ban on shoe imports,
fiscal incentives, more design centres and
Taiwanese contract manufacturers setting up
shops in the country are taken, a report said on
Sunday. Economic think tank Global Trade
Research Initiative (GTRI) said the Indian
footwear market, valued at $26 billion, is
projected to reach $90 billion by 2030.
“This growth will be characterized by two
main changes—a significant increase in the
demand for non-leather footwear (like sports
shoes, running shoes, casual wear, and sneakers)
PPAC declares price for domestically
produced natural gas every month. REUTERS
coal-bed methane (CBM) block for three
years.
Users have been asked to quote a
premium they are willing to pay over and
above the monthly domestic natural gas
price that the oil ministry’s Petroleum
Planning and Analysis Cell (PPAC)
notifies, the tender document showed.
PPAC every month declares a price for
the majority of domestically produced
natural gas. This price is 10% of the
monthly average of the basket of crude oil
that India imports. For January, this price
comes to $7.82 per million British thermal
unit.
executive officer (marketing and sales)
Shashank Srivastava.
With a high base of record 4.11 million units
in 2023, passenger vehicle (PV) sales this year
could grow in single digit with the overall
economic growth of the country being a
positive factor, he said.
Besides the possible increase in interest
rates, other factors that would play a
role in the growth moderation of the
All business entities are advised to register with passenger vehicle sales is the end of pent up
DoT SaralSanchar portal. MINT demand and stock correction that
manufacturers have undertaken before the
DoT extends M2M, end of 2023. PTI

in India, rising from 25% to 75% of the market
share by 2030; and a shift in leather shoe
production from small-scale, cottage industries
to large corporates,” it said. It also suggested the
government impose a 35% customs duty on
footwear imports priced below $3 per pair and
set a minimum import price of $5 per pair to
S
tate-owned Oil and Natural Gas
Corp. (ONGC) is seeking a premium
over the government gas price for
the gas it plans to produce from coal
seams in Jharkhand.
ONGC has sought bids from users for
sale of 0.05 million standard cubic metres
This price in the ONGC tender has been
marked as reserve gas price.
While the government sets price for
two-thirds of the gas produced in the
country, CBM gas enjoys pricing freedom
where sellers are allowed to discover
market rate.
WPAN registration
Tamil Nadu in $4.4 bn
T
he Department of Telecommunications
(DoT) has extended Machine-to-Machine
(M2M) and Wireless Personal Area Network
deal with investors
PTI as also Wireless Local Area Network (WPAN/

protect the domestic industry.
Petchem duty concessions a sticking point in Oman FTA talks
PTI WLAN) registration to all entities engaged in
such businesses.
DoT has said non-compliance may lead to
withdrawal or disconnection of telecom
resources obtained from the authorised
telecom licensees.
Accordingly, it said, all business entities
T
amil Nadu has signed investment pacts
worth more than $4.39 billion with firms
such as Apple suppliers Tata Electronics
and Pegatron, as well as auto major Hyundai
Motors, it said on Sunday.
Apple is counting on India as the next big
driver of its growth as the tech giant looks to

T
he demand for customs duty concession on petrochemical products
such as polypropylene and polyethylene, used primarily in the plastics
industry, may act as a sticking point in the early conclusion of talks for
the proposed free-trade agreement (FTA) between India and Oman,
according to an official.
Negotiations for the pact, officially dubbed the Comprehensive Economic
Partnership Agreement (CEPA), are in the last phase.
Certain domestic players from both public and private sectors are
opposing duty concessions on these products under the agreement.
They claim that Oman provides huge subsidies to its industry on raw
materials for the production of these petrochemical products.
According to them, if India would give duty concessions on these already
subsidised products, it would be a double advantage for Omani firms.
The government official said they are holding talks with domestic players
on the issue.
(companies, government departments,
organisations, partnership firms, LLPs,
institutions, undertakings, proprietorship
firms, societies and trusts) engaged in M2M
service provisioning and WPAN/WLAN
connectivity provisioning are advised to
register with DoT “through a simple and
transparent online process” via SaralSanchar
portal. Announcing that M2M and Wireless
Personal Area Network/Wireless Local Area
Network (WPAN/WLAN) registration has been
extended to all entities engaged in the said
businesses, DoT in a release said entities
Domestic companies oppose duty concessions on these products include businesses, government departments
PTI under the agreement. MINT and partnerships.
diversify some production away from China,
with Pegatron working towards a second factory
in the country where Tata Group last year began
to assemble iPhones.
Tata Electronics, a part of the Indian
conglomerate, committed to invest ₹120.8
billion for mobile phone assembly operations,
the state government said during the signing of
the agreements. “The Tamil Nadu government
will support investors in every way possible,”
chief minister M.K. Stalin said at the event,
adding that it sought to play a major role in
India’s growth. Pegatron, Apple’s Taiwan
supplier, will also invest ₹10 billion to expand
PTI production, the government added. REUTERS
10 Monday, 8 January 2024
MuMbai LONG STORY LIVEMINT.COM

POOR SUPPLY CHAINS

CHOKING AIRLINES
Policymakers and airlines are increasingly calling for localization of maintenance, repair, and overhaul operations

Anu Sharma cess of design, development and pro-

anu.sharma@livemint.com duction of parts,” a senior executive at a
NEW DELHI global aircraft manufacturing company
told Mint, on condition of anonymity.

T
hai Airways, the flag carrier “The supply chain is so vast and at so
of Thailand, is considering many levels, that when covid hit, a lot of
switching to traditional taps shops at the lowest level of the supply
in its aircraft lavatories as China. However, supply chain issues chain shut and moved on to some other
supply chain issues have hit globally have affected the availability of sector.”
availability of spare parts for automatic aircraft, engines and parts, preventing In-flight entertainment was also
water taps. “The electronic water tap is airlines from ramping up capacity. mint affected by the job cuts, said Thai Air-
sophisticated and we cannot find spare The International Air Transport ramp-up plans, hiring, training people, SHORT seats,” said CEO Eamsiri. ways’ Eamsiri. “Vendors who are ser-
parts, so we are thinking of going back Association (IATA) has pointed to per- and certifying new suppliers to catch up STORY Airlines from across the globe, espe- vice providers laid off all engineers dur-
to using a mechanical tap—it is more sistent issues such as labour shortages with the backlog, airlines are worried cially from India, are meeting growth in ing covid, so that means they had to
reliable and easy to maintain,” Thai in aerostructures and welding, higher that this problem will take a while to be passenger demand by inducting aircraft start from scratch. These days, it takes
Airways chief executive officer (CEO) costs for interiors, long lead times for addressed. WHAT despite the challenges. However, the at least six months to just modify the
Chai Eamsiri told Mint. “Another electrical components, and challenges Low-cost carrier Go First voluntarily shortage in the availability of planes has logo of the airline on the screen,” he
example is the chiller (refrigerator) on in availability of engineered items, filed for insolvency in May, blaming the Air travel is recovering globally, had a trickle-down effect on air fares, as said.
aircraft. We cannot get a spare of the castings, and complex machines. “ever-increasing” number of failures in particularly with the re-opening industry estimates suggest airlines are Before the repercussions of the covid
chiller, so we have to use dry ice instead “Supply chain issues are slowing the engines supplied by P&W and said that of outbound travel from China. taking any aircraft they can, leading to pandemic could be addressed, the
of the chiller. This is a supply disrup- industry’s ability to ramp up capacity to the US firm failed to supply engines on IATA estimated air traffic as higher lease rentals for used as well as industry was hit by the impact of the
tion.” meet existing demand. Almost all the time. The American company says those of October to be at 98.2% new aircraft. Russia-Ukraine war in 2022. With Rus-
The effort to reduce reliance on the airlines I spoke to have confirmed that claims are without merit. However, the of pre-covid levels. Industry data suggest that the supply sian airspace closed to carriers from
global supply chain is also visible in the these issues have not gone away. They percentage of Go First’s aircraft chain issues and rising interest rates around 40 countries, airlines continue
Tata Group-backed Air India and are not able to re-fleet, not able to do grounded due to P&W’s faulty engines have led to a spike in lease rentals for a to face higher fuel costs on account of
IndiGo, India’s largest carrier. With maintenance and repair on time… That grew from 7% in December 2019 to 31% buT used narrow-body aircraft such as a longer flight times, especially on
flight operations being impacted due to is probably the main issue holding back in December 2020 and 50% in Decem- Boeing 737 or an Airbus 320 to around Europe-Asia and Asia-North America
a scarcity of spare parts amid global their ability to ramp up the number of ber 2022. Supply chain issues have $300,000 per month from nearly routes.
supply chain challenges, Indian airlines flights,” said Subhas Menon, director IndiGo may have to ground nearly affected availability of aircraft, $200,000 per month earlier. The lease The aviation sector, at large, faced
are turning to local suppliers for non- general, Association of Asia-Pacific Air- 25% of its fleet by March due to the engines and parts, preventing rental for a new aircraft in the category further severe consequences from the
critical aircraft components. lines (AAPA). engine inspection recall by P&W and airlines globally from ramping up is estimated to be around $400,000 per trade sanctions following the war, as
“I had to import paper used for print- persistent shortage of engine supply capacity. P&W engine problems month from nearly $300,000 per Russia has 13% of the world market share
ers in an aircraft ... Why can’t I use local The P&W ProBlem from the US-based manufacturer. Cur- have added to their woes. month earlier. of titanium sponge production, which is
paper? Even the stickers on table or toi-
let buffers or soap dispenser bottles... O ne of the biggest reasons airlines
have not been able to ramp up the
These are small things we are looking size of their fleets is because of issues
rently, less than 150 of the 340-aircraft
IndiGo fleet are powered by P&W
engines. NoW
Currently, the Indian aviation sector used extensively in airframe and engine
has a fleet of 644 aircraft against 626 air- parts such as in fasteners, brackets,
craft a year ago. By March, this number landing gear struts, and frames, as well
at,” said Sisira Kanta Dash, Air India’s with engines made by American manu- In order to address the capacity is projected to rise to 686. A total of 164 as a variety of engine parts.
chief technical officer. facturer Pratt and shortfall, IndiGo has decided to retain With their flight operations being aircraft remain idle American aircraft
“If it is not a critical Whitney (P&W). 14 of its older Airbus A320ceo planes, impacted by the scarcity of across various Indian manufacturer Boeing
part, it should be Nearly 140 aircraft are lying In July, RTX Corp, extended the leases on 36 other air- spare parts, airlines such as airports, including Aviation body IATA has had signed a memo-
acceptable. In certain idle across India. Civil aviation the parent of Pratt and craft, and is in the process of inducting IndiGo and Air India have been planes of regional air- flagged long lead times for randum of under-
leases, I made it a Whitney, said that a 11 additional aircraft on lease. Addi- turning to local suppliers for lines and private jets. standing with Russian
point to write it down minister Jyotiraditya Scindia powder metal defect tionally, it plans to lease 12 more non-critical aircraft components. IndiGo leads with 44 electrical components, and titanium producer
that non-critical parts said 95% of these groundings could lead to the A320ceos from the secondary market grounded aircraft, fol- challenges in availability of VSMPO-AVISMA in
should be accepted. cracking of some starting in January. lowed by SpiceJet with November 2021,
We are in the process are due to supply chain issues engine components in Unrelated to the P&W issue, the Tata 26, Air India with six, engineered items, castings, months before the
of getting approvals.” Airbus A320neo jets. Group-backed Air India, meanwhile, is and Alliance Air with war, affirming that
Earlier, restrictive faced by Pratt & Whitney. It called for acceler- waiting for nearly 4,000-5,000 small three. and complex machines. VSMPO-AVISMA
contracts between ated inspections of parts to get its two wide-body aircraft would remain the
airline and aircraft lessors as well as a around 600-700 engines on these jets off the ground, according to its CEO Covid headWinds largest titanium supplier for current
complex regulatory framework hin- for lengthy quality inspections
dered local production of non-critical between 2023 and 2026. The repair
aircraft components. However, this has work, which was initially expected to
and managing director, Campbell Wil-
son. P re-pandemic, the aviation sector and future Boeing commercial air-
was a well-oiled machine with planes. The war led to the termination
sophisticated supply chains for aircraft of this contract as well as suspension of
started to change in the last two-three take 60 days, is now projected to last up Bad Timing components. That changed with the Boeing’s Moscow Design Center,
years.
IndiGo has been seeking approval
to 300 days per engine.
An average of 350 jets could be
from the Directorate General of Civil grounded per year through 2026, with
T he sector, long used to an excess of
supply, has been hobbled by the
shortage of aircraft and parts at a time
RUNNING OUT
onset of the covid pandemic in early where it employed more than 1,000
2020. Air travel came to a standstill due engineers, as well as the Engineering
to travel restrictions, resulting in over & Technology Center in Kyiv, with
Aviation for purchase of certain items, as many as 650 aircraft sitting idle in the when demand has surged. IATA esti- Aviation parts in short supply 67% of global passenger aircraft—nearly over 1,000 staff, which provided engi-
and has started using such indigenous first half of 2024. Over 40 airlines and mated air traffic as of October to be at 17,000 planes—being grounded by neering expertise, research and tech-
supplies in its aircraft. “A few years ago, lessors globally, including IndiGo and 98.2% of pre-covid levels from 40% in „ Engines April 2020, according to data research nical assistance for its commercial air-
we started to identify non-critical items Air India, have been impacted by Pratt & 2020. firm Cirium. With their assets on the planes.
like paper, or non-critical, non-load Whitney’s engine issues. “There were a lot of options for get- „ Castings ground, airlines across the globe went The Airbus Engineering Centre in
carrying items for cabins. We now have Nearly 140 aircraft of scheduled com- ting an aircraft around 2-3 years back. into survival mode, leading to aircraft Russia (ECAR) was also put on hold by
in-house capability to make a part and mercial airlines are lying idle across New lessors don’t want to order; they „ Heat exchanger and parts deliveries being put on hold, European aircraft major Airbus due to
use it in our aircraft,” said Parichay India. The primary reason for 95% of want to wait for a better time to order. and widespread layoffs to compensate the sanctions.
Datta, vice president and deputy head these groundings is the supply chain The biggest challenge right now is find- „ Diodes for the loss of revenue. Industry experts view the supply
of engineering, IndiGo. issues faced by Pratt & Whitney (P&W), ing airplanes for growth; lessors don’t As per a recent IATA report, the chain induced shortages as a more
As the supply chain ecosystem civil aviation minister Jyotiraditya Scin- have enough supply of aircraft, and air-
„ Titanium alloy industry targeted the most experienced severe concern than the labour shortage
undergoes a transition in the post-pan- dia said last month. The engine maker lines are opting for any airplane that „ Landing gear employees with early retirement packa- and fuel prices. Oil prices initially
demic era, policymakers and airlines has a huge backlog of deliveries and they can get,” said an executive at an air- ges to lower costs, while other industries plunged from approximately $80 per
are increasingly calling for localization repairs due to a lack of skilled labour, the craft manufacturer. „ Components competed for aerospace talent with barrel in 2019 to $47 in 2020. But in
of maintenance, repair, and overhaul absence of specific production lines Thai Airways, for instance, is looking decent pay and flexibility, appealing to 2021, they rebounded to $78 and are
units with a robust indigenous supply contributing to the engine parts, and to add used aircraft to its fleet. “But even „ Spark plugs younger hands in particular. currently trading at $88 per barrel.
chain. All this is happening at a time challenges in availability of raw material when we find those aircraft, we have to “Those who had gone or were asked “Every time you have a crisis, the fuel
when the Indian aviation industry is such as titanium since the covid pan- bring those to our MRO (maintenance, „ Paint to leave have not come back to this price will shoot up. We have learnt to
witnessing record demand. Air travel is demic, which was worsened by the Rus- repair, and overhaul) to fix the equip- industry. It takes time to rebuild the live with it; we have no choice. But, non-
recovering, particularly with the sia-Ukraine war. ment. That can take 3-4 months — not to „ Automatic expertise of hundreds of experienced fuel costs also rising is a point of grave
reopening of outbound travel from While P&W has been working on retrofit, just to change the carpet and lavatory taps engineers, resulting in delay in the pro- concern,” said AAPA’s Menon.
LIVEMINT.COM
MFs to PPF: How to start off your
newborn’s investment journey
Parents need to begin investing early for their children’s financial goals, be it higher education or marriage
Jash Kriplani
jash.kriplani@livemint.com
A
n individual’s invest-
ment journey starts right
from the cradle, say
financial planners: So,
while childbirth is an
exciting time for parents, despite the
hardship and expenses, it is also time
for them to chart financial goals that
align with the child’s future, particu-
larly higher education and marriage.
Parents can start investing for
these long-term goals immediately
after childbirth. They can do so using
their own bank accounts or start a
new one for the child. These days,
many parents prefer to open separate
accounts for their children and invest
in them—investments that can be
accessed by the children after they
turn 18 years of age.
Other than investments, it is also
important for parents to add new-
borns to their healthcare policies.
This will help them meet the
expenses of any emergency medical
procedure the child may need.
Here is how new parents can start
investing today for their child’s future
financial needs.
Proofs: Aadhaar and PAN
A birth certificate is essential to
obtain Aadhaar ID or PAN for the
newborn. Enrolling for Aadhaar ID is
easy and can be done at any of the
permanent Aadhaar centres. The
details available on a parent’s Aad-
haar —phone number, email id and
address—are added to the newborn’s
Aadhaar. Only the newborns picture
is taken during enrolment, while the
biometrics information is captured
after the child attains the age of five. .
For PAN card, parents need to sub-
mit an application (form 49A) to the
NSDL (National Securities Deposi-
tory to NSDL’s Pune office along with
supporting documents. These docu-
ments include address, identity and
date of birth proof of the newborn.
Start with a bank account
Parents can use their own bank
account or open a bank account in the
child’s name. A minor bank
account——a joint account wherein
one of the parent is a guardian and
considered the second account-
holder—is mandatory if the invest-
ments are routed through a demat
account. This bank account can also
be used for depositing any cash gifts
given to the child.
Opening a minor bank account is a
simple process. All you need is the
birth certificate of the child, parent’s
PAN (permanent account number)
and Aadhaar number as address
proof. PAN and Aadhaar are not
required if the parent has an existing
account with the same bank.
Banks have different terms and
conditions for minor savings account.
For one, the minimum average bal-
What a personal loan costs you
P ersonal loans are a way to use tomorrow’s income today, and the process involved
is simple. But you must note that the interest rates are much higher than, say, for a
car loan. This is because personal loans are unsecured loans. This means that the loan
is not backed by any asset. The loan amount and interest rate depend on parameters
such as your income, existing credit, repayment capacity, and others. As personal loans
come with high interest rates, continuous default will put you on a downward spiral.
Here are some of the lowest personal loan interest rates offered by various banks.
Loan amount: ₹1 lakh; tenure: 5 years
Interest
Lender
rate (%)
Bank of Maharashtra 10.00-12.80
Indian Bank 10.00-11.40
Punjab & Sind Bank 10.15-12.80
Bank of India 10.25-14.75
CSB Bank 10.25-22.00
IndusInd Bank 10.25
Axis Bank 10.49-22.00
HDFC Bank 10.50-24.00
Canara Bank 10.65-16.25
ICICI Bank 10.65-16.00
IDFC First Bank 10.75-24.00
Indian Overseas Bank 10.85-13.00
Union Bank of India 10.95-15.45
Kotak Mahindra Bank 10.99-24.00
Bank of Baroda 11.00-18.05
Data as on 5 January 2024, as per banks’ websites. The EMI range is indicative and calculated on the basis of interest rate range. In an actual
situation, it may include other fees and charges. The interest rates are for salaried individuals and pensioners for unsecured personal loan. Actual
applicable interest rate may vary based on the credit profile, loan amount, tenure, company you work for and as per bank’s discretion.
*Nil for women professionals. **Nil for select categories under Festival Bonanza Offer.
Note: Processing fee is a percentage of loan amount.
PRANAY BHARDWAJ/MINT
MINT MONEY Monday, 8 January 2024
MuMbai 11
POWER
POINT
JOYDEEP SEN
We welcome your views and comments at
mintmoney@livemint.com
WHAT YOU SHOULD
KNOW ABOUT RATE
How a newborn can start investing
under Section 80C); the interest
earned is tax free and the maturity
amount is also tax free.
CUTS THIS YEAR
Gold
T
Often, gifts received by parents on he market is positioning itself for the potential interest rate
behalf of their newborns are in the easing cycle in 2024. Yes, it is very likely. Here are a few
form of gold coins or gold bars. Par- aspects to give you a perspective on the rate cut scenario.
ents can opt for digital gold invest- Why is it expected? Foremost, inflation is expected to ease.
ments if they are not comfortable CPI inflation is expected to average 5.4% in 2023-24. It is
storing gold in their homes. expected to average 5.2% in April-June, 4% in July-September
Ahmedabad-based Jay Patel, 29, and 4.7% in October-December, as per projections put forth by
Sneha Jain with son Kabir Jay Patel with daughter Fiona Ashish Malhotra with son says he has been investing in 1 tola (12 the Reserve Bank of India (RBI). These projections are a shade
(4 years), daughter Meera (3 years), wife Ravina Rudra (7 years), wife Sushmita grams) of sovereign gold bond (SGB) higher than the central bank’s target of 4%. Second, India’s GDP
(6 years), husband Pratik annually for the last couple of years for (gross domestic product) growth is buoyant, but it will do well to
his three-year old baby. He purchases get a little support from interest rates. Finally, globally, interest
City Mumbai Ahmedabad Bengaluru
the SGB units from his account and rate easing cycle is expected to start soon, between March and
Investments Mutual fund SIPs, Mutual fund SIPs, shares, IPOs, Mutual fund SIPs transfers them to his daughter’s demat Mayin the two large economic blocks, USA and Eurozone. China
Sukanya Samriddhi 1 tola sovereign gold bond p.a. account. Patel, who works as research is anyway easing interest rates already.
analyst at a brokerage firm, also uses When is it expected to start? In India, this is expected to
Higher education, wants
Goal Higher education
Higher education &
₹50 lakh health cover for
his daughter’s demat account to gift happen sometime in the second half of calendar 2024. The US
daughter's wedding her stocks and invest in initial public Federal Reserve has communicated through the ‘dot plot’ (the
son after health scare
offerings (IPOs) besides a systematic opinion of the members of Federal Open Market Committee on
Equity & children's Opened a minor demat Healthcare inflation investment plan (SIP) of ₹25,000 in a Fed rate) that policy rate will be eased, starting 2024. The Euro-
fund for each child" account for daughter" flexi-cap mutual fund. pean Central Bank has gone soft on it economic outlook. How-
doubles every 5 years"
A minor’s demat account, which is ever, for RBI, the stance still remains ‘withdrawal of accommoda-
Illustration: operated by a parent till the child tion’. There is no definition of this term; it is a stance somewhere
BIRTH CERTIFICATE + OTHER DOCUMENTS
Monthly SIP ₹5,000 in turns 18, cannot be used to buy shares between neutral and hawkish. Prior to RBI easing interest rates,
Minor mutual fund: Minor bank account Corpus at
Nifty 50 Index 18 years: but a parent can transfer such stock as it will have to change this stance to neutral.
(Can use parent account, but not to redeem) gifts to this account. A minor’s demat RBI will do so when there is evidence that CPI inflation is
Return assumed: ₹37.29
Minor bank account: Parent's PAN & Aadhar 12.44% CAGR account can be opened through a trending towards the target 4%. The six-member Monetary Pol-
Minor demat: Minor's PAN, Minor bank account,
lakh
Source: Value Research, UTI Nifty
stockbroker. The child needs to have icy Committee (MPC) will have to agree to a rate cut, by majority
 Parent's PAN + address proof Index Fund considered both PAN and Aadhaar for this pur- vote. That may happen sometime in the first half of calendar
 Minor can't buy shares, can get gift, bid in IPO Note: Parent can operate minor's investments till they are 18. pose. 2024, paving the way for rate cuts in second half of 2024.
After they turn major, they need to manage. Health risks How much is it expected to be? It is expected to be a shallow
Sukanya Samriddhi/PPF: Minor PAN: Bengaluru-based Ashish Malhotra rate cut cycle. The MPC members have
 Parent's identity + address proof  Submit form 49A on
 Sukanya Samriddhi (SSY) interest NSDL site
(39) has been investing for his seven- Rate cuts in a perspective on real positive interest
TAX TALK (CLUBBING) year-old son since he was six months.
rate p.a. @ 8.2%, PPF@ 7.1%  Send form printout & India are likely rate, calculated on CPI inflation and
Capital gains taxed in parent's The fintech professional aims to build repo rate. There is no communication
 Tax-free maturity & interest docs to Pune office hands if investment redeemed a ₹40 lakh corpus in equity MFs for to happen on how much they want the real inter-
 Upto ₹1.5 lakh deduction on  Address/identify proof before child turns 18. Interest sometime in the est rate to be. Currently, the repo rate
(Minor aadhar)
his child. Malhotra, who plans to use
contribution or dividend income from invest-
ment will get clubbed in parent's
this corpus for his son’s higher stud- second half of is 6.5%. If CPI inflation is, for instance,
Minor Aadhar: Parent's Aadhar ies, wants to ensure that his son’s calendar 2024 5%, then the real positive rate is 1.5%.
income. But, ₹1,500 exemption available.
Add baby in your health cover & life insurance as nominee investments remain separate. Hence, MPC would like to have a buffer as
his son has a separate minor bank well, in case inflation flares up due to
account and MF folio. unforeseen circumstances. Hence the next policy rate easing
ance (MAB) requirement can be any- Jain, a wealth manager, says she bank or any post office. The parents A recent health scare had Malhotra cycle is expected to be in the range of 50-75 basis points (bps), i.e.
where between ₹2,500 and ₹10,000. wants to stick to MFs for the long-term need to submit birth certificate of the also looking at health insurance 0.50= 0.75%. The repo would then be 5.75% or 6%, and CPI infla-
Mutual funds goals of her children. “I have opted for child and their own KYC (know your options more seriously. “Our son had tion should be adequately lower.
Parents or guardian can invest in a equity funds—a multi-cap and a chil- customer) documents such as PAN to undergo a surgery last year. Luck- How much would yield levels react? Calling the market is
minor’s MF account through their dren’s fund—for each child. Equity and Aadhaar. Deposits in an SSY ily, we had an adequate family floater fraught with risks and on momentum, it can go anywhere in the
own banks. However, the redemp- funds tend to do well over longer peri- account can be made for 15 years. The plan which covered the expenses. short run. As a long-term trend, the average spread, i.e. differen-
tion proceeds will only be transferred ods as impact of market-linked volatil- account will mature 21 years after its But, now I am trying to get ₹50 lakh tial between RBI repo rate and 10-year benchmark government
to the minor’s bank ity evens out over longer opening. If the girl marries before the super top-up on this plan just for bond yield over the last 23 years, is approximately 1%. Currently,
account. To open a MF Redemption time frames,” she says. age of 21, the account will be closed. him,” he says. the 10-year yield is hovering around 7.2% and the repo rate is
account, the child’s birth proceeds from The children’s fund Parents can also open a public Malhotra says he doesn’t want to be 6.5%. The spread, at approximately 70 bps (0.7%) is lower than
certificate needs to be mutual funds will comes with a high exit provident fund (PPF) account for in a situation where a health emer- long-term average. If the rate cut is say 50 bps, the 10-year yield
produced to establish only be load, which deters par- children. The documents required gency can potentially eat into his would settle somewhere around 7%. If repo rate is eased to say,
age and relationship
transferred to the ents from making any for this are similar to that of SSY. son’s investment portfolio. A super 5.75%, it would settle somewhere around 6.75%. The 10-year gov-
with the parent or legal early redemptions. A minimum deposit of ₹100 is top-up is a health cover that becomes ernment bond is only one of many in the market. It is referred to
guardian. Along with minor’s bank Jain also invests needed to activate the PPF account. active after the hospital bill exceeds in the absence of a widely-followed index for bond yields.
this, a cancelled cheque account ₹5,000 every month in The annual contribution can be any- the deductibles, which can be paid When is the market likely to move? The bond market typi-
of the child or parent’s Sukanya Samriddhi where between ₹500 and ₹1.5 lakh. from your existing personal or cally reacts prior to the policy rate easing cycle, when expectations
bank account has to be Yojana (SSY) for her The current interest rate offered by employer insurance. are being built in, and in the initial half of the easing cycle. Towards
submitted. daughter, PPF stands at 7.1%. Financial experts say that parents the end of the policy cycle, the market starts positioning for the end
Mumbai-based Sneha Jain, 36, has SSY and public provident fund One of the benefits of starting a should get the newborn added to of the cycle. Hence, sometime next year, when there are stronger
created separate bank accounts for A SSY account can be opened any PPF account early is that by the time their existing health policy. If the par- indications, for example inflation moving as per projections or RBI
her six-and-half-year-old daughter time after the birth of a girl child till the child turns 18, the mandatory ents already have a family floater, changing its stance, we should see a palpable move in yields.
and four-year-old son. Since her chil- she turns 10 years old. The account 15-year lock-in of the PPF account they need to inform their insurer. A Re-investment issue: As and when the potential rally in yield
dren were six months, she has been can be opened with minimum invest- lapses, and the child can decide newborn can get added to an existing levels happen, all yield curves are expected to move down. That
investing in MFs, which are held in ment of ₹250, and a maximum of ₹1.5 whether to close it or continue with it. health policy of the parents after 90 is, various maturities of government bonds, and corporate bonds,
their names. For each child, she lakh can be deposited in it in a finan- Both the SSY and PPF fall in EEE days. If the parents have individual are expected to ease. If you book profits after the rally and re-in-
makes monthly investments of cial year. The government recently (exempt-exempt-exempt) tax cate- health covers, they can get this con- vest in debt, then yield levels would be relatively lower.
₹30,000 through systematic invest- hiked the interest rate on SSY depos- gory. So, the parent contributing to verted into a family floater. Dynamic investors take positions prior to expected market
ment plans (SIPs), from their bank its to 8.2% from 8%. these accounts can claim tax deduc- (For an extended version of this moves. However, it is better to be aware of the relevant aspects.
accounts. An SSY account can be opened at a tion (combined limit of ₹1.5 lakh story, go to livemint.com) Joydeep Sen is a corporate trainer (financial markets) and author
Should I withdraw my PF account corpus?
Neeraj Agarwala
I left my job recently after
working there for five
years and two months. My
employer managed the
provident fund (PF) in its
private trust, and my PF
account was linked to my
EMI UAN (unified account num-
Processing fee
(₹) ber). I have now joined a
2,125-2,265 1% + GST (Min ₹1,000) new company which is
small and does not come
2,125-2,194 1% (Max ₹10,000); Nil for Govt/PSU employees under the ambit of
2,132-2,265 0.50% to 1% + GST Employee Provident Fund
(EPF) Act.
2,137-2,366 2% (Min ₹1,000 and Max ₹10,000) Since my new employer ASK MINT employer becoming eligible in payable to the employee, rep-
will not deduct and deposit m TA X AT I O N the near future, you have the resenting the balance at the
2,137-2,762 1%, Min ₹250
PF in my account, my pre- option to refrain from with- time of cessation of employ-
2,137 Upto 3% vious employer has asked drawing your PF balance. Sub- ment, qualifies for tax exemp-
me to withdraw the PF transfer of PF balance is per- sequently, when your current tion if the individual has pro-
2,149-2,762 Website on maintenance amount that has accumu- missible only between two PF employer enrols in the PF vided continuous service for a
2,149-2,777 upto ₹4,999 lated thus far. Can I trans- accounts. Given the absence of scheme, you can transfer the period of five years or more.
fer my PF balance from the a new PF account with your accumulated funds from your In your specific situation,
2,157-2,445 Nil private trust to EPFO current employer, the transfer previous employer to the cur- since your tenure of employ-
2,157-2,432 Upto 2.5% plus GST
through UAN? In case I of your previous PF balance is rent one. It’s important to note ment with the previous orga-
shift jobs again, can I trans- not feasible. that interest on the PF balance nization exceeded five years,
2,212-2,877 Min- ₹6999 upto 3.5% (PF+ Insurance)+ GST fer it to a different organi- Moreover, the existing legal will no longer accrue three the entire accumulated bal-
zation in future? framework does not provide a years from the date of resigna- ance, to the extent payable
2,167-2,275 0.40% to 0.75%
Name withheld on request mechanism for employees to tion. upon ceasing employment, is
2,172-2,403 Up to 0.50% (Min ₹500) + applicable GST* directly transfer their PF bal- Further, any interest that exempt from tax.
Since your current ance from a private trust to the accrues from the date of resig- Neeraj Agarwala is partner,
2,159-2,877 Upto 2.50%+ GST & other charges employer is not covered under Employees’ Provident Fund nation to the date of transfer or Nangia Andersen India.
2,174-2,542 1% to 2% (Min ₹1,000 and Max ₹10,000) + GST** the Employees’ Provident Organization (EPFO), particu- withdrawal will become taxa-
Fund and Miscellaneous Pro- larly in cases where the cur- ble in your hands. Do you have a personal
visions Act, 1952, it will be una- rent employer is not subject to Under Section 10(12) in con- finance query? Send in your
ble to establish a PF account the EPF regime. junction with Rule 8 of Part A queries at
on your behalf. According to If you intend to remain of the fourth schedule of the mintmoney@livemint.com
and get them answered by
the provisions outlined in the within the PF scheme and Income-tax Act, 1961 (the Act),
MyMoneyMantra.com & bank websites industry experts.
EPF Act and its rules, the anticipate your current the accumulated PF balance
12 Monday, 8 January 2024
MuMbaI VIEWS LIVEMINT.COM

OUR VIEW GUEST VIEW

BLOOMBERG

Social barriers are often the first

Indian entrepreneurs encounter
These barriers have fallen but we still have a way to go before entrepreneurship is widely celebrated

well-developed mental models that today. Leaders are incentivizing entre-

address questions like whether every-
one should pursue entrepreneurship,
who is likely to succeed and how one
should go about it. Non-experts also
have opinions on these matters, often
held with stronger conviction than
experts. Family concerns of marriage
prospects, for example, can impact
ROHAN CHINCHWADKAR entrepreneurial choices.
is an assistant professor of finance and Social opinion that paints entrepre-
entrepreneurship at IIT Bombay. neurship as unattractive, “just too
risky”, “not for you” or “not to be done
like this,” creates a dilemma for aspiring
preneurial explorations and trying to
make them less risky. For example, Birla
Institute of Technology and Science
(BITS), Pilani, announced that it will
allow students and faculty members
who want to launch their own ventures
to take a break of up to a year. If their
ventures fail, students can resume their
education and faculty members can
return to their academic positions.
Social-opinion-driven barriers for
entrepreneurship have been signifi-
cantly lowered in several places and the

It is not all blue skies for

startup founders: they must conform or results are visible. India has created the
go rogue. Should they abide by social world’s third largest startup ecosystem

I
n the mid-late 90s, Indian Institute of opinion and get a safe job or dare to a in a relatively short span of time.
Technology (IIT) Bombay started take a shot at setting up a business by The evolution of this ecosystem must
thinking about setting up a school to forging their own path? A recent paper continue. Barriers need to be lowered

our emerging economy encourage entrepreneurship. An info-

tech incubator, KReSIT, was created
and funded by eminent alumni Nandan
Nilekani and Kanwal Rekhi. What was
published in the journal Entrepreneur-
ship Theory and Practice titled ‘Rogue
Entrepreneurship’ mentions that an
unfavourable consensus can stop
further and positive social opinion
about entrepreneurship should pervade
all geographies, socio-economic classes
and organizations. Statistics reveal dis-
the culture of entrepreneurship in India would-be entrepreneurs from starting parities. Only 18% of India’s unicorns
at the time? Professor Deepak Phatak, ventures. Thus, social opinion is often are founded by women, for example,
India’s 7.3% growth estimate for 2023-24 is impressive. But we still need structural reforms, professor emeritus at IIT Bombay, the first entry barrier faced by an aspir- and about 42% of unicorn founders are
recently shared an interesting anecdote ing entrepreneur. Only after this leap is IITians. A significant portion of venture
more evenly growing consumption and a pick-up in private investment for better expansion about his interaction with an entrepre- taken do other barriers come into the capital funding still goes into consumer
neur looking for incubation at KReSIT. picture. Social opinion not only shapes technology startups, with deep-tech
During the selection interview, the per- individual choices, but also influences startups surviving largely on other
son mentioned that his father wanted to the strength of the entrepreneurial sup- forms and sources of capital. Unique

T
he first advance estimates of our
national income for 2023-24 issued
by the National Statistical Office
on Friday show India’s economy
blazing ahead, with gross domestic
product (GDP) seen rising 7.3%.
As China sputters, India is poised to retain its
fastest-growing major economy tag, having
rebounded sharply from the pandemic on the
back of infrastructure spending by the govern-
ment. In 2021-22, we made up for the previous
year’s covid contraction, and then logged 7.2%
GDP growth last fiscal year. With spring-back
effects wearing off, an acceleration this year
would be remarkable. Although the central
bank’s projection is 7%, a likely higher rate
speaks of how robustly the Centre’s fiscal pedal
has fuelled economic expansion. With world
output expected to grow just 3% in 2023 by the
International Monetary Fund, our bounce-back
stands out globally, especially since growth had
been slowing before the covid crisis called for
stimulus action and pump-priming began.
While order books and tax collections from
on the horizon. Incremental policy moves in the meet Professor Phatak, who agreed port ecosystem. This collective mindset barriers persist for aspiring entrepre-
agricultural sector with spending-target hikes, without knowing what it was about and can either foster or impede the growth neurs from tier-2 and tier-3 cities, villa-
then found the father had a worry to of nascent entrepreneurial ventures. ges, less advantaged socio-economic
as we may probably see again for 2024-25, can- express: If the startup were to fail and Is India better on this aspect in 2024 classes and conservative communities.
not help the sector get competitive and flourish. his son was saddled with debt, how than it was in the late 90s? The answer Negative, narrow or biased opinions
For that, market forces must play a larger role. would he find a suitable bride? In a is an unequivocal ‘yes.’ If an aspiring held by various stakeholders—inves-
The story seems similar in manufacturing, society where stable jobs were the student entrepreneur at IIT Bombay in tors, families, communities, educational
where a boost that has the efficacy needed to norm, the idea of an IIT graduate from a the late 90s time-travels to the campus institutes and bureaucrats—contribute
middle-class family opting for entrepre- today, the person will not be able to to these challenges. Pragmatic opti-
increase its share in overall output to 25% has neurship, risking debt and societal recognize it. It has a vibrant incubator, a mism can go a long way in building con-
been missing. Its job-creation potential may be judgement, was unthinkable. school of entrepreneurship offering a fidence and resilience among budding
falling and our labour edge less effective than The anecdote points to a key but variety of courses, innovation centres, entrepreneurs.
in earlier decades, but we need factory-export often under-appreciated barrier to tinkering labs and a large number of Entrepreneurs should navigate
success. Whether production subsidies can entrepreneurship: social opinion. role models. There are also government rather than ignore societal opinions.
Usually, discussions on entry barriers and private-sector funding opportuni- These embody a mix of traditional wis-
work beyond a few showcase stories has been revolve around topics like large estab- ties. All this in a country buzzing with dom and ingrained biases. Going rogue
under debate, particularly since land and labour lished competitors and the difficulty of aspirations of hosting the world’s most does not mean throwing out the baby
reforms have been left to languish. A state- acquiring crucial resources. However, valuable startup ecosystem. An expert with the bathwater. In this entrepre-
guided factory thrust could work out, but if it almost everyone has an opinion on how consensus at the highest levels of gov- neurial journey, success lies in striking a
falters, course correction may take time. individuals and communities should ernment, academia and industry seems delicate balance between established
make their living. Experts often have to be largely pro-entrepreneurship wisdom and breakthrough innovation.
Next month’s budget will be an interim one,
since elections are due in the first quarter of
2024-25. The pace at which the government
plans to pull back its fiscal deficit will be under
watch. Its interest burden needs moderation.
Advance estimates show lower nominal GDP
growth than budgeted, which can complicate www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Wednesday, January 8, 2014 Vol.8 No.7 `4.00 in Delhi­NCR/`5.00 outside Delhi­NCR 24 PAGES

businesses support growth optimism, India’s this year’s math. The Centre may try to sustain OBITUARY: Run Run Shaw—the
father of kung fu movies >24
CORPORATE: Lactalis to buy controlling
stake in Tirumala Milk Products >7

macro readings have not looked this good in a high capital spending next year, though pru- CONTENT PARTNER
AVIATION: SpiceJet to purchase 40 new planes
worth $4 billion >8
VIEWS: A new trade game >22

If you want to build a ship,

long time. The overhang of a past debt binge dence lies in having private investments keep SENSEX 20,693.24 æ 94.06

FINANCIAL INCLUSION
NIFTY 6,162.25 æ 29.20 DOLLAR `62.30 æ `0.02 EURO `84.93 Æ `0.15

Will United
GOLD `29,720 ® OIL $107.16 Æ $0.43

don’t drum up the men to

QUICK EDIT
RETURN TO FARMS?
RBI committee Crisil research projections raise the spectre of India's employment clock
being turned back, with non-farm job creation falling as growth dips.
Stock Exchange Yellen era
merge with
has lifted, making space for banks to fund cor- the economy’s overall rate of investment near Janet
See Page 4 Yellen has been
confirmed by the US
MCX­SX?
suggests new
EMPLOYMENT PROFILE
(In million) UNEMPLOYED Senate as the next chair
of the US Federal Reserve.
Population in labour force 484 A lot of attention will be
2011-12
11 B Y A NIRUDH L ASKAR & on the pace at which she

gather wood, divide

Worker population 473 S UNIL B .S . reduces quantitative eas-

class of banks
························· ing, or the purchase of

porate expansion, India’s external balances are the mid-30s as a percentage of GDP. Weak con-
MUMBAI bonds by the Fed through

Mor panel also seeks
universal electronic
bank account for all
adult Indian citizens by
2018-19*
535
523
12 U nited Stock Exchange
(USE), the money-losing
new stock exchange, could be
the creation of new money.
But US central bankers typ-
ically have long tenures so
trying to find a way out by it is equally important to
had mooted the idea of differ- merging with another ex- see beyond this immediate
entiated banking licences for
specific banking activities.
EMPLOYMENT INTENSITY OF GROWTH change, with one potential
candidate being MCX Stock Ex-
challenge.
Yellen is known to be a
The central bank put up the change Ltd (MCX-SX), with monetary dove. She also

in good shape, and foreign exchange reserves sumption amid signs of uneven earnings across
January 2016
B Y D INESH U NNIKRISHNAN
dinesh.n@livemint.com
·························
MUMBAI
the work, and give orders.
report on its website on Tues- which it has started prelimi- has an old-style Keynesian
day and has invited comments
Average 8.5% 6% nary talks, according to two commitment to consider
till 24 January. The panel has
growth
people familiar with the devel- unemployment reduction
also recommended the creation opment, who asked not to be as an important goal of
of a set of banks called whole-
50 named. economic policy, so the
sale banks to provide liquidity
to other banks and financial in-
stitutions creating assets in the Jobs added
15
million
million
Both exchanges denied they
were in talks.
Arindam Saha, director of
Fed could look beyond just
inflation targeting.
But the circumstances

A Reserve Bank of India so-called priority sectors. Such 2004-05 to 2011-12 2011-12 to 2018-19* business development at USE, also matter. Fed chairmen

are back at record levels. In general, double- the country are a let-down in this context, as
(RBI) panel has recom- banks, given that their primary said the exchange is not aware have been defined by their
mended that a special role is to give loans, will only be of any such development and times. Paul Volcker
JOBS ADDED BY SECTOR

Instead, teach them to

category of banks, called pay-
ments banks, be set up to widen
the spread of payment services
and deposit products to small
businesses and low-income
households in Asia’s third-larg-
est economy, where about 40%
permitted to accept deposits of (In million) Agriculture Industry and services
has not received any such stamped out high inflation
more than `5 crore, the panel communication from the other even if it meant tipping the
said. They too will have a mini- exchange. “At this point, we do US into a brutal recession.
mum entry capital requirement 2004-05 -37 not want to comment on mar- Alan Greenspan oversaw
of `50 crore. to 2011-12 ket rumours, if any.” an era of financial excess
Some experts say that existing 52 An MCX-SX spokesperson that eventually almost led
institutions such as grameen said, “There is no informal dis- to an implosion in the

digit inflation has begun to look like a risk that animal spirits among businesses are likelier to
of the population still do not
have access to formal financial
services.
Such banks will have a mini-
mum entry capital requirement
banks can be used effectively to
expand access to financial serv-
ices to the poor.
“The system has failed to use
the existing network of small
cussion or development re- world economy. Ben Bern-
2011-12 12 garding merger of businesses anke has been a fire fighter
to 2018-19* between USE and our stock ex- for most of his tenure.
38 change. Hence the possibility Yellen takes over at a
of formal discussion on the time when the global econ-

yearn for the vast and

of `50 crore, one-tenth of what
a full-service bank requires,
since they will have a near-zero
risk of default, said the panel
banks such as grameen banks, *All 2018-19 data is according to Crisil projections merger and other related for- omy is still limping towards
which were ideally placed for normalcy.
Source: Crisil Research
the purpose of financial inclu- TURN TO PAGE 3®
AHMED RAZA KHAN/MINT
sion. Why does the country

belongs to a past era of no targeting mandate. revive once it is clear that a high rate of growth
headed by Nachiket Mor, a
member of RBI’s central board.
Payments banks will be re-
quired to comply with all RBI
guidelines relevant for com-
mercial banks.
Existing banks should be per-
need to open new banks for this
purpose?” said N.K. Thingalaya,
former chairman and managing
director of Syndicate Bank and Priyanka
Gandhi set
an expert on rural banking. In-
dia has 57 grameen banks with
more than 17,000 branches

endless sea.
mitted to create a payments
bank as a subsidiary, the panel
across the country.
RBI governor Raghuram Ra- for a larger

Nevertheless, pain points exist. India’s farm does not mask too much disparity and all mass
has said.
The Mor panel recommenda-
tions for dedicated banks for fi-
nancial inclusion has come at a
time when the central bank is in
the process of giving entry to a
third set of private banks in In-
dia’s `81 trillion banking sector.
role in politics
jan announced the setting up of
the Mor panel in September
2013 to study various aspects of
financial inclusion, including
institutional frameworks and B Y L IZ M ATHEW
regulations and a comprehen- liz.m@livemint.com
sive monitoring framework to ·························
track the progress of the finan- NEW DELHI

An expert panel under former cial inclusion of small business-

P riyanka Gandhi Vadra

growth, for instance, is pegged at 1.8% by the markets can expand fast. All said, while our
RBI governor Bimal Jalan is cur-
rently evaluating the creden-
tials of 25 aspirants, including
the Aditya Birla Group, the Ba-
jaj Group and Anil Ambani’s
Reliance Group. Besides, in a
recent discussion paper on
banking structure reforms in
the country, the central bank
es and low-income households
in India.
Members of the panel in-
clude Prakash Bakshi, former
chairman of National Bank for
Agriculture and Rural Develop-
ment, and Bharat Doshi, chair-
man of Mahindra and Mahin-
dra Financial Services Ltd.
chaired a meeting of top
Congress leaders on Tuesday
to help fine-tune the party’s
campaign strategy for the up-
coming general election, sig-
nalling that she is preparing to
take on a larger role in politics.
Senior leaders who spoke on
condition of anonymity con-

advance estimates, down from 4% in 2022-23. economy’s broad prospects look positive, we
The Mor panel has also pro-
posed the creation of a univer-
sal electronic bank account
(UEBA) for all adult Indian citi-
zens and access to formal credit
for low-income households and
small businesses by January
2016 and major changes in pri-
A N TOI N E D E SA I N T-E XU P É RY
firmed that her role would be
gradually expanded.
Not only does the move con-
solidate the hold of the Gandhi
family on the Congress, it also
highlights the absence of any
rethink regarding leadership
despite the drubbing the party

Clearly, the rural economy is struggling. El need its rewards spread more evenly across
ority sector lending norms,
TURN TO PAGE 24®
NOTE TO READERS
The Media Marketing Initiative on
Page 21 is the equivalent of a
paid­for advertisement, and no
received in elections to state
assemblies in Delhi, Rajasthan
and Madhya Pradesh last year.
It also lost the election in
Chhattisgarh, albeit narrowly.
Although it is highly unlikely
that Gandhi Vadra will contest
the Lok Sabha election, ex-
pected to take place in April

Niño may be an issue, but abandoned farm India so that prosperity is shared better. That
Mint journalists were involved in and May, at least two senior
creating it. Readers would do Congress leaders said she will
well to treat it as an take on a “larger role” in
Mint is also available for R8 with advertisement.
Hindustan Times in Delhi-NCR only TURN TO PAGE 2®

reforms imply there are no structural enablers aim, unfortunately, has proven elusive so far.

MY VIEW | moDerN TImes

Why disgrace is unlikely to erode the allure of Harvard

League, including Harvard University,
MANU JOSEPH whose president Claudine Gay failed to stop
extreme posturing against Israel. Influential
Jews responded by hitting where it hurts
most—donations. They also levelled charges
of “anti-Semitism” against some varsities. In
have some complicated respect for them. born in the right home that equips him with entrance exam. That is not how Harvard
There are some whose disdain is honest, exceptional social contacts. screens. It has opaque processes. But in
who truly do not want to join overrated Everything that seems unfair about the India, rising economic democracy, espe-
clubs, but they are very few. luck of the average person who walks into an cially for necessities like food and schooling,
In 2019, news broke that some parents Ivy League is what makes it alluring. To give created a surge of poor and lower-middle-
had paid millions of dollars in bribes to an impression of fairness, the Ivy League class applicants for engineering, medicine

A
few days ago, the president of Har-
vard University resigned in disgrace.
There is a perception among cultural
observers in America that the episode has
eroded Harvard’s prestige. That cannot be
true. Disgrace does not diminish an exclusive
club. That is not how prestige works. What
ends prestige is, in fact, equality.
a Congressional hearing, when Gay was
asked whether calls for genocide against
Jews on Harvard’s campus violated its rules
on bullying and harassment, she said it
depends on “the context.” As the face of Har-
vard, her testimony was a disaster. But she
somehow kept her job. Oddly, what brought
her stint to an end was the less grave charge
secure Ivy League admissions for their simulates equality by seeking something and civil services. Upper-class students
wards. Even this did not that sounds like equality could not compete anymore. Once, IITs had
diminish the lure of these but is not— ‘diversity.’ This among the finest quizzers, writers and music
big brands. In fact, the A failure of top is generally an expanded bands. Now people have filled those places
scandal put a financial colour palette of cream. who did not have the luxury of pursuing
price on the abstract idea leadership is With some exceptions, it is things that have no point. So the IITs have
of being a legitimate Ivy the privileged among Afri- lost their allure among upper classes, who
League student.
not something can-Americans, Hispanics, find it easier to enter colleges in the West.

is a journalist, novelist, and the

After Hamas slaughtered over a thousand
Israelis in a single day, wounded over 3,400,
creator of the Netflix series,
‘Decoupled’
and raped an unknowable number, there
was widespread denouncement across US
universities. Not of Hamas, but of Israel. In
political turmoil, university students tend to
back the poorer player when their own
stakes in the region are very low. But their
timing was atrocious. Their protests against
Israel began just hours after the massacre.
There was another factor at play. Humanita-
rians have invented sustainable ways to dis-
guise hatred. On American campuses, a dis-
like for Jews, who have an outsized political
influence, can masquerade as love for Pales-
tinians. All this was in full flow in the Ivy
that many years ago, in her scholarly works,
she had lifted whole paragraphs from the
works of other people.
Not just Gay, Harvard too has emerged
poorly from the turmoil. But that does not
affect its allure for most of the social and eco-
nomic elite of America and the rest of the
world. The weak moral intellect of an exclu-
sive club is not something that repels most
aspiring members of the club.
The myth of the Ivy League is that these
colleges seek only exceptional students. The
world has seen many duds from these uni-
versities. Even so, the nature of the world is
to give an exclusive club a long rope. Even
most people who denounce the Ivy League
There was a time when
the best colleges in the
that deters Indians and Chinese who
have the best shot at an Ivy
Why is it that when social equality helps
the less fortunate gain access to a prestigious
world attracted the best
students. In the West, it
people aspiring League. Diversity in a sys-
tem only expands the cul-
club, it ceases to be prestigious? Because
prestige is not about that hollow thing called
was a long time ago, in the to join an tural diversity of its snobs. ‘merit’; it is always about the fellowship of an
golden age of the elites If disgrace and medioc- aristocracy.
when only they had access exclusive club rity cannot affect the lure of This principle is at play not only in eco-
to quality in any walk of a prestigious club, what nomics. Take, for instance, the scaling of
life. Their haunts do not ends prestige? Prestige is Mount Everest. Its prestige has been dimin-
hold the same promise now. But all prestige not eternal. The moment an exclusive club ished by economic democracy that has made
needs is social exclusivity in the guise of is breached by an alarming number of the the feat possible for numerous ordinary peo-
intellectual exclusivity. People grant this poor and lower middle class, the elite stop ple, including the disabled.
halo to a handful of institutes, despite recur- applying, and then a college is suddenly not So what can ruin Harvard is not some dis-
ring evidence that a typical individual who prestigious anymore. This is what happened grace here and there or the mediocrity of its
passes out of these clubs is ordinary or to many elite Indian colleges. They followed alumni. Harvard will be ruined when its
worse, or successful only by the dint of being a socially just system for admissions—an admission process becomes socially just.
LIVEMINT.COM VIEWS MonDay, 8 January 2024
MuMbaI 13

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

The empowerment of women is Harvard is serving as a model

to attack corporate DEI plans
set to strengthen our democracy Diversity, equity and inclusion: The idea goes beyond social justice

The participation of women in electoral exercises has risen impressively and could outstrip that of men within this decade

AP

BETH KOWITT
is a Bloomberg Opinion columnist covering
corporate America.

SOUMYA KANTI GHOSH &

ANURAG CHANDRA
are, respectively, group chief economic advisor
and economist at State Bank of India.

T
he hottest and most closely watched
activist battle isn’t happening inside
corporate America. It’s taking place

W
omen represent half the
world’s population and are
still largely excluded from
political decision making. In
India’s Lok Sabha elections,
the number of women con-
testants seats increased from 3% of all parliamen-
tary candidates in 1957 to 6% in 2009 and further
to 9% in 2019, the last such polls held. The repre-
sentation of women in the Lok Sabha, meanwhile,
has increased from 4.5% in 1957 to 10.9% in 2009
and further to 14.4% in 2019. The numbers make
it clear that political representation in the country
is dominated by men. It will take a lot more effort
to increase the participation of women, which
is a very important aspect of women’s empower-
ment in general.
Let us examine the progress made so far. The
rising participation of women in India’s political
arena is one of the most significant stories of the
past 10 years. It took us 52 years for a 3 percentage
point increase in women contestants in Lok
Sabha elections, but another 3 percentage points
was achieved over the span of just a decade from
the 2009 polls to the 2019 elections, with ballots
cast for the Lower House of Parliament in 2014 as
well. Coupled with this, women voters are now
playing a significantly bigger role in elections
than ever before. There has been a rise in
women’s voter turnout, a phenomenon that is
even more pronounced in state assembly elec-
tions. Records indicate that out of the 23 major
states where assembly elections were held in last
five years (including those recently concluded),
the turnout of women at ballot booths was higher
than that of men in as many as 18 states. Of these
18 states, interestingly, the incumbent govern-
ment was re-elected in 10.
Further, it was observed by comparing Indian
census and Election Commission (EC) data that
there might have been 12.4 million ‘missing
women’ in the electorate (women who are eligible
to vote, i.e., but not registered as voters) at the
time of India’s 2014 Lok Sabha elections in 10
states. This alarming scenario has now been
significantly addressed with the positive efforts
of the Central government and EC, and this will
pay dividends in the coming decades.
This resurgence of stakes being claimed by
women in politics across the country has been
anchored by duly bold and pragmatic policy
measures. Electoral patterns could be showing
the effects of women increasingly finding them-
selves the direct beneficiaries of public policy
schemes. The share of women claimants of bene-
fits has been increasing across government spon-
sored programmes. The share of women stands at
81% in Stand-Up India, a loan scheme; 68% in PM
Mudra loans aimed at small enterprises; 37% in
Fast catch-up
Women voters have been growing fast and could outnumber their male counterparts sooner
than a long male-majority history may suggest.
Incremental voters in Lok Sabha elections (1962-2029P)
Year Incremental Incremental
voter turnout women voter
(overall) turnout
1962-2009 (Avg) 25 12
2014 136 69
2019 60 34
2024 (P) 65 38
2029 (P) 44 30
Note: All figures are in millions of people; P: Projected.
the PM Suraksha Bima Yojana, which provides
low-cost accident insurance cover; and 27% in the
PM Jeevan Jyoti Bima Yojana, which offers
affordable life insurance. The contribution of
unpaid women to the Indian economy is placed at
around ₹22.7 trillion (rural ₹14.7 trillion and
urban ₹8 trillion), which is almost 7.5% of the
country’s gross domestic product (GDP).
Recent state elections saw women-centric
schemes such as Ladli Behna ensure greater
female electoral participation. This scheme is
aimed at a transformational improvement in the
health and nutritional status of women and the
children dependent on them. It nudges women
to become financially more independent and
acquire spending freedom in tune with their pri-
orities. On the basis of our research, around 94%
of the women covered by Ladli Behna are aged 25
and above. Also, at least 1% of the beneficiaries
spend the money in other states, implying that
this scheme transcends state boundaries. The
programme is estimated to have augmented the
consumption expenditure of women covered by
the PM Jan Dhan Yojana by an average of at least
₹9,000 across all consumeristic categories.
Women’s participation in electoral democracy
still has space to increase, though. Consider the
2014 general elections. In those Lok Sabha polls,
the voter turnout increased by a whopping 137
million to 550 million, of whom 260 million were
at Harvard University, where Bill Ackman
has applied the same playbook he has used
in campaigns against the likes of Herbalife
to one of the most elite and storied institu-
tions in higher education.
The Ackman formula goes something
like this: Publicly make your case against
management; invite and welcome contro-
versy to generate more buzz; demand a
leadership overhaul that includes both the
CEO and the board. That this strategy
worked so effectively against Claudine
Gay, who stepped down as Harvard’s presi-
dent last week, is a telling sign that acade-
mia has more parallels with the business
world than many would care to admit. And
Voters in Lok Sabha elections (2009-2047P) if that’s the case, corporate boards nation-
Incremental Year Voter turnout Women Men voter
wide should be on notice that both they
men voter (overall) voter turnout turnout and their CEOs face the same risks.
turnout
190 (45%) 226
I’ll just state it plainly and prepare myself
2009 417
13 for the onslaught of hate mail: At its core,
2014 554 260 294
67 the attack on Claudine Gay is centred on
2019 614 294 320 gender and race. Accusations of plagia-
26 2024 (P) 680 333 346
rism, criticism of her response to the 7
27
2029 (P) 724 363 360 October attack by Hamas on Israel and
14 2047 (P) 920 496 (~55%) 423 Israel’s invasion of Gaza, and her subse-
Source: Election Commission of India, authors' estimates
quent disastrous congressional testimony
all played a role in her ouster, of course. But
SATISH KUMAR/MINT
when it comes down to it, what Ackman
women. The number was 5.5 times the average and his allies are really agitating for is a
voter turnout recorded by the country between reversal of the way diversity, equity and
1962 and 2009. Population increases account for inclusion (DEI) has become a priority at so
a part of that increase. In terms of gender, though, many American institutions.
it was 5.8 times for women and 5.2 times for men. As evidence, consider the letter that
In 2019, the voter turnout further increased to Ackman sent Harvard’s governing board
620 million, with 300 million of them women. on 10 December. In it, he contends that the
Based on the same trend of voting, in 2024, the university’s Office of Equity, Diversity,
total voter turnout in Lok Sabha elections could Inclusion and Belonging is a “major con-
touch 680 million, of whom women voters could tributing source of discriminatory prac-
be about 330 million, or roughly 49%. In 2029, tices” and “is beyond repair and should be
total voter turnout at the current rate of polling shut down.” He also calls for the board to
change could touch 730 million, of which women “launch a detailed investigation into dis-
voters at 370 million could possibly outstrip men criminatory hiring practices at the Univer-
voters at 360 million (more than half) for the first sity” that led to the hiring of Gay, who is the
time in Indian electoral history. first African-American person and second
While electoral trends can be influenced by woman to lead the institution.
many factors, an extrapolation can be useful Effectively, Ackman seems to be arguing
from a gender-split perspective. When India that DEI shouldn’t exist at places like Har-
marks a century of independence in 2047 vard unless people like him get to define
(although the probable election year would be what it means. Since Gay’s resignation,
2049), our total voter turnout could be around Ackman has been saying the quiet part out
920 million: 496 million women and 423 million loud. His timeline on X, the platform for-
men. It is also projected that in 2047, the women’s merly known as Twitter, is replete with
voter turnout would increase to 55%, while men’s reposts of his cronies claiming that “DEI
might fall to 45%. has corrupted the academy,” that “this is
All of this suggests that India is on the cusp of a the beginning of the end for DEI in Amer-
new era of women’s empowerment—political, ica’s institutions,” and “DEI is just another
economic and social. word for racism. Shame on anyone who
These are the authors’ personal views. uses it.” That last one is from Elon Musk.
Professor Claudine Gay had to step down
as president of Harvard AP
Replace ‘academy’ with ‘business’ and
you can see where this is going. Ackman
might have applied the activist playbook to
academia, but he and his supporters now
have a blueprint to work towards ending
DEI efforts in America Inc. This comes
when progress in these areas is already
under threat. Chief diversity officers have
been targeted in the latest round of corpo-
rate layoffs. After finally making progress,
the pace of diversifying corporate boards,
which have been overwhelming Caucasian
and male, is slowing. Big technology com-
panies are cutting their DEI programmes.
Looming over it all is the recent Supreme
Court decision reversing affirmative action
at colleges and universities, which firms
are now closely watching out of fear that it
could open them up to lawsuits over their
own hiring practices. Even companies that
remain committed to DEI don’t want to
talk about it. As Bloomberg News reported,
companies have spent less time discussing
race or LGBTQ issues on earnings calls and
are using language like “belonging” rather
than the loaded three-letter acronym.
Academia should have looked to the
business world to better prepare for the
scrutiny that was bound to follow the influx
of women into top jobs; this summer, for
the first time, women ran six of America’s
eight Ivy League universities. In the corpo-
rate world, female CEOs are more likely to
be the target of activist investors—about a
50% higher likelihood, research shows.
Women leaders face greater scrutiny and
their competence is questioned more than
their male counterparts. All three univer-
sity presidents who testified before the US
Congress last month were women.
One of the big critiques of activist inves-
tors is that they think in the short term;
their goal is to simply make a big return and
get out. Corporate boards need to pause for
a second and remember why they started
taking DEI seriously in the first place.
Mark Cuban gave a thoughtful reminder
on X last night in response to Musk and his
cohort. DEI is about social justice, but it’s
also about attracting and retaining top tal-
ent, setting them up to succeed and having
a workforce and leadership team that
reflects the population their companies
serve. These are far from short-term goals.
In the long run, they’re investments that
will pay off. ©BLOOMBERG

THEIR VIEW

Look beyond monetary measures to track deprivation

A re-plugged conversation, citing recom-
DEEPANSHU MOHAN mendations offered as part of the Atkinson
Commission’s report, How to Better Measure
and Monitor Global Poverty, shaped this dia-
logue. The commission was created with the
aim of advising the World Bank to move
tion, the report suggests a societal head-
count measure of poverty that combines
absolute and relative elements of it, and the
publication of a global profile of the poor,
among various other recommendations.
Luis Felipe at the IEA summit mentioned
ous metrics and proxies to arrive at relative
poverty numbers within these countries
across years.
Multi-dimensional poverty measurement
processes at the World Bank are also using
applications of ‘economic complexity’ litera-
of access inequality while examining issues
of approachability, affordability and appro-
priateness, given the difference made by
uneven access to healthcare, education,
employment, social security, legal recourse,
technological literacy, etc.

T
he International Economic Associa-
tion (IEA) conclave of 2023, a mecca
for economists from all over the globe
who meet once in three years, acknowl-
edged last year as a difficult one, given how
many mainstream assessments of a global
recession and inflation went wrong. A need
was emphasized for new intellectual ideas
away from using a single monetary measure how the World Bank’s measurement and ture to understand complex dimensions of Notwithstanding the intellectual progress
of poverty as a benchmark to monitor it. Paul poverty monitoring work what the poor experience made in ideas incubated as part of the World
Romer, chief economist of the Bank at the drew upon some of these in a given country, with the Bank’s ‘knowledge bank’ role, which has got
time, said that the Bank agreed with the recommendations. This is Quality data Bank having expanded its a renewed impetus over the past couple of
commission’s call for the extreme poverty indeed a welcome change. analytical focus to ascertain decades, what remains an issue with this
line to be called “the International Poverty However, as fellow panel is scarce but degrees of vulnerability Bretton Woods institution is an institutional
Line (IPL)” at $2.15 per day (and expressed in member Charles Kenny among the poor. culture of bureaucratic inertia which delays
local currencies). The commission’s report, pointed out, the absence of
economists Vulnerability is a vital the execution of its focal vision.

is professor of economics at
OP Jindal Global University.
and methodological applications from
beyond traditional economic thought, par-
ticularly in the context of scenarios in devel-
oping nations.
Another intriguing discussion at the IEA
summit pivoted around measuring poverty
to combat it. Economists argued for revising
the global extreme-poverty line for better
policy discourse by going beyond monetary
markers to integrate these with other focal
points of the world’s development agenda
(like sustainable development goals). This
would help low-income countries get a
clearer picture of what they need to do for
addressing extreme deprivation so that
global standards are met.
however, emphasized the need to track non-
monetary deprivations in three domains:
educational outcomes, access to healthcare,
and access to basic services such as water,
sanitation and electricity.
This is consistent with what our Centre
for New Economics Studies did a couple of
years ago by creating an Access (In)Equality
Index to measure and track relative access to
basic entitlements and social or economic
goods and opportunities. This Index was
developed for India. The Atkinson Commis-
sion wants the broad idea applied to a global
‘access’ measurement exercise. Apart from
broadening the conception of poverty to
include non-monetary measures of depriva-
a single key benchmark for
identifying extreme pov-
need a broader dimension from a global
poverty measurement
Without a rounded way to track poverty
worldwide, and with the purely monetary
erty in and across low- or
middle-income nations
conception viewpoint and will help
take the study of non-mon-
approach proving too obtuse to capture
actual levels of deprivation, we are left with
makes policy assessment of poverty to etary aspects of poverty a big void in the global poverty-policy dis-
and evaluation extremely and equity forward. course. Non-monetary dimensions used to
difficult. The World Bank track globally There is also interesting monitor absolute or relative poverty will
has done less in this regard. research emerging now on complement interpretative understandings
Another key issue that the social-psychological drawn from monetary metrics. These can be
got deliberative attention at the summit was profile of the poor, contextually driven by globally benchmarked and then contextual-
the absence of good-quality data from devel- the socio-economic conditions in which ized as per the developmental landscapes of
oping nations, which made it hard to assess communities reside across countries. The low-income-countries. To meet its mandate,
deprivation levels. Economists across panels IEA was created with that very goal, as it is the World Bank needs a new movement to
regretted how countries are losing interest important to understand how even commu- ensure this—and thereby help enable its
in sharing “good quality data” with the nities with financial means could in some member nations to collect, interpret and
World Bank that can enable the use of vari- cases find themselves vulnerable on account publicly share good-quality data.
 ANNUAL

BFS
SUMMIT&
AWARDS
16th Edition

11th January 2024 | Mumbai

Financial Wellness
in a Changing World
As India marches towards its goal of a $5-trillion economy, banks, non-banks, insurance companies, mutual funds and fintech firms will
need to find ways to quench the country's ever-growing thirst for financial support to push growth. How they can do that, affordably, with
maximum reach and efficiency, is the story that will play out at the Mint BFSI Summit & Awards. Come, join us on this journey on 11th Jan.

EMINENT SPEAKERS

Shri Shaktikanta Das Shri Debasish Panda KV Kamath

Governor, Reserve Chairperson, Insurance Chairman, The National
Bank of India Regulatory and Development Bank for Financing
Authority of India Infrastructure and
Development

RK Bansal
Shri Kamlesh Varshney Radhika Gupta Rajiv Sabharwal Bahram Vakil Nikhil Shah
MD & CEO,
Whole Time Member, MD & CEO, MD & CEO, Founding Partner, MD,
Edelweiss ARC
SEBI Edelweiss Mutual Fund Tata Capital AZB & Partners Alvarez & Marsal

Mahesh Balasubramanian Mahavir Chopra Shiv Bhasin Ramesh Iyer Sonali Kulkarni T Adhikari
MD, Founder, Chief Transformation Officer, Vice-Chairman & MD, MD and Lead, Financial Services, MD & CEO,
Kotak Mahindra Life Insurance Beshak.org IndusInd Bank Mahindra Finance Accenture in India LIC Housing Finance

Rajeev Thakkar Richa Choudhary Amit Bivalkar Vishal Jain Nirav Shah Vivek Banka
CIO, Partner - Capital Markets, Founder & Director, CEO, MD, Co-Founder,
PPFAS AMC Trilegal Sapient Finserv Zerodha AMC Equirus Capital Goalteller

Milind Nagnur Ramesh Vipin V Prasun Sikdar Ashwini Kumar Tewari Anuj Kacker
Group President & CTO, Lakshminarayanan MD and Partner, MD & CEO, MD, Co-Founder & CEO,
Kotak Mahindra Bank CIO, Group Head IT, BCG ManipalCigna Health SBI Moneytap
HDFC Bank Insurance

Baldev Prakash Pranav Arora Y S Chakravarti R Subramaniakumar Rishi Gupta Inderjit Camotra
CEO and MD, MD and Lead MD and CEO, MD & CEO, MD & CEO, MD & CEO,
J&K Bank Applied Intelligence, Shriram Finance RBL Bank Fino Payments Bank Unity Small Finance Bank
Accenture in India

Associate Partners Enterprise Knowledge Partners Scan the

Reinvention Partner
QR code
and book
your seat
now