1. Prime Minister Narendra Modi backs work from home and flexible hours
Prime Minister Narendra Modi has batted for the work-from-home ecosystem and flexible work hours, calling them the future. “The need of the hour is flexible workplaces, the work-from-home ecosystem, and flexible work hours. We can utilize systems like a flexible workplace as an opportunity to increase women’s labor force participation,” Modi said.
Why it’s important: The Prime Minister’s comments come at a time when Indian corporations are debating the utility of working remotely in a post-pandemic world. Many firms are asking staff to return to office.
2. KKR in talks to invest $ 400 million in Hero Future Energies
KKR and Company is in advanced negotiations to invest around $ 400 million in Hero Group’s renewables energy company Hero Future Energies in what would be the US private equity firm’s single largest investment in the India’s clean energy space so far. KKR will be using its infrastructure fund as the vehicle for this investment. A formal announcement is expected in a few weeks.
Why it’s important: Hero Future Energy, which operates in the wind, grid-connected solar, solar rooftop and energy storage sectors, is expected to use the infusion to reduce debt and grow its business.
3. Mittal family increases stake in Airtel by buying 3.3 percent from Singtel
Bharti Enterprises chairman Sunil Mittal is increasing his shareholding in Bharti Airtel by acquiring a 3.3 percent stake from Singapore-based Singtel for around $ 1.6 billion (Rs 12,895 crore). The purchase will be done through Bharti Telecom within 90 days. The Mittal family’s holding in Bharti Airtel will increase to 25.56 per cent, while Singtel’s stake will reduce to 29.7 percent.
Why it’s important: The share transaction is a move towards equalizing effective stakes by the two partners in India’s second largest telecom operator, Sunil Mittal has said.
4. NDTV resists hostile takeover bid, says Adani needs nod from market regulator
Promoters of New Delhi Television has said in a stock exchange filing that Visvapradhan Commercial, controlled by the Adani group, must first secure approval from the Securities and Exchange Board of India before acquiring shares in NDTV’s promoter entity RRPR Holding, which is owned by founders Radhika and Prannoy Roy.
Why it’s important: The promoters of NDTV are resisting the Adani group’s takeover bid. Adani may on the other hand approach the courts if NDTV does not transfer shares to Visvapradhan.
5. Facial recognition tech proliferates in India in absence of data privacy laws
Facial recognition technology is becoming common in everyday life in India. It is, for instance, deployed at airports to verify travelers and by law enforcement to identify suspects, unfettered by privacy laws to regulate the use of sensitive data. Authorities had deployed 124 facial recognition systems in India as of August, according to data compiled by digital rights advocacy body the Internet Freedom Foundation through right-to-information filings. Until last November, that number was just 75.
Why it’s important: The rapid spread of the new technology has alarmed critics and civil liberty advocates, more so since India lacks a data protection law. The rush to deploy such intrusive technologies without adequate protection is seen as a troubling sign by experts.
6. Hero Electric looks to raise $ 250 million to expand production capacity
Hero Electric Vehicles is in talks with investors, including a few sovereign funds, for its largest fundraising of around $ 250 million to expand its capacity to build electric bikes as competition heats up in India. India’s electric two-wheeler market is becoming crowded, with Hero Electric competing with Ola Electric, Ather Energy, Ampere, TVS Motor, Okinawa Autotech, Euler Motors, Simple Energy and Bajaj Auto, among others.
Why it’s important: Electric two-wheelers are becoming popular in the country as total cost of ownership drops because of government subsidies and lower battery prices. The sector is expected to grow as much as 24 times to touch 17.7 million units by 2030.
7. EPFO adds more than a million new subscribers in June for third straight month
More than a million people have joined the formal workforce for the third straight month in June, according to fresh payroll data released by the Employees’ Provident Fund Organization. New subscribers increased marginally to 1,054,261 in June from 1,007,441 in May and 1,009,689 in April.
Why it’s important: The latest payroll data is a clear indication that the employment scenario in the formal sector has become active as the pandemic recedes. It shows economic activity is regaining momentum in the country.
8. Two clauses in money laundering law needs relook, says Supreme Court
The Supreme Court has issued notices on a petition seeking review of a ruling by the top court last month that upheld the constitutional validity of key provisions of the Prevention of Money Laundering Act. The three-member bench has it was of the view that at least two issues require reconsideration. These include providing a copy of the enforcement case information report to the accused and the reversal of presumption of innocence.
Why it’s important: A person is innocent till proved guilty is the foundation of rule of law, a principle that is not recognized in the money laundering law. The government is expected to oppose a reconsideration.
9. India’s overseas M&As rise for third year in a row
Indian corporations and investors have spent more on overseas mergers and acquisitions by August than in the whole of 2021. The total $ 7.6 billion in outbound M&As represents the third straight year of rising deal value, according to data from Refinitiv which tracks such transactions internationally. Health care was the biggest target for outbound deals.
Why it’s important: The number and value of outbound deals is expected to rise even further because the government earlier this week eased rules for overseas investments. Many local companies will continue to go global.
10. S&P raises India inflation forecast to 6.8 percent for 2022-23
S&P Global Ratings has raised its inflation forecast by 0.50 percentage points to 6.8 percent for 2022-23, citing higher commodity prices, rising interest rates and foreign exchange volatility, although it also said India has ample foreign exchange reserves to withstand pressure on creditworthiness. The rater kept its growth forecast unchanged at 7.3 percent for the financial year to March.
Why it’s important: The high retail inflation in India, partly due to external geopolitical circumstances, will take time to tame. The Reserve Bank governor has said it would decline to 4 percent in two years.