India’s GDP expected to grow 7.2-7.4 percent in 2022-23, says chief economic advisor
The global economic slowdown will be a positive for India, and its GDP is expected to expand at a rate between 7.2 and 7.4 percent in the financial year to March, chief economic adviser V Anantha Nageswaran said in an interview. The Reserve Bank of India has forecast GDP growth of 7.2 percent, and the International Monetary Fund expects it to be 7.4 percent.
Why it’s important: Nageswaran believes the global slowdown is a positive thing for India because it exerts a downward pressure on crude oil and other commodity prices. If India continues doing what it has been in the past six months, it should achieve growth rates forecast by the RBI and the IMF, he said.
Indian equities surge on stable dollar, fall in crude oil prices, overseas inflows
The Indian stock markets surged on Tuesday due to favorable macroeconomic developments, although most global markets remained volatile amid concerns that another aggressive rate hike by the US Fed will increase the risk of global recession. Softer crude oil prices because of growth concerns, a stable dollar index, and continued foreign investment inflows helped the benchmark Sensex gain 0.98 percent. The 50-share Nifty rose 1.1 percent.
Why it’s important: Investor confidence is high in the economy and earnings growth. India’s latest GDP data reflect a resilient economy compared to its peers in the emerging markets space.
KKR, Hero to invest $ 450 million in Hero Future Energies
US private equity firm KKR and the Hero group will invest $ 450 million in Hero Future Energies. The investment will help the Hero group’s renewable energy arm expand capacity and capabilities across technologies such as solar, wind, battery storage and green hydrogen, besides getting into new markets.
Why it’s important: Similar investments by private sector companies will accelerate India’s energy transition and help achieve the government’s target of generating half the country’s power from non-fossil fuel sources by 2030.
Adani pledges entire stake in Ambuja and ACC to finance $ 6.5-billion deal
Gautam Adani has pledged his entire stake in Ambuja Cements and ACC, worth $ 12.5 billion, to foreign banks to fund his family’s $ 6.5-billion acquisition of the cement makers. The family’s 63.15 percent stake in Ambuja Cements and 56.69 percent stake in ACC have been pledged by the Adani group. On September 16, the family completed the acquisition of Ambuja and ACC from Holcim India, making the group India’s second-largest cement maker after Ultratech Cement.
Why it’s important: The new board of Ambuja has approved an infusion of Rs 20,000 crore through a preferential allotment of warrants. These developments place Adani on track to become the largest cement manufacturer in India by 2030.
Google tells loan apps to prominently display link to partner bank
Loan disbursal apps and credit aggregators on the Google Play store in India have to prominently display a link to the partner bank or non-banking finance company. The measure has been introduced as an additional security feature by Google after a series of meetings with the ministry of electronics and IT and the Reserve Bank. Apps that have failed to comply by the September 19 deadline will be deleted from the store.
Why it’s important: The government has been trying to crack down on digital lending apps that defraud people through the lure of instant credit. The live links will allow users to verify the connection with the bank or NBFC.
Banks alert customers over mobile banking malware targeting over 200 apps
Several Indian banks have alerted their customers not to download apps from any source other than official app stores. Banking customers are being targeted by a new type of mobile banking malware campaign using the SOVA Android Trojan. This malware captures the credentials when users log onto their net-banking apps and access bank accounts.
Why it’s important: The new version of SOVA appears to be targeting more than 200 mobile applications, including banking apps and crypto wallets. Users should be cautious when using these apps.
Tata Digital prepares for further funds infusion from parent
The Tata group’s e-commerce firm Tata Digital is increasing its authorized share capital from Rs 15,000 crore to Rs 20,000 crore, as per a regulatory filing last week. Tata Digital has taken board approval in the last one month to receive investment of Rs 3,462 crore over two tranches from Tata Sons. This will take the issued share capital of Tata Digital to Rs 15,934 crore, leaving the company with headroom to obtain additional equity infusion of around Rs 4,000 crore.
Why it’s important: Tata Digital has set the stage for fresh capital infusion by its parent Tata Sons. It has recently made an aggressive play in the e-commerce space by launching the Tata Neu super app.
New jobs in formal sector touch four-month high in July
Demand for workers remained robust in July, with labor ministry data indicating net employment generation in the formal sector touching a four-month high of 1.82 million, a 24.5 percent rise from the preceding year. According to provisional payroll data from Employees’ Provident Fund Organization, of the total members added in July, around 1.06 million new members have come under the EPFO social security cover for the first time.
Why it’s important: The data of new members joining the retirement fund agency has shown a growing trend since April. However, experts said this provides an incomplete picture as there is massive unemployment in India’s dominant informal sector.
Draft telecom bill may propose easier license and M&A regulations
The draft of the new telecom bill may propose to ease merger and acquisition norms and license conditions and review existing penal provisions and ways of allocating backhaul spectrum and certain bands. The draft law is also likely to address policies relevant to the sector’s structure and will aim to boost the ease of doing business.
Why it’s important: The new law must adjust to the present realities. Some of the current telecom rules were issued when the sector had several operators, but the situation has changed significantly since then.
Reserve Bank ready to discuss grievances with digital lending start-ups
The Reserve Bank of India’s doors are open to discuss grievances of digital lending startups feeling squeezed by the new, stricter rules, but the regulatory action was based on a thorough study of their operations, governor Shaktikanta Das has said. “Our intention is not to penalize anyone or to stifle any activity; all I am saying is please follow the traffic rules,” Das said.
Why it’s important: The central bank through its digital lending framework has mandated that money should only flow between banks or registered NBFCs and borrowers. This puts digital lending intermeditaries in a fix.
