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289

Tuesday, December 5, 2023

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livemint.com sweep in state polls uP1 India renewables push uP1
 TuesDay, 5 December 2023
New Delhi
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 NEW DELHI, MUMBAI, BENGALURU, kOLkATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, pUNE*, LUCkNOw* VOL. 17 NO. 289

Tuesday, December 5, 2023

Think Ahead. Think Growth.

mint primer QUICK EDIT

Poll rout: Is this Market’s

the end of Cong’s march
For markets that tend to look for
welfare politics? policy certainty, Sunday’s elec-
tion results in favour of the
Bharatiya Janata Party (BJP)
BY N. MADHAVAN came as a boost. Reacting to the
While the result of the state assembly elections in Madhya Pradesh, ruling party’s 3:1 sweep of four
Rajasthan and Chhattisgarh has surprised many, it will calm the states, the Sensex jumped
markets. Fears of fiscal profligacy or a rickety coalition government at 2.05% to 68,865 on Monday,
the Centre in 2024 have eased. Mint explains: extending Friday’s gain of
nearly 1% on the back of exit
polls pointing to the BJP faring
well and better-than-expected
GDP growth. Election results
turning out better for the BJP
than what exit polls indicated
strengthens the view that the
Narendra Modi-led party will be
able to brush off anti-incum-
bency in the Lok Sabha polls of
2024 and retain power with
ease, thanks in no small part to
the Prime Minister’s very own
popularity. A third BJP win with
a clear majority in Parliament
BJP celebrations in Madhya Pradesh’s capital Bhopal. (Below) Congress leaders
has acquired the air of a fore-
in Hyderabad after the party won the Telangana state elections. PTI
gone conclusion. As the party
Why were the election What do these results falling short may have meant a
1 results surprising?
Not many expected the Bharatiya
2 portend?
The BJP’s strong show in the
spell of policy uncertainty stem-
ming from coalition tugs and
Janata Party (BJP) to do well in Hindi heartland, just months pulls, the election tallies offered
Madhya Pradesh and Chhattisgarh before the next Lok Sabha scenario planners big relief: A
and pre-poll surveys showed a election, means that Prime power shift now looks like a tail-
close fight in Rajasthan. But the Minister Narendra Modi’s end likelihood at most. With
party managed to fight off four- popularity is intact in the region India’s economy also doing
term anti-incumbency and retain which contributes a large chunk
well, stock markets have much
power comfortably in Madhya of seats to the Lok Sabha. This
Pradesh, and wrest power from the puts the BJP at a clear advantage going in their favour. Of course,
Indian National Congress in both and the opposition in potential pockets of overvaluation exist.
Chhattisgarh and Rajasthan. In disarray. The fear of a badly Yet, barring a big shock, mar-
other words, the BJP swept the cobbled coalition government kets look set for broad gains.
Hindi heartland, leaving the coming to power at the Centre
Congress in shock. Telangana was next year has eased. Also, a BJP
the only consolation for the loss would have given a leg -up
Congress. Strong anti-incumbency to welfare politics. The party
derailed the Bharat Rashtra
Samithi government, but here,
would have resorted to fiscal
profligacy to win back voters. That
MINT METRIC
too, the BJP doubled its vote share. is unlikely to happen now. by Bibek Debroy
PTI

In Australia, a thief’s plan

3 Are the markets ecstatic for
these reasons?
Yes. Stock markets do not like political
Was to steal a doughnut-filled van.
instability. A strong show by the BJP has
10,000 fresh from the bakery,
improved the chances of it coming to Were subject to this rakery.
power at the Centre comfortably next year
and the markets are happy with this
Picking them up, away she ran.
development. Fiscal discipline is critical for
the economy to grow rapidly. The BJP
government’s policy of blending welfare
with development has got the nod. QUOTE OF THE DAY
Extreme heat has to be viewed as
Is there a fear of How will this impact
4 welfare politics?
For all its past reform credentials,
5 the opposition?
The Congress’s success in
one of the most dangerous results
of changing climate, especially in
the Congress has embraced Karnataka in May raised hopes of a India. ...we have to worry about
welfare economics in a big way. It resurgence, and 26 opposition
first tasted success with this parties came together to form the what’s happening on the ground
strategy in Himachal Pradesh, INDIA bloc. But the Congress’s with so many millions of
promising the return of the Old rout in the Hindi heartland has not
Pension Scheme. In Karnataka and only blunted its resurgence. but
people, especially women
Telangana polls, it gave a slew of also weakened its position in the in India.
guarantees that included cash alliance. INDIA bloc leaders have
handouts. However, these attacked the Congress, saying it is
guarantees failed to deliver in guilty of an “arrogant” attitude.
Rajasthan, Madhya Pradesh and The party had ignored the bloc
Chhattisgarh. The BJP’s and fought these assembly HILLARY CLINTON
FORMER US SECRETARY
messaging of welfare blended with elections alone. An INDIA meeting OF STATE
development resonated better on Wednesday is expected to be a
with voters in the Hindi heartland. stormy affair.

MINT PODCASTS

GOOGLE’S SURPRISE REGULATING AI A TIMELESS LEGACY

Google’s Pixel phones aren’t exactly Host Leslie D’Monte and guest Charlie Munger, who passed away at
the highest-selling smartphones in Andrew Ng address pressing ques- the age of 99, left a timeless legacy of
the world. Why, tions on the ever- wisdom on invest-
then, is the Internet evolving realm of ing and leading a
services giant artificial intelli- good life. In this
bringing its manu- gence. Andrew pro- episode, Mint’s
facturing efforts vides insightful per- Sashind Ning-
here? Join Mint’s spectives on the thoukhongjam talks
Shouvik Das as he aftermath of the to Raj Mehta,
decodes this rather surprising deci- Sam Altman controversy at OpenAI, co-fund manager at PPFAS Mutual
sion from the Mountain View, Cali- shedding light on its impact on the Fund, to delve into the enduring les-
fornia-based company. sector and investor sentiment. sons he gained from Munger.

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 PLAIN FACTS

What RBI’s risk weight

rejig can help achieve
BY DEEPA VASUDEVAN

O
n 16 November, the Reserve Bank of India (RBI) raised risk weights on unsecured loans by banks and non-banking finan-
cial companies (NBFCs), and on bank lending to NBFCs. The announcement capped weeks of warnings about the explo-
sive growth in these loans, and marked the first time since 2019 that the RBI has used macroprudential tools.
Macroprudential regulation aims to manage risk in the financial system as a whole, rather than in individual institutions.
It usually takes the form of changes in risk weights, provisions, exposure limits or loan-to-value ratios. An increase in risk weights,
as announced recently, results in higher capital requirements for lenders, which is expected to discourage lending and/or push
up interest rates.
Past experience with such tools has been mixed. During the 2004–2007 credit boom, an increase in risk weights for loans
to commercial real estate curtailed credit to that sector, but higher risk weights on loans to NBFCs did not work. On the other
hand, easier credit norms clearly encourage lending. For example, the lowering of risk weights on personal loans (excluding
credit card receivables) in September 2019 probably contributed to the rapid growth in consumer credit in the following years.
The timing of the policy—coming at the fag end of a monetary tightening cycle—is quite apt. Monetary policy and macropru-
dential policy work best when aligned, and have reinforced each other in past rate cycles. The RBI’s decision to raise risk weights
for specific vulnerable sectors allows it to contain risk without constraining credit to other sectors in the economy.

Macroprudential regulation has had mixed results in controlling risky credit

2004 to 2008: Impact of change in risk weight on real estate
and NBFC loans
Risk weight on credit Year-on-year growth in bank credit
Risk weight on Year-on-year growth in bank credit to to NBFCs** (in %) to NBFCs**(right-hand scale, %)
real estate* loans (in %) real estate* (right-hand scale, %) 140 70
160 160
120 60
140 140
120 120 100 50
100 100 80 40
80
80 60 30
60
60 40 40 20
40 20
20 10
20 0
0 -20 0 0
Mar 2004 Mar 2005 Mar 2006 Mar 2007 Mar 2008 Mar 2004 Mar 2005 Mar 2006 Mar 2007 Mar 2008
*Refers to commercial real estate Data as of the end of March of each year. **Refers to non-deposit-taking systemically important NBFCs (NDNBFC-SI)

Timing of the risk weight hike aligns with the stance of monetary policy
Change in risk weights (in % points) for claims on
Monetary Change in repo rate Individual Consumer Credit card
policy phase (percentage points) housing loans credit NBFCs receivables

Jan 2015-Aug 2017 Easing -1.25 -20* 0 0 0

Jun 2018-Dec 2018 Tightening 0.5 0 0 0 0
Feb 2019-May 2020 Easing -2.5 0 -25** -85 0
Jun 2022-Present Tightening 2.1 0 25*** 25 25
*Range of risk weights changed from 50-75% in Jan 2015 to 35-50% by Aug 2017; the difference in mid-points is shown here. **In Feb 2019, risk weights for all NBFCs
except core investment companies were linked to an external credit rating, ranging from 20% for AAA to 150% for BB and below. 85% is the simple midpoint of this
range. **Includes personal loans but excludes credit card receivables. ***Includes personal loans, but excludes housing, education, vehicle loans and loans secured
by gold. Source: RBI, author's calculations

Household Debt RBI’s squeeze could help put brakes on

rising household indebtedness
ANNUAL BORROWING by households in 2022-23 was 5.8% of Household credit as % of GDP, by source
gross domestic product (GDP), the highest since 2006-07. Not Loans from banks
surprisingly, both highs occurred during periods of surging Loans from other financial institutions
credit, when consumer optimism is high and lenders are less 7
cautious. The 2004-2007 boom was followed by corporate loan
6
defaults; this time round, there are concerns about the ability of
households to service debt. Between June 2018 and March 2023, 5
outstanding household debt grew rapidly, driven mainly by loans 4
from NBFCs (excluding housing finance and insurance).
3
Not all this borrowing was unsecured. But the RBI’s warning
on the rise in small-ticket unsecured personal loans (below 2
₹50,000) and reports of rising delinquencies among small 1
borrowers point to the strain on household finances. About 80%
0
of annual household borrowing is from banks and the balance 2000-01 2022-23
from NBFCs. So, the RBI action may address the household debt Excludes household borrowing from corporates and the government.
Source: RBI
problem to the extent that it limits funding from these sources.

The hike in risk weight aims to nudge

NBFCs to diversify funding sources
Mar 2018 Mar 2022 Mar2023
Banks' share in total
borrowing by NBFCs
Share of loans given to
NBFCs in total bank credit
Ratio of retail lending by
NBFCs to personal loans
given by banks
Gross NPAs (as share of gross advances)
Banks
NBFCs
Bilateral exposure in financial system
Banks
NBFCs
0 10
Data as of the end of March of each year.
NPAs: Non-performing assets
Financial Interconnectedness
All figures in %
BANKS HAVE always been central to our financial system, but
the systemic importance of NBFCs has increased in recent years
as they caught up with banks on various metrics. Meanwhile,
bank exposure to NBFCs has grown: by March 2023, 41.2% of
NBFC borrowings was from banks. RBI research shows that
NBFCs are the largest borrowers in the system, followed by
private sector banks. Mutual funds (MFs) and public sector banks
dominate the lending side. Each entity is exposed to the other
through loans, investments and deposits. Consider a large private
bank that borrows from other banks and MFs, and lends to
NBFCs, which in turn extend consumer credit. Even relatively
small delinquencies in NBFC portfolios would ripple through the
entire system. This risk is shown by the rising share of NBFCs in
20 30 40 50 total bilateral exposures. The recent RBI action aims to change
the nature of interconnectedness by nudging NBFCs towards
Source: RBI
diversifying funding sources and strengthening asset quality.

Capital and Risk Most banks have adequate capital to

meet the new prudential norms
NBFCS, FINTECH companies and small finance banks are Unsecured advances/total advances, in %
50
relatively more exposed to unsecured loans, but some large RBL Bank
45
banks have also built up substantial portfolios. However, these IDFC First
40
banks are not likely to be impacted by the new risk weights,
35
because they are well-capitalized. There are a few outliers, such 30 HDFC Bank
as RBL Bank, with a comparatively larger share of unsecured SBI ICICI Bank
25
advances and lower capital ratios. Axis Bank Kotak Mahindra Bank
20
As of end-March 2022, unsecured loans accounted for more 15
than 20% of total advances in the top five banks. The proportion 10
has probably increased since then, given the aggressive ramp-up 5
of credit card lending by some private banks. Even so, adequate 0
10 15 20 25 30
capital buffers ensure that none of the large banks are at risk: at Capital to risk-weighted assets ratio (CRAR), in %
worst, their cost of capital may go up slightly. If they end up Data as of 31 March 2022. Foreign banks and small finance banks are
pulling back a bit on unsecured lending, it will fulfil the RBI’s excluded. RBI requires a minimum CRAR of 9% on core capital and
objective of pruning risk without cutting off credit. 2.5% of capital conservation buffer for scheduled commercial banks.
Source: RBI
The author is an independent writer in economics and finance.
PARAS JAIN/MINT

PEANUTS by Charles M. Schulz

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 NEW DELhI, MUMBAI, BENGALURU, kOLkATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCkNOW* VOL. 17 NO. 289 Rs. 10.00 . Price with Hindustan Times Rs. 15.50 18 PAGES

Tuesday, December 5, 2023

The big threat to India’s Cricket jersey a masterstroke,

livemint.com demographic dividend uP10 says Adidas India’s Singh uP7

SENSEX 68,865.12 1,383.94 NIFTY 20,686.80 418.90 DOLLAR ₹83.36 ₹0.07 EURO ₹90.66 ₹0.13 OIL $80.03 $0.47 GOLD ₹63,153 ₹607

Bulls celebrate saffron sweep

DON’T MISS
REUTERS

Investors cheer policy stability, clearer view of BJP retaining power in general elections after victory in heartland states
Ram Sahgal & Mayur Bhalerao softening yields globally.
MUMBAI POST-POLL gAINS “Looks like you have an early Santa
JSW Infra buys majority stake in
rally underway, with the sheer sweep of

I
nvestors turned richer by ₹5.8 trillion
overnight as Indian benchmark indi-
ces rose the most in 14 months on
Monday, following the Bharatiya Jan-
ata Party’s (BJP) thumping victory in
three heartland states. According to mar-
ket veterans, the rally underscores inves-
tor belief in the ‘Modi premium’ that
could see the government win comforta-
bly at next year’s Lok Sabha election.
However, in the first sign of caution in
a blistering rally, retail and wealthy
investors initiated cumulative short
positions of 11,738 contracts on Nifty and
Bank Nifty futures on Monday, after
being net buyers for over two months.
To be sure, foreign portfolio investors
(FPIs) cut their cumulative net shorts
sharply to 25,358 contracts from 47,161
contracts on Friday.
Driven by institutional purchases and
index futures’ short-covering by FPIs,
the Nifty and the Sensex rose over 2%
each, the most in a single session since 4
October 2022. The benchmarks vaulted
to their highest-ever levels of 20,702.65
and 68,918.22 during the day, before
closing at all-time highs of 20,686.80
and 68,865.12, gaining 418.90 points and
1,383.93 points, respectively.
In contrast, when the BJP lost power
in the three states of Rajasthan, Madhya
Pradesh and Chhattisgarh five years ago,
the markets had closed flat.
Domestic institutional investors (DIIs)
net purchased a provisional ₹4,797.15
crore of shares while FPIs bought shares
worth ₹2,073.21 crore. The sectoral Bank
Indian benchmark indices rose the most in 14 months following the BJP’s emphatic victory in the STREET SIGNS the Narendra Modi-led BJP in the three Raigad port from SP group firm
three states of Rajasthan, Madhya Pradesh and Chhattisgarh. states calming market fears of fiscal loos-
RETAIL investors, HNIs JSW Infrastructure on Monday acquired
initiate short positions of ening ahead of the national elections,” majority stake in PNP Maritime Services
Lok Sabha elections (% change) Nifty Sensex
11,738 contracts on Nifty Holland said. “The spectacular GDP through its subsidiary, JSW Dharamtar Port.
Day’s high 6.18 6.15 The firm entered into a share-purchase
16 May 2014 and Bank Nifty futures growth of the September quarter and
Change at close 1.12 0.90 softening US yields added more legs to agreement with SP Port Maintenance,to
Lok Sabha elections (% change) Nifty 50 FPIS have cut cumulative the rally.” acquire its holdings in the strategic port. >P6
Day’s high 2.58 2.59 net shorts sharply to The BSE Midcap and Smallcap indices
23 May 2019 25,358 contracts from also hit their fresh highs of 35,124.23 and
Change at close -0.69 -0.76
47,161 contracts on Friday 41,221.91 respectively. Eventually, the SAT quashes Sebi’s 2021 order
Assembly elections (% change) against Mukesh Ambani, 2 SEZs
BSE Midcap index closed 1.19% higher at
Day’s high 2.15 2.13 MONDAY’S rally driven by 34,999.76 while the Smallcap index
4 Dec 2023 The Securities Appellate Tribunal (SAT) has
Change at close 2.07 2.05 20,686.8 institutional buying, index ended 1.20% higher at 41,051.01. quashed Sebi’s 2021 order against Mukesh
Source: Bloomberg 3.30pm futures short-covering by However, despite Monday’s euphoria, Ambani, Navi Mumbai Special Economic
foreign portfolio investors retail and high networth individuals Zone, and Mumbai SEZ in a case related to
(HNIs) and proprietary traders began alleged manipulative trades in shares of
BANk Nifty rose 3.6%, erstwhile Reliance Petroleum Ltd. >P6
highest in over four years,
hedging their stock portfolios by turning
led by ICICI Bank, which
short on index futures. A hedge involves
gained 4.7%
a market participant taking opposite
positions on the same asset in two differ- Warburg Pincus makes Vishal
Political certainty is important for EMs ent market segments.
STRONg second quarter Mahadevia its new Asia head
as that gives long-term policy stability which GDP growth numbers, The retail and HNI category turned net
is vital for long-term market returns. Warburg Pincus said its long standing head
softening US yields may short by a cumulative 11,738 contracts on
20,547.9 the National Stock Exchange. Rohit Sriv-
of India, Vishal Mahadevia, will assume a
9.15am Madhusudan Kela, founder, MK Ventures keep the rally going newly created position as head of Asia
astava, founder, IndiaCharts, interpreted private equity, as part of its effort to
SARVESH KUMAR SHARMA/MINT
this as an “early sign of caution” after a promote next-generation leadership
Nifty index rose a whopping 3.6%, its tion of retail investors through mutual ber quarter, led by 13.9% growth in manu- 23% Nifty rally from the low of 16,828 on within the firm. >P3
highest in over four years, to 46,431.40, funds and directly.” facturing, which Balasubramanian views 20 March to a 4 December peak. “This
led by ICICI Bank Ltd, which gained 4.7%. “The faith of the retail investor is as a significant development in India’s means they want to hedge against any
“Investors perceive that there is a based on delivery of sustainable growth, growth story led by the services sector. possible volatility in markets after a Allen Career Institute acquires
Modi premium behind a structurally dif- as seen in the second quarter GDP (gross “Voters and investors perceive these strong rally since March,” he said. Tencent-backed Doubtnut
ferent bull market that they’ve seen domestic product) data, which shows the changes and are giving them more heft Avendus’s Holland expects large-cap
Bodhi Tree Systems-backed Allen Career
before,” said A. Balasubramanian, man- growing share of the manufacturing sec- than mere freebies being doled out by banks to drive the rally, especially after Institute has acquired Tencent-backed
aging director and CEO, Aditya Birla Sun tor led by the government’s infrastruc- political parties,” he added. last month’s Reserve Bank of India circu- doubt-solving platform Doubtnut in its
Life Asset Management Co. Ltd. “It’s a ture spending, which is also leading to Andrew Holland, CEO, Avendus lar, which increased the risk weights on first acquisition of an edtech company.
market in which domestic investors can private capex,” Balasubramanian added. Alternate Capital Strategies, said Mon- unsecured consumer loans to 125% from The financial terms of the deal were
act as an effective counterweight to FPIs, The Indian economy expanded by a day’s rally reflected a Modi premium, 100% earlier. not disclosed. >P3
thanks to a spectacular rise in participa- faster-than-expected 7.6% in the Septem- outlier domestic economic growth and ram.sahgal@livemint.com

Lybrate founders move US court Cotton pilot scheme a hit,

for arbitration against Pristyn govt to extend it by a year
Ranjani Raghavan the remaining $6.5 million of Dhirendra Kumar ecosystem, and provide a boost
ranjani.raghavan@livemint.com non-contingent consideration dhirendra.kumar@livemint.com to the country’s standing in the
MUMBAI to be split over the following NEW DELHI global cotton export markets,
two years,” the filing said. where it has increasingly faced

T A
he founders of Lybrate The founders said they were pilot project launched challenges from other cotton-
Inc. have moved a Dela- scheduled to receive a com- this April to boost cot- exporting countries such as
ware court to start arbi- bined $3 million in June under ton production in 10 Bangladesh and Vietnam.
tration proceedings against their original agreement, but states is likely to be extended India’s exports of cotton, fab-
In 2023, the EIB stated its interest in supporting India’s National healthcare startup Pristyn this payment was not made. for a year beyond March 2024, ric, yarn and handloom prod-
Green Hydrogen Mission with a facility of up to €1 billion. Care, which has failed to pay The balance payment of $3.5 two officials aware of the devel- ucts rose 5.7% during April-Oc-
them in full for acquiring million is due in 2024, accord- opment said. Cotton produc- tober 2023. This period saw

EIB eyes green H2 their company last year. The

founders also plan to seek
over $13 million in damages in
Pristyn Care acquired Lybrate
ing to the original agreement.
In addition, around $4 million
was promised based on mile-
tion in these states is projected
to grow at 20-25%, a substantial
increase at a time when all-In- The special project to boost
exports worth $6,877 million
compared to $6,509.51 million
in the corresponding period of

to add to its India

arbitration, a court filing last year to enter the primary stone achievements during dia cotton production has been cotton production was started last year, according to com-
showed. care segment. the third tranche. on a downhill slide. Adoption of in April. HINDUSTAN TIMES merce ministry data released
Tiger Global-backed Pris- Pristyn Care and Lybrate best agronomy practices, qual- on 15 November. This Septem-
tyn Care, which is operated by Associates. Both founders founders Arora and Narang ity seeds and high-density Agricultural Research (ICAR). ber, textile production grew

renewables push GHV Advanced Care Pvt. Ltd

Shashank Mattoo & 1993. The bank’s investments
Rituraj Baruah in the country have focused on
public infrastructure, green
NEW DELHI energy and on providing sup-
port to Indian private sector
and runs a network of hospi-
tals and clinics through part-
ners, had acquired Delaware-
incorporated doctor consulta-
tion platform Lybrate to enter
the primary care segment. The
total deal size was said to be
joined Pristyn Care following
the acquisition.
In their court petition,
Lybrate founders Saurabh
Arora and Rahul Narang said
they received only $1.5 million
out of the $8 million payment
in the first tranche, while the
did not respond to requests for
comments on Monday.
Pristyn Care suspended
Lybrate’s founders in July
after they served a default
notice, Mint reported on 20
July. While the founders have
asked for a Delaware-based
planting systems have contrib-
uted to this growth, the officials
said on condition of anonymity.
“The special project on cot-
ton to enhance production
during 2023-24 was started in
April 2023 till March 2024,
engaging 15,000 farmers in 10
Queries sent to the com-
merce ministry remained
unanswered till press time.
The 10 cotton-growing
states where the pilot is ongo-
ing are Uttar Pradesh, Haryana,
Punjab, Rajasthan, Madhya
Pradesh, Gujarat, Maharashtra,
3.7% year-on-year (y-o-y), as
per Index of Industrial Produc-
tion (IIP) data released on 10
November 2023. In August,
textile production grew at 1.6%.
Foreseeing a rise in textiles
exports, Kulin Lalbhai, chair-
man, CII National Committee

E
ven as solar and wind
continue to be focus
areas, the European
Investment Bank (EIB) is now
keen to jump into green
hydrogen in the country, but
no concrete proposal has been
tabled yet by Indian compa-
nies, a top executive at the
development bank said.
“We’re actively watching
this race, because, as a finan-
cier, we want to have our flag
there and come in when it’s
ready, either on the public sec-
tor side or on the private sector
firms. $20-30 million, including pay- investors were paid in full. arbitrator, Pristyn Care has states. The final outcome of Tamil Nadu, Andhra Pradesh on Textiles and Apparel, said
The EU, Fenton said, is ments to Lybrate’s investors “GHV received 85% of sought to appoint a London- data would be analysed in Jan- and Karnataka. The estimated that the past 12 months have
working to lend a helping such as Nexus Venture Part- plaintiffs’ Lybrate stock but based arbitrator, the filings uary,” the second official said, rise in production from the been a little tough on export
hand to the green hydrogen ners, Tiger Global Manage- only provided $1.5 million in adding that the data will be pilots could help India
ecosystem and the EIB is hop- ment and Ratan Tata’s RNT total fixed consideration, with TURN TO PAGE 4 evaluated by Indian Council of strengthen its cotton exports TURN TO PAGE 6
ing to bring in more technical
resources to India.
Other renewable technolo-
gies have also been focus areas
for the EIB’s green energy
investments. “Of what we’ve
Jio Studios eyes content buyers as JioCinema turns choosy
done so far, it’s about 50:50
towards solar and wind, and a Lata Jha said on condition of anonym- pande said. She added that to Shankar remained unan-
tiny bit of hydro,” Fenton said, lata.j@htlive.com ity that Uday Shankar, the even in the past, its film pro- swered.
adding that the EIB is also NEW DELHI influential top investor of Jio- ductions like Stree have This comes at a time
keeping its eyes on offshore Cinema, has refused to screen streamed on other platforms streaming platforms in gen-

side. We have a team that
works with larger corporates,
and they’re talking to a few,”
Nina Fenton, head of regional
representation, South Asia.
EIB, said in an interview. She
added that the EIB is in touch
with corporates through the
Indian Hydrogen Alliance, of
which the bank is a part.
Earlier in 2023, the bank
had stated its interest in sup-
porting India’s National Green
Hydrogen Mission with a facil-
ity of up to €1 billion.
The EIB is the lending arm
of the European Union (EU),
with around €5 billion in
investments in India since
R
wind, and “we will be very
happy if a financing proposal
comes to it.”
The green energy space in
India is getting increasing
investor and financier focus as
the government plans to ramp
up renewable energy installa-
tion and achieve 500 gigawatt
(GW) of installed renewable
energy in the country by 2030,
and net-zero carbon emissions
by 2070. These objectives
have resulted in high potential
for investments in the green
energy space.
The International Energy
TURN TO PAGE 4
eliance Industries Ltd-
owned production
house Jio Studios is
looking beyond sister con-
cern JioCinema to stream its
movies and web shows after
the latter declined much of its
content, two people aware of
the matter said. Jio Studios
has also stopped green-light-
ing new projects in the back-
drop of many completed pro-
jects remaining unsold, the
people cited above said on
condition of anonymity.
While Jio Studios claims
that streaming all titles on Jio-
Cinema was never part of the
plan, the people cited above
all titles commissioned by Jio
Studios, prompting it to look
for outside buyers.
In April 2023, Bodhi Tree
Systems, a joint venture
between Shankar and James
Murdoch, acquired a 13%
stake in Reliance-owned Via-
com18, which houses Jio Cin-
ema. As part of the deal,
Shankar, who earlier led Dis-
ney’s Asia-Pacific operations,
joined the board of Viacom18.
According to the people cited
above, Shankar has vetoed
streaming many of Jio Stu-
dios’ titles since then.
However, all of Jio Studios
productions were not
Jyoti Deshpande, president of RIL’s media and content business.
expected to be streamed on
JioCinema, said Jyoti Desh-
pande, president of Reliance’s
media and content business.
“While the platform (JioCin-
ema) may be our preferred
partner, it isn’t reasonable for
any one service to consume so
much content. If there is a
strategy fit with JioCinema,
the title will go there; else, we
will look at others,” Desh-
and satellite rights have gone
to other companies as well.
Moreover, JioCinema is
focused on sports and reality
content while following an ad
monetization model, which
means it cannot be a home for
big movies and premium
series.
In April this year, Jio Stu-
dios said it will produce 100
movies and web series, signal-
ling a full-fledged foray into
content creation. However, as
older projects remain unsold,
fewer new ones are getting
the go-ahead.
JioCinema declined to
comment while queries sent
eral are cutting back on con-
tent acquisition, limiting
options for producers. Many
streaming platforms are cut-
ting spends and targeting
more cost-effective shows to
reach audiences in tier-II and
III cities across the country.
Many projects are on hold
given the hurdles in the Zee-
Sony merger that has a 21
December deadline, and
uncertainties around the sale
of Disney’s India assets.
“It’s an open secret in the
industry at the moment. The
power dynamics have
TURN TO PAGE 6

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 02 TuesDay, 5 December 2023
New Delhi ECONOMY & POLICY LIVEMINT.COM

m MINT SHORTS
India plans to tweak iron ore
Railways looks for signalling Bill passed
to amend
domestic sale price formula
New Delhi: India plans to tweak the formula to fix the average
domestic sale price of iron ore, a key steelmaking raw material,
according to a government note reviewed by Reuters and a source.
recast post Balasore tragedy Raj-era post
office law
After the ministry of mines pointed out that some iron ore miners
tried to keep the average sale price artificially low to pay lower roy- Rhik Kundu
alties to the government, the central government formed a panel rhik.kundu@livemint.com
to work out an “alternative mechanism”. REUTERS Computerized system, expected in 3 years, will replace current electro-mechanical network NEW DELHI

T
he Rajya Sabha on Mon-
Avg monthly GST mop-up at Subhash Narayan Relay, on the other hand, is a device day passed the Post
subhash.narayan@livemint.com which controls the electrical circuit Office Bill 2023, which
₹1.66 trillion so far this fiscal: FM NEW DELHI which operates the EI. A solid-state relay will repeal the 125-year-old
PTI
is a non-contact switch, without the risk Indian Post Office Act,1898, to

New Delhi: The goods and services tax collection has been
showing an upward trend on an annual basis since its rollout
in July 2017, and the average gross monthly mop-up in the
current fiscal so far is ₹1.66 trillion, finance minister Nirmala
Sitharaman said on Monday. In a written reply in the Lok
Sabha, she said GST collection crossed the ₹1.50-trillion
mark in every month of the current fiscal and touched a
record high of ₹1.87 trillion in April 2023.
Centre plans to introduce cashless
treatment of accident victims
New Delhi: The ministry of road transport and highways plans to
roll out cashless medical treatment for road accident victims across
the country in three to four months, a top government official said
on Monday. Road transport and highways secretary Anurag Jain,
while inaugurating an event organized by the Institute of Road
Traffic Education, noted that India has the highest number of road
accident deaths in the world.
Govt open to policy on transfer
of judges, says law minister
T
he railways plans to introduce of sparking and wiring interference as revive postal institutions.
new electronic routing and there are no mechanical elements. Separately, the lower house,
signalling systems through- The system change has been trig- Lok Sabha, passed the Advo-
out its extensive network, gered by the collision in Balasore, Odi- cates (Amendment) Bill, 2023,
switching to an automated sha, where initial investigations by the on the first day of the winter
regime aimed at eliminating human commissioner of railway security (CRS) session. This bill, which seeks
error in the aftermath of June’s three- pointed to human error and faulty sig- to amend the Advocates Act,
train crash at Balasore. nalling for the tragedy that claimed 294 1961 was cleared by the upper
According to railway minister Ash- lives. house in August.
wini Vaishnaw, the national transporter “Though the system being used by The bills are part of the Cen-
has already started the first few pilots on Railways now is a fool-proof and fail- tre’s plan to repeal “all obso-
what are called solid state electronic proof system that is being used by rail- lete laws or pre-independence
route relay devices and signals and pro- way networks across the globe, the pro- Acts”.
pose to make this the standard in 10-11 posed changes would further eliminate The Post Office Bill will
months. The site of the Balasore train mishap where three trains had collided, killing 294 the need for frequent wiring changes in allow central government offi-
“This technology would further people. AP the switches present on route relay pan- cials to intercept, open or
reduce chances of accidents triggered els that operate the electronic interlock- detain any item and deliver
by human error and switching and sig- Railways wants to this switch to be and track circuits that work together to ing and track points forming part of the them to the customs authority.
nalling failures. So, we have already introduced on mission mode so that prevent conflicting movements and col- signalling network,” said a rail ministry “In a society which is as
started working on it and the results are almost the entire network along 8,000 lisions. official on condition of anonymity. complex and diverse, and
PTI coming out very well,” Vaishnaw told stations have electronic interlocking Electronic interlocking (EI) employs The change will be monumental, times which are as difficult as
Mint. signals with solid state relays. computer-based systems and electronic given that the new system will replace all they are, it is very important
“The switch to new standards is the 7-800,000 signalling points that interception is done. This
going to be part of the upgradation CHANGING TRACKS using electro-mechanical systems kind of a provision is kept for
work carried out by the railways. In along the railways’ 70,000 km net- national security,” said Ash-
any case, we must continuously THE first few pilots INDIAN Railways PLAN to equip ELECTRONIC work in the country. wini Vaishnaw, minister of
upgrade and replace the relays on solid-state
electronic route
currently uses an
electro-mechanical
almost entire interlocking (EI)
network along 8,000 employs
The changeover will need to be communications, electronics
when they complete their life. That relay devices and network to manage stations with computer-based tested and re-tested and would and information technology,
part of time, we can replace them signals have started its signalling systems electronic signals systems require fresh standard operating during the discussions on the
with direct drives.” procedures to maintain smooth and bill in the Rajya Sabha.
Indian Railways currently uses safe movement of trains across the The Central Universities
electro-mechanical network to manage Interlocking systems refer to a crucial equipment to control signals, switches country. Questions to the rail remained Amendment Bill 2023, which
PTI its signalling systems. The switch from safety mechanism used to control train and level-crossing gates. It ensures all unanswered at press time, but officials will amend the Central Uni-
this to solid state electronic route relay movements and ensure safe operations these elements are synchronized to said tenders for signalling overhaul versities Act of 2009, was also
devices that control signals is largely at railway stations and junctions. It is a facilitate uninterrupted train move- would be floated soon after the 2024 introduced in the Lok Sabha
expected to be covered in three years. complex network of signals, switches, ment. general elections. on Monday.
PTI

Number of active cos States’ loan scheme may get extension

crosses 1.6 million
Gireesh Chandra Prasad
Rajeev Jayaswal
letters@hindustantimes.com
announcement will take place
in the full budget for FY25
NEW DELHI (expected around July 2024)
Of the 15,603 companies after the new government at

T
gireesh.p@livemint.com incorporated in October, com- he central government the Centre is formed after the
NEW DELHI munity, personal and social may extend its ₹1.3 tril- general elections, the officials
services firms accounted for a lion interest-free loan said.

T
he number of active little more than a fourth while for 50 years to states to boost According to official data
New Delhi: Law minister Arjun Ram Meghwal told the Lok companies in India trading and business services capital expenditure and expe- released on Thursday, India’s
Sabha on Monday that the government is open to a policy on crossed 1.62 million at accounted for 16%. dite policy reforms in the com- GDP grew by 7.6% in the sec-
the transfer of high court judges. He made these remarks the end of October, including Together, the services sec- ing Budget with growing ond quarter of FY24, signifi-
while replying to a debate on the Advocates (Amendment) 96,800 formed since the tor accounted for 42% of all demand for the fund as 74% of cantly higher than projections
Bill, which was cleared by the Lok Sabha on Monday. The bill beginning of this financial new businesses incorporated the total corpus for 2023-24 is made by a Bloomberg forecast
has already been cleared by the Rajya Sabha. PTI year, driven by a surge in servi- in the month. This is followed already sanctioned in just of economists (6.8%) and the
ces sector businesses, data by manufacturing which seven months of the current Reserve Bank of India’s (RBI)
from the ministry of corporate accounted for 14%. financial year, two officials Monetary Policy Committee
445,256 FIRs on crimes against affairs showed. Separately, data released by aware of the development said Of the total budgeted corpus of ₹1.3 tn in 2023-24, the Union govt (6.5%) in October. With an
At the end of the statistics min- on Monday. has already sanctioned over ₹96,200 crore to states. overall 7.7% GDP growth in the
women in 2022 in India: NCRB March 2023, the Together, the istry last month The scheme—Special
MINT
first half of 2023-24, India
New Delhi: A total of 445,256 cases of crimes against women were country had 1.53 services sector showed that some Assistance to States for Capital ₹96,200 crore to states under helped in making India remains the world’s fastest
registered across India in 2022—almost 51 FIRs every hour—up million compa- accounted for service sectors Investment 2023-24—ends on the scheme in the first seven world’s fastest growing major growing major economy.
from 428,278 in 2021 and 371,503 in 2020, according to the latest nies. 42% of all new like utilities and 31 March and may be extended months (April-October) of economy. The Modi govern- Experts said government
NCRB data. The rate of crime against women per 100,000 popula- In the April to construction saw for another financial year. FY24, one of them said. ment’s capex push will, there- expenditure must continue to
businesses
tion stood at 66.4 while the charge sheeting in such cases was October period double-digit The scheme has been highly “Over 60% of the approved fore, continue. While the Cen- maintain the growth momen-
logged at 75.8, showed the data in the annual crime report of the last year, close to incorporated in growth in the successful in creating capital amount has tre is committed tum as private investments are
National Crime Records Bureau (NCRB). PTI 54,000 compa- October September quar- investment projects in states already been dis- Special to raising its still to pick up pace. Com-
nies were ter.Maharashtra covering health, education, bursed to respec- Assistance to capex plan even menting on GDP data, a
formed. reported the larg- irrigation, water supply, tive states, based States for Capital in 2024-25, it research report of Nomura
India-US relations proofed against The improvement in com- est number of new company power, roads, and railways. on progress of Investment 2023- needs to incentiv- said: “Overall, the government
pany registrations is in spite of registrations in October with a Besides, it also helped in pro- various projects. ise states as pro- appears to be in the driver’s
political volatility, says Jaishankar the revamp of the MCA21 por- 17% share, followed by Uttar pelling India’s economic It is expected that
24 scheme ends
jects are imple- seat – both for consumption
New Delhi: India-US ties are proofed against political checks, tal this year, which had tempo- Pradesh with 11% and Delhi growth capital expenditure the entire ₹1.3 on 31 Mar and mented there,” and investment – while private
declared external affairs minister S. Jaishankar while speaking at rarily caused technical with 9%.Data also showed that has a higher multiplier effect, trillion will be may be extended the second offi- consumption and private
the Carnegie Global Technology Summit on Monday. “The inter- glitches. the number of women taken they said requesting anonym- utilized by the cial said. capex remain weak, in our
esting thing about the US is that you’ve had 5 completely different The ministry’s latest for directorships in companies ity. end of current While the view.”
presidents—think Clinton, Bush, Obama, Trump and Biden. Now, monthly update of the corpo- was at a low 25% of all director Of the total budgeted cor- financial year,” he said. intent of the government is The scheme offers 50-year
if a relationship can actually prosper with five very different Presi- rate sector showed that the identification numbers issued pus of ₹1.3 trillion in 2023-24, “Public investments on likely to be announced in the interest-free loans to states in
dents, I would say to you that the data clearly indicates a certain sta- services sector dominates new in October for people in the the Union government has infrastructure projects by both interim budget expected on addition to their normal
bility,” Jaishankar said. SHASHANK MATTOO registrations. age group of 18-30 years. already sanctioned over the Centre and the states have February 1, 2024, a detailed annual borrowing limits.

France keen to lend technical expertise for South Asian power trade CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Shashank Mattoo & Expertise France, the country’s So, trying to share that experi- Ajay Tewari, additional sec- reducing prices, ensuring sta- ings for importers and reve- suggestions or complaints
Rituraj Baruah international technical cooper- ence is where we would be at retary, ministry of power, said bility of supply and expanding nues for exporters,” writes about errors.
ation agency that works with the moment,” she added. last year, “India today has a very regional connectivity. Since Guangzhe Chen, Vice Presi-
Readers can alert the
NEW DELHI partner countries, including New Delhi has taken several robust power grid running 2015, cross-border power dent for Infrastructure at the
newsroom to any errors in the
India, to design projects that steps to build a South Asian from North to South and East to transmission has increased World Bank. paper by emailing us, with your

F
rance is keen to extend
technical expertise for
developing cross-border
power trade in South Asia as
India looks to create a robust
power market with Bangla-
desh, Nepal and Bhutan.
Lise Breuil, India country
director for AFD, France’s offi-
cial development agency, told
Mint that France is keen to
share its expertise gained from
the creation of the European
cross-border power market.
She cited the work done by
advance sustainable develop- energy market. An India-Ne- West of the coun- from 2.1 GW to Further, under the ‘One Sun full name and address to
ment goals. pal-Bangladesh power trade try. In the future New Delhi 6.4 GW after pro- One World One Grid’ scheme feedback@livemint.com.
“Regarding energy, this con- agreement is in its final stages we would like to has taken jects linked India of the International Solar Alli-
nection that is going to the and an India Energy Exchange see the grid con- with Bhutan, ance (ISA) India has been plan- It is our policy to promptly
several steps respond to all complaints.
Northeast and towards Nepal has already been set up to facili- nected to neigh- to build Nepal and Bang- ning to set up connections with Readers dissatisfied with the
and Bhutan is maybe where we tate the energy trade with bouring countries ladesh. national grids of countries in
a South response or concerned about
would like to work with Expert- India’s neighbours. including Myan- “A more deeply West Asia and South East Asia. Mint’s journalistic integrity may
ise France on the soft side to see An India-Sri Lanka power mar, Sri Lanka, Asian energy integrated power India has signed an MoU with write directly to the editor by
how we can bring expertise on Lise Breuil, India country line project that hopes to link and then expand market system in South Saudi Arabia for power grid sending an email to
how an international electricity director, AFD. the power grids of the two that connection to Asia positions interconnection and green asktheeditor@livemint.com
market works, which is gener- countries is in advanced stages South-east Asian electricity trade as hydrogen supply. Similar Mint’s journalistic Code of
ally complicated,” Breuil told building, climate change and of negotiation. A detailed countries, to emerge as a uni- a new driver of economic bene- MoUs for power connectivity Conduct that governs our
Mint. healthcare. “Before building project report has been com- fied market.” fits. It could result in greater are being planned with the newsroom is available at
Its focus areas include demo- the European market of elec- pleted and is being reviewed A South Asian power market investments in renewables, UAE and Singapore. www.livemint.com
cratic strengthening, peace- tricity, it took years and years. prior to formal approval. is likely to benefit countries by more jobs, electricity trade sav- shashank.mattoo@livemint.com

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First published in February 2007 to serve as an unbiased and clear-minded chronicler of the Indian Dream.
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 LIVEMINT.COM DEALS, TECH & STARTUPS TuesDay, 5 December 2023
New Delhi 03

m MINT SHORTS
Indian Angel Network marks the
‘We understand, listen Warburg makes
Vishal Mahadevia
first close of its second fund
Bengaluru: Early-stage investment firm Indian Angel Network
(IAN), said on Monday that it has marked the first close of its second
to and watch our clients’ the new Asia head
venture capital fund, a year after the firm hit the road to raise com-
mitments. IAN’s second fund, I.e. IAN Alpha Fund has managed to Sohini Bagchi Ranjani Raghavan
raise commitments to the tune of ₹355 crore, thus subsequently sohini.bagchi@livemint.com ranjani.raghavan@livemint.com
marking its first close. IAN Alpha Fund has a target corpus of neW delhi mumBAi
₹1,000 crore, with a base investment corpus of about ₹650 crore

and an over allotment option of ₹350 crore. Through the fund, IAN
aims to make early-stage investments in about
100 companies. K AMOGHAVARSHA
Byju’s founder pledges homes
to raise funds for staff salaries
MINT
Byju Raveendran, the eponymous founder of edtech titan
Byju’s, has pledged his home as well as those owned by his
family members to raise money for paying employees as the
company battles a cash crunch, according to people familiar
with the matter. Two homes owned by the former billion-
aire’s family in Bengaluru and his under-construction villa
in Epsilon—a plush gated community in the city—were
offered as collateral to borrow $12 million, the people said,
A W
ntonio Neri became the pres-
ident and CEO of Hewlett
Packard Enterprise (HPE)—a
$29 billion global technology
company—in 2018. Since
then, he has led HPE’s efforts to acquire
more than 25 companies worldwide. Neri
believes that India is a strong market for
growth and innovation and plans to con-
tinue investing in the country. In an inter-
view, the Argentinian-Italian executive
discusses HPE’s cutting-edge technology
innovations in artificial intelligence (AI),
data, and hybrid cloud, the importance of
culture and employee engagement, what
drives his energy as a CEO, the technology
landscape in India, and his plans for the
Indian market.
Edited excerpts:
How do you
think tech
spending will evolve in the coming
years?
Currently, the global economy is going
through some uncertainty and readjust-
ments. However, India has been at the
forefront of digital transformation and is
probably the fastest-growing economy in
terms of gross domestic product (GDP). IT
arburg Pincus said
its long standing
head of India, Vis-
hal Mahadevia, will assume a
newly created position as head
of Asia private equity, as part
of its effort to promote next-
generation leadership within
the firm.
Narendra Ostawal, who
joined Warburg in 2007, has
been appointed head of India, Mahadevia led the firm’s India
while Anish Saraf and Viraj investments since 2011. MINT
Sawhney will take on
expanded roles, as the firm With Mahadevia, Warburg
deepens its focus on cross-bor- Pincus is the third private
der business services and equity firm to promote its
industrials activity, a media India head to an Asian leader-
statement said. ship role. Blackstone pro-
Warburg is pushing to unify moted Amit Dixit to head of
decision-making in a bid to Asia private equity in 2021.
cant role. HPE’s global supply chain. We are also keep growing on the conti- KKR elevated Gaurav Trehan,
We recently opened a new campus in considering investments in networking nent. “We always want to best its India head, to Asia head of
Bengaluru, which will host almost 11,000 and computing. assess the risks and reward private equity earlier this year.
people. The R&D team in India is respon- We believe India has the potential to across the region,” said War- Mahadevia, a 17-year vet-
sible for product development across the become a hub for large-scale manufactur- burg president Jeff Perlman. eran of the firm, joined War-
HPE portfolio. Over the past three years, ing, and our next phase aligns with the Warburg Pincus has burg Pincus in 2006 and has
we have received 1,873 US patents, with Indian government’s policies. invested across led the firm’s
366 patents filed by the R&D team in What sets HPE apart from its compet- 80 companies Narendra Ostawal investments in

‘
asking not to be named as the information is not public. spending tends to follow GDP curves, so I India. itors? In which areas do you think since its first has been the region since
The startup used the funds to pay salaries to 15,000 employ- believe that IT will grow faster than GDP In 2019, HPE announced HPE needs improvement investment in appointed India 2011. He will con-
ees in Byju’s parent firm, Think & Learn Pvt., on Monday, in the next 3-5 years. Areas like artificial a $500 million invest- based on competitor India in 1996. head. Anish Saraf, tinue to be the
they said. Meanwhile, NCLT has issued notice to Think & intelligence (AI), cybersecurity, and data We believe The firm also
Viraj Sawhney will global co-head of
ment plan for India over benchmarking?
Learn Pvt Ltd over a petition filed by the Board of Control for will continue to be strong. We are living in five years. As we India has the HPE has the most exten- announced a financial services.
Cricket in India (BCCI).The BCCI has filed a petition claiming an era where data is exploding, and it approach the end of that potential to sive portfolio in the market, series of promo- take on expanded “We were the
dues of ₹158 crore as an operational creditor under section needs to be stored, understood, and lever- period, how do you eval- ranging from intelligent tions across Asia. roles first private
9 of the Insolvency & Bankruptcy Code 2016. AGENCIES aged for value. As data grows, the need for uate the execution and become a hub Edge solutions and IoT to In Singapore, equity firm to
IT and technology also increases. There- results of that invest- for large-scale computer storage, hybrid Saurabh Agarwal achieve scale in
fore, I am optimistic about technology ment? manufacturing cloud solutions, AI, and who joined the firm in 2009, Asia, and we continue to bene-
IN-SPACe starts seed fund scheme spending in the long run. The investments we
Antonio Neri,
supercomputing. We have has been appointed head of fit from the transformation of
What excites you the most about made in India focused on created significant differen- Southeast Asia Private Equity. the economy and the rise of
for startups using space tech India? Is it India as a market for HPE growing our presence in
president and
tiation at the technology The firm made its first invest- the middle class,” Chip Kaye,
CEO, HPE
Mumbai: The Indian National Space Promotion and Authorization or India as a skill base for HPE glo- R&D and services. We have level. ment in Southeast Asia in 2013. CEO, Warburg Pincus. “The
Centre (IN-SPACe) on Monday announced the launch of a seed bally? significantly expanded our Additionally, our culture, In China, Warburg Pincus strength, maturity, and scale of
fund scheme for start-ups operating in the area of urban develop- HPE India has the highest number of team in India over the past few years. In which revolves around being customer- said Frank Wei will step down our business across Asia posi-
ment and disaster management by using space technology. As part employees outside the US, accounting for the next phase, we plan to invest in manu- centric and people-centric, sets us apart. from his current role as head tions us well to invest success-
of the scheme, selected start-ups will receive seed funding for trans- more than 25% of the total company head- facturing. We intend to produce high-vol- We prioritize listening, understanding, of China, after 20 years. He fully as the economy evolves,”
forming an original idea into a prototype using space technology, count. India is a large and growing econ- ume servers worth $1 billion in the first and watching our customers to deliver the will continue to be managing Kaye added.
ISRO facility support including Earth Observation (EO) data for val- omy, and we are excited about the govern- five years at a manufacturing site in Mane- best solutions. director. Min Fang and Warburg Pincus recently
idation of the concept, mentorship support, and access to data algo- ment’s efforts to modernize infrastruc- sar, Haryana. This manufacturing opera- (The writer was in Barcelona to attend B e n Z h o u h a v e b e e n closed Warburg Pincus Global
rithm as transfer of technology from the Department of Science, ture. With everything being digitized, tion will support the growing demand HPE Discover 2023 hosted by Hewlett- appointed as co-heads of Growth 14 in October, with
according to a statement. PTI technology will continue to play a signifi- from customers in India and strengthen Packard Enterprise (HPE)) China Private Equity. $17.3 billion of capital.

Kacholia, others buy 10% stake in RDC

Sneha Shah construction products under have 180 RMC plants by the
sneha.shah@livemint.com its own brands and aims to end of FY25. “RDC Concrete is
mumBAi solve issues such as a lack of expected to have a revenue of
price transparency, unreliable ₹2,000 crore by the end of the

T
iger Global-backed busi-
ness to business con-
struction material
maker Infra.Market, has sold
around 10% stake in RDC Con-
crete to investors led by Ashish
Kacholia for $20 million, valu-
ing the company at $225 mil-
lion. This divestment in RDC
Concrete comes before the
company’s IPO in the near
future, it said in a release.
Infra.Market acquired RDC
Concrete a ready-mix con-
crete company, for $90 million
in 2021. In June this year, the
company was in talks to raise
$150 million from Varde Part-
ners through issuance of con-
vertible instruments. That
round is, however, yet to close.
The company counts Accel
Partners, Evolvence India, Sis-
tema Asia Fund, Foundamen-
tal Gmbh and Nexus Venture
Partners as its other investors.
quality, fragmented vendor current financial year. RDC
base, and inefficient logistics. Concrete’s revenue and its
It is present across 20 states in Ebitda have grown over 2x
India and has also recently set since its acquisition in 2021,”
up its global offices in Singa- the release said.
pore and Dubai. For the finan-
“The invest- The company cial year ended 31
ment in RDC now owns 100 March 2023,
reflects our com- plants across 48 I n f r a . m a r k e t
mitment to driv- cities and expects clocked ₹11,000
ing growth and crore of consoli-
to have 180 RMC dated revenues
Infra.Market acquired RDC fostering leader-
Concrete for $90 mn in 2021. ship within the plants by the with ₹650 crore
construction end of FY25 of Ebitda and
In June 2022, the company industry. We look ₹300 crore in
raised $50 million in growth forward to wit- profit after tax,
capital from Liquidity Group’s nessing RDC’s continued evo- the third person cited above
MARS Unicorn Fund, valuing lution and contributing to its said. The company is yet to
it at $2.5 billion. promising journey in the sec- officially file its results.
Founded by Souvik Sen- tor as we welcome the new India’s concrete penetration
gupta and Aaditya Sharda in investors in the company,” is the lowest among large eco-
2016, Infra.Market uses tech- said Souvik Sengupta, nomies and the penetration of
nology to provide a procure- co-founder, Infra.Market. concrete as a percentage of
ment experience for all players As per the release, the com- total cement usage is expected
in the construction ecosystem. pany now owns 100 plants to increase in the days to come,
It focuses on high-volume across 48 cities and expects to the company said.

Allen Career Institute acquires DoubtNut

Aman Rawat als from leading global and
aman.rawat@livemint.com Indian consumer tech compa-
BengAluru nies such as Amazon, Google,
Meta, Flipkart, Samsung, and

B
odhi Tree Systems-
backed Allen Career
Institute has acquired
Tencent-backed doubts-solv-
ing platform Doubtnut in its
first acquisition of an edtech
company.
The financial terms of the
deal were not disclosed.
Doubtnut, which has also
raised capital from marquee
investors like SIG, James Mur-
doch’s Lupa Systems, Peak XV
Partners, Omidyar Network
and WaterBridge, was seeking
a buyout for several years.
The company had held
acquisition talks with edtech
giant Byju’s, which reportedly
made an offer worth $150 mil-
lion, back in 2020. The negoti-
ations fell through because of
a valuation mismatch.
Meanwhile, Allen said it will
bring its curriculum and aca-
This PDF was uploade To Telegram channel_https://t.me/Magzines_latest_Newspaper(send Me Message telegram ya WhatsApp This number 8890050582)
Allen will bring its curriculum and academic offerings to
Doubtnut’s students and cater to their needs for better education.
demic offerings to Doubtnut’s
student base and cater to their
needs for a better education. It
added that Doubtnut’s plat-
form has a monthly
reach of 32 million
students across digi-
tal apps, websites
and YouTube channels.
“Timely and effective reso-
lution of doubts is a core con-
sumer need in education.
Doubtnut’s platform will allow
us to greatly enhance the
learning experience for our
students,” said Nitin Kukreja,
chief executive offi-
cer of Allen.
Allen, which raised
$600 million from
Bodhi Tree Systems in May
last year, is investing heavily to
strengthen its technology
team. It has hired profession-
Twitter, taking its technology
and product teams based in
Bengaluru to more than 120.
Founded by Rajesh
Maheshwari in 1988, Allen
provides test preparation
classes for competitive
entrance exams like the Joint
Entrance Examination and the
National Eligibility cum
Entrance Test.
It claims that it has a pan-In-
dia base with more than 200
classroom centres in 53 cities.
The institute offers a range of
programmes, including class-
room coaching, distance
learning, online tests, and
study material.
EY was the exclusive finan-
cial advisor to Allen and Trile-
gal was the legal advisor. TTA
was the legal advisor to Doubt-
nut while Aeka Advisors acted
as tax advisor to Doubtnut.
 04 TuesDay, 5 December 2023
New Delhi MARK TO MARKET LIVEMINT.COM

S&P BSE Sensex Nifty 50 Nifty 500 Nifty Next 50 Nifty 100 S&P BSE Mid-cap S&P BSE Small Cap
CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE

68865.12 2.05 20686.80 2.07 18448.50 1.84 49424.80 1.94 20757.95 2.06 34999.76 1.19 41051.01 1.20
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

67481.19 68435.34 20267.90 20601.95 18115.35 18422.35 48486.40 49347.55 20339.45 20687.35 34586.76 35099.38 40565.96 41166.95
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

68918.22 68274.47 20702.65 20507.75 18460.00 18315.45 49473.10 49071.40 20773.70 20586.75 35124.23 34840.45 41221.91 40901.69

m MINT SHORTS
Hedge funds boost bearish yen
Poll results boost mkt optimism
bets amid doubts over rally Harsha Jethmalani
Gearing up such fears, although a BJP victory across Plus, crude oil prices have eased from
Hedge funds boosted bearish yen wagers to the highest harsha.j@htlive.com
The Nifty50 index has previously seen a decent rally six months prior to the
most states does not necessarily reduce recent peaks, putting India on a rela-
level since April 2022 last week amid speculation a recent general election outcomes the likelihood of competitive populism tively firmer footing. Thus, this valua-

I
rebound in the currency will be short-lived. Leveraged ndian equity investors heaved a sigh
funds’ net yen shorts increased by 2,833 to 65,611 con- of relief following the outcome of
tracts as of 28 November, according to the latest data the recently concluded state elec-
from the Commodity Futures Trading Commission. tions. The Bharatiya Janata Party
Japan’s currency appreciated almost 4% from a recent (BJP) impressively outpaced key
low of 151.91 per dollar set on 13 November to 146.23 on rival Indian National Congress in the
Monday, the strongest since mid-September. The bets crucial Hindi heartland states of
from hedge funds add to signs that investors see yen Madhya Pradesh, Rajasthan and Chhat-
weakness becoming more entrenched, even though tisgarh.
overnight-indexed swaps are pricing in an end to the This Hindi belt accounts for around
Bank of Japan’s negative-rate policy by June. Japanese 12% of the total Lok Sabha seats, and the
life insurers have recently cut currency hedging by the BJP’s performance in these three states
most in more than a decade, signalling receding concern has raised expectations of the party
of a rebound in the yen that would wipe out returns from retaining a majority in the upcoming
overseas assets. BLOOMBERG general elections and allayed
concerns of political uncertainty and
policy instability.
Reflecting this positive sentiment,
the BSE Sensex hit an all-time high of
68,918.22 and the Nifty50 scaled a new
peak of 20,702.65 on Monday.
However, investors should exercise
caution as state election results have not
always shown a correlation with the Lok
Sabha polls, said Motilal Oswal Finan-
cial Services. For instance, BJP had lost
these three states in December 2018,
but won the 2019 Lok Sabha elections
with a better majority than in 2014.
Nifty50 returns (in %)
Six months before result date
40
20
0
-20
1991 1996
15 June 09 May
-40
Note: Result announcement dates
are mentioned in bold
Local issues predominantly influence
state elections, while economic growth
takes centre stage in general elections.
This time around, state elections
were marked by welfare schemes/free-
bies, particularly those targeting
women and girls. The free handout
strategy may continue in the run-up to
recurring as a dominant theme into the tion gap is likely to sustain.
Six months after result date
2024 general elections, in our view,” its While no steep downgrades are
economists added. expected to FY24 earnings estimates,
On the bright side, stocks of compa- meaningful upgrades are also unlikely
nies with rural and healthcare exposure without an improvement in demand.
may benefit from the welfare schemes. The Nifty50 has given decent returns
Oil marketing companies in the past ahead of general
might also see an improved BRIGHTER election outcomes. That
earnings outlook with the SIDE said, the general election is
reduced likelihood of retail still some months away and
fuel price cuts. Midcaps, STOCKS of cos with any political shift could
smallcaps, and PSU stocks rural and healthcare
exposure may
derail the momentum.
are expected to see a posi- benefit from the Meanwhile, investors will
tive rub-off as well. welfare schemes keenly watch the Reserve
Despite the reduced Bank of India’s monetary
1998 1999 2004 2009 2014 2019 political uncertainty and the FOREIGN fund policy meeting scheduled
inflows are expected
02 Mar 06 Oct 13 May 16 May 16 May 23 May easing of crude oil prices, to strengthen with this week. The central bank
corporate earnings need to political uncertainty is largely expected to main-
Source: Motilal Oswal Financial Services, catch up to justify India’s risk likely reducing tain a status quo on interest
National Stock Exchange
high valuation multiples. rates and retain its with-
PRANAY BHARDWAJ/MINT
The MSCI India index is drawal of accommodation
the general elections and could keep trading at a one-year forward price-to- stance. “Despite a correction in retail
state finances under pressure. earnings of 21 times, showed Bloomberg inflation in the past three months, a
“Investors were worried that a poor data. This is a premium to MSCI Asian rebound in selected perishables and
showing by BJP in state elections would Ex-Japan and MSCI Emerging Markets ‘stickier’ food components like cereals
increase the risk of more fiscal popu- indices. and pulses are likely to push inflation
lism,” said a Nomura Global Markets Foreign fund inflows are also back towards 6% this quarter,” said Rad-
Research report dated 3 December. “As expected to strengthen with the risk of hika Roa, senior economist, DBS Bank
such, the actual results should calm political uncertainty likely reducing. in a note.

Private renters had a 7.2% household cost index rate, and

outright owners a 7.4% rate. ISTOCKPHOTO Upbeat prospects for Finolex Cables; investors enthused
UK mortgage borrowers face Dipti Sharma pointed out. Construction, which cated that volumes for new prod- overhang on Finolex’s stock,” said
Wired well
highest inflation rate: ONS dipti.sharma@livemint.com accounts for 65% of the electri- Finolex Cables has sharply outperformed Nifty 500 index in 2023 so far uct offerings in both lighting and Sanjeev Hota, head of research,
UK homeowners with a mortgage faced the highest per- cals segment, has better margins, Finolex Cables Nifty 500
conduit products were strong. Sharekhan by BNP Paribas.

F
sonal rate of cost inflation in the year to September as inolex Cables Ltd’s shares whereas the auto and power 220 Switches also showed positive A family dispute has persisted
interest rates hit people’s disposable income, the Office have gained 12% since the cables, each making up about performance. However, volumes between promoters Deepak
200 186.11
for National Statistics (ONS) said. The ONS household company’s meeting with 10% of the segment, have rela- in other appliance product lines Chhabria and Prakash Chhabria
cost index (HCI), which measures of how changing costs analysts on 21 November. The tively lower margins, it added. 180 were subdued due to inflationary for a prolonged period revolving
affect different subsets of the UK population, showed the company caters to high-growth During the September quar- 160 pressures and sluggish demand. around the control of Finolex
average mortgage borrower had a 9.3% personal rate of sectors such as construction, ter (Q2FY24) earnings call, Fino- 140 This trend is expected to have Cables. Finolex Cables is cur-
inflation, far above the headline 6.7% consumer prices automobiles, power, industrials, lex highlighted increased activ- 119.42 reversed during the festive sea- rently trading at a price-to-earn-
120
index for September. Private renters had a 7.2% HCI rate, and telecommunications, which ity in the construction sector, son. Also, softening raw material ings multiple of 20 times its esti-
and outright owners a 7.4% rate. The increase in interest has buoyed the outlook for the saying that could lead to better 100 costs are expected to lead to bet- mated FY25 earnings, show
rates, which soared from near zero at the end of 2021 to maker of electrical and telecom- demand for its products. 80 ter margins. Bloomberg data. This is a discount
30 Dec 2022 04 Dec 2023
5.25% currently, drove up borrowing costs for house- munication cables given the On a consolidated basis, elec- “Even with a debt-free and compared to that of competitors
Note: Values rebased to 100 Source: Capitaline
holds. As wealthier people tend to own their homes, their increased activity in these sec- trical cables accounted for the financially sound balance sheet, such as Polycab India Ltd, KEI
PRANAY BHARDWAJ/MINT
personal inflation rate was higher than the poorest. It tors. This also explains the 86% largest chunk (61%) of gross seg- the family feud and related court Industries Ltd, and RR Kabel Ltd,
was only the second time since March 2022 that the gain in the stock so far in 2023. ment revenues in Q2, followed accretive segments and capacity New products such as applian- cases have weighed on investor which are trading at 35-42 times.
wealthy have had a higher cost inflation rate, as Construction wires account by copper rods (28%), communi- expansions could support ces, switchgears, and switches sentiment for far too long, and The expectation is that this dis-
rising energy and food prices have tended to hit poorer for more than 50% of Finolex’s cation cables (8%), and others growth,” said analysts at Jefferies are margin accretive. During the any resolution or clarification in count will narrow down once the
families harder. BLOOMBERG sales, analysts at Jefferies India (3%). “Better traction in margin- India. Q2 earnings call, Finolex indi- these matters would remove family dispute is resolved.

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

Spot gold hits record EIB eyes green H2 in India Lybrate founders move US court
on dovish Fed remark FROM PAGE 1 require heavy investments to
grow. With the government
for arbitration against Pristyn
Agency (IEA) projects that the rolling out the ambitious
Bloomberg total investment in clean National Green Hydrogen FROM PAGE 1 Care said it did not complete Pristyn Care reported a rev-
feedback@livemint.com energy supply and clean tech- Mission along with a ₹19,000 the “Tranche II transfer due to enue of ₹96 crore and loss of
nology manufacturing in India crore incentive schemes for showed. a pending investigation into around ₹64 crore in FY21. It

G
old shot past a previous
all-time high set in the
midst of the pandemic
on growing expectations for
US rate cuts early next year,
despite attempts by the Fed-
eral Reserve to temper the
optimism.
The precious metal surged
more than 3% in early trading
on Monday, surpassing the
previous all-time high it set on
7 August 2020, before paring
most of those gains.
A rally in bullion that’s been
underway since early October
was turbocharged on Friday
when comments by US Fed
chair Jerome Powell that mon-
etary policy is “well into
restrictive territory” spurred a
plunge in the dollar and Trea-
sury yields.
Powell then attempted to
push back against the rate-cut
optimism, warning that “it
would be premature to con-
clude with confidence that we
have achieved a sufficiently
Gold surged more than 3% in
early trading on Monday. AFP
Gold rose 0.8% to $2,087.95
an ounce as of 1:32 pm in Sing-
apore, following a 1.8%
increase on Friday. Bullion’s
14-day relative strength index
is now well above the thresh-
old suggesting it may have
been overbought. The Bloom-
berg Dollar Spot Index added
0.1%, while silver, platinum
and palladium all declined.
Bullion has surged around
15% from a low in early Octo-
ber. It benefited from a spate of
haven buying following the
Hamas attack on Israel, and
would double by 2030 from
$60 billion in 2022. The IEA’s
World Energy Outlook 2023,
however, said that invest-
ments in clean energy need to
triple to $180 billion by the end
of this decade for India to
achieve its net-zero emissions
targets. According to KPMG,
by 2047, annual investments
worth $350-400 billion would
be required to meet the coun-
try’s ambitious clean energy
targets.
According to Invest India,
the country’s investment pro-
motion and facilitation
agency, currently there is an
investment opportunity of
Wall Street wisdom on who sells in a market crisis debunked
Bloomberg
feedback@livemint.com
green hydrogen and electro-
lyzers, several business houses
are planning to foray into this
segment. India aims to pro-
duce 5 million tonnes of green
hydrogen by 2030.
The EIB is the lending arm of Further, the government is
the EU. also planning to provide via-
bility gap funding for offshore
around $216 billion in the wind projects and plans these
renewable energy space in the projects along the coastline in
country; data showed that 467 Tamil Nadu and Gujarat. The
renewable energy projects are ministry of new and renewable
underway across 230 districts energy has announced that it
in the country with 150 pro- would hold auctions for off-
moters. shore wind sites along the
Both green hydrogen and Tamil Nadu coastline.
offshore wind are capital-in- shashank.mattoo@live-
tensive segments and would mint.com
the Covid-sparked turmoil of
2020, and identified substan-
tially higher outflows in share
“Plaintiffs intend to hold allegations of improper con- has not yet filed its FY22 finan-
GHV accountable for the duct by plaintiffs.” cial statements.
aggregate damages amount, Pristyn Care On 5 Novem-
which by plaintiffs’ estimation turned unicorn In their petition, b e r , M i n t
is in excess of $13 million,” the in April 2021, in a Lybrate’s founders reported that
filing said. funding round said they received Pristyn Care’s
Pristyn Care has denied it led by Tiger only $1.5 mn out of auditors had
owes payments to Lybrate Global Manage- flagged “material
the $8 mn
founders. The Mint report ment. Its other weakness” in the
quoted a company spokesper- investors include payment in the internal controls
son on 20 July, “Pristyn Care Peak XV Partners first tranche in the company.
has and shall continue to act in (formerly The findings
accordance with the contrac- Sequoia Capital included an
tual terms and conditions. India), Hummingbird Ven- instance of a Pristyn employee
Pristyn Care has not defaulted tures and Epiq Capital. At that providing the auditor with
on any of its contractual obli- time, the company said it had “certain documentary evi-
gations.” raised a total of around $150 dence in relation to agree-
Later in a court response million from external inves- ments with doctors, which
filed on 21 November, Pristyn tors. were not genuine.”
showed that a share class of a odds with common narratives
bond fund that was more than that panicking amateur inves-
25% owned by other funds tors or companies in desperate

restrictive stance, or to specu-
late on when policy might
ease.” Despite that, swaps mar-
kets now see a more than 50%
chance of a reduction in March
and are fully pricing in a cut in
May.
There’s been “a big momen-
tum shift” on gold, said Chris
Weston, head of research at
Pepperstone Group Ltd. How-
ever, US labour data later this
week could pose an element of
downside risk to bullion, with
bets on lower real rates into
next year looking very aggres-
sive, he said.
This PDF was uploade To Telegram channel_https://t.me/Magzines_latest_Newspaper(send Me Message telegram ya WhatsApp This number 8890050582)
then, in recent weeks, the rally
got extra impetus from the
growing expectations for US
rate cuts. It’s been bolstered by
a drop of 60 basis points in the
US 10-year Treasury yield and
a decline of almost 3% in a
gauge of the dollar over
November.
Shares of gold miners were
also up. Newmont Corp. rose
as much as 3.6% in Sydney,
while Northern Star Resour-
ces Ltd climbed as much as
5.3%. Zijin Mining Group
Co. jumped as much 6.4% in
Hong Kong.
W
ho is most likely to
ditch a mutual fund
when a crisis hits? If
you assumed it’s flighty retail
investors or cash-hungry cor-
porations, the latest research
suggests you’re wrong.
The investor type most
prone to “runs”—frantic sell-
ing at a time of market stress
—is the fund sector itself, a
team of academics from
Columbia Business School
and the European Central
Bank has discovered. They
analysed the trading dynam-
ics of euro-area funds during
classes more heavily owned
by other funds.
The findings, published
last month, have important
implications for investors of
all stripes. They suggest any
holdings in a portfolio that
are heavily owned by funds
will be more likely to see an
exodus during times of tur-
moil—and hence suffer out-
sized declines.
“It is the open-ended nature
of mutual funds coupled with
their cross-ownership struc-
ture that allows for initial fund
outflows to amplify and trigger
experienced outflows 6 per-
centage points larger than dif-
ferent share classes of the
same product. The pattern was
similar in equity funds, the
researchers said, although
outflows there were much
lower overall.
On one level, the results
The pattern was similar in equity funds, the researchers said, make intuitive sense. If a
although outflows there were much lower overall. AP mutual fund is hit by large
redemptions, it generally has
widespread redemptions of working paper, ‘Fund fragility: to sell to meet them — and if a
fund shares,” Nolwenn Allaire the role of investor base’. substantial part of its holdings
at Columbia and Johannes The trio sliced and diced are in other funds, there’s a
Breckenfelder and Marie Hoe- both bond and equity mutual good chance that is what it will
rova at the ECB wrote in their funds by ownership.They sell. But the findings are also at
need of cash drive such out-
flows.
Through the lens of the new
research, those investors may
have triggered initial with-
drawals, but it is funds holding
other funds that amplify the
effect.
Bolstering the idea that
mom and pop investors have
been unfairly maligned,
Allaire, Breckenfelder and
Hoerova’s paper found that
fund share classes more than
25% owned by households
posted significantly lower out-
flows.
 LIVEMINT.COM
TuesDay, 5 December 2023
New Delhi 05
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ATAL BHUJAL YOJANA WINS GOLD FOR CENTRE

Dr Umesh Balpande Dr Gursharan Dhanjal Mr Sameer Kochhar Ms Debashree Mukherjee Mr Subodh Yadav Mr Pratul Saxena
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Technology Helps in Speeding Social Inclusion schooling and school attendance. The standard
of living involves six indicators: cooking fuel,
electricity, housing, drinking water, sanitation
and assets possessed by a household.
Since 2015, there has been a marked
improvement in the status of women and the
marginalised. Dr Garg said, we categorise
individuals requiring social justice into three main
sets: First, across the age life cycle - including
children, pregnant and lactating women and senior
citizens. Secondly, affected by natural disasters -
Such as cyclones, floods, climate change-induced
disasters and pandemics/epidemics. Thirdly,
broader social inclusion -focused on marginalised
Dr Saurabh Garg Mr Sameer Kochhar
and the vulnerable sections.
Secretary, Dept of Social Justice Chairman
SKOCH Group
All the programmes and interventions are
and Empowerment
runs more than 600 old-age homes across the
country. Disaster-related relief is provided for
droughts, floods etc.
According to Dr Garg, one of the essential
features of better monitoring is measuring what
you want to monitor. What you can’t monitor will
not happen, therefore, will not be achieved.
Dashboards allow real-time data that can be
fed from the field and is accessible at all levels.
For example, the Prime Minister's Aadarsh Gram
Yojana dashboard looks at 50 parameters for
18,000 SC dominated villages (more than 50%).
Development support is provided based on this.
There are three sets of empowerment:
social, economic and educational. Social
empowerment is provided using legislation.
that between Class 9-12 there are no dropouts of
students belonging to vulnerable, marginalised
or deprived communities. Recognising merit,
irrespective of educational institutions, students
have been funded. There are cases where, even
PhD scholarships have been offered.
Under Vanchit Ikai Samooh aur Vargon ko
Aarthik SahayataYojana (VISVAS) the department
provides interest subvention Self Help Groups with
100% OBC members and OBC individuals who
have taken loans for various income-generating
activities from those lending institutions who have
signed MoA with NBCFDC.
Another, Credit Enhancement Guarantee
Scheme for SCs is a social sector initiative to
promote entrepreneurship amongst the SCs who

E
nsuring a life of basic human dignity
is the foundation of social justice and
social protection, said Dr Saurabh Garg,
Secretary, Department of Social Justice and
Empowerment, while in conversation with Mr
Sameer Kochhar, Chairman, SKOCH Group.
A notable yardstick in this context is the
Global Multidimensional Poverty Index, which
assesses well-being in three dimensions: health,
education, and standard of living. The health
dimension includes indicators such as nutrition,
child mortality and education, considers years of
tailored to address each of these goals. For
example, the National Food Security Act,
provides wheat or rice per household each month,
benefiting crores of people. This ensures no hunger
or starvation at any level. Second, MGNREGA
assures 100 work days with minimum wages in
rural areas. For senior citizens, the department
Economic empowerment is based on wage
security, credit linkage etc. The contribution of
entrepreneurship toward social transformation
also needs to be recognised. Educational
empowerment comes from encouraging
marginalised for higher education and providing
scholarships. The department funds and ensures
are oriented towards innovation and growth
technologies.
WiththevisionofIndia2047orVikasitBharat,the
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Last Date: 26th December 2023 | dx.skoch.in

SKOCH Gold Award

for Strategic Digital Human
Resources Transformation

Dr Gursharan Dhanjal Mr Sameer Kochhar Ms Poppy Sharma

Vice Chairman, SKOCH Group Chairman, SKOCH Group General Manager, Central Bank of India

info@skoch.in skochgroup skochgroup skochtv @skochgroup @skochsameer

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 06 TuesDay, 5 DecembeR 2023
New Delhi CORPORATE LIVEMINT.COM

Jio Studios
eyes new SAT throws out Sebi’s order EXPERT
VIEW
buyers for
its offerings
against Ambani, two SEZs Shanti Ekambaram

Respond to this column at

feedback@livemint.com

FROM PAGE 1

changed and Uday has made Case relates to alleged manipulative trades in shares of erstwhile Reliance Petroleum
RBI MAY CONTINUE
clear that while the platform
will focus on regional and
sports content. All titles com- Priyanka Gawande
WITH STATUS QUO IN
missioned by the Jio Studios
team will not go on the app,”
said a producer working
priyanka.gawande@livemint.com
MuMbAI THIS WEEK’S POLICY

T
closely with JioCinema, one he Securities Appellate Tri-

of the two people cited above.
A second producer said the
Jio Studios team is in the mar-
ket looking for buyers for
films and shows that have fin-
ished production. “If a project
has gone on the floors, they’re
completing it. However, the
ones that were only commit-
ted to, have been pushed for
now,” the second person said.
“It’s a different environ-
ment right now, with all the
mergers and acquisitions
(pending), and a major chunk
of budgets is only going into
acquiring big-star films post
theatrical release. There will
be additional cash flow after
these mergers, but for now
there are a lot of producers
who have stuff ready but are
waiting for things to ease out
so as to get fair value for it,”
said Abhishek Vyas, a director
and co-founder of AVS Stu-
dios who has previously
worked at Netflix and Zee
Studios.
Agreeing that a certain
amount of rationalization has
come into the OTT (over-the-
top) ecosystem, Saugata Muk-
herjee, head of content at
SonyLIV, said in a recent
interview to Mint that it was
only a matter of time before
platforms became measured
in their approach and started
evaluating who is going to pay
for content. “It will help
streaming find the right sto-
ries,” Mukherjee had added.
T
bunal (SAT) has quashed the he Reserve Bank of India (RBI) is likely to hold the key inter-
markets regulator’s 2021 est rates in its December monetary policy review and con-
order against Reliance tinue with its emphasis on containing inflation. Macroeco-
Industries Ltd (RIL) manag- nomic indicators remain healthy, with GDP growing at 7.6% in Q2,
ing director Mukesh Ambani, the Navi exceeding expectations. The central bank will focus mainly on
Mumbai Special Economic Zone (SEZ) inflation, liquidity and currency management.
and the Mumbai SEZ in a case related to Given the likely status quo, the market will instead closely track
alleged manipulative trades in shares of the narrative from RBI’s monetary policy committee (MPC) for
the erstwhile Reliance Petroleum Ltd. direction on rates and liquidity over the next few quarters. Expect
In January 2021, the Securities and the central bank to continue with the same narrative—inflation tar-
Exchange Board of India (Sebi) geting at 4%, ensuring price stability, keeping a close watch on
imposed a penalty of ₹25 crore on RIL global trends, and providing sufficient liquidity to support growth.
and ₹15 crore on Ambani. It had also Signals from the US Federal Reserve indicate its rate cycle will
asked the Navi Mumbai SEZ to pay a likely remain steady; the market is expecting a rate cut in mid-
penalty of ₹20 crore. Ambani along 2024. In short, there seems to be a softness as far as interest rates
with RIL and other entities had chal- and the macros are concerned in the US.
lenged the order before the SAT. Globally, while China and Europe are still grappling with rela-
On Monday, a SAT bench led by Jus- tively slowing growth, emerging economies are faring better. Geo-
tice Tarun Agarwala held that Sebi’s Reliance Industries managing director Mukesh Ambani. HINDUSTAN TIMES political tensions, however, remain with the ongoing conflict
order against Ambani, the Navi Mum- between Israel and Hamas. And though crude prices have
bai SEZ and the Mumbai SEZ stood above (futures and options) segment nered nearly 93% of open interest in orders in the cash segment on behalf of remained stable to soft, we will have to continuously monitor the
quashed. It also directed the regulator transactions was RIL. The execution of Reliance Petroleum November RIL and in the F&O segment on behalf scenario to see how it would collectively impact India. At the
to refund any penalty if already depos- the...fraudulent trades affected the futures, when the agents took short of the agents. moment, the outlook is far more balanced than it was during the
ited. price of the RPL securities in both cash positions in the F&O segment on its As for the SAT dismissing RIL’s previous few policy meetings.
The tribunal, however, dismissed and F&O (futures and options) seg- behalf, Sebi had said in its order. The appeal in the case, Ravishekhar Pan- In India, the economy has shown resilience and strength with
Reliance’s appeal in the case. In ments and harmed the interests funding for the margin pay- dey, practice head, securities Q2 GDP print coming at 7.6%. While urban consumption is holding
essence, this means the Sebi of other investors”. ments by the agents was and capital market, at law steady, rural consumption is still weak and muted. Investment- and
order on RIL stands opera- Sebi, in its order, had provided by the Navi firm MDP & Partners, capex-led growth has shown green shoots, boosted by government
tional, including the pen-
alty levied on the com- ₹15 cr
Penalty imposed
also stated that RIL had Mumbai SEZ and the
engaged in a scheme of Mumbai SEZ, it had ₹20 cr
Penalty imposed
explained that as the com-
pany was in appeal before
spending, infrastructure investments and some capacity building.
GST collections, too, have shown strong trends, and the fiscal defi-
pany. manipulative trading in said. the Supreme Court cit seems to be in line with the Budget estimates. Given all these,
The case pertains to by Sebi on Ambani respect of the sale of RIL’s On Monday, the SAT on Navi Mumbai against a 2020 order of it is likely that RBI will raise its growth estimate. The rupee has seen
the sale and purchase of in January 2021 5% stake in Reliance bench said it was not pos- SEZ in January 2021 the SAT, “the fate of its some depreciation, but is still relatively steady as compared with
Reliance Petroleum shares Petroleum . It had said that sible for the Navi Mumbai recent appeal was known, currencies of other emerging markets. Price stability is an impor-
in the cash and futures seg- RIL, before undertaking sale SEZ and Mumbai SEZ to have except for adjudication on the tant factor, and the central bank will be focused on maintaining it.
ments in November 2007. Subse- transactions in the cash segment, known that RIL would sell shares quantum of penalty”. In the previous quarter, investors continued to invest into India.
quently, RIL decided to sell a nearly 5% had booked large short positions in in the cash segment in November “The order under challenge was In the March-August period, foreign
stake in Reliance Petroleum, a listed Reliance Petroleum November futures 2007, and that RIL would take posi- passed by the adjudicating officer of RBI will focus portfolio investors (FPIs) had infused
subsidiary that was later merged with through 12 agents with whom it had tions in the futures segment through its Sebi. On the same investigation, the mainly on ₹1,68,179 crore into Indian equities, as
RIL in 2009. entered into an agreement to circum- agents, as alleged by one of Sebi’s whole-time member of Sebi had passed per official data. Though the trend was
Sebi adjudicating officer B.J. Dilip vent position limits for a commission whole-time members in 2021. an order which was upheld by the tri- inflation, reversed in the September-October
had held that “general investors were payment. Sebi in its order had said a common bunal vide its order dated 5 November liquidity and period, the buying so far in November
not aware that the entity behind the As a result, RIL fraudulently cor- person connected with RIL had placed 2020 (with a 2:1 majority),” he added. currency and early December is encouraging.
management Macros continue to hold steady. Con-
sumer inflation was at a four-month low
of 4.87% in October. That, strong Q2

Cotton pilot a hit, JSW acquires key port in Raigad NCLT rejects GDP growth and a robust uptick in manufacturing and invest-
ments point to growth with stability, providing considerable com-
lessor’s plea fort to the central bank. On the flip side, although consumer price

Centre to extend Krishna Yadav

krishna.yadav@livemint.com
JSW’s acquisition of PNP
Port is seen as a strategic move
due to its favourable location on
scheme by a year
NEw dElhI
the West Coast. This provides
for SpiceJet
inflation has dropped below 5%, it remains well above the RBI’s
stated target and may move upwards again for the November-De-
cember period. Vegetable prices have corrected significantly, as
expected, but pulses and products are showing elevated momen-
insolvency tum on wider shortages. Also, we need more data cues regarding

J
SW Infrastructure, part of JSW direct access to major kharif sowing and output to gauge a possible shortage in key food
the JSW Group, on Mon- cargo centres such as Mumbai, Krishna Yadav inputs in the latter half of the fiscal year.
FROM PAGE 1 day said it acquired major- Pune, Palghar, Thane, Solapur, krishna.yadav@livemint.com The El Niño factor also casts a shadow over the calculations. The
ity stake (50% plus one Bhiwandi and Nasik. NEw dElhI government has already stepped in with bans on exports of certain
demand because large global share) in PNP Maritime Servi- The port’s connectivity to staples and permits on some to be imported. But benign Q2 infla-

I
brands were reducing invento- ces (PNP Port) in Maharash- the Central & Konkan Railway n some relief for SpiceJet, tion data will go a long way in achieving the FY24 annual inflation
ries. “I believe the demand sce- tra’s Raigad through its sub- network will also facilitate effi- the National Company Law outlook of 5.4%, giving the RBI more room to wait for previous rate
nario will improve as inventory sidiary, JSW Dharamtar Port. cient cargo evacuation for the Tribunal on Monday dis- hikes to fully percolate into the economy.
positions have corrected, and The company entered into a company. This acquisition missed a plea by aircraft lessor Similarly, in the GDP numbers, agriculture at 1.2% is at its lowest
brands will start normalizing share-purchase agreement JSW has recently acquired aligns with JSW’s plan to Willis Lease Finance Corp. to growth since FY19, and trade at 4.3% is at the lowest since FY21. A
their buying,” said Lalbhai, with SP Port Maintenance, a other strategic ports. BLOOMBERG enhance its network and initiate insolvency proceed- vibrant topline seems to be masking this slow growth down the
who is also vice-chairman, Arv- Shapoorji Pallonji Group com- streamline cargo operations in ings against the cash-strapped line. Therefore, it is imperative for the RBI to maintain a proactive
ind Fashion. “Currently, the pany, to acquire its holdings in value of PNP Port is around key industrial areas. airline. stand to facilitate a broader recovery.
prices are remaining benign. the strategic port. ₹700 crore. Currently, the JSW has been active in Three other lessors—Celes- In terms of overall liquidity, the tightness persists, eliminating
So, we are not expecting any The rest of the equity in the port has a capacity of 5 million acquiring strategic ports via its tial Aviation, Wilmington the need for any rate revision; in fact, liquidity deficit reached the
major rise in the next [few] Exports of cotton, fabric, yarn port will remain with the Nru- tonnes per annum (MTPA), subsidiaries. Recently, its sub- Trust, and Aircastle Ltd—have highest level (since December 2018) in late November, avoiding
quarters.” and handloom products rose pal Patil family, a company with potential expansion to 19 sidiary, Masad Infra Services similar pleas pending with the need for more open market operations. Official data pegs the
On the production front, 5.7% in April-October. BLOOMBERG executive said on the condi- MTPA,” the statement said, Pvt. Ltd, entered into a conces- NCLT to admit SpiceJet into liquidity deficit in the banking system at a peak of ₹1.74 trillion fol-
though, India has witnessed a tion of anonymity. adding that it intends to do this sion agreement with the Kar- insolvency over unpaid dues. lowing monthly GST payments and weekly bond auctions.
sharp decline in recent years. synonymous with unique According to a company in a phased manner. nataka Maritime Board, a unit NCLT has also issued a One may expect this to fluctuate to up to ₹2 trillion progres-
As per textile ministry data, designs, use of sustainable statement released on Mon- PNP Port, located in Shah- of the Government of Karna- notice to SpiceJet on a similar sively. It is generally perceived that RBI needs a minimal or even
annual production of cotton in fibres and superior quality, day, JSW acquired 10,00,001 baj, Raigad district, Maharash- taka, to develop an all- plea filed by business consult- a deficit in its efforts to contain inflation. But the expected inflows
2017-18 was 37 million bales making it a preferred choice for shares from SP Port Mainte- tra, is a vital operational port. weather, deep-water, green- ancy Raymach Technologies through bond redemption and the government’s accelerated capi-
(170kg each), which fell to 33.3 the western markets,” said nance, setting a 15-day dead- Situated about 20 nautical field port at Keni on a public- Pvt Ltd, which recently moved tal spending in the days ahead could bring liquidity pressures back.
million bales in 2018-19. After Anand Ramanathan, partner, line to complete the acquisi- miles from Mumbai Anchor- private partnership basis. the tribunal against the airline. Given all these, from a policy perspective, the factors outlined
seeing growth in 2019-20 (36.5 consumer industry leader, con- tion. However, the transaction age, it operates multi-purpose In November, JSW Infra- SpiceJet had allocated more above warrant stability, which means the central bank will likely
million bales), production fell sulting, Deloitte India, adding is subject to the completion of jetties, and has good road and structure received a Letter of than 48 million shares to nine maintain its rates and policy.
again to 35.25 million bales in that a ‘China Plus One’ strategy conditions outlined in the rail connections to industries Award for the development of aircraft lessors to clear out- For an extended version of this column, go to livemint.com
2020-21 and 31.12 million in adopted by global brands after agreement. in Maharashtra, Madhya Pra- the Keni greenfield port with a standing dues totaling (about Shanti Ekambaram is a whole-time director at Kotak Mahindra
2021-22. In 2022-23, produc- the pandemic and Indian sup- “The estimated enterprise desh, Karnataka, etc. total cost of ₹4,119 crore. $28 million). Bank Ltd.
tion of cotton was 34.75 million pliers’ product strength have
bales. And in the ongoing fiscal, opened up global strategic
the Cotton Association of India partnership opportunities for
estimates that production may Indian brands.
shrink to 31.6 million bales. These trends have been bol-
Cotton is one of the leading stered by support schemes and
Roche to buy obesity drugmaker Carmot for $3.1 billion
areas of economic activity for tax waivers from the govern-
livelihood, and plays a pivotal ment, which have helped tex- Bloomberg still in early stages of develop- cacy,” according to Roche. ing to the Bloomberg Billion-
role in the growth tile exporters feedback@livemint.com ment, the deal could lead to a One of the other two treat- aires Index. The firm co-led a
of the Indian Around six million scale up their pro- competitor to the likes of ments is a pill, which drugmak- $15 million financing round for

R
economy. Around farmers are duction, Rama- oche Holding AG agreed Wegovy and Eli Lilly & Co.’s ers see as the next frontier for Carmot in 2018 with health-
six million farm- engaged in cotton nathan added. to pay as much as $3.1 bil- Zepbound, which are fuelling obesity treatments because it care venture capital fund the
ers are engaged in production in India is actively lion for Carmot Thera- the growth of a weight-loss will be easier to take. The assets Column Group.
cotton produc- pursuing free peutics Inc., a developer of the market estimated to reach $100 could combine with another Roche has been seeking to
tion in India, and
India, and 35
trade agreements new type of weight-loss treat- billion by the end of the decade. experimental Roche drug that shore up its pipeline as a wind-
35 million farmers million worldwide to step up its over- ments that’s sparked a pharma Roche was among the first preserves muscle fall from treat-
grow cotton grow cotton all exports in industry gold rush. drugmakers to work on a treat- mass, solving one While Pfizer is ments and testing
across the globe. order to boost The deal for three experi- ment in the GLP-1 class—a cate- of the fallouts of working on a equipment dur-
The ministry is domestic growth. mental medicines in obesity gory that could fuel some of the existing treat- weight-loss pill ing the pandemic
also focusing on increasing However, high interest rates in and diabetes could push the biggest-ever blockbusters—but ments. The trio and AstraZeneca comes to an end.
footprints in technical textiles, western markets are dampen- Swiss drugmaker into competi- it halted the experimental med- could also have
which is a growing market. ing demand.
has signed a deal The deal follows
tion with European rival Novo icine’s development more than potential in other Roche’s agree-
Currently, India is exporting India has signed 13 regional Nordisk A/S, whose drug a decade ago after patients Roche agreed to pay $2.7 billion at first for closely held Carmot indications such with Eccogene ment to pay $7.1
technical textiles, including and free trade agreements with Wegovy has fuelled the Danish dropped out of a study due to and up to $400 million in milestones. BLOOMBERG as heart disease, for another billion for Telav-
medical apparels, to the tune of various countries such as pharma player’s growth into the side effects like nausea. Roche said. ant Holdings Inc.,
$2.5 billion and set a growth Japan, South Korea, countries most valuable firm in Europe. The field is more crowded European peers this year. medicine is a weekly injection Carmot had a developer of a
target of $10 billion in the next of the Association of Southeast Roche, which has come now, with Pfizer Inc. working Eli Lilly’s market value now that’s ready to enter the second been exploring public listing, promising therapy for inflam-
five years. Technical textiles are Asian Nations (Asean) and under pressure to improve its on a weight-loss pill and Astra- exceeds half a trillion dollars on of three stages of clinical tests, people with knowledge of the matory bowel disease.
engineered clothing products members of the South Asian pipeline with new medicines, Zeneca Plc signing a licensing hopes for its drug, while Novo meaning it’s still a few years matter said in September. Upon closing, Roche will
used by various industries. Association for Regional Coop- agreed to pay $2.7 billion at first deal with Chinese drug devel- Nordisk is close behind. away from reaching patients. Carmot’s financial backers obtain all of Berkeley, Califor-
Some examples of their usage eration (Saarc). India’s mer- for closely held Carmot and up oper Eccogene for another. Roche’s stock has dropped But existing data “suggests a include Horizons Ventures, the nia-based Carmot’s clinical and
are sports gear, PPE kits, masks, chandise exports to all these to $400 million in milestones, it Roche rose as much as 2.2% in more than 15% this year, giving best-in-class potential to private investment arm of pre-clinical assets. The transac-
aprons, etc. countries have registered said in a statement on Monday. Zurich trading. The stock is one it a value of about $228 billion. achieve and maintain weight tycoon Li Ka-shing, Hong tion is currently expected to
“Indian textiles have become growth over the past decade. Though Carmot’s drugs are of the worst performers among Carmot’s lead experimental loss with differentiated effi- Kong’s richest person, accord- close in the first quarter of 2024.
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 LIVEMINT.COM
‘Adidas hits a cricket
jersey masterstroke’
Suneera Tandon
suneera.t@htlive.com
NEW DELHI
T
he Indian arm of German
sportswear giant Adidas is put-
ting a strategic focus on key
segments such as running,
cricket and the lifestyle brand
Adidas Originals to amplify its market
presence in the country, Neelendra Singh
general manager for the India market, said
in an interview.
For instance, it sold over half a million
Indian team jerseys during the recent ODI
World Cup on the back of its partnership
with the BCCI as the official kit sponsor of
the Indian cricket team. Adidas has a net-
work of over 350 franchise stores and 75
company-owned stores in India. Edited
experts:
Has your
m INTERVIEW partner-
ship with
the BCCI
helped business on-ground?
We’ve been courting the opportunity
for some time to be able to be a part of the
cricket narrative. Then, early this year, we
got the opportunity to work with BCCI to
be the kit sponsor—it goes on for the next
five years. It covers men, women and
under-19; it covers the playing kit, travel
kit, training kit etc. The other interesting
part of the journey has been to create a
performance product that also looks good
on athletes. The third part was to mone-
tize the opportunity to make sure we cre-
ate a jersey culture while celebrating the
game, the product and the fan. The ₹999
pricing for the fan jersey was probably one
of our biggest masterstrokes i.e., to get the
pricing right. The players’ jersey, the most
authentic product, was priced at ₹4,999;
the authentic jersey has a replica jersey
which we priced at ₹2999. Under that, we
have a fan jersey at ₹999. The thesis was to
make it affordable and accessible so that
every Indian gets to wear it. We collec-
tively sold more than half a million jer-
seys—there is no comparison (to this
number); we touched that mark in early
November. We were able to experiment
with last-mile deliveries by selling them
on Blinkit and Zepto.
What are the top three focus areas for
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CORPORATE TuesDay, 5 December 2023
New Delhi 07
‘India markets similar to those in France’
Varuni Khosla ies Lafayette is also expected to
expand in Delhi’s Emporio
varuni.k@livemint.com
NEW DELHI mall—in a new construction
within the mall premises.
A
lbeit small, India has Epinay emphasized the
long been seen as a need for adaptation. She said
promising market for while most brands are consid-
luxury goods. But the market ering expanding to the coun-
has been a challenge to navi- try, it is those that are willing to
gate for many companies look- adapt to the local market, who
ing to enter. Bénédicte Epinay, will succeed. “The general sec-
CEO of Comité Colbert, retary of Louis Vuitton Moët
France’s official luxury associ- Hennessy (LVMH) when visit-
ation representing about 95 of ing India some years ago said
the world’s top luxury brands, that the market was very para-
said bureaucracy, high cus- doxical in some ways. The one
toms duties, and a lack of lux- Bénédicte Epinay, CEO of Comité Colbert. trend is that we will shift in the
ury infrastructure are major years to come, from a global
obstacles that are coming in turers, for example, which “There are a lot of obstacles in market to a market with local
the way of further develop- makes them use the ISI mark the way of the luxury market identities. This is where India
ment of the sector. on their footwear—would here, including the bureauc- has a very important role to
In conversation with Mint induce heavy costs to virtuous racy. For this the committee is play. India is so rooted in its
on the sidelines of the recently players like our companies, also having a dialogue with the past,” she said.
concluded luxury summit by without any positive effects for Ministry of Commerce in Epinay said India’s luxury
the The Indo-French Cham- Indian consumers. It would India,” she said. market is unique in many ways
ber of Commerce and Industry also be detrimental to the However, she noted that the and noted that Indian con-
(IFCCI) in the city, Epinay said development of new luxury launch of two new luxury malls sumers have a deep apprecia-
India’s rich cultural heritage, shops,” she said. in the bigger metros in the last tion for luxury which dates
growing economy, and While India has been a month alone—including back to the maharajas. “India
increasing smartphone pene- promising market for French Mumbai’s Jio World Plaza and has great knowhow in terms of
tration are key factors that can luxury brands for at least 20 the Phoenix Mall of Asia in luxury and there have been
Adidas in India over the next three to unlocks like a technology stack, e-com- drive the luxury market. “New years, the direction in which Bengaluru—have addressed many purveyors of luxury in
four years? merce, investments to open new stores, horizontal regulations like the industry could be headed India’s lack of luxury infrastru- the country. And that makes it
As India participates in more fitness, and bring new product lines. BIS—a certification manda- is a worry if these challenges cture to some extent. French very similar to France in many
running will come first. I see running as a There’s speculation on an association tory for all footwear manufac- are not addressed, she said. department store chain Galer- ways,” she said.
big lever to drive the sports cred for our with Bata...
brand. Both product innovation and the No, nothing is happening.
adoption of a fitness lifestyle will help run- Does Adidas need a local partner?
ning grow much faster in India. Adidas We have a very large distribution
Skechers outlines its plan for robust growth
‘
Originals is interesting. As India through our own retail stores, e-com-
adopts more fashion, I guess merce, franchise stores, and
Originals has a leg. Then I digital partners like Myntra,
would say—cricket, we’ve We collectively Flipkart, and Amazon. We Gaurav Laghate ment said on Monday. The India. He highlighted Skechers’ looking to do more significant
just got started in cricket. sold more than half have a bunch of wholesale gaurav.laghate@livemint.com Manhattan Beach, California- flexibility in investment, things in India,” he said.
Globally how does Adidas a million jerseys. partners like Shoppers Stop, mumbAI headquartered company, emphasizing a strong balance Skechers may look at
view India on invest- Lifestyle, Metro Shoes etc. I which opened its first ware- sheet that allows the company expanding the Mumbai facility.
We were able to
I
ments? don’t think a brand like Adi- ndia has remained among house and distribution centre to respond to market demands. “This facility is expandable by
Global is very interested, experiment with das needs more distribution the fastest-growing markets at Lodha Indus- “We as a com- almost 50% from what you see,
they clearly feel that India is last-mile deliveries to penetrate into India. I for American footwear com- trial and Logistics The firm plans to pany never preset it goes from 650,000 to a mil-
the market of the future. It’s think we’re very well pene- pany Skechers over the last Park, Palava near double down on the amount we’re lion square feet. We believe we
Neelendra Singh
one of our fastest-growing General manager for
trated. Physical distribution three years, prompting the Mumbai, spread investments in going to invest. will outgrow that in the near
markets globally. We’ve also India market, Adidas is not as interesting because company to double down on over 6.5 lakh squ- the country, We are very term. We know we need more
been able to bring more we can reach that distribu- investments in the country. are feet, is looking receptive to the facilities, we need them in
investments into India apart tion ourselves and through
banking on
The move comes as a grow- at manufacturing market, we built other places when we see how
from the subsidiary. We set up a global our franchise partners. When we partner ing middle-class is buying more apparel and foot- the growing the company with it grows here,” he added.
tech hub in India—we have about 1,000 with say Metro Brands they bring new branded footwear and clothing. wear here. middle-class a very strong bal- Skechers entered India in
plus engineers in Gurgaon; we also have a consumer sets to us. The company is looking at Talking to ance sheet with 2012 in a 51:49 JV with Future
back office in Chennai. We have a sour- They may be co-located with some of expanding its manufacturing Mint, David the capacity to Group. However, it decided to
cing capability in India as well. So India is our franchise stores or in a mall where we capacity to not just supply to Weinberg, COO of Skechers invest where necessary to grow buy out the partner’s stake in
now home to a subsidiary, a sourcing hub, have a flagship, but given how large India the local market but also to USA, said the company is com- our brand. Right now, we 2018 for ₹580 crore (~$100 mil-
a tech hub, and a back-office operation. is, new distribution brings new consumers export to other global markets, mitted to solidifying its posi- believe that India is the place lion at that time) to consolidate
We’ll keep investing in India and bring to us. the company’s top manage- tion as one of the top brands in that we look to the most, we’re its position in India.
 08 TuesDay, 5 December 2023
New Delhi MINT HEALTHCARE SUMMIT LIVEMINT.COM

India seeks ISO standards for India is now better prepared

to tackle future health crises
Ayush medicines, services Rhik Kundu
rhik.kundu@livemint.com
NEW DELHI

I
ndia, which saw its entire
healthcare system, including
The move is aimed to help traditional Indian systems of medicine gain global recognition both public and private sec-
tor, work together to tackle the
PHOTOGRAPHS BY SANJAY KARAN/ENSEMBEL covid-19 pandemic, is better
Subhash Narayan could be even higher but for several prepared to tackle any future
subhash.narayan@livemint.com Ayush products getting exported in the health emergency, the union
NEW DELHI ‘others’ category. As per industry esti- ministry of health and family
mates, Ayush exports already stand at welfare’s secretary Sudhansh

I
ndia is developing ISO standards
for the country’s traditional system
of medicines, with the Bureau of
Indian Standards (BIS) allowing
medicines and services provided
under the umbrella of Ayush ministry
to get international recognition and
market access to over 150 countries
across the globe, said Vaidya Rajesh
Kotecha, secretary, ministry of Ayush.
In his keynote address at the seventh
edition of Mint Healthcare Summit
held in New Delhi recently, Kotecha
said that BIS has already published 50
standards for traditional Indian system
of medicine, which the ministry is con-
verting to ISO standards. This will help
the medicines and the system to reach
a larger audience across the globe.
“We were sending our products
across the globe, but certain drug regu-
lators asked us to specify standards for
our products and were rejecting their
use even as supplements. So, we are
working with BIS and it has already
published 50 such standards, which we
are willing to convert to ISO standards,”
said Kotecha. “Once that happens, our
products would be allowed in more
than 150 countries.”
The Ministry of Ayush, through BIS,
is in the process of establishing a dedi-
cated technical committee for Ayush in
more than $6.5 billion but for the wrong
generic HSN code categorization.
“We are in touch with the depart-
ment of revenue to get the right HSN
code for traditional Indian medicines.
Once that happens, our exports num-
bers would show an increase. And with
other developments, the exports are set
to rise manifold in the coming years,”
Kotecha said.
As part of a global outreach plan, the
Ministry of Ayush has also signed
memoranda of understanding (MoUs)
with some foreign partner nations.
Vaidya Rajesh Kotecha, secretary, ministry of Ayush, delivering his keynote Moreover, there are 39 Ayush informa-
address at the Mint Healthcare Summit. tion cells in 34 countries.
Kotecha also said that the ministry of
the ISO. Also, the government is pro- (GDP) at 1%, which the government Ayush is collaborating with WHO, and
moting all Ayush facilities to get wants to take up to 5% by 2047 under has allowed the latter to set up the
accreditation from National Accredita- the Vision 2047 plan finalized by the WHO Global Centre for Traditional
tion Board for Hospitals and Health- government. Kotecha said the size of medicine in India. “This is very signifi-
care Providers (NABH). Ayush educa- Ayush manufacturing and services is at cant because it is the first UN office
tional institutes are a staggering ₹3.6 tril- established in any developing country.
also being promoted lion ($43.4 billion) and Before that, these offices were only in
to get NAAC accred-
ited, the secretary said.
HEALTHCARE has the potential to
grow further as new
developed countries. Because of this
coming to India, we are able to provide
SUMMIT 2023
About 153 Ayush products and pro- leadership to the world in the area of
hospitals and 40 pan- cesses get adopted in traditional medicines. A lot of work is
chakarma clinics have already got such the country. happening with WHO to promote
accreditation. With regard to exports of Ayush Ayurveda, Unani, etc., and the collabo-
The Indian traditional system of product and services, the official num- ration is also allowing use of traditional
medicines is already a big contributor ber stood at $1.54 billion (₹11,400 crore) systems among modern medicine
to the country’s gross domestic product in 2021, Kotecha said, adding that this practitioners,” the secretary said.
Pant said at the Mint Health-
care Summit 2023 last Sudhansh Pant, secretary, ministry of health & family welfare.
Wednesday.
“If there has to be some zoo- was launched by the Prime of the country, these kinds of
notic disease or some outbreak, Minister. And today we realize facilities were offered at the pri-
we should be much better pre- why it has been a game mary level,” Pant said. “Today
pared in terms of infrastruc- changer,” he said. the number of these Ayushman
ture, in terms of human resour- “At that point in time, the Arogya Mandirs is more than
ces, to tackle any sort of health scheme had two main pillars. 1.62 lakh across the country.
emergency if it arises,” Pant The first one was the Aayush- We have about 2.7 lakh gram
said. man Bharat health and well- panchayats. So, on average,
“This is an occasion to ness centre, which has now every 1.5-2 gram panchayats
remember how, between 2020 been renamed the Ayushman will have this primary level
and 2022, the Arogya Mandir. care,” he added.
entire healthcare Pant said a huge The second pillar Pant said over 12 crore fami-
system, whether it paradigm shift is was the PM Jan lies are today covered under
be the govern- happening in the Arogya Yojana PMJAY (Pradhan Mantri Jan
ment, public healthcare (PMJAY), the Arogya Yojana), translating to
health care sys- a s s u r a n c e about 55-60 crore Indians, thus
system, especially scheme,” he said, making it the world’s largest
tem or private
players, equip- in the public adding that the health insurance scheme.
ment suppliers, healthcare space Indian medical “Poor people who could never
private hospitals, system is moving even dream of entering into
drug manufactur- from taking cura- good private sector hospital
ers and professionals, worked tive measures to preventive can now go there and without
to tackle the pandemic,” he measures. spending a penny can get
added. “For the first time, 12 basic treated for all kinds of serious
Pant said a huge paradigm screenings and diagnostic facil- ailments,” he said, adding that
shift is happening in the Indian ities were provided at that level, in five years of its implementa-
healthcare system, especially in including NCD screening for tion, about six crore hospitali-
the public healthcare space in diabetes and hypertension, and sations have taken place
the rural areas. “In 2018, the even basic cancer screening. and₹75,000 crore has been
Ayushmann Bharat scheme For the first time in the history reimbursed to hospitals.

Health insurance in India
is a dumbbell-shaped
market. The issue is the
missing middle in the urban
areas. Close to about 300
million people in India are
uninsured.
(Clockwise from top left:) Gautam Chopra, CEO, BeatO; ARYAMAN TANDON
MANAGING PARTNER & CO-FOUNDER,
Shashank ND, CEO, Practo; Prashant Tandon, CEO, Tata 1mg; and PRAXIS GLOBAL ALLIANCE
Ashish Venkataramani, partner, Eight Roads Ventures
To address affordability,
access and standardized
outcomes problem, we need
quality at scale. You can’t
depend on hospitals alone...
Out-of-hospital care needs to
be part of patient care.
VIVEK SRIVASTAVA
CO-FOUNDER & CEO OF HCAH INDIA
If you build scale, you can
bring down costs. The use of
technology can lead to new
solutions. This can bring down
costs of care... Then there is
the [issue of] penetration of
healthcare insurance as well.
OM MANCHANDA
MANAGING DIRECTOR, DR LAL PATHLABS
Ayurveda has a lot to offer in
terms of home care. A standard
model for home care would be
great...We have treated 17 lakh
patients—these are success
stories of Ayurveda.
TANUJA MANOJ NESARI
DIRECTOR, ALL INDIA INSTITUTE OF
AYURVEDA
The availability of trained
manpower is one of the
biggest problems [in the
healthcare industry in our
country]. Despite this, India
does 75 lakh cataract surgeries
in a calendar year.
MAHIPAL S SACHDEV
CHAIRMAN & MANAGING DIRECTOR,
CENTRE FOR SIGHT

Data aside, trust is

imperative for the Be wary of China flu, says AIIMS dean Krishna Yadav
I think the
opportunity of
vertical healthcare, as
such as influenza, mycoplasma
healthcare sector krishna.yadav@livemint.com
NEW DELHI
pneumoniae, respiratory syn-
cytial virus (RSV), and SARS-
CoV-2—the virus responsible
I call it, rather than the
horizontal, is that you
can grow at a much
Shouvik Das

“Healthcare is all about the
shouvik.das@livemint.com trust in a brand—be it digital,
NEW DELHI physical, or phygital. An
important aspect of trust is
I
ndia must worry about the for covid-19. These alarming faster pace. You can
ongoing respiratory sick- scenes from China have put
ness in China, warns Kaus- health authorities worldwide create your presence
hal K. Verma, dean (research) on high alert. at a much faster pace,

D
espite increasing pro-
liferation of data that is
slowly leading to a
transformation of various sub-
sets of the healthcare industry,
consumer and doctor trust will
remain imperative. This will
forever segregate the health-
tech industry from other tech-
driven sectors, said a panel of
experts at the Mint Healthcare
Summit, 2023.
Prashant Tandon, chief
executive of 1mg, the Tata-
that it takes time,” he said.
A ‘phygital’ experience,
Shashank added, will “thus
need patience to be built up.”
“Doctors don’t need to be
explained the basics of an
online consultation any
longer, or be taught how to
make prescriptions online.
Periods such as the covid-19
pandemic have ensured
adoption of technology by
traditional stakeholders of
the healthcare ecosystem.
at All India Institute of Medical
Sciences (AIIMS). Speaking at
the seventh edition of the Mint
Healthcare Summit, Verma
expressed concern about the
global nature of the threat due
to increased travel. He noted
that covid-19 rapidly spread
from Wuhan within just a
month, underscoring the wor-
risome pace of transmission.
Despite the concerns,
Verma assured that India is
well-prepared to handle future
Kaushal K. Verma, dean (research), All India Institute of Medical
Sciences.
during the first wave, but cau-
tioned against complacency
witnessed in the damaging
second wave of covid-19.
Verma underscored the
dren in China. Hospitals and
wards in many Chinese cities
are running at full capacity,
receiving more than 9,000
patients a day, and have been
The World Health Organi-
zation (WHO) also expressed
concerns about clusters of
pneumonia in children in
China, and sought more infor-
mation from the country’s
health authorities. However,
experts suggested that there is
little evidence to support the
idea of a new virus causing
these infections.
In response to the situation,
the Indian government has
directed all states and Union
you can get better
return on invested
capital at a much
faster pace and more than anything else, you can
fulfil the demand supply gap, in a much faster
pace too. And now I see, that beyond just the
vertical creation of infrastructure and going in
and creating these small format hospital chains,
you start putting technology on top of that and it
becomes a massive big enabler.
VISHAL BALI
EXECUTIVE CHAIRMAN, AH HOLDINGS

backed medicine delivery and
healthcare services platform,
said, “What we’ll see more of is
that the entire patient jour-
ney—be it preventative or
curative healthcare—will
become omnichannel. There
will be requirements for effi-
cient digital healthcare access.
As a business, we’re looking at
integrating everything that a
patient requires, and whether
that can be done over a user’s
life cycle through condition
management, outcomes ori-
entation and more.”
However, Shashank ND,
chief executive of Practo, said
that while such an evolution of
the very nature of healthtech
services will play out over
time, the timelines are signifi-
cantly different from other
tech-driven sectors—where
transformation and customer
acquisition happen faster.
Practo is a doctor consultancy
and healthcare services plat-
form.
Trust building will happen
with time—neither can doc-
tors exist in silos, nor can dig-
ital healthtech firms. But dig-
ital adoption is clearly hap-
pening,” said Gautam
Chopra, chief executive of
healthcare advisory platform
BeatO.
1mg’s Tandon also con-
curred that data proliferation
has already begun. “The data
game has just started, and this
is a space where India’s isn’t
copying global models—we’re
creating our own data-based
AI/ML models based on our
own needs, to create a better
healthcare experience for
patients that is personalized,
preventative and predictive,”
he added.
All of this, said Ashish Ven-
kataramani, partner at venture
capital firm Eight Roads Ven-
tures, has led to a significantly
larger opportunity than previ-
ously expected by healthtech
entities.
pandemics, having learned
valuable lessons from the
three waves of covid-19. He
acknowledged the initial suc-
cess in containing the virus
Covid essentially
made people panic
and buy health insurance
... Post-covid, many of
them did not renew.
BHABATOSH MISHRA
DIRECTOR OF PRODUCT,
UNDERWRITING & CLAIMS,
NIVA BUPA HEALTH INSURANCE
importance of a resilient
healthcare system to effec-
tively manage such challenges.
There is a sudden rise in res-
piratory illness among chil-
There is lack of awareness
among people about
health insurance. We
need to shift from this
mentality. India faces low
insurance density.
MAYANK GUPTA
COO & CO-FOUNDER, ZOPPER
operating at maximum capac-
ity for the past two months.
China’s National Health Com-
mission, attributed this illness
primarily to known pathogens
For health insurance
distribution, we shouldn’t
solely rely on physical
infrastructure... digital
infrastructure can enable
higher penetration.
RISHI MATHUR
CHIEF STRATEGY OFFICER,
CANARA HSBC LIFE INSURANCE
Territories to review hospital
preparedness. The health
ministry is closely monitoring I feel, insurance
respiratory illness cases in firms will in
China.
future provide
concessional rates for
mediclaim premiums
to make healthcare
affordable to all
sections of the
society. Premiums
have become so
costly that the
middle-class and
poor people are struggling to get insurance
coverage... Since the quantum of insurance cover
under Ayushman Bharat scheme is lower, a lot of
While most of us are people are hesitant about choosing this scheme.
focused on sales and People have to change their attitude. Ayushman
penetration, we also need
Bharat doesn’t have to change; our corporate
to look at what the
mindset has to change to help the poor.
customer is experiencing
at the time of claim... UPASANA ARORA
CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR,
SHILPA ARORA YASHODA SUPER SPECIALITY HOSPITAL, KAUSHAMBI
CO-FOUNDER & COO,
INSURANCE SAMADHAN

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 LIVEMINT.COM NEWS WRAP TuesDay, 5 December 2023
New Delhi 09

NEWS
48
THE PERCENTAGE of Indians who said
11
THE NUMBER of hikers who died after a
₹3.25 tn
THE BUDGETRY allocation requested by
₹350 cr
THE GLOBAL box office collections of
₹1,544 cr
THE PROJECTED cost of the Bikaner-III
IN they will increase their travel budgets in volcano erupted in Mount Marapi on the ministry of road transport and highways Ranbir Kapoor’s action thriller Animal, Neemrana-II Transmission project won by
NUMBERS 2024, according to a survey by
ACKO and YouGov Travel.
island of Sumatra in Indonesia on Sunday.
12 are still missing.
for FY 2024-25, up 25% from the previous
year, as it aims to limit market borrowings.
including over ₹200 crore in India in three
days of its release.
Tata Power. The 340-kilometre corridor is
expected to be commissioned in 2 years.

HOWINDIALIVES.COM

‘Corp bond market THE CYCLONE EFFECT ONGC to begin oil

to double by 2030’ production in May

T S
he corporate bond market growth is tate-controlled Oil and Natural Gas
expected to gather pace in the coming Corporation (ONGC) will in May next
years, and its overall size is likely to more year start commercial production of
than double to over ₹100 trillion by March crude oil from its much-delayed flagship
2030, a report said on Monday. Domestic credit deep sea project in Krishna Godavari basin,
rating agency Crisil said push to capital the Rajya Sabha was informed on Monday.
expenditure, attractiveness of the infrastructure In a written reply to a question, minister
sector and also the financialisation of savings of state for petroleum and natural gas
will be the key drivers for this growth. Rameswar Teli said ONGC’s KG basin
It said in the last five years till March 2023, the project, KG-DWN-98/2, is in a “challenging
corporate bond market grew 9% per annum to geology”.
₹43 trillion, and is likely to more than double to Delays have occurred due to multiple
over ₹100-120 trillion by March 2030. challenges and issues in actual project
The agency’s senior director, Somasekhar implementation such as subsurface geological
Vemuri, said regulatory interventions are also issues, shifting of well locations and surface
helpful in the growth. The growth in capex will facilities/processing platform, delays and
be driven by the very high capacity utilization, disruption in project supply chain for vendors
healthy corporate sector balance sheets and spread across multiple countries due to covid-
strong economic outlook, the agency said, 19 pandemic and challenging weather
adding that the period till FY27 alone will see conditions. PTI
investments of over ₹110 trillion. PTI

A view of the inundated runway of the Chennai airport after Cyclone Michaung triggered incessant rains in parts of Tamil Nadu on Monday. Parts of
Andhra Pradesh were also witness to heavy rains after Michaung intensified into a severe cyclonic storm. PTI

CEO Vijay Shekhar Sharma said Paytm saw nearly

ZPM wins 27 seats, set to form CEO Daniel Ek said that Spotify is still spending
too much, citing an economic slowdown. REUTERS
11.8 mn users routed to its product via ONDC. MINT

Paytm targets 10 mn the government in Mizoram Spotify to cut costs

with 17% layoffs
merchants on ONDC
S
potify Technology SA is cutting 17% of its

O
ne97 Communications, which owns
digital payment brand Paytm, plans to
bring 10 million merchants by 2025 on
the government-backed Open Network for
Digital Commerce platform (ONDC), a top
company official said. Paytm founder and CEO
Vijay Shekhar Sharma said that the company has
seen close to 11.8 million customers routed to its
workforce, marking at least the third time
The ruling Mizo National Front got only 10 seats; BJP won two, Congress secured one that the streaming service has carried out
mass layoffs this year in an effort to shrink costs
and drive profitability.
PTI submitted his resignation, officials said. Lalchamliana did not contest the elections. Roughly 1,500 jobs are being eliminated, a
feedback@livemint.com In the 2018 assembly elections, the MNF had Lalduhoma, the 73-year-old ZPM chief, first spokesperson said.
AIzAwl won 26 seats. This will be the first time in the his- contested the Mizoram assembly polls on a Con- The streaming audio giant is on pace to add
tory of Mizoram that the north-eastern state will gress ticket in 1984, but lost to People’s Confer- more than 100 million users this year—its

product from the ONDC platform.
“Paytm’s ecosystem is built around small
merchants and the mission that we are on is to
help small merchants and small businesses
become part of the mainstream economy. We
did it by payments. Everybody to whom we have
given new payments wants to have new
customers. That is when ONDC comes. We plan
to bring 10 million merchants on ONDC before
2025 ends,” Sharma said. He was speaking on
the sidelines of an ONDC event.
ONDC is a government-backed platform
which is open for all e-commerce stakeholders
to onboard their service and utilize services of
firms like Paytm, PhonePe’s Pincode, and
hyperlocal e-commerce firm magicpin present
on the platform.
T
he Zoram People’s Movement (ZPM) be ruled by a non-Congress and non-MNF gov- ence party nominee Lalhmingthanga by a margin biggest year yet—and reported a rare profit last
stormed to power in Mizoram by win- ernment. of 846 votes. The same year, he contested the Lok quarter.
ning 27 of the 40 Assembly seats on Nine of the 11 MNF Sabha polls as a But chief executive officer Daniel Ek said in a
Monday. The ruling Mizo National ministers who con- Congress candidate note to employees on Monday that Spotify is still
Front (MNF) won 10 seats, while the tested the polls lost. Lalduhoma, who defeated his MNF and was elected spending too much, citing an economic
Bharatiya Janata Party won two and the Congress Prominent among rival J Malsawmzuala Vanchhawng by unopposed. slowdown and the rising cost of capital.
won just one seat, according to election commis- them are deputy The ZPM leader “We still have too many people dedicated to
sion officials chief minister and 2,982 votes, could become the next resigned as state supporting work and even doing work around
Prominent ZPM winners include Lalduhoma, MNF candidate chief minister of the state Congress president the work rather than contributing to
who secured the Serchhip seat defeating his MNF Tawnluiam who lost and withdrew his opportunities with real impact,” Ek said in the
rival J. Malsawmzuala Vanchhawng by 2,982 to the ZPM candi- primary member- statement. BLOOMBERG
votes. Lalduhoma could become the next chief date in Tuichang, health minister and MNF candi- ship from the party in 1986, after he was accused
minister of the state date R. Lalthangliana who was defeated by ZPM’s of conspiring against then chief minister Lal Tha-
MNF chief Zoramthanga, who is the current Jeje Lalpekhlua in South Tuipui and rural develop- nhawla and some cabinet ministers.
chief minister, lost to ZPM’s Lalthansanga by
2,101 votes, the election commission said. He later
ment minister Laruatkima who lost to ZPM nomi- Lalduhoma, a former police officer, had earned
nee Lalnghinglova Hmar in Aizawl West II, accord- the dubious distinction of being the first MP to be
KKR head expects
PTI called on governor Hari Babu Kambhampati and ing to the Election Commission. Home minister disqualified under the anti-defection law.
deals to accelerate

K
KR & Co.’s global head of infrastructure,
Himachal ranks Raj Agrawal, said dealmaking in the sector
ReNew, ADB ink green initiative deal will probably rise next year as capital
high in joblessness markets thaw. “Inflation and rising interest rates
exacerbated a valuation gap between buyers and
investment value of more than $5.3 billion sellers and froze many traditional credit

H
imachal Pradesh has witnessed the
highest overall unemployment rate of
33.9%, followed by Rajasthan at 30.2%,
among the age group of 15 to 29 years in cities
during July-September 2023, according to the
Periodic Labour Force Survey (PLFS).
The PLFS data of the National Sample Survey
Office also revealed that unemployment among
the 15-29 age group in urban areas was high
among females at 49.2% in the July-September
quarter of this fiscal year as compared to 25.3%
among males in Himachal Pradesh.
In the case of Rajasthan, the joblessness in
females in cities was high at 39.4% in the quarter
as against 27.2% in males. Jammu & Kashmir
ReNew CEO Sumant Sinha signed the MoU
at COP28, in Dubai.
between 2023 and 2028. The
memorandum of understanding was
signed at COP28, Dubai by ReNew’s
founder, chairman and CEO Sumant Sinha
and Suzanne Gaboury, director general,
private sector operations department,
Asian Development Bank,” said a company
statement.
The MoU identified potential
investments in renewable energy projects,
manufacturing, carbon offset projects,
green hydrogen, with the aim of jointly
supporting sustainable energy transition, it
MINT said.
It added that the MoU is expected to
markets,” Agrawal wrote in a letter to investors
seen by Bloomberg News. Assets with
“entrenched customer bases, strong market
positions, and contractual and regulatory
protections” can provide both a cushion against
losses in uncertain economic times as well as a
way to buy exposure to secular trends with high
growth potential, he wrote. KKR has leaned on
its ability to be creative and flexible as it seeks to
strike deals amid a challenging macroeconomic
Adani Group founder Gautam Adani now has a environment, Agrawal said in an interview.
$70.3 billion fortune. MINT The firm’s infrastructure arm aims to make
equity investments of between $1 billion and $5
Adani’s wealth billion. BLOOMBERG

swells by $10 billion

R
also reported a high rate of joblessness at 29.8%
in the age group in cities. In the case of Jammu &
Kashmir, unemployment was high among
females at 51.8% in the quarter compared to
19.8% among males in the period in cities. The
data showed that the overall unemployment in
the country was 17.3% in the 15-29 age group in
eNew Energy Global Plc has signed a
memorandum of understanding
(MoU) with the Asian Development
Bank (ADB) for debt financing of over $5.3
billion for climate change mitigation and
green energy projects.
“The MoU covers projects with
draw interest from additional international
investors to participate in financing long-
term debt for significant renewable energy
IT sector growth to
A
infrastructure projects. The tie-up is also stocks rally in firms owned by Gautam
expected to help ADB achieve its funding
ambition of $100 billion in green energy
Adani has added $10 billion to his net
worth in the past week after the top court inch up to 6%: Icra
projects by 2030. RITURAJ BARUAH concluded hearings in a lawsuit where the

cities as per the current weekly status.
Sebi asked to pay ₹5 lakh for failing to unfreeze Kirloskar shares
PTI markets regulator is probing wide-ranging
allegations of corporate malfeasance against the
conglomerate.
The founder of the Adani Group, whose
stocks were battered earlier this year after a
bombshell shortseller report in January, now
has a $70.3 billion fortune, according to the
D
omestic rating agency Icra on Monday
said the IT sector’s revenue growth will
inch up to over 6% in 2024-25 from 3-5%
estimated for the ongoing financial year. The
slower growth will have an impact on the hiring
plans, the agency said, adding that staff addition
will continue to remain “muted” for the next 2-3

I
n a relief to the Atul and Rahul Kirloskar faction, the Securities Appellate Bloomberg Billionaires Index which currently quarters. The $250-billion industry grew by
Tribunal (SAT) on Monday directed the markets regulator to pay ₹5 lakh for ranks him among the world’s 20 richest 9.2% in FY22-23.
failing to unfreeze their shares in Kirloskar Industries Ltd. people. Most of this gain was on Tuesday—the The muted hiring outlook is the result of a
In October 2020, two Kirloskar brothers—Atul and Rahul Kirloskar—were first trading day last week after the Supreme weak demand scenario and companies will be
penalized by Sebi through two separate orders, alleging insider trading in Court reserved its verdict on the probe saying it focusing on utilizing the capacity in the past and
shares of Kirloskar Brothers Ltd (KBL). won’t take scathing media reports on the improving the overall utilization levels, the
On the other hand, Kirloskar Industries Ltd (KIL) was facing charges for conglomerate as the “gospel truth.” agency said. It explained that the
failing to adhere to listing regulations. Under these orders, the Securities and The final court ruling is awaited. macroeconomic challenges in the biggest
Exchange Board of India (Sebi) restrained the three Kirloskar brothers from The ports-to-power conglomerate added $12 markets of the US and Europe have caused a
accessing the capital market for a specified period. The order was then billion to its market value on Tuesday last week, slowdown in demand. The increased hiring in
challenged by the Kirloskars before the Securities Appellate Tribunal seeking a making it the best day for the group since the recent past inflated the overall wage bills of
stay on the effect and operation of the order. KIL is controlled by younger Hindenburg Research’s 24 January report that companies and impacted the operating profit
brothers Atul and Rahul Kirloskar, while Kirloskar Brothers Ltd is majority accused it of accounting fraud and stock price margins, but the same is likely to improve over
owned by Sanjay Kirloskar who was also penalized under a separate order for Two Kirloskar brothers were penalized by Sebi through two separate manipulation. The Adani Group has repeatedly the medium term as the wage costs stabilize and
alleged violation of insider trading norms. PRIYANKA GAWANDE orders, alleging insider trading. MINT denied these allegations. BLOOMBERG employee utilization goes up. PTI

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 10 TuesDay, 5 December 2023
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THE BIG THREAT TO INDIA’S

demoGRaPHIc dIvIdend
Many economies have cracked the code of getting women to work in time. India must hurry up

File photo of women workers at a watch factory located in Hosur, Tamil Nadu. Across the world, manufacturing has provided women steady income earning opportunities and a secure environment. MINT

T.N. Hari real participation of women in the work-
feedback@livemint.com force. For instance, whether a woman
beNgAluru doing unpaid work chooses to say if she is
actively looking for work or not would
nation is the continued strong patriarchal
culture in these two states while the other
five northern states have probably made
positive strides on this front, making it
came to an end and the men began return-
mint KEY NUMBERS
SHORT ing home from the battlefront, this trend
STORY How does India's workforce looks like? lost steam and women were back to being
...and what is the unemployment rate? confined at home. But the feminist move-

I
n a short press release, dated 13 Octo- alter the FLFPR numbers. For a variety of
ber, the Ministry of Women and Child
Development announced that the
Female Labour Force Participation
Rate (FLFPR) for 2022-23 had
improved significantly over the previous
year by 4.2 percentage points to 37%. The
trend, over the last five years (24.5%,
30.0%, 32.5%, 32.8%, 37%) has been noth-
ing short of a miracle.
Some states that were laggards have
made significant progress and some of the
reasons, in some states, more women
doing unpaid work may say they are look-
ing for work than in some other states,
thus inflating the FLFPR percentage in
the former. Further, those who are self-
employed or underemployed (and not
looking for a salaried job) are not consid-
ered part of the labour force and hence,
increase in micro-entrepreneurship over
a period could artificially depress FLFPR.
Further, the surveys to arrive at these
easier for women to work or at least
actively seek work. In states with a strong
culture of patriarchy, women stepping out
of the home has traditionally been viewed
Female Labour Force Participation
as something undesirable and affecting
the prospects of marriage. Decades of
reinforcement of this attitude has resulted
in public spaces and work places being
totally dominated by men, and therefore
unsafe for women.
The FLFPR numbers in almost all
states are higher for the rural segment
Women
WHY
India has made great strides in
Rate (FLFPR). However, FLFPR is
not a fool-proof indicator of
the real participation of women
in the workforce.
NoW
ment had picked up momentum and in
Employed (A)
1964, after nearly 200 years of independ-
ence, America passed the civil rights bill by
which any form of discrimination based on
36
gender, race, colour, religion, or national
63 (in %)
origin was outlawed. In fact, even in 1964,
the powers given to enforce the provisions
Unemployed,
and not 1 of the Civil Rights Act were weak, though
available for Unemployed,
but available these were supplemented during later
work (C)
for work (B) years. Passage of this Act was not easy and
there was considerable opposition in both
Unemployment rate = B / (A+B) = 3.0%

Labour force participation rate (A+B) = 37.0%

the Senate as well as the House of Repre-
leaders have slipped. The report shatters statistics are conducted by temporary than for the corresponding urban seg- sentatives. From time to time, there were
some long-standing myths and offers staff who may not be sufficiently trained ment. As per a recent article in The Hindu To boost women participation attempts to confine women to homes
Men
insights that can help shape policy inter- to understand these fine distinctions and Business Line, across India, on an average, further, India has to emphasize under the guise of family values.
Unemployed, Employed (A)
ventions for each state. assure that the data they gather is not the agriculture sector employs almost on education. The goal for and not Despite such a late start, and all the
In the context of work and employment, distorted by these subtleties. Fortu- 80% of all economically active women. every state in India should be available for 21 obstacles along the way for change, the
work (C)
there are several terms that are tossed nately, these vagaries are unlikely to One of the most under-reported trends is to get to where Kerala is today progress in the western world on this has
around, and it would be helpful to quickly alter either the overall trends or the that agriculture, which is the least pro- in the next five years. 2.6
(in %) been rapid and deep.
understand what these are, how they are underlying insights. ductive undertaking, is fast becoming
measured, and their uses and limitations. women dominated in India. However, Way forWard for INdIa
AND 76.4
LFPR is a ratio of the number of individ- NoN-obvIous INsIGhts
uals who are part of the labour force to the
number of individuals in the working age T he common belief has been that
FLFPR numbers were higher in the
farms with infrastructure that makes agri-
culture productive, like irrigation and
mechanization, continue to be run by Laws regarding rights to property,
Unemployed,
but available
for work (B)
A lot has been said and written about
India’s demographic dividend. If we
quantify demographic dividend as the
(greater than 15 years of age). A person is south and the west in comparison to the men while women operate the least pro- safety at the workplace, gender Unemployment rate = B / (A+B) = 3.3% ratio of the population in the employable
considered to be a part of the labour force north and the east. However, the gov- ductive parcels of land that are small and pay equality, social reform are age (say 15-59 years of age) to the total
Labour force participation rate (A+B) = 79.0%
if she/he is either ernment of India’s dry. Large and well irrigated farms are far essential. Governments should roll population, it would become evident that
out the red carpet for women Note: 15+ age group Data for 2022-23
employed or actively annual report of the fewer than small and unproductive hold- time is running out and India would enjoy
looking for work. Only Two economists have found periodic labour force ings. Men from families with such unpro- micro entrepreneurs. Source: Periodic Labour Force Survey
this dividend for at best two more decades
SARVESH KUMAR SHARMA/MINT
those actively looking an inverse correlation survey (PLFS) for ductive land holdings often migrate to after which we would be confronted with
for work are considered 2022-23 shatters this towns in search of work leaving their the problem of supporting a growing seg-
‘unemployed’ and those between per capita income myth and throws up womenfolk managing the farm. combined with low population, resulted CaN thINGs Get better? ment of senior citizens. It is inevitable that
that are idle, under-em-
ployed or self-em-
and FLFPR—as family many surprises.
Despite higher liter- GeNder pay Gap
in a sharp decline of the labour force
engaged in agriculture across the devel- L ow FLFPR is an outcome of a myriad
socio-economic factors, many of
every country, with growing prosperity,
would eventually get to this state at some
ployed, but not looking incomes rise, women tend to acy rates and women
for work, are not consid- empowerment indices,
ered unemployed. The drop off from the work force. the simple average of
G ender Pay gap may not be a very sig-
nificant problem in the world of the
public sector and progressive private
oped world. Increase in agricultural pro-
ductivity and increased urbanization
have had a strong correlation. The
which are rooted in history and culture.
No change of significance can be driven
without first understanding the causal
point of time. Europe and Japan have
grown old. The US and China are rapidly
getting there. Fortunately for them, they
‘unemployment rate’ is FLFPR for the five companies, but it is a serious problem in decline in the share of the labour force in factors followed by sharply targeted inter- had cracked the code of getting women to
the ratio of the number of unemployed southern states is a whopping 13 percent- most other enterprises. When the gender agriculture hasn’t been as sharp in coun- ventions. It is evident that the levers for work in time. This problem would get
individuals to the sum of employed and age points lower than that of the five pay gap is stark, there is no incentive for tries like India. Lack of alternative driving improvement are different for exacerbated in countries where the
unemployed individuals. northern states of Himachal, Rajasthan, women to come and join the labour force. employment opportunities in manufac- every state. The progress made by the five FLFPR percentage continues to remain
Measured this way, the unemployment Chhattisgarh, Madhya Pradesh, and This is probably one reason why in the turing and the limited number of jobs in northern states is worthy of praise, and low. It is therefore important to address
rate would offer a false sense of comfort Jharkhand (41% versus 54%). The average five southern states, despite very high services has also played a role in contin- offers hope that change is possible even in this issue with a sense of urgency.
and hide the reality that there could be a for four of the seven north-eastern states levels of literacy and women empower- ued underemployment and low produc- short timelines. Clearly, something has Creating a steady stream of supply
large number of individuals who are is 57%. There are only four states with less ment (on all other measures of women tivity in agriculture. been working well for them and probably needs emphasis on education. The goal
either idle or underemployed. They could than 25% and these are Assam, Bihar, Har- empowerment except gender pay gap), In the absence of a robust manufactur- that has got to do with good governance for every state in India should be to get to
be so for various reasons, a loss of hope yana and Delhi. the FLFPR is very disappointing. ing sector, construction has been one of and continued social reform by successive where Kerala is today in the next five
being one of them; they have simply given Delhi is the lowest at 14.8%. Quite the biggest employment-generating governments. Probably, the five southern years. Make in India is beginning to work
up looking out for a job. obviously, there is no straightforward MIssING MaNufaCturING industries, but it has never been a good states need to address gender pay gaps finally through a combination of policy
And this percentage is far higher for explanation and many factors are at
women than men. The key highlights of play. In a research report, two young
the 2023 data at a national level have been economists from St. Xavier’s College,
A cross the world, manufacturing has
typically provided women steady
income earning opportunities and a
substitute for manufacturing in terms of
providing steady and safe employment,
especially for women. The jobs are mostly
seriously to draw more women into the
labour force.
The history of women empowerment in
push around incentives and imposition of
non-trade barriers on imports. A large
pool of educated and skilled women
captured in the accompanying chart. Mumbai, have discovered an inverse secure environment. Among the top 10 temporary, unsafe with no secure perim- other parts of the world also indicates that would help accelerate the manufacturing
The unemployment rates for both men correlation between per capita income economies in the world, India is probably eter, weakly regulated, and the condi- things can get better quickly. Cambridge sector. Laws regarding rights to property,
and women are the same—3%—but the and FLFPR, which means that as family the only country that missed this bus and tions and pay are highly discriminatory did not grant degrees to women as late as in safety at the workplace and in public spa-
point to note is that as compared to men, incomes rise, women tend to drop off leapfrogged into services. towards women. 1948 and Harvard Medical School admit- ces, gender pay equality, social reform are
three times the number of women are not from the work force reinforcing the Agriculture has historically been a Women in construction have almost ted a woman for the first time in 1945. It essential to move the needle. And finally,
looking for a job. hypothesis that working women in India declining enterprise. As per a study by been relegated to carrying loads on their was only during World War II that for the governments at the centre and the states
have mostly played the role of supple- Deloitte, in 1800 in France, the share of heads that men refuse to. Visit any con- first time in the western world, women should roll out the red carpet for women
Not WIthout flaWs menting family incomes. the labour force working in agriculture struction site and this deeply discrimina- were pulled out of homes on a large scale micro and small entrepreneurs.

F LFPR is a reasonably accurate but not However, Bihar and Haryana run coun-
a totally fool-proof indicator of the ter to this narrative and a possible expla-
was nearly 65%. In 2012, that number was
under 5%. Mechanization of agriculture,
tory and ubiquitous practice would
become evident.
and thrust into jobs that were originally
exclusive to men. However, after the war
T.N. Hari is an author and founder of
Artha School of Entrepreneurship
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 LIVEMINT.COM MINT MONEY TuesDay, 5 December 2023
NeW Delhi 11

‘A certified financial planner can POWER

POINT
easily earn ₹10-15 lakh per year’ A N S H U L G U P TA

We welcome your views and comments at

mintmoney@livemint.com

Aprajita Sharma
aprajita.sharma@livemint.com
Mission financial literacy
and their families. We also launched
postgraduate course in financial
planning in collaboration with Loy-
WILL THE RUSH FOR

T FIXED DEPOSITS BE
here are far fewer certified ola Institute of Business Administra-
financial planners (CFPs) Number of certified financial planner (CFP) tion (LIBA), Chennai; KJ Somaiya
in India than what the professionals in India, world Institute of Management, Mumbai;
country requires. At the
Financial Planning Stan-
dards Board (FPSB) India, we focus
2021 2022
Cost of
doing CFP
and Army Institute of Management &
Technology (AIMT), Greater Noida.
The classes will commence with the
SHORT-LIVED?
India 2,338 2,517 certification *Involves
more on the ability and employability registration, 2024 academic cycle. This course will
~1.5 lakh* exam and

A
so that skilled financial professionals World 203,312 213,002 preparation give students the advantage of being re you from the generation that first consumed news on All
can enter the job market, says chief fee postgraduates in management, while India Radio and once collected audio cassettes of your
executive officer Krishan Mishra in having incremental CFP certifica- favourite music? If yes, there is also a high chance that over
an interview with Mint. While the Duration and pass rate of CFP examination* tion, thus enhancing their employa- the last 5-7 years, you learned that fixed deposits (FDs) don’t beat
CFP certification course costs a mere bility quotient with potential inflation and destroy wealth, courtesy of personal finance com-
Duration Pass rate
₹1.5 lakh, freshers can earn ₹5-6 lakh 12-18 months 52-55% employers. mentary across various multimedia mediums. The subsequent
per annum and those with just 3-4 *Consists of 4 exams
What is the right age to introduce generations believe the notion more firmly. This popular narrative
years of experience can get salaries of money concepts to children? has influenced many to ditch FDs altogether in favour of equity
Experienced professionals can opt for the challenge pathway*
₹10-15 lakh, says Mishra, who took *Directly appearing for the final exam
It is around the ages of 11-12 years and other asset classes. Even then, FD continues to be among the
over as the chief executive in August when the child will be studying in favourite savings instruments. Data from the Reserve Bank of
this year. Edited excerpts from an class VI. While we cannot teach them India (RBI) shows that about ₹10.27 trillion was locked in bank
interview. Financial education for kids about the stock market, mutual deposits in fiscal year 2023. To put this number in perspective,
 India's new national education policy funds or the country’s gross domes- only about ₹1.8 trillion household savings went into mutual funds
What is the latest data on CFPs emphasizes on teaching financial literacy in schools tic product (GDP), they should through systematic investment plans (SIPs) in the same year.
after the FPSB introduced the  Some school boards have already introduced it understand how money works. For Due to RBI’s hawkish stance on retail inflation and the rising
new CFP examination program as part of the curriculum example, parents can take the child retail demand for credit, term deposit rates in India have risen to
in June 2020?  At FPSB India, we train teachers to impart along with them when they buy veg- their highest in the past decade. Thus, there is a significant posi-
The number of CFPs in India was financial education etables or groceries. In fact, I have tive arbitrage between the nominal interest rates on FDs and
2,517 in 2022 , compared to 2,338 in  Right age to introduce money concepts to heard that schools take the kids out retail inflation. Take the example of someone in the zero tax
2021. Globally, there were 203,312 children is 10-11 years or Class VI to the vegetable market sometimes. bracket who invests in a 400-day FD by SBI at a 7.10% per annum
CFPs in 2021 and 213,002 in 2022. They give them some money to interest rate compared to 5% annual retail inflation, i.e., a post-tax
The data for 2023 will be available by make purchases. You can actually inflation-adjusted return of 2.10% per annum. When was the last
February. Financial planning is still a push teach students by forming groups. time we heard such gains from an FD?
What is the duration and cost of So, for example, if students have to The key interest rates are expected to start reducing in the next
the CFP certification course?
concept majorly but some form a cricket team, they will need calendar year, and the banking sector will gradually follow suit.
The new curriculum for the CFP people have started asking for money to operationalize that cricket This makes it an excellent time for retail investors to lock in the
certification is quite practical and a financial plan before they team. Such sports or art-related FD rates for 3-5 years. But here comes another question: Are FDs
application-based. It consists of three start investing. events are very practical and inter- only good for now? Will they again be a subpar product when the
specialist certifications —investment esting ways of explaining money interest rates start going down? Perhaps, no. FDs will still be rele-
planning, retirement and tax plan- KRISHAN MISHRA concepts to them. vant (irrespective of interest rate cycles). Here are a few reasons:
ning and estate planning—followed Chief executive officer, FPSB India Remember, if we don’t teach how Knitted in the culture: Tradition-
by the final, Integrated financial plan- money will work for them, money will Fixed deposits ally, FDs have been the first and fore-
ning examination. The final exam will make them work for itself. We don’t will continue to most investment instrument that
have questions based on a case study want the next generation to fall into Indian retail investors rely upon to
that involves concepts that you have this trap. be relevant for park funds for their long-term plans.
learned in the initial three levels. reach out to FPSB-authorized educa- in individuals so that they can go ahead In fact, we recently did a consumer What does the national education investors even This has less to do with the interest
Although they are multiple choice tion providers for the preparation. and pick up the jobs. If you check survey and the findings revealed that policy say about financial literacy when interest rates and more with the generational
questions, it is better to consider In case somebody doesn’t want to online job platforms, you will find people who just acted on their own for young India? rates fall confidence in the banking system. Just
them as multiple task questions. You go to an education provider, they will 7,000-8,000 vacancies for CFPs. So or took the advice of somebody other India’s new national education pol- before the first outbreak of covid-19
have to solve those to find the have to clear a test to qualify for the the demand for these professionals is than a professional later found icy has mentioned that financial liter- (March 2020-end), the value of retail
answers. course. Otherwise, everybody needs higher than supply. In fact, we aggre- themselves in a very difficult situa- acy should be started at a young age, FDs in India was ₹41.3 trillion, i.e., approximately 28% of the
Anyone who is at least 18 years of to go to the education provider. Here, gate and post job opportunities on our tion. However, 90% of the people in the school itself. Some school FY20 real GDP. This was a time when the interest rates were sig-
and has completed higher second- it is important to mention that the website also on the ‘career’ page. who took professional advice feel boards have already started introduc- nificantly lower than today. The proportion shows that FDs form
ary or class 12 may average pass rate for You will be happy to hear that that they have taken the right step. ing financial planning as part of the the core of retail investment culture in India, irrespective of the
appear for these
exams. But you can
m INTERVIEW CFP examination there has been a significant change in They feel more secure and confident
varies in the range of the salaries being offered to CFPs . about navigating their lives. Further,
curriculum such as in business stud-
ies courses or introducing it as voca-
interest rate cycles. Going forward, even if the interest rates come
down by a few basis points, the cultural web is hard to break.
get the CFP certifica- 52-55% year after year. The average salary for a fresher more than 9 out of 10 clients of CFP tional courses. These are early steps Emergence of small finance banks (SFBs): Over the last

‘
tion only after your graduation. Stu- What value does CFP certifica- should be around ₹5-6 lakh. How- professionals say the benefits of and there is a long way to go on that. 5-6 years, SFBs have been turning the game around on FDs.
dents can clear all modules while tion hold, given that CFP profes- ever, somebody with financial planning out- The UGC, or University Grants Com- These banks offer 1-2% additional interest on term deposits to
doing graduation to land jobs right sionals cannot charge for creat- even 3-4 years experi- weigh the costs.So mission, had stated in August that compete with their established peers, along with government-
after they graduate. The ideal dura- ing financial plans or impart any ence can expect an if we don’t teach that’s something which personal finance is a life skill and it backed insurance of ₹5 lakh per account per person (like any
tion to complete all modules is 12-18 financial advice? Financial advi- average salary of ₹10-15 children how has been really positive. needs to be taught across all schools, other commercial bank). The additional interest rate goes a long
months. Applicants who have sory is solely the prerogative of lakh very easily. The money will work What is FPSB India colleges and universities depending way to bridge the gap between FD returns and the retail inflation
already spent a good time in the registered investment advisers opportunities are doing on the finan- on the age group and what they can rate. If the same investor mentioned earlier in the article invests
financial services industry can (RIAs). pretty good for these for them, money cial literacy front? grasp. It is not that only a commerce in a 3–5-year FD of a small finance bank, she can expect close to
directly appear for the final exam. While it is recommended that CFP professionals in the will make them CFP certification is graduate can get into the financial 8.5% per annum interest rates and an even better post-tax infla-
We call it the challenge pathway and professionals take up the RIA licence future. work for itself. an important area for planning profession. Even an engi- tion-adjusted gain of 3.5%.
launched it just a couple of months if they want to get into full-fledged Are Indian investors us, but more impor- neering or medical graduate can do Variety of use cases: Gone are the days when people would
Krishan Mishra
ago to expedite the process for expe- investment advisory, a large set of ready to pay for Chief executive officer, tantly, our job is to edu- so. invest in FDs due to their lack of awareness about other invest-
rienced professionals. CFPs do not take it up and still man- financial advice? Do FPSB India cate people about their What growth do you expect in the ment options. Today, retail investors understand the utility of
Note that inexperienced candi- age to have a bright career out of it. A they seek financial financial well-being. number of CFP professionals in FDs at different stages of life. For example, a double-income cou-
dates will have to clear all modules, mutual fund distributor (MFD) and an planners or advis- We do a lot of activities India? ple could park their emergency funds or short-term needs in an
get their bachelors degree followed insurance agent having a CFP certifi- ers? around financial literacy. We are in Currently, about 1,500-2,000 peo- FD. A senior citizen may look at FDs for low-risk debt invest-
by minimum one year of supervised cation make for a great combination. Financial planning is still a push- constant touch with various organi- ple are pursuing the CFP certifica- ments. There are also sweep-in FDs where one can withdraw any
or three years of unsupervised expe- They become a more trusted concept majorly. But the change is zations and educational institutions, tion. But we are witnessing a good amount, anytime, without foreclosure penalties. Such sweep-in
rience. Then only they will be able to resource for their clients or for the visible. People have started asking for giving them information about growth there. I expect it to be in the FDs allow investors to optimize returns on additional cash lying
apply for the certification. When I say organization where they work. That a financial plan before they start financial planning by conducting off- double digits by the next year. in their savings accounts. With so many use cases, FDs will
supervised, it means that they should is the reason why a lot of people have investing. Obviously, people never line and online events. In fact, on 4 Thanks to a lot of effort from the remain an important investment avenue.
have worked under a CFP profes- started applying for the CFP certifica- wanted to pay for it. They would trust October—the World Financial Plan- team, we have been able to grow CFP Increased access: In the last five years, we have witnessed a
sional for a period of one year in the tion from these backgrounds. In fact, unqualified relatives or friends over a ning Day, our activities around certification’s awareness level by 43% significant boom in retail participation for direct equity and
field of financial planning which will now we see a lot of chartered qualified financial professional. Some financial planning had covered in India, which is pretty decent and is mutual funds. This was possible due to the digital innovation by
give them a practical understanding accountants coming to us to pursue of them have even faced the conse- approximately the entire length, the highest if compared with any new-age brokers, industry bodies and regulators. As an invest-
of all the modules. the CFP certification. quences of getting such informal breadth and width of the country. other FPSB-affiliate organization ment avenue becomes more accessible, it attracts mass participa-
The overall cost for the programme What jobs are available for CFPs advice. They are now ready to pay for We regularly conduct capacity anywhere in the world. This is phe- tion. Today, we are witnessing a similar moment around FDs.
comes to almost ₹1 lakh plus goods and what are their salary pros- financial advice from professionals. building programmes for teachers in nomenal. The efforts are in the right Investors can book FDs of many small finance banks and A-rated
and service tax, or GST. It involves the pects? We tell people that financial goals some schools and colleges so that direction, so numbers will change. NBFCs on the tap of their smartphone screens in less than five
registration, exam and certification In India, employment is available. keep changing and that a CFP profes- they are able to understand the We expect to have 10,000 CFP pro- minutes. The ease of access eliminates the decision inertia and
fees. There will be an additional cost But, ability is a concern. At FPSB, our sional can review and align your goals importance of personal finance and fessionals in the next five years, that will propel more investors to look at FDs for their debt allocation.
of ₹30,000-50,000 if applicants focus is mainly on creating that ability accordingly. the financial well-being of individuals is, by 2028. Anshul Gupta is co-founder and CIO of Wint Wealth.

Returns on my investments Will index funds give me better returns?

Building a portfolio is a complex exercise, and it has to be maintained too. A person’s portfolio holds different types of assets based
on her financial goals, and each asset class gives different types of returns, which is why a portfolio must have an ideal mix of
financial products. One must also keep in mind the volatility risk of the asset class, liquidity, lock-in rules and taxation. Here's a look Harshad Chetanwala Mid Cap and ICICI Prudential
at how four commonly used asset types—equity, cash, gold and fixed income—have done in different periods. Bluechip Fund. Their returns
I am 37 years old and are 19%, 20.6%, 15.6% and
started investing in mutual 15.4% per annum, respectively.
funds in July 2021. I have A blended approach may
17tu.8 %
rn that
Returns (in %)
Equity (Sensex) Cash (liquid fund)
systematic investment
plans (SIPs) of Rs.2,500 in
work better compared to only
index funds. Active fund man-
The re iven SBI Nifty Index Fund, UTI agers can identify and invest in
Gold has g-year
Gold Fixed income (fixed deposit)
Nifty Next 50 Fund, Motilal companies that could grow
over a oned Oswal Nifty Midcap 150 and better than companies that are
perio Nippon Nifty 50 Value 20 in the Index. Index funds are
Index Fund. Now, I want to based on market capitalization
increase my SIPs and invest and no other criteria, whereas
17.81 15.58
14.75 for the next eight years. active funds are built and
13.27 12.49 Should I invest in index monitored by fund managers.
funds or make any changes ASK MINT help to generate better returns You can consider a mix of
8.55 9.00 to my current investment m INVESTMENTS in the long term. the following funds to invest in
8.36
plan? If we look from perform- future. SBI Nifty Index Fund,
6.33 6.81 6.10 6.80 6.38 —Sarthak Rastogi ance perspective, your SIPs in Motilal Oswal Nifty Midcap
4.79 5.00 5.03
corrected and sharply rose in a Motilali Oswal Nifty Midcap 150, Parag Parikh Flexi Cap
I would like to acknowledge little over a year. There was a 150, Nippon Nifty 50 Value 20 Fund, HDFC Flexi Cap and SBI
your decision to invest in lot of buzz around index funds Index Fund, UTI Nifty Next 50 Large & Mid Cap Fund.
mutual funds to build a corpus during that time as they were Fund and SBI Nifty Index Harshad Chetanwala is
since 2021 and eight years performing better compared Fund would have generated co-founder, MyWealthGrowth.
from here on. The time hori- to actively managed funds. 25.4%, 14.6%, 10.5% and 10%
zon is quite good for equity- This prompted many investors per annum, respectively. Do you have a personal
1 YEAR 3 YEARS 5 YEARS 10 YEARS finance query? Send in your
based investments and mutual to invest in index funds. While Some of the actively managed
Data as on on 1 December 2023. Equity is the benchmark Sensex return (price); cash refers to the average return for liquid funds category as funds are one of the most con- it is good to start with index funds that were doing well at queries at
defined by Valueresearchonline; gold refers to domestic gold prices available on Valueresearchonline; and fixed income is historic SBI fixed venient ways of investing. funds, as you gain confidence, that time and continue to do so mintmoney@livemint.com
deposit rates. All returns are annualized. and get them answered by
You started investing in July creating a blend of index and are Parag Parikh Flexi Cap,
PARAS JAIN/MINT Source: S&P Dow Jones Indices,Value Research,SBI industry experts.
2021 when the stock market actively managed funds can HDFC Flexi Cap, SBI Large &
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 12 TuesDay, 5 December 2023
New Delhi VIEWS LIVEMINT.COM

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Trade must fight climate change

but not through unfair measures
Talks at CoP-28 should push back unilateral moves that unsettle an agreed balance of obligations

industry. In response, the EU’s green
industrial policy has turned to regula-
tory action to support its own competi-
tiveness, while the US is providing large
subsidies to its home industries. Such
approaches raise concerns under WTO
rules and also represent uncoordinated
action, which is unlikely to achieve
climate goals. Importantly, they fail to
R.V. AnuRAdhA address the main hurdle to green devel-
is a partner at Clarus Law Associates, New opment faced by developing countries:
Delhi, and specializes in international lack of access to finance and EST.
economic and environmental laws. Take the EU’s Carbon Border Adjust-
ment Mechanism (CBAM), which
South Korea, Switzerland and China,
and developing countries are net
importers. It further estimates that in
2019, tariff revenue collected on these
goods by developing countries
amounted to $15 billion. Clearly, it
would be perfectly legitimate for devel-
oping countries to use tariff revenues
from EGS imports as a source of climate
finance. Any trade liberalization of EGS,
on the contrary, will simply eliminate
that source of tariff revenue while possi-
bly enhancing market access for other
countries.

The Finance Commission

requires importers in select carbon-in- The chief role of trade in addressing
tensive sectors (including iron, steel and climate change is in enabling the diffu-

C
oP-28 underway in Dubai puts, aluminium) to purchase CBAM certifi- sion of EST, as two recent WTO submis-
for the first time, a spotlight on cates to ensure equivalence in the price sions have highlighted. This is more
the role of trade in addressing that EU producers pay for their emis- important than EGS trade liberaliza-

has a highly critical task climate change. The core issue is not one
of climate trumping trade or vice versa.
It is one of equity, fairness and common
sense. Climate change knows no borders
sions with the aim of preserving their
competitiveness. The World Bank and
UNCTAD have highlighted that this
could have a significant impact on the
tion. As the IPCC report notes, finance,
technology and international coopera-
tion are critical enablers for accelerated
climate action. The key barriers to
and the only way to address it is through competitiveness of developing coun- insufficient EST transfers are man-
collaborative action. However, the jour- tries that export goods to the EU. made: lack of political commitment,
State poll results make Indian federalism look robust, but fiscal tensions are inevitable. The ney of the 1992 UN Framework Conven- By demanding equivalence in carbon limited resources and widening gaps
tion on Climate Change (UNFCCC) has pricing, however, the EU strikes at the between available finance and esti-
16th Commission will have to be very careful if delimitation is done during its award period been one of unfulfilled promises, spe- root of differential emission cut obliga- mated adaptation and mitigation costs.
cially in relation to commitments for the tions, reflected as Nationally Deter- The WTO will co-lead the ‘trade day’
transfer of financial resources and envi- mined Contributions (NDCs) under the discussions at CoP-28. It should steer
ronmentally sound technology (EST), Paris Agreement. Yet, the UK is likely to them away from myopic EGS market

F
rom an electoral lens, Indian federal-
ism would seem in fine fettle, with
state governments routinely voted in
and out amid much political fanfare.
Of the five states that went to polls
this autumn, as many as four saw
incumbent parties ousted from power. Fiscally
speaking, however, our federal system faces
slowly emerging tensions. Spare a thought for
the 16th Finance Commission (FC), whose
terms of reference were approved last week by
the Union Cabinet. Set up under Article 280 of
the Constitution to recommend how tax reve-
nue should be shared between the Union and
states (and among states themselves), FCs have
never had it easy. In a scenario where resources
are limited while the demands on them are vir-
tually unlimited, they must perform a trapeze
act. If the term of an FC coincides with a basic
shift in the fiscal relationship between the
Union and states—as with the 15th FC, which
saw GST launched in 2017—then its job is
tougher still. Even so, the task before the 16th
FC will be truly unenviable. This is because a
wherein each Member from a populous state which the recent IPCC Sixth Assessment replicate the EU’s CBAM; Australia too access demands and the tweaking of
represents many more voters than an MP from Report notes has led to lagging adoption is mulling carbon leakage steps. trade rules to legitimize unilateral
of low-emission technologies in most To stem this tide of carbon border border measures. As noted by the World
elsewhere, our southern and western states that developing countries. measures, it is essential to arrive at Trade Report, 2022, climate change can
stand to lose share of voice at the national level Meanwhile, the stage has shifted emission-pricing principles that are impact international trade by affecting
would be far from amused. As they have done increasingly towards unilateral trade aligned with the differential NDCs of trade costs, altering comparative
far better on population stability, diminished measures adopted with the stated countries. Trade levies at the border of advantages and disrupting global value
political heft at the Centre would seem like objective of addressing climate change. an importing country must not impose chains. Both CoP-28 and the upcoming
The UNFCCC underscores that any uni- its own carbon price on shipments from WTO Ministerial to be hosted by the
unjust desserts. What makes this situation lateral measure to combat climate an exporting country that has a lower UAE in February 2024 should ensure (a)
particularly piquant is that the demographic change should not constitute a means of carbon price due to different NDCs and unilateral trade steps do not undermine
success of these states has been accompanied arbitrary or unjustifiable discrimination other operating factors. the balance of rights and obligations
by faster economic expansion and thus a rising or a disguised restriction on interna- Another interface of trade with cli- under the UNFCCC and Paris Agree-
relative contribution to the country’s coffers. tional trade. This principle mirrors that mate change is trade in environmental ment, (b) an implementable plan for
of the World Trade Organization goods and services (EGS), an area where the transfer of EST, (c) smooth access
Although taxation is meant to play equalizer, (WTO), the underlying concern being several developed countries are seeking to finance for enhancing climate resil-
how mop-ups are split could prove contentious that protectionism must not operate in tariff liberalization on the reasoning ience, (d) assistance to developing
in the context of these trends. the guise of climate action. that opening up such trade is a climate- countries in research and adaptation
Over the years, successive FCs have tried to The implementation of emission friendly step. An UNCTAD report notes of green technologies, and (e) global
bring about some convergence in standards of reduction obligations has implications that the key exporters of EGS are the agreement on carbon pricing consistent
for the competitiveness of domestic EU, US, Japan, UK, Singapore, Canada, with NDCs.
living across states through a variety of trans-
fers. As pointed out by former Reserve Bank of
India governor, D. Subbarao in a recent news-
paper op-ed, “For every rupee they contribute
to the Centre’s taxes, richer states like Tamil
Nadu and Maharashtra get back less than a
rupee while poorer states like Bihar and Jhark- www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Friday, December 6, 2013 Vol.7 No.290 `3.00 in Delhi­NCR/`4.00 outside Delhi­NCR 24
32 PAGES
+ 4 PAGES MEDIA MARKETING INITIATIVE

Lok Sabha constituency rejig may overlap with
its span of coverage from 2026-27 to 2031-32.
hand get more than a rupee.” While some cross- WSJ: Vikram Pandit backs
peer­lending upstart >25
ELECTIONS: High voter turnout points to
change in urban youth attitudes >5
We must face up to an
subsidization of poorer states by richer ones is CORPORATE: Banks close to recasting ABG

inescapable reality: the

Shipyard’s `10,000 crore loan >9
CONTENT PARTNER
NATION: Supreme Court indicts A.K. Ganguly
in law intern case >14

In accordance with a Vajpayee government inevitable in a country of sharp disparities, SENSEX 20,957.81 Æ 249.10

ELECTION FACTOR
NIFTY 6,241.10 Æ 80.15 DOLLAR `61.77 æ `0.28 EURO `83.80 æ `0.25 GOLD `30,825 Æ `75 OIL $111.40 æ $0.48

QUICK EDIT

decision of 2001, a long-overdue delimitation how much further it can go remains a question.
Markets ignore Moody’s, cheer Modi
Moody’s warns Indian
firms remain vulnerable
but stocks rise as exit
benchmark bond ended at
8.788%, compared
Wednesday’s close of 8.779%.
with
POLITICAL PUSH
The Sensex rose as much as 456.89 points to 21,165.60, but to market
Hit by the
gold bug
Marking Modi G old demand in Thai-
land has more than
doubled in the third quar-
challenges of sustainability
simply overwhelm the
On Wednesday, several exit ter of the ongoing calendar
polls predict BJP win polls projected that BJP would gave up some gains to end at 20,957.81 points, up 1.2% from year. The World Gold

exercise is to be undertaken following the “first Already, the sense has grown that India’s better
score an outright win in Rajas- the previous close. Council has an explana-
in state elections than and Madhya Pradesh and B Y M ARK TO M ARKET T EAM tion: it believes that gold is
hold the edge in a close finish feedback@livemint.com pouring into Bangkok on
B Y R EMYA N AIR & A MI S HAH in Delhi and Chhattisgarh. If Sensex ························· its way to India through
·························
NEW DELHI/MUMBAI
the exit polls are proven cor-
rect, the outcome would point T he equity markets wel-
comed the exit polls pre-
smuggling networks. There
is also anecdotal evidence

O n a day that rating

agency Moody’s Inves-
tors Service reiterated
to a critical trend less than six
months before the general
election, and allay apprehen-
dicting a likely victory for the
Bharatiya Janata Party (BJP) in
four states, or at least three
of more gold also making
its way into neighbouring
countries such as Nepal, to

Census after 2026.” Covid got in the way of the performers are bearing a burden for states that
its warning that Indian compa-
nies remain vulnerable to
slowing economic growth and
funding challenges, the mar-
kets cheered exit poll projec-
tions that gave the opposition
Bharatiya Janata Party (BJP) a
clear edge in four key state
elections.
adequacy of our responses.
sions about a weak coalition out of four states, with a 1.2% be smuggled to India.
government coming to power 20,957.81 rise in the S&P BSE Sensex. Data released by Reserve
at the centre. 3.30pm While the markets opened in a Bank of India last week
The results of the elections 21,057.4 euphoric mood on Thursday show gold imports have
will be known on Sunday. 9.15am morning, it gradually gave up dropped sharply, after the
“The market seems to have some of the gains through the government imposed strict
factored (in) the positive re- day. measures to break the
sults and if there are bigger The Nifty ended 1% lower growing gold obsession.
surprises in store like the BJP compared to its highs in the It’s likely smugglers have

2021 headcount, but this one delayed further or use their resources less wisely. This in itself
The 30-share BSE bench- winning more seats than ex- first few minutes of trading. replaced official importers
mark, the Sensex, closed pected in Delhi, the market What’s more, as one technical to meet demand, even as
249.10 points, or 1.2%, higher could see a major boost next analyst points out, the out- there are some complaints

With some honourable

at 20,957.81, while the Nation-
al Stock Exchange’s broader
50-share Nifty gained 80.15
points, or 1.3%, to 6,241.10.
Taking its cue from the
Rupee (inverse scale)
week,” said Deven Choksey, 61.50 standing positions on the about old-style harassment
chief executive officer and country’s top-traded Nifty by customs officials at air-
managing director, KR Chok- contracts rose by about 6% on ports. It’s the same old sto-
61.60
sey Shares and Securities Pvt. Thursday which, on the back ry: economic incentives
Ltd. 61.77 of the downward price pres- overpower controls.

even the next due in 2031 could trigger—and could test the resilience of our federal set-up
strong stock market sentiment,
the Indian rupee ended at
`61.77 against the US dollar,
up 0.47% from Wednesday’s
close of `62.055. In intraday
trading, the local unit touched
Earlier in the day, the Sensex 61.70 sure through the day, indi- Indians have been rush-
rose as much as 456.89 points, cates that fresh short positions ing to buy gold because the
or 2.21%, to 21,165.60, while 61.80 were created. Of course, there rupee is losing appeal as a
the Nifty gained as much as may have been some profit store of value in these
139.60 points, or 2.27%, to booking, too. times of high inflation. The
6,300.55. 61.90 61.79 There’s little doubt that the only way to wean people

exceptions, our responses

a high of 61.5350, its highest Choksey added that these 9.00am 4.58pm markets would welcome a off the yellow metal is to
since 31 October. tame inflation.
Source: Bloomberg
The yield on India’s 10-year TURN TO PAGE 5® TURN TO PAGE 18®
SARVESH SHARMA/MINT

form the basis of—a re-allocation of Lok Sabha as we go along. The prospect of a Lok Sabha Editor’s note
Dear Reader:
No trade deal Cabinet gives
is better than a nod to Bill
bad deal, says for creating

are too few, too little,

The results of elections to four

seats among states. This is unlikely to go down that’s structurally likely to tilt more in favour of
key states will be announced Sun­
day, and they will have a signifi­
cant impact on the general elec­
Anand Sharma Telangana
tion in 2014. The new election
section on Mint’s website B Y A SIT R ANJAN M ISHRA B Y A MAN M ALIK &
(www.livemint.com/elections) asit.m@livemint.com Y OGENDRA K ALAVALAPALLI
will track the results, and contin­ ························· ·························
ue to run through June, tracking NEW DELHI NEW DELHI/HYDERABAD
key issues, leaders and constitu­
R efusing to back down from
I ndia moved a step closer to

smoothly, as differing rates of population north Indian policy priorities will only steepen
encies till a new government is his stance that food securi- the creation of its 29th state

and too late.

sworn in.
The section will feature:
1. In­depth reportage by Mint’s
political bureau
2. Election Metrics, a data column
by Karthik Shashidhar
3. Claim Check, a fact check of
campaign trail claims
ty is non-negotiable at the
World Trade Organization’s
(WTO) ministerial meeting in
Bali, Indonesia, trade minister
Anand Sharma said on Thurs-
day that India would prefer to
have no deal than a bad one.
But India still wants a posi-
on Thursday when the cabinet
approved a Bill for granting
statehood to the Telangana re-
gion of Andhra Pradesh, over-
riding months of protests
against the division of India’s
fourth largest province.
Home minister Sushilkumar

growth would amplify the share of northern the 16th FC’s allocative challenge. What’s in the
4. Instant live updates of the tive outcome in Bali, and a Shinde announced the cabi-
results deal is possible if a compro- net’s approval for the Bill,
5. Interactive graphics mise is reached, he said, ac- which endorses the creation of
6. Web chats on the results and cording to the audio transcript a Telangana state with 10 dis-
other issues of a press conference ad- tricts including Hyderabad, the
Happy reading, dressed by the minister in the Andhra Pradesh capital.
R. Sukumar Indonesian city and posted on That means a reported last-
Editor the WTO website. minute proposal to include two
“We have not come here to districts from the Rayalaseema

states in Parliament. While the underlying country’s best long-term interest would have to
collapse any meeting,” Sharma region in the new state was
NOTE TO READERS said. “India is also committed
to a balanced and fair out-
dropped from the Bill. The pro-
posal on Thursday provoked a
The Media Marketing Initiatives on come. There have been past total strike in the Telangana re-

Pages 28 and 29, and the four­page
supplement with this edition are the
equivalent of paid­for advertisements,
and no Mint journalists were involved
in creating these. Readers would do
meetings where no result was
there. It is better to have no
agreement than to have a bad
agreement.”
India’s stand has posed the
Kof i A . A n n A n
gion, which comprises the Telu-
gu-speaking portions of the
erstwhile princely state of Hy-
derabad. The new state would
be home to 35 million of And-

rationale is sound, as we must reduce if we can’t guide its approach. A delicate political economy
well to treat them as advertisements.
Mint is also available for R7 with
Hindustan Times in Delhi-NCR only
risk that the ministerial meet- hra Pradesh’s 85 million peo-
ing in Bali would end in fail- ple.
ure, further eroding the credi- The remaining portion of
TURN TO PAGE 4® TURN TO PAGE 4®

eliminate today’s inequity in representation, balance needs to be struck.

MY VIEW | trutH, Lies AND stAtistiCs

We must map the spatial spread of economic activities

British in the mid-19th century, the Bombay
PRAMIT BHATTACHARYA government requested funds to set up a pro-
vincial statistical office. The central authori-
ties denied that request, retarding local sta-
tistical capacity. The lack of investment in
local statistical offices meant that by the
still relies on “comparable” SDP estimates tion committees are yet to approve the cen- be effective only if state statistical bureaus
produced by the Union ministry of statistics sus findings, and a majority of them have have enough heft to generate high-quality
and programme implementation (Mospi). raised concerns over data quality, Mospi said granular data. Without support from officials
In most states, the directorates of eco- in response to an RTI query from this writer. at Mospi and state secretariats, they would
nomics and statistics (DES) are headed by SDP estimation has also been a bone of continue to struggle. DES staff also need help
uninterested civil servants who may have contention since the 2015 base-year revi- from outside experts to incorporate new tools

H
ow well an average person does in life
is determined largely by an accident
of birth. A child born in rural Tamil
Nadu is better nourished and educated, on
average, than one born in rural Chhattisgarh.
There are stark differences in economic out-
comes even within states. Economic oppor-
tunities are far more abundant in the Konkan
middle of the 20th century, only three prov-
inces (Bombay, Uttar Pradesh and Bihar) had
any estimates of provincial income.
It was only after India’s independence that
estimating state income became a priority.
Following recommendations of the National
Income Committee in the early 1950s, a
handful of states began preparing state
preferred other jobs or by statisticians who sion. The new series relied heavily on indi- (including geospatial ones) in their work.
do not rank high in the rect methods of estimating Acknowledging a crisis in state statistical
state administrative hier- SDP figures from national systems is the first step towards solving it. In
archy. Lack of attention Governments at totals. A 2017 research 2020, the Madhya Pradesh (MP) govern-
and funding from state paper by Gujarat DES offi- ment set up a statistical task force headed by
governments has made the state level cial Manish Pandya and the former National Statistical Commission
these DES highly depend- economist Ravindra Dhol- member Amitabh Kundu to review its statis-
ent on Mospi. Lately, even
must chalk out akia argued that this led to tical system. The task force report is an eye-

is a Chennai-based journalist.
belt of Maharashtra than in Marathwada.
Yet, we do a poor job of tracking regional
inequality. When the national accounts esti-
mates are released each quarter, one has no
way of knowing how much each state or
region has contributed to the national total.
The few states that do compile such esti-
mates do not release them publicly. Even
annual estimates of state domestic product
(SDP) are issued after a long time lag. District
domestic product (DDP) estimates depend
on guesswork to a large extent, and aren’t
comparable across states.
The neglect of local statistical capacity in
India has a long history. As India’s modern
statistical edifice was being erected by the
This PDF was uploade To Telegram channel_https://t.me/Magzines_latest_Newspaper(send Me Message telegram ya WhatsApp This number 8890050582)
income estimates. India’s second five-year
plan funded the establishment of statistical
bureaus in other states, which began gener-
ating state income estimates. Since the
methods and sources differed across states,
the Planning Commission and Finance
Commission demanded that the Central Sta-
tistical Organization produce comparable
SDP estimates. This was meant to be a short-
term measure till the state estimates were
improved and standardized. In the 1970s, a
committee led by national accounting pio-
neer Moni Mukherjee prepared a template
for standardized regional accounts. Some
recommendations were acted upon, several
others ignored. Each Finance Commission
Mospi’s support has been
found wanting.
reforms and inaccurate estimates of
state incomes. Mospi found
opening account of the deep rot in the state’s
statistical system. It noted a lack of any effec-
Several flagship surveys
of Mospi are now run with-
rebuild their it hard to evade the ques-
tions being raised in the
tive mechanism at the state or district level
to check the quality of data-sets compiled in
out involving state DES. statistical Prime Minister’s home different departments, and that some esti-
Even the latest economic state. It set up a panel to mates were being calculated “manually”
census—traditionally run systems review SDP estimates, and rather than by using computers.
by DES officials—involved asked Dholakia to chair it. As recommended, MP set up a state statis-
a marginal role for the The Dholakia committee tical commission to provide technical gui-
DES. Mospi deployed staff from Common report in 2020 recommended that both state dance to the DES and review key statistical
Service Centres (CSC) run by the IT ministry and national incomes should be estimated activities. Other states need to follow its lead
to collect data. Some DES officials opposed using a bottom-up approach in the next base- and chart a roadmap for revamping their sta-
the move, arguing that CSC staff lacked year revision. This would improve the accu- tistical systems. Without it, don’t expect
exposure to basic statistics. The results from racy of state as well as national totals. The granular high-quality data-sets from states.
the field seem to have vindicated their Mukherjee committee had made similar This is the concluding part of a three-part
stance. Seventeen of 28 state-level coordina- arguments. Yet, such recommendations can series on measuring economic inequality.
 LIVEMINT.COM VIEWS TuesDAy, 5 DeceMber 2023
New Delhi 13

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

‘Inevitable India’ rings especially Money or mission? A business

trade-off we cannot wish away
true in the sphere of technology OpenAI’s case wasn’t unique in a world of tough business choices

The India Stack has worked well for digital inclusion and we could play a pivotal role in global transformations underway

ISTOCKPHOTO

BETH KOWITT
is a Bloomberg Opinion columnist covering
corporate America.

DEBJANI GHOSH
is president of Nasscom.

O
penAI’s power brokers seem to
have decided that the quickest fix
for the dysfunction on display for

I
n the early 2000s, India unveiled the globally
lauded tourism campaign, “Incredible India.”
Fast-forward to the present. Harvard Business
School posed a compelling question: If India
were to initiate another global campaign
today, what should encapsulate its essence?
Its recommendation, “Inevitable India,” carries a
profound resonance with the contemporary global
landscape and geopolitical dynamics.
From governments across North America,
Europe and the Global South to global CEOs
worldwide, the name ‘India’ is at the forefront of
discussions on alliances and strategic partnerships.
In a world where countries and organizations are
strategically mapping their future trajectories,
India emerges not just as a choice, but as an inevi-
tability, a pivotal player in the unfolding narrative
of our shared global destiny.
Goldman Sachs anticipates that India will
become the world’s second-largest economy by
2075. Martin Wolf of the Financial Times projects
that by 2050, India’s purchasing power will eclipse
that of the US by a staggering 30%, further contrib-
uting to the aura of inevitability that is increasingly
becoming synonymous with the India brand.
Viewed through the lens of technology, the idea
of ‘Inevitable India’ becomes not just an obvious
choice, but a compelling one. My belief is not
driven solely by national pride, though that senti-
ment is undeniably strong. Instead, it stems from
an understanding of pivotal transitions that are
reshaping the global landscape and India’s unique
position in each of these transformations.
Let’s first talk about the all-important digital
transition, a paradigm shift that goes beyond
reshaping nations and industries—it’s a complete
rewriting of the rules of competition. India’s
remarkable journey started with our quest to pro-
vide a unique national ID to every single citizen in
the country: Aadhaar. With digital IDs now in the
hands of almost 1.4 billion people, who use it daily
for around 80 million transactions, India has estab-
lished a formidable foundation for a genuinely
inclusive digital economy.
At the core of this transformative journey is the
India Stack, a groundbreaking amalgamation of
digital identities, interoperable protocols for
digital payments and a consent-based data layer,
enabling secure data sharing based on user choice.
The India Stack has evolved into the bedrock of
India’s digital public infrastructure (DPI), which
powers a multitude of services from financial
transactions to nationwide vaccine distribution.
Based on the design principles of inclusion,
security and ecosystem-driven development,
India’s DPI network has laid the groundwork for
economic growth where no one is left behind. Our
mantra of innovating for scale at the grassroots
level and then moving up, as opposed to the West-
ern norm of top-heavy innovation that trickles
down, positions India as one of the few countries
realizing the vision of a truly inclusive and human-
centric digital economy. Moreover, India stands
alone in achieving this at the unprecedented scale
we’ve demonstrated.
The driving force behind this success? A potent
blend of talent, technological prowess and a
can-do mindset within the dynamic Indian startup
ecosystem that seized the opportunity to translate
that vision into reality. None of this would have
been possible without the unwavering support and
visionary leadership of the government.
India’s digital transformation stands not only as
the largest and most intricate case study of change
that has had substantial impact, but also serves as a
shining example of a win-win public-private part-
nership in action. It exemplifies how collaborative
efforts between the government and private sector
can yield transformative results, setting a global
benchmark for effective cooperation and shared
success.
It is very interesting to see how India is now
applying the same principle to navigate the artifi-
cial intelligence (AI) transition. It is fantastic to see
the country looking at emerging technologies like
AI from the lens of opportunity and impact, rather
than just fear and risks. Of course, it is important to
ensure safety and adequate oversight. However,
like we have done with DPI, the India playbook is
to build safety and inclusion into the very design
principles of AI. For us, it has to be about making
safe AI and not making AI safe.
The second key transition is the one to clean
energy. Ranked fourth on installed capacity for
renewable energy like wind and solar power, India
ambitiously aims for 500GW of non-fossil fuel-
based energy by 2030—a major commitment
declared at CoP-26 in Glasgow. With the world’s
largest expansion plan for renewable energy, India
has made a clear commitment to sustainable
growth and expects clean sources to provide a fast
increasing share of electricity.
The third key transition revolves around supply
chain and geopolitical dynamics. India’s approach
towards collaboration and partnerships becomes
very important in this equation. Post-covid, the
world has realized the risks of depending on just
one country as a supply source. The focus is now
shifting to regional clusters and ecosystems in
individual countries. India’s role in strengthening
the voice of the Global South is a strategic one and
it could help redefine global trade and supply
dynamics.
At the heart of turning ‘Inevitable India’ into a
tangible reality lies a powerful convergence of
forces, anchored by resolute and visionary leader-
ship, the ascent of India as a reservoir of talent,
the burgeoning technical prowess across the
nation and the emergence of an unwavering can-do
mindset among our youth. Fuelled by the dyna-
mism of our vibrant startup and tech ecosystems
and supported by robust partnerships, we stand at
the precipice of turning these strategic transitions
into unparalleled opportunities. This is not just a
triumph for India; it’s a promise we will make a pos-
itive global impact that will be valued by people in
the farthest reaches of the world.
the past few weeks is to borrow a page from
America Inc’s playbook by adding some
establishment figures to its board. The
company’s initial new lineup of directors
includes some of the archetypes that make
its boardroom look much more like every-
one else’s: A well-regarded technology
executive in the form of Bret Taylor, Sales-
force Inc’s former co-chief executive offi-
cer, and a bigwig economist in Larry Sum-
mers, a former US Treasury secretary. The
two join Quora’s Adam D’Angelo, the one
holdover from the old group of directors
that briefly ousted OpenAI’s co-founder
and CEO Sam Altman.
The board makeover into one that more
closely resembles the traditional corporate
mould is being cast by some as the begin-
ning of adult supervision at OpenAI. But
it’s not yet clear that this board composi-
tion—or any board structure for that mat-
ter—can oversee Altman and his highly
paid and devoted employees as they chase
something that has the potential to destroy
humanity.
More important, this question of what
oversight should look like at OpenAI has
implications that stretch beyond the com-
pany and artificial intelligence (AI) com-
munity. OpenAI was set up as a “humanity
scale endeavor pursuing broad benefit for
humankind.” Not all companies are aiming
for such lofty stakes, but it’s not at all out of
the ordinary anymore for founders and
CEOs to strive to build a money-making
endeavour alongside a social mission—an
attempt to tackle issues of public good that
government simply cannot or will not
address. The OpenAI debacle is a clear
warning sign that how these types of com-
plex enterprises are governed needs to be
sorted out. “The key question is how do we
do this,” said Emilie Aguirre, a professor at
Duke Law School who researches compa-
nies that pursue both social purpose and
profit. “No one has figured out a great or
reliable way.”
Altman’s attempt to solve this problem
at OpenAI was to structure his project as a
non-profit. But tech talent is expensive.
When the money ran out, OpenAI started
a for-profit arm overseen by its non-profit
board that was legally bound to pursue the
non-profit’s original goal—a resolution
that basically shoehorned the money-
seeking piece of the enterprise into the old
governance structure. This is clearly not
the most graceful solution, but it worked
just fine until the money and the mission of
Who guards the guardians? It’s a question
with no easy answer
the company came into conflict.
Even corporate structures designed
explicitly to foster some kind of public
good seem to run into mission-versus-
money tension eventually. Last year, I
wrote about Ben & Jerry’s, which is a certi-
fied B-Corporation, a third-party designa-
tion which signifies that a company is
meeting social and environmental goals.
Ben and Jerry stipulated when they sold
the company to Unilever in 2000 that the
brand would continue with an independ-
ent board that would oversee the do-good
part of the enterprise. Unilever would be
responsible for the financial part and oper-
ations. For two decades, it seemed like a
smart division of labour. But last year, the
independent board and Unilever ended up
in a lawsuit when the board sued its parent
company, contending that it undermined
the integrity of the brand by continuing to
operate in the West Bank.
One of the most innovative and thought-
ful attempts at protecting a company’s pur-
pose was set up by Patagonia last year. The
company’s founder, Yvon Chouinard, and
his family transferred their ownership to a
non-profit and a trust to make sure all earn-
ings go toward battling climate change.
The trust, which members of the family
and its close advisers oversee, holds all the
voting shares and will also ensure the com-
pany is run in a socially responsible way.
In Patagonia’s case, the one big defect in
its plan appears to be the lack of any sort of
mechanism for ensuring that the trust’s
board maintains its stated mission of pro-
tecting the environment. But this also
seems to be the fatal flaw at OpenAI and
most companies attempting to make their
pursuit of a social good just as important as
making money.
As Duke’s Aguirre puts it: Who is guard-
ing the guardians in all these cases? In tra-
ditional governance, she said, sharehold-
ers can oust a board if they feel it’s not pro-
tecting their interests. But there is no
equivalent when it comes to a company’s
purpose—no personified representation of
mission that can hold a board accountable
when that mission comes under threat.
Last week, OpenAI learnt that missing link
has the potential to take down a company.
Solving for it might not be something it
wants to leave up to the likes of artificial
intelligence. ©BLOOMBERG

MY VIEW | A VIsIBLe HANd

Don’t expect CoP-28 to make progress on the real goal

green deals in countries ranging from Tur-
NARAYAN RAMACHANDRAN key and Zambia to Egypt. The Financial
Times reported that with the heft of the
UAE’s sovereign wealth funds behind him,
al-Jaber has announced green investment
deals worth some $200 billion over the past
setting’ projects. This is the semantic origin
of the term ‘net zero’ for emissions. Even as
renewable energy schemes and electric
vehicles gather steam around the world, the
status of ‘off-setting’ projects is worrisome.
Evidence from the Voluntary Carbon Cred-
the global response to climate change. On
one hand, addiction to hydrocarbons
remains strong; it may even be increasing.
On the other hand, and at the same time, real
green investments are increasing, even if not
by enough. This split personality is captured
to eventually emit only as much as they take
out of the atmosphere, was the reason
behind the powerful rise of the net zero con-
cept. Think of it as a simple equation:
E-O=NZ. Here, E stands for emissions, O for
offsets that remove emissions and NZ (for

T
his will be the warmest year on record
and 2024 will likely be warmer still,
thanks to a combination of climate
change impacts and the effects of periodic
and naturally occurring El Niño ocean oscil-
lations. About 80,000 delegates represent-
ing over 190 ‘parties’ have gathered in the
UAE for the 28th edition of the Conference
year, with big agreements in Turkey and
Azerbaijan. At the same time, ADNOC has a
capital expenditure budget of $150 billion to
further develop the UAE’s hydrocarbon
capacity over the next five years.
Some green investments are real. For
instance, the world’s largest solar installa-
tion at Bhadla Park in the Thar desert of
its Market (VCM) suggests that a majority of in the flawed concept of net-zero targets. net zero) is attained when E=O. If used prop-
these off-setting projects Hydrocarbon reduction erly, it can provide a directional framework
that have sold carbon cred- (measured in terms of CO2 for sustainability, while the world negotiates
its to help corporations Net zero aims emission reduction) is a day exactly how to take climate action while mit-
and countries on their net- too late (make that a couple igating the potentially severe impacts of cli-
zero paths may actually be look unrealistic of decades) and green mate change. Alas, even as E increases, O is
characterized as junk or investments are a dollar not only not keeping pace, but also terribly
worthless.
with emission short (to the tune of unreliable and subject to dramatic exaggera-

is chairman, InKlude Labs. Read

of the Parties (CoP-28) to follow through on
the landmark climate negotiations of CoP-21
Narayan’s Mint columns at
www.livemint.com/
held in Paris back in 2015. The first ever
global ‘stocktake’ is expected to conclude in
avisiblehand Dubai, and is intended to be a transparent,
party-driven process that informs future cli-
mate action plans under the nationally
determined contributions (NDCs) laid out by
the Paris Agreement.
Ironically, CoP-28 is being held in the
UAE, a member of OPEC and the world’s
seventh largest producer of oil. Controver-
sially, Sultan al-Jaber, the former head of
Abu Dhabi National Oil Company (ADNOC),
is the president of CoP-28. Leading up to the
conference, al-Jaber has been busy making
This PDF was uploade To Telegram channel_https://t.me/Magzines_latest_Newspaper(send Me Message telegram ya WhatsApp This number 8890050582)
Rajasthan. This 2,245-megawatt (MW)
installation was financed with $775 million
from the Climate Investment Fund and
another $1.4 billion from development
finance institutions. The multi-phase
project is now fully operational and the
operating units are performing satisfacto-
rily. Many of the power purchase agree-
ments (PPAs) to feed the grid that were ini-
tially delayed are now in place with the Solar
Energy Corporation of India (SECI), a AAA-
rated entity that is financially capable of
honouring 25-year-long contracts.
Climate action typically involves slowly
mitigating hydrocarbon emissions while
also increasing the scale and breadth of ‘off-
The most popular global
off-setting projects include
reductions too
forestry schemes, hydro-
electric dams, solar and
slow and offset
wind farms, waste disposal programmes
and greener household
appliances. For instance, ineffective
the world’s largest carbon
sequestration programme
in Wyoming, US, which has benefitted from
government subsidies, has either released its
captured carbon dioxide or sold it to fossil
fuel companies to assist in fracking, a tech-
nique used to extract oil and gas.
The UAE presidentship of CoP-28 is
emblematic of the severe contradictions in
$50-100 trillion actually).
While not fast enough,
some progress has been
made. US CO2 emissions
peaked in 2007 at just
under 7 gigatonnes of CO2
equivalent (GtCO2e) and
are now running at about
5.5 GtCO2e. The EU now
emits only 2.7 GtCO2e, down over 40% from
its peak. The rest of the world, including
China and India, still contribute to an annual
growth of about 1% in emissions and are not
anywhere close to their peaks.
The idea that countries can assuage their
‘guilt’ for emissions by offsetting these, so as
tion (‘greenwashing’). While ambitious NZ
targets have been announced, the perform-
ance of E and O are faltering and several
years behind schedule, rendering the con-
cept of NZ in its current form undeliverable
at the existing pace of change.
To use a football metaphor, CoP-28 is
likely to achieve a mid-field lateral pass of
the ball that’s well short of goal. The net zero
concept will likely live on with only modest
progress on emissions reduction and offsets,
well short of what is required for the long-
term pledges of Paris to be met.
P.S: “The whole secret lies in confusing the
enemy, so that he cannot fathom our real
intent,” said Sun Tzu in ‘The Art of War.’
 14 TuesDay, 5 December 2023
New Delhi BUSINESS OF LIFE WELLNESS LIVEMINT.COM

8 ways to build habits If you are already

thinking of your new year
resolution, habit coach
Ashdin Doctor has eight

and stick to resolutions

Mahalakshmi Prabhakaran
ISTOCKPHOTO
pointers that can help
you in your pursuit

Instead of going big, it’s far more effec- physical movement every day. And a
mahalakshmi.prabhakaran@htlive.com tive to create tiny habits that you can fol- third habit is ensuring that one meal that
low every day. For instance, instead of I have in the day is controlled by me.

W
e are barely a
month away from
ringing in a new
year, synonymous
with resolutions to
bring positive changes to our lives. While
it is true that it’s never too late to start a
new habit or routine, most of our resolu-
tions fall by the wayside within a month.
In her book, Good Habits, Bad Habits,
Wendy Wood, a social psychologist at
the University of Southern California,
attributes this to the fact that more than
motivation, our unconscious habits dic-
tate our behaviour.
Once you know that, it’s easier to
understand that small incremental
changes work better than grand resolu-
tions while trying to break old habits.
Relying on willpower alone isn’t enough
to change something about ourselves.
While determination and intent are
admirable, both are likely to fail you at
some point. Keeping it simple is the way
to effect positive change.
Popular habit coach Ashdin Doctor
recommends creating tiny habits that
you can follow over making grand reso-
lutions. Once these small new steps
become new habits, you’ll find it easier to
push further and hold to bigger resolu-
tions. In this interview with Mint, Mum-
bai-based Doctor who has authored the
books, Change Your Habits Change Your
Life, and One Habit a Day, lays down
eight simple adages to keep in mind that
can help you stick to your resolutions
#1 Your morning sTarTs THe
nigHT before
It’s a general belief that your entire day
depends on what happens in the first few
hours of the day from the time you wake
up. I think that belief needs a bit of a
rethink: Your morning actually starts the
night before. But since most of us unaware
of this, we end up ruining our nights—be
it by binge watching shows or mindless
scrolling on social media, and then we
automatically expect the morning to be
good. That rarely happens. When it comes
to a good start to the day, you need to
remember that it’s not just about what you
do, it’s also about what you are thinking.
So, if you wake up in the morning and your
first thought is, “Oh god, life sucks!” well,
that is what your day is going to be like.
#2 THougHTs are HabiTs Too
Most of us have been brought up thinking
that habits are physical activities that you
do—whether it is making your bed, exer-
cising, following a balanced diet or sleep-
ing early. What people rarely tell you is
that your thoughts are habits too.
‘I am not good enough’ for instance is
a mental habit that plays in our minds and
spills out into our lives all the time.
Another limiting mental habit is thinking
‘I don’t have enough money’.
Our financial mindset is framed from
thoughts we were fed while growing up
that ‘money doesn’t grow on trees, so you
have to save constantly.’ That it all starts
with your mindset is a thought that could
bear reiteration. It is amazing how every-
thing works out if you are not in the
mindset of a struggle. The problem is we
think of everything as a struggle.
#3 CreaTe TinY HabiTs THaT
You Can follow easilY
When it comes to daily routines, most
people continue to stay in their comfort
zones because they believe that they don’t
have the discipline or the motivation to
change. And when we do try, we tend to
give up after a while. And that is solely
because when we do try to incorporate
new habits, we tend to go extreme.
For instance, in order to lose weight, we
decide to follow an extreme diet or go for
hour or hour-and-a-half-long exercise
regimes. The problem with this attitude is
that it can get difficult to keep the momen-
tum going after a few days.
trying out a drastic diet, you could proba-
bly start with intermittent fasting. Or
instead of pumping up weights outright,
you could start with four-minute Tabata
exercises. Once you gain consistency in
these new habits, you’ll find it easier to
push further.
#4 Don’T THink of HabiTs as
gooD or baD
Growing up, we were told of habits that
are good and habits that are bad. Instead,
it’s far more liberating to look at habits as
those that serve you and those that don’t
serve you. Labelling something as ‘good’
or ‘bad’ holds judgement in it. Instead,
look at a habit and see if it’s helping you to
take your life in the direction you want or
if it’s taking you away from it.
#5 You inHeriT HabiTs
Every moment of your day, there’s a
habit that’s taking place. If you are talk-
ing to someone on the phone and walk-
ing at the same time, that’s a habit being
practised. What’s to be noted is that
while some are conscious habits, a lot
more of them are unconscious habits.
This stems from the fact that along with
our genes, we also inherit habits from our
parents. So, if everyone in your family has
a sweet tooth, you are also going to habit-
ually consume sweets more. If nobody in
your family runs, you are not going to
make running a natural habit. But in fam-
ilies that exercise, you will see a big dif-
ference in how the next generation
thinks about exercising.
#6 Have a lisT of HabiTs You
will never Compromise on
There are three habits that I never com-
promise on. One is my daily gratitude
practice where I write things I am truly
thankful for in my life. I find myself feel-
ing more tired or lethargic on days that I
don’t move, so I ensure I get some form of
From a habit coach’s point of view, these
core habits that you don’t compromise
on are called keystone habits. Whether
it’s meditation or working out everyday,
having keystone habits is important
because they allow you to be in control of
daily aspects of your life.
#7 praCTiCe a HabiT
of graTiTuDe
Today, most of us are living with the con-
stant worry of ‘What’s going to happen
tomorrow?’ There are very few of us who
are looking at our lives feeling thankful
for everything that’s working right for us.
This is precisely why gratitude practice is
a powerful habit to inculcate. When you
are in a state of gratitude, you can’t simul-
taneously be in a state of fear. Having a
habit of gratitude helps you find
moments in your day that you can be
thankful for.
#8 Do noT be in a HurrY To
form a HabiT
You’d have come across a statement that
it takes you 21 days to form a habit. That
claim is completely false. The origins of
that idea came from a book called Psycho-
Cybernetics authored by a plastic surgeon
(Dr. Maxwell Maltz). He’d written about
how it takes 21 days for an amputee to get
over their phantom leg syndrome and get
used to the fact that they’ve lost a limb.
However, that is not something you need
to worry about when inculcating a new
practice. My advice? Do not be in a hurry
to form a habit. For instance, if you want
to make a habit of reading books, start off
by reading one page. That one page will
increase to two-three pages until reading
becomes a part of your routine. Instead of
giving yourself a timeline, give yourself
time to nurture a new ritual.
For more health and wellness stories,
visit lifestyle.livemint.com/health.

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