October 16th, 2023 MONDAY ISSUE- 316

THE ECONOMICS HUB

ECONOMIC LEXICON

Insider trading
This is known as the use of non-public information
to gain an advantage in financial markets. It is
illegal in many countries because it discriminates
against other investors and can cause confidence in
the probity of financial markets to fall.
 New Segment

Podcast of the week

From The Chief Editor's List

Women in Economics
The history of economics has largely been written by men about men.
Even when the economics of family became a burgeoning field of study
in the 1970s, the woman’s role was hardly talked about. Claudia Goldin
is a pioneer in the field of gender economics and her latest book Career
and Family places women squarely at the center of the family
economics story. Goldin is the Henry Lee Professor of Economics at
Harvard University and an economic historian. Journalist Rhoda
Metcalfe sat down with Claudia Goldin to discuss her work and how she
came to write the definitive book on gender economics Understanding
the Gender Gap. The interview is part of the IMF series on
extraordinary Women in Economics.
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 IndiGo co-founder Rakesh Gangwal
weighs 'sizable' stake buy in SpiceJet
IndiGo co-founder and former promoter Rakesh Gangwal is
weighing a stake purchase in rival budget carrier SpiceJet,
ET Now reported on Friday.
The stake size could be "sizable" and Gangwal is in
advanced talks with the airline, according to the report.
Gangwal and his wife Shobha Gangwal held 13.23% and
2.99% stakes, respectively in IndiGo operator InterGlobe
Aviation as of June-end, while their Chinkerpoo Family
Trust holds a 13.5% stake, according to exchange data.
SpiceJet is facing multiple financial headwinds and is
looking for funds amid cash crunch. The airline earlier this
year was placed under "enhanced surveillance" by the
aviation regulator.
Various lessors have been seeking repossession of aircraft
leased to the low-cost carrier and some of the cases have
been settled by the airline. About a fourth of its fleet has
been grounded amid fierce competition in the sector.
Recently, it has allotted over 4.81 crore equity shares on a
preferential basis to nine of its aircraft lessors to clear
outstanding dues of Rs 231 crore.
 Tata Motors to sell 9.9% stake in Tata
Tech for ₹1,614 crore

• Tata Motors on 13 October announced to sell its 9.9 percent

in Tata Technologies Limited (TTL) for an aggregate
consideration of ₹1,614 crore, it said in a stock regulatory
filing.
• The automotive major entered into share purchase
agreements to sell its stake in its subsidiary, for which TPG
Rise Climate is the lead investor that ascribes an equity
valuation of ₹16,300 crore of TTL.
• The expected date of completion of the sale is 27 October
2023 or such other date as may be mutually extended by the
parties, the release said.
• Also, the release said that the amount of ₹1,467 crore will
be received by Tata Motors Limited as consideration for the
sale of its 9.0 percent stake in TTL to the TPG Rise Climate
SF Pte. Ltd – a climate-focused private equity fund.
Cartoon Today
 Government’s EV Manufacturing
Policy

• The government is considering a policy to incentivize local

production of electric vehicles (EVs).
• Already several companies, varying from foreign manufacturers
like Tesla and VinFast carmakers such as Maruti Suzuki, Hyundai
Motor India, Kia, Tata Motors and Mahindra & Mahindra (M&M),
have shown interest in EV manufacturing in India.
• The DPIIT (Department for Promotion of Industry and Internal
Trade) has started discussions to implement a scheme for
companies that have invested in India to begin manufacturing EVs
in the country. This scheme is to provide subsidies on electric four-
wheelers.
• One of the possible effects of this scheme is that it will
simultaneously boost employment and bring down EV prices.
India to be $30 trillion economy by 2050 with per capita income of
$21,000: HDFC Bank chief Atanu Chakraborty

With the pace at which India is growing amid the current global
headwinds, the country's economy is poised to touch the $30 trillion-mark
by 2050,
per-capital income is likely to soar to $21,000 by then, predicted Atanu
Chakraborty, Chairman of HDFC Bank, while addressing an event in New
Delhi on October 11.

With global financial institutions forecasting around 6.3 percent growth

for India this year, at a time when inflation is at about 6 percent, the
nominal gross domestic product (GDP) growth rate would come in at
around 10-12 percent.

If this kind of pace continues for some year, it will make India a USD 30-
trillion economy by 2045-50 with per capita income of USD 21,000.

The Indian economy is currently the world's fifth largest, with a size of
$3.75 trillion.

The per-capita income, as per the government data, stood at ₹98,374 in

2022-23. This is equivalent to around $1,183
 Editors
Shorya Jain Kavya Bansal
XII-C XII-A
(Chief Editor) (Vice Chief Editor)
Shambhavi Varma Angelina Tamang
X-D X-D
(Editor) (Editor)

Columnists
Prakriti Ghosh Janvi Singh
XI-A XI-B
Aarushi
Ojjaswini
XI-B
X-D
Shridula
Acharya Shreyas Jain
IX-E XI-A