The World Opinion

Category: Economy

  • India’s Power Sector To Rise 2.2 Times To USD 280 Bn By FY30: Report | Economy News

    New Delhi: India’s power generation and transmission sectors are poised for substantial growth, and as the country enters a phase of capex-driven GDP growth, the power intensity should rise, said Jefferies in its latest September report. The report added that the power generation and transmission sectors are projected to rise 2.2 times to USD 280 billion between FY24 and FY30 compared to FY17-23.

    The American firm noted that the power intensity will be essential to sustain the economy’s growth, as the GDP is expanding at a rapid pace. It further added that the power consumption is expected to grow more than 7 per cent annually. The report anticipated that by FY30, India’s total power generation capacity will need to increase from 442 GW in FY24 to 673 GW to avoid power shortages.

    This expansion will drive further investment in thermal power, which is expected to play a vital role in maintaining grid stability, the report added. The country’s thermal power plants, which currently operate at around 65-70 per cent plant load factor (PLF), will play a critical role in meeting this demand.

    The average annual PLF for thermal power plants is anticipated to surpass the peak levels observed in FY08 by FY28, with thermal utilisation rates already hitting 74 per cent in FY25 to date. However, it also highlighted that the peak power deficits are becoming more frequent, driven by years of underinvestment in the sector.

    To prevent regular power shortages, the focus will be on accelerating capacity additions and boosting investment in power transmission and distribution (T&D) equipment, Jefferies said. It stated that the capacity additions are projected to rise significantly, especially in thermal power where the annual addition rate is set to increase to 17 GW from the current 2-5 GW.

    In line with traditional energy sources, the capacity of renewable energy will also grow rapidly. The annual capacity addition for renewables is expected to increase 3.5 times between FY24 and FY27 compared to FY10-20, it estimated. India has set the target to achieve 450 GW of renewable energy target by 2030.

    The power transmission sector is also set for significant growth, with the bid pipeline increasing seven-fold over the past three years. In February 2021, the pipeline was valued at less than Rs 150 billion, but as of now, Rs 1 trillion in projects are up for bidding.

    According to the report, this rapid expansion will be driven by the government’s focus on expanding renewable energy capacity, alongside the growing needs for storage, green hydrogen, data centres, and electric vehicle infrastructure. 

  • Gold Demand In India Surges Post Duty Cut, Global Market Brace For US Elections And Fed Rate Cut | Economy News

    New Delhi: As global markets brace for potential economic turbulence, the outlook for gold has become increasingly uncertain, especially with the upcoming US elections and possible interest rate cuts by the Federal Reserve (Fed), according to the World Gold Council.

    The global shift towards gold as a hedge against macroeconomic risks is also being reflected in India. The uncertainty surrounding the US election and potential rate cuts has driven up demand for safe-haven assets like gold. These developments have led to heightened activity in the gold options market, reflecting concerns about the near-term future.

     Meanwhile, India, a key player in the global gold market, continues to show strong demand for the precious metal despite global volatility. Globally, economic indicators present a mixed picture. While overall GDP growth is ticking along at 2.5 per cent, the global manufacturing sector, particularly in Europe and China, is experiencing a slowdown.

    In contrast, services continue to support growth figures. In the United States, recent data has been conflicting. Retail sales remain robust, and the stock market continues to climb, but unemployment jumped to 4.2 per cent in August, raising concerns about a possible recession.

    Fed Chair Jerome Powell’s comments at Jackson Hole have hinted at upcoming interest rate cuts, which could impact gold prices. Powell indicated that any rate cuts will depend on incoming data, particularly inflation and labor market conditions. This uncertainty has led to increased use of gold options as a hedge by investors, positioning the metal as a safe haven asset.

    In, the gold market continues to display resilience. Even as China, one of the largest gold consumers, sees outflows from its gold Exchange-Traded Funds (ETFs), Indian gold ETFs have seen increased demand. The Indian market remains a significant force in global gold consumption, driven by cultural and investment needs. August saw a continued rise in gold demand, supported by positive domestic sentiment and festival season buying.

    India’s robust gold market is supported by factors unique to its economy. With inflation pressures easing and economic growth continuing at a steady pace, gold remains a preferred asset for both retail investors and institutional buyers.

    Additionally, as the rupee stabilizes, the cost of importing gold becomes more favorable, boosting demand further. Indian investors, wary of global market volatility, are increasingly looking at gold as a stable investment option, particularly in the current environment where geopolitical risks are high.

    With the US election set for November and the Fed likely to embark on an aggressive rate-cutting path, the gold market in India is expected to remain strong. The ongoing slowdown in China may impact global gold prices, but India’s demand is likely to remain robust, bolstered by the country’s deep cultural ties to the precious metal and a growing recognition of its investment potential in uncertain times.

  • Indian Startups Raise More Than 348 Million Dollars Funding This Week | Economy News

    New Delhi: The Indian startup ecosystem raised more than $348 million in funding this week, as the growth momentum for the industry continued for a second consecutive week. The Indian startups collectively secured $348 million across 19 deals this week, compared to $466 million raised by 16 startups in the previous week.

    The week was led by ride-sharing platform Rapido which raised $200 million in its Series E funding, taking its valuation to over $1.1 billion. The funding round was led by WestBridge Capital. The company said it will use funds to expand its operations across India and scale its technology platform to enhance service delivery.

    Rapido plans to grow its operations across all categories, including bike taxis, three-wheelers, and taxi cabs. Leading digital platform for trade finance Drip Capital secured $113 million in new funding. This includes $23 million in equity from Japanese institutional investors, GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC), and $90 million in debt financing, led by the International Finance Corporation (IFC) and East West Bank.

    Lending platform Moneyview also reportedly raised approximately $30 million in debt through private placements. In August, startups raised about $1.6 billion across 112 deals, which included 27 growth-stage deals worth $1.32 billion and 71 early-stage deals worth $267 million.

    This year, the ecosystem witnessed a surge in large funding rounds (over $100 million). There have been 13 funding rounds valued at over $100 million. Startups like Zepto, Rapido, Lenskart, Flipkart, Meesho and PharmEasy have raised funding in these rounds.

    Quick e-commerce company Zepto raised two rounds of funding of one billion dollars ($340 million + $665 million) in 2024. The company had last raised $340 million in funding at a valuation of $5 billion.

    An eyewear major, Lenskart has also raised funding of $200 million so far in 2024. The valuation of the company is around $5 billion.

  • RBI’s New Rules For Credit Cards: Mastercard, RuPay, Or Visa – Which Network Is Right for You? | Personal Finance News

    RBI New Rules For Credit Card: Good News For Credit Card Holders! Now, users will have the freedom and flexibility to choose their card network from the available ones – Visa, MasterCard, and RuPay while applying for a new credit card or renewing the existing one. 

    This initiative follows the Reserve Bank of India’s introduction of guidelines aimed at improving customer experience and fostering competition in the digital payments sector.

    Rule For New Credit Card Applicants And Existing Cardholders:

    New credit card applicants can now choose their preferred network—Mastercard, RuPay, or Visa. Existing cardholders also have the option to switch networks during the renewal process, providing flexibility to select a different network if preferred. 

    Notably, there are several banks including YES Bank and Bank of Baroda (BOBCARD), have already adopted these changes. Customers applying for credit cards with these banks can select their network preference online or offline. 

    Exemptions For CreditCard Issuers 

    Card issuers with fewer than 10 lakh active cards are not required to comply with these guidelines. Meanwhile, the Issuers that operate their own authorised networks are also exempt. 

    Authorised Card Networks 

    In India, there are five authorised card networks that operate within the payment ecosystem. These include American Express Banking Corp., Diners Club International Ltd., MasterCard Asia/Pacific Pte. Ltd., National Payments Corporation of India-Rupay, and Visa Worldwide Pte. Ltd.

    These networks play a significant role in enabling electronic transactions and promoting digital payments across the country. However, the RBI has made an exception for American Express, as it operates its independent network. Consequently, American Express is not obligated to adhere to the RBI’s guidelines. 

    Visa and Mastercard Credit Card Benefits

    These cards are accepted in over 200 countries worldwide. Both offer premium benefits like access to airport lounges, travel insurance, and discounts at international merchants. 

    However, they often come with higher fees, particularly for transactions in foreign currencies. 

    RuPay Credit Card Benefits 

    RuPay cards are ideal for domestic because of their lower transaction fees, which make them budget-friendly. Thanks to UPI integration, digital payments in India have become seamless.

  • India’s Technical Textile Industry Exports To Cross $10 Billion By 2030: Minister | Economy News

    New Delhi: The Indian technical textile industry exports are projected to cross $10 billion by 2030, Union Textiles Minister Giriraj Singh said on Friday, adding that the niche carbon fibre will likely be produced by India in 2025-26. The global trade of technical textiles is around $300 billion while India’s domestic market size stands at $25 billion with an export of $2.6 billion.

    The minister expressed confidence that the carbon fibre — used in aerospace, civil engineering and defence as an alternative to metal — will be produced by India in 2025-26. Currently, India does not produce any carbon fibre and relies on imports. The minister emphasised the increasing consumption and importance of man-made fibres and technical textiles in all spaces of life, at both a global and domestic level.

    “The government is fully dedicated to the development of the technical textiles industry of India and has taken various steps such as launch of National Technical Textiles Mission, PLI Scheme for MMF Fabric, Apparel and Technical Textiles,” Singh mentioned during an event here organised by the Ministry of Textiles, FICCI and the Indian Technical Textile Association (ITTA).

    The minister also launched the Compendium of the National Technical Textiles Mission (NTTM) and also awarded confirmation certificates to 11 approved startups under NTTM. He informed that 156 research projects have been sanctioned including, development of carbon fibres and support to startups under different areas of technical textiles, under the mission.

    Singh displayed confidence in the ability of the local industry, government and stakeholders in the development of high-performance fibres that have huge applications in different field including aerospace, automobile and construction. The minister reiterated the complete support of the government to become a global leader and the largest manufacturer and market of technical textiles.

    Minister of State for Textiles, Pabitra Margherita, said the nation is advancing towards becoming ‘Atmanirbhar’ in all sectors, including technical textiles. Margherita also mentioned that multiple state governments have taken initiatives for promoting investments, including FDI, in the technical textiles industry and urged other states to do the same.

    The government urged the industry and stakeholders to carry out large scale investments in this sector, including the development of complex machinery to not only cater the local demand but also tap the large global market.

  • Maharashtra Secures 52.46% Of India’s Total Foreign Investment In Q1 Of FY 2024-25 | Economy News

    Maharashtra has once again cemented its position as the top destination for foreign investment in India, attracting a staggering 52.46% of the country’s total investments in the first quarter of the 2024-25 financial year. From April to June 2024, the state received a total of Rs 70,795 crore in foreign direct investment (FDI), far surpassing any other state in India.

    This milestone continues Maharashtra’s two-year streak as the leader in attracting FDI. The state’s dominance is evident as its investments exceed the combined total of all other top-ranking states. Karnataka followed with Rs 19,059 crore, Delhi at third with Rs 10,788 crore, and Telangana, Gujarat, and Tamil Nadu taking the fourth, fifth, and sixth spots with Rs 9,023 crore, Rs 8,508 crore, and Rs 8,325 crore respectively. The combined investment of these states still falls short of Maharashtra’s achievement.

    Commenting on the development, Deputy CM Devendra Fadnavis said, “Congratulations Maharashtra ! Very good news ! Maharashtra leads in FDI with a staggering 52.46% of India’s total investment ! Maharashtra which is consecutively ranked No. 1 for last 2 years in FDI, now has secured maximum investment i.e 52.46% of India’s total FDI in the 1st quarter of the financial year 2024-2025.”

    Congratulations Maharashtra !
    Very good news !
    Maharashtra leads in FDI with a staggering 52.46% of India’s total investment !

    Maharashtra which is consecutively ranked No. 1 for last 2 years in FDI, now has secured maximum investment i.e 52.46% of India’s total FDI in the 1st… pic.twitter.com/IVKjGqzGTI
    — Devendra Fadnavis (@Dev_Fadnavis) September 6, 2024

    The total foreign investment in India for the first quarter was Rs 1,34,959 crore, with Maharashtra’s contribution accounting for over half of this at Rs 70,795 crore.

    A Streak of Success

    This stellar performance builds on Maharashtra’s strong FDI record in the previous financial years. In FY 2022-23, the state attracted Rs 1,18,422 crore in foreign investment—more than Karnataka, Delhi, and Gujarat combined. In FY 2023-24, Maharashtra brought in Rs 1,25,101 crore, surpassing both Gujarat and Karnataka combined once again.

    From 2014 to 2019, during its previous stint in power, Maharashtra had drawn Rs 3,62,161 crore in FDI. Notably, since returning to power, the current administration has attracted an impressive Rs 3,14,318 crore in just two and a half years, approaching the earlier five-year total.

    What Lies Ahead

    While Maharashtra continues to break investment records, the data for the second quarter is yet to be released. Given its current trajectory, the state is poised to maintain its leadership in attracting foreign capital, further strengthening its position as India’s economic powerhouse.

  • Former Swiggy Employee Accused Of Embezzling Rs 33 Crore, Investigation Underway | Economy News

    New Delhi: A former junior employee at Swiggy has been accused of embezzling a Rs 33 crore from the food delivery giant, according to the company’s 2023-24 annual report, as reported by Moneycontrol. The company enlisted an “external team” to investigate the situation and has taken legal action against the former employee.

    “The Group, during the current year, identified embezzlement of funds in one of the subsidiaries by a former junior employee amounting to ₹326.76 million over the past periods..,” according to Swiggy’s annual report released on September 4.

    This comes at a time when the company filed its draft papers on April 26 for an initial public offering (IPO), aiming to raise up to Rs 3,750 crore through a fresh issue and up to Rs 6,664 crore through an offer-for-sale (OFS) which brings the total IPO value to 1.25 billion dollars.

    Swiggy’s revenue saw a 36 per cent growth in FY24 to Rs 11,247 crore, according to its annual report. The company also managed to cut its losses by 44 per cent, reducing them from Rs 4,179 crore to Rs 2,350 crore, thanks to tighter control over expenses.

    Total expenses dropped by 8 per cent to Rs 13,947 crore which is largely due to reduced spending on promotions and marketing which fell from Rs 2,501 crore last year to Rs 1,851 crore in 2023-24. Despite holding a 43 per cent market share, Swiggy still lagged behind its competitor Zomato which leads with 57 per cent in terms of gross order value (GOV).

  • THIS Billionaire Was Once Rejected By Mumbai College, He Went On To Build $220 Billion Empire | Economy News

    Mumbai: Gautam Adani applied for admission at Mumbai’s Jai Hind College in the late 1970s but was rejected. On Thursday, the Chairman of the Adani Group delivered an inspiring lecture to students on Teachers’ Day at the same college. 

    Sharing this information, Vikram Nankani, President of the Jai Hind College Alumni Association, introduced Gautam Adani to deliver the lecture.

    “Fortunately or unfortunately, the college did not accept him and he went on to work full time and pursued an alternative career,” Nankani told the gathering, declaring Gautam Adani as a “deemed alumni” since he had applied to join.

    Gautam Adani had moved to Mumbai at age 16 and started working as a diamond sorter. And the rest is history. He turned to business and went on to build a more than $220 billion empire.

    During his lecture at the college, Gautam Adani said this institution, born from the ashes of India’s partition, is a great example of the resilience of the human spirit.

    “I find it fascinating that, 75 years ago, two visionary professors from the D.J. Sind College in Karachi laid the foundation for this institution in two tiny rooms. Despite the immense challenges and human displacement happening during the partition of our country, they dreamed of a future where the force of education could heal and unite,” said Gautam Adani.

    Sharing his life story, the Chairman of the Adani Group said it was Mumbai that taught him that “To think big, you must first dare to dream beyond your boundaries”.

    “Just as I was turning 19, I was called back by my elder brother to assist in running our small-scale PVC film factory situated near Ahmedabad. The business was faced with many challenges primarily due to extreme government control and restrictive import policies, leading to severe shortages of raw materials. This was my first real encounter with the limitations of the business environment in India,” shared Gautam Adani.

    By the time he turned 23, the trading venture was doing well.

    “And my third major break was about to come – one that would propel us into a new orbit. In 1995, the Gujarat government announced its port-led industrial development plan through public-private partnerships,” said Gautam Adani.

    Around that time, he was approached by the global commodities trader Cargill. It was a proposal to partner for manufacturing and sourcing salt from the Kutch region. While the partnership did not materialise, “we were left with about 40,000 acres of marshy land and approval to build a captive jetty at Mundra for the export of salt. What others saw as marshy barren land, we saw as a canvas waiting to be transformed. That canvas is now by far our nation’s largest port”, Gautam Adani said.

  • Tech Industry Hit By Mass Layoffs: Intel, Cisco, IBM, And Apple Cut Over 27,000 Jobs | Economy News

    Tech companies in August 2024 continued their wave of job cuts with over 27,000 employees from more than 40 companies. This includes major names like Intel, IBM and Cisco facing layoffs. This adds to the growing total of the year with over 136,000 tech workers laid off by 422 companies so far. Here’s a closer look at the major tech layoffs that took place in August.

    1. Intel: Intel is set to lay off 15,000 employees, accounting for over 15 per cent of its workforce as part of a 10 billion dollars cost-cutting plan for 2025. The decision comes after a disappointing second-quarter earnings report. Between 2020 and 2023, Intel’s annual revenue dropped by 24 billion dollars. CEO Pat Gelsinger said, “Intel’s revenue growth shortfall is attributed to high costs and low margins, despite our leadership in the CPU chip revolution 25 years ago.”

    2. Cisco Systems: Cisco Systems is cutting around 6,000 jobs, about 7 per cent of its global workforce as the company refocuses on AI and cybersecurity. This marks the second major round of layoffs for Cisco this year. This marks the company’s second significant round of layoffs this year, with CEO Chuck Robbins commenting that, “Cisco is optimistic about rebounding demand for our networking equipment.”

    3. IBM: IBM has decided to close its research and development operations in China which resulted in over 1,000 layoffs. The company stated that it will now focus on serving private enterprises and select multinational companies within the Chinese market.

    4. Infineon: German chipmaker has announced the layoff of 1,400 employees and plans to relocate another 1,400 jobs to countries with lower labor costs. CEO Jochen Hanebeck explained the move, stating, “The slow recovery in target markets is due to prolonged weak economic momentum and excess inventory levels.”

    5. GoPro: The action camera manufacturer is laying off approximately 140 employees, or 15 per cent of its workforce, as part of an effort to reduce operating costs by 50 million dollars.

    6. Apple: Apple has laid off around 100 employees from its services group which includes teams from the Apple Books app and Apple Bookstore. Earlier this year, the company cut 600 jobs from its Special Projects Group and closed a 121-person AI team in San Diego in January.

    7. Dell Technologies: It has been reported that the company may have laid off around 12,500 employees which accounts for 10 per cent of its global workforce. However, the company has not yet confirmed these layoffs.

  • PV Retails Dip 5% In August; Inventory Totals 7.8 Lakh Vehicles Worth Rs 77800 Crore | Auto News

    Passenger Vehicle Sales In August 2024: Passenger vehicle retail sales in India witnessed a 5 per cent on-year decline in August on account of delayed customer purchases, poor consumer sentiment and persistent heavy rains, industry body FADA said on Thursday. The overall passenger vehicle (PV) registrations last month stood at 3,09,053 units, as compared to 3,23,720 units in August 2023.

    “Even with the arrival of the festive season, the market remains under significant strain… Inventory levels have reached alarming levels, with stock days now stretching to 70-75 days and inventory totalling 7.8 lakh vehicles, valued at an alarming Rs 77,800 crore,” Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania said in a statement.

    Rather than responding to the situation, PV Original Equipment Manufacturers (OEMs) continue to increase dispatches to dealers on a month-on-month basis, further exacerbating the issue, he added.

    “FADA urgently calls upon all banks and NBFCs to intervene and immediately control funding to dealers with excessive inventory,” Singhania said, adding that dealers must also act swiftly to stop taking on additional stock to protect their financial health.

    The OEMs, too, must recalibrate their supply strategies without delay, or the industry faces a potential crisis from this inventory overload, he said. “If this aggressive push of excess stock continues unchecked, the auto retail ecosystem could face severe disruption,” Singhania said.

    Commercial vehicle registrations saw a 6 per cent year-on-year dip in August, while tractor retail sales also witnessed a drop of 11 per cent as compared to the year-ago period. 

    Two-wheeler sales, however, increased 6 per cent year-on-year to 13,38,237 units in August, as compared to 12,59,140 units in the same month last year, on the back of improved stock availability and the onset of the festive season, Singhania said.

    Three-wheeler retail sales also increased by 2 per cent to 1,05,478 units last month, as compared to 1,03,782 units in the year-ago period. Overall registrations last month saw an increase of 3 per cent year-on-year at 18,91,499 units, as against 18,38,501 units in August last year.

    On business outlook in the near term, FADA said it remains cautiously optimistic. While the festive season and improved rural demand present promising opportunities for growth, ongoing weather uncertainties and high inventory levels may temper the overall recovery, it stated.

    To navigate these challenges, strategic inventory management and targeted marketing initiatives will be crucial in maximising festive sales and mitigating risks from adverse weather conditions, it added.