NEW DELHI, MuMBAI, BENGALuRu, kOLkATA, CHENNAI, AHMEDABAD, HyDERABAD, CHANDIGARH*, puNE*, LuCkNOw* VOL. 18 NO.

94

Thursday, April 18, 2024

Think Ahead. Think Growth.

mint primer QUICK EDIT

How the rupee Dubai’s

plunge impacts deluge
News of flooding in arid Dubai
the economy might sound odd, but it hap-
pened in spectacular fashion on
Tuesday. Large parts of this
BY SUMANT BANERJI gleaming UAE city of glass-and-
The rupee has fallen to a new low of 83.5 against the dollar. This has steel skyscrapers were left sub-
wide ramifications, making exports lucrative but imports expensive. merged by a severe downpour.
Mint looks at why the domestic currency is falling, how it impacts Dubai received 142 millimetres
everybody and what the RBI can do about it. of rainfall in the first two days of
this week, about as much as it
New low usually gets in a year-and-a-
half. It was a black-swan event,
Daily closing value of rupee against
the US dollar weather wise, and so it under-
standably brought even such an
74 expensively appointed city to a
76.11 ₹/$ (Inverted scale)
standstill as its drainage systems
76
got overwhelmed. The deluge
78 has been pinned on a large
storm system over this part of
80
the Gulf region. To its east, in
82 83.54 Oman, 18 people are reported to
have lost their lives. Beyond
84 proximate changes in heat,
12 Apr 2022 17 Apr 2024
evaporation and air-pressure,
Source: The Reserve Bank of India apart from the region’s cloud-
SATISH KUMAR/MINT seeding exercises that some
By how much has the What are the reasons observers suspect played a role,
1 rupee depreciated?
The value of the rupee fell to an
2 for the fall?
Geopolitical instability has a major
what caused this flood needs
scientific study. Climate change
all-time closing low of 83.54 impact on investors which, in turn, should also be held in suspicion
against the dollar on Tuesday. It sets in motion a chain reaction as a big factor. The correlation
had gone even lower at 83.57 ultimately affecting the value of a between global warming and
during intra-day trade but likely currency. The Iran-Israel conflict freak weather events of rising
intervention by the Reserve Bank on top of the prevailing Israel- severity is hard to overlook. If
of India prevented a further slide. Palestine and Russia-Ukraine wars,
off-the-charts storms are set to
It ended with a 9 paise or 0.10% could potentially disrupt global
depreciation and was still one of supply chains, leading to an increase around the world, we
the better performing currencies increase in the prices of need to worry about disruptions
among Asian economies. The commodities, fuelling inflation. that might be too late to stop
Indonesian Rupiah depreciated This in turn diminishes the through climate action.
2%, Taiwanese dollar 0.34%, South chances of an interest rate cut by
Korean won 0.76%, the yen 0.28%, the US Fed—central banks raise
Thai baht 0.21% and yuan 0.18%. In interest rates to curb consumer
the mid-term however, the rupee spending. Higher rates in the US
has now depreciated by over 9% in
the last 2 years (see table). This is
encourage investors to move
money from different parts of the
MINT METRIC
steeper than the long-term trend. world, including India, to the US. by Bibek Debroy
ISTOCKPHOTO

In Banda, a customer bought a frock,

3 How does it affect the
Indian economy?
A weaker rupee makes imports
Leaving the seller in state of shock.
expensive while it benefits exporters.
Asked to pay ₹50 more
Since India is a net importer of goods For a larger size in the store,
and services—it has a current account
deficit of $9.2 billion in the first half of
He bit off his finger—ad hoc.
2023-24—a fall in the rupee hits a host of
products from electronics and
machinery to plastics and chemicals. A
more direct impact is on oil prices.
QUOTE OF THE DAY
High and uncertain interest
4 Can’t the central bank
do something? 5
The value of a currency is a factor
Are things likely to get
better?
The rupee’s fall coincides with
rates in the US affect the cost
of demand and supply which India sitting on record foreign
of funding elsewhere in
depends on the overall exchange reserves of $648.56 the world. The impact is
attractiveness of a country as an billion. They rose by $2.98 million
investment destination. The in the week ending 5 April and
quite significant.
rupee’s value goes up if foreign have now grown for 7 consecutive
investors flock to either set up weeks. This gives the RBI
manufacturing units (FDI), invest significant headroom to splurge.
in the markets and companies (FII) On Tuesday it intervened to sell
or if exports rise. If the value of the dollars worth an estimated $100- VITOR GASPAR
rupee drops alarmingly, the RBI 200 million to prevent the rupee DIRECTOR OF FISCAL
can intervene by selling dollars from sliding further. It had done AFFAIRS AT THE IMF
from its foreign exchange kitty or the same in 2022 following the
raise interest rates to try and Ukraine war and the US Fed
compete with the US Fed and raising rates. Experts expect RBI to
provide good returns to investors. intervene to stem a further fall.

MINT PODCASTS

STAY INFORMED MANOSPHERE IMPACT MOMENTUM INVESTING

Start your day well informed with the As India Inc works towards workplace Join in an interesting conversation
engaging daily business bulletin ‘Top diversity, discussions on the mano- with Mint’s Anil Poste and Anoop
of the Morning pod- sphere and gender- Vijaykumar, fund
cast.’ In this insight- specific roles are manager and head
ful show, we bring trending among of Research at Capi-
you timely updates social media influ- talmind. Anoop
on global markets, encers, students, shares insights into
the dynamic busi- and young adults. what sets momen-
ness world and Shrabonti Bagchi tum investing apart,
emerging trends, ensuring you kick- and Devina Sengupta from Mint delve the key factors in identifying momen-
start your day with valuable insights into the impact of the manosphere on tum stocks, and how to manage risk in
and a wealth of knowledge. the youth. this strategy.
 PLAIN FACTS

ElEcTioNS 2024 STATES iN NUmbErS

This is the third part of our ready reckoner series on India’s 36 states and
Union territories (UTs)—their economies, politics, and hot issues—as they
vote in the coming general elections. Today we focus on four more
north-eastern states that are set to vote starting this week.

SIKKIM POLLING
DATE
Party standings in 2019 elections 19 Apr
(1 seat)
SKM Contribution to India's GSDP average growth,
GDP (share in %) FY14 to FY23 (%, CAGR)
0.18
Sikkim 6.9
0.17 India 5.6
0.16
On the poll trail CPI inflation rate, 2023-24 (in %)
 Definition of who
0.16
0.15 Sikkim
qualifies as 'Sikkimese' 3.5
 Alleged corruption 0.14 5.4
India
under current regime
0.13
Unemployment rate (in %),
0.12 age 15+ (CWS), 2022-23

0.11 Sikkim 1.7

2013-14 2022-23 India 5.1

Double-engine tracker Share (in %) of population living in multidimensional

Parties in power since 2014 BJP/allies Other parties poverty, 2019-21
Sikkim 2.6
26 May 2016 2018 2020 2022 31 Mar
2014 2024
India 15

TRIPURA
Double-engine tracker POLLING 19 Apr 26 Apr
DATE (1 seat) (1 seat)
Parties in power since 2014 BJP/allies Other parties

26 May 2016 2018 2020 2022 31 Mar Party standings in 2019 elections
2014 2024
BJP

Contribution to India's GSDP average growth, On the poll trail

GDP (share in %) FY14 to FY23 (%, CAGR)
 Issues related to
0.28 Tripura 7.3 indigenous communities
0.27  Price rise
0.27 India 5.6

0.26
CPI inflation rate, 2023-24 (in %)
Tripura 6.1
0.25
India 5.4
0.24
Unemployment rate (in %), Share (in %) of population living in multidimensional
0.23 age 15+ (CWS), 2022-23 poverty, 2019-21
Tripura 1.7 Tripura 13.1
0.22
2013-14 2022-23 India 5.1 India 15

MANIPUR
POLLING
DATE 19 Apr 26 Apr
Party standings in (2 seats) (1 seat)
2019 elections (Partial voting in Rest of the voting
BJP Outer Manipur seat) in Outer Manipur

NPF
Contribution to India's GSDP average growth,
GDP (share in %) FY14 to FY22 (%, CAGR)
0.16
0.16 Manipur 4.8
India 5.6

0.15 CPI inflation rate, 2023-24 (in %)

Manipur 10
India 5.4
On the poll trail 0.14
 Ethnic conflict over Unemployment rate (in %),
past year age 15+ (CWS), 2022-23
 Immigration from Manipur 4.7
Myanmar 0.13
2013-14 2021-22 India 5.1

Share (in %) of population living in multidimensional

Double-engine tracker poverty, 2019-21
Parties in power since 2014 BJP/allies Other parties
Manipur 8.1
26 May 2016 2018 2020 2022 31 Mar India 15
2014 2024
GSDP data not available for FY23.

ARUNACHAL PRADESH
POLLING
Double-engine tracker Party standings in DATE
Parties in power since 2014 BJP/allies Other parties 2019 elections 19 Apr
(2 seats)
BJP
26 May 2016 2018 2020 2022 31 Mar
2014 2024 On the poll trail
 Infrastructural
development
Contribution to India's GSDP average growth,  Border issues
GDP (share in %) FY14 to FY23 (%, CAGR) with China
0.15
0.15 Arunachal Pradesh 6.1
India 5.6

CPI inflation rate, 2023-24 (in %)

0.14
Arunachal Pradesh 3.2
India 5.4
0.13
Unemployment rate (in %), Share (in %) of population living in multidimensional
age 15+ (CWS), 2022-23 poverty, 2019-21
Arunachal Pradesh 4.9 Arunachal Pradesh 13.8
0.12
2013-14 2022-23 India 5.1 India 15

SKM: Sikkim Krantikari Morcha, BJP: Bharatiya Janata Party, NPF: Naga People's Front
Double-engine tracker: BJP uses the term "double-engine" to describe a common alliance in power in both the Centre and the state, which it claims is good for the
state's progress;
On the poll trail: The issues are selected based on news reports on what politicians and voters are discussing, and may not reflect the biggest ground-level issues.
Sources: Election Commission of India, ministry of statistics and programme implementation, Periodic Labour Force Survey, Niti Aayog, Mint research and calculations
COMPILED BY MANJUL PAUL AND NITI KIRAN; DESIGN BY PARAS JAIN/MINT

PEANUTS by Charles M. Schulz

 NEw DElhI, mUmBAI, BENGALURU, KOLKATA, CHENNAI, AHmEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCKNOW* VOL. 18 NO. 94 Rs. 10.00 . Price with Hindustan Times Rs. 15.50 16 PAGES

Thursday, April 18, 2024

A high-stakes battle in Tamil Vi’s priority is to clear vendor

livemint.com Nadu, BJP’s final frontier uP10 dues, says CEO Moondra uP5

SENSEX 72,943.69 0.00 NIFTY 22,147.9 0.00 DOLLAR ₹83.54 ₹0.00 EURO ₹88.81 ₹0.00 OIL $89.75 $0.46 POUND ₹104.15 ₹0.13

Exam rule floated World Bank plans $1 billion DON’T MISS

BLOOMBERG

for SBI to back storage, EVs

for derivatives trip Utpal Bhaskar
[email protected]
NEW DELHI
Bourses propose testing knowledge, risk profile of retail investors
T
he World Bank plans to
provide a $1 billion line Digital competition bill may
Ram Sahgal of credit to the State be tabled in winter session
[email protected]
mUmBAI
RISK ChAPTER Bank of India (SBI) to support
the expansion of Battery
The earliest the government can introduce
the digital competition bill is in the winter
Index options’ premium turnover has grown rapidly but is not Energy Storage Systems session of Parliament, a person aware of the

W
ant to trade in der- disproportionate to cash market turnover, unlike notional turnover. (BESS) and electric mobility in development said, reflecting unease among
ivates? Take an the country, two people aware big tech firms over provisions seeking to
Average daily premium turnover change the way they behave. >P2
exam. Also, prove Average daily cash turnover of the development said, a
your networth is in  trillion move that helps India quicken
high enough to 0.7 its green energy transition.
stomach the risks. That, in essence, is The proposal aims to help Regulator takes action against
0.6
what a possible entry barrier to deri- attract early investments and several resolution professionals
0.5
vates trading could look like as regu- mobilize private capital and The line of credit will help improve air quality, reduce greenhouse A dozen professionals administering
latory concerns continue to play out 0.4 commercial financing. The gas emissions and reduce dependence on imported fossil fuel. MINT distressed firms taken over by lenders have
over the risks of retail investors trad- 0.3 amount will be disbursed in faced disciplinary action by Insolvency and
ing in futures and options contracts. 0.2 tranches. giga watt (GW) of green energy electricity, which involves a Bankruptcy Borad of India (IBBI) since
Two frameworks suggested by The line of credit will help capacity annually to reach 500 concerted push for green January, showing the regulator is taking a
0.1
stock exchanges to markets regula- improve air quality, reduce GW renewable capacity by mobility, including EVs. strong view of alleged lapses. >P2
0
tor Sebi (Securities and Exchange FY20 FY21 FY22 FY23 FY24 greenhouse gas (CHG) emis- 2030. However, limited charging
Board of India) for consideration by Source: NSE sions and reduce dependence “The proposed project is points and the high cost of EVs
a proposed committee are under- on imported fossil fuel in an under preparation and the have deterred buyers so far, Vedanta Resources targets
standing the product and its risks, TRADE TEST unpredictable global energy details are being finalized,” a limiting adoption. earnings of $7.5 bn in 2 years
and trading in proportion to one’s NETwORTh criteria PROPOSED panel ThE timeline for market. This also comes at a World Bank spokesperson Experts say such funding by Anil Agarwal on Wednesday said his group’s
networth (measuring a person’s will be based on a will have officials from setting up the panel time when global crude oil said in response to a Mint multilateral organizations are UK-based flagship Vedanta Resources Ltd
wealth) through KYC (know your person’s wealth Sebi and exchanges is still unclear prices have risen after ten- query. Queries emailed to an required to speed up India’s will be achieving an annual operating profit of
customer) norms at the broker’s end. sions escalated in the Persian SBI spokesperson on Monday green energy transition. $7.5 bn within the next two years. Agarwal
A proposed regulatory committee Gulf. evening remained unan- “India desperately needs said it will also deleverage Vedanta
comprising officials of Sebi and stock “Under the products framework, He added that under the networth Large battery storages or swered till press time. more storage capacity to firm Resources Ltd by $3 bn in the next 3 years.>P5
exchanges could consider these two an investor should have full knowl- criteria, the trading exposure would BESS can help India’s electric- According to the Central up renewable power output
aspects, according to four market edge of the product she is trading in,” be based on a person’s wealth. ity grids, given the intermit- Electricity Authority (CEA), profile. However, battery stor-
experts aware of the matter. said one of the people cited above on tent nature of electricity from India’s apex power sector age has been slow to take off Zee board clears rejig, Goenka
Although the timeline for setting condition of anonymity. “Since TURN TO PAGE 4 clean energy sources such as planning body, India will need because of high cost and the to steer domestic business
up the panel or its composition is still index options (Nifty and Bank Nifty solar and wind. The electricity 27GW of grid-scale battery lack of domestic expertize
Zee Entertainment Enterprises Ltd’s board of
unclear as the country heads for Lok contracts) are the most popular Scan the code generated by solar and wind energy storage systems by across the value chain,” directors has endorsed a new organizational
Sabha polls, the rise in retail and pro- product among retail investors, it is to read Mint’s projects are stored in large bat- 2030 with four hours of stor- said Vinay Rustagi, senior framework proposed by managing director
prietary speculation across deriva- proposed that they would have to full coverage teries and supplied when age. As part of its energy tran- director and head, renewables, and CEO Punit Goenka. Goenka had
tives such as equities, commodities clear mandatory exams on options on the boom required. This assumes signifi- sition efforts, India is also CRISIL. proposed to leverage synergies among the
and currencies, until recently, has every year to be able to trade in in derivatives cance given that the govern- focusing on the electrification core business segments. >P7
drawn regulatory concern. derivatives.” ment’s playbook is to add 50 of its economy by greening TURN TO PAGE 6

Fresh drive
While sector-specific funds have existed for some time, it is only
now that they are taking centre stage.
Vishal Mega Mart picks 5 A tale of fickle GDP forecasts, in charts
By Manjul Paul

bankers for $750 mn IPO

Sector  VCs invested [email protected]
ARTIFICIAL INTELLIGENCE CLIMATE CHANGE/CLIMATE TECH The International Monetary Fund (IMF) on Tuesday raised India's economic growth projection for
 SenseAI, Good Capital  Avaana Capital, Aavishkar 2024-25 to 6.8% from 6.5% projected in January. Other major agencies have also made upward
Group, Synapses, ADB Ventures
revisions, confirming India's status as the fastest-growing major economy. But these forecasts
MEDIA TECHNOLOGY HEALTHCARE Dipti Sharma & Sneha Shah ICICI Securities, Kedaara Capi- should be read with a pinch of salt. The IMF gives nine projections for GDP for a given year, issued
 Audacity Venture  Quadria Capital, Somerset over a span of 24 months. Few of these projections tend to match the eventual growth rate, a Mint
Capital Indus Capital Partners, B Capital mUmBAI tal, and Partners Group
analysis of data for the last five years shows. IMF’s quarterly reports have made numerous revisions
remained unanswered till press
PROPERTY TECHNOLOGY FINTECH to India's growth projections, both upwards and downwards—almost in equal measure (barring the

S
 Cedar Capital, Beams upermarket chain Vishal time. Jefferies and JP Morgan pandemic year, when downgrades were common). The World Bank and several private forecasters,
 Spyre Venture Fintech Fund Mega Mart Ltd has declined to comment. too, seldom get it right.
SUSTAINABLITY MOBILITY appointed Kotak Mahin- Vishal Mega Mart joins a
Chart 1. Several major global agencies have Chart 2. Even excusing the covid years, forecasters
dra Capital Co, ICICI Securi- queue of PE-backed Indian
 Caret Capital  AdvantEdge revised India’s GDP forecasts upwards often get it wrong; here's IMF's example
ties, JP Morgan, Morgan Stan- companies seeking an IPO over India's GDP growth projections for 2024-25 (in %) How IMF changed its projections for India's GDP growth
FOOD & AGRITECH ley and Jefferies as bankers for the next 6-12 months, including Earlier Revised rate for each year (in %)

 Omnivore Capital
an initial public offering (IPO) Ola Electric, FirstCry, Aadhaar IMF 6.8 2019-20 2020-21
9.5 11
up to $750 million, three peo- Housing Finance, Indegene and World Bank 6.4 6.4 First projection
Source: Mint research ple aware of the development GoDigit. Moody's (2024) 6.8 7.5
Fitch Ratings 7.0 Actual: 0
said. Unlike D-Mart, Trent and S&P Global
5.5 3.9%

Niche funds step

6.8
The company, which com- In FY23, the company opened Reliance Retail, which operate Morgan Stanley 6.8 3.5 −11 Actual:
petes with Mukesh Ambani’s 56 franchisee stores. MINT company-owned outlets, Vis- 6 6.5 7 Ninth projection -5.8%

Reliance Retail, Tata Group’s hal Mega Mart has its own 14 2021-22 9.3 2022-23
Chart 3. IMF's report card is full of upgrades

up, backing STEM

Trent and grocery giant Ave- “The valuation will be deter- stores and franchisee stores. In and downgrades
nue Supermarts, is expected to mined by one of the private FY23, it opened 56 franchisee Number of revisions made by IMF for each year's GDP 7 8.0 Actual:
Actual:
make its IPO filing by the end of equity funds supporting the stores, and an average of 64 projections (total eight updates per year) 9.7% 7%

the year, the people said on company, though their initial franchisee stores between Upgrades Downgrades No revision

cos to prop-tech
0 6.7
condition of anonymity. valuation request leans towards FY20 and FY23. It ended 2023 2019-20 1 6 1
Vishal Mega Mart is owned the higher end. Nonetheless, with 589 franchised stores in 8.5 2023-24
6.8
2024-25

by Switzerland’s Partners the final valuation will be con- over 350 cities, with total store 2020-21 1 7
7.5
Priyamvada C have joined the likes of Audac- Group and India’s Kedaara tingent upon the feedback area of over 10.6 million sq. ft. Latest
6.5
2021-22 4 3 1 estimate: 7.8%
6.5
[email protected] ity, Caret Capital, SenseAI, and Capital. The two private equity received from the prospective The firm’s consolidated reve-
BENGALURU Good Capital, among others, in firms had acquired it from TPG investors,” said one of the three nue grew 36% to ₹7590 crore in 2022-23 3 3 2 5.5 6.2
Only six projections so far.
driving this trend. and Shriram Group for $350 people cited above, who spoke FY23, driven by more outlets IMF gives nine projections for a year, the first in January of two fiscal

S
pecialized venture funds “Thematic funds tend to cre- million in 2018. According to on condition of anonymity. and steady same-store sales 2023-24 3 3 2
years prior (e.g. January 2019 for 2020-21), and the last in January of
focused on emerging ate an ecosystem and help port- the people cited above, the Queries emailed to spokes- growth. the same year (e.g. January 2021 for 2020-21). The Indian government
2024-25* 2 1 2 estimates India's GDP growth in FY24 at 7.6%.
niches are rising in India, folios leverage the fund from a company’s owners expect a val- persons of Kotak Mahindra
*Only five updates issued so far since the first projection in Jan 2023. Source: IMF, Mint research and analysis
competing with larger sector- go-to-market perspective, so uation of $5 billion. Capital Co, Morgan Stanley, TURN TO PAGE 6
agnostic peers and signalling capital is differentiated and val- SARVESH KUMAR SHARMA/MINT

growing maturity in the coun- ued more by entrepreneurs and

try’s startup funding ecosystem. investors (LPs),” Pankaj Bansal,
Over the past 6-12 months,
specialized funds have sprung
up in sectors such as prop-tech,
co-founder and managing part-
ner at Caret Capital said, adding
that many LPs use thematic
Musk’s Starlink cracks down on growing black market
supply chain, media-tech, funds to back innovative ideas
STEM and climate-tech, sev- to their own ventures and even Nicholas Bariyo terminated by the end of the users access via white, pizza- to the official Starlink availabil-
eral executives and fund man- acquire if opportunities exist. [email protected] month. The emails, viewed by box-sized devices that connect ity map.
agers told Mint. Gurugram-based Caret the Journal, noted that using to Starlink satellites, as an easy But thousands of users

E
According to a Bain Capital Capital, a $50-million sustain- lon Musk’s SpaceX has Starlink in areas where it hasn’t and fast way to get the internet across the globe have found
report released this March ability fund established in begun a crackdown on been approved by local regula- in remote or rural areas where ways around local restrictions,
titled ‘India Venture Capital 2020, focuses on mobility, dis- users who are connecting tors was against the company’s regular broadband connec- usually by purchasing Starlink
Report 2024’, even as fund- tribution and employment. Its to its Starlink high-speed inter- terms of service. tions might be unavailable or kits in countries where the ser-
raising slowed to $4 billion in portfolio typically comprises net service from countries “The availability of our unreliable. vice is authorized and then
2023, domestic VCs stepped startups that are working on where it hasn’t been autho- Mobile Service Plans is contin- Since launching the first signing up for one of the com-
up, driving more than 90% of three aspects of the value rized—tak- gent upon operational Starlink satellites pany’s roaming packages. Mid-
the amount and, significantly, chain—goods and services ing steps to various fac- in 2019, SpaceX has been rush- dlemen companies that offer to
launching several funds supply chain; human capital close an tors, includ- ing to get regulators around the activate Starlink and send the
focused on emerging themes. supply chain; and assets and expanding ing regula- world to approve the service. kits to users in places where
While sector-specific funds infrastructure supply chain. black market for the company’s tory approvals,” the emails said, By late March, 72 countries had they aren’t officially available
have existed for some time, it is Some of its companies include satellite kits highlighted by a referring to Starlink roaming SpaceX’s Starlink sells internet connections using the world’s authorized Starlink, according have sprung up in countries
only now that they are taking Mooofarm, which operates in recent Wall Street Journal products that allow subscribers largest fleet of satellites in low-Earth orbit. BLOOMBERG to the company. like the United Arab Emirates
centre stage, as investors the dairy supply chain sector; investigation. to use its internet services in Jurisdictions that haven’t and Mozambique.
become more discerning and Xindus, which simplifies Starlink customers in Sudan, different countries. sian military units fighting in ment. approved the service include Starlink said in a corporate
look to make targeted bets in exports for SMEs; and supply Zimbabwe and South Africa The notifications were sent Ukraine and a brutal militia in SpaceX’s Starlink sells inter- India and much of Africa. The presentation on its 2023 per-
sunrise industries to maximize chain solution provider have received email notifica- just days after the Journal pub- Sudan—to bypass local regula- net connections using the service also isn’t available in formance that it had more than
returns on capital deployed. Celcius. tions from the company in lished an investigation into the tory restrictions on Starlink. world’s largest fleet of satellites Russia and China, and SpaceX 300,000 customers using the
Newer funds such as Syn- recent days, warning that their growing black market that has A SpaceX spokesman didn’t in low-Earth orbit. The com- isn’t seeking permission to
apses, Spyre and Cedar Capital TURN TO PAGE 6 access to the service would be allowed users—including Rus- respond to a request for com- pany markets its service, which offer Starlink there, according TURN TO PAGE 6
02 ThursDAy, 18 April 2024
New Delhi ECONOMY & POLICY LIVEMINT.COM

m MINT SHORTS
EC: Share details of aircraft,
India-Japan free trade deal New rules
issued on
helicopters used in campaigning
Mumbai: The Election Commission of India has asked political
parties to furnish details of aircraft and helicopters being used for
campaigning, including their origin and destination and details
likely to be reviewed soon clinical trial
protocols
of people ferried in them. A letter by Tejas Samel, deputy election
officer of Mumbai Suburban district, dated 12 April, said such Somrita Ghosh
information has to be furnished three days before the journey to [email protected]
the district election office, but that duration has now been The trade balance has been mostly in favour of Japan since the treaty was signed in 2011 NEW DELHI
reduced to 24 hours. PTI

T
he drug regulator has
Dhirendra Kumar & “Among other things, the Indian side issued draft guidelines
Centre issues fresh guidelines Rhik Kundu wants the Japanese side to relook at aimed at strengthening
some of the non-tariff measures, which protocols for clinical trials, a
to protect ship movement NEW DELHI have made it tough for Indian compa- process essential for drug
AFP
nies and MSMEs,” the person men- development but also one that

I
ndia’s 2011 free trade deal (FTA) with tioned above said. could put lives at risk.
Japan is likely to be reviewed in the Issues like rules of origin (ROO) and Pharma companies will be
coming months, with New Delhi product-specific rules (PSRs) will be dis- required to report any prema-
keen to minimize the trade deficit cussed in the review, the person added. ture termination or adverse
with Tokyo, two people aware of the Product Specific Rules (PSRs) deter- events of clinical trials within
matter said. mine the circumstances in which goods set timeframes as well as pro-
While India is working on initiating imported from a country, having com- vide more detailed information
negotiations with Japan for a review of ponents or inputs from a third country, on the tests, as per draft guide-
the deal, called a comprehensive eco- are still eligible for preferential tariffs. lines issued by the Central
nomic partnership agreement (Cepa), According to the World Trade Orga- Drugs Standard Control Orga-
the Japanese are also open to a review, nization (WTO), rules of origin are nisation (CDSCO) for public
one of the persons mentioned above needed to determine the national consultation.The CDSCO aims
New Delhi: India has put the Navy on high alert to said, requesting anonymity. source of a product. “There is wide vari- to maintain product quality and
respond quickly to calls of distress from ships, both “Trade between both the nations is on Indian exports to Japan, in value terms, are much lower than Japanese exports to ation in the practice of governments expedite clinical trials of novel
Indian and foreign flag carriers, moving through the the track. Certain issues need to be India. HT with regard to the rules of origin,” it said. medications and vaccines with
strife-torn Persian Gulf region, where tensions have reviewed and it will be done by sitting “While the requirement of substantial these guidelines. The new rules
escalated since Iran launched a missile strike against across the table during negotiations,” both countries. Indian exports to Japan stood at $5.47 transformation is universally recog- will require pharma companies
Israel on Saturday. SUBHASH NARAYAN the person mentioned above said. However, the trade balance has been billion, according to commerce ministry nized, some governments apply the cri- or sponsors of clinical trials to
“The plan is to review the Cepa soon, mostly in favour of Japan since then, data. terion of change of tariff classification, submit an application before
possibly within the first 100 days of the with India seeing a higher trade deficit Japan’s exports to India have doubled others the ad valorem percentage crite- starting a trial in India and sub-
China’s military plans more drills new government coming into power, as than its East Asian counterpart. Indian since 2010-11, when it stood at $8.62 bil- rion and yet others the criterion of man- mit status reports at prescribed
it is a priority,” the person added. ufacturing or processing opera- periods through the tests.
near Myanmar border India has long pursued its BALANCINg TRADE tion,” it added. Companies would also be
Beijing: China will hold air defence and live-fire drills near its demand for a review. In July 2023, India’s FTAs with the Asean, required to submit a summary
border with Myanmar from Wednesday, state media said, in this commerce and industry minister INDIA is working on JAPANESE are also INDIA and Japan IN FY23, India’s South Korea and Japan have led to a of a trial results, including the
month’s second round of such exercises as fighting between Piyush Goyal said India has asked initiating talks with
Japan for a
open to a review of
the deal, and certain
signed Cepa in 2011,
to extend duty-free/
imports from Japan
stood at $16.50 bn,
significant increase in trade deficit reason for any premature ter-
Myanmar’s ruling junta and rebel forces intensifies.The drills fol- Japan and South Korea to renegoti- review of the deal, issues need to be low-duty market and exports to Japan for New Delhi, said Ajay Srivastava, mination, within three months
low a significant escalation of the conflict last week, when rebel ate the respective trade deals to called Cepa discussed, it is learnt access stood at $5.47 bn founder of the trade think-tank in a paperless format, while any
forces captured the Myanmar town of Myawaddy, a key trading make trade more balanced and GTRI. major adverse events would
outpost near the Thai border, prompting a stream of refugees equitable. The proposed negotiations might have to be reported within 14
into Thailand. REUTERS However, the two reviews are yet to exports to Japan, in value terms, are lion, while India’s exports to Japan have not significantly increase India’s exports days of occurrence.
take place. much lower than Japanese exports to largely remained static. due to the low import duties in partner This is being done to evalu-
India and Japan signed the Cepa in India. The commerce ministry spokesper- countries, potentially resulting in India ate the safety and efficacy of
Campaigning ends for first 2011, which extended duty-free and low- During FY23, India’s imports from son and the commerce secretary’s office importing more post-FTA, he said. clinical trials, states the draft
duty market access for most items for Japan stood at $16.50 billion, while didn’t respond to emailed queries. [email protected] document.
phase of LS polls in 102 seats
PTI

EU, India to boost ‘Digital competition bill not before Nov’

defence ties: envoy Gireesh Chandra Prasad
[email protected]
the world’s most populous
country with a strong internet
NEW DELHI penetration, the threshold of
Shashank Mattoo eration in recent years with a 10 million users on a digital

T
[email protected] first joint naval exercise in the he earliest the govern- platform for designating a dig-
BRUSSELS Gulf of Guinea, and India has ment can introduce the ital economy firm to be ‘sys-
also participated in an exercise digital competition bill temically significant’ was too

T
New Delhi: Campaigning ended Wednesday evening for he European Union’s with EU Operation Atalanta in is in the winter session of Par- low.
102 Lok Sabha seats across 21 states and Union territories (EU) defence and secu- the north-west Indian Ocean.” liament, a person aware of the As per the expert panel
which will go to polls in the first phase on 19 April with top rity cooperation with Over the last few years, India development said, reflecting report on digital competition
leaders of the BJP-led NDA and the opposition INDIA bloc India in the Indo-Pacific is and the EU have launched unease among big tech firms law, a firm should be covered
making a last-gasp effort to woo voters. Leading the charge, expected to increase amid a joint maritime exercises, over provisions seeking to by the proposed law if it meets
Prime Minister Narendra Modi took whirlwind tours of var- worsening of the security including in the Gulf of Guinea change the way they behave. the twin criteria of financial
ious constituencies in the past few days, addressing rallies environment in the region, and the north-west Indian The winter session usually strength and market spread.
and holding roadshows, and asserting that he went to peo- said Richard Tibbels, the Ocean, and set up a number of begins at the end of November These have been set at
ple with hope in 2014, trust in 2019 and guarantee in 2024. grouping’s special envoy for dialogues on defence and or in early December, a win- Indian revenue of ₹ 4,000
In several speeches he said there is “Modi’s guarantee the Indo-Pacific. security. dow considered necessary to The winter session of Parliament usually begins at the end of crore or global revenue of $30
across the country and I am giving the guarantee of fulfill- “The EU has a The 27-nation complete inter-ministerial November or in early December. ISTOCKPHOTO billion, or ₹ 16,000 crore of
ing all these guarantees”. PTI clear interest in Richard Tibbels, grouping has also consultations. gross merchandise value on
an Indo-Pacific EU’s special launched projects The government wants to The proposed law aims to The government intends to e-commerce platforms, or $75
region where envoy for aimed at improv- have extensive consultations prevent what is seen as anti- conduct extensive consulta- billion of global market capi-
US NSA Sullivan says committed to sovereign, inde- Indo-Pacific, said ing security coop- on the bill so that adequate competitive behaviour. tions on framing regulations talization, along with 10 mil-
pendent coun-
he sees India as a eration with public and inter-ministerial These include lack of neu- on this even after framing the lion end-users or 10,000 busi-
partnership with India tries have the Indo-Pacific consultations go into finaliz- trality of online retailing plat- draft law. A senior executive ness users.
Washington:A day after announcing the cancellation of his visit strength to pro- key partner in countries. ing the provisions governing forms that also with a multina- “Digital economy firms first
to New Delhi, US National Security Advisor Jake Sullivan remains tect their national EU’s strategy “You are likely big tech firms, including sell their own Some provisions tional digital invest heavily to build their
personally committed to advancing the “deeply consequential interests, free of to see an increase search engines, social media products, limit- impose economy firm customer base and try to start
and multifaceted partnership” with India, a senior administration coercion,” in the EU’s secu- networks and online retail ing of consumer ‘behavioural said it is too early making profits subsequently.
official said here on Wednesday. On Tuesday, Sullivan’s visit to Tibbels told Mint. rity and defence cooperation firms. choice by bun- norms’ on digital for India to adopt The proposed Bill seems to
India this week was postponed for the second time this year. This “As the world is facing major with India and greater engage- Some of the provisions dling products
firms, taking the an ex-ante or ‘for-
discourage this business
time his visit was postponed due to the situation in West Asia fol- geopolitical inflection points, ment across the Indo-Pacific,” impose certain “behavioural and services, ward looking’ law model,” said the executive
lowing escalating hostilities between Israel and Iran. Sullivan, we see India as a key partner in Tibbels said. A key aspect of norms” on digital economy predatory pric- cue from similar prescribing the cited above, who spoke on
who is the top national security aide of US President Joe Biden, implementing the EU’s strat- this will be space security. firms, taking the cue from sim- ing, preventing laws in EU, etc dos and don’ts for condition of anonymity.
was scheduled to hold talks with his Indian counterpart Ajit Doval egy for the Indo-Pacific. This is “Cooperation on space ilar laws in other markets, users of digital digital economy An email sent to the minis-
on the progress in the implementation of the US-India Initiative reflected also in the 2022 EU security issues should also cer- especially the EU, and these platforms from firms given that try of corporate affairs on 12
on Critical and Emerging Technologies (iCET), besides other Strategic Compass, where tainly be explored between are of concern to big tech firms accessing third part applica- only about 5% of all retail April and on Wednesday seek-
issues. “NSA Sullivan looks forward to holding the iCET annual India is specifically men- India and the EU as we both as they place curbs on the way tions and exclusive tie-ups that transactions in India is online, ing comments for the story
review at the next earliest possible date,” the senior administra- tioned. We have already have high stakes in the space they operate, said the person limit market access for busi- unlike about 20% in the EU. remained unanswered at the
tion official said. PTI stepped up our security coop- domain,” he added. cited above. ness users of digital platforms. The executive said that for time of publishing.

IBBI cracks the whip, takes action against 12 insolvency professionals CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Gireesh Chandra Prasad assignments to monetary pen- orders were issued this year that during the pendency of a ensure full compliance of the suggestions or complaints
[email protected] alties in some cases and sus- and one them alleged the order show cause notice, profession- Bankruptcy Code. about errors.
NEW DELHI pension of registration with the was arbitrary while a second als are disallowed from taking Another professional, who
Readers can alert the
regulator for periods ranging one questioned the way IBBI up fresh assignments as reso- also spoke on condition of ano-
newsroom to any errors in the

A
dozen professionals from three months to two years uses its power. In one case lution professionals or as liqui- nymity, questioned the qualifi- paper by emailing us, with your
administering dis- in some cases. The alleged vio- involving suspension of regis- dators. Due to the alleged delay cations of the officials involved full name and address to
tressed companies lations in some of these cases tration for two years, the pro- in issuing the final order, the in the disciplinary proceed- [email protected].
taken over by lenders have include suppression of facts, fessional has moved the Madras professional in this case had to ings. Emails sent to the other
faced disciplinary action by disposal of assets of the dis- High Court initiating contempt let go many assignments. In professionals seeking It is our policy to promptly
respond to all complaints.
Insolvency and Bankruptcy tressed company without of court proceedings against this case, the creditors comments for the story Readers dissatisfied with the
Borad of India (IBBI) since Jan- approval and acceptance of IBBI officials. Mint has seen a approved the resolution plan remained unanswered at the response or concerned about
uary, showing the regulator is directorship in a company copy of the petition. prepared by the resolution time of publishing. Mint’s journalistic integrity may
taking a strong view of alleged invested in the sick company In 2023, IBBI issued disciplinary orders in over 70 cases. REUTERS A second professional, who professional and had also con- The regulator’s focus on tak- write directly to the editor by
lapses in following the Bank- leading to compromise of the spoke on condition of ano- firmed the appointment of the ing strong disciplinary action sending an email to
ruptcy Code provisions. professional, the orders tor is on a drive to make sure diverse creditors. nymity, said disposing off the professional as the administra- comes in the context of the gov- [email protected]
Orders issued by IBBI showed. In Calendar year 2023, the administrators of sick com- Some of the professionals, show cause notice issued by tor of the company. Eventu- ernment’s efforts to clean up Mint’s journalistic Code of
showed that the disciplinary IBBI had issued disciplinary panies strictly follow the rules however, do not agree with the the regulator in the disciplin- ally, the disciplinary order in the corporate and financial sec- Conduct that governs our
action ranged from issuing cau- orders in over 70 cases, showed while dealing with pressures of disciplinary orders. Mint ary matter took too long and this case advised caution to the tor balance sheets, which is newsroom is available at
tion to the professional to be data from IBBI. managing the competing inter- reached out to all 12 profession- the order was allegedly arbi- professional in handling seen as vital for a fresh invest- www.livemint.com
more careful in handling The trend shows the regula- ests of shareholders and als against which disciplinary trary. The professional said assignments and suggested to ment cycle.

FOR ANY QUERIES/DELIVERY ISSUES

CALL: 60004242, Monday-Saturday, 10am-6pm (Delhi, Mumbai, Bengaluru, Kolkata, Chennai, Hyderabad, Ahmedabad, Chandigarh, Pune and Lucknow) MAIL: [email protected] TO SUBSCRIBE: Give a missed call on 7039035039 or visit www.mintreaders.com or write to us at [email protected]

First published in February 2007 to serve as an unbiased and clear-minded chronicler of the Indian Dream.
RAVI KRISHNAN (EDITOR); PUBLISHED/PRINTED BY MANHAR KAPOOR ON BEHALF OF HT MEDIA LTD, 18-20 Kasturba Gandhi Marg, New Delhi 110001
Printed at HT Media Ltd presses at •Plot No. 8, Udyog Vihar, Greater Noida, Distt Gautam Budh Nagar, Uttar Pradesh 201306; •MNSPrinters Pvt. Ltd, 345/4, Bhatrahalli, Near KR Puram RTO, Old Madras Road, Bangalore 560049; •Saraswati Print Factory Pvt. Ltd, 789, Chowbhaga (W), Near China Mandir, Kolkata 700 105; •MNSPrinters Pvt. Ltd, 76/1, Poonamallee High Road, Velappanchavadi, Chennai 600077; •
Bhaskar Print Planet, Survey No. 148P, Changodar Bavla Highway, Sanand (Tal), Distt Ahmedabad, Gujarat. •Jagati Publications Ltd, Plot No. D75 & E52, APIE Industrial Estate, Balanagar, Rangareddy Distt. Hyderabad 500037 *Also available in Chandigarh, Pune and Lucknow.
RNI Registration DELENG/2007/22485; Mint welcomes readers’ responses to all articles and editorials. Please include your full name, address and telephone number. Send in your views to the editor at [email protected]. ©2024 HT Media Ltd All Rights Reserved
LIVEMINT.COM DEALS, TECH & STARTUPS ThursDAy, 18 April 2024
New Delhi 03

m MINT SHORTS
LightFury Games secures seed
Can Indian space firms wow Musk’s pay:
Tesla seeks
funding from Blume Ventures
Bengaluru: LightFury Games has raised $8.5 million (₹71 crore)
in a seed funding round led by Blume Ventures. The round also
saw participation from Mixi, Gemba Capital, along with angel
Musk with indigenous tech? investors’
nod again
investors like Kunal Shah (Cred) and Gaurav Munjal (Unacad-
emy). The company plans to utilize funds for building AAA titles Bloomberg
and hiring talent for their studios in India and the UK. Founded [email protected]
by Karan Shroff, Anurag Banerjee and Tina Balachandran in Jan- Dhruva Space, Pixxel, Skyroot, Digantara have been invited to meet SpaceX boss next week
T
uary 2024, LightFury Games is a startup that aims to build AAA esla Inc. asked share-
titles with an initial focus on mobile gaming and gradually holders to vote again on
expand into other gaming platforms, including consoles. Shouvik Das up to 8% of space revenue to reach $44 the same $56 billion
[email protected] billion by 2033. compensation package for
NeW DelhI Musk’s SpaceX, meanwhile, is the chief executive officer Elon
Circle of Games bags $1 million largest private sector contributor to Musk that was voided by a Del-

A
t least four Indian space space revenue. A Bloomberg report from aware court early this year.
from Nazara, The Hashgraph startups have received invi- November, citing internal documents, In its proxy filing issued
ISTOCKPHOTO
tations from the Indian projected SpaceX’s 2023 revenue at Wednesday, Tesla also said it
National Space Promotion nearly $9 billion, with satellite launches will call a vote on moving the
and Authorization Centre accounting for around $3.5 billion. Reve- company’s state of incorpora-
(IN-SPACe) to meet SpaceX and Tesla nue projections are expected to reach $15 tion to Texas from Delaware.
founder Elon Musk during his upcom- billion this year, with rocket launches The carmaker will convene its
ing visit to India, according to three contributing $6 billion or more. annual meeting on June 13.
industry executives, seeking anonymity. “Musk’s insights could be crucial for Tesla Chair Robyn Denholm
The meeting will allow India’s private the private sector to understand how the criticized the Delaware Chan-
sector to showcase its indigenous space services may develop over time, and cery Court’s January decision,
technologies before Musk. “There is lit- what could be the key insights for suc- writing in the proxy that it
tle likelihood of the meeting leading to cess. More than a business meet, this amounted to second-guessing
business partnerships, but it would ena- could be a key industry opportunity for shareholders who had
ble the private space sector in India to private startups—who can make their approved Musk’s performance-
meet one of the most impactful people services and outlook more mature after based award in 2018. Chief
Bengaluru: Web3 gaming platform Circle of Games has in today’s space industry,” one of the this,” said Anil Kumar Bhatt, director judge Kathaleen St. J. McCor-
raised $1 million (₹8.3 crore) in a funding round from three executives said. general, ISpA. mick described the company’s
Nazara Technologies FZ LLC, which is a wholly-owned The four space startups expected to Industry experts, however, noted that directors as “supine servants of
subsidiary of Nazara Technologies Ltd and The Hashgraph attend the meeting in New Delhi on 22 the government’s involvement will be an overweening master” and
Association. The startup intends to use this funding for its April include Dhruva Space, Pixxel, Sky- crucial for the success of the private said they hadn’t looked out for
go-to-market strategy, improve platform capabilities, and root Aerospace and Peak XV Ventures- space sector in India.“The US private the best interests of investors.
widen its international presence in the US, European Union backed space mapping startup Digan- space economy grew off the back of “Because the Delaware
(EU), Middle East, Africa and Asia in 2024. It also plans to tara. The invitations were accompanied mega contracts from the central govern- Court second-guessed your
expand its gaming portfolio from the current six games to by confidentiality clauses since the Clockwise from top: Elon Musk; Digantara’s Anirudh Sharma; Pixxel‘s Awais ment, which is tantamount for a sector decision, Elon has not been
over ten games by Q4 2024. Founded by Rabilal Thapa, event will be held behind closed doors, Ahmed; Skyroot’s Pawan Chandana; Dhruv Space‘s Sanjay Nekkanti. like space to succeed,“ said Chaitanya paid for any of his work for
Rajeeb VC and Rohit Tiwari, Circle of Games develops the executives said. Giri, an associate professor of space Tesla for the past six years that
casual and skilled-based games on the blockchain, with “Rather than striking immediate across industries. (ISpA) and EY India, India’s market studies at Pune’s Flame University. has helped to generate signifi-
play-to-earn reward mechanics. business opportunities with SpaceX, the However, Hyderabad-based Skyroot share stood at just 2% at the end of 2022. “India will need to offer clarity on the cant growth and stockholder
meeting will showcase the work that pri- leads the pack as India’s most-funded pri- However, space sector revenue is role that the public sector NewSpace value,” Denholm wrote.
vate space companies have done so far. vate space startup, having raised $95 mil- expected to increase significantly to $13 India Ltd (NSIL) will play, alongside pri- The shareholder who sued
Nithin Kamath’s Rainmatter backs It will be an opportunity for select lion so far. It is developing a range of cost- billion by 2025, it added. vate operators, as well as the kind of Tesla over the CEO’s compen-
domestic space startups to showcase technology and vendor transfer that sation criticized it as excessive
Amwoodo with seed capital their work, and underline India’s AIMING HIGH will take place between the govern- and opaque. Musk, who runs
Bengaluru: Amwoodo has raised $1 million (Rs 8.3 crore) in a objectives to contribute to the ment and private firms,” he added. six companies, said early this
seed funding round from Nithin Kamath’s Rainmatter. Founded global space economy. In the long INDIA’S space THE country’s share SKYROOT LEADS GOOGLE-BACKED “The government is right now year he preferred to work on
by Avijit Rajak, Agni Mitra and Sourav Dey, Amwoodo is a bam- run, this could aid possible syner- sector has evolved of the global space
since its privatization economy stood
the pack as India's Pixxel, meanwhile,
most-funded private has secured
taking space contracts through NSIL artificial intelligence and
boo-focused sustainable products maker. The startup’s product gies between SpaceX and Indian in 2020, but it is still at just 2% at the space startup, $71 million in to ensure there is global confidence robotics products elsewhere
range includes personal care items, kits for the hospitality sector, firms,” a second executive said. at a nascent stage end of 2022 having raised $95 mn funding so far in offering commercial projects. unless he owns a 25% stake in
bamboo polymer composites, bamboo veneers and engineered India’s space ecosystem is still at a These contracts are then offered as Tesla. He now owns about 13%
bamboo. Meanwhile, Rainmatter has been actively investing in nascent stage, but has evolved con- subprojects to private firms to help of the company.
the early-stage ecosystem as it has invested over ₹450 crore in siderably since the privatization of the effective small rockets, designed to launch In a separate development, last Octo- them build capability and reputation. Tesla shares rose 1% as of
nearly 80 startups across the fintech, health, climate, content and sector in 2020. Google-backed Pixxel, satellites for global clients on demand. ber, IN-SPACe chairman Pawan Once they develop, the Centre will be 7:30 a.m. in New York, before
education sectors. It typically invests nearly Rs 5-10 crore across which has secured $71 million in funding While the global space economy is Goenka outlined a decade-long vision more than happy to let private firms take the start of regular trading. The
early-stage companies. so far, is building high-resolution imag- dominated by the US, according to a for India’s private space sector, suggest- projects independently,” Goenka said in stock tumbled 37% this year
COMPILED BY K. AMOGHAVARSHA ing satellites to offer data analytics joint study by Indian Space Association ing that the industry could contribute an interview on 22 February. through Tuesday’s close.

Microsoft’s AI Copilot is starting to

automate the coding industry
Bloomberg
[email protected]

W
hen software devel-
oper Nikolai Avteniev
got his hands on a pre-
view version of Microsoft Corp.’s
Copilot coding assistant in 2021,
he quickly saw the potential.
Developed by Microsoft’s
GitHub coding platform and
based on a version of OpenAI’s
generative artificial intelli-
gence, the assistant wasn’t per-
fect and sometimes got things
wrong. But Avteniev, who
works for ticket seller StubHub,
was surprised by how ably it
finished lines of code with just Generative AI holds the potential power to automate large swathes of what software engineers
a few prompts. All he had to do currently do ISTOCK
was press the tab key, and Copi-
lot filled in the rest. Amazon’s CodeWhisperer and that are cheating by accepting he sometimes forgets pro-
“Instead of using 15 key- Google-backed Replit Ghost- code too fast and that don’t gramming languages—forcing
strokes, it took three,” he writer. GitHub’s AI assistant is actually go through the process him to waste time Googling
recalled recently. “It was nice a also a kind of beta test for a host defined by the team, that code them. “Copilot stops you from
little speed boost.” of other Copilots that Microsoft will not make it into produc- having to exit your current cod-
Three years later, and now is baking into Office, Windows, tion,” he said in an interview. ing process,” he said. “Even
infused with the latest version of Bing and other business lines. Generative AI is the latest in a when it produces gibberish, it’s
OpenAI’s GPT-4 technology, As is true with AI generally, long line of innovations that still easier to just accept what it
GitHub’s Copilot can do a lot GitHub Copilot has limitations. have transformed computer does and then correct it
more, including answering Developers say it sometimes coding over the years. Last cen- myself.”
engineers’ questions and con- pulls up outdated code, provides tury, program compilers accel- Aaron Hedges, a developer
verting code from one pro- unhelpful answers to questions erated software development by for more than 15 years, was get-
gramming language to another. and generates suggestions that rapidly translating commands ting burned out before Copilot
As a result, the assistant is are buggy or could infringe into ones and zeros that com- arrived. Hedges works for
responsible for an increasingly copyright. Because the tool is puters can understand. More ReadMe, a startup that helps
significant percentage of the trained on public and open recently, Linux popularized companies create technical
software being written and is repositories of open-source cod- descriptions of their applica-
even being used to program code, engineers GitHub ing, letting pro- tion programming interfaces,
corporations’ critical systems. run the risk of rep- emphasizes that grammers lever- or APIs. Like Avteniev, he
Along the way, Copilot is licating security the tool is an age one another’s makes good use of Copilot’s
gradually revolutionizing the issues or injecting assistant, not a work rather than auto-complete function.
working lives of software engi- new ones into writing everything “Because I’m a fairly senior
neers—the first professional their work, partic-
substitute for from scratch. engineer, I can look at that and
cohort to use generative AI en ularly if they human Coding assist- go, ‘Oh yeah, that looks right.’”
masse. Microsoft says Copilot blindly accept programmers ants like GitHub’s He also likes that he can ask
has attracted 1.3 million cus- Copilot’s recom- Copilot could be questions without leaving his
tomers so far, including mendations. even more revolu- programming window. “I don’t
50,000 businesses ranging GitHub emphasizes that the tionary because generative AI have to shift away and open a
from small startups to corpora- tool is an assistant, not a substi- holds the potential power to browser, which can be really
tions like Goldman Sachs, Ford tute for human programmers, automate large swathes of what disruptive,” he said.
and Ernst & Young. Engineers and has put the onus on cus- software engineers currently do. At $10 a month, a Copilot
say Copilot saves them hun- tomers to use it wisely. Robust For now, it mostly makes subscription is a bargain that
dreds of hours a month by han- guidelines are required to pre- them more efficient. StubHub’s Hedges willingly pays himself.
dling tedious and repetitive vent lazy programmers from Avteniev, who also teaches After work, he builds websites
tasks, affording them time to simply accepting what Copilot software engineering at City for Dungeons & Dragons fans.
focus on knottier challenges. suggests, said GitHub chief College of New York, says With a toddler and another
Acquired by Microsoft in executive officer Thomas Copilot’s predictive ability baby on the way, leisure time is
2018 for $7.5 billion, GitHub Dohmke. He expressed confi- helps programmers stay in “the precious. “Those two hours I
dominates its market and is dence that engineers would flow” because they no longer get to myself to code in the
betting Copilot has the AI keep one another honest. have to stop to look things up. evening are super important to
horsepower to fight off rival “The social dynamic of the Avteniev has been coding for me,” he said. “The more effi-
services including Tabnine, team will make sure that those more than 20 years, but even cient I can be, the better.”
04 ThursDAy, 18 April 2024
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 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%)

72943.68 -2.33 22147.90 -2.19 20423.00 -1.77 62057.50 -1.17 22870.30 -2.05 40315.36 -1.06 45423.98 -1.11
1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%)

0.41 -0.25 0.57 0.52 3.02 3.00 6.89 13.21 1.67 2.67 5.40 6.07 8.12 2.40
6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%)

10.24 20.71 12.24 24.23 17.42 36.57 36.63 61.20 16.21 26.69 24.48 63.08 18.55 61.37

m MINT SHORTS
Hedge funds sell off winning
Heady cocktail gets equities tipsy
energy stocks to buy oil Harsha Jethmalani
Building pressure sures to bolster India’s economic pro- mated 5.4% in FY24,” said Rajani
With energy stocks trading near all-time highs and oil [email protected] gress. Opinion polls indicate that the Sinha, chief economist at Care Ratings.
climbing as well, hedge funds think they’ve found a trade Rising volatility makes key benchmark indices vulnerable to corrections election outcome is unlikely to throw a With inflation moderating, the Reserve

A
to capitalize: Sell the shares and pour the profits into buy- n unsavoury combination Nifty 50 Sensex Nifty volatility index negative surprise as anti-incumbency Bank of India could go for a shallow
ing more crude. Hedge funds have been selling US of factors is spoiling the 120 150
is not expected. policy interest rate cut in the second
energy stocks for three straight weeks, according to risk appetite of equity inv- Despite the market’s optimism on half of the fiscal year, provided the Fed
prime brokerage data from Goldman Sachs Group Inc. estors, leading to profit 112.24 the election result, excitement needs to also starts to cut rates then, she added.
The net allocation to energy also is well below historical booking at new highs. In 115 140 be contained. “We would caution aga- What’s more, International Mone-
levels, with energy now making up just 2.2% of overall US the last week, benchmark indices Nif- inst using any ‘conclusions’ from previ- tary Fund has raised India’s growth
net exposure on Goldman’s prime brokerage book. And ty50 and S&P BSE Sensex have decli- 110
ous pre- and post-election forecast for 2024-25 to
130
the sector’s long-short ratio has fallen to a five-year low. ned over 2% each. During the same 110.24 market and stock price GOOD AND 6.8% from 6.5%. While
Meanwhile, Brent crude is back around $90 a barrel, and time, the fear gauge, Nifty volatility movements to draw infer- THE BAD India is expected to grow
the volume of bullish Brent options just surged past the index (VIX), has risen 11%, showing dis- 105 120 ences for pre and post-mar- faster than peers, there are
record set in 2019. Traders are betting on further comfort of stock market participants. 113.91 ket movements over the AMONG the many moving parts locally
increases in oil prices. “We are seeing some lottery ticket Topping the list of dampeners is the next few months,” Kotak dampeners is the
spike in global oil
and globally that can have a
100 110
buying in crude with June $250 call options as investors spike in global oil prices. Rising geopo- Institutional Equities prices amid bearing on how growth
are actively hedging a tail event in the commodity,” said litical tensions in the Middle East have report on 12 April, said. geopolitical tensions pans out. Plus, the valuation
Rebecca Babin, senior energy trader. BLOOMBERG pushed Brent crude to about $90 a bar- 95 100 On the bright side, the of Indian equity market
rel. India is a net oil importer, so higher India Meteorological Depa- ON the bright side, continues to be expensive.
the met dept has
crude prices have macro and micro rtment has forecast above- forecast above- The MSCI India index
90 90
repercussions. Along with elevated 16 Oct 2023 16 Apr 2024 16 Oct 2023 16 Apr 2024 average rainfall in June- average rainfall in trades at a one-year forward
commodity prices like aluminium and Values rebased to 100 Source: Bloomberg
September. If this material- June-September price-to-earnings multiple
copper, this has clouded profitability izes, it should lift the slug- of nearly 21 times, a prem-
PRANAY BHARDWAJ/MINT
outlook of paints, tyres and specialty gish rural demand and ease ium to Asian peers, showed
chemicals companies, that rely on watch mode. Thus, pushing the monet- Amid the global chaos, India is bra- food inflation, which has been a con- Bloomberg data. However, a modera-
crude-based inputs. Also, comments by ary loosening cycle ahead and keeping cing for a crucial domestic event, the cern lately. The waning of El Nino con- tion in valuations cannot be ruled out if
US Federal Reserve chair Jerome Pow- cost of capital elevated. This could Lok Sabha elections. The manifesto of ditions and improved rabi sowing also corporate earnings for the March quar-
ell have cooled hopes of interest rate leave investors in IT stocks disappo- incumbent Bharatiya Janata Party bode well for agricultural production. ter (Q4FY24) fail to meet expectations.
cuts in 2024. Fed is usually seen as a inted. Indian IT firms derive significant (BJP) promises continuity and enhan- “On the assumption of a normal For now, unfavourable oil price
trendsetter for interest rate movem- demand from BFSI clients in devel- cement of previous policies such as monsoon this year, we expect con- movement has outweighed the posi-
ents globally. A delay here might keep oped markets, and delay in rate cuts ‘housing for all’ and Ayushman Bharat. sumer price index inflation to moder- tives. So, volatility could remain high
other large central banks in wait-and- could mean bleaker revenue visibility. This will be accompanied by new mea- ate to around 4.8% in FY25 from esti- with bouts of correction.

UK services inflation is driving the bus and that is still

way too high. BLOOMBERG Metal cos likely to find Q4 season of some hits and some misses
UK inflation disappoints, casts Ashish Agrawal demand thanks to the govern- for the Railways (factoring in a aided by US arm Novelis.
doubt on BoE rate cuts [email protected] ment’s focus on infrastructure
Mixed bag ₹1,500 crore one-off gain). Axis Securities sees Hindalco’s
In Q4FY24, non-ferrous metal companies are expected to
Traders rushed to trim wagers on the extent of monetary and other investments, although perform better on sequential profit growth Jindal Steel & Power Ltd is consolidated Ebitda up 9% seq-

M
easing by the Bank of England this year after UK inflation etals companies are the gains were partially offset by Q4FY24 projections Ebitda (in  crore) Quarter-on-quarter change (in %)
seen benefiting from more out- uentially at ₹6,615 crore, led by
slowed less than expected. Traders moved to fully price expected to report a higher imports in January. Ferrous
put at its coal mines, but the higher Ebitda per tonne at Nov-
one quarter-point reduction by November and as little as mixed bag for the three Despite sales growth, how- Steel Authority of India 2,090 -2.4 gains are not sufficient to comp- elis and lower input energy and
a 30% chance of a second cut following the data. That months ended March (Q4FY24), ever, Ebitda over the third quar- Tata Steel (consolidated) 6,030 -3.8 ensate for drop in realization. coal prices at its Indian upstream
later pared, making a second cut a coin toss. It’s a setback with ferrous metal firms projec- ter is expected to have fallen by Jindal Steel & Power 2,470 -11.7 Tata Steel Ltd is seen gaining via aluminium operations.
for gilt markets, which have sold off over recent weeks as ted to see a drop in profits, and ₹1,100-3,200 per tonne on pric- JSW Steel 5,800 -19.2 lower losses in its European The profitability of non-ferr-
sticky US inflation cast doubts over the speed and extent non-ferrous metal firms likely to ing and input cost pressure. Steel Non-ferrous operations, which was at $178 ous metal firms may improve
Hindalco (consolidated) 6,350 8.3
of rate cuts from the Federal Reserve and central banks be on a strong footing. price has fallen to ₹42,000 per per tonne in Q3FY24. But, press- with increase in London Metal
Hindustan Zinc 3,600 2.2
globally. UK bonds fell in early trading, sending the pol- Despite increase in volume, tonne in March from an average ure on domestic ops leads to pro- Exchange aluminium prices.
Vedanta 8,700 1.9
icy sensitive two-year yield up four basis points to 4.53%, ferrous metal firms’ prices of ₹43,500 per tonne in Decem- jections of an Ebitda decline. Aluminium prices have risen to
Note: Ebitda is earnings before interest, tax, depreciation and amortization
the highest since late February. “The rate-cutting BoE declined, worsened by higher ber. Average net sales realization On the other hand, non-fer- over $2,440 per tonne as on 12
Source: Company, Nuvama Research
bus will be delayed,” said Hank Calenti, senior fixed costs for key input coking coal. in Q4 declined, by a projected rous metal companies appear April from $2,180 per tonne on 1
PRANAY BHARDWAJ/MINT
income strategist at SMBC Nikko Capital Markets. Ferrous metal companies 3-5% from the preceding three- better placed with stable prices, March. Every $100 per tonne
“There is an expectations management issue here–Bailey should see a volume growth of month period, Prabhudas Lillad- March. This will reflect in com- of India Ltd reporting lowest higher volumes, and lower oper- rise in LME prices helps Nalco
was warning that headline inflation would bounce off 2% 5-22% in Q4, as per a Nuvama her said. panies’ profitability but from decline in profitability owing to ating cost. Among gainers, Hin- raise earnings by 10% and Hin-
soon, but it’s services inflation which is driving the bus Institutional Equities report. Encouragingly, coking coal June, after clearing inventory. higher volume in Q4 (up 22% dalco Industries Ltd is expected dalco by 5.6%, Prabhudas Lillad-
and this is still way too high.” BLOOMBERG This was due to strong domestic prices have fallen since early Nuvama sees Steel Authority QoQ) and the payments booked to see decent Ebitda growth, her said.

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

US, China debt pose risks for global public finances, says IMF ‘Clues in Beige Book
Bloomberg
[email protected]
make life difficult for many
countries by strengthening the
given significant fiscal imbal- this year will go to the polls in
ances in local governments”— 88 economies representing
to predict slowdowns’
value of the dollar against other can create risks for the rest of more than half of the world’s
Bloomberg

T
he world’s two great eco- currencies, making dollar- the world through lower levels population and GDP, in what is
nomic rivals, China and priced commodities more of international called “great elec- [email protected]
US, will drive much of the expensive and increasing debt trade, external Higher interest tion year.”

A
increase in global public debt burdens for countries that bor- financing and rates in US make “Support for trove of anecdotes on
over the next five years, with US rowed in the US currency. investments. life difficult for increased govern- the economy gathered
spending creating trouble for “High and uncertain interest The report pro- many countries ment spending by the Federal Reserve
many other countries by keep- rates in US affect cost of fund- jected overall pri-
by strengthening has grown across (Fed) over five decades may
ing interest rates high, officials ing elsewhere in the world,” mary deficits the political spec- hold clues to predicting cur-
of International Monetary said Vitor Gaspar, IMF director would decline to the value of the trum over the past rent US business cycle turn-
Fund (IMF) said in a report. of fiscal affairs. “The impact is 4.9% of global US dollar several decades, ing points, according to
“In both economies, public A higher dollar value makes global debt pricier. AFP quite significant.” GDP from 5.5% in making this year research published on Tues-
debt is projected under current As for China, the fund war- 2023, but with especially chal- day.
policies to nearly double by “How these two economies and pose significant risks for ned that a larger-than-ex- substantial risks threatening lenging,” the report said. “Fis- “Heterogeneity in District-
2053,” the IMF said in its Fiscal manage their fiscal policies baseline fiscal projections in pected slowdown in China— public finances in many coun- cal policy tends to be loo-ser, level economic sentiment can
Monitor, an overview of global could therefore have profound other economies.” “potentially exacerbated by tries. and slippages larger, during be used, over and above the
public finance developments. effects on the global economy Higher interest rates in US unintended fiscal tightening The fund noted that voters election years.” information contained in The Federal Reserve in
national economic sentiment, Washington. AP
to better forecast US reces-
sions,” said the authors of a gauge sentiment using

Exchanges moot exam, networth criteria for derivatives trade report on the Federal Reserve machine-learning to “infer
Bank of Cleveland’s website. the meaning of language that
Using natural language might otherwise be ambigu-
processing, researchers at the ous.”
FROM PAGE 1 F&O segment incurred losses, tives exposure commensurate 26.3% from 27.9%. DII share it is still less than cash market Cleveland Fed and Washing- They also found that since
with active traders ₹50,000 on with their underlying portfolio was steady at 0.1% and FPI volumes till date.” ton University in St Louis cre- the pandemic, national eco-
“For instance, if a retail par- average in FY22. It also found exposure.” share fell to 5.9% from 7.4% Notional value is the total ated indexes quantifying the nomic sentiment has tended
ticipant’s networth is ₹10 crore, that the number of individual A senior broking official said over the same period. DII and value or worth of an asset while sentiment expressed in the to paint a rosier picture than
she can’t take leverage up to traders in index and stock that the KYC done at the bro- FPI refer to domestic institu- premium turnover is market text of all edi- that experienced
₹100 crore, which is dispropor- options went up by nearly eight ker’s end would be strength- tional investor and foreign value. In FY24, the average tions of the Beige The Beige Book in many individ-
tionate to her wealth.” and five times each in the past ened to better know the client. portfolio investor, respectively. daily notional turnover of index Book going back has been ual districts
He drew a parallel to warn- three years. The RBI reinforced The details of networth, aware- However, another broker options was ₹339 trillion while to its creation published eight based on their
ings on cigarette packets as a Sebi’s finding in its bi-annual ness, etc. would probably be said the very narrative of using the premium turnover was just more than 50 times a year since model’s process-
way of informing people about financial stability report. added to existing details sought notional turnover presented a ₹0.6 trillion. years ago. ing of the textual
1970, providing
the harmful effects of tobacco. In November, Sebi chairper- on income bracket levels, age, “misleading picture”. The average daily cash mar- The study data.
“Sebi mandates risk disclosures son Madhabi Puri Buch cau- etc., he said, as regulators were “The notional turnover of ket volume was ₹0.53 trillion. found that these information on The Beige
on broker contract notes and tioned small investors against concerned about the “rising options portrays an unrealistic The notional turnover is 640 summaries are the US economy Book has been
websites about the risks of taking huge bets in derivatives, phenomenon of speculation depiction of trading participa- times the cash turnover, but the more timely than published eight
derivatives trading. You go adding investors should focus Sebi chairperson Madhabi among retail investors”. tion,” said Tejas Khoday, premium turnover is just 1.1 gross domestic times a year since
with your eyes open after see- on long-term prospects of the Puri Buch. PTI Indeed, the share of proprie- co-founder and CEO of online times the cash turnover. product in determining when 1970, providing anecdotes
ing the disclosure pop-up, akin equity market. tary traders as a proportion of discount broker Fyers. “The While banks’ retail loans the nation is in a recession. and information on economic
to a smoker smoking after see- A senior executive from an options trading as well as in gross notional turnover on premium turnover, on which grew at a compounded 25.5% District-level sentiment conditions from the 12
ing the warning on the pocket.” asset management company currency options, which raised NSE, which commands a 91% exchange transaction charges between September 2021 and was more useful, in particular regional Fed banks as well as
Queries to Sebi went unan- said one of the committee’s the RBI’s hackles,” the execu- market share in derivatives, and taxes like STT (securities September 2023, unsecured in Chicago, Minneapolis, a national summary. It’s pre-
swered till press time. BSE and terms of references could be to tive said. “There is a need to rose to 59.6% in the 11 months transaction tax) are based, is the retail lending grew by 27%. Philadelphia, Richmond and pared by a designated
NSE officials were not immedi- deepen the market by increas- increase hedging activity and, of FY24 (April-February) from better way to view the deriva- Some fears were raised that a San Francisco in predicting Reserve Bank on a rotating
ately available for comment. ing institutional participation. to this end, we could see some 52.7% in the corresponding tive turnover figures, which is a portion of unsecured loans current US business cycle basis and released about two
A Sebi study in January 2023 “Currently, proprietary trad- changes to attract institutions period of the earlier fiscal. fraction of the notional turn- found their way into options turning points. weeks before each Federal
showed that nine out of 10 indi- ers and retail investors hold the to hedge more. Currently, MFs, The share of retail, however, over. Albeit, premium turnover trading. However, Khoday dis- The researchers tracked Open Market Committee
vidual traders in the equity highest share in equities for instance, can take deriva- fell over the same period to has been growing at a fast pace, pelled such claims. the sequences of words to meeting.
LIVEMINT.COM CORPORATE ThursDAy, 18 April 2024
New Delhi 05

Apple forms
VI’s post-FPO priority is to Adanis cement
solar JV to hold on Ambuja,
power India
operations
settle vendor dues: CEO infuse ₹8,339 crore
Anirudh Laskar &
Shouvik Das Vaamanaa Sethi
[email protected]
NEW DELHI VI owes about ₹10,000 crore to vendors, including its tower & network equipment providers MuMBaI

T T
ech giant Apple on he Adani family, led by
Wednesday announced Gulveen Aulakh Investments has invested about ₹772 billionaire businessman
its collaboration with [email protected] crore in the FPO. Gautam Adani, on
Mumbai-based solar energy NEW DELHI Post the FPO and a preferential allot- Wednesday said that as promot-
solutions provider, CleanMax, ment of shares worth ₹2,075 crore to ers they have infused ₹8,339

C
to invest in six rooftop solar ash-strapped Vodafone promoters, promoter shareholding will crore into the group's cement
projects in India. However, it Idea, the only one among be about 38%, government sharehold- subsidiary Ambuja Cements
did not specify the capital out- India’s top three telecom ing at 24%, and the remaining 38% will Ltd by fully subscribing to the
lay for the projects. operators without a 5G ser- be held by the public. latter’s warrants programme.
According to the company, vice, has multiple compet- On the bloated equity capital of about With this, the Adani family has Gautam Adani, chairman,
these projects will generate a ing demands on the ₹45,000 crore it’s ₹66,000 crore after the FPO, Moondra infused a total of ₹20,000 crore Adani Group. PTI
combined output of 14.4 raising in equity and debt. said further stake dilution was “not bad” into the country’s second-larg-
megawatts (MW), and will be But its immediate priority is to clear since the company’s balance sheet was est listed cement maker and The latest move, according
used to power Apple’s offices the dues it owes its vendors. leveraged and needed to be corrected, increased its stake further by to the statement, is part of their
and stores, as well as “other” The telecom company, which on either through cash-generation or 3.6% to around 70.3%. commitment to have robust
domestic operations. Monday began road shows for its through direct equity, which was a faster The latest capital infusion fol- capital management and the
While the CleanMax joint ₹18,000 crore follow-on public offer way. lows an investment of ₹5,000 promoter’s aim to boost future
venture is smaller compared (FPO) of shares, owes an estimated Moondra added that the company crore into Ambuja on 18 Octo- prospects and potential of
with Apple’s partnerships in ₹10,000 crore to vendors, including its does not plan to rope in a strategic inves- ber 2022 and then ₹6,661 crore cement vertical.
the US and Spain, where it is tower and network equipment provid- tor, and that promoters could put in fur- on 28 March 2024 (which was “The additional investment
estimated to produce 132MW ers. Overall, it is burdened with a ₹2.1 ther equity after the moratorium period for part-issuance of the shares). will fortify the company's
and 105MW of solar energy, trillion debt, including more than ₹1.3 Akshaya Moondra, managing director and chief executive, Vodafone Idea. ends in FY26, when the government will The Adani group had acquired financial position, providing it
respectively, by the end of trillion for spectrum and another have the option of converting the dues Ambuja Cements in 2022. with enhanced capabilities to
2024, the move underscores ₹65,000 crore as part of a revenue-shar- possibility could be high,” Moondra sites will be key to arresting the fall in owed to it into equity or consider defer- “This infusion of funds pro- pursue its ambitious growth
its commitment to transition ing mechanism that it owes the govern- said, adding that the support could be in subscribers, and that the lack of 5G ser- ring it. vides Ambuja, capital flexibility plans and capitalize on emerg-
to clean-energy sources. ment. the form of a waiver or deferment. vices “had not made any material differ- “Government conversion is an option for fast-tracked growth, capital ing opportunities in the mar-
In July 2020, the company The debt is payable over the years, up Vodafone Idea generates about ence” in customer churn. The telco that could come from the promoter if management ini- ket,” said the
had claimed to have achieved to 2040-41, but the moratorium on pay- ₹8,500 crore a year in cash, and its total plans to roll out 5G services in six–nine they believe that is the right thing to do. tiatives and best- The latest capital statement.
carbon-neutrality in global ments owed for the spectrum ends in debt owed to banks had reduced to months, focusing on geographies that Also, there is a possibility that the gov- in-class balance infusion follows The company
corporate operations, besides the first half of FY26. ₹4,500 crore at the end of February, account for about 40% of its revenue. ernment may not want to increase sheet strength,” an investment of said the latest
setting an ambitious target of “The idea is first to pay the vendor allowing it the runway needed for clear- Vodafone Idea has raised about equity and defer it,” Moondra said. Gov- Ajay Kapur, whole ₹5,000 crore on fund infusion will
making its entire carbon foot- dues over a period of time,” said ing vendor dues, Moondra said. ₹5,400 crore from anchor inves- ernment shareholding can rise to time director and help the group
print net-zero by 2030. The 35% if it decides to convert
18 Oct 2022 and
managing director and chief He added that the carrier tors including GQG Partners, CEO, Ambuja achieve its target
solar investments in India executive Akshaya Moon- was in discussions for a Fidelity Investments, UBS the dues to equity. Cements, said in a then ₹6,661 crore capacity of 140
reflect its commitment to a
greener future, the company
dra in an interaction
with Mint. Vodafone ₹2.1 tn
The overall debt
bank debt of ₹25,000 Fund Management, Jupi-
crore, which will be a ter Fund Management, ₹1.3 tn
The spectrum dues
On Wednesday, IIFL
Securities upgraded its
statement.
“It is not only
on 28 Mar 2024 million tonnes per
annum by 2028 in
said. Idea, though, hasn’t spec- facility that can be drawn Australian Super, besides stock rating on Vodafone testament to the cement busi-
“As a renewable project ified the quantum of ven- burden of on over a period of time domestic investors India that Vodafone Idea Idea to “Add” with a target steadfast belief in our vision ness. The investment will ena-
developer, we will be responsi- dor dues. The firm’s tower Vodafone Idea and primarily be used Infoline, Motilal Oswal, has to settle price of ₹14 per share. The and business model but also ble various strategic initiatives
ble for the development, oper- provider Indus Towers has towards capital expenditure HDFC Mutual Fund, SBI company ended Tuesday’s reinforces our commitment to including de-bottlenecking
ations and maintenance of the asked for its dues, pegged at for growth. General Insurance, and trading on NSE down nearly delivering long-term sustaina- capex to enhance operational
six solar projects. Besides, the about ₹7,000 crore, to be cleared The debt-laden firm will use Quant. 2% at ₹12.90 per share. The stock ble value creation to our stake- performance, as well as bring-
management of the JV will be in one go, Mint reported on Tuesday. ₹12,750 crore for network expansion till In a statement to the stock exchanges exchanges were closed on Wednesday holders and this shall propel us ing efficiencies across resour-
taken care by CleanMax for the The company will ascertain its cash FY26, of which ₹5,720 crore will be for on Wednesday, the company said it had for a public holiday. Balaji Subramanian, towards setting new bench- ces, supply chain, it said.
lifetime of the projects, which position and its ability to pay govern- setting up 22,000 5G sites and the rest finalized the allocation of 4.9 billion vice president at IIFL Securities, said marks accelerating our growth Barclays Bank PLC, MUFG
will help decarbonize Apple’s ment dues when the moratorium ends, for 26,000 new 4G sites, upgrading shares to anchor investors at ₹11 apiece. that equity infusion followed by debt- and continue to deliver on Bank, Mizuho Bank and Stan-
operations in India,” a Clean- and will accordingly seek the Centre’s existing 4G sites, and for other general US-based GQG Partners has been allo- raising should enable the company to operational excellence, busi- dard Chartered Bank acted as
Max spokesperson said in support, he said. “This will not be every corporate purposes. cated the highest number of shares, narrow the 4G coverage and capacity ness synergies and cost leader- advisors for the transaction.
response to Mint's queries. year but in the initial couple of years the Moondra said upgrading existing 4G worth ₹1,345 crore, while Fidelity gap with its peers. ship,” added Kapur. [email protected]

Century raises Catch to double sales in 3 years Vedanta Resources targets

₹450 crore debt Suneera Tandon
[email protected]
earnings of $7.5 bn in 2 years bigger 80–90%.
Kumar noted that the brand
is already broadening its port-
from Edelweiss
NEW DELHI
folio, having recently entered Anirudh Laskar mining sector said that for

D
S Group, the entity the gourmet gravies market [email protected] Vedanta the two most impor-
behind the popular and eyeing future expansions MuMBaI tant monitorables in the near
Madhurima Nandy Catch brand of spices, is into condiments. term are debt reduction road-

B
[email protected] looking to increase its market Beyond spices, Catch also illionaire Anil Agarwal map and the demerger
BENgaLuru footprint, aiming to achieve offers bottled water, fizzy bev- on Wednesday said his progress. “While near-term
sales of ₹2,000 crore in the erages, and nuts. Its products group’s UK-based flag- concerns have abated after the

C
entury Real Estate next two to three years and fur- are distributed through more ship Vedanta Resources Ltd. refinancing at holdco, we
Holdings Pvt. Ltd has ther boosting it to ₹5,000 crore than 700,000 outlets via over will be achieving an annual expect Vedanta’s net debt to
secured ₹450 crore in in five to six years. This growth 1,500 distributors. operating profit of $7.5 billion remain elevated at ₹65,000
debt financing from Edelweiss is expected to come from a This expansion strategy within the next two years. crore levels in FY25-26E (ver-
Alternative Asset Advisors Ltd, blend of expanding market Rajiv Kumar, vice chairman, DS aligns with the broader trends The ambitious 50% jump in sus FY22 at ₹ 21,000 crore),”
the asset management arm of reach and heightened market- Group. in India's spice market, which is pre-tax profits from the the report said.
financial services firm Edel- ing efforts. poised to reach ₹50,000 crore expected $5 billion of Ebitda in Anil Agarwal, chairman, Regarding the demerger
weiss Group, a top company Currently, Catch spices gen- and adding to our sales and by 2025, with branded spices FY24 follows the group’s Vedanta group. process, the J P Morgan report
executive said. erate around ₹1,000 crore in marketing teams,” Kumar expected to account for half of demerger plan that entails a said it believes the street is
The Bengaluru-based devel- annual sales. explained. the market, according to a note reorganization of its Mumbai- starved flagship Vedanta expecting the process to be
oper will use about 40% of the According to Rajiv Kumar, In FY24, DS Group allocated by investment bank Avendus based Vedanta Ltd into six sep- Resources Ltd by $3 billion in completed by FY25-end and
funds to buy a 72-acre parcel for Ravindra Pai, managing the vice chairman of DS Group, ₹100 crore to market its salt and Capital. arate entities based on their the next three years. any delay around the demer-
a plotted residential project director, Century Real Estate. the company's immediate spices, after engaging celebri- As such, spice companies sectors. At the parent company ger or stated divestiture of
near the international airport at strategy revolves around ties such as Akshay Kumar and exploring new markets to “As we step into the new fis- level, Vedanta Resources has steel assets could be viewed
Devanahalli in north Benga- invest ₹2,001 crore in its four enhancing marketing initia- Bhumi Pednekar in 2022 to encourage a shift from cal year, we have set targets deleveraged its balance sheet negatively. “Vedanta has the
luru. It will use the rest of the residential projects in a quasi- tives and increasing distribu- endorse the products. unbranded to branded spice that reflect our pursuit of sus- by over $3.5 billion in the last highest dividend yield in our
money to repay existing debt debt deal, and Nisus Finance, tion and penetration into tier-II With its strong presence in mixes. The DS Group's Catch tainable growth while main- two years, said Agarwal. metals coverage (around 10%+
and as working capital for new with its sponsor and strategic and tier-III cities. “We have northern India, where Catch brand competes with Dabur- taining a healthy balance To deleverage Vedanta levels) and we also expect its
and existing projects. Century partner BCD Group, invested enough manufacturing facili- holds a 9% market share, the owned Badshah, ITC's Sunrise, sheet,” said Agarwal in a note Resources further, the group earnings trajectory to
Real Estate, one of the largest ₹105 crore in a subsidiary of ties right now. Our main focus company plans to break into and MDH. DS Group's Catch to the shareholders of the met- has been approaching several improve,” said the report.
landowners in Bengaluru, has Shapoorji Pallonji Real Estate. is marketing…Second is going southern markets and explore brand of salt and spices com- als, mining, and energy con- lenders both globally and in The group has an outstand-
largely focused on the north of “Domestic investors are to the tier-II, tier-III cities, to new product categories. In the petes with Dabur-owned Bad- glomerate. India. ing debt of $6.4 billion, includ-
the city where it has a signifi- increasingly gaining ground in get better distribution and pen- premium salt, or table top salt, shah, ITC's Sunrise, and MDH Agarwal said the group will A 6 March report by J P ing $4.5 billion that becomes
cant land bank. real estate. It is evident in the etration. We are also ramping category, Catch enjoys a far in the spices market. also be deleveraging its cash- Morgan on India metals and due in FY25.
“Bengaluru’s residential whopping 45% share in invest-
market has been robust post- ments during January-March
covid. In FY24, we achieved a 2024, a marked surge from
sales milestone of ₹1,000 crore. prior years. Within domestic
We aim to double sales to institutional investments,
₹2,000 crore in FY25. We have office and residential assets
OTTs struggle to diversify original content away from Hindi
a significant pipeline of inven- comprised about 66%. This also
tory, including residential and underscores the growing confi- Lata Jha years ahead on product life or two away from top names them about the benefits of col-
plotted projects,” dence of a diversi- [email protected] cycle compared with the signing up for streaming origi- laborating on OTT originals.
Century Real Century will use fied spectrum of NEW DELHI southern languages. nals, though the intent is defi- The platform that is betting
Estate managing about 40% of the investors across The number of subscription nitely there as far as platforms big on regional language origi-

D
director Ravindra funds to buy a multiple invest- espite the focus on pro- video-on-demand, or SVoD, go. nals and bringing out Tamil
Pai said in an 72-acre parcel for ment strategies ducing diverse content, web series released in Hindi in To be sure, the bet on and Telugu versions of its show
interview. An including credit several video streaming 2022 was more than double regional language program- MasterChef India, sees great
Edelweiss spokes-
a residential
and acquisitions,” platforms are yet to bet aggres- that of the combined total for ming comes amid a relatively appetite among audiences that
person declined project near said Piyush sively on non-Hindi original all four southern languages. subdued OTT are already watc-
to comment on Devanahalli Gupta, managing series. While the acquisition of Driven by a strong culture of subscription and A shift to regional hing a lot of con-
the transaction. director, capital tent-pole Tamil and Telugu movie-going, the OTT journey advertising envi- language originals tent dubbed from
Property con- markets & invest- films remains a priority, a sig- of south Indian markets has ronment. “Plus, could be some Hindi into regi-
sultants said debt transactions ment services, at property advi- nificant shift towards regional been fuelled by film content, there is competi- time away with onal languages.
in housing projects have sory Colliers India. language originals could still rather than by long-format tion from a lot of Disney+ Hot-
increased of late because of
subscriptions and
Century Real Estate has be some time away with sub- web series, the report said. local players star, too, is going
sales momentum in the resi- completed around 20 residen- scriptions and advertising “A lot of OTT platforms are focusing on indi- advertising aggressive on the
dential sector and the conse- tial and plotted development having plateaued and as tradi- beginning to invest signifi- Disney+ Hotstar is going aggressive on the southern originals vidual languages having plateaued southern origi-
quent need for working capital. projects, and has three residen- tional TV and theatrical cantly in regional content market with five originals including Shaitan in Telugu.. in specific mar- nals market. It
A number of private-equity and tial and two plotted projects medium remain dominant in since they have saturated their kets,” said Karan has launched 20
real-estate credit funds such as under construction. It has also these markets, industry audience base in major metros within the talent ecosystem in directors are increasingly Taurani, senior vice president specials in the south and five
Nisus Finance, PAG Asia, ASK completed five commercial experts said. and have realized that it isn’t the south since they are quite leaning towards pan-India at Elara Capital Ltd. south originals—Save The
Property Fund, and HDFC real estate projects and has four According to a report by enough to simply dub con- besotted with the theatrical acceptance given the spate of Ranjana Mangla, head of ad Tigers and Shaitan in Telugu,
Capital have been active in the more in the pipeline, including media consulting firm Ormax, tent,” said Niyati Merchant, medium.” southern films that have found revenue at SonyLIV, said a KCF in Malayalam and KKK
residential space. a 2.5mn sq.ft office project in the Indian OTT market is at co-founder and chief operat- The mindset is changing, acceptance via Hindi dubbed limited digital advertising eco- and Label in Tamil. These have
Prestige Group recently said north Bengaluru’s Hebbal area, stages of evolution across lan- ing officer at Arré, a content albeit slowly, because the star versions, Merchant said. system in regional markets emerged as success stories in
Abu Dhabi Investment Author- in a joint venture with Benga- guages, with the Hindi market company. “However, there worship culture is far stronger At a time like this, the OTT poses a challenge, and a lot of terms of subscription, reten-
ity (ADIA) and Kotak AIF would luru-based Prestige Group. being at least three to four might be some hesitance in the south and actors and ecosystem may still be a year work will go into educating tion and engagement.
06 ThursDAy, 18 April 2024
New Delhi CORPORATE LIVEMINT.COM

Dimon has a new ANZ ready to plough more

vision for money
in an AI world capital into India business
Bloomberg
[email protected]

According to group executive Mark Whelan, time is very much appropriate to grow in India
J
PMorgan Chase & Co. chief The notification comes days
executive officer Jamie ahead of the scheduled visit of
Dimon makes no secret that Tesla CEO Elon Musk. AFP
his firm is all-in on artificial Shayan Ghosh markets as well as Papua New Guinea,
intelligence. Now, the head of
the world’s biggest bank is lay-
[email protected]
mumbAI
Europe, America and the Middle East.
The executive, now on a four-day visit New norms
ing out his vision for the future to India, said he saw significant
liberalize
A
of money in an AI world. ustralia and New Zealand improvement in the ease with which he
Will you be able to turn to Banking Group (ANZ) is could leave the airport after all formali-
the bank’s future chatbot—let’s
call it ChatJPM—and say, “I
have 30 years, what should I
ready to bring more capi-
tal into its India business, a
top executive said, as con-
ties and reach his hotel, about 18 km
from where he landed, an indicator of
how things have improved in the
foreign
do?” Yes, says Dimon, kicking
off the second season of the
Jamie Dimon, chief executive
officer, JPMorgan Chase & Co.AP
fidence grows that the domestic econ-
omy will attract global investments and
world’s fifth-largest economy.
“It appears to me that it is easier to investments
Bloomberg Originals series The grow at a steady pace. do business here in a whole range of
Circuit with Emily Chang. “We,
in some ways, can do that a little
also be lost, Dimon said.
Dimon doesn’t envision one
One of the 45 foreign banks oper-
ating in India, ANZ currently has cap-
ways. Whether you are transporting
goods across the country, the infra-
in space biz
bit already today,” he said. single finance “superapp,” a ital of about AUD 600 million ($386 structure investments, the legal sys-
AI is already embedded in term that loosely describes million) which has nearly doubled in tem,” said Whelan, who last came to PTI
JPMorgan’s wealth plans, but applications that can do, well, the past two years. India allows for- India in 2017. [email protected]
soon that technology will be almost everything. In 2018, he eign banks to operate either as a ANZ’s push for more clients come at new DelhI
even more sophisticated, he sent a team to China to learn branch or wholly owned subsidiary of a time corporate borrowers are some-

T
said. “All that is going to do is about popular platforms like the parent. All except two—DBS Bank what reluctant to take on more debt. In he government has noti-
know more about you, learn Alibaba Group Holding Ltd’s India and SBM Bank India—work as the last few years, they have been fied amendments to the
more about you, look at pat- Alipay and Tencent Holdings branches. repaying large quantities of debt, after foreign direct invest-
terns and, you know, look at Ltd.’s WeChat. The team “The time is very much appropriate years of a credit binge that left many in ment policy in the space sector
successful things in the past,” returned and built a chart of all to grow here. If you look at the basics of trouble and at the risk of losing control to attract offshore investors in
Dimon added. “AI is going to be of China’s superapps and their the Indian economy and where its of their companies. satellite manufacturing and
a huge aid to things like that.” services, but Dimon concluded place is in the world, this is India’s cen- Asked if he is witnessing a revival of satellite launch vehicles seg-
In a recent letter to share- that rather than one central tury,” Mark Whelan, group executive, corporate demand, Whelan said the ments.
holders, Dimon devoted a sig- “everything app” in the US, institutional, ANZ said in an interview. appetite for debt is building. This phe- Amendment made in the
nificant amount of ink to the there will be a bunch of “mini “We think there is significant upside nomenon of deleveraging, he said, is FDI policy for space sector
importance of AI for JPMorgan superapps” instead. here, and we will therefore be here, and visible in other parts of the world, through a gazette notification
and society at large. He likened JPMorgan already offers grow with our customer base.” Mark Whelan, group executive, institutional, ANZ group. including many developed nations, dated 16 April 2024, prescribes
the emerging technology to the credit card services and is The lender’s total exposure to India where corporate balance sheets are in liberalized entry route and pro-
“printing press, the steam expanding into travel, restau- was at ₹23,813 crore as on 31 December, around to try and get more capital-effi- ter off getting the business and then the best shape. vides clarity for FDI in satellites,
engine, electricity, computing rants and hotels. “There are all of which ₹4,020 crore was in loans and cient in every country, and there is only adding capital and more resources and Global corporations see India’s launch vehicles and associated
and the internet.” these adjacencies on every- advances. ANZ, which re-entered India one country in our network where more tech.” young and educated working-age pop- systems or subsystems, crea-
The New York-based bank thing we do that will be, are in 2011 after exiting the market a ulation as an opportunity, and tion of spaceports for launching
already has thousands of tech driven, and will be increas- decade earlier, has one branch each CASh COurSE banks are no exception. and receiving Spacecraft and
employees working on AI. ingly AI driven,” Dimon said. in Mumbai, Gurugram and Benga- Many multinationals employ a manufacturing of space-related
Dimon has said previously that “So think of anything we offer luru. ANZ currently has ThE lender’s total WhElAN said India ANy capital addition large number of people in their components and systems.
AI will be embedded in every you will be driven a lot by AI.” According to Whelan, any addi- capital of $386
million which has
exposure to
India was at
is the only one
where the bank has
will be determined
by how quickly the
global capability centres (GCCs) in “These rules may be called
one of the bank’s processes, What if you tell a future, tion to capital would be determined nearly doubled in ₹23,813 crore as on increased capital in bank signs up new India for captive technology sup- the Foreign Exchange Manage-
including trading, research, hypothetical JPMorgan chat- by how quickly the bank signs up the past two years 31 December the last two years customers, he said port. ANZ’s India GCC is spread ment (Non-debt Instruments)
equity hedging and customer bot that you want to get rich new customers. The ANZ veteran across two locations in Bengaluru. (Third Amendment) Rules,
service, often as a sort of co-pi- quick? “I hope it tells you that said that among all its markets, The bank has about 80 bankers and 2024,” the gazette notification
lot. AI is likely to make dramatic you’re crazy,” Dimon said, India is the only one where the bank we’ve increased capital and that is Whelan joined ANZ in 2004 and is 9,000 GCC employees in India, said. The liberalized entry
improvements in workers’ pointing out that technology has increased capital over the last two India,” he said. “We do not want to go also a member of its executive commit- accounting for 20% of its global work- routes under the amended pol-
quality of life, but as with every still has its limits. “AI can’t be a years. and put a lot (of capital) in and then try tee responsible for the bank’s global force. It plans to increase the India GCC icy are aimed at attracting
new technology, some jobs will stock picker.” “We have been moving capital and search for the business. We are bet- institutional business across 15 Asian headcount by another 10-20%. potential investors in the
Indian companies in space.
The Union Cabinet earlier
this year gave approval to these
Vishal Mega VCs line up niche funds in new areas World Bank plans amendments.
The notification comes days
ahead of the scheduled visit of
Mart picks 5 FROM PAGE 1 coverage and expertise of spe- opportunities.” $1 billion for SBI Tesla CEO Elon Musk who is
expected to meet with various

IPO bankers What is also helping drive

this trend is that the domestic
cialised funds.
“For our mediatech-specific
thesis, we see India as the foun-
And then there are funds
such as Mumbai-based Tomor-
row Capital, a $100-million VC FROM PAGE 1 linked incentive (PLI) scheme
Indian space companies during
his visit from 21 to 22 April.
Concurrently, approvals for
FROM PAGE 1 pool of capital is expanding, dry for the birth of some of the fund that focuses on select sub- for the auto sector, including Musk’s satellite internet
with insurance companies, most exciting startups that scale sectors within healthcare, fit- “While the outlook is bright- EVs, and a ₹18,100 crore PLI project, Starlink, are nearing
According to credit rating local banks, HNIs and family globally. So, the addressable ness, education, home and ening up now with falling costs, scheme for advanced chemis- finalization.
agency India Ratings, the offices keenly investing in the market expands significantly to interiors, and logistics. improving technology and a try cell, as well as reducing the As per the notification, up to
supermarket chain will sustain space. cover the $2.5 trillion mediat- Early-stage investing has favourable policy framework, goods and services tax rate on 74% FDI for satellite manufac-
healthy growth in the mid- “In the conversations I have ech ecosystem. Our depth of become very competitive and subsidized financing from EVs from 12% to 5% and on turing & operation, satellite
teens rate over the medium had with investors or family focus allows us to be stage crowded. There are more than international financial institu- charging stations from 18% to data products and ground seg-
term. It also expects the com- offices, they are very happy to agnostic and find lucrative 50 active funds out of the over- tions can provide great impetus 5%. Also, the Union road min- ment & user segment are
pany’s debt service coverage participate and cut a cheque for entry points across the invest- all 100+ funds in the country through development of pilot istry of has advised states to allowed under automatic route.
ratio to be comfortable over the our fund,” said Murali Krishna, ment cycle,” Kochhar said. today, several experts estimate. projects and con- waive road tax on Beyond 74% these activities are
next three years, as no term a principal investor at Spyre, a Over the past 6-12 months, Most recently, Synapses, a Ironically, at a time when the tractual tem- According to the EVs. under government route.
loans are outstanding. Mumbai-based $50-million specialized funds have sprung Delhi-based firm launched by a funding winter is still extant, plates,” he added. Central Electricity India has an FDI up to 49% is allowed for
“VMM’s expansion plans are early-stage property-tech fund up in sectors. ISTOCKPHOTO former IFC executive, there is a problem of plenty for A big push for Authority, India installed renewa- Launch Vehicles and associ-
likely to be largely funded launched in 2024. He added launched a $125-million fund early-stage founders looking to e-mobility will will need 27GW of ble energy capac- ated systems or subsystems,
through internal accruals, with that the firm is likely to add Krishna said. that focuses on enhancing raise money, as GPs look to also bring about Creation of Spaceports for
grid-scale battery ity of 180.79 GW,
little reliance on additional another $25 million to its cor- Then, Gurugram-based STEM (science, technology, innovate to stay relevant. substantive sav- which includes launching and receiving Space-
debt,” India Ratings said in a pus in the coming months. Audacity has raised a $30 mil- engineering, and mathematics) With deepening markets in ings for the coun- energy storage 73.31 GW solar craft are under automatic route
report dated 4 March. “Real estate is the second lion fund that invests in media opportunities. India and rise in consumption try, given that the systems by 2030 and 44.73 GW of but beyond 49% government
Through a wholly owned largest industry and is expected technology. “The large family “There are never enough driven by a burgeoning middle energy import wind power permission would be required.
subsidiary Airplaza, Vishal to be a $3-trillion industry, and offices who invest in us do so investment opportunities class, more such sectors are dependent Indian capacity. Besides, 100% FDI allowed
Mega Mart is also engaged in it is also one of the largest because they realise that they because the ones that are expected to come about in the economy is the world’s third Also, India’s updated for manufacturing of compo-
wholesale trading under ‘Vis- employers in the country,” said cannot avoid such a pivotal sec- known get chased by investors next few years, according to largest energy consumer, and Nationally Determined Con- nents and systems/ sub-sys-
hal’ brand. Murali Krishna, a principal tor such as media, especially as and over-capitalized at high val- industry experts. These spe- also the third largest global tribution (NDC) submitted to tems for satellites, ground seg-
According to Boston Con- investor at Spyre, adding that it is the sector most disrupted uations and, hence, they are no cialized funds also give oppor- crude oil buyer. The govern- the United Nations Frame- ment and user segment with-
sulting Group estimates ,India tech adoption in real estate has by AI,” Kabir Kochhar, founder longer investible,” said Ruchira tunities for founders to be ment has been pushing EV work Convention for Climate out government permission.
may become the world’s third- been minimal and “this is & managing partner, Audacity Shukla, co-founder and manag- backed by investors who will adoption through schemes Change (UNFCCC), has com- As per the earlier norms, FDI
largest consumer economy, where we see the opportunity”. VC. He added that generic ing partner at Synapses. “So, to support them with resources such as Faster Adoption and mitted to achieve 50% of was permitted in establishment
with a size of $400 billion by Builders are increasingly seek- funds that look at opportunities create outlier returns, funds that align with the unique chal- Manufacturing of Hybrid and installed power generation and operation of Satellites
2025. ing technology to improve effi- across different sectors will need to do the hard work to dis- lenges and opportunities in Electric Vehicles in India, a capacity from non-fossil fuel- through the government
[email protected] ciency and profitability, never be able to have the vast cover and cultivate proprietary that targeted space. ₹25,938 crore production based energy sources by 2030. approval route only.

Elon Musk’s Starlink cracks down on growing black market

FROM PAGE 1 Pentagon, Ukraine and SpaceX the public that the use of Star- devices started getting notifica- in Sudan could cut off a lifeline hundreds of thousands of lives.
have been working to prevent link was illegal. In Zimbabwe, tions late last week about the for millions of people who have Some aid groups have also
service while traveling. Russian forces from using Star- police had begun confiscating impending shutdown. Most of been in a telecommunications relied on the service to commu-
In its emails to users in link. Ukraine’s military began Starlink kits and arrested and them have been using the ser- blackout for more than two nicate with local staff, said Eric
recent days, Starlink said that using Starlink soon after Rus- fined some users. vice via its regional roaming months. Reeves, a Sudan expert and fel-
its regional roaming plans “are sia’s invasion in 2022 and Kyiv Gift Machengete, the direct- option for Africa, which costs Shire Shadia, a Sudanese low with the Kenya-based Rift
intended for temporary travel has been pressuring SpaceX to or-general of the Posts and around $65 a month. health worker exiled in Valley Institute. “This is the
and transit, not for permanent turn off devices used by the Telecommunications Regula- Two Sudanese officials said Uganda, says that Starlink was worst possible time for there to
use in a location.” Users who Russian military on Ukrainian tory Authority of Zimbabwe, that after Sudan’s telecommu- the only way family members be limitations on aid agencies’
have been roaming on Starlink territory. said he had a discussion with nications regulator didn’t get a stuck in the war-torn capital, ability to communicate,” he
for more than two months At an industry event last SpaceX representatives, response on its concerns over Khartoum, have been able to said.
without returning to the coun- week, Plumb declined to dis- including Musk, about the use Starlink from SpaceX’s Global contact her. “Every day, they go In South Africa, a teacher
try where they ordered their cuss details but said the parties of Starlink in the country. The Licensing and Activation office near a camp of RSF (fighters) to said he had bought a Starlink
device will see their service involved were making following day, Starlink emailed in the U.S., it contacted SpaceX’s find the Starlink network to device while vacationing in
restricted, the emails said. progress. users in Zimbabwe, saying it Musk once expressed concern about Starlink offering service in Middle East and Africa division communicate with us,” she Canada to bring internet to his
The Journal tracked Starlink “Starlink is a commercial had been directed by Potraz to countries using a technology that links satellites together. REUTERS in early April. The agency said. “It’s the only way we have school in the small rural town
devices to Russian soldiers product. It’s available on the disable their service. requested that the devices be been communicating.” of Brandvlei.
fighting on the front line in commercial market,” he said. In the email, Starlink also that links satellites together expansion depended in part on turned off in areas controlled by Many Sudanese have also “The kids are more inter-
Ukraine and to Sudan’s Rapid “Certainly, Russia has no prob- encouraged users to contact and thus avoids needing per- securing permission from vari- the rebels, the officials. been relying on Starlink con- ested in school since we’ve
Support Forces, a paramilitary lem trying to buy things the agency “to communicate mission to develop on-the- ous authorities. “Some coun- “RSF fighters have the inter- nections to receive remittances modernized it,” said the
group that the U.S. has accused through [the] black market.” your support for Starlink to ground infrastructure to sup- tries are probably unlikely to net even deep in the deserts; from relatives living abroad teacher, who worries that the
of crimes against humanity and In recent months, authori- obtain the necessary regulatory port the service. Asked if the approve our system, but most the military commanders want that allow them to purchase shutdown of Starlink in South
ethnic cleansing in its war with ties in several African coun- approvals in Zimbabwe.” technology could cause regula- countries, we think we should this to end,” one of the officials food and other necessities. Aid Africa would again take his stu-
the country’s military. tries—including Sudan, South Musk once expressed lim- tory issues, he said, “They can be able to get to,” he said, said. “They have been pressur- agencies warn that parts of dents offline. “How do I explain
U.S. Assistant Secretary of Africa, Zimbabwe and the ited concern about Starlink shake their fist at the sky.” according to a video of a talk he ing SpaceX.” Sudan are likely to slip into something like this ban… to the
Defense for Space Policy John Democratic Republic of offering internet service in More recently, the executive gave. But there are fears that famine in the coming weeks or kids and parents?” he said.
Plumb said officials from the Congo—had issued notices to countries using a technology made clear that Starlink’s In Sudan, owners of Starlink severing Starlink connections months, potentially claiming © 2024 DOW JONES & CO. INC.
LIVEMINT.COM CORPORATE ThursDAy, 18 April 2024
New Delhi 07

Zee board
approves Tata Comms’ Q4 net at ₹322 cr,
company’s
rejig
company sees cautious clients
Lata Jha
[email protected]
New Delhi Consolidated revenue during the fourth quarter rose 24.6% year-on-year to ₹5,692 crore

Z
ee Entertainment Enter- Two-and-a-half million users reportedly sign up every day.
prises Ltd’s board of Gulveen Aulakh
directors has endorsed a
new organizational framework
proposed by managing director
[email protected]
New Delhi Telegram app hits
T 900 million users
and CEO Punit Goenka. ata Communications’ net
Goenka, who will assume profit for the quarter ended
direct charge of the domestic 31 March surged to ₹321.52
broadcast business, had pro- crore, from ₹45.1 crore in the
posed to leverage synergies previous three months, but AFP about its users.
among the core business seg- fell 1.5% from ₹326.42 crore in the same [email protected] Durov said he got the idea to
ments which include broad- quarter a year ago. DubAi launch an encrypted messag-
cast, digital, movies and music. Consolidated revenue for the quar- ing app after coming under

T
The new structure, effective ter rose 24.6% year-on-year to ₹5,692 he encrypted messaging pressure from the Russian gov-
immediately, will see Siju Prab- crore. Of this, revenue from data rose app Telegram has ernment when working at VK,
hakaran, who has led the south 26.9% to ₹4,656 crore. Earnings before reached more than 900 a social network he created in
cluster of channels take addi- interest, tax, depreciation and amorti- million active users and should his home country before selling
tional responsibility for the zation (Ebitda) rose 2% to ₹1,056 crore, pass the one-billion mark it and leaving Russia in 2014.
west cluster, and report to but margins declined to 18.6% from within a year, its boss said in an He said he then tried to settle
Goenka. Samrat Ghosh, who 22.6% a year ago. Profit margins also interview published Wednes- in Berlin, London, Singapore
has led the east cluster of chan- slipped 156 basis points to 5.6% for the day. and San Francisco before
nels, will take additional quarter ended March. “Telegraph is spreading like choosing Dubai, which he
responsibility for north and For the full year, consolidated reve- a forest fire. Two-and-a-half praised for its business envi-
premium clusters, while nues jumped 17.5% to ₹20,969 crore, million users sign up every ronment and “neutrality”.
Ruchir Tiwari will continue to while data revenue crossed the day,” said Pavel Durov, the Rus- “I think we’re doing a great
lead the Hindi movies cluster. ₹17,000-crore mark, rising 21.9%. Ebitda was up 2% to ₹1,056 crore, but margins slipped to 18.6% in the January-March quarter from 22.6% a year ago. BLOOMBERG sian who founded job with Tele-
Vishnu Shankar will con- However, profit nearly halved to the company Boss Pavel gram. 900 million
tinue to lead &TV and the free- ₹969.6 crore in FY24, from ₹1,800 in tinue as the company is integrating its feet on street. So those investments will spectrum at the right price points, gov- alongside his Durov says the users will proba-
to-air segment, and Ashish FY23, due to higher expenses at its global acquisitions and also spending continue,” he said. ernment allowing enterprises to get brother Nikolai, encrypted bly cross a billion
Sehgal will be responsible for overseas businesses. The company’s on its overseas operations to turn them He added that the non-profitable spectrum directly, when will they (tel- in a rare interview messaging app monthly active
integrated advertisement sales board recommended a dividend of around, he added. subsidiaries that were dragging the cos) be ready and more importantly, with controversial users within a
for the broadcast and digital
should pass the
₹16.7 per share. “We’ve invested in our platforms margins have to be turned around. It the customers readiness,” he said. right-wing US talk year from now,”
business, to maximize value for Macroeconomic headwinds due to organically. We’ve also invested inor- has also exited some non-profitable The company added that during the show host Tucker one-billion mark he said. By basing
the advertisers with a sharp conflicts and unrest in some ganically through a couple of contracts. quarter ended March 2024, it Carlson. within a year itself in the United
focus on profitability. All of parts of the world could large acquisitions, and peo- The Switch and its exist- received show cause-cum- People “love Arab Emirates,
them will report to Goenka. In potentially impact busi- ple have translated into a ing business combined demand notice for FY23 the independ- Telegram has
this enhanced role, for the digi-
tal business revenue, Sehgal
ness. “While our funnel is
good, the conversion is ₹45.1 cr
Profit earned by
full year of costs for us,” he will become profitable
said. He added that the this year while the 1.5%
Year-on year profit
aggregating to ₹77.65
crore. Separately, it said
ence. They also love the pri- been able to shield itself from
vacy, the freedom, (there are) a moderation laws at a time when
will also report to Amit Goenka. taking more time costs are likely to remain Kaleyra acquisition, that one of its subsidiar- lot of reasons why somebody Western countries are pressur-
For the broadcast business rev- because our customers the company in the on the higher side since merged with the busi- decline in the ies had issued a termina- would switch to Telegram”, ing large platforms to remove
enue he will continue to report are cautious. With the Oct-Dec quarter the company intended to ness in the US, is expected fourth quarter tion notice to a customer – Durov told Carlson. illegal content.
to the MD and CEO, Zee said. conflict happening, the increase its reach in the to turn profitable in two alluding to Vodafone Idea The encrypted messaging Telegram allows groups of
“We are confident that a lean cautiousness will only international markets follow- years. without naming it - and was in app, based in Dubai, has posi- up to 200,000 members,
team under the leadership of increase. But despite the head- ing the acquisition of The Switch He said that while plans for pri- discussion on disengagement tioned itself as an alternative to which has led to accusations
Punit, will enable the company winds in the international markets, and Kaleyra. vate 5G were not on the back burner transition plan. US-owned platforms, which that it makes it easier for false
to achieve its set goals and pri- we’ve seen growth, albeit on a smaller “Our reach in international markets with some proof-of-concepts already The carrying amount of trade receiv- have been criticised for their information to spread virally, as
orities for the future, further base,” MD and CEO A S Lakshminara- is very small, even though 50% of our done for customers, the correct pricing ables (including unbilled revenue and commercial exploitation of well as for users to disseminate
generating higher value for the yanan said in an interaction with Mint revenue comes from international for leasing spectrum from telcos for net of provisions) was ₹235.10 crores users’ personal data. Telegram hateful, neo-Nazi, paedophilic,
shareholders,” R. Gopalan, following the results. markets, and we have to do a lot more private 5G has to be determined. and ₹171.50 crore as on March 31, 2024 has committed itself to never conspiratorial and terrorist
chairman, ZEE, said. Margin pressures are likely to con- work to improve our reach and with “It has to all come together, giving and March 31, 2023 respectively. disclosing any information content.

Axe deo finds an unlikely new customer BMW’s surprise electric-car success
Saabira Chaudhuri
hArlesTON
they’re the naughtiest things
I’ve ever owned.”
started with an early setback
Bryce says Lynx is espe-
Bloomberg

A
few years ago, retired cially helpful after Casper—a delayed one of its key battery
police officer Sam horned Jacob—and Cash—a [email protected] models, the mid-size Q6 e-tron
Bryce posted a ques- woolly white Llanwenog SUV, by two years.

F
tion on the U.K. Facebook Cross Ryeland—have been or German luxury-car Mercedes’s push further
group “Ladies Who Lamb.” out mating with ewes. makers, being first to fail is upmarket has been compli-
A ram she owned had “When the rams come back proving valuable when it cated by poor uptake of its top-
become very ill-tempered and from tupping, they stink,” comes to electric vehicles. After end electric model, the
was picking on his castrated Bryce says. “They need a pow- a bruising initial crack at bring- €110,000 ($117,000) EQS
fieldmate. Was there anything erful smell.” ing EVs to market, BMW AG is sedan, which has been criti-
the other shepherdesses On a rainy spring morning, lapping its rivals. cized for its low-slung roofline
could suggest to calm him? Cash and Casper chomp on a In 2008, BMW engineers set that crimps head- and legroom
The replies came back breakfast mix of barley, out to develop an electric city in the back. That’s a no-go,
within minutes: Lynx Africa. molasses and rapeseed in car from scratch. Five years especially in China, where
Lynx is the U.K. name for Some shepherdesses say that when used among flocks, Axe adjoining pens as a peacock later, the company introduced many buyers prefer to be
the popular deodorant sold in masks hormones that pushes rams to fight. and peahen—christened the i3, a quirky four-seater with chauffeured. The manufac-
the U.S. as Axe, a product that Charles and Camilla—flap rear-hinged back doors and a BMW’s i3 car looked unlike anything else in its portfolio, but with turer slashed the price of the
for decades has been mar- own, says Jenkins. Lynx effect.” about on a nearby roof. Cash frame made with carbon fiber. its steep sticker price and limited range, sales were muted. EQS and has unveiled a rede-
keted as a way for young men “I always go for Lynx Africa Over the past few years, finishes first and occasionally The car looked unlike anything signed version with more spa-
to become instantly irresisti- because it has a very distinc- Unilever has tried to reinvent charges at the barrier separat- else in its portfolio, but with its Mercedes-Benz Group AG. are reducing subsidies. Mer- cious “executive” rear seating,
ble to lasses. tive strong smell,” she says. Axe to be a more inclusive ing him from Casper, running steep sticker price and limited “BMW has been able to cedes cited the phase-out of its but the update won’t reach cus-
In recent years, some shep- “The ones that don’t smell as brand with more sophisti- his mouth along the metal and range, sales were muted. Disil- adapt its over one decade worth Smart Fortwo two-seater and tomers in China until the
herdesses have discovered strong have less chance of cated fragrances and less gau- butting it with his nose. lusioned, BMW slowed its EV of battery-electric vehicle sluggish demand in Germany fourth quarter.
the deodorant has an auxiliary working.” che adver- “Those are all displays of plans. knowledge into its current for falling EV wholesales in the BMW’s EV lineup is fresher
benefit: When used among Axe was tising. Its dominance,” says Bryce. Years spent soul-searching model lineup with first quarter. Ear- and more attractive, said Metz-
their flocks, it masks the hor- f i r s t recent ads Half a world away in Gis- led to criticism that BMW was almost zero hand- The company lier this month, ler analyst Pal Skirta. It ranges
mones that get the boys but- launched for Lynx borne, New Zealand, 43-year- stalling on EVs. Lately, though, icap,” said Matt- has now designed T e s l a Inc. from the compact iX1 SUV to
ting heads. by Unilever in France in 1983 Africa feature a talking goat— old sheep and beef farmer the company has been hitting hias Schmidt, an EVs almost reported its first the i7 luxury sedan, which
“There’s no argy-bargy, no after the company saw a gap a play on the acronym GOAT, Toby Williams is also a Lynx the right notes with a much less independent auto indistinguishable y e a r - o n - y e a r comes with options including
rowing,” Bryce says of the in the market for a strong deo- for Greatest of All Time — user—but only for himself, radical approach. It designed analyst near Ham-
from combustion global sales drop massage seats and a large video
deodorant’s effects. dorant that smelled like whose curving horns, coinci- not his 60 rams. EVs almost indistinguishable burg. “They have since 2020. screen that folds down from the
Since getting clued in, cologne. The brand was sold dentally, make it resemble a He has used Unilever’s from their combustion engine- carried the Ulti- engine-powered Some of ceiling. BMW is facing intense
Bryce has regularly used a few as Lynx in markets where the ram. Brut, Procter & Gamble ’s Old powered siblings, and is build- mate Driving siblings BMW’s head start competition in China, where
long sprays of Lynx on Cash Axe trademark was already Unilever, which declined to Spice and Johnson & Johnson ing them on the same factory Machine mantra has to do with its local automakers including
and Casper, two testosterone- taken, including the U.K., Ire- comment, has said that Axe baby powder to convince line to contain costs. over to their EVs.” rivals veering off BYD Co. are pushing into the
addled 4-year-old rams she land, Australia and New Zea- isn’t tested on animals. ewes to mother orphaned The approach is paying divi- BMW’s success is all the course. Volkswagen AG’s Audi luxury segment. In Europe,
keeps some 100 miles north- land. The shepherdesses say lambs. dends: BMW shipped more more impressive since it coin- has been falling behind in BMW is offering the steepest
east of London. Twelve years later, Uni- they’re careful to avoid the “They all work the same,” than twice as many EVs than cides with a broader slowdown China, its biggest market, after rebates for premium EVs, as
The pair have lived lever launched Lynx Africa animals’ eyes while spraying he says. “The point is you’re Audi in the first quarter, and in demand for EVs, particularly failing to offer models that cater per Bloomberg Intelligence
together since they were five (and Axe Africa), a scent it them. providing a scent that con- roughly two-thirds more than in Europe, where governments to local tastes. Software issues analyst Michael Dean.
months old but are prone to marketed as “deep and sen- As a child, Bryce enjoyed fuses the animal.”
fight following any period of sual with a fresh top note set milking her neighbor’s goats. The fifth-generation
separation. on a warm orien- After retiring as a farmer is skeptical that the
“They puff themselves up
and square up to each other
and make this grunting
tal base.” Ewes identify police officer 18
Unilever says offspring by scent years ago follow-
Lynx Africa is the and spraying both ing a back injury,
Lynx Africa technique works,
given how prone to fighting
rams are, but agrees the prin-
VinFast sees narrowing losses HAVE FUN
WITH FACTS ON SUNDAYS
noise,” explains Bryce, 55 top-selling male has also confused she decided “in a ciple is sound.
years old, who often favors fragrance in the mad moment” to “Animals can see each other, Bloomberg down significantly from sales months. It delivered a total of Catch the latest column of
them into
unwieldy Wellington boots
paired with purple nail polish
U.K.
For years the
keep
believing a lamb sheep. She now
some but smell is what lets them
know it’s one of their friends,”
[email protected] of $436.5 million in the previ-
ous quarter but up 269.7%
34,855 vehicles last year. The
company reaffirmed its fore- A
is their own

V
and sparkly eye shadow. brand’s ads drew owns what she he says. “It’s triggering rams to inFast Auto Ltd.’s first- year-on-year. cast of 100,000 vehicle deliv- A quiz on the week’s development.

“It’s like when you see complaints for calls a “hobby say, ‘This is my mate. I don’t quarter loss narrowed VinFast, which said it aims eries in 2024.
drunk men put their fists up being degrading flock” of about need to fight him.’” while car sales declined to sell its vehicles in as many as Fifty-six percent of Vin-
and say, ‘I’ll fight you.’” to women. One early 2000s 30 sheep. Bryce says without Lynx, as the Vietnamese EV maker 50 global markets by the end Fast’s first-quarter EV sales
The deodorant isn’t just for ad showed a teenage boy put- “Being a police officer is Casper and Cash “get full of sets ambitious goals to be a of this year, is introducing its were to related parties of the
the fellas. ting his feet against the nose quite a high-adrenaline job. themselves” and start to global brand amid declining brand amid fading interest company, the company said.
Caitlin Jenkins, a 31-year- of a girl in a library, who No day was the same and I “bicker,” so she likes to keep a worldwide demand for electric from consumers for electric In 2023, VinFast said 72% of its
old shepherdess in nearby responded by enthusiastically think that describes sheep couple of cans on hand. vehicles. vehicles. Tesla Inc. is cutting EV sales and 46% of e-scooter
Suffolk, has used Lynx to suc- licking them. really well—you never know “I’m not the only nutter, The company reported a net its workforce by more than deliveries were to related par-
cessfully convince ewes to “In the animal kingdom, what they’re going to get up lots of ladies have it in their loss of $618.3 million in the 10% while Chinese EV makers ties, in particular to taxi com-
mother orphaned lambs. the horn turtle seduces the to,” she says as a bleating tool kit,” she says. “It’s quite a first three months of this year, are locked in a price war as pany GSM Green and Smart
Ewes identify their off- female by drumming his long long-legged lamb skips past well-known thing among the decreasing 12.3% from the demand for the vehicles slows. Mobility Joint Stock Co., in
spring by scent and spraying toenails across her snout,” and then leaps into the air for ladies—the shepherdesses— fourth quarter, the company VinFast delivered 9,689 which Vingroup’s chairman
them both confuses the ewe said the voice-over. “Thank no apparent reason. that Lynx works.” said in a filing. Revenue for the cars in the first quarter, a 28% Pham Nhat Vuong holds a 95%
into believing a lamb is her goodness humans have the “I adore my sheep, but ©2024 DOW JONES & CO. INC. period was $302.6 million, drop from the previous three stake. hindustantimes htTweets www.hindustantimes.com
08 ThursDAy, 18 April 2024
New Delhi GLOBAL LIVEMINT.COM

Iran makes dangerous gamble

on open confrontation
Tehran’s attack on Israel marked a strategic shift after giving up on accommodation with the U.S.
Jared Malsin & Benoit Faucon tacks on Tehran and carried out more
Federal Reserve chair Jerome Powell says recent data have [email protected] than 400 airstrikes against Iranian-
clearly not given the central bank greater confidence. BLOOMBERG ISTANBUL linked targets in Syria and elsewhere
in the region, The Wall Street Journal

Powell dials back

F
or two decades, Iran stayed previously reported.
in the shadows and relied on Israel intensified those strikes on Ira-
militias that it funded around nian targets in the aftermath of Hamas’s

expectations on the Middle East in its deadly

fight with Israel. Its direct
attack on Israel last weekend marked
Oct. 7 attack and as the war in Gaza con-
tinues. Suspected Israeli strikes have
killed at least 18 Revolutionary Guard
a strategic shift, and a major gamble. members in recent months, culminat-
rate cuts Iran had long known it had a
weaker conventional military com-
pared with Israel and its top ally, the
ing in the April 1 strike in Damascus that
killed a top Iranian general and
prompted Iran’s retaliation.
Nick Timiraos on the rate-cut guessing U.S. For most of its existence since the “This is a massive change of the
[email protected] game, declaring shortly after 1979 Islamic revolution, Tehran had terms of engagement. And I think it’s
his State of the Union address few friends in foreign capitals to sup- obviously deliberate in order to draw

F
ederal Reserve Chair in March that the “little outfit” port a straight-on attack on a U.S. ally. some very clear and deliberate red
Jerome Powell said firm that sets rates might be lower- Iran’s massive drone and missile lines under their conflict with Israel,”
inflation during the first ing them soon. At their meet- strike on Israel—which its military said Sanam Vakil, director of the Mid-
quarter had introduced new ing in March, most Fed offi- took full credit for and vowed to do dle East and North Africa program at
uncertainty over when and cials projected two or three again if Israel retaliated—came after Chatham House in London.
whether the central bank rate cuts this year would be years of building stronger diplomatic Iran warned in advance that an
would be able to lower inter- appropriate, with a narrow ties with American rivals such as Rus- attack was coming, informing Oman
est rates later this year. majority penciling in at least sia and China, mending fences with and Switzerland, two countries that
“The recent data have three cuts. neighbors such as Saudi Arabia and are traditional intermediaries
clearly not given us greater But reality has dealt the building up its economy through between Iran and the West, giving
confidence” that inflation is Fed and the White House a illicit oil sales. It marked a dramatic Members of the Israeli military stand next to an Iranian ballistic missile which fell in Israel on the weekend. AFP Israel and its Western and regional
making progress to the Fed’s different hand, at least so illustration of Tehran’s shift away partners time to prepare, a step that
goal “and instead indicate that far. Because inflation was from accommodation with the West nity to change the conversation away Iran is currently working on building that calls itself the Axis of Resistance, likely limited damage from the strike.
it is likely firmer and toward open confrontation with from the internationally unpopular a nuclear weapon. which was getting repeatedly Still, in contrast to previous rounds
to take t h a n the U.S. and its allies. war in Gaza and presenting a test for As recently as February, Iranian attacked by Israel and the U.S., of escalation, the scale of the attack
longer antici- Now, Iran and Israel stand on the Iran’s military capabilities that it may officials said they had identified only according to a Revolutionary Guard suggested an attempt to inflict real
t h a n pated in brink of an escalatory cycle of vio- not be up for. two red lines that would prompt a adviser. damage inside Israel, military analysts
expected to achieve that con- the first three months of the lence that poses extreme dangers for “The Iranians aren’t looking for large-scale attack on Israel: a direct At a meeting of intelligence and said, with more than 300 total missiles
fidence,” Powell said Tuesday year, investors and central both sides. Israeli war cabinet mem- popularity. They’re looking for lever- strike on its strategic assets within Guard leaders Monday, Ali Akbar and drones of various types deployed.
at a moderated question-and- bank officials are coming to bers have said the country will strike age,” said Jon Alterman, a former Iran, such as its nuclear and petro- Ahmadian, the secretary of Iran’s It took a complex joint operation with
answer session in Washing- grips with the idea that the back at a time and place of its choos- State Department official who is now chemical facilities, or a ground offen- Supreme National Security Council, the U.S. and Arab neighbors to down
ton. Fed will have to defer rate ing, with U.S. officials saying it is senior vice president at the Center for sive against the Lebanese militia Hez- said “the decision was made due to most of the projectiles.
Central bank officials cuts, raising the risk that likely to come soon. Strategic and International Studies in bollah, a valuable ally that is one of growing frustration by [Yemen’s] “If they wanted to stage a symbolic
started the year with guarded reductions won’t occur A growing faction of Iranian hard- Washington. Israel’s most dangerous enemies. Houthis and others in the ‘resistance’ strike, why use so many systems? If
optimism that they would be until the economy shows liners has been calling for tougher “The Iranians feel they are in an Even when Israel struck a building that Iran was not doing anything,” it’s just symbolic, what does the real
able to cut interest rates sev- more obvious signs of action against Israel, as it inflicted existential battle with the United hosting Iranian consular activities, a said the adviser. strike look like? They can’t launch a
eral times beginning around weakening. heavy damage on Tehran’s network States and its allies and partners, military retaliation wasn’t a given, “With a backdrop of Gaza, it really thousand missiles at once,” said
midyear after inflation The consumer-price index, of militias, including a strike this regardless of what said advisers to the increased the pressure in terms of Fabian Hinz, an expert on Iranian
dropped more rapidly than released last week by the month on a diplomatic facility in they do. So they Revolutionary showcasing that Iran was still a leader missiles and drones with the Interna-
they had anticipated at the Labor Department, showed Damascus that killed senior military don’t see a choice Guard and the in this Axis, that was kind of confront- tional Institute for Strategic Studies.
end of 2023. core inflation in March was officers. For many Iranian hard-lin- except taking a Syrian govern- ing Israel,” said Dalia Dassa Kaye, a A central strategic question now is
In December, Powell had 3.8% from a year earlier. That ers, that attack demanded a para- risk. And they see their continued ment. Iran could have decided not to senior fellow at UCLA’s Burkle Cen- what role, if any, Hezbollah will play
pivoted from broke a yearlong digm-shifting response. survival as a victory,” he said. retaliate, these people said. It could ter for International Relations. “I in any escalation between Israel and
focusing on At their meeting streak in which “We have decided to create a new The attack comes after Iran began have decided not to designate the think there was a sense that Israel was Iran. The Lebanese group has waged
whether the Fed in March, most the 12-month equation,” said Maj. Gen. Hossein supplying Russia with drones that building as part of its territory and in the driver’s seat, and they needed a slow-burning conflict with Israel
would need to Fed officials change had Salami, the head of Iran’s Islamic have been used to attack Ukraine and ignored the death of its commanders, to turn the tables.” since the beginning of the war in
raise rates again projected two or declined in each Revolutionary Guard Corps, the pow- helping build a drone factory on Rus- as it had done with years of previous Though the Iranian attack caused Gaza, continuously exchanging fire
to when the cen- month. erful paramilitary organization that sian soil—moves that alarmed U.S. attacks on its assets in Syria, they said. little damage and few injuries, the with Israeli forces but holding back its
tral bank might
three rate cuts
Core inflation carried out Saturday’s attacks. “From officials and helped give Moscow an Israel hasn’t taken responsibility scale of the strikes was a departure for more sophisticated arsenal of preci-
be in a position to this year would be excludes volatile now on if the Zionist regime attacks edge in the war in Ukraine. Iran has for the Damascus attack, and Israeli Iran. Previously, its hallmark was mil- sion-guided missiles.
lower them. Mar- appropriate food and energy our interests, assets, figures and citi- also built out its nuclear program officials said intelligence showed the itant groups that could pressure “The shadow war will continue,”
ket participants prices, and econ- zens anywhere, we will reciprocally since the U.S. pulled out of its deal building wasn’t a real diplomatic adversaries such as Israel while Iran said Chuck Freilich, a former deputy
raced ahead and omists treat it as a attack it from the origin of Iran,” he with Tehran in 2018, sparking worry facility but a building used for Iranian maintained its distance. national security adviser in Israel.
began anticipating a string of better gauge of underlying told state television Sunday. the country is closer to building such military purposes. During this shadow war, Israel, it is “The question is whether there will
six or seven rate cuts, puzzling price pressures. The shift bears enormous risks for a weapon—something Iran denies. Iran decided to intervene under widely believed, killed Iranian be open conflict.”
Fed leaders who didn’t think The Fed’s preferred Tehran, handing Israel an opportu- U.S. officials say they don’t believe pressure from allied militias, a group nuclear scientists, launched cyberat- ©2024 DOW JONES & CO. INC.
such exuberant expectations g a u g e , w h i c h w i l l b e
were aligned with their own released next week by the
outlook. Commerce Department, is
Still, Fed leaders, includ- likely to show core prices
ing Powell, maintained up rose 2.8% in March from a
through early this month year earlier, the same as in
Dubai’s record rain floods expensive homes and halts flights
that rate cuts were likely to February, according to esti-
be appropriate, even after mates by Fed economists. Bloomberg chaos as water entered the citing a statement from the The heavy rains across the planes from Al Ain airport “rains of goodness,” despite
economic activity and hiring The Fed targets 2% inflation [email protected] city’s expensive homes and country’s National Committee desert nation came after cloud between Sunday and Monday, the flooded houses and over-
had proven more resilient over time. underground car parks, left for Emergency Management. seeding. The UAE has been the government agency said. flowing swimming pools.

D
than expected. After last week’s CPI report, ubai flights have been some buildings without power Dubai airport, one of the carrying out seeding opera- That technique involves The latest storms followed
That kept front-and-cen- most analysts on Wall Street severely disrupted and and resulted in widespread world’s busiest, is suffering tions since 2002 to address implanting chemicals and tiny heavy rains earlier this year
ter the possibility that offi- changed their forecasts, cars were left stranded flooding even a day later. from “significant disruption,” water security issues, but the particles—often natural salts that had also caused flooding
cials would take back some scrapping expectations of a on flooded roads after record One person died after being it said on Wednesday on X. lack of drainage in many areas such as potassium chloride— and traffic snarls. Dubai’s gov-
of last year’s rate increases June rate cut. They see the rainfall over the past day swept away by flash floods in Online departure boards can trigger flooding, including into the atmosphere to coax ernment told its employees to
and shore up the prospects Fed waiting until July, Sep- brought the city to a standstill. the north of the country, the showed most arrivals or depar- in cities such as Dubai that’s a more rain from clouds. work from home again on
of a so-called economic soft tember or December to start The United Arab Emirates National newspaper reported. tures as cancelled or delayed as global financial and business With global warming Wednesday due to the
landing. lowering rates, and they (UAE) experienced its heaviest In neighbouring Oman, at of 1pm local time. Emirates, the centre. threatening a surge in heat-re- weather conditions and urged
Even President Biden, who expect just one or two cuts downpour since records began least 18 people have died in biggest international airline, The Gulf state’s National lated deaths in the UAE, private employers to do the
had mostly avoided com- this year. in 1949, Dubai’s media office recent days as the heavy rains said it was halting all check-ins Center of Meteorology dis- Dubai’s media office on Tues- same. Schools have been
menting on the Fed, joined in © 2024 DOW JONES & CO. INC. said in a statement. It caused caused flooding, AP reported, for passengers for the day. patched at least seven seeding day dubbed the downpours directed to remain closed.

Investment banking bounceback powers big U.S. lenders

Alexander Saeedy, ents. Aggregate spending on debit underwriting, as initial public rowers might be less active in interest income, or the
AnnaMaria Andriotis & But the results were tem- and credit cards at JPMorgan, offerings picked up. the capital markets later in the amount they earn from loans
pered by rising pressure from the biggest issuer of the group, Goldman Sachs’s and Citi- year. Goldman said its backlog minus what they pay on
Justin Baer
interest rates, which squeezed rose 9% and credit-card loans, group’s investment-banking of future investment-banking deposits and other debt, was
profit margins. Banks are or outstanding balances, rose fees each increased 32% from a revenue fell from the end of down in the first quarter com-
[email protected] warning that the capital mar- 15%. year earlier. Several large 2023. pared with the fourth quarter
kets recovery is fragile. And Consumers across the board banks posted a revenue Struggles ahead of 2023.

A
merica’s biggest banks many said they don’t expect appear to be benefiting from decrease in M&A and advisory Banks could struggle in the Higher rates can also hurt
reported stronger- much revenue and profit higher paychecks. Research activity, while Goldman long term if rates stay where banks’ balance sheets. Banks
than-expected earn- growth this year. from Bank of America shows reported a 24% increase. they are now. including Bank of America are
ings in the first quarter, high- As a group, the six big banks that wages grew in March for Trading reve- Customers are sitting on hundreds of billions
lighting how a resilient econ- reported $35.63 billion in high-income and low-income nue fell at JPMor- As a group, demanding of dollars of unrealized losses
omy is helping power profits, down 3% from a year households at the fastest rate gan and Citi- the six big higher deposit on debt securities that they
everything from Main Street to ago, with half of the banks since early 2023, a reflection group and were banks reported rates for money bought before interest rates
Wall Street. reporting a of the country’s strong labor about flat at Mor- $35.63 billion in they keep in went up. Though they aren’t
JPMor- decrease in market. gan Stanley and
profits in the first banks. While
likely to have to realize them, it
gan Chase, profit and “The economy remains Goldman reported a 24% revenue increase in M&A and advisory Bank of America. some shifted cash makes investors skittish.
Bank of half of them resilient and a lot of that has to activity, while several large banks posted a decrease. REUTERS G o l d m a n quarter, down 3% from low-interest While that problem started
America, Citigroup, Wells reporting an increase. Com- do with the consumer,” Bank reported a 10% from a year ago savings accounts to improve in the second half
Fargo, Goldman Sachs and bined revenue rose 4% to of America Chief Financial Investment bank resur- investment-grade debt issu- increase. into certificates of of last year, losses on such
Morgan Stanley all reported $139.07 billion. Officer Alastair Borthwick said gence ance as improved market con- While banks deposit, bank securities rose in the first quar-
revenue and earnings that beat Consumer spending during a call with reporters The banks’ investment- ditions enable issuers to pull said corporate executives have executives also acknowledged ter at Bank of America.
or met analysts’ expectations. Executives said the econ- Tuesday. banking divisions delivered forward activity,” Jane Fraser, regained confidence, the the continued risk of custom- Another headache: tighter
Consumer spending remained omy continued to look strong, But there are some areas of one of their best quarters since Citigroup’s CEO, said during recovery remains fragile, ers moving money out of the bank regulations. Federal
robust. Pent-up demand for with consumers and busi- concern. JPMorgan Chief the Federal Reserve’s interest- the bank’s conference call with given the uncertainty around banks and into higher-yield- authorities are finalizing a new
dealmaking, stock and bond nesses both spending and bor- Executive Jamie Dimon said rate increases began dampen- analysts. interest rates and geopolitical ing alternatives. That could set of rules that could make it
sales lifted earnings at the Wall rowing. Revenue from wealth- on a call with reporters Friday ing corporate dealmaking in That is both thanks to tensions. And despite force banks to find pricier more expensive for banks to
Street-heavy banks. A market management arms also that there were signs of dis- 2022. higher underwriting fees, as improvements, investment- sources of funding. lend.
rally continued in early 2024, increased. tress in the bank’s loans to “The rebound in banking banks helped arrange and sell banking activity remains Many, including JPMorgan, Charley Grant and Gina
boosting fees the banks collect Credit-card income and consumers with low credit gained speed during the quar- a record number of debt deals below historic norms. Citigroup and Wells Fargo, Heeb contributed to this article.
on money they manage for cli- transaction volumes jumped. scores. ter, led by near-record levels of during the quarter, and equity JPMorgan warned that bor- already reported that net ©2024 DOW JONES & CO. INC.
LIVEMINT.COM NEWS WRAP ThursDAy, 18 April 2024
New Delhi 09

NEWS
$132.4 bn
THE VALUE of India’s crude oil imports in
$7.5 bn
THE ANNUAL operating profit that
₹8,339 cr
THE AMOUNT the Adani family has
5-8%
THE PROJECTED percentage increase in
3.2%
CONSUMER PRICE inflation in the UK in
IN FY24, down 16% from $157.5 billion in the Vedanta Resources is aiming to achieve in infused into Ambuja Cements through road execution in India in FY25, translating March amid easing in food prices, down
NUMBERS previous fiscal. The volume remained
almost the same at 232.5 million tonnes
the next two years, a 50% jump from the
expected $5 billion of Ebitda in FY24
warrants, increasing its stake in the
company by 3.6% to 70.3%
to 12,500–13,000km, following a 20% rise
in FY24, according to Icra
from 3.4% in February, and lowest
since September 2021

HOWINDIALIVES.COM

IIFL Finance to hold ROAD TO DEMOCRACY Tier-III, IV cities on

₹1,272 cr share sale MG Motor roadmap

I M
IFL Finance will raise ₹1,272 crore by selling G Motor India is driving towards tier-III
shares, the non-bank lender said on and IV cities of the country, with plans
Wednesday, aiming to shore up capital a to establish 100 new touchpoints by the
month after the central bank barred it from end of the ongoing fiscal year as part of its
offering gold loans. strategy to fuel the next phase of growth, a
In mid-March, IIFL had said it would raise up senior company official said on Wednesday.
to ₹1,500 crore via a rights issue, which gives With JSW Group coming in as an investor and
preferential treatment to existing becoming a joint venture partner with China’s
shareholders, but had not finalized the SAIC, last month the company announced plans
amount. That plan came nine days after the to invest ₹5,000 crore and had set a target of
Reserve Bank of India ordered the company to selling one million units of passenger electric
stop sanctioning, disbursing and selling gold vehicles in India by 2030 when the total market
loans due to “material supervisory concerns” in is expected to be 10 million units annually.
its portfolio. MG Motor is targeting 520 sales and service
Since then, IIFL’s stock has sunk 30% touchpoints overall in 270 cities by the end of
through its closing price on Tuesday. The 2024-25. “There is a very clear roadmap...we
company will sell shares at ₹300 each, a 29% have put in place which we are calling as MG 2.0,
discount to the last close. the next phase of growth for MG Motor India,”
IIFL said shareholders will get one rights Satinder Singh Bajwa, the company’s chief
share for every nine shares they hold. The issue commercial officer told PTI. PTI
runs from 30 April to 14 May . REUTERS

A porter carries election material as he crosses a root bridge to reach a remote polling station, ahead of the first phase of Lok Sabha election, in
Shillong on Wednesday. REUTERS

Planetary warming will result in an income

Sweden to help India achieve Malik has been honoured for her fight against
alleged sexual harassment of female wrestlers. MINT
reduction of 19% globally by mid-century.

$38 tn a yr by 2049:
AP

2070 net-zero emission target Sakshi Malik in Time

magazine’s list
climate change cost
O
lympic medallist Indian wrestler

C
limate change will inflict losses to the Sakshi Malik has been listed among the
global economy worth an annual $38 Under Paris Agreement, countries can transfer carbon credit to help others meet goals 100 most influential people of 2024 by
trillion by 2049, as extreme weather Time magazine. Sakshi, India’s only female
ravages agricultural yields, harms labour Olympic medallist in wresting, has been
productivity and destroys infrastructure, Puja Das & Rituraj Baruah bon Border Adjustment Mechanism (CBAM). Vinnova is Sweden's innovation agency, which honoured for her relentless fight against
according to researchers at the Potsdam nEw dElhI Indian steel companies are major exporters to strengthens the country’s innovative capacity and alleged sexual harassment of female wrestlers
Institute for Climate Impact Research (PIK). Europe, and are looking at ways to reduce emis- contributes to sustainable growth. by former Wrestling Federation of India

S
Planetary warming will result in an income weden is working on a plan to help India sions, and comply with these rules. Both nations “We have four strategic country programmes. president Brij Bhushan Sharan Singh.
reduction of 19% globally by mid-century, implement Article 6 of the Paris Agree- may also revise their agreement in the field of space India is one of them. And we have focus on South- Sakshi along with two-time World
compared to a global economy without climate ment to meet its net-zero emissions tar- technology to establish centres of excellence, bol- east Asia as well as Germany. We have a specific, Championships bronze medallist Vinesh
change, according to research published in get before 2070 by collaborating in the stering collabora- targeted India pro- Phogat and Tokyo Olympics bronze winner
Nature on Wednesday. heavy industries sector, primarily steel tions in technical, gramme where we Bajrang Punia spearheaded the protest against
The paper uses data from more than 1,600 and cement, three Swedish officials told Mint. research & develop- Indian steel companies are major want to build coop- Singh at the Jantar Mantar in New Delhi,
regions worldwide over the past 40 years to Article 6 of the Paris agreement sets out how ment and talent. exporters to Europe, and are looking eration. The work in demanding his arrest for intimidating and
assess future impacts of a warmer planet on countries can pursue voluntary cooperation to “Swedish Energy India has been going allegedly sexually harassing female grapplers
economic growth. reach their climate targets, enabling international Agency and Vinnova at ways to reduce emissions, and on since 2009 and of the country. The protest, which began in
“Climate change will cause massive cooperation to tackle climate change and unlock are working to help comply with carbon tax rules the backbone of our January last year, became a year-long battle
economic damages within the next 25 years in financial support for developing countries. India reach its sus- work here is Swe- against Singh drawing support and attention
almost all countries,” Leonie Wenz, the Under the Article, countries can transfer carbon tainability targets. den-India innova- both in India and abroad. PTI
scientist at PIK who led the study, said in a credits earned from reducing greenhouse gas We have conducted over 30 workshops in several tions accelerator programme for small and mid-
statement. Climate damages keep rising, emissions to help one or more countries to meet sectors. So far, we have chosen four—heavy indus- sized businesses that have innovative solutions
averaging $500 billion a year—or 2% of the US their climate targets. tries (steel and cement), paper, pulp and automo- related to energy,” said Ludvig Lindstrom, senior
GDP—since 2016. Developing nations that
contributed less to global warming are bearing
The development comes at a time when Indian
manufacturing companies are gearing up to meet
tive,” Cecilia Oskarsson, trade and invest commis- business developer, international market develop-
sioner to India at Business Sweden, The Swedish ment, Swedish Energy Agency.
Power Grid to raise
the brunt of losses and damages. BLOOMBERG the strict rules under the European Union’s Car- Trade and Invest Council, said. [email protected]
₹12k cr via bonds

S
tate-owned Power Grid Corporation
10% jump in power of India board on Wednesday approved
ICICI Lombard’s Q4 profit rises 19% a proposal to raise up to ₹12,000 crore
consumption in Apr through the issuance of bonds in one or more
tranches in 2024-25.
year earlier, the company said in an “Committee of Directors for Bonds

I
ndia’s power consumption grew nearly 10% exchange filing. in their meeting held on today i.e. on 17 April
year-on-year to 70.66 billion units (BU) in the ICICI Lombard, which is backed by 2024 has approved the raising of Bonds as
first half of April, showing an improvement in ICICI Bank, also offers marine and crop Unsecured, Non-convertible, Non-cumulative,
economic activities and consumption patterns, insurance among others. Redeemable, Taxable Powergrid Bonds Issue(s)
according to power ministry data. India saw continued momentum in during financial year 2024-25 in one or more
According to the data, power consumption in vehicle sales in the fourth quarter after an tranches/series up to ₹12,000 crore,” a BSE
the country rose to 70.66 BU in 1-15 April from earlier boost during a festive period. filing said.
64.24 BU in the year-ago period. There was also a sharp growth in the Power Grid Corporation is the country’s
The peak power demand met or the highest number of health insurance policies sold in largest electric power transmission utility. The
supply in a day rose to about 218 gigawatt (GW) the country in fiscal 2024. central public sector undertaking under the
in the first half of April compared with 206GW Motor insurance, ICICI Lombard’s Offshoring industry in India accounts for 57% of ownership of the ministry of power operates
in the same period a year ago. biggest segment, contributed more than the global market, according to the report. MINT 86% of Inter-Regional networks. Power Grid
The highest supply in a day during the entire Profit after tax rose to ₹520 cr for the quarter 50% to the total premiums earned and Corporation is engaged in the bulk transmission
month of April last year was about 216GW.
The ministry has projected a peak power
ended 31 March from ₹437 cr a year ago. MINT grew around 7% in the fourth quarter,
while premiums from its fastest-growing
BPO drives India’s of power across states in the country. PTI

I workspace demand
demand of 260GW during the summer season CICI Lombard General Insurance health insurance unit rose 36%. The
(April to June) in view of a longer heat wave reported a nearly 19% rise in fourth- company’s net premiums earned during
duration. The peak power demand had touched quarter profit on Wednesday, helped by the quarter rose 17.2% to ₹4,368 crore,
EU probes TikTok
I
an all-time high of 243GW last September. an increase in premiums at its motor and while claims rose 23%. ICICI Lombard’s nternational companies outsourcing jobs to
The India Meteorological Department has
predicted above-normal maximum
health insurance units.
Profit after tax rose to ₹520 crore for the
income from investments rose 24.4% to
₹766 crore as markets hit several record
India have become a major driver of office
demand in the country with global capability over new Lite app
temperatures in most parts of the country quarter ended 31 March from ₹437 crore a highs during the March quarter. REUTERS centres and third-party IT service providers

T
during the summer this year. PTI contributing 46% to the total leasing of workspace he EU gave TikTok 24 hours to provide a
during 2023, according to Knight Frank. risk assessment on its new Lite app
Real estate consultant Knight Frank, in its latest launched in France and Spain over
report ‘Asia Pacific Horizon: Harnessing the concerns of its potential impact on children and
India’s population touches 1.44 billion: UNFPA report Potential of Offshoring’, noted that the offshoring
industry in India has grown significantly into a
users’ mental health, the European Commission
said on Wednesday.
leading global service provider, accounting for 57% The new rewards app TikTok Lite arrived in

I
ndia’s population is estimated to have reached about 1.44 billion, with 24% of the global offshoring market. the two countries this month and allows users
in the 0-14 age bracket, according to a report by the United Nations The consultant explained that the offshoring aged 18 and over to earn points that can be
Population Fund, or UNFPA. The UNFPA’s State of World Population market involves companies outsourcing exchanged for goods like vouchers or gift cards.
2024 report— titled Interwoven Lives, Threads of Hope: Ending Inequalities in business processes or services to external The commission said TikTok, owned by
Sexual and Reproductive Health and Rights—also noted that India’s providers located abroad, aiming to leverage China’s ByteDance, should have carried out the
population is estimated to double in 77 years. cost savings, specialized skills, and operational risk assessment before deploying the app and
Currently, India leads globally with an estimated population of 1.44 billion, efficiencies. now wants “more details”. The demand
followed by China at 1,425 million, according to the report. India’s population The offshoring market, also known as “concerns the potential impact of the new ‘Task
was recorded at 1,210 million during the last census, which was conducted in Business Process Outsourcing (BPO), and Reward Lite’ programme on the protection
2011. encompasses various models such as Global of minors, as well as on the mental health of
The report added that 17% of India’s population is within the 10-19 years Capability Centres (GCCs) and Global Business users, in particular in relation to the potential
age range, while the 10-24 years segment is estimated to constitute 26% of the Services (GBS). GCCs are internal units set up by stimulation of addictive behaviour”, it said.
population, and the 15-64 age group 68%. Additionally, 7% of India’s companies in offshore locations, while the GBS The commission said in a statement it also
population is aged 65 years and above, with men having a life expectancy of 71 involves centralized service delivery units wants to know what measures the platform has
years and women 74 years. PTI India’s population was recorded at 1,210 million in the last census. PTI providing a range of services globally. PTI put in place to mitigate the risks identified. AFP
10 ThursDAy, 18 April 2024
New Delhi LONG STORY LIVEMINT.COM

IN BJP’S FINAL FRONTIER,

A hIgh-sTAKes BATTle
Modi is growing in popularity in Tamil Nadu. Will it translate into votes for BJP?

Clockwise from left: Prime Minister Narendra Modi at a Chennai road

show on 9 April, flanked by Tamil Nadu BJP chief K. Annamalai to his left;
BJP supporters at the roadshow.

N.Madhavan drive to become a truly national party. this election,” said S. Subburayar, a former BJP attracting a large following is just a
mint WHERE THEY STOOD
[email protected] MLA from Cumbum, a constituency that SHORT social media phenomenon. “On the
CHennai, CoimBaTore, THeni The sTraNglehold borders Kerala in south-west Tamil Nadu. STORY BJP’s anti-Tamil perception impacted its ground, the fight continues to be between

T he last time a national party put up a vote share in 2019 AIADMK and DMK,” said T.K. Ramachan-

T
he sound of approaching helicop- strong fight in Tamil Nadu was in 1967 Charm offeNsive dran, head of AIADMK’s IT wing. He is also
WHaT Others

P
DMK
ters stirred the otherwise bored when the Indian National Congress lost rime Minister Modi made efforts to win the party’s Coimbatore candidate fighting
10,000-strong crowd, waiting for and DMK came to power in the state. Ever over the Tamil people after the party’s 17.69 Annamalai in this election.
BJP
hours, into excitement. Chants of since, Tamil Nadu has been in the strangle- poor show in 2019. In the 2019 general elections, in Makkal 33.52 When this writer met him, he was cam-
Needhi 3.66
‘Modi, Modi, Modi’ attained a hold of Dravidian parties, DMK and The Supreme Court’s ban on Jallikattu, Tamil Nadu, BJP, despite being in Maiam 3.67
VOTE paigning at Coimbatore constituency’s
alliance with AIADMK, managed SHARE
feverish pitch as three helicopters with Prime AIADMK. a traditional bull taming event, in 2014, trig- NTK 3.9 (in %) Senjerimalai area. “Look at the people
Minister Narendra Modi and his entourage Congress’ clout progressively weakened gered uproar and many people started to secure just 3.66% of the total 5.36 assembled here,” he said, driving around in
touched down at Then Tirupati, a village and over time, it began to piggyback on blaming BJP. The sport has now been legal- votes polled. The party has Pattali his campaign vehicle. “Do they look like
made progress since. Makkal Katchi 12.61 19.59
35km from Coimbatore in Tamil Nadu. The either of the Dravidian parties to bag a few ized through an amendment of law in 2017. they are part of social media?”
Congress
chant continued to reverberate across the parliamentary seats. Today, it is a junior Demonetization and the implementation of AIADMK He is confident of AIADMK doing well as
venue till Modi reached the dais. partner in the DMK-led alliance. Its vote goods and services tax (GST) worsened people are angry with DMK because of infla-
This was in sharp contrast to how he was share in the 2019 Lok Sabha elections (in people’s perception about the party. HoW Tamil Nadu factoids tion. He also maintained that people are still
greeted five years ago. Modi was viewed as alliance with DMK) was 13%. “It was a false narrative that DMK had angry with Modi. DMK, on the other hand,
Number of
anti-Tamil. While the Modi wave swept the “Till 1973, the anti-DMK votes went to
rest of India, he was greeted with black flags Congress. But after actor M.G. Ramachan-
propagated. It resonated with the people,
and we could not counter it,” said Vanathi
BJP is gaining support in the
Dravidian heartland especially
39 Constituencies has been attacking BJP for working against
the interest of the state. Fiscal devolution,
in the state; #gobackModi trended on dran broke away from DMK and floated
social media every time he visited. AIADMK, he started getting those votes. It
Srinivasan.
Post-2019 elections, Modi began focus-
among the young and first-time
voters. In fact, a national party
6.19 crore Total number
of voters release of flood relief, the Centre’s share in
many centrally sponsored schemes are all
has become a force to reckon
Poll results underlined this anger. The stayed with AIADMK,” said Gurumurthy.
Bharatiya Janata Party (BJP), despite being This may be changing now. “BJP has
ing more on Tamil Nadu. Mamallapuram,
a historic town about 50km from Chennai, with after almost five decades. 3.04 crore Male voters issues the party highlights.
“BJP will make no impact because it does
in alliance with the All India Anna Dravida risen to a position where it will now get the was chosen as the venue for his informal not understand Tamil Nadu. They have not
Munnetra Kazhagam (AIADMK), managed anti-DMK votes,” he added. summit with Chinese President Xi Jinping 3.15 crore Female voters
put any effort to truly understand us,” said
to secure just 3.66% of the total votes polled BJP rose partly by accident and partly on in 2019. BuT 1.08 crore Young voters (aged T.R.B. Rajaa, DMK leader and the state’s
in the 2019 Lok Sabha elections. account of conscious efforts it made. The “He reiterated his love for the Tamil lan- between 20 & 29) industry minister.
Over the next few accident part first. In the guage, which he acknowledged as the old- The Bharatiya Janata Party
years, Modi worked hard last two elections—the est language in the world. He frequently has a long way to go. Political 0.09 crore First time
voters The ouTCome
at correcting the anti- In the 2019 election, Bharatiya 2019 Lok Sabha elections pundits are not clear if the
Tamil perception. More
on that later.
Janata Party contested in and 2021 state assembly
polls—BJP aligned with
referred to Tamil literary works both in
India and abroad, including in the United
Nations,” said Srinivasan.
groundswell for the party in
Tamil Nadu is large enough to
67.4 Voting percentage
in 2019 T amil Nadu has not witnessed such an
electoral contest before. A strong
three-cornered contest is new for the state.
Source: Election Commission of India
Today, BJP is gaining just five seats as part of a AIADMK. “This time, too, Modi also conducted Kashi Tamil San- secure some seats. Added to this mix is Naam Thamilar Katchi,
SARVESH KUMAR SHARMA/MINT
support in the Dravidian large alliance. The party will we were keen on contin- gamam, a symposium on Tamil language a growing party targeting the youth. The
heartland, especially uing the alliance. But, the and culture, in his constituency and Sau- party can chip away votes from the estab-
among the young and be contesting in 23 seats AIADMK leadership rashtra Tamil Sangamam in Gujarat, his emerged stronger. People across the world sure whether to vote for DMK. “Power cost lished ones. Nonetheless, the electoral
first-time voters. In fact, chose to part ways,” said home state. In its latest manifesto, BJP has respect us more and the benefits that the has gone up and so has the price of milk,” he arithmetic, according to leading psepholo-
in the electoral battle- this time. K.T. Raghavan, former promised to create ‘Thiruvalluvar Cultural government offers reach us directly,” he said. BJP has been seeking support based gists and political observers like Gurumur-
fields of Tamil Nadu, a general secretary of BJP Centers’ across the world to promote Tamil explained. on its track record in the last 10 years— thy, favours DMK and it should ideally win
national party has become a force to reckon in Tamil Nadu. The relationship between language. In addition, he got the sengol, a K. Saravanan, an ambulance driver at clean governance and use of technology for most of the seats.
with after almost five decades. the two parties soured after the leader of sceptre that symbolizes transfer of power Senjerimalai, a town in Coimbatore parlia- direct benefit transfer. “Ten major cen- “The INDIA Alliance will sweep Tamil
This, however, does not mean that it will BJP’s state unit, K. Annamalai, attacked two from the British to India, installed in the mentary constituency, agreed with trally sponsored schemes—such as Ayush- Nadu. The people of Tamil Nadu are smart,
be a cake walk for BJP. The state, perhaps Dravidian stalwarts—C.N. Annadurai and new parliament building. It was originally Rajesh. In his area too, most youngsters man Bharat, PM Awaz Yojana, PM Kisan educated and politically wise to reject divi-
for the first time, is seeing a strong three- J. Jayalalithaa. given to Jawaharlal Nehru by religious have shifted loyalties from DMK and and Mudra Loans—have 1 million benefici- sive politics,” said Rajaa.
cornered contest. The Dravida Munnetra Going alone has both advantages and monks from Tamil Nadu at the time of AIADMK to BJP. aries in each parliamentary constituency in INDIA is short for Indian National Devel-
Kazhagam (DMK), the ruling party in Tamil disadvantages. “The advantage is that the India’s independence. the state. We are targeting them individu- opmental Inclusive Alliance, a multi-party
Nadu, has put up a strong alliance with Con- party grows,” said Vanathi Srinivasan, “This apart, he ensured that all the min- No walk iN The park ally,” said BJP’s Raghavan. alliance led by the Indian National Con-
gress, the Left and other regional parties, to BJP’s member of legislative assembly
ensure consolidation of anti-BJP votes. At (MLA) from Coimbatore South. In the 2019
the same time, anti-DMK votes will be split election, the party contested in just five
isters visited the state regularly. He also
spoke something on Tamil Nadu in every
Mann Ki Baat radio address,” Srinivasan
N onetheless, BJP faces an uphill task.
As mentioned earlier, DMK has
formed a strong alliance with Congress, the
Making India strong and respectable
across the world is another talking point
which seems to have resonated well with
gress. AIADMK has taken a significant risk
by deciding to go alone. It will be hoping to
retain much of its vote share, but a sharp fall
across two alliances, one led by BJP and seats as part of a large alliance. “The Lotus added. Communist parties and a few other the young. The party is also warning that a will weaken the party significantly.
another by AIADMK. symbol will be contesting in 23 seats this Between February and now, Modi has regional players to consolidate the anti-BJP drug menace has spread across Tamil As for BJP, Annamalai is confident of a
“If BJP’s vote share crosses a critical time and in all these constituencies, the made eight visits to the state. All these votes. At the same time, the anti-DMK Nadu. Meanwhile, it has portrayed DMK strong showing. “I have been on the ground.
mass, it will establish itself as a party that party will grow,” she added. efforts may have worked. votes are split in many ways. This electoral and Congress as dynastic parties that put I can feel the change. People want BJP in
has come to stay and dominate the politics Also, contesting more seats helps to N. Renguraj, a villager from Then Tirup- arithmetic will help DMK even when there the family’s interest ahead of the nation. Tamil Nadu,” he told Mint during his cam-
in Tamil Nadu,” said S. Gurumurthy, politi- develop second-line leadership and ati, who had come to hear Modi, always is some disenchantment against its per- “In BJP, anyone can become a leader and paign in Coimbatore.
cal commentator and editor of Thuglak, a improve organizational strength. “Going voted for DMK. He said that many people in formance in the state. grow. That is not possible in DMK. Most Going forward, a sharp increase in its
Tamil political magazine. alone is the best long-term strategy for the his village now support Modi and BJP. M. Ayyanar, a native of Andipatti, an candidates fielded by that party in this elec- vote share will make BJP a strong force in
Political pundits are not clear if the party but will cause short-term pain,” she “But, I haven’t decided who to vote for yet,” erstwhile AIADMK stronghold in southern tion are relatives of their leaders,” said Srin- state politics, irrespective of whether it
groundswell for BJP in Tamil Nadu is large said. he quickly clarified. Tamil Nadu, has been a DMK supporter for ivasan. K. Annamalai, a BJP state leader, has manages to win a few seats. “It will establish
enough to secure one or more seats in the What is that short-term pain? The party A. Rajesh, a native of Kothagiri, a town in a long time. He drives an autorickshaw. been attracting young voters in a big way, the fact that DMK and the Dravidian parties
coming general elections—the state will vote may not make immediate gains in terms of the Nilgiris, said that many young people in When this writer met him, he was selling she added. Annamalai is an engineer and a are losing their grip over the Tamil elector-
on 19 April. If the party does manage to do so, winning seats. “An AIADMK-BJP alliance his area have shifted their support to BJP. cucumbers grown in his field for some former police officer. ate,” said Gurumurthy.
it would have crossed the final frontier in its would have won at least 15 seats or more in “The reason is that under Modi, India has additional income. This time, Ayyanar isn’t AIADMK, on the other hand, says that There’s a lot at stake.
LIVEMINT.COM MINT MONEY ThuRsDAy, 18 ApRil 2024
New Delhi 11

How HODLers are managing MINT 20* MUTUAL FUND

SCHEMES TO INVEST IN
their cryptocurrency assets 20
We have hand-picked 20 mutual funds for your portfolio that have jumped
through hoops of good returns, low risk, good portfolio hygiene and our own
qualitative research. We have restricted the choice universe to 10 categories out
of the total 37 and given you at least two options to pick from each.

3-years return 5-years return Corpus

EQUITY (%) (%) (₹ cr)
LARGE-CAP
Crypto HODLers are holding on despite market volatility, uncertain regulations, high taxes UTI Nifty Index Fund - Growth 16.07 14.65 16,199
HDFC Index Fund - Nifty 50 Plan 15.96 14.46 12,764
Anilkumar Poste & Shipra Singh Category average 15.29 14.25
[email protected]
Meet the crypto HODLers EQUITY FLEXICAP
Canara Robeco Flexi Cap 17.05 16.73 12,072

T
he big money is not in the HODLers believe in holding crypto for the long term. Despite market ups and Parag Parikh Flexi Cap 21.76 22.81 60,559
buying and the selling but in
the waiting’’. All long-term downs, they stay committed and ride out market swings. Category average 18.05 16.66
stock market investors will EQUITY SMALL AND MIDCAP
relate to this famous quote
Axis Midcap 19.73 20.45 25,537
by Charlie Munger too well. But, this
investing adage is not limited to just SBI Small Cap 24.64 24.02 25,435
investors in the securities markets. Category average Midcap 24.76 21.51
HODLers, or holders of cryptocurren- Category average Smallcap 27.97 23.76
cies, too swear by this mantra, standing
out from the crowd of fly-by-night EQUITY (TAXSAVER)
investors who buy and sell crypto for a Canara Robeco Equity Tax Saver 17.59 18.19 7,510
quick buck. HODLer refers to an indi- Vishal Rajesh Soni, 25 Shramana Chatterjee, 27 Anuj Chaudhary, 30
Mirae Asset Tax Saver 18.36 18.67 21,476
vidual who holds their cryptocurren- Fixed-income dealer, Mumbai Marketing professional, Delhi Senior crypto analyst, Delhi
Category average 19.96 17.26
cies for the long term, despite the mar- HODLing since: 2019 HODLing since: 2021 HODLing since: 2020
ket volatility. HYBRID
It is not just volatility that HODLers Crypto portfolio growth: 5x Crypto portfolio growth: 44% Crypto portfolio growth: 3x
BALANCED ADVANTAGE
have to watch out for, they also have to % of portfolio in crypto: 30% % of portfolio in crypto: 33% % of portfolio in crypto: 5% Edelweiss Balanced Advantage 13.37 14.17 10,738
bear up against regulatory uncertain- Rest in equity, gold & real estate Rest in stocks and MFs Rest in real estate ICICI Prudential Balanced Advantage 13.43 12.58 56,175
ties, heavy taxation, possible bans and
Will you increase the exposure? Will you increase the exposure? Will you increase the exposure? Category average 12.80 11.91
the general negative view on the digital
currencies. So, what keeps them going? Yes Yes Yes
For one, it is their belief in the potential End-goal with crypto End-goal with crypto End-goal with crypto
ARBITRAGE
of these virtual currencies. Kotak Equity Arbitrage 5.76 5.43 40,051
Remain indefinitely till need to Wealth creation. To achieve financial freedom and
Mumbai-based Vishal Rajesh Soni, a withdraw doesn't arise. start blockchain startup. Tata Arbitrage 5.40 5.37 10,755
fixed income dealer, bought his first I want to build a Category average 5.41 5.13
cryptocurrency in 2018, when he was I'm not bothered with strong wealth portfolio I’ve limited exposure to
only 19 years old. “I like exploring new drawdowns. If bitcoin Returns since Date of Corpus
investment opportunities. In 2018,
with crypto. I am apprised cryptos due to uncertain OUT OF THE BOX launch launch (₹ cr)
loses 90% value, I'll see it as an of the vulnerabilities and regulation and heavy tax. I’ll
when bitcoin was suddenly in the news, BHARAT Bond ETF - April 2031 5.29 23-Jul-20 13,485
opportunity to invest more. hence, not putting increase allocation as there is
I started learning how cryptocurren- Motilal Oswal S&P 500 Index Fund 17.47 28-Apr-20 3,290
cies work. When I discovered the con- everything in single asset. more clarity. Returns as on 15 April 2024; Corpus data as of March 2024; Growth option in regular plans has been used
cept of decentralized currency and the BTC 5 year return chart Absolute returns for 'Out of box', CAGR for the rest. For detailed methodology refer to:
technology used to build these curren- Taxation on digital assets in India Keep a smart, flexible and minimalist MF portfolio
80,000 Tax applicable https://www.livemint.com/money/personal-finance/keep-a-smart-flexible-and-minimalist-mf-portfolio-11638378827521.html
cies, I realized there are several benefits Transaction
Download mint app for latest in Business News - https://bit.ly/32XEfFE
to it and I started investing,” he said. 71,800.30
Crypto to INR/fiat Selling: 30% tax is payable on selling any crypto *Debt funds can be viewed in the full table online
In Delhi, Anuj Chaudhary, got a 60,000 asset with a profit margin. Data and analysis by CRISIL Research Compiled by Neil Borate
chance to understand virtual digital Buying: No tax when buying crypto assets with INR.
assets (VDAs) and its working in 2020 Crypto to crypto Selling: 30% tax in trading crypto.
40,000
while working as a market reporter Exchanging: 30% tax on coin swaps, if there are gains.
with an international news organiza-
tion. He got hooked to it and decided to
switch careers to work with crypto
20,000
3,437.20
Crypto gifts
HODLing
30% crypto tax for gifts >50k
No tax
Target net savings of 35% of pay
exchanges and crypto-based compa-
nies in the space. “I want to be a part of
the growth of this industry. I bought my
0
1 Jan 2019

Source: Coinmarketcap
1 Apr 2024
Losses from digital assets cannot be set off against any other income. 1%
TDS, as per Section 206AB, is applicable for any orders executed on or
after July 1, 2022. No tax on wallet transfers.
Source: CoinDCX
for a corpus of ₹5 cr by age of 60
first cryptocurrency in 2020 and ISTOCKPHOTO
despite market crashes and negative PRANAY BHARDWAJ/MINT Vivek Banka cap index fund, one small-cap
news, I’ve remained steadfast in my rencies and she gradually recovered classes as well as she is cognizant of the months as he is confident about the index and one small-cap active
HODLing strategy,” said Chaudhary, her losses when the market started volatile nature of this asset class. “I am Indian authorities warming up to the I am 38 years old, make fund. For the debt component,
who works as a crypto analyst in an looking up around late 2021. Her interested in building a strong wealth space soon. “I will liquidate a part of my ₹1.35 lakh a month, and you can look at first exhausting
open-source blockchain platform. crypto holdings have grown about 44% portfolio with crypto which seems real estate portfolio and divert the capi- want to accumulate ₹5 all small savings schemes such
Bitcoin, the biggest cryptocurrency till date. “A lot of believers have stuck quite achievable given the market tra- tal to cryptos. My long-term aspirations crore for my retirement. as PPF. The rest can be allo-
by market cap, is rallying again. Its around despite the FUD (fear, uncer- jectory. However, I am also apprised of include achieving financial freedom Where and how should I cated towards good quality cor-
price has increased nearly 112% in the tainty, doubt) and it has definitely the vulnerabilities and other factors and potentially starting my blockchain- invest to achieve this objec- porate bonds, fixed deposits,
last one year. This rally followed a year helped them have a better perspective that come with any investment asset. based start-up and I believe my crypto tive? and debt funds.
of stagnant prices hovering around of virtual digital assets and their So, I follow the simple rule of not put- investments can help achieve these —Name withheld on request Finally, please note a few
$20,000-30,000 through 2022 and future,” said 27-year-old Chatterjee. ting all my wealth in one single asset, be goals,” said Chaudhary. things as retirement planning
the first three quarters of 2023. From Some HODLers even see drawdowns it crypto or otherwise,” she said. Taxation & regulatory hurdles You are 38, and if you plan to is critical in countries such as
its peak of $61,000 in October 2021, as an opportunity to invest more, as is Soni said he does not have any spe- In Budget 2022, the government retire at the age of 60 with a India that do not have social
bitcoin price fell by nearly 75% over the the case with Soni. “For me, draw- cific plans for his crypto portfolio yet. imposed a steep 30% tax on capital corpus of ₹5 crore, you should security benefits. Please do not
next one year. Bitcoin touched an all- downs are more like an He wants to remain gains earned from cryptocurrencies, target a net savings rate of 35%. dip into this corpus for any rea-
time high in mid-March to trade at opportunity and I allocate HODLers invested and let long-term irrespective of the holding period (see It means, of the ₹16.2 lakh you ASK MINT son, especially to meet discre-
$73,000. additional money to my approach cryptos compounding do its graphic). This shook the crypto indus- are earning every year, you m INVESTMENTS tionary expenses. Also, do not
However, HODLers remain unfazed crypto portfolio apart with a mix of magic. His crypto portfolio try, even forced some major exchanges should save at least ₹6 lakh. If get worried by market down
by the drastic swings in the prices of from the systematic strategic planning has grown 5X since he to move base to tax-friendly countries your annual income grows at moves or be overexcited by up
cryptocurrencies. investments that I am
and belief in long- started investing. like Dubai. “This tax treatment dis- 5% you should be able to reach plans to extrapolate the high moves and keep investing.
Shramana Chatterjee, a 27-year-old making monthly. Even if Despite their belief in courages the long-term investors who the targeted net savings of ₹5 returns. However, over long Do review and start reducing
marketing professional, entered the bitcoin loses 90% value, I term potential of the VDAs, some HODLers are crucial for a healthy crypto ecosys- crore by 60, while factoring in periods, return revert to mean equity allocations around one
cryptocurrency market during the will invest additional capi- digital assets want to tread cautiously tem. Long-term investors can help to an inflation of 7%. For this to numbers and hence it’s always to three years before the retire-
2021 bull run. So, the drawdown that tal in it,” he said. Soni has given there are no clear stabilize prices and attract institutional happen, besides income good to be conservative. ment age so as to ensure that
followed soon after did dampen her gradually increased expo- regulations around these investors who seek a more predictable growth, you have to ensure that Should the numbers truly you don’t get exposed to radical
spirits after she saw her portfolio in the sure of his investment portfolio in cryp- in India and the central bank has market,” said a senior official working your investments grow at 10% a come out better than expected, fluctuations.
red, but she decided against panic sell- tos from 2-3% to 30%, while the rest is repeatedly mulled banning them. at a crypto exchange in India. year post fee and taxes. one can revisit later and have an As the goal is long, a high
ing. “After the market significantly in equities and gold. Chaudhary has limited his exposure to Given the tax implications, most Considering that this is a early retirement. But since equity exposure is helpful.
dropped post 2021’s peak, I started HODLers approach their crypto cryptos to 5% of his overall portfolio so HODLers have decided to not with- long-term goal, you should be retirement post 60 is difficult, Vivek Banka is co-founder,
reading up more about the assets I had portfolio allocation with a mix of strate- far. “It’s only because of the regulatory draw their holdings unless they need aggressive and need to invest at and could be taxing, it’s impor- GoalTeller.
invested in rather than having a cur- gic planning and belief in the long- uncertainty and the strict tax rules the capital. least 80% into equities and the tant that you err on the side of
sory knowledge about them. I under- term potential of digital assets based on introduced recently. Mint does not recommend investing rest into debt. This should help caution. Do you have a personal
stood the ‘sell the news’ phenomenon, their set of goals and unique perspec- Chaudhary pointed out that cryptos in cryptocurrency, which is neither you achieve the 10% annualized In terms of investment finance query? Send in your
price manipulations and other factors tives. has surpassed his traditional invest- backed by an underlying asset, nor is its return rate. Over the past few schemes, you should look at a queries at
that could affect my assets,” she said. For Shramana, her crypto portfolio is ment avenues by a substantial margin. legal status clear in India. years, equities have generated combination of one active flexi- [email protected]
and get them answered by
About 33% of Chatterjee’s overall for long-term wealth creation. But, she He intends to increase his allocation to (For an extended version of this story, very high returns, and hence cap, one Nifty Index Fund, one
industry experts.
investment portfolio is in cryptocur- has carefully diversified in other asset cryptos to 10% over the next few go to livemint.com) there is a tendency for financial mid-cap active fund, one mid-

KYC AND THE INVESTMENT JOURNEY: IT IS NOW TIME TO INTRODUCE KRACENTRAL

ISTOCKPHOTO
by using rent agreement as your address proof, your KYC status MFs, but with a registered flag you can invest only in those MFs
changes from “valid” to “on hold”, and you cannot transact in where you already have a folio. This will force investors to make
POWER mutual funds. No fresh investment is allowed, ongoing SIP will
stop, and most important, redemptions will be blocked, too.
fresh investments in the same AMCs till the physical process to
get the validated flag is completed. How is this fair to new and
POINT This is where the MF ecosystem is facing challenges on how to small AMCs? How is this a level playing field?
communicate to affected investors that they have lost access to Sebi’s KYC master circular states: “The usage of Aadhaar shall
AMOL JOSHI their hard- earned money invested in MFs, although temporarily, be optional and purely on voluntary basis by the client.” How-
till they update their KYC. ever, only Aadhaar can get you KYC validated status. Not really
Respond to this column at To be sure, asset management companies (AMCs) and registrar optional or voluntary.
[email protected] and transfer agents (RTAs) provide the facility to modify KYC on What is the way forward? Under the nomination rules, the reg-
their websites. But social media is flooded with investor testimo- ulator—after receiving feedback from various stakeholders—

T
he Association of Mutual Funds in India (Amfi) and Boston nials attesting that such online options do not work. The prob- extended compliance timeline a few times. In fact there is now
Consulting Group (BCG) published a report in August 2019 lems faced range from KRA (KYC registration agency) database a consultation paper that discusses making of nominations
titled Unlocking the ₹100 Trillion Opportunity. The mutual error; KYC with different KRA; Aadhaar not legible for an online tors affected, make rules uniform for participants, standardize optional for the investors. This is in contrast with the previous
fund (MF) industry had under ₹25 trillion of assets under man- Aadhaar KYC; hard copy not received for online Aadhaar KYC; remediation guidelines, stress test existing infrastructure, and position, where submission of nomination details or declaration
agement (AUM) in July 2019. It has more than doubled to ₹55 tril- and online KYC modification completed but no change in KYC provide an online option for investors to comply. for opting out was made mandatory.
lion as of March 2024 and mutual funds have millions of new status. Some investors have also reported failure on account of Make no mistake, this is not only for MF investors. KYC is man- Similarly, KYC for all on-hold and rejected cases should be
investors now. The journey was made possible by a strong regula- upper case and lower case mismatch in name of their state. datory to access all capital market products. Investors have taken reinstated to their 31 March 2024 status, and new KYC rules
tory framework, which safeguards the interests of investors. That there can be half a dozen or more KYC status flags does to social media to vent their frustration about not being able to should be implemented at a later date once KRAs are ready with
The mutual funds industry has seen many regulatory changes, not help. Imagine a do-it-yourself investor with ₹2,000 monthly exit their stocks and futures and options positions owing to their a common online solution for all investors in one URL
such as updated scheme categorization, segregated portfolios systematic investment plan (SIP) having to make sense of KYC trading account being blocked. There was a time when the MF industry did not have a single
norms, risk-o-meter, discontinuation of pool accounts, and the flags with terms such as validated, verified, registered, on hold, In all this, non-resident Indians (NRIs) have been truly left high investor services hub. Now we have MFCentral, the unified
requirement of nomination/opting out in MF folios. One such under process, rejected, and Sebi hold. KRAs also have a matrix and dry. There is no option for NRIs to modify their KYC online online platform for all mutual fund related needs, which is oper-
recent change was around KYC (know your client) norms where that helps with KYC status remediation, but it is not comprehen- with the new set of OVDs. NRIs wishing to modify their KYC to ated by both RTAs of the MF ecosystem. Origins of MFCentral
MF investor needs to be KYC-compliant by submitting one OVD sive. It makes you doubt the preparedness of the KRA infrastruc- comply with new KYC norms actually have to travel across coun- can be traced back to a Sebi circular of 26 July 2021 which saw the
(officially valid document) for PoI and PoA (proof of identity and ture to manage the changed KYC environment. It should be a tries and suffer hardship to get their KYC in order physically. need for an RTA inter-operable platform.
proof of address), respectively. This KYC rule is applicable retro- standard practice to gauge system preparedness before any major KYC status flags such as validated and registered have unin- Just like MFCentral, it is time for a KRACentral.
spectively, effectively meaning that if you were KYC-compliant change is rolled out. It should consider number of PANs or inves- tended consequences. With a validated flag you can invest across Amol Joshi is the founder of PlanRupee Investment Services.
12 ThursDAy, 18 April 2024
New Delhi VIEWS LIVEMINT.COM

OUR VIEW GUEST VIEW

MINT

The abundance algorithm: Tech

is re-wiring economic prospects
Plenty for all sounded like a utopian dream till new digital tools emerged to reveal their wonders

further? Can we have universal access Lanka, are already on board.

to essential goods and services, espe- Back to India. Commercial inclusion
cially in developing countries? How do is as important as financial inclusion for
we genuinely create abundance for all? true abundance to become a reality. We
BCG studies state that a 10% increase remain a country of fragmented micro-
in digital payments adoption could add economies with high transaction costs.
$1.5 trillion to global GDP by 2025. Only 5-6% of about 100 million MSMEs
Reducing the gender gap in the work- sell their wares on digital platforms.
force could add upwards of $28 trillion Ride-hailing serves account for less
SAMIRAN GHOSH to global GDP by 2025, says McKinsey. than 6 million of 100 million-plus daily
is a technology advisor and podcast host. According to the World Bank, achieving public trips. Despite modern technol-
universal broadband access by 2030 ogy, 87% of retail is still unorganized
could add $2 trillion to the GDP of and digital inclusion is just 7% of the
developing countries. The list goes on. market. This is so for most of the world.

Birla’s target spotlights

So, abundance for all is an excellent Of late, centralized platforms and
old-fashioned selfish idea with mone- online marketplaces have taken us away

S
tephen Covey propounded the tary benefits. But how to execute it? One from the promise of equal-opportunity
abundance mindset, the basic prerequisite is scale. Change needs to commerce. Timothy May, in his Crypto
proposition of which is that the happen at scale and fast. No room for Anarchist Manifesto (which may have

the classic ‘rule of three’ world has more than enough resources
to satisfy one’s needs. Today’s average
person enjoys daily luxuries that the
royalty of yore could not imagine:
incremental gains.
As per the Bank for International Set-
tlements, India achieved 80% financial
inclusion in 7 years; it would have taken
inspired Bitcoin), talks about total free-
dom to trade as essential to breaking
away from centralized control.
So, how do we decentralize e-com-
instant communication, broadcast TV, 47 years by traditional means. India’s merce? Open operating models, per-
global travel and antibiotics. tele-density went from 37% to 93% in 8 haps? Data suggests that more inclusive
The group’s aim to be among the top three in major financial-service markets evokes a ‘rule Abundance has long been part of the years, thanks to eKYC, while the cost of business models aimed at low-income
human discourse. Think of the Garden data plummeted to 0.17 cents per giga- populations could generate $1.3 trillion
of three’ that top leaders of businesses in competitive markets find they must contend with of Eden, Field of Reeds in Egyptian byte. We now have a track record and in market opportunities by 2030.
afterlife, or Sukhavati, the Land of Bliss have become an exponent of the digital The Beckn Protocol (championed by
in Buddhism. An ideal world has been a public infrastructure (DPI) movement. Nandan Nilekani, Pramod Varma and
common theme in many ancient cul- What about other emerging markets? Sujith Nair) could answer these woes. It

T
he ‘rule of three’ looks ripe for a decades since those exercises began, the rule tures. More recently, Adam Smith and Modular Open Source Identity Platform is a set of open specifications that lets
return to management discourse. At has aged well. It remains in wide use as a test for David Hume discussed economic abun- (MOSIP), a not-for-profit founded in buyers and sellers conduct transactions
dance through division of labour and 2018, helps governments conceive, without intermediaries. The results are
the launch on Tuesday of an online whether to double down on market participa- free trade. Peter Diamandis and Steven develop and implement ID systems. It Beckn powers the Open Network for
platform designed to “acquire tion or withdraw. An in-depth take on the idea Kotler explored technology-enabled has covered over 100 million individu- Digital Commerce, which processes
customers digitally at scale” that is was proposed by Jagdish Sheth and Rajendra abundance in Abundance: The Future Is als in 17 countries. Its cost of running a 200,000 orders per day within a year of
expected to become a “full-stack Sisodia in their 2002 book, The Rule of Three: Better Than You Think. pilot? Zero. Ushahidi, another open- launch, and Namma Yatri in Bengaluru
financial services provider,” Aditya Birla Group Surviving and Thriving in Competitive Markets. Does that mean we have no scarcity source platform, has empowered 25 (125,000 daily trips), with numerous
anymore? In truth, abundance and scar- million plus users to gather, analyse, other implementations in progress.
Chairman Kumar Mangalam Birla outlined the They took the rule as a guiding force for the city coexist, and economic paradoxes respond and act swiftly on data. 50-in-5 Internationally, governments in Brazil
conglomerate’s ambitions in this space. Armed formulation of a business strategy in the face of support this. One notable example is is another campaign to help at least 50 (Belem), Gambia (OGa) and cities
with its new app, Aditya Birla Capital Limited dynamics observed in well-contested markets. Adam Smith’s ‘diamond-water paradox’ countries design, implement and scale like Amsterdam, Zurich and Paris
(ABCL) is aiming to add 30 million customers in In their analysis, success demands a competi- or the ‘paradox of value.’ It highlights at least one DPI component in a safe, (interoperable urban mobility) are
three years to its current user base of 35 million, tive edge that’s acquired best by focusing the oddness of high value placed on dia- inclusive and interoperable manner by leveraging Beckn.
monds that have little practical use and the end of 2028. It hopes to radically Free and fair abundance by design
he reportedly said, adding that the Group on three key aspects of a business: customer the relatively low value placed on water, shorten implementation journeys by now seems possible, thanks to the D3
intends to rank among the top three players in segments, strategic relationships and core which is essential for life. The scarcity sharing learnings, best practices and of open-source tech (decentralized,
the fields of lending, asset management and life capabilities. Making a difference needs mastery of diamonds drives up their perceived built-for-purpose open technologies democratic networks and DPI) and
insurance, given their high growth potential of each. First, they recommend identifying value, while the abundance of water that can reduce costs and maximize the thinking at scale.
over the next three-to-five years. This aim three distinct customer segments to target, so explains its lower price. impact for all; 13 countries, including As Harry Bosch says, “Everybody
So, can utopian abundance extend Bangladesh, Norway, Senegal and Sri counts, or nobody counts.”
needed no elaboration. In general, the number that offerings can be made on the basis of a duly
‘three’ is special in many business contexts. Not close grasp of their differing but unique needs
just as a rule of memory—the top three brands and preferences. Second, they advocate forging
are typically most cited in any market with high strategic relationships with suppliers, distribu-
rivalry—but also as an organizational principle. tors and other stakeholders that could play a
As management scholars pointed out after vital role in a company’s success. Third, they
India opened itself up to greater competition in argue that it’s important for a company to www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Friday, April 18, 2014 Vol.8 No.92 `4.00 in Delhi­NCR/`5.00 outside Delhi­NCR 24 PAGES

1991, competitive markets were often seen con- develop and leverage three core capabilities
John Sculley on
CNBC-TV18:
low­cost smartphones >11
CORPORATE: Piramal agrees to buy
20% stake in Shriram Capital >3

verging towards a three-player structure. In that differentiate them from rivals and generate
SCIENCE: In a cloning first, scientists
create stem cells from adults >3
CONTENT PARTNER
AUTO: Maruti advances mini­truck
launch by two years to Jan 2015 >8

many industries, only three companies tended value. Ultimately, this is the saw that needs to
SENSEX 22,628.84 Æ 351.61 NIFTY 6,779.40 Æ 104.10 DOLLAR `60.29 æ `0.10 EURO `83.56 Æ `0.03 GOLD `29,525 Æ `189 OIL $109.81 Æ $0.21

SC RULING
STATES SEE HIGHER Wipro’s weak QUICK EDIT
India’s
CAG can audit TURNOUTS THAN IN 2009 guidance raises

to capture the bulk of sales and profits, leaving be sharpened to sustain the market advantage
concerns about
There are only two ways
The fifth phase of polling in the 2014 Lok Sabha election saw a higher turnout in
constituencies in 10 out of 12 states compared with the percentage of voters who
cast their ballots in 2009. With 121 constituencies going to the polls on Thursday,
bling kings
turnaround
accounts of pvt
voters in 232 out of 543 Lok Sabha seats have now exercised their franchise.

State (number of constituencies) B Y A NIRBAN S EN

T here was much merri-
ment among connois-
seurs of Indian pop culture
[email protected] when the erstwhile disco

telecom firms
Bihar (7) 2009 39.30% ························· king Bappi Lahiri revealed
2014 56%

little for the rest. With market forces at play and acquired. Broadly speaking, this advice has also
BANGALORE
in an affidavit that he

to establish competitive
Chhattisgarh (3) 57.60%
63.44%
I ndia’s third-largest software
services exporter Wipro Ltd
on Thursday forecast weak
owned just 754gm of gold
jewellery. The Bharatiya Ja-
nata Party candidate has
45.15% revenue growth in the June been as much known for
Order applies to telcos CAG has already conducted Jammu and Kashmir (1)
69.08%
quarter, a period in which cli- his love for bling as he has
that share revenue with or is in the process of conduct-
ing audits on some private
ents in the US and Europe typi-
cally spend more on informa-
for his kitschy songs.
The financial statements
58%
government for use of companies that contribute to Jharkhand (6)
62% tion technology (IT), raising that candidates have filed
spectrum, raises

barriers dropping for mergers and acquisitions, aged well over the past two decades.
the exchequer. concerns that its return to with the Election Commis-
CAG is looking at auditing 58.88% double-digit growth will take sion reveal that the average
investor concerns power companies, having al-
Karnataka (28)
68% longer than foreseen. Indian politician prefers to

advantage: do things
ready inspected the books of Wipro forecast revenue of hold his wealth in land,
B Y S HAUVIK G HOSH some privatized airports. 46.21% between $1.715 billion and apartments and gold rather
Madhya Pradesh (10)
[email protected] GMR Infrastructure Ltd-run 54.41% $1.755 billion in April-June—a than in financial assets.
························· Delhi International Airport range between marginally neg- The Indian citizen is of-
NEW DELHI
Pvt. Ltd and GVK Power and 54% ative and 2% sequential ten exposed to pious lec-
Maharashtra* (19)

T he Supreme Court ruled Infrastructure Ltd-run Mum- 62% growth. tures from our economic

this was expected to happen in several sectors. As far as competitive intensity goes, financial
on Thursday that the bai International Airport Ltd IT industry analysts had, on administrators about how
Comptroller and Audi- have been audited by CAG. 77% average, been expecting Wipro our preference for physical
Manipur (1)
tor General (CAG) of India has Both airports function under 74% to forecast sequential revenue rather than financial sav-
the right to audit the receipts the so-called public-private growth of at least 2-4% for the ings is bad for the econo-
66.28%
of telecom operators that share partnership model in which Odisha (11) quarter. Bangalore-based my. It is in this context that
70%

better than others or do

revenue with the government the government-owned Air- Wipro is the only one among the way Indian politicians
for use of spectrum. ports Authority of India holds 48.09% the top five software services hold wealth is interesting.
Scrutiny by the government a 26% stake, having leased out Rajasthan (20) firms that provides quarterly It is highly likely that
auditor is necessary to ensure the two airports for a period of 63.25% revenue growth forecasts. most politicians understate

In response to this ‘rule of three,’ business services are set for an online pivot that’s likely
that the exchequer gets a legit- 30 years, extendable by anoth- 55.09% their wealth in affidavits.
imate share of the revenue er 30 years, on a revenue-shar- Uttar Pradesh (11) TURN TO PAGE 2® But the distribution be-
generated from public re- ing model.
62.52% tween physical and finan-
sources, justices K.S. Rad- CAG is auditing two Anil 80.85% ALSO SEE cial savings could be same
hakrishnan and Vikramajit Sen Ambani-controlled distribu- West Bengal (4) when we take both offshore
78.89% >HCL posts higher­than­expected rise in
said. tion companies (discoms)— net profit >P9 bank accounts and benami
The ruling raises concerns BSES Rajdhani Power Ltd and >Mark to Market: Wipro’s guidance belies land holdings into account.
*According to state election commission Source: Election Commission

them differently.
that the order could potential- BSES Yamuna Power Ltd —and run­up in share price >P14
AHMED RAZA KHAN/MINT
ly be extended to other sectors Tata Power Delhi Distribution

groups with diverse interests embarked on to favour size even more dramatically, given
in which companies pay the Ltd that provide electricity to
government to use national re- Delhi.
sources, and fuels investors’
worries about the complexity
The distribution firms are
joint ventures with Delhi Pow- Voters’
of doing business in India.
“The Supreme Court verdict
to allow CAG to audit telcos to
er Co. Ltd, which owns a 49%
stake in them.
“The verdict is disappoint-
fatigue looms
ascertain whether the govern-
ment is getting its due share is
ing. Our member telecom
companies will now have to as-
over UPA

portfolio reshuffles to focus only on enterprises the winner-takes-all tendency of digital spaces.
likely to add to the complexity sign additional manpower and
of the operating environment managerial hours towards B Y L IZ M ATHEW
of the telcos,” said Hemant this,” said Ashok Sud, secre- [email protected]
Joshi, a partner at consulting tary general at the Association ·························
NEW DELHI
firm Deloitte and Sells. of Unified Telecom Service
“The country is 4-5 years be-
hind in technology in telecom
and needs about $100 billion
Providers of India that repre-
sents dual technology telecom
licence holding companies.
A cross India, there is anger
against the Congress-led
United Progressive Alliance
to catch up with the world. The Department of Tele- (UPA). The diminished pros-

that could be in the top three of their respective ABCL’s app will face rivals from Tata Capital,
This ruling would add to the communications (DoT) al- pects of UPA, as reflected in a
perception that India is a diffi- ready has the power to con- series of opinion polls, in the

K A R L A L B R EC HT
cult country to do business in duct audits “and one more au- ongoing general election have
and there is more government dit was not required”, Sud been attributed to anti-incum-
than warranted. It could then said. bency or voter fatigue with the
extend to mining, power, air- “There are wider implica- existing parties in power.
line, banking, manufacturing, tions of the verdict as well. The main opposition Bharati-
services companies and indi- And not just for telecom. This ya Janata Party (BJP)’s prime
viduals etc.,” he added. sets a precedent for all compa- ministerial candidate Narendra

fields or were already counted as such. Also- Bajaj Finance and also Reliance’s Jio Financial
nies that contribute funds to- Modi has been trying to fan the
wards the exchequer to be au- flames of popular resentment
dited by the CAG. It also against the policies and actions
means that the CAG would of the government into mass
have to invest public funds to- rage against the ruling party.
wards expanding exponential- Arguments among political
ly to do this,” he said. observers are many. While one
Individual telecom firms de- section argues that the policies
clined to comment immediate- and actions of the government

rans, went the rationale, would not be worth the Services. Let’s watch how this game of apps
ly on the court ruling saying have affected the lives of ordi-
nary people, turning them
TURN TO PAGE 2® against the ruling party, anoth-
er section says the electorate is
NOTE TO READERS looking for better options that
will cater to the rising aspira-
The Media Marketing Initiatives on tions—the aspirations of the
Pages 20 and 21 are the equivalent of new middle class.

effort and were best sold off as assets that other shapes up. There’s nothing quite like a classic
paid­for advertisements, and no Mint Undoubtedly, the unabated
journalists were involved in creating rise in the prices of essential
these. Readers would do well to treat commodities and the series of
Mint is also available for R8 with them as advertisements.
Hindustan Times in Delhi-NCR only TURN TO PAGE 4®

players would better be able to run. In the three old rule being tested in a whole new space.

MY VIEW | WorLd ApArT

Japan may have an answer to its demographic crisis

that Japan’s central bank had raised interest raises of 5.3%, it remains unclear they can China too, after abandoning its misguided five years. In fact, married couples in Japan
RAHUL JACOB rates for the first time since 2007. Rates rose pass them on to consumers. Retail spending one-child policy, has found that fewer young have on average 1.9 children, which is close
to a marginal 0.1%, but proof that wages are has been strong, but that is strongly influ- women want to marry, let alone have chil- enough to the replacement rate, but fewer
rising at a decent clip of 4-5% suggests that enced by record tourist numbers last year. dren. In that sense, both in terms of exiting than ever are getting married. An aversion to
inflation of about 2%, the central bank’s Izumi Devalier, head of Japan economics quantitative-easing being harder than cen- living together, as so many couples do in the
repeatedly stated aim, may be here to stay. at Bank of America, told the FT recently that tral banks had anticipated and arresting fall- West, only compounds the problem.

L
ast week, the Japanese government The central bank that pioneered quantita- although some tourism industries are raising ing fertility rates, Japan is a mirror to the The Japanese government’s social engi-
announced it had passed an alarming tive easing and has run an ultra-loose mone- prices (rail fares are up, for developed world, albeit of neering on a grand scale has little to show for
milestone. The native population of the tary policy for decades finally appears to be instance), the country is an unsettling kind. it thus far. Last month, a British academic
country had fallen by 837,000 in the 12 saying the policy has served its purpose. not seeing “a sufficient One of the Last year, marriages writing to the FT may have come up with a
months to October 2023, a decline of almost The two seemingly separate events are breadth” of price increases. dropped to less than half a better explanation than the government’s:
100 people an hour. The world has shifted connected, of course. It is precisely because She notes that the Japanese world’s most million, the lowest level Japanese women graduates overwhelmingly
from dire predictions in the 1960s of a popu- Japan has been ageing so rapidly that savers government has—unusu- since the 1930s. Reworking want to marry graduates, but the trouble is
lation explosion to today’s all-too-optimistic have been content to leave their money with ally—been encouraging
closed societies Jane Austen’s famous line, there are more women graduates than men.

is a Mint columnist and a

view that large youthful populations are a
guarantee of demographic dividends in pla-
banks or post offices, even if an era of nega-
tive interest rates penalized them for doing
smaller companies to stand
firm in pushing for higher
has found that across East Asia, a single
woman in possession of a
A staggering one-fourth of Japanese men
and women in the age group of 18-39 are esti-
former Financial Times foreign
correspondent.
ces like India and Africa, but Japan has
always been an outlier. Call it the country of
so. Unusually for a developed country, more
than half of Japanese savings are in deposits.
prices from large firms.
But, with almost a third of
its economy job and graduate degree is
less likely than ever to be in
mated not to have had sex, according to data
cited by the UK academic John Bateson. The
a population implosion. Last year, its labour Indeed, the stock-market bull run of the past its people above 65, this must open up want of a husband. The Jap- aversion to living together without marrying
force shrank for the first time. This is a mill- year has been largely driven by foreign opti- segment of the population anese government, run worsens the problem of too few couples and
stone it has been able to navigate its way mism about the country’s prospects. may simply cut back to immigrants mostly by men, seems to too few children. Japanese law, meanwhile,
around in recent years because the labour Plenty of questions loom in assessing expenditure if confronted feel this is all about the diffi- allows only one family name after marriage;
force participation of women increased. And whether Japan is finally becoming a ‘normal’ with higher prices. culties of child rearing in more than 90% of couples take the man’s
in February, the government announced economy, as the Financial Times asked in an The real issue is that, as with rapid popula- expensive, crowded cities. Its subsidies to name. For professional women, this is almost
that the number of babies born in 2023 article earlier this month. (A parenthetical tion growth, governments everywhere induce couples to have more children certainly an issue. For Japan on the whole,
showed a 5.1% decline. The number of peo- question: Which major economy looks nor- struggle to turn demographic changes include additional childcare handouts if cou- the answer is immigration. One of the
ple in the country above the age of 65 is mal in a world of seemingly persistent around. Rapidly ageing populations now ples have three or more kids. In January world’s most closed societies has begun to
almost 30%. higher inflation and high public debt ?) characterize much of Europe and East Asia. 2023, it quixotically introduced a $7,600 open its doors to skilled workers from else-
In a seemingly unrelated event, the other While a recent round of wage negotia- Countries as diverse as South Korea and Nor- incentive per child for those parents who where. Last June, the number of foreigners
big headline out of Tokyo last month was tions saw large Japanese companies agree to dic countries have very low fertility rates. move out of crowded cities and stay away for living in Japan hit a record 3.2 million.
LIVEMINT.COM VIEWS ThurSDAy, 18 April 2024
New Delhi 13

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

GST adoption gave north-eastern Social media age limits are not
an effective way to shield kids
states a big developmental push We need companies to go by scientific learnings and take action

It has not just boosted state finances but also raised taxation efficiency, enabling the region to fast-track economic growth

MINT

LISA JARVIS
is a Bloomberg Opinion columnist covering
biotech, health care and the pharmaceutical
industry.
ROUHIN DEB
is chief economist, chief minister’s secretariat,
Government of Assam.

M
omentum has been building to
force social media companies to
make their products safer for kids.

T
he unprecedented development of But some solutions, while well intended, Research on how social media impacts
India’s Northeast after 2014 has been don’t address the underlying problem: the kids must be stepped up ISTOCKPHOTO
widely attributed to a significant push way these apps prey on developing brains.
by the central government to various A report from the American Psychologi- default would be to protect a child’s data,
infrastructural projects, ranging from cal Association (APA) highlights solutions turn off the endless scroll, disable likes, and
roads and railways to new airports. The GST bonanza that follow the science. That’s an important bar certain types of sensitive content, such
Though these efforts have played a very important India’s north-eastern states saw sharp gains in tax revenue as well as government grants after message because if we want to see mean- as things like cyberhate, explicit content or
role in boosting the region’s economy, another this indirect tax regime was rolled out in 2017 ingful improvements, we need to focus on posts that encourage eating disorders.
policy measure that has helped the north-eastern what’s actually causing the harm. That’s Those settings could be tweaked for more
states was India’s 2017 introduction of the goods States
Change between 2004-14 and 2014-24 Change between 2004-14 and 2014-24 in not necessarily the age of children on social mature children. “It doesn’t seem like a lot
and services tax (GST). The significant rise in their in tax devolution (in %) grants in aid from GoI (in %) media—the focus of many policy efforts— to ask,” he adds.
tax collections has equipped them with resources but the products’ features, and how those Age limits alone are too blunt a solution.
to push developmental initiatives and become Assam 242 212 features affect young minds. Yes, policymakers have always needed to
actively contributing stakeholders in the Centre’s Arunachal Pradesh 1,665 38
As the APA report points out, the teen make somewhat arbitrary choices about
efforts to build massive infrastructure across the brain is still learning skills like impulse when kids are ready for certain responsi-
Northeast. According to the Reserve Bank of Manipur 475 89 control, planning and prioritization. That bilities, whether that’s driving a car or
India’s report on state finances released in January Meghalaya 542 69
makes them especially vulnerable to infi- accessing Snapchat. But some kids can
2023, the country’s north-eastern states have nite scrolls or the pull of followers, ‘likes’ benefit from access to social media. And yet
been the biggest beneficiaries of the GST regime, Mizoram 570 81 and ‘shares.’ And some teens are particu- solutions to its inherent faults have focused
recording a compound annual GST revenue Nagaland 557 83
larly susceptible to harmful content or bad on banning access altogether or putting
growth rate of 27.5% since implementation in actors. the onus on parents to muddle through.
2017-18 till 2022-23, much higher than for all Tripura 407 73.54 The brief list of recommendations from As I’ve written before, parents play an
states. This rate is also higher than the 9% tax reve- Sikkim 499 27.90
the APA follows its social media advisory essential role in their children’s transition
nue growth recorded before the switch to GST. from last year, which demanded better sci- into a healthy digital life. But even the most
A review of past data on tax collections in the Source: Ministry of finance, Government of India ence about how platforms like TikTok and diligent parents cannot navigate this envi-
region shows that the uptick after the GST rollout Instagram affect kids’ brains. But some of ronment alone. We need social media
can be attributed to two reasons. North-eastern SATISH KUMAR/MINT
the responses from policymakers and companies to step up—not in the form of
states except Assam, Meghalaya and Tripura did the Centre has also increased manifold. To put this the central government’s commitment towards thought leaders were not always aligned token changes, but with substantive modi-
not receive any central sales tax (CST) revenue in perspective, Arunachal Pradesh, for example, the Northeast and the federal structure of our with the science, says Mitch Prinstein, the fications to their platforms that address
prior to GST implementation, as they’re primarily has had a 1,665% increase in tax devolution from democracy. Hypothetically, if there had been no APA’s chief science officer. Too much of what the science shows is a problem.
consumer states with hardly any manufacturing the Centre in the period 2014-24, amounting to GST during covid, there would have been no com- the policy focus narrowed to a simple idea: Another thing that social media compa-
activity. However, GST is levied at the point of con- ₹101,454 crore, compared with ₹5,749 crore in pensation to states and no back-to-back loans for age limits. nies need to do: Share their data on how
sumption—unlike CST, which was an origin-based the period 2004-14. This is one of the sharpest compensation either; so the states would have But drawing a bright line on age is not a kids are using their platforms. Progress
tax that was subsumed by GST—and so the switch rises in devolution for any state. Mizoram, Mani- faced a collapse in revenue. But the presence of cure-all. Turning 13 (or for that matter, 16) towards real transparency feels frustrat-
has been a boon for all states that have greater pur, Nagaland and Sikkim have also had a more GST and the compensation arrangement has been does not make someone magically capable ingly slow. Earlier this year, the Center for
consumption than production. The second factor than 500% rise in devolution during the period, a boon to the resource-constrained north eastern of handling the responsibilities of social Open Science in the US announced a part-
that led to higher tax collections is increased com- giving them enough fiscal space to carry out fast- states. GST has also had a key role in balancing the media. Conversely, some children might nership with Meta to facilitate certain
pliance under the GST regime. The use of a tax- paced development work. vertical fiscal imbalance between north-eastern have the maturity to navigate those plat- researchers to access data that could help
credit system for inputs means it inherently incen- Even without GST compensation and devolu- states and the Centre and improving the same at forms before they are 13. them better understand the relationship
tivizes end-to-end compliance, as the mechanism tion, the north-eastern states witnessed high tax an aggregate level for the country. Moreover, the age limits we already have between social media and well-being.
has self-policing built into the process that stops buoyancy, as state GST collections rose rapidly. The additional revenue that the country’s are not working. Tweens and teens are That’s a start, if a small one.
refund claims in case of tax evasion at any point After GST, the average tax growth of all states in north-eastern states have realized under the GST notoriously more tech-savvy than their Companies could accelerate this
during the movement of goods along a supply the country was 12.3%, while nominal GDP growth regime has enabled them to invest heavily in parents. They excel at finding worka- research into the ways social media is used
chain. Further, extensive use of technology has was 9.8%, resulting in a buoyancy ratio of 1.22 in infrastructure development, as is visible in the rounds to age restrictions on apps and time by and affecting kids. They could offer up
made collections far more efficient. For example, the period 2018-23. While state revenues grew fast, manifold rise in allocations for capital expendi- limits on devices. data from experiments they have already
Assam recently used big-data software to digitally those of north-eastern states grew faster. Their ture in their budgets. GST has also enabled them “There aren’t simple solutions to a com- run on how to engage teens with their
identify various mismatches in tax due and tax paid GST revenue growth was 15.71% in 2021-22 and to participate more actively in the national market plex problem,” says Dave Anderson, a clini- products. Surely, they know a lot about
by various parties and collected nearly ₹30 crore 16.47% in 2022-23. In 2023-24, GST revenue and benefit from increased trade and investment cal psychologist at the Child Mind Insti- which features make their products even
in settlements. Back when GST was rolled out in growth for the Northeast region in the first quarter opportunities. tute. Social media isn’t going anywhere, more problematic for teens. They should
2017, the total number of registered taxpayers was 16.39%, making it an outperformer again. The generous compensation package and fortui- and teens are going to use it. “We need to disclose them and fix them.
(migrated) was around 94,000 in all seven states of The implementation of GST has also had spill- tous rise in tax revenues should be used by these tailor our solutions to the risks [identified If we focus on the easiest fixes rather
the Northeast region. This has increased to around over effects on the revenue collection mechanism states to unlock their economic potential, even as by] the science, rather than the risks ampli- than the more nuanced solutions indicated
335,000 as of now (130,000 Centre plus 205,000 of states and streamlined other tax collection pro- they tap new sources of revenue, rather than slip fied by the zeitgeist,” he says. by the science, nothing will change. Social
state), a manifold expansion of the tax base. The cesses. This is evident in the sharp rise in these into tax complacency. The true potential of this What could that look like? Prinstein media companies only seem interested in
total revenue contribution from the region to the states’ revenue collections from other sources. natural economic zone, or ‘Ashtalakshmi’ as the offered a template for safer social media doing just enough to keep their CEO out of
central exchequer has also gone up to around Despite their strong revenue performance, some Northeast is often termed, can only be realized if accounts that sounded pretty good to this the Congressional hot seat. Lawmakers
₹20,000 crore annually, of which ₹8,000 crore is of these states had been receiving GST compensa- we mobilize much-needed resources for the devel- parent of a tween. “I would love to enter my seem interested only in symbolic political
from GST and ₹12,000 crore from central excise. tion even before the covid pandemic’s constraints opment of the region and the GST regime sustains child’s age and have all of the guardrails victories. Parents need to keep advocating
The flow of tax devolution and grants in aid from on economic activity came into effect, reflecting its strong revenue performance. automatically put into place,” he says. The for real reform. ©BLOOMBERG

MY VIEW | BehAviOur By BrAin

Ads crafted by AI needn’t be short of consumer insights

A few decades ago, Jack Trout and Steve of consumer conversation. But to make dif- Western countries. What is the data-set that document that was prepared after much
BIJU DOMINIC Riven, in their book Differentiate or Die: Sur- ferentiated advertisements, such elemen- one could analyse to arrive at such an under- research and discussions among the strate-
vival in Our Era of Killer Competition, tary truisms of human behaviour do not standing? gic minds both at the client’s end and within
reminded businesses the importance of dif- help. Knowledge of many young mothers Consumers will rarely tell the truth about its advertising agency. A creative brief con-
ferentiating one’s product from others in the being ill at ease deep within as a result of such deeply personal aspects of their lives. tained all the important elements needed to
market. But this differentiation strategy insecurity brought on by post-pregnancy That is when I realized that comparing the make a good advertisement: unique human

G
enerative artificial intelligence often has little to do with rational product bodily changes, however, is an example of a editorial content of Indian porn literature behaviour insights, brand guidelines, the
(GenAI) is promising to take over benefits. The technology and ingredients behavioural insight. How and Western porn material key response required from the particular
many a creative function, from gen- used to make products in most categories much ever we churn the may provide an answer to campaign or ad, and so on. A close under-
erating images and crafting copy to making have stayed the same for decades. For exam- past sales data of Wipro’s Differentiation that question. Will GenAI standing of this brief is what guided human
audio-visual advertisements. How soon will ple, the ingredients of the toothpaste we use Santoor soap, this insight tools ever be this creative in creative teams in developing various crea-
GenAI take over these creative functions of have not changed in the past few decades. will not be discovered. will emerge their information search? tive stimuli to generate the appropriate
the $800 billion advertising industry? Will Even if a product is technologically superior, How much ever we churn If GenAI has to take over response from the target consumer.
AI machines end the human reign over the very few people can actually discern such consumer-conversation
from how AI is any responsibility for If GenAI is to take charge of advertising,

is chief evangelist, Fractal

creative world? Before answering these pro-
found questions, we have to answer a simple
technological differences.
Brand differentiation is about generating
data, it would not emerge.
An insight is a deep human
prompted but brand communication
from humans, it should be
the crucial role played by the creative brief
in the traditional ad industry will have to be
Analytics, and chairman,
FinalMile Consulting.
question: What goes into creating effective
advertising?
the right emotional stimulus on behalf of a
product. The question ‘Which college do
need that a consumer
might not even articulate
it’ll take human able to unearth unique
human behaviour insights.
taken over by an effective prompt strategy.
It will quickly be found that prompting can-
There are a few who think that creating an you study?’ in a soap advertisement, for in a normal conversation. creativity to do GenAI platforms are built not be a rational process managed by tech
effective advertisement is as simple as put- example, could tug the heartstrings of many For that matter, on the face on Large Language Models engineers. The prompt strategy would have
ting the response you want from the con- a young mother in India. To appreciate the of it, one might even deny this effectively with access to far more to be developed by human behaviour and
sumer into the headline of your ad. So if you persuasion impact of this simple question on such thoughts. So such knowledge than a human design experts tasked with getting GenAI to
want someone to buy a product, advertise the sales of a soap brand, one need to under- insights may require deep being can ever remember. explore the depths of behaviour that qualita-
“Buy XYZ brand” as the main message. To stand the importance of human behaviour qualitative consumer research to reveal. But hoping to get great human behaviour tive research has not yet reached. The
provide further impetus to buy that product, insights in crafting effective advertising. Powerful insights come from a deep and insights from an LLM would be like looking prompt strategy would then be the big dif-
advertise information on its functional ben- Insights are not peripheral truisms about creative understanding of consumer behav- for a needle in a haystack. This is where the ferentiator in the brand’s Gen AI game-plan.
efits. As the ultimate incentive, mention any human behaviour. That demand for a prod- iour. As part of creating an advertisement for role of prompts in a brand’s GenAI strategy Only with a truly creative prompt strategy
price discount on offer too. But the truth is uct will go down as its price goes up is not an a deodorant in India, my team once had to takes on huge importance. would GenAI have been able to come up
that this is not how effective advertisements insight. It is just a truism. Such truisms are understand whether the masturbation fan- In the traditional advertising industry, the with a line like ‘Which college do you study?’
are created. often on top of the pile in reports on samples tasies of Indian males differed from those in creative brief was a well-thought-through to sell more soap.
14 ThursDAy, 18 April 2024
New Delhi BUSINESS OF LIFE CULTURE LIVEMINT.COM

A forgotten modernist
is back in the spotlight
‘Civil War’ is just
reporting, says
Alex Garland
‘Civil War’ turns American anxieties
into violent big-screen reality
Agencies
[email protected]

A
lex Garland’s films have vividly conjured a virus-caused
pandemic (2002’s 28 Days Later), an uncontrollable artifi-
By focusing on four cial intelligence (2014’s Ex Machina) and, in his latest,
Civil War, a near-future America in the throes of all-out warfare.
decades of Gobardhan Most filmmakers with such a record might claim some knack
for tapping into the zeitgeist. But Garland doesn’t see it that way.
Ash’s practice, the He’s dealing, he says, with omnipresent realities that demand no
great leaps of vision. He wrote Civil War in 2020, when societies
exhibition aims to situate around the world were unraveling over COVID-19 and the pros-
him in the same league pect of societal breakdown was on everyone’s minds.
Civil War is an ominous attempt to turn widely held American
as other modern masters anxieties into a violent, unsettling big-screen reality. Garland’s
film opens Friday — the anniversary, to the day, of when the Civil
War began in 1861. And it’s landing in movie theatres just months
Anindo Sen ahead of a momentous presidential election, making it poten-
[email protected] tially Hollywood’s most explosive movie of the year.
Civil War is something far more oblique than its matter-of-fact

S
ummer may have come early this title. The film, which Garland wrote and directed, isn’t mapped
year, but it is still spring for India’s (clockwise from top left) ‘Commander-in-Chief’ from the ’Children’ series (1957-67); ‘Fisherman’ directly against today’s polarization. In a war that’s already rav-
modernists in the city of Kolkata (1939) watercolour on paper; from the ’Avatar’ series (1950) COURTESY: THE PRINSEPS AUCTION HOUSE aged the country, California and Texas have joined forces against
with three major retrospectives cur- a fascist president (Nick Offerman)
rently on display this month. Along series of watercolours on the catastrophic fam- luminaries of the Bengal school, painted heart- Much of the who’s seized a third term and dis-
with KG Subramanyan’s much awaited centen- ine of Bengal in 1943, which he has been long rending images of the famine while questioning film’s disquiet banded the FBI.
nial, curated by Nancy Adajania, and Ganesh recognised for, along with other contemporar- British mismanagement during the war, and A band of journalists (Kirsten Dunst,
Haloi’s solo exhibition, a third show, ‘The Prin- ies like Chittaprosad Bhattacharya and Zainul was considered avant-garde enough at his peak comes from Cailee Spaeny, Wagner Moura) makes
seps Exhibition: Gobardhan Ash Retrospective’ Abedin. In past retrospectives on him, or of to exhibit alongside modernists like F.N. Souza, seeing war on its way toward Washington, D.C. Much
at the Kolkata Centre for Creativity (KCC) is qui- modern art from Bengal, seminal works of his S.H. Raza and M.F. Husain? contemporary of the film’s disquiet comes from see-
etly offering a course correction in art history. like One by One—which represented the haunt- The second half of the exhibition implies a American soil ing visceral encounters of war —
Co-curated by Harsharan Bakshi and Brijesh- ing scene of a family converged around a lifeless decline in his prospects, both creatively and bombings, fire fights and executions —
wari Kumari Gohil from the Prinseps auction child aware there was more death to come— financially. From 1952 to 1955, he headed the on contemporary American soil.
house, the retrospective, which covers four dec- have been prominently featured. painting department at the Indian College of Art “When things collapse, the speed at which they collapse tends to
ades of the artist’s life from 1929 to 1969, is an A divergence within the exhibition is a set of and Draughtsmanship in Kolkata but then with- surprise people — including people like intelligence officers
effort to situate Ash in the same league as India’s non-anatomical figures created between 1948 drew to his home town in Begumpur, where he whose job is to watch and predict when these things will happen,”
other modern masters. Over hundred artworks chose subjects marginalized by society. Fakir and 1951. Branded as the Avatar series by the opened the Fine Art Mission Free Art School in Garland said in a recent interview. “Things are always in a slightly
are presented in the exhibition, and they (1939) shows a man begging on the streets in auction house, ostensibly to give them a catchy 1956.The Children series, painted in oil between more dangerous state than they might appear.”
include a wide repertoire in terms of both media Park Circus area of Kolkata. He drew this por- moniker, these gouaches stand in stark contrast 1957 and 1967, comes across as a regression to a The rapidity with which society can disintegrate has long fasci-
and themes—from works in charcoal, pastels, trait in charcoal after observing his subject for to Ash’s early academic studies, his other mod- more traditional approach, especially after he nated Garland, the 53-year-old British born filmmaker. Western
pen and ink, oil and watercolours to portraits, days, and it demonstrates his ability to capture ernist works, or ones from his later years exhib- had developed such an individualistic style in democracies, he says, can lean too much on their sense of excep-
figure studies and landscapes. the pathos of the downtrodden in his socially ited in the show. his earlier works. The resulting piece, titled tionalism. To him, Civil War isn’t an act of cynicism. It’s a warning
Breathing Time (1929), exhibited in the intro- responsive works. Other works in the same While the curatorial attempt to draw a like- Commander-in-Chief, shows three children shot. “The consequences of it are so serious that to not take the
ductory section, is a study of a horse whose bold genre include Street Beggar (1937), Fisherman ness between Ash’s figures and recent digital with the one in the centre holding a whip, while threat seriously would, itself, be another kind of insanity,” says
brushstrokes caught the eye of Jamini Roy at his (1939) and Santhal People (1950). avatars like Cryptopunk NFTs may seem oppor- the other two look on subserviently. Garland. “It would just be complacent.”
college’s annual exhibition and turned out to be The first half also devotes a section to his self- tunistic, his ability to arrive at such a distinctly The exhibition tries to uphold Ash as an influ- “Civil War,” set in a near-future, instead plays out with more
a propitious break for the artist. With the sup- portraits. Mostly done in pen and ink, with a expressive style makes him appear foresighted ential modernist, who needs to be recognised subtle connections to today’s fractured politics and cultural
port of his mentor Atul Bose, he was instrumen- pronounced use of cross-hatching, these chron- compared to his more established Indian con- for his critical contribution to Indian art during splits. Jesse Plemons plays a heinous militant who interrogates
tal in co-founding of the Young Artists’ Union in ologically arranged sketches reinforce his temporaries, and creates a dialogue with other a period of turmoil ravaged by famine and Parti- the main characters, asking them: “What kind of American are
1931 and the Art Rebel Centre in 1933, working image of a quiet and reclusive artist. Unfortu- global post-war expressionists. tion in Bengal. The show also underscores the you?” Though it’s never seen, Charlottesville, Virginia — site of
with fellow artists to counter the influence of nately, while he was known to make self-por- A lesser known fact, which the retrospective lack of historical scholarship and critical recog- the 2017 white supremacist rally — is referred to as a battle front.
the Bengal School. traits till his final days, there are none exhibited highlights, is that in 1950, as an invited member nition for many Indian modern artists who have Asked about that choice, Garland replies: “The film is just
What distinguished Ash from his peers early from his sunset years, thus limiting the exhibi- of the Calcutta Group, Ash exhibited with the withered away from the spotlight. reporting.” As much as anything, Garland’s film is about the cen-
in his career, apart from his outspoken nature, tion’s scope to showcase the evolution of this Bombay Progressives. At this point in the show, The exhibition can be viewed at the Kolkata tral role reporters play in capturing critical events in lethal condi-
was his remarkable draughtsmanship. He also vital aspect of his artistic practice. one is faced with the question: What happened Centre for Creativity, Kolkata till 21 April, Mon- tions. Unbiased reporting, Garland says, has been eroded. In Civil
preferred to work outdoors and consciously A glaring miss, again, is the absence of Ash’s to this nonconformist, who rebelled against the day – Saturday, 11 AM – 7PM. War, it’s literally under attack.

Looking beyond fondue and raclette in Switzerland

There is more to Swiss together with a decadent cheese sauce, result is a symphony of textures: creamy surprise to most, but the most famous des-
before being topped with caramelised yet al dente rice, infused with the warmth serts in Switzerland don’t actually have
food than you might onions and crispy bacon, and served with of saffron and a satisfying depth of flavour. chocolate in them. They are mostly made
expect, from hearty a side of applesauce. I had my first taste of Sausages, in general, are very popular in of hazelnuts, chestnuts, apples and Kirsch
this hearty Swiss comfort food at Flüh- Switzerland thanks to German influences. (cherry liqueur).
meat dishes to matt, a typical alpine restaurant housed St. Gallen’s OLMA Bratwurst, named after If you are in the cantons of Appenzell,
inside a 300-year-old home in Engelberg. the city’s agricultural fair (OLMA), is a stan- don’t miss the Biberli—two slices of sweet
delectable desserts The combination of pasta and applesauce dard Swiss snack at any festival—grilled gingerbread held together with a sticky
sounds bizarre but the delightful play of and served with a hunk of bread. Tradi- honey-almond filling. They make for a
Nivedita Jayaram Pawar textures and flavours really works. At tionally, people from east Switzerland perfect snack on a hike when you need to
[email protected] Flühmatt, the dish is served in a big enjoy it without mustard to appreciate the recharge your batteries.
wooden bowl—a vegetarian version with- full depth of the meat’s flavour. People, Then there’s Basler Läckerli, a type of

T
here’s something rather comforting out the bacon is also available. who are fond of bratwurst, recommend dense and chewy biscuit made with
about dipping pieces of bread in hot Another dish that stands out is the Loz- picking the sausage up by hand, rather almonds, honey and spices. ‘Lecker’
bubbling cheese, or tucking into a ärner Chügelipastete. This dome-shaped than using a knife and fork. At times, the means delicious in German, and ‘Basler’
crispy, hot rösti while gazing at the snowy pie, filled with meat, mushrooms and bratwurst is even fried with rösti in a pan to stands for Basel, where the biscuits are
vistas all around. However, there’s a lot raisins cooked in a white sauce, is a popu- create the onion sauce version. A glass of originally from. Those with an artificial
more to Swiss food than just cheese and lar dish in Lucerne. Wirtshaus Galliker a Rivella, a popular Swiss soda made from dental crown, or a wobbly tooth, should
potatoes. In fact, eating in this country 150-year-old tavern in Lucerne, is where milk serum, completes the experience. stay away from this extremely hard
feels like being on a culinary tour of its the Swiss go to eat Lozärner Chügeli- But my favourite thing to eat in Switzer- spice biscuit.
neighbours as well, easy as it is to find pastete and other traditional Swiss delica- land is air-dried meat, also known as One dessert that you absolutely can’t
French croissants, Italian risotto and cies. But nothing beats a bowl of steaming St. Gallen’s OLMA Bratwurst is a standard Swiss snack at any festival Bündnerfleisch. Before drying for 10 to 15 miss while in Switzerland is the sump-
plump German sausages. Swiss cuisine is hot Basler Mehlsuppe, a soup made with weeks in the clear Alpine air, the meat is tuous Bündner Nusstorte. At the heart of
not just influenced by these countries, but browned flour, stock, onions and some- another level of flavour. Saffron risotto, a culinary gem hailing treated with white wine and seasonings the buttery shortcrust pastry is gener-
also shaped by four distinct cultural times red wine. A winter delicacy in Switzerland is the from Ticino, encapsulates the fusion of such as salt, onion and assorted herbs. ous amounts of chopped walnuts
regions within Switzerland itself. Natu- While this shares some ingredients marroni (sweet chestnut), which is either Italian rustic flavours with Swiss refine- Bündnerfleisch is generally served with dressed in a coat of rich, sticky and
rally there are plenty of local delicacies. with the French onion soup, the approach served roasted at the roadside or as ver- ment. Known as Risotto alla Milanese in bread or as part of the traditional dish sweet caramel. Flaky, gooey and
Pasta is hugely popular throughout and outcome are distinct. Here, the flour micelli in a dessert. The nuts are also used Italy, the Swiss adaptation involves a gen- raclette. But I prefer to munch on it with- crunchy, it serves as the perfect after-
Switzerland, especially Älplermagronen, takes centre stage, creating a luxuriously to make a whole range of products, erous showering of parmesan cheese, out the frills. meal treat or with a cup of hot tea after
the Swiss version of mac and cheese. In it, thick base. The final flourish of grated including bread, pasta, praline chocolates which adds a savoury intensity, or at times Desserts hold an important place in a day of skiing in the Alps. The hardest
macaroni and cubed potatoes come Gruyère cheese propels the soup to and spreads. a knob of butter for extra richness. The Swiss people’s hearts. This may come as a part is sticking to just one slice.