businessline's State of the Economy Podcast

In this State of the Economy Podcast, host S Ronendra Singh speaks with Partho Banerjee, Senior Executive Officer of Marketing and Sales at Maruti Suzuki India on how the automotive industry is navigating a complex landscape of inventory challenges, fluctuating sales, and shifting consumer preferences.

Banerjee discusses the current trends in India’s passenger vehicle market. He addresses concerns about high inventory levels among dealers and the potential impact of these dynamics as the festive season approaches, “During COVID, semiconductor shortages led to low inventory. Ideally, it should be 30-31 days, but with the festive season, dealers need to stock up to avoid losing sales.” Banerjee said.

With the market poised for a possible revival, Banerjee sheds light on Maruti Suzuki’s strategic decisions, such as aligning vehicle dispatches with actual demand to avoid overburdening their channel partners, noting, “We’re aligning retail and wholesale numbers to avoid pushing excess stock to dealers. The true market share is reflected in actual retail sales, not just dispatches.”

Banerjee shares his perspective on the sales performance of various segments, including the rising traction of CNG vehicles. He highlights, “In Q1, we achieved sales of 4.27 lakh units with 1.2% growth, and 34% of these were CNG variants, showing strong market traction.”

He also discusses Maruti Suzuki’s commitment to innovation through limited edition launches and an enhanced warranty programme, stating, “We’ve extended the standard warranty to three years and 100,000 kilometres. With the extended warranty, customers get peace of mind for up to six years and 160,000 kilometres.”

Banerjee further touches on the company’s approach to maintaining market share in the increasingly competitive compact car segment and the potential growth areas in electric and hybrid vehicles, noting, “Our CNG vehicles account for 73% of the segment’s market share, with one-third of our total sales being CNG models—a significant achievement.”

Listen in! 

(Host: S Ronendra Singh, Producer: Siddharth Mathew Cherian.)

About the State of the Economy podcast  

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups

In this State of the Economy podcast, Akhil Vishwanatham, VP – International Tech, Walmart Global Tech, talks to businessline’s Sanjana B, about the innovative concept of adaptive retail. 

The podcast goes on to explain how adaptive retail is transforming the shopping experience by blending the best elements of online and physical shopping, creating a seamless and personalised experience for customers.  

Akhil provides insights into how Walmart engineers leverage AI to enhance customer-centric shopping. He shares examples of how AI is embedded across Walmart’s retail operations, from AI-powered inventory management to autonomous devices that streamline in-store processes. The conversation also covers the challenges of scaling AI-driven solutions to Walmart’s vast network and the importance of ensuring customer privacy and data security in the age of AI. The discussion goes on to cover the challenges of balancing cutting-edge automation with customer privacy and data security. 

Akhil also touches on the impact of automation and AI in creating more efficient and personalised retail environments, ultimately setting the stage for the future of shopping. 

(Host: Sanjana B, Producer: Amitha Rajkumar)

About the State of the Economy podcast  

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, BusinessLine brings you podcasts with experts ranging from finance and marketing to technology and start-ups

In recent weeks, the topic mental health has gained significant attention. It was highlighted in India's economic survey, which recognised it as essential to both individual and national well-being. Additionally, during the Paris Olympics, American gymnast Simone Biles brought mental health into the spotlight with her remarkable return, emphasising the importance of resilience. Her message was underscored by a photograph she captioned, "mental health matters," drawing attention not just to her victory but to the broader issue of mental well-being. In this episode of the State of the Economy podcast, businessline’s Jyothi Datta speaks to Neerja Birla, Founder and Chairperson, Mpower on the importance of taking care of mental health. 

Birla highlights the silent struggle faced by many individuals, especially women, who are hesitant to talk about mental health issues due to stigma and fear of discrimination. A study conducted by Mpower revealed that a significant number of people, despite being aware of their mental health concerns, are reluctant to seek help. 

While there has been progress in raising awareness about mental health, Indian corporates still lag behind global standards in providing comprehensive support. The report found that women are more likely to experience mental health issues and are more vulnerable to discrimination. 

Birla emphasises the importance of addressing mental health challenges to improve productivity and overall well-being. She advocates for creating a supportive work environment where employees feel comfortable discussing mental health issues and seeking help. 

The podcast also touches on the treatment gap in India, which is exacerbated by limited resources, high costs, and lack of insurance coverage for mental health services. Birla calls for increased investment in mental health infrastructure and insurance reforms to improve access to care. 

Mpower has been actively working to address these challenges through various initiatives, including government partnerships, telehealth services, and community programs. Birla's commitment to promoting mental health awareness and providing accessible support is evident in the organisation's efforts to create a more inclusive and supportive society. 

There is a great need for greater awareness and reduced stigma surrounding mental health issues. By fostering a culture of openness and acceptance, we can encourage individuals to seek help and break down barriers to accessing mental health services. 

Additionally, the podcast also highlights the importance of comprehensive support within corporate settings. By providing mental health resources and training, companies can create a healthier and more productive work environment. 

(Host: Jyothi Datta, Producer: Anjana PV)

About the State of the Economy podcast  

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups 

Cybersecurity isn’t just about defending against external hackers; many threats come from within an organisation. These internal threats can be just as damaging, if not more so, due to the access and knowledge that insiders possess.

In this episode of the State of the Economy cybersecurity podcast, host KV Kurmanath discusses the various facets of internal cybersecurity challenges with Sundar Balasubramanian, Managing Director, India, and SAARC region, Check Point Software Technologies.

Sundar emphasises the importance of building a robust cybersecurity architecture, stating, "We advocate zero trust... It’s very important to have a very strong security posture from our customer’s standpoint." He highlights the critical shortage of cybersecurity professionals in the industry, noting that "there is a need for about 40,000 certified cybersecurity professionals in the country," which adds to the internal challenges organisations face.

He also sheds light on the often overlooked but crucial aspect of insider threats, saying, "Many data breaches stem from internal threats, which could be both malicious and accidental actions by employees or partners." Sundar stresses the significance of education and prevention, remarking, "The only way we can counter this is to basically educate the employees... and advocate the use of strong tools to prevent any malicious intrusion."

As organisations continue to migrate to cloud-based platforms, Sundar warns of the added complexities this brings: "We have graduated from phishing to vishing... The lack of understanding of cloud security has accelerated some of the internal threats." In addressing how to handle failures in security, he adds, "In security, failures can happen. It’s very important to have a very strong incident response team to isolate, identify, and remediate the problem before it escalates." 

Listen in!

In today's rapidly evolving real estate landscape, innovative approaches such as fractional ownership are reshaping how investors engage with commercial properties. This concept enables multiple investors to own fractions of high-value assets, democratising access to the lucrative commercial real estate market. In this State of the Economy podcast, businessline’s Abhishek Law speaks to Sudarshan Lodha, Co-founder &CEO, Strata, about the relevance of fractional ownership. 

Lodha states that fractional ownership parallels the stock market, where individuals purchase shares of a company. Similarly, investors can now acquire shares in commercial properties, becoming fractional owners of a building. This model provides an avenue for retail investors to participate in high-value, rent-yielding real estate, traditionally accessible only to wealthy individuals or large corporations. By enabling shared ownership of premium commercial assets, platforms like Strata have effectively created an "IPO for buildings," fostering greater inclusivity and liquidity in the real estate sector. 

According to Lodha, Strata offers a flexible investment platform, accommodating individual investors, partnerships, trusts, and NRIs. The platform will also soon facilitate dollar investments from foreign investors. Upon investing, individuals receive share certificates representing their ownership stake in the property. The model promises an average annual return of 13 to 16 per cent, comprising 8 to 9 per cent rental income and additional capital appreciation realised upon selling the property. Strata advocates a long-term investment perspective, emphasising the compounding benefits akin to traditional real estate investments, where properties appreciate significantly over time. 

While both fractional ownership and Real Estate Investment Trusts (REITs) offer exposure to real estate assets, they differ in structure and scope. Fractional ownership typically focuses on single properties, providing investors with concentrated exposure to specific assets or micro-markets. Conversely, REITs aggregate multiple properties, offering a diversified portfolio across various locations. As the fractional ownership market matures, it is increasingly being recognized under the Small and Medium REIT (SM-REIT) framework, offering property-specific listings that promise potentially higher returns compared to larger, more diversified REITs. 

The fractional ownership market in India has witnessed remarkable growth since its inception in 2020. With Strata alone managing assets worth over 2,000 crores, the overall market is estimated to be around 4,000-4,500 crores. This rapid expansion underscores the model's appeal, especially among affluent investors seeking to diversify their portfolios. As regulatory frameworks evolve and platforms streamline operations, fractional ownership is poised to capture a significant share of the real estate investment landscape, particularly among retail investors and NRIs who seek hassle-free asset management. 

Listen in to the podcast to know more. 

(Host: Abhishek Law, Producers: Anjana PV, Siddharth Mathew Cherian) 

About the State of the Economy podcast  

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups 

In this State of the Economy podcast, the spotlight is on the basmati rice industry, a crucial segment of India’s agricultural exports. Mayank Garg, Director of Aroma AAT Basmati Rice, talks to businessline’s Subramani Ra Mancombu, about the current state and future prospects of basmati rice production and export. 

The episode begins with a look at the performance of the basmati rice crop in the current year. Garg expresses optimism about the crop’s health and production levels, noting an increase compared to the previous year. However, he also addresses a key concern: the significant drop in basmati rice prices. While prices have decreased notably from last year, he views this as an opportunity for exporters, as lower prices could lead to a surge in international demand and export volumes. 

The conversation also delves into the importance of securing exclusive marketing rights, or Geographical Indication (GI) tags, for basmati rice in key international markets like the European Union and the United States. Garg stresses that the Indian government should be more proactive in this area to protect the authenticity of basmati rice and prevent misuse of its name by other countries. 

Looking ahead, Garg identifies significant growth opportunities for basmati rice in markets such as the USA, Europe, Russia, and even emerging markets like Japan and Vietnam. He emphasises the potential for Indian exporters to increase their market share by introducing the unique taste and quality of basmati rice to new consumers.

(Host: Subramani Ra Mancombu; Producer: Amitha Rajkumar)

About the State of the Economy podcast 

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.

The copper market has experienced significant volatility due to macroeconomic factors, particularly China's influence and the U.S. Federal Reserve's policies. With China consuming nearly 50 per cent of global copper production, its economic health, especially in the housing sector, heavily influences copper prices. In this State of the Economy podcast, businessline’s Subramani Ra Mancombu speaks to Kishore Narne, Director & Head - Commodity & Currency - Motilal Oswal Commodity Broker Pvt Ltd, on the factors influencing copper pricing. 

Initially, expectations of a Chinese economic stimulus and U.S. rate cuts spurred copper prices. However, the absence of such actions from both countries led to a downturn in copper prices. The U.S. Federal Reserve's decision to maintain interest rates and China's lack of significant economic announcements disappointed the market, leading to a rally in the U.S. dollar and a subsequent fall in copper prices. 

Looking ahead, several factors will shape copper prices. The U.S. Federal Reserve's approach to interest rates and the potential for a soft economic landing in the U.S. are crucial. Recent U.S. economic indicators suggest cooling inflation and rising unemployment, making a rate cut more likely in the near future. However, China's economic recovery remains uncertain, and its weak demand for copper may limit any price increases. 

Additionally, the low treatment and refining charges (TCRC) and increasing copper inventories indicate a mismatch between supply and demand. While smelters continue to produce copper, low end-consumer demand may eventually force them to reduce output, negatively impacting copper prices. 

Other potential influences include the possibility of a deeper U.S. recession and the shift by some Chinese government agencies from copper to aluminum in infrastructure projects. However, the distinct properties and uses of copper and aluminum limit their interchangeability. In India, the copper market is more affected by global prices as India is a price taker rather than a price maker. Despite this, India's ongoing infrastructure development and electric vehicle growth will continue to drive copper demand. 

Listen to the podcast to know more. 

(Host: Subramani Ra Mancombu, Producers: Anjana PV, Amitha Rajkumar)

About the State of the Economy podcast 

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups 

In this episode of businessline's State of the Economy Podcast, host Amiti Sen talks about the recent political upheaval in Bangladesh and the uncertainty that looms over the future of Bangladesh and its impact on trade relations with India with Biswajit Dhar, a distinguished economist and retired professor from Jawaharlal Nehru University.

Dhar talks about how the political instability in Bangladesh could disrupt its economic growth and, in turn, affect Indian exports and investments. "When there is political uncertainty of the kind that we have seen in Bangladesh, there is going to be economic uncertainty that follows," he notes.

Dhar highlights the significance of Bangladesh as a trading partner for India, particularly in the context of exports.

In the fiscal year 2021–22, Bangladesh was India's fourth-largest export market, a position that has since slipped to sixth due to India's restrictions on wheat and rice exports. "India's exports to Bangladesh have been growing, but the recent political turmoil could affect this trend significantly," Dhar warns.

The discussion also touches on the impact of the unrest on the textile industry, a critical sector for both countries. Bangladesh, known for its robust garment industry, has been a key part of India's supply chain, especially for yarn and fabrics. However, the ongoing turmoil threatens to disrupt this supply chain. He explains, "The garment industry has suffered hugely in this political turmoil, and as a result, the whole supply chain is going to get disrupted.".

Beyond textiles, the podcast explores the broader implications for Indian businesses operating in Bangladesh, including those in the FMCG sector, personal care, and even IT services. Dhar points out that Indian companies have increasingly been setting up operations in Bangladesh to take advantage of lower wage costs. "Indian companies have been going into Bangladesh, and they were actually trying to piggyback on Bangladesh's success in garments to access the international market," Dhar notes.

The conversation also looks at the potential Free Trade Agreement (FTA) between India and Bangladesh, which has been in the works. Dhar is optimistic about the FTA, stating that it could be a "win-win" situation for both countries. He emphasises the need for India to maintain strong economic ties with Bangladesh, irrespective of the political changes in Dhaka. "The strong economic relations that have developed between the two countries should be a strong enough reason for the new government to continue relations with India," Dhar adds.

Listen to the podcast to learn more.

(Host: Amiti Sen; Producer: Siddharth Mathew Cherian)

About the State of the Economy podcast 

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.

Microgrids, which are decentralised electricity generation and distribution systems that primarily use renewable energy sources enhance electricity reliability in rural India, says Manoj Sinha - CEO HUSK Power Systems, in conversation with businessline’s Rishi Ranjan Kala, in this State of the Economy podcast. 

Sinha goes on to explain that these microgrids serve residential customers, MSMEs, and small factories, providing a critical solution to energy poverty in rural and remote areas of India and Nigeria. 

Sinha highlights that microgrids can provide high-quality, stable electricity and excellent customer service, addressing the two critical issues of reliability and quality. Additionally, microgrids can help balance the grid as more intermittent renewable energy sources are added, thereby contributing to a more stable and resilient energy system. 

The discussion also touches on the Indian government's PM Kusum initiative, aimed at promoting solar energy for agriculture. Sinha noted that while PM Kusum has had some success, integrating isolated solar pumps and microgrids into the central grid could significantly enhance its impact. This integration would require new policies and technological innovations, such as artificial intelligence-powered virtual power plants, to manage decentralised energy resources efficiently. 

Reflecting on his experiences since establishing the first microgrid in Bihar in 2008, Sinha observed substantial progress in India's energy landscape. However, he stressed that more needs to be done to achieve India’s net-zero targets. He called for systematic policy drives to reduce fossil fuel dependence and spur private capital and technology innovation. 

Host: Rishi Ranjan Kala; Producer: Amitha Rajkumar

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About the State of the Economy podcast 

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups 

Economic indicators are the measures of macroeconomic performance. These indicators can give an outlook of how an economy is functioning. In the recent episode of businessline’s State of the Economy podcast, Shishir Sinha speaks to Rahul Ahluwalia, Co-Founder, Foundation for Economic Development, on thw key macroeconomic trends and high-frequency economic indicators. 

Sinha highlights the recent GST collection of ₹1.82 lakh crore, a three-month high, noting that collections from imports are higher than domestic sources. Ahluwalia emphasies that imports shouldn't be feared, as they are essential for exports. He stresses that the real concern is the stagnant growth of exports. Before 2011, the Compound Annual Growth Rate (CAGR) of exports was about 10%, but it has been flat at around 3.5% over the past 14 years. He believes that exports drive economic growth, and the current trend indicates a need to focus on boosting export performance. 

Regarding GST, he mentions that while increasing collections might seem positive, it could also indicate a shift from the informal to the formal sector, without real economic growth. He cautions that the growth in GST collections should not be viewed solely as an economic improvement but should consider the underlying factors. 

Ahluwalia correlates the rise in GST collections with high inflation in the manufacturing sector. He expects retail inflation to be around 4 to 5 per cent, aligning with the Reserve Bank of India's target. He notes that controlling inflation through high-interest rates can make investments less attractive. 

He added that the first quarter fiscal deficit is 8.1 per cent of the budget estimate, partly due to limited expenditure during the election period. Ahluwalia argues that it is unlikely for the fiscal deficit to be lower than the 4.9 per cent estimate, as most of the budget is pre-committed to salaries and debt servicing. Additionally, post-election uncertainties and coalition demands may lead to further spending, complicating efforts to meet the capital expenditure target of ₹11 lakh crore for the fiscal year. 

Listen in to the podcast.  

(Host: Shishir Sinha, Producer: Anjana PV)