businessline's State of the Economy Podcast

In this episode of the State of the Economy podcast, G Hari Babu, President, National Real Estate Development Council (Naredco), speaks to businessline’s Abhishek Law, where he shares valuable insights on the real estate market, focusing on the positive outlook for 2024. He highlights the factors contributing to this optimistic outlook, including the robust Indian economy, stable RBI regulations, and controlled inflation rates. Babu emphasizes that the residential real estate sector, especially affordable housing, will witness this in the coming years.  

The discussion delves into demand dynamics, with a focus on the preference for larger apartments over smaller ones. Babu projects a growth rate of 9.2 per cent for the residential real estate sector, driven by an increasing urban population and strong demand. He also addresses the question of potential price increases, pointing out that stable interest rates and already high prices might mitigate significant spikes. 

A major part of the conversation revolves around affordable housing. Babu advocates for a redefinition of affordable housing, suggesting that the government should introduce incentives for housing units under ₹35 lakh. He proposes specific measures such as GST reductions, income tax exemptions, and lower interest rates to make affordable housing more accessible and attractive. 

Furthermore, the discussion touches upon the need for industry status for small and medium-sized builders. Babu argues that granting industry status will enable these builders to access loans at lower interest rates, fostering better compliance and regulation in the sector. The conversation concludes with insights into the budget and policy recommendations. Babu calls for a proactive approach from the government in addressing the challenges faced by the real estate industry. He emphasises the importance of aligning policies with the needs of the urban population and providing effective solutions to uplift the sector. Listen in.

Host: Abhishek Law; Producer: Nabodita Ganguly.

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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.

In this State of the Economy podcast, businessLine's S Ronendra Singh talks to Balbir Singh Dhillon, Head of Audi India, about the luxury car market in India, focusing on the remarkable growth it experienced in 2023. With a year-on-year increase of 20 per cent, the market reached a record high of 46,000 units, surpassing the previous peak in 2018. Although luxury cars will represent just over 1 per cent of the overall Indian car market in 2024, industry experts expect sustained momentum and anticipate double-digit growth.

Dhillon sheds insights into the luxury car market's opportunities, challenges, and prospects. Audi India reported an impressive 89 per cent year-on-year sales growth in 2023, reaching 7,931 units. Dhillon also discusses the positive outlook for the industry in 2024, projecting a growth rate of 10–12 per cent while acknowledging challenges such as supply chain disruptions due to the Red Sea situation.

The conversation also delves into Audi's product lineup, expansion plans, and the company's approach to electric vehicles (EVs). Dhillon highlights the importance of a stable policy regime and addresses potential competition, emphasising the need for a level playing field.

Regarding EV infrastructure, Audi is experimenting with high-speed charging stations, especially on highways, to meet the demand for quick refills. Dhillon touches on the broader EV landscape in India and welcomes more players, believing that increased competition will benefit the entire industry.

The interview concludes with discussions on Audi's production capacity, expansion plans for workshops and outlets, and the overall growth potential of the luxury car market in India.

Tune in for a detailed conversation.

Host: S Ronendra Singh, Producer: Nabodita Ganguly

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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.

Most investors spend a lot of time hunting for the right stocks, mutual funds and bonds to invest in. But one decision that plays a far bigger role in your long-term investment results is asset allocation. In this Personal Finance podcast from Business Line, Nitin Shanbhag, Head of Investment Products at Motilal Oswal Private Wealth talks to Aarati Krishnan, Consulting Editor, on the outlook for a range of asset classes and how investors should allocate to them. Nitin has 17 years of experience in markets and advises high net worth and ultra-high net worth clients on asset allocation and investment strategy.

The top-of-mind question for most equity investors today is if the market is too expensive and whether it is time to book profits in their equity portfolios, after indices have breached lifetime highs. Mutual fund houses use models based on the Nifty50 PE and Price to Book value, to make this decision.

Asked if this is the right time to be booking equity profits based on Nifty PE, Shanbhag explained that Motilal Oswal uses a proprietary model, based on many variables beyond the Nifty PE/PBV to make this call. His view is that investors can still allocate to equities because strong earnings underpin the recent market rally. He however cautions that the mid and small-cap segments are expensive relative to long-term averages while large-caps are still at long-term averages.

Stocks and bonds seldom offer investing opportunities at the same time. But today we are in a position where interest rates have climbed significantly. Long term government securities in India now offer close to a 7.4% yield, while highly rated corporate bonds offer close to 8%. Mr Shanbhag says that with interest rates likely to decline over time and Indian g-secs being included in global bond indices, long duration g-secs offer a good investment option, both as direct investments and via the mutual fund route.

But to capitalise on the flat yield curve, investors need to explore multiple regular income options ranging from g-secs to bonds and REITs or Invits. Private credit vehicles are also a good alternative right now, he feels.

On a question on why gold has not really outperformed despite crises such as Covid and the Russia-Ukraine and Israel-Hamas conflicts, he points out that gold has delivered a pretty good return of 15% in 2023. He recommends gold mainly as a portfolio hedge to investors holding high allocations to risk assets like equities. Sovereign gold bonds are the best vehicle to buy gold as their coupon of 2.5% in effect allows you to invest in gold at a discount to the prevailing market price.

Finally, asked whether the 100 minus age rule really works for asset allocation, he replies that investors need to factor in many other variables to decide on their asset allocation. He asks investors to prepare an investment charter that lists out their income, savings, financial goals etc to arrive at an asset allocation plan.

Tune in for a detailed conversation.

Host: Aarati Krishnan, Producer: Siddharth Mathew.

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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 

In this episode of the State of the Economy podcast, businessLine’s Ayushi Kar speaks to Vivan Sharan, Partner, Koan Advisory Group, focusing on the recent developments in the the country's legislative landscape, particularly honing in on two crucial bills that are shaping the digital and telecom sectors. 

The discussion kicks off with Ayushi probing Vivan about the industry's reactions to the bill, especially its exclusion of explicit references to the regulation of over-the-top (OTT) services. Vivan highlights the relief within the industry, emphasising the specialised nature of telecom laws meant to govern data carriage. 

Vivan sheds light on the distinction between content and carriage, emphasising the importance of avoiding regulatory confusion. 

Ayushi then addresses concerns about potential future regulations on internet firms and OTT services. Vivan dismisses these concerns, pointing out the clarity in the legislative intent and emphasising the need to treat different technologies differently. 

The podcast goes on to explore the complexities arising from their attempt to define broadcasting broadly. Vivan criticizes the bill's failure to recognise the fundamental differences between broadcasting services and OTT platforms. He discusses the need for specialised treatment for OTT services and critiques the lack of specificity in content regulation guidelines. 

In the latter part of the podcast, Vivan provides a detailed analysis of the shift from auction to allocation in the broadband market, examining how this change benefits new entrants, particularly satellite internet firms. He discusses the challenges of efficiently managing spectrum allocation through auctions and how administrative allocation addresses these concerns. 

The discussion concludes with insights into the impact of the bill on business rights, content regulation, and potential challenges in implementing such regulatory frameworks. 

Host: Ayushi Kar, 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 

In this episode of the State of the Economy Podcast, Amiti Sen speak to Ajay Srivastava, former Indian Trade Service Officer and Co-founder of the Global Trade Research Initiative, to know more about the escalating Red Sea crisis and its implications for India and the world. 

Since November 2023, Yemen-based Houthi militia have targeted cargo ships in the Red Sea, claiming solidarity with Palestinians in Gaza.

As tensions rise, 95% of vessels have rerouted around the Cape of Good Hope, adding 4000 to 5000 nautical miles and 15 to 20 days to journeys. The implications are far-reaching, impacting freight costs, delayed deliveries, and potentially disrupting global supply chains. 

The sectors hit hardest, including refined petroleum, chemicals, plastics, and basmati rice. The rerouting affects 20-25% of India's total merchandise trade, particularly impacting cargo bound for Europe, the US East Coast, North Africa, and Russia. 

The podcast looks at the complexities and uncertainties surrounding crude oil imports, focusing on potential impacts on prices and alternatives. 

The podcast ends with a stark reminder of the uncertainties surrounding the Red Sea crisis. Will tensions escalate or de-escalate? Stay tuned for further developments. 

Host: Amiti Sen, Producer: Siddharth Mathew.

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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 

In this episode of the State of the Economy Podcast, Chitra Narayanan talks about the sphere of social media marketing with Shiv Shivakumar, operating partner at Advent International, and Vikas Chawla, co-founder of Social Beat.

The guests share their insights on the trajectory of social media marketing, especially in the wake of Google’s pledge to phase out third-party cookies from Chrome, a move poised to reshape the digital advertising landscape.

What sets social media apart as the preferred channel for Chief Marketing Officers (CMOs) in the coming years? How has the paradigm shifted from traditional marketing models to a focus on influencing the path to purchase?  

Shiv Shivakumar breaks down the essence of social media marketing, emphasising its real-time engagement and the constant need to stay relevant in a rapidly changing landscape. 

Vikas Chawla adds his perspective, highlighting the surge in social media usage, particularly among India’s half a billion active users.

The discussion takes one through the challenges of maintaining authenticity amidst the rise of short-form video content and the impact of consumer rebellion in the social space.  

With the rebranding of Twitter as “X” and the launch of Meta’s Threads, Vikas Chawla talks about which channel might dominate in 2024.  

The podcast also explores the commoditisation of social media and the emergence of a rebellious streak among consumers, leading to trolling and abusive posts. Shiv Shivakumar sheds light on the psychological aspects that drive such behaviour, emphasising the need for brands and marketers to navigate this delicate terrain. A case in point is the row over the Maldives—how a remark on social media has led to a flashpoint between India and the Maldives and impacted the travel industry.

The podcast concludes with the advantages of digital-first brands in the realm of social media and influencer marketing in 2024.

Host: Chitra Narayanan.

Producers: Siddharth Mathew, Renil S Varghese

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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 

In the latest State of The Economy podcast, Shishir Sinha and Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank, discuss various economic indicators, offering insights into the current financial landscape and anticipating the upcoming budget. 

From robust GST collections to a 50% improvement in fiscal deficit over eight months, Sinha and Bhardwaj explore the key takeaways from this. Upasna Bhardwaj emphasises the economy's resilience across different sectors, despite monetary tightness, and touches on early signs of consumer fatigue, particularly in the rural segment.  

The discussion navigates through the global economic scenario, which has proven stronger than anticipated, offering support to India's export-led sectors.  

The podcast scrutinises both sides of the economic coin, addressing concerns about potential fatigue seen in GST collections. Upasna provides insights into the Y-o-Y growth, predicting a stabilisation in the monthly run rate around 1.6 lakh crore.  

The discussion also includes recent PMI manufacturing and core sector data, exploring the impact of seasonality and a potential slowdown in manufacturing activity.  

Supply chain disruptions and geopolitical uncertainties take centre stage as potential worries for the Indian economy. Bhardwaj acknowledges the risks but maintains a balanced perspective, highlighting the ongoing global challenges.  

The podcast further unravels the fiscal deficit scenario, with Bhardwaj offering a detailed analysis of direct tax collections, excise duty, and expected windfalls from RBI dividends. 

Inflation becomes a crucial focus, with Upasna shares expectations of a peak around 6%, driven by food inflation. The discussion anticipates moderation in the coming months, with a yearly overall inflation rate of approximately 5.5%.  

At the end, Shishir and Upasana talk about whether this year we will have an interim budget or vote of account and what to expect on the policy front. 

Host: Shishir Sinha; Producer: Siddharth Mathew Cherian

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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 

In this State of the Economy Podcast episode, Captain Nikunj Parashar, Founder and CEO of Sagar Defence Engineering Private Limited, and businessline’s Dalip Singh discuss the latest developments in the defence sector, expectations from 2024 budget, challenges faced by the start-ups and the innovative journey of his company, Sagar Defence, established in 2015. The startup focuses on cutting-edge naval solutions.

Captain Parashar, a merchant marine and alumnus of IIM Ahmedabad, highlights the challenges faced in the initial years, emphasising the importance of the Make in India initiative. His company specialises in autonomous maritime technology, with a focus on platform-agnostic solutions for the Indian Navy. The company's achievements include developing the country's first unmanned surface vehicle and gaining acceptance from the armed forces.

The discussion delves into Sagar Defence's recent success with a contract under the IDEXX Dio's Sprint Initiative, involving autonomous weaponised boat swarms. Captain focuses on the core technology behind their platforms, such as radio control target boats and unmanned surface vehicles, enabled by platform-agnostic hardware and embedded software developed in India.

The podcast also explores Sagar Defence's expansion into different domains, including aviation and maritime, with projects like ship-based drones and underwater vehicles for mine countermeasures. Captain Parashar discusses the company's entry into the commercial sector, particularly in Europe, focusing on applications like wind farm inspection using their drone technology.

Addressing concerns about funding for startups in the defence sector, Captain Parashar acknowledges the positive steps taken by initiatives like IDEXX but at the same time stresses on the need for additional funds, possibly through alternative investment avenues.

The conversation concludes with insights into the broader defence startup ecosystem, the role of organisations like SIDM, and Captain Parashar's expectations for increased funding and support in the upcoming budget. He emphasises the importance of a robust semiconductor industry for India to become a self-reliant arms exporter, highlighting the need for collaboration between larger defence companies and startups to foster growth in the sector.

(Host: Dalip Singh, 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 

In this episode of the State of the Economy podcast, Ankit Mittal, the CEO and co-founder of Sheru, India's first vehicle-to-grid (V2G) start-up, discusses the revolutionary technology that allows electric vehicles (EVs) to transfer power back to the grid. Sheru, founded by Mittal in 2019, serves as a virtual energy storage platform for the renewable and EV sectors. 

V2G technology enables EVs to offer services similar to those offered by traditional batteries, such as energy storage, power backup, and grid balancing. Sheru's patented battery vending machines allow for a bidirectional flow of energy between the grid and EV batteries, creating a global-first innovation. This unique approach brings together a large capacity of idle batteries in a battery-swapping ecosystem, offering scalable energy storage solutions. 

Mittal emphasises the three key components of V2G technology: hardware-level integration of inverters, software coordination for charging and discharging, and market mechanisms for vehicle owners to participate in grid balancing. 

Discussing the advantages, Mittal points out that V2G expedites electrification by reutilizing the capital expenditures in EVs for grid balancing, contributing to the energy transition. He estimates a potential 30 per cent reduction in the levelized cost of storage for the grid by implementing V2G, resulting in a more cost-efficient and sustainable energy system. 

Mittal also touches upon the challenges, acknowledging the early stage of V2G adoption and the need to further examine cost implications, battery life impact, and infrastructure upgrades. However, he emphasises the importance of making V2G work rather than doubting its feasibility. 

The conversation concludes with a glimpse into Sheru's plans, aiming to scale up its aggregated capacity to 1 to 1.5 gigawatts in the next two years and address India's massive energy storage requirements for achieving electrification targets. Mittal envisions a collaborative ecosystem where V2G technologies play a pivotal role in the energy transition, highlighting ongoing initiatives like the UPI-based United Energy Interface (UEI) protocol and reforms by the Ministry of Power to digitise and streamline processes in the energy sector. 

(Host: Rishi Ranjan Kala, Producer: Nabodita Ganguly)

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 Indian IT sector has had a tumultuous year. The sector transitioned from a double-digit growth phase that characterized its momentum a year ago due to macroeconomic challenges globally. In this episode of the State of the Economy podcast, businessline's Haripriya Sureban talks to  Vineet Nayar, Former CEO of HCL Technologies, to get a nuanced understanding of the Indian IT industry's performance this year.

In this episode, they reviewed the year that went to understand how the IT sector coped with substantial headwinds due to economic slowdowns and global conflicts. Concurrently, there was a significant acceleration towards digitalisation and the adoption of Artificial Intelligence reached a new high. The IT companies responded to these opportunities and challenges differently — some investing in new capabilities, while others reduced costs and investments.

Nayar highlighted this dichotomy. He noted that companies that invested in new services and innovation, and those that adapted to the changing market dynamics were poised for potential dominance once sentiments improved. In contrast, those curtailing investments might see immediate financial gains, but could jeopardize their long-term relevance and competitive edge.

He emphasised the need for structural changes, including transforming from traditional operational models to embracing new skill sets, consulting mindsets, and talent from top universities. He noted that this would require significant adjustments in management styles, employee treatment, and organisational strategies.

Listen to the podcast to gain an understanding of why the Indian IT sector needs to transform itself to align with the evolving market demands and technological advancements.

(Host: Haripriya Sureban, Producer: V Nivedita)