businessline's State of the Economy Podcast

In this State of the Economy podcast, businessline’s Dalip Singh is joined by Shivaraman Ramaswamy, co-founder of Big Bang Boom Solutions Private Limited, who shares valuable insights as a start-up founder in the defence sector and the challenges that are faced.

Regarding the Innovations for Defence Excellence (iDEX) scheme, Ramaswamy expresses optimism about its potential and explains the various steps involved, from challenges and problem statements to project selection and the advantages it offers, such as funding and end-user engagement.

He also discusses his experiences with engagement across the three defence services, noting the proactive approach of the Navy and the efforts made by the Army and Air Force to collaborate with start-ups.

Ramaswamy shares his thoughts on engaging with both defence PSUs and private sector companies, highlighting the challenges faced by start-ups when working with defence PSUs. In contrast, private sector companies have been more open to collaboration, often through joint tenders.

The conversation touches upon issues related to procurement, including the need for better policies, repeat orders, and eliminating barriers that hinder start-ups' participation.

Ramaswamy discusses the challenges related to credit ratings and how they impact start-up participation in tenders. He points out the need for changes in the tendering process to promote innovation.

The discussion then turns to the importance of investing in R&D and the lack of innovation in the Indian defence sector. Ramaswamy emphasises the need for a culture of innovation and a willingness to accept failures as part of the R&D process.

Lastly, he stresses the importance of inter-ministerial cooperation between the Ministry of Defence, the Ministry of External Affairs, and the DGFT to promote Indian defence exports, facilitate customs clearance for defence goods and improve the overall defence ecosystem in India.

(Host: Dalip 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

In this episode of the State of the Economy podcast, businessline’s Jyoti Banthia speaks to Sanjay Jain, Partner, Bharat Innovation Fund, and Shilpa Mankar Ahluwalia, Partner, Shardul Amarchand Mangaldas & Co, about the trends in the fintech sector in India. 

The industry has witnessed a staggering 168 per cent surge in funding during the third quarter of 2023, a significant leap compared to the previous year.  

India ranked as the world's third-largest start-up ecosystem with almost 1,00,000 startups, stands as a robust contender in the global arena, trailing only behind the United States and China. 

A prevailing trend highlighted in the podcast is the extensive use of sophisticated tools incorporating data analytics and artificial intelligence. Fintech companies are harnessing customer behaviour data to tailor financial solutions, ultimately fueling the growth of digital lending and alternative credit options, which are increasing access to credit for traditionally underserved segments. 

Furthermore, the adoption of Central Bank Digital Currency (CBDCs) is a pivotal development. India has taken the lead in this sphere, announcing plans to adopt wholesale and retail digital currencies, paving the way for their wide-scale utilisation in payment systems. 

The growing importance of regulatory technology is also evident, aiding fintech players in navigating the evolving regulatory landscape. 

The discussion extends to the transformation of fintech platforms into comprehensive financial service providers, to become one-stop solutions for a broad range of financial needs. 

This strategic approach leverages the synergy of offering multiple products to the same customer base. 

As the fintech sector matures, the focus is shifting towards profitability, enhanced corporate governance, and regulatory compliance. Investors are paying closer attention to these factors, leading to more judicious funding strategies. Notably, there is an increasing emphasis on data protection and the enhancement of consumer safeguards, with the anticipation of an upcoming data protection bill. 

Despite the escalating regulatory landscape, the fintech sector continues to be a hotbed of innovation, with the introduction of novel products, technologies, and business models constantly shaping the industry.  

The conversation also touches on the challenges of coordinating across regulatory boundaries. It underscores the need for proportional regulation that can accommodate the diverse requirements of startups and established players in the sector. Listen in.  

(Host: Jyoti Banthia, Producer: Amitha Rajkumar & 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 the past decade, the government’s seriousness in transforming the country into a global manufacturing hub reflects in its seriousness on respecting execution timelines as well as the uptick in spending coupled with focus on large infrastructure projects.

Speaking to businessline as a guest on the State of Economy (SoE) podcasts, Rahul Prithiani, who is the Global Head for Energy and Sustainability, Consulting at CRISIL Market Intelligence and Analytics, said that in the last 10 years, India’s has clearly demonstrated its seriousness in becoming a $5 trillion economy.

On major changes India witnessed in the last decade, he opined that there has been a gradual acceleration in spending by the government. Furthermore, a lot of sector specific policy activity across sectors has taken place, which led to relatively faster execution of projects.

“I think it's very clear in terms of scale, ambition and as we move towards being a $5-6 trillion economy by the turn of the decade, we will see relatively larger investments in infrastructure on energy and transportation, two key elements in the entire piece. If you look at the energy space, the power sector is expected to see a demand growth of over 6 per cent also over the next 5 to 7 years, which is a fairly large number,” he elaborated.

To achieve this, Prithiani said the government will have to constantly review its policies to make sure that the regulations and policies continuously evolve with the changing environment, advent of green finance and the need for sustainability.

At least our expectation is that over the next 6-7 years, India is expected to grow in the region of 6-7 per cent, which would mean a need for extensive infrastructure,” he emphasised.

On whether India’s image as an investment destination has undergone any change in the past few decades, Prithiani said that there is an acknowledgement of the sincere efforts being made by the government.

“People do acknowledge (that) there are policy related challenges, but as long as there is a response to those problems and we are evolving that is something I think most people are building in their overall investment thesis,” he added.

Asked if announcing future capacity adding and bidding trajectories by the government helps investors make more informed decisions about India, Prithiani said that announcing timelines does offer better visibility about the sector. However, commitment to deliver is the key.

“The key is that you should be able to deliver on those targets and that the commitment seen will continue to remain. What we are able to deliver compared to what our plans are. So, that is something to watch out for,” he opined.

(Host: Rishi Ranjan Kala, Producer: Darshan Sanghvi)

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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 episode of State of Economy hosted by Shishir Sinha, Devendra Kumar Pant, Chief Economist, India Ratings and Research (Ind-RA) provides insights into India's current economic situation. 

The podcast discusses various high-frequency economic indicators that reveal a mixed picture for the Indian economy.

The podcast begins with a discussion on the recent Goods and Services Tax (GST) collections, which reached ₹1.72 lakh crore, the second highest since the inception of GST. Pant cautions against jumping to conclusions based on a single month's data and highlights the factors contributing to this growth.

The conversation then delves into the implications of this GST growth on India's fiscal deficit. The budget had estimated a deficit of 5.9%, and the discussion explores the possibility of achieving this target in light of the economic trends.

Next, the podcast examines the core sector numbers, focusing on the auto sector's dispatch and the PMI manufacturing index. Despite some fluctuations, Pant emphasises that India remains in an expansionary mode, which is crucial for sustaining economic growth.

The podcast also looks at concerns about inflation due to lower agricultural output caused by a below-normal monsoon. The discussion highlights the impact of agricultural growth on India's economy and the potential consequences for inflation, monetary policy, and overall growth. 

Pant concludes by projecting that India's inflation is likely to stabilise at around 5 per cent, emphasising the importance of the 4 per cent inflation target set by the Reserve Bank of India.

(Host: Shishir Sinha; Producer: Siddharth MC)

Cartels represent a serious threat to competition, innovation, and consumer welfare. Leniency programmes on the other hand play a crucial role in the battle against cartels by providing a strong incentive for cartel members to expose their illegal activities. 

These programmes have proven their worth by detecting and dismantling cartels, imposing fines, and creating a culture of competition compliance within the business community. However, ongoing international cooperation and effective enforcement are essential to ensure that leniency programs continue to serve as a powerful deterrent to cartel behavior, ultimately fostering a fair and competitive business environment.

So why are cartels bad and frowned upon by Competition authorities. 

This is because Cartels result in market distortion (by artificially manipulating prices and reduce competition); bring economic inefficiency; do consumer harm (inflating prices) and stifle innovation.

WHAT IS LENIENCY PLUS?

The current Competition Act 2002 already has a leniency programme, which allows companies that provide sufficient information about a cartel in which they have participated to receive partial immunity from penalty. Such a programme helps competition authorities to discover secret cartels and to obtain insider evidence of the infringement. 

Under the existing leniency (lesser penalty rule) framework, CCI may impose a lesser penalty on a person involved in a cartel if such person has made a full and true disclosure in respect of alleged violations and such disclosure is vital.

Under ‘Leniency Plus’, a cartelist who is cooperating with CCI for leniency, can disclose the existence of another cartel in an unrelated market in the course of original leniency proceedings in exchange for an additional reduction in penalty.

Leniency Plus is a proactive antitrust enforcement strategy aimed at attracting leniency applications by encouraging companies already under investigation for one cartel to report other cartels unknown to the competition regulator. 

The benefit that would entail from such disclosure is reduction of penalty in the first cartel to the person disclosing the information, without prejudice to the company obtaining lesser penalty regarding the newly disclosed cartel.

CCI’s MOVE

Now with the CCI looking to introduce a ‘Leniency Plus’ framework, BusinessLine spoke to M M Sharma, Head of Competition Law Practice at Vaish Associates Advocates in our BL State of the Economy Podcast to get a deep dive into the proposed Leniency Plus programme and understand the shortcomings of the current Leniency regime.

Sharma came up with solid reasoning to conclude that “Leniency Plus” in India is a welcome and desirable initiative, but may not yield results in the absence of rewards and a whistleblower programme besides stressing the need for immunity from private damages.

(Host: Srivats K R, Producer: Darshan Sanghvi)

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.

Ever since Hamas attacked Israel on October 7, gold has moved up sharply before stabilizing. However, experts have not ruled out a rise in prices. This comes at a time when Dhanteras and Diwali are just days away. How will gold prices behave during the festival season? In this State of this Economy podcast, MR Subramani talks to Navneet Damani, Senior Vice President and Head of Research for Commodities at Motilal Oswal Financial Services Limited, to understand the outlook for the precious metal. 

The discussion primarily revolves around the surge in gold prices due to rising geopolitical tensions in West Asia. Damani explains that such events often lead to a spike in gold prices, citing previous instances like the Russia-Ukraine conflict.

He believes that gold prices are likely to remain stable in the short term in India, but notes that factors like inflation will also have an impact on the prices. He explains that agricultural trends influence will impact gold demand.

Regarding silver, Damani highlights a potential deficit in supply globally, with Chinese demand playing a significant role. He suggests that silver might outperform gold over the next 6 to 12 months. 

He points out that the current conflict has led to a more moderate price increase for crude oil, compared to other past geopolitical events. He attributes this to a different economic and inflationary landscape. While some increase in inflation is expected, he doesn't foresee a dramatic spike akin to 2022.

Host: MR Subramani, Producer: V Nivedita.

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, Parvatha Vardhini C, Editor of bl.portfolio, talks to Rahul Singh, CIO - Equities at Tata Asset Management, about the way ahead for the Indian equity markets.

Rahul Singh speaks n how high interest rates are a negative for risk assets , including equities and says that he expects Indian markets to move sideways or consolidate this fiscal. The episode explores the opportunities and challenges that lie ahead for investors.

The podcast delves into the sectors that hold growth potential and emphasizes the need to remain vigilant when evaluating investment opportunities at this point in time. Rahul Singh shares his insights on choosing between largecap and mid/small caps stocks, and they discuss the significance of balancing risk and reward as well as the need to be able to buy the stock one wants at the price one wants.

The podcast also takes a look at the recent Q2 earnings results. Rahul Singh offers his analysis of these results and provides insights into what to expect for the rest of the year as everyone navigates economic uncertainties.

Rahul Singh sheds light on why India is poised to perform relatively well compared to other emerging markets, even in the face of global economic shifts.

Host: Parvatha Vardhini C, Producers: V Nivedita, Siddharth MC

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.

With rising interest rates, Indian bond markets today offer exciting investment opportunities. Government bonds for 5- to 10-year-terms are offering yields of about 7.2-7.4% while AAA-rated corporate bonds offer yields that top 8% p.a. Investing in bonds has traditionally been a cumbersome process for Indian investors. But new online bond platforms - regulated by SEBI - have greatly simplified the experience and opened up easy access to corporate bonds.

To understand what’s on offer on such platforms and how investors should choose suitable bonds, Aarati Krishnan, Consulting Editor with Business Line, spoke to Vishal Goenka, Co-Founder at Indiabonds.com. Indiabonds is one of the largest online bond platforms regulated by SEBI. Goenka, who is responsible for driving strategic growth and innovation at the platform, was earlier Managing Director at Deutsche Bank Singapore, Global Markets, and held leadership roles with Merrill Lynch and RBS. He has over 20 years of experience in global fixed-income markets.

Vishal Goenka highlighted that investing in bonds via the exchanges has traditionally been tough for retail investors, because of the lack of ready information on the issuer, terms of the bond, the traded price (whether inclusive of interest or not) and so on. Online platforms like Indiabonds.com have made retail investments easier by presenting all the relevant information, including the information memorandum and the cash flows an investor can expect from a bond, in an easy format.

Asked how listed NCDs available on regulated bond platforms compare to other high-yield options like invoice discounting or peer-to-peer lending, Vishal cautioned that the two were not comparable at all. Invoice discounting is essentially lending to an unknown business based on its receivables and can be highly risky depending on how the underlying business fares. Characterising such products as “bull market instruments” Goenka cautioned that risks in such instruments can mount, should there be a blip or downturn in the economic or business cycle. Fixed income products such as invoice discounting are also not regulated. P2P lending is regulated to an extent by RBI, but it essentially represents lending to a pool of individuals whose risk profile may be difficult to assess. Listed NCDs bought from online bond platforms, in contrast, are SEBI-regulated products. They offer complete financial disclosures to the retail investor buying them.

Asked how investors can navigate the risks that come with high-yielding bonds, he replied that unlisted bonds and bonds rated BBB etc could be avoided by retail investors to mitigate risks. If investing in lower rated corporate bonds, perpetual bonds or subordinated bonds of banks, investors ought to demand a higher premium for the risks in terms of the yield they are earning from the bond. Goenka suggested that retail investors making a start on bond investing can start with low-risk AAA issuers and experience a rate cycle, before moving on to lower-rated or perpetual options that entail more risk.

Tune into the podcast for this and many more insights.

(Host: Aarati Krishnan)

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 sectors that deal with communication in India are seeing a wave of regulatory changes. How will these new regulations affect these sectors? In this episode of the State of the Economy podcast, businessline’s Ayushi Kar and Rentala Chandrashekhar,Chairman, Centre for The Digital Future, Former Secretary Telecom and IT and former President, Nasscom, discuss critical issues in the realm of digital communications, regulations and the implications of the Digital Personal Data Protection Act, 2023. 

In the podcast, the panel discuss the debate on net neutrality, especially concerning Over-The-Top (OTT) players and balancing the interests of the telecom companies and OTT players. They also discuss the financial pressures face by telecom companies, pricing models and profitability.

Rentala Chandrashekhar shares his opinion on the Personal Data Protection Act and how its impact on user privacy. He also describes how introducing regulation in this space is complex, especially due to its globalised nature, and some of the challenges associated with it.

Overall, the conversation highlights the need for nuanced approaches to regulation, considering the unique challenges and opportunities presented by the evolving digital ecosystem. Listen in to gain insights about how policymakers can strike a balance between fostering innovation and protecting user interests.

(Host: Ayushi Kar, Producers: Anjana PV, V Nivedita)

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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, Jayasree K. Iyer, CEO, Access to Medicine Foundation, talks to businessline’s Jyoti Dutta on the state of generic drug accessibility. The foundation recently released a report highlighting the need for improved access to generic drugs, which are more affordable alternatives to innovative medicines. 

The report emphasises that generic drug manufacturers must not rest on their laurels but instead work to make drugs more accessible. It points out that 90% of medicines classified as essential by the World Health Organisation fall under the category of generics, including treatments for various critical conditions such as cancer, heart disease, diabetes, and more. However, there is a global shortage of generic medicines, preventing millions of people from accessing essential medications. 

One reason for this inaccessibility is the failure of drug makers to register their products in low and middle-income countries. This oversight can result from assumptions that other generic manufacturers are already present, low returns on investment, and a focus on high-income markets like the US and Europe. The report suggests that manufacturers have the potential to expand their reach in these countries, making essential drugs available to more populations. 

The episode also discusses adaptive research, specifically in pediatric medicines. Generic companies are engaging in research and development to tailor products to the needs of people in low and middle-income countries. These adaptations aim to improve adherence and make medicines more accessible. 

Furthermore, patient assistance programs are essential to expanding access to medicines. These programs focus on diseases treated in specialized hospitals and ensure that the cost of treatment remains affordable for patients. 

The episode also explores issues of quality control and trust in the Indian pharmaceutical industry, following incidents of contaminated cough syrups. It emphasises the need for stricter adherence to good manufacturing practices and upgrading manufacturing facilities to ensure product quality. The podcast addresses the current global crises, including wars, energy shortages, and climate change, all of which intensify the need for essential medicines.

(Host: Jyoti Datta, 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.