businessline's State of the Economy Podcast

In this episode of the “State of the Economy Podcast, Jyothi Datta and Dharmil Sheth, co-founder of PharmEasy, discuss the importance and role of online pharmacies in the healthcare system. The conversation addresses various aspects of the online pharmacy industry, including regulation, compliance, concerns from traditional pharmacies, and data protection.

Sheth explains that online pharmacies act as intermediaries between patients and pharmacies, ensuring the safe and convenient delivery of medicines across the country. He emphasises the industry’s compliance with prescription requirements and data protection laws.

The discussion covers the challenges faced by the online pharmacy industry, such as concerns about prescription abuse and antibiotic resistance. Sheth argues that these issues exist in both online and offline formats and that the focus should be on solving industry-wide problems. He highlights the benefits of technology in addressing these challenges and ensuring a level playing field for all pharmacy businesses.

He also talks about discounts and advertising, stating that online platforms offer discounts based on partner retailers’ margins and that cross-selling and upselling contribute to patient retention. Regarding data protection, he assures that online platforms follow strict guidelines and store patient data securely within India. He calls for industry-wide solutions rather than targeting online platforms alone.

Listen in!

(Host: Jyothi Datta, Producers: Jayapriyanka J, 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

In this State of the Economy podcast, Nivedita discusses the world of gig workers and the challenges they face in obtaining social security. Joined by Professor Bernali Bandari from the National Council of Applied Economic Research, the discussion sheds light on the complexities of defining and understanding platform workers in India. Professor Bandari unveils the unique characteristics of platform work in the Indian context, emphasizing the role of online labor intermediation in differentiating platform workers from traditional laborers.

The episode also talks about the recent report published by NCAER, which provides crucial insights into the gig economy. It explores how gig workers in India differ from those in developed countries and the implications for social security policies. The conversation highlights the transformation from trust-based to transactional contracts and the evolving concept of formality in the gig economy.

Professor Bandari discusses the distinctions between active, inactive, part-time, and full-time platform workers, revealing their motivations and backgrounds. The study uncovers the reasons behind workers joining the gig economy and how their tenure affects their perspectives on this evolving employment landscape.

Listen in!

(Host: Nivedita V, Producer: Jayapriyanka J)

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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, Ashish Khandelia, founder of Certus Capital, discusses various aspects of the private credit market and real estate trends in India. 

The private credit market in India has gained popularity in recent years, with significant growth following the IL&FS crisis in 2018. Foreign institutional investors initially filled the liquidity gap in the market, but domestic fund managers, family offices, and high-net-worth individuals have also become active participants in private credit investments. Over the last few years, the market has seen over $15 billion in private credit transactions, with real estate being a significant portion of it. 

The Indian real estate market has experienced an upcycle, driven by factors like increased affordability, rising salaries, and reasonable mortgage rates. This trend is expected to continue for the next few years, maintaining healthy levels of demand. 

Regarding mortgage rates, Khandelia does not anticipate a significant increase in rates, as India is in a better position compared to many other countries. Despite a 2 per cent increase in rates over the past year and a half, it has not significantly impacted demand for real estate. 

Private credit opportunities in India are evolving, with growth opportunities and special situations being prevalent. Major cities like Mumbai, Bengaluru, Hyderabad, and NCR are showing robust growth in various real estate segments, including residential, warehousing, and data centres. 

Family offices in India have become significant investors in real estate and private credit. As generational shifts occur, wealth is being converted into family offices, and they are increasingly looking for opportunities in these asset classes. 

On being asked about Certus Capital’s plan for the next five years, Khandelia says that the company aims to participate in the growth of India's alternative credit market, expanding beyond real estate to various credit categories. 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. 

Many companies are undergoing a rebranding exercise. Some of these rejigs were appreciated, while others evoked strong criticism. So, what rules and principles companies should follow? In this episode of the ‘State of the Economy' podcast, businessline’s Chitra Narayanan talks to management guru Shiv Shivakumar, and Darshan Gandhi, Global Head, GCPL, about why logos play an important part in a company’s identity rejig.

The panel analysed the evolving nature of logos and identities in today’s fast-paced world, where technology, sustainability, equality, and inclusivity play significant roles. The experts highlighted logos play an important role in creating instant brand recognition as it can help consumers identify the product and connect with brands.

They also pointed out that logo changes are often more about the internal transformation of a company and its response to changing societal and economic dynamics. They acknowledge that while some resistance to logo changes is expected, but believe that a well-executed redesign can enhance a brand’s identity and communicate its values effectively.

Listen to this podcast, to know more about why logos will stay relevant in the branding landscape and why brands need to adapt to meet evolving consumer expectations.

(Host: Chitra Narayanan, Producer: 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. 

The landscape of FinTech sector in India is undergoing a remarkable transformation. In this State of the Economy podcast, Sanjay Doshi, Partner at KPMG Deal Advisory, and Pranav Pai, Founding Partner, and CIO, 3one4 Capital talks to businessline’s Jyoti Banthia on the growth of FinTech in India.

The FinTech ecosystem in India can be broadly categorised into three segments. The initial phase of FinTech was primarily driven by payments, with innovative companies pioneering digital payment solutions. Subsequently, FinTechs expanded their horizons to lending, wealth management, and insurance, either as distributors or product manufacturers. The third segment involves FinTechs acting as enablers and service providers for established financial institutions such as banks and NBFCs.

Investment has been a vital factor fuelling the growth of FinTech in India. Over the years, the sector has attracted substantial investments, with over $25.8 billion poured into FinTech ventures since 2014. While the pace of investments may have tempered in recent times, this is seen as a temporary phase, with investors recalibrating their strategies.

Furthermore, the regulatory landscape has been crucial in shaping the trajectory of FinTech in India. The Reserve Bank of India has introduced guidelines to ensure the responsible growth of the sector. These regulations have aimed to strike a balance between encouraging innovation and safeguarding the interests of consumers and the financial system.

One notable development is the concept of Self-Regulatory Organisation. SROs could provide a collaborative platform for FinTech companies to collectively address challenges and establish industry standards, fostering a more mature and accountable ecosystem.

The FinTech sector in India is poised for sustained growth, driven by innovation, investments, and a collaborative approach to regulation. It continues to be a beacon of opportunity for both startups and established financial institutions, promising a future where technology revolutionizes financial services for the benefit of all stakeholders.

Listen to the podcast!

(Host: Jyoti Bantia; Producers: Anjana PV, 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 edition of the State of the Economy podcast on Personal Finance, Roshi Jain, Senior Fund Manager at HDFC Mutual Fund talks to Aarati Krishnan on how investors can navigate the equity market with many speedbumps ahead. Roshi currently manages over $5 billion in assets for one of India’s largest mutual funds – HDFC Mutual Fund. A CA, CFA, and IIM-Ahmedabad alumna, has nearly two decades of experience managing equity funds. Prior to this stint with HDFC MF, she was with Franklin Templeton Mutual Fund and Goldman Sachs.

India, and indeed the world, is seeing a return of inflation, particularly in food crops, due to El Nino. In the long run, equities are the only asset that can beat inflation. But in the short run, can inflation damage growth and earnings? Asked her views on this, Roshi said that it is difficult to take a call on how long inflationary pressures from food can last. However, the government and RBI were working on a two-pronged approach to contain inflation. So, inflation can have a short-term impact on consumption spending. But it is possible to construct a portfolio with companies that can tide over such transient issues and equities that will beat inflation in the long run. Nothing so far, she said, has made her change her long-term projections for portfolio companies.She was among the early fund managers to spot value in corporate bank stocks, particularly PSUs. After the recent rally in these stocks, is there a runway to rise further?

Roshi said that select banks, due to their long-term competitive advantages will continue to do well, with sustained economic growth itself providing a growth runway for these banks. Bank balance sheets are well capitalized with healthy asset quality. She felt valuations were still attractive in the context of growth levers and the competitive situation. On the PSU versus private banks question, she pointed out that ownership is only one dimension of the decision to select banking stocks and there are many others. 

On the re-rating of PSU stocks, and whether structural changes justified it, Roshi talked of the need to look at both the business cycle and prospects of individual companies when it came to investing in PSUs. The business cycle being in favour of capex and infrastructure investments is playing out in favour of PSU stocks. So instead of generalizing and juxtaposing past performance with the future, we need to look at PSUs on their own merit.

Typically, in India, whenever general elections approach, equity markets turn very volatile. How does Roshi, as an equity fund manager, approach such an event?

Roshi replies that she keeps her sights firmly on long-term prospects of her portfolio companies and looks to such events as opportunities to acquire positions in good companies. Equities are a long-term instrument, and we are long term fundamental research-oriented investors. I believe that as long as we stay disciplined to our investment philosophy to our process, we should actually be able to take advantage of any short term volatility in order to create long term value for our investors. I think with that philosophy in mind, volatility actually becomes something that we can take advantage of, rather than be wary of.

(Host: Aarati Krishnan, Producers: Anjana PV, Nabodita Ganguly)

Gold has experienced significant price fluctuations in recent times. Colin Shah attributes this volatility to a combination of factors, including the stability of the US economy, high inflation rates, and lingering uncertainties in China and Europe.

Despite the turbulence, he anticipates that gold and silver prices will continue to rise in the coming quarters, primarily driven by inflation, interest rate movements, and geopolitical factors.

Regarding gold’s outlook, Colin Shah suggests that the upside potential could reach as high as $2,100 an ounce, while the downside risk is relatively limited, with a possible correction of around $50. Factors such as inflation data, employment figures, and interest rates are crucial in determining these price movements.

Regarding silver, Colin Shah notes that it has also experienced volatility but, interestingly, gold and silver tend to follow similar patterns. The demand for silver, especially during the gift-giving season around Diwali and Christmas, is expected to remain strong, potentially leading to price gains.

Colin Shah also touches upon the impact of external factors such as ongoing geopolitical tensions, like the Ukraine crisis, which can further influence precious metal prices.

Shifting to the Indian context, Colin Shah discusses the performance of the domestic precious metal sector over the past eight months. The industry has witnessed periods of strong retail demand followed by relatively slower phases. He attributes this volatility to various factors and anticipates a more stable and positive season ahead, driven by upcoming elections and an increase in wedding-related demand.

Regarding lab-grown diamonds, which are gaining acceptance as an alternative to natural diamonds, especially in Western markets. Colin Shah highlights government support and growing consumer interest, particularly in the US, where 30 per cent of engagement rings sold recently featured lab-grown diamonds. He predicts a promising future for the lab-grown diamond industry in the coming years.

Listen in for further insights! 

(Host: Subramani Ra Mancombu; Producer: Siddharth MC)

In the latest episode of the “State of the Economy Podcast”, Nivedita V discusses India’s recent economic performance and its impact on job creation with renowned economist Ashoka Mody. Mody is Charles and Marie Robertson Visiting Professor in International Economic Policy at the Princeton School of Public and International Affairs at Princeton University. He is also the author of EuroTragedy: A Drama in Nine Acts. 

India’s GDP grew by 7.8 per cent in the April-June quarter of FY23-24, and around 415 million people were lifted out of poverty in just 15 years. However, the challenge remains in generating sufficient jobs. Mody identifies historical factors contributing to India’s job creation issues, tracing back to Jawaharlal Nehru’s heavy industrialization strategy, which didn’t create many jobs. Meanwhile, East Asian nations excelled in labor-intensive industries like textiles and electronics. India’s lack of investment in human capital, especially education and female workforce participation, hindered its progress.

Mody emphasises the importance of mass education, good nutrition, and health in creating a skilled workforce. He criticises the focus on digital infrastructure, highlighting the necessity of human-to-human interaction in education. He calls for a system that generates quality teachers and gives them the respect they deserve, similar to Finland’s approach.

Regarding labor-intensive sectors, Mody opposes sector selection and advises creating conditions conducive to labor-intensive manufacturing. He argues for a cheaper rupee to boost exports, citing the success of East Asian economies in making their currencies attractive to international buyers.

Mody addresses the issue of women’s low workforce participation, attributing it to violence in urban areas and the mechanization of agriculture. He stresses the need for a safer environment and the importance of changing social norms.

In conclusion, India’s economic growth is promising, but job creation and education quality remain significant challenges. Addressing these issues requires a focus on mass education, quality teachers, and conditions for labor-intensive manufacturing, along with creating a safer environment for women in the workforce.

Listen in!

Host: V Nivedita; Producer: Jayapriyanka J

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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 the State of the Economy Podcast, Shishir Sinha talks to Aditi Nayar, Chief Economist, ICRA, about the strong GDP numbers, and how managing inflation in the coming quarters is crucial for the Indian economy.

One of the central themes of the episode is India’s GDP growth rate, which stands at a remarkable 7.8% for the April-June quarter, marking a significant leap from the previous quarter’s 6.1 per cent. 

GDP, GST collections, and the fiscal deficit, collectively paint an optimistic picture, indicating that India’s economy is on an upward trajectory, but what do these mean.

This state of the economy podcast takes a look into the factors behind this robust growth. Aditi cautions against comparing year-on-year growth due to the unique circumstances of Q1 FY24, which followed the initial recovery phase from the pandemic-induced lockdown in Q1 FY23.

Nayar offers a nuanced breakdown of the GDP growth, focusing on the anticipated performance of the manufacturing sector. She says that while corporate sector margins have improved thanks to declining commodity prices, interpreting growth is complex, especially considering the role of unorganised sectors and volume indicators.

Private consumption, investment activity, and government spending are the three pillars of economic stability discussed in detail. Aditi underscores the mixed trends in these areas, highlighting the resilience of private consumption despite inflationary pressures.

With the general election on the horizon, Aditi highlights the government’s efforts to front-load capital expenditure to ensure budget targets are met. Central tax devolution and the capex loan scheme also come into focus as indicators of the government’s commitment to infrastructure investment.

The podcast takes a deep dive into high-frequency indicators like the core sector’s growth and the manufacturing PMI, providing a thorough examination of their significance and potential impact on overall industrial production.

GST collections remain steady and support the fiscal landscape. However, inflation emerges as a concern, with fluctuating food prices and erratic monsoon patterns posing challenges.

Aditi hints at a cautious approach to revising the full-year GDP forecast, maintaining a 6% growth projection while acknowledging the dynamic nature of India’s economic landscape.

(Host: Shishir Sinha; 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

In this episode of the State of the Economy podcast on Personal Finance, Chirag Mehta, Chief Investment Officer of Quantum Mutual Fund discusses the outlook for bullion and the investment options in it with Aarati Krishnan. Chirag has tracked bullion and alternative assets for over two decades. 

Asked about why gold, despite being a safe haven, hasn’t really delivered blockbuster returns despite the many crises afflicting the world - from the pandemic to the Russia-Ukraine war and the current bout of inflation, Chirag explains that this could be due to some of these crises proving short-lived. In the Russia-Ukraine war, for instance, the impact has been contained because it has been restricted to the two nations without wider participation. Central banks have been in a rate hiking spree in recent times, and this has resulted in rising rates on treasuries and other instruments that compete directly with gold. He believes that gold has the potential to outperform, once central banks begin to withdraw liquidity and lower rates in response to a slowdown or recession.

Explaining how Gold Exchange Traded Funds score over Sovereign Gold Bonds (SGBs) as routes to own gold, he points out that ETFs have two attributes that help investors seeking diversification. They offer anytime liquidity which helps investors add to their exposure or reduce it depending on their asset allocation needs. They are also completely backed by physical gold, which isn’t the case with SGBs. This backing lends investors confidence that they are indeed owners of bullion.

On the question of some gold ETFs lacking liquidity and trading at market prices that are way off their NAV, he suggests that investors look at the Gold Savings Fund route to take their ETF exposure. Gold savings funds, which are open-end funds as institutions get to buy and sell gold ETF units at the right price and offer anytime liquidity to the investor. He notes that Quantum Gold Savings Fund charges very nominal fees. He believes that this is a good time to add gold ETFs to one’s portfolio as a diversifier.

(Host: Aarati Krishnan, 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.