businessline's State of the Economy Podcast

In the last three decades, the Indian aviation industry has witnessed many airlines, including NEPC, Kingfisher, Modiluft, and Jet Airways, enter the sector with a bang but fail to stay in business for long. The latest is Go First, which in recent months has been facing trouble and has sought voluntary insolvency. What does this latest episode of an airline threatening to go off the radar mean for the Indian aviation industry?

In this episode of the State of the Economy podcast, B Govindarajan of Tirwin Management talks to businessline’s TE Raja Simhan about the impact of airline pack-offs, the financial health of airlines, and more. Govindarajan acknowledges the recurring pattern of Indian airlines shutting down every two to three years, attributing it to various factors.

While in the past, it was seen as a mere alphabetical order, with airlines like Kingfisher and Jet Airways facing financial troubles, the recent closures of major airlines like GoAir have raised serious concerns. They analyse the role of taxes and fuel prices, often blamed for airline failures, but Govindarajan believes that these factors alone are not the main culprits. He emphasises the importance of deep knowledge and understanding of the aviation business, including regulatory frameworks and operational requirements.

While acknowledging that India has a strong foundation of airline knowledge, Govindarajan argues that there is a lack of managerial knowledge and expertise necessary to navigate the complexities of the industry. The absence of significant domestic leasing companies and reliance on foreign lessors also create challenges, such as fluctuating currency rates and a lack of understanding of leasing agreements.

Govindarajan proposes the development of national leasing companies and a unified leasing framework to bring stability and control costs for Indian operators. The conversation then shifts to the issue of aircraft diversity and configuration. They highlight the benefits of operating a fleet with a limited variety of aircraft types, citing examples from Air India and IndiGo. Standardising aircraft types reduces training, deployment, and inventory costs, providing internal economies of scale.

In summary, the episode delves into the recurring closures of Indian airlines, discusses the factors contributing to these closures, and explores possible solutions for strengthening the country's aviation sector. It emphasises the importance of deep knowledge, managerial expertise, and a unified leasing framework to address the challenges faced by Indian airlines and foster sustainable growth in the industry. Listen in.

(Host: TE Raja Simhan, Producer: Nabodita Ganguly)

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About the State Of The Economy podcast

India’s economy has been hailed as the bright spot amid the general gloom that seems to have enveloped the rest of the world. But several of its sectors still stutter about even while 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. 

India’s airlines are once again in trouble, this time with the fall of Go First. The fall of the airline could impact the entire airlines ecosystem. In this State of the Economy podcast, Ravi Loonkar, a stress resolution expert who has worked for SBI Capital Markets, GE Capital talks to businessline’s Hamsini Karthik, Senior Assistant Editor on the role of NCLT in Go First’s insolvency resolution. Listen in! 

(Host: Hamsini Karthik, Producer: Anjana PV )

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About the State Of The Economy podcast

India’s economy has been hailed as the bright spot amid the general gloom that seems to have enveloped the rest of the world. But several of its sectors still stutter about even while 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. 

Siddharth 'Sid' Pai is a technology consultant and an investor in deep tech/science-based startups. An IT industry veteran who has worked with the likes of IBM, Xerox, Logica, KPMG, and ISG, he has personally led over $20 bn in complex, first-of-its-kind outsourcing transactions. He is a prolific columnist and an author who has written books on the sector.

In an in-depth conversation with Venkatesha Babu, Deputy Editor, HBL, Pai talks about the global technology outsourcing sector, the evolution of the Indian IT services players, challenges posed by AI and Machine Learning as well as how Indian IT has always reinvented itself.

Edited Excerpts from the conversation.  

(Host: Venkatesha Babu, Producer: Siddharth MC)

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About the State Of The Economy podcast

India’s economy has been hailed as the bright spot amid the general gloom that seems to have enveloped the rest of the world. But several of its sectors still stutter about even while 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. 

India’s digital infrastructure has witnessed a huge transformation since the 1990s. The country is expected to have more than 900 billion internet users by 2025. India’s digital economy is also growing rapidly. 

However, there is a huge digital divide between rural and urban India. Within urban areas, many are not able to access the internet as telecos are increasing user charges. Almost half of the nation’s population does not have internet access. Similarly, there is a huge gendered digital divide. 

How do we ensure that the digital growth is even in India? What are the policies associated with digital development in our country? What is the future of data protection in India? In this episode of the State of the Economy podcast hosted by businessline’s Thomas K Thomas, Deepak Maheshwari, Public Policy Consultant, decodes these questions. 

Delving deep into the subject, Maheshwari takes us down memory lane and talks about when the nation first started its internet service and discusses where India starts now. He also talks about the importance of cyber well-being and the future of data protection in India.  

While talking about overall cyber well-being, Maheshwari draws an interesting analogy with health. Just like we follow a healthy diet and exercise for a healthy lifestyle, we also need to follow certain rules, such as using less screen time. 

Lastly, he sheds light on the question: Will India be able to be a $1 trillion digital economy? Listen in. 

(Host: Thomas K Thomas, Producers: Anjana PV & Nabodita Ganguly)

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About the State Of The Economy podcast

India’s economy has been hailed as the bright spot amid the general gloom that seems to have enveloped the rest of the world. But several of its sectors still stutter about even while 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 many professionals preferring to work from home and companies still opting for remote work, are commercial rental spaces still relevant? What are some of the challenges that the real estate sector face amidst the slowdown?

In this episode of the State of the Economy podcast, businessline's Abhishek Law and Kaustuv Roy of Savills discuss the impending slowdown and its impact on the real estate market and how REITs are faring in the current scenario. Listen to the podcast to know more.

(Host: Abhishek Law, Producer: Anjana PV)

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About the State Of The Economy podcast

India’s economy has been hailed as the bright spot amid the general gloom that seems to have enveloped the rest of the world. But several of its sectors still stutter about even while 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. 

P.V Subramanyam, author of the blog www.subramoney.com, starts by discussing why equity investing was probably easier in the 80s when he made his debut, because the only information you had on a company came from its annual report! So every investor needed to do his or her own due diligence and in the process came to understand every business he owned very well. In contrast, today, all financial information and ratios are readily available on screeners. In terms of news and data on companies, there’s plenty of noise but very little useful information.

Talking of why lessons from a Buffett or a Peter Lynch in American markets cannot be blindly applied by Indian investors, he points out that the American economy has had certain unique advantages that have aided corporations such as Coca Cola, which no Indian company can hope to replicate. He cautions that retail investors must not benchmark themselves to a Warren Buffett or a Mukesh Ambani who have created wealth from owning and acquiring businesses. Instead, the role models must be fund managers in India such as Prashant Jain (ex-HDFC mutual fund) or Sankaran Naren (ICICI Pru) who have equally impressive records derived from managing public money.

Asked about the qualities for being a successful equity investor in India, he reels out many: Ability to delve into balance sheets and find out how a company makes money. Curiosity about companies and their business models. Ability to talk to vendors, customers to gain insights about management. An open mind that is able to appreciate the utility of a business like Zomato’s even if one doesn’t personally use it. He also talks of the need for a stock investor to be flexible in his/her views so that if facts change, he/she changes her views. He also elaborates on why equity investing is not a simple matter of looking at numbers and requires having an ear to the ground, as assessing factors like governance.

He shares the view that copycat investing, based on what star investors buy and sell shared on social media, can be dangerous for retail investors because one doesn’t know the context in which the big investor made his or her moves and their overall net worth, position size etc. Highlighting how social media platforms have made it very easy for operators to manipulate stocks by storifying them. He flags that it is impossible for any regulator to keep track of all the scamsters out there and therefore it is up to the investor to avoid the minefields by reining in his or her greed for quick returns. Patience and experience, crucial to investing, can only be acquired by making mistakes and cannot be taught. He recommends keeping a journal of your investment moves so that you can learn from your mistakes, which will be many, over time.

Asked about how young people can make a start on equity investing, he believes that financial education needs to be imbibed from parents right from childhood, as each family’s financial DNA is different. Parents need to impart lessons on the value of money right from childhood and let their children know about their financial position and constraints.

He wraps up the conversation by detailing the risk management measures that every equity investor ought to take. Insurance for a stock investor, may not mean medical insurance in the conventional sense. It may mean having enough money in bank deposits or debt instruments that you can draw in an emergency so that you don’t need to withdraw equity money at inopportune times. It may mean having one steady source of income in the family, while you rely on trading income. It may mean prudent asset allocation suited to your own life stage and goals. It also means periodically assessing your financial needs against your net worth and seeing what changes you need to make at the portfolio level to meet them. Listen in for his anecdotes and insights.  

Listen in!

Welcome to another episode of the Businessline State of Economy podcast. Today, we’re delving into the world of deeptech startups. As technology continues to evolve at a rapid pace, deeptech has emerged as a promising area of innovation, with startups creating solutions that are based on cutting-edge research in fields such as artificial intelligence, robotics and space tech.

Joining us today are two distinguished guests - Arun Natarajan, the founder of Venture Intelligence, a private market intelligence company, and Vishesh Rajaram, the Managing Partner of Speciale Invest, a venture capital firm focused on deep tech investments.

(Host: Yatti Soni; Producers: V Nivedita, Siddharth MC)

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About the State Of The Economy podcast

India’s economy has been hailed as the bright spot amid the general gloom that seems to have enveloped the rest of the world. But several of its sectors still stutter about even while 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. 

Listen in!

Government and various private agencies came out with high-frequency economic indicators such as GST collection, PMI Manufacturing and automobile sales among others. Data are undoubtedly impressive, but there are other sides to the data which is giving food for thought. In this episode of the State of the Economy podcast, businessline’s Shishir Sinha talks to Chief Economist of Care Ratings, Rajani Sinha to get a deeper analysis of GST collection and inflation.

Listen in!

(Host: Shishir Sinha , Producer: Jayapriyanka J)

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About the State Of The Economy podcast

India’s economy has been hailed as the bright spot amid the general gloom that seems to have enveloped the rest of the world. But several of its sectors still stutter about even while 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. 

April 30, 2023, was a historic day for Indian cricket. The match between Rajasthan Royals and Mumbai Indians was the 1,000th match since the Indian Premier League started in 2008.

The tournament, which was launched sixteen years ago, has seen many innovations like the strategic time out or the "Impact player" substitute. Why, even the stumps used are LED ones, where the bails light up when a batsman is bowled or stumped, not to mention the stump camera. It makes the game exciting to watch on TV. Also, brands seek out top teams to partner and promote their products and services. The next step for teams is to go the whole hog in merchandising IPL ware.

In this podcast, businessline's Senior Associate Editor, Vinay Kamath, talks to Shiv Shivakumar, Operating Partner at private equity firm, Advent International, and Sundar Raman, consultant to CSK, promoter of SA 20 and who works at the confluence of sports and tech, to understand how the tournament evolved over the years and the marketing and branding strategies that have made the tournament what it is.

Listen in now!

(Host: Vinay Kamath, Producers: Jayapriyanka J, V Nivedita)

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About the State Of The Economy podcast

India’s economy has been hailed as the bright spot amid the general gloom that seems to have enveloped the rest of the world. But several of its sectors still stutter about even while 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 importance of competition law cannot be understated. Without the regulations flowing from such a law, businesses would be free to engage in anti-competitive practices that would harm consumers and stifle innovation. 

By promoting fair competition, competition laws help to ensure that consumers have access to a variety of high-quality products and services at reasonable prices.

It is in this context that competition laws need frequent refresh to keep them in tune with the times. 

India’s competition law framework recently got an overhaul with the enactment of Competition (amendment) Act 2023. 

Presidential assent for this law came on April 11 and the Centre is now looking to implement this law in a staggered manner.

The latest amendment law has sought to introduce several new features in tune with requirements of modern market oriented economy including the concept of deal value threshold; settlement and commitment provisions; levy of penalty on “global turnover” basis and introduction of leniency plus regime for cartels.

In Indian competition law, the "deal value threshold" refers to a monetary threshold that determines whether a merger or acquisition must be notified to the competition authorities for review and approval before it can be completed. The law has now pegged this threshold at ₹ 2,000 crore. This threshold will also be indexed to inflation. 

The introduction of ‘global turnover’ as the criteria to levy penalties for violation of competition law is another provision that has riled the stakeholders. The provision was inserted through the Competition (Amendment) Act without public consultations.

Leniency plus regime is basically a new cartel detecting tool that would encourage companies already under investigation for one cartel to report other cartels unknown to the competition regulator.

Besides reducing the timelines for M&A clearances (from 210 days to 150 days), the Competition (Amendment) Law has also provided for appointment of Director General (Investigation) by the CCI. 

Hitherto, the DG (Investigation) was directly appointed by the Central Government.

Another significant change relates to a 25 per cent deposit for a penalty for appeals. Also, the new law provided for inclusion of facilitators of certain anti-competitive agreements within the framework of law (hub—and—spoke).

BusinessLine spoke to Samir Gandhi, Co founder, Axiom5 Law Chambers in our BL State of the economy Podcast to get a good handle on the recent overhaul of Indian competition law.

(Host: KR Srivats, Producer: Nabodita Ganguly)

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About the State Of The Economy podcast

India’s economy has been hailed as the bright spot amid the general gloom that seems to have enveloped the rest of the world. But several of its sectors still stutter about even while 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.