businessline's State of the Economy Podcast

 In this episode of the State of Economy Podcast, businessline's Subramani Ra Mancombu speaks with Vaibhav Anant, founder of Bambrew, a company working on green-tech sustainable packaging. The episode discusses about the critical issue of plastic waste in India, the largest plastic waste generator in the world, producing about 26,000 tons of plastic waste every day.  India's plastic waste generation is fueled by several factors, including the country's large population, widespread use of single-use plastics, and inadequate waste management systems. 

 The podcast starts with the impact of this waste on the environment, public health, agriculture, and the economy. Anant talks about finding microplastics in everyday items like salt, sugar sachets and their far-reaching consequences on human health, agriculture, and marine life. Anant shares his insights into the reasons behind India's plastic crisis and discusses the importance of creating awareness among consumers about the environmental and health risks associated with plastic use.

 He stresses the importance of shifting towards eco-friendly alternatives and highlights the role of bamboo, a versatile, sustainable material, in replacing plastic in various industries. Anant goes on to discuss India’s stance in global discussions on plastic waste management. He supports the view that managing plastic waste effectively is more important than banning plastic outright, a position that aligns with India's approach at the international level. The episode concludes with a call for more sustainable solutions and greater public awareness of plastic's harmful effects on health and the environment. 

(Host: Subramani Ra Mancombu Producer: Prethicshaa Gurumoorthy)

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.

In this episode of the State of the Economy podcast, host S. Ronendra Singh discusses the performance of automobile sales during the 2024 festive season with CS Vigneshwar, President of the Federation of Automobile Dealers Associations (FADA).

Vigneshwar offers insights into the growing role of electric vehicles, challenges related to inventory levels, and the outlook for the coming months as the year draws to a close.

“We are looking at this momentum continuing, and we are looking at a fairly good couple of months from now,” says Vigneshwar, expressing optimism about the continued momentum in the automobile sector.

Retail sales growth in October 2024 was impressive, with overall sales increasing by 32% year-on-year, with two-wheelers leading the charge with a 36% increase. Passenger vehicle sales also saw a 32% boost, as the festive season brought a surge in consumer demand.

Vigneshwar highlights the significant role rural markets are playing in this recovery, noting that “55.5% of two-wheeler sales and 39% of passenger vehicle sales came from rural areas.” This marks a strong revival from rural India, which has been instrumental in driving sales this year. He further adds, “Rural India slowly started climbing back the charts in terms of contribution,” emphasising that rural demand has returned with strength.

Regarding the challenges of managing high inventory levels across dealerships, Vigneshwar states, “We were at about 75 days of inventory at the start of the month,” which was unsustainable. He hopes that manufacturers will take action to optimise inventory levels and reduce discounts in the coming months, further boosting profitability for dealers. According to him, the industry has been “hoping this would reduce further in the next month,” with expectations for a smoother inventory flow by December.

As the industry embraces new technologies, the shift to electric vehicles (EVs) is becoming more prominent. Vigneshwar points out that “the two-wheeler segment, especially in the scooter segment, is primed for the change to EVs and is changing very quickly.” He notes that while government subsidies have fluctuated, the EV market is steadily gaining momentum, with dealerships preparing for even more rapid adoption in the future.

Vigneshwar also discusses the impact of the government's vehicle scrappage policy, calling on state governments to take more action: “State governments have to probably start working harder at this because most of the states... have not implemented the policy.” He advocates for a clearer, more efficient system to allow customers to take advantage of scrapping incentives and help accelerate the transition to newer, more efficient vehicles.

Looking ahead, Vigneshwar is optimistic about the future of the automobile industry, noting that “the next couple of months are going to be strong in terms of retail,” driven by the marriage season and ongoing consumer confidence. The industry is poised for continued growth in 2025, with strong sales expected to carry through into the new year,” he adds.

Listen in!

(Host: S Ronendra Singh; Producer: Siddharth Mathew Cherian)

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.

In this State of the Economy podcast, businessline’s Sanjana B talks to Neha Singh, Co-Founder, Tracxn and Rishi Batra, Chief Operating Officer & Co-founder, TWID, about the future of India’s fintech industry. The podcast explores the rapid growth and emerging trends within the Indian fintech sector, which had a market size of $584 billion in 2022 and is projected to reach $1.5 trillion by 2025.

The conversation begins with an overview of the funding landscape, noting that while the industry saw a significant downturn from the peak of 2021, the momentum has picked up in recent months. Funding for fintech startups in India dropped more than 60% from 2021, with about $1.5 billion raised in 2023, but the latest quarter (Q3 2024) has seen some recovery. Fintech continues to be one of the top three sectors for investment in the Indian tech landscape, alongside retail and e-commerce. 

Singh discusses the regulatory environment, highlighting the role of the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) in ensuring compliance. The RBI’s actions, such as licensing payment aggregators, aim to enhance consumer protection, a critical focus for the sector. Batra adds that the regulatory steps, though seemingly stringent, are well-researched and provide a necessary framework for a rapidly growing industry. He stresses the importance of a company-wide approach to compliance and the changing dynamics of data handling, product building, and customer protection. 

The conversation concludes by considering how fintech startups can coexist with traditional financial institutions. Both Batra and Singh agree that the lines between fintechs, banks, and non-banking financial companies (NBFCs) are blurring. Banks are becoming more tech-savvy and are forming partnerships with fintechs, while some fintechs are moving into more traditional banking roles. This collaboration, alongside the evolving regulatory framework, is expected to shape the future of India’s financial ecosystem.

(Host: Sanjana B; Producers: Amitha Rajkumar)

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.

In this State of the Economy Podcast, host PT Jyothi Datta speaks to Amit Chhabra, Chief Business Officer of General Insurance at Policybazaar.com, about the evolving health insurance landscape for senior citizens in India.  

Recent policy changes, such as the extension of Ayushman Bharat to individuals aged 70 and above, and the removal of the 65-year age cap by the Insurance Regulatory and Development Authority of India (IRDAI), have created new opportunities and challenges for the sector. 

Amit Chhabra highlights the significance of these developments, noting that "The 70-plus population is extremely underinsured right now... not having health insurance is a serious issue because that will open them up to large financial exposure." 

The discussion delves into how insurers are adapting to cover specific conditions such as Parkinson’s, Alzheimer’s, and other age-related illnesses, while also accommodating pre-existing conditions.  

"The regulator is actually promoting or encouraging insurers to give some kind of offer to that customer. This may not be the standard product... but at least they get something, some sort of coverage.", adds Chhabra. 

The dialogue also explores the challenges within the ecosystem, including the complex relationship between hospitals and insurers which is “a push-and-pull relationship... but both parties realise they can’t coexist without each other.", adds Chhabra. 

Listeners will also benefit from practical advice, as Amit stresses the importance of transparency and full disclosure when purchasing insurance "One must make sure that your medical history is disclosed properly and in full detail when you're buying a policy... If these two things are taken care of, there can be no denial of claim.", he points out. 

(Host: PT Jyothi Datta; Producers: Rowan Barnett, 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.

In this episode of the State of Economy Podcast, businessline's Rishi Ranjan Kala speaks with Dr. Amar Rao, an Associate Professor at the School of Management at BML Munjal University, about the growing intersection of traditional energy markets and green energy, and how financial institutions can better manage climate-related risks. 

Rao's work has been instrumental in examining how climate-related factors influence asset values, investment strategies, and overall corporate financial health. The podcast starts with one of the key topic of India's ambitious green energy transition, which aims to add 500 gigawatts of non-fossil fuel energy capacity. Rao explains that while the potential of green energy markets is immense, the biggest challenge lies in securing adequate financing.  

 He emphasises the need for mechanisms like a national green sovereign wealth fund, green banking systems offering low-interest loans, and a carbon credit exchange to instill investor confidence and accelerate the transition to a cleaner energy future.  

The discussion also dives into the hurdles faced by retail investors, particularly how they can be educated and encouraged to participate in green energy markets. He suggests that transparency, better communication, and innovative investment products such as fractional ownership of solar panels and local charging stations could help foster trust and participation from retail investors.  

 Rao goes on to offer valuable insights into the role of natural gas as a transition fuel for India. While acknowledging that natural gas is not a completely clean energy source, he argues that it can serve as a bridge to greener alternatives, especially for a country like India that relies heavily on coal for its energy needs.  

The podcast highlights the lower costs and infrastructure advantages of natural gas as part of the strategy to reduce carbon emissions while transitioning toward more sustainable energy sources.  

(Host: Rishi Ranjan Kala, Producer: Prethicshaa , Amitha Rajkumar )

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.

In this episode of the State of Economy Podcast, businessline's Abhishek Law speaks with Ahmed Al Khatib, the Chief Development and Delivery Officer of Expo City Dubai, about the real estate developments in Dubai.   

The podcast starts with Al Khatib highlighting the unique investment opportunities available in Expo City, which include residential, commercial, and hospitality sectors.  He explains that the city’s strategic location and state-of-the-art infrastructure make it an attractive destination for businesses, offering seamless access to global markets.

Al Khatib discusses how Indian investors are leading the charge in this thriving real estate market, with Expo City offering competitive pricing and attractive payment plans. Prices for residential units range from AED 1.8 million for one-bedroom apartments to AED 4.9 million for three-bedroom townhouses, with many investors purchasing for both personal use and long-term returns.  

Al Khatib also shares how Expo City’s development aligns with Dubai’s ambitious vision for 2040, ensuring it remains a vital part of the city’s economic and urban transformation. With world-class tenants like Siemens, Emirates Airlines, and DP World, Expo City is becoming a dynamic ecosystem for businesses and families alike.   

The discussion goes on to talk about the growing interest from Indian investors in both residential and commercial properties within Expo City. He highlights the unique selling points of Expo City, such as its complete infrastructure, proximity to major international trade routes, and an emphasis on sustainability and smart technologies. 

The discussion leads to Expo City’s development on the role as a logistics and trade hub, particularly considering India’s growing economic ties with the UAE. The city’s proximity to major shipping routes and ports makes it a strategic location for warehousing and shipping companies.   

Finally, Al Khatib also touches on Expo City’s future events, such as the Asia Pacific Cities Summit in 2025, which will bring global leaders together to discuss sustainable urban development highlighting the Expo City’s commitment to shaping the future of cities worldwide. 

(Host: Abhishek Law , Producer: Amitha Rajkumar, Prethicshaa )

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.

In this State of the Economy podcast, businessline’s Sanjana B talks to Abilash Soundararajan, Founder & CEO, Privasapien, Aditi Balbir, Founder, EcoRatings, Naganand Doraswamy - Managing Partner & Founder, Ideaspring Capital and Ramkumar Narayan, Immediate past chair, nasscom Deeptech council, about the specific hurdles deep tech start-ups encounters when attempting to expand into international markets, from navigating regulatory landscapes to establishing credibility with global investors. 

The discussion starts off by sharing insights on how deep tech start-ups can better position themselves to secure global investments and scale their businesses internationally.  

The panel discusses how India’s deep tech start-ups are attracting attention from global investors and partners, especially in the early stages, with a focus on building credibility and leveraging key factors like a strong product, reputation, and educational backgrounds. They highlight the importance of strategic partnerships in unlocking international markets, particularly in regions like the Middle East and the US, where local networks and trust are paramount. 

Balbir emphasises the importance of showcasing cutting-edge technology and IP as a tool for securing funding, especially in highly competitive sectors. However, the panel also stresses that while IP is important for protection, its real value lies in building a product that differentiates itself in the market. 

Narayan also touches on the rapid growth of AI and how Indian start-ups are leveraging the technology to compete with global giants. With India’s deep tech ecosystem maturing, the discussion reflects on the progress made in the last decade and share optimism for the future. They highlight key enablers like venture capital, government support, and mentorship, which have transformed the Indian start-up landscape into a thriving, globally competitive environment. 

As India continues to emerge as a hub for innovation, the discussion highlights the need for scalable solutions, agile business strategies, and strong global networks to propel Indian start-ups onto the world stage.

(Host: Sanjana B, Producer: Amitha Rajkumar.)

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.

In this episode of the State of Economy Podcast, Amiti Sen speaks with Professor Biswajit Dhar, a distinguished economist and former professor at Jawaharlal Nehru University, about the potential economic impact of Donald Trump’s return to the US presidency, particularly for India. As the world closely watches Trump’s second term unfold, there are pressing questions about how his policies will shape India’s trade, manufacturing, immigration, and global standing. 

Professor Dhar highlights a key concern for India: Trump’s protectionist trade policies. “Trump has been sounding extremely protectionist in his election campaign,” he notes. “The main focus of his economic plan is to use tariffs to protect the US manufacturing sector.” This continuation of Trump’s tariff-heavy approach, which was a hallmark of his first term, could have far-reaching consequences for India. Dhar warns that India, which has US as its largest export destination, could face serious challenges if Trump raises tariffs on goods like electronics, pharmaceuticals, and medical devices. “India’s exports to the US have not been doing very well,” he points out. “If Trump carries through his narrative, it will be bad news for India.” 

Trump’s well-known fondness for tariffs, expressed in his famous statement, “I love tariffs,” spells trouble for India’s trade ambitions, particularly in key sectors where India has been hoping to increase exports to the US. Dhar cautions that a protectionist US under Trump could limit India’s access to its largest market. 

Another significant topic of discussion is the uncertainty surrounding India’s semiconductor ambitions. Despite recent collaboration between the US and India in this sector, Professor Dhar remains sceptical about the future of these plans under Trump. “India is planning to become a semiconductor manufacturing hub,” he says. “But with Trump’s protectionist stance, I think there are serious doubts. The US will likely prioritise its own domestic manufacturing over partnerships with India.” This uncertainty could stall India’s efforts to become a key player in the global semiconductor market, despite its potential for growth in the sector. 

Professor Dhar also addresses the weakening of the World Trade Organisation’s (WTO) dispute resolution mechanisms during Trump’s first term, making it more difficult for countries like India to address trade injustices. He warns that Trump’s preference for bilateral deals over multilateral agreements could lead to a world of “unilateralism,” where countries are left to navigate trade disputes without the protections that multilateral forums like the WTO traditionally offer. “The WTO is already losing relevance,” Dhar observes. “Trump has made it clear that he doesn’t want to work through multilateral organisations.” 

On immigration, Professor Dhar highlights the potential impact of Trump’s stance on work visas, especially H1B and L1 visas, which are crucial for India’s services sector. “Trump has been very vocal about wanting to bring jobs back to America,” he says. “This could directly affect India’s technology and services industries, which rely heavily on skilled professionals moving to the US.” With Trump’s rhetoric focusing on reducing immigration and boosting domestic employment, India could face significant hurdles in sending talent to the US to support its burgeoning services sector. 

Listen in to this insightful discussion on how Trump’s second term could reshape the global economy. 

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

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.

In the latest episode of businessline’s State of the Economy Podcast, Parvatha Vardhini C, Editor of bl.portfolio, discusses the markets, current valuations, risks and opportunities for investors with Nimesh Chandan, Chief Investment Officer at Bajaj Finserv Asset Management Company. 

Although Bajaj Finserv AMC has been a late entrant, Nimesh says that the fund house has a “ late mover advantage”, explaining his unique approach to investing, focusing on "Mega Trends" that can shape the future of various sectors. "Buy and hold has become buy and watch. We need to keep track of changes driven by technology, regulation, and economic shifts to make informed investment decisions”, he notes. 

 Nimesh explains his investment philosophy, which combines information edge, quantitative models, and behavioral finance to create a competitive advantage.

 On markets, he emphasises on looking at the intrinsic value rather than a PE multiplestating that the market is now coming back to the number that they have as the fair value for the Nifty.

 He gives his take on consumption stocks, following the slowdown in urban areas reported by most FMCG majors. He also answers questions on investor minds about the impact of MFI loan delinquencies on banking stocks.

 Finally, even as he tells us of three big risks to watch out for today’s markets, he highlights the potential for lucrative opportunities, asserting, "Some of the best investments by marquee investors are made when certain companies, which have a very strong long-term growth outlook, go through a temporary downturn." 

 Listen in! 

(Host: Parvatha Vardhini C, Producer: Siddharth Mathew Cherian.)

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.

In the latest episode of the State of Economy podcast. Chitra Narayanan speaks to Shiv Shivakumar, Chief Operating Partner at Advent International, and Rajesh Shukla, Co-founder of PRICE on the changing dynamics of consumption among India’s middle class, particularly considering recent comments from Nestlé India’s Suresh Narayanan.  

Middle class dynamics 

Shukla argues that the narrative suggesting a contraction in the middle class due to soft demand for fast-moving consumer goods (FMCG) is misleading. “The narrative that India’s middle class is shrinking due to soft FMCG demand is completely misleading. In reality, the middle class is expanding.” He references three decades of data showing that the middle class is, in fact, growing. Defining the middle class as households with an annual disposable income between ₹5,00,000 to ₹30,00,000, he claims it now constitutes approximately 39% of households, up from 31% in 2021. This growth is accompanied by declining poverty levels and stable GDP growth, suggesting a robust economic foundation rather than a contraction in consumption. He further emphasises, “If poverty is declining, everything is actually moving.” 

Shivakumar supports Shukla’s perspective, emphasising that the number of people earning above $10,000 per year has significantly increased. He asserts, “I don’t agree that the middle class is dropping at all,” highlighting that the middle class is not shrinking but rather evolving. The two experts stress the importance of data in understanding market trends, urging FMCG companies to adapt their strategies to cater to this changing demographic. 

Shifting consumer preferences 

A central theme of the discussion is the changing preferences of consumers, particularly the younger demographic. Both agree that today’s middle-class consumers have distinct expectations compared to their counterparts from previous decades.  

Shukla points out, “The young generation is consuming and saving much wiser than the older generation,” reflecting a shift in financial consciousness. The rise of digital platforms has transformed how consumers access products and make purchasing decisions, necessitating that companies innovate to stay relevant. 

Shukla further notes that younger consumers are increasingly drawn to premium products that promise longevity and value, stating, “By 2031, we expect that 65% of the demand will be for premium products.” This shift in mindset requires FMCG companies to refine their offerings and consider regional variations in consumer preferences. 

The role of distribution channels

A key point of contention is the importance of distribution channels versus brand power. Shivakumar asserts that while brand recognition remains important, the evolution of shopping habits—especially with the rise of quick commerce—has made distribution channels critical. He introduces the DICE model (Digital, Innovation, Consumption triggers, Ecosystem partnerships) as a framework for FMCG companies to adapt to the fast-changing landscape. 

Shukla complements this by discussing the emergence of omnichannel strategies, blending online and offline access to cater to diverse consumer needs. He emphasises that “the fragmentation of consumer demands—especially between urban and rural markets—is crucial for effective marketing strategies,” underscoring the need for nuanced understanding in targeting different demographics. 

 Contrary to the perception that the middle class is shrinking, data suggests it is expanding and changing in terms of preferences and consumption patterns.  

Listen in to know more. 

(Host: Chitra Narayanan, Producer: Siddharth Mathew Cherian.)

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.