IMA Insights

In an era where sustainability is no longer a choice but a necessity, integrating sustainable practices into business operations is essential for long-term success. Most businesses have a significant environmental impact, making it essential to understand and scrutinise every stage of the supply chain.

At recent India CEO, CFO and Sustainability Forum sessions across India, Venkatesh Kini, Former President and CEO, Coca-Cola India and Co-Founder of Ubuntoo, explored how to embed sustainability into the core of a business, highlighting strategies to reduce environmental impact, enhance resource efficiency and create a more resilient and sustainable supply chain, resulting in cost savings and improved operational efficiency. 

This podcast summarises these discussions.

The failure of private investment to perk up, has been a source of worry. Private investment scores have essentially declined since 2012. Despite the government’s cajoling, through PLI based incentives, and the slashing of corporation tax, inhibitions remain amongst a sceptical business constituency to take the punt and expand capacity. 

One reason for the blame is possibly low household consumption, a trend that has now lasted for nearly a decade, particularly after the Covid 19 pandemic. Another reason, as some economists have argued, are structural problems that endure in areas such as labour reforms. This podcast explains.

At our inaugural India CHRO Forum Dialogue in Pune, our first session was led by Gauri Kirloskar, Managing Director at Kirloskar Oil Engines, who offered a simple playbook for today’s culture agenda, helping business and HR leaders understand why culture matters, what it entails, and how to create or change it. In the day’s second session, Rajat Sethi, IMA’s Chief Policy Analyst and one of India’s leading political commentators and public intellectuals, provided an economic, political and geopolitical overview, both domestic and global. 
The attached conclusions paper summarises these discussions 

This year, dozens of major countries will hold (or already have held) elections. There are also important developments underway in the economic realm, both globally and in India. At a recent joint session of the India CEO and CFO Forums in Pune with Rajat Sethi, IMA’s Chief Policy Analyst and one of India’s leading political commentators and public intellectuals, we explored the impact of India’s recent election results, including on the new government’s likely policy priorities. This podcast summarises these discussions 

Markets across the world came under a bout of bear hammering on the 5th August. US unemployment which had fallen to a new set of lows, began edging up again and inflation pressures eased. All of this contributed to the sell off, but the key reason was the unwinding of the yen carry trade - which involves borrowing in yen at minimal cost and investing in higher yield assets overseas. 

This strategy adopted by punters worked very effectively over the course of the last decade, as the yen continued to weaken. But now, as the attached paper explains, the situation has turned upon its head. The Bank of Japan has started to increase interest rates and over the coming two or three years the yen is likely to strengthen. The carry trade has begun to reverse. Going forward, this will create market volatility across the world, as well as a correction in asset prices. Liquidity is bound to be affected. 

The recent developments in Bangladesh, leading to the ouster of Prime Minister Sheikh Hasina Wazed, were in many ways not dissimilar to what happened in Sri Lanka a few years ago. Civil Society anger against the ruling establishment had been pent up for several years, so when a peaceful demonstration by students began a couple of months ago, it quickly turned violent. 

Hundreds of students were killed by paramilitary forces. However, on the 5th August, it became abundantly clear that Hasina's position was no longer tenable. The attached paper provides a background of what transpired in Bangladesh. The political turmoil brings with it a fresh set of headaches for the Indian government.

India’s banking sector is quite literally the life-blood of the economy. It powers both industry and consumption and channels savings to more productive uses. Over the last decade, the sector has seen critical reforms, an intense bad-loan clean-up, several waves of consolidation and has undergone a continuous process of maturation, making it one of India’s most technology-centric industries. Looking ahead, the new government is expected to catalyse further reforms and take forward the process of PSU-bank consolidation, aside from bringing important changes to other parts of the financial-services sector. 

At a recent India CFO Forum session in Chennai, Jaimin Bhatt, Former Group CFO of Kotak Mahindra Bank, provided a view for the banking sector and its role in funding industry. This podcast summarises these discussions.

The real challenge in employment generation stems from the fact that the manufacturing industry is not investing nearly enough towards the creation of new capacities. One reason is a softening in consumer demand, but there is also the issue of Chinese dumping. This podcast explains. 

The pressure of delivering strong results quarter after quarter can tempt even the best companies to be myopic about ethics and fair business practices. Sometimes, this gives rise to the sort of scandal that can destroy the very foundations of a business. While some may view 'fair practices' as resource-draining and growth-impeding, companies that adopt a values-based approach to ethics and compliance gain a long-term competitive edge in the marketplace. 

At a recent joint session of the India CEO and CFO Forums, Sabina Sudan, corporate lawyer, and active speaker on ethical and legal issues, discussed effective strategies for melding profitable growth with ethical practices, and how organisations can embed ethics into the corporate culture, including in its code of conduct, CSR initiatives and whistle-blower policies.

The rupee recently hit a new low against the US dollar on the back of rising safe-haven demand for the Greenback and a reversal of the US interest rate cycle. The RBI hopes to contain the fall by keeping domestic interest rates up, but this has created a double whammy for corporate and retail borrowers, who will now have to grapple with higher debt-servicing costs. 

At recent IMA CFO NxT Forum Sessions, Manoj Goel, Managing Director & Head of Corporate Sales, Markets & Securities Services for HSBC India, offered a forward view on currency markets and the economic, geopolitical and electoral factors driving them. This podcast summarises these discussions.