Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, July 4, 2024. My name is Nelson John. Let's get started:

Indian stock market benchmark indices Sensex and the Nifty hit fresh highs on Wednesday. The Sensex breached the coveted 80,000 landmark, while the Nifty scaled its fresh peak of 24,309 points. The Sensex finally ended the day 0.69 per cent higher, while the Nifty closed 0.67 per cent higher.

A new player has entered India’s investment game - and it's not a new company or a new investor. It's an entire generation of Indians. GenZ now makes up 40 per cent of the 95 million registered users on the National Stock Exchange. This marks a substantial increase from the 22-23% share before the pandemic. Mint’s Ram Sahgal and Sneha Shah spoke to industry insiders to report on the changing demographics of Indian investors. Dhiraj Relli, MD & CEO of HDFC Securities, notes that this age group tends to favour short-term gains through index options and intraday trading rather than long-term investment strategies. This trend is reflected in the overall dynamics of the NSE's investor base, where the median age has dropped from 38 in FY18 to 32. 

When Uttar Pradesh reported higher GST collections than Tamil Nadu for April, it stirred discussions about potential shifts in economic performance between the states. However, this occurrence seems more like a statistical outlier rather than a trend, as Tamil Nadu quickly regained the lead in May. Over the past six years, Tamil Nadu's gap in GST collection over Uttar Pradesh has actually widened from 13% to 16%. When GST was rolled out in 2017, there was a theory that it might benefit larger but economically weaker states due to their higher population and consumption. But the numbers tell a different story. Despite their large populations, states like Uttar Pradesh and Bihar haven't seen the surge in collections many expected. In contrast, Maharashtra, another populous state but with a stronger economic base, has consistently outperformed in GST collections. Our partners at howindialives.com report on this scenario that challenges the simplistic equation that a bigger population equals higher GST revenue.

The price of onions has always been a pain point for parties when it comes to electoral politics. Historically, soaring onion prices have influenced voter behaviour. The looming shadow of another onion price hike is causing the Indian government to take preemptive measures to avoid a repeat of last year's crisis when skyrocketing prices hit consumers hard. Despite a good harvest, fewer onion-laden trucks are rolling into the country’s largest vegetable market—Delhi’s Azadpur mandi. This raises concerns about a potential price rise. This decrease in supply has not yet reached alarming levels, but it's enough to make the government cautious. Mint’s Puja Das reports that the government is considering requiring traders to declare their stocks and possibly imposing stock limits if the situation does not improve. This issue is particularly sensitive as several state elections are on the horizon.

Top Chinese smartphone brands Vivo, Oppo, and Xiaomi are exploring partnerships with Indian companies to manufacture and distribute their products locally. This follows previous attempts to create joint ventures with Indian entities, but those didn't progress as planned. The discussions have evolved as large Indian conglomerates including the Tata Group, Reliance Industries, and Dixon Technologies have showed interest in setting up their own manufacturing operations rather than taking a majority stake in these Chinese firms. Mint’s telecom correspondent Gulveen Aulakh along with Shouvik Das report on developments that come amid ongoing investigations by India's Enforcement Directorate into allegations of tax evasion by the Chinese companies, totaling around ₹9,000 crore. This scrutiny has made potential Indian partners wary of associating closely with these brands despite the mutual benefits a partnership could bring.

In Bengaluru’s Embassy Manyata Business Park, a 15-year-old Rosewood building has been extensively renovated to meet modern office standards. This 250,000 square foot structure now features a modern design with a double-glazed glass façade, updated elevators, and new interior finishes. It's part of a broader upgrade within the park, which also includes new premium dining options, enhancing the park's appeal to the 125,000 employees who work out of its office buildings. The renovation reflects a wider trend towards high-quality office spaces that combine functionality with luxury, aiming to attract top tenants and cater to a young workforce. Such spaces command a higher rental premium due to their enhanced amenities and design that prioritise employee experience and comfort. This shift is driven by companies' focus on retaining talent and making offices more appealing places to work. Mint’s Madhurima Nandy takes a detailed look.

We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.

Show notes:

GenZ's share of investors on NSE doubles as young turks charge at the markets

Uttar Pradesh tops Tamil Nadu in GST collection: Myth and reality

Now, Centre mulls stock declaration for onions, imposing stock limit

Chinese smartphone makers looking for Indian partners for manufacturing

Still working from home? These offices just might lure you back

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, July 3, 2024. My name is Nelson John. Let's get started:

Sensex and Nifty remained largely flat on Wednesday. Both fell by less than 0.1 percent during trading hours yesterday.

It's difficult to keep the Adani Group out of the news cycle. More than a year and half after it was accused of various irregularities by US-based short seller Hindenburg Research, we're back at it. The markets regulator Sebi sent a show-cause notice to Hindenburg and its financial partner, accusing their report of being sensationalist and profit-oriented. Hindenburg fired back and denied Sebi's accusations, calling it, and I quote, "nonsense". Hindenburg added that Sebi's report was premeditated, and the research firm stood by its report. Varun Sood outlines the entire saga, and explains the notices and responses between Sebi, Adani, and Hindenburg.

It's incredibly easy to get a loan these days. Fintech apps have brought in the "buy now, pay later" revolution, which means that you can order a pizza for dinner tonight and pay for it in the next three months, without any interest. But Indians aren't just borrowing small amounts — home, car, and education loans have been disbursed at the highest volumes since 2008. Vivek Kaul points out a glaring contrast between borrowing and spending data: we're borrowing more than ever, and spending... less? Private consumption today stands at just 8.5 percent, the slowest in two decades. Vivek answers why this dichotomy has taken place, and how the Indian economy is getting affected by such a pattern.

While fintechs have more business than ever, their voracious potential for growth is only limited by one possibility: regulation. Priyamvada C and Mansi Verma team up to report that India's fintech companies want clarity on such regulations. They want hassle-free licensing, tax considerations, and provisions for financial inclusion. Fintech players told Priyamvada and Mansi that a clear framework would help in streamlining their work. For example, currently, a fintech has to apply for multiple licences to offer their services. They claim that they could be making much more progress and digitising more of India's finances if they had such a framework to adhere to.

It's July, which means that it's the rainy season for most of India. While the season officially starts in June, this year's progress has been slow. This is bad news for India's agricultural sector, which completes much of the sowing for its kharif crops this month. A slow or insufficient monsoon can spell disaster for the country's economy, writes Harsha Jethmalani. She points out the concerns around inflation in June, and a cascading effect on rural incomes. India needs rural demand to rise, and a poor monsoon won't help with that.

July also means that it's tax season. The deadline to file your income tax returns is 31st July. Unfortunately, the process isn't easy. There are a lot of forms to choose from, and one might get confused. Sashind Ningthoukhongjam weaves a nice narrative to explain the different kinds of forms, and which ones would be appropriate for your type of income. Remember, missing the 31st July deadline can lead to a penalty of 5,000 rupees — I'd recommend you to read this story if you still had doubts on filing your IT returns.

We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.

Show notes:

Mint Explainer: Hindenburg's latest salvo against Sebi and Adani—and Kotak 

Retail credit aplenty. But why is our spending growth soft? 

Fintechs seek regulatory clarity, improved licensing, tax reforms

With a sombre start, spectre of a disappointing monsoon season lurks 

Income tax deadline looms: Know your ITR forms to avoid penalties 

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, July 2, 2024. My name is Nelson John. Let's get started:

The Indian market’s benchmark indices Nifty and Sensex both gained more than 0.5 per cent by the end of the trading session on Monday.

In a significant push to bolster the 'Make in India' initiative, the government is considering a Production-Linked Incentive scheme that could transform the railway sector. The scheme—likely to be introduced in the upcoming Union budget—will specifically target the manufacturing of certain railway components that we typically import. Now, what’s on the cards? The government is thinking about offering incentives ranging from 5-10% for locally produced products like wheels, axles, and braking systems, crucial for modern train sets such as the Vande Bharat and green trains running on alternative fuels like hydrogen. They've proposed this scheme to last three years with an expected incentive pool of ₹1,000-1,500 crore. Mint’s Subhash Narayan reports on the scheme, aimed at making our rail component industry more robust and competitive.

Indian investors have been showing unparalleled enthusiasm towards the defence sector–something that was seen post-world war 2 on Wall Street. Since its inception in January 2022, the Nifty India Defence Index has surged nearly 400%, overshadowing gains in other sectors. With India's significant military size and budget commitments to defence modernization, the sector presents a massive opportunity. In the fiscal year 2023-24, defence exports from India reached an all-time high, boosting investor optimism. However, the escalating stock prices have raised concerns about sustainability. Experts like Anirudh Garg from Invasset and George Thomas from Quantum AMC advise caution, pointing out that the sector might be overheated despite its growth potential. Mint’s Abhishek Mukherjee takes a detailed look at whether defence stocks can armour-plate your portfolio - in today’s Long Story. 

Private investors are increasingly initiating forensic audits earlier in their relationships with portfolio companies, aiming to identify and address potential financial and governance issues preemptively. This shift comes in response to significant financial losses caused by mismanagement in high-profile startups, leading to a more proactive approach in risk management. Previously, audits were typically conducted after issues surfaced, but now, they're often triggered by early warning signs, enhancing the ability to manage risks effectively throughout the investment lifecycle. Mint’s startups correspondent Sneha Shah reports. 

The first half of the year was packed with big Bollywood releases like Fighter, Bade Miyan Chote Miyan, and Maidaan, but even these star-studded films couldn't shake the Indian movie industry out of its slump. Box office collections dropped from ₹4,868 crore in the first half of 2023 to ₹3,000-3,500 crore this time around, also partly because we had almost no new films during the Lok Sabha election for about two months. Particularly, Bollywood's numbers were down by ₹400-500 crore. Despite these flops, there's a silver lining with some smaller films. Movies like Crew, Article 370, and Munjya did quite well, hinting that moviegoers are ready to return to the theatres if the content catches their eye. This shift towards smaller films is pretty stark compared to last year's blockbusters. But it's not all gloomy. Malayalam cinema has been doing surprisingly well, with several hits like Manjummel Boys and Aadujeevitham-The Goat Life easily crossing the ₹100 crore mark. It seems they've managed to rake in nearly 71% of their last year's total in just the first three months of 2024! Mint’s Lata Jha brings a wrapup of the first half of the year for India’s film industry. 

The rise of digital avatars or 'deadbots' that allow us to interact with representations of the deceased is stirring both fascination and ethical debates. Companies like DeepBrain AI, HereAfter AI, and Eternime are pioneering services that enable the dead to have a form of digital presence, often inspired by popular media like the Pixar film Coco. The goal ranges from providing comfort and legacy planning to educational purposes, such as allowing students to interact with an avatar of Einstein discussing relativity. The potential of these technologies extends beyond simple memorials. They can perform at virtual concerts, offer family recipes, or guide medical students—almost like bringing the past into the present. Mint’s Leslie D’Monte explains what deadbots are in today’s Primer. 

We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.

Show notes:

Wheels, brakes and axles: Vande Bharat's parts makers may get a PLI horsepower

Gunning for glory: Can defence stocks armour-plate your portfolio?

Forensic auditors at startup doors as edgy investors look to fix issues early

At the box office, a dull first half punctuated by small moments of delight

Mint Primer: AI can make you immortal. What’s the problem?

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, July 1, 2024. My name is Nelson John. Let's get started:

Three days ago, Reliance Jio hiked its tariff rates across all its plans. Its closest competitors Airtel and Vodafone Idea soon followed suit. This is the third such hike in the last five years. Average rates for all plans were increased by 10 to 25 percent. Gulveen Aulakh reports that another hike could come in the next financial year. However, increased prices are good news for investors, as this will lead to better revenues across the board. India will continue to have some of the cheapest data tariffs anywhere in the world. Telecom companies feel that these hikes can be easily absorbed by the end users at the moment. 

Over 2.3 million aspirants had pinned their hopes on the results of the UGC NEET exam. However, the entire debacle has dashed the hopes of many hoping to pursue medicine as a career option. Rajrishi Singhal opines that this fiasco was a failure of the government's education policy. NEET was conceptualised in an era where the contrast between the applicants and the number of medical seats was far too high, while most states conducted their own entrance exams. This supply-demand problem led to huge financial exploitation of aspirants. The NEET exam was intended to level the playing field. That problem still exists: the 2.3 million students are vying for just over a hundred thousand seats. Rajrishi argues that fixing this would involve long-term solutions, not immediate band-aid fixes that have proven to be a bane for India's education system.

If you've been planning to buy a new phone, you'd most likely rather wait till the upcoming festive season to capitalise on all the discounts. However, at smartphone showrooms, these discounts are rolling in already. And no, these aren't bank-specific offers that are now run-of-the-mill at any online retailer. For example, you can now take EMIs without any down payment. You can even immediately exchange your existing smartphone for a new one. Shouvik Das writes that mobile phone makers might soon extend further discounts to boost weakening consumer sentiment. The prices for flagship phones are only increasing, putting off potential buyers. These offers are intended to lure such buyers, notes Shouvik. So before you add to cart, make sure to visit your nearest store — you might just find a better deal.

Amaravati in Andhra Pradesh was supposed to be the next big megapolis. It was supposed to have lush green manicured lawns and a city plan that accounted for trees all over the city. In 2014, Amaravati was declared as AP's new capital, to be inaugurated in a decade. Well, it's that time, and Amaravati is... a ghost town? But with K. Chandrababu Naidu and the Telugu Desam Party roaring back to power, Amaravati is poised to return to its planned glory. Amaravati is centrally located for most parts of AP, and is connected to the river Krishna. Read N. Madhavan's excellent on-ground report of the promise that was Amaravati, what exists today, and what the new government has planned to turn it into posthaste.

It's July, which means it's also Wimbledon season! Arguably the most prestigious grand slam to exist in the world of tennis, winning just a single match at the tournament is considered a huge achievement for many. Last year's result in the men's division was a shocker for most: 20-year old phenom Carlos Alcaraz won the coveted title. He was the first new name to win Wimbledon since 2003. With Nadal, Federer, and Murray retired, and Novak Djokovic nursing injuries, this year too could spring up a new surprise winner. Deepti Patwardhan writes an excellent primer on this year's tournament, and how for the first time in decades, it feels like it could be anyone's year.

We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.

Show notes:

Phone tariff hikes: Is this the end of cheap data? 

There are no neat solutions to the country’s Neet fiasco 

Festive season comes early to smartphone showrooms 

Capital gains: How zombie town Amaravati could rise again with TDP in Andhra 

Wimbledon 2024: A tournament that is brimming with possibilities 

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, June 28, 2024. My name is Nelson John. Let's get started:

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The equity markets rose on Wednesday. Both Nifty and Sensex were up by about 0.7 percent yesterday.

The bond market is up and kicking again. Starting today, India's bonds will be included in JP Morgan's emerging markets bond index. This will make India the 25th country to join the index. 23 Indian bonds will join the much-tracked index, and will certainly bring in a flurry of income. Mayur Bhalerao and Gopika Gopakumar write that foreign investors bought around 67,000 crore worth of bonds ahead of this much-anticipated decision. JP Morgan will itself passively invest around 25 billion dollars into Indian bonds over the next 10 months. 

If you're travelling to a small town, chances are you might see an Air India flight pop up on your route. Air travel between smaller cities is called regional aviation, and is less popular among airlines due to lack of occupancy and highly competitive pricing. The Tata Group is now planning on entering this space, report Anu Sharma and Mihir Mishra. Market leader Indigo currently dominates this landscape, while other routes are fulfilled by state-owned Alliance Air. Air India is also beefing up its fleet with aircraft suited to ply on these routes, Anu and Mihir add.

Indians have mastered chess. We have 85 grandmasters at the moment. But to become a grandmaster, one might need to spend around 30 lakh rupees a year. Gaurav Laghate writes that through online chess games, entering the world of chess is easy. But to hone your skills, you have to compete with the best — and the best come together in international tournaments. To facilitate that, parents often have to take loans to fulfil their kids' potential. Thankfully, there are scholarships available. Chess players also earn money by playing for clubs, competing in tournaments, sponsorships, and appearance fees. Gaurav's piece covers the breadth of the global chess world and the work it takes to get to the top.

While the earning avenues for chess players are growing, those for actors are dwindling. OTT platforms like Netflix, Hotstar, and Amazon Prime are tightening their purse strings. This is directly affecting actors' salaries. Lack of shared data on viewership and performance also makes it difficult for actors to determine the success of certain seasons — leading to a stalemate when it comes to salary discussions. According to industry estimates, popular OTT actors like Manoj Bajpayee, Pankaj Tripathi, and Nawazuddin Siddiqui earn between 8 to 10 crore per season. While OTTs want to give a raise of 10 to 12 percent, actors are demanding as much as twice if the previous season was successful, reports Lata Jha.

The Indian government wants to keep building roads. Subhash Narayan reports that the centre is mulling an increase in capital expenditure to the ministry of road transport and highways. However, this increase will be moderate — around 5 to 10 percent of last year's budget. More than 20 percent of the total roads this year are expected to be built by private entities, who use tolls to recover their costs. In FY23, private entities are expected to have invested 20,000 crore rupees in the road infrastructure segment. Get ready for new roads, and a lot more construction on your way to work.

We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.

Show notes:

Indian bonds back in action with inclusion in JP Morgan index 

Air India eyes regional aviation space in challenge to IndiGo

Checkmate: How Indians mastered Chess

As OTTs tighten purse strings, top stars may feel the pinch  

FY25 budget likely to see moderate increase in allocation for road construction

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, June 27, 2024. My name is Nelson John. Let's get started:

The equity markets rose on Wednesday. Nifty was up by 0.62 percent, while Sensex edged up by 0.80 percent. 

It's been seven years since the central government imposed the Goods and Services Tax, commonly known as GST, on India. The aim was to create a common market where sellers and buyers didn't have to worry about a myriad of state and municipal taxes. However, the current slab structure has introduced a lot of complexities into the tax structure. The largest friction point has been over the funds that the states receive from the centre. How India Lives . com analyses these claims, and tries and figures out if the distribution of collected taxes is equitable for all the states.

Central banks in the UK and Canada have cut their interest rates. The US Federal Reserve, which directly and indirectly controls the world economy to a large extent, has been mulling a rate cut for months as well. India's mutual fund industry is anticipating such a move from the Reserve Bank of India as well. If that happens, funds want to cash in. They're doing this via duration funds — a portfolio of bonds. Bond yields change according to current interest rates. As Anil Poste explains, a declining interest rate would provide higher returns via longer duration bonds. Mutual fund experts are bullish considering India's inflation and the relatively stable economic environment. Even just a 50 bonus point cut — that's half a percent over the next 12 months— would greatly improve the yields of this bond, Anil writes.

Ask any lay person for categories of four-wheelers, and they would probably list out hatchbacks, sedans, and SUVs. But ask any sector expert, and they'd tell you CV and PV: commercial and passenger vehicles, respectively. Commercial vehicles are a category of vehicles that you wouldn't really buy: this includes trucks, buses, vans, and tempos. Tata Motors has now decided to split its two businesses in order to focus better on these respective segments. The combined entity had CVs as the cash cow, but was bankrolling Tata's PVs. Nehal Chaliawala writes that now that the PV segment has turned profitable on its own, Tata Motors' split between the two will help CVs power through on the back of its own revenue. Meanwhile PVs, which include the new successful upstart electric vehicles as well, will hope to achieve an Ebidta margin of 10%.

Every year, the government boasts of lifting millions of people out of poverty. However, as N Madhavan writes, the way it goes about it isn't the most reliable. Poverty is measured by arriving at a poverty line. Those who fall under this line are considered poor by definition. The current achievements have been touted because we're still using the poverty line set in 2012. Experts are now calling for a new line that takes into account the inflation and living conditions.

If you're looking to build a new factory, you might want to wait for just a bit more. In a bid to encourage India's lagging manufacturing sector, the government had put a 15 percent tax rate for new manufacturing facilities. This started in 2019, and led to over 23,000 factories opening in FY20. However, covid-induced lockdowns stalled progress. This scheme's validity expired on 31 March this year. Gireesh Chandra Prasad reports that the government is likely to restore this concessional rate in their next Budget. A lower tax rate is a great incentive for India's manufacturing sector to take off, and the new government is counting on it.

We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.

Show notes:

Seven years on, GST still sparks Centre-state friction

Why the mutual fund industry is betting on duration funds 

Tata Motors says demerger will allow all businesses to unlock potential

Why India must count its poor accurately

Building a new factory? Budget may extend concessional tax rate for a year

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, June 26, 2024. My name is Nelson John. Let's get started:

Traders booked profits on Wednesday after India's benchmark indices Sensex and Nifty opened at fresh all-time highs on Tuesday and climbed higher still. Sensex, which had opened at a record high, created a fresh all-time high of 77,851 points, but later pared some gains and closed 0.05 per cent higher from its previous close. Similarly Nifty touched another record at 23,664 points, before coming off its high and closing 0.18 per cent above its previous close. 

Saudi businessman and chairperson of energy giant Aramco Yasir Al-Rumayyan has been on the board of Reliance Industries for three years now, but he’s missed about a quarter of the meetings. This hasn't gone unnoticed—nearly 40% of the company's public shareholders recently voted against keeping him on board. Another board member, Haigreve Khaitan, faced opposition from a third of the large investors due to his commitments on multiple boards, raising concerns about his availability for Reliance. Despite opposition, both members were reappointed, thanks to the backing of Reliance’s promoters.  Mint’s Varun Sood reports on the event that has stirred discussions about shareholder rights and corporate governance, with experts pointing out potential conflicts of interest. 

Indian filmmakers are getting creative with how they make money from big-budget films. It's not just about box office sales anymore. Filmmakers are now branching out into merchandise and even animations that continue the story on TV or streaming platforms. Take, for example, the movie 83, which starred Ranveer Singh and focused on India's cricket World Cup win in 1983. They didn't just stop at the movie; they launched a whole range of merchandise. We're talking clothes, home decor, even travel bags—all themed around the film. Then there are movies like Baahubali and Singham, which have taken things a step further by spinning off into animated series that fans can watch long after they leave the cinema. Even more interesting is the case with Kalki 2898 AD. Before this film hit the theatres, its spin-off series started streaming on Amazon Prime. This idea of turning films into ongoing intellectual properties (IPs) that live on beyond the theatre is pretty new in India. Mint’s media and entertainment correspondent Lata Jha spoke to industry insiders who told her that diving into merchandise and spin-offs isn’t just about making extra cash; it’s about keeping fans engaged and turning memorable movie moments into something they can hold onto.

India’s ports-to-power conglomerate Adani Group is gearing up for a major expansion, planning to nearly double its capital expenditure to ₹1.3 trillion in FY25. It’s focus is going to be mainly on infrastructure and green energy. The Gujarat-based group’s CFO Jugeshinder Singh, shared that this massive capex, up from ₹70,000 crore in FY24, will be financed through a mix of 30% debt and 70% equity. This includes internal accruals and capital from promoters. A significant portion, about 85%, will be funneled into infrastructure and utilities. This includes ₹34,000 crore in renewable energy, ₹7,000 crore into the ports business, and ₹4,200 crore in the data centers sector under the unlisted AdaniConneX. The rest will be distributed among airports, roads, and energy equipment manufacturing. Mint’s Anirudh Laskar and Nehal Chaliawala report on the development in one of India's most aggressive expansion drive. 

The monsoon season, crucial for India's agriculture, has had a shaky start this year. Spanning from June to September, the season typically accounts for 75% of India’s annual rainfall, which is vital for crops, filling reservoirs, and supporting farm incomes. Despite arriving two days early on May 30 in Kerala, the rainfall has been significantly below expectations, with a 19% deficit as of June 25. This uneven distribution has led to severe droughts in some states and floods in others, impacting the critical planting season for kharif crops like rice, pulses, and cotton. Mint’s Sayantan Bera explains how a subnormal monsoon could affect India’s economy. 

Mango - the “king of fruits” - has been cultivated in India for over 4,000 years. The country boasts over a thousand varieties of the fruit. Be it chausa, langra, dushehri or alphonso, we Indians love our mangoes. Our farmers produce more than half of the world’s mangoes. Despite India being the world’s largest mango producer, the country struggles in the export market. Less than 0.5% of its annual mango production is exported due to the delicate nature of India's most beloved cultivars, which do not endure long-distance travel well. This limitation contrasts starkly with mango varieties from Mexico and Brazil, known for their thicker skins and longer shelf lives. Moreover, the significant freight costs associated with air transport further complicate exports. The strict regulatory requirements of importing countries also pose hurdles. These include irradiation in the U.S. and hot water treatments in the EU, which can alter the mango's flavor and quality. Consequently, a large portion of Indian mango exports ends up in the Middle East, which has less stringent standards. The broader Indian mango industry faces a pressing need for innovation and support to enhance its competitive edge on the global stage. Sayantan takes a deep dive into India’s mango industry which, with targeted efforts and government support, can someday achieve the global acclaim its product deserves. 

We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.

Show notes:

Why Reliance’s investors opposed board roles for Saudi businessman and Khaitan

Filmmakers launch merchandise, spin-offs of tentpole movies for enduring income

Adani Group to nearly double FY25 capex at ₹1.3 trillion

Mint Primer: Ever seen the rain? The price of a truant monsoon

Why much of the world hasn't tasted Indian mangoes

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, June 25, 2024. My name is Nelson John. Let's get started:

The equity markets rose slightly on Monday. Nifty was up by 0.16 percent, while Sensex edged up by 0.17 percent. 

Imagine investing a hundred rupees into a business, and recovering nothing. You might brush it off, but you'd still like to have made some money off your investment. Dutch investment firm Prosus invested a total of 530 million dollars into Byju's. For that money, it was hoping Byju's could change the education sector in India. But yesterday, it wrote off its entire investment. Prosus's investment was worth around 2 billion dollars just a couple of years ago. But since then, the edtech has had a huge fall from grace, running into financial issues such as alleged misselling and billions in unpaid debt. Mint's newest writer Mansi Verma explains why Prosus gave up on any hopes of making money off Byju's.

If you've thought of buying an electric car, you would have understandably been worried about it dying on you on the road. And unlike their fossil fuelled cousins, chargers for EVs aren't as widespread as petrol pumps are. Currently, India is home to only 12,000 charging stations. But EVs aren't just environmentally friendly — they are also really cheap to drive. The next best thing is a hybrid car: a petrol or diesel engine with a small electric engine too. These don't need to be charged separately: the internal combustion is enough to power this too. Sumant Banerji writes a detailed story on the emergence of hybrid cars, and why carmakers are pushing for this new category of vehicles to take over the Indian market.

Recently, the government cancelled the National Entrance Test for postgraduate entrances just hours before the test was to commence. One of the fears was that the test had been hacked, and the questions uploaded on the "dark net". Devina Sengupta and Krishna Yadav explore this possibility. Cybersecurity experts told them that while such leaks would be rare, they could have occurred when the papers are set or being sent for printing. However, such breaches are more common in areas such as banking or IT. As Devina and Krishna note, competitive exams may be their next target.

The Mahatma Gandhi Rural Employment Scheme is the biggest such initiative anywhere in the world. It guarantees anyone at least a hundred days of employment. But now, instead of being paid in cash, MNREGA employees could be paid in grain. Puja Das reports that the centre is planning on offering rice as part-payment for the workers due to rising rural distress and swelling granaries. The current rate differs from state to state, but ranges between Rs 234 and Rs 374 a day. 

Look at any household objects you have — chances are, the tag says "Made in China". Understandably so, since no other country has the manufacturing prowess that our neighbours do. But for two years, the US overtook China as India's biggest trading partner. Political tension between India and China as well as concerns of China flooding the Indian market with cheap and low-quality goods turned out to be to the US's benefit. But not for long: This year, China is back as India's preferred trading partner. Sumant, who also wrote the hybrids long read, explains the hot and cold Indo-China relationship, and how it affects the business between the two countries.

We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.

Show notes:

Prosus gives up on Byju’s, writes off its entire investment in edtech firm

Hybrids have made a comeback in 2024. Will they spoil the EV party in India? 

Exam mess casts cyber scare over education

Centre in a first may give rice as part of MNREGS wages

How China pipped US to become India’s largest trading partner

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, June 24, 2024. My name is Nelson John. Let's get started:

Let’s first jump onto the clean energy bandwagon. The Adani Group plans to invest between 25,000 and 27,000 crore rupees (or close to 3 billion dollars) in its first pumped-storage hydropower (PSH) facility. According to Mint’s Anirudh Laskar, Adani Green will set up 5 gigawatts of PSH capacity over the next five years. This process involves moving water between two reservoirs at different elevations to generate electricity, essentially functioning like a giant battery that stores power during periods of low demand, and releasing it when needed. This technology is particularly essential for ensuring stable, round-the-clock power supply, unlike the intermittent nature of solar and wind energy. The planned facilities will be located across Maharashtra, Andhra Pradesh, Tamil Nadu, and Telangana.

Diving into our second highlight of the day: In a world increasingly shaped by technology, smartphones may soon face obsolescence. The smartphone, often hailed as the Swiss Army Knife of the digital age, is now threatened by innovations like extended reality glasses, gesture-based interfaces, and brain-computer interfaces such as Elon Musk’s Neuralink. Musk envisions a future where devices, such as the Neuralink, could render smartphones redundant by directly interfacing with the human brain to perform all the current functions of smartphones. And it isn't just Musk. Tech and internet analysts have long speculated about a future where wearables and embedded chips could supplant the functions of smartphones. What challenges could this future pose, and which technologies could dominate this transformative tech landscape? Mint’s Leslie D’Monte explores these questions in today’s Mint primer.

Now, we will shift focus to regulatory developments: Indian authorities are looking to expand their scrutiny beyond LinkedIn and Samsung to include more local branches of multinational corporations. In fact, six unlisted Indian units of MNCs are now under the lens of the Registrars of Companies. Officials are meticulously reviewing disclosures and shareholding information of these companies, as reported by Mint’s Gireesh Chandra Prasad. Earlier this month, the RoC in Uttar Pradesh found that two Samsung subsidiaries had failed to adequately disclose Samsung Electronics' executive chairman Lee Jae-Yong as a “significant beneficial owner." Last month, LinkedIn's Indian subsidiary was penalised 27 lakh rupees for failing to comply with SBO reporting standards, involving several top executives, including Microsoft's CEO. A source informed Gireesh that India’s business landscape is expanding rapidly, with approximately 150,000 new entities registering annually. This growth underscores the need for stringent regulatory oversight to maintain order and prevent future complications.

Moving on to our fourth story of the day. In a rapidly growing economy like India, the challenge of generating sufficient jobs to meet demand is formidable. Despite significant economic growth, many educated young Indians find themselves underemployed, leading to widespread frustration and discontent among the youth. This employment crisis has also had political implications, as evidenced in the recent election outcomes, which saw the ruling BJP lose its absolute majority, resulting in a coalition government. Compounding these challenges is the widening economic disparity with the wealthiest 1% of Indians controlling 40% of the nation's wealth, while the bottom 50% owning just 6.4%. Despite these challenges, experts said the government’s significant investments in capital expenditure has been pivotal in driving India's rapid economic growth.As Prime Minister Modi begins his third term, there is increasing focus on recalibrating economic policies to ensure inclusive growth across all segments of society. Mint’s senior editor N Madhavan examines the need for Modi 3.0 to craft a new economic blueprint. 

Wrapping up today's episode with some positive news for consumers: In a meeting held in New Delhi on Saturday, the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, announced significant reductions in tax rates on essential items, as well as measures to simplify business operations. The tax rate on everyday items such as milk cans and solar cookers has been reduced from 18% to a more consumer-friendly 12%. Besides, students will also benefit from GST exemptions on hostel stays exceeding 90 days, provided the monthly fee is below 20,000 rupees. Furthermore, in a move aimed at easing costs for daily commuters, GST has been waived on platform tickets and other railway-related services. E-commerce sellers will also see a reduction in the tax collected at source from 1% to 0.5%, which is expected to free up working capital for thousands of small and mid-sized businesses. The Council also proposed legislative changes to provide relief to businesses, including waivers on penalties and interest for tax demands from the early years of GST implementation, provided these are settled if settled by March 2025. Mint’s Gireesh Chandra Prasad provides further insights into these developments. 

We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.

That’s all for today. Thank you for listening.

We're eagerly looking forward to our next Top of the Morning episode, which will be packed with fresh business news. Until then, have a great day!

Show notes:

Adani Group plans $3-billion push for new clean-energy business

Mint Primer: Will XR glasses, Neuralinks kill smartphones?

Indian units of more MNCs under beneficial ownership glare

Why Modi 3.0 needs a new economic blueprint

53rd GST Council meeting: exemptions and rate cuts

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, June 21, 2024. My name is Nelson John. Let's get started:

Indian benchmark indices, Nifty and Sensex, opened at record levels and touched new highs during the session before ending the day marginally higher, with Sensex up 0.18 percent and Nifty up 0.22 percent.

From next June, every new smartphone and tablet sold in India will need to have a USB-C charging port so that consumers can charge all their devices with just one type of charger. The rule, which will include laptops by 2026, is part of India’s efforts to align itself with global standards set by the European Union to enhance convenience and reduce waste.

The new rule doesn’t apply to feature phones and wearables for now, but it's a big step in the right direction. The Indian government said it plans to enforce the new standard vigorously. Companies that fail to comply will face penalties under the Consumer Protection Act, Mint’s Dhirendra Kumar and Gulveen Aulakh report. There's also a push for makers of basic phones and other devices to voluntarily adopt USB-C ports, which would further unify charging standards. Leading smartphone makers such as Xiaomi and Oppo have already voiced their support.

Sebi has issued a stern directive to Religare Enterprises Ltd, ordering it to comply with securities law. The development unfolded as the Burman family, promoters of Dabur, made moves to increase their stake in Religare through an open offer.

Sebi instructed Religare’s chairperson Rashmi Saluja and the board to seek necessary approvals from the Reserve Bank of India within a week. The action highlights Sebi’s concerns about Religare's attempts to obstruct the open offer by the Burmans, who are significant stakeholders in Religare through various family-owned entities. Sebi intervened despite resistance from Religare – which expressed doubt about the Burmans' ability to improve the company’s management – highlighting the importance of adhering to the proper procedures in an acquisition. Mint’s Ranjani Raghavan and Neha Joshi report.

Apple and Google are diving deep into generative AI, and making smartphones more capable in the process. Apple recently announced ‘Apple Intelligence’, a set of tools that will allow iPhones, iPads and Macs to perform tasks such as transcribing calls, crafting emails, and generating images and emoticons. Google rolled out similar capabilities last September, and Samsung also offers similar AI features on its top-tier devices. However, not all AI tasks are processed on the device itself. Apple's Siri will soon be able to handle simple queries on-device but could tap OpenAI’s ChatGPT for more complex requests. Google’s Pixel phones and Samsung’s devices need internet connections to access hefty AI models stored in the cloud.

For now, these cutting-edge AI features are limited to premium models. Apple’s AI suite is exclusive to its 15 Pro and Pro Max iPhones, while Google and Samsung have integrated AI into their latest devices, with potential expansions on the horizon. What’s next for smartphones as tech giants throw their hats in the AI ring? Mint’s tech correspondent Souvik Das has the answers in today’s Primer.

Omnichannel furniture retailer Pepperfry ventured into the furniture rental market in 2017, tapping the ‘sharing economy’ vibe that appealed to India's young urbanites. At the time, the company estimated that the market could one day be worth $1 billion a year. Despite a promising start, Pepperfry ended its rental services in 2019, saying the market was too niche.

There are still 157 companies worldwide that employ the rental model, including Indian firms such as Rentomojo and Furlenco. But most are still small, thanks to a complex market with overestimated potential. For instance mattress company Wakefit, which started in 2016, later ventured into furniture and saw revenue rise to 813 crore rupees by 2023. Rentomojo made 121 crore that year. These companies face plenty of challenges, from complex logistics to quality issues, and many renters have endured poor service and delayed pickups. Some companies are adapting by diversifying into appliances and electronics, while others are focusing on logistics to improve their services. Mint’s startup correspondent Priyamvada C takes dives deep into the workings of furniture rental startups in today’s Long Story.

India is facing a brutal heatwave, with the Health Ministry reporting 110 heatstroke-related deaths and more than 40,000 suspected cases as of June 18. Most of the victims are in rural areas, where many people work outdoors and have limited access to healthcare. Madhya Pradesh has recorded the most heatstroke cases, followed by Rajasthan and Andhra Pradesh, while Uttar Pradesh has seen the most deaths, reports Mint’s Puja Das.

We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.

Show notes:

Common smartphone chargers from next year; laptops to be covered from 2026

Sebi directs Religare board, Saluja to seek approvals for Burman open offer

Mint Primer | AI phones on the horizon: promises and pitfalls

Rent vs buy: Why startups failed to shake up the furniture rental market

India reports 110 heat stroke deaths, 42,000 cases till 18 June