Tag: India growth

Investors finding growth in India but valuation comfort in China: CLSA

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Shaun Cochran, Head of Research at CLSA, believes that while investors are drawn to India for its robust growth potential, they are also attracted to China’s compelling valuations.

India has earned investor confidence over the past two decades, he said, highlighting the nation’s ability to consistently deliver growth, coupled with the presence of robust and liquid companies that offer attractive investment opportunities.

Also Read | Nifty Realty hits record high, rises 65% in 2023; is more upside left?

However, the challenge for investors while looking at India is that it will always command premium valuation because it has growth, he said.

Also Read | Rupee is near an all-time low against the US dollar and mild depreciation is likely to continue

Also Read | Gold shines at new highs on falling US dollar index: Should you buy, sell or hold?

Herald Van Der Linde, Head of Asia Equity Strategy, presented a different perspective. Even if China performs exceptionally well, he predicts the capital flows to the country to likely come from other Asian economies like Korea, Japan, and Taiwan as people want to stay with India because of the strong growth story.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Economists flag slowdown in rural India; FY24 GDP growth seen at 6.1-6.2%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Indranil Pan, Chief Economist at Yes Bank says India’s rural economy is witnessing a significant slowdown and he would pencil in a conservative gross domestic product (GDP) growth at 6.1-6.2% for the year.

“The upper end of the income pyramid continues to spend quite significantly and that is holding up the consumption demand to an extent. The lower end is surely suffering, and the rural economy is possibly one of the worst hit,” Pan remarked.

The International Monetary Fund (IMF) has increased its India GDP projections by 20 basis points (bps) to 6.3%, while the Reserve Bank of India (RBI) has a 6.5% forecast for the year.

Even though some of the country’s top information technology (IT) companies, including Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro, have reported good deal pipelines, the overall atmosphere suggests that the deals are relatively lower in value. This, he argued, will affect consumption behaviour in the near future.

He pointed out that the fast-moving consumer goods (FMCG) sector has already indicated lower volume growth, reflecting a lack of balanced growth expectations post-COVID-19.

Sakshi Gupta, Deputy Vice President and Senior Economist at HDFC Bank, agrees with Pan on a 6.4% growth rate for the next year.

She noted that the formal sector employment data reveals a mixed hiring landscape. While urban unemployment rates are increasing, there has been a slight moderation in the unemployment rate in rural areas.

Gupta prefers to retain a 6.3% target for the year. She anticipates tighter financial conditions in the future, indicating that the latter part of the year may see a decrease in economic growth compared to the first half.

For more details, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zoomed Out: Three things that make India the beacon of hope for world economic growth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

India has become a beacon of hope for the world economy with its sound macroeconomic fundamentals. According to data released by PHD Chamber of Commerce, India is the only economy among the top 10 leading economies which has shown consistent improvement in its macroeconomic performance during the last 4 years, owing to its effective dynamic policy environment.

The government has taken the country’s demographic dividend and consistent growth and fused it with favourable policy support to script a future that makes India the world’s bright spot. There are three key factors that will enable this.   

Demographic dividend

 India’s demographic dividend is a key factor in the country’s economic growth. With a large and expanding working-age population, it is poised to witness a surge in productivity and output. This demographic advantage, combined with pent-up growth provides an opportunity for India to accelerate its economic growth in the coming years. 

Technology has also played a crucial role in India’s economic growth story. Forward looking policy campaigns like ‘Digital India’ have helped digitalize majority of the economic activity and increase the digital footprint of Indians. The success of UPI and RuPay financial services has led to global adoption by major economies. The Digital India Bill, which is under works, will further empower Indian companies and entrepreneurs to rapidly scale up their tech solutions. This will help upgrade India’s ability to solve multi-dimensional challenges by enabling people to collaborate from different and remote domains.  

With a strong emphasis on ‘women- led development’, the Indian government has aimed at empowering women, bringing the unbanked into formal banking, and promoting digital transactions. These measures have increased financial inclusion and helped push many of society’s poorer groups into the formal sector, driving economic progress. 

Progressive policy making

Furthermore, the government has implemented several policies and programs to address various outcomes related to gender equality and women’s empowerment. These include initiatives to improve livelihood and employment opportunities, health and nutrition outcomes, education and skill building, prevention of violence against women and girls, and access to basic amenities like water, sanitation, housing, electricity, clean fuel, and childcare facilities.

The policies and programs are designed using a gender lens and allocated budgets are outcome-focused. The Indian government has also implemented a National Policy for Women Empowerment and schemes such as Beti Bachao Beti Padhao, Mahila E-Haat, UJJAWALA among others, to empower women.

India’s government has continuously implemented a progressive regulatory framework that aligns with global policy standards. It’s strong macroeconomic fundamentals provide a solid foundation for the country’s economic trajectory. According to the World Bank, India’s economy is expected to grow by 6.3 percent in fiscal 2023. Moreover, the International Monetary Fund (IMF) has projected it to grow by 6 percent in 2023, one of the fastest pace of any major economy.

Encouraging investment

The government has proactively attuned policies to support growth in a very challenging economic environment globally. Economic policies in India have been geared to promote growth by encouraging investment, innovation, and entrepreneurship. The “Startup India” project has given young entrepreneurs a venue to promote their ideas and obtain finance, thereby encouraging innovation and employment development. 

In conclusion, India’s strong macroeconomic fundamentals, combined with progressive policies and initiatives, have cemented its position as a “bright spot” in the world economy. The country’s demographic dividend, untapped growth potential, point to a positive future for India’s economic prospects and provide reasons of optimism. 

—The author, Alexander Reisch, is Managing Director, IPM India, a country affiliate of Philip Morris International, Inc. (PMI) in India. The views expressed are personal.  

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Amitabh Kant: Centre did its bit, now states need to buck up

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The private sector needs to be the wealth creator for India if the country wants to achieve its $10 trillion economy dream, former NITI Aayog CEO Amitabh Kant, currently India’s G20 sherpa, said on Wednesday. Kant, speaking during the launch of his book, Made In India, added that the government too needs to become a facilitator to achieve the $10 trillion target by 2030.

The book was launched in the presence of Sanjiv Bajaj, President of CII; Naina Lal Kidwai, Chairperson, India Sanitation Coalition; TV Narendran, MD & CEO, Tata Steel; and Mallika Srinivasan, CMD, Tractors and Farm Equipment Limited (TAFE). Made in India focuses on how the private sector should flourish and the government too must pick up pace in many areas.

During a panel discussion following the book launch, Kant stressed on the fact that India needs to to fire on all cylinders, including manufacturing and agriculture, to achieve this target.

Also read: Government must use buffer stocks, import taxes more aggressively to manage food inflation: Ashok Gulati

He added if states like Uttar Pradesh, Rajasthan, Chhattisgarh, Bihar, and others grow 10 percent for the next two-and-a-half years, then India is bound to grow. He said “the central government has done its bit and it’s time for states to get active … even if India has 10 state champions, India is bound to grow”.

Kant further emphasised that states need to buck up to support India’s growth. “We are accelerating growth now and we will see Tier 2 and Tier 3 cities growing too,” Kant said.

Commenting on the challenges India faces, Kant added, “India needs to industrialise without carbonising.” India is growing at a time when the world has begun to look inward following the coronavirus pandemic, Kant added.

Meanwhile, Bajaj said, “Leveraging the capability of our youth is (our) big strength.” He added that entrepreneurship and research and development (R&D) will burgeon into massive industries and stressed on the importance of upgrading skills in both public and private sectors.

Also read: Fitch affirms India’s rating at BBB-, maintains stable outlook

Concurring with Bajaj’s point, Narendran it’s time India shifted its focus from academics to skilling. “A lot needs to be done on skilling,” Narendran said, adding, “For the last 75 years, India has focussed on education; it now needs to focus on skilling over the next 25 years.”

Further, Bajaj said the need of the hour is consistency on the part of the government where regulations are concerned. “If you add risk to business, we tend to become conservative.” He said India’s continued growth is a testament to “resilience and quality”

“The quality of growth is unparalleled right now, especially in insurance, MSME (micro, small, and medium enterprise) sectors,” Bajaj added.

Mallika said she strongly believes that R&D and deep tech can make a huge difference for India. Lauding India’s role in manufacturing, she said, “Today, the world’s confidence in India as a manufacturing centre is high.” She said India needs to absorb deep tech in existing businesses as well, and not just startups.

Meanwhile, Kidwai said India Inc’s dependence on subsidies needs to come down. In fact, she is in favour of doing away with subsidies entirely. “We don’t need an industry that is incapable of standing on its feet; we need to do away with subsidies in the long run.” She added that this subsidy-dependent approach will come in the way of attracting foreign companies to set up shop in India.

Also read: India says banking system sheltered from wider sector turmoil

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

This is India’s big moment to shine, says digital services provider Incedo CEO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Incedo, a US-based digital transformation services and platforms provider, has bucked the trend of the recent tech correction that has assailed many companies. Rather than retrenching, the company is, in fact, expanding — it recently expanded its Global Delivery Centres in Pune and Chennai, and has plans for global expansion in years to come.

In an interview with CNBC-TV18.com, Incedo Co-Founder and Chief Executive Officer Nitin Seth said Incedo crested the recent troubles as it is a services-focused company, and that the products sector witnessed the lion’s share of the correction — so much so that Incedo is anticipating a 30-35 percent growth in 2023.

“We are very bullish on 2023. We are projecting a 30-35 percent growth. There are different technologies within the technology space — the digital space continues to be very, very robust. The products space — the platforms space — I think, there was irrational exuberance and a lot of spending happened in the past couple of years,” Seth says.

US-based Seth, who was in India for the Global Delivery Centre expansion, says returning to the country always recharges him and that India’s moment to shine has come.

Also read: Digital India Act set to replace Information Technology Act of 2022

“I come to India I feel recharged. Seriously, the energy levels — in technology, services and other industries — this is our moment. Energy levels and the opportunities are incredible,” Seth says, adding, “COVID has hit many industries badly. It has hurt workforce, and customer service very badly. India has managed COVID quite well. For the Indian industry it has been quite a boon… given what has happened elsewhere… the excitement the world is feeling of India is quite something.”

Recently, several technology companies were gutted by a sharp fall in COVID-fuelled demand, with several announcing layoffs in the tens of thousands, and others — which were overvalued — taking other, drastic cost-cutting measures.

“Certain companies that benefited from the tech boom in the last two years were overvalued,” Seth says, while also laying the blame at the feet of Big Tech. “The likes of Amazon, Microsoft and Google were equally or more to blame.”

Also read: Meta mulls a Twitter competitor codenamed ‘P92’ that will be interoperable with Mastodon

“Because what happened in the US was, given the great growth of demand in cloud, if you’re an architect, and you were paid $200,000, in six months you were paid $300,000 — and these companies did that. They have a solid market presence. These three big giants contributed a lot to the frenzy,” Seth explained.

“In terms of services, there is much less of a correction; it was not as volatile in terms of demand, so the downside was also not that much,” he added, explaining how Incedo insulated itself. Further, he said, the nature of services is that there is always a demand, and while the sector may see lower growth, there is no reason to be concerned. “In the last two years, companies were reporting 35-40 percent (of growth). This year, it may not be that much.”

“But the level of spending they have established on cloud, automation, data, AI, etc, over the last two three years has gone up. This year, they are not going to spend more, but they will spend just as much. The growth rate may come down, but the absolute level of spending — the curve has already shifted and is stabilising at a level that is significantly higher than it was before,” Seth explained.

Also read: Gen Z just wanna be ‘techies,’ and they prefer work from office: Report

Incedo — which offers services in banking, wealth management, telecom, life sciences and product engineering — has a global workforce of 4,000, including 3,000 in India. He says they will add 1,000 more employees just in India this year.

“We are very bullish … we largely work with Fortune 100 or Fortune 200 companies, not small startups. We are 100 percent focused on digital. From both the client perspective and the nature of work we do, the demand is very strong,” Seth says.

He said Incedo is developing a  global footprint, but India is where the sharpest growth will be seen. “In addition to the US and India, we set up shop last year in Mexico, but the disproportionate growth is certainly in India — from talent, capability, and work ethic perspectives, India offers a unique proposition,” he said.

Incedo has five centres in India — it started with Global Delivery Centres in Gurgaon and Bengaluru. A couple of years of ago, it started centres in Hyderabad and Pune. Last year, it set up a centre in Chennai and this year, it is expanding in Pune and Chennai.

Also read: India among top 5 countries most affected by data broker breaches, report reveals

Seth sounded confident that they will achieve their growth target, which he said is sustainable. “The overall digital market is growing at 18 percent. Last year, our CAGR (compounded annual growth rate) has been 28 percent. Our target is 27-30 percent. We are growing faster than the market. We believe that is an aggressive but sustainable growth rate. Anything more will not be sustainable — talent, deliverables will suffer. That is how we want to consistently grow,” he said.

The key is how a company develops and absorbs its talent, he added.

“You have to build your pyramid in a way that you absorb your talent at the bottom — if you bring talent at the top, it will be difficult to assimilate into your culture and work processes. Work can get done, but culture and assimilation is important. Knowledge management is a critical thing. There are multiple supporting processes that you can put in place.”

On future plans

Given that most of Incedo’s clients are in the US, Seth said the company’s focus for the next few years is on Latin America.

“We have been researching that market for about 18-24 months. We did our secondary research, primary research, worked with partners in different geographies, and then finally, at the start of 2022, we set up our first centre in Guadalajara, Mexico. We are looking at other markets — Costa Rica, Colombia, etc. Every market is unqiue, it has its own culture, and we want to assimilate that into Incedo’s culture. And it is not an easy process,” he says.

However, that does not mean they are not looking at other parts of the world.

“By 2024-25, we aim to go public, and around the same time, we will be looking to make a major market expansion into Europe,” Seth said.

Also read: US and India to sign an MoU on semiconductors, what will it entail?

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Microsoft CEO Satya Nadella says there will be 2 more years of pain before a ‘massive’ tech rally

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Microsoft CEO Satya Nadella said the world — specially the tech sector — should brace itself for two more years of struggle before it can see growth again. According to Nadella, the current downturn being experienced by the tech industry is because the demand spurred by the COVID-19 pandemic has begun to cool down, and that, coupled with a recession in several parts of the world, has resulted in a “normalisation.”

That said, Nadella expects the tech industry to experience a massive growth cycle after these two years of pain.

“I would say the next two years are probably going to be the most challenging, because after all, we did have, you know, a lot of acceleration during the pandemic, and there is some amount of normalisation of that demand,” Nadella told CNBC-TV18 during an interview, adding, “There is a real recession in large parts of the world. And so the combination of ‘pull forward and recession’ means we will have to adjust.”

Nadella added that he is extremely optimistic about India — given its wealth of talent and opportunities.

“(If) we see all of the world’s software developers, India is No. 2 already. And in fact, when it comes to AI (artificial intelligence) projects, India is No. 1. And so… this next phase is going to be an AI age (and) you have to be long on India,” Nadella said during the interview.

There are three factors that add to his optimism about India, he added. “India is a hotbed for startups, I think it’s No. 2  in the world in terms of startups,” Nadella said.

“(Secondly), what strikes me as just phenomenal, is people upskilling themselves in India is double the global rate. And all that’s translating ultimately into Indian growth, into Indian productivity,” Nadella added.

And finally, the fact that India is growing at 6-7 percent is the cherry on the cake.

Nadella said the most exciting, fundamentally unique thing happening in India right now is that there is a recognition that the next stage is digital, and it requires both private sector innovation and public sector participation.

“In the digital ecosystem, progress is being seen in India’s identity system with the payment infrastructure now scaling into e-commerce and healthcare,” Nadella said.

He also touched on the government’s Bhashini programme, which, as per the official portal, “aims to enable all Indians easy access to the Internet and digital services in their own language, and increase the content in Indian languages.”

“The Bhashini programme is fantastic. It’s basically saying every Indian company, and every Indian citizen should have access to AI models that sort of democratise language. So that means I should be able to translate from Hindi to Telugu, Tamil to Kannada, or what have you, without any impedance in any application, and that, to me, is a very enlightened set of policies by the government,” the Microsoft CEO said.

Nadella feels India is one of the exceptions to the challenges assailing many countries, such as inflation, recession, et al. That said, he said it won’t be all smooth sailing this year.

“There are parts of India, Middle East, Latin America, some of the other parts of Asia, where things that are green. But I think 2023 will be much harder. So yes, we want to be very cautious in our outlook,” he said.

However, Nadella added, he was bullish right out of the gate in 2023. “I think we’re going to have a supply cycle that’s going to persist and a classic demand cycle; there will be some economies that will go through a recession — some deep, (others) minor — then inside of that there will be pockets of growth like India,” Nadella said.

That, he said, means Microsoft will have to see to full operational focus, making sure its expenses are in line with its revenue growth — manage the short term but make sure it’s investing for the long term.

Nadella further said it is time for the tech sector — especially in the light of prevailing circumstances — to take a deep look inwards, and change with the times, respond to the new economic reality.

Referring to the recent dunking tech stocks took, Nadella said, “The markets are smarter than us all. And I think they are reflecting on where the growth is coming from.”

He said while he doesn’t equate stock performance with economic performance, it is imperative to keep an eye on the GDP. “If we believe software and digital infrastructure is going to be important in construction, energy and manufacturing, then long-term, you have to be long on tech industry.”

That does not mean any company can ignore the short-term view and stop evolving into a more efficient, productive machine. “Will we have to go through our own cycles around productivity? Absolutely, like anybody else. But in the short run, what we have to focus on is our own productivity and making sure we are efficient,” Nadella said.

“I think overall, quite frankly, whether it’s for us at Microsoft or the tech sector, it’s going to be very important to look inside and say, ‘Are we as efficient as we need to be to be competitive?’ I mean, at the end of the day, just because we are a technology company doesn’t mean that we are the most efficient at what we do,” Nadella said.

Further, Nadella said, it is important to distinguish between what he terms as tech industry employment and tech employment. “Overall, tech jobs actually increased. Tech jobs now are coming in financial services, in energy companies, in retail, even in manufacturing and that’s healthy, because in the long run, all those employees are going to consume more tech infrastructure,” Nadella said, adding, “When we think about our cloud business, long-term, we’re bullish, because of the fact that there’s more employment outside of the tech industry. That’s what we’re banking on.”

Also read: Microsoft CEO Satya Nadella says moving to cloud fully to make operations 75% more efficient

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Time for startup wealth creators to unleash a new era of giving

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

With over 100 unicorns and 80,000 startups, India is the third-largest startup ecosystem globally. Startup wealth creation in India continues its upward trajectory with unicorn and gazelle founders accumulating greater amounts of wealth at a much younger age. The IIFL Wealth Hurun India Rich List 2022, for the first time in a decade, featured 100 start-up founders with a cumulative wealth of INR 5 trillion. Interestingly, the average age of the startup founders was only 40, and of these 100 startup founders five featured in the top 100 on the 2022 list. In fact, the cumulative wealth contributed by unicorn and gazelle founders to the rich list increased by 35 percent this year.

Rising wealth creation among this dynamic and entrepreneurial cohort is a trend that can have positive implications for the Indian philanthropy sector. According to the India Philanthropy Report 2022 published by Bain & Company and Dasra, the total private philanthropic funding in India is estimated to grow at approximately 12 percent annually in the next five years. The 2021 edition of the report noted that the average age of giving in India is dipping every year, indicating an earlier induction for next-generation givers into philanthropy.

To add to this, the disproportionate increase in wealth during the pandemic catapulted Indian startup founders and entrepreneurs into philanthropy much earlier in their careers. The giving potential of this vibrant cohort of disruptive go-getters remains largely untapped and could potentially unleash a fresh wave of philanthropic leadership to reimagine giving in India aimed at meeting the country’s social sector fund requirement.

Change in perception towards wealth 

Indian startup founders have unlocked a dynamic ecosystem of innovation in the country. Today, these entrepreneurs as well as several in leadership roles within these startups, who have garnered significant wealth and can contribute towards India’s development story, are increasingly scouting for avenues to engage meaningfully. The pandemic has brought about the realisation that life is uncertain and time is finite, therefore, they must contribute and give back to society in whichever way possible.

The urge to leave behind wealth for future generations is dwindling and less desirable amongst this cohort, therefore presenting them with a multitude of options to positively leverage their wealth and address a plethora of pressing societal issues. In fact, they are keen to leave a legacy for the social impact they create, rather than for the amount of wealth they hold. This generation of entrepreneurs and startup wealth creators want to make efforts to bridge the huge inequality gaps that prevail in our country. It is not about doing one big thing in one year; it is about consistently giving over a long period of time to bring about sustained change.

We are increasingly witnessing many of them engage in philanthropic endeavours that have the potential to reimagine giving approaches, thus unleashing a new era of bolder, innovative, and even more catalytic philanthropy in India. An interesting example to note is the ACT Grants, a collective of venture capitalists, tech entrepreneurs, startup founders, and social impact leaders who came together in 2020 to support emergency response to COVID. Today, it’s a robust community that seeds innovations capable of addressing complex social problems at scale across diverse sectors. Another example is Mekin Maheshwari, who has been leveraging his skills, time, and effort to build Udhyam Learning Foundation and Global Alliance for Mass Entrepreneurship, which are driving innovative change in the field of education and entrepreneurship. 

Rainmatter Foundation, another social initiative by a start-up team, funds fellowships and organisations working to restore the environment through direct action, research, climate advocacy and policy. Rainmatter Foundation also funds community projects and on-the-ground conservation and restoration endeavours.

Untapped philanthropic potential 

This spirited cohort has all the ingredients to reimagine the philanthropic landscape in India. They are technology friendly, have a higher risk appetite, and are willing to invest their time, money, and effort to solve complex developmental challenges. What is most exciting is that they are inspiring their personal networks, fellow startup founders, and entrepreneurs to engage in philanthropy by exploring newer approaches to giving and having conversations in public about their efforts. The Young India Philanthropic Pledge is a manifestation of just this. The pledge is aimed at inspiring Indians below the age of 45 to make thoughtful philanthropic investments by picking impactful projects and investing their funds, experience, and expertise in them. Making a pledge becomes a lifelong commitment and helps ensure continuity in strategic philanthropic intervention.

Another characteristic of this cohort is their keenness to deepen their knowledge about the philanthropy sector by connecting and engaging with evolved philanthropists and sector experts. This helps to create a sense of community for givers so they can leverage each other’s learning experiences and explore synergies for collaborative giving. An example of such a network is GivingPi, which provides philanthropy-focused offerings and a robust ecosystem to support family givers in achieving their philanthropic vision. A space of trust, openness, and honesty to share lived experiences, explore collaborations, and enable trusted connections will be of incredible value to these entrepreneurs, who are increasingly engaging in philanthropy and meaningfully engaging their families as they shape their giving journeys.

Need for an enabling ecosystem to accelerate giving 

As the startup ecosystem in India continues to catapult to newer heights, it will be critical to unleash the giving potential of this segment. Their willingness to engage in philanthropy needs to be nurtured and supported with the right means. To that extent, it is important to engage with them and understand their aspirations and challenges. Strengthening the philanthropic ecosystem with credible NGO data, insights, giving vehicles, and networks to support this cohort will go a long way in harnessing their giving potential.

India’s startup founders and wealth creators armed with perseverance, innovation, and ambition are well poised to rebuild India into a nation we will all be proud to leave behind for future generations. The time has come for the intent to meet the ability to build the future that awaits India@100.

—The authors Nikhil Kamath is  Co-founder, Zerodha and True Beacon; and Jyotirmoy Chatterji is Head, Giving Pi, and Associate Director, Philanthropy Labs. The views are personal.   

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India growing faster than official data shows, says Credit Suisse

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

India is growing faster than what is captured by the country’s official data, and it presents a case for an upgrade of equities outlook, a Swiss brokerage said on Thursday. Upgrading Indian equities to ‘benchmark’ from ‘underweight’, Credit Suisse said there is a scope for a growth of up to 14 percent on the benchmark indices.

The brokerage firm’s head of research Neelkanth Mishra said the country will grow at 7 percent in FY24, as against the consensus estimates which peg the real growth to slip below 6 percent.

Mishra told reporters that the consensus estimates are based on official data alone, whereas the brokerage analysis has taken into account a broad data set to arrive at its expectation.

Mishra said the growth in dense fuels — which is typically below the real GDP growth as fuel efficiencies go up — is over 4 percent per annum for the last three years.

Similarly, revenue growths of the BSE500 companies also point out to a faster growth, he said.

“We are expecting a stronger acceleration in India’s GDP growth in 2023 owing to several domestic growth drivers. Revival in government spending, increase in low-income jobs and easing of supply-chain bottlenecks should partly offset the impact of rate hikes, a slowing global economy and the need to reduce the balance-of-payments (BoP) deficit,” he said.

Also Read: Asian Development Bank keeps India’s economic growth unchanged at 7%

The risk factors continue to be dependent on imported energy, reliance on foreign capital and a slowing global economy, he said.

The present inflation situation and outlook does not necessitate more rate hikes, but the RBI may hike purely to thwart any damage on the balance of payments front, he said.

From a markets perspective, he sounded more sanguine about domestic flows.

Mishra said it is a misnomer that China’s difficulties are resulting in higher inflows into India, and added that the flows are driven more by region-based allocations by managers like Asia Pacific and Emerging Markets.

Therefore, it would help increase portfolio flows into India if China’s lockdowns end, he told reporters.

The brokerage is overweight on the financial sector and feels the current high growth in credit will not lead to a spike in non performing assets.

It is underweight on the information technology and the industrials sectors, Mishra said.

Also Read: World Bank expects India’s GDP growth to be better than expected but inflation to stay above 7%

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

$5 trillion economy target postponed to 2026-27: Government

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

High inflation, weakening of the Chinese economy and the Russia-Ukraine war are weighing down the world economy. Amid global headwinds, top government officials briefed the Parliamentary panel on India’s roadmap for a $5 trillion dollar economy after the latter on Monday sought views regarding the same from the Finance Ministry and NITI Aayog.

Sources said the government informed that real GDP growth is expected to be between 6.5 percent and 7 percent in FY23, inflation is to enter tolerance band of 2-6 percent by the fourth quarter of FY23. Meanwhile, the urban unemployment rate, which is at 7.6 percent, would fall further by the end of this fiscal and private capex cycle and could commence in FY24.

The timeline for India becoming a $5 trillion dollar economy has to be postponed because India has lost two years of growth. The $5 trillion dollar target can be achieved by 2026-27. For this, 6.5 percent annual growth rate is needed and inflation should be below 6 percent and US inflation closer to 3 percent.

Watch the accompanying video of CNBC-TV18’s Parikshit Luthra for more details

Also Read: India’s largest hospital chain may surprise the market, says UBS

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Innovation and Indigenization – Unlocking India’s Growth Potential

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Powered by a GDP of $3.4 trillion, India is currently the world’s sixth largest economy and has one of the highest GDP growth rates globally. Estimates show that India will likely clock a 6.8%-7.1% growth rate in FY22-23. However, global economic uncertainties and inflation are looming large and might result in an economic slowdown. Moreover, US-Fed rate hikes, steep tax cuts in the UK, and a slowdown in China, add to this volatile economic environment.

Recently, to discuss the current state of the economy, CNBC-TV18’s Shereen Bhan was joined by N. Venkatram, CEO, Deloitte India. Shereen started the conversation by discussing the current domestic and global corporate mood, especially in light of the Russia-Ukraine war and commodity inflation. While these were major topics of discussion in the beginning of the year at the World Economic Forum held at Davos, India has emerged relatively resilient through these storms. Venkatram also spoke along similar lines and said, “As far as the general mood goes, I think services are doing extremely well. While people are talking about recession, be it in Europe or America, as far as India is concerned, we shouldn’t be talking ourselves into it. There is still a lot of growth left in India for many years to come.” However, he added that the manufacturing and MSME sectors in India have been struggling a little, while we do have exports in pharma and engineering.

The Demand Picture

The conversation then steered towards the demand picture in the current economy. Shereen pointed out that while the demand for two-wheelers and entry level passenger cars seems to have gone down, luxury cars and real estate sales have soared. N. Venkatram, CEO, Deloitte India addressed this and said, “While on the luxury side we’re not seeing abate, the reality is that no one is insulated from the shocks that hit the rest of the world. We were a very connected economy and prices and inflation have been persistent for us even through the pandemic.” This, he opined, has slowed down demand, especially for the mid-sized sector that is contemplating if increasing prices would just result in a piled-up inventory. He further added that in his opinion, inflation might only last till the end of the year and a core price increase could be damaging to businesses.

India and FDI Flows

Globally, central banks, including the RBI, have promoted moving rates higher up and India has seen a decent chunk of inflows with FDIs. In the wake of the economic conflicts between nations, especially with the way China is engaging with the world and vice-versa, India could potentially benefit from the situation. In this regard, Venkatram talked about a recent study carried out by Deloitte which had speculated that when India hits the 5 trillion economy mark, we would require a capital formation of about 8 trillion and at least 400-450 billion dollars of FDI. This doesn’t seem unlikely considering that India has continued to perform well in terms of FDIs. However, we might have taken a slight setback when it comes to becoming ‘China plus one’. While a lot will still get done in India, we might miss some opportunities such as on the currency or Forex side. “I think currency is a strength to us on the services side. So, the 1 trillion that comes from services will become easier. However, if I look at manufacturing in India, we must first build it for internal usage before we build it for the world. We must use this period of recession in other countries to strengthen ourselves and look at import substitution. The large companies that come to India are for the domestic market, which is our strength, rather than for exports”; Venkatram added. Indigenization and import substitution will not only bring down costs, but also de-risk us from the fluctuating rupee, the Deloitte CEO said.

Shereen voiced an important concern next, that despite many advantages, too much indigenization might choke imports and affect the economy negatively. To this, Venkatram reiterated his mantra of playing by our strengths and said that we must focus on in-house research and development. Almost 700 MNCs have their R&D centres in India and it’s time Indian companies also focus on innovations that can cut costs and make us more self-reliant. He gave an example of the automotive sector where India has shown tremendous advancement in recent years and components manufactured in India are being used internationally. The same can be done for, say, the semiconductors sector where there is a gap and a huge potential for growth. “The fundamental premise is if you’re good at R&D and design, the next piece is to make your products of international quality”; he went on to say.

We hadn’t anticipated the recovery process to take as long as it has. The forecast is too clouded by several factors, but as we evaluate the energy crisis in Europe and the slowdown in China over the coming months, we should start to gain some clarity. Considering demand-supply chains for core price hikes, increasing impetus on in-house manufacturing and R&D with indigenization could be the key takeaways from this riveting conversation.

This is a Partnered Post

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow