NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCKNOW* VOL. 18 NO.

260

Tuesday, October 29, 2024

Airtel Q2 shines on tariff hike, BIS, Vietnam probe cloud

livemint.com Africa business uP1 steel imports uP1
 NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCKNOW* VOL. 18 NO. 260

Tuesday, October 29, 2024

Think Ahead. Think Growth.

mint primer QUICK EDIT

Global inflation Ambitious

tamed, how to flight path
Prime Minister Narendra Modi
unleash growth? and his Spanish counterpart
Pedro Sanchez on Monday
inaugurated the Tata Aircraft
BY N. MADHAVAN Complex in Vadodara, Gujarat,
The International Monetary Fund (IMF) in its latest economic review where India’s first privately
has said that the battle against inflation has “largely been won”. Mint built C-295 aircraft will be made
looks at what this means for global economic growth, the tailwinds by a Tata-Airbus partnership.
that support growth, and the risks to it. It’s a military transport plane
and India is to receive 16 of these
Lacklustre show in fly-away condition directly
Global economy is expected to post flat growth
from an Airbus plant in Spain,
Global economic growth (in %)
while another 40 are to be made
in Vadodara. These aircraft will
6.6 replace India’s ageing fleet of
Avro 748s. This project could
support India’s ambition of
3.6 3.3 3.2 3.2 acquiring a civilian aircraft
industry. “This factory is going
to play a major role in the design
2020
and manufacturing of civil air-
2021 2022 2023 2024* 2025*
craft to meet the future needs of
-2.7
India and the world,” Modi said.
Domestic demand is projected
*Estimate Source: International Monetary Fund to soar, no doubt, but it would
PRANAY BHARDWAJ/MINT require heavy capital invest-
What has IMF said What’s the news on the ments, the sort the government
1 about global growth?
IMF, in its World Economic
2 inflation front?
IMF has said that the global battle
might have to subsidize. The
world’s Boeing-Airbus duopoly
Outlook released last week, has against inflation has “largely been is difficult to challenge partly
said that the prospect for global won”. Most economies are because the duo’s sunk costs,
growth has stabilized. It has expected to be either at their largely borne long ago, have
projected global economy to grow inflation target or within a stone’s been spread across a large num-
at 3.2% in 2024. This is slightly throw of it by the end of 2025. ber of planes made over several
lower than the 3.3% growth Headline inflation rate, which
decades. They still have an edge
registered in 2023. While India’s peaked at 9.4% in the third quarter
economic growth rate has been of 2022, is now expected to on economies-of-scale. China,
retained at 7%, the US sees its decline to 3.5% towards the end of though, has its own industry. If
2024 growth estimate rise by 20 2025. This will be lower than the India can competitively make
basis points to 2.8%. However, average inflation of 3.6% during planes, it may be worth a shot.
China’s growth was slashed by 20 the 2000 and 2019 period. And
basis points to 4.8%. IMF does not that’s not all the good news the
expect China to meet its 5% IMF brings. The reduction in
economic growth target in 2024. inflation, it said, has been achieved
But it’s not China alone—Germany
and France had growth prospects
without triggering a recession,
making the smooth landing of the
MINT METRIC
trimmed marginally. global economy a reality. by Bibek Debroy
AFP

In a VIP lounge run by IRCTC,

3 Is the IMF’s growth outlook
rosy all round?
Not really. The IMF projects medium-term
A centipede swims in raita with glee.
global growth, that is five years from now,
The picture of the man’s order
to be 3.1%. This is mainly on account of Should cause the railways some disorder,
weak performances by China, and some
Latin American and European countries.
Where is the millipede meant for me?
That apart, the global economy is being
pulled down by persistent structural
headwinds such as an aging population
IMF MD Kristalina Georgieva. and weak productivity. QUOTE OF THE DAY
As we continue to develop, India’s
pride and influence on the world
4 What are the risks to
global growth?
An escalation in conflicts could
5 Are there any policy
prescriptions?
IMF suggests a triple pivot. Central
stage is increasing... Today, the
upend trade and investment. banks, where inflation is under whole world listens to India
Protectionism is on the rise and control, should offer more support seriously and attentively, and
could worsen post the US election. to economic activity. Efforts everyone discusses the possibilities
A deeper-than-expected slowing should be made to reduce debt
in China with its property sector which has ballooned—but without present within India.
crisis spilling over remains a risk. hurting nascent growth. Finally,
The labour markets could weaken, overdue structural reforms to lift
and financial market turbulence productivity and growth prospects
could return. The world, IMF says, need to be implemented. These
is today dominated by supply include efforts to boost technology NARENDRA MODI
disruptions—from climate, health and innovation, higher PRIME MINISTER
and geopolitics. Any of these competition, better resource
eventualities could end the allocation, enhanced economic
monetary easing and hurt future integration and more productive
growth. private investment.

MINT PODCASTS

INVEST BEYOND STOCKS INNOVATIONS IN SPACE MORNING BIZ PULSE

Abhishek Kumar, Sebi RIA and Explore the latest tech advance- Ratan Tata’s unauthorized biogra-
founder of SahajMoney®, sheds light ments, from Android 15’s arrival to phy, Ratan Tata—A Life, sparks con-
on the rising popu- the challenges with troversy just weeks
larity of unlisted recent Windows after his passing.
equity. Discover updates causing Also: AI pioneers
why investors are crashes. We also visiting India,
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shares, the potential innovative mid-air greenfield cement
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key advice for those looking to tap game-changing technique for land- commerce is reshaping retail, and
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nity. accessible space exploration. latest business updates for you.
 PLAIN FACTS

2024 polls bring social

media harm into focus
BY RAHUL VERMA & MELVIN KUNJUMON

Politics is the fifth most followed topic on social media, but among those who follow it, 37% report negative
interactions due to their political views in the run-up to the Lok Sabha elections.

Lifestyle-related topics most popular Youth and strong 'partisans' report greater
online, politics ranks the fifth harassment online for political views
Share of respondents (%) who said they have been actively Share of respondents (%) who reported facing online
following these topics on social media in six months prior harassment related to political views on social media
to the survey Round 11 (Dec 2023)* Round 12 (Jul 2024)**
Lifestyle 57
(food, travel, fashion, etc) Overall 32
37
Science and technology 52 By generation
Sports 50 Pre-millennials 24
28
General entertainment 49 Millennials 33
38
Politics 47 34
Post-millennials
Business/finance
41
43
By position on 'partisan index'
National economy 40 Strong partisans 43
48
Automobiles 31 28
Moderate partisans
30
Arts 31
Weak partisans 19
The survey had 10,314 respondents.
21
Higher political engagement is correlated Share of respondents (%) who said there had been a strain in their
with greater online harassment relationship with family or friends because of differing political
views in last six months (Jul 2024)
Share of respondents (%) who reported online harassment
related to their political views, by the frequency of their use of Overall 38
social media to engage in political discussions By generation
Pre-millennials 33
Always Frequently Occasionally Never/Prefer
not to answer Millennials 38
Post-millennials 41
By position on 'partisan index'
46 34 26 16 Strong partisans 56
Moderate partisans 32
Weak partisans 18
This is from the Dec 2023 survey, which had 12,544 respondents. *Question in Dec 2023: "Have you experienced online harassment or negative
Questions: "How frequently do you use internet/social media platforms to interactions related to your political engagement on social media in the last one
engage in political discussions?" and "Have you experienced online year?" **The timeframe given in Jul 2024 was 'the last six months'. The 'partisan
harassment or negative interactions related to your political engagement index' indicates how personally attached one feels with the political party they
on social media in the last one year?" identify with the most.

WhatsApp, social media influencers were the least trusted ahead of 2024 polls
Share of respondents (%) by how much they trusted the information/updates/views shared on these news
sources in the run-up to the Lok Sabha polls Trusted a lot Trusted a little Did not trust at all
Newspapers 39 49 12
TV news channels 32 46 22
News websites 25 53 22
Social media posts 20 51 29
Vloggers/social media influencers 17 51 32
Social media posts by political parties 18 51 31
Messages shared on WhatsApp 15 39 45
The survey had 10,314 respondents.
Source: YouGov-Mint-CPR Millennial Surveys (Dec 2023, Jul 2024)
PARAS JAIN/MINT

T
he 12th round of the biannual YouGov-Mint-CPR with fellow supporters are classed as ‘strong partisans’; the
Millennial Survey, held just after the 2024 general rest are moderates and weak partisans.)
elections, tried to find the relationship between Nearly 40% of respondents reported having their
social media and urban Indians’ political choices. personal relationships strained due to differences in
First, we asked 10,314 respondents across over 200 political views in the first half of 2024. This was the highest
cities and towns to pick their favourite topics online. for the youngest cohort (41%), followed by millennials
Lifestyle (food, travel and fashion) topped, with almost (38%) and pre-millennials (33%). Strong partisans saw
three in five (57%) saying they keep track of such content. greater strain in personal relationships, with 56% saying
This was closely followed by science and technology (52%), so, followed by moderate partisans (32%) and weak
sports (50%) and general entertainment (49%). partisans (18%).
Politics was at No. 5, with 47% saying they follow such
content, ahead of finance (43%) and the national economy WHO TO TRUST?
(40%). The Gen Z (or post-millennials, those born after The survey also asked respondents the level of trust they
1996) were much more likely to follow these three topics, deemed in various sources of information. Newspapers
as were men compared to women. were the most trusted, with 39% trusting them “a lot” and
Also notable is the fact that 37% of the respondents who only 12% not trusting them. TV news channels followed,
follow politics on social media reported facing negative with 32% expressing high trust; 22% did not trust them.
interactions online due to their political engagement in Online-only news portals were somewhat trusted, with
the six months before the survey (the run-up to the Lok 25% indicating high trust but 22% distrusting them.
Sabha polls). The survey was held in July 2024. Social media was viewed with greater scepticism: 29% did
The survey, introduced in 2018, was the latest in a not trust online posts, while 20% had high trust. Trust in
biannual series conducted by Mint in social media influencers and social-media
association with YouGov India and YouGov-Mint-CPR posts from political parties was also low.
Delhi-based think tank Centre for Policy Millennial Survey Messages shared on WhatsApp were the
m
Research (CPR). Part 5: Online politics least trusted source: 45% didn’t trust
them, only 15% had high trust.
ONLINE ABUSE, STRAINED RELATIONSHIPS In December 2023, we asked respondents which forms
The younger generation, men, higher-income and of misleading news or information they had encountered
more educated cohorts, and those who show strong in the past year. Half (51%) had reported coming across
partisan leanings are also more likely to be active on social false information aimed at discrediting a political
media in the first place, as we found in the survey’s opponent on social media. Half also came across
December 2023 round. When asked how often they misleading or incomplete headlines, and 45% found the
engaged in online political discussions, 30% had said use of old images or videos out of context. Wrongful
“always”, and 23% had picked “frequently”. Among those attribution of quotes to political leaders (39%) and
who “always” engaged, 46% had reported harassment for morphed images (36%) were also reported.
their political views, the highest across categories. The last Social media platforms are seen with significant distrust
round also found that those from religious minorities, and more people reported facing online harassment for
marginalized castes, or sexual minorities were more likely political engagement on these platforms. Differences in
to report online harassment for their political views. political views are also found to be putting a strain on
The latest round found an increase in respondents personal relationships. These findings indicate the
reporting negative interactions online. In 2023, close to polarizing impact of the current state of politics in both
32% said so, but in the first half of 2024, the share was 37%. personal and public spheres.
The increase was the sharpest among post-millennials, (The authors are associated with CPR.)
from 34% to 41%, and millennials (38%, from 33%). This is the fifth part of a series about the findings of the 12th
Those with strong political leanings (labelled ‘strong round of the survey. The previous parts
partisans’ in the survey) faced the most harassment online covered political attitudes, middle-class
(48% reported it in 2024, against 43% in 2023). (This is perceptions, and views on welfare
based on the partisan index, which is based in turn on how measures. These surveys are skewed https://www.livemint.c

deeply respondents identify with their favourite political towards urban, well-to-do netizens, with
party. Those who take the party’s criticism as a personal 90% of respondents falling under the
insult and feel good about its praise or feel a connection NCCS-A socio-economic category.

PEANUTS by Charles M. Schulz

02 TUESDAY, 29 OCTOBER 2024
NEW DELHI ECONOMY & POLICY LIVEMINT.COM

Chennai, B’luru have most Low-carbon

chemicals: BASF,
interns under PM scheme AM Green sign pact
Rituraj Baruah
[email protected]
NEW DELHI
Top five states offering the highest no of internships are also the top state economies in India
B
The year 2023 also emerged as ASF and AM Green B.V.
the warmest on record, have signed a memoran-
surpassing the 2016 level. AFP Gireesh Chandra Prasad They are followed by Gujarat, Karna- dum of understanding
[email protected] taka and Uttar Pradesh although not as (MoU) to jointly evaluate and
GHG levels NEW DELHI per their place in terms of gross state
domestic product.
develop business opportuni-
ties for low-carbon chemicals

B
usinesses in Chennai and The scheme offers candidates from produced exclusively with
hit record Bengaluru top cities in offer-
ing internships under the PM
far flung places to be interns in big cities,
enabling them to be part of large busi-
renewable energy in India.
The MoU was signed by The firms will explore business

in ‘23; India internship scheme, followed

by the north Indian corporate
hub of Gurugram and southern tech city
ness and professional environments.
The scheme targets candidates who
are economically disadvantaged and
Markus Kamieth, chairman of
the board of executive direct-
ors of BASF SE, and Mahesh
opportunities for low-carbon
chemicals. BLOOMBERG

spews 8% of Hyderabad, showed government data.

Commercial capital Mumbai comes
hence, is not open to those from families
with collective income more than Rs 8
Kolli, Group president of AM
Green, during the the Asia-Pa-
defined in the Renewable
Energy Directive (RED III).
in at fifth place. Among states, Maha- lakh in 2023-24, or if any member of the cific Conference of German Some of AM Green’s facilities
global total rashtra offers the highest number of
internships.
family is a permanent government
employee.
Business 2024 in New Delhi,
said a joint statement from the
have already been pre-certi-
fied for RFNBO compliance
Businesses are offering 7,875 intern- Holders of professional degrees from companies. through the ‘CertifHyTM’ vol-
Puja Das ships in Chennai, followed by 5,179 in the Indian Institutes of Technology, the Mint first reported on Sun- untary certification scheme.
[email protected] Bengaluru urban region, 4,576 in Guru- Indian Institutes of Management and day that the both the compa- Pre-certifications for AM
NEW DELHI gram, 4,472 in Hyderabad and 4,288 in National Law Universities are not eligi- nies have tied up in the low- Green’s other facilities are cur-
Mumbai. ble as are chartered accountants or carbon chemicals space and rently underway.

P
lanet-warming green- The top ten districts preferred by those having MBBS degrees. offtake of green ammonia. “We are committed to the
house gas (GHG) levels businesses account for over 39,200 Graduation tops the list of qualifications sought for the internship, accounting for One concern among experts is that Under the MoU, BASF and sustainable transformation of
surged to a record in offers, representing nearly a third of the over 35,000 offers or 28% of all the offers on the table. HT given the eligibility restrictions, most of AM Green intend to conduct the industries we serve. We are
2023, with annual mean levels over-127,000 offers available as of Mon- the candidates applying for internships feasibility studies on low-car- convinced that India is the
of carbon dioxide (CO2), the day, data from the portal run by the min- passed twelfth standard. from the government. could be from a lower socioeconomic bon chemicals production in right place to explore low-car-
most important GHG in the istry of corporate affairs showed. Jubilant Foodworks, Eicher Motor Businesses can meet the cost of train- strata and for them, making out-of- India including a joint evalua- bon chemical production
atmosphere, rising by 2.3 parts Graduation tops the list of Ltd, Larsen & Toubro Ltd, Tech ing interns and the ₹500 per pocket expenses during the tion of potential technologies. together with our partner AM
per million (PPM) between qualifications needed for the Mahindra, Mahindra & intern that they give every internship, if it is at a place The cooperation includes a Green,” said Kamieth.
2022 and 2023, the World internship, accounting for Mahindra Ltd, Bajaj month from their corporate other than their hometown, non-binding letter of intent for AM Green’s Kolli said that
Meteorological Organization
(WMO) warned on Monday,
over 35,000 offers or 28%
of all the offers on the
No. of internships
7,875Finance and Muthoot social responsibility funds.
Finance are among firms The interns will also
Internships on
could be a burden. The
scheme could also raise 5,179 the offtake of 100,000 tonnes
annually of ammonia pro-
the partnership between AM
Green and BASF envisages to
calling for urgent action to pro- table. that have offered intern- get insurance cover expectations among duced exclusively with renew- cater to multiple chemical
tect the globe from climate Nearly a fourth of all being offered in ships so far, Mint reported under the Pradhan Man- offer in Bengaluru interns for a placement at able energy, including energy downstream and associated
change. offers require tenth stan- Chennai. on 14 October. tri Jeevan Jyoti Bima urban region. the end of it. from pumped storage projects consumer industries by pro-
This was the twelfth consec- dard as the qualification, The scheme, announced Yojana and Pradhan Mantri “However, private sector from AM Green’s plants in viding key green molecule
utive year when the annual while nearly an equal share in the budget for FY25, offers Suraksha Bima Yojana. is a competitive world and India. The statement said that feedstocks to produce chemi-
mean carbon dioxide rose by requires Industrial Training Insti- interns a monthly assistance of The top five states offering the those who have the skills will man- the ammonia will meet Euro- cals, materials and products in
over 2 PPM. tute (ITI) qualification. About 17% of the Rs 4,500 from the government and Rs highest number of internships are also age to get placements,” a person aware pean Union’s (EU) standards the markets served by BASF.
The year 2023 also emerged offers are for diploma holders and about 500 from the company concerned, in the top state economies in the country, of the working of the scheme said on for renewable fuels of non-bi- To read an extended version
as the warmest on record, sur- seven percent are for those who have addition to a one-time grant of ₹6,000 led by Maharashtra and Tamil Nadu. condition of not being named. ological origin (RFNBO) as of this story, go to livemint.com
passing the 2016-level, with
significant implications for
global climate patterns and
extreme weather events. It was
1.48°C warmer than the average
of the pre-industrial level.
India plans stronger, healthier PSUs Consumer demand in H1FY25:
The appeal comes as global
leaders prepare to gather for
the UN’s climate change con-
Gulveen Aulakh
[email protected]
In the case of public sector
telco Mahanagar Telephone
rural’s up, urban down: Finmin
ference in Baku next month, NEW DELHI Nigam Ltd (MTNL), discus-
amid repeated dire warnings sions are underway on its out- Rhik Kundu chases,” it added.

T
about the human cost of ignor- he government plans to standing debt of about ₹8,000 [email protected] It said that on the one hand
ing the existential crisis from make public sector units crore, although its sovereign- NEW DELHI above-normal monsoon, ade-
UN secretary general Antonio (PSUs) more efficient, backed bonds will be honoured quate reservoir levels, and suf-

I
Guterres and others. professional and profitable in by the government whenever ndia’s economy remained ficient input availability have
Key greenhouse gas-pro- the long term rather than sell they fall due. stable in the first half of bolstered kharif sowing, sur-
ducing events include forest them early, creating greater The second official said the FY25, bolstered by rural passing both last year’s level
fires and the El Niño weather value for shareholders, includ- push towards more efficient demand, but urban consumer and the five-year average.
phenomenon, which leads to ing the Centre. PSUs was a step in the direction demand moderated, according On the other, heavy mon-
warmer weather and reduced According to two officials of creating more value for to the September Economic soon rains had a “calming
rainfall, especially in South aware of the matter, the current shareholders, including the Review released on Monday. effect” on mining and con-
Asia, which fuelled drier condi- thinking in the government is government. A "long tail" of The divergent trend in rural struction, leading to a modera-
tions and a surge in gas concen- to strengthen the PSUs, collect healthy PSUs can give better and urban demand is the oppo- tion in service activity in Q2
trations in the latter part of healthy dividends and publicly The focus is on getting PSUs more professionally run, so that dividends, and some could be site of last year, when rural FY25, particularly in road
2023, according to WMO, a list them over the long term, their decisions be more board-driven. ISTOCKPHOTO taken to markets over the long demand fell. These trends— As per September Economic transport-related services.
specialized agency of the UN which would fetch good term, the official said. both last year’s and this year’s— Review, urban consumer The report prepared by the
whose mandate covers returns while allowing the them,” this person said, adding provided. The government earned highlight the wide importance demand moderated. MINT finance ministry’s department
weather, climate and water Centre to retain their owner- that while some PSUs may be For instance, Rashtriya Ispat ₹59,533 crore from PSU divi- of rainfall in the Indian econ- of economic affairs said infla-
resources. ship. “The focus is on getting cash-constrained, others which Nigam Ltd, which owns the 7.5 dends in FY23, which rose to omy. In FY24, monsoon rains weaker sales in the second tion remains under control
Its analysis shows that just them more professionally run, have resources often err in million tonne- capacity Visa- ₹63,749 crore in FY24, exceed- were below normal, whereas quarter. despite a “temporary rise” in
under half of the carbon diox- so that their decisions be more deciding how or where to khapatnam Steel Plant in ing Revised Estimates (RE) of they were plentiful in the first Housing sales and new vegetable prices, supported by
ide emissions remain in the board-driven, across sectors, channel them. Andhra Pradesh, ₹50,000 crore. As of October- half of FY25. launches too fell during the robust agricultural output and
atmosphere, just over a quarter irrespective of whether it is in Q u e r i e s Current thinking is expected to get a end, dividend receipts for FY25 Going forward, the report second quarter. easing inflation expectations.
are absorbed by the ocean and the strategic or the non-strate- emailed to the is to collect revival package stood at ₹28,357.46 crore, more also warned of potential risks “Rural demand continues to “Barring a sharp rise in the
just under 30% are retained on gic,” one of the two people said ministry o f healthy dividends bundled with a than half the ₹56,260 crore from geopolitical tensions and improve, as reflected in prices of a few vegetables, infla-
land. on the condition of anonymity. finance remained & publicly list restructuring plan estimated in the Union budget high valuations in global mar- increasing Fast Moving Con- tion appears well contained. In
India’s greenhouse gas emis- In 2022, the Union Cabinet unanswered. to make the loss- for 2024. kets that could further impact sumer Goods volume sales and the medium term, favourable
PSUs over long
sions surged by 6.1% in 2023, approved empowering PSU In instances, making steel “To go to the next level, this household spending. a rise in three-wheeler and factors, such as rejuvenated
contributing to 8% of the global boards to recommend and the government term to fetch maker more effi- idea of board-driven profes- The review cautioned about tractor sales.” reservoir levels, healthy kharif
total but the country’s histori- undertake full or partial stake may also decide to good returns cient and self-sus- sionalism makes sense. This a moderation in urban demand “However, urban demand crop sowing brightening the
cal contribution to global car- sales, close any subsidiary or invest in the com- taining. The gov- will also appeal to the market in the first half of FY25. Urban appears to moderate due to sof- agriculture output prospects
bon dioxide emissions stands at unit, or sell stake in joint ven- panies, the people ernment had for sure,” said Bank of Baroda consumer goods volume tening consumer sentiments, and ample food grain stocks,
only 3%. From 1990 to 2023, tures. said. Some of the entities may approved strategic disinvest- chief economist Madan Sabna- growth dropped from 10.1% in limited footfall due to above- would help contain price pres-
the warming effect on the cli- “It’s also a question of how already be faring better than ment of RINL in January 2021, vis. Q1 FY24 to 2.8% in Q1 FY25, normal rainfall, and seasonal sures.”
mate from GHGs, mainly CO2, they’re utilizing the financial others, but in other cases, but it has not made much head- To read an extended version and auto sales declined by 2.3% periods during which people To read an extended version
has increased by 51.5%. resources they have available to financial assistance may be way. of this story, go to livemint.com in H1 FY25, primarily due to tend to refrain from new pur- of this story, go to livemint.com

India highly dependent on

m MINT SHORTS ernment to raise the basic customs duty on primary alu-
minium and aluminium scrap to prevent it from being
dumped in the Indian market. Aluminium dumping is
Piyush Goyal’s Saudi visit
to deepen partnership critical mineral imports: report
REUTERS
CORRECTIONS AND
CLARIFICATIONS
deterring new investments, the Aluminium Association PTI New Delhi: India remains Mint welcomes comments,
Centre earns ₹279 crore from of India said, even as the country has all the ingredients to highly dependent on imports suggestions or complaints
be a global aluminium hub. SUBHASH NARAYAN for minerals critical to acceler- about errors.
scrap in cleanliness campaign ating its energy transition,
Readers can alert the
New Delhi: The Centre has earned ₹279 crore revenue with full reliance on shipping
from disposal of scrap during the ongoing month-long Green municipal bonds grow in lithium, cobalt and nickel,
newsroom to any errors in the
paper by emailing us, with your
cleanliness campaign.The stated a report published by
REUTERS

special campaign 4.0

as India seeks climate funding the Institute for Energy Eco-
full name and address to
[email protected].
launched by the government, New Delhi: More Indian cities are considering issuing nomics and Financial Analysis. It said India’s demand for
will attain its stated objectives their first green bonds, seeking to tap the nation’s small critical minerals is likely to more than double by 2030, It is our policy to promptly
respond to all complaints.
of institutionalisation of but expanding municipal debt market to fund climate while domestic mining operations may take over a decade Readers dissatisfied with the
cleanliness campaigns and action. Surat, along with Pimpri Chinchwad and Coimba- to start producing. PTI response or concerned about
reduction in pendency with a tore, is finalizing proposals after Rajkot Municipal Corp. New Delhi: Union minister of commerce and Mint’s journalistic integrity may
saturation approach, accord- AFP this month revealed a plan to industry, Piyush Goyal, will visit Saudi Arabia, with write directly to the editor by
ing to an official statement.PTI raise up to $200 million. the aim of deepening the strategic partnership ‘CRGO steel shortage may sending an email to
[email protected]
Indian cities started issuing between India and Saudi Arabia.The two-day visit,
bonds only a decade ago, which will begin from Tuesday, comes at a pivotal
impact energy ambitions’
Mint’s journalistic Code of
Aluminium producers ask unlike municipalities in the time as India seeks to expand its global economic New Delhi: Shortage of Cold-Rolled Grain-Oriented Conduct that governs our
United States that have been presence and explore new avenues for trade, invest- (CRGO) steel used for making transformers and electric
govt to hike import duties raising debt since the 18th ment, and economic cooperation. RHIK KUNDU motors could impact India’s ambitious power sector
newsroom is available at
www.livemint.com
New Delhi: The aluminium industry has urged the gov- century. BLOOMBERG expansion plans, think tank GTRI said on Monday. PTI

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06 TUESDAY, 29 OCTOBER 2024
NEW DELHI CORPORATE LIVEMINT.COM

Banks curtail microloans as Airtel shines in Sep quarter

as June tariff hikes kick in
asset quality stress weighs FROM PAGE 1

tariff repair for sustained

investments, with ROCE for
India at only 11%.”
BofA Securities had esti-
Lenders have reported elevated slippages and rising stress in unsecured advances in Q2FY25 mated Airtel’s consolidated
net profit to rise by 77% on
year, revenue by 12%, Ebitda
Anshika Kayastha & disbursements to improve this quarter by 11% and margins by 52.2%.
Gopika Gopakumar but remain below the “distribution Airtel’s India business quar-
potential” as the bank remains watchful terly revenue stood at ₹31,561
MUMBAI of lending to the sector. crore, up 16.9% on-year and
For Bandhan Bank, of the ₹1,115 crore 8.7% on-quarter, backed by

M
ost banks have tightened slippages during the quarter, ₹752 crore improved realizations in the
underwriting for micro- came from the microfinance segment, mobile segment and a sus-
finance loans as lenders which accounts for around 45% of total tained momentum in the Gopal Vittal, to-be executive vice-chairman (left) and Shashwat
across the board loans. homes and enterprise busi- Sharma, CEO-designate, Bharti Airtel. MINT
reported elevated slippa- The deterioration in asset quality led ness. India mobile services
ges and increasing stress in their unse- lenders such as IDFC First Bank and revenue was up 18.5% at Bharti Airtel on 1 January boards of Indus Towers Ltd
cured advances in the second quarter Axis Bank to boost contingency provi- ₹24,837 crore. 2026. Vittal will be responsible and Bharti Hexacom Ltd.
ended September. sions during the quarter. IDFC First Sequentially, net profit was for mentoring and grooming “Rajan Bharti Mittal returns to
The microfinance segment has seen Bank made contingency provisions of down 13.6%, revenue up 7.7% Shashwat to take over as MD & Airtel to be the Bharti board
a rise in delinquencies, over-leveraging ₹315 crore specifically against the and Ebitda up 10.4%. CEO for the entire business. nominee with immediate
in some customer segments, and a fall in microfinance business, equivalent of In October, Reliance Jio “Airtel has had a distin- effect,” it said.
collections. That has started to weigh on 99% of the loans under the special men- Infocomm, India’s largest tele- guished record of well Also, Amit Tripathi, cur-
banks’ asset quality, pushing them to tion account (SMA-1 and SMA-2) books com operator, beat estimates thought-out structured suc- rently director, marketing and
slow down growth in the segment, build and 2.5% of the entire microfinance on revenue, profits, and Arpu, cession planning,” said Sunil customer experience, will be
up provision buffers and take measures portfolio as of September 2024. On the driven largely by the tariff Bharti Mittal, chairman, Bharti director, market operations,
to boost collections. other hand, Axis Bank—which reported hikes. Jio had said the full Airtel. “I am extremely pleased leading all circles and distribu-
Since the liberalization of microfi- Microfinance segment has seen a rise in delinquencies, over-leveraging in some retail slippages of ₹4,073 crore—said the impact of the tariff hike will with the succession and transi- tion strategy.
nance institution (MFI) norms two years customer segments, and a fall in collections. MINT provisions were made on a “prudent manifest in the next two to tion plan of leadership at Air- Airtel added 26.2 million
ago when microloans were linked to basis”. three quarters. tel, and there could not have smartphone data users in the
household income levels, there has been The bank also remodelled the collec- free loans to individuals with annual SMA-1 and SMA-2 accounts comprise Bharti Airtel also unveiled been a better time for Airtel to quarter and 0.8 million post-
a rush towards MFI financing, Suresh tion platform with digital tools, incomes of up to ₹3 lakh. loans due for 31 to 90 days, after which its succession plan on Monday, unveil the new paid users, raising
Ganapathy, managing director, head-fi- advanced analytics and separation of the Headline gross NPA ratio for the bank they are classified as NPAs. under which Vittal, Airtel’s arrangement Airtel added Arpu, a key met-
nancial services research at Macquarie recovery teams to improve collections, rose 10 basis points (bps) over the previ- Ujjivan Small Finance Bank’s credit MD & CEO since 2012, has where change 26.2 mn ric of profitability,
Capital, said in a recent note. “Our chan- besides adding dedicated teams for ear- ous quarter to 2.1%, with the rise in the cost rose to 1.72% from 1.47% in Q1FY25, been made vice-chairman and continuity smartphone data to ₹233, from
nel checks reveal many have inflated ly-stage delinquencies that are 30 and microfinance segment at 138bps to with the lender hiking its overall credit effective immediately, in addi- will go hand in users in Q2 and ₹203 last year,
their assessment of household income 60 days past due (dpd). 6.54%. The microfinance portfolio com- cost estimate for FY25 to 2.3–2.5% from hand. Empower-
tion to his existing position as
0.8 mn postpaid and ₹211 in the
levels to give larger ticket size MFI loans RBL Bank posted a 59% on-year and prised 9% of the total loan book as of 1.7% to account for the impact of the MD, and will move up as exec- ment has been an June quarter.
and ticket size in MFI space has gone recent MFI-linked slippages on utive vice-chairman from 1 article of faith users, raising For Airtel,
up.” MITIGATING RISK asset quality. January 2026. with me which Arpu to ₹233 mobile data con-
RBL Bank has put microfinance The hit on provisioning and Under Vittal’s leadership, has resulted in a sumption in India
lending on a “near-term back MICROFINANCE BANKS are firming ELEVATED slippages BANKS are easing credit costs also prompted some Airtel has seen its revenue mar- highly energized surged 22.6%,
burner” because of on-ground segment is facing
greater stress due to
underwriting
standards, building
and delinquencies in
microfinance are
microfinance growth
to manage risks and
lenders to consciously slow down ket share grow to 40% from management delivering supe- with average monthly usage
issues such as borrower leverage factors such as provision buffers, impacting banks’ focus on improving advances in the unsecured segment, 30% and market capitalization rior results. Airtel is one of the reaching 23.9GB per cus-
and customers taking loans from overleveraging etc. to mitigate risks. overall asset quality asset quality given that in addition to microfi- rise fivefold to cross the $100 rare home grown enterprises tomer. Airtel’s overall cus-
multiple lenders, chief executive nance, the asset quality of this cate- billion mark, the company said. where the finest professionals tomer base stood at 563 mil-
officer R. Subramaniakumar said in gory has also worsened due to rising Chief operations officer combine entrepreneurial flair lion, with India at 407 million
the Q2 earnings call. This over-leverag- 35% sequential rise in provisions to ₹618 September 2024. Gross microfinance stress in personal loans and credit cards. Shashwat Sharma has been to bring to hundreds of mil- and Africa at 157 million.
ing has resulted in a near-term impact crore, owing to higher slippages in the slippages for the quarter stood at ₹398 IndusInd Bank’s microfinance loan appointed CEO-designate, lions of customers, the best The African operations
on asset quality, and the bank’s focus is credit cards and microfinance portfo- crore. book shrank 12% sequentially, with the responsible for the entire end- technology and services in our reported profit of $48 million
now on improving collections and lios. “The microfinance 30–90dpd book average loan outstanding per borrower to-end consumer business. industry,” Mittal said. in the quarter, down 65% from
renewals of existing borrowers, while Its mid-sized peer IndusInd Bank increased by 2.1 percentage points dur- at around ₹40,000. For IDFC First Sharma will continue to report Airtel added that Rakesh $138 million a year ago, largely
limiting exposure to one loan per bor- posted a drop in its net profit due to ing the quarter given the sectoral stress,” Bank, the share of microfinance to total to Vittal, who continues to Bharti Mittal, a board member due to the impact of currency
rower, he said, adding that normalcy is higher stress in the microfinance seg- IndusInd Bank MD and CEO Sumant loans fell to 5.6% from 6.3% in Q1. head Airtel Business, and will for nine years in his current devaluation, while revenue
expected January-March onwards. ment—the lender provides collateral- Kathpalia said, adding that he expects [email protected] take over as MD and CEO of term, will move on to the shrank 2.6% to $1.21 billion.

BIS, Vietnam probe cloud steel imports AI-driven RBI system to stop SHV to sell
FROM PAGE 1 ₹50,000 mark for a tonne for cyber fraud in real time soon 290MW of
expire on 2 November, as per
BIS data. The licence of another
the first time since November
2020, as per data from Big-
Mint. FROM PAGE 1 and financial institutions
SunSource
Chinese steelmaker, Baosteel
Zhanjiang Iron & Steel Co., is
So far, among major steel-
makers, JSW Steel has dis- To be sure, the Reserve Bank
responsible for fraud reporting.
RBI has also updated guide- solar assets
set to expire on 28 January closed its earnings for the July- of India Innovation Hub lines for banks, drawing on
2025. September quarter. The com- (RBIH), an RBI subsidiary, has insights from the Indian Cyber- Utpal Bhaskar
Apart from these two, only pany reported a 4-percentage already developed MuleHunter crime Coordination Centre, a [email protected]
Jiangyin Xing Cheng Special point year-on-year drop in its AI, an artificial intelligence and government body dedicated to NEW DELHI
Steel Works has a valid BIS Ebitda margin to 13.7%. Other machine learning (AI/ML) tackling cyber fraud.

D
certificate, which is set to major steelmakers are likely to model to help banks and finan- Spokespersons of RBI and utch multinational
expire in October 2026. How- report similar margin drops, cial institutions detect so-called the finance ministry didn’t SHV Energy has
ever, the specialty steelmaker analysts have noted. mule accounts used by fraud- respond to emailed queries. appointed BNP Paribas
has negligible trade with India. Shipments from China usu- sters. The new system will, on According to the 2024 to sell the solar energy assets of
No other Chinese factory has India’s steel imports grew 32% y-o-y in April-August. BLOOMBERG ally take two months to arrive the other hand, alert users and Deloitte-NASCIO Cybersecu- its subsidiary SunSource
an operational BIS certificate. after order placement. There safeguard digital transactions. rity Study, cybersecurity is now Energy in a deal having an
The story is much the same Chinese mills amped up anti-dumping investigation could be many shipments in RBI has been working on a top priority for governments, equity value of around $100
for Vietnamese companies, exports to India in 2024 as after imports from the country transit at the moment, as per building an AI-enabled fraud RBI has been working on regulators and corporations as million, said two people aware
too, plus there is the added demand in their domestic surged. trade analysts. They expect information system to detect building an AI-enabled fraud the digital landscape expands of the development.
spectre of a probe that India market and other interna- An email sent to BIS seeking steel imports to sharply taper and prevent cyber fraud. An information system. ISTOCKPHOTO with an increasing amount of The transaction, which is in
has launched against them for tional markets fell due to an comment remained unan- from December. expert group on cyber frauds it personal, health, and financial its initial stages, involves the
dumping. “There has been no economic down- swered. “It will be a positive for had set up has submitted its age size of cyber frauds. So, data online, as well as critical sale of 290MW of operational
order booking from Vietnam turn. India Chinese mills India’s steel India,” Jayant Acharya, joint recommendations, including these are all part of the plans to infrastructure such as trans- assets of SunSource Energy in
since the investigation remained the amped up imports grew 32% managing director of JSW the implementation of AI that increase public awareness to portation, water, and power the commercial and industrial
started,” said Goel. only major mar- exports to India in between April Steel told Mint during a recent can learn from past frauds to help prevent victimization,” systems integrated with online segment, and a framework to
Indian steel traders stopped ket where steel 2024 as demand and August this post-earnings interview. The identify high-risk transactions. the person said on the condi- components, leading to grow- fully acquire the funded pipe-
buying from Vietnamese steel demand was on
in their domestic year compared to
company is closely tracking “The system aims to make tion of anonymity. ing vulnerabilities. line of 300MW upon commis-
companies after New Delhi the rise. the same period the situation, he said. cashing out fraudulent funds Apart from setting up multi- The 30 September report sioning. “The transaction
launched the probe in August As for Vietnam, and international last year, as per “I think it’s important for difficult, while improving the ple groups to address cyber said governments and regula- involves a mix of secondary
into imports of hot-rolled flat Formosa Ha markets fell government data the government to also under- preparedness of banks and pay- fraud, the central bank has also tors are increasingly recogni- sale and primary infusion,”
steel (HRC) products from the Tinh, a leading released by the stand that at this point of time ment gateways to detect poten- established the Cyber Security zing that information security said one of the two people,
country, trade sources said. Vietnamese steel Joint Plant Com- more and more countries are tial fraud,” the second person and IT Examination (CSITE) is essential to the reliable oper- requesting anonymity.
This is because they fear they producer, got BIS approval mittee. putting in trade barriers to cited earlier said. cell in 2015 under its Depart- ation of government services. SHV Energy, which has a
may be liable to pay duty retro- this May. Subsequently, a To be sure, this led to a shield themselves from this “Although current fraud ment of Banking Supervision, subhash.narayan@live- presence in liquified petro-
spectively if the investigation lobby of domestic steelmakers sharp drop in domestic steel kind of Chinese barrage of rates remain low at roughly one and created a Fraud Monitor- mint.com leum gas (LPG), liquified natu-
finds Vietnamese steelmakers called Indian Steel Association prices. In September, steel pri- imports, which are coming in per 114,000 transactions, there ing Cell which publishes a For an extended version of ral gas (LNG), and green
guilty of dumping. pushed the government for an ces dropped below the at low prices,” he said. is a rise in the volume and aver- directory of officials in banks this story, go to livemint.com. energy, acquired a majority
stake in SunSource Energy in
May 2021. SunSource Energy
was founded by Adarsh Das

Mansion House maker Tilaknagar Industries to add premium brandy and Kushagra Nandan in 2010.
Spokespersons of SHV
Energy, SunSource Energy
and BNP Paribas did not reply
Varuni Khosla gana, chairperson and manag- rose 9% year-on-year, while leverage. At least for the next well in FY21 and FY22. It was to queries emailed on 22 Octo-
[email protected] ing director Amit Dahanukar volumes grew 2–4%. two years we will see our port- also used as working capital ber.
NEW DELHI told Mint in an interview. Tilaknagar Industries, which folio growing on similar lines, and restructuring.” The proposed deal comes
Together, these states make up reported an Ebitda including introduc- In October, the distiller amid strong investor interest

T PREMIUM
ilaknagar Industries Ltd, 50–60% of its brandy sales. The of about ₹200 tions at both higher launched a whisky in Assam. in India’s commercial and
the maker of Mansion category contributes 85% to the crore in FY24, tar- SHIFT and lower price “Right now, it’s a targeted industrial segment, as
House branded spirits, company’s top line. gets to double it by points in this investment in a select state but reported by Mint.
will expand into premium “We would look at expand- FY27, growing at THE move will be (brandy) category. we will see the response and Thailand’s energy
brandy over the next 18–24 ing the premium and luxury an estimated 25% a followed by other
categories such as
But we are open to scale it further,” he said. “But to firm Banpu Public Co. Ltd,
months, followed by other cat- segments because the regular year. Ebitda, a whisky betting on opportunities as the target the north of the market, former US vice-president Al
egories such as whisky, as cost- segments are always under measure of profita- premium demand company is now we will need a complete portfo- Gore-headed Generation
lier alcoholic beverages tar- pressure due to investments,” bility, is earnings debt-free.” lio with whisky, etc.” Investment Management’s
geted at affluent consumers he said. “There is also pressure before interest, THE company plans At its peak in The company switched from Just Climate LLP, and Singa-
to “price ladder”, or
continue to outpace mass-mar- from many states where prices taxes, depreciation, offer its brandy at March 2019, the being a sugar mill to making pore’s CapitaLand Investment
ket consumption. are regulated…When some- Amit Dahanukar, chairman, Tilaknagar Industries. MINT and amortization. multiple price points, company had a spirits in the 1980s with the Ltd have been shortlisted to
The Mumbai-based com- thing compelling comes along, “I am confident in popular markets debt of about launch of its Mansion House acquire Eversource Capital-
pany plans to “price ladder”, or we would be open to acquiring beer and a revival in consump- towards premium spirits after that we will be able ₹1,200 crore, Daha- brandy. backed Radiance Renewables
offer its brandy at multiple more businesses.” tion of spirits, along with the pandemic ebbed. to grow the vol- nukar said. “We The rest of the business Pvt. Ltd, in a deal having an
price points, tapping into pop- India’s alcoholic beverages increasing consumer prefer- Icra also expects price hikes umes by 12–15%,” Dahanukar restructured our brands. We comes from rum, and a small enterprise value of around
ular markets, including Karna- companies are estimated to see ence for premium products, granted by a few states in the said. “The expansion and prof- received some interest waivers part from whisky. $325 million.
taka, Kerala, Puducherry, their revenue expand 8–10% in according to Icra Ltd. Many FY25 to aid the growth. In itability will be on premiumiza- and raised about ₹350 crore in For an extended version of For an extended version of
Andhra Pradesh, and Telan- FY25, led by steady demand for companies turned their focus Q1FY25, the industry’s revenue tion and we will have operating equity in different rounds as this story, go to livemint.com. this story, go to livemint.com
LIVEMINT.COM CORPORATE TUESDAY, 29 OCTOBER 2024
NEW DELHI 07

Apple brings
AI features
with new iMac
Apple Intelligence software is now
available for iPhone, iPad and Mac
Bloomberg
[email protected]

A
pple Inc., herald-
ing a “new era” for
its devices, started
rolling out its first
set of Apple Intel-
ligence features and intro-
duced a new 24-inch iMac
desktop with a faster, AI-fo-
cused M4 processor.
The iMac, starting at the
same $1,299 price as the prior
model, is faster and sports an The new iMac starting at $1,299
enhanced Neural Engine for goes on sale on 8 Nov. REUTERS
handling artificial intelligence
(AI) tasks, the company said in 2022, Apple has been on the
an announcement Monday. sidelines—with tech peers like
The model goes on sale on 8 Google and Microsoft Corp.
November. grabbing more of the atten-
Separately, the company tion. Apple Intelligence is an
said its Apple Intelligence soft- attempt to show that the
ware is now available for the iPhone maker can be a leader
iPhone, iPad and Mac. Though in this field.
Apple previewed a broader set The iMac, meanwhile, is
of AI-related capabilities in Apple’s best-selling desktop
June, the initial features repre- and the product that helped
sent only a sliver of Apple’s turn the business around from
plans for the service.
The lineup includes writing
the brink of bankruptcy in the
late 1990s. The original idea is Have fun
tools for summarizing and
editing text, a new visual inter-
still the same: putting all the
computing components
with facts
face for the Siri digital assist-
ant, and the ability to recap
behind the display and requir-
ing little to no setup. The latest
on Sundays
incoming text messages and version retains the slim design Catch the latest column of
other notifications. More
important features—like a
smarter version of Siri and
from 2021 but comes in new
colours.
The central processing unit
A
A quiz on the week’s development.
generative AI for images—are will have eight cores—a meas-
coming later. ure of its data-crunching abil-
Still, it’s a critical moment ity—with another eight in the hindustantimes htTweets www.hindustantimes.com

for a company that’s playing graphics processing unit. A

catch-up in AI. Since OpenAI’s more powerful version will
ChatGPT set off an artificial have 10 cores in each category
intelligence frenzy in late and starts at $1,499.

Connecting you to Global Insights!

Discover comprehensive business news & perspectives
curated by the Leaders in Journalism
LIVEMINT.COM NEWS WRAP TUESDAY, 29 OCTOBER 2024
NEW DELHI 11

NEWS
31%
THE PERCENTAGE of urban Indians for
₹1,420 cr
THE AMOUNT Indians lost in
14.2 mt
THE SALES volume reported by Adani
$500 mn
THE OUT-of-pocket losses faced by
470
THE NUMBER of entries Maharashtra
IN whom quick commerce is the primary trading scams in the first quarter group’s Ambuja Cements in the second Delta Air Lines due to faulty updates by has in the Hurun India Rich List 2024,
NUMBERS grocery shopping method, according to
a report by NIQ, a market research firm.
of CY24, according to National
Cybercrime Reporting Portal data.
quarter of FY25, up 9% year-on-year,
the highest Q2 volumes in five years.
CrowdStrike Holdings in July this year, for
which it has sued the cybersecurity firm.
the highest in the country. It’s followed
by Delhi (213) and Gujarat (129).

HOWINDIALIVES.COM

Citigroup offloads STRENGTHENING TIES Adani Power Q2 net

HDFC Bank’s shares profit declines 50%

A A
merican multinational Citigroup on dani Power on Monday reported a 50%
Monday offloaded private sector lender decline in its consolidated net profit to
HDFC Bank’s shares worth ₹275 crore ₹3,297.52 crore in the September
through an open market transaction. quarter compared to a year ago, mainly due to
Citigroup, through its arm Citigroup Global lower income as well as higher taxes.
Markets Mauritius, sold 15,79,953 shares of The company had posted a consolidated net
HDFC Bank, as per the block deal data available profit of ₹6,594.17 crore in the quarter ended
on the BSE. The shares were disposed of at an September 2023, a BSE filing stated.
average price of ₹1,742.6 apiece, taking the The firm explained that there were lower
transaction value to Rs 275.32 crore. one-time revenue recognition of prior period
Ghisallo Master Fund LP acquired the shares items of ₹1,020 crore in the first half of FY25
of Mumbai-headquartered HDFC Bank at the (April-September 2024) as compared to ₹9,278
same price. Shares of HDFC Bank fell 0.48% to crore in H1 FY24, following the resolution of all
close at ₹1,734.30 per piece on the BSE. major regulatory matters and realisation of
On 19 October HDFC Bank reported a 6% outstanding dues from discoms (power
increase in the September quarter net profit to distribution companies) in the previous year.
₹17,825.91 crore on a consolidated basis. It also stated that the one-time prior period
The company’s core net interest income grew revenue recognition in Q2 FY25 (July-
10% to ₹30,010 crore on the back of a 7% September 2024) was ₹598 crore, as compared
increase in gross advances and the margins to ₹2,781 crore in Q2 FY24. PTI
being stable at 3.46%. PTI

Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez (third from left) inaugurated the Tata Aircraft Complex in Vadodara, Gujarat,
on Monday, alongside Defence Minister Rajnath Singh (extreme left). The facility, operated by Tata Advanced Systems Ltd (TASL) in collaboration with
Airbus, will manufacture C-295 military aircraft in India. During their bilateral meeting, India and Spain signed several memorandums of understanding
(MOUs) to enhance cooperation in key sectors, including infrastructure, railways, culture, and tourism. PTI

Enhanced transparency and robust post-covid

Census, delayed by pandemic, PNB’s total income in Q2 rose to ₹34,447 crore
against ₹29,383 crore in the year-ago period. MINT
real estate recovery are driving the surge.

Realty firms raise

MINT

likely to kick off in early 2025 PNB’s profit jumps

145% to ₹4,306 cr
₹13,000 cr via QIP
P
unjab National Bank (PNB) on Monday

R
eal estate developers have raised nearly reported more than twofold jump in its
₹13,000 crore till September this calendar This round of enumeration will be the basis for redrawing Lok Sabha constituencies profit at ₹4,306 crore in the second
year through issue of equity shares via quarter ended September 2024 on the back of
qualified institutional placements (QIP) route, improvement in interest income and robust
according to Anarock. Smriti Kak Ramachandran & Neeraj Chauhan every 10 years since 1951, but the census work in scheduled tribes but the practice of counting all recovery. The state-owned lender had earned a
Real estate consultant Anarock on Monday NEW DELHI 2021 could not be carried out due to the pan- castes—a British intervention—was discontinued net profit of ₹1,756 crore in the same quarter in
said that Indian real estate developers have been demic. So far, no formal announcement has been at independence. the previous financial year.

I
aggressively tapping capital markets through ndia will begin its long-delayed decadal cen- made on its next schedule. “The process of tabulating the country’s popu- Total income rose to ₹34,447 crore during the
initial public offerings (IPOs) and QIPs after the sus likely next year, people aware of the “In all probability, the work for the census and lation will begin in 2025 and is expected to con- quarter under review against ₹29,383 crore in
covid pandemic. details said on Monday, potentially marking the NPR will begin early next year and the popu- clude by 2026, following which the process of the year-ago period, PNB said in a regulatory
Enhanced transparency, a robust post- the beginning of a mammoth exercise that lation data will be carving out constit- filing. The bank reported an interest income of
pandemic residential real estate recovery, and continued uninterrupted since 1872 but was announced by uencies for the Lok ₹29,875 crore during the quarter, higher than
strong investor confidence are factors driving a thrown off schedule by the pandemic in 2020. 2026,” said a person When conducted, the census will be Sabha through ₹26,355 crore in the same quarter a year ago.
surge in activity, it added. The decadal census is always important but this aware of details. the world’s largest such process, delimitation will Announcing the quarterly numbers, PNB
QIPs allow publicly-traded firms to raise round will hold an outsized significance because “With this, the cen- begin,” said the first managing director Atul Kumar Goel said, the
capital by offering equities or securities the enumeration—likely to be completed by 2026 sus cycle is likely to enumerating the population of person quoted combination of factors including growth
convertible into equity to pre-approved —will act as the basis for the redrawing of Lok be changed. So, it the most-populous nation. above. “The delimi- improvement in business, net interest income
institutional buyers. This fundraising approach Sabha constituencies. will be 2025-2035 tation itself is recovery and containment in slippages led to
lets companies skip the more conventional IPO This process, called delimitation, is expected to and then 2035- expected to be com- 145% jump in profit. PTI
route and quickly raise substantial funds. be fractious and open up old disputes of political 2045 and so on in future.” pleted by 2028, ahead of the 2029 Lok Sabha
Anarock chairman Anuj Puri said, “By representation between India’s poorer northern It was not clear whether the census will count polls,” the person added.
the third quarter of 2024, the real estate states that are more populous, and prosperous all castes as well, a key demand of opposition par- When conducted, the census will be the
sector contributed over 17% of QIP issuance
across sectors, or ₹12,801 crore of a total of
southern provinces where birth rates are below
replacement levels.
ties that has received support from some constit- world’s largest such process, enumerating the
uents of the National Democratic Alliance as well. population of the most-populous nation.
IOC net profit falls
₹75,923 crore.” PTI The country’s population count was conducted The census counts India’s scheduled castes and [email protected]
98% in Sep quarter

S
tate-owned Indian Oil Corporation Ltd
B2B platform udaan (IOC) on Monday reported a massive 98.6%
‘Cos need to focus on data readiness’ drop in net profit in the September
raises ₹300 crore quarter, as refinery margins fell and marketing
margins shrunk.
“Businesses often struggle with The company posted a standalone net profit

O
nline business-to-business (B2B) scattered data across multiple systems, of ₹180.01 crore in the July-September period—
platform udaan on Monday said it has leading many to adopt data platforms like the second quarter of the current 2024-25 fiscal
closed a debt-financing round of about ours to consolidate, govern, and analyse year—compared with a profit of ₹12,967.32
₹300 crore from Lighthouse Canton, Stride data effectively,” he told Mint in a video crore a year back, according to a stock exchange
Ventures, InnoVen Capital, and Trifecta Capital. interview from his office in San Mateo, filing by the company. The profit also declined
The fund houses have collectively invested California. Cloud data platforms help sequentially, when compared to an earning of
approximately ₹300 crore in udaan during the organizations integrate data from various ₹2,643.18 crore in the April-June period.
current financial year, a company statement sources, enabling them to manage, analyse While refinery margins fell, the company also
said, adding that the funds will be used to and run AI models efficiently to enhance booked under-recoveries on selling domestic
strengthen its position as the preferred partner governance, security, and productivity. cooking gas LPG at government-controlled
for kirana stores and small businesses across the Snowflake, said Gultekin, offers “seamless India expects the agreement to boost its exports cost, which was lower than the cost.
country. The unicorn said it will use the fresh data integration without needing complex of pharmaceuticals, clothing and machinery. MINT For the six months ended 30 September, IOC
capital to expand its geographical footprint Baris Gultekin, head of AI at Snowflake, a transfers,” allowing companies to process had an under-recovery on LPG of ₹8,870.11
through its ‘micro-market strategy’, optimize
operations, enhance go-to-market (GTM)
cloud data platform. AFP and share massive datasets.
The technology needs a “very ready”
Swiss companies crore, the filing showed. PTI

A set sights on India

capabilities, streamline supply chain processes, s companies scale up their artificial data foundation to feed on, something 78%
and open new micro-fulfilment centres. intelligence (AI) and generative AI of the businesses do not possess, says a
“By prioritising both operational excellence (GenAI) capabilities, they need to joint report by the Massachusetts Institute
Flipkart cuts loss
I
and long-term profitability, udaan aims to increasingly sharpen their focus on “data of Technology Technology Review nvestments in India by Swiss companies such
reinforce its leadership in the eB2B space and
strengthen its position as the preferred partner
readiness, governance and model
accuracy,” insists Baris Gultekin, head of AI
Insights and Snowflake. LESLIE D’MONTE
For an extended version of this story, go to
as engineering group ABB and transport firm
Kuehne+Nagel are on the rise, with a $100 to ₹4,248 cr in FY24
for kirana stores and small businesses across at Snowflake, a cloud data platform. livemint.com billion regional trade deal expected to further

E
Bharat,” the statement said. PTI open it up to businesses long geared towards -commerce major Flipkart has reported
China. narrowing of consolidated net loss to
India’s appeal has already reflected a broader ₹4,248.3 crore in 2023-24 helped by
shift among businesses in Europe eager to increase in its revenue, according to a regulatory
Air India gets DGCA nod to carry out interior modifications balance the costs of a US-China trade spat and
recognition that the Chinese economy is, by
filing report shared by Tofler on Monday.
The company posted a consolidated net loss
comparison to India, losing steam. of ₹4,897 crore in the financial year 2022-23.

A
ir India has received aviation regulator DGCA’s (Directorate General of But the trade and economic partnership The company’s expenses on purchase of stock
Civil Aviation) approval to carry out modifications in aircraft interiors (TEPA) signed in March with the European in trade increased by about 24% to ₹74,271.2
in-house as the Tata group-owned airline works on revamping its fleet Free Trade Association, whose biggest crore in FY24 from ₹59,816.6 crore in FY23.
and expanding operations. The full-service carrier has a collaboration with member is Switzerland, is likely, when ratified, According to the Tofler report, Flipkart’s
Tata Technologies to enhance aircraft interiors in its fleet. to provide an extra incentive to Swiss return on equity dropped to the lowest level in
In a release on Monday, Air India said the design organization approval investment as it will slash tariffs on exports the last five years to negative 49.6%. The return
(DOA) from the DGCA will enable the airline to independently make design from chocolates to watches and machinery. on capital employed for the company was also
changes in-house and implement modifications to its aircraft interiors more Under the deal, EFTA, whose other the lowest at negative 54.09% in the last five
efficiently. “DOA is a transformative step towards enhancing Air India’s in- members are Norway, Iceland and financial years.
house capabilities, which has been bolstered by decisions to set up its own Liechtenstein, will invest $100 billion in India The consolidated revenue of the Walmart
engineering, maintenance and training facilities. This will enhance operational and will benefit from easier and cheaper access Group firm increased by about 26% to
efficiency and make the airline more self-reliant,” the release added. to the Indian market of 1.4 billion people. ₹70,541.90 crore in FY24 from ₹55,823.9 crore
Air India is the first Indian airline to attain this level of authorization, India expects the agreement to boost its in FY23.
accelerating its ability to execute restoration tasks for continuous Air India has a collaboration with Tata Technologies to enhance the exports of pharmaceuticals, clothing and An email query sent to Flipkart elicited no
improvement of its fleet, the release said. PTI interiors of aircraft in its fleet. PTI machinery. REUTERS immediate reply. PTI
12 TUESDAY, 29 OCTOBER 2024
NEW DELHI LONG STORY LIVEMINT.COM

RULE OF GIANTS
The dominance of the top 10 business groups has The revenue share of companies beyond groups The top 10 business groups remain extremely diversified.
increased in recent years. has increased sizeably.
Share of revenues of top 10 business groups by 5 leading sectors (in %)
Share of top 10 business groups in non-financial Share of unaffiliated companies in total revenue of private
private sector (in %) corporates (in %)
1995 2023
35 50
Assets Revenue 30.5 Private Indian Private foreign 39.1 Steel 1.8 Refinery 3.5
40
30
30 Refinery 1.7 Computer software 2.4
25 22.2 18.3
20.7 20 13.8 Commercial vehicles 1.7 Steel 2.1
20 10 Tobacco products 1.6 Retail trading 1.9
20.2 7.5
15 0 Other fund-based financial services Telecommunication services
1995 2023 1995 2023 1.5 1.0
Note: Data excludes government/public sector companies, public sector and private sector bank groups, and private sector financial services-dominated groups. Source: CMIE ProwessIQ

SATISH KUMAR/MINT

INSIDE THE ENDURING HEFT

OF BIG BUSINESS GROUPS
Even as liberalization democratised the corporate sector, the biggest groups retained their outsized footprint
MINT REUTERS PTI AP

(From left): Mukesh Ambani, chairman and managing director of Reliance Industries; Natarajan Chandrasekaran, chairman of Tata Sons; Kumar Mangalam Birla, chairman of Aditya Birla Group; and Gautam Adani, chairman of the Adani Group.

howindialives.com The ProwessIQ database used in this the ProwessIQ data, only around 30 of the affiliated with a business group, where played second fiddle to software.
mint
NEW DELHI piece excludes banks (both public and pri- top 50 groups by assets in 2023 were not SHORT the benefits might be captured by the Interestingly, while for individual
vate), government companies and public in the list in 1997. STORY family running the group rather than groups—such as the Tatas or Reliance—a

W
hen Ratan Tata, who sector units, and corporate groups domi- The picture changes when we look at the managers or workers actually run- single industry, refinery or software, may
passed away earlier this nated by finance companies (e.g. Peerless revenue rather than assets, and we add in ning it. Sources of funding, such as for- account for a substantial chunk of reve-
month, took over as the or Sahara). The data was adjusted for ‘unaffiliated’ companies. These are com- WHAT eign investment, became much more nue, for the top 10 groups as a whole, rev-
chairman of Tata Sons changes in corporate ownership, acquisi- panies like Infosys, which are not part of diverse and widely available, as did tech- enue by sector is not particularly highly
in 1991, he inherited a tions and divestments; it does not reflect any corporate group in the Prowess data- Many of the biggest business nical and managerial talent. Graduates concentrated. This indicates that these
set of companies that collectively domi- adjustments for intra-group investments, base. Such companies accounted for groups from 30 years back from the top management schools no groups are, even today, highly diversi-
nated the Indian private sector. In 1995, a which ideally should be netted out to get close to 40% share of revenue of the non- are still dominant today. longer opted by default for the estab- fied (See chart).
few years after he took over, Tata Group a better picture. Data for 2023-24 was financial corporate sector in 2023, up Among them are the lished business groups. What about unaffiliated companies?
companies accounted for about 7.1% of the excluded, too. from just 18% in 1995. Further, interest- Tatas, Reliance, Aditya Birla, There were limits to this of course. A The bulk of such companies’ revenue was
private corporate sector’s assets, and a Beyond the dynamics of individual ingly, the share of foreign corporations Bajaj and L&T. possible reason why big business groups from ‘wholesale trading’ in 1995. This
similar share of revenue. The next biggest groups, and the rise and fall of family busi- in total revenue rose to 14% around 2014 saw a resurgence of sorts in the latter remained unchanged in 2023. But by
group at that time, Reliance, was less than nesses spanning multiple industries, and then levelled off after that. Even in half of the 2010s was because the Indian 2023, sectors that were not important for
half the size in terms of assets. what’s the bigger picture? How have the terms of assets, the share of unaffiliated WHY industry faced a credit crunch. Banks, such companies in 1995 were dominant—
The challenges Ratan Tata faced when ‘traditional’ business groups fared in an domestic companies rises from 17% in hurt by serious levels of non-perform- software and IT services, retail and auto
he took over were numerous. One of those era when the Indian economy, and the 1995 to 28% in 2023. The business groups that ing assets, grew lukewarm toward the ancillaries.
was the question: will the group survive global economy, saw massive upheavals? But from 2015 onwards, while the share succeeded had the foresight to corporate sector. In such an environ- The business groups that maintained
the onslaught of competition in a newly of unaffiliated domestic companies in be in businesses that would ment, large groups with established their ranking were also much more
liberalizing economy? FAMILIES OF DOMINANCE total revenue continued to grow, there take off after the 1990s—like businesses had a natural advantage in aggressive in acquiring new businesses
software services (TCS) and oil
Thirty years later, even as India’s econ-
omy has grown about 13-fold and numer- E
ven as business groups have risen and
fallen relative to each other, many of
ous other business groups that dominated the biggest groups in 1995 are still very
was a levelling-off. And from around 2017,
the share of top 10 business groups in total
revenue rose by about 4-5 percentage
refinery (Reliance).
accessing the credit that banks were
willing to give. But overall, to survive,
traditional corporate groups had to be
and divesting themselves of old ones.
The CMIE database records the changes
in ownership of companies and tracks
the Indian corporate much recognizable points to around 21%—about the same much nimbler and faster on the movement of companies
landscape in the 1990s
In 2023, the top five
today—Aditya Birla, level it was in 1995 (See chart). AND their feet to stay in the race. across groups or to ‘unaffili-
have fallen behind, the RPG, Bajaj, Larsen & ated’ status.
Tata Group is still a business groups in terms of Toubro (L&T) among GROUP STRENGTH To survive, some traditional SECTORAL PICKS While not all such changes in
corporate groups turned nimbler
behemoth. In 2023,
based on data from the
CMIE’s ProwessIQ data-
assets were Reliance, Tata,
others. In 2023, the top
five business groups in
terms of assets were
W hat are we to make of the increas-
ing importance of unaffiliated
firms since the 1990s, as opposed to the
and faster. Such groups were
also more aggressive in acquiring
I n the longer term, the groups
that succeeded were fore-
sighted or lucky enough to be in
ownership are necessarily
acquisitions or divestments, it’s
striking that the largest groups
Aditya Birla, Adani and new businesses and divesting
base, Tata Group com- Reliance, Tata, Aditya dominance of corporate groups in the pre- businesses that would take off Liked this story? have also seen high levels of
panies accounted for 6% L&T. The top 10 accounted Birla, Adani and L&T. liberalization era? One part of the story is themselves of old ones. after the 1990s. The most dra- Share it by turnover of companies, both
of corporate India’s The top 10 business that during the licence raj, established matic example of this is the Tata scanning the into and out of the group. For
assets—about a percent- for 31% of assets. groups accounted for business groups had an advantage, due to Group’s decision to set up Tata QR code. instance, since 1993, 99 compa-
age point lower than 30 31% of assets in 2023, up their political connections, in accessing name and implicitly on its reputation, Consultancy Services (TCS) in nies moved out of the Tata
years earlier. from 22% in 1995. Of the top 10 groups, credit and industrial licences from the providing a guarantee that is scarce in the 1960s. By 2023, TCS was the crown Group, while 140 entered it.
Even as the Tata Group held on to its only L&T could conceivably be described government and government-owned emerging markets. There is also an jewel of the group. Reliance’s entry into In the case of Adani, 11 companies left
share, other groups surged ahead. as being a non-family controlled business banks. Thus, a major reason why business internal (within-group) market for tal- the oil refinery business has proved the group, while 84 entered it. And post
Mukesh Ambani’s Reliance companies (See chart). groups became so dominant was simply ent. In this sense, some business groups hugely profitable over the last few dec- the separation of the Ambani Group com-
now account for 9.6% of corporate assets, What about the turnover within the top rent-seeking. They were, on the whole, are perhaps closer to private equity firms ades, providing the group with the cash to panies between the brothers, 28 compa-
well ahead of the group they played sec- 50 corporate groups? A study in 2007 just better at managing it. than to conglomerates.” expand into new businesses, from retail to nies left the Mukesh Ambani Reliance
ond fiddle to 30 years earlier. In revenue looking at family businesses around the Further, in a controlled economy, The difference is that, in general, busi- telecom to media. Group, while 183 entered it (a substantial
terms, the gap is much closer, with the world compiled data of the top 50 corpo- such groups could allocate scarce credit ness groups can have a much longer time Other groups did not expand into number being in the cable business in
Reliance Group accounting for 6.3% of rate groups in India by assets, stretching and capital, and manpower and techni- horizon than the average private equity newer, ‘growth’ sectors at the same pace. 2020, following the acquisition of DEN
overall private corporate sector revenue, back to 1939. According to this study, 32 cal capabilities, to promote businesses in firm. Ironically, for a long time, many ana- Take the Lalbhai Group, for instance. In Networks in 2018).
as compared with the Tata Group’s 5.2%. new groups entered the top 50 list sectors where they saw strong growth. lysts were critical of precisely this attrib- 1995, 45% of the group’s revenue came Ultimately, if the last 30 years of churn
Other groups have not been as successful between 1939 and 1969, and 43 groups in As a 2007 paper by Tarun Khanna and ute of large business groups—that they from textiles. In 2023, that sector, a highly in the Indian industry are any guide, the
at growing, at least in relative terms. The 1997 were not on the list 30 years earlier. Yishay Yafeh points out: “Diversified tended to spread themselves out into competitive one globally, remained the largest business groups will not go away
Lalbhai Group, for instance, was ranked If liberalization had indeed succeeded groups may be efficient if they make up many, unrelated lines of business, and had biggest cash cow for the group by a signifi- anytime soon; they are likely to continue
10th in terms of assets in 1995. By 2007, it in overturning existing incumbents, for missing institutions related to the no ‘focus’. cant margin. A study in contrast is the Tata their domination. It’s the ones that are a
had fallen out of the top 50 corporate groups introducing competition and easing barri- process of entrepreneurship: new ven- After 1991, as markets became rela- Group. In 1995, steel and commercial bit smaller that will face the pressure to
in assets terms. Videocon and its group ers to entry across a range of industries, tures initiated by business groups rely tively more accessible, talent, skills and vehicles were the major sources of reve- evolve—or stagnate.
companies were 13th in terms of assets in the rate of turnover should be as high as it not only on capital infusion from the capital found it easier to establish profit- nue for the Tata Group. By 2023, both howindialives.com is a search engine for
1995, but by 2023, it was ranked 50th. was in 1997, if not higher. But according to group, but often also on the group brand able standalone firms rather than ones those sectors, while still significant, public data.
LIVEMINT.COM MINT MONEY TUESDAY, 29 OCTOBER 2024
NEW DELHI 13

From Goa to Dharamkot: The rise POWER

POINT

of co-living for remote workers

SI MA R J EET SI N G H &
HA R D EEP SI N G H MUN D I

We welcome your views and comments at

[email protected]

As remote work flourishes, digital nomads embrace co-living spaces for a seamless blend of work and leisure
SEBI’S MF INSIDER
Shipra Singh extent of facilities. I don’t look for
TRADING RULES TO
Co-living, co-working spaces: The new face of remote working
[email protected]
NEW DELHI
economic deals as for me the prefer-
ence is top-notch work infrastruc-
ture, so my costs are generally on the
PROMOTE FAIRNESS

F
or India’s growing tribe of higher side,” he adds.

T
digital nomads, the lines Gautam Pothineni, a Hyderabad- he Securities and Exchange Board of India (Sebi) has taken
between work and leisure based running coach, and his partner a landmark step by extending insider trading regulations
are blurring and remote co- Natasha experimented with different to mutual fund (MF) units, enhancing transparency in the
living spaces are becoming accommodations, including an asset management industry.
the offices of choice. From the green Airbnb in Bir, a hostel in Manali, and Starting 1 November, insiders in MF houses, including asset
farms of Goa to the Dhauladhar peaks a co-living space called The Void in management company (AMC) executives, trustees, and their
of Dharamshala, these professionals Dharamshala. They found co-living immediate relatives, will be subject to the same stringent rules
are redefining work-life balance. spaces to be the most practical that govern trades in listed securities, ensuring those with access
Pravin Singh, 33, a data scientist, option. to sensitive information do not gain any unfair advantage.
embodies this transformation. For “Airbnb is good for working but Key features: Sebi’s updated regulatory framework for MFs,
the past two years, Singh has given up PRIYANSHU NAYAN, 25, GAUTAM, 31, & NATASHA, 29, PRAVIN SINGH, 33, much more expensive,” says Pothi- under the Prohibition of Insider Trading (PIT) Regulations, 2015,
the concept of a permanent home, Bengaluru Hyderabad Digital nomad neni. “You’re renting larger spaces, introduces important provisions aimed at enhancing transpar-
moving between remote co-living, Software professional; employer Running coach; selpreneur & people Data scientist; runs own business, and you have to pay separately for ency. First, AMCs, trustees, and designated persons must now
co-working spaces across India and allows fully remote work scientist; partial remote job freelance consultant cooking and cleaning. In co-living disclose their mutual fund holdings on a quarterly basis. These
abroad. One month he’s working by spaces, everything is bundled in, disclosures will begin with holdings as of 31 October, and must
Stayed in Stayed in Stayed in
the Ping River in Chiang Mai, Thai- which makes it ideal for workations.” be submitted by 15 November, 2024. Subsequent disclosures are
AltSpace, Dharamshala The Void, Dharamkot Nomadgao, Goa
land, the next in a secluded corner of The couple spent ₹60,000 on a required within 10 calendar days after each quarter’s close.
Cost: 48,000 per month Cost: 35,000 per month for two Outpost, Cambodia
Goa’s Anjuna village. His desk travels Includes private room, meals, DIY people. Social Club, Chiang Mai
one-month stay at The Void, which Additionally, any transaction involving MF units exceeding ₹15
with him—wherever he chooses. laundry, co-work space. Includes private room, co-working In Georgia and Turkey, among other Pothineni says was nearly half the lakh in a calendar quarter must be reported to the AMC’s compli-
“I don’t have a base city. Earlier, I space, laundry, access to kitchen countries cost of their Airbnb experience. Hos- ance officer within two business days. This applies to trades by
NomadGao, Goa
was in Bengaluru, where I would live Cost: 23,000 for 1 week Meals: 450 per day, 3-meal pass. Cost: $1,000-2,000 per month tels, though cheaper, also proved designated persons, trustees and their immediate relatives,
for eight months and travel around Includes private room, meals Inclusive of everything. Costs vary as inconvenient. “For couples, hostels focusing on greater scrutiny of large transactions to prevent
for four months,” Singh says. “I gave (ordered separately), co-work space.  WORKED out of hostel: Not per location and extent of facilities. aren’t practical because you need two potential insider trading. Also, insiders are prohibited from prof-
up my apartment in 2022 and have cheaper than co-living place for a dorms or a private room. Plus, the iting from the sale and purchase of any mutual fund units within
started living out of remote co-living,  GAVE up rented apartment in 2023 couple and too noisy for working.  TRAVELLED part time for 6-8 cafes doubling as co-working spaces a 30-day window. If such trades occur, a detailed explanation
co-working spaces since.” and lived in remote co-living;  WORKED out of Airbnb: Cost was years while based in Bengaluru. are noisy,” he explains. must be provided to the compliance officer, who will report the
It helps that Singh runs his own co-working spaces for one year to double for co-living.  GAVE up rented apartment in To cater to the growing demand, transaction to the board of trustees. These measures reflect Sebi’s
business and provides freelance con- travel while working.  LIVES in own house in Hyderabad. 2022 and have been living out of some hostel chains, such as Design commitment to ensuring transparency and protecting investors
sulting, allowing him to work  NOW based in Bengaluru. Goes on With no rent obligation easier to take remote co-living; co-working Ashram and Tentgram in Kerala and from potential misuse of non-public information.
remotely from anywhere. Flexible short workations but also pays rent. workations regularly spaces since. GoStops in Rishikesh, now offer Global influence: Sebi’s new regulations have been signifi-
work arrangements, especially after co-working areas. However, these are cantly influenced by global best prac-
I saw remote work as an Having stayed in both hostel I don't economise on my
the pandemic, mean even those with
opportunity to live in different and Airbnb, remote co-living stays as living in a space
typically dorm-based and more suita- The new rules tices, particularly from the US and the
full-time jobs can explore these spa- ble for solo travellers. will provide a UK, aligning India’s mutual fund regu-
ces for extended “workations”—a cities without taking vacations co-working space work the best with top-notch work
safer and more lations with those of leading financial
The trade-offs
blend of work and vacation. instead of moving back to for me. Living in Airbnb is like infrastructure is my priority. Most co-living spaces offer meal markets. In the US, the Securities and
This nomadic existence is becom- hometown. running a house and is more costly. packages as well. Guests can access trustworthy Exchange Commission (SEC) enforces
ing feasible as flexible work policies What to expect from a remote co-living, co-working space kitchens for coffee and tea, though environment insider trading regulations through
take root post-covid, and an increas-
 Private  High-speed  Dedicated co-working  Kitchen access for  Home-made
cooking full meals is usually not for the investor Rule 10b5-1, which allows insiders to
ing number of professionals embrace allowed. set up pre-arranged trading plans
rooms with wifi, ergonomic space separate from coffee, tea; cooking meals priced at
the freedom to work from anywhere. At The Void, a three-meal pass when they are not in possession of
work desk work furniture cafe, common area meals may not be allowed 200-300
Designing for digital nomads costs ₹450 per day, while NomadGao non-public information.
Priyanshu Nayan, a software engi- charges ₹200 per meal. This rule ensures insiders can engage in legitimate trades with-
neer, is one such professional. When Costs of popular remote co-living spaces All the remote workers Mint spoke out breaching insider trading regulations. The regulator has
remote work became widespread Altspace, The Void, Nomadgao, Goa & Colmeia, to agreed that the overall cost of stay- introduced a similar mechanism, allowing mutual fund insiders
post-pandemic, many saw it as an Dharamshala Dharamshala & Tirthan Dharamkot Goa ing at a co-living, co-working space is to conduct pre-declared trades, minimising the risk of insider
opportunity to move back to their Daily tariff 3,500-5,200; 1,400-2,000 2,700-3,200 1,400-3,200 comparable to renting an apartment trading. The SEC also requires timely disclosure of insider trades
hometowns and reduce the high liv- (per head) 2 people in a metro city. However, profession- within two business days through Form 4 filings. Sebi's regula-
ing costs of metro cities. Nayan, how- Includes Room ensuite, 3 meals, Room ensuite, cleaning, Room ensuite, cleaning, Room ensuite, als embracing this lifestyle note that tions mirror this requirement, mandating that mutual fund trans-
ever, took it as a chance to live in dif- cleaning, DIY laundry, co-working co-working, 10-15% discount co-working, DIY additional expenses—including actions exceeding ₹15 lakh be reported within the same timef-
ferent places without having to take a co-working on partner cafes,restaurants laundry, cleaning flights, sightseeing, and adventure rame, thus ensuring transparency and accountability.
vacation. Long stay  17% on weekly  15% and more  10% weekly discount  25% on weekly activities—can add up, impacting the In the UK, the Market Abuse Regulation (MAR), enforced by
“My current employer allows discounts on booking discount on weekly,  15% fortnightly discount stays total budget. the Financial Conduct Authority (FCA), provides a comprehen-
remote work, so I spent the entire last daily tariff  45% on monthly monthly stays
 30% monthly discount"  45% on monthly Those maintaining permanent res- sive framework to prevent insider trading and market abuse.
year travelling extensively in Hima- booking" stays idences in metro cities may find regu- Sebi’s new regulations align closely with this model, particularly
chal Pradesh and Goa, staying in Source: Respective websites lar workations expensive, as they in terms of quarterly disclosures and compliance mechanisms.
co-living, co-working spaces and must manage rent at two places. This alignment helps ensure that insiders do not misuse privi-
PRANAY BHARDWAJ/MINT
Airbnbs. Now I live in Bengaluru but Pothineni and Natasha solved this by leged information for personal gain and that investors have
keep taking short workations,” the and laundry. However, in some pla- ing networks guests to maintain a professional moving into his parents' home in access to timely information.
25-year-old shares. ces, separate laundry costs ₹100-200 One of the key attractions of these environment. “They select people Hyderabad, freeing up resources for Strengthening compliance: To enforce the new regula-
These spaces are designed to meet per week. While the trend is still nas- spaces is the sense of community they based on how they intend to use the frequent travel. tions, Sebi has mandated that all AMCs establish a robust compli-
the needs of remote workers. Unlike cent in India, demand is increasing foster. “Remote work can get very space,” says Nayan, who has stayed As India’s workforce increasingly ance mechanism to detect and prevent insider trading, front-
hostels, they offer private rooms with rapidly. lonely, so one of the biggest upsides there. “This filter ensures the place embraces remote work and flexible running, and other market abuses. This includes enhanced sur-
ensuite bathrooms and dedicated Mayur Sontakke, founder and chief of living in such places is that you remains work-friendly and doesn’t living, co-living spaces are becoming veillance systems, stricter internal controls, and regular audits
co-working areas equipped with executive of NomadGao, become part of a com- become a vacation resort.” an attractive option for those seeking to monitor for potential violations. These systems will help AMCs
ergonomic furniture, stable Wi-Fi, which operates spaces in Co-living spaces munity of like-minded Sontakke notes NomadGao avoids to combine productivity with adven- identify suspicious activities and take corrective actions, ensur-
and ample charging points. Work Goa and Dharamshala, often offer people,” Nayan explains. hosting tourist groups. “It gets tricky ture. While still in its early stages, this ing better oversight. The Association of Mutual Funds in India
areas are separate from social spaces highlights the shift. greater value “Since you eat, play, when friends or families inquire. We trend signals growing demand for (Amfi), in collaboration with Sebi, will play a key role in develop-
to minimize distractions, and each “When we started in than Airbnbs, and and work together, you ensure they understand that this is a professional-grade work environ- ing detailed guidelines for consistent implementation of these
room often includes a desk for those 2019, we hosted only two form strong bonds. The work-focused space, before confirm- ments in scenic destinations—poten- standards across the industry. This will help ensure that all AMCs
seeking privacy. Daily services such
is particularly tially reshaping how and where Indi-
Indian guests in the first friends you make can ing bookings.” follow a uniform set of compliance practices, reducing regulatory
as cleaning, laundry, and home- six months of operations appealing to also help with job Cost dynamics ans work. gaps and limiting the opportunities for market abuse.
cooked meals are also included, before covid, while the remote workers opportunities and pro- These co-living spaces often offer These regulations mark a significant shift towards greater
allowing guests to focus on work. rest were foreigners. The vide new career per- better value than Airbnbs, particu- transparency, enhanced monitoring, and stronger enforcement.
Some of these places require a min- pandemic made remote spectives.” larly for remote workers. Liked this This development is a welcome step for investors. As the mutual
imum two- or three-day booking and work a norm and now we get many Co-living spaces strike a balance Singh mentions spending $1,000 story? Please fund industry becomes subject to stricter regulation, it provides
offer 10-50% discounts on longer young professionals who stay at our between privacy and socialization, a to $2,000 (₹84,000 to ₹1.68 lakh) per share it by a safer and more reliable environment for the investor.
stays. The pricing is similar to that of properties for medium (10-15 days) to feature missing in many hostels or month on such stays, depending on scanning the Simarjeet Singh is an assistant professor at the Great Lakes Insti-
homestays or guest houses, with the long periods (one month or more).” Airbnbs. Some properties, such as location and amenities. “The costs QR code. tute of Management, Gurugram. Hardeep Singh Mundi is an assist-
room tariff covering housekeeping Combating loneliness, foster- Altspace in Dharamshala, screen vary depending on the location and ant professor at IMT, Ghaziabad. Views are personal.

Returns on investments How NRIs can carry forward capital loss

Building a portfolio is a complex exercise, and it has to be maintained, too. A person’s portfolio holds different types of assets based
on his/her financial goals, and each asset class gives different types of returns, which is why a portfolio must have an ideal mix of Harshal Bhuta claim the set-off for your
financial products. One must also keep in mind the volatility risk of the asset class, liquidity, lock-in rules and taxation. Here's a look brought forward loss.
at how four commonly used asset types—equity, cash, gold and fixed income—have done in different periods. I am an NRI residing in Abu Again, the set-off of the
Dhabi. I sold my residential brought forward loss is not
property in India at a loss in prejudiced by the fact that you

9.re2turn9th%at Returns (in %)

Equity (Sensex)
2021-22 and filed income
tax returns within the due
have not yet filed your tax
return for 2023-24 by the due
date. You can still submit your
The given
Cash (liquid fund) date. However, I have not
Sensex hase-year Gold Fixed income (fixed deposit) filed my ITR for FY23 since belated tax return by 31
over a thred
I barely had any taxable December 2024 to make the
perio income. For FY24, I earned desired claim.
some capital gain income Please bear in mind that
from the sale of shares but I long-term capital losses can be
27.44 missed filing my returns in set off only against long-term
22.97 July 2024. Can I still set off ISTOCK
capital gains. Hence, you will
the losses made in 2021-22 ASK MINT the timely filing of the return be eligible for set-off during
16.4 against my current year's m N R I TA X AT I O N for the initial year in which loss 2023-24 only if the capital
15.27 14.05 capital gains income? corresponds (viz. 2021-22 in gains income from the sale of
11.45 10.0 —Name withheld on request your case), there is no other shares is long-term gains in
9.29 8.5 the loss. Thereafter, you have provision under ITA requiring nature. Otherwise, you may
7.15 6.0 6.03 6.23
5.1 5.09 5.4 Section 80 of the Income not filed income tax return for you to continue to file subse- still carry forward the losses
Tax Act, 1961 (‘ITA’) mandates 2022-23 because, as you men- quent years’ tax returns to you brought forward from
that taxpayers should file their tioned, your income had not remain continually eligible to previous years.
income tax returns within the exceeded the basic exemption carry forward previous year —Harshal Bhuta is partner
prescribed due date specified limit corresponding to that losses to the subsequent years. at P.R.Bhuta & Co.
in section 139(1) to carry for- year. And during 2023-24, you Consequently, the absence
ward losses. In your case, you state that you realized certain of a tax return for 2022-23 Do you have a personal
1 YEAR 3 YEARS 5 YEARS 10 YEARS have successfully filed your capital gains that you can set does not disqualify you from finance query? Send in your
Data as on 4 October 2024. Equity is the benchmark Sensex return (price); cash refers to the average return for liquid funds category as defined loss return for 2021-22 within off against the losses from carrying forward the losses to queries at
by Valueresearchonline; gold refers to domestic gold prices available on Valueresearchonline; and fixed income is historic SBI fixed deposit rates. the specified due date, which 2021-22. 2023-24. Further, coming to [email protected]
All returns are annualized. and get them answered by
marks an important first step It is important to note that 2023-24, you are well within
Source: S&P Dow Jones Indices,Value Research,SBI industry experts.
PRANAY BHARDWAJ/MINT in establishing your claim for while section 139(3) requires the eight-year time limit to
14 TUESDAY, 29 OCTOBER 2024
NEW DELHI VIEWS LIVEMINT.COM

OUR VIEW THEIR VIEW

The ‘fair share’ fallacy: Telecom

companies should think afresh
Making application providers pay for internet infrastructure is pointless. It will distort the market

that boasted of internet infrastructure as big a role in driving internet adoption

among the best globally. than per capita income.
The tussle between OTTs and TSPs in The absence of empirical research in
South Korea also ignited a debate over support of a fair-share argument is also
‘net neutrality,’ which states that inter- telling. Attempts to compensate with
net infrastructure providers like telcos false contentions are prone to basic
should not discriminate between simi- errors. For instance, the COAI white
lar packets of data flowing through paper contends that growth in data
them. Everyone already pays for net- usage is outpacing growth in data car-
VIVAN SHARAN & work access. Asymmetric payments by a riage, directly correlating the two. How-
VIKASH GAUTAM few users will change this paradigm and ever, data carriage capacity and data
are public policy experts with Koan incentivize internet providers to play usage are two fundamentally distinct
Advisory Group, New Delhi. favourites with data packets, violating concepts—the former is the amount of
the principle of net neutrality. data that can be transmitted within a

India’s oil dependency is

Even the EU has approached the ‘fair given timeframe, whereas the latter
share’ demand cautiously, despite its represents the actual utilization of this

T
he three-day India Mobile Con- penchant for state intervention in well- capacity. Consider this: a single 4G
gress ended last week. Several tele- functioning digital markets. It has man- telecom base station delivers over 100
com industry stakeholders made aged to distort all digital interactions terabytes of mobile data per month.

no longer a major worry the case for digital application providers

or over-the-top (OTT) services to pay
them a “fair share” of the cost of internet
infrastructure. In India, telcos largely
already with its trigger-happy data pro-
tection, e-commerce and competition-
related rule-making. Surprisingly, bet-
ter sense still prevails on the question of
Given that there are more than 2.4 mil-
lion stations, a back-of-the-envelope
calculation suggests that average data
consumption per base station is around
build and operate this infrastructure, ‘fair share.’ EU members such as Austria, 11 terabytes per month. Needless to say,
and are seeking an additional network Denmark, Germany, Italy and the Neth- the advent of 5G expands data-delivery
A big forex cushion and relatively stable oil prices despite fraught geopolitics imply we need usage fee from application providers to erlands don’t support it, and neither do capacity manifold.
sustain their capital expenditure. prominent institutions like the Euro- Finally, internet bandwidth repre-
not get anxious about imports nearing 90% of consumption—well above India’s 67% target These demands are not new. A white pean Telecommunications Agency sents only one facet of the telecom-ap-
paper by the Cellular Operators Associ- BEREC, Internet Society and RIPE Net- plications continuum. Other compo-
ation of India (COAI), ‘Addressing Ris- work Coordination Centre. nents include content creation in local
ing Data Traffic and Associated Infra- The US is similarly unconvinced, languages, cybersecurity vigilance and

I
ndia’s reliance on imported crude oil is itary targets, Brent crude was trading at under structure Costs in Indian Telecom,’ had despite legislative proposals on variants service quality improvements. Most
getting worse. The latest government data $72 a barrel on Monday, down 5%, perhaps in earlier foreshadowed some of the argu- of the fair-share idea. The Lowering popular apps make large investments in
ments made at the conference. Telcos Broadband Costs for Consumers Bill these areas and spent more than $1 tril-
shows that the country imported 88.2% relief that Tel Aviv did not attack Iran’s oil want large traffic generators (LTGs) floated by some senators hasn’t pro- lion globally on content delivery net-
of the oil it consumed in the first half of infrastructure and Tehran played down the such as video streaming apps to also gressed. The Joe Biden Administration works, public clouds, submarine cables,
2024-25, up from 87.6% a year earlier. damage. The commodity has traded mostly bear some of the infrastructure costs. seems reluctant to repeat South Korea’s data centres and data cache servers over
Such a high import dependency would below $80 this month, even though West Asia’s However, international experience missteps. Why then should India? the last decade. These help bring con-
disappoint policymakers who have been trying theatre of war enlarged to include Lebanon. suggests India shouldn’t pursue this Telcos already benefit significantly tent closer to consumers and thus
course. South Korea, the only Asian from application providers, particularly reduce the network load.
to increase our self-reliance in the energy sec- One big reason could be a cap on prices placed country to experiment with such ‘fair those generating heavy traffic, like The demand for OTTs to pay a ‘fair
tor. To that end, in 2014-15, the government by US shale output, which is seen to spurt in sharing,’ has seen consumers left worse video apps. Would you pay as much as share’ is misguided. They already do.
had set a target of reducing our oil dependency response to price signals at the $75-plus level. off. LTGs are increasingly partnering you do for the internet if your favourite Exceptional policies can lead to higher
to 67% by 2022. Since the import proportion On the whole, global supplies seem steady, directly with internet providers to get apps were not available? Scholars at IIT consumer costs and market inefficien-
was 77% in 2013-14, a reduction of 10 percent- with Iranian and Russian oil finding takers and around the policy or offer limited con- Delhi and the University of Oslo don’t cies. The argument of telcos overlooks
tent in the country. These detours have think so. They suggest that there would the vital role of apps in driving internet
age points may have seemed like a reachable American shale frackers having weakened the reduced traffic efficiency and distorted be no need for high-quality internet adoption and ignores the realities of
aim back then. But the share of imported oil in lever that oil-cartel Opec+ once had on prices. South Korea’s market. As a result, the infrastructure without such LTGs. modern network capacity. It is time to
Indian consumption has gone the other way India has been getting tanker-loads from Rus- average time for a data packet to travel Scholars Brian Viard and Nicholas lay this matter to rest and focus instead
over the past decade. This exposes our econ- sia and is looking to import oil from countries from one point to another is the highest Economides go so far as to show that on fostering network innovation and
omy to global price shocks, in addition to the as far off as Brazil. All of it at a cost that doesn’t among developed countries. This is online content consumption, also improving people’s access to apps. That
quite a change in fortunes for a country driven by our favourite apps, has twice will help increase internet connectivity.
risk of supply disruptions. Oil price upshoots pinch. Even if it did, our forex reserves of $688
usually widen India’s trade and current billion provide an impact buffer.
account deficits, soak up that much more All these factors have raised India’s energy
foreign exchange, weaken the rupee, and fuel security. Sure, it is preferable to be self-reliant,
domestic inflation. Previous major episodes but our own oil output has been unable to keep
have been scary. It was an oil crisis caused by up with rapidly rising demand and renewable
the 1990-91 Gulf War that left India short of US alternatives will take time to make an impact. www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Wednesday, October 29, 2014 Vol.8 No.258 `4.00 in Delhi-NCR/`5.00 outside Delhi-NCR 24
32 PAGES

dollars and moved us away from our post-1947 In all, reducing our import reliance does not POLICY: India, Vietnam sign pact
on South China sea blocks >6
CORPORATE: Investors sue ICICI Venture
in Mauritius over losses >3

‘mixed economy’ model. As we needed hard look feasible. So long as oil flows in smoothly, EARNINGS: Ranbaxy posts net profit of
`478 crore in second quarter >3

currency for oil shipments, we learnt the hard that should not cause us anxiety. By the theory
twitter.com/
livemint

SENSEX 26,880.82 Æ 127.92

BLACK MONEY
facebook.com/
mint.live
plus.google.com/
+livemint

NIFTY `8,027.6 Æ 35.9

pinterest.com/
livemint/

DOLLAR `61.33 Æ `0.02

AVIATION: Airlines likely to have lost `2,200 cr in
September quarter >3

EURO `77.91 Æ `0.28

S. KUMAR/MINT
GOLD `26,980 æ `75

India e-commerce QUICK EDIT

OIL $85.89 Æ $0.06 Multilateralism is
way that globalization was a must. When oil hit of trade, we should focus on what we produce SC orders
govt to give
gets latest push
from SoftBank
B Y S HRUTIKA V ERMA
M IHIR D ALAL
·························
NEW DELHI/BANGALORE

S oftBank Group, the largest

shareholder in Chinese e-
&
Return to
Singur
S ix years after protests
spearheaded by
Mamata Banerjee’s
Trinamool Congress
not an easy option. We’re
going to find that the
commerce giant Alibaba Group forced Tata Motors out of

$147 per barrel in mid-2008, we took another best and buy from others what they supply
Holdings Ltd, made its biggest Singur, the Tatas have

all names
bet yet on Indian Internet com- been invited back to West
panies, investing $837 million Bengal
in e-commerce marketplace After ending the Left
Snapdeal.com and online taxi Front’s 34-year reign in
booking service Ola, and pledg- the state in 2011, the
ing to invest a total of $10 bil- Banerjee government had
lion over a decade in the coun- been in the grip of a
Top court chides govt Lokur rejected protests by the try. populist frenzy. From

economic blow, though a far milder one. cheaper. For decades, this logic applied poorly
for putting ‘protective government, represented by SoftBank, whose 32% stake in opposing the United

world is very difficult.

attorney general Mukul Rohat- Alibaba is currently valued at Progressive Alliance
umbrella’ over account gi, that such disclosure would about $79 billion, has invested government at the centre
holders, says will violate the certificate of confi- $627 million in Snapdeal.com, on the slightest pretext to
dentiality the Indian govern- making the Japanese company pursuing ruinously
monitor investigation ment gave when foreign au- the largest investor in the on- populist policies in West
thorities disclosed this infor- line retailer. Bengal, the Trinamool
B Y A POORVA mation to it. The apex court It also led an investment of Congress defied political
[email protected] said it would deal with that $210 million for a significant and economic prudence.

Significant changes have taken place since to oil, whose market was distorted by a cartel
························· problem when it arises. stake in Ani Technologies Pvt. Democracy and markets
NEW DELHI The court was also uncon- Ltd, which runs the taxi booking have struck the Banerjee

T he Supreme Court on vinced by Rohatgi’s argument service Ola. government hard.

And relationships between

Tuesday told the that disclosure of information The firm’s investments in Starved of investment
Bharatiya Janata Party would hinder negotiation of Snapdeal and Ola mark the lat- and fiscally straitened, it
(BJP)-led government it must tax treaties and procurement est peak for India’s fledging e- has taken this
hand over to the court all the of information about black commerce industry. More than government so long to
information it has on accounts money from other countries in $3 billion has already been in- come to its senses. In the
held by Indians in foreign the future. vested in e-commerce this year, interim, West Bengal lost

then. The Russia-Ukraine War is in its third that kept prices artificially high by controlling
banks, setting a day’s deadline Rohatgi informed the court much: the ousting of the
that finance minister Arun that the procedure being fol- Political choice: Devendra Fadnavis (above) was on Tuesday elected the TURN TO PAGE 2® Left Front did not alter
Jaitley said his government lowed by the government at legislature party leader of the Bharatiya Janata Party (BJP) in the populist consensus
would have “no difficulty present was to issue a notice to Maharashtra and will be sworn in as the party’s first chief minister in ALSO SEE against industry in the
whatsover” in meeting. everyone whose names figured the state on Friday. The new government will be sworn in at a ceremony state. That may—and
>Softbank’s Snapdeal investment

America and the rest of the

Jaitley said that the govern- on the lists that had been pro- at Wankhede Stadium in the presence of Prime Minister Narendra highlights eBay’s plight in India >P8 there is a big if—change
ment would submit the full list vided by foreign governments. Modi, several of his cabinet colleagues and chief ministers of BJP-ruled >Snapdeal can become India’s Alibaba, now.
of account holders in an ongo- Following this, the income tax states. See Page 4 says SoftBank’s Masayoshi Son >P12
ing black money case before (I-T) authorities would decide

year, with stiff Western sanctions on the a big chunk of global production. It made sense
the Supreme Court on whether to launch prosecu-
Wednesday. tion—based on whether the re-
“The government has abso-
lutely no difficulty in giving the
sponse it received gave a satis-
factory explanation of why a Blackstone,
court the full list. The govern-
ment is keen to follow whatev-
foreign bank account was held.
Before this stage, the gov- Sheth brothers
er procedure to get at the root ernment could not reveal
to oppose NSEL

world are very difficult.

of the matter so that action can names since this would preju-

former, an oil producer. The Gaza War that to pump out local oil even if it proved a costly
be taken,” he added. dicially affect genuine account
Jaitley also said that the gov-
ernment has no problem with
holders.
But the court said the gov-
merger order
any agency investigating the ernment need not investigate
case—a public interest litiga- the matter on its own—all it B Y K HUSHBOO N ARAYAN
tion filed by senior lawyer Ram needed to do was “to request A SHISH R UKHAIYAR
Jethmalani seeking a return of foreign countries to give ·························
black money allegedly salted names” and “pass on” the in- MUMBAI

away by Indians in foreign formation to the Supreme

B lackstone Group Lp and the

began last October has threatened to engulf enterprise. Although Opec+ is not powerless
banks in order to evade Indian Court, which would then mon- Sheth brothers—the two
taxes. itor the probe. largest minority shareholders
“The truth about these Dattu said the apex court in Financial Technologies (In-
names and also these accounts would direct the I-T depart- dia) Ltd (FTIL)—plan to chal-
must come out so that penal ment or the Central Bureau of lenge a government order that
action can be taken against the Investigation (CBI) to con- the company merge with its
people and the money lying clude the investigations in a fraud-hit subsidiary National
there can be brought back to month’s time. Spot Exchange Ltd (NSEL),
India,“ Jaitley told reporters Chiding the government for three people familiar with the

large oil fields in West Asia, with Israel-versus- and wars can still be disruptive, the case for
after the Supreme Court order. “trying to take a protective um- matter said.
“The government has no dif- brella for these people (the ac- The investors are exploring
ficulty whatsoever with any count holders)”, the chief jus- options and likely to move in

C HR I S PAT TE N
agency investigating this mat- tice said that “unless we moni- consonance in the next few
ter because there is nobody the tor this case, nothing will come days in opposing the draft or-
government wants to protect out of it”. der that the government said
in this case so that those Even though the court sug- was in “public interest”. The or-
whose names have come must gested during the course of the der sought to transfer all liabili-
really be investigated and pun- proceedings that the informa- ties of the commodities bourse

Iran hostilities on a short fuse. Yet, the oil mar- investing in oil fields at home—unless we find a
ished according to law,” he tion could be submitted in a to FTIL, the flagship company
added. sealed cover, no specific direc- of entrepreneur Jignesh Shah.
Jaitley said the government “We will move in the next few
is also keen that the procedure TURN TO PAGE 32® days but we are trying to under-
followed must be such that the stand what will be the best
reciprocating countries con-
tinue to cooperate with India.
NOTE TO READERS way—public, legal, private,”
said one of the three persons
Earlier, passing the order, a The Media Marketing Initiatives on cited above. All three spoke on
bench of chief justice H.L. Dat- Pages 9 and 23 are the equivalent of condition of anonymity.

ket has stayed relatively calm for the most part. clear cost advantage in global comparison—is
tu and justices Ranjana Pra- paid-for advertisements, and no Mint The 21 October order sought
kash Desai and Madan B. journalists were involved in creating to make FTIL, which owns
these. Readers would do well to treat 99.99% of NSEL, a party to all
Mint is also available for R8 with them as advertisements.
Hindustan Times in Delhi-NCR only TURN TO PAGE 2®

Despite recent Israeli air strikes on Iranian mil- significantly less compelling today.

THEIR VIEW

Adopt multilateralism to reshape the financial system

developing financial infrastructure to would prefer to use among themselves. increasing its use in international trade set- A multilateral and more democratic frame-
EJAZ GHANI reduce short-term instability. Large fluctua- We are no longer in a unipolar world. tlements, developing its financial markets work for international financial institutions
tions in exchange rates can hurt export- Global decision-making is now more demo- and encouraging foreign investment in is the best bet to maintain financial stability
driven industries. For many countries with cratic and decentralized. Yet, we are more RMB-denominated assets, thus creating a and reduce global poverty. This requires
liabilities in dollars but assets in local cur- interconnected. The present system lacks more diversified global currency landscape reforming their governance structures,
rencies, it can lead to liquidity crises and coherence in supporting its fundamental alongside the dollar and euro. changing their quota systems and granting

A
lthough the US dollar remains the defaults if the local currency depreciates. goals of global development and financial Similarly, India can promote the use of the developing nations more voting power.
world’s dominant currency, many While it is unlikely that the dominance of stability. It needs to be rupee, deepen economic Global institutions should provide more
countries are diversifying their cur- the dollar will vanish soon, its alternatives updated for a new era. ties with other emerging affordable long-term loans with flexible
rency reserves to reduce over-reliance on it, should not be overlooked. Technological International dialogue is It’s the ideal economies, participate in repayment terms tailored to developing
mitigate risks associated with changes in US advances and the rise of digital currency are needed to scale up policy initiatives to create alterna- countries’ needs. Increased lending in local
monetary policy and lessen the impact of changing how countries and societies think coordination between way to meet the tive reserve currencies, and currencies is needed to reduce currency risk
global economic shocks. Reduced reliance about money. Crypto technology can major economies and advocate greater represen- for developing countries and more funding
on the dollar in financial transactions is clear change how we conduct payments, banking address concerns of the
world’s aims of tation of developing is needed for climate-related and gender-in-

is a senior fellow at Pune

in the decline of dollar-denominated depos-
its and loans, and the dollar’s share in global
and other financial transactions. But crypto-
currencies also display high price volatility,
developing world.
To support a multipolar
development nations in global financial
institutions.
clusive projects in vulnerable regions. Debt
management should be made more trans-
International Development
Center
foreign exchange reserves.
India is promoting its rupee, forging cur-
which makes them less attractive as a means
of payment. So, they will merely offer people
global monetary system,
the US could encourage
and create a Global financial institu-
tions like the IMF and
parent. Also, better mechanisms for debt
restructuring are needed when countries
rency-swap agreements and encouraging greater choice in what they can use for trade the use of other major cur- system that’s World Bank too have a key face economic crises.
the internationalization of Indian compa- and as a store of value. rencies alongside the dol- role in facilitating a more Overcoming the challenges of switching
nies. This is also seen in many Latin Ameri- The Brics nations, which began with Bra- lar as reserve currencies, trusted globally diversified monetary sys- from a unipolar to a more democratic multi-
can countries like Argentina, Bolivia, Peru zil, Russia, India and China before enrolling participate in international tem. They can promote the lateral framework requires political commit-
and Uruguay. Many central banks are more members, is reportedly eyeing a new initiatives to strengthen use of special drawing ments by major powers to prioritize global
imposing higher reserve requirements on digital currency. Its impact on the dollar is alternative payment systems and promote rights (SDRs) and support the integration of development goals and coordinate policy
dollar deposits and intervening in the for- uncertain. But it could weaken the power of greater cooperation among central banks to major currencies into global financial mar- changes. This will help safeguard global gov-
eign exchange market in a manner that US sanctions and erode the dollar’s value. manage exchange-rate volatility, while also kets. They also need to increase the weight ernance and make it inclusive and fair. No
encourages de-dollarization. India favours the use of local currencies for working to maintain a stable domestic econ- of developing-world currencies within the single country can manage global risks. Mul-
De-dollarization has many advantages, trading with other Brics members, and any omy to bolster the dollar’s credibility. SDR basket. This would better balance the tilateralism is the only way to address the
but there are also huge transitional risks. It decision will remain non-binding, so that China can promote the internationaliza- international monetary system and reduce world’s complexities and generate trust in
requires substantial upfront investment in members can choose which currency they tion of its currency, the renminbi (RMB), by disruptions associated with de-dollarization. the international monetary system.
LIVEMINT.COM VIEWS TUESDAY, 29 OCTOBER 2024
NEW DELHI 15

THEIR VIEW M I N T C U R AT O R

A decade of ‘Make in India’: Our McDonald’s should not forget

lessons from Chipotle’s crisis
factory sector’s future is bright Show empathy for harmed consumers before making safety claims

Manufacturing has seen a post-pandemic upturn even though more must be done to enable faster generation of employment

HT

BETH KOWITT
is a Bloomberg Opinion columnist covering
corporate America.

V. ANANTHA NAGESWARAN
is chief economic advisor to the Government
of India.

C
onsumers make choices about what
and where they’ll eat based on qual-
ity, convenience and price. But

R
ecently, the government marked the higher up the hierarchy of needs is the McDonald’s Quarter Pounder burgers
occasion of one decade of ‘Make in requirement that the food you eat not made some US consumers fall ill BLOOMBERG
India.’ It was a trigger for many com- sicken you—or, in a worst-case scenario,
mentators to bring out their knives prove fatal. If a brand needs to convince Compare McDonald’s speed and level of
(sorry, keyboards) and point out that customers that its food won’t do the latter, specificity to Chipotle’s handling of its E.
India’s manufacturing gross value it’s in deep trouble. McDonald’s entered coli outbreaks in 2015. Chipotle and inves-
added (GVA) as a share of total GVA has not risen, that territory this week when news broke tigators were never able to exactly identify
etc, contending that the programme has failed. that its Quarter Pounder was the source of what was making people sick. The com-
Some find a way to see silver linings around clouds an E. coli outbreak across 10 states that had pany reportedly struggled to tell the Cen-
and some are adept at the opposite. killed one person and sickened dozens ters for Disease Control and Prevention
First things first. Manufacturing as a share of over a two-week span recently. (CDC) which ingredients went to which
GVA or GDP is a ratio. A ratio can stay the same, or While more cases may emerge, McDo- stores when. “The system they have is not
even decline, even if the numerator keeps growing nald’s isn’t close to a Chipotle circa 2015 able to solve the problem we have at hand.
steadily if the denominator grows at the same rate situation—at least not yet. Nearly a decade It’s not granular enough,” as Ian Williams,
or faster. It does not mean that the numerator is ago, the burrito chain dominated headlines chief of the CDC’s outbreak response and
stagnant. for months when a string of norovirus, E. prevention branch, remarked at the time.
Second, humans are not wired to do the counter- coli and salmonella outbreaks poisoned Consumers were reluctant to return to the
factual well. In other words, we don’t think about The CAGR of GFCF over the two years till 31 March number of ‘workers’ in factories with more than hundreds of customers. The number of brand when it couldn’t even figure out
how well or badly the manufacturing sector would 2023 in the manufacturing sector was 26% and 100 employees has increased from 249 to 262. incidents gave the impression that the situ- what the problem was in the first place.
have done but for the government’s ‘Make in India’ 13%, respectively, at current and constant Similarly, the average number of ‘employees’ in ation had spiralled out of the company’s Chipotle took too long to acknowledge
related initiatives. But this question has to be asked prices. Private corporations drove this GFCF factories with more than 100 employees has gone control. It took years for the brand to fully how serious a problem it had on its hands,
because the last 10 years were not normal. At least recovery in the manufacturing sector. Their CAGR up from 313 to 327. However, this pace of recovery repair its reputation, requiring a full-on take responsibility for it, and apologize. It
two major shocks buffeted the Indian economy during the same period was 23.5% and 10.6%, has to be much faster for us to realize our develop- management overhaul to convince diners blamed the media for sensational head-
and its manufacturing sector. respectively, at current and constant prices. With ment goals. that it was safe to eat at the chain again. lines and regulators for the way they han-
The first shock was a credit bust. Excess debt respect to GFCF in machinery and equipment, the We also studied the data on the number of com- Unlike Chipotle, McDonald’s has long dled the probe. And the company’s cocki-
taken during the boom years had to be paid back as two-year CAGR in the sector as a whole was 28.5% panies, both public and private, incorporated in had a stellar food-safety reputation, which ness on the quality of its food came back to
optimistic assumptions behind such borrowing and and 29.4% for private corporations. MoSPI will different industries. Between 2016-17 and 2023-24, makes this occurrence seem more like an bite it. “‘Food with integrity,’ a promise to
investment did not materialize in the post-2008 release granular data for 2023-24 in January 2025. the total number of companies in the country went anomaly than an issue with its overall sys- Chipotle’s customers and a rebuke to its
crisis world, as global growth disappointed. Indian A similar picture emerges when we examine up from 981,491 to 1,629,560. The CAGR is 7.5%. In tem. Don Schaffner, a professor of food sci- competitors, has become the source of
exports could not grow at the same rate as they did data from the Annual Survey of Industries. A manufacturing, the growth rate was 6.3% as the ence at Rutgers, told me what most sur- much schadenfreude among both,” Susan
before 2008, as global trade growth in the following slowdown in GFCF shows up in the growth of the number of companies rose from 215,594 to 330,369 prised him about the whole thing was that Berfield wrote at the time.
decade trailed the levels seen in the earlier period. A number of factories set up during the seven years in the same period. The total paid-up capital rose McDonald’s was the source of the out- For better or worse, McDonald’s can
reversal of fortunes in India’s manufacturing sector till 31 March 2021, whether small (less than 100 from ₹21.9 trillion to nearly ₹37 trillion over the break. When he heard the news, he said mostly skirt this issue, since it attracts cus-
can be seen in capital formation growth rates in this employed), medium (more than 100 employed) or same period, at a CAGR of 7.8%. In manufacturing, “my jaw dropped.” tomers more interested in speed, value and
sector, specifically among private corporate manu- big (more than 5,000 employed). Again, as in the the corresponding figures are a little over ₹6 trillion McDonald’s commitment to food safety consistency than food provenance. The
facturers with their relatively weak investments in case of GFCF, the most recent two years for which and nearly ₹10.6 trillion at a CAGR of 8.2%. That goes back to 1982, when its burgers in Ore- bigger issue for McDonald’s will be the
machinery and equipment. data is available (2021-22 and 2022-23) show said, the road ahead is long. The total number of gon and Michigan were discovered to have social media conversation the episode will
The compounded annual growth rate (CAGR) much greater promise. Not only has the number companies in India, at around 16 million, is low even sickened customers. The episode didn’t get provoke about what McDonald’s food, out-
of gross fixed capital formation (GFCF) in the of medium and large factories grown faster, but compared to smaller countries. much press at the time, and it wouldn’t be break aside, does to people’s health.
sector over the seven years till 31 March 2021 was the growth in the number of workers and employ- As the Economic Survey of 2023-24 noted, we until Jack in the Box’s deadly outbreak a The burger giant has taken swift action,
4.9% and 3.0%, respectively, at current and con- ees in such factories has picked up pace too. need a tripartite conversation between the Union decade later that food safety hit the general pulling the Quarter Pounder from about
stant prices. Specifically, for private corporations, I have cited these figures not to feel smug or pat and state governments and the private sector on public’s radar. By then, McDonald’s had 20% of its restaurants and putting out a
the growth rates were 4.5% and 2.5%, respec- the government on its back, but to provide context deregulation and the deployment of technology in already changed the way it cooked and statement from its head of supply chain for
tively. The data for these calculations comes from to discussions on the health of the manufacturing the context of labour versus capital, and particularly handled its food, introducing clamshell North America and a video from McDo-
the National Income Accounts of the Union min- sector in the country. Admittedly, much remains on labour’s share of income. On deregulation, much grills that cooked its patties on both sides nald’s US president stressing how seriously
istry of statistics and programme implementation to be done. has been done, but much remains to be done too, simultaneously to kill harmful bacteria. the company takes food safety. That mes-
(MoSPI). Data for investment in the manufactur- A recent paper by Arvind Subramanian et al particularly in states and by local governments. The changes that’ve been implemented sage would have been more powerful had
ing sector, specifically machinery and equipment, cited multiple units of relatively small sizes in Policy stability and continuity are desirable goals to since then mean it’s now more common to it come from the company’s CEO. But what
is available only at current prices. The seven-year each location as one of the features of Indian man- pursue at all levels of government. This should see E. coli in restaurants linked to raw fruits was oddly missing from both communica-
CAGR for investment in machinery and equip- ufacturing that sets it apart from other developing include a discussion on the trade-off between and vegetables than beef. McDonald’s has tions was any sort of acknowledgement or
ment is 3.5%, and this rate drops to 1.8% for private economies. This diagnosis is correct. If one divides boosting employment and the costs entailed by identified slivered onions in its Quarter apology to those who were sickened by eat-
corporations. the total number of persons employed in factories mandated employee benefits. Pounders as the problem’s cause. The fact ing its food.
We have used this seven-year period because it classified as having 5,000 or more employed by Apart from these, entrepreneurs and industrial- that it quickly pinpointed the culprit, the That’s likely the work of McDonald’s
covers two shocks: the credit bust and the covid the total number of such factories, the number ists must reflect on whether they have a passion for source being a single supplier to three of its legal department. But if there’s one thing
pandemic. In addition, this period witnessed should be at least 5,000. It is not. It is far lower. So, growth. Do they prefer to be big fish in small ponds distribution centres, suggests that the McDonald’s can learn from Chipotle, it’s
structural reforms such as the introduction of the the average true plant size is lower than what one or small fish in an ocean? Among other things, their company has a tight grasp on its supply that showing some empathy might be the
goods and services tax (GST) and the Insolvency observes at first glance. That said, as the paper too choices too will determine how soon and how easily chain. This also suggests it has a supplier most important ingredient in convincing
and Bankruptcy Code. notes, recent developments are encouraging. the pond becomes an ocean. issue rather than a problem with how its customers that it’s safe to eat at your res-
Post-covid, the picture brightens considerably. In the years 2021-22 and 2022-23, the average These are the author’s personal views. outlets are handling its food. taurants again. ©BLOOMBERG

MY VIEW | IT MATTERS

India’s infotech sector seems headed for a bleak winter

recent sequential recovery seen by Indian IT elusive. For the Indian IT sector, this tech- The industry needs solid use cases, with the As IT firms pivot to this efficiency-first
SIDDHARTH PAI firms could be due to a delayed conversion nology’s role is ambiguous, if not puzzling. budget commitment that will demand long- model, they might miss out on the next wave
to revenues of deals won during the first half On one hand, there’s tremendous optimism term IT support, development and consult- of growth, whether that comes from Gener-
of this calendar year. In addition, a lack of about AI’s disruptive potential. On the other, ing—services that remain under-used until ative AI or another breakthrough technol-
mega-deals (above $1 billion) announced by enterprise customers’ lack of defined use a clearer picture emerges. This leaves IT pro- ogy. A journalist told me that Indian IT has
large-cap Indian IT players over the past 12 cases has put tech providers in limbo. Few viders in an uncomfortable position—they become a “traditional” sector (read one with

I
see multiple risks for India’s large-cap months implies muted sequential growth for companies are willing to bet big on Genera- must be ready to respond to rapid AI demand slow growth), much like the steel industry!
information technology (IT) companies as the next few quarters. (Separately, this tive AI without clarity, and growth without a clear As we close 2024, these companies are in
we go into a historically seasonally-weak means ISG’s own core business of mega-deal enterprise clients—many sense of scale or timing. a holding pattern. The final quarter of 2024
third quarter. The US presidential election contract negotiation is under pressure.) of whom are barely The wait for While the buzz is aspira- may not yield ground-breaking revenue sur-
adds to this year’s headwinds, as does geo- In response to disappointing revenue scratching the surface of AI tional, Indian IT companies ges but is shaping up to be a pivotal period
political uncertainty, sharp volatility in US growth, Indian IT giants have scaled back beyond basic automa- Generative AI are focusing on improving for positioning in 2025. If Generative AI
bond and local equity markets, and unequal hiring in 2024. Unlike previous years, when tion—are struggling to margins for now. Apart finds its footing with enterprise clients,
growth in banking, financial services and the addition of thousands of recruits pointed identify where it would
use cases to from hiring freezes, they’re Indian IT providers may be poised for a

is co-founder of Siana Capital, a

insurance (BFSI), the largest sector for most
Indian IT service providers. Bloomberg’s
to expansion, the approach now leans
towards conserving resources. For mid-
add value to their existing
IT infrastructure.
emerge even as investing in automation
within their own opera-
phase of substantial growth. If not, they’ll
still have their foundations in digital trans-
venture fund manager. consensus earnings per share (EPS) esti-
mates for top Indian IT companies were cut
sized and small players, the hiring freeze
isn’t merely a budgetary decision; it’s a bid to
Some clients are cau-
tiously optimistic, dipping
IT demand stays tions, streamlining pro-
cesses and trimming ser-
formation and operational efficiency to fall
back on. This cautious yet steady approach
by 1% after their second-quarter 2024-25 stay competitive. Leaning on digitalization their toes into the technol- weak points to vice redundancies to may not yield the explosive growth of the
earning announcements. and increased productivity of existing ogy with pilot programmes squeeze out more profit past. But it allows Indian IT to adapt to an era
Though most players showed broad- resources, these companies are looking to in content creation, cus- pressure ahead from stagnant revenues. defined by rapid technological shifts and
based growth, their bleak commentary protect (if not expand) margins while they tomer support and process Some are accelerating the uncertain demands. With 2025 around the
around a revival in discretionary demand await an uptick in demand. The unintended automation. However, adoption of internal AI corner, the stage is set for a reckoning
remained unchanged from the preceding side-effect is a cultural shift within organiza- Generative AI’s full integration into enter- tools, not as client-facing innovations, but as between incremental growth and the poten-
few quarters. Broader discretionary demand tions: new talent, once a source of fresh prise IT systems is far from a done deal. For cost-saving measures—automated coding, tial of technological transformation, where
remains muted, and each player only sees energy, is now conspicuously absent, and Indian IT, which thrives on proven scalable resource allocation, etc. agility and patience may define the winners.
growth in a few pockets. According to current employees must shoulder the solutions that translate into large deals, However, this relentless focus on opera- Meanwhile, the Nifty IT index is trading at
research and deal-negotiation firm ISG, weight of increased expectations. which have been slowing, the nascent stage tional efficiency is a double-edged sword. a significant premium over the Nifty, despite
BFSI order activity is down 11% year-to-date The phrase ‘Generative AI’ generates buzz of Generative AI adoption doesn’t yet align While it provides immediate relief for mar- its lower earnings growth potential. Choose
in managed services, meaning some of the across boardrooms, but its promise remains with the industry’s traditional growth model. gins, it risks slowing the pace of innovation. your bets wisely.
16 TUESDAY, 29 OCTOBER 2024
NEW DELHI BUSINESS OF LIFE WELLNESS LIVEMINT.COM

ISTOCKPHOTO

How to heal yourself

from everyday violence
Aggression, conflict and
ISTOCKPHOTO

even war have become

part of daily life. How
does one nurture a way
of being that is anchored Why you don’t
in compassion?
Hariprasad Varma
need to quit
[email protected]

fried food, carbs

O
nce upon a time, a fierce samurai
went to a Zen master with a ques-
tion about the nature of heaven
and hell. The Zen master was not
Fried food in moderation is okay so are
impressed by the samurai’s carbs. Mint busts 5 health myths
aggression. “You are too stupid to understand
such things. Go away,” said the Zen master.
Enraged, the samurai drew his katāna to strike Shrenik Avlani
the master. The master calmly said, “This is hell.” [email protected]
Realising that his rage and violence created his

S
own suffering, the samurai lowered his sword tories make the world go around. A few of them are widely
and bowed. “And this is heaven,” added the mas- accepted as traditional knowledge and determine how we
ter. This is a story that captures the innate poten- eat, drink, sleep, play and live our lives. But there are others
tial of human beings to be violent as well as to that are mere falsehoods that have gained credence with the pas-
grow through awareness and realise their high- sage of time. The question to ask is ‘ Do they still hold water in the
est potential. light of scientific progress that we have made?’ Mint talks to
We live in a world that is increasingly torn by experts and digs through scientific research to get to the bottom
war. Albert Einstein once said that the most of five popular myths.
important decision we will ever make in our
lives is whether we believe in a friendly or a EARLY MORNING IS THE BEST TIME TO EXERCISE
hostile universe. If our perception of the world Fitness experts outrightly dismiss this claim and doctors concur
is of it being a hostile place, our response to life that there’s no scientific basis to back this belief. “There’s no uni-
and beings around us will carry seeds of vio- versal best time to exercise,” says Shreedhar Rangaraj, fitness
lence that will ultimately impact our own expert at Cult Fit. While morning workouts can boost energy for
health and well-being. So, how does one nur- the day and promote consistency, some people perform better
ture a way of being that is anchored in a sense in the afternoon or evening when their muscles are more warmed
of friendliness and compassion towards our- up. “The key is to exercise at a time when you feel most energetic
selves and the world? and can stay consistent,” says Rangaraj.
tices around inter-personal conduct of which actions will create grief and ignorance as
IS VIOLENCE INHERENT TO US? ahimsa is the foundational practice. Practising unending consequences. SAUNA SESSIONS BURN FAT
“The nature of himsa (violence) is a part of our non-violence becomes possible when you are
nature. This is why, in Patanjali’s Yoga Sūtras, able to centre yourself such that you remain
‘Ahimsa’ as a “At the end of each day, quietly reflect on the
happenings of the day while observing your
“Incorrect”, says Dr Chaitanya Kulkarni, consultant for internal
medicine at Kokilaben Dhirubhai Ambani Hospital in Navi Mum-
the practice of yoga is articulated as that of unaffected by the experiences of the world.
ahimsa (non-violence),” says Saraswathi Vasu- For this, you need to cleanse the residues daily practice breath and body. If you notice any disturbance
in your breath or body as you revisit an experi-
bai. “Saunas are not used to melt away fat. They aid in sweating,
which causes only a temporary reduction in water weight, which
devan, co-founder of YogaVahini Foundation in accumulated from your life experiences ence, know that you are holding some residue is soon regained upon rehydration,” he adds. That said, saunas
Chennai and a student of yoga acharya T.K.V. through a set of practices. “The whole purpose Leading a non-violent life is about from that experience. The pratyāhāra practice do have their benefits. They help relieve muscle aches and con-
Desikachar. of Ashtānga yoga is to purify oneself of all the being mindful of the thoughts you then will be to consciously let go of that energy tribute to the production of endorphins, which are natural pain
All living beings have a natural urge for self- (literal and metaphorical) toxicities that one think, even about yourself. Some tips from your system,” Vasudevan explains. blockers. Three sauna sessions a week can help relieve stress and
preservation. When we perceive a threat, this has gathered in the past, continues to gather to recover from the rage and violence “Only if we slow down, can we practise benefit the overall functioning of the heart, advises Kulkarni.
deep-seated urge springs forth. Trauma healing in the present, and will continue to gather in you see daily: ahimsa,”says Rajni Bakshi, author and founder
methods such as the future,” says of the YouTube channel, Ahimsa Conversa- COLD WATER SHOWERS IN WINTER CAUSE COLDS
somatic experiencing Vasudevan. u Develop an appropriate practice tions. “Having unstructured breaks and inter- “It is a common misconception that people catch a cold by taking
are based on fight, If we see the world as a hostile This detoxification for your body and breathwork. vals of inactivity in your everyday routine will a cold shower or drinking cold water in winter,” says Kulkarni,
flight or freeze ener- place, our response to life, is essential, according help create the necessary conditions for this,” adding, “Colds in the winter are caused by viruses .” While sud-
gies that arise during u Create daily time for self-reflec-
such moments. people and creatures around us to yoga practices,
because holding on to tion.
Bakshi adds.
For Thakkar, open conversations could be
den exposure to cold can cause a little discomfort and may pose
risks for individuals with heart conditions, the claim that it leads
The Yoga Sūtrās will carry seeds of violence. negative or toxic ener- helpful too to curb violent thoughts. Dialog, a to illness is exaggerated, adds Rangaraj.
mention three ways gies can lead to knot- u Find a good teacher to begin or game that she has designed, enables an indi-
in which one can cre- ting up of the energy continue learning about yourself. vidual to self-reflect while having heartfelt TO LOSE WEIGHT, QUIT FRIED FOOD
ate violence. One can inflict violence directly by pathways, which can block the flow of one’s conversations with other players through a True but not entirely, says Rangaraj. “While cutting down on
oneself, indirectly by instigating others to act, or prāna (life force) and cause illnesses. u Be part of a community of wellness series of prompts. fried food can help reduce calorie intake, weight loss is about
by being an approving bystander watching vio- practitioners who are willing to offer “The practice of sharing in a circle during the overall calorie balance and consistent physical activity. Focusing
lence committed by another (something that we PRACTISING NON-VIOLENCE mutual support. game enables us to discover who we really are as on a balanced diet with controlled portions, combined with
are all familiar with in our social-media fuelled In my coaching and therapy sessions with cli- people and be vulnerable. It gives us a real strength training and cardio, is the best approach to long-term
lives). They also talk about six human traits that ents, I have often observed that the onset of vari- chance to discover what peace and compassion weight management, he explains.
create discolorations of the mind and instigate ous health issues begins with violation of some designer based out of Costa Rica. may look like for ourselves,” Thakkar explains.
violence: lust, anger, delusion, greed, intoxica- of the basic elements of healthy living. For Vasudevan, a daily practice of yoga pos- Perhaps singer John Lennon captured the AVOID CARBS AND FATS AT ALL COSTS
tion and envy. The intensity of compulsion one This includes repression of emotions, irregu- tures (asana), breathwork (pranayama) and spirit of ahimsa when he sang in Imagine: Carbs and fats have gained a bad rap particularly with the ascent
feels to act out in violence may be mild, medium lar diet and sleep and lack or excessive exercise meditation (pratyāhāra) centres her. “Practis- You may say I’m a dreamer, of high-protein diets. Carbs fuel the brain and muscles. Healthy
or intensely strong. routines. ing them allows me to see the patterns of himsa But I’m not the only one. fats aid in hormone construction, cellular activities, and nutrient
“We can truly understand and practise non- “I remember the first time I started working I am holding on to in my life, what are its roots, I hope someday you’ll join us, uptake, says Kulkarni before listing the negatives of skipping
violence only by understanding our own intrin- out. While focusing on my body, I also started intensity, and discover who would I be if I did And the world will live as one. them entirely. “A drastic elimination of carbs and fats can easily
sic potential to inflict violence on ourselves and prioritising my food and other schedules in life. not have these patterns in my life,” she says. result in deficiency symptoms and a low level of energy,” he
others,” says Vasudevan, as she reflects on the The more I understood myself, the better was The Yoga Sūtras state that the way to end the Hariprasad Varma is an executive coach & yoga warns. What you can do is choose the right sort of carbohydrates
practice of ahimsa. my capacity to understand others,” says Dhvani cycle of violence arising out of one’s innate therapist based out of Hyderabad. He posts on X (whole grains and vegetables) and unsaturated fats (olive oil, nuts,
The Yamas in Ashtānga yoga are a set of prac- Thakkar, a peacebuilder, educator, and traits is to imagine in one’s mind how these @zensei.hari. and avocados) in the right proportion.

For a healthy heart, don’t skip your annual health check ISTOCKPHOTO

Healthy adults in their THE CAUSES SYMPTOMS TO WATCH FOR

Sudden cardiac arrest is the sudden loss of Heart attacks don’t always come with the
30s and 40s are activity in the heart due to an irregular Watch your classic chest pain as movies will have you
succumbing to the rhythm. Chances of surviving the attack believe. The symptoms can be more sub-

silent killer. Regular heart

are good if medical care is given immedi-
ately. According to the Mayo Clinic, US,
beating heart tle in younger adults and be easily mis-
taken for something else. Shortness of
sudden cardiac death (SCD) is the ‘swift breath, fatigue, chest pain, palpitations
check-ups are essential end of heart activity when blood flow and
While anyone can suffer a sud-
and swelling in the feet are common
den cardiac arrest, some indi-
breathing stop immediately,’ which can viduals are at a higher risk. They symptoms that can indicate underlying
Shweta Dravid cause the person to die within seconds. cardiac illness, says Siodia. “Sometimes,
include:
[email protected] Dr. Kayan Siodia, consultant interven- the symptoms are akin to those of acute
tional cardiologist, S.L. Raheja Hospital, u Individuals with a family his- gastritis, like epigastric burning, nausea,
tory of heart conditions.

A
physically fit, mentally agile, Mahim, lists five plausible causes for SCD. and vomiting, but could actually indicate
42-year-old army officer goes out Genetic conditions: One of the most u Athletes participating in high- an acute heart attack resulting from a
for a run one morning and has a common causes, this is when a person intensity sports. blockage in the right coronary artery. In
sudden cardiac arrest. A 32-year-old might have a thickened heart muscle, many cases, there are no symptoms sug-
techie running on the treadmill suddenly called hypertrophic cardiomyopathy. The u People with genetic medical gesting heart issues, making cardiac
has a cardiac arrest. Both men were in thickening of the muscle makes it chal- conditions like arrhythmia, arrest the first indication of underlying
their prime, leading healthy lifestyles with lenging for the heart to pump blood. hypertrophic/dilated cardiomy- heart disease,” he warns. This highlights
no pre-morbidities, and yet, without any Another genetic condition is Long QT opathy and coronary artery the necessity of thorough cardiac evalua-
symptoms, suffered a heart attack and syndrome where the heartbeats are fast disease. tions, particularly if there is a family his-
sadly did not survive it. and chaotic. Besides these, Brugada syn- tory of sudden cardiac death.
Such cases are becoming common drome, a heart rhythm condition, and u Individuals suffering from high Siodia recommends doing periodic
among people between 30-45 years. The arrhythmogenic right ventricular cardio- the heart accompanied by sudden plaque Substance abuse: Stimulants, includ- BP, cholesterol, obesity, etc. tests to know your heart health. These
World Health Report 2023 states that car- myopathy, which is the disorder of the rupture.This rupture of a plaque inside ing recreational drugs like cocaine are tests include electrocardiogram, echocar-
diac arrests are the leading cause of death muscular wall of the heart, are some of the the coronary artery can lead to the forma- known to cause cardiac arrest. diography and stress tests. Doing only one
all over the world, especially in India. genetic conditions known to cause sud- tion of blood clots that can trigger acute Trauma: Sudden impact, especially in off blood flow and causing cardiac arrest. of these tests may not be sufficient to give
According to the World Heart Federation, den cardiac arrests. heart attacks, and eventually, a cardiac contact sports, can sometimes cause the “Some lifestyle choices, such as too much complete information. It’s advisable to get
the death toll due to cardiovascular dis- Congenital heart defects: Structural arrest. This is becoming an increasingly heart to stop. This irregularity is known as stress, physical inactivity, and a terrible a combination of tests done, explains Sio-
eases increased by 53% in a 20-year span abnormalities of the heart present from common cause of cardiac arrest among commotio cordis. diet, combined with genetic predisposi- dia. Besides these, regular checkups of BP
between 1990 and 2019. It is estimated birth which are not treated can lead to young individuals in the country today Pulmonary embolism: Sudden mas- tions increase the risk factors of a heart and cholesterol are crucial.
that in India, one in five patients suffering sudden cardiac death. owing to sedentary lifestyles, poor eating sive pulmonary embolism is when a blood attack,” says Dr. Zakia Khan, senior con-
sudden cardiac arrest (SCD) is less than 40 Coronary artery disease: This is habits, high cholesterol, smoking, and ele- clot travels from the veins in the legs to the sultant, interventional cardiology at Fortis For more stories on health and wellness,
years of age. associated with blockages in the arteries of vated stress levels. heart and the pulmonary artery, cutting Hospital, Kalyan. visit livemint.com/mint-lounge.
LIVEMINT.COM
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NEW DELHI 17

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