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Expresso Business and Financial News Highlights of the Week of June 30, 2024
Expresso Business & Finance News Highlights of the Week of June 30, 2024 Transcript
Let’s start with the key update: Foreign portfolio flows are set to return to India in the second half of the year, according to a note from prime brokerage Jefferies. The note indicates that foreign institutional investors are now seeking new investment opportunities in sectors such as real estate, capital goods and public sector enterprises. Jefferies highlighted growing interest among investors in India, fueled by the country’s projected 7% GDP growth and a $5 trillion market capitalization target. The brokerage notes that emerging market funds are currently “neutral” to slightly “underweight” in India due to high valuations, recent election-related volatility and an increase in the country’s weighting in global indices. So far in 2024, foreign portfolio investors have sold shares worth Rs 1.27 lakh crore.
Moving forward, President Draupadi Murmu said that the Union Budget will be a futuristic document and all reforms will be accelerated while addressing a joint session of Parliament. Congratulating the new MPs in her first speech to the joint session of Parliament after the constitution of the 18th Lok Sabha, the Speaker said that the people’s representatives would serve as a means to fulfill the aspirations of the people of India. GST has today become a means to formalize India’s economy and is helping to make business and commerce easier than before, the President said. The President also said that the BJP-led NDA government has provided Rs 3.20 lakh crores to the country’s farmers under PM Kisan Samman Nidhi’s PM-KISAN scheme.
Further, exporters have called for a government-led initiative to develop a globally reputed shipping line based in India. This would reduce shipping costs and help increase the competitiveness of Indian exports in global markets, they said. According to the Federation of Indian Export Organisations (FIEO), India remitted $109 billion as shipping service charges in 2020 and with increased exports, this could reach $200 billion as exports are expected to touch $1 trillion by 2030. The meeting with the “trade and services” sector also sought participation from export promotion councils for marine products, leather, gems and jewellery. The National Association of Software and Services Companies (Nasscom), the Federation of Hotel and Restaurant Associations of India (FHRAI) and regional chambers of commerce and industry also participated in the meeting.
Additionally, IndiGo, India’s leading airline, has announced the introduction of additional daily direct flights between Mumbai and Jeddah, starting August 15, 2024. This expansion aims to meet the growing demand for travel between India and the East Average. The new daily flights underscore IndiGo’s commitment to expanding its global presence and connecting key destinations within its extensive network, according to an official statement. The Mumbai-Jeddah route connects two dynamic cultural and economic hubs. Jeddah, known as the gateway to Mecca and Medina, attracts travelers seeking spiritual fulfillment and cultural immersion. Mumbai, celebrated for its iconic landmarks, offers a glimpse of India’s rich heritage. This enhanced connectivity ensures greater convenience and flexibility for passengers.
Moving on, just hours after its debut in China, Motorola has revealed the launch date of the Moto Razr 50 Ultra in India. The much-awaited foldable phone is set to launch in India on July 4, almost a week before Samsung reveals its Galaxy Z Flip 6 and Galaxy Z Fold 6 at the Paris Unpacked event. The Moto Razr 50 Ultra’s product listing page on Amazon India confirms the launch date and reveals the color options available for the Indian market. The Moto Razr 50 Ultra will be offered in three colors: Peach Fuzz, Spring Green and Midnight Blue. However, it is still unclear whether Motorola will also launch the more affordable Moto Razr 50 in India.
Furthermore, the National Deep Tech Start-up Policy (NDTSP), which aims to give a boost to early-stage technologies and their commercialization, will go to the cabinet soon for approval, a senior official said, adding that the final draft of politics is ready. The draft was approved after the meeting with the Empowered Technology Group (ETG), which is led by the Chief Scientific Advisor to the government of India earlier this month. The ETG was created in 2020 to establish, coordinate and supervise the acquisition and induction of technologies, research and development in technologies that require large outlays, and advise on government technology development programs. The policy may be announced in the next Union Budget.
Lastly, One97 Communications, the parent company of Paytm, recorded a 19% annual growth in flight bookings between January and March, significantly outpacing the industry growth rate of around 3%. The company’s ticketing business operates on the Paytm Travel platform. Paytm is the second largest online travel aggregator (OTAs) for train bookings between January and March, enhancing customer experience with new features such as guaranteed seat assistance and easy tatkal, the company said in a stock exchange filing on Monday. Growth in Paytm’s travel segment has been driven by partnerships and travel solutions. The company has collaborated with several global travel aggregators, including Skyscanner, Google Flights and Wego. Paytm’s travel ticket business falls under the marketing services vertical, which grew 1% YoY to Rs 395 crore in the March quarter.