OTAKUBAY

Presenting its annual budget to parliament on Wednesday, the central government will seek to lower its fiscal deficit while offering incentives for investment and stepping up state spending to support an economy that is caught in the global slowdown. Although the government faces elections in key states this year and a national vote in 2024, the budget is unlikely to offer major relief to households due to fiscal constraints, officials have said, while noting that the budget would focus on long-term growth. Since taking charge in 2014, Prime Minister Narendra Modi has ramped up capital spending including on roads and energy, while wooing investors through lower tax rates and labour reforms, and offering subsidies to poor households to clinch their political support. Finance Minister Nirmala Sitharaman is widely expected to continue that policy, and announce 10% to 12% increase in budget allocations for health, education and rural projects, helped by a pick up in tax collections. &q

Presenting its annual budget to parliament on Wednesday, the central government will seek to lower its fiscal deficit while offering incentives for investment and stepping up state spending to support an economy that is caught in the global slowdown. Although the government faces elections in key states this year and a national vote in 2024, the budget is unlikely to offer major relief to households due to fiscal constraints, officials have said, while noting that the budget would focus on long-term growth. Since taking charge in 2014, Prime Minister Narendra Modi has ramped up capital spending including on roads and energy, while wooing investors through lower tax rates and labour reforms, and offering subsidies to poor households to clinch their political support. Finance Minister Nirmala Sitharaman is widely expected to continue that policy, and announce 10% to 12% increase in budget allocations for health, education and rural projects, helped by a pick up in tax collections. &q

Predictably, India's middle class is looking for some form of income-tax relief. Though the tax slab wasn't changed and no new deduction was announced last year, inflation has eaten into people's earnings. They haven't seen a change in tax rate since 2017-18 and in tax slab since July 2014. Ms Sitharaman may be able to afford a balanced, not a populist, Budget since the general election is still a year and one more Union Budget away. Still, with Prime Minister Narendra Modi's BJP hoping to win a third consecutive term, massive welfare programmes for farmers and the rural population can't be ruled out. The Finance Ministry had been considering increasing the limit under 80C, which includes investment in life insurance, fixed deposit, bonds, housing and public provident fund. If this happens, it will encourage savings and help raise rainy day funds of people whose savings were eroded at the height of the COVID-19 pandemic. The markets in India - Asia's thi

Predictably, India's middle class is looking for some form of income-tax relief. Though the tax slab wasn't changed and no new deduction was announced last year, inflation has eaten into people's earnings. They haven't seen a change in tax rate since 2017-18 and in tax slab since July 2014. Ms Sitharaman may be able to afford a balanced, not a populist, Budget since the general election is still a year and one more Union Budget away. Still, with Prime Minister Narendra Modi's BJP hoping to win a third consecutive term, massive welfare programmes for farmers and the rural population can't be ruled out. The Finance Ministry had been considering increasing the limit under 80C, which includes investment in life insurance, fixed deposit, bonds, housing and public provident fund. If this happens, it will encourage savings and help raise rainy day funds of people whose savings were eroded at the height of the COVID-19 pandemic. The markets in India - Asia's thi

Aditya Birla Fashion and Retail Ltd on Monday announced appointments of Ananyashree Birla and Aryaman Birla, children of its Chairman Kumar Mangalam Birla, as additional non-executive directors on its board. The board of directors at its meeting held on Monday, based on the recommendation of the nomination and remuneration committee, has approved the appointments of Ananyashree and Aryaman as additional non-executive directors on the board of the company with effect from January 30, 2023, Aditya Birla Fashion and Retail Ltd (ABRFL) said in a regulatory filing. They will be liable to retire by rotation in accordance with the Companies Act, 2013 and their appointment is subject to the approval of the shareholders, it added. Ananya Birla is a successful business woman and platinum selling artist, the company said, adding her first company Svatantra Microfin Pvt Ltd is amongst India's fastest growing microfinance institutions. It has crossed an asset under management of USD 1 billi

Aditya Birla Fashion and Retail Ltd on Monday announced appointments of Ananyashree Birla and Aryaman Birla, children of its Chairman Kumar Mangalam Birla, as additional non-executive directors on its board. The board of directors at its meeting held on Monday, based on the recommendation of the nomination and remuneration committee, has approved the appointments of Ananyashree and Aryaman as additional non-executive directors on the board of the company with effect from January 30, 2023, Aditya Birla Fashion and Retail Ltd (ABRFL) said in a regulatory filing. They will be liable to retire by rotation in accordance with the Companies Act, 2013 and their appointment is subject to the approval of the shareholders, it added. Ananya Birla is a successful business woman and platinum selling artist, the company said, adding her first company Svatantra Microfin Pvt Ltd is amongst India's fastest growing microfinance institutions. It has crossed an asset under management of USD 1 billi

More than half of households in a survey conducted online across 309 districts expect a decline in their income by up to 25 per cent and dip in savings, and are looking for relief in the coming budget, online platform LocalCircles said on Sunday. The survey, conducted between November 25 and January 25, found that with job losses and hiring sentiment turning negative, 52 per cent respondents feel that the economic uncertainty will persist for the next 6-12 months. LocalCircles claimed that 37,000 responses were received from household consumers across 309 districts of India, comprising 64 per cent men, 36 per cent women from tier 1, tier 2 and smaller towns as well. "Our survey indicates that majority households in the country are facing the squeeze and in community discussions thousands of inputs were received by LocalCircles about lowering income tax rates or increasing deductions and exemptions," LocalCircles founder Sachin Taparia said. The number of responses on each

More than half of households in a survey conducted online across 309 districts expect a decline in their income by up to 25 per cent and dip in savings, and are looking for relief in the coming budget, online platform LocalCircles said on Sunday. The survey, conducted between November 25 and January 25, found that with job losses and hiring sentiment turning negative, 52 per cent respondents feel that the economic uncertainty will persist for the next 6-12 months. LocalCircles claimed that 37,000 responses were received from household consumers across 309 districts of India, comprising 64 per cent men, 36 per cent women from tier 1, tier 2 and smaller towns as well. "Our survey indicates that majority households in the country are facing the squeeze and in community discussions thousands of inputs were received by LocalCircles about lowering income tax rates or increasing deductions and exemptions," LocalCircles founder Sachin Taparia said. The number of responses on each

Billionaire Gautam Adani's group on Saturday ruled out any changes in price or the dates of the Rs 20,000 crore follow-on share sale at the conglomerate's flagship firm despite its stocks being hammered below the offer price after a scathing report by a US short seller. "Adani Enterprises Limited's further public offer (FPO) is going as per schedule and the announced price band. There is no change in either the schedule of the issue price," a group spokesperson said. The FPO got subscribed just one per cent on the opening day on Friday. Against an offer of 4.55 crore shares of Adani Enterprises Ltd, only 4.7 lakh shares were subscribed, according to information available from the BSE. Adani Enterprises fell almost 20 per cent to below the offer price of its secondary sale as all the seven listed companies of the conglomerate took a beating in the aftermath of Hindenburg Research alleging that the group was "engaged in a brazen stock manipulation and accoun

Billionaire Gautam Adani's group on Saturday ruled out any changes in price or the dates of the Rs 20,000 crore follow-on share sale at the conglomerate's flagship firm despite its stocks being hammered below the offer price after a scathing report by a US short seller. "Adani Enterprises Limited's further public offer (FPO) is going as per schedule and the announced price band. There is no change in either the schedule of the issue price," a group spokesperson said. The FPO got subscribed just one per cent on the opening day on Friday. Against an offer of 4.55 crore shares of Adani Enterprises Ltd, only 4.7 lakh shares were subscribed, according to information available from the BSE. Adani Enterprises fell almost 20 per cent to below the offer price of its secondary sale as all the seven listed companies of the conglomerate took a beating in the aftermath of Hindenburg Research alleging that the group was "engaged in a brazen stock manipulation and accoun

The Union Budget is not a single document. It is a list of 13 documents and three of them - Annual Financial Statement (AFS), Demands for Grants (DG) and the Finance Bill - are mandated by Article 112,113 and 110(a) of the Constitution. Some documents are explanatory notes, which support the mandated documents with narrative for quick or contextual references.   There are two other documents which are a 21st Century addition to the Union Budget. These documents - Macro-Economic Framework Statement and Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement - are statements under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. These documents broadly look at the economic health of the country.   What is the FRBM Act?  This Act was enacted in 2003 to help the Centre adhere to the path of fiscal consolidation, which refer to concrete policies for reducing government deficits and debt accumulation. It came into force on July 5, 2004. The Act mandates the Centre

Central Bank Digital Currency or CBDCs have captured the imagination of central banks around the world. Recently, the Reserve Bank of India (RBI) launched the pilot 'digital rupee' project and reports suggest that it may further expand the project "based on the learnings from the current pilot." Governor Shaktikanta Das' recent statement on CBDC adoption indicates that 'digital rupee' may get a boost. "Central banks issued digital currencies are the future of money and its adoption can help save on logistic and printing costs," he said at a recent event.  With the Union Budget around the corner, industry watchers expect some announcement regarding the digital rupee.  "I think CBDC will be a hot topic of discussion in this year's Budget," says Kamlesh Nagware, CTO at Snapper Future Tech, a blockchain firm. He believes that Finance Minister Nirmala Sitharaman may announce measures to enable offline, cross-border payment and digita

Central Bank Digital Currency or CBDCs have captured the imagination of central banks around the world. Recently, the Reserve Bank of India (RBI) launched the pilot 'digital rupee' project and reports suggest that it may further expand the project "based on the learnings from the current pilot." Governor Shaktikanta Das' recent statement on CBDC adoption indicates that 'digital rupee' may get a boost. "Central banks issued digital currencies are the future of money and its adoption can help save on logistic and printing costs," he said at a recent event.  With the Union Budget around the corner, industry watchers expect some announcement regarding the digital rupee.  "I think CBDC will be a hot topic of discussion in this year's Budget," says Kamlesh Nagware, CTO at Snapper Future Tech, a blockchain firm. He believes that Finance Minister Nirmala Sitharaman may announce measures to enable offline, cross-border payment and digita

India's GDP is projected to moderate to 5.8 per cent in 2023 as higher interest rates and global economic slowdown weigh on investment and exports, the United Nations said on Wednesday, noting that the country's economic growth is expected to remain "strong" even as prospects for other South Asian nations "are more challenging". The World Economic Situation and Prospects 2023 report said the world output growth is projected to decelerate from an estimated three per cent in 2022 to 1.9 per cent in 2023, marking one of the lowest growth rates in recent decades as a "series of severe and mutually reinforcing shocks - the COVID-19 pandemic, the war in Ukraine and resulting food and energy crises, surging inflation, debt tightening, as well as the climate emergency - battered the world economy in 2022." The report, produced by the United Nations Department of Economic and Social Affairs (UN DESA), said that in South Asia, the economic outlook has sign

India's GDP is projected to moderate to 5.8 per cent in 2023 as higher interest rates and global economic slowdown weigh on investment and exports, the United Nations said on Wednesday, noting that the country's economic growth is expected to remain "strong" even as prospects for other South Asian nations "are more challenging". The World Economic Situation and Prospects 2023 report said the world output growth is projected to decelerate from an estimated three per cent in 2022 to 1.9 per cent in 2023, marking one of the lowest growth rates in recent decades as a "series of severe and mutually reinforcing shocks - the COVID-19 pandemic, the war in Ukraine and resulting food and energy crises, surging inflation, debt tightening, as well as the climate emergency - battered the world economy in 2022." The report, produced by the United Nations Department of Economic and Social Affairs (UN DESA), said that in South Asia, the economic outlook has sign

Bharti Airtel, India's No. 2 telecom carrier by subscribers, has introduced a new entry level plan at Rs 155 in seven regions, the company's spokesperson said on Tuesday, effectively raising basic tariffs by nearly 57%. The new plan was introduced in regions including the states of Karnataka, Bihar and Rajasthan, after discontinuing the existing tariffs of 99 rupees, the spokesperson added. The company had late last year introduced the new plan on a trial basis in Odisha and Haryana. Telecom firms were widely expected to hike tariffs to shore up revenues after having spent billions of dollars in the 5G auction last year. Airtel's average revenue per user (ARPU), a key performance indicator for telecom firms, was 190 rupees in the September-quarter, a 3.8% sequential rise and a roughly 24% year-on-year increase. The ARPU needed to be at 200 rupees and ultimately at 300 rupees for a financially healthy business model, Airtel said in November 2021, when it last raised tar

Bharti Airtel, India's No. 2 telecom carrier by subscribers, has introduced a new entry level plan at Rs 155 in seven regions, the company's spokesperson said on Tuesday, effectively raising basic tariffs by nearly 57%. The new plan was introduced in regions including the states of Karnataka, Bihar and Rajasthan, after discontinuing the existing tariffs of 99 rupees, the spokesperson added. The company had late last year introduced the new plan on a trial basis in Odisha and Haryana. Telecom firms were widely expected to hike tariffs to shore up revenues after having spent billions of dollars in the 5G auction last year. Airtel's average revenue per user (ARPU), a key performance indicator for telecom firms, was 190 rupees in the September-quarter, a 3.8% sequential rise and a roughly 24% year-on-year increase. The ARPU needed to be at 200 rupees and ultimately at 300 rupees for a financially healthy business model, Airtel said in November 2021, when it last raised tar

Several policymakers, including Commerce and Industry Minister Piyush Goyal besides business leaders and senior executives representing businesses of the G20 countries are participating in the three-day B20 India inception meeting, which commenced here on Sunday. As India holds the presidency of G20 in 2023, it will host the 18th G20 Summit in September. The Business 20 (B20) is amongst the most prominent official engagement groups in G20, with companies, business associations and multilateral organizations as participants. The G20 or Group of 20 is an intergovernmental forum of the world's major developed and developing economies. It comprises Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the US, and the European Union (EU). The Confederation of Indian Industry (CII) has been formally designated as the B20 secretariat by Government of India to lead

Several policymakers, including Commerce and Industry Minister Piyush Goyal besides business leaders and senior executives representing businesses of the G20 countries are participating in the three-day B20 India inception meeting, which commenced here on Sunday. As India holds the presidency of G20 in 2023, it will host the 18th G20 Summit in September. The Business 20 (B20) is amongst the most prominent official engagement groups in G20, with companies, business associations and multilateral organizations as participants. The G20 or Group of 20 is an intergovernmental forum of the world's major developed and developing economies. It comprises Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the US, and the European Union (EU). The Confederation of Indian Industry (CII) has been formally designated as the B20 secretariat by Government of India to lead

Billionaire Gautam Adani's group plans to spin off businesses like hydrogen, airports and data centre between 2025 and 2028 after they achieve a certain investment profile, it's Chief Financial Officer Jugeshinder Singh said. Adani Enterprises Ltd, which is looking to raise Rs 20,000 crore in a follow-on share sale, is the business incubator for the group. Over the years, businesses such as ports, power and city gas were first incubated in AEL before being spun off or demerged into separate listed companies. AEL currently houses new businesses such as hydrogen, where the group plans to invest USD 50 billion over the next 10 years across the value chain, flourishing airport operations, mining, data centre and roads and logistics. "The businesses have to achieve a basic investment profile and maturity before being considered for a demerger. Between 2025 and 2028 we think these businesses can achieve the desired levels for a demerger," Mr Singh told PTI. The group is

Billionaire Gautam Adani's group plans to spin off businesses like hydrogen, airports and data centre between 2025 and 2028 after they achieve a certain investment profile, it's Chief Financial Officer Jugeshinder Singh said. Adani Enterprises Ltd, which is looking to raise Rs 20,000 crore in a follow-on share sale, is the business incubator for the group. Over the years, businesses such as ports, power and city gas were first incubated in AEL before being spun off or demerged into separate listed companies. AEL currently houses new businesses such as hydrogen, where the group plans to invest USD 50 billion over the next 10 years across the value chain, flourishing airport operations, mining, data centre and roads and logistics. "The businesses have to achieve a basic investment profile and maturity before being considered for a demerger. Between 2025 and 2028 we think these businesses can achieve the desired levels for a demerger," Mr Singh told PTI. The group is

Yes Bank reported a surprise 80% plunge in quarterly profit on Saturday as provisions for bad loans increased. Net profit fell to 515.20 million rupees ($6.36 million) for the three months through December from 2.66 billion rupees in the same period a year earlier. Analysts had expected profit to rise to 3.36 billion rupees, according to Refinitiv IBES data. But net interest margin, a key indicator of a bank's profitability, rose 10 basis points to 2.5%. The bank's asset quality improved as gross non-performing assets declined to 2.02% of total loans from 12.89% in the September quarter. Net non-performing assets declined to 1.03% from 3.60%. Net interest income, the difference between the interest income from lending and that paid to depositors rose 11.7% to 19.71 billion rupees. Provisions increased to 8.44 billion rupees from 5.82 billion rupees the previous quarter. Yes Bank in December completed the transfer of bad loans worth 480 billion rupees to private equity fir

Yes Bank reported a surprise 80% plunge in quarterly profit on Saturday as provisions for bad loans increased. Net profit fell to 515.20 million rupees ($6.36 million) for the three months through December from 2.66 billion rupees in the same period a year earlier. Analysts had expected profit to rise to 3.36 billion rupees, according to Refinitiv IBES data. But net interest margin, a key indicator of a bank's profitability, rose 10 basis points to 2.5%. The bank's asset quality improved as gross non-performing assets declined to 2.02% of total loans from 12.89% in the September quarter. Net non-performing assets declined to 1.03% from 3.60%. Net interest income, the difference between the interest income from lending and that paid to depositors rose 11.7% to 19.71 billion rupees. Provisions increased to 8.44 billion rupees from 5.82 billion rupees the previous quarter. Yes Bank in December completed the transfer of bad loans worth 480 billion rupees to private equity fir

Last year we wrote to you about what to expect from India's top renewable energy stocks in 2022 . We mentioned the leading companies in the space and their plans in the coming years. The renewable energy (RE) theme has picked up with India quickly becoming one of the world leaders in embracing the transition to renewable energy. The country is combating climate change head-on. What started as a renewable energy target of 225 GW by 2022, was upgraded to 450 GW by 2030, and eventually to 50% of the country's energy being derived through renewable means by 2030. This was complemented by earnest policy reforms. In a decisive move, the Indian government implemented customs tariff of 40% on solar energy modules and 25% on solar energy cells, providing the domestic sector empowering the sector to achieve scale, economy, and export competitiveness. These ambitious targets are backed by actual announcements made by some of the top business houses in the country. This includes commi

Last year we wrote to you about what to expect from India's top renewable energy stocks in 2022 . We mentioned the leading companies in the space and their plans in the coming years. The renewable energy (RE) theme has picked up with India quickly becoming one of the world leaders in embracing the transition to renewable energy. The country is combating climate change head-on. What started as a renewable energy target of 225 GW by 2022, was upgraded to 450 GW by 2030, and eventually to 50% of the country's energy being derived through renewable means by 2030. This was complemented by earnest policy reforms. In a decisive move, the Indian government implemented customs tariff of 40% on solar energy modules and 25% on solar energy cells, providing the domestic sector empowering the sector to achieve scale, economy, and export competitiveness. These ambitious targets are backed by actual announcements made by some of the top business houses in the country. This includes commi

Gautam Adani's flagship is offering investors discounts of 10 per cent-15 per cent in India's biggest follow-on share sale as the billionaire tries to woo a wider set of backers. Adani Enterprises Ltd. is seeking to raise $2.5 billion by selling shares in a price band of Rs 3,112 to Rs 3,276 a piece, according to an exchange filing Wednesday. Bloomberg News reported earlier that large investors would get a concession of 10 per cent on the current market price while retail investors would pay even less to buy into a company that has almost doubled in market value over the past year. Roughly half the money will go toward expanding Adani's airport and renewable energy projects, while some 42 billion rupees - a little less than a quarter of the amount raised - will be used to pare debt, the company said in its prospectus filed earlier on Wednesday. Anchor investors can bid on January 25 and the rest from January 27 to January 31. In a rare move for a follow-on sale, Asia'

Gautam Adani's flagship is offering investors discounts of 10 per cent-15 per cent in India's biggest follow-on share sale as the billionaire tries to woo a wider set of backers. Adani Enterprises Ltd. is seeking to raise $2.5 billion by selling shares in a price band of Rs 3,112 to Rs 3,276 a piece, according to an exchange filing Wednesday. Bloomberg News reported earlier that large investors would get a concession of 10 per cent on the current market price while retail investors would pay even less to buy into a company that has almost doubled in market value over the past year. Roughly half the money will go toward expanding Adani's airport and renewable energy projects, while some 42 billion rupees - a little less than a quarter of the amount raised - will be used to pare debt, the company said in its prospectus filed earlier on Wednesday. Anchor investors can bid on January 25 and the rest from January 27 to January 31. In a rare move for a follow-on sale, Asia'