TotalEnergies to acquire 25 percent stake in Adani New Industries
French energy major TotalEnergies will buy 25 percent stake in Adani New Industries for an undisclosed sum to jointly build the world’s biggest green hydrogen ecosystem. The two companies will invest $50 billion in India over the next 10 years.
Why it’s important: Traditional energy conglomerates like Reliance Industries, the Adani group, TotalEnergies and Shell are investing billions of dollars in green hydrogen projects to cut reliance on fossil fuels and transition to zero net carbon emissions.
IPL media rights earn record Rs 483.9 billion for cricket control body
The Board of Control for Cricket in India ended media rights auctions for the Indian Premier League, raising a record Rs 483.9 billion ($6.2 billion) for the five years to 2023-27. The amount is almost three times the Rs 163.48 billion the cricketing body earned in the last rights cycle five years ago.
Why it’s important: The high-stakes auction revealed that online streaming is now seen as the higher earner since digital rights were costlier than television rights. It points to Indian audience increasingly shifting to mobile devices to watch cricket matches.
Central government to hire 1 million people in 18 months to fill vacancies
Prime Minister Narendra Modi has asked all central ministries and departments to take measures immediately to provide employment to 1 million people in the next 18 months. The direction came on a day the government approved a new recruitment scheme for youth, called Agnipath, to serve in the armed forces for four years.
Why it’s important: India has been facing the problem of jobless growth for many years. Nearly 5 million people join the workforce every year but there aren’t enough jobs. The government is now stepping in to partially fill the vacuum ahead of the 2024 national elections in 2024, when Modi will seek a fresh mandate.
India’s wholesale inflation jumps to 15.88 percent, highest in 31 years
Wholesale inflation in May soared to 15.88 percent from 15.08 percent in April, the highest since August 1991. The data came a day after retail inflation in May moderated slightly to 7.04 percent from a record 7.79 percent in April.
Why it’s important: The divergence between wholesale and retail inflation show producers are reluctant to fully pass on the increased cost to consumers, fearing a weakening in demand. The high rate of price rise may call for quicker interest rate hikes.
India’s newbie crypto investors see their money evaporate in latest rout
India’s cryptocurrency market expanded from $923 million in April 2020 to $6.6 billion in May 2021, according to a report by blockchain data platform Chainalysis, mostly through investments by people who had little to no exposure to equities or other volatile assets. Over 15 million Indians who have invested in crypto assets have burned their fingers badly in the latest precipitous fall across the board in cryptocurrencies.
Why it’s important: The surge in investments in crypto in India was led by celebrity endorsements to people who had little awareness of the risks of putting money into volatile assets that see a boom-and-bust cycle. They will perhaps be more careful in the future.
Tractor makers see sales jump as farmers benefit from higher wheat prices
The sale of tractors has soared 44 percent year-on-year in the first two months of the April-June quarter, the highest in four years for the comparable period, according to data from the Tractor and Mechanization Association. Farmers may have earned an additional Rs 59.94 billion this year from open market sales and have invested in tractors big time.
Why it’s important: Higher food prices and forecast of a favorable monsoon could further raise farm incomes, which could result in a windfall for tractor manufacturers, who have seen subdued growth in the recent past due to the disruption caused by the coronavirus pandemic.
Central banks of Russia, India to give finishing touches to bilateral payments system
Officials of the Reserve Bank of India and the Bank of Russia will meet this week to give the finishing touches to a bilateral payment system. The two sides will meet to discuss payment solutions such as Loro or Nostro accounts. The first is a third-party account, where a bank holds an account in a country for another bank. The second involves a bank holding an account in another country in another bank.
Why it’s important: Indian firms have substantial business interests in Russia. The bilateral payment system seeks to ensure smooth trade flows between the two nations without violating global sanctions on Russia after it invaded Ukraine in February.
LIC investors would see good returns in the longer term, chairman says
The mega Rs 210 billion share sale of LIC took place amid challenging condition that has seen the stock lost about a quarter of its value. Investors have no reason to worry as the outlook on returns on investment remains strong in the mid- to long-term, chairman M R Kumar said.
Why it’s important: Investors in LIC shares will have to be patient. Those who though to make a quick buck from the much-anticipated IPO have been disappointed but long-term investors may reap some benefits.
India says it will not compromise on fishing subsidies at WTO meet
India will not sign a deal on curbing fisheries sops without a longer transition period of 25-years for developing countries, commerce Piyush Goyal said at the World Trade Organization talks. Calling out rich countries for an imbalanced text favoring the polluters that dole out heavy subsidies, Goyal pressed for a moratorium that would prevent developed nations from giving any kind of fishing subsidies beyond their exclusive economic zones.
Why it’s important: India is seeking a 25-year exemption for developing countries from the proposed overfishing subsidy prohibitions against seven years mentioned in the draft text. The fisheries sector in India still at a nascent stage but growing rapidly.
Reserve Bank warns lenders on flouting regulatory guidelines
The Reserve Bank of India has found banks flouting norms related to lending to government-owned entities. The central bank has sought strict adherence to regulatory guidelines. The regulator directed banks to conduct a review and report to their boards the status of compliance within three months.
Why it’s important: It’s a no-brainer that due diligence should be carried out on viability and bankability of projects to ensure revenue from it is sufficient for repayment obligations. No exceptions should b made for public-sector companies.