Morning Scan: All the big stories to get you started for the day

Monetary policy alone cannot tame inflation, says Nirmala Sitharaman

Inflation management cannot be solely left to monetary policy by the Reserve Bank, finance minister Nirmala Sitharaman said. Both fiscal and monetary policies have to work in tandem to tame the rise in prices. Importing cheaper Russian crude oil was part of India´s inflation-management strategy, she said.

Why it’s important: A prudent management of the economy, addressing supply-side constraints, timely and periodic response to developments on the ground, managing input prices, logistics and infrastructure, and a steady supply of food and perishables are among factors that need to be addressed.

Apple to manufacture iPhone 14 locally in India in 2-3 months

Of the four models launched by Apple this week, the tech company is going to begin manufacturing the iPhone 14 in the next quarter in India in the fastest-ever local production start. It expects the made-in-India units, produced at the Foxconn factory near Chennai, to be commercially available by December.

Why it’s important: Apple has been trying to reduce its dependence on China to manufacture its products. It has been progressively reducing the India production lag time of new iPhone models since launch as part of that strategy.

Reliance Jio to partner Ericsson and Nokia to roll out 5G services

Reliance Jio is close to finalizing a deal with telecom equipment maker Ericsson to roll out its 5G network in Mumbai, Maharashtra, Kolkata, and West Bengal in the first phase of its launch in October. Jio will partner with Nokia for the lucrative Delhi circle, and Chennai, which includes Tamil Nadu. India’s largest telecom operator is also in the final stages of discussions with Samsung for part of its 5G network rollout, but the locations are not known yet.

Why it’s important: This is the first time Reliance Jio is going with multiple vendors. Global equipment makers expect India to be among the top three markets, accounting for 15 percent of the 5G network.

New trade policy to provide incentives to sector hit by the Covid pandemic

India’s foreign trade policy is likely to offer incentives for hotels, tourism, transport, education, and healthcare industries, the sectors that were the worst hit by the coronavirus pandemic. The government is considering fiscal and non-fiscal incentives for the affected sectors, but the commerce department has ruled out incentives for sectors such as consulting and information technology.

Why it’s important: India needs to move beyond software services and encourage other sectors to boost external trade to reach its ambitious target of $350 billion. India’s services exports in 2021-22 touched a record despite the pandemic and policymakers would look to sustain the momentum.

Cerberus-Arcil drop out of race to purchase bad loans of Yes Bank

Cerberus Capital and Asset Reconstruction Company of India (Arcil) have dropped out of the race to acquire over Rs 48,000 crore of distressed loans of Yes Bank. They did not submit a counterbid against a binding offer by JC Flowers ARC. Yes Bank will soon declare JC Flowers ARC as the winner and will transfer its distressed loans to the firm

Why it’s important: The transfer will make Yes Bank a virtually zero bad loans lender. The private bank has been facing stress for several years now and the sale of dude assets will help it to move forward.

Indian Railways may earn Rs 30,000 crore with new land licensing policy

With its new policy of land licensing fee, the railways ministry has identified a revenue potential of Rs 30,000 crore over the next five years. The earnings will be realized through higher freight volume brought through the GatiShakti cargo terminals. The Cabinet Committee on Economic Affairs has approved the revised railway land lease policy to 1.5 percent of the land’s market value, from the earlier 6 percent.

Why it’s important: The government intends to build 300 GatiShakti cargo terminals. Rail freight is not only cheaper that transporting cargo by road, it also leads to much lower emissions of greenhouse gases.

Government imposes 20 percent export duty on rice on fears of lower output

The central government has imposed a 20 percent duty on rice exports amid concerns of price rise following deficient rainfall in major rice-producing states such as West Bengal, Odisha, Bihar and Uttar Pradesh. The duty was imposed on paddy, husked rice, and semi-milled rice, but not on basmati, which accounts for nearly one-fifth of India’s total rice exports.

Why it’s important: The move was expected since the area under paddy cultivation has slumped substantially compared to last year’s summer cropping season. In an atmosphere of high inflation, households cannot afford to pay higher for the staple. The export curbs will help.

Ahmedabad-based Nirma may submit bid to acquire Maneesh Pharmaceuticals

Nirma is among suitors for Maneesh Pharmaceuticals. Ahmedabad-based Nirma may submit a bid through its healthcare subsidiary Aculife Healthcare, sells medical devices and critical care medicines under its Nirlife and Oneuse brands. Owners of Mumbai-based Maneesh Pharmaceuticals have hired an investment banker to sell the entire business for around Rs 3,000 crore.

Why it’s important: Nirma, a maker of detergents and cement, is making a move to bolster its healthcare business. It remains to be seen whether it is successful in its bid.

Adani’s open offer for Ambuja Cement and ACC gets modest response

The mandatory offers by the Adani group to buy the stakes of public shareholders of ACC and Ambuja Cement after acquiring the majority holdings have received modest response. The open offer started on August 26 and will close on September 9.

Why it’s important: Market insiders said there is likelihood of more participation in the ACC open offer on the last day because of the premium to the offer price.

EY to spin off units to smoothen regulatory concerns

Professional services firm EY said it was planning to split its audit and consulting units into two separate companies to ease regulatory concerns over potential conflicts of interest. “This is something that will change the industry,” global chairman and chief executive Carmine Di Sibio said in an interview.