Slowdown worries
With the Russia-Ukraine war affecting the world at large, India is not likely to be untouched. This was reflected in the recent forecast by the International Monetary Fund, which lowered India’s GDP growth forecast for 2022-23 by 80 basis points to 7.4% due to external shocks and fast tightening of monetary policy. IMF has also cut its forecast for several other countries, including the UK, the US, and China, and warned that the world may be on the brink of a recession.
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Zomato crash
After making a stellar market debut a year ago, Zomato is now facing the heat. With the initial public offering’s (IPO’s) lock-in period ending, the company’s share prices even tanked to an intra-day record low of ₹40.60 on the National Stock Exchange on Wednesday. Analysts believe the plunge in Zomato’s share price could be due to the tough market conditions amid tightening monetary policy and concerns over the time the company will take to become profitable.
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Bailing out BSNL
₹1.64 trillion: That’s the amount of the rescue package the Union cabinet has cleared for state-run Bharat Sanchar Nigam Ltd (BSNL). The package includes conversion of spectrum dues into equity, funding to support network expansion, and debt restructuring. BSNL is being revived to retain one state-run business each in strategic sectors. The presence of BSNL is crucial as it has been tasked with extending 4G connectivity to 25,000 unserviced villages.
Salary sting
With the covid-19 pandemic creating massive demand for information technology services, the industry has been facing high attrition. The steep competition led India’s tech giants such as Tata Consultancy Services Ltd, Infosys Ltd and Wipro Ltd to raise salaries of their employees to keep them from quitting. Four of the five companies reported an increase in wage costs as a share of revenue in the June quarter, a Mint analysis showed.
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Fraud in check
As India has adapted to better banking services, the country has also seen incidents of fraud involving such services. However, the number of fraudulent withdrawals from bank accounts has gone down over the past two years, according to data shared by the government in Rajya Sabha. The number of such withdrawals fell 21% in 2021-22 compared to two years ago. Moreover, the amount involved in fraudulent transactions also came down drastically.
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Streaming success
$7 billion: That’s the revenue India’s streaming video market is expected to achieve by 2027, which will be more than twice bigger than it is currently, according to a report by MPA (Media Partners Asia). While global giants such as Netflix and Amazon Prime are quite popular in the country, new local players are also gearing up to grab market share. Going forward, Viacom18’s new streaming platform is expected to emerge as an important player in the industry.
Failed bet?
The inflow of deposits by non-resident Indians saw a sharp decline in the first two months of the fiscal year. The inflow was a mere $422 million in April-May, less than one-fifth of the inflows received in the same period last year. And now, the Reserve Bank of India’s decision to allow banks to offer higher rates to NRI depositors does not seem to be working, Mint reported. Higher deposits from NRIs would have helped the rupee, which is currently under pressure.
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Chart of the week: Cheap internet
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Even as several telecom companies have hiked prices, average mobile data prices in India stand at just $0.17 per GB, which is among the cheapest globally, according to data from Worldwide Mobile Data Pricing.
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