Expresso Business and Finance News Highlights of the Week on 22 June 2024 Transcripts

The week of June 22, 2024, brought significant developments in the business and finance sector. Here are the highlights:

1. The government announced a revamp of the production linked incentives, aiming to relax norms for fund release, include more sectors, and extend benefits to MSMEs in labor-intensive industries. The scheme, launched three years ago, has seen only 5% of earmarked funds disbursed so far.

2. Customers of mid-sized universal banks experienced higher Unified Payments Interface transaction failure rates in the past year, with technical default rates ranging from 4.47% to 16%. Baroda UP Gramin Bank topped the list on both the remitter and beneficiary banks’ sides.

3. Bharti Airtel acquired a 1% stake in Indus Towers, raising its ownership to 48.95% after UK’s Vodafone Plc sold an 18% stake in the tower firm. The transaction was valued at 1.7 billion euros, with Vodafone using the proceeds to pay off outstanding bank borrowings in India.

4. Fitch Ratings raised India’s GDP growth projection for the current fiscal year to 7.2%, citing a recovery in consumer spending. The rating agency’s forecast aligns with the Reserve Bank of India’s estimate and exceeds the International Monetary Fund’s projection.

5. Fast-moving consumer goods companies are anticipating a rural consumption boost in the upcoming Budget, as rural growth outpaced urban growth in the first quarter of the year. Initiatives such as reducing stamp duty on land transfers and setting up rural industrial parks are proposed to stimulate economic activity.

6. Nykaa faces increased competition in the beauty and personal care market from players like Reliance Retail’s Tira, Tata Cliq Palette, Myntra, and Shoppers Stop. The Indian BPC market is expected to reach $30 billion by 2027, with consumers seeking organized beauty products.

7. India is considering retaliatory measures against the EU’s extension of safeguard duties on steel exports, which have been prolonged until 2026. The EU’s decision marks the second extension of safeguard duties on steel imports, prompting India to reserve the right to impose additional duties on EU imports.

These highlights from the week underscore the dynamic landscape of business and finance in India, with policy changes, market competition, and global trade dynamics shaping the sector’s trajectory.