dfa-5-aug

Daily Financial News Analysis – 5th August’20 – Free PDF Download

 

SBI Chairman Rajnish Kumar

  • Government and corporates have to open up their wallets to invest, and their actions should go hand-in-hand for a quick economic recovery.
  • Middle class is cautious
  • Investment in infrastructure should be stepped up
  • Loan moratorium has devliered its limited purpose.
  • Now, RBI needs to provide restructuring relief to banks
  • Industry and bankers are looking to revive businesses that are cash-strapped.
  • Local lockdowns are affecting proper recovery

Mobile Phone Manufacturers

  • Six state governments are trying to attract mobile phone manufacturers
  • States are offering incentives and subsidies over and above the central government’s product-linked incentive (PLI) scheme.
  • Of special interest is Pegatron, Apple’s second-largest contract manufacturer, which is yet to set up a plant in India.
  1. Uttar Pradesh
  2. Andhra Pradesh
  3. Telangana
  4. Karnataka
  5. Tamil Nadu
  6. Maharashtra
  • PLI scheme is aimed at boosting local manufacturing for the domestic and export markets.
  • Uttar Pradesh has already written to both Pegatron and Apple, highlighting its offer of 20% added incentive on capital invested and 25% subsidy on land.
  • It is also wooing Samsung.
  • Tamil Nadu’s chief minister has also written to Foxconn and Samsung, which already have plants in the state, as well as new entrants Wistron and Pegatron, inviting the companies to set up shop.

TikTok trouble

IT

  • India’s top IT firms are expected to hire more than 100,000 people locally.
  • Many clients have shifted to digital and stepped up outsourcing to cut costs.
  • India’s largest IT services firm, Tata Consultancy Services (TCS), alone is likely to hire around 40,000 new executives.
  • The company has continued onboarding freshers and resumed lateral hiring.
  • Infosys will onboard over 20,000 people, while HCL Technologies will take in 15,000 freshers this year.
  • Several mid-size IT firms had delayed joining dates for new hires this year.
  • Now, with everyone having settled into working remotely, companies are remotely onboarding freshers.

Delhi-Mumbai Eway

  • India’s national highways building authority has decided to go ahead with its flagship Delhi-Mumbai expressway without assistance from the National Investment and Infrastructure Fund (NIIF).
  • In July last year, the infrastructure funding body signed an MoU with the National Highways Authority of India (NHAI) to form a SPV to execute fund arrangement for large sized road projects, particularly greenfield ones that were to be executed by NHAI.
  • A year on, talks between the parties have not fructified, with NIIF not ready to bear any risks.
  • “We have decided to invest equity on our own,” a senior NHAI official said. “Working on its own, NHAI can act faster,” the official said, citing delays in discussions.
  • A second official ET spoke with said NIIF was not willing to share risks in the SPV and offered barely ₹2,000-3,000 crore as equity into the project.

ASEAN FTA Review

  • A review of India’s Free Trade Agreement (FTA) with the Association of Southeast Asian Nations (Asean) has the potential to double bilateral trade.
  • Puri also said e-commerce, fintech, Artificial Intelligence and blockchain have the maximum potential for collaboration.
  • Asean agreed to India’s request for review of the FTA as the trade deficit with the 10-member grouping rose to $21.8 billion in financial year 2019 from around $5 billion in financial year 2011.
  • A ballooning trade deficit was one of the reasons that India exited the Regional Comprehensive Economic Partnership (RCEP) trade agreement last year after being in negotiations for seven years.
  • As per the CII statement, Cambodia and Philippines suggested FTAs with India.

Unnati

  • The government is planning to integrate its multiple job portals with NITI Aayog’s Unnatiportal to make it a one point source of information on number, qualification, skill sets and all related information about blue and grey collar workers in the country including mapping of their progress.
  • Aim: bring both job seekers and job givers together on a single mobile digital platform.
  • This will also help employers find the right fit to their requirements, considering that thousands of workers have moved back to their home states.

 

 

 

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