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Business Today

Business Today 2-May-21

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A leading business magazine read by the business leaders for staying ahead and managing challenges that comes right away in the ever changing world of business.

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Living Media India Limited
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26 Issues

in this issue

3 min.
quest to be the world’s factory

The Production Linked Incentive (PLI) Scheme — India’s valiant answer to domestic and foreign manufacturers’ eternal gripe that producing in India was hopelessly unviable because of high taxes, high cost of logistics, finance, land, power and an endless list thereafter — was introduced for mobile manufacturers in 2020. The Government of India’s commitment to provide cash incentives up to 4-6 per cent of revenue from incremental local manufacturing aimed at import substitution got such an excitable response from companies that the Centre made mobile PLI the template to launch it in 12 other sectors. With total incentives committed going as high as ₹1.99 lakh crore over five years, PLIs now rival some of the biggest Government of India outlays such as ₹3.05 lakh crore for reforms-based result-linked power distribution sector scheme…

1 min.
bank credit growth dips in spite of recovery

Growth in outstanding non-food credit given by scheduled commercial banks (SCBs) fell from 8.5 per cent in January 2020 to 6.6 per cent in February 2021. This despite the economy coming out of the contraction phase in the third quarter of FY21 OUTSTANDING CREDIT BY SCHEDULED COMMERCIAL BANKS CREDIT GROWTH HAD SLIPPED BELOW 7 PER CENT FOR THE FIRST TIME SINCE DEMONETISATION IN MARCH 2020. IT HAS NOT CROSSED THIS LEVEL IN ANY MONTH SINCE THENOutstanding credit to industry fell 0.2 percent…

1 min.
mutual fund aum hits record high

↘ Assets under management (AUMs) of the mutual fund industry rose 16.1 per cent (by ₹4.4 lakh crore) YoY to all-time high of ₹31.6 lakh crore in February 2021 ↘ Equity schemes had the largest number of folios at 68 per cent (6.59 crore). This was followed by hybrid schemes with 10 per cent share (93 lakh folios) and debt with 9 per cent share (88.9 lakh folios). AUM OF INDIAN MF INDUSTRY 3.74% Month-on-month rise in total assets under management in February 2021. Equity schemes' assets rose 7.8% month-on-month…

5 min.
dead cat bounce?

As India is going through the second wave of Covid-19 infections, so are fears of uncertainty and gloom. But the consistent improvement in gross domestic product (GDP) numbers over the past year is playing a key role in shaping up sentiments of corporate India, as highlighted in the latest Business Confidence Index (BCI) survey. On a scale of 100, BCI jumped to 45.5 in the January-March period compared to 43.8 in the previous quarter and 48.2 in the quarter before that. Market research agency C fore quizzed 500 CEOs and chief financial officers across 12 cities for the survey. Sujan Hajra, Chief Economist at Anand Rathi Securities, says the biggest reason for the boost in sentiment is GDP growth. “The economy has done well quarter after quarter,” he says. GDP declined sharply…

25 min.
factory to the world?

₹199,641 Crore TOTAL INCENTIVE OFFERED FOR FIVE YEARS $520 Billion PROJECTED RISE IN DOMESTIC PRODUCTION OVER FIVE YEARS 1.9 Million PROJECTED JOB CREATION OVER FIVE YEARS On March 10, the $274 billion, Cupertino, California-based Apple Inc. announced it is starting production of the 5G-compatible iPhone 12 in India. It appeared like a routine announcement. After all, Apple has been assembling older generation iPhones in India through contract manufacturers since 2017. It wasn’t. It might have been a small step for Apple but was a giant leap for Indian manufacturing. India’s new Production Linked Incentive (PLI) Scheme to reduce import dependence and promote local manufacturing had lured three of Apple’s Taiwanese original equipment manufacturers — Foxconnn Hon Hai, Wistron and Pegatron — to pump in millions of dollars to expand Indian facilities. They will move a step up…

7 min.
betting on bot

On February 10, the National Highways Authority of India’s (NHAI’s) project team eagerly awaited opening of bids for two projects — six-laning of the 67.75-kilometre Panagarh-Palsit and 63.8-kilometre Palsit-Dankuni stretches — in West Bengal. The excitement vanished soon after, because instead of bids, all they got were bid-related queries from developers. NHAI extended the bid submission deadline by two weeks. The story was no different and the deadline was postponed yet again. However, when bids were opened yet again in early March, it was a jackpot for both NHAI and the Ministry of Road Transport and Highways (MORTH). Not only were there bids, private highway developers did not demand viability gap funding (VGF is a capital grant given by the government to a developer to bridge the viability gap in a…