2022: The Year Indian Homebuyers Said, 'Loan Me The Money!'

Friday, May 12^th 2023

Good Morning ☕

Move over Monopoly, Indian banks are handing out real-life 'get out of the rental trap' cards faster than you can roll the dice! A colossal Rs 9 Lakh Crore in home loans were handed out, enough to buy a small country or two! Seems like the banks have upgraded their game from 'House of Cards' to 'House of Loans'!

India's Vital Vibes: Unmasking the Must-Know News!

1. Home loans Worth Rs 9 Lakh Crore Disbursed During 2022: Report

A study by Equifax and Andromeda found that in 2022, domestic banks and housing finance companies disbursed 34 lakh home loans amounting to ₹9 trillion ($121.6 billion). Loans below ₹25 lakh made up 67% of the total, while loans between ₹75 lakh-₹1 crore increased by 36% YoY. The total portfolio of home loans grew by 16%, and a 57% rise in personal loans pushed the retail industry's market size to ₹100 lakh crore.

2. Supreme Court Reserves Judgment on Same-Sex Marriage Equality Rights

The Supreme Court of India, led by Chief Justice DY Chandrachud, has reserved judgment on petitions regarding marriage equality rights for the LGBTQIA+ community. The constitutional bench, consisting of five justices, resumed hearings on the matter and emphasized that the Indian Constitution itself challenges traditional norms. The court clarified that it will address the issue within the framework of the Special Marriage Act and not intervene in personal laws. The Central government asked states for their views on same-sex marriage, but responses have been mixed, with some states against it and others asking for more time to give their opinion.

3. Enforcement Directorate Summons NCP Leader Jayant Patil in IL&FS Money Laundering Case

Hold on to your magnifying glasses, folks! The Enforcement Directorate is turning up the heat on Jayant Patil like a detective in a Bollywood thriller.

The Enforcement Directorate (ED) has called Nationalist Congress Party leader Jayant Patil for questioning over alleged irregularities at Infrastructure Leasing & Financial Services (IL&FS). Patil, also the Maharashtra NCP president, is due to appear before the ED on May 12. The investigation is centered around alleged financial misconduct in IL&FS Group's loan and equity investment in Kohinoor CTNL, which was involved in developing the Kohinoor Square tower. The money laundering probe began in 2019 after IL&FS filed for bankruptcy in 2018.

4. India's Path to Development: Infrastructure and Investments in Focus, Says Finance Minister

During a visit to Japan, Finance Minister Nirmala Sitharaman stated that infrastructure development and investments are India's priorities for the next 25 years, aiming to become a developed nation by 2047. Emphasizing the need for physical and digital infrastructure, and innovation, she outlined government initiatives such as the Union Budget and measures to improve ease of doing business. She also highlighted India's commitment to renewable energy, with a goal of 300 GW of solar energy by 2030, and the launch of a National Hydrogen Mission. The government is also concentrating on training people in artificial intelligence.

5. Karnataka High Court Quashes Rs 21,000-Crore GST Notice Against Gameskraft

Looks like Gameskraft played the ultimate skill-based game of tax evasion and emerged victorious! GST officials were left scratching their heads like confused NPCs.

The Karnataka High Court dismissed a Goods and Services Tax (GST) notice against online gaming company Gameskraft, which was accused of evading ₹21,000 crore in GST. The company argued its offerings were skill-based games, attracting 18% GST on the platform fee, rather than a 28% tax imposed by officials. This ruling is crucial for the Indian online gaming sector as it clarifies tax policies and differentiates between games of skill and chance.

6. Bihar Government Challenges Patna High Court's Order on Caste-based Census

The Bihar government has appealed to the Supreme Court against a Patna High Court order pausing the caste-based census in the state over privacy concerns. The state government argues that it has the authority to conduct the census and has requested an earlier hearing. This comes after the central government rejected their request for a wider social group headcount. The census has currently been paused in compliance with the high court's order.

Breaking News: The Scoop You Can't Miss!

1. Hyundai Commits ₹20,000 Crore Investment in Tamil Nadu for EV Manufacturing and Charging Infrastructure

Hyundai Motor India plans to invest ₹20,000 crore over the next ten years in Tamil Nadu to enhance its electric vehicle operations and modernize its vehicle platform. This includes setting up a battery pack assembly unit with an annual capacity of 178,000 units and installing 100 EV charging stations along key highways.

2. Adani’s Abu Dhabi backer says no plan to join any new share sale

Abu Dhabi's International Holding Co. (IHC) confirmed that it does not plan to participate in any potential share sales by Gautam Adani's companies. This follows news that Adani Enterprises and other group companies are considering fundraising through share or security sales. IHC had previously committed $400 million in Adani Enterprises' share sale, which was returned following a selloff due to fraud allegations.

Adani's share sales just hit a snag as IHC decides to take a detour on this rollercoaster ride. It's like they're saying, 'Adani, we appreciate the offer, but we've decided to exit the Adani Enterprises' share sale theater and grab some popcorn instead!

3. 57% of all fraud incidents in India now 'Platform' frauds: PwC Report

According to a PwC report, 57% of fraud incidents in India are now classified as 'platform' fraud, occurring on social media, e-commerce, enterprise, and fintech platforms. Over 26% of Indian organizations suffered losses exceeding $1 million from these frauds, and 44% of the perpetrators were motivated by financial gain. The study emphasizes that 99% of fraud incidents in the past 24 months took place on different platforms.

4. Govt waives duty and agri cess on crude soya bean, sunflower oil imports under tariff rate quota till June 30

The finance ministry has decided that until June 30, imports of crude soya bean and sunflower oils will be exempted from customs duty and agriculture infrastructure and development cess. However, this exemption applies only to importers who hold a Tariff Rate Quota (TRQ) license for the 2022-23 fiscal year.

5. Businesses with more than ₹5 crore in sales are required to generate e-invoice from August 1

The Indian government has announced that businesses with sales between ₹5 crores and ₹10 crores will be required to generate e-invoices for their business-to-business transactions. This move is aimed at capturing data on economic transactions and ensuring GST compliance throughout the value chain. The threshold for e-invoicing has been gradually lowered since October 2020, and the new threshold of ₹5 crore will come into effect from August 1.

6. SpiceJet to revive grounded fleet with $50 million ECLGS funds

SpiceJet is reviving its grounded fleet using $50 million from the government's Emergency Credit Line Guarantee Scheme (ECLGS) and its own cash. The company isn't planning to file for bankruptcy and is seeking more investors. Despite a lawsuit from Credit Suisse over unpaid dues, which SpiceJet claims is pending approval from the Reserve Bank of India, the airline has made its April payment and plans to do so for May as well.

7. Indian companies invested over ₹40,446 crore in Canada, creating thousands of jobs: Report

It's official, folks! Canada and India have become the ultimate BFFs of the economic world. They're like two peas in a pod, sharing investments, innovation, and probably even some poutine recipes.

Canada plans to invest its surplus in India, strengthening economic relationships. Indian companies have invested CAD $6.6 billion in Canada, employing 17,000 people and investing over CAD $700 million in R&D. All surveyed companies plan to increase investments and hiring in Canada in the next five years, highlighting the importance of this partnership for mutual growth.

News Around the Globe

1. WHO says mpox no longer public health emergency

The World Health Organization (WHO) said on Thursday mpox was no longer a global health emergency, ending a nearly year-long alert for the viral disease that led to confirmed cases in more than hundred countries.

2. US Unemployment Claims Hit Highest Level Since October 2021

Applications for US unemployment benefits have reached the highest level since October 2021, indicating a gradual cooling of the labor market. Initial unemployment claims rose by 22,000 to 264,000 in the week ending May 6, according to the Labor Department. Continuing claims, which reflect the difficulty of finding work after job loss, increased by 12,000 to 1.81 million. The increase aligns with recent layoffs in sectors such as technology and banking, and future job cuts may be influenced by the Federal Reserve's interest rate hikes and tighter credit conditions.

3. Generative AI: More Opportunities Than Risks, Say Experts

Since OpenAI introduced ChatGPT in November 2022, the interest in generative artificial intelligence (AI) has grown significantly. Many experts believe that generative AI, also known as "creative AI," offers more opportunities than risks. CEOs have expressed that AI foundation models will play a crucial role in their organizations' strategies in the next few years. While there are fears that AI may lead to job displacement, experts argue that it has the potential to improve productivity, creativity, efficiency, and communication.

4. SoftBank's Vision Fund loses record $32 billion in FY23 on weak tech valuations

SoftBank Group's Vision Fund reported a record loss of 4.3 trillion yen ($32 billion) due to declining tech company valuations, marking SoftBank's second consecutive fiscal year of losses. SoftBank reported an annual loss of 970 billion yen ($7.2 billion) for the fiscal year ending March 31, 2023, compared to a loss of 2.6 trillion yen in the previous year. In the fourth quarter, the Vision Fund reported a smaller loss of 297.5 billion yen ($2 billion) as tech stocks rallied.

What else is happening around the world:

• Pakistan rupee slumps 3.3% to all-time record low of 300 per dollar amid Imran Khan arrest

• Ukraine says it has received $16.7 bn in foreign aid so far this year

• Bank of England hikes interest rates by 25 bps to 4.5%, highest since 2008 in UK

• Amazon to receive $1 billion in tax breaks in eastern Oregon for new data centers

• Japan: Public reluctant to defend Taiwan should China invade

• Turkish Airlines set to order 600 aircraft, chairman says

• Disney CEO questions continued Florida investment in clash with DeSantis

• Big U.S. lenders to pay billions to replenish bank failure fund

• Disney shares fall on jitters over streaming subscriber losses

• Pfizer CEO calls US drug price law 'negotiation with a gun to your head'

• EU lawmakers' committees agree tougher draft AI rules