Looks like India's got Sri Lanka's back - again!

Wednesday, May 10^th 2023

Good Morning ☕

Welcome to our daily business newsletter, where we bring you a concise summary of the most important news stories from the business world. Our aim is to provide you with a quick and easy way to stay up-to-date with the latest developments, so you can make informed decisions and stay ahead of the curve.

1. India extends $1 billion credit line to Sri Lanka by a year

India has extended its $1 billion credit line to Sri Lanka by one year, as confirmed by Sri Lanka's Deputy Treasury Secretary Priyantha Rathnayake. This extension provides a backup infusion of dollars for essential imports, as part of the $4 billion in emergency assistance extended by India to Sri Lanka during its financial crisis last year. The credit line was scheduled to end in March, but it has now been extended until March 2024, and there is about $350 million left that can be utilized if needed. (Source: Reuters)

2. Gold prices rise by ₹450 while silver declines ₹380

Gold prices in the national capital increased by ₹450 to ₹61,300 per 10 grams on Tuesday, driven by a rise in international precious metal prices. In the previous trade, gold had closed at ₹60,850 per 10 grams. Silver, on the other hand, fell by ₹380 to ₹77,400 per kg. Gold was trading higher at $2,024 per ounce in the overseas market, while silver was down at $25.45 per ounce. Investors are currently awaiting vital US inflation reports that could impact the Federal Reserve's next interest rate decision. Gold prices rose as traders focused on US inflation readings for hints on the future rate strategy amid economic uncertainties.

3. Israel and India signed an agreement to allow 42,000 Indian workers to work in Israel

Israel and India have signed an agreement to allow 42,000 Indian workers to work in Israel in construction and nursing. This move is expected to help address the rising cost of living in Israel and assist thousands of families waiting for nursing care. Israeli Foreign Minister Eli Cohen and Indian Foreign Minister Dr. S Jaishankar discussed strengthening ties through direct flights, cooperation in agriculture and water management, and expanding collaboration in artificial intelligence and cyber defense. Of the 42,000 workers, 34,000 will work in construction and 8,000 in nursing. (Source: ET)

4. Karnataka Elections: Over 50 Million Voters to Choose Next State Government

Karnataka's 52 million voters are set to cast their ballots for 224 seats, with the BJP aiming to break the trend of voting against the majority incumbent. The election campaign was shaped by issues such as corruption, unemployment, price rise, and promises to change the reservation framework. The Congress party has continued to attack the BJP over corruption allegations, while the BJP's campaign was led by Prime Minister Narendra Modi, Union Home Minister Amit Shah, and former CM Yediyurappa. The JD(S) hopes to retain its stronghold in Old Mysuru and safeguard its traditional vote base. Elaborate security arrangements and an election workforce have been deployed to ensure smooth polling.

5. Anand Group's Gabriel has formed a joint venture with Dutch-based Inalfa Roof Systems to produce sunroofs for passenger vehicles

India's largest suspension unit manufacturer, Anand Group’s Gabriel, will form a joint venture with Dutch sunroof maker Inalfa to produce sunroofs for passenger vehicles in India. The Gabriel-Inalfa alliance will establish a production line near Chennai with an annual capacity of 200,000 units by Q1 2024. The facility will initially cater to Hyundai and Kia, with plans to collaborate with other domestic manufacturers like Tata Motors and Mahindra and Mahindra. The joint venture will involve an initial investment of ₹170 crore to set up the production facility. Gabriel estimates the sunroof market in India will grow 12-15% by 2030, particularly in SUVs. (Source: FT)

6. Foreign investors pour funds into Indian equities for the ninth consecutive day, invests ₹1,942 cr

Foreign institutional investors (FIIs) continued buying Indian equities for the ninth consecutive day, while domestic institutional investors (DIIs) also infused funds for the second day in a row. The FIIs' inflow reached ₹1,942.19 crore, while DIIs registered an inflow of ₹404.70 crore. The Sensex closed flat at 61,761.33, and the Nifty 50 ended at 18,265.95. This week, the focus will be on India's key macroeconomic data, including IIP and CPI, as well as Q4 earnings. (Source: Livemint)

7. Defence Minister Rajnath Singh Meets with Israeli Foreign Minister Eli Cohen, discuss joint ventures in defence manufacturing

India's Defence Minister, Rajnath Singh, met with a delegation from Israel led by Foreign Minister Eli Cohen to explore collaboration in defence manufacturing and technology. Singh encouraged Israeli companies to invest more in India and establish joint ventures with Indian partners for the production of defence equipment in line with India's 'Aatmanirbhar Bharat Policy'. Cohen reaffirmed Israel's support for India's efforts to achieve self-reliance in defence production and expressed a willingness to cooperate on advanced technologies. The meeting between Singh and Cohen highlights the growing defence cooperation between India and Israel and their shared commitment to promoting self-sufficiency in defence manufacturing.

8. India-UAE bilateral trade reaches an all-time high of $84 bn in 2022-23 after CEPA implementation

India-UAE bilateral trade reached a record high of $84 billion during the financial year 2022-23 after the implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA). Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), highlighted that the CEPA has significantly transformed the India-UAE partnership by providing renewed impetus to an already strong relationship. Around 100 companies from India and the UAE participated in a Business-to-Business event in Dubai to celebrate the first anniversary of CEPA's implementation. (Source: FT)

9. Oil Ministry Committee Recommends Ban On Diesel Cars By 2027; Govt Says No Decision Yet

The Indian government has not yet made a decision on a report by the Energy Transition Advisory Committee (ETAC) that recommends banning diesel-powered four-wheelers in large cities in a phased manner. The oil ministry is currently assessing the report, and any decision will be made after considering recommendations from all stakeholders. Other proposals by the ETAC include allowing only electric vehicle registrations for city delivery by 2024, enhancing gas-based consumption for transport, and installing a gas storage system. The ETAC aims to recommend ways for India to achieve net-zero emissions by 2070 and to chart an energy transition roadmap within six months. (Source: Moneycontrol)

10. Enforcement agencies seize over ₹375 crore worth of liquor and drugs in poll-bound Karnataka

Enforcement agencies in poll-bound Karnataka seized over ₹375 crore worth of liquor, drugs, and freebies, 4.5 times more than during the 2018 assembly elections, according to a statement by the Election Commission of India. The increased focus on election expenditure monitoring was credited with the success of the seizures, which included ₹83.78 crore in confiscated goods since March. The commission has been working to increase vigilance and prevent inducements from being distributed during the electoral process, with significant liquor and drug hauls being seized in all districts.

11. Indian government's social security schemes benefit 556 million people: Sitharaman

Indian Finance Minister Nirmala Sitharaman announced that 556 million people have benefited from three social security schemes since their launch eight years ago. The schemes, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY), aim to provide social security coverage for eligible individuals in the country. PMJJBY offers low-cost life insurance, PMSBY provides accidental insurance coverage, and APY is a pension scheme targeting unorganized sector workers. As of 26 April 2023, there have been 162 million, 342 million, and 52 million enrolments under PMJJBY, PMSBY, and APY, respectively. (Source: HT)

12. Mitsubishi Electric to Establish $231 Million Manufacturing Facility in India, to create over 2,000 jobs

Mitsubishi Electric Corp will invest ₹18.91 billion ($231.2 million) to establish a manufacturing facility in Tamil Nadu, India, for room air-conditioners and compressors. The facility, set to create over 2,000 jobs, will be located in Peruvoyal village, Gummidipoondi Taluk, Thiruvallur district. Commercial production is expected to begin in October 2025, with initial capacities of 300,000 room air-conditioners and 650,000 compressors by December 2025. The facility will implement initiatives for carbon neutrality, such as minimizing CO2 emissions through enhanced thermal insulation and using efficient air-conditioning and heated water systems. (Source: Yahoo)

13. The fight for India’s 1.4 billion consumers is a fixed match

India's adoption of capitalism has led to economic growth but failed to bring strong competition in sectors regulated by the state. Increasing market concentration has resulted in limited consumer choices, higher prices, and poorer services. The top five non-financial business groups have expanded their share of total assets by 8 percentage points in 30 years, while the next five have shrunk by roughly the same amount. High margins are partly responsible for persistently high inflation in India. Market concentration has also led to decreased competition in the aviation industry, with Indigo controlling 57% of the market. Consumers may face higher prices and limited options as India's economic power becomes increasingly concentrated in the hands of a few conglomerates.

14. LinkedIn to cut 716 jobs and shut down China-focused application

LinkedIn, Microsoft's business-oriented social media platform, announced it would cut 716 jobs and shut down its China-focused job application due to fluctuating demand and a challenging global economic outlook. Despite consistent revenue growth over the past year, LinkedIn joins other major tech companies in laying off workers. Over the past six months, more than 270,000 tech jobs have been cut worldwide. The job cuts at LinkedIn will primarily affect sales, operations, and support teams to streamline company operations and facilitate faster decision-making. In addition to the job cuts, LinkedIn will phase out its slimmed-down China app, InCareers, by August 9, citing fierce competition and a challenging macroeconomic climate. (Source: TOI)

15. DRDO Scientist Pradeep Kurulkar Remanded to ATS Custody Until May 15 in Espionage Case

Senior scientist Pradeep Kurulkar of the Defense Research and Development Organization (DRDO) has been remanded to the custody of the Maharashtra Anti-Terrorism Squad (ATS) until May 15. Kurulkar was arrested under the Official Secrets Act for allegedly sharing confidential information with a Pakistani intelligence agent he had been in contact with since September 2022 via WhatsApp voice messages and video calls. The ATS has seized electronic devices from Kurulkar, which are being forensically examined. Maharashtra ATS has alleged that Kurulkar misused his position and compromised sensitive government secrets, which could pose a threat to national security if obtained by an enemy nation. (Source: ThePrint)

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