Small, Medium, Trillion: The MSME Revolution in Tamil Nadu and Karnataka 📈

Saturday, June 3^rd 2023

Good Morning ☕

With Tamil Nadu and Karnataka on their way to becoming $1 trillion economies, it won't be long before we have "trillion-dollar dosas" on the menu! India's economic growth is spicing up, and soon the whole world will be ordering a side of chutney with their global supply chains. Let's hope these MSMEs can handle the extra spice and keep up with the demand! And remember, always keep your investments as diverse as a South Indian thali, because, after all, variety is the spice of life...and economics!"

1. Tamil Nadu and Karnataka will be $1 tn economies in 2 years

According to a report by NITI Aayog CEO Amitabh Kant, Tamil Nadu, and Karnataka will become $1 trillion economies in the next two years. Kant is optimistic about India's economic growth and potential to become a superpower where all global supply chains get linked with its potential. He emphasized the importance of large companies and their relationship with micro, small, and medium enterprises (MSMEs) in boosting India's economy. By creating backward and forward linkages with MSMEs, large companies can help increase production, generate employment, and expand business.

2. Maruti Suzuki expects June sales to be impacted by chip shortage

Maruti Suzuki, India's largest carmaker, is anticipating a continuing production loss in the first quarter due to the shortage of electronic components, with some relief anticipated in the July-September period. The company has been facing a shortage of chips for a while, which has impacted its supplies to cater to the market demand. Last fiscal, Maruti lost 1.7 lakh units due to the chip shortage, and it is anticipated that the company will lose numbers in May and June. The shortage, which affected the company's April production, will continue in the current quarter ended June. However, the company expects some relief in the July-September period

3. Microsoft, DGT collaborate to empower Indian youth with digital skills

Microsoft has partnered with the Directorate General of Training (DGT) under the Ministry of Skills Development and Entrepreneurship (MSDE) to provide digital skills training to Indian youth. The collaboration aims to train 6,000 students and 200 educators in cybersecurity skills. Microsoft will offer a range of courses, including training in AI, cloud computing, web development, and cybersecurity. The training program aims to provide young students with industry-relevant skills, improve their employability, and link them with work opportunities. This collaboration will help nurture talent and provide Indian youth with easy access to skills that are relevant in this rapidly changing digital world.

4. Govt asks edible oil firms to slash retail prices by ₹8-12 per litre

The Indian government has directed edible oil associations to reduce the maximum retail price (MRP) of major edible oils by Rs 8-12 per litre as global prices drop. The industry body has offered to further reduce the MRP of edible oils, which could lead to lower prices for consumers. Cooking oil prices have been high for the past two years, setting new record highs.

5. Coal India OFS over-subscribed by 417%, Centre to get more than ₹4,000 crore

The Indian government's offer for sale (OFS) of a 3% stake in Coal India was oversubscribed by 417%, with the government expected to raise over INR 4,000 crore ($540 million) from the sale. The OFS took place on June 1 and June 2, with non-retail investors bidding on the first day and retail investors bidding on the second day. Coal India is the world's largest miner of coal and is currently valued at INR 1.43 trillion ($19.3 billion).

6. CBI case against IL&FS subsidiary for defrauding SBI, PNB, and 17 other banks

The Central Bureau of Investigation (CBI) has filed a case against an IL&FS subsidiary for defrauding 17 banks, including SBI and PNB, according to a report by Livemint. The case is part of a larger investigation into high-profile bank fraud cases, including those involving Jet Airways, Cox and Kings, and Rana Kapoor. The IL&FS group has been under investigation since 2018, after some of its entities defaulted on debt repayments. The CBI is also investigating other bank fraud cases, including one involving DHFL worth Rs 34,615 crore, which is the largest bank fraud case registered by the CBI.

7. Amazon's India, South Asia cloud unit head Puneet Chandok resigns

Puneet Chandok, the India and South Asia head of Amazon's cloud division, has resigned from his position, effective August 31, 2023. Chandok had taken over the helm of Amazon Web Services in June 2019. Vaishali Kasture, currently head of enterprise for mid-market and global businesses at AWS India and South Asia, will take on the role of interim leader of commercial business for the unit. The news came two weeks after Amazon's cloud computing unit revealed plans to invest $12.87 billion in India by 2030, doubling down on its past investments to cater to the growing demand for such services in Asia's No. 3 economy.

8. India leads efforts to empower Global South in international taxation

India's G20 presidency is amplifying the voice of the Global South and developing countries. The Indian government convened a virtual summit of developing countries on January 12-13, 2023, and named it the "Voice of the Global South Summit." The goal was to consult developing countries not represented in G20 on their developmental priorities and what they expected India to achieve through its presidency. India's G20 presidency aims to emerge as the "voice of the Global South" and make consensus on key global issues "more relevant" through a wider process of consultation. The presidency will focus on inclusive and sustainable growth, and India's G20 priorities will be shaped by the interests of the Global South.

9. FIIs extend selling in Indian equities, outflow of ₹659 crores on 2 June

Foreign institutional investors (FIIs) were net sellers in the Indian stock market in the first week of June, with an outflow of Rs. 659 crores ($88.5 million), while domestic institutional investors (DIIs) were net buyers with an inflow of Rs. 582 crores ($78.3 million). The FIIs have been net sellers in the Indian market for the past few weeks, amid concerns over rising inflation and the impact of the COVID-19 pandemic on the economy. The DIIs, on the other hand, have been buying stocks, taking advantage of the dip in prices.

10. PM to flag off Goa’s first Vande Bharat Express on Saturday

Prime Minister Narendra Modi will virtually inaugurate Goa's first Vande Bharat Express on June 3, 2023, which is expected to boost connectivity and travel experience. The train is equipped with modern amenities such as Wi-Fi, a GPS-based passenger information system, and CCTV cameras. It will run between Mumbai and Karmali in Goa, covering a distance of 588 km in eight hours. The train will have 16 coaches, including two executive coaches, and will run at a maximum speed of 160 kmph.

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