Business Today 09 April 2017

India’s “demographic dividend” is often cited as a major reason for India becoming an economic superpower in the next couple of decades. The term refers to the fact that the country is in that sweet spot where the bulk of the population is in the working age group (15-64), and is expected to remain so over the next decade or more. By 2020, India is expected to have the world’s largest population of working people, and the average Indian will be 29 years old compared to a 37 for China and US, 45 for Western Europe, and 48 for Japan. According to the labour ministry data, roughly one million Indian youth are joining the workforce every month. The demographic dividend is expected to increase economic activity and production rapidly, thus…

Unicorns Hurtling Helter-skelter This refers to your cover story on start-ups (The Fall of the Unicorns, March 26). It was a unique study of Indian unicorns explaining in detail what failed them, what turned them frail, and what should be done on priority to resuscitate them and revitalise their operations. The unicorns have largely failed to read the writing on the wall regarding revenue realisation, increasing operational costs, meagre cash flows and profit impact. In fact, it is a case of chasing the mirage of progress, with unicorns hurtling helter-skelter and caught in the trap of growth tantrums. Instead of growing profitably on the back of high demand by customers, the unicorns dictated their own terms in the deals, and have hit mounds of business difficulties. Their puerile belief that…

QUOTE “Safety and security ofIndians is our top-most priority. It is not possible for this government to remain silent while an Indian is in problem elsewhere” External Affairs Minister Sushma Swaraj , speaking in Parliament on attacks on Indians in the US CAIRN ASKED TO PAY 10,247 CRORE TAX The Income Tax Appellate Tribunal has ruled that Cairn UK Holdings will have to pay `10,247 crore short-term capital gains tax on an internal share sale done 10 years ago. The tribunal, however, rejected the tax department’s demand for interest of `18,800 crore. SBI FINE WITH FARM LOAN HAIRCUT The country’s largest bank, State Bank of India (SBI), has said that it will allow one-time settlement for tractor and farm equipment loans. These loans account for `6,000 crore doubtful/loss assets. The…

21 LABOUR REFORMS WHAT: Summit on Labour and Product Market Reforms in Advanced Economies WHEN: March 21, Tokyo WHAT TO LOOK FOR: Cohosted by the IMF and Asian Development Bank Institute, the meet will discuss new empirical analysis, numerical simulations, and case studies for assessing the fiscal impact of labour and product market reforms in advanced economies. It will also evaluate the case for complementing reforms with fiscal support. 21-23 BACK TO BASICS WHAT: Jakarta Basic Education Conference 2017 WHEN: March 21-23, Jakarta, Indonesia WHAT TO LOOK FOR: The World Bank forum will aim to share lessons from best practices and “excellent systems” in basic education globally as well as to facilitate new networks and partnerships. Participants at the conference will include government officials and education, experts from the World…

BOTH THE CONGRESS IN PUNJAB AND THE BJP IN UP HAVE PROMISED TO WAIVE OFF LOANS TO SMALL & MARGINAL FARMERS AND PROVIDE THEM INTEREST-FREE LOANS... ON MARCH 16, IN THE LOK SABHA, AGRICULTURE MINISTER RADHA MOHAN SINGH SAID THE UNION GOVERNMENT WOULD BEAR THE BURDEN OF THE UP GOVERNMENT. BUT THERE IS SILENCE ON PUNJAB UTTARAKHAND High unemployment rate (6.1%) Crises: Low investments in infrastructure, hydro-power projects hit by court cases PUNJAB Debt: 1,25,320 crore ( 31.4% of GSDP) Crises: Agriculture growth is slowing while industry has lost competitiveness GOA Debt-to-GSDP ratio has been rising sharply. Crises: Mining sector is down; need for better coordination with the Centre UTTAR PRADESH Debt: 3,27,470 crore (30.1% of GSDP) Crises: Bundelkhand has been facing drought year after year; industrial clusters in places…

IN 2017, FIIs HAVE INVESTED $3.7 BILLION, WHILE MUTUAL FUNDS HAVE PUMPED IN CLOSE TO $1 BILLION In the past one year, Pramod Gubbi, Head, Equities, Ambit Capital, has reduced his monthly investment in equity mutual funds by 75 per cent. “Fundamentals don’t support valuations. It’s not a cheap market. We have suggested to our investors to book profits and enter when markets correct.” But markets don’t seem to be obliging Gubbi. The main stock indices hit a 52-week high on March 17, when the BSE Sensex, at 29,824, was at a two-year high, just 200 points short of the all-time high of March 5, 2015. “Fund flows, sentiment and fundamentals are working in favour of markets,” says Nilesh Shah, Managing Director & CEO, Kotak Mutual Fund. He says three…