Vodafone Idea Secures Vendor Support Amidst Delays, India’s Renewable Energy Growth, Amaravati’s IT Capital Ambitions, India-US Trade Cooperation, and More

Vodafone Idea Secures Vendor Support Amidst Delays

Vodafone Idea (Vi) is confident that key operational creditors, including Nokia, Ericsson, and Indus, will continue their support despite delays in dues clearance. Vi’s upcoming 4G and 5G projects are expected to create new business opportunities for these partners. Vi plans a Rs 55,000 crore capex for network expansion over the next three years. However, Bharti Airtel’s Sunil Mittal emphasized Vi must settle all dues with Indus for future infrastructure access.

Operational Creditors Explained

Operational creditors are entities or individuals that a company owes money to for goods or services provided. Unlike financial creditors who lend money, operational creditors supply essential items or services necessary for the company’s operations. In Vodafone Idea’s case, operational creditors include network equipment suppliers like Nokia and Ericsson, and tower vendors like Indus. Their support is crucial for Vi’s infrastructure and expansion plans, particularly with the upcoming 4G and 5G rollouts.

Learn more↗

Source: Economic Times

India to Add 30-35 GW Renewable Energy Capacity in FY25

India is projected to add 30-35 GW of renewable energy capacity in FY25, significantly up from last year’s 18.4 GW addition. Renewable sources made up 71% of the 26 GW power capacity added in FY24. Nodal agencies plan to auction 50 GW of renewable capacity this year. Moody’s estimates India needs $190-215 billion to reach its 500 GW renewable target by 2030, with significant investments in transmission, distribution, and storage.

Firm and Dispatchable Renewable Energy (FDRE)

FDRE refers to renewable energy sources that can be programmed to supply power based on demand, integrating energy storage systems to ensure round-the-clock availability. Unlike traditional renewable sources that are variable, FDRE offers a reliable and consistent power supply, making it a viable alternative to coal and hydro-based technologies. This innovation is crucial for stabilizing the power grid and enhancing the utility of renewable energy.

Learn more↗

Source: Economic Times

Amaravati Poised to Become Andhra Pradesh’s Greenfield IT Capital

Andhra Pradesh’s Chief Minister, N Chandrababu Naidu, announced Amaravati as the state’s new capital, focusing on sustainability and tourism. Experts predict significant growth in IT, tourism, and agriculture sectors, bolstered by the city’s strategic location on the Krishna River. Amaravati aims for a $23-35 billion investment in real estate and infrastructure, supported by robust water resources and planned smart city features, driving the region’s economic resurgence.

Greenfield Development

A greenfield development refers to building projects on undeveloped land, starting from scratch without existing structures. This allows planners to implement modern infrastructure, sustainable practices, and smart city technologies from the ground up. Amaravati’s greenfield development aims to create a self-sustaining, eco-friendly urban environment, promoting economic growth and improving residents’ quality of life.

Learn more↗

Source: LiveMint

India and US Commit to Enhancing Trade and Tech Cooperation

India and the US pledged to tackle barriers in strategic trade, technology, and industrial cooperation during NSA Jake Sullivan’s visit to New Delhi. National security advisors Ajit Doval and Sullivan launched a semiconductor partnership and agreed to co-invest in critical minerals projects. The nations aim to diversify supply chains and prevent technology leakage to countries of concern. Discussions also included co-producing defense systems and enhancing bilateral ties amid rising concerns over China.

Critical and Emerging Technology (CET)

Critical and Emerging Technology (CET) refers to advanced and strategically important technologies that drive economic and military competitiveness. These include artificial intelligence, semiconductors, quantum computing, and advanced materials. The India-US CET initiative aims to foster collaboration, prevent technology leakage, and build resilient supply chains, enhancing both nations’ strategic capabilities and economic security.

Learn more↗

Source: Reuters

Nirmala Sitharaman to Announce Union Budget on July 22

Finance Minister Nirmala Sitharaman is expected to present the Union Budget 2024-25 on July 22, following the first session of the 18th Lok Sabha. Key expectations include tax reforms, infrastructure development, and increased public capital expenditure. The logistics industry anticipates a continued focus on growth policies and financial incentives. Additionally, CII calls for income tax relief for the lowest slab to counter high inflation, aiming to boost middle-class savings and consumption growth.

What is the Union Budget?

The Union Budget is an annual financial statement presented by the government detailing its estimated revenue and expenditure for the upcoming fiscal year. It includes policies and measures aimed at economic development, tax reforms, and public welfare. The budget’s purpose is to allocate resources efficiently, manage public funds, and promote economic stability and growth.

Learn more↗

Source: Financial Express

8th Pay Commission: Proposal to Revise Pay and Allowances Submitted

The Modi government has received a proposal from the All India Railwaymen’s Federation (AIRF) to establish the 8th Central Pay Commission, aiming to revise the pay, allowances, and pensions for over 1 crore central government employees and pensioners. The last, 7th Pay Commission, implemented in January 2016, set the minimum pay at Rs 18,000, which AIRF argues is insufficient. They demand an increase to Rs 26,000, citing inflation and rising living costs.

What is the Fitment Factor?

The fitment factor is a multiplier used to calculate the revised salaries of government employees under a new pay commission. It adjusts the current pay to align with the proposed pay scale. For instance, the 7th Pay Commission used a fitment factor of 2.57, resulting in a minimum pay of Rs 18,000. The 8th Pay Commission is expected to recommend a higher fitment factor to account for inflation and increased living costs.

Learn more↗

Source: Financial Express

Budget 2024: Modi Govt Plans Income Tax Cuts for High Earners

The Modi government is considering reducing income tax rates for individuals earning over ₹15 lakh annually. The new rates might be announced in July during the full Union Budget presentation for FY25 by Finance Minister Nirmala Sitharaman. A potential cut aims to boost consumption and increase middle-class savings. The current system taxes incomes up to ₹15 lakh at 5-20%, and above ₹15 lakh at 30%, which might be revised to ease the tax burden.

What is Schedule AL?

Schedule AL is a section in the income tax return form where individuals must declare their assets if their income exceeds ₹50 lakh annually. It includes details of immovable property, financial assets, and liabilities. This schedule aims to increase transparency and prevent tax evasion.

Learn more↗

Source: Live Mint

Ex-CEA Subramanian Rebukes Economist’s View on Corruption as Economic Grease

Former Chief Economic Advisor Krishnamurthy Subramanian criticized economist Saloni Khanna’s argument that corruption acts as “grease for the economy” and should continue. Khanna, in a June 13 podcast, suggested that an IAS officer’s salary of Rs 80,000-90,000 is insufficient, implying that corruption aids in economic productivity. Subramanian rejected this view, labeling it a “bad argument,” and highlighted the flawed theoretical models that support such claims, urging the public to disregard them.

What is a Partial Equilibrium Model?

A partial equilibrium model analyzes the equilibrium condition in a single market or sector without considering the broader economy’s interconnections. It simplifies the analysis by focusing on one factor or variable, often ignoring external impacts and larger sociological implications.

Learn more↗

Source: Business Today

Vivo to Launch ₹3,000 Crore Manufacturing Facility in India

Chinese smartphone maker Vivo will open a ₹3,000 crore mobile phone manufacturing facility in India next month. Located in Greater Noida, the plant boasts an annual capacity of 120 million devices, rivalling Samsung’s facility. Vivo seeks an Indian joint venture partner and has engaged in talks with the Tata Group, Murugappa Group, and Dixon Technologies. Despite ongoing discussions, no final agreements have been reached.

Joint Venture (JV) Explained

A joint venture (JV) is a business arrangement where two or more parties agree to pool their resources to accomplish a specific task. Each party in the JV is responsible for profits, losses, and costs associated with it. However, the venture is its own entity, separate from the participants’ other business interests.

Learn more↗

Source: The Economic Times

LIC’s AUM Hits ₹50 Lakh Crore, Doubling Pakistan’s GDP

Life Insurance Corporation of India (LIC) now manages ₹51.21 lakh crore ($616 billion) in assets, nearly double Pakistan’s GDP of $338.24 billion. LIC’s AUM surpasses the economies of Denmark and Singapore. Following a 16.48% year-on-year surge, LIC’s fund size exceeds the combined GDPs of Pakistan, Nepal, and Sri Lanka. LIC shares have also delivered a 71.74% return over the past year, reflecting strong market performance.

Assets Under Management (AUM) Explained

Assets under management (AUM) refer to the total market value of the investments that a financial institution manages on behalf of clients. It includes funds in mutual funds, pension funds, and other managed accounts, reflecting the firm’s size and investment capability.

Learn more↗

Source: Financial Express

Onion Buffer Stock Procurement Falls Short by 90%

The Indian government’s procurement of onions for buffer stock creation has reached less than 10% of its 5 lakh tonnes target for FY25, due to election delays and low purchase rates discouraging farmers. June marks the end of peak rabi season onion arrivals, making future procurement difficult. Last year, 6.4 lakh tonnes were procured. The National Agricultural Cooperative Marketing Federation and National Co-operative Consumers’ Federation oversee procurement, but limited storage hampers efforts.

Price Stabilisation Explained

Price stabilisation refers to government efforts to maintain stable prices for essential commodities, such as onions, to protect both consumers and producers from extreme price fluctuations. This often involves creating buffer stocks, where surplus produce is stored during periods of low demand and released during shortages to balance prices.

Learn more↗

Source: The Economic Times

Sensex to Hit 82,000 in 12 Months Amid Macro Stability: Morgan Stanley

Morgan Stanley forecasts the BSE Sensex to reach 82,000 within a year, reflecting a 14% upside, driven by India’s macro stability and earnings growth forecast through FY26, which is 500 basis points above consensus. The third term of PM Narendra Modi promises policy predictability and structural reforms, bolstering market confidence. However, risks include global slowdown, bureaucratic constraints, and sector-specific challenges.

Earnings Growth Explained

Earnings growth refers to the annual increase in a company’s profit, which is crucial for investors as it indicates the company’s financial health and potential for future growth. Higher earnings growth often leads to higher stock prices and better returns for shareholders.

Learn more↗

Source: Live Mint