India-Russia Defense Partnership Strengthened with Military Logistics Pact, GST Council’s Key Decisions, Zepto’s Major Funding Round, and More.

India and Russia to Boost Defense Partnership with Military Logistics Pact

India and Russia are set to sign a military logistics agreement, allowing access to each other’s military facilities. This pact aims to streamline procedures for joint exercises and enhance collective Eurasian security amid rising geopolitical tensions. It will facilitate Russian Navy operations in the Indian Ocean and Indian operations in the Arctic. This agreement reflects India’s strategy to counterbalance China’s regional presence and expand its defense partnerships.

Military Logistics Agreement

A military logistics agreement allows countries to access each other’s military bases for supplies and refueling. This enhances operational efficiency and supports joint exercises, increasing interoperability between forces. It is crucial for strategic mobility and cooperation in global security.

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Source: The Economic Times

Key Takeaways from the 53rd GST Council Meeting: Major Exemptions and Aadhaar Rollout

The 53rd GST Council meeting, led by Finance Minister Nirmala Sitharaman, proposed waiving interest and penalties for demand notices under Section 73 of the CGST Act for FY 2017-20, if paid by March 31, 2025. Exemptions for Indian Railways services, SEZ imports, and new GST rates on goods and services were also recommended. Additionally, a nationwide rollout of Aadhaar-based authentication for GST registration was introduced to combat fraud.

Input Tax Credit (ITC)

Input Tax Credit allows businesses to deduct the tax they’ve paid on inputs from their tax liability on outputs, ensuring that tax is only paid on the value added. This system helps prevent tax cascading and reduces overall tax liability for businesses.

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Source: Business Today

Zepto Secures $665 Million, Doubling Valuation to $3.6 Billion

Zepto raised $665 million, doubling its valuation to $3.6 billion. Founded by Stanford dropouts Aadit Palicha and Kaivalya Vohra, the quick-commerce startup plans to expand its dark stores to 700 and enter ten new cities. Backed by investors including DST Global and Avenir Growth Capital, Zepto aims to go public next year. The company is focusing on growth and profitability, with 75% of its dark stores already profitable.

Quick Commerce

Quick commerce (q-commerce) refers to the rapid delivery of small orders, typically within 10-30 minutes. It relies on local micro-warehouses or dark stores to achieve speedy deliveries. This model caters to urban consumers’ demand for instant gratification and convenience, especially for groceries and essentials.

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Source: Economic Times

Devgad’s Mango Farmers Boost Production with Technology

Devgad’s mango farmers are leveraging technology to enhance productivity and address challenges in mango cultivation. By integrating tech solutions such as automated irrigation, pest control, and real-time monitoring, they have improved yield quality and quantity. This initiative not only benefits the farmers but also ensures a steady supply of mangoes to consumers, combating issues like pest infestations and water scarcity. These advancements underscore the critical role of technology in modernizing agriculture and supporting farmers’ livelihoods.

Automated Irrigation

Automated irrigation systems use technology to control watering schedules, ensuring crops receive the right amount of water at the right time. This reduces water waste, increases efficiency, and can improve crop yields.

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Source: Economic Times

GST Council Implements Nationwide Biometric Authentication and Key Exemptions

In its 53rd meeting, the GST Council introduced biometric Aadhaar authentication to combat fake invoicing and exempted railway services like platform tickets and waiting rooms from GST. Other significant decisions include a uniform 12% GST rate on milk cans and carton boxes, retrospective amendments to input tax credit timelines, and an exemption for hostel accommodation up to Rs 20,000 per month. These changes aim to enhance tax compliance and ease operational processes.

GST Biometric Authentication

The GST Council has mandated Aadhaar-based biometric authentication for new GST registrations across India. This measure aims to combat fake invoicing and fraudulent input tax credit claims. By verifying the identity of businesses through biometric data, authorities can reduce tax evasion and improve compliance. Biometric authentication involves using unique physical traits like fingerprints or iris scans to confirm an individual’s identity, making it a secure and reliable method for authentication in tax administration.

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Source: Economic Times

OpenAI CTO Sparks Debate on AI’s Impact on Creative Jobs

During a visit to Dartmouth’s Thayer School of Engineering, OpenAI CTO Mira Murati suggested some creative jobs might disappear due to AI advancements, implying these roles might have been inefficient or unnecessary. Murati emphasized AI tools like ChatGPT and DALL-E enhance human creativity rather than replace it. She highlighted AI’s potential to democratize creativity and stressed the need for careful regulation to manage AI’s evolving capabilities.

AI’s Impact on Creative Jobs

Mira Murati discussed the potential for AI to replace some creative jobs, suggesting that these roles might have been inefficient. However, she emphasized that AI tools can enhance human creativity by providing new ways to express and solve problems. Murati highlighted AI’s ability to democratize creativity, making it accessible to those without prior training. This can expand opportunities for learning and artistic expression.

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Source: Business Today

FM Sitharaman Announces Nationwide Biometric Authentication to Curb Fake Invoicing

At the 53rd GST Council meeting, Finance Minister Nirmala Sitharaman announced a pan-India rollout of biometric Aadhaar authentication to combat fake invoicing and fraudulent input tax credit claims. The initiative aims to enhance tax compliance and integrity. This meeting, the first under Modi government 3.0, included key financial officials and ministers from various states and UTs.

Biometric Aadhaar Authentication

Biometric Aadhaar authentication involves using unique physical traits, like fingerprints or iris scans, to verify an individual’s identity. This system, announced for nationwide implementation, aims to prevent fraudulent activities in the GST framework by ensuring that only legitimate businesses can claim input tax credits. This measure is expected to significantly reduce instances of tax evasion and improve the overall integrity of the tax system.

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Source: Money Control

Government Buys 71,000 Tonnes of Onions for Buffer Stock Amid Price Rise

The Indian government has procured 71,000 tonnes of onions for buffer stock, aiming to stabilize prices with a target of 5 lakh tonnes. The all-India average retail price is Rs 38.67 per kg. Despite a 20% decline in rabi production, the government expects prices to ease with the monsoon’s progress. Measures like export duties and minimum export prices have helped maintain stable domestic onion availability.

Buffer Stock in Agriculture

A buffer stock is a reserve of a commodity, such as onions, maintained by the government to stabilize prices and ensure availability. The government buys these commodities during periods of surplus and releases them during shortages. This helps prevent extreme price fluctuations, ensuring that essential goods remain affordable for consumers, especially during adverse weather conditions or production shortfalls.

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Source: Economic Times

AI Set to Revolutionize Global Banking, Boosting Profits by $170 Billion by 2028: CITI Report

Artificial intelligence (AI) is poised to revolutionize global banking, potentially boosting profits by $170 billion or 9% by 2028, according to a CITI report. AI’s impact includes combating financial fraud, enhancing security measures, and improving developer productivity. Early adopters of AI regulation include the EU, China, and Singapore, while the US lags behind. India’s stance on AI governance has fluctuated. The report likens AI’s transformative potential to the industrial revolution’s steam engine.

General-Purpose Technology (GPT) Explained

General-Purpose Technology (GPT) refers to innovations with widespread applications across industries, significantly impacting economic growth and productivity. Examples include the steam engine and the internet. AI is considered the GPT of the 2020s-2030s, with its potential to enhance operations, security, and decision-making in various sectors, particularly finance.

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Source: Economic Times

Government Approves ₹13,595 Crore Transmission Projects for Renewable Energy

The Indian government has approved two interstate transmission projects worth ₹13,595 crore to evacuate 9 GW of renewable energy from Rajasthan and Karnataka. These projects aim to contribute to the target of 500 GW renewable energy capacity by 2030. The Rajasthan project, costing ₹12,241 crore, will evacuate 4.5 GW, while the Karnataka project will also handle 4.5 GW at ₹1,354 crore. Implementation will follow tariff-based competitive bidding.

Tariff-Based Competitive Bidding Explained

Tariff-based competitive bidding is a process where power transmission projects are awarded to the bidder who offers to build and operate the project at the lowest tariff. This method aims to ensure cost efficiency, transparency, and competition in project implementation.

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Source: Economic Times

FPIs Snap 2-Month Selling Streak, Invest ₹12,170 Crore in Indian Equities

Foreign portfolio investors (FPIs) ended their two-month selling streak, investing ₹12,170 crore in Indian equities. Net investments stood at ₹25,085 crore as of June 21, considering debt, hybrid, debt-VRR, and equities. The decline in outflows is attributed to decreased market volatility (VIX), improving sentiment ahead of the 2024 Lok Sabha elections, and global economic cues. The total debt inflows reached ₹10,575 crore by mid-June.

Understanding VIX Volatility Index

The VIX Volatility Index measures market expectations of near-term volatility conveyed by stock index option prices. Often referred to as the “fear gauge,” a lower VIX indicates reduced market uncertainty and greater investor confidence.

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Source: Live Mint

Allied Blenders & Distillers Ltd IPO Overview

Allied Blenders and Distillers Limited is launching its IPO from June 25 to June 27, 2024. The company, known for its flagship brand Officer’s Choice Whisky, aims to raise ₹1,500 crore by offering 53,380,783 shares at ₹267-₹281 each. The proceeds will be used to repay debts and for general corporate purposes. The listing will be on BSE and NSE.

Book Built Issue IPO Explained

Book built issue IPO is a method where the price of the IPO is determined through bids from investors. The company sets a price band, and investors bid within this range. The final price is set based on the demand generated.

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Source: Jagstamp