Market Jitters Amid BCCI’s ₹125 Crore Prize, Apple’s New AirPods, and More.

Vodafone Idea Faces User Exodus Amid Tariff Hikes

Vodafone Idea (Vi) is struggling to retain its 2G subscribers following recent tariff hikes, as rivals Reliance Jio and Bharti Airtel maintain lower rates for entry-level users. Analysts indicate Vi’s 86.3 million non-4G users, about 40% of its total subscribers, are at risk. Jio’s unchanged 4G feature phone rates and Airtel’s minimal adjustments highlight their efforts to capture Vi’s low-end customer base, potentially worsening Vi’s challenges.

Tariff Hike Impact on Subscriber Retention

Tariff hikes often lead to subscriber churn, especially among price-sensitive users. In this case, Reliance Jio and Bharti Airtel’s strategic pricing for entry-level plans can attract Vodafone Idea’s 2G users, who might switch to competitors offering more affordable rates. Vi’s attempts to upgrade users from 2G to 4G and raise ARPU (Average Revenue Per User) face significant challenges from these competitive strategies.

Learn more↗

Source: The Economic Times

Renewables Can Slash 17% of India’s Heavy Industry Emissions by 2030

A report from Ember indicates that renewable energy can cut 17% of India’s heavy industry emissions by 2030. Achieving this requires 120 GW of dedicated renewable energy. Currently, 11% of heavy industry energy consumption is electric; this must rise to meet growing demand, potentially avoiding 180 Mt of CO2 emissions. Renewable electrification offers cost benefits, improved air quality, and enhanced grid flexibility.

Carbon Border Adjustment Mechanism (CBAM)

The CBAM is a regulatory framework by the EU that imposes a carbon tariff on imports. This mechanism aims to level the playing field by ensuring that imported goods face the same carbon costs as those produced within the EU. For India, complying with CBAM is crucial for maintaining competitiveness in the EU market, driving the push for renewables in heavy industries.

Learn more↗

Source: Business Today

India’s Mobile Phone Exports Surge by 40%, Grabbing 50% of China’s and Vietnam’s Decline

India’s mobile phone exports surged by 40.5% to $15.6 billion in FY24, capturing 50% of the shipment decline from China and Vietnam. China’s mobile phone exports fell by 2.78%, while Vietnam saw a 17.6% drop. India’s success, driven by the smartphone Production-Linked Incentive (PLI) scheme, highlights its growing influence in the global mobile phone market, with iPhone production and exports playing a significant role.

Production-Linked Incentive (PLI) Scheme

The PLI scheme is a government initiative to boost manufacturing and exports by offering financial incentives. Targeting various sectors, it aims to attract investments, promote local production, and reduce dependency on imports. In the mobile phone industry, the scheme has encouraged companies like Apple to expand their manufacturing base in India, contributing to significant growth in exports.

Learn more↗

Source: The Economic Times

Warren Buffett’s Fortune to Be Managed by His Children, Excludes Gates Foundation

Warren Buffett, 93, has revised his will, directing his wealth to a new charitable trust managed by his three children, ending posthumous donations to the Gates Foundation. He expressed confidence in his children’s values and their ability to manage his legacy. Previously, Buffett planned to donate over 99% of his estate to the Gates Foundation and four family charities. During his lifetime, he continues to support the Gates Foundation.

Charitable Trust

A charitable trust is a legal arrangement where assets are managed by trustees for charitable purposes. It provides tax benefits and ensures the donor’s philanthropic goals are met. In Buffett’s case, the new trust managed by his children will oversee the distribution of his wealth to various charitable initiatives, reflecting his confidence in their stewardship and values.

Learn more↗

Source: Business Today

BCCI Announces ₹125 Crore Prize for Team India’s T20 World Cup Triumph

The Board of Control for Cricket in India (BCCI) has announced a ₹125 crore prize for Team India following their ICC T20 World Cup victory. This win, led by Rohit Sharma, ended an 11-year ICC trophy drought. India defeated South Africa by seven runs in a thrilling final, showcasing exceptional talent and sportsmanship. Jay Shah praised the team’s dedication, resilience, and remarkable performances throughout the tournament.

Prize Money in Cricket Tournaments

Prize money in cricket tournaments is a significant financial reward given to teams and players for their performance. It is usually funded by the cricket boards, sponsors, and sometimes the International Cricket Council (ICC). This money is often distributed among players, coaches, and support staff. Such incentives aim to boost morale, recognize excellence, and promote the sport. For instance, BCCI announced ₹125 crore for Team India’s T20 World Cup win.

Learn more↗

Source: Economic Times

Apple to Start Mass Production of AirPods with IR Camera in 2026

Apple plans to begin mass production of AirPods with infrared (IR) camera sensors in 2026, as reported by KGI Securities analyst Ming Chi Kuo. These AirPods are expected to integrate with Vision Pro devices and support Air Gestures. The IR camera will enable environmental detection and interaction capabilities. Foxconn aims to produce around 10 million pairs. This innovation follows the recent upgrades of AirPods Pro 2, which included Magsafe charging and dust protection.

What is an Infrared Camera?

An infrared (IR) camera captures images using infrared light, which is invisible to the human eye but detectable as heat. These cameras are commonly used in various devices for facial recognition (like Face ID on iPhones), environmental sensing, and night vision. In AirPods, IR cameras could enable advanced gesture control and seamless integration with augmented reality (AR) devices like Apple’s Vision Pro.

Learn more↗

Source: Live Mint

Supreme Court Verdict Leads to Taxing Times for Electoral Bond Buyers

Following the Supreme Court’s February verdict, entities making political contributions via electoral bonds face potential reopening of past cases. These buyers seek protection from excessive investigations to avoid legal actions. The ruling has heightened scrutiny on political donations, emphasizing transparency and compliance with tax regulations, causing concern among contributors about retrospective inquiries.

What are Electoral Bonds?

Electoral bonds are financial instruments used in India to donate money to political parties. Introduced in 2018, they aim to ensure transparent political funding while maintaining donor anonymity. Purchased from authorized banks, these bonds can be donated to registered political parties, which can then redeem them for funds. The Supreme Court ruling may increase scrutiny, raising concerns about potential legal and tax implications for donors.

Learn more↗

Source: The Economic Times

China’s Factory Activity Contracts Again, Raising Economic Concerns

China’s factory activity contracted for the second consecutive month in June, with the manufacturing purchasing manager index at 49.5, indicating a slowdown. New orders fell to 49.5, while export orders remained at 48.3. The non-manufacturing sector also declined, with construction and services dropping to 50.5. Trade tensions and weak domestic demand are key challenges, threatening China’s 5% growth target. Analysts suggest more fiscal measures might be needed to bolster the economy.

What is a Purchasing Manager Index (PMI)?

A Purchasing Manager Index (PMI) measures the economic health of the manufacturing sector. It is based on surveys of private sector companies, covering aspects such as new orders, inventory levels, production, supplier deliveries, and employment. A PMI above 50 indicates expansion, while below 50 signifies contraction. It helps investors, analysts, and policymakers gauge economic trends and make informed decisions.

Learn more↗

Source: CNBCTV18

Incomplete Transmission Could Delay RBI’s Rate Reversal

High food inflation and incomplete transmission of the 250 basis point policy rate hikes since May 2022 could delay the Reserve Bank of India’s (RBI) rate cut. Transmission through loan and deposit rates varied between 111 and 245 bps until May 2024, except for loans linked to external benchmarks, which had immediate full transmission. The RBI has kept its repo rate at 6.5% for eight consecutive policies amid inflation concerns.

What is Incomplete Transmission?

Incomplete transmission refers to the situation where changes in the central bank’s policy rates do not fully pass through to the interest rates charged by banks on loans and deposits. This can be due to various factors, such as market conditions, banks’ financial health, or regulatory constraints, leading to a delayed or partial impact on the broader economy.

Learn more↗

Source: The Economic Times

FY25 Monetisation Target Raised to Rs 2 Trillion

The Indian government aims to raise its monetisation target to Rs 2 trillion for FY25, up from Rs 1.67 trillion. This ambitious move leverages robust revenue potential from coal and mining sectors, expected to fetch over Rs 61,000 crore. The National Highways Authority of India (NHAI) plans to monetise 33 highway stretches, potentially raising Rs 54,000-60,000 crore. This effort supports infrastructure and welfare funding amid budget constraints.

What is Asset Monetisation?

Asset monetisation refers to the process of converting existing public assets into cash or revenue by leasing them out to private entities. This approach allows the government to generate funds without selling the assets outright, ensuring continued public ownership while leveraging private sector efficiency.

Learn more↗

Source: Financial Express

Banks Intensify Scrutiny on Accounts to Combat ‘Money Mules’

Banks are heightening vigilance on new sole proprietorship and individual current accounts to curb money mule activities used in laundering and digital frauds. Measures include senior-level approval for account openings, site verification visits, and enhanced document validation. These efforts aim to address the surge in mule accounts since mid-2023, ensuring transactions align with legitimate business activities and deterring fraudsters’ evolving tactics.

What Are Money Mules?

Money mules are individuals who allow their bank accounts to be used to transfer illicit funds on behalf of criminals. These accounts help launder money, often from illegal activities, by creating a chain of transactions that obscure the money’s origin before it reaches the fraudster or exits the financial system.

Learn more↗

Source: The Economic Times

Capital Gains Tax Rejig Deferred to FY26 Budget

The Indian government is deferring the restructuring of capital gains taxes to the FY26 Budget to avoid market volatility and potential negative investor signals. Current complexities in tax rates and holding periods across asset classes necessitate this review. Long-term capital gains on equities are taxed at 10%, while other assets are taxed at 20% with indexation benefits. The July Budget 2024 will not include these changes, focusing instead on maintaining market stability.

What is Indexation Benefit?

Indexation adjusts the purchase cost of an asset for inflation, reducing the taxable capital gain when the asset is sold. This benefit is typically applied to long-term capital gains, ensuring that taxes reflect the real increase in value rather than nominal gains caused by inflation.

Learn more↗

Source: Financial Express