A coalition of prominent shareholders, led by tech investor Prosus, is ramping up its push to oust the founders of Indian edtech giant Byju's and initiate a leadership overhaul.<o:p></o:p>

The once-celebrated startup, controlled by billionaire Byju Raveendran and valued at $22 billion in 2022, has recently been grappling with a series of setbacks, including the resignations of its auditor Deloitte and key board members. <o:p></o:p>

A lawsuit in the US challenging loan terms and payment has further fuelled the company's struggles.<o:p></o:p>

Byju's, which has witnessed a downturn in fortunes, marked by mass layoffs and a substantial drop in valuation, is now at the centre of a shareholder revolt. <o:p></o:p>

The concerned shareholders, expressing apprehensions about the future stability of the company, released a statement, demanding a comprehensive resolution to "outstanding governance, financial mismanagement, and compliance issues." <o:p></o:p>

They are advocating for a restructuring of the Board of Directors, aiming to dilute the founders' control, and a change in the company's leadership.<o:p></o:p>

Prosus, holding approximately 9 per cent stake in Byju's, disclosed the statement and asserted that it enjoys support from "a number of major investors," although they refrained from specifying names. <o:p></o:p>

Other backers of this initiative reportedly include Sofina and Peak XV, formerly known as Sequoia Capital India.<o:p></o:p>

The shareholders' concerns gained momentum following the resignation of Byju's auditor Deloitte last year. The departure was triggered by the edtech company's delay in presenting financial statements for the year ending March 31, 2022. <o:p></o:p>

Deloitte expressed frustration, stating that despite numerous letters, essential documents were not provided by the company's board. <o:p></o:p>

Additionally, board members affiliated with Peak XV, Prosus, and Chan Zuckerberg Initiative also stepped down from Byju's board in the same period.<o:p></o:p>

As the tug-of-war intensifies, some of Byju's investors are asserting that the company's valuation has experienced a substantial dip, plummeting to a range between $1 billion and $3 billion. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

A coalition of prominent shareholders, led by tech investor Prosus, is ramping up its push to oust the founders of Indian edtech giant Byju's and initiate a leadership overhaul.

A coalition of prominent shareholders, led by tech investor Prosus, is ramping up its push to oust the founders of Indian edtech giant Byju's and initiate a leadership overhaul. The once-celebrated startup, controlled by billionaire Byju Raveendran and valued at $22 billion in 2022, has recently been grappling with a series of setbacks, including the resignations of its auditor Deloitte and key board members. A lawsuit in the US challenging loan terms and payment has further fuelled the company's struggles. Byju's, which has witnessed a downturn in fortunes, marked by mass layoffs and a substantial drop in valuation, is now at the centre of a shareholder revolt. The concerned shareholders, expressing apprehensions about the future stability of the company, released a statement, demanding a comprehensive resolution to "outstanding governance, financial mismanagement, and compliance issues." They are advocating for a restructuring of the Board of Directors, aiming to dilute the founders' control, and a change in the company's leadership. Prosus, holding approximately 9 per cent stake in Byju's, disclosed the statement and asserted that it enjoys support from "a number of major investors," although they refrained from specifying names. Other backers of this initiative reportedly include Sofina and Peak XV, formerly known as Sequoia Capital India. The shareholders' concerns gained momentum following the resignation of Byju's auditor Deloitte last year. The departure was triggered by the edtech company's delay in presenting financial statements for the year ending March 31, 2022. Deloitte expressed frustration, stating that despite numerous letters, essential documents were not provided by the company's board. Additionally, board members affiliated with Peak XV, Prosus, and Chan Zuckerberg Initiative also stepped down from Byju's board in the same period. As the tug-of-war intensifies, some of Byju's investors are asserting that the company's valuation has experienced a substantial dip, plummeting to a range between $1 billion and $3 billion. (With inputs from Reuters)

Prosus-led shareholders push for leadership change at Byju's: Report

The World Bank on Thursday announced innovative measures to provide swift financial assistance to member countries grappling with the aftermath of natural disasters and other crises.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The enhancements to the Crisis Preparedness and Response Toolkit will empower countries to promptly access up to 10 per cent of undisbursed funds from existing project loans or facilities dedicated to emergency response.<o:p></o:p>

“When a crisis hits, we're unprepared financially, and we're having to make all kinds of terrible trade-offs that we don't want to have to make," World Bank Managing Director for Operations, Anna Bjerde, told Reuters.<o:p></o:p>

For instance, a country with $3 billion undisbursed from a $5 billion loan portfolio could swiftly access $300 million in case of a hurricane, earthquake, or pandemic, providing a crucial liquidity injection to mitigate the impact of the crisis.<o:p></o:p>

Expanding on these reforms, the World Bank is set to increase access to pre-arranged emergency crisis financing as part of future loan programs. <o:p></o:p>

These programs will necessitate crisis-preparedness reforms and other institutional measures, contributing to the overall resilience of nations in the face of adversities.<o:p></o:p>

Additionally, the executive board of the World Bank has approved a third component, aiming to broaden the use of catastrophe insurance products. <o:p></o:p>

This includes innovative financial instruments like catastrophe bonds, which offer insurance payouts in the event of disasters meeting specific criteria.<o:p></o:p>

Jamaica has been at the forefront of utilising catastrophe bonds, and World Bank President Ajay Banga advocates for their expanded use to safeguard vulnerable countries' budgets from climate and other threats, providing them with a much-needed "peace of mind." <o:p></o:p>

Under this initiative, funds from project loans that catastrophe bonds would protect can be redirected to cover fees associated with arranging their issuance, alleviating the financial burden on the issuing countries.<o:p></o:p>

These transformative changes are part of the World Bank's broader reform efforts to amplify its mission, addressing global challenges such as climate change. <o:p></o:p>

Described as a step towards building a "better bank," these measures align with President Ajay Banga's operational improvement agenda, intending to enhance the institution's effectiveness before seeking a general capital increase from shareholders.<o:p></o:p>

In addition to the financial reforms, the World Bank is actively working to streamline its operational processes. Bjerde revealed plans to expedite the approval and disbursement of loans, aiming to reduce the average approval time from 27 months to 12 months by June 2025. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The World Bank on Thursday announced innovative measures to provide swift financial assistance to member countries grappling with the aftermath of natural disasters and other crises.

The World Bank on Thursday announced innovative measures to provide swift financial assistance to member countries grappling with the aftermath of natural disasters and other crises. This is based on a Reuters report. The enhancements to the Crisis Preparedness and Response Toolkit will empower countries to promptly access up to 10 per cent of undisbursed funds from existing project loans or facilities dedicated to emergency response. “When a crisis hits, we're unprepared financially, and we're having to make all kinds of terrible trade-offs that we don't want to have to make," World Bank Managing Director for Operations, Anna Bjerde, told Reuters. For instance, a country with $3 billion undisbursed from a $5 billion loan portfolio could swiftly access $300 million in case of a hurricane, earthquake, or pandemic, providing a crucial liquidity injection to mitigate the impact of the crisis. Expanding on these reforms, the World Bank is set to increase access to pre-arranged emergency crisis financing as part of future loan programs. These programs will necessitate crisis-preparedness reforms and other institutional measures, contributing to the overall resilience of nations in the face of adversities. Additionally, the executive board of the World Bank has approved a third component, aiming to broaden the use of catastrophe insurance products. This includes innovative financial instruments like catastrophe bonds, which offer insurance payouts in the event of disasters meeting specific criteria. Jamaica has been at the forefront of utilising catastrophe bonds, and World Bank President Ajay Banga advocates for their expanded use to safeguard vulnerable countries' budgets from climate and other threats, providing them with a much-needed "peace of mind." Under this initiative, funds from project loans that catastrophe bonds would protect can be redirected to cover fees associated with arranging their issuance, alleviating the financial burden on the issuing countries. These transformative changes are part of the World Bank's broader reform efforts to amplify its mission, addressing global challenges such as climate change. Described as a step towards building a "better bank," these measures align with President Ajay Banga's operational improvement agenda, intending to enhance the institution's effectiveness before seeking a general capital increase from shareholders. In addition to the financial reforms, the World Bank is actively working to streamline its operational processes. Bjerde revealed plans to expedite the approval and disbursement of loans, aiming to reduce the average approval time from 27 months to 12 months by June 2025. (With inputs from Reuters)

World Bank revolutionises emergency funding system for crisis-prone nations

An A-Z of budgetary terms, explained in layman’s language.&nbsp;

A:&nbsp;

Allocation:&nbsp;Amount of money set aside for specific programs or sectors.&nbsp;

Ayushman Bharat Yojana (ABY):&nbsp;Government health insurance scheme for low-income households.&nbsp;

Agriculture credit target:&nbsp;Annual target for loans provided to farmers by banks.&nbsp;

B:&nbsp;

Balanced Budget Act (BBA):&nbsp;Legislation setting fiscal deficit targets for the government.&nbsp;

Banking sector:&nbsp;Financial institutions accepting deposits and providing loans.&nbsp;

Bharat Net (BNET):&nbsp;Government scheme to provide broadband connectivity to villages.&nbsp;

C:&nbsp;

Capital expenditure (capex):&nbsp;Government spending on infrastructure and assets.&nbsp;

Central Plan Expenditure:&nbsp;A part of the budget that is allocated to specific economic and social development programs.&nbsp;

D:&nbsp;

Direct benefits transfer (DBT):&nbsp;A scheme&nbsp;to transfer subsidies directly to beneficiaries' bank accounts.&nbsp;

Direct taxes:&nbsp;Taxes levied directly on individuals and businesses, like income tax or corporate tax.&nbsp;

Deficit:&nbsp;The gap between government income and expenditure.&nbsp;

Developed Economy vs Developing Economy:&nbsp;A developed economy usually belongs to a developed country that's doing well economically and has good stability. In contrast, developing economies, previously called lesser-developed economies, face challenges like poor infrastructure, slower growth, an uneven economy, and very low personal incomes.

E:&nbsp;

Excise duty:&nbsp;Tax levied on goods produced domestically.&nbsp;

Economic Survey:&nbsp;Annual report published by the Ministry of Finance before the Budget presentation.&nbsp;

Expenditure Budget:&nbsp;Document detailing the government's planned spending for the year.&nbsp;

F:&nbsp;

Fiscal deficit:&nbsp;Difference between total government spending and total non-borrowed revenue.&nbsp;

Food Security Act (FSA):&nbsp;Law guaranteeing subsidized food grains to millions of people.&nbsp;

Finance Act:&nbsp;Legislation passed by Parliament to implement the Budget proposals.&nbsp;

G:&nbsp;

Goods and Services Tax (GST):&nbsp;Indirect tax applied to most goods and services in India.&nbsp;

Grants:&nbsp;Financial assistance provided by the government to individuals, institutions, or states.&nbsp;

Green Climate Fund (GCF):&nbsp;International fund to support developing countries in climate action.&nbsp;

H:&nbsp;

Human Development Index (HDI):&nbsp;Measure of a country's progress in health, education, and living standards.&nbsp;

Housing for All:&nbsp;Urban and rural housing schemes for low-income groups.&nbsp;

I:&nbsp;

Indirect taxes:&nbsp;Taxes levied on goods and services at various stages of production and distribution, like GST.&nbsp;

Interest rates:&nbsp;Rates charged by banks for loans or paid on investments.&nbsp;

J:&nbsp;

Jan Dhan Yojana:&nbsp;Financial inclusion scheme providing bank accounts to all households.&nbsp;

Job creation:&nbsp;Number of new jobs created in the economy during a specific period.&nbsp;

K:&nbsp;

Kisan Credit Card (KCC):&nbsp;Government scheme providing credit to farmers at subsidized interest rates.&nbsp;

Krishi Vikas Yojana (KVK):&nbsp;Scheme to provide agricultural extension services to farmers.&nbsp;

L:&nbsp;

Local Area Development (LAD) funds:&nbsp;Funds allocated to MPs for development projects in their constituencies.&nbsp;

MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act):&nbsp;Scheme guaranteeing 100 days of work per year to rural adults.&nbsp;

M:&nbsp;

Manufacturing sector:&nbsp;Industry involved in the production of goods.&nbsp;

Monetary policy:&nbsp;Government policies influencing the money supply and interest rates.&nbsp;

Micro, Small and Medium Enterprises (MSMEs):&nbsp;Sector comprising small businesses contributing to the economy.&nbsp;

N:&nbsp;

Net Domestic Product (NDP):&nbsp;Value of all final goods and services produced within a country's borders in a given year.&nbsp;

Non-tax revenue:&nbsp;Government income from sources other than taxes, like dividends or fees.&nbsp;

O:&nbsp;

Off-budget financing:&nbsp;Government financial activities not included in the official budget.&nbsp;

Open Government Platform (OGP):&nbsp;Initiative promoting transparency and citizen participation in government.&nbsp;

P:&nbsp;

Plan versus non-plan expenditure:&nbsp;Categorisation of spending based on whether it contributes to development plans.&nbsp;

Public debt:&nbsp;Total amount of money owed by the government to creditors.&nbsp;

Q:&nbsp;

Quasi-expenditure:&nbsp;Expenses not directly reflected in the budget but incurred through government guarantees or loans.&nbsp;

R:&nbsp;

Revenue deficit: The difference&nbsp;between the government's non-tax revenue and its non-debt expenditure.&nbsp;

Revenue Expenditure vs Capital Expenditure:&nbsp;Revenue expenditure refers to expenditure that occurs&nbsp;regularly, like routine expenses for running government departments and providing services. On the other hand, Capital expenditure is not regular; it is&nbsp;used for the purchase of&nbsp;assets or for giving loans and advances.

S:&nbsp;

Sarva Shiksha Abhiyan (SSA):&nbsp;Government scheme for achieving universal elementary education.&nbsp;

Samagra Shiksha:&nbsp;Scheme for holistic development of school education.&nbsp;

Subsidies:&nbsp;Financial assistance provided by the government to producers or consumers to reduce the price of goods or services.&nbsp;

Sustainable Development Goals (SDGs):&nbsp;Global goals for environmental,&nbsp;economic,&nbsp;and social development.&nbsp;

T:&nbsp;

Tax incentives:&nbsp;Special tax benefits offered by the government to encourage certain activities.&nbsp;

Tariff:&nbsp;Tax levied on imported goods.&nbsp;

Transparency:&nbsp;Openness and accountability in government policies and spending.&nbsp;

U:&nbsp;

Union Budget:&nbsp;Annual statement of the government's finances including income,&nbsp;expenditure,&nbsp;and deficit.&nbsp;

Urban development:&nbsp;Government programs aimed at improving infrastructure and services in cities.&nbsp;

V:&nbsp;

Value Added Tax (VAT):&nbsp;Indirect tax levied on the added value of goods and services at each stage of production and distribution (predecessor to GST).&nbsp;

Village Health and Sanitation Scheme (VHSN):&nbsp;Program to improve public health and sanitation in rural areas.&nbsp;

W:&nbsp;

Women empowerment:&nbsp;Government initiatives to improve women's social and economic status.&nbsp;

X:&nbsp;

X-Factor:&nbsp;Unforeseen events or changes that might impact the budget projections.&nbsp;

Y:&nbsp;

Youth development:&nbsp;Government programs aimed at developing the skills and opportunities for young people.&nbsp;

Z:&nbsp;

Zero-based budgeting:&nbsp;Approach where each expense needs to be justified from scratch,&nbsp;rather than simply rolling over previous allocations.&nbsp;

An A-Z of budgetary terms, explained in layman’s language. A: Allocation: Amount of money set aside for specific programs or sectors. Ayushman Bharat Yojana (ABY): Government health insurance scheme for low-income households.

An A-Z of budgetary terms, explained in layman’s language. A: Allocation: Amount of money set aside for specific programs or sectors. Ayushman Bharat Yojana (ABY): Government health insurance scheme for low-income households. Agriculture credit target: Annual target for loans provided to farmers by banks. B: Balanced Budget Act (BBA): Legislation setting fiscal deficit targets for the government. Banking sector: Financial institutions accepting deposits and providing loans. Bharat Net (BNET): Government scheme to provide broadband connectivity to villages. C: Capital expenditure (capex): Government spending on infrastructure and assets. Central Plan Expenditure: A part of the budget that is allocated to specific economic and social development programs. D: Direct benefits transfer (DBT): A scheme to transfer subsidies directly to beneficiaries' bank accounts. Direct taxes: Taxes levied directly on individuals and businesses, like income tax or corporate tax. Deficit: The gap between government income and expenditure. Developed Economy vs Developing Economy: A developed economy usually belongs to a developed country that's doing well economically and has good stability. In contrast, developing economies, previously called lesser-developed economies, face challenges like poor infrastructure, slower growth, an uneven economy, and very low personal incomes. E: Excise duty: Tax levied on goods produced domestically. Economic Survey: Annual report published by the Ministry of Finance before the Budget presentation. Expenditure Budget: Document detailing the government's planned spending for the year. F: Fiscal deficit: Difference between total government spending and total non-borrowed revenue. Food Security Act (FSA): Law guaranteeing subsidized food grains to millions of people. Finance Act: Legislation passed by Parliament to implement the Budget proposals. G: Goods and Services Tax (GST): Indirect tax applied to most goods and services in India. Grants: Financial assistance provided by the government to individuals, institutions, or states. Green Climate Fund (GCF): International fund to support developing countries in climate action. H: Human Development Index (HDI): Measure of a country's progress in health, education, and living standards. Housing for All: Urban and rural housing schemes for low-income groups. I: Indirect taxes: Taxes levied on goods and services at various stages of production and distribution, like GST. Interest rates: Rates charged by banks for loans or paid on investments. J: Jan Dhan Yojana: Financial inclusion scheme providing bank accounts to all households. Job creation: Number of new jobs created in the economy during a specific period. K: Kisan Credit Card (KCC): Government scheme providing credit to farmers at subsidized interest rates. Krishi Vikas Yojana (KVK): Scheme to provide agricultural extension services to farmers. L: Local Area Development (LAD) funds: Funds allocated to MPs for development projects in their constituencies. MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act): Scheme guaranteeing 100 days of work per year to rural adults. M: Manufacturing sector: Industry involved in the production of goods. Monetary policy: Government policies influencing the money supply and interest rates. Micro, Small and Medium Enterprises (MSMEs): Sector comprising small businesses contributing to the economy. N: Net Domestic Product (NDP): Value of all final goods and services produced within a country's borders in a given year. Non-tax revenue: Government income from sources other than taxes, like dividends or fees. O: Off-budget financing: Government financial activities not included in the official budget. Open Government Platform (OGP): Initiative promoting transparency and citizen participation in government. P: Plan versus non-plan expenditure: Categorisation of spending based on whether it contributes to development plans. Public debt: Total amount of money owed by the government to creditors. Q: Quasi-expenditure: Expenses not directly reflected in the budget but incurred through government guarantees or loans. R: Revenue deficit: The difference between the government's non-tax revenue and its non-debt expenditure. Revenue Expenditure vs Capital Expenditure: Revenue expenditure refers to expenditure that occurs regularly, like routine expenses for running government departments and providing services. On the other hand, Capital expenditure is not regular; it is used for the purchase of assets or for giving loans and advances. S: Sarva Shiksha Abhiyan (SSA): Government scheme for achieving universal elementary education. Samagra Shiksha: Scheme for holistic development of school education. Subsidies: Financial assistance provided by the government to producers or consumers to reduce the price of goods or services. Sustainable Development Goals (SDGs): Global goals for environmental, economic, and social development. T: Tax incentives: Special tax benefits offered by the government to encourage certain activities. Tariff: Tax levied on imported goods. Transparency: Openness and accountability in government policies and spending. U: Union Budget: Annual statement of the government's finances including income, expenditure, and deficit. Urban development: Government programs aimed at improving infrastructure and services in cities. V: Value Added Tax (VAT): Indirect tax levied on the added value of goods and services at each stage of production and distribution (predecessor to GST). Village Health and Sanitation Scheme (VHSN): Program to improve public health and sanitation in rural areas. W: Women empowerment: Government initiatives to improve women's social and economic status. X: X-Factor: Unforeseen events or changes that might impact the budget projections. Y: Youth development: Government programs aimed at developing the skills and opportunities for young people. Z: Zero-based budgeting: Approach where each expense needs to be justified from scratch, rather than simply rolling over previous allocations.

Business Jargon Buster: Budget edition 

India has recently unveiled its interim budget for the upcoming fiscal year, allocating $580 billion for various expenditures commencing on April 1. The budget, presented by Finance Minister Nirmala Sitharaman, reflects the economic priorities of the nation. But what goes into earning every rupee that contributes to this massive financial plan?

Breaking down the sources of income, it is revealed that 28 paise of every rupee comes from government borrowings. Income tax follows closely, contributing 19 paise, while Goods and Services Tax (GST) contributes 18 paise. The corporate sector adds 17 paise, and customs and excise duties together contribute 9 paise. The remaining 9 paise come from various other sources, showcasing a diverse revenue stream.

Turning the focus to expenditures, one-fifth of the government's budget goes into paying interest on loans, reflecting the economic challenge of managing existing debt. As a federal country, every 16 paise earned is shared with the states and union territories, emphasising cooperative fiscal responsibility.

Government schemes account for at least 24 paise. Pensions and subsidies make up 10 paise, while defence spending constitutes 8 paise. Finance Commission-related fund transfers and other expenses collectively take away the remaining 22 paise.

This comprehensive breakdown of how each rupee is earned and spent provides a glimpse into India's economic health and its ambitious goal to emerge as a developed country by 2047. &nbsp;

&nbsp;

India has recently unveiled its interim budget for the upcoming fiscal year, allocating $580 billion for various expenditures commencing on April 1. The budget, presented by Finance Minister Nirmala Sitharaman, reflects the economic priorities of the nation.

India has recently unveiled its interim budget for the upcoming fiscal year, allocating $580 billion for various expenditures commencing on April 1. The budget, presented by Finance Minister Nirmala Sitharaman, reflects the economic priorities of the nation. But what goes into earning every rupee that contributes to this massive financial plan? Breaking down the sources of income, it is revealed that 28 paise of every rupee comes from government borrowings. Income tax follows closely, contributing 19 paise, while Goods and Services Tax (GST) contributes 18 paise. The corporate sector adds 17 paise, and customs and excise duties together contribute 9 paise. The remaining 9 paise come from various other sources, showcasing a diverse revenue stream. Turning the focus to expenditures, one-fifth of the government's budget goes into paying interest on loans, reflecting the economic challenge of managing existing debt. As a federal country, every 16 paise earned is shared with the states and union territories, emphasising cooperative fiscal responsibility. Government schemes account for at least 24 paise. Pensions and subsidies make up 10 paise, while defence spending constitutes 8 paise. Finance Commission-related fund transfers and other expenses collectively take away the remaining 22 paise. This comprehensive breakdown of how each rupee is earned and spent provides a glimpse into India's economic health and its ambitious goal to emerge as a developed country by 2047.

Interim Budget 2024: How India's government earns and spends every rupee

As India eagerly waits for its final budget before the upcoming summer polls to be unveiled, Finance Minister Nirmala Sitharaman is set to present a roadmap that promises to shape the nation's economic landscape. Industry expectations are high, spanning from infrastructure boosts to manufacturing incentives, import duty tweaks, and crucial tax reforms.

Industry expectations from India's budget

In this budget, the Confederation of Indian Industry (CII) urges a 20 per cent increase in infrastructure spending. This bold call, coupled with demands for extended manufacturing incentives and adjustments to import duties, sets the tone for an economic blueprint aiming to propel growth in the face of political transition.

The CII outlines key priorities for India's Budget 2024, emphasising the need for growth triggers. The focus spans across vital sectors, reflecting the aspirations of industries looking for policy measures that will foster economic development.

Key focus points: Infrastructure, manufacturing &amp; import duties

As we delve into the specifics, the Confederation of Indian Industry puts forward a comprehensive set of proposals that address crucial sectors. The Federation of Indian Chambers of Commerce and Industry (FICCI) pitches for a five-year extension of the concessional tax regime for new manufacturing facilities.

The Production Linked Incentive (PLI) scheme, a flagship initiative, is anticipated to expand into labour-intensive sectors such as apparel, toys, footwear, and chemicals. Import tariffs, proposed for a three-tier duty structure, aim to address concerns where input taxes surpass final goods.

In the gems and jewellery sector, there's a call for lower import duties, while the steel industry seeks higher levies on finished steel to counter rising imports from China.

Critical tax reforms and social spending

As the budget unfolds, the CII outlines critical tax reforms, advocating for an increase in the tax exemption limit linked to inflation to boost consumption. There's a plea for consistency in the capital gains tax structure across asset classes, be it debt, equity, or immovable assets.

In the realm of social spending, a call resonates for increased allocation to healthcare and education. The CII urges the combined efforts of federal and state governments to elevate spending on these critical sectors, addressing current spending gaps.

As Finance Minister Nirmala Sitharaman reveals India's budgetary roadmap, industries across the spectrum eagerly await the details that will shape the economic trajectory of the nation.

As India eagerly waits for its final budget before the upcoming summer polls to be unveiled, Finance Minister Nirmala Sitharaman is set to present a roadmap that promises to shape the nation's economic landscape.

As India eagerly waits for its final budget before the upcoming summer polls to be unveiled, Finance Minister Nirmala Sitharaman is set to present a roadmap that promises to shape the nation's economic landscape. Industry expectations are high, spanning from infrastructure boosts to manufacturing incentives, import duty tweaks, and crucial tax reforms. Industry expectations from India's budget In this budget, the Confederation of Indian Industry (CII) urges a 20 per cent increase in infrastructure spending. This bold call, coupled with demands for extended manufacturing incentives and adjustments to import duties, sets the tone for an economic blueprint aiming to propel growth in the face of political transition. The CII outlines key priorities for India's Budget 2024, emphasising the need for growth triggers. The focus spans across vital sectors, reflecting the aspirations of industries looking for policy measures that will foster economic development. Key focus points: Infrastructure, manufacturing & import duties As we delve into the specifics, the Confederation of Indian Industry puts forward a comprehensive set of proposals that address crucial sectors. The Federation of Indian Chambers of Commerce and Industry (FICCI) pitches for a five-year extension of the concessional tax regime for new manufacturing facilities. The Production Linked Incentive (PLI) scheme, a flagship initiative, is anticipated to expand into labour-intensive sectors such as apparel, toys, footwear, and chemicals. Import tariffs, proposed for a three-tier duty structure, aim to address concerns where input taxes surpass final goods. In the gems and jewellery sector, there's a call for lower import duties, while the steel industry seeks higher levies on finished steel to counter rising imports from China. Critical tax reforms and social spending As the budget unfolds, the CII outlines critical tax reforms, advocating for an increase in the tax exemption limit linked to inflation to boost consumption. There's a plea for consistency in the capital gains tax structure across asset classes, be it debt, equity, or immovable assets. In the realm of social spending, a call resonates for increased allocation to healthcare and education. The CII urges the combined efforts of federal and state governments to elevate spending on these critical sectors, addressing current spending gaps. As Finance Minister Nirmala Sitharaman reveals India's budgetary roadmap, industries across the spectrum eagerly await the details that will shape the economic trajectory of the nation.

Budget 2024: What do industries expect?

Ahead of the upcoming general elections, Indian Prime Minister Narendra Modi's government unveiled a budget that steered clear of populist measures and focused on fiscal consolidation to attract investors.

Tax policies remained unchanged, and major subsidies on essential items like food, fertilisers, and fuel were slashed by 8 per cent, signalling a commitment to financial prudence.

Shilan Shah from Capital Economics noted, "This is an indication that the ruling BJP (Bharatiya Janata Party) is feeling fairly confident about securing another big victory in the upcoming general election."

Finance Minister Nirmala Sitharaman announced a sharp reduction in the budget gap for 2024-'25 to 5.1 per cent of GDP, while revising the current fiscal year's gap down to 5.8 per cent.

"In this budget, capital expenditure has been raised to a historic high of 11.11 trillion rupees ($133.90 billion), while keeping the fiscal deficit in control. To put it in the terms of economists, this is a sweet spot,” Modi said.

The fiscal consolidation is anticipated to bolster India's case for a higher sovereign credit rating, currently rated at BBB- by S&amp;P and Fitch, and Baa3 by Moody's.

Reuters cited Sachchidanand Shukla, an economist at Larsen &amp; Toubro, who said, "The interim budget effectively juggled the need to support growth while signalling continued fiscal consolidation. This will be reassuring for investors and rating agencies alike."

Despite the overall positive tone, concerns linger about weak spots in the economy. While India is expected to achieve a remarkable 7.3 per cent economic growth for the financial year ending March 31, 2024, consumption, constituting nearly 60 per cent of GDP, remains sluggish, growing just over 4 per cent.

Garima Kapoor, economist at Elara Capital, told Reuters, "The budget lacks consumption triggers. Thus, it is a departure from the previous pre-election vote on accounts."

Finance Minister Sitharaman addressed the need for affordable housing, pledging to build 20 million houses in the next five years, in addition to the 30 million already constructed. The budget also hinted at a new housing scheme for the middle class, although specific details were not provided.

The government's borrowing plan of 14.13 trillion Indian rupees ($170.33 billion) from the bond markets to fund its fiscal deficit came in lower than expectations. While the budget had a limited impact on equity and currency markets, the better-than-expected fiscal deficit target and lower borrowing estimates boosted gains in the bond market.

The benchmark 10-year bond yield dropped to over six-month lows, currently standing at 7.0467 per cent, and the Indian rupee, initially gaining ground, retreated after briefly rising to 82.9325 against the US dollar.

(With inputs from Reuters)

Ahead of the upcoming general elections, Indian Prime Minister Narendra Modi's government unveiled a budget that steered clear of populist measures and focused on fiscal consolidation to attract investors.

Ahead of the upcoming general elections, Indian Prime Minister Narendra Modi's government unveiled a budget that steered clear of populist measures and focused on fiscal consolidation to attract investors. Tax policies remained unchanged, and major subsidies on essential items like food, fertilisers, and fuel were slashed by 8 per cent, signalling a commitment to financial prudence. Shilan Shah from Capital Economics noted, "This is an indication that the ruling BJP (Bharatiya Janata Party) is feeling fairly confident about securing another big victory in the upcoming general election." Finance Minister Nirmala Sitharaman announced a sharp reduction in the budget gap for 2024-'25 to 5.1 per cent of GDP, while revising the current fiscal year's gap down to 5.8 per cent. "In this budget, capital expenditure has been raised to a historic high of 11.11 trillion rupees ($133.90 billion), while keeping the fiscal deficit in control. To put it in the terms of economists, this is a sweet spot,” Modi said. The fiscal consolidation is anticipated to bolster India's case for a higher sovereign credit rating, currently rated at BBB- by S&P and Fitch, and Baa3 by Moody's. Reuters cited Sachchidanand Shukla, an economist at Larsen & Toubro, who said, "The interim budget effectively juggled the need to support growth while signalling continued fiscal consolidation. This will be reassuring for investors and rating agencies alike." Despite the overall positive tone, concerns linger about weak spots in the economy. While India is expected to achieve a remarkable 7.3 per cent economic growth for the financial year ending March 31, 2024, consumption, constituting nearly 60 per cent of GDP, remains sluggish, growing just over 4 per cent. Garima Kapoor, economist at Elara Capital, told Reuters, "The budget lacks consumption triggers. Thus, it is a departure from the previous pre-election vote on accounts." Finance Minister Sitharaman addressed the need for affordable housing, pledging to build 20 million houses in the next five years, in addition to the 30 million already constructed. The budget also hinted at a new housing scheme for the middle class, although specific details were not provided. The government's borrowing plan of 14.13 trillion Indian rupees ($170.33 billion) from the bond markets to fund its fiscal deficit came in lower than expectations. While the budget had a limited impact on equity and currency markets, the better-than-expected fiscal deficit target and lower borrowing estimates boosted gains in the bond market. The benchmark 10-year bond yield dropped to over six-month lows, currently standing at 7.0467 per cent, and the Indian rupee, initially gaining ground, retreated after briefly rising to 82.9325 against the US dollar. (With inputs from Reuters)

India's Budget 2024: Modi government prioritises fiscal discipline over populism

<o:p></o:p>In a strategic move aimed at sustaining India's position as one of the world's fastest-growing major economies, Finance Minister Nirmala Sitharaman announced a record-breaking capital expenditure (capex) of 11.11 trillion rupees (approximately $134 billion) for infrastructure creation in the fiscal year beginning on April 1, 2024.<o:p></o:p>

The proposed capex is 11.1 per cent higher than the current fiscal year's allocation of little over 10 lakh core rupees (approximately $120 billion).<o:p></o:p>

Sitharaman highlighted that the federal government's capital expenditure as a percentage of GDP is anticipated to rise from 3.3 per cent in 2023-'24 to 3.4 per cent in the upcoming financial year.<o:p></o:p>

Reuters quoted Ranen Banerjee, Partner and Leader for Economic Advisory at PwC India, as saying, "The additional allocation of INR 1.1 trillion for capex, taking it to INR 11.1 trillion, should provide continuity in the pace of infra creation and in bringing down the logistics cost in the country progressively."<o:p></o:p>

&nbsp;The allocation is expected to contribute to the ongoing efforts to enhance infrastructure, reduce logistics costs, and fuel economic development.<o:p></o:p>

While the capex increase is notable, the year-on-year rise is lower compared to the current fiscal year. Sitharaman also announced government spending of 1.3 trillion rupees (approximately $15.85 billion) in the form of 50-year loans to states, aimed at boosting their capital investments. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a strategic move aimed at sustaining India's position as one of the world's fastest-growing major economies, Finance Minister Nirmala Sitharaman announced a record-breaking capital expenditure (capex) of 11.

In a strategic move aimed at sustaining India's position as one of the world's fastest-growing major economies, Finance Minister Nirmala Sitharaman announced a record-breaking capital expenditure (capex) of 11.11 trillion rupees (approximately $134 billion) for infrastructure creation in the fiscal year beginning on April 1, 2024. The proposed capex is 11.1 per cent higher than the current fiscal year's allocation of little over 10 lakh core rupees (approximately $120 billion). Sitharaman highlighted that the federal government's capital expenditure as a percentage of GDP is anticipated to rise from 3.3 per cent in 2023-'24 to 3.4 per cent in the upcoming financial year. Reuters quoted Ranen Banerjee, Partner and Leader for Economic Advisory at PwC India, as saying, "The additional allocation of INR 1.1 trillion for capex, taking it to INR 11.1 trillion, should provide continuity in the pace of infra creation and in bringing down the logistics cost in the country progressively." The allocation is expected to contribute to the ongoing efforts to enhance infrastructure, reduce logistics costs, and fuel economic development. While the capex increase is notable, the year-on-year rise is lower compared to the current fiscal year. Sitharaman also announced government spending of 1.3 trillion rupees (approximately $15.85 billion) in the form of 50-year loans to states, aimed at boosting their capital investments. (With inputs from Reuters)

India Budget 2024: Capex raised to over $132 bn  for 2024-'25

As the clock ticks down, India anticipates the unveiling of the Modi government's interim budget, a pivotal financial roadmap that Finance Minister Nirmala Sitharaman is set to present just before the country heads to polls in April-May. The interim budget, a parliamentary practice in India, is expected to offer insights into the government's financial priorities, with a full-fledged budget scheduled post-elections in July.

India's unveiling of interim budget before elections

In a few hours, Finance Minister Nirmala Sitharaman will present the final budget of Narendra Modi Government 2.0, providing a comprehensive outlook before India enters the electoral arena. This interim budget, in effect from April 1 at the start of the financial year until the presentation of the new budget, is a crucial precursor to the full budget that will shape India's economic trajectory.

While Sitharaman has hinted at no major announcements in this interim budget, it is expected to draw attention to balancing the fiscal deficit and investments in significant projects. India, the bright spot in the global economy, is set to lower its budget deficit by at least 0.5 percentage points in 2024-25, coupled with a potential 20 per cent increase in capital spending, predominantly in infrastructure.

Global watch on India's economic landscape

Despite the interim nature of the budget, the world is keenly watching India's financial moves. With the country growing at over 7 per cent, India stands out in the global economic arena. Setting its sights on becoming a $7 trillion economy by 2030, India's strong macroeconomic fundamentals attract global attention.

Given the upcoming elections, the government is likely to focus on key constituencies – farmers, women, and the poor. There are expectations of doubling the annual payout to landowning female farmers, a significant vote bank. The extension of the free food grains program for the next five years and the flagship federal housing scheme for low-cost loans might also be on the cards.

Anticipated fiscal moves and social programs

In terms of fiscal moves, India aims to balance the books while stimulating growth. The interim budget could be a delicate dance between fiscal prudence and strategic investments. As the budget unfolds, it is expected to offer insights into the government's vision for India's economic future.

As the clock ticks down, India anticipates the unveiling of the Modi government's interim budget, a pivotal financial roadmap that Finance Minister Nirmala Sitharaman is set to present just before the country heads to polls in April-May.

As the clock ticks down, India anticipates the unveiling of the Modi government's interim budget, a pivotal financial roadmap that Finance Minister Nirmala Sitharaman is set to present just before the country heads to polls in April-May. The interim budget, a parliamentary practice in India, is expected to offer insights into the government's financial priorities, with a full-fledged budget scheduled post-elections in July. India's unveiling of interim budget before elections In a few hours, Finance Minister Nirmala Sitharaman will present the final budget of Narendra Modi Government 2.0, providing a comprehensive outlook before India enters the electoral arena. This interim budget, in effect from April 1 at the start of the financial year until the presentation of the new budget, is a crucial precursor to the full budget that will shape India's economic trajectory. While Sitharaman has hinted at no major announcements in this interim budget, it is expected to draw attention to balancing the fiscal deficit and investments in significant projects. India, the bright spot in the global economy, is set to lower its budget deficit by at least 0.5 percentage points in 2024-25, coupled with a potential 20 per cent increase in capital spending, predominantly in infrastructure. Global watch on India's economic landscape Despite the interim nature of the budget, the world is keenly watching India's financial moves. With the country growing at over 7 per cent, India stands out in the global economic arena. Setting its sights on becoming a $7 trillion economy by 2030, India's strong macroeconomic fundamentals attract global attention. Given the upcoming elections, the government is likely to focus on key constituencies – farmers, women, and the poor. There are expectations of doubling the annual payout to landowning female farmers, a significant vote bank. The extension of the free food grains program for the next five years and the flagship federal housing scheme for low-cost loans might also be on the cards. Anticipated fiscal moves and social programs In terms of fiscal moves, India aims to balance the books while stimulating growth. The interim budget could be a delicate dance between fiscal prudence and strategic investments. As the budget unfolds, it is expected to offer insights into the government's vision for India's economic future.

Budget 2024: A look at India's interim financial outlook

China's manufacturing sector faced its fourth consecutive month of contraction in January, according to an official factory survey released on Wednesday. <o:p></o:p>

The official Purchasing Managers' Index (PMI) inched up to 49.2 from December's 49.0, indicating ongoing challenges for the world's second-largest economy as it strives to regain momentum in the new year. <o:p></o:p>

The data, in line with a Reuters poll forecast, provides a critical snapshot of China's economic health after a somewhat shaky post-COVID recovery. <o:p></o:p>

Zhiwei Zhang, Chief Economist at Pinpoint Asset Management, remarked, "Economic momentum remained muted as the deflationary pressure persists," predicting a central bank rate cut in the first half of the year to stimulate domestic demand.<o:p></o:p>

Despite a slight rise in output, the manufacturing PMI remains below the 50-mark, signifying a contraction. The figures for new orders and new export orders sub-indices, at 49.0 and 47.2, respectively, further highlight the industry's struggle. <o:p></o:p>

Weak external demand and the impending Lunar New Year, which prompts earlier factory closures, contribute to the challenges. <o:p></o:p>

To address economic headwinds, China's central bank recently announced a surprise cut to banks' reserve requirement ratio. <o:p></o:p>

Julian Evans-Pritchard, Head of China Economics at Capital Economics, remarked on the uncertain nature of the PMI rise, stating, "Either way, it adds to evidence that growth momentum in China is in the midst of a renewed recovery, albeit one that remains on shaky foundations."<o:p></o:p>

In contrast to the manufacturing sector, China's non-manufacturing PMI, which includes services and construction, experienced a modest uptick to 50.7 from December's 50.4. <o:p></o:p>

While the services sub-index returned to growth after two months of contraction, the construction PMI grew at a slower pace. The composite PMI, incorporating both manufacturing and services, reached a four-month high of 50.9 in January. <o:p></o:p>

This improvement raises questions about the sustainability of China's economic recovery and the impact of current policy support. <o:p></o:p>

The International Monetary Fund (IMF) revised China's growth forecast for 2024 to 4.6 per cent, citing fiscal support and a less severe-than-expected property sector slowdown. <o:p></o:p>

Beijing, expected to maintain a growth target around 5 per cent, is yet to release its official 2024 target.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

China's manufacturing sector faced its fourth consecutive month of contraction in January, according to an official factory survey released on Wednesday. The official Purchasing Managers' Index (PMI) inched up to 49.

China's manufacturing sector faced its fourth consecutive month of contraction in January, according to an official factory survey released on Wednesday. The official Purchasing Managers' Index (PMI) inched up to 49.2 from December's 49.0, indicating ongoing challenges for the world's second-largest economy as it strives to regain momentum in the new year. The data, in line with a Reuters poll forecast, provides a critical snapshot of China's economic health after a somewhat shaky post-COVID recovery. Zhiwei Zhang, Chief Economist at Pinpoint Asset Management, remarked, "Economic momentum remained muted as the deflationary pressure persists," predicting a central bank rate cut in the first half of the year to stimulate domestic demand. Despite a slight rise in output, the manufacturing PMI remains below the 50-mark, signifying a contraction. The figures for new orders and new export orders sub-indices, at 49.0 and 47.2, respectively, further highlight the industry's struggle. Weak external demand and the impending Lunar New Year, which prompts earlier factory closures, contribute to the challenges. To address economic headwinds, China's central bank recently announced a surprise cut to banks' reserve requirement ratio. Julian Evans-Pritchard, Head of China Economics at Capital Economics, remarked on the uncertain nature of the PMI rise, stating, "Either way, it adds to evidence that growth momentum in China is in the midst of a renewed recovery, albeit one that remains on shaky foundations." In contrast to the manufacturing sector, China's non-manufacturing PMI, which includes services and construction, experienced a modest uptick to 50.7 from December's 50.4. While the services sub-index returned to growth after two months of contraction, the construction PMI grew at a slower pace. The composite PMI, incorporating both manufacturing and services, reached a four-month high of 50.9 in January. This improvement raises questions about the sustainability of China's economic recovery and the impact of current policy support. The International Monetary Fund (IMF) revised China's growth forecast for 2024 to 4.6 per cent, citing fiscal support and a less severe-than-expected property sector slowdown. Beijing, expected to maintain a growth target around 5 per cent, is yet to release its official 2024 target. (With inputs from Reuters)

China's manufacturing contraction persists, posing challenges for economic recovery in 2024

In a bid to recalibrate its autonomous vehicle venture, General Motors announced on Tuesday a cut of approximately $1 billion in spending on its robotaxi unit, Cruise, for the year 2024.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The move comes in the wake of heightened regulatory scrutiny following an October 2 accident in San Francisco involving a Cruise robotaxi and a pedestrian. <o:p></o:p>

Reuters cited GM CEO Mary Barra, who said, "We are committed to Cruise." <o:p></o:p>

Barra also announced plans to "refocus and relaunch Cruise" and assured that the company would soon unveil a timetable for resuming operations.<o:p></o:p>

Barra acknowledged the challenges faced by Cruise, stating, "GM has learned that 'humans expect computers to be much more safe' than human operators." <o:p></o:p>

She highlighted Cruise's commitment to setting a higher safety standard for its autonomous vehicles, emphasising that the company was cooperating with ongoing government investigations into the October 2 accident. <o:p></o:p>

Despite the setback, Barra remains optimistic about Cruise's future, emphasising the importance of retaining software and engineering talent. <o:p></o:p>

The CEO revealed that Cruise's spending in the upcoming year will be directed toward bolstering its technological capabilities, particularly in software development and engineering. <o:p></o:p>

The decision to halt previous plans for expansion to 20 cities has allowed GM to redirect spending away from vehicles and operational personnel.<o:p></o:p>

Following the October 2 accident, Cruise faced scrutiny not only from regulatory bodies but also underwent an internal technical review conducted by engineering firm Exponent. <o:p></o:p>

The review revealed mapping errors and a misidentification of the collision nature, with the vehicle incorrectly categorising the impact as a side collision. <o:p></o:p>

Cruise promptly recalled the affected vehicles and updated its software. <o:p></o:p>

In response to the investigation by the California Public Utilities Commission, Cruise proposed a $75,000 settlement and committed to enhanced disclosures regarding the incident. <o:p></o:p>

Cruise stated that the proposed settlement was a reasonable sum considering its remedial actions and the overall circumstances surrounding the accident.<o:p></o:p>

The aftermath of the October 2 incident saw significant organisational changes within Cruise, with nine executives terminated, including CEO Kyle Vogt and co-founder Dan Kan resigning. <o:p></o:p>

The company also underwent a reduction of a quarter of its staff. <o:p></o:p>

The regulatory probes and disclosures regarding the mishandling of the accident have intensified pressure on GM and CEO Mary Barra, who has consistently defended the company's investment in Cruise. <o:p></o:p>

Despite over $8 billion in losses, Barra previously expressed confidence in Cruise's potential, projecting it could generate $50 billion in annual revenue by 2030. <o:p></o:p>

Cruise, once operating hundreds of unmanned robotaxis across several states, aims to strike a balance between generating revenue and perfecting autonomous technology.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a bid to recalibrate its autonomous vehicle venture, General Motors announced on Tuesday a cut of approximately $1 billion in spending on its robotaxi unit, Cruise, for the year 2024.

In a bid to recalibrate its autonomous vehicle venture, General Motors announced on Tuesday a cut of approximately $1 billion in spending on its robotaxi unit, Cruise, for the year 2024. This is based on a Reuters report. The move comes in the wake of heightened regulatory scrutiny following an October 2 accident in San Francisco involving a Cruise robotaxi and a pedestrian. Reuters cited GM CEO Mary Barra, who said, "We are committed to Cruise." Barra also announced plans to "refocus and relaunch Cruise" and assured that the company would soon unveil a timetable for resuming operations. Barra acknowledged the challenges faced by Cruise, stating, "GM has learned that 'humans expect computers to be much more safe' than human operators." She highlighted Cruise's commitment to setting a higher safety standard for its autonomous vehicles, emphasising that the company was cooperating with ongoing government investigations into the October 2 accident. Despite the setback, Barra remains optimistic about Cruise's future, emphasising the importance of retaining software and engineering talent. The CEO revealed that Cruise's spending in the upcoming year will be directed toward bolstering its technological capabilities, particularly in software development and engineering. The decision to halt previous plans for expansion to 20 cities has allowed GM to redirect spending away from vehicles and operational personnel. Following the October 2 accident, Cruise faced scrutiny not only from regulatory bodies but also underwent an internal technical review conducted by engineering firm Exponent. The review revealed mapping errors and a misidentification of the collision nature, with the vehicle incorrectly categorising the impact as a side collision. Cruise promptly recalled the affected vehicles and updated its software. In response to the investigation by the California Public Utilities Commission, Cruise proposed a $75,000 settlement and committed to enhanced disclosures regarding the incident. Cruise stated that the proposed settlement was a reasonable sum considering its remedial actions and the overall circumstances surrounding the accident. The aftermath of the October 2 incident saw significant organisational changes within Cruise, with nine executives terminated, including CEO Kyle Vogt and co-founder Dan Kan resigning. The company also underwent a reduction of a quarter of its staff. The regulatory probes and disclosures regarding the mishandling of the accident have intensified pressure on GM and CEO Mary Barra, who has consistently defended the company's investment in Cruise. Despite over $8 billion in losses, Barra previously expressed confidence in Cruise's potential, projecting it could generate $50 billion in annual revenue by 2030. Cruise, once operating hundreds of unmanned robotaxis across several states, aims to strike a balance between generating revenue and perfecting autonomous technology. (With inputs from Reuters)

GM slashes Cruise spending by $1 bn amid regulatory scrutiny, commits to self-driving vision

In a move to streamline operations and enhance profitability, payments giant PayPal Holdings is set to reduce its global workforce by 9 per cent, equivalent to approximately 2,500 jobs, in 2024.<o:p></o:p>

This is based on a Reuters report. <o:p></o:p>

CEO Alex Chriss, in a letter to staff, disclosed the company's decision, emphasising the need to "right-size" the organisation. <o:p></o:p>

Chriss intends to achieve this through a combination of direct job cuts and the elimination of open positions throughout the year. The impacted staff are expected to receive notifications by the end of the week.<o:p></o:p>

Reuters cited Chriss, who expressed the rationale behind the decision, stating, "We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth."<o:p></o:p>

The move aligns with Chriss's earlier commitment to increase revenue beyond transaction-related volumes and make the fintech firm more operationally efficient by reducing costs. Despite the positive response to the announcement following the third-quarter results, analysts have closely monitored PayPal's margins in recent quarters, especially concerning increased competition, particularly from tech giant Apple.<o:p></o:p>

Investors are hoping that Chriss, who was formerly a senior executive at Intuit, a software company, could revive the shares of PayPal. It dropped by about 14 per cent the previous year and failed to capitalise on the higher-growth technology shares sector-wide rebound.<o:p></o:p>

The focus on margin improvement becomes crucial as the company aims to navigate a market where low-margin business products have seen robust growth, while branded products have encountered slower growth due to heightened competition. <o:p></o:p>

Last week, PayPal made strategic announcements, revealing plans to launch new artificial intelligence-driven products and introduce a one-click checkout feature. These initiatives align with the company's broader efforts to stay at the forefront of technological advancements in the financial industry. <o:p></o:p>

While the market responded with a nominal decrease of 0.13 per cent in PayPal's shares, the move is seen as a proactive step to bolster the company's position amid evolving market dynamics. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

<o:p></o:p>

In a move to streamline operations and enhance profitability, payments giant PayPal Holdings is set to reduce its global workforce by 9 per cent, equivalent to approximately 2,500 jobs, in 2024.

In a move to streamline operations and enhance profitability, payments giant PayPal Holdings is set to reduce its global workforce by 9 per cent, equivalent to approximately 2,500 jobs, in 2024. This is based on a Reuters report. CEO Alex Chriss, in a letter to staff, disclosed the company's decision, emphasising the need to "right-size" the organisation. Chriss intends to achieve this through a combination of direct job cuts and the elimination of open positions throughout the year. The impacted staff are expected to receive notifications by the end of the week. Reuters cited Chriss, who expressed the rationale behind the decision, stating, "We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth." The move aligns with Chriss's earlier commitment to increase revenue beyond transaction-related volumes and make the fintech firm more operationally efficient by reducing costs. Despite the positive response to the announcement following the third-quarter results, analysts have closely monitored PayPal's margins in recent quarters, especially concerning increased competition, particularly from tech giant Apple. Investors are hoping that Chriss, who was formerly a senior executive at Intuit, a software company, could revive the shares of PayPal. It dropped by about 14 per cent the previous year and failed to capitalise on the higher-growth technology shares sector-wide rebound. The focus on margin improvement becomes crucial as the company aims to navigate a market where low-margin business products have seen robust growth, while branded products have encountered slower growth due to heightened competition. Last week, PayPal made strategic announcements, revealing plans to launch new artificial intelligence-driven products and introduce a one-click checkout feature. These initiatives align with the company's broader efforts to stay at the forefront of technological advancements in the financial industry. While the market responded with a nominal decrease of 0.13 per cent in PayPal's shares, the move is seen as a proactive step to bolster the company's position amid evolving market dynamics. (With inputs from Reuters)

PayPal to cut 2,500 jobs in order to “right-size” the company

AI-related companies witnessed a loss of $190 billion in market capitalisation late on Tuesday, triggered by disappointing quarterly reports from tech giants Microsoft and Alphabet. <o:p></o:p>

According to Reuters, the selloff highlighted the heightened expectations among investors following a recent AI-fuelled stock market surge, which had propelled these companies' shares to record highs, banking on the widespread integration of AI technology across various corporate sectors.<o:p></o:p>

Alphabet, the parent company of Google, bore the brunt of the market downturn as its shares plummeted by 5.6 per cent. The disappointing December-quarter ad revenue, falling short of expectations, was a major factor in this decline. <o:p></o:p>

Additionally, Alphabet announced a significant increase in spending on data centres to bolster its AI initiatives, shedding light on the intense competition it faces against AI rival Microsoft. <o:p></o:p>

Despite a slight beat in Google Cloud revenue growth, fuelled by AI interest, Microsoft's Azure outpaced its competitor. Investors reacted swiftly to these revelations, causing Alphabet's stock to take a hit.<o:p></o:p>

Reuters cited an analyst, who said, "The sell-off reflects the market's realisation that achieving success in the highly competitive AI landscape comes at a substantial cost." <o:p></o:p>

Microsoft, despite beating analyst estimates for quarterly revenue, experienced a 0.7 per cent drop in its stock after reaching an intra-day record high earlier in the day.<o:p></o:p>

Microsoft's optimism about AI had propelled its market value above $3 trillion this month, surpassing tech giant Apple. The company's success was attributed to the incorporation of new AI features that attracted customers to its cloud and Windows services. <o:p></o:p>

However, the dip in its stock after the quarterly report suggests that even the tech giant is not immune to the volatile nature of the AI market. Investors are now closely watching how these companies navigate the challenges and capitalise on the promises of AI.<o:p></o:p>

The plunge extended beyond Alphabet and Microsoft, affecting chipmaker Advanced Micro Devices (AMD), which witnessed a 6 per cent decline in its stock value. Despite projecting robust sales for its AI processors, the company's forecast for first-quarter revenue fell short of estimates. <o:p></o:p>

Similarly, Nvidia, whose shares had surged 27 per cent in January on the back of AI optimism, experienced a 2 per cent decline in extended trade. Super Micro Computer, a server maker benefiting from AI-related demand, also suffered, dropping over 3 per cent after reaching a record high on the back of blowout quarterly results the day before.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

AI-related companies witnessed a loss of $190 billion in market capitalisation late on Tuesday, triggered by disappointing quarterly reports from tech giants Microsoft and Alphabet.

AI-related companies witnessed a loss of $190 billion in market capitalisation late on Tuesday, triggered by disappointing quarterly reports from tech giants Microsoft and Alphabet. According to Reuters, the selloff highlighted the heightened expectations among investors following a recent AI-fuelled stock market surge, which had propelled these companies' shares to record highs, banking on the widespread integration of AI technology across various corporate sectors. Alphabet, the parent company of Google, bore the brunt of the market downturn as its shares plummeted by 5.6 per cent. The disappointing December-quarter ad revenue, falling short of expectations, was a major factor in this decline. Additionally, Alphabet announced a significant increase in spending on data centres to bolster its AI initiatives, shedding light on the intense competition it faces against AI rival Microsoft. Despite a slight beat in Google Cloud revenue growth, fuelled by AI interest, Microsoft's Azure outpaced its competitor. Investors reacted swiftly to these revelations, causing Alphabet's stock to take a hit. Reuters cited an analyst, who said, "The sell-off reflects the market's realisation that achieving success in the highly competitive AI landscape comes at a substantial cost." Microsoft, despite beating analyst estimates for quarterly revenue, experienced a 0.7 per cent drop in its stock after reaching an intra-day record high earlier in the day. Microsoft's optimism about AI had propelled its market value above $3 trillion this month, surpassing tech giant Apple. The company's success was attributed to the incorporation of new AI features that attracted customers to its cloud and Windows services. However, the dip in its stock after the quarterly report suggests that even the tech giant is not immune to the volatile nature of the AI market. Investors are now closely watching how these companies navigate the challenges and capitalise on the promises of AI. The plunge extended beyond Alphabet and Microsoft, affecting chipmaker Advanced Micro Devices (AMD), which witnessed a 6 per cent decline in its stock value. Despite projecting robust sales for its AI processors, the company's forecast for first-quarter revenue fell short of estimates. Similarly, Nvidia, whose shares had surged 27 per cent in January on the back of AI optimism, experienced a 2 per cent decline in extended trade. Super Micro Computer, a server maker benefiting from AI-related demand, also suffered, dropping over 3 per cent after reaching a record high on the back of blowout quarterly results the day before. (With inputs from Reuters)

AI Market Plunge: Alphabet and Microsoft earnings jolt investors, wipe out $190 billion

Author

Zee News Rajasthan

Editor

Shashwat Sankranti

Home

Live Tv

Latest

World

India

Business

Entertainment

Sports

Opinions

Videos

Photos

Gravitas

Lifestyle

Science

Tech

Rajasthan News in Hindi: In-depth coverage of Rajasthan Crime, Political News, Education, Rajasthan Weather Update and Latest Rajasthan News on Zee News Rajasthan.