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Dunzo, a hyperlocal quick commerce company grappling with financial difficulties, implemented a salary cap of US$914&nbsp;for employees in June, according to sources familiar with the matter who spoke to Moneycontrol.&nbsp;

This meant that regardless of their actual salary package, no one would receive more than the fixed amount. The move aimed to ensure that employees earning less than the capped amount would receive their salaries in full.

However, earlier this week, it was reported that Dunzo had deferred June salaries for approximately 500 employees, representing around 50 per cent of its workforce. Co-founder and CEO Kabeer Biswas and the top management assured employees that the salary caps were only applicable for June and that all dues would be cleared by July 20.

<h2>Impact on senior employees and lack of prior intimation</h2>

Senior employees at Dunzo were reportedly most affected by the salary deferrals. Approximately 60-65 per cent of the workforce received their full salaries, while 35-40 per cent received only a partial payment of US$914&nbsp;for June.

An employee, speaking anonymously, revealed that the information about salary caps and deferrals was provided on the day salaries were due, without any prior notice or communication.

Also read |&nbsp;<a href="https://www.wionews.com/technology/ai-over-human-staff-indian-ceo-replaces-90-workforce-with-bot-internet-outraged-614666">AI replaces human workers: Indian CEO replaces 90% support staff with chatbot, internet outraged</a>

<h2>Cash crunch despite recent funding</h2>

Despite Dunzo raising $75 million in April this year, the company continues to face significant cash burn. While the company made efforts&nbsp;to ensure timely payment of salaries, a business need requiring immediate attention may have necessitated the last-minute communication with employees.

Also watch |&nbsp;Gravitas: The impact of Silicon Valley layoffs on Indian Techies

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-the-impact-of-silicon-valley-layoffs-on-indian-techies-534175/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

These recent developments raise concerns about possible layoffs and voluntary exits at Dunzo. The company has already undergone two rounds of layoffs this year, resulting in the termination of approximately 380 employees.

<h2>Cost-cutting measures&nbsp;</h2>

Dunzo has been implementing various cost-cutting measures to drive profitability.

These include shifting to a marketplace model for sourcing products, shutting down a significant portion of its dark stores, and exiting unprofitable markets.

Additionally, the company has increased delivery fees, introduced delivery delays, and imposed convenience fees on users to enhance revenue per order.

Industry experts, including Swiggy's food delivery CEO, Rohit Kapoor, predict consolidation in the quick-commerce space, reported Moneycontrol.&nbsp;

With only 3-4 significant players expected to survive, Dunzo, alongside Swiggy's Instamart, Zepto, Blinkit by Zomato, and Tata-operated BigBasket, currently operates&nbsp;in this space.

Dunzo, founded in 2015, has raised close to $500 million since its inception, with major investments from Reliance, Google, Lightrock, Lightbox, Blume Ventures, and others. Reliance holds the largest stake in the company at 25.8 per cent, followed by Google with approximately 19 per cent ownership, according to Tracxn.

&nbsp;

WATCH WION LIVE HERE:

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Dunzo, a hyperlocal quick commerce company grappling with financial difficulties, implemented a salary cap of US$914 for employees in June, according to sources familiar with the matter who spoke to Moneycontrol.

Dunzo, a hyperlocal quick commerce company grappling with financial difficulties, implemented a salary cap of US$914 for employees in June, according to sources familiar with the matter who spoke to Moneycontrol. This meant that regardless of their actual salary package, no one would receive more than the fixed amount. The move aimed to ensure that employees earning less than the capped amount would receive their salaries in full. However, earlier this week, it was reported that Dunzo had deferred June salaries for approximately 500 employees, representing around 50 per cent of its workforce. Co-founder and CEO Kabeer Biswas and the top management assured employees that the salary caps were only applicable for June and that all dues would be cleared by July 20. Impact on senior employees and lack of prior intimation Senior employees at Dunzo were reportedly most affected by the salary deferrals. Approximately 60-65 per cent of the workforce received their full salaries, while 35-40 per cent received only a partial payment of US$914 for June. An employee, speaking anonymously, revealed that the information about salary caps and deferrals was provided on the day salaries were due, without any prior notice or communication. Also read | AI replaces human workers: Indian CEO replaces 90% support staff with chatbot, internet outraged Cash crunch despite recent funding Despite Dunzo raising $75 million in April this year, the company continues to face significant cash burn. While the company made efforts to ensure timely payment of salaries, a business need requiring immediate attention may have necessitated the last-minute communication with employees. Also watch | Gravitas: The impact of Silicon Valley layoffs on Indian Techies These recent developments raise concerns about possible layoffs and voluntary exits at Dunzo. The company has already undergone two rounds of layoffs this year, resulting in the termination of approximately 380 employees. Cost-cutting measures Dunzo has been implementing various cost-cutting measures to drive profitability. These include shifting to a marketplace model for sourcing products, shutting down a significant portion of its dark stores, and exiting unprofitable markets. Additionally, the company has increased delivery fees, introduced delivery delays, and imposed convenience fees on users to enhance revenue per order. Industry experts, including Swiggy's food delivery CEO, Rohit Kapoor, predict consolidation in the quick-commerce space, reported Moneycontrol. With only 3-4 significant players expected to survive, Dunzo, alongside Swiggy's Instamart, Zepto, Blinkit by Zomato, and Tata-operated BigBasket, currently operates in this space. Dunzo, founded in 2015, has raised close to $500 million since its inception, with major investments from Reliance, Google, Lightrock, Lightbox, Blume Ventures, and others. Reliance holds the largest stake in the company at 25.8 per cent, followed by Google with approximately 19 per cent ownership, according to Tracxn. WATCH WION LIVE HERE:

Financial crisis hits hard: Indian firm enforces salary cap of US$914 amid cash crunch

China's global ambitions have soared since the start of the 21st Century, decades after the country embarked on a remarkable journey to transform its closed economy into an export-driven economic powerhouse. Much of China's global ambitions hinge on its grand policy -- the Belt and Road Initiative (BRI). This policy, formulated in 2013, is an amalgamation of infrastructure projects covering Asia, Europe and Africa.

But considering BRI as just another global infrastructure plan will be like missing the forest for the trees. It involves President Xi Jinping's grand plans to reclaim China's past glory and shift the centre of geopolitical power from Europe to Beijing. Nevertheless, as lofty as it may seem, BRI has left a debt trap of $1 trillion for 150 – mostly developing – countries.

China's BRI-induced debt trap has brought countries to the brink of bankruptcy – anyone remembers Sri Lanka, Pakistan and Kenya? All these countries owed a substantial part of their debt to Beijing.

However, ongoing domestic development will likely be a speed-breaker to China's global ambitions.

China's domestic debt problem

Years of infrastructure-driven growth helped China connect every part of its expansive geography, create clusters of urban industrial centres and accelerate economic growth that was only paralleled by the US in the late 1800s and early 20th Century. But that itself is proving to be China's undoing.

According to economists at Goldman Sachs, China's local government debt could be over $23 trillion. That's about seven times the size of India's Gross Domestic Product.

For the uninitiated, local governments play a huge role in China's economic planning. They include the provincial, county and municipal administrations, which fund most local infrastructure projects.

While China has been on a decentralisation spree for many decades, 2015 was a watershed year for local governments. That year, the Chinese government amended the Budget Law to allow local governments to raise funds from the open market by selling bonds. While the amended law now gives the local government more power to finance projects, the various qualifying conditions have made it a not-so-popular funding source.

To circumvent the limitations of municipal bonds, local governments in China stuck around with the age-old Special Local Government Finance Vehicles (LGFVs) model. These organisations have been opened across the world's second-largest economy to finance major infrastructure projects.

The debts incurred by LGFVs are considered "hidden" as the local governments do not report them. Since LGFV debts are off the accounting books, local governments have time and again misused them to finance unsustainable projects. This has resulted in a ballooning debt crisis.

The reports of shanty towns or ghost towns with numerous unfinished highways, housing projects, and tourist attractions that the world keeps hearing are prime examples of local governments failing to sustain infrastructure projects due to high indebtedness.

For several years, local governments had it easy as the Chinese realty market boomed and local governments were able to generate revenue. But once the realty sector began weakening – remember realty giant Evergrande and its $300 billion debt? – in 2021, the repercussions have been unprecedented.

The true size of China's debt mountain can only be calculated when one adds the total local government debt with the realty and household debts — there is a significant overlap between the three.

Factor this: China's total debt is now more than the average in developed countries. It's much higher than the US, frequently grabbing headlines for its high indebtedness.

According to market analysts, China's debt is 282 per cent of its annual economic output, which is way higher than the developed world's average of 256 per cent. The ratio is 257 per cent for the US, China's arch-rival.

Impact on China's 'debt trap diplomacy

Given China's opaque statistical practices, the mystery around the exact debt figure is likely to be solved. Whatever the real debt figure, the repercussion can already be felt in China's predatory debt practices.

A New York Times report suggests that total lending to other countries is a mere six per cent of China's annual economic output. However, the ticking debt time bomb at home is making China's financial institutions not accept losses on their foreign lending, especially those made to low-income countries.

The first signs of China's unwillingness to ease debt repayment conditions for poor conditions could be seen in 2022. This was a year after the realty sector showed its first signs of weakness, and the country, entered an extended period of Covid lockdown.

A recent Reuters report shows that Beijing – the world's largest bilateral creditor – forgave $19 billion in 2021, but that figure dropped to $9 billion in 2022 and $1.7 billion by April 2023. This massive drop hints at China's fears that going slow on debt repayments will help the indebted nations but can backfire on its economy.

But China's growing international stature under Xi allows the country to stay on being a top global lender. It does not help China's cause that it is locked in an ongoing geopolitical tussle with the United States.

It is tough being in China's position right now. It must keep its position as a top lender to compete with the West. But Beijing will need to renegotiate loans to mollify debtors, as it has done with a few countries like Zambia.

However, this will also mean China is losing out on timely debt repayments.

China's global ambitions have soared since the start of the 21st Century, decades after the country embarked on a remarkable journey to transform its closed economy into an export-driven economic powerhouse.

China's global ambitions have soared since the start of the 21st Century, decades after the country embarked on a remarkable journey to transform its closed economy into an export-driven economic powerhouse. Much of China's global ambitions hinge on its grand policy -- the Belt and Road Initiative (BRI). This policy, formulated in 2013, is an amalgamation of infrastructure projects covering Asia, Europe and Africa. But considering BRI as just another global infrastructure plan will be like missing the forest for the trees. It involves President Xi Jinping's grand plans to reclaim China's past glory and shift the centre of geopolitical power from Europe to Beijing. Nevertheless, as lofty as it may seem, BRI has left a debt trap of $1 trillion for 150 – mostly developing – countries. China's BRI-induced debt trap has brought countries to the brink of bankruptcy – anyone remembers Sri Lanka, Pakistan and Kenya? All these countries owed a substantial part of their debt to Beijing. However, ongoing domestic development will likely be a speed-breaker to China's global ambitions. China's domestic debt problem Years of infrastructure-driven growth helped China connect every part of its expansive geography, create clusters of urban industrial centres and accelerate economic growth that was only paralleled by the US in the late 1800s and early 20th Century. But that itself is proving to be China's undoing. According to economists at Goldman Sachs, China's local government debt could be over $23 trillion. That's about seven times the size of India's Gross Domestic Product. For the uninitiated, local governments play a huge role in China's economic planning. They include the provincial, county and municipal administrations, which fund most local infrastructure projects. While China has been on a decentralisation spree for many decades, 2015 was a watershed year for local governments. That year, the Chinese government amended the Budget Law to allow local governments to raise funds from the open market by selling bonds. While the amended law now gives the local government more power to finance projects, the various qualifying conditions have made it a not-so-popular funding source. To circumvent the limitations of municipal bonds, local governments in China stuck around with the age-old Special Local Government Finance Vehicles (LGFVs) model. These organisations have been opened across the world's second-largest economy to finance major infrastructure projects. The debts incurred by LGFVs are considered "hidden" as the local governments do not report them. Since LGFV debts are off the accounting books, local governments have time and again misused them to finance unsustainable projects. This has resulted in a ballooning debt crisis. The reports of shanty towns or ghost towns with numerous unfinished highways, housing projects, and tourist attractions that the world keeps hearing are prime examples of local governments failing to sustain infrastructure projects due to high indebtedness. For several years, local governments had it easy as the Chinese realty market boomed and local governments were able to generate revenue. But once the realty sector began weakening – remember realty giant Evergrande and its $300 billion debt? – in 2021, the repercussions have been unprecedented. The true size of China's debt mountain can only be calculated when one adds the total local government debt with the realty and household debts — there is a significant overlap between the three. Factor this: China's total debt is now more than the average in developed countries. It's much higher than the US, frequently grabbing headlines for its high indebtedness. According to market analysts, China's debt is 282 per cent of its annual economic output, which is way higher than the developed world's average of 256 per cent. The ratio is 257 per cent for the US, China's arch-rival. Impact on China's 'debt trap diplomacy Given China's opaque statistical practices, the mystery around the exact debt figure is likely to be solved. Whatever the real debt figure, the repercussion can already be felt in China's predatory debt practices. A New York Times report suggests that total lending to other countries is a mere six per cent of China's annual economic output. However, the ticking debt time bomb at home is making China's financial institutions not accept losses on their foreign lending, especially those made to low-income countries. The first signs of China's unwillingness to ease debt repayment conditions for poor conditions could be seen in 2022. This was a year after the realty sector showed its first signs of weakness, and the country, entered an extended period of Covid lockdown. A recent Reuters report shows that Beijing – the world's largest bilateral creditor – forgave $19 billion in 2021, but that figure dropped to $9 billion in 2022 and $1.7 billion by April 2023. This massive drop hints at China's fears that going slow on debt repayments will help the indebted nations but can backfire on its economy. But China's growing international stature under Xi allows the country to stay on being a top global lender. It does not help China's cause that it is locked in an ongoing geopolitical tussle with the United States. It is tough being in China's position right now. It must keep its position as a top lender to compete with the West. But Beijing will need to renegotiate loans to mollify debtors, as it has done with a few countries like Zambia. However, this will also mean China is losing out on timely debt repayments.

$23 trillion-plus & counting: Will China's surging local government debt crisis affect its global ambitions?

An encouraging update from the PC industry the latest data from analysis reveals that the global PC market is showing signs of a much-needed recovery. This comes after consecutive quarters of a downward trend in PC shipments.

Revival on the horizon as PC markets make a comeback

The Indian tax regulatory body, the Goods and Service Tax (GST) Council, on Tuesday, made some major revisions to the tax structure after the conclusion of its 50th meeting.

While the government decided to trim the GST rate on some items, other sectors, such as the online game industry, received a major shock after it was decided to levy 28 per cent GST.

In a major decision during the meeting, GST on satellite launch services provided by private operators has been exempted.

Besides, the government decided to exempt cancer-related drugs, medicines for rare diseases, and food products for special medical purposes from the GST tax bracket.

<h2>GST trimmed on four items</h2>

The council also approved a GST rate reduction on four items. These are:

<ul>
	<li>Uncooked, unfried, and extruded snack palettes to a GST rate of 5 per cent from 18 per cent.</li>
	<li>Fish soluble paste to see 5 per cent GST rate from earlier 18 per cent.</li>
	<li>LD slag to be at par with blast furnace slag. It has been reduced from 18 per cent to 5 per cent.</li>
</ul>

<h2>GST cut on foods served in cinema halls</h2>

Furthermore, the council, headed by Union Finance Minister Nirmala Sitharaman, trimmed the GST rate on foods served in cinema halls from earlier 18 per cent to 5 per cent.

“It has been decided to clarify that the supply of food and beverages in cinema halls is taxable as restaurant service as long as (a) they are supplied by way of or as part of a service and (b) supplied independently of the cinema exhibition service,” it said.

“Where the sale of cinema tickets and supply of food and beverages are clubbed together, and such bundled supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to service of exhibition of cinema, the principal supply.”

<h2>Change in definition of SUV</h2>

The finance minister also announced a change in the definition of SUV for levying cess.

Presently, the definition for levy of cess includes four parameters — should be popularly known as SUV, should be of length of 4 metres or above,&nbsp;engine capacity of 1,500 cc and above, and unladen&nbsp;ground clearance of minimum 170 mm.

Now, she said, the SUV definition will include only the length (4 meters and above), engine capacity (1,500 cc and more), and ground clearance (unladen&nbsp;clearance of 170 mm and more).

<h2>Online gaming</h2>

Speaking on the decision to charge GST on online gaming, Sitharaman said that the panel decided to levy a 28 per cent GST on the face value or payments made for playing online games, bets in casinos and racing.

The tax rate was decided based on the recommendation of a group of ministers that looked at taxing casinos, horse racing and online gaming, she said.

The issue before the GoM (group of ministers) was whether to impose a 28 per cent GST on the face value of bets, gross gaming revenue, or just on platform fees.

Sitharaman said the tax will be levied on the entire value.

WATCH WION LIVE HERE

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The Indian tax regulatory body, the Goods and Service Tax (GST) Council, on Tuesday, made some major revisions to the tax structure after the conclusion of its 50th meeting.

The Indian tax regulatory body, the Goods and Service Tax (GST) Council, on Tuesday, made some major revisions to the tax structure after the conclusion of its 50th meeting. While the government decided to trim the GST rate on some items, other sectors, such as the online game industry, received a major shock after it was decided to levy 28 per cent GST. In a major decision during the meeting, GST on satellite launch services provided by private operators has been exempted. Besides, the government decided to exempt cancer-related drugs, medicines for rare diseases, and food products for special medical purposes from the GST tax bracket. GST trimmed on four items The council also approved a GST rate reduction on four items. These are: Uncooked, unfried, and extruded snack palettes to a GST rate of 5 per cent from 18 per cent. Fish soluble paste to see 5 per cent GST rate from earlier 18 per cent. LD slag to be at par with blast furnace slag. It has been reduced from 18 per cent to 5 per cent. GST cut on foods served in cinema halls Furthermore, the council, headed by Union Finance Minister Nirmala Sitharaman, trimmed the GST rate on foods served in cinema halls from earlier 18 per cent to 5 per cent. “It has been decided to clarify that the supply of food and beverages in cinema halls is taxable as restaurant service as long as (a) they are supplied by way of or as part of a service and (b) supplied independently of the cinema exhibition service,” it said. “Where the sale of cinema tickets and supply of food and beverages are clubbed together, and such bundled supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to service of exhibition of cinema, the principal supply.” Change in definition of SUV The finance minister also announced a change in the definition of SUV for levying cess. Presently, the definition for levy of cess includes four parameters — should be popularly known as SUV, should be of length of 4 metres or above, engine capacity of 1,500 cc and above, and unladen ground clearance of minimum 170 mm. Now, she said, the SUV definition will include only the length (4 meters and above), engine capacity (1,500 cc and more), and ground clearance (unladen clearance of 170 mm and more). Online gaming Speaking on the decision to charge GST on online gaming, Sitharaman said that the panel decided to levy a 28 per cent GST on the face value or payments made for playing online games, bets in casinos and racing. The tax rate was decided based on the recommendation of a group of ministers that looked at taxing casinos, horse racing and online gaming, she said. The issue before the GoM (group of ministers) was whether to impose a 28 per cent GST on the face value of bets, gross gaming revenue, or just on platform fees. Sitharaman said the tax will be levied on the entire value. WATCH WION LIVE HERE

India: GST Council slashes tax on major items, hikes rate to 28% on online gaming

Major accounting firms are increasing their investments in new facilities in smaller Indian cities as the demand for cheaper back-office operations rises, and these towns move up the economic value chain. Traditionally, multinational corporations have established operational centers in India's largest metropolises, such as Mumbai, Delhi, and Bengaluru, due to the availability of a large, low-cost talent pool, especially in the field of information technology. However, the sector has experienced a slowdown in global demand for software and encountered challenges in big urban centers, including rising costs, high attrition rates, and difficulties in getting workers back to the office after the pandemic.

According to a report by Ernst &amp; Young cited by Reuters, multinationals are now expected to establish 'global capability centers' in tier-2 cities like Jaipur, Vadodara, Kochi, and Chandigarh. By 2030, the number of such centers is projected to reach 2,400, creating 2.6 million jobs and contributing over $100 billion to the Indian economy. This shift means professionals can expect more opportunities and potentially higher salaries in these smaller cities. Factors such as rising wages, declining accounting graduates in developed countries due to the pandemic, and visa restrictions have positioned India as a global hub for business services, including taxation, data analytics, cybersecurity, and customer management. India has doubled its share in global services trade to over 4 per cent from 2 per cent in 2005, making it one of the world's leading exporters of services, as the World Trade Organization estimated.

Smaller cities and their untapped potential

Large accounting firms are seizing the opportunity to tap into the talent pool and competitive advantages offered by these smaller Indian cities. Deloitte, which already employs over 100,000 people in India, plans to hire an additional 50,000 staff members within the next three years and expand its presence in new locations. Similarly, KPMG aims to hire over 20,000 employees over the same period. PwC hired approximately 12,500 professionals in the last fiscal year and expects to hire a similar number this year. The move by these accounting giants is expected to provide relief to the labor market, which has experienced slower hiring in the manufacturing and IT sectors due to global growth concerns.

Prime Minister Narendra Modi has set a target of $400 billion for service exports in the current fiscal year, representing a 25 per cent increase from the previous year. Sunil Talati, president of the government-aided Services Export Promotion Council, believes that total services exports could surpass goods exports within the next five years, reaching $750 billion. Cities like Bhubaneswar in the eastern state of Odisha have witnessed the opening of offices by Deloitte, PwC, and IBM to cater to Indian and global clients.

The establishment of these new offices in smaller cities has not only provided employment opportunities but also stimulated other sectors. Educational institutions have introduced new courses to meet the demand, while property developers have launched building projects. Additionally, the demand for office space in smaller cities has surged, resulting in a rent increase of up to 10 per cent, as reported by Knight Frank consultancy.

Multinational and domestic accounting firms follow suit by moving their operations to smaller towns and increasing wages to retain skilled employees. Shortages of certified accounting professionals have been observed, prompting firms to adapt to the changing landscape and open offices in these emerging cities.

The trend of major accounting firms investing in smaller Indian cities signifies a significant shift in the country's business landscape. These cities are now being recognized for their potential in offering cost-effective solutions and a talented workforce, attracting global players and driving economic growth in previously untapped regions.

(With Inputs from Reuters)

Major accounting firms are increasing their investments in new facilities in smaller Indian cities as the demand for cheaper back-office operations rises, and these towns move up the economic value chain.

Major accounting firms are increasing their investments in new facilities in smaller Indian cities as the demand for cheaper back-office operations rises, and these towns move up the economic value chain. Traditionally, multinational corporations have established operational centers in India's largest metropolises, such as Mumbai, Delhi, and Bengaluru, due to the availability of a large, low-cost talent pool, especially in the field of information technology. However, the sector has experienced a slowdown in global demand for software and encountered challenges in big urban centers, including rising costs, high attrition rates, and difficulties in getting workers back to the office after the pandemic. According to a report by Ernst & Young cited by Reuters, multinationals are now expected to establish 'global capability centers' in tier-2 cities like Jaipur, Vadodara, Kochi, and Chandigarh. By 2030, the number of such centers is projected to reach 2,400, creating 2.6 million jobs and contributing over $100 billion to the Indian economy. This shift means professionals can expect more opportunities and potentially higher salaries in these smaller cities. Factors such as rising wages, declining accounting graduates in developed countries due to the pandemic, and visa restrictions have positioned India as a global hub for business services, including taxation, data analytics, cybersecurity, and customer management. India has doubled its share in global services trade to over 4 per cent from 2 per cent in 2005, making it one of the world's leading exporters of services, as the World Trade Organization estimated. Smaller cities and their untapped potential Large accounting firms are seizing the opportunity to tap into the talent pool and competitive advantages offered by these smaller Indian cities. Deloitte, which already employs over 100,000 people in India, plans to hire an additional 50,000 staff members within the next three years and expand its presence in new locations. Similarly, KPMG aims to hire over 20,000 employees over the same period. PwC hired approximately 12,500 professionals in the last fiscal year and expects to hire a similar number this year. The move by these accounting giants is expected to provide relief to the labor market, which has experienced slower hiring in the manufacturing and IT sectors due to global growth concerns. Prime Minister Narendra Modi has set a target of $400 billion for service exports in the current fiscal year, representing a 25 per cent increase from the previous year. Sunil Talati, president of the government-aided Services Export Promotion Council, believes that total services exports could surpass goods exports within the next five years, reaching $750 billion. Cities like Bhubaneswar in the eastern state of Odisha have witnessed the opening of offices by Deloitte, PwC, and IBM to cater to Indian and global clients. The establishment of these new offices in smaller cities has not only provided employment opportunities but also stimulated other sectors. Educational institutions have introduced new courses to meet the demand, while property developers have launched building projects. Additionally, the demand for office space in smaller cities has surged, resulting in a rent increase of up to 10 per cent, as reported by Knight Frank consultancy. Multinational and domestic accounting firms follow suit by moving their operations to smaller towns and increasing wages to retain skilled employees. Shortages of certified accounting professionals have been observed, prompting firms to adapt to the changing landscape and open offices in these emerging cities. The trend of major accounting firms investing in smaller Indian cities signifies a significant shift in the country's business landscape. These cities are now being recognized for their potential in offering cost-effective solutions and a talented workforce, attracting global players and driving economic growth in previously untapped regions. (With Inputs from Reuters)

Urbanisation reversed: Why major accounting firms are ditching India's metropolises

The cost of serving sandwiches alongside a cup of coffee in Australian coffee shops has skyrocketed to an unprecedented level, severely diminishing profit margins and triggering a wave of closures for establishments that managed to survive the impact of the COVID recession.

The price of one of Australia's most beloved coffee orders, the flat white, has surged by nearly one-fifth. Consequently, due to minimal profits and a dwindling base of loyal customers, caffe owners are actively seeking an exit strategy for their businesses.

In the pre-COVID era, hospitality establishments, constituting approximately one-third of Australia's small businesses, began advertising for sale. However, Reuters reports that selling agents have cited a recent surge in this trend as more businesses opt to sell, resulting in them discounting selling prices by as much as 50 percent of their historical market value. Shockingly, approximately one-sixth of cafes that are currently up for sale end up closing down before finding a buyer.

According to Peter Meredith, a broker at SBS Business Brokers who was quoted by Reuters, many of these hospitality vendors are experiencing exhaustion after enduring the challenges posed by COVID. Additionally, they express a sense of relief upon being able to terminate their leases and exit the industry.&nbsp;

The current inflationary situation is severely dampening the hopes of business owners. According to data presented by the Australian Securities and Investments Commission, business insolvencies reached their highest monthly rate in May, surpassing levels not seen in eight years. This spike can be attributed to the expiration of COVID-related government protections.

Reuters cited CreditorWatch, a credit reporting agency, with CEO Patrick Coghlan highlighting that construction firms have predominantly experienced insolvencies thus far. However, the hospitality sector is anticipated to surpass them in the coming year. Unlike business-to-business organizations, which can increase prices by 10 percent or 20 percent, the hospitality industry faces limitations in raising prices.

The ongoing conflict in Ukraine has had a significant impact on the Australian market, leading to inflationary pressures. Energy prices have surged by up to 30 percent, primarily due to disruptions in the coal and gas markets. Furthermore, wholesale produce costs have experienced a notable increase following years of extreme weather events.

Additionally, with unemployment rates reaching near-record lows, wages are on the rise. This includes wages for hospitality staff, who have faced increased reliance on third-party delivery platforms during the pandemic. These platforms often take a portion of the café's revenue as their cut.

In an effort to address the rising inflationary pressure, the central bank of Australia has implemented a series of interest rate hikes, totaling 400 basis points over a span of 14 months. This rapid tightening of monetary policy represents the fastest rate increase seen in a generation. While the central bank paused its rate hikes in July, it has issued a warning that further increases may be resumed if inflation, which currently stands at 7%, does not show signs of slowing down

The cost of serving sandwiches alongside a cup of coffee in Australian coffee shops has skyrocketed to an unprecedented level, severely diminishing profit margins and triggering a wave of closures for establishments that managed to survive the impact of the COVID recession.

The cost of serving sandwiches alongside a cup of coffee in Australian coffee shops has skyrocketed to an unprecedented level, severely diminishing profit margins and triggering a wave of closures for establishments that managed to survive the impact of the COVID recession. The price of one of Australia's most beloved coffee orders, the flat white, has surged by nearly one-fifth. Consequently, due to minimal profits and a dwindling base of loyal customers, caffe owners are actively seeking an exit strategy for their businesses. In the pre-COVID era, hospitality establishments, constituting approximately one-third of Australia's small businesses, began advertising for sale. However, Reuters reports that selling agents have cited a recent surge in this trend as more businesses opt to sell, resulting in them discounting selling prices by as much as 50 percent of their historical market value. Shockingly, approximately one-sixth of cafes that are currently up for sale end up closing down before finding a buyer. According to Peter Meredith, a broker at SBS Business Brokers who was quoted by Reuters, many of these hospitality vendors are experiencing exhaustion after enduring the challenges posed by COVID. Additionally, they express a sense of relief upon being able to terminate their leases and exit the industry. The current inflationary situation is severely dampening the hopes of business owners. According to data presented by the Australian Securities and Investments Commission, business insolvencies reached their highest monthly rate in May, surpassing levels not seen in eight years. This spike can be attributed to the expiration of COVID-related government protections. Reuters cited CreditorWatch, a credit reporting agency, with CEO Patrick Coghlan highlighting that construction firms have predominantly experienced insolvencies thus far. However, the hospitality sector is anticipated to surpass them in the coming year. Unlike business-to-business organizations, which can increase prices by 10 percent or 20 percent, the hospitality industry faces limitations in raising prices. The ongoing conflict in Ukraine has had a significant impact on the Australian market, leading to inflationary pressures. Energy prices have surged by up to 30 percent, primarily due to disruptions in the coal and gas markets. Furthermore, wholesale produce costs have experienced a notable increase following years of extreme weather events. Additionally, with unemployment rates reaching near-record lows, wages are on the rise. This includes wages for hospitality staff, who have faced increased reliance on third-party delivery platforms during the pandemic. These platforms often take a portion of the café's revenue as their cut. In an effort to address the rising inflationary pressure, the central bank of Australia has implemented a series of interest rate hikes, totaling 400 basis points over a span of 14 months. This rapid tightening of monetary policy represents the fastest rate increase seen in a generation. While the central bank paused its rate hikes in July, it has issued a warning that further increases may be resumed if inflation, which currently stands at 7%, does not show signs of slowing down

Australia's expensive coffee: how inflation has taken a toll on Australian coffee shops

Looks like Asia Pacific markets are on a rise, tracking moves on the Wall Street as US market snapped a three-day losing streak on Monday. Overnight in the United States the gains added 0.62%.

Asian markets snap losing streak | US markets continue bull run | World Business Watch

Meta's newest offering threads is on a dream run. The social media platform, which is being called 'twitter killer', has now got over 100 million users in just 5 days. It has now beaten open AI's ChatGPT to reach the milestone in the quickest time.

Threads fastest to 100 mn users | World Business News

The Reserve Bank of India (RBI) unveiled a groundbreaking draft regulation that grants debit, credit, and prepaid cardholders the authority to select their desired card network. This regulation marks a potential revolution in the global credit card industry, challenging the prevailing practice where card network options are predetermined through agreements between issuers and networks.

Promoting customer choice and flexibility

The RBI's draft circular prohibits card issuers from entering into agreements that restrict them from accessing services of other card networks. The current arrangements between card networks and issuers, including banks and non-banking institutions, are deemed inadequate in promoting customer choice and availability. The proposed regulation aims to enhance flexibility and competition in the credit card market, allowing users to choose the card network that best suits their preferences and requirements.

Under the new regulations, cardholders will have the flexibility to migrate to a different payment network while keeping their existing card accounts, balances, and credit history intact. This concept of card network portability enables consumers to transfer their card accounts from one network to another, similar to switching mobile service providers while retaining the same phone number.

Operational challenges and increased costs

While the draft regulation holds significant advantages for customers, such as decision-making authority and portability, banks may face operational challenges and increased costs. Banks will need to review existing agreements, establish new partnerships, adjust customer onboarding processes, provide additional training, and reevaluate customer profiling. The impact on the manufacturing process of banking cards is another factor that banks will need to evaluate in the coming months. With the proposed implementation date set for October 1, 2023, banks face a tight timeline of less than 90 days to implement the extensive organizational changes.

Primary Beneficiaries

The primary beneficiaries of this new regulation are customers, as card issuers will be obligated to offer more than one card network and provide the option for customers to choose their preferred network during card issuance or even afterward. This move also opens up the potential for innovative offerings by different network providers, offering broader advantages for customers in the future.

In India, authorized card networks, including MasterCard, Visa, American Express Banking Corp, Diners Club International, and National Payments Corporation of India - RuPay, partner with banks and non-banking financial institutions for card issuance. Previously, banks had been exclusively tying up with a few dominant networks, limiting customer choice. The RBI's proposed regulation aims to eliminate such restrictions and promote a level playing field for all card networks.

India's credit card market: A Snapshot

The credit card market in India has been booming, with credit card outstanding reaching Rs 2 lakh crore, a year-on-year rise of 29.7 per cent. Banks have issued 8.65 crore credit cards as of April 2023, with monthly credit payments exceeding Rs one lakh crore. The surge in credit card usage reflects the growing purchasing power of the country. However, it is crucial to ensure responsible practices by credit card companies while issuing cards, considering the significant outstanding debt.

RuPay: Striving for dominance

RuPay, India's domestic card payment network, has been striving to gain a foothold in the credit card space, which is dominated by international networks like Visa and MasterCard. RuPay's dominance in the debit card market, capturing 65 per cent of the market share, contrasts with its minimal presence in the credit card space. The government has been promoting RuPay through initiatives such as linking credit cards to UPI and may consider further incentives to boost its adoption.

The RBI's draft regulation is expected to significantly change the credit card landscape, providing customers with greater choices and fostering competition among card networks. Stakeholders have been invited to provide their comments on the proposal, with the potential mandate expected to come into effect in October.

(With Inputs from Agencies)

The Reserve Bank of India (RBI) unveiled a groundbreaking draft regulation that grants debit, credit, and prepaid cardholders the authority to select their desired card network.

The Reserve Bank of India (RBI) unveiled a groundbreaking draft regulation that grants debit, credit, and prepaid cardholders the authority to select their desired card network. This regulation marks a potential revolution in the global credit card industry, challenging the prevailing practice where card network options are predetermined through agreements between issuers and networks. Promoting customer choice and flexibility The RBI's draft circular prohibits card issuers from entering into agreements that restrict them from accessing services of other card networks. The current arrangements between card networks and issuers, including banks and non-banking institutions, are deemed inadequate in promoting customer choice and availability. The proposed regulation aims to enhance flexibility and competition in the credit card market, allowing users to choose the card network that best suits their preferences and requirements. Under the new regulations, cardholders will have the flexibility to migrate to a different payment network while keeping their existing card accounts, balances, and credit history intact. This concept of card network portability enables consumers to transfer their card accounts from one network to another, similar to switching mobile service providers while retaining the same phone number. Operational challenges and increased costs While the draft regulation holds significant advantages for customers, such as decision-making authority and portability, banks may face operational challenges and increased costs. Banks will need to review existing agreements, establish new partnerships, adjust customer onboarding processes, provide additional training, and reevaluate customer profiling. The impact on the manufacturing process of banking cards is another factor that banks will need to evaluate in the coming months. With the proposed implementation date set for October 1, 2023, banks face a tight timeline of less than 90 days to implement the extensive organizational changes. Primary Beneficiaries The primary beneficiaries of this new regulation are customers, as card issuers will be obligated to offer more than one card network and provide the option for customers to choose their preferred network during card issuance or even afterward. This move also opens up the potential for innovative offerings by different network providers, offering broader advantages for customers in the future. In India, authorized card networks, including MasterCard, Visa, American Express Banking Corp, Diners Club International, and National Payments Corporation of India - RuPay, partner with banks and non-banking financial institutions for card issuance. Previously, banks had been exclusively tying up with a few dominant networks, limiting customer choice. The RBI's proposed regulation aims to eliminate such restrictions and promote a level playing field for all card networks. India's credit card market: A Snapshot The credit card market in India has been booming, with credit card outstanding reaching Rs 2 lakh crore, a year-on-year rise of 29.7 per cent. Banks have issued 8.65 crore credit cards as of April 2023, with monthly credit payments exceeding Rs one lakh crore. The surge in credit card usage reflects the growing purchasing power of the country. However, it is crucial to ensure responsible practices by credit card companies while issuing cards, considering the significant outstanding debt. RuPay: Striving for dominance RuPay, India's domestic card payment network, has been striving to gain a foothold in the credit card space, which is dominated by international networks like Visa and MasterCard. RuPay's dominance in the debit card market, capturing 65 per cent of the market share, contrasts with its minimal presence in the credit card space. The government has been promoting RuPay through initiatives such as linking credit cards to UPI and may consider further incentives to boost its adoption. The RBI's draft regulation is expected to significantly change the credit card landscape, providing customers with greater choices and fostering competition among card networks. Stakeholders have been invited to provide their comments on the proposal, with the potential mandate expected to come into effect in October. (With Inputs from Agencies)

Credit card network revolution: RBI grants Indian customers the power to choose

In the wake of labour shortages in Europe and the US, the employment landscape has evolved, presenting novel challenges in the field of human resources in a post-COVID world. Employers and employees alike are seeking solutions that facilitate seamless HR processes for cross-border remote work arrangements. Four years ago, two MIT graduates recognised these challenges and devised a concept to overcome the limitations of cross-border HR services. Today, their venture, Deel, stands as the fastest-growing Software-as-a-Service (SaaS) company in history. Now, Deel has set its sights on India, with plans to launch its operations in the country later this year.

Indian engineers, IT professionals, and healthcare workers are highly sought after worldwide for their technical expertise, problem-solving skills, and strong work ethics. Countries such as Germany, the UK, and the US consider India a valuable source of potential candidates, particularly in STEM (Science, Technology, Engineering, and Mathematics) fields.

However, beyond cultural and language barriers, companies often encounter difficulties in seamlessly onboarding and managing the payroll of these professionals. This poses a challenge for employers looking to harness the skills of Indian talent. Moreover, for employees, finding the right job without the need for relocation can be a significant hurdle. Many talented individuals face difficulties in accessing suitable employment opportunities in their desired locations.

In 2019, San Francisco-based entrepreneurs Alex Bouaziz and Shuo Wang identified this pressing issue and recognized the need for a global HR system. Their solution aimed to assist companies in paying their remote workers worldwide while ensuring compliance with contractual and legal frameworks. Over the past four years, the duo has actively addressed these challenges by bridging the gap between employers and employees through Deel, a comprehensive global HR company.

The significance of India in the realm of comprehensive HR services cannot be ignored, prompting Deel's expansion plans into the country. Edwin Daryl Dy, Deel's APAC Community Head, recently met with community members in Bangalore. He also discussed the company's operations and future plans. Daryl emphasised Deel's commitment to revolutionising the management of global teams and acknowledged India as the third-fastest growing country in terms of hiring rates, with the second-highest rate of workers being hired. He also expressed the company's intention to reshape the remote work landscape in India, focusing on aspects such as culture, onboarding, local payroll, and compliance.

Deel's mission is to provide people with the opportunity to work for top companies globally, regardless of their physical location. As a testament to its success, the startup currently boasts a vast network of independent contractors across the Asia-Pacific region and maintains a significant presence within India's thriving freelance market, with 6,442 independent contractors based in the country.

With a paradigm shift from office-based to remote work witnessed in various organisations worldwide, the debate over the ideal work environment continues. Deel exemplifies this shift, as it operates without a physical office anywhere in the world. All of its employees work remotely, catering to the needs of remote workers and businesses engaging freelancers. Furthermore, Deel organises meetings in different countries to facilitate networking and socialising opportunities. The recent community meetup held in Bangalore marked a significant milestone as Deel's first physical event in India.

Presently operating in over 150 countries, Deel enables individuals to receive payments in more than 120 currencies, including cryptocurrencies. Among its notable offerings, the Deel Virtual Card simplifies transactions for freelancers operating in the global marketplace, facilitating seamless local and international payments. Following its official launch, Deel plans to promote the card in India.

Regarding the advantages of the Virtual Card, Daryl stated, "The Virtual Card's ability to retain earnings in foreign currency is a significant advantage, particularly for Indian freelancers. By allowing transactions in US Dollars, it empowers Indian freelancers to navigate the challenges posed by inflation, avoid potential currency fluctuations, and maintain financial stability."

Deel's user-friendly platform streamlines the management of global teams, offering essential features for hiring, managing, and compensating employees worldwide. The company engages with clients looking to hire talent from other countries, providing the necessary services to facilitate cross-border employment. For instance, if a US company intends to hire talent from India, Deel assists in the hiring process while providing compliance services, payroll management, and other HR services as required.

As Deel prepares to enter the Indian market, it holds significant potential to revolutionise the management of remote work, offering comprehensive HR solutions for both businesses and individuals. With its impressive track record and a market valuation of $12 billion, Deel's expansion in India is expected to have a profound impact on the country's evolving job market.

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In the wake of labour shortages in Europe and the US, the employment landscape has evolved, presenting novel challenges in the field of human resources in a post-COVID world.

In the wake of labour shortages in Europe and the US, the employment landscape has evolved, presenting novel challenges in the field of human resources in a post-COVID world. Employers and employees alike are seeking solutions that facilitate seamless HR processes for cross-border remote work arrangements. Four years ago, two MIT graduates recognised these challenges and devised a concept to overcome the limitations of cross-border HR services. Today, their venture, Deel, stands as the fastest-growing Software-as-a-Service (SaaS) company in history. Now, Deel has set its sights on India, with plans to launch its operations in the country later this year. Indian engineers, IT professionals, and healthcare workers are highly sought after worldwide for their technical expertise, problem-solving skills, and strong work ethics. Countries such as Germany, the UK, and the US consider India a valuable source of potential candidates, particularly in STEM (Science, Technology, Engineering, and Mathematics) fields. However, beyond cultural and language barriers, companies often encounter difficulties in seamlessly onboarding and managing the payroll of these professionals. This poses a challenge for employers looking to harness the skills of Indian talent. Moreover, for employees, finding the right job without the need for relocation can be a significant hurdle. Many talented individuals face difficulties in accessing suitable employment opportunities in their desired locations. In 2019, San Francisco-based entrepreneurs Alex Bouaziz and Shuo Wang identified this pressing issue and recognized the need for a global HR system. Their solution aimed to assist companies in paying their remote workers worldwide while ensuring compliance with contractual and legal frameworks. Over the past four years, the duo has actively addressed these challenges by bridging the gap between employers and employees through Deel, a comprehensive global HR company. The significance of India in the realm of comprehensive HR services cannot be ignored, prompting Deel's expansion plans into the country. Edwin Daryl Dy, Deel's APAC Community Head, recently met with community members in Bangalore. He also discussed the company's operations and future plans. Daryl emphasised Deel's commitment to revolutionising the management of global teams and acknowledged India as the third-fastest growing country in terms of hiring rates, with the second-highest rate of workers being hired. He also expressed the company's intention to reshape the remote work landscape in India, focusing on aspects such as culture, onboarding, local payroll, and compliance. Deel's mission is to provide people with the opportunity to work for top companies globally, regardless of their physical location. As a testament to its success, the startup currently boasts a vast network of independent contractors across the Asia-Pacific region and maintains a significant presence within India's thriving freelance market, with 6,442 independent contractors based in the country. With a paradigm shift from office-based to remote work witnessed in various organisations worldwide, the debate over the ideal work environment continues. Deel exemplifies this shift, as it operates without a physical office anywhere in the world. All of its employees work remotely, catering to the needs of remote workers and businesses engaging freelancers. Furthermore, Deel organises meetings in different countries to facilitate networking and socialising opportunities. The recent community meetup held in Bangalore marked a significant milestone as Deel's first physical event in India. Presently operating in over 150 countries, Deel enables individuals to receive payments in more than 120 currencies, including cryptocurrencies. Among its notable offerings, the Deel Virtual Card simplifies transactions for freelancers operating in the global marketplace, facilitating seamless local and international payments. Following its official launch, Deel plans to promote the card in India. Regarding the advantages of the Virtual Card, Daryl stated, "The Virtual Card's ability to retain earnings in foreign currency is a significant advantage, particularly for Indian freelancers. By allowing transactions in US Dollars, it empowers Indian freelancers to navigate the challenges posed by inflation, avoid potential currency fluctuations, and maintain financial stability." Deel's user-friendly platform streamlines the management of global teams, offering essential features for hiring, managing, and compensating employees worldwide. The company engages with clients looking to hire talent from other countries, providing the necessary services to facilitate cross-border employment. For instance, if a US company intends to hire talent from India, Deel assists in the hiring process while providing compliance services, payroll management, and other HR services as required. As Deel prepares to enter the Indian market, it holds significant potential to revolutionise the management of remote work, offering comprehensive HR solutions for both businesses and individuals. With its impressive track record and a market valuation of $12 billion, Deel's expansion in India is expected to have a profound impact on the country's evolving job market. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Multibillion San Francisco based all-in-one HR company eyes Indian market

Fixed deposits are considered one of the safest investment options in India. They are regulated and monitored by the Reserve Bank of India (RBI) and offered by banks and non-banking financial institutions across India. FDs have, for decades, been a trusted choice of risk averse investors and senior citizens as a secure avenue to grow savings.

In the past, FDs lost their appeal to some extent due to falling interest rates, which led to increased investments in instruments yielding higher interest, such as mutual funds and certain government-backed schemes. &nbsp;

The economic uncertainty that followed the pandemic has led Indian investors to seek safer investment avenues which allow them to calculate the exact returns. This is among the primary reasons why FDs, offering a fixed rate of interest for a pre-set period, are appealing to risk-averse individuals. Rate hikes have added to the popularity that FDs enjoy. However, in case of interest rate drops, investors tend to shift their investments to other higher income generating products.&nbsp;

Investors with a low-risk appetite often view mutual funds and stocks as high-risk investments. Stocks, on the other hand, require one to gain a fair understanding of the investment before investing. Thus, investors in search of hassle-free options, tend to turn to FDs which are not subject to market fluctuations, thus ensuring a fixed rate of interest on deposits.&nbsp;

People across India rely on fixed deposits for several reasons – assured returns, safety of capital, easy liquidity, to name a few. Retired individuals prefer fixed deposits for their periodic fixed interest pay out. It ensures a stable income stream during retirement.

A look at recent RBI data gives us a glimpse of the how India invests in fixed deposits.&nbsp;

Today, the average bank FD is just over Rs.42,500. The average deposit amounts in Delhi and Maharashtra are much higher compared to other states in the country. The average deposit amount in Delhi hovers around Rs.80,000, followed by Maharashtra where the average deposit is hovers above Rs.73,000. States in the south of India weigh heavily on both volumes and averages, while states in the north-east like Mizoram and Sikkim are punching above their weight in terms of averages.&nbsp;

According to the data, Delhi accounts for around 10% of all deposits by volume in India and Maharashtra accounts for another 25%. Analysis of the investment preference data of an average BankBazaar customer revealed that FDs are the second most preferred investment, with the first being mutual funds. However, with interest rates having risen, we expect to see a greater preference for FDs in our upcoming market research. &nbsp;

Investing in FDs is flexible and convenient for Indians. Most banks and financial institutions with online platforms have made it easy for investors to open and manage their FD accounts. RBI data indicates that over 103 trillion is currently locked in 24.23 million FDs. This figure surpasses the 18.5 trillion held in current accounts and 59.70 trillion in savings accounts, which, put together, comes to a whopping 181 trillion. For comparison, the Indian GDP in 2021-22 was estimated to be 234 trillion.

Offering guaranteed returns and capital protection, FDs are a popular investment which has only gained popularity following the interest rate hikes. For investors averse to risk, FDs make for an ideal investment that provides easy liquidity, especially in times of emergencies. However, investors seeking higher returns might look to other, more suitable options to achieve their financial goals.

Adhil Shetty is the CEO of&nbsp;Bankbazaar.com

Fixed deposits are considered one of the safest investment options in India. They are regulated and monitored by the Reserve Bank of India (RBI) and offered by banks and non-banking financial institutions across India.

Fixed deposits are considered one of the safest investment options in India. They are regulated and monitored by the Reserve Bank of India (RBI) and offered by banks and non-banking financial institutions across India. FDs have, for decades, been a trusted choice of risk averse investors and senior citizens as a secure avenue to grow savings. In the past, FDs lost their appeal to some extent due to falling interest rates, which led to increased investments in instruments yielding higher interest, such as mutual funds and certain government-backed schemes. The economic uncertainty that followed the pandemic has led Indian investors to seek safer investment avenues which allow them to calculate the exact returns. This is among the primary reasons why FDs, offering a fixed rate of interest for a pre-set period, are appealing to risk-averse individuals. Rate hikes have added to the popularity that FDs enjoy. However, in case of interest rate drops, investors tend to shift their investments to other higher income generating products. Investors with a low-risk appetite often view mutual funds and stocks as high-risk investments. Stocks, on the other hand, require one to gain a fair understanding of the investment before investing. Thus, investors in search of hassle-free options, tend to turn to FDs which are not subject to market fluctuations, thus ensuring a fixed rate of interest on deposits. People across India rely on fixed deposits for several reasons – assured returns, safety of capital, easy liquidity, to name a few. Retired individuals prefer fixed deposits for their periodic fixed interest pay out. It ensures a stable income stream during retirement. A look at recent RBI data gives us a glimpse of the how India invests in fixed deposits. Today, the average bank FD is just over Rs.42,500. The average deposit amounts in Delhi and Maharashtra are much higher compared to other states in the country. The average deposit amount in Delhi hovers around Rs.80,000, followed by Maharashtra where the average deposit is hovers above Rs.73,000. States in the south of India weigh heavily on both volumes and averages, while states in the north-east like Mizoram and Sikkim are punching above their weight in terms of averages. According to the data, Delhi accounts for around 10% of all deposits by volume in India and Maharashtra accounts for another 25%. Analysis of the investment preference data of an average BankBazaar customer revealed that FDs are the second most preferred investment, with the first being mutual funds. However, with interest rates having risen, we expect to see a greater preference for FDs in our upcoming market research. Investing in FDs is flexible and convenient for Indians. Most banks and financial institutions with online platforms have made it easy for investors to open and manage their FD accounts. RBI data indicates that over 103 trillion is currently locked in 24.23 million FDs. This figure surpasses the 18.5 trillion held in current accounts and 59.70 trillion in savings accounts, which, put together, comes to a whopping 181 trillion. For comparison, the Indian GDP in 2021-22 was estimated to be 234 trillion. Offering guaranteed returns and capital protection, FDs are a popular investment which has only gained popularity following the interest rate hikes. For investors averse to risk, FDs make for an ideal investment that provides easy liquidity, especially in times of emergencies. However, investors seeking higher returns might look to other, more suitable options to achieve their financial goals. Adhil Shetty is the CEO of Bankbazaar.com

Decoded: How much Indians save in Fixed Deposits

Latin America and the Caribbean have achieved a groundbreaking milestone in foreign direct investment (FDI), as reported by the Economic Commission for Latin America and the Caribbean (ECLAC). In 2022, the region experienced an unprecedented surge in FDI, reaching a record high of $224.579 billion, marking a substantial 55.2 per cent increase compared to the previous year.

The remarkable growth in FDI is primarily attributed to increased investments in key countries, particularly Brazil, and significant growth across all components of FDI, with a notable focus on earnings reinvestment. The recovery of the region's economy, in line with the post-pandemic era, played a significant role in driving this surge. However, it remains uncertain if this trend will continue at similar levels in 2023, as highlighted in the annual report 'Foreign Direct Investment in Latin America and the Caribbean 2023.'

FDI inflows to Latin America and the Caribbean had not exceeded $200 billion since 2013, making the 2022 achievement even more significant. The report also highlights that FDI inflows accounted for 4.0 per cent of the region's gross domestic product (GDP), positively impacting the regional economy.

José Manuel Salazar-Xirinachs, Executive Secretary of ECLAC, emphasised the importance of attracting and maximising the contribution of FDI to sustainable and inclusive productive development. He stated that focusing on post-establishment productive development policies, promoting productive linkages, value-added activities, human resource development, infrastructure, logistics, and local capacity building are crucial for leveraging the benefits of FDI.

Global FDI landscape

On a global scale, the FDI landscape in 2022 displayed a heterogeneous pattern. While Latin America and the Caribbean, along with other regions, witnessed FDI growth, the United States and some European Union countries experienced a decrease. Overall, global FDI inflows contracted by 12 per cent, totaling $1.29 trillion.

Analysing FDI inflows within Latin America and the Caribbean, Brazil emerged as the top recipient, attracting 41 per cent of the regional total and ranking as the fifth-largest global FDI destination. Mexico followed with 17 per cent, while Chile, Colombia, Argentina, and Peru also received significant FDI shares.

The report highlights positive changes in FDI inflows to the Caribbean, primarily driven by increased investments in the Dominican Republic, which became the second-largest recipient country after Guyana.

FDI trends and transitions

In terms of sectors, the services sector accounted for 54 per cent of FDI inflows, with the manufacturing and natural resources sectors also experiencing rebounds. Financial services, electricity, natural gas, water, information and communications, and transportation-related services received the largest share of investments in the services sector as a whole.

The United States (38 per cent) and the European Union (17 per cent, excluding the Netherlands and Luxembourg) were the leading investors in the region. Interestingly, FDI from Latin American and Caribbean countries witnessed a significant increase, rising from 9 per cent to 14 per cent of the total.

Moreover, the report highlights an over 80 per cent increase in FDI from Latin American and Caribbean countries to both regional and global destinations. In 2022, transnational Latin American companies, referred to as translatinas, reached a historic high with $74.677 billion invested abroad, the highest amount recorded since the 1990s.

The report also emphasises the energy transition's role in driving economic growth and the need for governments to prioritize it within their product development policies and agendas. It suggests that increasing renewable energy supply could position the region as a production hub for goods currently produced in countries with less clean energy matrices. FDI can play a vital role in accelerating the energy transition, facilitating technology transfer, and fostering emerging technologies.

Importance of governance

ECLAC highlights the importance of governments in leading the coordination of strategies for successful energy transition and managing the reduction of non-renewable energy activities in line with climate commitments while mitigating economic and social costs. Additionally, the report underscores the significance of improving policies to attract investment, enhancing institutional capacities, and aligning FDI efforts with productive development strategies to foster sustainable growth.

With record-breaking FDI inflows, Latin America and the Caribbean have laid a solid foundation for economic recovery. By leveraging investments and focusing on strategic development, the region has the potential to drive sustainable and inclusive growth, creating a prosperous future for its nations and territories.

Latin America and the Caribbean have achieved a groundbreaking milestone in foreign direct investment (FDI), as reported by the Economic Commission for Latin America and the Caribbean (ECLAC).

Latin America and the Caribbean have achieved a groundbreaking milestone in foreign direct investment (FDI), as reported by the Economic Commission for Latin America and the Caribbean (ECLAC). In 2022, the region experienced an unprecedented surge in FDI, reaching a record high of $224.579 billion, marking a substantial 55.2 per cent increase compared to the previous year. The remarkable growth in FDI is primarily attributed to increased investments in key countries, particularly Brazil, and significant growth across all components of FDI, with a notable focus on earnings reinvestment. The recovery of the region's economy, in line with the post-pandemic era, played a significant role in driving this surge. However, it remains uncertain if this trend will continue at similar levels in 2023, as highlighted in the annual report 'Foreign Direct Investment in Latin America and the Caribbean 2023.' FDI inflows to Latin America and the Caribbean had not exceeded $200 billion since 2013, making the 2022 achievement even more significant. The report also highlights that FDI inflows accounted for 4.0 per cent of the region's gross domestic product (GDP), positively impacting the regional economy. José Manuel Salazar-Xirinachs, Executive Secretary of ECLAC, emphasised the importance of attracting and maximising the contribution of FDI to sustainable and inclusive productive development. He stated that focusing on post-establishment productive development policies, promoting productive linkages, value-added activities, human resource development, infrastructure, logistics, and local capacity building are crucial for leveraging the benefits of FDI. Global FDI landscape On a global scale, the FDI landscape in 2022 displayed a heterogeneous pattern. While Latin America and the Caribbean, along with other regions, witnessed FDI growth, the United States and some European Union countries experienced a decrease. Overall, global FDI inflows contracted by 12 per cent, totaling $1.29 trillion. Analysing FDI inflows within Latin America and the Caribbean, Brazil emerged as the top recipient, attracting 41 per cent of the regional total and ranking as the fifth-largest global FDI destination. Mexico followed with 17 per cent, while Chile, Colombia, Argentina, and Peru also received significant FDI shares. The report highlights positive changes in FDI inflows to the Caribbean, primarily driven by increased investments in the Dominican Republic, which became the second-largest recipient country after Guyana. FDI trends and transitions In terms of sectors, the services sector accounted for 54 per cent of FDI inflows, with the manufacturing and natural resources sectors also experiencing rebounds. Financial services, electricity, natural gas, water, information and communications, and transportation-related services received the largest share of investments in the services sector as a whole. The United States (38 per cent) and the European Union (17 per cent, excluding the Netherlands and Luxembourg) were the leading investors in the region. Interestingly, FDI from Latin American and Caribbean countries witnessed a significant increase, rising from 9 per cent to 14 per cent of the total. Moreover, the report highlights an over 80 per cent increase in FDI from Latin American and Caribbean countries to both regional and global destinations. In 2022, transnational Latin American companies, referred to as translatinas, reached a historic high with $74.677 billion invested abroad, the highest amount recorded since the 1990s. The report also emphasises the energy transition's role in driving economic growth and the need for governments to prioritize it within their product development policies and agendas. It suggests that increasing renewable energy supply could position the region as a production hub for goods currently produced in countries with less clean energy matrices. FDI can play a vital role in accelerating the energy transition, facilitating technology transfer, and fostering emerging technologies. Importance of governance ECLAC highlights the importance of governments in leading the coordination of strategies for successful energy transition and managing the reduction of non-renewable energy activities in line with climate commitments while mitigating economic and social costs. Additionally, the report underscores the significance of improving policies to attract investment, enhancing institutional capacities, and aligning FDI efforts with productive development strategies to foster sustainable growth. With record-breaking FDI inflows, Latin America and the Caribbean have laid a solid foundation for economic recovery. By leveraging investments and focusing on strategic development, the region has the potential to drive sustainable and inclusive growth, creating a prosperous future for its nations and territories.

FDI Frenzy: Latin America and the Caribbean break records with $224.579 billion inflow

Taiwan's Foxconn has decided to withdraw from a $19.5 billion semiconductor joint venture with Vedanta, the latest business challenge for the Indian conglomerate led by Chairman Anil Agarwal.

Here are some details on Vedanta and its recent challenges:

<h2>How Vedanta started</h2>

Anil Agarwal started his business in Mumbai as a scrap-metal dealer and bought his first company, a cable manufacturing unit, in 1976. He then expanded his empire across India, Zambia, Namibia, Ireland and South Africa and later entered the oil and gas sector.

Also read | <a href="https://www.wionews.com/business-economy/foxconn-pulls-out-of-195bn-semiconductor-plant-in-india-minister-says-wont-impact-fab-goals-613964">Foxconn pulls out of $19.5bn semiconductor deal in India, minister says ‘won’t impact fab goals’</a>

London-headquartered Vedanta Resources controls the India unit, Vedanta Ltd. Agarwal took Vedanta Resources private in 2018. As of 2022, his net worth was $2 billion, ranking him 97th among India's richest, according to Forbes.

Vedanta diversified in 2017 when it bought a stake in Japan's LCD glass substrate manufacturer AvanStrate. Agarwal's son-in-law Akarsh Hebbar currently heads Vedanta's display and semiconductor business.

<h2>Debt woes</h2>

Vedanta Resources has been plagued by a rising debt pile. Credit ratings agency Moody's downgraded its rating on the company, while others raised concern about risks of a debt default.

Agarwal said in March there have been no debt defaults by the group. Vedanta's gross debt stood at $6.8 billion as of April end, after the company completed 75 per cent of its debt reduction commitment.

<h2>Foxconn JV</h2>

Vedanta-Foxconn had sought incentives from Prime Minister Narendra Modi's government and several Indian states for its Foxconn JV to manufacture semiconductors.

Foxconn pulled out of the JV on Monday, less than a year after it was a signed. Concerns about incentive approval delays by India's government aided Foxconn's decision to pull out of the venture, a source familiar with the matter told Reuters.

Reuters reported in June that the JV was proceeding slowly as Vedanta-Foxconn had got on board STMicroelectronics for licensing technology, but India's government wanted the European chipmaker to have a bigger role, like a stake in the partnership.

<h2>Other disputes</h2>

Vedanta's copper smelter in Tamil Nadu was shut down after 13 people died in 2018 when police fired on environmental protesters calling for the closure of the plant. Vedanta has now offered to sell the plant, having repeatedly denied allegations of the smelter being polluting.

Activists and locals have for years blocked Vedanta's plans to mine bauxite in the green, jungle-clad Niyamgiri hills in Odisha state in eastern India which the tribe people consider sacred.

In Zambia, a long-running dispute over Vedanta's Konkola Copper Mines (KCM) is close to being resolved, mines minister Paul Kabuswe said earlier this month. Relations between Zambia and Vedanta broke down several years ago and culminated in the state appointing a liquidator for the KCM assets in May 2019.

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Taiwan's Foxconn has decided to withdraw from a $19.5 billion semiconductor joint venture with Vedanta, the latest business challenge for the Indian conglomerate led by Chairman Anil Agarwal.

Taiwan's Foxconn has decided to withdraw from a $19.5 billion semiconductor joint venture with Vedanta, the latest business challenge for the Indian conglomerate led by Chairman Anil Agarwal. Here are some details on Vedanta and its recent challenges: How Vedanta started Anil Agarwal started his business in Mumbai as a scrap-metal dealer and bought his first company, a cable manufacturing unit, in 1976. He then expanded his empire across India, Zambia, Namibia, Ireland and South Africa and later entered the oil and gas sector. Also read | Foxconn pulls out of $19.5bn semiconductor deal in India, minister says ‘won’t impact fab goals’ London-headquartered Vedanta Resources controls the India unit, Vedanta Ltd. Agarwal took Vedanta Resources private in 2018. As of 2022, his net worth was $2 billion, ranking him 97th among India's richest, according to Forbes. Vedanta diversified in 2017 when it bought a stake in Japan's LCD glass substrate manufacturer AvanStrate. Agarwal's son-in-law Akarsh Hebbar currently heads Vedanta's display and semiconductor business. Debt woes Vedanta Resources has been plagued by a rising debt pile. Credit ratings agency Moody's downgraded its rating on the company, while others raised concern about risks of a debt default. Agarwal said in March there have been no debt defaults by the group. Vedanta's gross debt stood at $6.8 billion as of April end, after the company completed 75 per cent of its debt reduction commitment. Foxconn JV Vedanta-Foxconn had sought incentives from Prime Minister Narendra Modi's government and several Indian states for its Foxconn JV to manufacture semiconductors. Foxconn pulled out of the JV on Monday, less than a year after it was a signed. Concerns about incentive approval delays by India's government aided Foxconn's decision to pull out of the venture, a source familiar with the matter told Reuters. Reuters reported in June that the JV was proceeding slowly as Vedanta-Foxconn had got on board STMicroelectronics for licensing technology, but India's government wanted the European chipmaker to have a bigger role, like a stake in the partnership. Other disputes Vedanta's copper smelter in Tamil Nadu was shut down after 13 people died in 2018 when police fired on environmental protesters calling for the closure of the plant. Vedanta has now offered to sell the plant, having repeatedly denied allegations of the smelter being polluting. Activists and locals have for years blocked Vedanta's plans to mine bauxite in the green, jungle-clad Niyamgiri hills in Odisha state in eastern India which the tribe people consider sacred. In Zambia, a long-running dispute over Vedanta's Konkola Copper Mines (KCM) is close to being resolved, mines minister Paul Kabuswe said earlier this month. Relations between Zambia and Vedanta broke down several years ago and culminated in the state appointing a liquidator for the KCM assets in May 2019. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Troubles mount for Indian tycoon Anil Agarwal’s Vedanta as Foxconn ditches JV

Official data released on Monday revealed that Egypt's year-on-year headline inflation reached an unprecedented 35.7 percent&nbsp;in June, exceeding the previous record of 32.7 percent in May. This sharp acceleration highlights the acute economic challenges faced by the country since early last year and marks the highest inflation rate witnessed since 2017.

Since March 2022, Egypt has experienced significant challenges, as it has faced a scarcity of foreign currency and undergone multiple currency devaluations. The resulting inflationary pressure has further exacerbated the hardships experienced by Egyptians, who have witnessed a gradual erosion of their living standards in recent years.

Analysts had forecast a significant increase in annual urban consumer price inflation for June, attributing it to an unfavorable base effect and a rise in consumer demand during the annual Eid al-Adha festival.&nbsp;

The central bank of Egypt&nbsp;reported that core inflation, which excludes fuel and certain volatile food items, also reached a new record high of 41 percent, surpassing the previous month's figure of 40.3 percent. This persistent surge in inflation may exert pressure on the central bank to raise interest rates at its upcoming meeting scheduled for August 3. Notably, the bank has maintained interest rates unchanged in its last two meetings, following a cumulative increase of 1,000 basis points since March 2022.

In the aftermath of Russia's invasion of Ukraine, Egypt, the Arab world's most populous nation, took decisive action to address its economic vulnerabilities. This included a significant currency devaluation of over 50% since March 2022. The realization of these vulnerabilities prompted Egypt to seek financial assistance from the International Monetary Fund, resulting in a successful application for a $3 billion loan.

The first review of the IMF program, which was scheduled to take place, has been delayed due to uncertainties surrounding Egypt's commitment to implementing a flexible currency exchange rate and the government's efforts to bolster the private sector. Notably, these endeavors include the sale of stakes in state-owned enterprises.

In an attempt to mitigate the impact of inflation, the Egyptian government has taken steps to raise electricity tariffs, which could reinforce price pressures through the summer. Reuters quoted Allen Sandeep from Naeem Brokerage, who suggested that a rise in power tariffs in July might lead to an extended period of elevated annual inflation. However, even without the power rate hike, there may still be a degree of cooling in July due to the favorable comparison with the previous year's figures.

Official data released on Monday revealed that Egypt's year-on-year headline inflation reached an unprecedented 35.7 percent in June, exceeding the previous record of 32.

Official data released on Monday revealed that Egypt's year-on-year headline inflation reached an unprecedented 35.7 percent in June, exceeding the previous record of 32.7 percent in May. This sharp acceleration highlights the acute economic challenges faced by the country since early last year and marks the highest inflation rate witnessed since 2017. Since March 2022, Egypt has experienced significant challenges, as it has faced a scarcity of foreign currency and undergone multiple currency devaluations. The resulting inflationary pressure has further exacerbated the hardships experienced by Egyptians, who have witnessed a gradual erosion of their living standards in recent years. Analysts had forecast a significant increase in annual urban consumer price inflation for June, attributing it to an unfavorable base effect and a rise in consumer demand during the annual Eid al-Adha festival. The central bank of Egypt reported that core inflation, which excludes fuel and certain volatile food items, also reached a new record high of 41 percent, surpassing the previous month's figure of 40.3 percent. This persistent surge in inflation may exert pressure on the central bank to raise interest rates at its upcoming meeting scheduled for August 3. Notably, the bank has maintained interest rates unchanged in its last two meetings, following a cumulative increase of 1,000 basis points since March 2022. In the aftermath of Russia's invasion of Ukraine, Egypt, the Arab world's most populous nation, took decisive action to address its economic vulnerabilities. This included a significant currency devaluation of over 50% since March 2022. The realization of these vulnerabilities prompted Egypt to seek financial assistance from the International Monetary Fund, resulting in a successful application for a $3 billion loan. The first review of the IMF program, which was scheduled to take place, has been delayed due to uncertainties surrounding Egypt's commitment to implementing a flexible currency exchange rate and the government's efforts to bolster the private sector. Notably, these endeavors include the sale of stakes in state-owned enterprises. In an attempt to mitigate the impact of inflation, the Egyptian government has taken steps to raise electricity tariffs, which could reinforce price pressures through the summer. Reuters quoted Allen Sandeep from Naeem Brokerage, who suggested that a rise in power tariffs in July might lead to an extended period of elevated annual inflation. However, even without the power rate hike, there may still be a degree of cooling in July due to the favorable comparison with the previous year's figures.

Egypt's inflation pyramid: inflation surges to 35.7 percent in June

A day after pulling out of a joint venture deal with Indian conglomerate Vedanta, Taiwan's Foxconn released a statement saying that it plans on applying for incentives under India's semiconductor manufacturing plan.

Foxconn, on Monday, pulled out of the JV with Indian metals-to-oil conglomerate Vedanta.

Last year, Vedanta and Foxconn had signed an agreement to invest $19.5 billion to set up semiconductor and display production plants in western Gujarat state in a bid to help India become a major electronics hub.

In a statement on Monday, the company said it is working to remove the Foxconn name from the joint venture which is now a fully-owned entity of Vedanta.

"Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders," Hon Hai Technology Group (Foxconn) said.

It said that for over a year, the Taiwanese company and Vedanta have been working hard to bring a great semiconductor idea to reality.

“It has been a fruitful experience that can position both companies strongly going forward.”

“In order to explore more diverse development opportunities, according to a mutual agreement, Foxconn has determined it will not move forward on the joint venture with Vedanta,” it said.

The electronics giant on Tuesday said that it was working towards applying under India's Modified Programme for Semiconductors and Display Fab Ecosystem, a $10 billion plan proposing incentives of up to 50 per cent&nbsp;of capital costs for semiconductor and display manufacturing projects.

Also read: <a href="https://www.wionews.com/business-economy/foxconn-pulls-out-of-195bn-semiconductor-plant-in-india-minister-says-wont-impact-fab-goals-613964">Foxconn pulls out of $19.5bn semiconductor deal in India, minister says ‘won’t impact fab goals’</a>

"We have been actively reviewing the landscape for optimal partners," it said in a statement. "Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem."&nbsp;

<h2>Foxconn split, a setback to PM Modi's chipmaking plans for India</h2>

Foxconn's split with Vedanta is a setback for Indian Prime Minister Narendra Modi who made chipmaking a top priority in quest of a "new era" in electronics manufacturing. Modi lauded the JV last year as an "important step" in revving India's semiconductor manufacturing initiatives.

As per news agency Reuters reports, the company is in talks with several local and international partners to make semiconductors in India using mature chip manufacturing technology for products including EVs, two people with knowledge of the matter said, requesting anonymity.

"The company will continue to be there, just that it will find other partners," one of the people said.&nbsp;

Elucidating the reason behind the separation, Foxconn said, "There was recognition from both sides that the project was not moving fast enough" and there were other "challenging gaps we were not able to smoothly overcome."

"This is not a negative," Foxconn added.

(With inputs from agencies)

&nbsp;

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A day after pulling out of a joint venture deal with Indian conglomerate Vedanta, Taiwan's Foxconn released a statement saying that it plans on applying for incentives under India's semiconductor manufacturing plan.

A day after pulling out of a joint venture deal with Indian conglomerate Vedanta, Taiwan's Foxconn released a statement saying that it plans on applying for incentives under India's semiconductor manufacturing plan. Foxconn, on Monday, pulled out of the JV with Indian metals-to-oil conglomerate Vedanta. Last year, Vedanta and Foxconn had signed an agreement to invest $19.5 billion to set up semiconductor and display production plants in western Gujarat state in a bid to help India become a major electronics hub. In a statement on Monday, the company said it is working to remove the Foxconn name from the joint venture which is now a fully-owned entity of Vedanta. "Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders," Hon Hai Technology Group (Foxconn) said. It said that for over a year, the Taiwanese company and Vedanta have been working hard to bring a great semiconductor idea to reality. “It has been a fruitful experience that can position both companies strongly going forward.” “In order to explore more diverse development opportunities, according to a mutual agreement, Foxconn has determined it will not move forward on the joint venture with Vedanta,” it said. The electronics giant on Tuesday said that it was working towards applying under India's Modified Programme for Semiconductors and Display Fab Ecosystem, a $10 billion plan proposing incentives of up to 50 per cent of capital costs for semiconductor and display manufacturing projects. Also read: Foxconn pulls out of $19.5bn semiconductor deal in India, minister says ‘won’t impact fab goals’ "We have been actively reviewing the landscape for optimal partners," it said in a statement. "Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem." Foxconn split, a setback to PM Modi's chipmaking plans for India Foxconn's split with Vedanta is a setback for Indian Prime Minister Narendra Modi who made chipmaking a top priority in quest of a "new era" in electronics manufacturing. Modi lauded the JV last year as an "important step" in revving India's semiconductor manufacturing initiatives. As per news agency Reuters reports, the company is in talks with several local and international partners to make semiconductors in India using mature chip manufacturing technology for products including EVs, two people with knowledge of the matter said, requesting anonymity. "The company will continue to be there, just that it will find other partners," one of the people said. Elucidating the reason behind the separation, Foxconn said, "There was recognition from both sides that the project was not moving fast enough" and there were other "challenging gaps we were not able to smoothly overcome." "This is not a negative," Foxconn added. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Foxconn eyes incentives under India's chip scheme after withdrawing from $19.5bn semiconductor deal

India's Go First Airlines has invited investor interest in the company through an administrator appointed by the court. The carrier is in the middle of an insolvency process. A newspaper advertisement said on Monday (July 10) that the airline has invited an Expression of Interest (EoI).

The EoI signifies the formal commencement of seeking buyers or investors from a potential investment in line with requirements under Indian law.

Reuters said that Go Airlines did not respond to a request for comment.

In May, Go First Airlines filed for bankruptcy protection blaming "faulty" Pratt &amp; Whitney engines which it said were responsible for the grounding of about half of its 54 Airbus A320neos. Pratt &amp; Whitney had said that claims from Go Airlines were without merit.

According to regulations, the issuance and publication of Form G - related to the invitation for EoI - would be the "prescribed next - step for taking the insolvency to its logical conclusion," said Abhirup Dasgupta, a partner at HSA Advocates.

"The final resolution will, however, be subject to the crystallisation of the rights of the lessors," Dasgupta, who specialises in insolvency law but is not involved in Go First's proceedings, said.

<h2>Turbulent times</h2>

It has been a month of major turbulence for Go Airlines amid a surge in airfares to rattled aircraft lessor to thousands of employees staring at uncertainty. The cash-strapped airline Go&nbsp;First suspended flights from May 3.

As the government and other stakeholders hope that Go First restarts operations at the earliest, plans are being worked out for the budget airline's revival.

A section of Go First staff are optimistic about the operations restarting, while another is pessimistic, considering what happened to erstwhile Kingfisher Airlines and Jet Airways, reported Press Trust of India (PTI).

Earlier this week, senior executives of Go First discussed the revival plans with senior officials of the Directorate General of Civil Aviation (DGCA).

Apart from the uncertainty staring at more than 7,000 Go First staff, a significant fallout is the spike in air ticket prices on certain routes that used to be serviced by the airline, which was operating around 170-180 flights daily.

(With inputs from agencies)

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India's Go First Airlines has invited investor interest in the company through an administrator appointed by the court. The carrier is in the middle of an insolvency process.

India's Go First Airlines has invited investor interest in the company through an administrator appointed by the court. The carrier is in the middle of an insolvency process. A newspaper advertisement said on Monday (July 10) that the airline has invited an Expression of Interest (EoI). The EoI signifies the formal commencement of seeking buyers or investors from a potential investment in line with requirements under Indian law. Reuters said that Go Airlines did not respond to a request for comment. In May, Go First Airlines filed for bankruptcy protection blaming "faulty" Pratt & Whitney engines which it said were responsible for the grounding of about half of its 54 Airbus A320neos. Pratt & Whitney had said that claims from Go Airlines were without merit. According to regulations, the issuance and publication of Form G - related to the invitation for EoI - would be the "prescribed next - step for taking the insolvency to its logical conclusion," said Abhirup Dasgupta, a partner at HSA Advocates. "The final resolution will, however, be subject to the crystallisation of the rights of the lessors," Dasgupta, who specialises in insolvency law but is not involved in Go First's proceedings, said. Turbulent times It has been a month of major turbulence for Go Airlines amid a surge in airfares to rattled aircraft lessor to thousands of employees staring at uncertainty. The cash-strapped airline Go First suspended flights from May 3. As the government and other stakeholders hope that Go First restarts operations at the earliest, plans are being worked out for the budget airline's revival. A section of Go First staff are optimistic about the operations restarting, while another is pessimistic, considering what happened to erstwhile Kingfisher Airlines and Jet Airways, reported Press Trust of India (PTI). Earlier this week, senior executives of Go First discussed the revival plans with senior officials of the Directorate General of Civil Aviation (DGCA). Apart from the uncertainty staring at more than 7,000 Go First staff, a significant fallout is the spike in air ticket prices on certain routes that used to be serviced by the airline, which was operating around 170-180 flights daily. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Go First Airlines, in middle of insolvency process, invites investor bids

The world of Artificial Intelligence changed forever on November 30, 2022, when OpenAI's ChatGPT went public. By December 5, it had over one million users. That was faster than Facebook, Instagram and Spotify – all of them took more than a month to reach the landmark – but slower than Meta’s latest offering Threads.&nbsp;

ChatGPT, which allows users to give a command to receive a response, has so far been the best use-case of generative AI, a subcategory of Artificial Intelligence that can generate new content, including audio, code, images, text, simulations, and videos.

Generative AI’s value to the global economy and human productivity has not been missed by analysts. A recent McKinsey &amp; Co report suggests that generative AI could add $2.6 trillion to $4.4 trillion in economic output annually. That's more than the United Kingdom’s entire GDP in 2021.

The report&nbsp;‘The economic potential of generative AI: The next productivity frontier’&nbsp;suggests that 75 percent of generative AI’s use cases boil down to four key work areas: managing customer interactions, generating content for marketing and sales, generating software codes, and optimising Research &amp; Development models.

The banking and retail sector are all set to gain the most from the proliferation of generative AI. According to the report, the full utilisation of generative AI can add up to $200 billion to $340 billion annually to the global banking sector. Similarly, the retail and consumer-packaged goods sector can add up to $660 billion every year.&nbsp;

Impact on labour productivity

Workers and companies continue to worry about the impact of artificial intelligence-driven automation on jobs. If the report is to be believed, they are not wrong either. "Half of today’s work activities could be automated between 2030 and 2060, with a midpoint in 2045, or roughly a decade earlier than in our previous estimates," says the report.

However, it also suggests that generative AI can end up shaping the way people work. The report estimates that Generative AI can potentially automate work activities that absorb 60 to 70 percent of employees’ time today.

Moreover, the report states that generative AI will have more impact on knowledge-intensive jobs, which have occupations with higher wages and educational requirements, than on other jobs.&nbsp;

Generative AI, the report argues, can substantially increase labour productivity, adding about 0.1 to 0.6 percent annually till 2040. However, generative AI's impact on productivity will largely depend on the rate of its adoption in the coming years.

What experts say&nbsp;

Blockchain and tech evangelist Sharat Chandra says that the only way to remain relevant amid the rise of generative AI is by upskilling oneself. "An AI ready workforce can help organizations optimise their current processes and explore innovative use cases," he says.

He also says that early adopters of generative AI across sectors have been leveraging large language models – the lifeblood of artificial intelligence – to offer better product discovery, recommendations,and enhance customer experience.&nbsp;

Speaking on the lines of Chandra, Jaideep Kewalramani, Head of Employability Business &amp; COO at TeamLease EdTech, says that the current workforce needs to up-skill, re-skill and re-invent itself immediately.&nbsp;

“The future workforce can become generative AI practitioners in tandem with their higher education journey and acquire skills like learning programming and algorithm design,” he says, adding that workers with cognitive skills like critical thinking and problem solving will be relevant in the AI-focused workforce.

Large-scale job losses are perhaps the biggest threat emerging out of the rise of generative AI. However, tech expert Jaspreet Bindra, founder of UK-based Tech Whisperer, feels that there won’t be a major impact of generative AI on jobs.&nbsp;

“Some job losses will be taken away, mostly lower-end. Certain tasks will be impacted around the world. Generative AI will not take anyone’s job. But anyone embracing it will take others’ jobs… Every technology has led to job creation too,” he says.&nbsp;

He adds that India and other developing countries will be less affected by the rise of generative AI, compared to the more advanced countries.&nbsp;

However, all three experts add that governments need to bring in enabling regulations to prevent the misuse of artificial intelligence, including generative AI.&nbsp;

The world of Artificial Intelligence changed forever on November 30, 2022, when OpenAI's ChatGPT went public. By December 5, it had over one million users. That was faster than Facebook, Instagram and Spotify – all of them took more than a month to reach the landmark – but slower than Meta’s latest offering Threads.

The world of Artificial Intelligence changed forever on November 30, 2022, when OpenAI's ChatGPT went public. By December 5, it had over one million users. That was faster than Facebook, Instagram and Spotify – all of them took more than a month to reach the landmark – but slower than Meta’s latest offering Threads. ChatGPT, which allows users to give a command to receive a response, has so far been the best use-case of generative AI, a subcategory of Artificial Intelligence that can generate new content, including audio, code, images, text, simulations, and videos. Generative AI’s value to the global economy and human productivity has not been missed by analysts. A recent McKinsey & Co report suggests that generative AI could add $2.6 trillion to $4.4 trillion in economic output annually. That's more than the United Kingdom’s entire GDP in 2021. The report ‘The economic potential of generative AI: The next productivity frontier’ suggests that 75 percent of generative AI’s use cases boil down to four key work areas: managing customer interactions, generating content for marketing and sales, generating software codes, and optimising Research & Development models. The banking and retail sector are all set to gain the most from the proliferation of generative AI. According to the report, the full utilisation of generative AI can add up to $200 billion to $340 billion annually to the global banking sector. Similarly, the retail and consumer-packaged goods sector can add up to $660 billion every year. Impact on labour productivity Workers and companies continue to worry about the impact of artificial intelligence-driven automation on jobs. If the report is to be believed, they are not wrong either. "Half of today’s work activities could be automated between 2030 and 2060, with a midpoint in 2045, or roughly a decade earlier than in our previous estimates," says the report. However, it also suggests that generative AI can end up shaping the way people work. The report estimates that Generative AI can potentially automate work activities that absorb 60 to 70 percent of employees’ time today. Moreover, the report states that generative AI will have more impact on knowledge-intensive jobs, which have occupations with higher wages and educational requirements, than on other jobs. Generative AI, the report argues, can substantially increase labour productivity, adding about 0.1 to 0.6 percent annually till 2040. However, generative AI's impact on productivity will largely depend on the rate of its adoption in the coming years. What experts say Blockchain and tech evangelist Sharat Chandra says that the only way to remain relevant amid the rise of generative AI is by upskilling oneself. "An AI ready workforce can help organizations optimise their current processes and explore innovative use cases," he says. He also says that early adopters of generative AI across sectors have been leveraging large language models – the lifeblood of artificial intelligence – to offer better product discovery, recommendations,and enhance customer experience. Speaking on the lines of Chandra, Jaideep Kewalramani, Head of Employability Business & COO at TeamLease EdTech, says that the current workforce needs to up-skill, re-skill and re-invent itself immediately. “The future workforce can become generative AI practitioners in tandem with their higher education journey and acquire skills like learning programming and algorithm design,” he says, adding that workers with cognitive skills like critical thinking and problem solving will be relevant in the AI-focused workforce. Large-scale job losses are perhaps the biggest threat emerging out of the rise of generative AI. However, tech expert Jaspreet Bindra, founder of UK-based Tech Whisperer, feels that there won’t be a major impact of generative AI on jobs. “Some job losses will be taken away, mostly lower-end. Certain tasks will be impacted around the world. Generative AI will not take anyone’s job. But anyone embracing it will take others’ jobs… Every technology has led to job creation too,” he says. He adds that India and other developing countries will be less affected by the rise of generative AI, compared to the more advanced countries. However, all three experts add that governments need to bring in enabling regulations to prevent the misuse of artificial intelligence, including generative AI.

Thinking beyond ChatGPT: Generative AI is a trillion dollar technology waiting to be tapped

After working in the industry as a CA for quite some time and interacting with thousands of individuals in my journey, I realised most individuals start planning their taxes at the last minute. It leads them to last-minute hustle and bustle due to which the chances of not being able to save money in taxes get higher.

Efficient tax planning is a critical component of sound financial management, particularly for those well-versed in the intricacies of the financial domain. Taking a proactive approach to tax planning throughout the year can yield substantial benefits, enabling individuals to optimise their savings and ensure compliance with ever-evolving tax regulations.

Today, I will be telling you about the seven essential factors that you must keep in mind while strategizing your tax planning for the entire year.

By understanding these key considerations, you can navigate the complex landscape of tax planning with confidence and precision, thereby maximising your financial gains.

1. Estimate Your Income Tax Slab: Evaluate your income sources, including salary, interest incomes, and any other additional other sources of income, to estimate the tax bracket you fall into. By knowing your income tax slab, you can make informed decisions regarding tax-saving investments and strategies.

2. Identify Tax-Saving Investments that Resonate with Your Financial Goals: Tax-saving investments play a significant role in reducing your tax liability while aligning with your financial objectives. Explore various options such as Equity Linked Saving Schemes (ELSS), Public Provident Fund (PPF), Employee Provident Fund (EPF), National Pension System (NPS), and tax-saving fixed deposits . Consider factors such as risk tolerance, investment horizon, and expected returns to select investments that suit your needs.

3. Identify Investments that are Maturing in the Financial Year: Throughout the year, review your existing investments to identify those that are Maturing in the financial year. This includes fixed deposits, bonds, and other long-term investments. Some of these investments on maturity may attract capital gains, therefore, by keeping track of these investments, you can plan to reinvest the maturity proceeds wisely or use them for fulfilling financial goals or take steps to save tax wisely.

4. Review Your Tax Deducted at Source (TDS) to Claim a Refund: Regularly monitor the TDS deducted by your employer, financial institutions, or any other source. Cross-check the TDS deducted against the income earned and tax liabilities to ensure accuracy. In case excess TDS has been deducted, claim a refund by filing your income tax return. Regularly see that the TDS deducted has been deposited by the deductor to the government. Because if they don’t deposit this amount deducted then you won’t be able to claim a refund. Filing your returns accurately and promptly can help you avoid penalties and expedite the refund process.

5. Be Well-Documented to Claim Deductible Expenses: Maintaining proper documentation is crucial for claiming deductions on expenses such as medical bills, home loan interest, education expenses, and donations made to eligible charities. Keep track of invoices, receipts, and relevant documents to substantiate your claims during tax assessments. Being organised and thorough in maintaining records will simplify the tax filing process and prevent any potential issues with the tax authorities.

Bonus Tip

Since you all know that tax systems are ever-evolving and especially in the case of Indian tax laws, the government is constantly changing laws. For example, change in debt mutual funds as they were previously taxed based on holding period but now they are taxed according to the tax slab of the individuals.

Due to these changes in tax rules, your previous tax planning might become irrelevant and you have to plan your tax altogether again. If you miss out on any changes, your objective of saving money on tax will miss out as well.

Conclusion

It is important to understand the relevancy of tax planning and be continually aware of tax amendments not only because of efficiently saving your tax but also to avoid any penalties. Being proactive is much better than being reactive as being prepared in advance gives you time in coping with the challenges which are not in the case of reaction.

Moreover, the objective must be saving money on tax while achieving financial objectives, and tax saving shouldn’t be the sole objective of planning your taxes. All the investments made should be adherence to the path of financial goal

After working in the industry as a CA for quite some time and interacting with thousands of individuals in my journey, I realised most individuals start planning their taxes at the last minute.

After working in the industry as a CA for quite some time and interacting with thousands of individuals in my journey, I realised most individuals start planning their taxes at the last minute. It leads them to last-minute hustle and bustle due to which the chances of not being able to save money in taxes get higher. Efficient tax planning is a critical component of sound financial management, particularly for those well-versed in the intricacies of the financial domain. Taking a proactive approach to tax planning throughout the year can yield substantial benefits, enabling individuals to optimise their savings and ensure compliance with ever-evolving tax regulations. Today, I will be telling you about the seven essential factors that you must keep in mind while strategizing your tax planning for the entire year. By understanding these key considerations, you can navigate the complex landscape of tax planning with confidence and precision, thereby maximising your financial gains. 1. Estimate Your Income Tax Slab: Evaluate your income sources, including salary, interest incomes, and any other additional other sources of income, to estimate the tax bracket you fall into. By knowing your income tax slab, you can make informed decisions regarding tax-saving investments and strategies. 2. Identify Tax-Saving Investments that Resonate with Your Financial Goals: Tax-saving investments play a significant role in reducing your tax liability while aligning with your financial objectives. Explore various options such as Equity Linked Saving Schemes (ELSS), Public Provident Fund (PPF), Employee Provident Fund (EPF), National Pension System (NPS), and tax-saving fixed deposits . Consider factors such as risk tolerance, investment horizon, and expected returns to select investments that suit your needs. 3. Identify Investments that are Maturing in the Financial Year: Throughout the year, review your existing investments to identify those that are Maturing in the financial year. This includes fixed deposits, bonds, and other long-term investments. Some of these investments on maturity may attract capital gains, therefore, by keeping track of these investments, you can plan to reinvest the maturity proceeds wisely or use them for fulfilling financial goals or take steps to save tax wisely. 4. Review Your Tax Deducted at Source (TDS) to Claim a Refund: Regularly monitor the TDS deducted by your employer, financial institutions, or any other source. Cross-check the TDS deducted against the income earned and tax liabilities to ensure accuracy. In case excess TDS has been deducted, claim a refund by filing your income tax return. Regularly see that the TDS deducted has been deposited by the deductor to the government. Because if they don’t deposit this amount deducted then you won’t be able to claim a refund. Filing your returns accurately and promptly can help you avoid penalties and expedite the refund process. 5. Be Well-Documented to Claim Deductible Expenses: Maintaining proper documentation is crucial for claiming deductions on expenses such as medical bills, home loan interest, education expenses, and donations made to eligible charities. Keep track of invoices, receipts, and relevant documents to substantiate your claims during tax assessments. Being organised and thorough in maintaining records will simplify the tax filing process and prevent any potential issues with the tax authorities. Bonus Tip Since you all know that tax systems are ever-evolving and especially in the case of Indian tax laws, the government is constantly changing laws. For example, change in debt mutual funds as they were previously taxed based on holding period but now they are taxed according to the tax slab of the individuals. Due to these changes in tax rules, your previous tax planning might become irrelevant and you have to plan your tax altogether again. If you miss out on any changes, your objective of saving money on tax will miss out as well. Conclusion It is important to understand the relevancy of tax planning and be continually aware of tax amendments not only because of efficiently saving your tax but also to avoid any penalties. Being proactive is much better than being reactive as being prepared in advance gives you time in coping with the challenges which are not in the case of reaction. Moreover, the objective must be saving money on tax while achieving financial objectives, and tax saving shouldn’t be the sole objective of planning your taxes. All the investments made should be adherence to the path of financial goal

Want to save tax? Here are 5 tax planning mantras to know

The Indian startup ecosystem is currently experiencing a challenging funding landscape as we reach the halfway point of 2023. Global uncertainty, economic fragility, and a freeze on venture capital investments have combined to create a significant hurdle for these innovative companies. With the total value of VC investments barely reaching $4 billion between January and June, a five-fold decrease compared to the previous year, startups are finding it increasingly difficult to secure the necessary funding for growth and development, CNBC reported.

Funding Drought and Tech Downturn

Since mid-2022, the funding well has been running dry for Indian startups, marking the end of an era of easy money. This trend has become more apparent as Q2 of 2023 records the worst quarter in the last three years, highlighting a significant decline in funding. In fact, June 2023 hit a 34-month low, as per CNBC, reflecting the severity of the funding shortage. Both early-stage and growth-stage companies are affected, but growth-stage firms struggling to achieve profitability face the greatest challenges in securing investment.

Investor Scrutiny and Changing Landscape

Venture capitalists have become increasingly cautious and meticulous, scrutinising startups right from the entry stage. This rigorous approach has prompted concerns surrounding corporate governance, product-market fit, and unit economics. While seed and Series A investments remain relatively accessible, Series B and subsequent funding rounds have become increasingly challenging to secure. This has left growth-stage and late-stage companies in a precarious position, heavily reliant on a substantial capital runway to sustain their operations.

Sectors and Investors

The funding shortage has impacted startups across sectors, but certain industries have shown more resilience. E-commerce continues to lead in funding, while enterprise tech and software-as-a-service (SaaS) startups have attracted considerable interest. Artificial intelligence and machine learning startups hold the third position, reflecting the influence of the Chat GPT revolution. However, being an AI startup is no longer sufficient; venture capitalists now demand a strong business model and defensibility to ensure long-term success. Notably, climate tech startups in the electric vehicle (EV) sector have managed to secure over $1 billion in investments, with companies like Ola Electric leading the way. However, such deals have become scarcer, and the emergence of new unicorns has stalled.

Global Comparison and Hope for Recovery

While the Indian startup ecosystem faces funding challenges, India ranks globally among the top three funded geographies, trailing only the United States and the United Kingdom. Although the global decline in funding has had an impact, there is a silver lining, as India's position reflects investor confidence in its potential.&nbsp;

(With Inputs from Agencies)

The Indian startup ecosystem is currently experiencing a challenging funding landscape as we reach the halfway point of 2023. Global uncertainty, economic fragility, and a freeze on venture capital investments have combined to create a significant hurdle for these innovative companies.

The Indian startup ecosystem is currently experiencing a challenging funding landscape as we reach the halfway point of 2023. Global uncertainty, economic fragility, and a freeze on venture capital investments have combined to create a significant hurdle for these innovative companies. With the total value of VC investments barely reaching $4 billion between January and June, a five-fold decrease compared to the previous year, startups are finding it increasingly difficult to secure the necessary funding for growth and development, CNBC reported. Funding Drought and Tech Downturn Since mid-2022, the funding well has been running dry for Indian startups, marking the end of an era of easy money. This trend has become more apparent as Q2 of 2023 records the worst quarter in the last three years, highlighting a significant decline in funding. In fact, June 2023 hit a 34-month low, as per CNBC, reflecting the severity of the funding shortage. Both early-stage and growth-stage companies are affected, but growth-stage firms struggling to achieve profitability face the greatest challenges in securing investment. Investor Scrutiny and Changing Landscape Venture capitalists have become increasingly cautious and meticulous, scrutinising startups right from the entry stage. This rigorous approach has prompted concerns surrounding corporate governance, product-market fit, and unit economics. While seed and Series A investments remain relatively accessible, Series B and subsequent funding rounds have become increasingly challenging to secure. This has left growth-stage and late-stage companies in a precarious position, heavily reliant on a substantial capital runway to sustain their operations. Sectors and Investors The funding shortage has impacted startups across sectors, but certain industries have shown more resilience. E-commerce continues to lead in funding, while enterprise tech and software-as-a-service (SaaS) startups have attracted considerable interest. Artificial intelligence and machine learning startups hold the third position, reflecting the influence of the Chat GPT revolution. However, being an AI startup is no longer sufficient; venture capitalists now demand a strong business model and defensibility to ensure long-term success. Notably, climate tech startups in the electric vehicle (EV) sector have managed to secure over $1 billion in investments, with companies like Ola Electric leading the way. However, such deals have become scarcer, and the emergence of new unicorns has stalled. Global Comparison and Hope for Recovery While the Indian startup ecosystem faces funding challenges, India ranks globally among the top three funded geographies, trailing only the United States and the United Kingdom. Although the global decline in funding has had an impact, there is a silver lining, as India's position reflects investor confidence in its potential. (With Inputs from Agencies)

Funding Freefall: Indian startups take a dive in 2023

Taiwanese firm Foxconn on Monday said that it was pulling out of a joint venture deal with Indian conglomerate Vedanta to set up a semiconductor plant in western Gujarat state.

Last year, Vedanta and Foxconn signed an agreement to invest $19.5 billion to set up semiconductor and display production plants in Prime Minister Narendra Modi’s home state&nbsp;in a bid to help India become a major electronics hub.

In a statement on Monday, the company said it is working to remove the Foxconn name from the joint venture which is now a fully-owned entity of Vedanta.

"Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders," Hon Hai Technology Group (Foxconn) said.

It said that for&nbsp;over a year, the Taiwanese company and Vedanta have been working&nbsp;hard to bring a great semiconductor idea to reality.

“It has been a fruitful experience that can position both companies strongly going forward.”

“In order to explore more diverse development opportunities, according to a mutual agreement, Foxconn has determined it will not move forward on the joint venture with Vedanta,” it said.

<h2>After Apple, Foxconn, Cisco bets big on India</h2>

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/after-apple-foxconn-cisco-bets-big-on-india-591228/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

<h2>Blow to Make in India's ambitions?</h2>

The company further said that it “will continue to strongly support the government's 'Make In India' ambitions and establish a diversity of local partnerships that meet the needs of stakeholders”.

While the development might impede India’s plans to become a semiconductor hub, India’s junior IT and electronics minister Rajeev Chandrasekhar said he was optimistic that Foxconn’s decision will have little to no impact on the country’s plans.

"This decision of Foxconn to withdraw from its JV with Vedanta has no impact on India's semiconductor fab goals. None," he tweeted.

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<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
➡️This decision of Foxconn to withdraw from its JV wth Vedanta has no impact on India's <a href="https://twitter.com/hashtag/Semiconductor?src=hash&amp;ref_src=twsrc%5Etfw">#Semiconductor</a> Fab goals. None. 
 
➡️Both Foxconn n Vedanta have significant investments in India and are valued investors who are creating jobs n growth. 
 
➡️It was well known that both… <a href="https://t.co/0DQrwXeCIr">https://t.co/0DQrwXeCIr</a>
— Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) <a href="https://twitter.com/Rajeev_GoI/status/1678389567504916480?ref_src=twsrc%5Etfw">July 10, 2023</a></blockquote>
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He said that both companies have significant investments in India and are "valued investors who are creating jobs and growth".

"It was well known that both companies had no prior semicon experience or technology and were expected to source fab tech from a tech partner. While their JV VFSL had originally submitted a proposal for 28nm fab, they could not source an appropriate tech partner for that proposal (sic)," Chandrasekhar said.

Vedanta, on the other hand, said that it is "fully committed to its semiconductor fab project," after Foxconn's exit announcement.

“Vedanta reiterates that it is fully committed to its semiconductor fab project and we have lined up other partners to set up India’s first foundry," it said in a statement.

"We will continue to grow our semiconductor team, and we have the license for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM). We will shortly acquire a license for production-grade 28 nm as well."

WATCH WION LIVE HERE

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Taiwanese firm Foxconn on Monday said that it was pulling out of a joint venture deal with Indian conglomerate Vedanta to set up a semiconductor plant in western Gujarat state.

Taiwanese firm Foxconn on Monday said that it was pulling out of a joint venture deal with Indian conglomerate Vedanta to set up a semiconductor plant in western Gujarat state. Last year, Vedanta and Foxconn signed an agreement to invest $19.5 billion to set up semiconductor and display production plants in Prime Minister Narendra Modi’s home state in a bid to help India become a major electronics hub. In a statement on Monday, the company said it is working to remove the Foxconn name from the joint venture which is now a fully-owned entity of Vedanta. "Foxconn has no connection to the entity and efforts to keep its original name will cause confusion for future stakeholders," Hon Hai Technology Group (Foxconn) said. It said that for over a year, the Taiwanese company and Vedanta have been working hard to bring a great semiconductor idea to reality. “It has been a fruitful experience that can position both companies strongly going forward.” “In order to explore more diverse development opportunities, according to a mutual agreement, Foxconn has determined it will not move forward on the joint venture with Vedanta,” it said. After Apple, Foxconn, Cisco bets big on India Blow to Make in India's ambitions? The company further said that it “will continue to strongly support the government's 'Make In India' ambitions and establish a diversity of local partnerships that meet the needs of stakeholders”. While the development might impede India’s plans to become a semiconductor hub, India’s junior IT and electronics minister Rajeev Chandrasekhar said he was optimistic that Foxconn’s decision will have little to no impact on the country’s plans. "This decision of Foxconn to withdraw from its JV with Vedanta has no impact on India's semiconductor fab goals. None," he tweeted. ➡️This decision of Foxconn to withdraw from its JV wth Vedanta has no impact on India's #Semiconductor Fab goals. None. ➡️Both Foxconn n Vedanta have significant investments in India and are valued investors who are creating jobs n growth. ➡️It was well known that both… https://t.co/0DQrwXeCIr — Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) July 10, 2023 × He said that both companies have significant investments in India and are "valued investors who are creating jobs and growth". "It was well known that both companies had no prior semicon experience or technology and were expected to source fab tech from a tech partner. While their JV VFSL had originally submitted a proposal for 28nm fab, they could not source an appropriate tech partner for that proposal (sic)," Chandrasekhar said. Vedanta, on the other hand, said that it is "fully committed to its semiconductor fab project," after Foxconn's exit announcement. “Vedanta reiterates that it is fully committed to its semiconductor fab project and we have lined up other partners to set up India’s first foundry," it said in a statement. "We will continue to grow our semiconductor team, and we have the license for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM). We will shortly acquire a license for production-grade 28 nm as well." WATCH WION LIVE HERE

Foxconn pulls out of $19.5bn semiconductor deal in India, minister says ‘won’t impact fab goals’

The Chinese stock market is bracing for a potential shockwave as approximately $28 billion of locked-up funds are set to be released, Bloomberg reported. These funds, which have been held in mutual funds for the past three years, will allow frustrated investors to explore alternative investment options outside the realm of equities. However, this development introduces a new dynamic to the market, amplifying the uncertainties and pressures already affecting investor sentiment.

An Underperforming Economy

The impending wave of redemption arrives at a time when China's economy is underperforming following the lifting of strict COVID-19 lockdown measures last year. This underperformance has weakened market sentiment within the country, exacerbating concerns for investors.

Shanghai Banxia Investment Management Center, one of China's largest macro hedge funds, issued a warning in June, predicting that net outflows from three-year mutual and private funds would be 'inevitable.' These potential sales compound the market's struggles amid an economy losing momentum and a shortage of new fundraising opportunities.

Bloomberg cited Industry experts, such as Yang Ruyi, a fund manager at Shanghai Prospect Investment Management Co., who believe in a wave of redemption in the future given investors' desire for liquidity following the expiration of lock-up periods and the losses incurred by these funds.

Investors Rejoice

Investors have expressed their delight upon hearing news of the impending closure of these funds, as many stock-linked funds have experienced average losses of 0.4 percent since their inception in 2020, with less than half of them yielding a gain.

Data from Morningstar Inc., as cited in a Reuters report, reveals that all 13 funds established in 2021 with a two-year lock-up period were unprofitable, suffering an average loss of 13 per cent. Additionally, 185 products with a one-year lock-up period set to expire this year have declined by an average of 3.3 per cent.

However, a significant challenge awaits investors as they grapple with their patience. A recent survey conducted by Yinhua Fund Management Co., cited by Bloomberg, revealed that approximately 57 per cent of China's retail investors holding funds with high stock positions prefer to hold their investments for less than six months. Alarmingly, around 15 per cent of them even opt to sell out within a week.

Cautious Buying, Rapid Selling

The survey also highlighted that these investors exhibit cautious buying behavior but engage in rapid selling, presenting a considerable challenge for fund managers already facing a 'confidence crisis' among their clients.

The inability of investors to generate satisfactory returns despite sacrificing liquidity for several years has led to an 'expectation gap.' This gap further adds to the frustrations felt by investors. China has recently introduced new regulations for its $2.9 trillion private investment fund sector to enhance investor protection and promote innovation. These regulations, signed by Premier Li Qiang and set to take effect on September 1, include establishing a dedicated chapter for Venture Capital funds.

(With Inputs from Bloomberg)

The Chinese stock market is bracing for a potential shockwave as approximately $28 billion of locked-up funds are set to be released, Bloomberg reported. These funds, which have been held in mutual funds for the past three years, will allow frustrated investors to explore alternative investment options outside the realm of equities.

The Chinese stock market is bracing for a potential shockwave as approximately $28 billion of locked-up funds are set to be released, Bloomberg reported. These funds, which have been held in mutual funds for the past three years, will allow frustrated investors to explore alternative investment options outside the realm of equities. However, this development introduces a new dynamic to the market, amplifying the uncertainties and pressures already affecting investor sentiment. An Underperforming Economy The impending wave of redemption arrives at a time when China's economy is underperforming following the lifting of strict COVID-19 lockdown measures last year. This underperformance has weakened market sentiment within the country, exacerbating concerns for investors. Shanghai Banxia Investment Management Center, one of China's largest macro hedge funds, issued a warning in June, predicting that net outflows from three-year mutual and private funds would be 'inevitable.' These potential sales compound the market's struggles amid an economy losing momentum and a shortage of new fundraising opportunities. Bloomberg cited Industry experts, such as Yang Ruyi, a fund manager at Shanghai Prospect Investment Management Co., who believe in a wave of redemption in the future given investors' desire for liquidity following the expiration of lock-up periods and the losses incurred by these funds. Investors Rejoice Investors have expressed their delight upon hearing news of the impending closure of these funds, as many stock-linked funds have experienced average losses of 0.4 percent since their inception in 2020, with less than half of them yielding a gain. Data from Morningstar Inc., as cited in a Reuters report, reveals that all 13 funds established in 2021 with a two-year lock-up period were unprofitable, suffering an average loss of 13 per cent. Additionally, 185 products with a one-year lock-up period set to expire this year have declined by an average of 3.3 per cent. However, a significant challenge awaits investors as they grapple with their patience. A recent survey conducted by Yinhua Fund Management Co., cited by Bloomberg, revealed that approximately 57 per cent of China's retail investors holding funds with high stock positions prefer to hold their investments for less than six months. Alarmingly, around 15 per cent of them even opt to sell out within a week. Cautious Buying, Rapid Selling The survey also highlighted that these investors exhibit cautious buying behavior but engage in rapid selling, presenting a considerable challenge for fund managers already facing a 'confidence crisis' among their clients. The inability of investors to generate satisfactory returns despite sacrificing liquidity for several years has led to an 'expectation gap.' This gap further adds to the frustrations felt by investors. China has recently introduced new regulations for its $2.9 trillion private investment fund sector to enhance investor protection and promote innovation. These regulations, signed by Premier Li Qiang and set to take effect on September 1, include establishing a dedicated chapter for Venture Capital funds. (With Inputs from Bloomberg)

Chinese stock market on edge as $28 billion locked-up funds approach maturity

The Chinese stock market is bracing for a potential shockwave. That's not because of the slower-than-expected post-Covid recovery. But because billions locked up in stocks-linked funds are about to mature after 3 years. In the coming days, about 28 billion dollars in funds will be freed and analysts feel that investors will be keen to move their money away from equities.

Huge selloff expected in Chinese stocks amid uncertain economy

As the dust settles on the three-year tussle between the Chinese government and Jack Ma, it becomes clear just how costly this conflict has been for Ma's companies, Ant Group and Alibaba group holding ltd. The Chinese authorities imposed a hefty fine of nearly $1 billion on ant group, effectively ending their probe.

Jack Ma's clash: High cost for Ant Group & Alibaba

China's factory-gate prices experienced their sharpest decline in seven-and-a-half years in June, indicating a weakening demand for industrial and consumer products and highlighting concerns about the country's economic health. This data cited by Reuters, combined with the slowest consumer inflation since 2021, has intensified the call for policymakers to implement additional stimulus measures to revive sluggish demand.

According to the National Bureau of Statistics (NBS), the producer price index (PPI) recorded its ninth consecutive monthly drop in June, down 5.4 per cent compared to the previous year. This decline surpasses the 4.6 per cent decrease observed in the previous month and the 5.0 per cent projected by analysts in a Reuters poll. This steepest decline in the PPI since December 2015 reflects weakened domestic and foreign demand, particularly in the energy, metals, and chemicals sectors.

In contrast, the consumer price index (CPI) remained unchanged year-on-year in June, in contrast to the 0.2 per cent increase observed in May. This was mainly driven by a faster decline in pork prices. The result fell short of the expected 0.2 per cent rise and marked the slowest pace since February 2021. These lower-than-anticipated inflation figures negatively impacted financial markets, leading to a depreciation of the yuan and a decline in Asian stocks.

Economists at Capital Economics anticipate that headline inflation will rise to approximately 1 per cent by the end of the year. Nevertheless, they believe this increase will be moderate and not hinder the ability of the People's Bank of China (PBOC) to further loosen its monetary policy. They argue that fiscal policy will be the primary source of support, considering weak credit demand and currency pressure. They project a minimal additional policy rate cut of only 10 basis points for the remainder of the year. Beijing's target for average consumer inflation in 2023 is around 3 per cent, following a 2 per cent year-on-year price increase in 2022.

China recently implemented policy rate cuts and pledged additional measures to boost liquidity and stimulate household consumption. However, Reuters cited analysts, such as Bruce Pang, Chief Economist at Jones Lang Lasalle, who attributed the accelerating decline in the PPI to the weakened real estate and construction sectors and the strength of industrial production. Pang anticipates that the year-on-year decline in the PPI has likely reached its lowest point and expects a gradual narrowing in the year's second half.

Reuters also cited analysts who predicted further cuts in lending rates by China's central bank. They also expect reductions in the reserve requirements ratio and interest rates in the second half. However, economists caution that small rate cuts may not significantly impact loan demand as households and businesses focus on repairing balance sheets damaged by the COVID-19 pandemic and repaying debts. Consequently, Beijing will likely rely on fiscal stimulus and other measures to stimulate demand.

(With Inputs from Reuters)

China's factory-gate prices experienced their sharpest decline in seven-and-a-half years in June, indicating a weakening demand for industrial and consumer products and highlighting concerns about the country's economic health.

China's factory-gate prices experienced their sharpest decline in seven-and-a-half years in June, indicating a weakening demand for industrial and consumer products and highlighting concerns about the country's economic health. This data cited by Reuters, combined with the slowest consumer inflation since 2021, has intensified the call for policymakers to implement additional stimulus measures to revive sluggish demand. According to the National Bureau of Statistics (NBS), the producer price index (PPI) recorded its ninth consecutive monthly drop in June, down 5.4 per cent compared to the previous year. This decline surpasses the 4.6 per cent decrease observed in the previous month and the 5.0 per cent projected by analysts in a Reuters poll. This steepest decline in the PPI since December 2015 reflects weakened domestic and foreign demand, particularly in the energy, metals, and chemicals sectors. In contrast, the consumer price index (CPI) remained unchanged year-on-year in June, in contrast to the 0.2 per cent increase observed in May. This was mainly driven by a faster decline in pork prices. The result fell short of the expected 0.2 per cent rise and marked the slowest pace since February 2021. These lower-than-anticipated inflation figures negatively impacted financial markets, leading to a depreciation of the yuan and a decline in Asian stocks. Economists at Capital Economics anticipate that headline inflation will rise to approximately 1 per cent by the end of the year. Nevertheless, they believe this increase will be moderate and not hinder the ability of the People's Bank of China (PBOC) to further loosen its monetary policy. They argue that fiscal policy will be the primary source of support, considering weak credit demand and currency pressure. They project a minimal additional policy rate cut of only 10 basis points for the remainder of the year. Beijing's target for average consumer inflation in 2023 is around 3 per cent, following a 2 per cent year-on-year price increase in 2022. China recently implemented policy rate cuts and pledged additional measures to boost liquidity and stimulate household consumption. However, Reuters cited analysts, such as Bruce Pang, Chief Economist at Jones Lang Lasalle, who attributed the accelerating decline in the PPI to the weakened real estate and construction sectors and the strength of industrial production. Pang anticipates that the year-on-year decline in the PPI has likely reached its lowest point and expects a gradual narrowing in the year's second half. Reuters also cited analysts who predicted further cuts in lending rates by China's central bank. They also expect reductions in the reserve requirements ratio and interest rates in the second half. However, economists caution that small rate cuts may not significantly impact loan demand as households and businesses focus on repairing balance sheets damaged by the COVID-19 pandemic and repaying debts. Consequently, Beijing will likely rely on fiscal stimulus and other measures to stimulate demand. (With Inputs from Reuters)

Deflating Demand: China's factory gate prices plummet at record pace

Chinese authorities are reportedly set to impose a fine of at least 8 billion yuan ($1.1 billion) on Ant Group, signaling the end of the fintech company's extensive regulatory restructuring. Sources cited by Reuters revealed that the People's Bank of China (PBOC), spearheading the overhaul since Ant's abandoned $37 billion IPO in 2020, is expected to announce the penalty in the coming days. This substantial fine, one of the largest ever for an internet company in China, will allow Ant Group to obtain a financial holding company license, pursue growth, and eventually revive its plans for a stock market debut.

China's crackdown on private enterprises

The imposition of a fine on Ant Group would mark a significant milestone in China's crackdown on private enterprises, which commenced with the cancellation of Ant's IPO, resulting in substantial market value losses for several firms. At the time of its IPO suspension in mid-2020, Ant Group was valued at over $300 billion by certain investors. Since April 2021, the company has undergone extensive business restructuring, including transforming itself into a financial holding company, subjecting it to banking-like regulations and capital requirements.

While Ant and the PBOC have yet to respond, sources emphasised that the penalty is imminent. The sources also noted that central bank Deputy Governor Pan Gongsheng, recently appointed as the bank's party secretary, has been actively involved in Ant's regulatory revamp. Pan has participated in multiple meetings with the company regarding the fine and restructuring.

The National Financial Regulatory Administration (NFRA), a newly established governmental body under the State Council, now serves as the primary regulator responsible for granting Ant Group its financial holding company license, according to Reuters.&nbsp;

Largest penalty against a Chinese internet company

Reuters sources indicated that the final amount of the fine had been revised to a minimum of 8 billion yuan, surpassing the initially considered sum of approximately 5 billion yuan reported in April. This penalty would represent the largest regulatory fine ever levied against a Chinese internet company, exceeding the $1.2 billion fine imposed on ride-hailing giant Didi Global by China's cybersecurity regulator last year. Ant Group's affiliate, e-commerce titan Alibaba Group, also received a record-breaking fine of 18 billion yuan in 2021 for antitrust violations.

Aim to bolster private sector confidence

The potential fine for Ant Group comes as Chinese authorities aim to bolster confidence in the private sector, as the $17 trillion economy struggles to recover despite the earlier relaxation of COVID-19 restrictions. It also follows the return of billionaire Jack Ma to China earlier this year after an extended period overseas. Ma, the founder of Ant Group and Alibaba, withdrew from public view in late 2020 following a speech criticizing China's regulatory system, which was widely seen as a trigger for the subsequent industry crackdown. In January, Ma announced his decision to relinquish control of Ant Group as part of the ongoing revamp, despite previously holding over 50 per cent of the company's voting rights.

As the fine announcement draws near, the fintech industry eagerly awaits the outcome, which could have broader implications for the sector and private enterprises in China.

(With Inputs from Reuters)

Chinese authorities are reportedly set to impose a fine of at least 8 billion yuan ($1.1 billion) on Ant Group, signaling the end of the fintech company's extensive regulatory restructuring.

Chinese authorities are reportedly set to impose a fine of at least 8 billion yuan ($1.1 billion) on Ant Group, signaling the end of the fintech company's extensive regulatory restructuring. Sources cited by Reuters revealed that the People's Bank of China (PBOC), spearheading the overhaul since Ant's abandoned $37 billion IPO in 2020, is expected to announce the penalty in the coming days. This substantial fine, one of the largest ever for an internet company in China, will allow Ant Group to obtain a financial holding company license, pursue growth, and eventually revive its plans for a stock market debut. China's crackdown on private enterprises The imposition of a fine on Ant Group would mark a significant milestone in China's crackdown on private enterprises, which commenced with the cancellation of Ant's IPO, resulting in substantial market value losses for several firms. At the time of its IPO suspension in mid-2020, Ant Group was valued at over $300 billion by certain investors. Since April 2021, the company has undergone extensive business restructuring, including transforming itself into a financial holding company, subjecting it to banking-like regulations and capital requirements. While Ant and the PBOC have yet to respond, sources emphasised that the penalty is imminent. The sources also noted that central bank Deputy Governor Pan Gongsheng, recently appointed as the bank's party secretary, has been actively involved in Ant's regulatory revamp. Pan has participated in multiple meetings with the company regarding the fine and restructuring. The National Financial Regulatory Administration (NFRA), a newly established governmental body under the State Council, now serves as the primary regulator responsible for granting Ant Group its financial holding company license, according to Reuters. Largest penalty against a Chinese internet company Reuters sources indicated that the final amount of the fine had been revised to a minimum of 8 billion yuan, surpassing the initially considered sum of approximately 5 billion yuan reported in April. This penalty would represent the largest regulatory fine ever levied against a Chinese internet company, exceeding the $1.2 billion fine imposed on ride-hailing giant Didi Global by China's cybersecurity regulator last year. Ant Group's affiliate, e-commerce titan Alibaba Group, also received a record-breaking fine of 18 billion yuan in 2021 for antitrust violations. Aim to bolster private sector confidence The potential fine for Ant Group comes as Chinese authorities aim to bolster confidence in the private sector, as the $17 trillion economy struggles to recover despite the earlier relaxation of COVID-19 restrictions. It also follows the return of billionaire Jack Ma to China earlier this year after an extended period overseas. Ma, the founder of Ant Group and Alibaba, withdrew from public view in late 2020 following a speech criticizing China's regulatory system, which was widely seen as a trigger for the subsequent industry crackdown. In January, Ma announced his decision to relinquish control of Ant Group as part of the ongoing revamp, despite previously holding over 50 per cent of the company's voting rights. As the fine announcement draws near, the fintech industry eagerly awaits the outcome, which could have broader implications for the sector and private enterprises in China. (With Inputs from Reuters)

Ant group stung with a $1.1 billion fine: Fintech's regulatory odyssey ends

Byju's, the troubled edtech firm, is taking steps to address its current challenges by forming a Board Advisory Committee (BAC) to provide guidance to the CEO and advise on the company's governance structure. The committee will consist of independent directors and will focus on strategic advice related to the composition of the board and the governance structure suitable for Byju's scale and aspirations.

During a general meeting with shareholders, Byju's CEO, Byju Raveendran, discussed the progress made in resolving various issues. He assured shareholders that the term loan B resolution, Aakash initial public offering (IPO), and the financial audits for fiscal years 2022 and 2023 are being addressed. The newly appointed CFO, Ajay Goel, informed shareholders that the FY22 audit will be completed by September, while the FY23 audit is expected to conclude by December.

Clarifications amid resignations

Raveendran also discussed the recent resignation of three board members and clarified that their departures were unrelated to Deloitte's resignation as the company's auditor. He emphasised that the exits were amicable and mutually agreed upon.

Regarding the ongoing term loan B dispute, Raveendran expressed confidence in achieving a positive outcome through constructive discussions without court intervention. He mentioned that the company plans to hold another meeting with shareholders in the next few weeks.

Byju's promoters currently hold a 21 per cent stake in the company, with Byju Raveendran owning 15.90 per cent, his wife Divya Gokulnath holding 3.32 per cent, and his brother Riju Ravindran having 1.99 per cent.

Caught in a web of problems

The CEO announced the strategic decision to appoint BDO as Byju's statutory auditors for the next five years after Deloitte's exit due to the delay in filing the FY22 financial results. BDO has already commenced an audit of the entire group, including its subsidiaries.

The formation of the BAC aims to provide valuable input from independent directors with diverse corporate backgrounds and relevant experience. In three weeks, details regarding the committee's members and composition will be discussed at the next shareholders' meeting.

Byju's management assured shareholders that negotiations with lenders for term loan B are ongoing and are expected to yield a favorable outcome. Both parties involved are motivated to avoid legal proceedings and seek a resolution beneficial to all parties.

The company's subsidiaries, including Aakash, WhiteHat Jr, and Think &amp; Learn, are undergoing audits, with the FY22 audit expected to be completed by September and the FY23 audit by December.

A spokesperson for Byju's dismissed rumors of Raveendran stepping down or withdrawing from daily operations, stating that there was no discussion on potential CEO change during the general meeting.

Recent layoffs have affected approximately 1,000 employees across departments, bringing the company's total number of job cuts to around 3,500. These actions come amidst Byju's ongoing legal battle with lenders in the US court and the non-payment of $40 million in interest on a $1.2 billion term loan B.

(With Inputs from Reuters)

Byju's, the troubled edtech firm, is taking steps to address its current challenges by forming a Board Advisory Committee (BAC) to provide guidance to the CEO and advise on the company's governance structure.

Byju's, the troubled edtech firm, is taking steps to address its current challenges by forming a Board Advisory Committee (BAC) to provide guidance to the CEO and advise on the company's governance structure. The committee will consist of independent directors and will focus on strategic advice related to the composition of the board and the governance structure suitable for Byju's scale and aspirations. During a general meeting with shareholders, Byju's CEO, Byju Raveendran, discussed the progress made in resolving various issues. He assured shareholders that the term loan B resolution, Aakash initial public offering (IPO), and the financial audits for fiscal years 2022 and 2023 are being addressed. The newly appointed CFO, Ajay Goel, informed shareholders that the FY22 audit will be completed by September, while the FY23 audit is expected to conclude by December. Clarifications amid resignations Raveendran also discussed the recent resignation of three board members and clarified that their departures were unrelated to Deloitte's resignation as the company's auditor. He emphasised that the exits were amicable and mutually agreed upon. Regarding the ongoing term loan B dispute, Raveendran expressed confidence in achieving a positive outcome through constructive discussions without court intervention. He mentioned that the company plans to hold another meeting with shareholders in the next few weeks. Byju's promoters currently hold a 21 per cent stake in the company, with Byju Raveendran owning 15.90 per cent, his wife Divya Gokulnath holding 3.32 per cent, and his brother Riju Ravindran having 1.99 per cent. Caught in a web of problems The CEO announced the strategic decision to appoint BDO as Byju's statutory auditors for the next five years after Deloitte's exit due to the delay in filing the FY22 financial results. BDO has already commenced an audit of the entire group, including its subsidiaries. The formation of the BAC aims to provide valuable input from independent directors with diverse corporate backgrounds and relevant experience. In three weeks, details regarding the committee's members and composition will be discussed at the next shareholders' meeting. Byju's management assured shareholders that negotiations with lenders for term loan B are ongoing and are expected to yield a favorable outcome. Both parties involved are motivated to avoid legal proceedings and seek a resolution beneficial to all parties. The company's subsidiaries, including Aakash, WhiteHat Jr, and Think & Learn, are undergoing audits, with the FY22 audit expected to be completed by September and the FY23 audit by December. A spokesperson for Byju's dismissed rumors of Raveendran stepping down or withdrawing from daily operations, stating that there was no discussion on potential CEO change during the general meeting. Recent layoffs have affected approximately 1,000 employees across departments, bringing the company's total number of job cuts to around 3,500. These actions come amidst Byju's ongoing legal battle with lenders in the US court and the non-payment of $40 million in interest on a $1.2 billion term loan B. (With Inputs from Reuters)

Byju's puts focus on governance: Independent directors to drive revamp