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Personal Data Protection Bill Stalled, Printing of INR2,000 Notes Put On Hold, Govt's U-turn on E-Commerce FDI Policy et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Jan 4, 2019 3:26 PM 3 min read

Printing of INR2,000 notes put on hold. Personal Data Protection Bill likely to be tabled after General Elections 2019. US Slowdown’s Impact on Indian Tech.


Now to Today's Top Business News Stories in Our End Of Day Wrap Up:


Personal Data Protection Bill Can Wait, Apparently, Printing of INR2,000 Notes Put On Hold, Govt's U-turn on E-Commerce FDI Policy et al.



Apple suppliers slide in Asia. China’s manufacturing sector hit on back of a contracting PMI.


The What: A day after the tech giant cut its revenue forecast, stocks of Apple suppliers in Asia slumped amidst rising concerns of a global economic slowdown.


Up Close: In Japan, shares of Taiyo Yuden, a maker of parts for iPhones fell nearly 10%, while Murata Manufacturing was down about 8%. Other Apple suppliers including Sharp, Japan Display and Kyocera also traded lower. Taiwan’s Hon Hai Precision Industry, the iPhone-assembling company, known as Foxconn, fell 1.9%. In Hong Kong, Apple supplier AAC Technologies, which makes acoustic components for smartphones, fell 0.7%.


Pivot: As per a Quartz India report, having priced itself out in the Chinese market where cheaper, attractive options have rapidly come up, the tech giant now has more reasons to tap into the Indian market where it saw a substantial slowdown in revenue in the previous quarter on back of a hike in prices.


Some food for thought: An Associated Press article notes how the smartphone industry is going through significant headwinds - demand plummeting with no substantial upgrades to smartphones models which are increasingly being priced higher.  


Last Word: All this is complemented by China’s manufacturing PMI which fell to 49.4 in December, the lowest level since February 2016, augmenting fears of a slowdown in the world’s second largest economy. 



IT industry threatened (?) on back of US economy slowdown.


Tech faces the heat: As per a Livemint report, an economic slowdown in the USis likely to impact growth of the IT industry in India on back of apprehensions of companies cutting spending on technology.


Let’s play the devil’s advocate: On the contrary, an Economic Times report states that an economic slowdown would rather force companies in US to outsource more digital technology-led services. Moreover, as per experts, companies are already moving away from the traditional cost-arbitrage model, pivoting their business models to building value through productivity and IP.


Perspective: US accounts for around 70% of the business of the five largest companies, including TCS, Infosys, HCL Technologies, Wipro and Tech Mahindra.



Govt clarifies that E-commerce firms can sell private labels after outcry from stakeholders. Amazon and Flipkart seek extension of deadline to comply with the new regulations.


High level: In its recently released new changes to the FDI policy for the e-commerce sector, the Ministry of Commerce and Industry had determined that vendors which have either an equity participation from an e-commerce player or some sense of control on its inventory by an e-commerce company, is prohibited from selling its goods on the said platform. 


U-turn: DIPP clarified that the said restrictions do not apply to the so-called "private labels" of e-commerce companies.


Fun Exercise: If I am a retailer with a "private label", I am holding inventory or not?


Click here to read what the new FDI policy actually means and how can it hurt the retail giants?



Personal Data Protection Bill likely to be tabled after General Elections 2019.


The Bill: The Personal Data Protection Bill which was initially supposed to be tabled in the ongoing winter session is now likely to be introduced in the Parliament after the General Elections 2019.


Perspective: The Bill sets out how the personal data of individuals is processed by the government and private entities incorporated in India and abroad.


Ten Key Takeaways from the draft here.

Personal Data Protection Bill Can Wait, Apparently, Printing of INR2,000 Notes Put On Hold, Govt's U-turn on E-Commerce FDI Policy et al.


Printing of INR2,000 notes put on hold.


The What: As per a tweet by Economic Affairs Secretary Subhash Chandra Garg, there has been no decision taken yet regarding the production of INR2,000 notes because of their adequate circulation (35% of notes by value) in the system.


What did the Twitterati have to say?: At least Ira Dugal, the Banking and Finance Editor at BloombergQuint was amused by the outrage.


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