India GDP grows at 4.5% in Q2 - slowest in six years. Fiscal deficit target for this FY already breached. After India, Japan may not join RCEP. Airtel offers INR9,500cr upfront cash for RCom assets. CCI approves 37.4% acquisition of Adani Gas by Total Group.
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Slowing and Steadily Losing the Race: India's GDP grew at the slowest pace in six years at 4.5% in the July-September Q2 quarter. This number was lower than Q1's 5% and the 7.1% for the same period last year. This also marks the sixth consecutive quarter of sagging growth.
The weak growth was the result of weak manufacturing, falling consumer demand and private investment and a drop in exports.
The declining speed reflects the ongoing economic slowdown that has affected virtually all sectors of the economy. It adds pressure on the government to launch more reforms to revive the economy's animal spirits.
Gross value added (GVA) growth during the second quarter stood at 4.3% against 4.9% in April-June this year and 6.9% in the September quarter last year. Gross fixed capital formation at current prices declined sharply to 1.02%, compared with 11.8% in the same quarter last year. BS
Another One Bites the Dust...: In more sobering news for the Indian economy, the country's April-October fiscal deficit has already exceeded the full-year target for this FY.
Fiscal deficit stood at INR7.2Lcr, which is 102.4% of the budgeted target for this fiscal year. Net tax receipts in this period were INR6.83Lcr while total expenditure was INR16.55Lcr. Moneycontrol
RCEP Jolt: India had left the Regional Comprehensive Economic Partnership - which would have formed the world's largest free trade area - earlier this month citing unresolved apprehensions. The remaining 15 members had then said that they would go ahead with the deal without India, adding that the door would be left open for New Delhi to join in the future.
Now, it has emerged that Japan is not considering signing on to RCEP without India onboard. More details here.
Planing Ahead: Well-informed and prudent planning will ensure that one is financially secure even post-retirement, free to pick up on hobbies, travel, or just do anything that one couldn't before. Starting early and investing in the right retirement savings products is perhaps the only way to reap fruits of prosperity later in life. Strangely, however, retirement planning is a lowly ranked financial goal for India’s working population.
Here's a look at five beneficial retirement planning products in India.
Speaking of leisure and travel, everyone is thrilled at the prospect of a vacation - exotic locations, mesmerising mountains, relaxing beaches and decadent food. However, planning a holiday at a short notice can often leave a huge dent on one's wallet. Click here for five tips and hacks to make your last-minute holiday plan more economical and enjoyable.
Go Ahead: The Competition Commission of India (CCI) has approved the acquisition of 37.4% shareholding and joint control by Total Group in Adani Gas.
CCI noted that the deal would contribute towards bridging the energy deficit, augment supply of natural gas in India, enable Total Group to provide services in a cost-efficient manner and meet the country's long-term need for cleaner energy. ET Energyworld
Adani Gas share price jumped over 10% on the back of the news before closing at INR160.70 (+7.53%).
In Other News: Shares of Future Group companies gained over 18% today as the CCI approved the 49% acquisition of stake in Future Coupons by Amazon.
Future Coupons own 7.3% shares in Future Retail, and with the transaction in motion, Amazon would acquire around 3.58% stake in Future Group. Moneycontrol
Betting High: Telecom operator Bharti Airtel has offered about INR9,500cr in cash for the assets of beleaguered Reliance Communications (RCom), which is undergoing insolvency proceedings.
Along with Bharti Airtel, VFSI Holdings Pte Ltd and UV Asset Reconstruction Company Limited have also submitted their bids.
Mukesh Ambani-led Reliance Jio Infocomm (RJio) has offered INR3,600cr as upfront cash payment but has not placed a bid on RCom’s spectrum assets or the company’s real estate. Hindu BusinessLine
Good to Know: Reliance Jio has introduced two new prepaid vouchers worth Rs 351 and Rs 199 in addition to the existing prepaid plans available for its Jio Fiber broadband service. Here are the details about the new plans.
However, unlike the big bang launch of Reliance Jio's mobile broadband services three years ago, the company’s plans for its fixed broadband services have been rather subdued. "While tariffs for its mobile services were far below competition, the tariffs announced for JioFiber three months ago was more or less in line with prevailing market rates." Considering Jio's target of reaching 20 million subscribers in the near-term, and 50 million subscribers eventually, it is rather imperative that the tariffs would need to come down. Livemint
From Chandni Chowk to Chicago: Black Friday is the first Friday after Thanksgiving Day in the US. It marks the beginning of Christmas shopping season in that country, with brands offering steep discounts and offers to lure buyers. Now, Black Friday fever is also catching up in India, with a wide range of brands and outlets betting on it to attract more consumers. More here.
Friday Read: The digital economy has upturned traditional definitions of economics in more than one way. For example, when we used to talk of the monopolies of yore, they were behemoths who quashed competition to sell sub-par goods with hefty price tags.Today, tech monopolies like Google and Facebook offer most of their services for free to consumers. But are their services actually free? Or, which is more likely, do they find other ways to charge consumers? And what would happen if these tech firms began charging consumers for using their platform? Or, conversely, if these firms were charged for availing customers' personal data and information, among other things?
Here's an interesting take on how the normal rules of competition have been invalidated by Big Tech.
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