Business Today July 31, 2016

Anybody following business news would not have failed to note the giddy rise of Indian start-ups in the past couple of years, or the fact that some cold water has been poured on them this year by venture capitalists (VCS). While India has always had a start-up culture – think Dhirubhai Ambani and Reliance or, later, Infosys, to name just two famous examples – the advent of VC- funded start-ups, especially in the area of e-commerce and digital economy, really started in 1998/99. However, the first dotcom crash of 2000/01 saw a lot of entrepreneurs scurrying for cover, and VC funds suddenly dried up. It was over a decade before the next wave of digital/e-commerce start-ups came up, and VCs again started putting big money behind the ideas of untested,…

“Rexit”: A Tough Job for the Government This refers to your well presented cover story on the Reserve Bank of India Governor Raghuram Rajan’s proposed exit from office (Rexit) once his term ends in September 2016 (Unfinished Agenda, July 17). Rajan’s exit proposal is being widely discussed in the country and has caught the imagination of the media and the masses. And the media coverage has made it a prestige issue for both the government and Rajan alike. The opposition parties are already pointing fingers at the government but that is understandable as they have their own axe to grind. All said and done, Rajan has done his job quite expertly so far, and his replacement will have a tough job in extracting the country and its economy from the…

640,000 estimated job losses in five years in the Indian IT sector due to automation, according to IT consultancy HFS Research. That translates into a 28 per cent reduction from 2.28 million low-skilled jobs in 2015 to 1.64 million in 2021. PRIMA DONNA At a rally, either in Lucknow or Allahabad, the Congress Party is expected to announce Priyanka Gandhi Vadra as the face of the party’s campaign for the Uttar Pradesh Assembly polls – a last-ditch effort to turn the fortunes of the party, and a tacit acceptance that brand Rahul isn’t working. US DOUBT FIRE Underlining that India’s 7.5 per cent growth rate may be “overstated”, the US has said the Narendra Modi government has been slow to match its rhetoric in economic reforms. However, the report “Investment…

18-22 MAKING OF A FUTURE WHAT: ECOSOC High-level Segment 2016 WHEN: 18-22 July, New York WHAT TO LOOK FOR: The event will identify and deliberate on several key features meant to advance coordination, dialogue, follow-up and review of the 2030 Agenda for sustainable development, and have high-level dialogues with international financial and trade institutions, and government representatives. 29 DAIRY DIARY WHAT: Emerging Trends in Bovine and Non-bovine Dairy Sector WHEN: 29 July, Chandigarh WHAT TO LOOK FOR: The event organised by CII will discuss the therapeutic value of bovine and non-bovine milk, and find ways to develop skill and entrepreneurship,and establish scalable businesses for dairy and dairy food industries. 28-29 CREATE FOR CASH WHAT: 12th India Innovation Summit 2016 WHEN: 28-29 July, Bangalore WHAT TO LOOK FOR: The CII summit…

MOST INDUSTRIALISED STATES The Top 5 states own 53 per cent of India's total factories CAPITAL KINGS Among the Top 10, Gujarat, Karnataka and Kerala have seen highest CAGR in gross fixed capital formation Gross fixed capital formation is the increment to the value of goods and services contributed by the factory. It is calculated by deducting the value of total inputs and depreciation from gross value of output 2,323% Growth in the value of India’s gross industrial output since 1990/91 to reach `65.5 lakh crore HIGH-VALUE WARRIORS Gujarat, Maharashtra and Tamil Nadu together produce 45 per cent of India’s total industrial output WORKFORCE TOPPERS The Top 5 employs 54 per cent of all industrial employees in India Top 10 states with maximum employees in 2012/13 SME CHAMPIONS UP and…

The Indian equity market bounced back smartly after Brexit, with the BSE Sensex running up nearly 3.5 per cent in a week. Everybody on Dalal Street now seems to be asking two questions: Is there no impact of Brexit on the Indian market? And, can the Sensex remain at these levels and even surge further? Indian stocks have been resilient because FIIs have not begun pulling out of the country. Also, there has been a sustained inflow into the market from domestic mutual funds. Indeed, domestic and global funds remain upbeat on India. The prevailing view among investors is that the Modi government is on the right track, interest rates in India would soften further and corporate performance is gradually improving. “Once the shock of Brexit starts to wear off,…