THE CAPITALBIZ

After the Fin Min Nirmala Sitharaman's comment on Millennial's Mindset being responsible for slag in auto sector as they prefer OLA & UBER over committing to buy a car; the former Fin Min (Currently Commerce Minister) Piyush Goyal has invoked Einstein to substantiate that all's well in the economy.  While addressing media after the meeting with the Board of Trade, the minister invoked Einstein to assert that all is well in the economy and it is on track to achieve $5 Tn in 5 years. He stated  that "Don't go by all these calculations you see on TV, that if the country has to become a $5 Tn economy, it will have to grow at 12% but right now it is currently growing at 6-7%". He added,"Don't get into those maths. Those maths never helped Einstein discover gravity" "If he had only gone by structured formulae and what was past knowledge, I don't think there would have been any innovation in the world." He added. The minister...

In a recent press interaction, the finance minister Ms Nirmala Sitharaman has hold BS-VI and mindset of Millennial (who now  prefer to hire cab service like OLA and UBER rather than committing to buying an automobile), responsible for slag in demand in auto sector.   Auto sector including Auto ancillary contributes 7.50% in the over all GDP, which makes it one of the major sector driving the economy. Most Auto manufacturers have planned shut down and reduction in capacity utilization, leading to uncertainty in job scenario in the sector which employees over 35 million people.     While Uncertainty over the BS-VI norms is a one of the main reasons of slag in auto sector. There are other factors too equally responsible for the struggle in the auto industry. Fuel prices have been ever rising. The government has increased excise duty and cess on petrol and diesel in the budget. The new Motor Vehicle Act. which has come into force has hefty penalti...

A story about Rana Kapoor planning to offload his stake to One97 Communications Ltd. parent company of the Paytm and Paytm Payments Bank, by the end of this year.  This could be a much required positive for the shareholders of the struggling bank. If this arrangement goes through, it will be a win-win situation for both the Bank and the fintech giant. While Yes Bank with this collaboration can expand its digital banking footprint, One97 Communications Ltd. on their promoters will be the first fintech player to have sizable stake in a commercial bank. Yes Bank has for a long time been talking to large private equity firms for a much needed capital infusion. The banks board has proposed for increasing the paid-up capital from Rs.800.00 crores to Rs. 1100.00 crores. However the present preposition will not help in capital infusion. One other hand Paytm along with its subsidiaries is also struggling with its business and the losses have been widening every year. For...

A lot has been said about India becoming the beacon of global economic growth and the 21st century being that of India. The claim has also been vindicated by the fast growth rate at which Indian economy was moving, until the Q1 GDP data of 2019-20 arrived.  GDP growth rate of 5% in the first quarter of the 2019-20 financial year was lowest in recent years. Leading rating agency Crisil has revised its estimates for current fiscal year growth rates at around 6.3% from earlier forecast of 6.9%.  Moody's too have cut their GDP forecast to 6.2% in August. Such outlook could only mean that Indian Economy is drifting towards a slowdown. The main reason for slow growth rate is attributed by most experts to slow demand and weak job creation and tight liquidity coupled with slow credit growth rate. Weakening Rupee against US Dollar has also added to the pain. Achieving $5 Trillion GDP figures by 2025, Indian Economy will need to grow with an average growth rate of 9.25%...