Weekly News 26 - 30 June 2023
Domestic
26 June 2023 – (Economic Times) Robust warehousing demand across India drives institutional investors’ interest.[1]
Demand for warehousing and logistics assets in India is increasing, attracting institutional investors such as real estate funds, sovereign funds, and pension funds. The sector has become the second most preferred investment choice after commercial offices, surpassing residential and retail segments.
The warehousing sector received significant equity investments in 2022, with $1.9 billion invested. In the first quarter of 2023, investments of $216 million have already been received in the warehousing sector, making it the highest among all other sectors.
The growth of the warehousing market in India is driven by the government's focus on the manufacturing sector and the country's aspirations to become a global manufacturing hub. Major investors like Blackstone Group are betting big on warehousing and logistics development, with plans to expand their warehousing portfolio by 2.5 times in the next 3-5 years.
27 June 2023 – (Economic Times) India's CAD narrows in Q4 as trade gap shrinks, services exports increase.
India's current account deficit (CAD) narrows to $1.3 billion in Q4 FY23, down from $16.8 billion in Q3 FY23, supported by a decrease in the trade gap and a boost in services exports, according to RBI data.
Trade deficit in Q4 FY23 declines to $52.6 billion, contributing to the decrease in CAD, while robust services exports play a key role, RBI reports.
28 June 2023 – (Economic Times) G20 startup group to push for $1 trillion investment in global startup ecosystem.[2]
The startup group of G20 countries aims to raise the annual investment in the global startups ecosystem to $1 trillion by 2030, advocating for increased funding to support the growth and development of startups worldwide. This initiative is expected to make startups a significant driver of economic growth.
The summit meeting, organized by the Startup20 India Chair, will focus on establishing a common framework to define startups in G20 countries. The framework will consider factors such as legal entity, age, size, scalability, and innovation. The goal is to harmonize the global startup ecosystem while allowing for local autonomy and diverse definitions, fostering collaboration and support for startups across nations.
29 June 2023 – (Economic Times) 300% hike in TCS from July 1, 2023: How it will impact foreign investments, international trips, credit card spends abroad[3]
Starting from July 1, 2023, the Budget 2023 has increased Tax Collection at Source (TCS) on foreign remittance through the Liberalised Remittance Scheme (LRS) to 20% from the existing 5%, impacting various transactions such as international travel, investments, and property purchases.
The higher TCS rate will apply to foreign remittances for purposes like education, medical treatment, investments in foreign stocks or real estate, and sending gifts abroad. It will result in increased cash outflow for individuals undertaking these transactions
30 June 2023 – (Hellenic Shipping News World Wide) India economy set for robust growth in 2023, driven by domestic consumption and infrastructure boost, says Global Data[4]
India is positioned to achieve the highest GDP growth rate in 2023, driven by robust private consumption and investment, along with government efforts to enhance infrastructure. However, declining external demand may impact trade prospects.
The Indian economy has remained resilient, supported by a strong domestic consumer market. Sectors such as finance, real estate, and construction have contributed significantly to economic growth. The discovery of large lithium reserves and investments from major tech giants are expected to further boost the economy.
International
26June 2023 – (The Hindu) Thailand’s CPF to invest ₹600 crore in its aqua, agro businesses in India[5]
The firm launches new prawn feed products Blanca Extra, CP Mondon Advance and Super Marine Extra, and seed products Turbo Rocket and Turbo Kong in Vijayawada
CPF (India) Pvt Ltd, a Thailand-based company, plans to invest around ₹600 crore in their aqua and agro businesses in India. The investment aims to strengthen their operations and support the recovery of the aqua and agri industries, which faced challenges during the COVID-19 pandemic.
CPF is launching new products, including prawn feed and seed products, to enhance productivity and profitability for shrimp farmers in Andhra Pradesh, the largest shrimp market in India. The company aims to support sustainable growth in the Indian shrimp industry by continuously improving and developing their products.
27 June 2023 – (Economic Times) A ticking blood-sugar bomb: As diabetes snares more Indians, it is turning into an economic risk[6]
India's diabetes cases have surged by 44% in the last four years, reaching 101 million individuals, posing a significant economic risk due to rising healthcare expenditure and the burden on households.
The economic impact of diabetes includes high healthcare costs, decreased productivity, and increased burden on households, necessitating urgent policy interventions to address the growing epidemic and mitigate economic risks.
28 June 2023 – (Jakarta Globe) Empowering ASEAN MSMEs to Embrace Circular Economy[7]
Mark Sultan Gersava's enterprise, Bambuhay, has successfully transformed ordinary products into environmentally friendly alternatives, such as bamboo straws and toothbrushes, to mitigate the effects of climate change. Bambuhay has positively impacted 13,910 farmers, lifted 68 families out of poverty, removed around 1,100 tons of plastics from the environment, and planted nearly 40,000 trees and bamboo. This success story highlights how MSMEs can contribute to a circular economy and promote sustainability in ASEAN.
The COVID-19 pandemic has accelerated the shift towards a circular economy and sustainable development. MSMEs, which account for a significant portion of employment and GDP in ASEAN, have embraced new developments like the circular economy and digital technologies. Despite challenges such as limited resources and financial constraints, MSMEs have shown resilience and competitiveness by adopting sustainability practices and catering to the demand for socially conscious products. Governments and stakeholders need to provide support,
29 June 2023 – (Economic Times) Thailand’s state utility PTT’s arm invests $233 million in Avaada Energy[8]
Global Power Synergy Public Company Limited (GPSC), a subsidiary of Thailand's PTT, is investing an additional $233 million in Avaada Energy Pvt Ltd, a solar energy company founded by Vineet Mittal. This investment is part of Avaada's planned capital raising of $1.3 billion and will be used to expand renewable energy projects and explore future opportunities.
Avaada Energy, with a portfolio of 4 GW, aims to reach 11 GW by 2026 and 30 GW by 2030. GPSC's latest investment brings its total commitment to Avaada Energy to over $750 million. Avaada Energy is involved in utility-scale solar projects, supplying green energy to commercial and industrial clients, and is entering the battery storage segment with the support of PTT's expertise.
30 June 2023 – (Mint) ‘PM Modi's Make in India’ had visible effect on Indian economy,' says Russian President Vladimir Putin[9]
Russian President Vladimir Putin praised the impact of India's 'Make in India' initiative on the country's economy, highlighting the visible effect it has had. He referred to Prime Minister Narendra Modi as a great friend of Russia and acknowledged the contribution of the initiative.
Russian Ambassador Denis Alipov emphasized the strength and growth of the "special Russia-India strategic partnership" despite efforts to disrupt the relationship. He mentioned the daily dissemination of false information about Russia and highlighted the unwavering strength of the strategic partnership between the two countries.
[1] https://economictimes.indiatimes.com/industry/services/property-/-cstruction/warehousing-sector-boom-driving-investor-interest/articleshow/101262369.cms
[2] https://economictimes.indiatimes.com/news/economy/policy/g20-startup-group-to-push-for-1-trillion-investment-in-global-startup-ecosystem/printarticle/101316082.cms
[3] https://economictimes.indiatimes.com/wealth/tax/tcs-to-increase-by-4-times-from-july-1-2023-foreign-investments-business-trips-credit-card-spends-abroad-how-it-will-impact-you/articleshow/101329809.cms
[4] https://www.hellenicshippingnews.com/india-economy-set-for-robust-growth-in-2023-driven-by-domestic-consumption-and-infrastructure-boost-says-globaldata/
[5] https://www.thehindu.com/news/national/andhra-pradesh/thailands-cpf-to-invest-600-crore-in-its-aqua-agro-businesses-in-india/article67008249.ece
[6] https://economictimes.indiatimes.com/prime/pharma-and-healthcare/a-ticking-blood-sugar-bomb-as-diabetes-snares-more-indians-it-is-turning-into-an-economic- risk/primearticleshow/101286125.cms?utm_source=newsletter&utm_medium=email&utm_campaign=prime_dailynewsletter_paid&utm_content=heading_2&ncode=403f8eb49dec1c140a6d735cbd6930b4b1c6749a3b17b900c8d37d4d9e7f3381c11c003604d1caca2f5fd9c513ba113fc59e110d28e95e9f91000e5ee70b4b75fe107a953a0db93ac0a7f560f4e8e784
[7] https://jakartaglobe.id/opinion/empowering-asean-msmes-to-embrace-circular-economy
[8] https://economictimes.indiatimes.com/industry/renewables/thailands-state-utility-ptts-arm-invests-233-million-in-avaada-energy/articleshow/101340092.cms?from=mdr
[9] https://www.livemint.com/news/pm-modis-make-in-india-had-visible-effect-on-indian-economy-says-russian-president-vladimir-putin-11688089825344.html
