Financial Biweekly
In today's edition: FTP, Sintex acquisition, inflation concerns and Sodexo's endeavours
India’s new FTP
Talking of exports, the government on Friday released the new foreign trade policy (FTP) after extending the previous five-year policy for 2015-2020 as many as four times amid pandemic-induced restrictions and subsequent global uncertainty.
The government aims to increase India’s overall exports to $2 trillion by 2030, with the contribution of merchandise and services as equals. Though exporters seek three-month extra times to settle their past contracts under the previous policy.
The key initiatives in this policy are to reduce transaction costs and introduce e-initiatives. Let’s hope that the huge difference between India’s exports and imports narrows in upcoming years.
National Public Heath Museum
After covid-19 pandemic, the government has realized the need for awareness in public health, and the museum will provide insights related to the history and origin of diseases to discoveries of cures. Amid the current health exigencies, the plan is to educate people on health-related issues.
Inflation biting hard
Automobile makers, apparel companies, fast food chains, and electronic retailers have reported subpar consumption as a result of rising inflation. RBI may also hike the repo rate by 24 bps. Home loans and car loans have become very costly, so if you were thinking to purchase a new home, you might hold up that thought for a while. Those who had taken home loans at 6.5% when interest rates were at their decadal lows after the pandemic outbreak are tackling surging monthly repayments.
Acquisition of the Plastic industry giant
You must have heard about Welspun Group, an Indian multinational conglomerate with a diverse business in textiles, line pipes, and steel. To expand its material-building portfolio this Group has acquired the plastic industry giant, Sintex-BAPL. Yes, I am talking about the company that has made this tank at the top of your terrace.
For decades, Welsum has focused to become the best at exports to 30 different countries but now with this new vision, they are trying their luck in B2C business prospects in India.
The French headquartered firm aims to target schools in India
You probably own a Sodexo meal card powered by Zeta given as an employee benefit in a tax benefit program. But apparently, now the benefits have expanded to air tickets, holidays, development courses, and buying gadgets. It has around 3.5 million consumers in India, primarily comprised of salaried employees.
But now they are exploring other options like a Sodexo card at the back of the student ID card to access the cafeteria and small kirana stores. It is aggressively partnering with many food techs, Edtech, and cloud kitchens.
Personally, I have faced many issues using Sodexo cards, small merchants are quite reluctant to accept payments via Sodexo. The problem is, they receive their payments from Sodexo after months, and Sodexo also makes their cut in these transactions resulting in very less profit for small merchants.
Sodexo should build better relations with merchants if they want to expand to small kirana stores as well.
Adventure hunt!
Based on the adventure tourist activities, the government has prepared an atlas for water, land, and air. Yes, now you can locate your next thrill travel location using this atlas. Atlas for water sports has already been notified. You can instantly locate a river rafting place in one glance at the map.
FYI
Soyoil prices may increase due to the hit of heat waves on farmers in Argentina leading to severe drought.
Bhopal-New Delhi Vande Bharat Express reached 161 km/hr during its launch run. As of now, a total of 10 Vande Bharat Express trains are operating in the country connecting 108 districts and 17 states in the country.
Pepsi rebrands its logo for the new era of big soda for the Gen-Z with zero sugar.
Zero sugar has become a contemporary clickbait term in general stores for the health-conscious.
Word for today
arduous: needing a lot of effort; an arduous marathon
Phrase for today
beat around the bush: to avoid giving a definite answer or position
Untill next time, Sayonara!