Excluding food from RBI’s inflation framework may not have many takers | Economy & Policy Analysis


Excluding food inflation from the Reserve Bank of India’s (RBI’s) inflation-targeting framework, an idea the Economic Survey has floated, has not found favour with most economists and central-bank watchers.


Calling for a re-examination of the framework, the Survey said when food prices rose, inflation targets came under threat, prompting the central bank to appeal to the government to bring down prices of food products. This, in turn, prevents farmers from benefiting from the rise in prices.

 


One of the reasons for adopting the consumer price index as the RBI’s target is that it is easy to communicate to

First Published: Jul 26 2024 | 11:42 PM IST


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Open and shut case: New income-tax rules offer one-step resolution | Economy & Policy News


The new rules for search and seizure by the income-tax (I-T) department, announced in the Union Budget for 2024-25 on Tuesday, have the potential to reduce litigation and enhance compliance by ensuring resolution in one go, Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal has said.


  


A case will be settled if the taxpayer accepts the findings of the department and agrees to pay “60 per cent tax on the undisclosed income”, he said. 


These rules will come into effect from September 1. 

 


“The proceedings following the search take a long time. However, under the proposed scheme,

First Published: Jul 26 2024 | 11:50 PM IST


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Jaishankar meets Russian FM Lavrov & other counterparts in Laos; exchange views on ways to further boost bilateral ties | External Affairs Defence Security News

Jaishankar meets Russian FM Lavrov & other counterparts in Laos; exchange views on ways to further boost bilateral ties | External Affairs Defence Security News

Jaishankar meets Russian FM Lavrov & other counterparts in Laos; exchange views on ways to further boost bilateral ties | External Affairs Defence Security News

Foreign Minister S Jaishankar (right) with Russian counterpart Sergey Lavrov on the sidelines of the Association of Southeast Asian Nations meet on Friday | Photo: PTI


External Affairs Minister S Jaishankar on Friday met his Russian counterpart Sergey Lavrov and leaders from South Korea, Japan, Singapore, Laos and others and discussed various aspects of bilateral collaboration, including education and agriculture technology.


Jaishankar is in the capital of the Laos People’s Democratic Republic to participate in the meetings of the Association of Southeast Asian Nations (ASEAN).


He met Russian Foreign Minister Lavrov on the sidelines of the meeting.


“Russia’s Foreign Minister Sergey Lavrov and Foreign Minister of India Dr Subrahmanyam Jaishankar met on the sidelines of #ASEAN events Vientiane, July 26, 2024 #RussiaIndia #DruzhbaDosti,” the Russian Ministry of Foreign Affairs said in a post on X, attaching a picture of the two ministers.


Jaishankar held a bilateral meeting with his counterpart from South Korea and had a wide-ranging conversation on Special Strategic Partnership.


“A pleasure to meet RoK @FMChoTaeyul today in Vientiane. Wide-ranging conversation on Special Strategic Partnership. Our shared convergences in the Indo-Pacific region is also opening new avenues of cooperation,” Jaishankar posted on X.


He also met the High Representative of the European Union for Foreign Affairs and Security Policy/Vice-President of the European Commission.


“Delighted to meet EU HRVP @JosepBorrellF, this time in Vientiane. Spoke of India and European Union’s potential to augment partnership in trade, clean energy transition and advanced technologies. Exchanged perspectives on regional and global issues. Thank HRVP Borrell for his friendship and staunch support for strengthening India-EU ties,” Jaishankar posted.


He also met and had great conversations with his counterpart and “dear friend” from Singapore.


“Great conversation with dear friend FM @VivianBala of Singapore. Thank Singapore for steering ASEAN-India relations in the last three years as Country Coordinator. We spoke about creating a new agenda for our bilateral ties. Also appreciated his thoughts on the current geopolitical situation,” Jaishankar posted on X.


He also met his Indonesian counterpart.


“Always good to see my friend FM @Menlu_RI of Indonesia. Congratulated her on a great stint as Foreign Minister. Her contribution towards India-Indonesia and India-ASEAN relations are notable. Enjoyed working with her during our G20 Presidencies.” Jaishankar also met his Malaysian counterpart.


“A warm conversation with Malaysian FM @tokmatn9 today in Vientiane. Discussed ongoing initiatives in our bilateral relationship. Look forward to enhancing our ties in the second decade of our Enhanced Strategic Partnership,” Jaishankar posted on X.


Jaishankar held a bilateral meeting with his counterpart from New Zealand, Winston Peters, also the country’s deputy prime minister.


“Always enjoy meeting DPM & FM @winstonpeters of New Zealand. Discussed education, agriculture technology, Pacific Islands & cricket,” Jaishankar said in a post on X.


Jaishankar also held a meeting with his counterpart from Brunei, Dato Haji Erywan.


The two leaders launched the logo, celebrating 40 years of diplomatic relations between India and Brunei.


“Confident that our warm and friendly ties will prosper further,” Jaishankar said.


He also met Laos’ Minister of Home Affairs, Vilayvo ng Bouddakham; Minister of Industry and Commerce, Malaithong Kommasith; Chairman of the Foreign Affairs Committee, Sanya Praseuth; and Special Envoy Alounkeo Kittikhoun.


“Thank Ambassador Prashant Agrawal for hosting us,” Jaishankar said. Jaishankar is in the Laotian capital to participate in the Foreign Ministers’ Meetings under the ASEAN framework in the format of ASEAN-India, East Asia Summit (EAS) and ASEAN Regional Forum (ARF) to further deepen India’s ties with the bloc, as New Delhi marks a decade of Act East Policy.


In his remarks at the opening session of the ASEAN-India Foreign Ministers Meeting earlier on Friday, Jaishankar said that ASEAN is the cornerstone of India’s Act East Policy and its Indo-Pacific vision.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Jul 27 2024 | 12:13 AM IST


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Kharif sowing up nearly 3% at 81.18 mn hectare till July 26, shows data | Agriculture


The area under kharif crops as of July 26, 2024, rose by almost 2.29 per cent year-on-year to 81.18 million hectares, according to data released by the agriculture ministry.


Kharif sowing of all crops is over in almost 74 per cent of the normal area, which is the average area covered in the last five years.


As the Southwest monsoon continues to be vigorous over most parts of West and South India during the week, experts hope the sowing of pulses and oilseeds will be completed soon.


The Southwest monsoon till the week ended July 26 was almost 3 per cent more than normal, largely due to copious showers in South and Central India.


Going forward, the India Meteorological Department (IMD) in its last forecast said that a depression over North-West India, the first for the season, is expected to build up over the region next week which would bring good rain.

First Published: Jul 26 2024 | 9:35 PM IST


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Airfares jump by 46% for Rakshabandhan long weekend amid high demand | India News


The average economy class fare on major routes in the country around the long Rakshabandhan weekend in August has jumped by up to 46 per cent amid high demand. The long weekend this August falls between August 15 and 19, with Independence Day on Thursday (August 15) and Rakshabandhan on Monday (August 19).


According to Ixigo’s data reviewed by Business Standard, the average fare for the Bengaluru-Kochi route was Rs 3,446 for the August 14-20 period in 2024, which is 46.3 per cent higher than the corresponding period last year. The average fare for the Bengaluru-Mumbai route was Rs 3,969 for the August 14-20 period in 2024, which is 37.6 per cent higher than the corresponding period last year.


Industry sources state that a significant number of planes in India continue to be grounded due to engine issues, supply chain problems, or financial difficulties. For example, IndiGo, India’s largest carrier, on Friday said about 70 out of its 382 planes in the fleet are currently grounded.


Therefore, the number of flights has not increased at a much faster rate, leading to a lack of capacity growth on various major routes. For example, the number of flights per week scheduled on the Bengaluru-Kochi route in August this year is almost the same as last year. Similarly, the number of weekly flights scheduled on the Bengaluru-Mumbai route has actually reduced by 4.8 per cent year-on-year (Y-o-Y) to 472 in August, according to aviation analytics firm Cirium.


“Long weekends tend to attract higher airfares as people travel to short gateways or visit family. This year, the Independence Day holiday, when clubbed with Rakshabandhan, is helping with a longer holiday. The capacity increase has been limited in Indian skies, and such long weekends lead to specific sectors seeing a sudden spurt, which is beyond the capacity added by airlines,” Ameya Joshi, an aviation researcher and founder of the aviation blog ‘Network Thoughts’, told Business Standard.


The flights between Delhi and Pune have remained at about 160 services per week and have not increased between August last year and this year, as per Cirium. Meanwhile, the average fare for the Delhi-Pune route was Rs 5,257 for the August 14-20 period in 2024, which is 22.6 per cent higher than the corresponding period last year.


Jyoti Mayal, president of the Travel Agents Association of India, told Business Standard that as the demand is growing, the Indian carriers are finding it hard to get an adequate supply of planes to accommodate the travellers’ rush.


“The industry is facing serious challenges in scaling up capacity to match the demand. The airfare for flights operating between Udaipur and major cities such as Delhi, Jaipur, and Mumbai has seen a notable increase, and on the occasion of Rakshabandhan, the flight fares have nearly doubled,” she noted.

“Travel sentiment for this period is highly positive—with bookings for the upcoming long weekend surpassing bookings made during the long weekend around Good Friday this year. This environment deprives travellers too, making it unaffordable,” she said.

Fares on major routes have increased for Rakshabandhan long weekend this year


Routes

Average economy class fare for departure on August 14-20, 2023 (in Rs)

Average economy class fare for departure on August 14-20, 2024 (in Rs)

Increase/decrease (in %)

Bengaluru-Kochi

2355

3446

46.30%

Bengaluru-Mumbai

2884

3969

37.60%

Delhi-Goa

4840

6641

37.20%

Delhi-Pune

4289

5257

22.60%

Bengaluru-Hyderabad

2616

3063

17.10%

Mumbai-Hyderabad

3203

3508

9.50%

Delhi-Leh

4540

4929

8.60%

Mumbai-Kochi

4269

4511

5.70%




Note: This data is for tickets purchased 30 days in advance.

Source: Ixigo

First Published: Jul 26 2024 | 6:37 PM IST


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POCO M6 Plus 5G with 108MP camera launching on August 1: What to expect | Tech News


Xiaomi’s spinoff smartphone brand POCO has set the launch of M6 Plus 5G smartphone in India for August 1. The POCO M6 Plus will join the POCOC M6 Pro in the company’s M6 smartphone series. Ahead of the launch, POCO has confirmed that the M6 Plus will feature a dual-camera system on the rear, featuring a 108-megapixel main sensor of an f/1.75 aperture. POCO said the megapixel-rich main sensor will enable 3x in-sensor zoom.


POCO M6 Plus: What to expect


The upcoming POCO M6 Plus smartphone could be a rebranded version of the Redmi 13 5G smartphone, which was launched in India earlier this month. If true, the POCO M6 Plus would sport a 6.79-inch fullHD+ display of 120Hz refresh rate. While the company has already confirmed that the POCO M6 Plus will feature a 108 MP primary rear camera sensor of an f/1.75 aperture, it is likely that the main camera will be assisted by a 2MP macro camera at the back. The smartphone could get a 13MP front facing camera.


A Qualcomm Snapdragon 4 Gen 2 chip is expected to power the POCO M6 Plus, while it gets up to 8GB RAM. The smartphone is anticipated to feature a 5030mAh battery and would likely get support for 33W wired charging.


POCO M6 Plus: Expected specifications


  • Display: 6.79-inch display, FHD+ resolution, 550 nits peak brightness

  • Processor: Qualcomm Snapdragon 4 Gen 2 chip

  • RAM: up to 8GB RAM

  • Storage: 128GB

  • Rear camera: 108MP primary + 2MP macro

  • Front camera: 13MP

  • Audio: Bottom firing speakers, 3.5mm jack

  • Battery: 5030mAh

  • Charging: 33W wired

  • OS: Android 14-based Xiaomi HyperOS

First Published: Jul 26 2024 | 3:26 PM IST


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UN urges nations to better prepare as extreme heat breaks records | World News


After three of Earth’s hottest days ever measured, the United Nations called for a flurry of efforts to try to reduce the human toll from soaring and searing temperatures, calling it an extreme heat epidemic.


If there is one thing that unites our divided world, it’s that we’re all increasingly feeling the heat, United Nations Secretary-General Antonio Guterres said Thursday at a news conference where he highlighted that Monday was the hottest day on record, surpassing the mark set just a day earlier. Earth is becoming hotter and more dangerous for everyone, everywhere.


Nearly half a million people a year die worldwide from heat related deaths, far more than other weather extremes such as hurricanes, and this is likely an underestimate, a new report by 10 UN agencies said.


Billions of people are facing an extreme heat epidemic — wilting under increasingly deadly heat waves, with temperatures topping 50 degrees Celsius around the world,” Guterres said. “That’s 122 degrees Fahrenheit and halfway to boiling.


The dire warnings came after a barely noticeable respite in back-to-back record global heat.


The European climate service Copernicus calculated that Tuesday’s global average temperature was 0.01 Celsius (0.01 Fahrenheit) lower than Monday’s all-time high of 17.16 degrees Celsius (62.8 degrees Fahrenheit), which was .06 degrees Celsius hotter (0.1 degrees Fahrenheit) than Sunday.


All three days were hotter than Earth’s previous hottest day in 2023.


We are not prepared, the UN report said.


Guterres urged countries of the world to adopt several proposals aimed at reducing heat deaths, starting with help to cool and care for the most vulnerable people the poor, elderly, young and sick.


The UN also called for better heat wave warnings, expanding passive cooling, improved urban design, stronger protections for outside workers, as well as greater efforts to tackle human-caused climate change that’s worsening weather extremes.


But officials said most work will have to be done by countries, with the UN offering aid and coordination, especially when it comes to beefing up weather warning systems.


If countries adopt the United Nations heat-fighting recommendations, these measures could protect 3.5 billion people by 2050, while slashing emissions and saving consumers $1 trillion a year, Guterres said, citing a UN Environment Programme estimate.


Better heat-health warning systems in 57 countries could save 98,314 lives per year, the report said, based on World Health Organization and World Meteorological Organization estimates.


Crippling heat is everywhere, but it doesn’t affect everyone equally, Guterres said. Extreme heat amplifies inequality, inflames food insecurity and pushes people further into poverty.


More than 1,300 people died during this year’s annual Haj pilgrimage after walking in scorching heat.


Earlier this year, India’s prolonged heatwaves resulted in the deaths of at least 100 people. However, health experts say heat deaths are likely undercounted in India and potentially other countries.


Last year, the United States had its most recorded heat deaths in more than 80 years, according to an Associated Press analysis of Centers for Disease Control and Prevention data. The death certificates of more than 2,300 people mentioned excessive heat, including 874 deaths in Arizona.


Deadly heat is not new, but scientists say it has been amplified in scale, frequency and duration with climate change.


Extreme heat, wildfires, floods, droughts and ever more fierce hurricanes are symptoms and we need to fight the disease, Guterres said. The disease is the madness of incinerating our only home. The disease is the addiction to fossil fuels. The disease is climate inaction.


Many things are being done, but too little, too late, he said. The problem is that climate change is running faster than all the measures that are now being put in place to fight it.


Before July 3, 2023, the hottest day measured by Copernicus was 16.8 degrees Celsius (62.2 degrees Fahrenheit) on August 13, 2016. In the last 13 months that mark has now been beaten 59 times, according to Copernicus.


Humanity is now operating in a world that is already much warmer than it was before, Copernicus Director Carlo Buontempo said.


The steady drumbeat of hottest-day-ever records and near-records is concerning for three main reasons. The first is that heat is a killer. The second is that the health impacts of heat waves become much more serious when events persist. The third is that the hottest-day records this year are a surprise, said Stanford University climate scientist Chris Field.


Field said high temperatures usually occur during El Nino years a natural warming of the equatorial Pacific that changes weather worldwide but the last El Nino ended in April.

Field said these high temperatures underscores the seriousness of the climate crisis.”

Unfortunately people are going to die and those deaths are preventable, said Kristie Ebi, a public health and climate professor at the University of Washington. Heat is called the silent killer for a reason. People often don’t know they’re in trouble with heat until it’s too late.


At some point, the accumulated heat internally becomes too much, then your cells and your organs start to warm up, Ebi said.


The big driver of the current heat is greenhouse gas emissions, from the burning of coal, oil and natural gas, Buontempo said. Those gases help trap heat, changing the energy balance between the heat coming in from the sun and that escaping Earth, meaning the planet retains more heat energy than before, he said.


Other factors include the warming of the Pacific by El Nino; the sun reaching its peak cycle of activity; an undersea volcano explosion; and air with fewer heat-reflecting particles because of marine fuel pollution regulations, experts said.


The last 13 months have all set heat records. The world’s oceans broke heat records for 15 months in a row and that water heat, along with an unusually warm Antarctica, are helping push temperatures to record level, Buontempo said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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Derivative strategy: Nandish Shah of HDFC Sec suggests Bull Spread on IOC | News on Markets


Derivative Strategy: BULL SPREAD on Indian Oil Corporation (IOCL)

 


Buy IOC (29-August Expiry) 180 CALL at Rs 6.35 & simultaneously sell 190 CALL at Rs 3.15




Lot Size: 4,875




Cost of the strategy: Rs 3.2 (Rs 15,600 per strategy)

 


Maximum profit: Rs 33,150 If IOC closes at or above Rs 190 on August 29 expiry.




Breakeven Point: Rs 183.2




Risk Reward Ratio: 1:2.12




Approx margin required: Rs 30,000


Rationale:


>> Long rollover is seen in the IOC Futures, where we have seen 28 per cent (Prov) rise in Open interest with price rising by 4.78 per cent.




>> The stock price has broken out on the daily chart to close at highest level since February 2024 with a sharp rise in volumes.




>> Primary trend of the stock is positive as stock price is placed above its important short-term and long-term moving averages.




>> Momentum Indicators and Oscillators are showing strength in the current uptrend of the stock.

Note : It is advisable to book profit in the strategy when ROI exceeds 20 per cent.=

=======================

Disclaimer: Nandish Shah is a technical research analyst at HDFC Securities. He or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. Also the Research Analyst or his relative or HDFC Securities Ltd. or its Associate may have beneficial ownership of 1 per cent or more in the subject company at the end of the month immediately preceding the date of publication of the tech call. Views expressed are his own.

First Published: Jul 26 2024 | 6:52 AM IST


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Mega meeting on Friday to plan central database for jobs, workforce | Interviews

Mega meeting on Friday to plan central database for jobs, workforce | Interviews

Mega meeting on Friday to plan central database for jobs, workforce | Interviews

Premium

Sumita Dawara, Labour Secretary


Within days of the Union Budget announcing several proposals related to employment, internship and skilling, the government is initiating a process to comprehensively tap relevant information on jobs and workforce. In a first such step, some 20 Union ministries will brainstorm, on Friday, with the objective of creating a central database on employment.

 


In an interview, labour secretary Sumita Dawra told Business Standard that the exercise would be a starting point in formalising a way to capture data that will link supply and demand for workforce in the country. “We should have an institutional mechanism to capture

First Published: Jul 26 2024 | 12:56 AM IST


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