Top 10 biz headlines: SoftBank for stake in Mahindra EM, RBI on telco loans

From SoftBank eyeing minority stake in Mahindra Electric Mobility to DRDO chief calling for developing future tech, here are top 10 business headlines of the day

SoftBank in talks to pick up minority stake in Mahindra Electric Mobility

Mahindra Electric Mobility, one of the country’s largest electric vehicle (EV) manufacturers, is in preliminary talks with Japanese giant SoftBank for an alliance which could include taking minority stake in the company. The company, in which Mahindra & Mahindra (M&M) is the key investor, publicly announced a few weeks ago that it would look for a private equity investor or a strategic investor to scale up its operations, though M&M will continue to stay as a big investor. Read More

MNCs with permanent establishment to pay tax on pre-negotiated income

Multinational companies (MNCs) having a permanent establishment (PE) in India could soon get clarity on taxes they are supposed to pay. In the Union Budget 2020, the government allowed these firms to enter into advance pricing agreements (APAs) with the income-tax authorities. In those they can negotiate how much of the margins on profits accrued in India would be taxed for having a PE in India. Read More

RBI 'reminds' banks on need to make additional provisioning for telco loans

The Reserve Bank of India (RBI) has informally reminded banks of the need to make additional provisioning for ‘standard’ telecom loans and specific exposures in the sector with a high probability of being declared non-performing assets (NPAs) in their books down the line. The RBI’s move is the first on the treatment to be accorded to the sector’s exposures by banks following the Supreme Court’s (SC’s) order of October 24, 2019. Read More

We must work today to develop technologies of tomorrow: DRDO chief

At DefExpo 2020, Defence Research and Development Organisation (DRDO) chief G SATHEESH REDDY spoke to Ajai Shukla about the ‘Make in India’ initiative. Edited excerpts: How will multiple agencies — the DRDO, defence public sector undertakings (DPSUs), private industry, and academia — function cooperatively? In the ‘Make in India’ programme, the role of DRDO is to support industry with technologies that are, as far as possible, developed within the country. Read More

Patented and in-licensed drugs post robust growth in Indian market

Patented and in-licensed products are growing at a robust pace in the Indian drug market, and now constitute 4.5 per cent of the domestic pharma market. Latest data from market research firm AIOCD AWACS shows that the patented and in-licensed products clocked 13.9 per cent growth as on MAT January 2020. MAT refers to moving annual turnover or turnover of the past 12 months. Against this, the domestic pharma market (without the patented and in-licensed products) has clocked 9.4 per cent growth rate during the same period. Read More

India's fiscal gap one of the highest among major emerging markets

At around 7.5 per cent of gross domestic product (GDP), the revenue-to-expenditure gap in India is one of the highest among major emerging markets. According to estimates by International Monetary Fund (IMF), total government expenditure was equivalent to around 27.1 per cent of GDP while total government revenue was around 19.6 per cent of GDP in the last calendar year. The revenue-to-expenditure gap in India is similar to that in Brazil but much higher compared to China, Russia, and Indonesia. Read More

ArcelorMittal, Nippon Steel bullish on India despite economic slowdown

The India story may have slowed, but for global steel majors ArcelorMittal and Nippon Steel (AM/NS India), that have invested Rs 50,000 crore in Essar Steel, it remains a bright spot. “On a medium-to long-run basis, the growth story is intact,” said Aditya Mittal, president, ArcelorMittal as well as group chief financial officer (CFO) and chief executive officer (CEO), ArcelorMittal Europe, during the group’s earnings call. Read More

Lamborghini aims to sell 50 cars a year in India as HNI numbers rise

While the super-luxury car sales segment in India dropped by about 17 per cent in 2019, Lamborghini, which is the market leader in this segment, grew by around 15 per cent. The company expects to maintain the growth momentum with the increase in the HNI population and new offerings from the Italian maker. Read More

On road to recovery, PNB looks to get rid of Nirav Modi shadow

Two years after India’s biggest banking scam blew up at Punjab National Bank (PNB), the state-run lender is hoping to leave the past behind and rebuild its tattered reputation with greater disclosures. In February 2018, PNB reported some employees had colluded with diamond tycoon Nirav Modi, issuing him letters of undertaking (LoUs) without keeping records. The bank filed a complaint with the Central Bureau of Investigation, reports Live Mint. 

There’s a 70% chance of recession in the next six months, new study from MIT and State Street finds

There’s a 70% chance that a recession will hit in the next six months, according to new research from the MIT Sloan School of Management and State Street Associates. The researchers created an index comprised of four factors and then used the Mahalanobis distance — a measure initially used to analyze human skulls — to determine how current market conditions compare to prior recessions.