Read daily news briefs on the economic issues collected from different sources.
The delay in the resolution under the Insolvency and Bankruptcy Code process results in plumbing recovery. The latest IBBI data shows banks are taking disproportionately large ‘haircuts’ or losses of Rs.69 for every Rs.100 of their claims admitted. [BL]
E-Cars in India: BYD, a Chinese EV maker plans to enter India’s mainstream electric passenger vehicle market with an SUV. Mercedes too looking to consolidate its market leadership in the luxury EV segment. After analyzing the market response to their model, Mercedes- Benz will decide which EVs to launch in India next. [ET]
In the first half of the year 2022, over 90 thousand new firms registered with the ministry of corporate affairs (MCA). It is a 15% increase in registration compared to the first half of last year. The following figure shows the state-wise number of active companies. [BL]
Public shareholders of NDTV can play a bigger role in the takeover of NDTV by Adani Group. If NDTV can prevent the takeover by buying more shares from the public shareholders. However, experts are saying the share price of NDTV has touched its upper circuit and at the current offer price by the group, there is less chance that public shareholder will sell their shares. [BS]
A rethink on Maintenance Welfare of Parents and Social Welfare (Amendment) Bill: The bill was introduced in Lok Sabha in 2019, making it binding on children to take care of elderly parents. It also removed the upper limit of Rs 10,000 per month as a maintenance amount for parents. However, a presentation in the Prime minister’s Office put an opinion that this bill may lead to unnecessary litigation within the family which may harm the social fabric and the family unit and so decided to give rethink it. [ET]
The Supreme Court asked the Centre to form a Panel to study the impact of Freebies on the country’s Economy. [ET]
Before the floor test in Bihar, CBI raids RJD leaders’ Premises over 30 places in connection with the ‘land-for-job’ case. [ET]
The trade deficit widened to a high record of 30 billion dollars as export growth slowed due to weak global demand and a levy on outbound shipments of fuel, which constitutes more than 15% of India’s exports. However, Import touched a high record level due to a weaker Rupee, one of the worst performing Asian Currencies in the last three months. Crude (1/3rd of India’s imports) and coal (8% of imports) also contributed to the rise. [BS]
Editors:
Alok Aditya (Junior Research Fellow at ISEC)
Anuradha ( Research Assistant at ADRI)
Note: BL – Business Line, BS – Business Standard, FE – Financial Express, ET – Economic Times