💰️ Finance bill 2024

Good morning. Heartbroken over Vinesh Phogat’s disqualification yesterday so can’t imagine what she must be feeling.

I hope she knows she did India so so proud regardless of the final outcome ❣️🇮🇳 

- Ruchirr Sharma & Shatakshi Sharmaa

TABLE OF CONTENTS

• 💰️ Finance bill 2024

• 🤖 India's unique path in the global AI race

• 🗞️ Bite-sized summaries

  • 🥇 Not in the cards for Phogat

  • 🧲 Attractive employers

  • 💻️ Dell cuts workforce by 10%

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian stock markets closed with significant gains on Wednesday. The BSE Sensex rose 1.11% to 79,468, while the NSE Nifty50 increased 1.27% to 24,297. Most Nifty50 and Sensex stocks ended higher, with ONGC and Adani Ports leading gains. Broader indices and all sectors also showed positive performance, while the volatility index decreased.

🌍️ International

• On August 7, 2024, U.S. stock markets closed lower, with the Nasdaq dropping 1% due to declines in technology shares and weak demand at a 10-year Treasury auction. Early gains in tech shares faded as investor concerns over a potential U.S. recession and weak corporate forecasts persisted. Disney shares fell 4.5%, and Super Micro Computer dropped 20.1% after disappointing earnings. The market remained volatile, with investors cautious ahead of upcoming Federal Reserve commentary.

BUDGET

💰️ Finance bill 2024

The Lok Sabha has passed the Finance Bill 2024, introducing significant amendments to India's tax landscape. 

Let’s go over the bill: 

1. LTCG Tax Amendment: Initially proposed to reduce LTCG tax on real estate to 12.5% without indexation, the government has now introduced flexibility. For properties purchased before 23 July 2024, taxpayers can choose between:

   1. The new 12.5% rate without indexation

   2. The old 20% rate with indexation benefit

2. Middle-Class Benefits: Sitharaman emphasised that the budget proposals aim to promote investment and benefit the middle class. The tax exemption limit on long-term capital gains in listed equities and bonds has been increased from ₹1 lakh to ₹1.25 lakh.

3. Simplified Taxation: The government claims to have introduced a simplified taxation regime and eased compliance without drastically increasing taxes.

4. Trade Promotion: Reduction in customs duty on various goods is expected to boost trade, investment, and employment.

5. GST on Insurance: Addressing concerns about GST on health and life insurance premiums, Sitharaman explained that 75% of GST collected goes to states. She noted that before the 18% GST on health insurance premiums, all states levied taxes on insurance premiums, which were subsequently subsumed into GST.

6. Legislative Process: The Finance Bill will now proceed to the Rajya Sabha for discussion. However, as a money bill, the Rajya Sabha cannot reject it and must return it within 14 days, or it is considered approved.

Overall: These amendments, particularly the flexibility in LTCG tax calculation for real estate, aim to address criticisms that the new provision could raise tax incidence and discourage real estate investments. 

The government's focus on simplifying taxation while promoting investment reflects its economic strategy for the coming fiscal year.

As these changes take effect, taxpayers, especially those in the middle class and those involved in real estate transactions, should carefully consider their options to optimise their tax liabilities.

Read more: Economic Times

ARTIFICIAL INTELLIGENCE

🤖 India's unique path in the global AI race

As the global AI landscape evolves, India is carving out its own niche in this rapidly advancing field. 

While US AI startups received a staggering $27 billion in funding during the April-June quarter, their Indian counterparts secured a more modest $8.2 million. 

However, this stark contrast belies a strategic shift in India's AI approach.

Rather than competing head-on in the capital-intensive realm of large language models (LLMs) and GPU chips, Indian startups are increasingly focusing on building cost-effective applications and services that leverage existing AI technologies.

This approach aligns with Nandan Nilekani's vision of India becoming the "use case capital of the world for AI".

Here are some big trends in India’s AI space: 

• Application-layer focus: Investors are looking beyond LLMs to startups developing practical applications and services built on top of existing models.

• Vertical-specific solutions: Companies like Attentive AI and Myelin Foundry are targeting niche industries with AI-powered solutions.

• AI testing and safety: Startups such as Raga AI are developing tools to test and ensure the reliability of AI systems.

• Small language models (SLMs) and AI tooling: These areas are seen as promising for sustainable growth in India's AI sector.

• Developer tools: There's a growing emphasis on creating tools that democratise AI development.

• LLM security and operations: Some firms are focusing on the critical aspects of AI security and optimisation.

Looking ahead: While India currently has only one AI unicorn (Krutrim AI), experts believe that the country's path to AI innovation will differ significantly from that of the US. 

The focus is on leveraging startups, the private sector, academia, and government initiatives to democratise AI technology and make it accessible to both individuals and enterprises.

Overall: Investors like Alok Goyal of Stellaris Venture Partners predict that startups will capture a large share of the AI market value, despite the advantages held by larger incumbents. 

This optimism is reflected in the 61% year-on-year increase in funding for Indian AI startups in 2024 so far.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🥇 Not in the cards for Phogat - In a heartbreaking turn of events at the Paris Olympics 2024, wrestler Vinesh Phogat was disqualified from the 50kg freestyle wrestling event for being overweight by a few grams. Phogat had made history by becoming the first Indian woman wrestler to reach an Olympic final, defeating world champion Yui Susaki and securing a gold medal bout. Despite efforts to shed weight overnight, she failed to make the cut. Prime Minister Narendra Modi has spoken with IOA President PT Usha to explore options and potentially file a protest. This setback comes after Phogat's journey of overcoming injuries, leading protests against the Wrestling Federation of India, and showcasing remarkable determination throughout her career.

🧲 Attractive employers - Microsoft has been named India's most attractive employer brand in the Randstad Employer Brand Research 2024, followed by TCS and Amazon. The survey, covering 3,507 respondents in India, highlighted work-life balance, equity, and attractive salaries as top priorities for employees. Microsoft excelled in financial health, reputation, and career progression opportunities. The automotive sector was rated most attractive, with IT and FMCG sectors following closely. The survey also revealed that 88% of talent expect AI to impact their jobs in the next 5 years, with only 8% viewing this negatively. Career growth, compensation, and flexible work options were identified as key factors in employee retention.

💻️ Dell cuts workforce by 10% - Dell Technologies is restructuring its sales teams, including creating a new AI-focused group and changing its data centre sales approach. The company is cutting jobs as part of this reorganisation, aiming to streamline management layers and reprioritise investments. While Dell has seen increased investor interest due to its AI-capable servers, there's growing concern about the timeframe for AI investment returns. This follows a major workforce reduction in early 2023 when Dell shed 13,000 jobs.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• Government appoints Challa Sreenivasulu Setty as SBI Chairman.

• Thousands flee as Russia battles Ukrainian border incursion for 2nd day.

• Rashtriya Vigyan Puraskar: Chandrayaan-3 team and 32 others selected for first-ever edition.

• Muhammad Yunus-led interim government to take oath on August 8, says Bangladesh Military Chief.

• To hike or not to hike? RBI watchers on guard for interest rate shift.

• Putin accuses Ukraine of a 'large-scale provocation' in southwestern Russia.
  

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Olympics updates:

  • View the complete medal tally here.

• Bollywood flocks in to share its overwhelming support for Vinesh Phogat on her big upset disqualification.

• Rafa Nadal withdraws from the 2024 US Open.