💵 Living large

Good morning. This past Sunday, a grand Pran Pratishtha ceremony was held in Texas, where a 90-foot-tall Hanuman statue was inaugurated, making it the third-largest statue in the United States.

Jai Hanuman 🙏 

- Ruchirr Sharma & Shatakshi Sharmaa

TABLE OF CONTENTS

• 💵 Living large

• 🚢 The importance of ports in India

• 🗞️ Bite-sized summaries

  • 🏫 Passing challenges

  • 👮 Mass enrollment

  • ✈️ What’s going on at Boeing?!

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian stock markets were mixed on Wednesday, with the Sensex and Nifty closing higher, led by gains in FMCG and consumption stocks. Broader markets, particularly the BSE SmallCap index, outperformed. Sectors like Realty and PSU Banks declined, while Media and Pharma gained.

🌍️ International

• Global shares idled as investors awaited confirmation that the U.S. Federal Reserve would cut interest rates. Fed Chair Jerome Powell is expected to speak on Friday at the Jackson Hole conference, influencing market expectations. Meanwhile, concerns about the labour market persist as U.S. job growth has been revised downwards.

ECONOMICS

💵 Living large

Growing up, economics students worldwide were often taught about the concept of "minimum wage" - the lowest legal salary employers can pay their workers, as set by governments.

In India, while minimum wages are determined at the state level rather than nationally, the accepted national floor-level minimum wage stands at around ₹178 per day.

However, anyone familiar with the realities of life in India would agree that this amount is not enough for a worker to afford basic necessities. 

Recognising this, the Indian government is now preparing to shift away from the outdated minimum wage system and towards a more comprehensive "living wage" framework.

What’s a “living wage”? It’s a theoretical wage that allows an individual/family to afford adequate shelter, food, healthcare and other necessities, typically higher than minimum wage

The driving force behind this change is the government's proposal to the International Labour Organisation (ILO) to incorporate factors that assess "multidimensional poverty" into the living wage guidelines. 

This approach goes beyond simply considering income levels and takes into account a range of crucial indicators, including nutrition, healthcare, education, housing, and access to essential services. 

By adopting this perspective, the living wage framework is intended to more accurately reflect the true cost of living and the income required for a decent standard of living.

Yet, the transition to living wages is not without its challenges. 

• The government acknowledges that developing the appropriate framework will take time, and the shift may not happen as soon as 2025.

• Currently, the Netherlands is the only country that follows a living wage system, and the ILO is evaluating whether this model could be replicated elsewhere.

Overall: Experts suggest that the successful implementation of living wages must be accompanied by supportive measures, such as enhanced social security coverage, skill development initiatives, and economic policies that promote job creation and economic growth. 

This holistic approach, they argue, is necessary to ensure the practical implementation and long-term economic sustainability of living wages.

Read more: Deccan Herald

GLOBAL TRADE

🚢 The importance of ports in India

Ports are incredibly important for India's economic growth.

Here's why:

1. They facilitate trade: Approximately 95% of India's international trade by volume is conducted through maritime transport, highlighting the critical role of ports in connecting India with global markets.

2. They create jobs: Ports create numerous job opportunities in various sectors, including logistics, shipping, and trade, thereby contributing to economic growth and development.

3. They bring in Foreign Direct Investment (FDI): The Indian government allows up to 100% FDI in port development projects, attracting significant investment that can enhance infrastructure and operational efficiency.

India has already done a commendable job of creating a network of 13 major ports and over 200 minor ports, strategically located along its extensive coastline - enabling efficient movement of cargo and enhancing regional connectivity. 

Plus, India’s largest port, Jawaharlal Nehru Port (Nhava Sheva), handles 55% of the country’s containerised cargo, with a capacity of roughly 4.8 million TEUs. 

However, with all that said, it’s simply not enough. To put things in perspective:

• China has seven of the world's 10 busiest ports and close to 100 ports across 63 other countries. The Port of Shanghai is the world's busiest, handling over 40 million TEUs annually.

• The United Arab Emirates has the Port of Jebel Ali in Dubai, which is the 11th busiest port and the largest in the Middle East (22.4 million TEUs)

• The United States has 10 of the world's 50 busiest ports, including the Port of Los Angeles (9 million TEUs) and Port of Long Beach (9 million TEUs), which are among the top 20.

(*What’s a TEU? Great question. A TEU or Twenty-foot Equivalent Unit is an exact unit of measurement used to determine cargo capacity for container ships and terminals.)

As global companies search for alternatives to China, India finds itself at a pivotal moment. The key to unlocking this potential lies in the expansion and modernisation of its port infrastructure.

• India's Jawaharlal Nehru Port is a prime example - despite seeing a tripling of container traffic over the past two decades, it remains small by global standards, constrained by its inability to accommodate the world's largest container ships.

To address this, the government is pursuing an aggressive campaign to build new ports and expand existing ones. The proposed Vadhvan port, estimated to cost over $9B, aims to triple the container capacity of the Navi Mumbai port by 2035 (estimated to handle 23.3M TEUs).

Overall: These infrastructure upgrades are just one piece of the puzzle. 

Equally crucial are the improvements to India's rail and road networks, which have struggled to keep pace with the growing volume of cargo. 

The construction of a dedicated freight rail corridor between Mumbai and New Delhi is underway, and the government is overseeing the building of new highways.

Read more: Swarajya

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🏫 Passing challenges - Over 6.5 million students nationwide failed class 10 and 12 board exams in 2023, with state boards showing higher failure rates than the central board. The failure rate was significantly higher in state boards compared to the central board, impacting retention rates and Gross Enrolment Ratio at the higher secondary level. Experts attribute the overall decline in student performance to larger exam syllabi. The data highlights the challenges facing India's education system, particularly in state-run schools.

👮 Mass enrolment - The Uttar Pradesh Police Recruitment & Promotion Board is set to conduct its largest-ever recruitment drive for constables, with 4.8 million applicants competing for 60,244 positions. The board has selected only government and government-aided schools as exam centres to ensure examination integrity, following the cancellation of the previous test due to a question paper leak. To prevent fraud, the board has also implemented strict security measures, including monitoring of previously implicated individuals and mandatory pre-exam verification for suspicious applicants.

✈️ What’s going on at Boeing?! - Boeing has encountered another setback in the launch of its long-delayed 777X aircraft, as the company has discovered structural problems during testing, forcing it to pause the testing process. This latest issue is yet another blow to Boeing's reputation for quality, coming on the heels of the safety crisis surrounding the 737 Max. The 777X, touted as the "world's largest and most efficient twin-engine jet," was expected to enter service in 2020 but has been plagued by delays and cost overruns. Boeing's troubles have resulted in significant financial losses, with the company losing $33B since 2019, as safety concerns continue to dent its reputation in the industry.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Paytm to sell entertainment ticketing business to Zomato for ₹2,048 Cr.

• An Indian astronaut to fly to the International Space Station by April 2025.

• PM Modi arrives in Warsaw to 'add momentum to India-Poland friendship.

• Alex Cooper, host of 'Call Her Daddy,' signs a massive new deal with SiriusXM.

• OpenAI strikes search deal with Condé Nast, giving OpenAI a license to display content from Condé Nast brands.

• World's oldest person, a woman born in California, dies 'happy' at 117.

• The end of an era: Warner Bros Discovery shuts down Cartoon Network website.

• Ola Electric shares rise over 4% after PLI approval for two more vehicle models.

• Barack and Michelle Obama electrify Democrats at DNC, but warn of tight race.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Premier League leaderboard here.

• Manuel Neuer: Germany goalkeeper retires from international football after 15 years and 124 games.

• Samuel L. Jackson, John David Washington, and Danielle Deadwyler to star in The Piano Lesson, based on the Pulitzer Prize-winning play by August Wilson.

• The Lincoln Lawyer is back for Season 3, premiere date set.

• Rachel Ziegler fends off killer computers in the first trailer for Y2K: Bye Bye, Human Race.