🪷 Trouble in India?

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2 more months till the end of 2024 - let’s win 💪 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🪷 Trouble in India?

• 👷‍♂️ India needs jobs

• 🗞️ Bite-sized summaries

  • 🌊 Flash floods

  • ⏲️ Trump sues 60 Minutes

  • 📖 Marc Benioff looking to sell Time magazine

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian markets were closed for Diwali.

🌍️ International

• U.S. stock futures rose, driven by strong earnings from Amazon, which surged 6.8% in premarket trading. This rebound helped offset a previous tech selloff caused by warnings from Meta and Microsoft. Investors are now focused on upcoming nonfarm payrolls data, with expectations of 113,000 jobs added in October, while concerns over labour strikes and hurricanes may affect the results

GEOPOLITICAL ISSUES

🪷 Trouble in India?

The U.S. recently sanctioned nearly 400 individuals and entities, including 19 Indian companies and two Indian nationals, citing support for Russia's military amid the ongoing Ukraine conflict.

Why is this a big deal?

• This action, led by the U.S. Departments of State and Treasury, aims to restrict the sale of dual-use goods critical to Russia's war efforts.

• Notable Indian firms like Ascend Aviation India and Shreya Life Sciences face allegations of exporting U.S.-origin technology and components, including aircraft parts and electronic circuits, to Russian end-users.

India’s Ministry of External Affairs (MEA) responded, stating that these companies have not breached Indian laws.

• MEA spokesperson Randhir Jaiswal emphasized India’s commitment to non-proliferation and assured cooperation with relevant authorities to ensure compliance with international export controls.

• Jaiswal reiterated India’s stance on strategic trade and non-proliferation, noting the country’s membership in key export control regimes like the Wassenaar Arrangement and Missile Technology Control Regime.

Overall: The sanctions reflect broader U.S. efforts to curb Russia’s access to international resources supporting its military.

However, India’s response underlines a commitment to its own legal framework while balancing compliance with multilateral agreements.

This incident also highlights the ongoing tension in U.S.-India relations, particularly amid recent geopolitical challenges.

Read more: Mint

EMPLOYMENT

👷‍♂️ India needs jobs

A recent Goldman Sachs report highlighted something interesting - India needs to generate 10 million new jobs annually from FY25 to FY30 to sustain a 6.5% Gross Value Added (GVA) growth.

To achieve this, strategic measures are essential, especially in sectors with high employment potential like construction, manufacturing, and services.

Here’s the TL;DR:

• The report highlights affordable housing development as a key driver for job creation, given construction’s significant role in employing over 80% of the labour force in that industry.

• Expanding IT hubs and Global Capability Centers (GCCs) in tier-2 and tier-3 cities is another recommendation, which could relieve employment pressure on Tier-1 cities while generating opportunities in smaller urban centres.

• Shifting fiscal incentives toward labour-intensive industries like textiles, food processing, and furniture could further boost employment for lower-skilled workers.

• While Production-Linked Incentive (PLI) schemes have previously supported capital-heavy industries, there’s an emerging focus on labour-intensive sectors such as textiles, footwear, and leather goods to better align manufacturing with employment goals.

However, despite this need for increasing employment, India sits in a comfortable position:

• India has added around 196 million jobs over the past two decades, two-thirds of which emerged in the last decade as workers shifted from agriculture to construction and services.

• The services sector, notably retail trade, has also expanded, with digital transformation creating roles in inventory management and delivery.

• India’s labour force participation rate (LFPR) rose from 50% in FY18 to 60% in FY24, driven largely by increased female participation, especially in rural areas.

• This growth, fueled by better measurement practices and financial inclusion initiatives, points to India’s unique demographic advantage.

Overall: Over the next two decades, with a high working-age population, India has a limited window to capitalize on this low dependency ratio, positioning the country for sustained economic momentum if job creation targets are met.

Read more: ETV Bharat

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🌊 Flash floods - Heavy rains caused unprecedented flash floods in eastern Spain, killing over 200 people, primarily in Valencia. Sudden walls of water devastated towns, trapping people in cars, homes, and businesses. Thousands of soldiers and volunteers are working to clear debris and search for the missing. Spain’s King Felipe VI and Prime Minister Pedro Sánchez visited the affected areas. Experts link the disaster to climate change, noting unusually warm Mediterranean waters and an unusual weather system. Criticism emerged over delayed flood warnings, but authorities are mobilizing resources and preparing a disaster declaration to expedite financial aid for recovery.

⏲️ Trump sues 60 Minutes - Former President Donald Trump has filed a $10 billion lawsuit against CBS News, alleging that the network manipulated a "60 Minutes" interview with Vice President Kamala Harris to interfere in the 2024 election. The lawsuit, filed in Texas, claims CBS altered Harris’s response on the Israel-Hamas conflict to downplay perceived weaknesses and influence public opinion. Trump demands a jury trial, full monetary damages, and that CBS release the unedited interview. CBS denies the allegations, asserting that the edit was made to maintain clarity and that Harris’s complete response was later posted online. The network pledges to defend against the suit.

📖 Marc Benioff looking to sell Time magazine - Marc Benioff, co-founder of Salesforce, is in early discussions to sell Time magazine to Greece's Antenna Group. Benioff, who purchased Time for $190M in 2018, is reportedly considering a sale price around $150M. Although no deal has been finalised, the talks come amid challenging times for traditional media companies as they compete with digital platforms like YouTube, TikTok, and Instagram. Antenna, which almost acquired Vice Media in 2022, has a history of Europe-focused investments but has also invested in U.S.-based Thrive Global. Time’s spokesperson confirmed no agreement to sell has been made.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Applications for business school graduate courses skyrocket despite economic uncertainty.

• Novo's trial of weight-loss drug shows improvement in fatty liver disease.

• Boeing workers will vote on a new contract offer to end 7-week-old strike.

• OpenAI’s search engine is now live in ChatGPT.

• Study reveals superbug MRSA's double defence against antibiotics.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Bhool Bhulaiyaa 3 box office collection day 2: Kartik Aaryan's film shows "Excellent Hold", mints ₹72 Cr.

• Singham Again box office collection day 2: Ajay Devgn's film roars with ₹85 Cr.

• Varun Dhawan’s Baby John new poster out now.

• Ind vs NZ 3rd test: New Zealand creates history as India suffers first-ever 3-0 Test series whitewash at home.