Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: India's stock market stumble continues as a strong dollar, upcoming U.S. policy changes, high stock prices, slower profits, and a bigger trade gap weigh on investor confidence. On the sectoral front, except pharma (up 1%), all other indices ended in the red with auto, energy, PSU Bank, metal, media, and realty down 0.5-2%

TOP STORIES

India’s auto sector slashes imports

What happened?

India’s auto industry is on a mission to save ₹25,000 crore—because why import when you can DIY? The plan is simple: make more parts locally, including advanced components like electric motors, airbags, and transmissions. 

• Between FY20 and FY22, they’ve already shaved off ₹7,018 crore in imports. 

• Next up: slicing ₹17,977 crore more by FY25. 

Why it matters

India’s auto industry is revving up for a future that’s less about importing parts and more about keeping the cash—and control—at home. Exports are already making a splash, hitting $11.1 billion in the first half of FY24. Meanwhile, local companies are racing to set up plants faster than your local chaiwala brews tea.

India currently imports about 28% of its auto components, mostly from China, Japan, South Korea, and Germany. That’s a hefty $11 billion that could stay within our borders. Cutting imports isn’t just about saving rupees; it’s about putting the brakes on dependency on global supply chains. With car sales expected to double to 9-10 million units by 2030, we’re going to need parts—a lot of them.

The good news?

Exports are cruising along nicely, growing at 7% this fiscal. Companies like Lumax Auto are paving the way, setting up shiny new plants in Pune and Gujarat to meet this surging demand.

Sure, there might be a few speed bumps, like slowing vehicle sales, but the industry is resilient—think of it as the Sunny Deol of manufacturing, unshaken and unstoppable.

PAISON KA KHEL

Record $8.87 billion flows into Indian real estate in 2024

Indian real estate is rolling in green as institutional investments hit a record $8.87 billion in 2024, up 51% from 2023's $5.88 billion, says JLL India. Foreign investors played big, pouring in 63% of the funds. Residential properties stole the show with 45% of investments, while office spaces and warehouses grabbed 28% and 23%, respectively.
This whopping figure surpasses the 2007 peak of $8.4 billion, making 2024 a milestone year.

Shriram Finance eyes $1.25 billion social loan

Shriram Finance is reportedly closing in on a massive $1.25 billion social loan, marking the largest-ever offshore loan by an Indian shadow lender. The deal, split across multiple currencies like the dollar, euro, and dirham, comes with tenors ranging from three to five years.

The surge in offshore borrowing by shadow banks follows tighter RBI rules on local currency loans in late 2023. Offshore loans now offer investors attractive yields and diversification from Chinese debt. Shriram's move outpaces a $1.2 billion deal by India Infrastructure Finance Co. in 2009 and follows its earlier $1.25 billion bond sale this year.

TOP STORIES

Diamonds Fade, Gold Shines in November 

What happened

India’s gem and jewellery exports faced a downturn in November 2024, falling 13% year-on-year to ₹16,763 crores from ₹19,005 crores. Diamond exports were the hardest hit, with cut and polished diamond exports plummeting 39.8% to ₹5,622 crore. 

• Imports of cut and polished diamonds nosedived even further, dropping 79.6% to ₹456 crore. 

• On the bright side, gold jewellery exports surged 40.6% to ₹9,558 crore, fueled by record-high gold prices.

Why it matters

The drop in diamond exports reflects global economic woes, where cautious consumers are shying away from non-yielding assets like diamonds. Geopolitical tensions and economic uncertainties continue to disrupt trade, making recovery sluggish. 

However, gold has emerged as a safe haven for investors during turbulent times, driving its export growth. The decline in lab-grown diamond exports (down 42.4%) and coloured gemstone exports (down 11.5%) further highlights the challenges in the global market. 

Zoom out

India’s jewellery exports are at a crossroads, with global demand for diamonds losing its sparkle while gold enjoys a gilded spotlight. The industry's resilience lies in its ability to adapt to shifting market dynamics. As Colin Shah, former GJEPC chair, aptly noted, geopolitical tensions and economic uncertainty cast a long shadow on trade. But with festivities in full swing, there’s cautious optimism for a glittering end to the year.

GLOBAL NAZARA

59% of Indian companies hit by scams 

Nearly 59% of Indian firms reported financial fraud in the last two years, according to PwC’s 2024 survey. That’s 18% higher than the global average of 41%—apparently, we’re overachievers in all the wrong ways! Procurement fraud topped the list, troubling 50% of companies, a 21% rise compared to global concerns. Meanwhile, customer fraud, the 2022 leader, has taken a backseat.

GIC grabs the healthcare crown with $150 million

Singapore’s GIC is making moves in the healthcare game, investing $150 million in Asia Healthcare Holdings (AHH) and taking the majority stake. With AHH now valued at $800-900 million, GIC is back after its earlier $170 million investment in 2022.  

TPG, once the boss, now takes a backseat as a minority shareholder. AHH, which runs Motherhood Hospitals and Nova IVF, is all set to expand into new specialities like gastrointestinal care.

TOP STORIES

Turning India Into a Manufacturing Marvel

What’s the buzz?

In what sounds like a Bollywood blockbuster of economic reforms, India’s Production Linked Incentive (PLI) schemes have scored a smashing hit. By August 2024, investments worth ₹1.46 lakh crore were realised, resulting in jaw-dropping production and sales of ₹12.50 lakh crore across 14 sectors.

India is flexing its manufacturing muscles, with over 9.5 lakh jobs created and exports exceeding ₹4 lakh crore. The government, the ever-ambitious director, has also approved 764 applications and handed out ₹9,721 crore in incentives to keep the production drama alive.

Why it matters

These schemes aren’t just about crunching numbers—they’re India’s ticket to global stardom. By investing ₹1.97 lakh crore, the government is banking on making “Made in India” a label as iconic as chai and Bollywood. Exports to Free Trade Agreement (FTA) partners have doubled, proving that India isn’t just importing ideas anymore; it’s exporting value.

Plus, strategic sectors like electronics and pharma are getting a serious glow-up. For the economy, it’s like hitting a sixer in the last over—jobs, growth, and reduced import dependency all in one swing.

Final words

India’s PLI schemes are giving the global manufacturing stage a solid dose of drama, action, and success. With ₹1.46 lakh crore already making waves, the story is far from over. As India churns out products at a dizzying pace and exports soar, the country is clearly aiming for the lead role in the global economy. And who wouldn’t root for an underdog who’s now making the rules?

It’s safe to say, with this script, India is no longer just a viewer—it’s the star of the show.

MIRCH MASALA

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