<ul><li>The Karnataka government bans online "games of chance".</li><li>As the IPL season has kicked in, Dream11, My11Circle, MPL Pro, Bet365, Gamezy and many others gaming platforms can come under the radar of Karnataka’s ban on online ‘game of chance’.</li><li>The offence under the law will lead to a prison term of up to three years and fine of up to ₹ 1 lakh.</li></ul>The Karnataka government on Tuesday <a href="https://economictimes.indiatimes.com/tech/technology/karnataka-assembly-passes-bill-banning-online-games-of-chance/articleshow/86407014.cms">reportedly</a> passed a bill that bans online "games of chance”. Karnataka Chief Minister Basavaraj Bommai reportedly said that the government will deal with gaming operators who run “games of chance” camouflaged as “games of skill”. Even those skill games that involve the risk of the player losing money would invite action under the law, he said. However, there is not enough clarity on which games are considered under “game of skill” and “game of chance”. As the Indian Premier League (IPL) season has kicked in, online gaming firms like Dream11, My11Circle, MPL Pro, Bet365, Gamezy and many others can come under the radar of Karnataka’s ban on online ‘game of chance’. Operating such games, sheltering such operations, and abetting and participating in such online games both cognisable and non-bailable is an offence, according to the bill. The offence will lead to a prison term of up to three years and fine of up to ₹ 1 lakh. So far, Punjab, Haryana, Bombay and Rajasthan High Courts have given <a href="https://economictimes.indiatimes.com/tech/startups/supreme-court-upholds-dream11-fantasy-sports-format-as-game-of-skill/articleshow/85040855.cms">verdict </a>supporting online gaming platforms like Dream11 and considers it as a “game of skill”. The Karnataka government has gone ahead with the ban despite the Supreme Court’s <a href="https://m.economictimes.com/tech/startups/supreme-court-upholds-dream11-fantasy-sports-format-as-game-of-skill/articleshow/85040855.cms">decision </a>that favoured the fantasy gaming industry, calling them skill gaming instead of gambling. Priyank Kharge, former information technology (IT), tourism and social welfare minister of Karnataka, batted against a blanket ban for all online games. “The government should form a committee with industry stakeholders and come out with a law that curbs online betting instead of a bill that won’t stand the test of law,” he said in a tweet. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[ ]]></cdata></div> Kharge mentioned Karnataka is the gaming hub with investments of ₹4,000 crore employing thousands of people. The former minister further added that more clarity is required on certain of these issues because these are buzzing businesses. “They (online gaming platforms) are run by very young players (individuals) who have just graduated from colleges and it will kill them at this stage. Tax certainty is required as you cannot tax the entire thing, just because you feel that there is revenue which can be collected from these activities,” said Abhishek A Rastogi, partner at Khaitan &amp; Co in a Twitter live session with Business Insider on Monday. <div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[ ]]></cdata></div> In the same conversation, another panelist, Sandeep Chilana, managing partner at Chilana &amp; Chilana Associates, said that there will be legal challenges by these online gaming entities in the court after the ban. “In the online gaming casino sectors, and the entertainment sector everything is charged under different categories of rates. So I'm saying, gambling betting is one thing, but if you see a serious casino business, you are charging me the royalty, the licence fee to operate the casino, you are charging GST [goods and services tax] on that also, then you are asking for the 20% tax only even if it's a slot machine,” said Rastogi. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/tonetag-backed-by-amazon-and-mukesh-ambani-is-ready-to-go-beyond-payments-using-sound-waves-not-internet-and-smartphones/articleshow/86419124.cms">ToneTag, backed by both Amazon and Mukesh Ambani, is ready to go beyond payments using sound waves, not internet and smartphones</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/zee-entertainment-merges-with-sony-pictures/articleshow/86416420.cms">Marriage Story! Zee gets a white knight in Sony</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/irctc-indiamart-zee-entertainment-cummins-india-share-price-under-pressure-but-still-worth-buying/slidelist/86407477.cms">IRCTC, IndiaMART, Cummins India and others have been under pressure in the last 5 days but still worth buying</a>

Experts say Karnataka’s ban on 'games of chance' may face a legal test

<ul><li>The global market size for online games is expected to grow from US$37.65 billion in 2019 to US$122.05 billion in 2025.</li><li>Domestically, the online gaming industry in India was worth US$543 million in 2016 and has grown to US$1.027 billion in 2020 at a CAGR of 18.6%. </li><li>Moreover, the industry is estimated to reach US$2 billion by 2023 (in terms of rake fee earned).</li></ul>The Indian online gaming sector reached US$1.027 billion in 2020, a growth of ~17.3% from US$543 million in 2016. With its current trajectory, it is expected to reach US$2 billion by 2023 in terms of rake fees earned, states the EY- <keyword id="3634002" type="PERSON" weightage="20" keywordseo="All-India-Gaming-Federation">All India Gaming Federation</keyword> (AIGF) report ‘Online gaming in India – The GST conundrum.’ While India is currently the fourth largest online gaming market globally, the industry requires a robust regulatory and legal environment to help the business scale quickly and achieve its true potential. The report highlights global best practices for taxation and provides much-needed clarity on aspects related to valuation and applicable GST rates. Online gamers in India are estimated to grow from 360 million in 2020 to 510 million in 2022. Additionally, there are over 400 gaming start-ups at present that are accelerating the growth of the sector. However, in India, the classification of whether a game comprises a ‘game of skill’ or a ‘game of chance’ has wide consequences for legal implications on the business operations. A game of chance attracts a higher GST rate of tax vis-à-vis a game of skill. Online games operate either on the ‘rake fee’ model wherein the gaming platform charges a rake fee for facilitating games or ‘freemium’ models wherein the gameplay is free but additional features may require users to purchase specific items for a monetary price. A rational imposition of <keyword id="6359833" type="UNKNOWN" weightage="20" keywordseo="Goods-and-services-tax">Goods and Services Tax</keyword> (‘GST’) is therefore vital for sustaining this industry. Bipin Sapra, Partner - Indirect Tax, EY India, said, “The online gaming industry is growing at an impressive CAGR of over 20% and holds significant potential for economic growth, job creation and contribution to the Government's vision of a trillion dollar digital economy by 2025. To enable the industry in realising its peak growth potential, it is imperative that the GST regime for online gaming industry is kept rational and at par with other technology platforms. Adopting globally consistent standards in our tax treatment of the industry will enable it to achieve its true potential.” Roland Landers, CEO, All <keyword id="9213799" type="COMPANY" weightage="20" keywordseo="india-gaming-federation">India Gaming Federation</keyword>, said, “The valuation disputes under GST law have been a dampener to the industry. Considering the market size and future growth projections, the online gaming industry is expected to be a significant contributor to the government’s vision and provide future economic avenues considering the ubiquitous digital trends impacting our lifestyle. It is important to highlight that regressive taxation of these emerging sectors may only make the business unsustainable in India. Our recommendation is that the Tax authorities should align its policies with internationally accepted principles of taxing the online gaming sector and provide certainty to the industry. We hope that this report would provide meaningful insights and help accord focus to this sunrise industry.” To realize the full potential of online gaming industry, a levy of standard GST/VAT rates is recommended, to be treated on par with any other segments of the economy. <cmsannotation type="cmsannotation" annotationid="Crystallizing the GST levy mechanism" text="Crystallizing the GST levy mechanism">Crystallizing the GST levy mechanism</cmsannotation> The valuation mechanism in levying GST on the entire stake value vis-à-vis the rake fee element should be clearly outlined to avoid any ambiguities and potential litigations leading to tax demands. Any uncertainty and possibilities of litigation adversely impacts the business plans, operations, and entry of new players in the industry. Most industry players have a rake fee in the range of 4% - 20%. Any attempt to levy GST on the entire stake value potentially leads to economic unviability of the business model and could force the closure of businesses. The report outlines three options: <ol><li>GST on rake fee value: This suggests a levy of GST only on the rake fee i.e. consideration received by the gaming platform. It is presently being followed across the industry and is in alignment with existing GST mechanism to levy tax on consideration only.</li><li>Deemed credit model: This has only two data metrics to be considered - stake and pay-outs. This mechanism makes it easier for the Government to verify and audit entities. However, businesses would be required to undertake a change in their ERP systems to compute GST.</li><li>GST on entire stake value but at a nominal rate of say 1.8%: This is simpler to calculate as it has only one data metric to be tracked by business i.e. stake value. However, the mechanism would be discriminatory for industry players having low rake since GST outflow would be high whereas margins are lower. This method is also prone to manipulation where ‘platform fee only’ players without any prize-winning model may offer nominal winnings to lower tax outflow.</li></ol>Given the online gaming industry acts as a technology enabler and facilitates gameplays through a web platform similar to software companies’ products, the report recommends a GST rate of 18% to be levied to mitigate any risks of misclassification of the online gaming industry as betting or gambling. The tax rate should not exceed 20% as it could result in the gaming operators as well as consumers entering the grey market. Singapore, South Africa and Australia follow the deemed credit model mechanism making it easier to verify and audit the entities. The model is in line with judicial decisions and also takes care of anticipated risk around the misdeclaration of rake fees.

India's online gaming industry has the potential to generate $2 billion by 2023: EY-All India Gaming Federation report

<ul><li>India’s rural consumers and the urban poor are squeezed between rising cost of living and low wages.</li><li>However, Finance Minister <keyword id="129243" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword>’s latest <keyword id="6358021" type="General" weightage="20" keywordseo="budget" source="Orion">budget</keyword> was a continuation of last year’s plan to spend more on building modern infrastructure.</li><li>Calls for tax cuts and immediate injection to boost consumer spending were largely ignored. </li><li>With five states going into polls within a month, ignoring the poor and the middle class may be a big gamble. But Sitharaman has chosen to place her faith in good economics over prudent politics.</li></ul>India’s rural consumers and the urban poor may have had the most amount of interest in Nirmala Sitharaman’s fourth budget as the country’s Finance Minister. However, they were, arguably, the most disappointed after her speech. There were a few changes to the import duties that could make stuff like edible oils, apparel cheaper and paints cheaper. But she ignored the call for tax cuts and more rebates to cover for rising cost of living, both due to rising prices of everyday items, as well as the added cost of vaccination and medication for families affected by the COVID-19 infection. The rise in rural wages has been slower than the inflation for much of the last 12 months. <div type="image" title="rural-wages" msid="89319179" hostid="261" caption="&amp;lt;p&amp;gt;The rise in rural wages has been slower than the inflation for much of the last 12 months.&amp;lt;/p&amp;gt;"></div> However, Sitharaman continued with charting long-term plans to modernise the country’s infrastructure with more roads and highways ⁠— through a dedicated programme called Gati Shakti ⁠— build more protection for local manufacturers of electronic products, solar equipment, imitation <a href="https://www.businessinsider.in/budget/news/diamonds-will-now-be-cheaper-imitation-jewell[%E2%80%A6]-budget-2022-will-impact-imports/articleshow/89272589.cms">jewellery</a> and more emergency loans for small and medium-sized businesses. <div type="INSTAGRAMURL" thumbUrl="undefined" caption="Caption not available." user="undefined" cmsId="1643877725318"><url><![CDATA[https://www.instagram.com/p/CZcJd8dBs2z/]]></url><permalink><![CDATA[https://www.instagram.com/p/CZcJd8dBs2z/]]></permalink><payload><![CDATA[]]></payload></div> Even the equity markets wanted the budget to boost people’s purchasing power because some of the country’s biggest consumer product makers like Hindustan Unilever, Marico and Britannia have struggled to find buyers. There was no extra love for hotels, travel operators or real estate developers, which were some of the sectors still reeling under the effect of the pandemic . Once the speech ended, <a href="https://stocktwits.com/TraderHarneet/message/432242104" data-type="tilCustomLink">markets</a> went into a tizzy for a variety of reasons. The fear, which lasted about 20 minutes, was a mix of disbelief and disenchantment. “As the supply of money in the economy shrinks, interest rates tend to go up, which is what people are worried about because if the government borrows so much then interest rates will go up,” Rajamani Venkataraman, managing director and executive director at IIFL Finance, explained on Business Insider. <div type="image" title="ST bank nifty post" height="900" width="1200" msid="89289426" hostid="261"></div> But the market made its peace soon enough. After all, there was the promise of profits in the future through highways contracts, production-linked incentives, improved logistics networks and a 35% jump in capital spending by the government. There was the promise of a digital rupee, backed by the Reserve Bank of India ⁠— although profits from <a href="https://www.businessinsider.in/budget/news/from-cryptocurrencies-to-nfts-india-to-tax-all-virtual-digital-assets-at-30/articleshow/89268587.cms">cryptocurrencies</a> would be taxable at 30% ⁠— and the <a href="https://www.businessinsider.in/budget/news/nirmala-sitharaman-announced-that-5g-services[%E2%80%A6]pen-by-2022-23-in-budget-session/articleshow/89267252.cms">launch of 5G networks</a> to look forward to in the coming year. Meanwhile, middle class people found reasons to laugh, thanks to the memes on social media. They can laugh and share jokes while they wait to be above water, financially, because Modi’s visionary administration wants India to have a digital university, electronic passports, cargo terminals, high-speed trains and dedicated roads for electric vehicles where those running on diesel and petrol won’t be allowed. A few unusual elements in the budget included the mention of mental health. 23 tele-mental health centres will be launched, with National Institute of Mental Health and Neurosciences (NIMHANS) as the nodal unit, and International Institute of Information Technology (IIIT), Bangalore providing tech support. Another one was the sharp drop in disinvestment target: from ₹1.75 lakh crore set earlier to ₹78,000 crore now, for the current year, and ₹65,000 crore the next one. “The emphasis is on completion of transaction and implementation. And, if we keep too high a target, sometimes, it also distorts the market. Nothing stops us from achieving a disinvestment as per the plan,” Tuhin Kanta Pandey, Secretary of Department Of Investment and Public Asset Management, told the media. More money – ₹48,000 crore – has been set aside for subsidised housing projects and to bring tap water to more homes at a cost of ₹60,000 crore before March 2023. It helped that the government’s own revenue has seen a robust growth in the last one year. The Finance Minister revealed — with a thrilling pause before the emphasis ⁠— that revenue from goods and services tax (GST) had hit a record high of over ₹1.4 lakh crore in January 2022. The government got kudos from top CEOs for its vision. For its courage to plan for the next 25 years. For its ability to borrow bravely despite its record debt. And, for its willingness to spend that money to build a new, futuristic India. <div type="twitter" handle="udaykotak" handlename="Uday Kotak" image="http://pbs.twimg.com/profile_images/532114039342505984/y0x0ooJy_normal.jpeg" favoritecount="3376" retweetcount="434" status="Budget: trust based governance to build atmanirbhar bharat. Reposes faith in taxpayers, entrepreneurs, investors. B… https://t.co/cS3iSrQEHr" createdat="1643702543000" id="1488422462714908672"></div> However, all the praise from the CEOs usually resonates only among a small part of the population. With five states going into polls within a month, ignoring the poor and the middle class may be a big gamble. But Sitharaman has chosen to place her faith in good economics over prudent politics. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/key-moments-from-nirmala-sitharamans-speech-that-moved-sensex-nifty-50/slidelist/89278989.cms">Key moments from Nirmala Sitharaman’s budget speech that moved the stock market</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/union-budget-2022-this-is-how-the-modi-government-plans-to-give-more-jobs-to-indians/slidelist/89278696.cms">Union Budget 2022: This is how the Modi government plans to give more jobs to Indians</a>

India budgets for a trickle down ⁠— as slow as that might be

<ul><li><keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>'s <keyword id="58448" type="COMPANY" weightage="20" keywordseo="Reliance-Retail">Reliance Retail</keyword> is looking to conquer offline players like <keyword id="6357823" type="UNKNOWN" weightage="20" keywordseo="big-bazaar">Big Bazaar</keyword>, Easy Day and More before taking on <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> and Amazon. </li><li>Reliance Jio is currently running pilot projects in 4 cities of its B2B platform that sells groceries to neighborhood shops.</li><li>The 'Hybrid Online-to-Offline' platform offers cashbacks and discounts that will reportedly allow smaller stores to compete with the prices offered by bigger retail giants.</li></ul>There's been a lot of talk around <a href="https://www.businessinsider.in/mukesh-ambanis-reliance-retail-ecommerce-launch-is-being-tested/articleshow/69026163.cms">Mukesh Ambani</a> planning a foray into <a href="https://www.businessinsider.in/mukesh-ambani-versus-amazon-walmart-in-india/articleshow/68918092.cms">e-commerce</a> pushing Reliance Retail online, using <a href="https://www.businessinsider.in/mukesh-ambanis-reliance-jio-speeds-up-its-broadband-plan/articleshow/70139677.cms">Reliance Jio's network</a>. But, unlike Flipkart and Amazon, Ambani is building a B2B platform to sell products to neighbourhood kirana stores online rather than sell to customers directly, according to sources who spoke to <a href="https://www.financialexpress.com/industry/e-commerce-reliance-jio-not-to-take-on-amazon-and-flipkart-readies-platform-to-wire-kirana-stores/1644162/">Financial Express</a>. So, before taking on <a href="https://www.businessinsider.in/amazon-walmart-owned-flipkart-set-back-by-new-e-commerce-rules-that-help-mukesh-ambanis-reliance-retail/articleshow/67751026.cms">global players in e-commerce</a>, Reliance is looking to take on larger offline retail players like Easy Day, <a href="https://www.businessinsider.in/kishore-biyanis-big-bazaar-wants-to-take-hindustan-unilever-and-procter-gamble-to-the-cleaners-with-its-own-laundry-brands/articleshow/70173836.cms">Big Bazaar</a> and More by allowing smaller shops to procure supplies are cheaper rates from Reliance itself. Sources also told the Financial Express that merchants will be able to attain cash backs and other discounts to help them compete against bigger organised retail players in the segment. From groceries to fruits and vegetable sellers, <a href="https://www.businessinsider.in/mukesh-ambani-owned-reliance-vs-vodafone-idea-vs-airtel-vs-bsnl-january-to-april-2019-subscriber-data/articleshow/69928185.cms">Reliance Jio'</a>s 'Hybrid Online-to-Offline' platform is currently in beta testing stage with pilot projects underway in Mumbai, Pune, Kolkata and Ahmedabad. Online inventory management The platform is going to be a mobile app that merchants can sign up for once they're Jio Prime members. From the app, they will be able to place orders for fruits, vegetables and other groceries to sell at their store. Essentially, the app will be able to manage a particular retailer's entire inventory through the portal including a software tool for <a href="https://www.businessinsider.in/gst-tax-rate-cuts-cost-india-900-billion/articleshow/70022754.cms">goods and services tax</a> (GST) and options to run promotional programmes like loyalty coupons. Once pilot projects are completed, the company reportedly plans to move the app onto Reliance's <a href="https://www.businessinsider.in/reliance-jios-app-crosses-10-million-downloads/articleshow/54482294.cms">MyJio</a> app making space for a B2C interface so that merchants can then sell supplies from their store directly to customers. Reliance is already a big player in the offline retail space and even <a href="https://www.ril.com/getattachment/b9a51ff7-41b4-421c-bf35-c589cbc66eb6/Financial%20Presentation%20-%20Q4%20Results.aspx">reported</a> an 89% jump in its income from ₹69,198 crore in 2017-18 to ₹130,556 crore in 2018-19. According to the company, it's the first retail giant in the country to have more than 10,000 stores in over 6,600 cities. One of the reasons Reliance cited for its success in the fiscal year for strong growth in grocery consumption across its Reliance Fresh, SMART and Reliance Market stores. See also: <a href="https://www.businessinsider.in/kishore-biyanis-big-bazaar-wants-to-take-hindustan-unilever-and-procter-gamble-to-the-cleaners-with-its-own-laundry-brands/articleshow/70173836.cms">Kishore Biyani's Big Bazaar wants to take Hindustan Unilever and Procter &amp; Gamble to the cleaners, with its own laundry brands</a> <a href="https://www.businessinsider.in/mukesh-ambanis-reliance-retail-ecommerce-launch-is-being-tested/articleshow/69026163.cms">Mukesh Ambani's e-commerce app is being tested within the company</a> <a href="https://www.businessinsider.in/mukesh-ambani-versus-amazon-walmart-in-india/articleshow/68918092.cms">Mukesh Ambani is clearing the way for the launch of his e-commerce business</a>

Mukesh Ambani's Reliance Retail wants to beat Big Bazaar and More before taking on Flipkart and Amazon

<ul><li>Parle is considering laying off 10,000 employees, thanks to the significant slump in sales, according to an ET report. </li><li>The auto industry has already laid off nearly 350,000 employees in the last four months. </li><li>Rural wages hit the lowest level in the last three years in May 2018. </li></ul>Every economic slowdown hurts the poorer people the most. It’s no different this time. The cash crunch rising out of a slowing economy and rising unemployment is biting budget households in India so bad that they are cutting back on biscuits and that is leading to more job losses at manufacturing plants. India’s largest biscuit maker, Parle is considering laying off 10,000 employees, thanks to the significant slump in sales, <a href="https://economictimes.indiatimes.com/jobs/drop-in-demand-may-force-parle-to-lay-off-up-to-10000-employees/articleshow/70763132.cms?from=mdr">according to</a> an ET report. Parle’s products are mostly consumed by people in the lower rungs of India’s economic pyramid, people in smaller towns and villages. Parle, which makes Parle-G, Monaco and Marie biscuits records an average sale of over ₹10,000 crore annually with over 100,000 employees. “The number of shops stocking these products is the same, but the number of products being sold from these shops is going down due to weakening consumer demand,” Mayank Shah, category heads at <keyword id="235733" type="COMPANY" weightage="20" keywordseo="Parle-Products">Parle Products</keyword> <a href="https://www.nationalheraldindia.com/india/after-britannia-now-parle-hit-by-slowdown-says-gst-responsible-for-it">told </a>National Herald. Higher tax and lower incomes It doesn’t help that biscuits are taxed at 12-18% in the goods and services tax regime. ““These biscuits were taxed at only 12-14 per cent under the previous excise and value added tax regime. Under GST, they are priced at 18%. This forces companies to increase prices, impacting sales,” Shah had added. The slowdown is getting increasingly visible in consumption. It started with trucks followed <a href="https://www.business-standard.com/article/companies/hul-volume-growth-slowest-in-7-quarters-q1-profit-in-line-with-estimates-119072400067_1.html">by car sales</a> and then two wheelers and now it has hit even products <a href="https://www.business-standard.com/article/companies/hul-volume-growth-slowest-in-7-quarters-q1-profit-in-line-with-estimates-119072400067_1.html">of daily consumption</a>. The auto industry has already <a href="https://www.businessinsider.in/indian-auto-manufacturers-have-laid-off-350000-jobs-in-four-months/articleshow/70563890.cms">laid off nearly 350,000 employees </a>in the last four months. Job cuts in companies like Parle will only make the situation worse. People are increasingly worried about the prospects in the coming as signalled by the Reserve Bank of India’s co<a href="https://www.livemint.com/news/india/consumer-confidence-for-the-month-of-june-drops-thomson-reuters-ipsos-survey-1563012458113.html">nsumer confidence index </a>that fell sharply in June 2019 and has stayed near that level since then. The falling biscuit sales only confirm that the country’s rural distress is far from abating. Rural wages hit the lowest level in the last three years in May 2018. “The turmoil is in rural, the turmoil is related to agriculture, so because of that the issues are happening in the value segment, right. So obviously it's affecting every segment but the biggest issue is happening in the value segment because that's what sells in those markets,” Varun Berry, the MD of Brittania said adding that people are shying away from buying <a href="https://www.businessinsider.in/Forget-cars-Indian-consumers-are-wary-of-buying-a-5-biscuit-packet/articleshow/70638256.cms">biscuits packs that are worth a mere ₹5</a>. Richer the better However, the richer Indians may be shelving plans for a new car but they aren’t cutting down on biscuits yet. So, the more expensive packs of biscuits are still selling well and that’s where <keyword id="6359432" type="DOMAIN" weightage="20" keywordseo="britannia">Britannia</keyword> has not had to resort to job cuts yet but Parle has. “With around 65-70% of the portfolio in the premium space, the company plans to introduce variants with protein, gluten free, whole wheat, seed, nuts, etc., and also a niche offering catering to modern trade and e-commerce channels,” said report on consumer sentiment by SBI Caps. See also: <a href="https://www.businessinsider.in/britannia-md-says-consumers-think-twice-before-buying-a-5-biscuit-raises-concerns-about-indian-economy/articleshow/70638256.cms">Forget cars, Indian consumers are wary of buying a ₹5 biscuit packet</a> <a href="https://www.businessinsider.in/kishore-biyanis-big-bazaar-wants-to-take-hindustan-unilever-and-procter-gamble-to-the-cleaners-with-its-own-laundry-brands/articleshow/70173836.cms">Kishore Biyani’s Big Bazaar wants to take Hindustan Unilever and Procter &amp; Gamble to the cleaners, with its own laundry brands</a>

India’s biscuit crisis shows slowdown is hurting the poor more — and job losses are making it worse

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Anuj Puri/Google PlusAnuj Puri, Chairman &amp; Country Head, JLL India, formerly Jones Lang LaSalle, spoke to Business Insider in Davos, Switzerland for the WEF meeting.</div></div></div>India's growing middle class and burgeoning retail and commercial sectors, coupled with the dearth of properties, make the country's real estate market a potentially lucrative place to invest.However, there is one part of the real estate market that is set to implode - luxury and premium properties.That's what Anuj Puri, Chairman &amp; Country Head, of JLL India (formerly Jones Lang LaSalle) told Business Insider on the sidelines of the World Economic Forum in Davos, Switzerland."Mostly all sectors of India's real estate market are good for investors apart from one - luxury and premium properties. A lot of developers got it wrong and didn't realise that we don't have many millionaires and billionaires in India so the luxury and premium market is going to take a beating. There's too much supply and too little demand," said Puri."But what we do have is a growing middle class and at the moment, as latest data from March 2015, it shows there is a 18.3 million dwelling unit shortfall. Affordable housing is very lucrative. When I say 'affordable housing' I am talking about the $75,000 to $100,000 range. There is huge demand."JLL and its country head for India, Puri, are pretty perfectly placed to make the call on where the Indian property market is going. After all, JLL is one of the world's leading and largest real estate and investment management companies with $6.2 billion in market capitalisation. Puri also oversees a team of over 8000+ employees across 11 cities in India.<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">ReutersHigh-rise residential towers under construction are pictured behind an old residential building in central Mumbai.</div></div></div>Puri says that affordable housing isn't the only potentially lucrative area for property investment - retail, warehouses and commercial real estate are all areas that are seeing demand growth."Retail properties are also a great opportunity for investors as people have better buying power," said Puri."There is also a lot of opportunity, which not a lot of people have identified yet, in warehouse and logistics. In India, most of these compaies are non-sophisticated and 'mom and pop' shops and it doesn't seem very sexy for an investor but it could be a great area for expansion if the '<a href="https://www.bankbazaar.com/tax/indirect-tax.html">Indirect Tax Bill</a>' gets through parliament."Indirect Tax is when the Indian government collects take from an intermediary such as a manufacturer or retailer. It's pretty complicated but the current government led by Narendra Modi is trying to get this changed and more streamlined by introducing a uniformed Goods and Services Tax (GST) bill.And Puri thinks this could be the key to opening the market up more to foreign investment and "trust" for companies looking to bring business to India."Hopefully the bill (which unifies tax rates) will go through. At the moment, India has 29 states with 29 taxes," he said."As a company like Proctor and Gamble for instance, you aren't going to set up units or warehouses in different parts of India and worry about what taxes they have to pay in each different state. It makes it too difficult for people to do business." <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/volkswagen-brand-chief-apology-ces-scandal-vw-herbert-diess-2016-1">Volkswagen's brand chief gave an extended apology before their CES keynote</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="Z2OTcxMDE6jEOoKMTCYmvKW9Pm28yMpX" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

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