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<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

<ul><li>The <keyword id="19925636" type="General" weightage="20" keywordseo="stock-market" source="keywords">stock market</keyword> commenced on a positive note today, as both the Sensex and Nifty indices saw gains.</li><li>Sensex opened 74.96 points up at 73970.50, while Nifty 50 opened 35.70 points higher at 22478.40.</li><li>Hindustan Unilever, Britannia, BPCL, ITC, and Coal India led the gains, while Bajaj-Auto, Power Grid, Cipla, Divi's Lab, and JSW Steel were the top decliners.</li></ul>The stock market commenced trading on a positive note today, as both the Sensex and Nifty indices saw gains, aligning with global market trends. Sensex opened 74.96 points up at 73970.50, while Nifty 50 opened 35.70 points higher at 22478.40. Among the Nifty companies, 29 were advancing while 21 were declining. Hindustan Unilever, Britannia, BPCL, ITC, and Coal India led the gains, while Bajaj-Auto, Power Grid, Cipla, Divi's Lab, and JSW Steel were the top decliners. Market expert Ajay Bagga attributed the positive opening to the strong corporate earnings in the US and enhanced rate cut expectations following a subdued April Jobs Report. He noted that <keyword id="20155107" type="General" weightage="20" keywordseo="Asian-markets" source="keywords">Asian markets</keyword> also opened positively, setting the stage for a mildly positive start in India. However, Bagga highlighted the trend of afternoon <keyword id="21360658" type="General" weightage="20" keywordseo="FII-selling" source="keywords">FII selling</keyword>, which has been limiting significant upward movements in the Indian markets. Bagga said, "US markets finished the session at the days high on the back of continued strong corporate earnings and enhanced rate cut expectations following last weeks subdued April Jobs Report. Asian markets opened positive in a continuation trade. Indian futures are indicating a mildly positive start. However the last few days trend has been a mildly positive opening in India based on good global cues followed by FII selling in the afternoon." He added, "FII selling is sustaining for now and is not allowing Indian markets to cross significant levels on the upside. For now expect range bound price action , with stocks moving on their earnings announcements." Currently, Nifty is positioned around the support levels of 22,400 - 22,300, with a short-term negative trend. Analysts suggest the possibility of an upside bounce as long as the support at 22,300 holds, but a breach of this level could lead to further weakness in the short term. Analyzing the Nifty Open Interest (OI) Data, the highest OI on the call side was observed at 22,500 and 22,700 strike prices, while on the put side, the highest OI was at 22,500 strike price. Meanwhile, Asian stocks saw marginal gains, with Japan's Nikkei 225 surging up to 1.6% and Australian equities also showing positive movements. The yen depreciated after Japan's top currency official, Masato Kanda, suggested no immediate need for government intervention in the market. Optimism surrounding China's supportive policies and expectations for a continuation of economic policies in India under Prime Minister Narendra Modi's potential third term contributed to the positive sentiment in global equity markets. Varun Aggarwal, founder and managing director, Profit Idea, said, "Optimism surrounding China's supportive policies and expectations for a continuation of economic policies in India under Prime Minister Narendra Modi's potential third term are contributing to the positive sentiment in global equity markets. Oil prices rose, while US stock futures remained steady amidst developments in the Israel-Gaza conflict." Oil prices rose, while US stock futures remained steady amidst developments in the Israel-Gaza conflict. In the US, investors analyzed remarks from various Fed officials regarding interest rate trajectories, while Australia's central bank is expected to maintain its key interest rate with a reinstated hawkish bias. Overall, the backdrop for stocks remains favorable, driven by healthy profit growth, potential Fed rate cuts, and increased investment in artificial intelligence. SEE ALSO:<a href="https://www.businessinsider.in/stock-market/webstories/indegene-ipo-company-details-to-risk-factors-all-you-need-to-know/slidelist/109888922.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/indegene-ipo-company-details-to-risk-factors-all-you-need-to-know/slidelist/109888922.cms" target="_blank">Indegene IPO: Company details to risk factors, all you need to know</a><a href="https://www.businessinsider.in/tech/news/worldwide-tablet-shipments-grow-in-q1-2024-after-two-years-of-decline/articleshow/109876390.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/worldwide-tablet-shipments-grow-in-q1-2024-after-two-years-of-decline/articleshow/109876390.cms" target="_blank">Worldwide tablet shipments grow in Q1 2024 after two years of decline</a><a href="https://www.businessinsider.in/tech/news/asus-zenbook-duo-review/articleshow/109875023.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/asus-zenbook-duo-review/articleshow/109875023.cms" target="_blank">Asus ZenBook Duo review – an excellent dual-screen laptop for multitaskers</a>

Sensex-Nifty rally at opening bell, riding high on global market surge

<ul><li>Stock indices, Sensex and <keyword id="19896381" type="General" weightage="20" keywordseo="nifty" source="keywords">Nifty</keyword>, kicked off the trading week with a surge, buoyed by positive global cues.</li><li>Sensex gained 178.02 points, opening at 74,064.96, while Nifty rose by 49.35 points, starting the day at 22,523.30.</li><li>Leading the gains were Britannia, Kotak Bank, JSW Steel, Maruti, and TCS, whereas Titan, SBI, Shri Ram Finance Limited, AdPorts, and Adani Enterprises faced losses.</li></ul>Stock indices, Sensex and Nifty, kicked off the trading week with a surge, buoyed by positive global cues. Sensex gained 178.02 points, opening at 74,064.96, while Nifty rose by 49.35 points, starting the day at 22,523.30. Among the Nifty companies, 31 advanced while 19 declined in the opening session. Leading the gains were Britannia, Kotak Bank, JSW Steel, Maruti, and TCS, whereas Titan, SBI, Shri Ram Finance Limited, AdPorts, and Adani Enterprises faced losses. Varun Aggarwal, founder and managing director, Profit Idea, said, "The positive momentum in the Indian markets mirrors the trend in <keyword id="20075663" type="General" weightage="20" keywordseo="Asian-equities" source="keywords">Asian equities</keyword>, which as expected opened strong on Monday. This optimism stems from China's return from holiday and a softer-than-expected US jobs report, which has revived hopes for Federal Reserve rate cuts. <keyword id="21540680" type="General" weightage="20" keywordseo="US-stock-futures" source="keywords">US stock futures</keyword> edged higher, with contracts in Australia and Hong Kong pointing to gains." Global stocks had a buoyant week previously, with US Treasuries rallying on Friday. Australian and New Zealand bonds also rose, driven by weaker-than-estimated data points that sent the US Economic Surprise Index to its lowest since February 2023. However, technical indicators for Nifty 50 signal caution. The index formed a bearish engulfing pattern on the daily chart, suggesting potential weakness ahead. The weekly chart indicates a gravestone doji pattern, hinting at a possible reversal. The short-term trend has shifted downward, with immediate resistance at 22,600 and next downside levels at 22,120. Traders will keep a close eye on central bank meetings scheduled for this week, including the Reserve Bank of Australia, expected to adopt a hawkish stance. Additionally, Chinese activity data and inflation readings in key emerging markets will be closely watched. Oil prices saw an uptick after Israel closed the Kerem Shalom humanitarian crossing into Gaza, and Saudi Arabia lifted crude prices to Asia to tighten the oil market. The positive start for Sensex and Nifty reflects broader optimism in global markets, driven by favorable economic indicators and central bank policies. However, technical patterns suggest potential challenges ahead, urging investors to remain cautious amid uncertainties. SEE ALSO:<a href="https://www.businessinsider.in/tech/mobile/news/global-smartphone-shipments-grow-by-6-in-q1-2024-samsung-retakes-the-top-spot/articleshow/109817280.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/global-smartphone-shipments-grow-by-6-in-q1-2024-samsung-retakes-the-top-spot/articleshow/109817280.cms" target="_blank">Global smartphone shipments grow by 6% in Q1 2024, Samsung retakes the top spot</a><a href="https://www.businessinsider.in/business/auto/webstories/bajaj-pulsar-ns400z-launched-at-1-85-lakh-becomes-cheapest-400cc-bike-in-the-country/slidelist/109810458.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/webstories/bajaj-pulsar-ns400z-launched-at-1-85-lakh-becomes-cheapest-400cc-bike-in-the-country/slidelist/109810458.cms" target="_blank">Bajaj Pulsar NS400Z launched at ₹1.85 lakh, becomes cheapest 400cc bike in the country</a><a href="https://www.businessinsider.in/business/auto/news/electric-two-wheeler-sales-crater-in-april-2024-as-prices-increase-amid-reduced-subsidies/articleshow/109806054.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/news/electric-two-wheeler-sales-crater-in-april-2024-as-prices-increase-amid-reduced-subsidies/articleshow/109806054.cms" target="_blank">Electric two-wheeler sales crater in April 2024 as prices increase amid reduced subsidies</a>

Stock indices surge as Sensex-Nifty start trading week on positive note

<ul class="summary-list"><li>I joined the Royal Navy three years ago and came out as gay to my fellow officers.</li><li>Despite the Royal Navy's homophobic history, the other officers accepted me.</li></ul>Editor's note: Insider has verified the identity of the writer, but they asked to remain anonymous to retain their privacy.On my 25th <a href="https://www.insider.com/free-birthday-stuff-freebies-nyc-discounts-food-rewards-deals-2022-8">birthday</a>, I made a life-changing decision: I joined the Royal Navy as a warfare officer. Not long after, I made another bold decision: I came out as gay to my fellow officers. After that, one thought repeated in my head: "Don't let them think <a href="https://www.insider.com/lgbtq-celebrities-who-talk-about-being-gay-pride-2019-6">gays</a> are weak." I repeated that thought as I crawled through the mud in the pouring rain and stumbled over hills in the snow. It became my driving force during training. As motivating as the thought was, I later realized I was putting myself in a box that no one else was.<h2>Coming out as gay in the Royal Navy went surprisingly smoothly</h2>When I joined the Navy three years ago, I already had a degree in social sciences and secured my dream job. But I was still lacking something. I wanted wider life experience, real-world skills, and more confidence. When I met up with an old friend who had <a href="https://www.insider.com/every-piece-gear-us-army-combat-medics-bag-2022-11">joined the military</a>, I saw how he improved himself. So I took his advice and joined the Navy — also following in my grandfather's footsteps. A year later, I began training at <a href="https://www.royalnavy.mod.uk/our-organisation/bases-and-stations/training-establishments/brnc-dartmouth" target="_blank" rel="noopener">Britannia Royal Naval College</a> in Dartmouth, Devon. A <a href="https://www.youtube.com/watch?v=wJdnF6HKM1I" target="_blank" rel="noopener">1977 documentary</a> compares the experience of training at Dartmouth to a Japanese prisoner-of-war camp. It has softened since then, but the start of training is too hectic to focus on anything but that. Those early days were filled with endless kit inspections, running around the hills of Dartmoor loaded with equipment, and log runs where we ran a series of logs around the base.So it was several weeks into training when I came out to my division after a night out. I felt that we had grown so close as a group, they deserved to know the truth. I wanted them to know who I truly was. Some were surprised, and some tried to hide their surprise. Overall, my revelation was met with acceptance and little comment. Of course, this wasn't the only time I had to come out — the process repeats each time I join a new ship or unit. On board a ship, word gets around fast; sailors love gossip. If one person knows, you best assume the whole ship knows. On one ship, I told a couple of officers in the wardroom. Barely an hour later, I was heading ashore when I overheard one sailor telling another about me being gay. But there are benefits to this. When you come out, you will be promptly told (if you don't know already) about every other nonheterosexual on board. There's no divide, but it is useful to know in case you want to talk about something with other queer folks.<h2>The UK only lifted the ban on LGBTQ people serving in the armed forces in 2000</h2>Before then, around <a href="http://news.bbc.co.uk/2/hi/uk_news/458714.stm" target="_blank" rel="noopener">60 servicemen were forced to leave military service</a> every year because of their sexuality, the BBC reported. We'll probably never know the actual number of people who felt unable to reconcile their sexuality with their service and left the military because of it.The issue was largely a consequence of the divide between public and military opinion. Despite<a href="http://news.bbc.co.uk/2/hi/uk_news/458714.stm" target="_blank" rel="noopener"> 68% of the public opposing the ban in 1999</a>, a survey of military personnel in the mid-'90s found that 95% of respondents said they would prefer not to serve alongside homosexuals, the BBC reported. The military has become much more welcoming since then. Originally, it was feared that the arrival of gays into the military would create an "us versus them" mindset, disrupting the unity required for operational effectiveness. This never materialized. Instead, closeted personnel lost the stress of a Damoclean sword hanging over their heads. In 2006, personnel in the Royal Navy were allowed to wear uniforms at Pride events. Today, all personnel undertake diversity and inclusion training, and each unit has a designated diversity and inclusion team.<h2>The final barrier came from within me</h2>Willem Arondeus was a Dutch resistance fighter in World War II. After being betrayed, captured, and sentenced to death, <a href="https://www.ebar.com/story.php?ch=news&amp;sc=history&amp;id=309463" target="_blank" rel="noopener">his last words were</a>: "Let it be known homosexuals are not cowards." This quote exposes a fear intrinsic to my gay experience — a fear that my sexuality makes me inferior.I don't believe that it does. I don't think my colleagues believe it either, yet under stress, our brains play tricks on us. We look for enemies, and in a testosterone-filled, high-pressure environment, that fear cuts deeper.Knowing that I wanted to come out in the future, I sought to prove myself from day one. During every daily physical-training session when my body was screaming at me to give up or slow down, Arondeus' quote would reverberate in my head, pushing me forward. One time I was given a medical exemption from a training session after the medical staff found I had severe shin splints. I tore up the exemption and attended the session anyway. I constantly felt like I was under greater scrutiny and someone was waiting for me to screw up.Coming out freed me from this mindset. Seeing my friends and colleagues accept me without judgment, I realized that the standard I had to meet was the same for everyone. I still gave my all, but without the self-inflicted pressure and stress. After all, I had proved to myself that I was good enough — that I could hold my own.

I'm a British Royal Navy officer — and I'm gay. I feel like I've had to work twice as hard as my straight peers.

<ul><li>Nirmala Sitharaman is all set to make her fourth budget speech as India’s <keyword id="6355261" type="General" weightage="20" keywordseo="finance-minister" source="Orion">Finance Minister</keyword>.</li><li>Stock markets have regained a lot of the recently lost value in the hope that the Narendra Modi government will spend enough money to boost private consumption.</li><li>This article will be updated with the most important parts of Sitharaman’s speech as soon as she starts speaking.</li></ul>Nirmala Sitharaman is all set to make her fourth budget speech as India’s Finance Minister. Stock markets have regained a lot of the recently lost value in the hope that the Narendra Modi government will spend enough money to boost private consumption. This may include income tax cuts as well, according to experts. The first part of her speech focussed on the government’s upcoming programme titled ‘Gati Shakti’. This programme involves big public investment in building modern infrastructure including roads, highways, seamless multimodal transport, and improving logistics networks to name a few. As part of this programme, the budget has allocated ₹20,000 crore to award 25,000 kilometres of highway projects in the financial year ending March 2023. In deference to the request from many states, the outlay of the Scheme for Financial Assistance to states has been increased from ₹10,000 crore to ₹15,000 crore. The allocation for FY23 is ₹1 lakh crore to catalyse overall investments in the economy. The 50-year interest free bonds are over and above the normal borrowings by the states. This will be used for Gati Shakti, rural road projects, town planning schemes etc. The Finance Minister has announced a fund to support startups in agriculture which will be routed via National Bank for Agriculture and Rural Development (NABARD). A credit guarantee trust will create additional credit of ₹2 lakh crore for small businesses. Desh Stack platform will provide API-based certification and help upskilled people find relevant jobs. The Finance Minister proposed the use of drones as a service in select Industrial Training Institutes (ITIs) in all states. A national digital university will be launched, in a hub-and-spoke model, where other public universities will collaborate. To improve access to mental healthcare, 23 tele-mental health centres will be launched, with National Institute of Mental Health and Neuro-Sciences (NIMHANS) as the nodal unit, and Indian Institutes of Information Technology (IIIT) Bangalore providing tech support. ₹60,000 crore budget allocation in FY23 to take piped water connections to 8.8 crore homes. 23 tele-mental health centres will be launched to improve access to mental healthcare. NIMHANS will function as the nodal unit, and IIIT Bangalore providing tech support. PM Awas Yojana, a subsidised housing scheme, gets a budget allocation of ₹48,000 crore. E-passports with embedded chips will be rolled out in 2022-23 to make it convenient for citizens. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/minda-industries-sona-comstar-greaves-cotton-amongst-biggest-gainers-as-investors-bet-on-budget-2022-being-ev-friendly/articleshow/89264077.cms">Minda Industries, Sona Comstar, Greaves Cotton amongst biggest gainers as investors bet on Budget 2022 being EV-friendly</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/shares-of-fmcg-companies-rise-on-hopes-of-consumption-boost-for-the-sector/articleshow/89263952.cms">Britannia, Dabur, Marico surge on hopes that budget will leave people with more money to buy stuff</a>

Budget 2022: Watch out for the highlights from Finance Minister Nirmala Sitharaman’s speech

<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>HUL Chairman and Managing Director, <keyword id="169120" type="PERSON" weightage="20" keywordseo="Sanjiv-Mehta">Sanjiv Mehta</keyword> made a clarion call for more government support to boost consumption in the cities. </li><li>Nearly 60% of the total sales for HUL comes from urban cities, which fetches a large portion of the premium for FMCG companies. </li><li>Between falling earnings, job losses, poor business, and widespread risk aversion, many retail stores have closed down, and HUL’s distributors are not able to recover their dues. </li></ul>Sanjiv Mehta, the Chairman and Managing Director (CMD) of Hindustan Unilever (HUL), said that India would have to be “aggressive” with spending to boost consumption in the cities before it’s too late. For some of the distributors of India’s largest consumer staples company, the damage has already been done. Speaking at a virtual event organized by the All India Management Association (AIMA), Mehta raised the need for a cut in interest rates, given the signs of urban distress that have emerged due to the COVID-19 pandemic. “There is a risk of inflation, but the bigger risk is the economy going into a tailspin. So there should be an aggressiveness with which we reduce the interest rates, clearly with the risk that there could be more inflation coming,” <a href="https://economictimes.indiatimes.com/news/economy/finance/government-has-to-step-up-spending-before-its-too-late-says-hul-chairman-sanjiv-mehta/articleshow/78246163.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst.">he said</a>. While the resilience of the rural economy has been a calming factor during the lockdown, it is not enough for the fast-moving consumer goods (FMCG) companies like HUL, ITC, or Marico to make money as urban areas account for the majority of sales in India. A big part of rural India still buys unbranded products, while the margin for FMCG companies comes from premium products, which are sold in the big cities. “The rural per capita consumption of FMCG is less than half of the national average. It is very visible now that the rural growth rates are higher. The issue for us is the urban growth rate,” said Mehta. And, on that count, HUL and Britannia are the most vulnerable because the two companies make 60% of their revenue from the cities. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rural sales </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Urban sales </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Britannia </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">40% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">60% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Emami </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">50% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">50% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dabur </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">45% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">55% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hindustan Unilever </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">40% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">60% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nestle </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">75% </td></tr></tbody></table> Source: Edelweiss report dated September 16 Urban poor under distress The lockdown has taken a toll on the income across regions and classes, socio-economic categories. The government has introduced various relief measures for the rural economy during the pandemic, such as the government economic stimulus increased allocation under the MGNREGA scheme to enhance job opportunities in rural areas. These relief measures are largely focussed on rural areas. On the other hand, Mehta believes that the government should look at how the urban buying sentiment can be revived. “There is very clear anecdotal evidence of growth rates in the staples in urban India slowing down, which could be a very clear pointer that the urban poor are feeling the stress,” he said. <div type="image" title="HUL portfolio" msid="78267486" hostid="261"></div> The on-ground reality for HUL distributors According to the ICICI Securities report, the increase in the distributor’s bad debts due to the lockdown has led to the permanent closure of a few retail stores. The distributors are finding it difficult to absorb this loss with margins of 4%, the report said. The company has also not offered a grace period to the credit days, which continue to hang like a sword on distributors’ necks. With a downtrend in its revenue, HUL has reduced the number of trade schemes and discounts. The company has also taken a price hike of 8% in Red Label Dust tea. HUL’s revenues declined 7% in the first quarter if the revenue from its GSK Consumer integration⁠— of which the food powder Horlicks was the biggest contributor⁠—is excluded. HUL’s share price reflects investors’ pessimism The share price of HUL hit a nearly three-month low of ₹2,011.70 on September 20. While it recouped the losses by the end of trade, during the day - it was trading 2% lower today when the overall market was down 0.32%. <div type="image" title="HUL (1)" msid="78267507" hostid="261"></div> Edelweiss Securities report highlighted various factors that have led to underperformance of the HUL’s stock. One of the key reasons was that out-of-home products like Kwality Walls ice-cream and Kissan Jam constituted approximately 5% of HUL’s portfolio, and it declined 69% in the first quarter. Edelweiss also expects margins to remain under pressure, with the declining economy. “Skincare, which is a high margin business, is doing well but still not back to pre-COVID levels. This along with tea prices being up 60% YoY and palm oil prices staying elevated, gross margin will be under pressure YoY” And lifestyle products sell more in urban India than in the smaller towns and villages. SEE ALSO: <a href="https://www.businessinsider.in/business/news/mukesh-ambani-reliance-retail-gets-its-second-investment-in-two-weeks-kkr-invests-5550-crore/articleshow/78267281.cms" data-type="tilCustomLink">Mukesh Ambani's Reliance Retail gets its second investment in two weeks – KKR invests ₹5,550 crore</a> <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-tata-group-future-enterprises-ril-central-bank-of-india-dhfl-care-ratings-and-others/articleshow/78267049.cms" data-type="tilCustomLink">Top stocks to watch— Tata Group, Future Enterprises, RIL, Central Bank of India, DHFL, CARE Ratings and others</a>

Data shows why HUL Chairman is urging the government to spend more to boost consumption

<ul><li><keyword id="6365619" type="COMPANY" weightage="20" keywordseo="hindustan-unilever">Hindustan Unilever</keyword> Limited has cut prices for <keyword id="6616182" type="UNKNOWN" weightage="20" keywordseo="Lifebuoy">Lifebuoy</keyword>, <keyword id="119472" type="ENTERTAINMENT" weightage="20" keywordseo="Lux">Lux</keyword> and Dove in lieu of low demand. </li><li>The Indian economic slowdown has hit FMCG companies.</li><li>Biscuit manufacturers Parle G and Brittania too have a worried outlook for the <keyword id="34412" type="ORGANIZATION" weightage="20" keywordseo="economy">economy</keyword>. </li></ul>One of the biggest FMCG companies in India – Hindustan Unilever Limited – has cut prices for some of its most popular <a href="https://www.livemint.com/industry/retail/hul-reduces-lifebuoy-lux-prices-in-latest-sign-of-weak-demand-1566928904118.html">soaps </a>– Lifebuoy, Lux and Dove. While demand is one reason for it, tapering commodity prices also allowed them to take a call and pass on the benefits, the company told <a href="https://www.livemint.com/industry/retail/hul-reduces-lifebuoy-lux-prices-in-latest-sign-of-weak-demand-1566928904118.html">Mint.</a> While the price of Lux range will go down by 4%, that of Lifebuoy will go down by 6%. The Indian economic slowdown has impacted all major companies in the FMCG sector. Parle G, a leading biscuit manufacturer said it is planning to slash 10,000 jobs due to weak demand. Even though <a href="https://www.hindustantimes.com/india-news/fair-tax-gst-and-big-job-cut-parle-clears-air-on-layoffs/story-G2N4IYsC5aQ0x9rINe8EHN.html">Parle G</a> has denied the same, it has also said it is “an eventuality if our demand for lesser tax rates is not met.” In the <a href="https://www.dnaindia.com/business/report-consumers-thinking-twice-before-buying-a-rs-5-pack-britannia-2781047">latest earnings conference call</a> of Britannia, the company’s MD Varun Berry raised some serious concerns about the Indian economy. "We've grown only 6% and the market is growing slower than that. And that's a little bit of a worry, because even for a ₹5 product if the consumer is thinking twice before buying it, then there is some serious issue in the economy,” he said. See Also: <a href="https://www.businessinsider.in/indian-villagers-are-not-buying-clothes-and-cutting-back-on-hair-oil/articleshow/70856804.cms">After biscuits, Indian villagers are cutting down on clothes and hair oil too</a>

Lifebuoy and Lux get cheaper as HUL reduces prices because of low demand

<ul><li>The average purchasing power in India is depleting fast that is likely to affect consumer demand.</li><li>However, benchmark indices Sensex and Nifty have recently hit record levels thanks to a surge in corporate profits, most of which came from cost cutting.</li><li>The sustained fall in household savings, both financial and physical assets like gold or real estate, over the last five years has been worsened by the fall in wages.</li><li>This has led to a sharp fall in consumer confidence and that is bad news for companies looking to sell cars, jewellery, home appliances, and even shares and other financial investments.</li></ul>Forget gross domestic product (GDP) and the high-as-a-kite stock markets. Even the Narendra Modi government likes to <a href="https://timesofindia.indiatimes.com/business/india-business/india-gdp-in-ppp-terms-more-than-bdeshs-govt/articleshow/78671559.cms" data-type="tilCustomLink" target="_blank">cite the country’s purchasing power when cornered</a>. But even that is on a slide, a not-so-merry one. It’s hardly a surprise given the knockout punch that the COVID-19 virus has delivered. Businesses looking to protect their bottomline have laid off a lot of employees, and many of those who still have jobs aren’t earning as much as they used to. On the other hand, <a href="https://zeenews.india.com/markets/sensex-hits-fresh-record-high-tops-44000-level-2325095.html" data-type="tilCustomLink" target="_blank">Sensex has kissed new highs</a> because corporate profits have surged in the latest quarterly statements. However, as Mahesh Vyas from the Centre for Monitoring Indian Economy, a business information firm, pointed out, between July and September 2020, corporate profits grew over 20%, the rebound in wages was just 3.8% after a sharp fall in the preceding quarter. And this is likely to be a continuing trend. As <a href="https://economictimes.indiatimes.com/news/company/corporate-trends/why-companies-profits-have-rebounded-faster-than-wages-during-covid-pandemic/articleshow/79308002.cms" data-type="tilCustomLink" target="_blank">Vyas put it</a>, “The lockdown has taught companies a lesson or two on running business with fewer human resources. These lessons are unlikely to be forgotten.” That’s bad news for companies looking to sell cars, jewellery, home appliances, and even shares and other financial investments. There is more evidence of where the profits are flowing from. All the companies analysed by broking firm Motilal Oswal, put together, saw a decline of 7% in sales but a 16% jump in profit after tax. Simply put, most of the profit came from cost cutting and not a rise in demand. Consumer insights firm Nielsen recently explained the phenomenon. The Indian consumer is trading down in certain segments, those who can are buying larger packs to save money, and opting for more private labels. And that’s visible in the gross margin ⁠— before costs like wages, advertisements and promotion are deducted ⁠— of some of biggest names in consumer products. <table style="width: 233pt;"> </colgroup> <tbody><tr> <td class="xl63" style="height:45.0pt;width:129pt">Company</td> <td class="xl64" style="border-left-width: initial; border-left-style: none; width: 104pt;">July-Sep gross margin change (basis points)</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Bajaj Consumer</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-74</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Agro Tech Foods</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-183</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Jyothy Labs</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">128</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">ITC</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-163</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Dabur</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">9</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">HUL</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-128</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Emami</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">55</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Marico</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-163</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Nestle</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">56</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Colgate</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">344</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Godrej Consumer</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-57</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Britannia</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">176</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Varun Beverages</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-149</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Tata Consumer Products</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-269</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Aggregate</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-220</td> </tr></tbody></table>Source: IIFL, Change compared to same period last year Rational people spend more on discretionary items like cars and appliances when they save more. And the larger pessimism is visible in <a href="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/CCS09102023E6F5FCA08F4C4BAB9F599F5D9DC754.PDF" data-type="tilCustomLink" target="_blank">the consumer confidence data</a>, put out by the Reserve Bank of India (RBI), which is breaking the charts on the wrong side. People do not expect to spend more on non-essential items even in the next one year. <div type="image" title="rbi ccs" msid="79317971" hostid="261" caption="&amp;lt;p&amp;gt;Indian consumer&amp;#39;s expectation of spending on non-essential items is abysmally low.&amp;lt;/p&amp;gt;"></div> The Indian consumer’s ability or willingness to spend had started eroding long before the pandemic. And, on an average, there has been a steady decline in household savings in India, to a point that this year’s estimate is the lowest since at least 2012. The pinch is much worse for people who are retired, many of whom living on their savings lying at the banks. The interest on long-term fixed deposits make less money compared to the savings account, which is much lower than the current inflation. Essentially, people are paying banks rent to keep their money safe instead of earning from it. <div type="image" title="India household savings" msid="79318175" hostid="261" caption="&amp;lt;p&amp;gt;India household savings, both financial &amp;lt;span class=&amp;quot;redactor-invisible-space&amp;quot;&amp;gt;and in physical assets like gold, are sharply down in the last five years.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;"></div> This should concern markets as well as policymakers. "GDP is an aggregative indicator of economic activity and hides the extent of human misery and the loss of social and human capital caused by the health crisis. Nonetheless, if the projections hold, the GDP would have fallen approximately 6% below its pre-COVID level and it may take years to regain this lost output,” Deputy Governor of the RBI and a member of the Monetary Policy Committee Michael D Patra recently <a href="https://timesofindia.indiatimes.com/business/india-business/rate-cut-will-depend-upon-moderation-in-inflation-rbi-governor-shanktikanta-das/articleshow/78829858.cms" data-type="tilCustomLink" target="_blank">said</a>. The gloom, too, shall pass eventually. But to experience a boom people need jobs, good wages and a feeling of certainty. And that will only come from new corporate investment that can generate employment. And it has to happen sooner than later. Else, India’s famed demographic dividend would have been squandered. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/from-downward-dog-to-upward-boom-influencer-and-teacher-ira-trivedi-shares-how-virtual-yoga-took-off-during-the-lockdown/articleshow/79317417.cms">From downward dog to upward boom — influencer and teacher Ira Trivedi shares how virtual yoga took off during the lockdown</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/from-downward-dog-to-upward-boom-influencer-and-teacher-ira-trivedi-shares-how-virtual-yoga-took-off-during-the-lockdown/articleshow/79317417.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/remembering-ym-deosthalee-the-man-who-struck-the-right-chord-between-music-and-math/articleshow/79306305.cms">Remembering YM Deosthalee, the man who struck the right chord between music and math</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/remembering-ym-deosthalee-the-man-who-struck-the-right-chord-between-music-and-math/articleshow/79306305.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/indra-nooyi-may-be-in-joe-biden-cabinet-heres-a-look-at-her-take-on-some-key-issues-concerning-india-and-us/articleshow/79303469.cms">Indra Nooyi may be in Joe Biden's Cabinet – here's a look at her take on some key issues concerning India and US</a>

You Searched For "jobs cuts in britannia" and got 9 results

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

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Sensex-Nifty rally at opening bell, riding high on global market surge

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Stock indices surge as Sensex-Nifty start trading week on positive note

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I'm a British Royal Navy officer — and I'm gay. I feel like I've had to work twice as hard as my straight peers.

Anonymous

Budget 2022: Watch out for the highlights from Finance Minister Nirmala Sitharaman’s speech

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

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Data shows why HUL Chairman is urging the government to spend more to boost consumption

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Lifebuoy and Lux get cheaper as HUL reduces prices because of low demand

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There is a lot of money in the share market but not enough in your pocket

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