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<ul><li>The US is in a recession now, but that doesn’t seem to be the top worry for <keyword id="1727754" type="General" weightage="50" keywordseo="jerome-powell" source="Orion">Jerome Powell</keyword>, the chairman of the <keyword id="117388" type="General" weightage="80" keywordseo="us-fed" source="Orion">US Fed</keyword>.</li><li>Experts see a combination of quantitative tightening and rate hikes directing US <keyword id="45672" type="General" weightage="100" keywordseo="fed" source="Orion">Fed</keyword>’s monetary policy for the next two years.</li><li>However, this has shrunk the window for a soft landing, and a deeper <keyword id="58692" type="General" weightage="20" keywordseo="us-recession" source="Orion">US recession</keyword> could spell “deep trouble” for India, say experts.</li></ul>There has been a lot of buzz about the US Fed’s rate hikes and how the markets have reacted to them, how foreign investors have been fleeing emerging markets like India and plowing money into the US instead, but many a common man might have wondered why they should care about it. The short answer is – the common man should care about US Fed hiking rates. The long answer depends on how complex this is to understand, but the short of it is, economies all over the world are more connected and dependent on each other than they have been before. Given the US Dollar’s status as the world’s reserve currency, and the US being the world’s largest economy, when the US Fed sneezes, the world catches a cold. But this time around, the US Fed sneezed after it caught a fever, thanks to its massive quantitative easing program that was resumed after Covid, resulting in it printing $5 trillion – by some estimates, this is nearly 80% of all the dollars that were in supply at the time. <cmsannotation type="cmsannotation" annotationid="The backstory: What is quantitative easing and where has it led us?" comment="subhead" text="The backstory: What is quantitative easing and where has it led us?">The backstory: What is quantitative easing and where has it led us?</cmsannotation> A bulk of the blame for the current quagmire goes to quantitative easing, but other geopolitical factors like the Russia-Ukraine war and the resulting sanctions drove inflation up all around the world, including the US, which is now in a recession. To arrest inflation, the US Fed has embarked on a rate hike regime. In his commentary, Fed chair Jerome Powell hinted at the possibility of another 50-75 basis point rate hike come September, but pundits peering through Powell’s words suggest he is now leaning towards a dovish outlook. What this means is that we may see the end of the rate hikes later this year, with rate cuts beginning some time in 2024. While this might come as a relief to those terrified of rate hikes – after all, who doesn’t love cheap capital – there’s a bigger weapon in the US Fed's arsenal – trimming the balance sheet, aka quantitative tightening. <cmsannotation type="cmsannotation" annotationid="Is the US in recession?" comment="subhead" text="Is the US in recession?">Is the US in recession?</cmsannotation> A post-Covid boom was all but expected until the end of 2021 – when things started to change slowly but decisively – and the US seems to have slow-walked itself and several other developed economies into a recession. The US is now technically in a recession, after the Q2 numbers showed the US GDP shrunk by 0.9%, after a 1.6% decline in the first three months of 2022. There is some disagreement about whether this qualifies as a recession or not, but those are more subjective opinions and assumptions. The popular rule of thumb is two consecutive quarters of GDP decline is a recession. <cmsannotation type="cmsannotation" annotationid="What is the US Fed doing about it?" comment="subhead" text="What is the US Fed doing about it?">What is the US Fed doing about it?</cmsannotation> The US Fed’s rate hikes are one of the reasons behind the slowdown in the economic activity in the US – runaway inflation print of 9.1% in June knocking down a 40-year-old record forced the Fed’s hand. Controlling the inflation and bringing it down to 2% levels is the goal of the US Fed, and for now, a recession is not the primary worry of Powell &amp; co. So far, Powell has announced 225 basis point rate hikes, and experts suggest he has the stomach for 75-100 basis points more. Possibility of a ‘soft landing’ seems marginally low now A continuation of recession has increased the likelihood of a hard landing, <a href="https://www.businessinsider.in/stock-market/news/a-recession-could-arrive-by-year-end-as-it-looks-more-unlikely-the-fed-will-stick-a-soft-economic-landing-bofa-says/articleshow/93191882.cms">say experts at Bank of America</a>, with the window for a soft landing becoming increasingly small. In simple terms, a soft landing refers to economic slowdown without the country going into a recession. Since the US is technically in recession already, and Powell’s goal for now is to tame inflation, even the Fed’s flexible definition of a recession will likely not matter soon. <div type="Article" hostid="261" msid="93113216" title="House of cards: Goldman Sachs cuts MSCI China's earnings growth to zero" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="What is quantitative tightening and how much is the US Fed ready to do?" comment="subhead" text="What is quantitative tightening and how much is the US Fed ready to do?">What is quantitative tightening and how much is the US Fed ready to do?</cmsannotation> Quantitative tightening (QT) refers to a policy of pulling out liquidity from the markets by letting bonds and securities mature, instead of issuing new ones to replace them and maintaining liquidity in the markets. Essentially, the US Fed bought bonds against which investors were credited money. In return, investors would have to pay interest – since these interest rates were extremely low, this was basically cheap capital available in the market. Under QT, the US Fed sells those bonds back in the market and receives money in exchange, thereby reducing the available liquidity in the market. The US Fed has now begun its quantitative tightening program, by slowly and steadily increasing the amount of liquidity it sucks out of markets. Estimates peg the monthly pullback at $95 billion, totaling to nearly $2.5 trillion over the next few years. While this seems like a substantial amount, researchers suggest that even this will be “roughly equivalent” to 50 basis points worth rate hikes. <div type="Article" hostid="261" msid="92897064" title="Rupee at 80: Here’s how a falling Rupee could impact India's current account deficit" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="How does QT affect the common man?" comment="subhead" text="How does QT affect the common man?">How does QT affect the common man?</cmsannotation> While rate hikes are understood well, quantitative tightening still remains a relatively less known tool in the arsenal of central bankers around the world. There are several factors and lots of unknowns at play here, ranging from how the US Fed oils its QT policies between aggressive and passive, how the markets respond and absorb these bonds, and just how potent QT is as a monetary policy tool. The impact of QT is still in the nether of the unknown, and despite the best attempts by economists and central bankers around the world to understand it, its real-world impact depends on a lot of moving and uncontrollable factors. If the US Fed manages to engineer a soft landing with the combination of QT and rate hikes, the possibility for the rest of the world to also have a soft landing increases, and that is what the common man in India should hope for. Otherwise, <a href="https://economictimes.indiatimes.com/markets/expert-view/deeper-us-recession-spells-big-trouble-for-india-says-swaminathan-aiyar/articleshow/93129880.cms?from=mdr">according</a> to noted economist Swaminathan Iyer, a hard landing for the world would mean a hard landing for India, too, and that spells “deep trouble” for India. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/markets-trend-higher-as-fii-flows-reverse-and-top-companies-hit-52-week-high/articleshow/93202891.cms">Markets trend higher as FII flows reverse and top companies hit 52-week high</a> <a href="https://www.businessinsider.in/stock-market/news/russia-faces-economic-oblivion-as-western-sanctions-continue-to-eat-away-at-gdp-new-study-says/articleshow/93142544.cms">Russia faces 'economic oblivion' as Western sanctions continue to eat away at GDP, new study says</a> <a href="https://www.businessinsider.in/business/corporates/news/it-is-attrition-rates-and-not-the-wage-hikes-dampening-indian-it-cos-earnings/articleshow/93120202.cms">It is attrition rates and not the wage hikes dampening Indian IT cos earnings</a>

Explained: US Fed’s rate hikes, quantitative tightening and its impact on India

Like the British band, the new GDP data tells us the economy is in dire straits. Phil Rosen here, coming to you from Los Angeles. I'm not much for '70s rock n' roll, but I do keep an ear to government data — and yesterday's GDP print kicked up a lot of hubbub. This much I know for sure: GDP doesn't tell the whole story.There's a lot of moving parts. Let's break it down. If this was forwarded to you, <a href="https://www.businessinsider.com/subscription/newsletter/10-things-opening-bell">sign up here</a>. Download Insider's app <a href="https://www.insider.com/app">here.</a><a href="https://www.businessinsider.com/recession-outlook-gdp-economy-contraction-recovery-hiring-trends-consumer-spending-2022-7"></a>1. The technical definition of a recession is two consecutive quarters of GDP contraction, which the government <a href="https://www.businessinsider.com/recession-outlook-gdp-economy-contraction-recovery-hiring-trends-consumer-spending-2022-7">just confirmed Thursday</a> — the economy shrank by 0.9% last quarter after contracting 1.6% in the first quarter.Back-to-back declines like we just saw are widely regarded as <a href="https://www.businessinsider.com/recession-outlook-gdp-economy-contraction-recovery-hiring-trends-consumer-spending-2022-7">indicators of a recession</a>, but there's more at play.First, the US economy is not officially in a recession until the National Bureau of Economic Research says so — and they haven't yet. In Thursday comments, <a href="https://markets.businessinsider.com/news/stocks/economy-recession-watch-janet-yellen-strong-jobs-market-negative-gdp-2022-7">Janet Yellen pointed to the strong job market</a> as reason to believe the US economy isn't in a broad slowdown. There's been a flurry of <a href="https://www.businessinsider.com/recession-outlook-gdp-economy-contraction-recovery-hiring-trends-consumer-spending-2022-7">payroll additions</a> and unemployment remains at <a href="https://www.businessinsider.com/recession-outlook-gdp-economy-contraction-recovery-hiring-trends-consumer-spending-2022-7">reasonable levels</a>. The country is on track to surpass its <a href="https://www.businessinsider.com/recession-outlook-gdp-economy-contraction-recovery-hiring-trends-consumer-spending-2022-7">pre-COVID payroll count</a> this August, 30 months after the virus struck. The same feat took 76 months after 2008, and <a href="https://www.businessinsider.com/recession-outlook-gdp-economy-contraction-recovery-hiring-trends-consumer-spending-2022-7">48 months after 2001</a>. And all the while Americans have been emptying their wallets. We spent <a href="https://www.businessinsider.com/recession-outlook-gdp-economy-contraction-recovery-hiring-trends-consumer-spending-2022-7">$681 billion at retailers and restaurants</a> last month, and even adjusted for inflation, that's a healthy clip.Even though the GDP just shrank in the <a href="https://www.businessinsider.com/recession-outlook-gdp-economy-contraction-recovery-hiring-trends-consumer-spending-2022-7">last three months</a>, spending was still up. So — are we in a recession? Yes, according to one measure. <a href="https://www.businessinsider.com/recession-outlook-gdp-economy-contraction-recovery-hiring-trends-consumer-spending-2022-7">No, when you tie in all measures</a>. You can also catch one of the editors of this newsletter, Hallam Bullock, on <a href="https://share.spooler.fm/ZVvWpO/VlgPND.html">The Refresh from Insider</a> discussing the big recession question. In other news:<a href="https://markets.businessinsider.com/news/bonds/housing-market-crash-sinking-buyer-demand-mortgage-rate-freddie-mac-2022-7"></a><div type="image" title="For sale signs stand on a medium strip in a housing development" height="512" width="1024" msid="93211884" hostid="261" sizebytes="85644"></div>2. US stock futures rise early Friday, following a <a href="https://www.businessinsider.com/apple-tim-cook-iphone-mac-challenging-environment-sales-beat-report-2022-7?r=US&amp;IR=T">positive earnings report from Apple</a>. The company advanced more than 4% after hours. Meanwhile, the Japanese yen is on track for its <a href="https://markets.businessinsider.com/news/currencies/dollar-dominance-japan-yen-monthly-gain-foreign-exchange-federal-reserve-022-7">largest monthly gain against the dollar</a> in two years. <a href="https://markets.businessinsider.com/news/stocks/stock-market-today-us-futures-amazon-apple-fed-recession-inflation-2022-7">Here are the latest market moves.</a>3. On the docket: ExxonMobil Corp., Procter &amp; Gamble Co., AstraZeneca PLC, all <a href="https://markets.businessinsider.com/earnings-calendar">reporting</a>. 4. This batch of growth stocks are cheaper than they've been in years. And Goldman Sachs said they will be able to weather a series of aggressive Fed rate hikes. <a href="https://www.businessinsider.com/investing-stock-picks-to-buy-fed-interest-rate-goldman-sachs-2022-7">See the list of 18 names here.</a>5. The gold market should see slower jewelry demand through the end of 2022. That's according to the World Gold Council, which pointed to a slow recovery in China and import duties in India. <a href="https://markets.businessinsider.com/news/commodities/gold-market-outlook-jewelry-demand-weaken-2022-world-gold-council-2022-7">Here's what you want to know.</a>6. Amazon stock surged 12% after hours Thursday. The Jeff Bezos-led retail giant reported a fall in quarterly operating income, but the company pointed to progress in the efficiency of its fulfillment network. <a href="https://www.businessinsider.com/amazon-earnings-slumps-but-is-getting-some-costs-under-control-2022-7?r=US&amp;IR=T">Here are some key takeaways.</a>7. Freddie Mac noted that housing market demand continues to tumble even as mortgage rates dip. Sales activity is slumping since the market has not yet normalized, the groups' chief economist said. <a href="https://markets.businessinsider.com/news/bonds/housing-market-crash-sinking-buyer-demand-mortgage-rate-freddie-mac-2022-7">The 30-year fixed rate fell from 5.54% to 5.30% for the week ending Thursday.</a>8. Real estate investors on the sidelines said they are waiting for the right moment to jump back into the market. At this point in the current cycle, some property investors are watching the landscape change from a seller's market to one that favors buyers — <a href="https://www.businessinsider.com/investing-in-real-estate-mortgage-interest-rates-buying-property-2022-6">and some of them are sitting on a pile of cash waiting to buy.</a>9. A former BlackRock investment stock chief is monitoring specific signals to identify a bottom in stocks. Bob Doll said these three signals make him believe markets haven't bottomed yet. <a href="https://www.businessinsider.com/stocks-picks-recession-uncertainty-market-bottom-doll-crossmark-blackrock-2022-7">But he's betting on these five stocks amid the "murky" economic environment. </a><a href="https://www.businessinsider.com/gas-prices-falling-inflation-outlook-energy-crude-oil-gasoline-costs-2022-7"></a><div type="image" title="gas prices" height="1040" width="1240" msid="93211886" hostid="261" sizebytes="36054"></div>10. More than 55,000 gas stations across 17 states already have gas prices below $4, GasBuddy data shows. And prices at the pump are still slipping further after reaching record highs earlier this summer. <a href="https://www.businessinsider.com/gas-prices-falling-inflation-outlook-energy-crude-oil-gasoline-costs-2022-7">On average, the whole country could see prices fall below $4 by mid-August.</a>Keep up with the latest markets news throughout your day by checking out <a href="https://link.chtbl.com/therefresh">The Refresh from Insider</a>, a dynamic audio news brief from the Insider newsroom. <a href="https://link.chtbl.com/therefresh">Listen here.</a>Sign up now: Ready for the next step? Whether you feel the need to get that promotion, pivot industries or simply just want to shake things up, Morning Brew offers a career Accelerator to get you where you want to go. <a href="https://education.morningbrew.com/accelerators?utm_campaign=MBA-0922&amp;utm_source=insider&amp;utm_medium=newsletter">Get all the details here.</a>Curated by Phil Rosen in New York. (Feedback or tips? Email <a href="mailto:prosen@insider.com">prosen@insider.com</a> or tweet <a href="https://twitter.com/philrosenn">@philrosenn</a>).Edited by Jason Ma in Los Angeles and Hallam Bullock (<a href="https://twitter.com/hallam_bullock">@hallam_bullock</a>) in London.

The US is in a technical recession, but other data tells a different story. Here's what to know.

<ul class="summary-list"><li>Executives at Davos weighed in on the likelihood and severity of a recession in 2023. </li><li>Most expect the US to have a shallow recession, but Europe and elsewhere could be hit harder.</li></ul>Executives gathered at Davos this week, with the most turbulent economic period since the global financial crisis near the top of their agendas.Insider spoke with C-suite members from groups including McKinsey, KPMG, EY, and Cisco about their outlook for the economy in 2023, and how it might affect the labor market and their businesses. <h2>Tracy Francis, McKinsey chief marketing officer</h2>"The scenario is complicated. We have an energy crisis, we have inflation, we have the specter of decoupling … but I think one of the things we are talking to clients a lot about is not talking ourselves into a recession. "An event like this has such a power to influence the level of optimism or otherwise that is out there. While we don't want to be Pollyanna about macro-economic trends, I do think there is bright sports around the world. India, Indonesia, all those kind of things that are going on that we are encouraging clients to think about, and like I said not talking ourselves into a recession."<h2>Paul Knopp, KPMG CEO</h2>"The potential recession that might occur is largely central bank-induced. I think what's really going to be worth watching is how quickly will they turn, because a central-bank-induced recession in theory would be more easily unwound than a recession that is due to fundamental things that are wrong with society and the economy."My personal view is I think that if we have a recession in the US, that there's a really good chance that could be very short and shallow. If there is one, the global picture is more complicated."<h2>Rima Qureshi, Verizon chief strategy officer</h2>"I think regardless of whether it is a recession, whether we are dealing with the inflation and how long it lasts, I think there will be a long period of uncertainty, whether it be geopolitical, economic, environmental. I think there's going to be a lot of uncertainty. "And that means it's time to really think about hunkering down and focusing on what's important, and really focusing on the fundamentals, which is what we are doing within the company."<h2>Fran Katsoudas, Cisco chief people, policy, and purpose officer</h2>"Some of the layoffs are more about cutting costs. And we've heard companies talk about the fact that perhaps during the pandemic, they over-hired. And so those layoffs are absolutely related to economic stability and growth."You have other layoffs that are actually about the transformation of companies. And I think in that situation, it is more of a skills discussion, and how do we ensure that we have what we need, as we move forward?"<h2>Andy Baldwin, EY global managing partner </h2>"The consensus view is that we appear to be moving into a recession. But I think it's important to qualify that … I think this recession is asymmetric. So yeah, we've got clearly parts of the world that are growing strongly and I think are going to continue to grow strongly, even when of the possible future recession."My own personal view is, I think we will likely see a technical recession, two quarters of negative GDP effectively, in parts of the world, most likely Europe, perhaps the US, but it doesn't feel like this is going to be a severe recession."<h2>Peggy Johnson, Magic Leap CEO </h2>"I think the economy will sustain at the level that it's at now. I don't know that it's going to get much worse, but I don't know that it's going to get much better into 2023. That's kind of my feeling."<h2>Jeff Maggioncalda, Coursera CEO</h2>"If you just read our earnings announcement and look at our results, we have seen a slowdown that occurred during 2022. Will that get worse or will that get better in 2023? We're not really super positive. Our business's three segments, historically, have been counter-cyclical."When unemployment goes up, people will get a degree because they want to be more qualified to get a more scarce job. When unemployment goes down, people are like 'I don't want to get a degree, I want to make some money'. So I think that segment will be counter-cyclical. We will do better if there's a recession – at least if there's a recession with unemployment."<h2>Becky Frankiewicz, ManpowerGroup president </h2>"There's a lot more optimism now, particularly in the labor market. So you saw the eurozone unemployment reached a historical low, the US labor market is on a 50-year low for unemployment. And so the labor markets are defying the odds of economic principles. "No one's predicting a super robust economy, but more 1% GDP growth versus negative one or 2%. And I think the labor market will probably have a very shallow impact. I think there will be impact more than we're seeing now. But I think it'll be a shallow impact."

Here's what top executives at Davos are saying about a recession. Many can see silver linings.

<ul class="summary-list"><li>Oil prices jumped more than 2% early Thursday as a rebound in fuel demand tamed recession fears. </li><li>West Texas Intermediate gained as much as 2.38%, while Brent, the international benchmark, moved roughly 2.13% higher.</li></ul>Oil prices rallied Thursday, continuing the the rise from Wednesday, as a rebound in fuel demand helped ease recession concerns among investors. West Texas Intermediate rose as much as 2.38% to hover above $99, while Brent crude, the international benchmark, moved as much as 2.13% higher to $108.38.But prices pared gains slightly after the Commerce Department reported second-quarter GDP contracted by 0.9% to mark a second consecutive quarter of declines and a technical recession. Meanwhile, US gasoline demand jumped 8.5% last week from the prior week, according to data from the Energy Information Administration on Wednesday.US oil inventories fell by 4.5 million barrels to 422.1 million barrels last week, also helping crude prices, as <a href="https://markets.businessinsider.com/news/commodities/us-crude-oil-exports-new-record-high-russia-supply-2022-7">exports jumped 21% to hit a record high</a>. Now, markets will be watching for <a href="https://markets.businessinsider.com/news/commodities/russian-oil-price-cap-g7-china-india-minimize-costs-2022-7">G7 leaders to impose a price cap</a> on Russian barrels later this year. For the new sanction to be effective, however, top buyers like China and India must be on board.

Oil prices rally as a rise in fuel demand tames recession concerns

<ul><li><keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword>’s technology proficiency has improved by at least 6% this year as compared to last year.</li><li>West Bengal and Andhra Pradesh have the highest number of <keyword id="4599666" type="General" weightage="20" keywordseo="skilled-people" source="Orion">skilled people</keyword> proficient in technology and business, as per <keyword id="14198582" type="General" weightage="20" keywordseo="Coursera-report" source="Orion">Coursera report</keyword>.</li><li>Overall, India’s ranking has slipped by 4 positions, from 64th to 68th spot globally in terms of <keyword id="14198580" type="General" weightage="20" keywordseo="digital-skill-proficiency" source="Orion">digital skill proficiency</keyword>.</li></ul>India has shown a massive improvement in <keyword id="1458566" type="General" weightage="20" keywordseo="digital-skills" source="Orion">digital skills</keyword> proficiency this year as compared to last year. In fact, there is an increase in India’s technology proficiency levels from 38% in 2021 to 46% 2022, as per Global Skills Report (GSR) 2022. West Bengal and Andhra Pradesh have the highest number of skilled people proficient in technology and business. West Bengal outpaced Karnataka as it has the most people who are proficient in more than 10 skills — leadership and management, human resources, cloud computing, computer programming, ML, and data analysis, according to the report. On the other hand, Andhra Pradesh has a robust pool of skilled workers with proficiency in technical skills like security engineering, operating systems, and computer networking. “Industry reports estimate that 28 million new technology jobs will be created in India by 2025. This year’s GSR signals a significant need for Indian learners to bridge the critical skills gap, especially in data science, to ensure this digital potential does not turn into a lost opportunity,” said Raghav Gupta, managing director, India and APAC, Coursera. The report has drawn data from 100 million learners in more than 100 countries who have used Coursera to develop a new skill during the past year. <cmsannotation type="cmsannotation" annotationid="Indian learners are focusing more on financial skills but lagging in data science" comment="subhead" text="Indian learners are focusing more on financial skills but lagging in data science">Indian learners are focusing more on financial skills but lagging in data science</cmsannotation> The report further highlights that more and more Indians are showing their keen interest in investment management and blockchain technology. However, India continues to lack in data science skills which dipped from 38% in 2021 to 26% in 2022. “The government, along with online learning platforms, fintechs and experts in the financial sector, have been emphasizing the need for new-age financial skills. According to the GSR, learners in India are over-indexed in skills such as investment management, blockchain and risk management,” says the report. India’s rank in specialized data science skills slipped by 12 positions and workforce development leaders must find ways to improve skill levels in data science. With a data science proficiency level of 26%, India’s companies may struggle to find the talent to fill those roles without more training. Education leaders should invest more resources in these areas, the report says. The number of open data science jobs in the country rose 47.1% between 2020 and 2021. According to the Coursera report, Indian learners in southern states perform better than those in states in the north. Overall, India’s ranking has slipped by four positions, from 64th to 68th spot globally in terms of digital skill proficiency. In Asia, India stands at the 19th position. “Strong industry-academia-government collaboration that focuses on the rapid deployment of high-quality digital and human skills training would be key to ensuring that the Indian workforce remains resilient and competitive amid rapid technological transformation,” Gupta added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/enterprise/news/tcs-infosys-and-hcl-tech-can-do-better-in-a-shallow-recession-than-a-slowdown/articleshow/92214156.cms">TCS, Infosys and HCL Tech can do better in a shallow recession than a slowdown</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/ipl-value-jumps-3x-to-48000-crore-heres-how-much-mukesh-ambani-disney-and-times-internet-are-spending/articleshow/92209726.cms">IPL value jumps 3x to ₹48,000 crore – here's how much Mukesh Ambani, Disney and Times Internet are spending</a>

West Bengal and Andhra Pradesh have the most proficient techies in India

Union Minister for Finance <keyword id="129243" type="General" weightage="100" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> stated on Wednesday that for industries which are moving out from China and <keyword id="28249" type="General" weightage="80" keywordseo="europe" source="Orion">Europe</keyword>, <keyword id="6354780" type="General" weightage="80" keywordseo="karnataka" source="Orion">Karnataka</keyword> is the best place for investments. Sitharaman was delivering her keynote address at the inaugural session of the three-day Global Investors' Meet (GIM). "They are moving out to other destinations which are offering more than just tax incentives. Karnataka is the major job generator in the country. While contributing 8.8 per cent to the national GDP, whilst its population is just five per cent of the total national population, 10 per cent of all formal jobs are created here," she explained. "I wish to assure all the investors that the state is absolutely very nimble-footed, that the policies are kept abreast of the global developments at a time when all of you are trying to move in. Here is a state which has showcased itself for its previous achievements, and assuring that even now and for the next 25 years during <keyword id="13076856" type="General" weightage="80" keywordseo="amrit-kal" source="Orion">Amrit Kal</keyword>, Karnataka will be an essential foundation for many investors to come into <keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword>, from here to the entire globe," the minister stated. "I would like to draw also from what is evolving around India globally. All over there is definitely a sense of uncertainty. Immense amounts of challenges, that is not just for India, every country in the world feels the headwinds are very strong elements of the feeling of certainty completely absent, even as we all started talking about China plus one," she stated. "When you wanted to diversify the value chains, or when you wanted to ensure that there is more than one source for the raw materials or for the intermediary products that you will produce. You had a global situation of war. The war, especially from countries which sourced raw materials whether it is fuel, fertilizer or food related. So, you have these countries at war which are causing insecurity to the globe, particularly in the area of fuel and food. "As a result, the countries are readjusting themselves to source these materials from different parts of the world. That has had a bearing on industries, the economy, trade and global trade as well. The results of these disruptions were seen in large economies which were essential sources of raw materials for intermediary products, which were markets to emerging markets... are all going through huge recessionary doubts. "They may technically be at the threshold of recession, but are not really out of suspense or shock on whether they will be getting into further rigid recession in the future... With all these uncertainties, I am here to put it before you because of the careful planning, targeted facilitation, and fiscal prudence, the Prime Minister led from the front and made sure that the Indian economy will not be severely threatened by these developments outside. "As a result of this, between 2020 and today, we seem to have come out to a situation where the challenges continue, and the new challenges are also building up. But, India remains an island of calm. We will have our own challenges but not as other countries as they think India would be threatened by. "In a way I have been hearing both during my Washington visit, also through visitors at New Delhi that India seems to be an oasis of calm and the challenges are carefully firewalled and that our economy now is very attractive for investors." SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/cbdc-trial-a-landmark-moment-in-the-history-of-money-shaktikanta-das/articleshow/95250548.cms">CBDC trial a landmark moment in the history of money: Shaktikanta Das</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/rupee-has-behaved-in-an-orderly-manner-says-rbi-governor/articleshow/95251595.cms">Rupee has behaved in an orderly manner, says RBI Governor</a>

With challenges carefully firewalled, Indian economy now is very attractive for investors: FM

New Delhi, <keyword id="6416579" type="UNKNOWN" weightage="20" keywordseo="Retail-Investors">Retail investors</keyword> in India directly bought stocks to the tune of $ 12 billion over January-September as the post-Covid period has seen rising retail inflows similar to the global trend. According to a report by foreign brokerage, Jefferies, the post-Covid period in India, similar to the global trend, has seen rising retail participation. The shareholding of small retailers has risen by 0.6% points (<keyword id="6678164" type="COMPANY" weightage="20" keywordseo="ppt">ppt</keyword>) over December 2019 to September 2020 while that for large retail has also gone up by 0.1 ppt during the period. MF's holding had declined by 0.1 ppt during the same. "Indeed, we estimate that retail investors direct buying in the market had witnessed <keyword id="2942681" type="PERSON" weightage="20" keywordseo="net-inflows">net inflows</keyword> of $12 billion over January-September 2020", Jefferies said. Even as domestic equity MFs see an outflow, domestic investors continue to add equity market exposure directly. Overall market ownership has jumped by 50bps during calendar year 2020. The report said that inflows into Indian equity funds has turned negative for the past six months. This is the first such reversal in the past six years. "Our analysis, however, shows that retail investors are choosing to go direct v/s. through mutual funds. The cumulative ownership of MFs and retail investors continues to rise. With the market breadth now widening, MF outperformance should return drawing the investors back in. We continue to remain optimistic on the overall retail participation in the market", it said. Explaining the reason for reversal in direction of flows from mutual funds, the report said it could be the change in direction of discretionary flows as investors possibly chased higher returns in individual stocks in the sharp market rally post Covid lows. The same is visible in SIP flows (monthly, automatic flows) where net inflows have declined 15% since their March 2020 peak, but are still substantially <keyword id="6439681" type="UNKNOWN" weightage="20" keywordseo="positive">positive</keyword>, at $ one billion. The MFs had tended to underperform in the early part of the rally as the high concentration nature of the same (select large caps) had made it tough for MF's given concentration rules. The report said that the amount of net worth held in equities by Indian households is in low single digits (4% as of December'20). However, there is a case for both a) financialisation of savings and within that b) of rising allocation to equities with bank deposits, for example, already forming a high share of the household net-worth at 16%. Nearly two-thirds of Indian savings continued to be deployed in physical assets (property and gold) and structurally, the case remains for a gradual shift of the same to financial savings. For an economy which is in a technical recession, Indian markets are doing extraordinarily well and now even the macro numbers led by <keyword id="6390251" type="PERSON" weightage="20" keywordseo="goods">Goods</keyword> and Services Tax (GST) collections are giving new evidence of a strong recovery. To add to the bullish fervour, Mumbai has seen record upswing in real estate transactions in December. According to foreign brokerage, Jefferies, "We maintain our positive stance on cyclical recovery in India, thanks to growing evidence that the housing cycle has bottomed out and is now set for a multi-year upswing". Now a new trigger is waiting to be added to the Indian economy's growth move. Jefferies says that a housing cycle likely recovery is taking hold. "We estimate that the potential upturn in housing can positively impact the broader GDP growth by 1-1.5ppts every year for the next five years -- eventually driving the long-awaited capex cycle", it said. It said the buyer sentiment is improving and inventory is down 20%. "Our proprietary housing affordability index is at the lowest (hence the best) level in the past two decades, and the numbers coincide with the bottom of the previous property cycle in 2003/04. The affordability has been attractive for some time and the only missing part has been buyer sentiment, which is now falling in place. The unsold inventory is down 20% from peak and we project that as sales accelerate, inventory would start hitting price gaining levels by end-2021," the report said. The Indian housing market sales volumes topped in 2013 and even by 2019 (pre-Covid) were 40% below peak, Jefferies said in the report. Several disruptions, such as demonetization in 2016, rollout of Real Estate Regulatory Act (RERA) in 2017 and the credit crunch of 2018-19, are now in the base. Post Covid, recovery has strengthened, as evidenced by an improvement in property sales of listed developers (90% of pre-Covid in September'20 quarter), industry-wide sales as per property consultants (85-90 <keyword id="45705" type="PERSON" weightage="20" keywordseo="Per-Cent">per cent</keyword> of pre-Covid by December'20 quarter) and recent property registration data showing growth in transactions year on year. "Given the breadth of the volume pick-up (across segments and cities), we believe that a longer cyclical upturn is now underway. We believe that sales in 2021 could exceed the 2018-19 levels by 10 per cent, nearly doubling YoY, as the property cycle gets underway", the report added. SEE ALSO: <a href="https://www.businessinsider.in/science/health/news/here-are-the-top-10-virus-and-diseases-that-could-cause-the-next-pandemic-if-they-arent-stopped-in-their-tracks/slidelist/80116787.cms">Diseases deadlier than COVID-19 are already in the making — here are the top ten candidates that could cause the next pandemic</a> <a href="https://www.businessinsider.in/stock-market/news/analysts-explain-why-burger-king-and-mrs-bectors-shares-fell-with-a-thud-and-what-to-do-now/articleshow/80120941.cms">Analysts explain why Burger King and Mrs Bector’s shares fell with a thud — and what to do now</a> <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-bajaj-finance-hdfc-bank-beml-indigo-godrej-consumer-hero-moto-and-others/articleshow/80126217.cms">Top stocks to watch — Bajaj Finance, HDFC Bank, BEML, IndiGo, Godrej Consumer, Hero Moto, and others</a> <a href="https://www.businessinsider.in/business/startups/news/boat-raises-over-100-million-from-warburg-pincus-analysts-expect-the-headphone-brand-to-double-its-revenue-to-10-billion-this-financial-year/articleshow/80126200.cms">boAt raises over $100 million from Warburg Pincus — analysts expect the headphone brand to double its revenue to ₹10 billion this financial year</a>

India's retail investors bought stocks worth $12 billion between January-September in 2020

<ul><li>This case study decodes how Netflix’s <keyword id="8451401" type="General" weightage="20" keywordseo="kota-factory" source="Orion">Kota Factory</keyword> created excitement around its new season launch through a 360-marketing campaign.</li><li>Netflix decided to leverage Kota Factory’s central character, <keyword id="10137138" type="General" weightage="20" keywordseo="jeetu-bhaiya" source="Orion">Jeetu Bhaiya</keyword>’s fandom, whose philosophy, dialogues and emotions had generated massive mass appeal during season 1.</li><li>The Title Marketing for Kota Factory Season 2 was done by Netflix India in collaboration with <keyword id="9524608" type="General" weightage="20" keywordseo="the-rabbit-hole" source="Orion">The Rabbit Hole</keyword> Agency (<keyword id="9524607" type="General" weightage="20" keywordseo="zoo-media" source="Orion">Zoo Media</keyword>).</li></ul>With characters that resonated with the audience and real life-like conversations that are permanently etched into the minds of viewers, Kota Factory’s Season 2 was one of the most widely anticipated shows on Netflix India. Even those who might have not seen the show are now familiar with ‘Jeetu Bhaiya’ and his worldly wisdom, thanks to the title marketing campaign driven by Netflix India, hand in hand with The Rabbit Hole Agency (Zoo Media). <cmsannotation type="cmsannotation" annotationid="Insight" text="Insight">Insight</cmsannotation> i) The promotions of Kota Factory 2 was based on the show’s central character ‘Jeetu Bhaiya’ whose philosophy, dialogues and emotions had generated massive mass appeal. He represented that one mentor, teacher, at times dependable friend, everyone needs in life, to help answer life’s questions beyond academics. ii) Jeetu Bhaiya’s popular philosophies were interpreted as ‘Out of Syllabus’ making it the theme for the campaign i.e. most of life’s lessons are learned from experiences that are out of the text books and the classroom. That life truly is much more than just academic achievements or failures. This insight was used in all assets for the title marketing promotions of the series. <cmsannotation type="cmsannotation" annotationid="Innovation" text="Innovation">Innovation</cmsannotation> The title marketing of Kota Factory - 2 caught the attention of many, not only for the engaging video content but because of the seamless way in which the insights were adapted and implemented to suit various platforms and events including Youtube, Quora, IPL Ads, Twitter and Print Media. <ol><li>Teaser Phase</li><li>Jeetu Is Back - Marketing Launch with Youtube Pre-Rolls</li></ol>Kota Factory’s first season ended with the audience’s favourite character ‘Jeetu Bhaiya’ gone missing, leaving audiences restless, curious and wanting Jeetu Bhaiya back. The team leveraged this sentiment and launched the promotions of Season 2 with Jeetu Bhaiya addressing the audience’s most asked question “Kota Factory ka season 2 kab ayega?” in an interesting YouTube pre-roll. <a href="https://www.youtube.com/watch?v=qVMHORCiGKY"></a> 2. #OutOfSyllabus - Real Talk on Instagram with Real Engineers For Engineer’s Day, the team collaborated with engineers who had transitioned to become influencers to share real-life examples of the lessons that they have learned #OutOfSyllabus. These meticulously selected influencers such as <a href="https://www.instagram.com/p/CT1WM3cAEcv/">Mythpat</a>, <a href="https://www.instagram.com/p/CT1cOZGsJNe/">R J Abhinav</a>, <a href="https://www.instagram.com/p/CT1dMbQohuu/">Tanzeel Khan</a>, <a href="https://www.instagram.com/p/CT10tN3lPSR/">Rahul Dua</a> and 30 more creators shared black-n-white selfies of themselves from their engineering days, with a caption that spoke of their experiences while studying engineering as well as certain insights that helped them reach where they are today. <a href="https://www.instagram.com/p/CT1rkvEK4e6/"></a> <a href="https://www.instagram.com/p/CT1rkvEK4e6/">Vishnu Kaushal</a>: This picture is from my graduation, I’ve never really talked about my college much, so here goes that- I happen to be a computer science engineer yet the only thing I know about computers is video editing. Even though by 2nd year I pretty much hated what I was studying, there’s something about the whole experience of being in college, making new friends, taking up new challenges that really shapes the person you’re gonna become. Take my example, I practically did everything other than what I was supposed to do. Sang a terrible song on guitar the first day, joined the ‘modelling’ club (which was a big flex in college, well but, I was still single throughout out so…), joined a not-for-profit organisation that helped me meet hundreds of young kids like me passionate to change the world. I think the thing I did learn was how incredibly unique people &amp; their stories are, and I saw myself become a more compassionate person. Between these stories, I found a little bit of who I am &amp; who I might want to be I think that’s what I took from my college. No wonder engineers end up working in every department other than their technical department. Here’s to having a love-hate relationship to your college 🤝🌝 Wishing all the engineers a Happy Engineers Day! <a href="https://www.instagram.com/p/CT17QxDPHn1/"></a> <a href="https://www.instagram.com/p/CT17QxDPHn1/">Tanya Khanjijow</a>: I vividly remember when I was preparing for engineering entrance exams in school, I would sit in the corner of my class even during recess trying to prepare for mock tests or for practising problems! 😅 Ekdum loner Wali life ho gayi thi because I had to give up on randomly hanging out with friends or skipping family functions, movies, tv shows etc. When I finally secured a place in DTU, I tasted the contentment of achievement for the first time ever in my life! And it was a wonderful feeling. Mujhe laga, iske baad college life toh bahut straightforward hogi. Little did I know that it was going to be a big life lesson in itself. Last minute studies se le ke, group discussions, from finding my love for travel to saving up every penny to be able to travel or struggling to find like-minded friends. I’m really grateful that I found to travel in those days and backpacking quickly became my love. I would again skip every possible occasion to only save my pocket money for travel. Thankfully I also found some friends who taught me a little about photography. But fir bhi somehow I managed to ace last-minute syllabus coverage before exams &amp; manage attendance (haha!) to continue travelling. Kaafi kuch Sikhaya hai college life ne. Good and bad moments alike! So, the day I graduated, I thought it was going to be the end of an era or the beginning of something new, little did I know that the journey itself was everything I needed, to be where I am today. What I learned from surviving four years of engineering college, is that zindagi me har type ka lesson zaroori hai. And sometimes you don’t just learn subjects when you’re a student, but leave college with some real life lessons. And if you’re lucky, even your passion! Wishing all the engineers a Happy Engineers Day! Kota Factory Season 2 arriving on 24th September, only on Netflix. 3. Netflix’s Kota Factory takes on IPL 2021 With India watching the IPL, the team had to ensure audience awareness was created. In an industry first, Kota Factory was advertised on Hotstar during IPL 2021 wherein viewers watched the show’s protagonists chalk out fun analogies and drawing a parallel between IPL and IIT entrance exam preparations in 2 brand films. <a href="https://www.youtube.com/watch?v=pd1VlQans78"></a> <a href="https://www.youtube.com/watch?v=hPqHHFlKMxo"></a> Trending at India #4 on Twitter with Brand and Creator Banter - #JeetuBhaiyaOP <a href="https://twitter.com/NetflixIndia/status/1440626479776235531"></a> Ahead of the release, the team encouraged Twitterati to seek life advice from Jeetu Bhaiya, fondly dubbed as the ‘OG’ teacher by fans of the show. Various influencers such as Aishwarya Mohanraj, Srishti Shukla, Sagarcasm and brands such as Tinder, Spotify, Dream 11, Myntra organically participated in the activity and asked questions with the hashtag #JeetuBhaiyaOP. These questions were met with responses in the character’s quintessential style, which had Twitter buzzing and the #JeetuBhaiyaOP trending at #4. <a href="https://twitter.com/AishwaryaMrj/status/1440639509347979264?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1440639509347979264%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.news18.com%2Fnews%2Fbuzz%2Fwhat-life-advice-would-you-want-from-kota-factorys-jeetu-bhaiya-netflix-wants-to-know-4236539.html"></a><a href="https://twitter.com/dusky_drone/status/1440640181342597140?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1440640181342597140%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.news18.com%2Fnews%2Fbuzz%2Fwhat-life-advice-would-you-want-from-kota-factorys-jeetu-bhaiya-netflix-wants-to-know-4236539.html"></a> <a href="https://www.instagram.com/p/CUaIp52B8Ar/"></a> <a href="https://www.instagram.com/p/CUaIp52B8Ar/"></a> 5. Jeetu Bhaiya even took over Quora! While most marketers may not consider Quora as the go-to destination for a film marketing campaign, the promotions of Kota Factory leveraged the knowledge-sharing platform in the most unique format, making it one of the biggest and most engaging highlights of the strategy. Using Quora’s feature of “Promoted Answers”, the team launched a Netflix India page, specifically for the promotion of Kota Factory 2, to connect with the students appearing for IIT exams. Known for being one of the most difficult entrance tests, Kota Factory’s promotions addressed the issues, challenges, and doubts faced by students in the style of various characters from the show.. Some answers were also dialogues from the show. In a short span of time, Netflix’s Quora page had over 15 million answer views, making it the ‘Most Viewed Writer’ across all IIT and JEE preparation related Topics on Quora!. The quirky responses written, drove immense engagement. <a href="https://www.quora.com/profile/Netflix-India%5C"></a> <a href="https://www.quora.com/profile/Netflix-India"></a> <a href="https://www.quora.com/profile/Netflix-India"></a> <cmsannotation type="cmsannotation" annotationid="Jeetu Bhaiya Ke Funde on Youtube" text="Jeetu Bhaiya Ke Funde on Youtube">Jeetu Bhaiya Ke Funde on Youtube</cmsannotation> Since Jeetu Bhaiya is known for his out-of-the-box teaching methods and efforts to include real-life instances to drive home his point, the team created content for YouTube highlighting this facet of the character. The video reached over 2.47 million views a day prior to the launch and left the viewers intrigued, moved and curious to see what season 2 had in store for them. <a href="https://www.youtube.com/watch?v=7tJSGFx4K4c"></a> B) Release Day Truth Bombs with Every Coaching Class Ever on Youtube! Coaching classes in India are a subculture in itself. The teams created a satirical sketch called “Every Coaching Class Ever” representing the cons some coaching classes tend to pull on naive parents and children except for Jeetu Bhaiya’s of course. The video earned 2.6 million views on YouTube. <a href="https://www.youtube.com/watch?v=_XxvfHwI5y0"></a> Taking a dig at Coaching Classes with Print Media Through the years we’ve seen ugly number games on the front page of the newspaper where coaching classes parade students based on their ranks. People need to be reminded that a child is not a success meter, they are much more than that. Taking a cue from, ‘Out of Syllabus’, this coaching institute ad didn’t talk about the successful IIT ranks, but successful lessons learnt ‘Out of Syllabus’. C) Post Launch Promotions Charm Battles (Mayur V/S Ranjan FTW) This #CharmBattle was every nerd’s delight. This fun format saw Mayur More and Ranjan Raj battle it out to impress Ahsaas Channa. With pick up lines testing one’s math and physics to see which actors had the most ‘chemistry’. This fun video proved that engineers can be charming too in their own geeky way. The video has garnered over 1.54 million views. <a href="https://www.youtube.com/watch?v=pEk7-0R_ygw"></a> Mess Food with OKTested Popular Opinion is that Mess food is unanimously despised by everyone whereas on the other hand, “Maa ke haath ka khaana” is unanimously celebrated. In Kota Factory - 2, as mess food and home food is highlighted and talked about in the episodes, the team collaborated with the hosts of Scoop Whoop’s Ok Tested to taste 5-6 dishes and guess whether the dishes were prepared in a college mess or by moms. The video garnered 312K views. <a href="https://www.youtube.com/watch?v=IzbgJhR2Ppc"></a> <cmsannotation type="cmsannotation" annotationid="Results:" text="Results:">Results:</cmsannotation> <ul><li>The #OutOfSyllabus activation on Instagram with 30 leading influencers generated over 130K likes and over 6000 comments. </li><li>#JeetuBhaiyaOP on Twitter was not only trending at #4 but also resulted in 1.6M impressions and a total engagement of 20,667. </li><li>The activation on Quora saw over 19 million answer views, making the Netflix India page, the ‘Most Viewed Writer’ across most of the popular IIT and JEE preparation related Topics on the platform </li><li>YouTube Branded Video Content <ul><li>‘Jeetu Bhaiya Ke Fundey’ garnered over 2.5 million views</li><li>‘Every Coaching Class Ever’ garnered over 2.7 million views </li><li>‘The Charm Battles’ resulted in over 1.6 million views</li><li>‘Can You Identify The Mess Food? | Ok Tested’ resulted in 450K views </li></ul></li><li>The Print Ad gained over 600 organic comments and shares over Linkedin amongst consumers and stalwarts of the advertising industry.</li></ul>

Case study: How Netflix India created buzz around Kota Factory’s season 2 launch by leveraging Jeetu Bhaiya’s fanbase

<ul><li>The Reserve Bank of India’s (RBI) Monetary Policy Meeting (MPC) is currently underway and it has some tough decisions to make.</li><li>It needs to decide between meeting its inflation-targeting mandate and making sure there’s still liquidity in the market. </li><li>The RBI also needs to figure out where another moratorium or a one-time restructuring of loans across all sectors will be better for businesses.</li></ul>The Reserve Bank of India (RBI) is set to announce its policy rate decision tomorrow, and this time around, the situation is more uncertain than usual. From meeting its inflation mandate to keeping money circulating in the economy to dealing with loans — RBI’s policy decision could set the tone for how the apex bank expects the next few months to go. The moratorium conundrum Many banks and industry experts are of the opinion that another moratorium on loan repayments is not required going forward. The RBI first announced a three-month moratorium from March to May then extended the limit to August 31 leading to a lot of uncertainty when it comes to a bank’s balance sheets. Private and public sector banks alike have been shoring up provisions to deal specifically with COVID related accounts, over and above the RBI’s mandate. <div type="image" title="Provisions in Q1" msid="77365771" hostid="261" caption="&amp;lt;p&amp;gt;Provisions across major Indian banks in Q1&amp;lt;/p&amp;gt;"></div> SBI chairman Rajnish Kumar told the <a href="https://economictimes.indiatimes.com/news/economy/policy/government-and-corporates-need-to-invest-more-for-recovery-sbi-chairman-rajnish-kumar/articleshow/77358404.cms">Economic Times</a> that the moratorium has achieved its limited purpose and can now be done away with. “What the RBI can do is if the bank is satisfied with the intent of the borrower and normalisation in cash flows, it can give some relief,” he said. The call for one-time restructuring Rather than delay payments further, Indian industry leaders are suggesting that a one-time restructuring of all loans should be put on the table. Certain segments were already struggling before the coronavirus pandemic hit and others are wondering how to crack the ‘new normal’. <div type="Article" hostid="261" msid="77328145" title="One-time loan restructuring dilemma - RBI won’t commit, and India Inc won’t stop asking for it" mstype="2" mssubtype="0"></div> The RBI’s issue with restructuring loans has always been that it amounts to ‘deceptive banks’ — in the words of the former RBI governor Raghuram Rajan. Businesses, on the other hand, don’t want to be declared NPA in order to be restructured since that blocks incremental funding. For any of this to happen, banks need to be incentivized to pump more money into loans on the verge of collapse. RBI’s inflation-targeting mandate Former RBI Deputy Governor Viral Acharya <a href="https://www.moneycontrol.com/news/trends/current-affairs-trends/focus-on-inflation-over-growth-at-next-policy-review-meet-viral-acharya-to-rbi-5631091.html">believes</a> that the apex bank should ‘respect’ its core mandate and get inflation in India under control. But, it’s not a simple choice because of the relationship inflation shares with the repo rate. The RBI has slashed the repo rate twice in the last 4 months — once during the March MPC by 75 basis points (bps) and again in an off-cycle meeting in May by another 40 bps. 100 bps make up one percent and the repo rate is one of the instruments that the RBI has on hand to control inflation and spur growth. The rate currently stands at 4%. The repo rate and inflation share an inverse relationship. While dipping the repo rate further could make inflation worse, increasing it would make it more expensive for banks to borrow. The RBI is required to keep inflation in India between 2% to 6% as per its inflation targeting mechanism — or core mandate as Acharya put it. In the last six months, the RBI has missed its range exceeding 6% inflation each quarter. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Month </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rate of Inflation </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Quarterly average </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jan </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.59% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Feb </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.58% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.84% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.67% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">April </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.22% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">May </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.27% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">June </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.09% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.51% </td></tr></tbody></table> If the RBI fails to keep inflation within tolerance levels this quarter as well, it will technically constitute a failure of the monetary policy. Following which, RBI will be required to send a report to the central government explaining why the situation occurred and the remedial measures to fix it. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/axis-bank-finalises-10000-crore-share-sale-to-raise-funds-at-a-floor-price-of-442-19/articleshow/77354177.cms">Axis Bank finalises ₹10,000 crore share sale to raise funds at a floor price of ₹442.19</a> <a href="https://www.businessinsider.in/finance/banks/news/one-time-loan-restructuring-dilemma-rbi-wont-commit-and-india-inc-wont-stop-asking-for-it/articleshow/77328145.cms">One-time loan restructuring dilemma - RBI won’t commit, and India Inc won’t stop asking for it</a> <a href="https://www.businessinsider.in/finance/news/depressions-and-recessions-differ-in-their-severity-duration-and-overall-impact-heres-what-you-need-to-know-/articleshow/77289455.cms">Depressions and recessions differ in their severity, duration, and overall impact. Here's what you need to know.</a>

Three things the RBI will have to mull over as it gets ready to announce its monetary policy decision

<ul><li>Scientists at the <keyword id="188953" type="COMPANY" weightage="20" keywordseo="Physical-Research-Laboratory">Physical Research Laboratory</keyword> at <keyword id="6358064" type="UNKNOWN" weightage="20" keywordseo="isro">ISRO</keyword> have been observing EPIC 211945201b for over a year now. </li><li>The planet is 27 times the mass of Earth and has six times the radius, while being located over 600 light years away. </li><li>It orbits its own parent sun, but completes a revolution in 19.5 days. </li></ul>It’s six times bigger than the Earth and over 600 light years away, and it’s one of the most ‘epic’ <a href="http://www.thehindu.com/sci-tech/science/isros-prl-scientists-discover-an-epic-planet/article24127772.ece">discoveries</a> made by the <keyword id="116095" type="ORGANIZATION" weightage="20" keywordseo="Indian-Space-Research-Organisation">Indian Space Research Organisation</keyword> (ISRO). Christened the EPIC 211945201b, the Physical Research Laboratory (PRL) in <keyword id="5065" type="COMPANY" weightage="20" keywordseo="Ahmedabad">Ahmedabad</keyword> not only found a new planet in the deep recesses of space but was also able to measure its mass. There are only a <a href="https://www.fromthegrapevine.com/innovation/nasa-earth-scientists-discover-20-new-habitable-planets">handful</a> of nations that have the capability to explore regions so far away, let alone discover entirely new planets. What’s so EPIC anyway? The PRL Advance Radial-Velocity Abu-Sky Search (<a href="https://www.isro.gov.in/mount-abu-infrared-observatory-miro-unveiling-universe">PARAS</a>), India’s first telescope designed specifically to make infrared observations, stumbled upon the exoplanet after <keyword id="6360409" type="COMPANY" weightage="20" keywordseo="Nasa">NASA</keyword>’s K2, a space observatory, picked up an anomaly in the brightness of one of the stars on its radar. They decided to explore the possibility of an exoplanet ‘transiting’ around the star that K2 had spotted. Exoplanets transiting around a star often lead to the star’s brightness changing. And thus, the 1.2m telescope, <keyword id="47495" type="PERSON" weightage="20" keywordseo="Paras">PARAS</keyword>, was put to use from the Gurushikhar Observatory in <keyword id="53955" type="PERSON" weightage="20" keywordseo="Mount-Abu">Mount Abu</keyword>, Rajasthan. The planet is a little bigger than Neptune but slightly smaller than Saturn. Just like the Earth, it orbits a central star but unlike our little blue planet, it burns at around 600°C. It takes only 19.5 days for the planet to complete one revolution around its parent star, EPIC 211945201 (or K2-236). That means it takes less than a month for the planet to complete, what would technically be, an Earth ‘year’. This measurement of mass, surface temperature and atmospheric conditions are only possible because PARAS doesn’t measure distances solely based on light. Rather, the telescope picks up the entire electromagnetic spectrum so that there’s a treasure trove of data to analyse. Using that data, PRL scientists who’ve been observing the planet for over a year now, claim that ice, iron and other heavy elements account for 60-70% of the planet’s mass. And the mass of the planet itself is 27 times that of the Earth. Though unique in its own way, this ‘epic’ planet is one of 22 other confirmed exoplanet systems with the same dimensions. Furthermore, it’s one of billions that’s currently uninhabited. Nonetheless, it could hold the key towards understanding how planetary systems are formed.

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