Business
Budget to focus on fiscal consolidation while pushing private capex
Union Budget 2022 will focus on gradual fiscal consolidation while pushing public capex, creating a conducive environment for private capex, and raising resources via strategic divestments, Morgan Stanley said in a report.
The budget is likely to focus on gradual fiscal consolidation, continuing to favour investment-driven growth with a push for both public and private capex, and raising additional resources through strategic divestments and asset monetization.
“Apart from this, we would be looking for clarity for Indian bonds to be included into global bond indices. Indeed, the overall focus of the government should be to utilize all revenue levers effectively (tax compliance to improve tax to GDP, strategic asset sales) to sustainably improve the health of the public sector balance sheet”, Morgan Stanley said.
The impact of the budget on the market has been on a secular decline. Nevertheless, market participants still need to negotiate volatility. Factors that will likely have maximum impact include a credible fiscal deficit target, the government’s spending plans vs fiscal consolidation, changes to long-term capital gains tax, lower taxes for the services sector, resolution of tax issues for FAR bonds, and the timing and quantum of asset sales.
The disruptions from the pandemic have weighed heavily on India’s fiscal metrics, with the central government’s fiscal deficit rising to an all-time high of 9.2 per cent of GDP in FY21. However, the story has changed in FY2022 with a positive surprise from tax revenue, which has seen improved buoyancy. As such, gross tax revenue is expected to track at 10.9 per cent of GDP in F2022 vs the budget estimate of 9.9 per cent of the GDP. As such, we expect the fiscal deficit to be at 6.8 per cent of GDP, assuming the LIC IPO is deferred to F2023. If the IPO happens in F2022, the fiscal deficit could be lower at 6.4 per cent of GDP, Morgan Stanley said.
“We expect the fiscal deficit to be 6 per cent of GDP in F2023, driven by some reduction in pandemic-related spending and continued tax buoyancy. A gradual fiscal consolidation path will also give the government flexibility to provide any additional support to the economy should Covid-related disruptions continue into F2023”, it added.
Business
Meta to report child safety cases to India’s I4C cybercrime portal (Lead)

New Delhi, Sep 15: Meta will directly report child safety matters to India’s Cybercrime portal managed by the Indian Cyber Crime Coordination Centre (I4C), the US-based technology giant said on Tuesday.
The decision comes amid heightened scrutiny of Meta in India over the alleged circulation and promotion of child sexual abuse material (CSAM) through advertisements on Instagram.
The government has said the online safety of children is a fundamental principle for every social media platform operating in India and remains non-negotiable, according to government sources. The commitment by Meta is being seen as a first step towards strengthening safeguards for children on social media platforms, they added.
Meta — in a statement on the ongoing issue — said protecting children on its platforms is a priority and that it is committed to working with the government to ensure perpetrators of such crimes are held responsible.
“To collectively strengthen our efforts to combat this harm, Meta will now report child safety matters directly to the Cyber crime portal managed by I4C,” a Meta spokesperson said.
Social media platforms can be used to circulate or facilitate access to CSAM and other forms of child exploitation.
Reporting such cases to law enforcement agencies would help ensure that such incidents are not dealt with solely through platforms’ internal content-moderation systems.
The government has stressed that more needs to be done and that discussions are continuing with other social media platforms to proactively identify and remove harmful content.
It has also warned that action could be taken against platforms that fail to adopt adequate proactive measures to protect children online.
The development comes amid growing global scrutiny of social media platforms over risks to children, including exposure to sexual exploitation, harmful content and online abuse.
In India, social media platforms are governed by the Information Technology Act and the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, which prescribe due-diligence obligations for intermediaries.
Meta had faced scrutiny after an investigation by the Tech Transparency Project (TTP) found that Facebook and Instagram carried paid advertisements featuring child sexual abuse material this year, including AI-manipulated images of real children.
The investigation also found more than 300 advertisements featuring AI-generated child sexual abuse material on Meta’s platforms.
Business
Indian equities open higher defying weak global cues

Mumbai, Sep 15: Indian equity benchmarks opened higher on Tuesday despite global markets remaining under pressure amid elevated US bond yields and crude oil prices.
Sensex opened at 75,369.63, up 587.87 points or 0.79 per cent, while Nifty began trading at 23,576.15, higher by 178.05 points or 0.76 per cent. The gains were led by information technology stocks as Nifty IT index jumped more than 4 per cent, while the Nifty MidSmall IT & Telecom index rose nearly 2 per cent.
Other sectors, Nifty FMCG gained 0.72 per cent, while Nifty Auto rose 0.31 per cent. Media, energy and private banking indices were also marginally higher.
In contrast, Nifty Metal fell 0.58 per cent, while Nifty Financial Services Ex-Bank and Nifty MidSmall Financial Services declined 0.52 per cent and 0.5 per cent, respectively. Nifty Pharma fell 0.37 per cent, while cement, healthcare, consumer durables and realty indices also traded lower.
Among Nifty 50 stocks, Kotak Mahindra Bank, Grasim Industries, BEL, Shriram Finance and InterGlobe Aviation were top losers which declined between nearly 1 per cent and 1.67 per cent.
“Global equity markets will be under pressure from the US 10-year yield hitting the psychological 5 per cent mark. The macro scenario will continue to be under pressure from rising crude prices,” according to market experts.
The continuing boom in the initial public offering market and the outperformance of the broader market were also cited as positives for domestic equities, according to market experts.
On the Nifty’s technical outlook, the expert said the pullback from the 23,260-23,000 region suggested the index was attempting a swing higher after approaching oversold territory, they said.
“This mean reversion move could potentially aim for 23,720,” the experts said, while cautioning that failure to clear 23,515, or a direct fall below the 23,260-23,000 region, could bring the 22,600-21,800 range into focus.
Business
India‑UAE ties grow into a model for BRICS collaboration: Report

New Delhi, Sep 14: The United Arab Emirates (UAE) and India are broadening a strategic and economic partnership that serves as “an effective model of cooperation within BRICS,” a new report has said.
The partnership is built on a foundation of historic ties, shared interests and major projects that promote trade, investment and logistics connectivity between markets, the report from Gulf Today said.
“The growing UAE-India partnership, reflected in expanding trade, increasingly integrated logistics corridors and cooperation in investment and innovation, provides a practical model of the UAE’s role within BRICS,” the report said.
Further, the partnership also proves UAE’s commitment to exchanging expertise and perspectives and building more integrated and sustainable economic partnerships.
Bilateral trade reached $101.25 billion in FY26, marking the second consecutive year in which trade between the two countries exceeded $100 billion. The UAE and India have set a target to raise bilateral trade to $200 billion by 2032.
The partnership is being advanced through initiatives such as Bharat Mart, the Virtual Trade Corridor and cooperation under the India‑Middle East‑Europe Economic Corridor (IMEC).
“These initiatives are helping strengthen supply chain integration and create new routes for trade and investment flows between the two countries and global markets,” the report noted.
The UAE-India Comprehensive Economic Partnership Agreement (CEPA), operational since 2022 was hailed as the first agreement of its kind concluded by the UAE. The agreement has bolstered the flow of goods, services and investment and expanded opportunities for the private sector in both countries.
United Arab Emirates and China were the largest destinations within BRICS, together accounting for 88.50 per cent of India’s electronics exports to the grouping.
The number of Indian companies registered as active members of Dubai Chamber reached 85,841 by the end of June 2026 after 7,579 new Indian firms joined in the first half of the year, marking a year‑on‑year increase of 15 per cent, another report said.
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