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India becomes global investment hub for digital shopping

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With the backing of global investors for e-commerce companies, India has become the second-largest global venture capital investment hub for digital shopping companies in 2021 after the US.

The Indian e-commerce segment registered a whopping growth rate of 175 per cent and reached $22 billion from $8 billion in 2020.

The US which attracted $51 billion investments came first followed by China at third position with $14 billion and the UK at fourth position with $7 billion according to the London & Partners analysis of Dealroom.co investment data.

The data also indicates that the US and India are two of the world’s leading hubs for digital shopping companies with high levels of global investment and unicorns.

The reason for this kind of investment may be attributed to increasing demand for online purchases during a series of lockdowns across the world during the Covid-19 pandemic.

Within India, Bengaluru was on top globally with $14 billion worth of Venture Capital (VC) investments in digital shopping in 2021, followed by Gurugram at No. 7 with $4 billion and Mumbai at No. 10 with $3 billion.

The data also shows that Bengaluru ranked number five among cities with the potential for future unicorns, just behind London.

Three of the 15 global cities with the highest count of current unicorns are in India Bengaluru at No. 6 with 19 unicorns in 2021 (up from three in 2020, Gurugram at No. 7 with 13 unicorns (up from 3 in 2020) and Mumbai at No. 14 with 7 unicorns.

London is the leading European hub for digital shopping investment, with a record $5 billion raised by digital shopping companies based in the capital in 2021.
Overall, global venture capital investment into digital shopping more than doubled in 2021 following a significant consumer shift to e-commerce platforms during the pandemic. The total global VC investment for 2021 stood at a record $140 billion, up from $68 billion in 2020.

India’s e-commerce market is likely to surpass $120 billion in transactional value, a study by FIS, an American financial technology company, forecasts. Between 2021 to 2025 the ecommerce market is expected to grow by 96 per cent, the growth driven by an increasing shift towards digital payments, according to the 2022 Global Payments Report by Worldpay from FIS, which offers a snapshot of the global payments landscape.

Riding on the global sentiment, Indian consumers are relying more on mobile commerce than desktop ecommerce. Globally, the transaction value from mobile devices accounted for 52 per cent of all e-commerce spending in 2021.

In India, consumers preferred to use digital wallets 45 per cent of the time, over debit, credit and charge cards for e-commerce payments, a trend common in Asia Pacific countries including China, Indonesia and the Philippines.

Regional wallets such as Paytm in India, and WeChat and AliPay in China, are major factors for this, as they facilitate a diverse and competitive payments ecosystem in these countries.

While cash is still the leading in-store payment method in 2021, responsible for 37.1 per cent of transaction value, digital wallets are projected to overtake cash as the most popular in-store payment method by 2023, when they are expected to account for 30.8 per cent of point-of-sale (POS) transaction value. India’s POS market is expected to grow by 28.8 per cent to $1.08 trillion between 2021 and 2025.

In the backdrop of the Covid-19 crisis, while global investments depict a decline in Foreign Direct Investment (FDI) inflows, Indian prospects are bright owing to its sustained long-term growth trend.

According to the UN Conference on Trade and Development (UNCTAD), India’s large market and positive economic growth in the post-pandemic period will draw investments to the country.

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Calcutta HC allows NGO to distribute relief material in communal violence-hit Murshidabad

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Kolkata, April 17: A single-judge bench of the Calcutta High Court, on Thursday, permitted a non-government organisation (NGO) to visit the communal violence-hit Murshidabad and distribute relief material among the affected people.

While granting permission to the NGO christened ‘Khola Hawa (Open Air)’, which was earlier denied permission by the district administration, the single-judge bench of Justice Amrita Sinha observed that there was no rule that organisations other than government bodies would not have permission to distribute relief materials at any place.

She also observed that the existing law and order problem could not be an excuse for denying permission, since the Central Armed Police Forces (CAPF) were already posted in Murshidabad.

The NGO approached the bench of Justice Sinha after the Murshidabad district magistrate denied permission for its members to visit the troubled spots in the district to distribute relief there. Parts of Murshidabad district in West Bengal have been on the boil last week after protests over the Waqf (Amendment) Act turned violent.

In the petition, the NGO alleged that while the district administration was allowing different political parties to reach the troubled spots with relief materials, the permission to the organisation was deliberately denied.

The matter came up for hearing on Thursday afternoon. The counsel for the NGO argued that there was no reason for the district magistrate to deny the permission since the state Director General of Police had already claimed that the situation at Murshidabad was currently more or less normal. “The NGO members want to go there to distribute relief items like tarpaulin, food, and medicines to those affected,” the counsel of Khola Hawa argued.

Although the state government opposed the arguments, Justice Sinha finally accepted the argument of the counsel of Khola Hawa and permitted the NGO to visit the troubled spots and distribute relief items there.

However, she maintained that only three members of a relief team should visit any troubled spot at a time for the time being. At the same time, these three team members would have to inform the district magistrate at least 24 hours in advance about their visit. The visiting team members, as per the court order, should also not make any provocative statements during the process of relief distribution that might trigger tension in the area again.

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International

Extreme marine heatwaves tripled over past 80 years: Study

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London, April 17: The number of days each year that the world’s oceans experience extreme surface heat has tripled over the past 80 years due to global warming, a new study has found.

Researchers found that, on average, the global sea surface saw about 15 days of extreme heat annually in the 1940s, Xinhua news agency reported.

Today that figure has soared to nearly 50 days per year, revealed the study published in the journal Proceedings of the National Academy of Sciences.

Global warming is responsible for almost half of the occurrence of marine heatwaves — periods when sea surface temperatures rise well above normal for an extended time.

The study, produced by a team of scientists from the Mediterranean Institute for Advanced Studies, the University of Reading, the International Space Science Institute, and the University of the Balearic Islands, also found that rising global temperatures are making extreme ocean heat events last longer and become more intense.

“Marine heatwaves can devastate underwater ecosystems. Extended periods of unusually warm water can kill coral reefs, destroy kelp forests, and harm seagrass meadows,” said Xiangbo Feng, a co-author of the study at the National Centre for Atmospheric Science at the University of Reading.

The impacts of marine heat waves extend beyond the ocean. The researcher warns that increased marine heatwaves could, in return, cause our atmosphere less stable leading to more frequent and powerful tropical storms in some regions.

“As global temperatures continue to rise, marine heatwaves will become even more common and severe, putting increasing pressure on already stressed ocean ecosystems. These increased marine heatwaves could, in return, cause our atmosphere less stable leading to more frequent and powerful tropical storms in some regions,” Feng said

Noting that human activities are fundamentally changing oceans, the study called for urgent climate action to protect marine environments.

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Business

US tariff hikes no longer make economic sense: China

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Beijing, April 17: A Chinese foreign ministry spokesperson said on Thursday that the United States’ 245 per cent tariff on certain products from China no longer makes economic sense.

It the US continues to play the “tariff numbers game”, it will pay no attention to it, according to the spokesperson, Xinhua news agency reported.

The statement came in the wake of White House’s statement that China faces tariffs of up to 245 per cent due to its retaliatory action.

China now faces up to 245 per cent tariffs on imports to the US as a result of its retaliatory tariffs, according to the White House Fact sheet.

This came after Beijing ordered its airlines not to take any further deliveries of Boeing jets in response to the earlier US decision to impose 145 per cent tariffs on Chinese goods.

According to the White House, the US President is open to making a trade deal with China, but Beijing should make the first move.

“More than 75 countries have already reached out to discuss new trade deals. As a result, the individualised higher tariffs are currently paused amid these discussions, except for China, which retaliated,” it said.

The White House also accused Beijing of banning exports to the US of gallium, germanium, antimony, and other key high-tech materials with potential military applications.

There are no winners in a trade conflict and the tussle between China and the US raises the risk of economic and geopolitical fallout, a report by S&P Global Ratings said this week.

Home to sizable manufacturing activities, Asia-Pacific is highly dependent on exports to the U.S. and China for growth. At the same time, Asia-Pacific depends on the US mostly for security.

The region could find itself pushed to take sides or walk a delicate line between the two large economies, the report stated.

To counteract tariffs, Asia-Pacific governments are exploring the formation of regional trade blocs or bilateral trade agreements. These efforts could accelerate, expediting the need to relocate supply sources and production.

China’s economic growth is seeing rising downside risk amid rising trade tensions with the US as its export engine falters from weaker global demand. The country’s domestic growth engine remains subdued, given the lingering real estate crisis, which is dragging down confidence.

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