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India’s growth story continues despite Covid; more people turning into ‘job creators’

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Various waves of the Covid pandemic could not sweep off India’s growth story completely. Showing resilience India has registered 1.67 lakh companies in the financial year 2021-22 (April-March), according to a report by Ministry of Corporate Affairs (MCA).

The increase is significant considering that number of companies incorporated during Financial Year 2020-21 were the highest in any of the previous years.

The MCA had registered 1.55 lakh companies in 2020-2021. The incorporations during FY 2021-22 are 8 per cent more than the incorporations during FY 2020-21. While MCA had registered 1.24 lakh companies during FY 2018-19 and 1.22 lakh companies in 2019-20 respectively, it had registered 1.55 Lakh companies during FY 2020-21.

During FY 2021-22, the States having the highest number of registrations were Maharashtra (31,107 companies) followed by Uttar Pradesh (16,969 companies) Delhi (16,323 companies) Karnataka (13,403 companies) and Tamil Nadu (11,020 companies).

Sector wise, the maximum number of companies were incorporated in the Business Services (44,168 companies), followed by manufacturing (34,640 Companies) community, personal & social services (23,16 companies) and agriculture & allied activities (13,387 companies).

This also indicates that due to less availability of suitable jobs more and more people are opening their own businesses and are in turn becoming job creators.

The growth in GDP in India during 2021-22 is estimated at 8.9 per cent as against a contraction of 6.6 per cent in 2020-21. In value terms, GDP stood at Rs 38,22,159 crore in October-December 2021-22, higher than the Rs 36,22,220 crore in the corresponding period of the 2020-21.

Gross Value-Added (GVA) in the economy is expected to grow by 8.3 per cent in 2021-22 from a 4.8 per cent contraction in 2020-21, the National Statistical Office (NSO) said. Apart from the contact-intensive segment of trade, hotels, transport, communication & services related to broadcasting, all sectors are expected to surpass pre-pandemic GVA levels this year.

Even the MSMEs (Medium, Small, and Micro Enterprises) sector in India is set for an economic rebound, the latest ASSOCHAM-CRISIL joint study stated. It added that the sector is expected to achieve mid-teen growth in fiscal 2022 with the pick-up of economic activities.

Amidst the global pandemic, India has found its innate strength to brave the storm and focus on developing its domestic ecosystem, to support both the Indian and the global markets. The Aatmanirbhar Bharat vision that has been laid by the Hon’ble Prime Minister has enthused the Indian industry with confidence that will help us enhance our global play,” says MrDeepak Sood, Secretary General, ASSOCHAM.

Considered to be the engine of economies around the world, the MSME segment in India alone is estimated to have 6.3 crore units, which employs over 11.10 crore people. The sector accounts for 27 per cent of GDP and is crucial to the functioning of the economy, including in terms of employment generation, exports, and lending opportunities. The sector was the worst hit during the COVID-19 pandemic and the lockdown that followed in 2020.

Crediting MSMEs for putting the country on the firm path of economic recovery in 2022 after having had it tough in 2021, Bhushan Parekh, Director, CRISIL SME Solution, elaborated in the report, “A raft of measures by the government under its Aatmanirbhar Bharat banner has provided reprieve to MSME segment in recent months. These include Rs 20,000 crore subordinate debt for stressed MSMEs, Rs 50,000 crore equity infusion through MSME Fund of Funds (SRI Fund), 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for businesses, including MSMEs (which was subsequently increased to Rs 5-lakh crore in Union Budget 2022-23), change in definition of what constitutes an MSME, and no global tenders for government procurement up to Rs 200 crore.”

The report also notes that if MSME lending by banking and non-banking finance companies (NBFCs) in fiscal 2021 rose to 7 per cent on-year, then the credit is expected to grow by 7-9 per cent (around Rs 18-lakh crore) on-year in fiscal 2022 supported by favourable government measures as well as rise in demand.

While the banks continue to dominate around 80 per cent of the MSME-lending book, it is, however, expected to reverse in the future. One of the factors driving the change is the digitalization of the MSME sector. The digital footprint of MSMEs expanded in 2021, according to the CRISIL survey of over 500 MSMEs. This has not only helped in providing enhanced customer experience, operational efficiency and workforce enhancement, but also facilitates access to financial services.

MSME also has 50 per cent share in exports since the past five years. The report states that exports-linked MSME sectors have been on the path to recovery and will continue to do so in the next fiscal.

Business

CTI to launch poster campaign in 20 markets around Delhi’s Ramlila Maidan; urges INDIA Bloc to cancel rally

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With Diwali approaching, some Delhi traders have expressed concern over the proposed rally at Ramlila Maidan, with the Chamber of Trade and Industry (CTI) on Saturday launching a massive poster campaign urging that business activities in major markets should not be disrupted during the peak festive season and urging the INDIA Bloc to cancel its ‘Chalo Delhi’ rally.

The CTI, an apex body representing traders and entrepreneurs in Delhi, appealed to Leader of the Opposition in the Lok Sabha, Rahul Gandhi, saying that traders’ businesses also run on mutual trust, love and affection with their customers.

“You often say that you run shops of love in the market of hatred. Our shops also run on the basis of mutual trust, love and affection with our customers. Therefore, we humbly request you not to sacrifice our shops of love and business for a rally during the peak season of India’s biggest festival, Diwali,” the CTI said.

CTI has announced that starting on Saturday, these posters will be put up in 20 major wholesale markets within a 5-km radius of Ramlila Maidan.

CTI Chairman Brijesh Goyal said the poster campaign was intended to highlight the concerns of traders whose businesses could be affected by traffic restrictions and congestion around the rally venue.

“You talked about opening ‘shops of love’ during the Bharat Jodo Yatra, but in Delhi, our 300-year-old shops of love are being closed because of the rally,” Goyal said.

He cited businesses ranging from the famous parantha shops of Chandni Chowk and spice traders of Khari Baoli to bangle and bindi sellers in Sadar Bazaar, lehenga shops in Chandni Chowk and other traditional establishments.

“Each shop supports the families of 10 to 20 people,” he added.

The CTI said it would put up posters in major wholesale markets located within a five-km radius of Ramlila Maidan.

These include Chandni Chowk, Sadar Bazaar, Khari Baoli, Bhagirath Palace, Naya Bazaar, Chawri Bazaar, Kashmiri Gate, Daryaganj, Connaught Place, Karol Bagh, Nabi Karim, Paharganj, Ajmeri Gate, Lahori Gate, Janpath, Palika Bazaar, Ballimaran and Kinari Bazaar.

According to the traders’ body, a large gathering at Ramlila Maidan could lead to traffic congestion and restrictions in the surrounding markets.

Goyal said the proposed rally, scheduled just days before Dhanteras, could affect festive business activities.

He expressed concern that the arrival of a large number of people and around 20,000 vehicles could result in traffic jams across central Delhi and disrupt commercial activity.

The CTI claimed that the festive business of 2 million traders and the livelihoods of 7.5 million people dependent on these markets could be affected if restrictions were imposed during the peak Diwali shopping period.

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Business

Axis Trustee warns contempt proceeding against Yes Bank over AT1 bonds

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Axis Trustee Services Limited, the trustee for the Additional Tier 1 (AT1) bonds issued by Yes Bank, called upon the private sector lender to reinstate the bonds and take necessary corporate actions within three days, failing which the former would initiate contempt proceedings in Supreme Court against the bank.

The trustee said in a filing that non-compliance will constitute “wilful disobedience by the lender of the Supreme Court’s October 15 judgment”.

Yes Bank said it had responded to the trustee, acknowledging the Supreme Court judgment and reiterating that it was fully committed to acting in accordance with the ruling and applicable law, according to an exchange filing.

The Bank replied to the Trustee that it is cognisant of the matters and is examining the SC Judgment and its implications in detail.

“The Bank will take all such steps and measures as are necessary and permissible under applicable law,” Yes Bank said.

“Should the Bank fail to comply with the said judgment as called upon above within the stipulated period, we shall be constrained to initiate proceedings for contempt before the SC, against the Bank and its directors and officers responsible for compliance with the said judgment, without any further notice, entirely at the Bank’s risk as to costs and consequences,” Axis Trustee said in its letter to Yes Bank.

Bank has merely stated that it is “examining the judgment in detail, including evaluating all available options and suitable actions or steps going forward,” the trustee said, adding that under the guise of evaluating its options, the bank should not withhold compliance with the said judgment.

Yes Bank rejected the allegation in its response letter, clarifying that it had not wilfully disobeyed the court.

“The Bank does not accept the characterisation in your Letter of its conduct as wilful disobedience and the assertions in your Letter are baseless and without merit,” it said.

The Supreme Court had, on October 15, upheld the Bombay High Court’s decision to set aside Yes Bank’s Rs 8,415 crore AT1 bond write-off carried out in March 2020. It ruled that the bank’s administrator had acted outside its authority and the applicable regulatory framework.

Axis Trustee challenged the decision of the then administrator of Yes Bank to write down the AT1 bonds in March 2020 before the Bombay High Court.

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Business

Tesla rolls out Halloween Mode for ‘Model Y’ in India

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Tesla India on Friday said it launched a new software update for Model Y and Model Y L vehicles that adds a range of Halloween-themed features, highlighting the company’s over-the-air (OTA) software update capabilities.

According to the Elon Musk-backed firm, the update allows Tesla vehicles to receive new features and improvements remotely without requiring a visit to a service centre.

Halloween Mode includes a ghost-themed vehicle avatar, Halloween sound effects, special lighting sequences, seasonal vehicle wraps and a themed lock sound, it said.

The update also introduces a ‘Trick or Treat Mode’ which activates sound and lighting effects when visitors approach the vehicle.

Other features include a photobooth function and a voice messaging feature that allows users to speak through the Tesla app and have the vehicle relay messages, the company said.

Tesla said customers can experience the new features at its Experience Centres across India.

The company currently operates those centres in Noida, Delhi, Gurugram, Chennai, Hyderabad, Bengaluru and Mumbai and has approved collision centres in Pune and Ahmedabad.

Earlier in October, Tesla CEO Elon Musk showcased a new version of the Roadster sports car with a prototype briefly lifting off the ground during a demonstration at a SpaceX facility in Texas.

A post on X shared by Musk showed the vehicle navigating an elevated curved track before becoming airborne for a short distance and landing safely, drawing comparisons to a flying car.

The showcase highlighted a specialised propulsion system that combines the electric vehicle platform with high-pressure air tanks and thruster technology.

According to Tesla, the system can generate lift and improve vehicle dynamics through strategically placed thrusters that help control movement while off the ground.

The test prompted enthusiastic reactions from company executives, who described it as evidence that flying-car technology is moving closer to reality. Tesla, however, did not provide a timeline for commercial deployment.

Musk said the vehicle would remain practical for everyday use, although he acknowledged that road legality could depend on local regulations.

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