Category: Business & Economy

On Friday, India’s foreign ministry stated that they were not informed beforehand about the charges against Gautam Adani by the U.S. Department of Justice. They also mentioned that they have not received any official requests for legal action from the U.S. yet.

Spokesperson Randhir Jaiswal said during a press briefing, “India was not informed before this issue. We have not had any talks about this with the U.S. government. Requests for legal matters are usually handled through mutual cooperation.”

Jaiswal emphasized that this case involves “private companies,” and India is not involved legally at this moment. He added, “We don’t have any requests from the U.S. about this case. The Indian government isn’t a part of it right now.”

Recently, the U.S. Department of Justice filed charges in a New York court, claiming that more than $250 million in bribes were paid to Indian officials. This was to secure solar power contracts that could earn Adani Group around $2 billion over 20 years. Importantly, the charges did not name Gautam Adani, his nephew Sagar, or Vneet Jain in any conspiracy to break U.S. anti-corruption laws.

The Adani Group called these allegations “baseless” and stated they would take legal action to protect their name. In their statement, they pointed out that media reports incorrectly suggested that Gautam Adani, Sagar Adani, and Vneet Jain were charged with breaking U.S. laws. According to the indictment, it mentioned five specific charges but did not link these directors to bribery or obstruction of justice.

The Adani Group clarified that while three charges were made against certain company officials related to fraud, Gautam Adani and the others were not part of any bribery accusations. The news sparked a lot of debates in the Indian Parliament, with opposition members demanding a special investigation committee to look into the matter

India is becoming famous for more than just yoga, Bollywood movies, and delicious chicken tikka masala. Now, Indian single malt whiskey is making waves around the world! This unique whiskey comes from one distillery and has its own special flavor. With more people in India enjoying whiskey, distilleries are producing top-quality single malts that are winning awards.

For example, Amrut Triparva was recognized in the 2024 Best in Class list, and Indri Diwali Collector’s Edition 2023 won top honors last year. Many restaurants, like Bungalow in New York, see Indian whiskies like Indri selling better than famous brands like Macallan.

Sanjeev Banga, an industry leader, believes Indian whiskey is gathering attention just like New World wines did before. Excitingly, American whiskey makers are even using empty Indian whiskey barrels to create new tastes!

Indian distilleries are popping up everywhere. There’s GianChand from Jammu, Rampur in Uttar Pradesh, and Indri-Trini from Haryana, which uses local barley. Amrut is from Bangalore and kicked off India’s single malt journey back in 2004.

In 2023, Indian single malts outsold Scotch whiskies for the first time, making up about 53% of sales in the whiskey market! Big companies like Diageo and Pernod Ricard are now launching their own Indian brands. Pernod introduced Longitude 77, and Diageo has Godawan, both competing internationally.

Big plans are underway! Piccadily Agro, known for Indri, will invest a whopping Rs 1,000 crore to expand and even open a distillery in Scotland. Alexandre Ricard from Pernod believes that Indian single malt whiskey deserves its own category globally and is working to make that happen.

Currently, 24 distilleries in India make single malt whiskey, with more joining the industry. To help promote Indian whiskey globally, all manufacturers need to come together, and support from the government is crucial

Indian wages have dropped for the first time since COVID-19, slowing down the economy as people are spending less and businesses are earning less money. Between July and September, real wages for city workers went down by 0.5% compared to last year, according to Elara Securities. Other reports from companies like Motilal Oswal also show that wage growth is slowing down while prices are rising, which is making life harder for many city families. Even though the economy grew over 8% last financial year, many people are cutting back on purchases from soaps to cars because their incomes aren’t keeping up with rising prices.

Big companies like Maruti Suzuki and Hindustan Unilever have reported weaker sales and earnings. About half of the companies in the NSE Nifty 50 Index did not meet expected earnings in their latest reports. For Prime Minister Modi’s government, this slowdown is a challenge to its goal of creating more jobs and growing the economy. The finance and trade ministers are suggesting to lower interest rates, but the central bank governor is focused on keeping inflation under control.

India’s main opposition party is criticizing the government for not paying enough attention to the middle class’s economic struggles. Data expected soon is likely to show more signs of this slowdown, with growth for the last three months expected at 6.5%, which is the slowest in six quarters. Consumer spending accounts for nearly 60% of the economy, and slow hiring in the tech sector and poor profits in manufacturing are hurting real income.

IT services firms like Tata Consultancy Services, Infosys, Wipro, and HCL Technologies reported a smaller increase in employee costs compared to last year. This means families might need to use their savings or take on more debt to keep spending. Analysts believe that weak income growth is keeping consumer finances low.

Household spending will likely continue to be a problem in the coming quarters. Some economists expect GDP growth to drop to about 6.8% for the financial year, lower than earlier predictions. Other investment banks like Goldman Sachs are even more pessimistic, expecting only 6.4% growth. The Reserve Bank of India has a slightly more optimistic view, expecting 7.2% growth.

One reason for the slower growth is that the government hasn’t been spending as much as planned since the national elections. The Economic Affairs Secretary said that the government might not spend as much as it had targeted. They have spent only 37% of their budget for the first half of the fiscal year compared to 49% last year.

There are signs of better spending in rural areas, hinting that the worst may be over. Bloomberg Economics believes that growth has been held back by strict policies but is starting to improve. Increased rural spending from a good harvest could help the economy bounce back, especially when the central bank lowers rates.

The Reserve Bank of India is optimistic, saying that the economy is doing well overall and that both rural spending and private investments are getting better. The central bank hasn’t cut interest rates yet, even as the Federal Reserve has, because they are worried about the risks of inflation.