Latest news with #IndiaInc
Mint
12 hours ago
- Business
- Mint
‘India Inc must make fresh investments instead of sitting on cash'
New Delhi: Indian companies need to make fresh investments instead of holding cash, since their profits have improved and have healthy balance sheets, chairman of the economic advisory council to the prime minister (EAC-PM) S. Mahendra Dev said in an interview with Mint. To be sure, private investments are showing early signs of growth, and will likely accelerate once global uncertainties subside, he said, before conceding that government capital expenditure remains central to short-term economic stimulus. He emphasised that investment-led growth is the most effective strategy for India, hoping that rural and urban demand gathering pace will catalyse increased private investments. US president Donald Trump has unleashed a disruptive tariff war against the world, causing a great deal of trade uncertainty and prompting companies to hold off on fresh investments. Dev emphasised that India's economy has the capacity to grow on a sustainable basis at rates needed for becoming a developed-country over the next 25 years—some estimates project a requirement of nominal growth of 11% to 12% and 7% to 8%, adjusted for inflation. However, states have to make more efforts to attract investments, both domestic and foreign, Dev said. India's economy expanded at 6.5% in FY25, with the nation's central bank projecting a same growth rate in FY26. Above-normal monsoon augurs well for higher farm output growth in FY26, Dev said in the email interview. While Central programmes are improving agricultural productivity and cash transfers are helping to raise credit and investment, states should continue reforms in the sector for faster growth and improved farmer incomes, he said. Artificial intelligence use offers both challenges and opportunities but is likely to have an overall positive impact on jobs in India, Dev said, citing studies on the subject. Dev emphasised the point that private investment growth needs to gain momentum given that there is no dearth of capital availability. 'There are some green shoots on private capex. Many state governments are also attracting domestic and foreign private investment. Corporate sector and banks are having more profits now and their balance sheets are in good shape. So, there is no problem of capital availability. Industry is positive about India's growth story. Corporate sector is probably holding investing in capacity expansion due to global uncertainties and overcapacity in some countries like China,' said Dev. 'Increase in rural and urban demand will facilitate more private investment. Many firms turned debt-free and doubled their cash on the books. India Inc has to make new investments instead of keeping the cash,' Dev said. To achieve this, there is a need for more progress on 'ease of doing business' at the state level, Dev added, citing the case for deregulation made in Economic Survey 2024-25. 'Hopefully, private capex will be more once the domestic demand increases further and global uncertainties are reduced. Once the tariff concerns are over, there will be more opportunity for Indian industry to invest. Factors such as ease of doing business, availability of land and other infrastructure, logistics, and needed manpower attract investment to states. States have to make more effort to invite foreign direct investment and domestic private investment,' he said. Dev also called for maintaining the thrust on government's capital expenditure in the meantime. 'It is generally argued that India's growth strategy should be driven by encouraging consumption. However, a study by C. Rangarajan and D.K. Srivastava indicate that an investment-led growth strategy is the best choice and that government expenditure still holds the key for stabilisation or short-term stimulation. Investment-led consumption is more sustainable,' Dev said, quoting from the study published earlier this month in the Economic and Political Weekly. Private final consumption expenditure, or household spending, the biggest component in India's national income, on the other hand, expanded faster at 7.2% in FY25 compared to a 5.6% growth in FY24, Dev said. 'Rural consumption played an important role in this growth. The India Meteorological Department (IMD) expects above normal monsoon this year and it augurs well for higher agricultural growth, rural consumption and lower inflation. Therefore, we can expect that rural economy will do well in FY26 as well,' Dev added. Although there is volatility in agriculture growth, resilience of agriculture to monsoon has increased over time due to increase in irrigation coverage and other measures. Agriculture output grew at an average annual rate of 4.6% during the last eight years--2017-18 to 2024-25, Dev said, adding that FY25 also recorded a growth rate of 4.6%, contributing significantly to gross value added (GVA) growth of 6.4% last fiscal. The Indian economy is resilient and continues to be the fastest-growing country among large economies, Dev said, adding that some estimates have projected a requirement of nominal GDP growth of 11-12% and real growth rates of 7-8% to achieve the goal of becoming a developed country by 2047. 'India has the potential to achieve these growth rates. The country is on its way to becoming the fourth-largest economy in the world at the end of FY26. It has also shown considerable progress towards nearly eliminating extreme poverty and reducing consumption inequality,' added Dev. Some increase in investment rate, including domestic and foreign private investment, efficiency in capital use and enhancement of total factor productivity will boost India's growth, he said. 'Rise in savings in the economy is important for higher investments. Structural transformation of economy in output and employment from agriculture to manufacturing and services is also important for higher growth. India is doing well in service exports. There are significant opportunities for manufacturing exports in spite of global uncertainties on trade. Some other sources of growth are India's fast growing young work force, rise in human capital and technology, fast growing digital technology including artificial intelligence (AI),' Dev said. A youth population with a median age of around 28 years, compared to the ageing population of developed countries, is another key driver of economic growth for India. Increasing urbanisation will need more city infrastructure and it will improve growth. Reduction in global uncertainties in future will add to higher growth. Increasing women empowerment will raise India's GDP. The 2047 goals also include inclusive growth and sustainability objectives,' added Dev. 'In achieving higher growth rate for India, states play an important role. It is a healthy sign that states are competing by announcing goals on GDP and GDP per capita. Many studies have shown that improving 'state capacity' and governance is important in raising incomes of people and delivering public services like education and health. Similarly, decentralization of resources to Panchayats and Municipal Councils is needed, added Dev.
Time of India
15 hours ago
- Business
- Time of India
Is the Indian CMO the next CEO-in-waiting?
The Indian CMO's calendar looks vastly different from what it used to be. He toggles between dashboards tracking customer data, chairs a meeting with team and ad agency on a brand film, debates strategic thrust inn the storyline and connection to Gen-Z aspirations, and prepares for a meeting with the CEO on expansion plans to aspirational districts. Today's CMO is a juggler of analytics, creativity, and strategy, trying to create business value with a diversity of talent. The CMO's evolution here mirrors a broader global trend, but not without some local flavours. No longer confined to the creative corridor or digital traffic lanes, the CMOs are emerging as enterprise leaders and are expected to speak the language of data science while preserving the soul of storytelling. With an accelerating digital adoption and ever0changing consumer preferences, India Inc has put immense pressure on marketing heads to balance data fluency, emotional intelligence, and boardroom mandates. What has been the traditional practice? Brand campaigns driven largely by instinct and experience, with ROI assessed via top-line sales or media impressions. But today's CMOs can't afford to rely solely on gut feel. When customers are scattered across all channels including WhatsApp, YouTube, e-commerce platforms, and brick-and-mortar stores, marketing must be measurable, adaptable, and emotionally resonant, all at once. Such complexities need not be chaos. The key to succeed is not in becoming master of everything but in integrating data, creativity, and strategic insights in a cohesive manner. These aren't parallel tracks, but interlocking gears. Tata Neu's marketing transformation is a case in point. They didn't treat user data, branding, and business goals in silos; they created what is called 'decision pods', which are cross-functional groups with data scientists, content strategists, and product managers collaborating in real time. By mapping transaction-level insights to brand affinity and campaign recall, they improved campaign ROI and user retention. Data and creativity played tango perfectly. Indian CMOs lament the issue of incomplete or unstructured data whether it is about markets or government-published macro-economic factors. However, the vast digital footprint of the consumer, including languages, regions, and platforms, creates fertile ground for micro segmentation. Smart CMOs are using regional insights to tailor storytelling at scale. A single campaign might have 27 versions, each speaking to a cultural microclimate, all guided by a central data engine. Anyway, data alone doesn't create marketing magic. The storytelling instinct remains a core differentiator. Campaigns like Ariel's 'Share the Load' or Tanishq's wedding stories didn't go viral because of optimised funnels, but because they touched a chord. Even these emotional narratives are now backed by testing such as A/B iterations, clickstream heat maps, and post-campaign sentiment mining. The fusion is complete: data doesn't dilute creative; it sharpens it. The third and mostly underleveraged dimension is strategy, which seems to be the Achilles heel for the average Indian CMO. Many are still firefighting metrics or content deliverables, not shaping enterprise direction. Companies like HDFC Bank have shown what's possible. Its CMO sits on the executive committee, using consumer behaviour insights to influence how products are designed and bundled. Clearly, marketing must become a growth engine. To achieve this, CMOs are rethinking their structures. Leading brands are dismantling the old divisions between creative and analytics. Integrated war rooms, squad models, and agile loops are replacing rigid reporting lines. Technology is aiding the shift, with platforms like MoEngage or CleverTap facilitating real-time feedback loops between user behaviour and campaign triggers. The CMO's challenge isn't just complexity, but scale: A huge marketplace, diverse consumer base, and fragmented media ecosystem. The ideal marketer today isn't just a polymath, but a connector, someone who can align a TikTok influencer campaign in Coimbatore with a data-led performance push in Delhi and a CX redesign in Bangalore. Talent is a constraint. India's marketing education hasn't kept pace with the demand for hybrid skills. Institutes are now scrambling to produce 'T-shaped' marketers – deep in one area, broad across others. Companies like Infosys and Zomato are investing in internal academies where creatives learn SQL basics and analysts attend storytelling workshops. Technology, especially AI, will play a larger role in this transformation. At companies like Swiggy , machine learning predicts hyperlocal demand spikes and serves creative dynamically, adjusting tone and offer in real time. The shift is not just internal; external partnerships too are changing. CMOs are no longer just clients to agencies; they are co-creators. Many are building in-house studios with agency-like agility, merging business acumen with creative instinct within the same company. The days of waiting three weeks for a campaign concept are long over. Today's marketer needs the reflexes of a trader and the imagination of a poet. But this transformation is not without risk. Some CMOs fall into the perfectionism trap, trying to master each domain themselves. The wiser ones build teams with clear specialisations and focus their own energy on integration and alignment. They define decision rights clearly, ensure everyone sees the same dashboards, and nurture a culture where both performance and imagination are celebrated. The Indian CMOs aren't just running campaigns; they're rehearsing for the corner office. With a finger on the consumer's pulse, a grip on data levers, and a voice in strategic direction, today's CMO is increasingly seen as a growth leader. The skills once considered 'marketing' – storytelling, trendspotting, insight mining – are now boardroom gold. CMOs who decode markets, align teams, and steer brand purpose into profit engines are the logical contenders for CEO roles. When growth depends on understanding humans, not just numbers; the path from marketer to top boss is inevitable. Or as one CEO quipped, 'CMO used to mean Chief Makeover Officer. Now, it's Chief Meteor of Outcomes – crashing into silos and reshaping the whole business.' Ready or not, the CEO chair is warming up.
Mint
2 days ago
- Business
- Mint
Mint Quick Edit: Time to rescue crypto from policy limbo
Cryptocurrency exchange CoinDCX has suffered a cyberattack in which $44 million was reportedly stolen from its internal accounts by hackers. The money was lost from an account the company was using to manage liquidity on a partner platform and CoinDCX has said that the breach does not affect customer assets. Also read: Crypto is booming again. Trump's return explains both the rise and the risk While the investments of investors have been declared safe by the company, the incident spotlights the need for tighter systems-security. Last year, WazirX, another crypto exchange, had lost $234 million in a cyber heist. Such news can shake investor confidence, especially since the legal status of cryptocurrency in India remains in a regulatory grey zone. Also read: Mint Primer | Future of cyber warfare: AI's dual role in attacking and defending India Inc While the government's approach has been to tax crypto gains, it has neither explicitly banned such digital assets, nor offered a framework to regulate their trading and use. This vacuum should not persist for long. India's crypto policy needs clarity. If digital tokens used as a currency must only be issued by the central bank, then the Centre must say so. Also read: Google flags over 500 million scam messages monthly as cybercrime soars in India If private tokens are fine if backed by proper reserves, like stablecoins, then this should be specified. The current state of affairs means high uncertainty.
Time of India
2 days ago
- Business
- Time of India
ETMarkets Smart Talk: Next bullish phase for Indian markets likely after September 2025, says Samvitti Capital's Prabhakar Kudva
In this edition of ETMarkets Smart Talk, S Prabhakar Kudva, Director and Principal Officer at Samvitti Capital, shares his outlook on Indian equities amid ongoing market consolidation. Kudva believes the next major bullish phase for Indian markets is likely to begin after September 2025, following a period of digestion after two strong years of rally. He highlights the role of mid and small-cap stocks in driving growth, the resilience of domestic liquidity, and potential FII inflows as global dynamics shift. Kudva also discusses key sectors to watch and explains why he views the current phase as a stock picker's market. Edited Excerpts – Explore courses from Top Institutes in Select a Course Category Operations Management Leadership Management CXO MCA Design Thinking Others Technology Cybersecurity PGDM Healthcare Degree Data Analytics Public Policy healthcare MBA Product Management Finance Data Science Digital Marketing Data Science others Artificial Intelligence Project Management Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details Q) Markets are struggling in the first month of 2H2025. What is limiting the upside? A) I think we need to take a step back and look at the big picture. We are coming off two very good years (Mar'23 to Sep'24) in the broader equity market. What we are going through in 2025 is best described as a period of digestion or consolidation. In the interim, the markets have navigated elections, multiple wars, and most recently, the 'Trump tantrums'. Against this backdrop, the markets are doing just okay. That said, there is no major reason for any immediate large upside as earnings growth has been good but is already well priced in. Also, there is little fear of a large downside given the strong domestic liquidity and under-weight FII positioning. Q) The June quarter season has just begun – how do you see India Inc. faring in this quarter? Which sectors should investors watch out for? A) Typically, Q1 is a weaker quarter compared to Q4, so the first thing is we should avoid QoQ comparisons. Last year, Q1 was all about elections, followed by a low-growth Q2. This year, I expect both Q1 and Q2—and maybe even Q3—to enjoy a low base effect and deliver reasonably good growth overall. As has been the trend over the last few years, the action is likely to be in the mid and small-cap space, while large caps will provide more sedate returns overall. Q) Everyone says it is a stock pickers' market now and the days of easy money are over. What are your views? A) As mentioned earlier, we are now in a rangebound market after a bullish phase that lasted 18-24 months until Sep'24. This rangebound phase typically lasts around 12 months, so the next leg may start only after Sep'25 or so. Of course, this is just conjecture based on historical patterns. In this environment, only a few sectors will do well. One needs to identify these outperforming sectors and allocate to quality stocks during corrective phases. Q) SIP crossed ₹27,000 crore for the first time in June. What is boosting the momentum? A) The SIP momentum picked up post-Covid and has been continuing ever since. I believe the new generation of investors understands that significant wealth creation is possible only in equity markets. Many investors who started small in 2021 have done very well over the last four years and are consistently increasing their exposure. This looks like a secular trend, and we should not be surprised if SIP flows continue to rise and the numbers become truly staggering over the next decade. Q) FIIs are still not back in India completely. Are valuations or earnings acting as headwinds? A) I think it's neither valuations nor growth. FIIs have been under-weight on India over the last few years primarily because they've been doing so well in their home countries, especially with the Mag7 and big tech companies performing exceedingly well. There hasn't been a pressing reason for them to step out, particularly when most global markets struggled post-Covid. India, of course, has been an exception with strong growth. However, in terms of allocations, we're still bucketed with other Emerging Markets, and overall allocations to this segment were probably reduced. Also, the US dollar has been very strong during this period. It's only now, post-Trump, that the dollar weakness has begun, and as a result, emerging markets—including India—are starting to pick up. If this trend continues, we can expect FII allocations to India and other EMs to increase materially, something we've started to see in recent months. Q) Which sectors are likely to drive momentum in 2H2025? A) My focus has always been on growth. I believe sectors like Pharma, Auto Components, Defence, Power, Data Centres, EPC, Value Retail, and Wealth Management are likely to perform well. Q) Any sectors you think are overheated? A) We've seen a reasonable correction across the board over the last six months, so a lot of froth has been cleared out. I wouldn't say valuations are cheap, but at the same time, they're not overheated either—broadly speaking. Of course, on a stock-specific basis, there will always be pockets of over-valuation, but overall, I don't see much overheating at this point. Q) Despite recent regulatory steps, retail investors still account for 91% of the losses in the derivatives segment. What more can SEBI do to protect them? A) I believe the responsibility doesn't lie solely with SEBI but with the entire ecosystem. Investor education is crucial because, ultimately, if people are inclined to gamble, they'll find ways to do so outside of markets as well. That said, I'm not in favour of over-regulation as long as there's no misconduct, because excessive regulations can also hurt genuine players. It's a delicate balance, and SEBI has been doing an exemplary job in keeping our markets clean. That focus should continue.
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Business Standard
2 days ago
- Business
- Business Standard
Q1 early-bird results: Revenue, profit performance worst in 16 quarters
Q1 results indicator: One-time gains boost overall income Krishna Kant Mumbai Listen to This Article The early-bird results for the April–June 2025 quarter (Q1FY26) suggest a further weakening in demand in the economy, with India Inc increasingly depending on other and non-core income to drive profitability. Net sales (gross interest income for banks) of early-bird companies grew at their slowest pace in at least 16 quarters. Revenue slowdown, coupled with faster growth in operating expenses like employee costs and overheads, hit the bottom line. The combined profit before tax (PBT), excluding other income, contracted 10.3 per cent year-on-year (Y-o-Y) in Q1FY26, their worst showing since the Covid-19 pandemic.
