SoftBank’s stalled Indian sale defies logic 6 Jul 2017 Indian e-commerce firm Snapdeal rejected a $850 mln bid from rival Flipkart. That's well below a peak valuation of $6.5 bln, so backers like the Japanese firm will suffer. But buyers are scarce, and the price will only go down. Holding out for a unicorn-style $1 bln is a mistake.
Overhaul pits taxman against Indian ingenuity 3 Jul 2017 The rollout of a nationwide goods and services levy has been surprisingly smooth. The real prize would be shrinking the informal economy. Yet citizens have circumvented Prime Minister Modi's previous big reforms. That makes it too soon to hail GST a success.
India’s fintech marvel acquires an Orwellian tinge 26 Jun 2017 Biometric IDs have cut corruption and helped villagers get bank accounts. But the database may also hand too much power to the state, or hackers. Limiting its mandatory use, and introducing a data-protection law, will help retain faith in a system that helps speed up development.
Markets call Trump’s bluff with Indian IT rally 23 Jun 2017 The value of the top outsourcing firms has risen about 9 pct, or $12 bln, since the election of U.S. President Donald Trump. Investors have reason to doubt his hard talk on immigration, and to believe Premier Narendra Modi can help his counterpart see the mutual benefits.
India’s $1.3 trln housing boom has a solid frame 22 Jun 2017 Developers are turning their attention from luxury to cheap housing, as a raft of subsidies and tax incentives boosts demand. A sustained uptick could provide a fillip to the economy. Investors are betting politicians will play their part and keep land in supply.
India’s RBI boldly pulls trigger on bad loan mess 14 Jun 2017 The central bank will order lenders to tip 12 companies into bankruptcy. They account for 25 percent of the nation's total bad loans. That will be a big test for a new insolvency regime. Still, it shows the RBI's determination to clean up the shambles and defend its credibility.
Modi’s India can ride out giant tax reform 13 Jun 2017 The nation is ill-prepared for the July 1 rollout of a fiddly new goods and services tax. Yet Premier Modi’s recent money experiment shows India can handle significant disruption. And for all its flaws, the tax overhaul will smooth the way to more efficient, less corrupt economy.
Trump officially becomes Indian IT business risk 9 Jun 2017 The $21 bln outsourcer Wipro named the U.S. president high up in a list of risk factors for investors. It's the first strong warning in print, and it hammers home the particular vulnerability of Wipro's industry to Western protectionism – and the shortage of options to counter it.
No one told India’s banks about fee collusion 6 Jun 2017 The OECD is bashing bankers from Wall Street to China for high IPO fees. Meanwhile, advisers may pocket just one rupee for selling up to $2.3 bln of State Bank of India shares. It’s not much better working for private issuers but at least the overall fee pot is rising.
Ambani dials up the pain in sibling rivalry 30 May 2017 An upstart telecom operator led by India's richest man, Mukesh Ambani, has hammered the industry. Younger brother Anil's RCom has been hit especially hard. Even after two planned deals, the group’s finances may still look rickety. New Delhi might offer a little relief.
Indian banks pile up risks with shock absorbers 25 May 2017 Lenders have pumped out more than $7 bln of contingent bonds that are written down if capital falls short. But implicit state support means investors are ill-prepared for losses. As some banks edge close to missing coupons, it is easy to imagine a system-wide freakout.
Indian yogi shows power of local consumer kings 24 May 2017 Baba Ramdev says his group Patanjali doubled sales last year, making it bigger than the local arms of Colgate and GSK. A hand from India's ruling party may have helped. But his success also underscores how emerging markets consumers are increasingly sticking with national brands.
India’s RBI risks a reputational downgrade 23 May 2017 The central bank may pick credit agencies to rate stressed loans, and help pay for the job. It is a bid to stop borrowers shopping for good scores. That could force agencies to adapt. But the idea may lead the regulator further into commercial decision-making.
SoftBank tests India’s taste for foreign finance 18 May 2017 The Japanese company is investing $1.4 bln into the parent of Paytm, India's top digital payments provider. The trick will be to square it with rules requiring local control of such businesses. Luckily, China's Jack Ma, an existing investor, is an expert in pushing boundaries.
Vodafone shapes up after corporate sprawl 16 May 2017 The UK mobile operator expects better growth after problems in India dragged it to a 6.1 bln euro loss. Rivals have made big bets on TV while Vodafone has grappled with past geographic expansion. It’s managing the spread, but may still be on the wrong side of industry trends.
India’s Narendra Modi has many stripes 15 May 2017 The prime minister enjoys huge support for his bid to clean up the country. But he now looks more populist than pro-market – and in no hurry to push through difficult reforms. Modi is unpredictable and it is not clear what tops his agenda: development, Hinduism, or power itself.
Made-in-India market boom has an enduring quality 12 May 2017 Big inflows into domestic mutual funds amid Premier Narendra Modi's corruption crackdown are driving a structural shift in the equity market. That makes stocks less reliant on fickle foreign money. The resulting valuations look rather stretched - but may nonetheless prove sticky.
India unsheathes new weapon in bad debt fight 5 May 2017 The government has granted the Reserve Bank of India new powers to force lenders to push errant borrowers into bankruptcy. That puts extra pressure on state banks to finally clean up their soured loans. Given the failure of more refined methods, the bludgeon is welcome.
India’s Minister for Everything poses a problem 3 May 2017 Finance Minister Arun Jaitley also oversees defence and corporate affairs. Rolling out a giant tax reform, tackling bad debt, and managing military spending is too much for one person. It reflects a talent crunch in New Delhi as much as the playbook of a strongman ruler.
Indian IT torn between job-hungry world leaders 2 May 2017 Infosys plans to hire 10,000 Americans over two years. That makes sense. Outsourcers are expanding services that require more face-time with clients and U.S. visas may become harder to obtain. But good news for President Donald Trump is bad for Indian premier Narendra Modi.