Data recap: Summer drinks, hiring freeze

Compensation cess is levied on luxury and sin items such as aerated drinks,  (Photo: Bloomberg)
Compensation cess is levied on luxury and sin items such as aerated drinks, (Photo: Bloomberg)

Summary

  • Declining raw material prices are encouraging companies to make price cuts

Every Friday, Plain Facts publishes a compilation of data-based insights, complete with easy-to-read charts, to help you delve deeper into the stories reported by Mint in the week gone by. Declining raw material prices are encouraging companies to make price cuts. The Reserve Bank of India announced the withdrawal of 2,000 currency banknotes. Campus hiring is expected to see a slowdown in the coming months.

Bitter Sugar

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When the summer arrives, Indians seek relief in popular packaged summer drinks. However, many well-known drinks have sugar levels that could exceed our full-day limit with just a single pack, a Mint analysis showed. Indians already have a deep-seated love for sugar, and the average intake in cities such as Mumbai and Ahmedabad exceeds the healthy limit. The average intake is 18.7 grams and 20.2 grams per day among men and women respectively, a government survey showed.

Softening Prices

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Russia's invasion of Ukraine last year caused a surge in input prices for businesses, straining their finances. Companies passed on these costs to consumers, which dampened demand across products such as edible oils, cookies, and soaps. However, certain commodities are now cooling significantly. Several businesses are refraining from raising prices, and some are even cutting them, providing consumers some relief from high inflation, Mint reported.

Quick Exit

13.8%: That was the share of the 2,000 denomination in the total value of banknotes in circulation at the end of fiscal year 2021-22. The Reserve Bank of India decided last week to withdraw the denomination from circulation, asking banks to stop issuing the banknotes immediately. In a statement, RBI stated that the goal of introducing 2,000 notes was met once other denominations became available in sufficient quantities following demonetization in 2016.

Hiring Slowdown

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India's IT companies are likely to cut campus hiring by at least 40% due to strong bench strength, fewer new orders, and a lack of visibility into when the slowdown phase will end, an analysis by recruiter TeamLease Digital said. IT firms are likely to hire 155,000 students in FY24, down from the 230,000 recruited in the previous year and 600,000 in FY22. Recruiters studying talent demand and supply have warned that it is critical to continue hiring from campuses to gain cost leverage.

The Cash Rule

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Cash continues to dominate the Indian economy despite the soaring popularity of digital payments and UPI transactions, according to data shared by CMS Info Systems. An average ATM in India was replenished with 1.35 crore of cash a month in the FY23, up 10.1% from the previous year. The cash replenishments were stronger in the festive months and in the states of Karnataka, Chhattisgarh and Andhra Pradesh. CMS Info Systems has a 46% share in ATM cash management.

Meta Penalized

$1.3 billion: That's the penalty that Meta Platforms Inc was charged with by the European Union privacy regulators for sending users’ data to the US. Meta was given five months to suspend any future transfer of personal data and six months to stop the unlawful processing, including storage, in the US of transferred personal EU data. The tech giant noted that it would appeal to the Irish Data Protection Commission, which acts on behalf of the EU.

Changing Preferences

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A government panel recently recommended a ban on diesel-run four-wheelers by 2027 in large urban centres. The Centre’s Vahan database shows that the share of diesel cars was already declining. Nearly half of all cars registered in India were diesel-run a decade ago. But the trend began reversing in favour of petrol cars after diesel prices became market-linked in 2014. As of May 2023, the share of diesel vehicles has come down to 18%, and that of petrol vehicles has increased to 61%.

Chart of the Week: Use and Misuse

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A recent top court order on the Delhi government’s powers was nullified on 19 May by an ordinance issued by the Centre. In the 2020s so far, an average of 7.7 ordinances have been issued per year, higher than in the 2000s. However, this is still well below the rate that prevailed between the 1970s and the 1990s.

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