Best of the Week | New experiences and newer mistakes
- Latest Adani news, unusual career choice for IITians, and what happened to the Indian middle class?
Dear readers,
There comes a time in all our lives when we finally experience something we've been anticipating for ages. For me, that moment arrived last week when I embarked on my first journey to a foreign land—Thailand, to be precise.
As a 28-year-old who had never ventured outside India, the four-day trip to one of the world's most celebrated tourist destinations was nothing short of a revelation. The first thing that struck me upon stepping into Thailand was the sheer absence of crowds and traffic on the roads. As someone leaving my home country for the first time, I was amazed to see public places like bus stops, railway stations, and highways almost deserted.
Everything—from the vibrant culture to the exotic cuisine and the melodious language—was a novel experience for me. However, I did make the rookie mistake of not carrying enough Indian Rupees to convert into Thai Baht before leaving India. If you, like me, are a first-time international traveler footing your own bill, I highly recommend carrying sufficient cash, especially when visiting a country like Thailand. The withdrawal fee at ATMs there was quite steep; I had to pay an extra 220 THB with each transaction. This, coupled with the markup fee, made cash transactions in Thailand a pricey affair.
It's impossible to encapsulate all that I experienced on my first international trip in just a few words. Over the next few weeks, I hope to share more of my adventures and the lessons I learned along the way, right here in "Best of the Week", before I guide you to the finest of Mint's journalism from the week gone by.
🎓 A recent World Bank study covering six Indian states talks about the critical need for skill-based education in schools to capitalize on India's demographic dividend and meet development goals by 2047. The study reveals a significant gap between existing educational offerings and the rapidly evolving job market, shaped by factors such as automation, climate change and digitalization. Integrating skill education into the school curriculum is essential for preparing students for employment opportunities and enhancing India's competitive edge globally. N. Madhavan explains why giving skill education in Indian schools is a good idea.
💵 Ranjit Gupta, chief executive of Ocior Energy and former CEO of Azure Power, is among those indicted in the $250-million Adani bribery case. Azure is in the thick of the bribery scam. After resigning from Azure Power in 2022, under circumstances detailed in a November 20 complaint by US prosecutors, Gupta went on to establish Ocior Energy, which recently secured a significant investment promise from REC Ltd to produce green ammonia in Odisha. Ocior Energy has no revenue and limited staffing, yet it ambitiously plans to invest billions in green energy across regions from Egypt to India. These plans now face scrutiny as Gupta contends legal challenges in the ongoing Adani investigation, writes Varun Sood.
👨💼 The latest quarterly earnings have revealed a stark trend: urban India is facing some serious financial strains. Big names like Hindustan Unilever and Nestle India are seeing sluggish growth, with sales barely inching up, thanks to a shrinking middle class that’s tightening belts. The problem? Prices are up, and so are interest rates, making everyone think twice about how they spend their money. Interestingly, while the big cities are struggling, rural India seems to be holding up much better. Companies like Maruti Suzuki even reported growth in rural sales despite flat overall revenue. It's a tale of two markets, really. Urban areas, usually the heartbeat of consumption, are now the ones lagging behind, feeling the pinch from high food prices and less disposable income. In this Long Story, Abhishek Mukherjee writes about the consumption slowdown middle-class India is facing.
🦺 Last month, when standup comic Kunal Kamra highlighted issues with Ola Electric scooters, it sparked widespread customer complaints and a fiery response online. Amid this turmoil, the Central Consumer Protection Authority (CCPA) stepped in, issuing a show-cause notice to Ola Electric for violating consumer rights. Despite Ola Electric claiming to have resolved most complaints, CCPA escalated the matter with a class-action. Established in 2020, the CCPA aims to protect consumer rights but faces challenges due to its limited authority and overlapping roles with other regulatory bodies. While it has taken action against misleading advertisements and secured refunds for consumers, its ability to effectively manage and prosecute larger corporate offences remains constrained by legislative limitations and insufficient resources. Sowmya Gupta writes on how the CCPA’s hands are tied despite having limited powers.
🇨🇳 🛫 Despite easing tensions, India remains wary of resuming direct flights with China, which were halted in 2020 amid the Covid-19 outbreak and exacerbated by the Galwan clash between the two nations. The Indian security establishment cites unresolved national security concerns and a significant trust deficit as reasons for the continued suspension, Dhirendra Kumar and Manas Pimpalkhare report. This stance is part of a broader strategy to decrease reliance on Chinese goods and services, including bans on Chinese apps and tighter investment protocols. While resuming flights could benefit trade and reduce travel hardships for businesses, officials indicate that decisions will likely hinge on high-level diplomatic discussions.
📉 Following bribery charges involving key executives, including chairman Gautam Adani, Moody’s and Fitch downgraded their outlook for Adani group bonds from stable to negative. This mirrored an earlier move by S&P, highlighting concerns about the group's funding capabilities and rising capital costs, reports Gopika Gopakumar. Adani Green Energy’s stock dropped 7.3% after the downgrade. Moody’s has adjusted the outlook for seven Adani entities, while Fitch flagged potential downgrades for bonds linked to key facilities, citing increased funding costs and governance issues.
🎥 Actor Nayanthara's clash with Dhanush over using a snippet from their film for her documentary raises big copyright questions. Basically, Nayanthara wanted to include a brief clip from Naanum Rowdy Dhaan in a Netflix documentary about her life. Despite repeated requests, she claims Dhanush demanded payment for the footage, leading her to criticize the move publicly. Dhanush's team insists the footage is owned by his production company and has taken legal action to defend their copyright. Lata Jha spoke to experts who reminded everyone about the importance of clear contracts in films, making sure rights and permissions for using such content are spelt out, especially when it could affect future projects or portrayals in other media.
🤑 India’s edtech sector is snapping up IIT grads by the thousands, offering them salaries way above industry averages to teach aspiring engineers. Over the past five years, companies in the sector have hired 3,000-5,000 fresh or recently graduated IITians, drawn by starting salaries of ₹10-12 lakh that can soar to ₹1 crore with experience, dwarfing the average industry offers. This hiring spree is due in part to edtech’s need for high-caliber instructors who can draw students and reassure parents with their firsthand experience of cracking IIT entrance exams. Mansi Verma and Devina Sengupta report on the trend that reflects broader shifts in employment patterns within the sector.
💺 Flying has become an even more pricey experience these days. To help with that, the Centre is working on a comprehensive package for the aviation sector. Dhirendra Kumar and Manas Pimpalkhare report that these measures include tax concessions, reduced user charges, route optimization, and regulatory relaxations. Some relief with the aviation turbine fuel tax is expected, as current prices are about 60% higher than other hubs around India. The initiative also seeks to minimise procedural delays for airline licences and hiring foreign pilots.
👛 India's new tech and startup billionaires are steering their family offices away from traditional real estate investments, favouring stocks, private equity, startups, and alternative assets, including Reits and InvITs. Dipti Sharma reports on the shift, which reflects broader dissatisfaction with the decade-long slump in real estate returns up to 2022, low rental yields, and cumbersome regulatory and management challenges. The change in investment preferences is driven by the potential for higher and quicker returns from equities and private equity, with family offices increasing their stake in these assets significantly.
That's all for this week. I hope you have a pleasant weekend!
If you have any feedback, want to talk about food, or have anything else to say about our journalism, write to me at siddharth.sharma1@htdigital.in or reply to this mail. You can also write to feedback@livemint.com.
Best,
Siddharth Sharma
Community Editor
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First Published:30 Nov 2024, 06:54 AM IST
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