Global trade and tariff uncertainties​ can become catalyst for reforms in India: HSBC Research

New Delhi, (IANS): Global trade and tariff uncertainties could become a catalyst for reforms in India over the medium term and for growth results, the reforms must run deep, an HSBC Research report said on Tuesday.Potential US tariffs may have already become a catalyst for reforms like lowering import tariffs, opening up to regional FDI, fast-tracking trade deals, and making the Indian rupee more flexible."And India does not have to look too far for models to emulate. Its success in services exports has demonstrated the power of moving up the value chain, from basic (call centre services) to high-tech (professional services)," said the report.India's goods trade deficit narrowed sharply in February to $14.1 billion, from $23 billion in January.“The trade deficit tends to narrow in February but this time, it narrowed rather sharply to the lowest in more than three years,” the report mentioned.India's goods trade deficit narrowed to $14 billion and the services trade surplus rose to $18.5 billion, putting the overall trade balance in a rare surplus zone in February.A normalisation in...
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NPCI in talks to remove ‘pull transactions’ on UPI to reduce digital frauds

Mumbai, (IANS): In an effort to curb rising digital frauds, the National Payments Corporation of India (NPCI) is reportedly in early discussions with banks to eliminate ‘pull transactions’ on the Unified Payments Interface (UPI).Most frauds are happening through the pull method, and NPCI is exploring the possibility of removing this feature altogether to reduce fraudulent activities.A 'pull transaction' happens when a merchant sends a payment request to a customer, while a 'push transaction' occurs when a customer directly makes the payment using a QR code or other methods.By removing 'pull transactions', fraud cases could decline, but some bankers fear that genuine transactions may also be affected, potentially lowering efficiency, according to a report by NDTV Profit.However, NPCI, which operates retail payment and settlement systems in India, has not commented on this development yet.The discussions are still at an early stage, and a final decision on implementation has not been made yet, the report said.This development comes at a time when UPI payments are gaining immense popularity...
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With billions in ‘profit’ exempt from tax, changes to NZ’s charity rules are long overdue

Jirsak/Shutterstock Ranjana Gupta, Auckland University of TechnologyThe profit made on every breakfast bowl of weet-bix is tax exempt, giving Sanitarium Health Food Company, owned by the Seventh-day Adventist Church, an advantage over other breakfast food companies. But this could be about to change. Under current rules, New Zealand’s charities are allowed to run businesses as long as the profits are not for personal gain. This means the government gives up millions in tax revenue from charities across the government. In December, Finance Minister Nicola Willis proposed revising the tax rules for charitable organisations. The changes are set to be announced with this year’s Budget. According to Willis, there was about NZ$2 billion of “profit” in the charitable sector that was not subject to tax. My new research – to be published later this year – looks at the integrity and fairness of the taxation framework that gives exemptions to charitable organisations competing directly with the for-profit sector. Striking the right balance between supporting legitimate charitable activities...
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Mastercard plans to get rid of credit card numbers. We could be heading towards the end of cards

Antonina St/Shutterstock Gary Mortimer, Queensland University of Technology and Cassandra Cross, Queensland University of TechnologyMastercard has announced plans to remove the 16-digit number from their credit and debit cards by 2030 in a move designed to stamp out identity theft and fraudulent use of cards. The numbers currently used to identify cards will be replaced with tokenisation and biometric authentication In 2022, Mastercard added biometric options enabling payments to be made with a smile or wave of the hand. Tokenisation converts the 16-digit card number into a different number – or token – stored on your device, so card information is never shared when you tap your card or phone or make payments online. The first rollout of these numberless cards will be through a partnership with AMP Bank, but it is expected other banks will follow in the coming 12 months. Why card security is important There is nothing quite like the sinking feeling after receiving a call or text from your bank asking about the legitimacy of a card transaction. In 2023-2024 the total value...
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SoftBank in talks to invest $25bn in OpenAI 

The investment follows a SoftBank taking a $1.5 billion stake in OpenAI last yearJapanese conglomerate SoftBank reportedly in discussions to invest between $15 billion and $25 billion in OpenAI, according to a recent report from the Financial Times.If it goes ahead, the investment will make SoftBank OpenAI’s largest financial backer and would significantly expand the Japanese company’s presence in the AI sector.“The talks are ongoing and the amount that SoftBank could invest in primary equity into OpenAI is a moving target,” said an anonymous source.In addition to this potential investment in OpenAI, SoftBank has already committed $15 billion to Stargate, recently announced a joint venture between involving Oracle, OpenAI, and SoftBank.The Stargate Project is a $500 billion AI infrastructure initiative to build advanced US-based AI data centres. Announced at the White House last week, it aims to invest $500 billion over the next four years to build new AI infrastructure in the US, starting with deploying $100 billion immediately.SoftBank’s CEO Masayoshi Son is the chairman of the joint...
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India’s fruit and vegetable exports surge 47.3 pc in last 5 years

New Delhi, (IANS): The financial assistance schemes of Agricultural and Processed Food Products Export Development Authority (APEDA) have helped India’s fruit and vegetable exports surge by 47.3 per cent in the last five years, according to the government.According to the Ministry of Commerce and Industry, the exports of fresh fruits and vegetables reached 123 countries in FY2023-24.In the last three years, Indian fresh produce entered 17 new markets, some of which are Brazil, Georgia, Uganda, Papua New Guinea, Czech Republic, Uganda and Ghana, etc.This has been achieved through a host of measures such as participation in international trade fairs, actively pursuing market access negotiations and organising buyer seller meets, etc, according to the ministry.The Department of Commerce, through APEDA, provides financial assistance to its member exporters of APEDA from across the country, for export promotion of its Scheduled products, including for fruits and vegetables, under Agriculture and Processed Foods Export Promotion Scheme of APEDA for the 15th Finance Commission Cycle (2021-22...
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Sweden is a nearly cashless society – here’s how it affects people who are left out

fizkes/Shutterstock Moa Petersén, Lund University and Lena Halldenius, Lund UniversityAround the world, cards and apps are the default way to pay – but nowhere is the transition away from cash more obvious than in Sweden. The Bank of Sweden notes that the amount of cash in circulation in the country has halved since 2007. Part of this is due to a unique Swedish law that prioritises “freedom of contract” above any legal requirement to accept cash. In other words, it is up to businesses – including banks – whether they take cash. Public transport, stores and services typically do not accept cash as payment, and there is no infrastructure for paying bills over the counter. The transition to cashlessness accelerated when a group of banks created the mobile payment app Swish in 2012. By 2017, Sweden was using less cash than other European countries. Today, more than 80% of the population has a Swish account. For most Swedes, the cashless economy is swift and convenient. As long as you have a bank account and can access the technology, you probably live a cashless life already. But...
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Hambantota International Port grows by 22% in 2024

Luxury cruise liner entering the portThe Hambantota International Port (HIP) has achieved an impressive growth rate of 22% in 2024, matching its performance from the previous year.With its sights set on even higher numbers in 2025, the port is implementing upgrades to its infrastructure, including the introduction of gantry and yard cranes in the container yard.“These enhancements are part of HIP’s strategy to meet the growing demands of the shipping and logistics markets while positioning itself as a key player in the Indian Ocean region,” HIP said in a statement.The port’s bulk and break-bulk cargo sectors saw remarkable progress in 2024. During the first half of the year, volumes rose by 134% compared to the same period in 2023, increasing from 236,012 metric tons to 552,297 metric tons. This surge was largely attributed to the recovery of Sri Lanka’s construction sector, which collapsed in 2022, leading to a spike in cement imports. HIP has also cemented its reputation as a hub for bulk cargo distribution in Sri Lanka, with further growth expected by year-end.Gas operations at the...
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The LA fires have prompted a reckoning for the insurance industry – Australian premiums could soar as a result

Paula Jarzabkowski, The University of Queensland; Katie Meissner, The University of Queensland; Rosie Gallagher, The University of Queensland, and Tyler Riordan, The University of QueenslandA series of wildfires in Los Angeles County have caused widespread devastation in California, including at least 24 deaths and the destruction of more than 12,000 homes and structures. Thousands of residents have been evacuated, and the danger isn’t over yet. Some estimates have put the cost of the damage and economic loss at between A$400 billion and A$450 billion, of which only A$32 billion is insured. This is a stark illustration of the insurance protection gap – the difference between insured and uninsured losses. As California rebuilds, it means the bill for uninsured losses will fall on the property owners themselves and public funds. These catastrophic fires should ring alarm bells in Australia, where global ripple effects are likely to force up our own insurance premiums. Most importantly, we must grapple with and prepare for the grim prospect of our own similar disaster. Uninsurable...
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The economics of ticket scalping

Event promoters are underpricing and undersupplying tickets. Shutterstock Paul Crosby, Macquarie University and Jordi McKenzie, Macquarie UniversityAllegations that tickets to recent AFL and NRL finals matches were being resold for up to three times their initial price raises questions of why ticket scalping happens, and whether anything can be done about it. To an economist, the existence of a secondary market - where tickets are resold - is a sign that they have been undersupplied, underpriced or a combination of the two. Event promoters, for example, are incentivised to sell as many tickets as possible so they can profit off sales of food, drinks and other concession stand items. This leads them to price tickets low. Scalpers thrive off such conditions as it presents them with an arbitrage opportunity (the chance to make a profit from buying and selling the same thing) that would never have existed in a world where tickets were plentiful and priced in line with demand. Online reselling platforms also put upward pressure on prices by making tickets easier to re-sell, while...
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What’s a trade war?

Philip Lange/Shutterstock Lisa Toohey, UNSW SydneyThis article is part of The Conversation’s “Business Basics” series where we ask experts to discuss key concepts in business, economics and finance. Thanks to US President-elect Donald Trump, the term “trade war” is back in the headlines. Trump campaigned successfully on a platform of aggressive trade policies, and since being elected, has only doubled down on this posture. On Tuesday, he threatened Mexico and Canada with new 25% tariffs on all goods, and a separate “additional” 10% tariff on China “above any additional tariffs”. While the term might conjure up dramatic images of battlefield tactics, the real economic impact of any looming trade war is likely to hit much closer to home – both for Americans and the rest of the world. Global supply chains are deeply interlinked. That means a major trade war initiated by the US could push up the prices of all kinds of goods – from new cars to Australian-inspired avocado on toast. To understand where we might be headed, it’s worth unpacking the metaphor. What exactly is a trade...
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FDI flow into India from Gulf countries surges to $24.54 bn in 12 years

New Delhi, (IANS) FDI flows into India from the Gulf Cooperation Council countries between September 2013 to September 2024 surged to over $24.54 billion, which is an 8-fold increase compared to the corresponding figure of $3.046 billion FDI that came from these countries during the period between April 2000 and September 2013, according to data compiled by the Commerce and Industry Ministry.The figures also show that as much as 89 per cent of the FDI flows into India from the GCC countries came in the last 10 years, reflecting the strengthening economic ties between India and the Gulf region.With Kuwait currently chairing the Gulf Cooperation Council (GCC), Prime Minister Narendra Modi’s visit to the emirate is expected to bolster India's engagement with the influential bloc, comprising Bahrain, Oman, Qatar, Saudi Arabia, the UAE, and Kuwait.PM Modi on Saturday afternoon arrived in Kuwait, becoming the first Indian Prime Minister to visit the Gulf nation in 43 years.He said the Kuwait Investment Authority has invested more than $10 billion in India, reinforcing the financial ties between...
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40 Indian startups secure over $787 million in funding this week

New Delhi, (IANS) In a significant week for the Indian startup ecosystem, nearly 40 startups secured more than $787 million in funding as the economy remained resilient amid the geo-political conditions.These deals included 16 growth-stage deals and 23 early-stage ones.This is a massive jump from $250 million raised cumulatively across 18 deals last week.Cloud kitchen unicorn Rebel Foods led the funding with $210 million led by Temasek in a mix of primary and secondary share sales. Rebel Foods is planning for a public listing by next year.Fintech startup Mintifi raised a total of $180 million in its Series E round led by TVG and Prosus. Mintifi plans to deploy the fresh capital to expand its footprint across key sectors.Meanwhile, CarDekho SEA, the Southeast Asia business unit of digital automotive solutions provider CarDekho Group, raised its first external funding round of $60 million.The round was led by prominent growth and private equity investors Navis Capital Partners (Navis) and Dragon Fund. Following this round, the cumulative fundraise now stands at more than $100 million.Haber,...
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Softbank to invest $100bn in US AI

The cash injection follows a $50 billion investment in 2016 SoftBank Group, led by CEO Masayoshi Son, has announced plans to invest $100 billion in the US over the next four years, a move that will focus on advancing AI and its related infrastructure. This investment aims to create 100,000 new jobs. Son made the announcement alongside President-elect Donald Trump, who praised the deal as a strong sign of confidence in the future of the US economy. Trump said that the investment shows “monumental confidence in America’s future.” Trump welcomed the new investment as part of his broader strategy to boost the US economy and tackle inflation in his second term. “It will help ensure that artificial intelligence, emerging technologies and other industries tomorrow are built, created and grown right here in the USA,” he continued. The new pledge echoes a similar commitment made in December 2016, when Son promised a $50 billion investment and 50,000 jobs. While that money was deployed, the impact on job creation was unclear. Although the $100 billion is set to be deployed over the next four...
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Indian hospitality investment market projected to reach $413 million in 2024

New Delhi, (IANS): Buoyed by overall infrastructure growth and expanding commercial market, the hospitality investment sector in the country showed robust growth in the first half this year, according to a new report.Hotel investment transactions reached $93 million and are expected to reach $413 million by year-end — a 22 per cent increase compared to last year, according to latest data from JLL Hotels and Hospitality GroupTop hotel companies led by contributing 44 per cent of the total transaction volume. It was followed by owner-operators at 30 per cent and high-net-worth individual (HNIs), family offices, and private hotel owners at 26 per cent.According to the report, the positive momentum is set to continue throughout the second half of the year.Key markets, including Mumbai, Hyderabad, Pune and Chennai, remain dominant, accounting for 78 per cent of the projected transaction volumes.Tier 2 and 3 markets are likely to contribute the remaining 22 per cent.Notably, JLL has already facilitated two significant transactions at the onset of the second half of 2024, comprising an operational...
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India’s medium-term outlook remains positive amid strong growth: World Bank

New Delhi, (IANS): The Indian economy continues to grow at a healthy pace despite challenging global conditions, a World Bank report said on Tuesday, adding that the country's medium-term outlook remains positive.Amid tough external conditions, the country remains the fastest-growing major economy and grew at a rapid pace of 8.2 percent in FY23/FY24.Growth is forecast to reach 7 per cent in FY24/FY25 and remain strong in FY25/FY26 and FY26/FY27, said the World Bank.With robust revenue growth and further fiscal consolidation, the debt-to-GDP ratio is projected to decline from 83.9 per cent in FY23/24 to 82 per cent by FY26/27. the current account deficit is expected to remain at around 1-1.6 per cent of GDP up to FY26/FY27, according to the World Bank’s latest India Development Update (IDU).“India’s robust growth prospects along with declining inflation will help to reduce extreme poverty,” said Auguste Tano Kouame, World Bank's Country Director in India.The country can boost its growth further by harnessing its global trade potential. In addition to IT, business services and pharma...
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The importance of saving and investing

Consumer EducationYour financial wellbeing starts with financial literacy. The more you know, the better equipped you are to plan and manage your finances.AVBOB proudly brings you Mutual Wellness in 60 Seconds, a series on financial wellness matters, and all things ‘mutual’.As Africa’s largest mutual society, AVBOB takes your financial health seriously.In the video below, we look at the importance of saving and investing.Saving and investingWhether it’s being prepared for life’s challenges or reaching your financial goals, savings can assist to make things happen.Despite tough economic conditions, you don’t have to give up your dreams of financial stability, quality education, a well-earned holiday or an emergency fund. The secret to successful investing is to start small.You can always increase the amount you invest. However, the key is to simply start… the sooner the better.Did you know that AVBOB offers 5-year and 10-year investment accounts that let you save from as little as R250 per month? Over and above the interest that you will receive, you will also be eligible to get bonuses...
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