In partnership with

Good morning. In today’s edition — freebies like the Ladki Bahin Yojna aren’t good for India’s fiscal burden; banks are reviewing their exposure to the Adani Group; and aviation body Directorate General of Civil Aviation (DGCA) pulls up Akasa Air.

JANUS VIEW

Election Freebies Are A Risk To India’s Economy: Lessons From Maharashtra 

The principal development this week has been the consolidation of the BJP-led National Democratic Alliance’s political authority, as manifested by its resounding victory in the Maharashtra assembly elections. While the Rashtriya Swayamsevak Sangh helped with mobilising votes, a cash transfer scheme for women called the Ladki Bahin Yojana seems to have also worked its magic on Maharashtra voters. 

While cash doleouts by governments or parties to win votes aren’t new, non-merit subsidies to curry favour with the voters add to the nation’s fiscal burden. The trouble is that Ladki Bahin, having established itself as a vote winner in Maharashtra, is poised to spread to other states. 

PODCAST

The Markets Demonstrate Their Weakness

On Episode 445 of The Core Report, financial journalist Govindraj Ethiraj talks to Bjarne Schieldrop, Chief Analyst of Commodities at SEB Research as well as Tamal Bandyopadhyay, Consulting Editor at Business Standard.

• The markets demonstrate their weakness, diving on external cues

• India’s trade minister says to wait till the Trump administration comes in before jumping the gun

• Where are oil prices going now as war tensions rise again?

• Another central bank led gold rush has started off

• Are unsecured loans flowing into the stock market?

MESSAGE FROM OUR PARTNER

We put your money to work

Betterment’s financial experts and automated investing technology are working behind the scenes to make your money hustle while you do whatever you want.

Learn more

CORE NUMBER

Rs 3.38 lakh crore

This is the total amount of exposure that India's largest public sector bank, the State Bank of India (SBI), has to the Adani Group. Other Indian banks that have lent to the conglomerate are also reviewing their exposure and credit policies following the US indictment of Chairman Gautam Adani on bribery charges, Reuters reported on Thursday.  The banks are examining whether they need to tighten their due diligence when offering new loans to the Adani Group. The US Securities and Exchange Commission (SEC) indicted Gautam Adani on November 20 on charges of orchestrating a $250 million bribery scheme.

FROM THE PERIPHERY

—🛬 The DGCA has issued a notice to Akasa Air for failing to provide corrective training to a pilot involved in a hard landing incident in March. The incident involved an Akasa Air flight from Bagdogra to Bengaluru, where the aircraft bounced upon touchdown. The pilot attempted a second landing but ultimately proceeded with the initial landing. This notice follows a Rs 30 lakh fine imposed on Akasa Air last month for alleged non-compliance with pilot training regulations. A spot inspection at the airline's Gurgaon headquarters in May led to the issuance of a show-cause notice. 

—☎️ Telecom operators are urging the Department of Consumer Affairs (DoCA) to implement draft guidelines aimed at curbing spam calls and messages. These guidelines propose holding the source of such communication accountable, including individuals and entities like banks and real estate agents. Currently, telecom service providers are often held responsible for spam calls, despite being non-intrusive intermediaries exempt from liability under the Information Technology Act, 2000. The proposed guidelines would shift the responsibility to the actual sources of spam, regardless of the platform used

—🚴 The gig economy in India has significant potential, with the capacity to create 90 million jobs and contribute 1.25% to GDP by 2030, according to a report by the Forum for Progressive Gig Workers. However, concerns persist about the unfair working conditions faced by gig workers on digital platforms. A recent report by Fairwork India evaluated 11 platforms, including major players like Swiggy, Zomato, Flipkart, and Amazon, against five principles: fair pay, conditions, contracts, management, and representation. The findings were concerning, with no platform meeting all the criteria across these principles. This highlights the urgent need for improved social security regulations to ensure fair treatment and working conditions for gig workers in India.

—🍿 It isn't a great time for movie theatres in India. Not only have they been unable to get the number of footfalls they would pre-pandemic, but malls — where many of India’s multiplexes are situated — are likely going to reduce the spaces given to them. The Economic Times reported that mall developers are planning to reduce the space given to multiplexes in their upcoming projects. The report highlighted that malls used to get 10% of their footfall from cinemagoers which has now reduced to 6-7%. India’s largest multiplex chain PVR Inox has been struggling to make money from films. While 2023 had seen some big films bringing audiences back to the theatres, 2024 hasn’t been so lucky for the cinema business. 

SPONSORED

• TheWhiteBox by Nacho de Gregorio is the newsletter to stay ahead of the curve in AI. Subscribe

• Forward Future AI gets you AI-Ready: News, Education, and Community. Subscribe

• TechInsights AI Newsletter explore AI's full spectrum: trends, tech, policies, funding, innovations, and business impacts. Subscribe

SUPPORT THE CORE

Dear Readers,

Some of you have written to us expressing your intent to contribute to The Core’s journalism. While we currently do not have a subscription or membership plan, you can still support us by clicking the link below.

Another way to support The Core is by sharing this newsletter with like-minded people in your communities, colleagues, friend and family.

Was this email forwarded to you? Subscribe