OPINION, P2 IDEA EXCHANGE MIND & GAMES Jobs: The make or break issue THE BUGS ARE COMING AND THEY ARE HUNGRY Gurcharan Das 'Modi didn’t sell reforms... We still reform by stealth, India grows at night when govt sleeps' Page 4 Climate change will make pests stronger and more numerous, stressing food resources. This will consequently result in more use of pesticides Page 10 ACROSS THE AISLE, P CHIDAMBARAM Vol 11 No. 27 Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM LEISURE GERMAN INNOVATION MUMBAI SUNDAY, SEPTEMBER 2, 2018 18 Pages, `10 DIVERSITY IN UNITY The big challenges of the 21st century will be global in nature as the world becomes a homogeneous entity, says Yuval Harari in his new book, 21 Lessons for the 21st Century Page 5 Now, banking at every doorstep July mop-up down to `93,960 crore with India Post Payments Bank due to rate cuts ModionSaturdaylaunchedthe payments bank of the Indian postal department that will take banking to the doorstep of every citizen through an unmatched network of post offices and almost 3 lakh postmen and ‘Grameen Dak Sewaks’.Modi said on the occasion that Jan Dhan gave bank accounts to the unbanked and now the India Post Payments Bank is taking the bank to their doorstep. India Post Payments Bank (IPPB) will be like any other bank, but its operations will be on a smaller scale without involving any credit risk. It will carry out most banking operations like accepting deposits, butcan’tadvanceloansorissue credit cards. QuickPicks ‘India will remain world’s fastest-growing economy’ Will offer 4% interest rate on savings accounts Can't advance loans or issue credit cards PM Narendra Modi and minister of communications Manoj Sinha during the launch of India Post Payments Bank in New Delhi on Saturday EXPRESS PHOTO: Praveen Khanna The freshly-minted paymentsbankwillacceptdeposits of up to `1 lakh, offer remittance services, mobile payments/transfers/purchasesand other banking services like ATM/debit cards, net banking and third-partyfund transfers. Communications minister Manoj Sinha said IPPB will be availablethrough650branches and 3,250 access points. Deposits in any account that exceed`1lakhwillbeautomaticallyconvertedintopostoffice savings account,he said. The government owns 100%inIPPB,whichwillleverage tech platforms and will use Aadhaar to open accounts, while a QRcard and biometrics willdriveauthentication,trans- Indian OTT players look at foreign shores for expansion PRINCIPAL ECONOMIC adviser in the ministry of finance Sanjeev Sanyal said on Saturday that the growth rate will be affected in next reading, but India would remain the world’s fastest growing major economy, as he countered scepticism over GDP growth rate, reports PTI. India’s economy grew at 8.2% in the April-June quarter of 2018-19, according to government data released on Friday. PAGE 18 ● The latest to expand overseas after Hotstar and Eros Now is Viacom18’s Voot,with launch plans for UK market SBI increases benchmark lending rate by 0.2% WHILE INTERNATIONALPLAYERS like Netflix and Amazon HOME, AUTO and other loans would become costlier as the country’s largest lender SBI on Saturday increased its benchmark lending rates or MCLR by 0.2%, a development followed by other lenders, reports PTI. The new rates are effective from Saturday. PAGE 18 ODD & EVEN ROHNIT PHORE actions, and payments. Grameen Dak Sewaks will be armed with smartphones and biometric devices to handle transactions. It will offer 4% interest rate on savings accounts. IPPB has teamed up with financial services providers like PNB and Bajaj Allianz Life Insurance for third-party products like loans ANIRBAN ROY CHOUDHURY Mumbai, September 1 PrimeVideo have been gaining traction in the Indian digital video ecosystem over the past few years, homegrown platforms are also coming into their own,with many expanding overseas. Consider Star India, which rolledoutitsOTTofferingHotstar in the US and Canada last year, or Eros Now, which is available in nine countries apart from India. The latest to join them is Viacom18, which is all set to roll out its digital Revenue models and subscription plans offered by OTTplayers in India Platforms Hotstar ALT Balaji Voot Zee5 Sony Liv Eros NOW Hoichoi platform Voot in the UK in November,2018. “If we look at overall international markets, there is a clear shift from television to digital and streaming services,” says Sudhanshu Vats, Min. charges `199 `180 N/A `99 `99 `49 `149 Yearly charges `999 `300 N/A `499 `499 `950 `399 managing director,Viacom18. “It is important that we are able to give our offerings both in television and on digital, in line with our philosophy to make Viacom18 screenagnostic.” Voot,currentlyan advertising-ledvideo on demand platform (AVOD) in India,plans to roll out a paywall in the countrybyearly2019.Its launch in the UK, however, will follow a clear subscription-led video on demand (SVOD) revenue model. The content provider has inked a revenue sharing telco partnership with Virgin to reach out to netizens in the UK (including the south Asian and Indian diasporas there,as well as British youth) with an offering that will be a mix of catch-up TV content and originals. Other players in the category — Sony LIV, Zee5 and Hotstar — too have a vast library of catch-up TV content, while Eros Now rides on its movie library. These platforms follow a freemium model where catch-up TV is available for free, while originals and live sports are put behind a paywall. Available through 650 branches and 3,250 access points and insurance. The Cabinet, earlier this week,approved an 80% hike in spending on IPPB to `1,435 crore,armingitwithadditional ammo to compete in the market with existing operators like Airtel Payments Bank and Paytm Payments Bank. Continued on Page 18 96,483 93,960 Jul PRIME MINISTER NARENDRA (in ` crore) Jun PRESS TRUST OF INDIA New Delhi, September 1 (GST) collections for July came in at `93,960 crore, down 2.5% from the receipts in the previous month and reversing the recent trend of a gradual month-on-month increase in the mop-up. The rate cuts for 88 items and 24 services announced on July 21 to give relief to MSMEs and customers did have an impact on the collections.Although there were only a few days in July after the rate reductions, consumers had deferred purchases in anticipation of the relief in the offing, analysts reckon. The overall slowdown in consumption due to monsoons,too,dented collections. The impact of the rate cuts could be more pronounced for August.Thegovernment’saverage monthly GST revenue for this fiscal now stands at a little over `9,4700 crore compared with around `90,000 in FY18. That means a shortfall of 20% for the Centre.As for the states, the compensation mechanism would ensure that their GST revenues this year are at least 14% above last year’s level. 95,610 Offer remittance services, mobile payments/ transfers/purchases, ATM/debit cards, net banking and third-party fund transfers THE GOODS AND Services Tax Comparison of gross GST revenue May Will accept deposits ofup to `1 lakh FE BUREAU New Delhi, September 1 1,03,459 Bank on IPPB 94,016 ● Prime Minister launches bank; blames ‘phone-a-loan’ for NPA crisis Apr WORDSWORTH GST COLLECTIONS FINANCIAL INCLUSION Mar-18 Lack of medical aid, a general scepticism about allopathic medicines and food fads make nutraceuticals extremely popular. But do we really need them and are all nutraceuticals beneficial? Page 7 PUBLISHED FROM:AHMEDABAD, BENGALURU, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI, PUNE 89,885 MIRACLE PILL? READ TO LEAD Average (2017-18) SPOTLIGHT FINANCIALEXPRESS ON SUNDAY The Suhring brothers elevate a plebeian cuisine to an award winning one Page 9 The collections being reported are as of the stipulated deadline; the actual receipts could turn out to be slightly higher due to delayed payments. “Since it would have taken some time for the market to pass on the benefit of reduced taxes, consumers would have postponedtheirdecisiontobuy expectingthebenefit,”thegovernment said in a statement. Continued on Page 18 71% surge in ITRs filed till August FE BUREAU New Delhi, September 1 AMONG OTHER FACTORS, the government on Saturday crediteddemonetisationfora jumpinincome-taxe-returns filed by taxpayers till August 31,which was the last day of the extended deadline. Duringthisperiod,thenumberof income tax e-returns filed grew by nearly 71% compared to the corresponding period lastyear. “Theincreaseinthenumber of returns reveals a marked improvement in the levelofvoluntarycompliance of taxpayers, which can be attributed to several factors, including impact of demonetisation, enhanced persuasionandeducationoftaxpayers,” the government said. Continued on Page 18 Gold strike Pranab Bardhan and Shibnath Sarkar win gold for India in the men's pair bridge event. India achieved its best-ever medal haul at the Asian Games 2018, with 15 golds and an overall tally of 69 medals. Report on Page 18 PTI Continued on Page 18 Floods drown buyer sentiment too as car sales dip Automakers portend subdued demand in September as well due to unauspicious Shradh period Passenger vehicles % change Maruti Suzuki -3.7 « Hyundai -2.8 M&M Honda Cars 28 2 « Tata Motors « -1.9 Commercial vehicles 26 Ashok Leyland 27 « Tata Motors « August were down nearly 1% year-on-year, monthly data released by automakers on Saturday suggested. This has beenattributedtoheavyfloods in Kerala and other states in thecountry.Withsalesdownin Julydue to high base effect and in August due to flood in some states, which dented demand, manufacturers are a worried lot as this time the festival season begins in October unlike September last year. With ShradhobservedinSeptember, a period which is considered DOMESTIC SALES « PASSENGERVEHICLE SALES in inauspicious for new purchases, demand is expected to be slow in September also. Manufacturers hope that the festival season of October and November will see perk in demand. If that doesn’t happen,theyearwillnotbegoodin termsofsales.Inshort,thefirst worryingsignsarecrossingthe minds of the manufacturers. Some players said that despatcheswere also slowduring August and might be the same in September because everybody will be storing for higher despatches to dealers during the festival months of October and November. The top four carmakers « FE BUREAU New Delhi, September 1 August 2017 August 2018 14,340 18,402 19,406 19,758 17,365 17,020 31,556 39,859 13,637 17,386 137,339 132,232 47,103 45,801 Source: Companies, PTI reported domestic sales of 2,16,193 units last month as against 2,18,188 units sold in August 2017. The state of Kerala witnessed unprecedented floods in August. Uttar Pradesh and Uttarakhand also received high rainfall during the monsoon season, thereby impacting vehicles sales. Passenger vehicle sales are down for the second consecutive month after July witnessed a 2.71% decline in the domestic car market. It was on account of a high base last year, when sales had spiked due to the GSTroll-out. Julywas the first time in nine months that passenger vehicle sales had declined. Passenger vehicle sales for MarutiSuzukiIndiaLtd(MSIL) were down 3.7% to 1,32,232 units in August as against 1,37,339 units in the same period last year. While MSIL’s passenger car sales dipped 1.4% y-o-y to 1,14,261 units last month,the utilityvehicles (UV), which include cars like the Brezza and S-Cross, sales were down 16.2% at 17,971 units in August 2018. For Hyundai Motor India Ltd (HMIL),the second-largest carmaker in India, domestic sales last month went from 47,103 units to 45,801 units, down 2.8% y-o-y. On the other hand, Tata Motors reported a 28% jump in its monthly sales on the back of strong demand for Tiago and Nexon models. Its sales grew from 14,340 units in August 2017 to 18,402 units last month. UV maker Mahindra and Mahindra (M&M) also reported a 2% increase in its domestic sales to 19,758 units. Honda Cars India reported a marginal decline in its domestic sales to 17,020 units in August. The company had sold 17,365 units in the domestic market in August 2017, HCIL said in a statement. The company also exported 601 units last month.“There was an impact of Kerala floods and heavy rains in many parts of the country, combined with GSTrelated high base effect of August 2017. We hope to recover quickly and keep growing strongly with rollout of attractive offers through the festive season ahead,” HCIL senior vice-president and director, sales and marketing,Rajesh Goel said. Continued on Page 18
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