OPINION, P6 NATION, P5 BACK PAGE, P14 EDITORIAL INCOME INEQUALITY TALKING TOUGH Subbarao concerned over 'uneven' economic recovery amid Covid 'Small' groups don't rule the world: China cautions G7 Despite exports-,agricheer,meaningful rebound still distant Variants of SARS CoV-2 like Delta make a case for rigorous genomic tracking and investing in Covid vaccine R&D NEW DELHI, MONDAY, JUNE 14, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 89, 14 PAGES, `8.00 (PATNA `8.00, RAIPUR `8.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E IN THE NEWS Delhi unlock: Restaurants to reopen with 50% capacity UNDERTHE phased unlock process, reopening of restaurants with 50% capacity and one weekly market per municipal zones will be allowed from June 14, chief ministerArvind Kejriwal said on Sunday, reports PTI in New Delhi. However, certain activities and services like schools and colleges, political and festival gatherings, etc, will remain closed, he said. FPIs put `13,424 cr in Indian markets in June so far OVERSEAS INVESTORS pumped in a net `13,424 crore so far in June as risk-on sentiment improved with declining Covid-19 cases, reports PTI. Depositories data showed that foreign portfolio investors (FPIs) invested `15,520 crore in equities during June 1-11. Four IPOs to hit mkts this week; cos eye `9,123 cr THE IPO market is getting back on track after a lull of two months, with four companies launching their initial share-sales this week to raise `9,123 crore collectively, reports PTI. INDIA-EU FTA SATCOM SPECTRUM Talks to resume on realistic note India's exports to the EU in FY21 Both sides to focus on ‘low-hanging fruits’, before switching to contentious matters $41 bn Vodafone Idea sides with Jio, BIF cites global practice of ‘right-to-use’ India's imports from the EU last fiscal $39 bn BANIKINKAR PATTANAYAK New Delhi, June 13 AS INDIA AND the European Union (EU) prepare to resume formal negotiations for a proposed free trade agreement (FTA) after a gap of eight years, both the parties could focus on “low-hanging fruit” first, before switching to contentious matters that had hampered talks earlier, a source told FE. “The idea is to first try and forge consensus where it’s easy to achieve this. Even if both the sides can hammer out an early-harvest deal before a full-fledged FTA,that would be anencouragingsign. “Otherwise,itwould be like back to square one,”he said. Government officials are also studying the EU’s recent investment agreement with China and its FTA with Vietnam for meaningful negotiations. Preparatory work for the next round of negotiations is in full swing, US President Joe Biden holds a news conference at the end of the G7 summit, at Cornwall Airport Newquay, in Britain, on Sunday REUTERS Contentious issues ■ EU wants India to slash duties on auto, alcohol and cheese, and grant automatic GI recognition ■ India's demands include greater access for its skilled professionals Way forward ■ Experts say a price said a senior official. After 16 rounds of talks between 2007 and 2013, formal negotiations for the FTA were stuck over stark differences, as the EU insisted that Indiascraporslashheftyimport duties on sensitive products. Continued on Page 2 PRESIDENT JOE BIDEN on Sunday said the United States had restored its presence on the world stage as he used his first overseas trip since taking office to connect with a new generation of leaders from some of the world's most powerful countries and more closely unite allies on addressing the coronavirus pandemic and China's trade and labour practices. Ashewrappedthree daysof what he called “an extraordi- narily collaborative and productive meeting”at the Group of Seven summit of wealthy democracies, Biden said there was “genuine enthusiasm” for his engagement. “America's back in the business of leading the world alongside nations who share our most deeply held values,” Biden said at a news conference before leaving Cornwall to visit Queen Elizabeth II at Windsor Castle.“I think we've made progress in reestablishing American credibility among our closest friends.” Continued on Page 2 G7 to provide 1bn vaccines to poor countries by end-2022 PRIME MINISTER Boris Johnson on Sunday marked the conclusion of the UK-hosted G7 Summit in Cornwall with the announcement that world leadershavepledgedover1 billion doses of Covid-19 vaccines for the world's poorest countries by the end of nextyear. —PTI AMID THE GROWING traction ofsatellitecommunication(Satcom) services and global tech majors evincing interest in the Indianmarket,incumbenttelecom players seem to differ on how to allocate spectrum for such services. While Bharti Airtel has maintained silenceon the issue of spectrum allocation for Satcomservicesbynottakingacategorical position either for auctions or against it, Reliance Jio and Vodafone Idea are batting forauction of spectrum. Broadband India Forum, an association of technology players like Google, Hughes, etc, is opposed to auctions and feels that since spectrum forSatcom isnotexclusivetoanoperatoras is the case with terrestrial spectrum used for mobile services, auctioning makes no sense. “World over, satellite spectrum is authorised for'right-touse'byalladministrationsandis FE BUREAU Mumbai, June 13 was 2% higher in FY20 over FY19, as per data released by RBI. Continued on Page 2 Full story on Page 2 FY21* FY19 FY20* -3 -6 75 63 60 45 30 30 24 12 11 15 0 FY18 12 13 *of 15 major states reviewed by FE the last financial year, up 2% on year,compared with a negative growth of 6% recorded in FY20.Of course,the aggregate capex growth of all states NCLT sets up monitoring panel for DHFL THE MUMBAI BENCH of NCLT has ordered constitution of a monitoring committee for DHFLuntilPiramalGroup’sresolutionplanisimplemented.In a written order made public on Sunday, NCLT said 7-member monitoring committee would comprise DHFL administrator, threerepresentativesfromCoC, twomembersfromthesuccessful resolution applicant (PCHFL), and an observer cum permanent invitee. Borrowings Tax revenues FY17 15 10 5 0 -5 -10 15 FY21* 2 FY21* FY20 Capex FY19 30 20.3 20 13 10 2 0 -10 -15.5 -20 FY20* STATE GOVERNMENTS HAVE acquitted themselves well in arresting an anticipated decline in capital expenditure in FY21, despite an unprecedented fall in tax revenues over two successive years and a pressing need to step up revenue spending, especially on healthcare, due to the pandemic. According to data gathered by FE of 15 major states, they reported combined capex of `3.26 lakh crore in (Growth, %, y-o-y) FY18 States’ ﬁnances FY17 PRASANTA SAHU New Delhi, June 13 FY19 US back in the business of leading the world, says Biden; India natural G7 ally: Modi KIRAN RATHEE New Delhi, June 13 ● INSOLVENCY March spending binge salvages states’ capex in 2020-21 FY18 'OPEN ECONOMIES' JONATHAN LEMIRE, AAMER MADHANI & ZEKE MILLER Newquay (England), June 13 threshold can be set for slashing duties on alcohol ■ Similar thresholds can be set for dairy and auto; but it will still be difficult for India to accept CAPITAL FORMATION FY17 Jio makes a pitch for auction, Bharti tight-lipped ● POOR RESPONSE QuickPicks At $16.5 billion, Byju’s India’s most valued startup BYJU’S HAS dethroned Paytm to become the country’s most valuable startup after it secured close to $350 million in fresh funding from a clutch of investors including UBS Group, Blackstone, Abu Dhabi state fund ADQ , Phoenix Rising and Zoom founder & CEO Eric Yuan. PAGE 12 Ruchi Soya files FPO document to raise up to `4,300 crore EDIBLE OIL firm Ruchi Soya, owned by Baba Ramdev-led Patanjali Ayurveda, has filed draft document with Sebi to launch a follow-on public offer (FPO) for raising up to `4,300 crore. PAGE 2 Pension scheme for low earners seems to unravel Waning interest SURYA SARATHI RAY New Delhi, June 13 PMSYM enrolment (per day) FRESH ENROLMENTS UNDER the voluntary, central-sector Pradhan Mantri Shram Yogi Maandhan (PMSYM) scheme that guarantees a monthlypension of `3,000 from the age of 60 years for domestic workers, rickshaw pullers and other low earners have been dipping fast and may soon be down to zilch. The seeming unravelling of the scheme can be attributed to 4,361 Feb 15March 31, 2019 61,617 356 2019-20 2020-21 Source: Labour ministry 150 2021-22* *Till June 10 income loss suffered by these workersduetothepandemic. Continued on Page 2 GLOBAL INFLATION Out-of-control shipping costs fire up prices THE SKYROCKETING PRICE of shipping goods across the globemayhityourpocketbook sooner than you think — from that cup of coffee you get each morning to the toys you were thinking of buying your kids. Transporting a 40-foot steel container of cargo by sea from Shanghai to Rotterdam now costs a record $10,522, a whopping 547% higher than the seasonal average over the last five years, according to Drewry Shipping. With ILLUSTRATION: ROHNIT PHORE ALEX LONGLEY, CATHERINE BOSLEY & DEIRDRE HIPWELL June 13 upwards of 80% of all goods trade transported by sea, freight-cost surges are threatening to boost the price of everything from toys, furniture and car parts to coffee, sugar and anchovies, compounding concerns in global markets already bracing for accelerating inflation. “In 40 years in toy retailing I have never known such challenging conditions from the point of view of pricing,” Gary Grant, the founder and executive chairman of the UK toy shop The Entertainer,said in a interview. He has had to stop importing giant teddy bears from Chinabecause theirretail pricewouldhave hadtodouble to add in higher freight costs. “Will this have an impact on retail prices? My answer has to be yes.” Continued on Page 2 New Delhi Resource-sharing ■ Broadband communications through satellites ideal for remote and hilly regions ■ Spectrum for Satcom services shared as a common resource worldwide ■ Bharti has got a head start in Satcom services over Jio & Vodafone ■ In November 2020, Bharti got into Satcom business through UK-based OneWeb ■ The company plans to launch a total 360 satellites to construct a global satellite constellation allocatedonlybyadministrative process at charges essentially coveringcostofadministration. Unlike terrestrial spectrum, satellitespectrumisneverexclusively assigned to the operator butcoordinatedinternationally and shared among multiple operators for different orbital slotsandalltypesofsatellites. Continued on Page 2
The Financial Express (FE) is a business paper that’s closest to the people who are in the business of business. From business policies to market trends to new developments, The Financial Express comes packed with incisive news on every relevant issue.