- Thursday, April 24, 2025
By: Shubham Ghosh
Here are news related to Indian economy and business for Friday, June 16, 2023:
India’s civil aviation sector has experienced remarkable growth, with domestic airlines witnessing a substantial increase in passenger numbers, a release from the civil aviation ministry said. From January to May 2023, the passenger count reached an impressive milestone of 636.07 lakhs (63.6 million), reflecting a significant annual growth rate of 36.10 per cent compared to the same period in 2022. In May 2023, the passenger count rose to 132.41 lakh (13.24 million), showing a month-on-month growth of 15.24 per cent. These figures highlight the efforts of airlines, airports, and the ministry of civil aviation in creating a safe, efficient, and customer-centric aviation ecosystem. The increased demand for air travel signifies the strength and durability of India’s aviation sector. Additionally, the number of passenger complaints decreased in May 2023 compared to May 2019.
Tata Consultancy Services (TCS) has announced the mutual termination of a $2 billion contract with Transamerica, citing a challenging macro environment as one of the reasons. The 10-year agreement, signed in 2018, aimed to digitize over 10 million policies for Transamerica into a single integrated platform. TCS stated that policy administration, including life insurance, retirement, and investment solutions, will be transitioned to a new servicing model over a period of approximately 30 months. Analysts believe that while the termination has sentimental implications, it is not expected to have a significant financial impact on TCS. The move highlights the difficult demand environment in the IT sector, particularly in telecom and communication segments, as clients consider cost-saving measures. As a result, TCS stock has experienced a 1.3 per cent decline, currently trading at Rs 3,175 (£30.25).
India is weighing a proposal to kick off barter trade in goods such as fertiliser and gas with Egypt as part of a wider agreement that could see New Delhi extending a credit line worth several billion dollars to Cairo, Reuters reported citing sources. A deal is likely to be announced later in June during Indian prime minister Narendra Modi’s first visit to Egypt, which faces a prolonged foreign currency shortage, an informed source said. “The agreement would allow Egypt to make purchases in rupees and bartering is being considered as a means to settle this debt through the sale of Egyptian products that might be of use for India,” the source added, according to Reuters. The report also said that the Indian external affairs ministry is speaking with departments over their requirement for fertiliser and gas from Egypt as part payment for the credit line, according to an Indian official.
JBM Auto, an Indian company, is reportedly the frontrunner to acquire a controlling stake in SML Isuzu, an automaker in India, according to CNBC-TV18 sources. Sumitomo Corporation, which owns 43 per cent of SML, is seeking to exit its operations in India, and talks are in an advanced stage. No other potential buyers were mentioned in the report. JBM is considering various options for the acquisition, including cash and a share swap deal, the report added. The due diligence process has begun, and the deal is expected to value SML at a premium to its current share price. SML Isuzu’s shares jumped as much as 7.7 per cent following the report but trimmed some gains to close 3.1per cent higher at Rs 1,154.50 (£11).
Castrol India, a lubricant manufacturer, has entered into an agreement with Mahindra Insurance Brokers Limited (MIBL), an insurance broking firm, for its auto service workshops. As part of the collaboration, Castrol Auto Service (CAS) workshops will now have the opportunity to become Point of Sale Persons (POSPs) for distributing eligible insurance policies from domestic motor insurance providers through MIBL. According to market estimates, vehicle insurance contributes to a significant 34% of non-life insurance premiums in the country, as stated by Castrol.
Azure Power Global Limited, a sustainable energy solutions provider in India, has announced two changes to its board of directors. Richard Payette will join the board as an Independent non-executive director, effective July 1, 2023. Payette brings extensive experience in global company management, accounting, and audit matters. He will also serve as chair of the Audit & Risk Committee and join the Board of Azure Power India Private Limited. Additionally, Christine McNamara, an Independent non-executive director and current chair of the Audit & Risk Committee, has decided to resign due to family health matters. The board expressed gratitude for McNamara’s contributions and welcomed Payette’s expertise and commitment to Azure Power’s sustainable journey.
India’s Kiya.ai has unveiled its metaverse platform called Bharatmeta at the VivaTech event in Paris, showcasing the country’s potential in metaverse technology. Unlike existing platforms focused on gaming and virtual goods, Bharatmeta emphasizes the commerce of physical and virtual goods, enabling real businesses to adopt metaverse technology. The platform offers use cases for banking, commerce, culture, and collaboration, leveraging India’s digital infrastructure for digital payments, identity, and open commerce. Kiya.ai aims to make the metaverse inclusive and accessible to the masses, supporting multiple devices. With its global presence, Kiya.ai serves numerous enterprises across multiple countries, capitalising on India’s visionary ‘India stack’ for innovative business models and market expansion.
(With PTI, ANI, Reuters inputs)
