The big news this evening is on India’s GDP numbers: economic growth slowed to a five-quarter low of 6.7 percent in the first quarter, compared to 7.8 percent in the preceding March quarter. The growth numbers are not surprising - they are in line with a Moneycontrol survey estimate of 13 economists last week, which had predicted 6.8 percent growth. The good news is that core sector growth has risen to 6.1 percent in July after previously reaching a five-month low. Four of the eight sectors that constitute the Index of Eight Core Sector Industries have grown faster, according to National Statistical Office data. For a global perspective, Gaurav Choudhury has a must-read piece where he shows that India’s GDP growth at 6.7 percent still towers over the rest of the world. One of the surest signs of consumer spending can be seen in shopping malls and car showrooms and data for the first quarter indicates a revival of private consumption as well as steady investment. If you want to see all the data that matters in one place, check out Ishaan Gera’s analysis of today’s GDP numbers in seven charts.
India may well be the second drone startup capital of the world. Ishaan also sifted through cross-country data and found that India’s 398 drone startups are the second highest in the world, more than 298 each in China and the UK. The US has the largest number of startups at 1,366, but India’s growth rate in drone startups in the past three years has been faster. Indian drone startups more than doubled over the last three years since the government changed the law in 2021 to encourage startups. The fast growth is not without its problems. Aihik Sur reports that the defence ministry has red-flagged the alleged use of Chinese components in drones made by three companies: Mahendra Singh Dhoni-backed Garuda Aerospace; Dhaksha Unmanned Systems, a unit of Coromandel International and Sky Industries.
Ola Consumer founder and CEO Bhavish Aggarwal says that the company is now processing nearly one lakh orders a day across food delivery, quick commerce and hyperlocal logistics via the ONDC platform. This is about 20 percent of Swiggy and Zomato’s daily orders. Aggarwal spoke exclusively to Tushar Goenka and Chandra R Srikanth and says he is a strong advocate of an open ecosystem like ONDC. The group’s aim is to start selling scooters on the platform soon.
In corporate news, property developer Prestige Estate Projects Ltd is set to raise Rs 5,000 crore through a qualified institutional placement (QIP) soon, reports Ashwin Mohan. Earlier, the company’s board had approved a proposal to raise money through a QIP on the heels of a robust financial performance. The company’s stock has risen 50 percent in the last six months.
The GST Council is likely to exempt pure term insurance policies from GST, reports Meghna Mittal. However, insurance policies with an investment component will not be exempt. This follows numerous demands to exempt life and health insurance from GST, including by union minister Nitin Gadkari.
India’s largest crypto exchange Wazir X is in talks with global crypto exchanges to raise money for capital infusion following a $230 million cyber heist. Debangana Ghosh reports that the exchange’s CEO Nischal Shetty filed an affidavit in a Singapore Court saying talks are on and also seeking a six-month moratorium to avoid legal notices. Wazir X had 16 million registered users at the time of the July cyber attack, when it lost more than 45 percent of its crypto holdings.
And finally, with ace investor Warren Buffet celebrating his 94th birthday today, N. Mahalakshmi and Vaibhavi Ranjan put together seven tenets of investing from the Oracle of Omaha as a weekend read.
Have a great weekend,
