Earlier to this, he was made the director of Reliance Oil and Chemicals in February this year. He was also an additional director on the board of Jio Platforms. Anant is also handling many responsibilities in Reliance Industries from sometimes. Now Anant’s appointment as director in new companies has caught people’s attention. There has been a lot of speculation among the investors about the successor of Mukesh Ambani. This fragrance is also present because Mukesh Ambani has three children and the history of business division in the Ambani family has been bitter.

What was the tussle between Mukesh and Anil Ambani after Dhirubhai died

Let me tell you that there was tussle between Mukesh Ambani and Anil Ambani seen after the death of Dhirubhai Ambani in 2002. After Dhirubhai death Ambani became the chairman of Reliance Group and Anil Ambani became the Managing Director. Before this Mukesh Ambani joined Reliance in 1981 and Anil Ambani in 1983. Both brothers continue to support his father in many business without any dispute. The rift between both the brother came out after the death of Senior Ambani. Thats why Mukesh doesn’t want to take change while selecting Reliance Industries Successor this time.

Also Read: Ambani Vs Adani battle begun for green energy supremacy in India

Let mettle you that Reliance Industries founder and chairman Dhirubhai Ambani died in July 2002. But he has not written any will before his death. After his death Mukesh and Anil’s feud came out for the control of business empire build by their father. Even Dhirubhai Ambani’s wife Kokilaben was upset due to this ongoing dispute between both the brothers. To address the family dispute she divided the Reliance Industries into two parts in June 2005. VK Kamat, then the chairman of ICICI Bank has intervene in this partition of empire between both the brothers.

What went wrong after the demerger of Reliance Industries in 2006: Reliance Industries Successor

To solve the ongoing tussle between both the brother for reliance Industries. Kokilaben, the wife of Late Dhirubhai Ambani decided the equal distribution of power between both the brothers. After partition Reliance Industries, Indian Petrochemicals Corp Ltd, Reliance Petroleum, Reliance Industrial Infrastructure Ltd has gone to Mukesh Ambani. Younger brother Anil Ambani got companies like RCom, Reliance Capital, Reliance Energy, Reliance Natural Resources etc. Anil Ambani also formed a new group called Anil Dhirubhai Ambani Group for all his businesses. 

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During the division both the brother got almost equal wealth and companies to run independent business. Since then Mukesh Ambani’s business is touching new heights and he has build an empire worth over 3.8 trillion Indian rupees. But younger brother Anil’s fortune is not supported him. He has lost almost all his wealth in last 15-16 years and his group is debt ridden at the moment. After taking over the business, Mukesh Ambani all projects succeeded and touch new heights. But Anil Ambani all initiative lost the ground and many of his companies forced to become bankrupt. Mukesh doesn’t want this for his some and they why he is working towards selecting Reliance Industries Successor.

How many children Mukesh Ambani has and why they do at present

Mukesh Ambani has three children and all of them is supporting various business run by his father. They where made directors is many key projects and companies. Here is the list of responsibility handled by all three

Akash Ambani: In 2014, took a degree in Economics from Brown University. After that he joined the family business. Jio Platforms, Jio Limited, Saavn Media, Jio Infocomm, Reliance Retail Ventures are on the board.

Isha Ambani: Studied at Yale and Stanford. Joined the family business in 2015. Jio Platforms, Jio Limited, is on the board of Reliance Retail Ventures. Isha got married in December 2018 to Anand Piramal, son of businessman Ajay Piramal.

Anant Ambani: Studied at Brown University of America. Reliance New Energy, Reliance New Solar Energy, Reliance O2C, are on the board of Jio Platforms.

What is the future plan of Reliance Industries and role of Ambani Children’s 

Reliance industries has a very aggressive plan for next few years. They are planning to invest huge money in Jio for 5G capability. They are planning to enhance Jio wireless network for video streaming and high speed user experience. Jio network also planning to bring Netflix Disney Plus Hotstar, Amazon Prime Video and TV channels under single roof. In July 2020, Mukesh Ambani and his children Isha and Akash gave a glimpse of future plans at Reliance’s AGM i.e. annual meeting of shareholders.

Also Read: SoftBank Reinvestment In Flipkart will challenge the eCommerce game

Reliance industries also very bullish about their retail business. They are planning to add more merchants on their e-commerce venture JioMart in the next three years. Reliance will also invest Rs 15,000 crore in value chain partnerships and future technologies to enhance e-commerce business. Apart from retail Reliance Industries also planning to venture in Green Energy Business. The group planning to invest about 75,000 Crore in thus sector to produce 100 GW of solar energy in the next 10 years. Ril also started Dhirubhai Green Energy Complex will be started in Jamnagar, Gujarat. Keeping all these succession plan Reliance Industries Successor has to be selected very carefully.

What is family council and how they will select Reliance Industries Successor

As per media reports there is a discussion going on in Reliance Industries for its successor selection. The group advisor believe that reliance industries biggest challenge at this moment is the good return for investors. There is also a risk of ‘Key Man’ in front of investors as Mukesh Ambani getting older by each passing day. Ril conventional business of oil and gas has limited scope of growth in coming years. These area the area of concern for Reliance Industries at this moment.

Also Read: SEBI impose penalty on Reliance and Mukesh Ambani for foul play

The address this challenge and continue to gain the investors trust Reliance Industries Successor has to be selected very carefully. As per media reports Mukesh Ambani will form a family council in this regard. This council will decide the successor of Reliance Industries in future. Senior members of the family will be included in this along with the three children. Apart from this, there will also be mentors and advisors join this council. It was claimed that by the end of next year, the blueprint for working on the succession plan would be ready. However, a Reliance Group spokesperson rejected the report. He said that it is completely based on imagination.

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Reliance entry in green energy sector has immediately grab the attention of players in this sector. This will be the first time when Ambani Vs Adani battle will be seen in Indian business space for any sector. Both will try to establish their supremacy in this field as per experts. Gautam Adani owned Adani Group is already present in this space and producing green energy in different sates in India. They have also acquired some international contract in recent past.

What kind of investment committed by Adani Group and Reliance Industries in this sector

Let me tell you that Adani Green Energy won contract to set up world’s largest power project in July 2020. For this project Adani group committed to invest about 45,300 Crore. Adani group is also present in 11 Indian States and producing about 15,390 megawatt green energy. They have booked the revenue worth 3,183 Crore with net profit of 210 Crore in FY 2020-21. Adani’s already building green energy infrastructure in Indian states and investing significant money in this sector.

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Now Reliance Industries announced a mega plan to enter in the green energy business. They have provisioned investment of Rs 75,000 crore in this sector for next three years. Now the Mukesh Ambani announcement to enter in this sector with such a huge investment has started the battle between Ambani Vs Adani. It will be interesting to see who win this batle. Both group has deep pocket and and excellent alignment with current power centre in Indian Government. They will try to get the government support in their favour.

What is Green Energy and why top industries planning to venture in this sector

Green energy is the process of producing energy with natural sources such as sunlight, wind or water. This Green Energy does not harm the environment and this will be future of energy in requirement and fulfilment in the world. It is promoted by the government because it does not produce harmful greenhouse gases. Green energy is also called renewable energy. Considering the potential in this sector Ambani Vs Adani battle begun and both will try to set their supremacy in this sector.

Also Read: Poor Economic Growth will lead to high inflation and job loss in India

Let me tell you that the green energy has a long future and government across the world promoting this sector. Since government across the world has deep interest and promoting this sector Reliance Industries planned to venture and wish to explore this sector. Reliance is not the first company in India who has shifted their focus to the green and renewable energy. Many Indian infrastructure companies already ventured in this sector. These companies has invested about Rs 37,000 crore between April to December 2019. Energy experts believe that this sector will get investment worth 37 lakh crore by 2028.

How Reliance Industries planning to win this battle in Green Energy Space: Ambani Vs Adani

To win the battle in Green Energy sector, Reliance Industries is planning to build a 4 Giga factory in Jamnagar, Gujarat. They will invest about 60 thousand crores for this factory. Reliance is planning to produce solar panels, batteries, green hydrogen and fuel cells in this factory at Jamnagar. Apart from this, Rs 15,000 crore will be invested to create value chain and partnership with future technology. The total investment of 75 thousand crores will be invested in the next 3 years for green energy business.

Also Read: Why Half of Indian Startups Shut Down before end of FY 2021-22

With this investment, Reliance Industries wants to achieve the target of 100 GW of renewable energy by 2030. They also wants zero carbon tag by 2035 for Reliance Industries. Let me tell you that, this sector has already got about 3 Lakh Crore investment and producing around 94 Gigawatt Green energy in India. This sector has huge potential and 49% to total world energy requirement will be fulfilled by Green Energy by 2040 as per experts. The potential in this sector bring Ambani Vs Adani battle in the field.

What will be the strategy of Adani Group to maintain the dominance in this sector: Ambani Vs Adani

People closely monitoring the growth and business of Gautam Adani Group believe that he will continue to follow the current strategy to maintain the dominance in this sector. Adani’s will continue to partner with centre and state government to produce green energy. They all also use their influence in centre government to get international and domestic contracts in this sector. They will invest slowly in this sector and expand business strategically. Adani group is known to expand business via government funds and subsidy. 

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Experts believe that, there will be no major change in their strategy even after the Reliance Industries announcement to enter in Green Energy sector. Adani’s may not follow the Reliance Industries strategy to invest huge in this sector with promise of growth. They will continue to go slow and expand business in India and overseas. But experts believe that this battle between Ambani Vs Adani will be interesting for energy sector. This battle will benefit the power sector in India and world.

The post Ambani Vs Adani battle begun for green energy supremacy in India appeared first on Thepost24.

Everyone is asking, why government increasing petrol and diesel price when crude oil price has not increased in the same proportion in last few days. Rather crude oil price decreased in international market as per media reports. The weird logic of Modi Government also exposed when they said that the oil companies are independent and take pricing decision based on crude oil price in International market. Let me tell you, petroleum companies never reduced the price when crude oil price goes down in international market.

Why petroleum companies do not increase prices during the elections

The Modi government Petrol Diesel pricing strategy also get exposed before every election. The petroleum companies pause the price rise during election even when crude oil price change in international market. This logic can be better understood when oil prices become consistent for more than 45 days during five assembly election this year. Both government and oil companies does not touch the pricing during the election.

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But the soon after election results declared on 2nd May. The prices of petrol and diesel started increasing. Petrol has become costlier by Rs 5.57 in Delhi in the last 39 days. At the same time, diesel has become costlier by Rs 6.07. On Saturday, the price of petrol in Delhi went up to Rs 96.18 and the cost of diesel to Rs 87.04. Let me tell you that the Petrol Diesel Price Increasing continuously from last 39 days.

What Petroleum Minister said on price rise in India: Petrol Diesel Price Increasing

Petroleum Minister Dharmendra Pradhan said on Monday that there is no scope for any reduction in the prices of petrol and diesel at present. He attributed this to rising crude oil prices in the international market. Pradhan also said that crude has now crossed $ 70 per barrel. However Pradhan forget, what was the crude oil price when Modi government came in power in 2014. The government’s own data says that the crude oil price was $ 109 per barrel when Narendra Modi came to power in 2014. That time petrol was at 71.51 a litre and diesel was Rs 57.28 litre in the country.

Also Read: Why petrol and diesel price increased by the oil companies in India

The Modi government officials gave another logic behind this prices rise. They said that the value of rupee against dollar is also responsible for oil price rise in India. But this is also fake as one dollar was at around Rs 58.81 in 2014. As per this value, the crude oil was at Rs 6,326.19 per barrel on that time. Now with the same logic, the price of crude has to be at Rs 5199.46 today per barrel considering current dollar rate at around $ 73. Experts believe that government is confusing people and making money in this economic crisis. They don’t have any economic revival plan for the country.

Why government keep increasing petrol diesel prices

It is known that government need money to run populist schemes to win elections. Since the modi government come in power in 2014. They have not focused to improve the economy for earning rather they hit the economy with their weird schemes. Demonetisation scheme of Modi government killed the MSME and real state sector. Similarly GST scheme with problems destroyed the remaining medium and large manufacturing companies. As you know that, these are the sector generate maximum employment and gave direct and indirect taxes revenue to the government.

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Since Modi government has low understanding of countries economic condition. Their economic policies has hit the country and made a large number of people unemployed. They also killed many sectors in India with their policy.  This has created impact on their direct and indirect tax earnings. Since then they are struggling to get the money to run their populist schemes. To earn money in this situation they announced disinvestment of governments profit making ventures. They also started increasing taxes and petroleum products to earn easy money. They also pushed RBI to give them their cash reserve for government schemes. Experts believe that the don’t have any vision to revise countries economy rather they want to earn money from Petrol Diesel Price Increase. 

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According to internal sources, SoftBank Reinvestment In Flipkart will be around $2 billion. This may include groups of sovereign wealth funds like ADQ of Abu Dhabi, CPPIB of Canada. Along with these new investors, the existing investors like GIC and Qatar will also increase their stake by infusing new funds. Flipkart’s new investment plan has confused the industry experts and they are waiting for the development before making any observation.

Why SoftBank reinvesting in Flipkart after exiting from the company

The recent development and pandemic has pushed SoftBank Vision Fund to relook Flipkart. There was a massive growth in grocery business reported by Flipkart in recent past. The fSoftBank Reinvestment In Flipkart will creative massive liquidity in the Indian eCommerce market. This will help existing players and Flipkart to explore new areas of business. Flipkart’s traditional rival Amazon consistently invested in the India market from a very long time. Amazon has invested about $7 billion in retailing, online payments, video streaming, food delivery and many other sectors.

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SoftBank Reinvestment In Flipkart will create new competition in the eCommerce market. This will also help Flipkart to exploring new areas for e-commerce business in overseas apart from India. The existing e-commerce players will also forced to increase their investment in the sector to be relevant. The Flipkart expansion in new areas will create healthy competition and increase business opportunity. SoftBank Reinvestment In Flipkart will help Indian economy to go back on track and create new jobs and open market for small sellers. 

Does SoftBank investment in Flipkart will help them in US listing?

The SSoftBank Reinvestment In Flipkart will speedup the process for companies listing in US market. This will also help Flipkart to maintain the private company status even after the listing in US exchange. The investors will get more money by liquidating their stake while make private entity to a public company. SoftBank Reinvestment In Flipkart has larger meaning and will try to convert Flipkart as global company.

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Many believe that US listing of Flipkart will attract global investors and allow local US citizens to invest. The local US citizens will also get an opportunity to make money from an emerging company expending its footprint in new markets across the globe. Flipkart will also take an advantage of American investors who can introduce them in new market across the world. This will be a good decision for the future of the company.

Does SoftBank want Flipkart to explore business beyond gadgets, electronics and fashion?

SoftBank Reinvestment In Flipkart will make it strong and powerful option to compete with Amazon, Reliance and the Tata Group. Aside this, most of the Indian e-commerce platform still working like online retailers in India. And this is a very little small part of this entire digital space. Thats why Flipkart Chief Executive Kalyan Krishnamurthy has made investments in last two years. He has acquired companies to enhance supply chain, logistics and fashion brand portfolio of the company.

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Flipkart acquired Cleartrip to strengthen its presence in the online travel and hotel booking in April. Last year, Flipkart invested Rs 1,500 crore to pick about 8% stake in Aditya Birla fashion and retail company. They also pick the 27% stake in Arvind Youth Brands, a subsidiary of Arvind Fashion to enhance its fashion portfolio. Such investment has created more interest for SoftBank Reinvestment In Flipkart and they believe it will give them good returns in long run.

Why SoftBank tried to consolidate Indian eCommerce Companies in 2017

SoftBank tried to consolidate Indian largest e-commerce like Snapdeal and and Flipkart in 2017. They sensed the entry of large players and thought to build a single competitive e-commerce company. But the deal failed due to protests from Snapdeal and it has pushed SoftBank to pursue only Flipkart. But when Walmart decided to enter India’s retail eCommerce business in 2018. The SoftBank sold its stake to Walmart in $ 4 billion and exit from Flipkart. Walmart acquired 77% stake in Flipkart and become a largest share holder with this deal.

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Let me tell you that SoftBank knows that big global players like Amazon and Walmart entry in retail market will change the dynamics. They are known for huge investment and use their global learning to build the market in placed where they enter. Thats why SoftBank exited from Flipkart and allowed these global players to reshape the indian e-commerce market. SoftBank also thought that more merger and acquisition in Indian e-commerce space on that time. But now SoftBank Reinvestment In Flipkart has different meaning and new interest.

What is the real battle of India eCommerce market?

The real battle of Indian eCommerce market is the retail grocery business. There has been an unprecedented growth in this business in the last one year. The pandemic and lockdown pushed most of indian to move on online purchase of their essential and grocery items. Now large number of customers come and do their daily shopping from these eCommerce portal. The online grocery space is dominated by BigBasket and Grofers in India. But they too don’t have pan India presence and still hold a very little market share in tis space. The SoftBank Reinvestment In Flipkart is because of their entry in Indian grocery business.

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Let me tell you that Indian grocery market is the largest grocery market in the world. Most of Indian buy their ration from the local ration shops in their areas. Many such retailers only push products which has high margin. Many competitive brands does not get the space on those retails stors. This all has huge potential from seller to consumers in Indian retail grocery market. Thats why almost all the big Indian groups trying their luck in this field. The Tata Group, Reliance Industries, Birla Group, Bharti and many other groups have already made their presence in Indian grocery retail business. Now Flipkart and Amazon has to play a bigger role considering their reach and logistical presence.

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The situation become more tense because Indian economical was already in poor state much before the corona pandemic hit the nation last years. Although government offered some relief package last year to industries and common man. Which has helped economy to grow little bit in October to December last year. This year no relief offered by government or RBI to help the people of industry so far.  

Current Situation Index and Futures Expectations Index hit all time low in May 2021

As per RBI, Consumer Confidence Survey and Current Situation Index fell to a record low in May. Let me tell you that, this survey organised by RBI every year to understand the consumers confidence in economy. If this index gor above 100 that means the common people are feeling better about themselves. The survey also represent that people has full confidence in current economic condition of the country. This time it has fell down to less than 50% means Poor Economic Growth will trouble Indians for sure.

Also Read: How 100 Million Job Loss in second wave shaken the Indians job hope

It is not only Current Situation Index but Futures Expectations Index is also reported at all timely low this time. The participants in the RBI survey have expressed their fears that India Poor Economic Growth will hit the country in all aspects.As per survey, people believe that countries economic condition will be weak for entire year. The Reserve Bank said that its futures expectation index also declined from 108.8 to to 96.4 in May 2021. This survey also revealed the reduction in the expenditure of the households.

Disappointment among people about their employment and living condition: Poor Economic Growth

The Reserve Bank survey also said that people are more concerned about their employment and living condition. Poor Economic Growth of India in last few year has already caused huge job loss. Now the Employment index has drooped further and million lost their job in last one year due to corona. This job loss has reported in both formal and informal sector. Recently CMIE published a data and claimed  that 10 million people lost their job in second wave of corona in last two months. 

Also Read: Why Half of Indian Startups Shut Down before end of FY 2021-22

RBI survey also released peoples fear in drop of their income and job loss. This will lead to poor living condition and drop the demand in almost all sectors. When large number of people loose their job and face drop in monthly income than they will not buy nonessential items. They will only spend money for essential items required for living. It will not be a good sign and Poor Economic Growth will impact all sector for sure.

High frequency indicator indicating reduction in all types of activities: Poor Economic Growth

This is bad news for a country’s economy when primary consumption of goods and services reduced. The High Frequency Economic Indicator indicating a moderation in all activities. This data issued more or less on a monthly to understand the demand of people. It is expected that all business activities will be slow down for full year due to Poor Economic Growth in India. 

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The impact is already visible in market and demand for electricity has decreased in industrial consumption. Unemployment rate is rising in all sector from a very long time. There is a very less possibility for new job creation in market. Almost all sectors freez the new hiring and focusing on job cuts and pay revision for existing employees. 

RBI is unable to cut rates and experts anticipating high inflation upto 10.2%: Poor Economic Growth

According to the Reserve Bank Survey, most people are anticipating inflation to remain high for a long time. This is adding to the troubles on the monetary policy as well which had stalled interest rate cuts for more than a year due to rising inflation. Moreover RBI will not be able to cut interest rate even in future to boost economy and growth. This is only possible when government take initiative and announce relief to the people and industry. They may help to improve in Poor Economic Growth in long run.

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The experts are also expecting that inflation rate to be 10.2% in May. This is 150 basis points higher than their estimate in March. They are forecasting inflation to remain at 10.8% for the next three months from May. This is 70 basis points higher than the inflation forecast reported in March. It is estimates that the inflation rate can be 10.9% in the next one year. This will further kill the pole of people expecting job, or good living standard this year.

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Let me tell you that unemployment rate in country reached to the highest level during the last year lockdown. It was reached to record 23.5% in May after nationwide lockdown announced in March last year. But this figure was gradually come down when unlock process started in the country. The economy growth was also started coming back on track unless second wave hit the country in Feb 2021. Second wave of corona pandemic was more infectious and dangerous. It has pushed people to lock themselves at home and save life.

What is the challenge for job market after second wave of corona

Industry experts believe that country has passed the peak of second wave in the country. The damage was already done and 100 Million Job Loss may have impacted families. Now government and people has to put effort to bring back economy on track. The Industry has to work and slowly bring resources back to do the required job. This will help in improving economy and bring down the unemployment percentage in the country.

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But there are challenge for job seekers in organise sector. It doesn’t look that permanent job market will back on track soon. There are challenges after 100 Million Job Loss expected in just 2 months this year. 

Job Seekers Challenge:

• People lost their job in organise sector may not get job back easily 
• Organise sector facing other challenge before opening up regular operation
• Un-organise sector may offer instent job after unlock down but it will not guarantee regular income and employment
• Around 60% of start-up and MSME mat shut their operation before end of this year
• Startups and MSMEs are facing serious cash flow issue and they did not get any support from government so far.
• Post covid19 employers reduced the remuneration of new employees because of less demand and more supply of skilled resource. 
• New Labour laws also in favour of employers where they will hire less resource and get more work from existing one.
• There is not much effort and support from government to industry in both the corona wave

There are endless points to mention why job market may not get improved in the country. But main points are highlighted above for your broader understanding.

What is the normal unemployment ratio in the country

The 3-4% unemployment ratio is the normal for the country from a very long time. It has gradually increased in last few years due to current government policy. The Modi government decision of demonetisation, GST, disinvestment and merger of banks has added the unemployment in the country. The government policy of demonetisation and GST had almost killed the MSME sector as per experts. Now 100 Million Job Loss expected in CMIE survey has further increased the pain of job seekers.

Also Read: Threat on Food Delivery Apps in India may lead to thousand job loss

To see the current impact on job market CMIE conducted a nationwide survey on 1.75 lakh families in April. The survey revealed a disturbing trend of earnings in the last one year. In the survey, only 3% of the households said that their income had increased. The 55% families said that their income had decreased since coronavirus and lockdown hit the country. Survey also revealed that 42% peoples family income remain constraints during this period. The survey data seams real and 100 Million Job Loss data has support of many economist in the country.

Why urban job market more impacted during the second wave of pandemic: 100 Million Job Loss

The urban unemployment ratio was most affected and it has reached to 18% by end of May 2021. But the same time reveal that total unemployment in the country remain at 12.15% during this period. The higher urban unemployment has raised many question to researchers. CMIE also tried to identify the reason on unemployment disparity between urban and rural India. While investigation they found some statistics to understand the reason. It has also proved that 100 Million Job Loss could be a reality.

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The main reason for higher unemployment in urban area was the strict lockdown during the second wave peak. Most of the Indian states announced partial lockdown in the main cities of the country starting April. Later they converted it into the strict lockdown when corona cases increased in urban India. Opposite to this workforce participated in farming and other work which was allowed in tier-2, tier-3 cities and rural India. Most of rural India did not had strict lockdown and farming and NAREGA kind of project was continued even during the peak of coronavirus second wave.

What industry experts believe about the unemployment rate in India: 100 Million Job Loss

Industry experts believe that unemployment rate will remain high in urban area for more than 6 months. The main reasons for this is fewer employment opportunities, companies hesitate to hire more employees. The uncertainty of fear of third wave still pushing employers not to ope un jobs at present. Coronavirus spread through the air also increased the risk for employers to hire more workforce in this uncertain period. The 100 Million Job Loss many not get back to Jon again considering thes factors.

Also Read: Why petrol and diesel price increased by the oil companies in India

Even the government policy does not allow all resources to the work has created concern for employers not to hire new workforce. The big job industry like tourism, entertainment, hospitality and automobile is totally shut during this period. Even today they are not sure about hiring new resource due to government regulation and people fear. Similarly other sectors also uncertain about adding new resource. This all is making job market scary for job seekers. Hope things will change soon and job market will open again in India. The 100 Million Job Loss is setback for India.

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According to a leading market research firm LocalCircle, 59% of Indian Startups Shut Down or sell themselves before FY. This list will not only include new startups but it will also add India’s small and medium (MSME) businesses. As per survey only 22% of startups and MSMEs will be able to run their shop for more than 3 months at present. 41% of businesses does not have money to even run organisation for another month. Apart from this, around 49% are startups and MSMEs are planning to reduce the workforce, cut employee salaries and benefits by July. This will further create job crisis in India.

What has changed for Startups since Covid19 started last year

Since the coronavirus started and lockdown announced in Mar 2020, most of Indian companies face the heat. Everyone forced to shut their business operation, production units and services for many months due to lockdown. Somehow IT companies and remote service industry survive due to work from home model. Millions of people lost their jobs and labours in MSME sector and production units forced to go home. The lockdown has reduced the demand and cash flow in the society. This has created fear for many as Indian Startups Shut Down. Because large population in India doesn’t not have money to buy things apart from essentials even today.

Also Read: Threat on Food Delivery Apps in India may lead to thousand job loss

Let me tell you that, Things were started improving since the unlock process started in India from June. Even market started responding from August and September-2020 and generated some demand. Many production units started working and offices started calling limited resource. Even e-commerce and local Shope started getting business in festive season. Everyone thought corona has gone and life will back to normal soon. But second wave of corona hit the Europe and Africa in early November with new variants. It has again crated fear for Indian Startups Shut Down because market and business started slowing after some cases with new variant reported in India. And now the peak of second wave has shattered all the hope of business in India. 

How second wave of corona has created more panic for startups and MSME

The second wave of corona noticed by government agencies and business house in the beginning of February 2021. The cases started rising in urban India and huge numbers reported in in Mumbai and other parts of western region. The situation become worst while entering in March and become worst by April. Lakhs of daily cases in different pats of country created chaos in India. Thousand starts dying by each passing day due to lack of hospital bed, medicine and oxygen. Most of the state government forced to implement strict lockdown and forced people to remain in home. This has raised the question if Indian Startups Shut Down or survive.

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The second wave of Covid19 and fresh lockdown further killed the already struggling stratus and MSME. They were already in trouble due to decrease in demand and cash flow issue. They did not get any relief in fast phase of corona and second wave has worsen the situation. The great loan mela and moratorium has not helped the startups and MSME in first wave. High operating expenses, no income, loans and statutory liabilities has further kill them. The LocalCircle survey shows that 60% Startups Shut Down unless big relief offered by the government. Although there is very little hope left for them from government looking at last year relief package.

What can help startups and MSME to save their business: Indian Startups Shut Down

The government can help the startups in this tough time with little change in their existing policy. Startups want the government to approve the Corporate Social Responsibility (CSR) fund to be spent in startups working in social space. Let me tell you that, lot of startups are working in the health sector, emergency support, community and social engagement services. If center government will help those startups and fund them then they can survive. They need cash and policy support from government to survive. If government will no extend support then Indian Startups Shut Down for sure.

Read More: What is Code Of Wages 2020 and how this will impact Indian labour law

The Startups and MSME in manufacturing sector wants government to help them in generating demand. They also want government to give cash support and cheap loan to reduce the production cost. This will help them to reduce the product cost for customers and this can generate demand. They also want government to pass some tax benefit and help in importing raw material fom countries like China to reduce the product cost. Startups believe that government will help them to sustain in this tough time. Although many differ to their view looking at their past support.

What RBI is doing to save the startups and MSME in India: Indian Startups Shut Down

The Reserve Bank of India (RBI) is also planning to conduct a survey of startups, MSME, Retail, Restaurants, Malls and Hospitality. They will try to identify the business impact on these sectors since Covid19 started in India. Reserve Bank has approved several banks to identify such businesses. They want local banks to meet with them and understand their requirements. They are planning to help them with all possible ways else Indian Startups Shut Down for sure.

Read More: General Budget 2021 Highlights indicate this as capitalist Budget

Let me tell you that it will not be an easy task to extend support to startups and MSMES this time. Each organisation has unique challenge to deal with corona impact. Many are facing cash crisis then some are facing resource or production issue. How RBI will help them in this tough time for survive, need to be seen. Last year moratorium and loan mela completely failed. Hope this will not repeated this time and real help extended to them.

The post Why Half of Indian Startups Shut Down before end of FY 2021-22 appeared first on Thepost24.

But why this is happening and why Resturants owners planning to delivery their food directly? The answer is, the restaurants across the country struggling with low business since corona crisis stared in India. Many scared to order food fearing infection and many doesn’t have money to order food due to drop in regular income. Apart from this, the large consumer for food delivery apps is working professional across the world. Now people are working from home and they have enough time to try different food themselves to save money. This all leading to a lower volume of food delivery business in India.

How Resturants want to attract new customers in this crisis time

Let me tell you that Resturants across indian forced to shut in first phase of lockdown started last year. Although it was open by the government after some times but then business was dropped to just 20-30%. Their business slightly improved around October and November 2020 but again dropped to same 20-30% when second wave of corona hit the India. This dual setback and uncertainty forced Resturants owners to think for a viable and sustainable business model. Now they are expiring possibility to increase the delivery volume and reduce the operating cost.

Also Read: Food Delivery Platform Swiggy will deliver food for street vendors

Now Resturants owners want to attract their regular customer by offering them huge discount or combs like pay for one dish and get another free etc. But they can’t afford these offers on food delivery apps like Swiggy and Zomato. They can offer such deal to direct orders of customers by passing them delivery commission saved from delivery apps. This is win win situation for Resturants and their customers. But this is a big Threat on Food Delivery Apps in India. 

What kind of commission food delivery apps charged in India

Food delivery Apps like Swiggy and Zomato charge upto 30% of order value from the Resturants. This is huge commission but earlier Resturant use to afford due to high volume of business. But low delivery order volume and takeaway making it difficult for Resturants to pay such high commission to delivery apps. Apart from this most of Resturants in India are not allowed for customers visit is also reduced profitability. Due to this rule the service staff of Resturants don’t have any job to do at present. Now Resturants owner want to use them for the delivery.

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The Threat on Food Delivery Apps already sensed by the leading players in this industry. They also trying to reduce the delivery commission on selected outlets which has significant business volume. This move from Swiggy and Zomato is not unified and this reduced commission given to selected outlets at present. Let me telly that these platforms have very high operating cost and their commission also add government tax which they charge from Resturants. The fix salary and commission to delivery agent reduce profitability of deliveries apps.

What industry experts recommending to delivery apps like Swiggy and Zomato:Threat on Food Delivery Apps

This is a very tough time for both restaurants and food delivery apps in India. Industry experts want both of them to survive and believe it will be good for delivery apps and restaurants business in long run. Eating each other business without considering long term vision is not advisable. If Resturants will start doing business in isolation then they will not be able to expand business and its delivery to a larger audience. 

Also Read: Now Swiggy liquor delivery started in Ranchi Jharkhand

Similarly if companies like Swiggy and Zomato will not understand the pain of Resturant owner and keep the same commission structure then they may not be able to surviver. Experts suggest them to workout differential products like slab wise commission based on business volume. Different commission slab for high and low order size. Also make differential pricing for order distance and time consumed for the delivery.

Experts want food delivery companies data scientists to dig data and design convenient products for their Resturant network. They also suggest them to make more transparent product which exposure cost to the Resturants owners to understand the commission charge by them. This will minimise Threat on Food Delivery Apps and let them survive with restaurants in this current pandemic situation.

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The post Threat on Food Delivery Apps in India may lead to thousand job loss appeared first on Thepost24.

Summary of top 10 New Financial Rule implemented by government

1. There will be an additional tax on interest received on PF deposit

The additional tax was announced on the interest received from the Employees Provident Fund (EPF) in the General Budget 2021-22. Now deposit upto 2.5 lakh PF in a financial year will be tax free. But If you invest more than that, you will have to pay tax on the interest earned on additional amount beyond 2.5 lakh.

Also Read: Loan Moratorium Case decision pronounced in Favour of Banks

2. New salary structure enforced from 1st April 2021 for all employees in India

The government has described the new wage code from 1st April. This will be applicable to all employees working in government and private sector in the country. The new salary structure will be enforced for all employees and they will receive new salary based on new structure. As per new structure 50% of Cost to Company (CTC) has to be be part of base salary component. It means your 50% of take home salary will be contain basic salary components described by the government of India.

3. Pre filled Tax Return Form will be available for the individual tax payers: New Financial Rule

Government has provisioned the Pre filled Tax Return Form available for the individual tax payers. It will be available for all tax payers from 1st April 2021. As per government sources, it will ease down the complex tax calculation and tax liability for individual tax payers in the country. This will also encourage more people to file their income tax due to this easy form availability for each tax payer.

Also Read: What is Code Of Wages 2020 and how this will impact Indian

4. No Tax Return for senior citizens above 75 years of their age: New Financial Rule

The government has also ease down the tax return filing for the senior citizens beyond 75 years of their age. This will be applicable to all senior citizens dependent on their livelihood from the interest earn on fix deposits (FDs). But this relaxation is not applicable for the senior citizens having other source of income like rental, stock market or other business sources etc. But this is a big relief to a large section of senior citizens living their life on FDs interest.

5. TDS liability will become double if you will not file returns on time: New Financial Rule

Government has made a life little difficult to TDS defaulters and people who file later turns for their TDS liability. The government has made changes to section 206AB of the Income Tax Act. Under this, if you do not file ITR on time then you will have to pay double TDS from April 1, 2021. It will help small business owners to become more disciplined to file their returns on time. As per new rule, TDS and TCL rates will revised to 10-20% which was earlier 5-10%.

Also Read: 21 Most Powerful Indian Women story on this International Women’s Day

6. Income Tax liability will become more transparent for individual tax payers

Now government has made Aadhar and Pan card link to your account mandatory. Now you will not be able to hide your income liability any more. Earlier this was only linked to salary and provident funds to track tax liability. Due to this people had an option to hide earning from mutual fund, stock market and other sources. But new rule will link everything and make system transparent to calculate your tax liability. It means you will pay more tax.

7. Delay return filing fee will be applicable for filing return after 1st April 2021: New Financial Rule

Although government has revised the income tax return filling date for FY 2019-2020 due to corona pandemic. But government has implemented the late fee (penalty) for filing income tax return beyond 1st April 20201. The government has revised the late fee rule under the Finance Bill 2021. This will help many individual business owners and individual to file their delayed income tax. But additional late fee will make them unhappy for sure.

Also Read: Mutual Funds Investment Tips Before Trusting and Investment

8. Many bank passbook and cheque book will become redundant from 1st April: New Financial Rule

Many passbook and cheque books become useless from 1st April 2021 due to merger of banks. If you have a bank account with Dena Bank, Vijaya Bank, Corporation Bank, Andhra Bank, Oriental Bank of Commerce, United Bank of India and Allahabad Bank, then your passbook and check book will become use less from 1st April 2021. This change is happening due to the merger of these seven public sector banks into various other banks. Although it will not impact your banking transaction and your entire financial details will shift to new bank. 

9. Pension fund managers will charge more on thr name of fund management

Now government has allowed pension fund managers to charge more money from people investing in pension funds. The Pension Fund Regulatory and Development Authority (PFRDA) has allowed the Pension Fund Manager (PFM) to charge higher fees from its customers from 1 April 2021. Government believe this will attract more foreign investment in this segment. But this certainly not good for individual investors hoping higher pension.

Also Read: Why Cheque Deposit Rules Changed from RBI from 1st January

10. New safety rule for car owner and car manufacturer: New Financial Rule 

Now government has mandatory to have 2 airbags in each car for driver and passanger next to driving seat. As per new safety standard all car manufacturer has to provision dual airbag in all variants of cars way forward. This is good for the passengers safety. But this will increase the cost of base level cars for 1st time car owners or people looking for a smaller family car.

The summary of these 10 new rules indicate that government has assured their higher income from addition tax and penalty etc. But government and its police has absolutely no clarity for economical refund and new job creation in the country. 

The post How New Financial Rule change your life in new fiscal year starting appeared first on Thepost24.

Court also said that differed EMI doesn’t mean that EMI cancelled and not changed in future. Customer will pay the EMI after moratorium period as before. Supreme Court also denied any further financial relief to customers in Loan Moratorium Case. Now customers has to pay the all pending EMIs regularly and bank has all option to collect their landings. In case of no payment of regular EMIs beyond 31st August customers will be pushed in to defaulters list as before.

Supreme Court comment on moratorium policy while hearing the loan moratorium case

While hearing the Loan Moratorium Case, court said that there is a limited scope for judicial review on governments economic policy and its decisions. The court will not debate academic matters of trade and commerce. It is not courts job to decide which public policy could have been better. The court said that the government decides the economic policy based on the opinion of the experts from RBI. Any change or restructuring of government policy has to be done by them.

Also Read: RBI Monetary Policy remains same and no relief offered to common man

Court further said that economic expertise cannot be expected from the court. Even if the policy has different views, than too court cannot interfere and determine the strength of economic policy. Court is not an advisors to the Center Govt on Economic Policy. While addressing to government argument, court said to government that it has to take care of public health, jobs etc. Court also said that government has incurred huge losses during pandemic and we have to consider that in account while expecting relief. This Loan Moratorium Case judgment was delivered by a bench of Justices Ashok Bhushan, Justice R. Subhash Reddy and Justice MR Shah.

What is Loan Moratorium Case and what is offered in this scheme to people

During the start of coronavirus pandemic and strict lockdown last year in the country. The government of India decided to offer loan borrowers a relief in their monthly EMIs. Reserve Bank of India (RBI) offered a moratorium period of 3 month to the loan borrowers from 1st March 2020. Later this scheme was extended for another three months and lasted on 31st August 2020. In this Loan Moratorium Case customer had a choice to postpone their EMIs during this period. Customer got protection for not adding their name in defaulters list due to non payment of EMIs during moratorium period.

Also Read: What is Code Of Wages 2020 and how this will impact Indian

But soon after the end of moratorium period customer started complaint about banks additional interest charged on EMIs. Bank started charging compound interest on interest from customers opted for EMI postpone during moratorium period. The consumers knocked the door of court and ask for clarity in this regard. When matter reached to Supreme Court, they asked the centre government why banks are changing interest on interest. Then the government file and reply in court and said that bank will not charge the interest on EMIs upto 2 Crs as per Loan Moratorium Case and policy. 

What was Modi Government stand on policies after announcement

The government looks confused on Loan Moratorium Case because no clear guideline was issued for borrowers and banks. Many borrowers thought that EMI is deferred and nothing has to be paid for this benefit. Bank thought EMI is differed but bank can charge interest for the moratorium period. The government no clarity on this issue has increased confusion between bank and borrowers.

Also Read: Why petrol and diesel price increased by the oil companies in India

By the way current government is known for its confusing policy and not sharing final results of its policy outcome. Government earlier decision for implementing demonetisation is unknown till date. Even people doesn’t know what government achieved with demonetisation where 100s lost their life and millions lost the jobs and business. Similarly half cooked GST implemented which still has issues and inconvenience.  You must know that such policies of government killed the MSME, SME and large number of organised job in the country. But still government keep announcing such confusing policy. Don’t know for whom to benefit.

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