Coal India & Lithium, RBI & UPI Working On DBT, Airtel To Focus On 5G, Chabahar Port Infrastructure, Etc.

Market Briefs

Main Briefs

RBI and Banks Drive DBT Adoption on UPI:

Context:

• RBI and banks push DBT recipients towards UPI for transactions.

• NPCI integrates rural banks into UPI network.

Impact:

• Increase in digital transactions, reducing cash dependency.

• Improved financial inclusion via wider UPI access.

Recommendations:

• Promote UPI usage among DBT beneficiaries.

• Support rural banks in offering UPI services.

Developments:

• NPCI handles 13 billion monthly transactions on UPI.

• Sarvatra Technologies aids local banks in UPI integration.

• UPI lives on 581 banks, up from 414 in the previous year.

Opportunities:

• Rural UPI expansion can drive significant digital transaction growth.

• Onboarding rural merchants enhances UPI accessibility.

Challenges:

• Instant cash withdrawals challenge UPI adoption.

• Feature phone usage among rural users may hinder UPI uptake.

Strategy:

• Educate and incentivize rural populations for digital payments.

• Provide infrastructure support for rural banks.

• Transition wholesaler payments to digital, promoting digital acceptance among retailers.

Coal India & NMDC Seek Lithium Abroad:

Background:

• Coal India & NMDC hunt for lithium in Chile & Australia.

• Indian govt. urges state firms to explore overseas.

Potential Outcome:

• Lithium access for renewable energy & electric vehicles.

• Stronger global partnerships for mineral security.

Recommendations:

• Boost collaboration & sustainability in mining.

• Prioritise resource security strategies.

Key Developments:

• NMDC's Legacy Iron Ore unit in lithium deals with Hancock Prospecting.

• Indian delegations to explore in Zambia & Congo.

• Trade pacts considered with Chile & Mongolia for minerals.

Opportunities:

• India's rise in the global lithium market.

• Diplomatic gains through joint exploration efforts.

Challenges:

• Navigate regulatory & geopolitical hurdles.

• Balance economic growth with environmental concerns.

Strategic Response:

• Forge efficient partnerships & invest in mining tech.

• Strengthen domestic capabilities while expanding abroad.

Briefs, You Can’t Miss:

1. The merchandise trade deficit widened to $19.1 billion in April, reflecting challenges in balancing imports and exports.

2. Airtel halts investments in 4G infrastructure, focusing solely on enhancing capacity for 5G services.

3. LG aims to strengthen its presence in the Indian TV market with products tailored to local preferences.

4. Development of Chabahar Port is poised to facilitate India's trade expansion by opening new routes, but adequate infrastructure is crucial, according to GTRI.

5. Moody's forecasts India's economy to grow by 6.6% in FY25, indicating steady expansion.

6. Financial incentives such as tax breaks and subsidies can drive the adoption of eco-friendly manufacturing practices, promoting sustainability.

7. India's diesel exports to Europe declined by 20% due to increased supplies from the US and Gulf countries.

8. SBI raises fixed deposit interest rates by up to 75 basis points, offering improved returns for investors.

World Briefs

• Sri Lanka is discussing with India the establishment of a small arms manufacturing facility, according to Premitha Tennakoon.

• China's housing crisis is putting pressure on state-owned developers, posing challenges for Xi Jinping's administration.

• Amazon Web Services intends to invest $8.4 billion in cloud infrastructure in Germany, indicating a significant commitment to the region.

• The surge in Huawei flagship store openings in China suggests a potential rivalry with Apple in the market.

AI Briefs

• Google made 8 significant AI-related announcements at I/O 2024, including updates to its search capabilities and AI features for Android.

• The Indian government is aiming to enhance the use of artificial intelligence in food processing.

• Highperformr, a startup founded by former executives of Freshworks, has secured $3.5 million in seed funding for its AI-focused ventures.

• TCS chairman N Chandrasekaran believes that GenAI technologies will play a crucial role in advancing every sector and country.

• Elon Musk's xAI is close to finalising a $10 billion deal to lease AI servers from Oracle.

• Meta Platforms plans to discontinue its Workplace app to focus on developing artificial intelligence and metaverse technologies.

• Meta is reportedly working oto Develop Devices Based on Meta Horizon OS.

Company Of The Day

Company Name: VEDANTA

• Founder: D.P. Agarwal

• Year Of Foundation: 1954

• Headquarter:  Hyderabad, Andhra Pradesh, India

• Industry:

  Vedanta is a global diversified natural resources company.

• Why Is It in the News?

  Vedanta bought AvanStrate because it makes glass parts for TFT LCD panels used in different gadgets. This purchase boosts Vedanta's role in India's electronics production, which fits with the company's aim to help India rely more on its own electronics.