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Morgan Stanley's Forecast, FDI in Insurance, Electoral Bond Disclosure, Google, Gemini, Etc

Author

Vaishali Sharma
March 19, 2024

Government Policy Reforms Propel Rs 54,000 Crore FDI Inflow into Indian Insurance Industry:

  • Insurance sector attracted nearly Rs 54,000 crore FDI in the last nine years due to the government's liberalisation of FDI norms.

  • Permissible FDI limit increased from 26% in 2014 to 49% in 2015 and further to 74% in 2021.

  • FDI limit for insurance intermediaries raised to 100% in 2019.

  • Rs 53,900 crore FDI received in insurance companies between December 2014 and January 2024.

  • Number of insurance players increased from 53 to 70 by January 2024.

  • Insurance penetration rose from 3.9% in 2013-14 to 4% in 2022-23, while density increased from USD 52 to USD 92.

  • Asset Under Management grew to Rs 60.04 lakh crore from Rs 21.07 lakh crore in 2013-14, and total insurance premiums more than doubled to Rs 10.4 lakh crore.

  • Insurance sector opened for private players in August 2000 with foreign companies allowed ownership of up to 26%.

  • Recent major FDI inflow includes Zurich Insurance-Kotak General Insurance deal where Zurich proposed to acquire a 70% stake in Kotak Mahindra General Insurance for Rs 5,560 crore.

  • Acquisition subject to regulatory approvals from RBI and IRDAI.

India's Economic Growth Forecasted at 6.5%-7% by Morgan Stanley, Unlikely to Match China's High Growth:

  • Morgan Stanley's economist suggests India won't reach China's growth rates due to infrastructure constraints and a low-skilled workforce.

  • India is expected to grow steadily at 6.5%-7%.

  • Morgan Stanley remains optimistic, comparing India's current expansion to the mid-2000s boom.

  • India is unlikely to replace China as a manufacturing hub due to China's advanced capabilities and expansion into new industries.

  • Recent growth rate was 8.4% in the final quarter of 2023.

  • Government expects 7% growth in the upcoming fiscal year.

  • Potential rate cuts by RBI may be influenced by strong growth, although inflation remains a concern.

  • RBI Governor indicated rate cuts would depend on inflation settling sustainably around the 4% target, but recent data show inflation above target.

Tata Steel's Restructuring Plan: Closure of Coke Ovens Signals Shift to Sustainable Steelmaking:

Tata icon in 3D. My 3D work may be seen in the section titled "3D Render."

  • Tata Steel ceases coke oven operations at Port Talbot plant in Wales, UK, due to operational instability.

  • Decision part of transition to low-carbon steelmaking via electric arc furnace route.

  • Company to increase coke imports to offset impact of coke oven closures.

  • Closure follows previous announcement of blast furnace and coke oven closures, with transition expected to lead to up to 2,800 job losses.

  • Tata Steel in advanced consultations with US trade unions for planned restructuring, involving closure of iron and steelmaking assets and investment in low-CO2 steelmaking.

  • £1.25 billion investment planned, with the UK government committing £500 million and Tata Steel investing £750 million.

Briefs, You Can’t Miss:

  1. Tata Sons plans to offload 23.4 million shares of TCS in a block transaction, amounting to Rs 9,362 crore.

  2. The Supreme Court has mandated that SBI must fully disclose the details of electoral bonds by March 21.

  3. Bharti Airtel, State Bank of India, and Zomato have been included in Jefferies' hotlist for the next five years.

  4. Clinisys Laboratory Solutions plans to increase its hiring in India by 50% in 2024.

  5. Vaishnaw stated that India aims to become one of the top five semiconductor producers globally within the next five years.

  6. Adani refutes claims of a bribery investigation by US prosecutors.

  7. Blinkit could surpass Zomato's food business within a year, says Deepinder Goyal.

World Briefs

  • MrBeast and Prime Video have revealed plans for the biggest game show ever.

  • India and Peru are on the verge of resolving matters related to a free-trade agreement document.

AI Briefs

  • According to reports, Apple is looking into collaborating with Google to introduce Gemini-powered features on iPhones.

  • Roblox has introduced new AI features that streamline the process of creating avatars and 3D models, reducing the time required.