Google commits $10 billion to hasten India’s digitization:
Google will invest close to $10 billion (approximately INR 75,000 crore) over the next five to seven years through equity investments and tie-ups.
This investment reflects the confidence in the digital economy and future of India. India has taken a centre stage for global tech giants like Facebook, Amazon and Google as India emerges as the country having largest number of internet users. The investment will focus on enabling affordable access & information for every Indian citizen.
CPI inflation came down from 6.3% in May to 6.1% in June:
Consumer Price Index-based inflation rose slightly above the RBI’s target band of 4 percent (with a margin of -/+2). The rise in headline inflation was mainly on account of increase in food inflation.
The CPI data send the mixed signals for MPC. It may open scope for one more rate cut as we expect government to support growth. The question is whether lowering interest rates further can do much to induce borrowers to borrow and lenders to lend.
Google invests $4.5 billion in Jio platform:
With the latest investment Jio platform has raised INR 1.53 trillion, selling 32.97 percent stake to investors including Facebook, private equity firms and sovereign wealth funds in the process. This $4.5 billion investment is a part of the $10 billion fund mentioned above.
RIL so far has raised a raised a total of INR 2.13 trillion through the combined investments in Jio platforms, right issue, and investment by BP global. This capital raised is significantly more than INR 1.61 trillion net debt for FY20. Reliance has now become a zero net debt company ahead of its target.
India becomes net exporter after nearly two decades:
The country witnessed a minor trade surplus in June eves a merchandise exports continue to shrink for 4th month in a row.
Significant slowdown in domestic economic activity due to lockdown imposed to prevent the spread of Covid-19 has significantly curtailed imports and this trend is expected further going ahead in FY21.
However, a sharp contraction in imports, an indicator of domestic demand raised concerns.
