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Morning Brief: India’s First Sovereign Wealth Fund In The Works; Rahul Gandhi Talks Manufacturing, Skills In US; GST Council Meets Today
Dear Reader,
Start your day informed with our quick roundup of key news and updates.
India's First Sovereign Wealth Fund In The Works
The Center plans to establish India's first sovereign wealth fund by pooling shares from listed public sector companies. The fund will include new and existing shares, dividends, and capital raised from strategic investors and borrowing against shares.
It will also incorporate shares from the Specified Undertaking of the Unit Trust of India (SUUTI), which holds stakes in various private companies. The proposed fund could amass a corpus of Rs 50 trillion from these listed PSUs, which can then be leveraged for further investments.
The sovereign fund is intended to invest both domestically and internationally. The government owns over 51 per cent of 48 publicly traded companies, and this stake will be transferred to the new fund.
Rahul Gandhi Talks Manufacturing, Skills In US
Speaking in the US, Rahul Gandhi, Leader of the Opposition in the Lok Sabha, criticised India's lack of respect for skilled individuals and the disconnect between the education system and the business sector. He emphasised the need for India to boost its own production to tackle unemployment, noting that countries like China and Vietnam are managing it well.
Gandhi also stated that India needs to develop its own manufacturing capabilities and improve vocational training to better align education with business needs. However, in India, Gandhi and his close associates, including former RBI Governor Raghuram Rajan, have not been very supportive of the government's manufacturing push through Production Linked Incentives. These incentives have significantly driven growth in sectors like electronics.
GST Council To Meet Today
The GST Council is set to meet today to discuss various issues, including the taxation of insurance premiums, rate adjustments suggested by the GoM, and a report on online gaming.
The fitment committee will present findings on GST rates for life, health, and reinsurance premiums and their revenue impact. The Council, chaired by Finance Minister Nirmala Sitharaman, will consider reducing the 18 per cent tax on health insurance or exempting certain groups like senior citizens.
Discussions will also cover possible GST cuts on life insurance premiums. Additionally, the Council will review the ongoing efforts against fake registrations and present the suspected amount of GST evasion.
Other Developments
Rs 25,000-Crore Maritime Development Fund Soon
The government is expected to approve a Rs 25,000-crore Maritime Development Fund this month to support indigenous ship-building and blue water infrastructure projects.
The fund will be structured as a corporation, with the government holding a minority stake of at least 26 per cent and the rest offered to multilateral financial institutions and global funds.
Inter-ministerial consultations are ongoing, and the fund will offer debt, equity, viability gap funding, and buyer credit. A final cabinet note is due later this month, aiming for approval as part of the government’s 100-day agenda.
Foreign Investors Pour $18 Billion Into Indian Sovereign Debt
Global funds have invested almost $18 billion in Indian government debt since JP Morgan Chase announced its inclusion in the index in September 2023. This inclusion, phased over 10 months from June 28, 2024, to March 31, 2025, has expanded the $1.3 lakh crore Indian sovereign debt market to a wider range of international investors.
The influx of foreign funds is expected to continue, driven by prospects of a sovereign ratings upgrade and India's strong fiscal health, fiscal consolidation, and stable political environment.
Government Finds Markets For Indian Space Startups
ISRO plans to keep working with major economies while handing off other opportunities to private companies. The countries were identified through a global survey by India's In-Space and the Ministry of External Affairs. The names of these countries haven’t been revealed.
Apple iPhone 16 Launch Today
Apple's highly anticipated ‘It’s Glowtime’ special event is happening today, September 9, 2024. The company is expected to unveil the new iPhone 16 series and the Apple Watch Series 10.
The iPhone 16 and iPhone 16 Plus are anticipated to feature the A18 Bionic chipset, while the iPhone 16 Pro and iPhone 16 Pro Max are set to be powered by the more advanced A18 Pro processor.
The event will also feature announcements about iOS 18, watchOS 11, and other updates. It will take place at Apple’s Cupertino Park in California. For viewers in India, the event will start at 10:30 PM IST.
From The States
J&K: Jamaat’s First Show Of Political Strength Since 1987
In its first major political move since 1987, Jamaat-e-Islami-backed independent candidates held a rally on Sunday (8 September) to campaign for the Assembly polls in the Union Territory of J&K.
Despite its ban under UAPA until 2029, Jamaat-e-Islami is fielding former members Dr Talat Majeed, Sayar Ahmad Reshi, and Nazir Ahmad as independents. Jamaat-e-Islami has faced criticism for its role in leading militancy in J&K, with Hizbul Mujahideen initially branding itself as its armed wing.
Haryana: BJP Struggles To Placate Disgruntled Leaders
Senior BJP leaders, including Haryana CM Nayab Saini and former Chief Minister Manohar Lal Khattar, are struggling to pacify disgruntled state leaders who are rebelling after being denied tickets.
The BJP's list of 67 candidates has led to several resignations, including former minister Ranjit Singh Chautala and OBC chief Karan Dev Kamboj. Despite Saini’s efforts to reconcile, Kamboj showed his displeasure by refusing to shake hands.
Khattar also met with upset leaders, but the outreach has been largely unsuccessful, with Kamboj meeting Congress leader Bhupender Singh Hooda.
From The Ground
Our very own Sharan Setty and Ankit Saxena were recently in Jammu and Kashmir, capturing the on-the-ground realities ahead of the Union Territory's first—and most likely last—assembly elections, starting on 18 September. We’re sharing two of their reports, with more insightful stories coming soon. Here’s a glimpse of their firsthand accounts:
After 30 years of displacement, the hope for permanent rehabilitation among Kashmiri Pandits is dwindling. In Jagti Colony, families live in the shadow of uncertainty, still waiting for the promise of home to be fulfilled.
For the first time ever, the Valmiki community will cast their vote in J&K’s assembly election. Their journey towards equal rights has been largely overlooked, but their voice could play a pivotal role in the future of the region.
Stay tuned for more insights!
Prakhar Gupta
