Morning Brief: India Pips China In Another Key Equity Index; Modi 3.0 Launches Rs 79,000 Crore Tribal Welfare Push; India’s Electronics Exports Surge, Thanks To Apple

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India Pips China In Another Key Equity Index 

India has overtaken China in another important global stock index, the MSCI AC World Investable Market Index (IMI). As of Wednesday (18 September), Indian stocks make up 2.35 per cent of the index, slightly ahead of China’s 2.24 per cent.

This shift is driven by the strong performance of the Indian stock market, which has led to more Indian companies being included in the index. The MSCI AC World IMI tracks stocks from 23 developed and 24 emerging markets, with a total of 8,815 companies.

The US dominates the index with a 63 per cent share, followed by Japan, the UK, Canada, and France. Currently, India is in sixth place but is expected to move ahead of France and Canada soon, potentially making it the fourth-largest country in the index.

Modi 3.0 Launches Rs 79,000 Crore Push For Tribal Welfare

The Union Cabinet has approved the Pradhan Mantri Janjatiya Unnat Gram Abhiyan, a major new initiative with a budget of Rs 79,156 crore aimed at improving conditions for tribal communities. The program will benefit over five crore people across 63,000 tribal-majority villages and aspirational districts by enhancing infrastructure, health, education, and livelihoods. The Centre will contribute Rs 56,333 crore, with states adding Rs 22,823 crore over five years. The plan includes upgrades to infrastructure, better connectivity, and support for 22 lakh forest rights holders, involving multiple ministries.

Interestingly, this announcement comes just before the Jharkhand elections, where the BJP lost all five Scheduled Tribe seats in the 2024 Lok Sabha elections.

India’s Electronics Exports Surge 22 Per Cent

Apple Inc. and its Indian vendors have driven a significant boost in electronics exports, which surged by 21.8 per cent from April to August 2024, reaching $13.57 billion. This growth makes electronics the fastest-growing commodity among the top 10 exports from India. Mobile devices, a key product in this category, saw exports valued at $7.56 billion, accounting for 55.7 per cent of total electronics exports.

Apple’s vendors—Foxconn, Tata, and Pegatron—were pivotal in this increase, contributing 67 per cent ($5 billion) of mobile device exports. These vendors also represented 37 per cent of total electronics exports during this period.

Other Developments

Navy Ditches Leased MQ-9B Drone At Sea After Glitch

One of the two MQ-9B drones leased by the Indian Navy from General Atomics in 2020 had to perform a controlled ditching off Chennai on Wednesday after encountering a technical failure. The drone was on a routine surveillance mission from INS Rajali near Chennai when the issue occurred. Unable to reset the system in flight, it was navigated to a safe area over the sea before the controlled ditching.

This incident comes as India progresses in negotiations to procure 31 MQ-9B drones from the US with an aim to increase indigenous content. The drones were initially leased after the Galwan Valley clashes with China in 2020.

India Issues Notice To Pakistan For Indus Water Treaty Review

India has formally notified Pakistan, seeking a review of the Indus Water Treaty, sources confirmed. The notice, sent on August 30, cites fundamental changes in demographics, environmental concerns, and clean energy needs as reasons for the reassessment. Persistent cross-border terrorism was also mentioned as a key factor. This move follows ongoing disputes over the Kishanganga and Ratle hydro projects. The treaty, signed in 1960, governs the sharing of cross-border rivers between the two nations.

Fed Rate Cut Sparks Mixed Reactions In Indian Markets

The US Federal Reserve slashed key policy rates by 50 basis points on September 18, marking its first cut in over four years. While the move may provide a short-term boost to Indian equities, experts are cautious, fearing it signals concerns about a potential U.S. economic slowdown. Indian sectors like Banking, IT, and Pharma are expected to benefit from the easing interest rate cycle. Gift Nifty futures surged 120 points before paring gains, while Infosys and Wipro ADRs also initially rose but later fell by up to 1.8 per cent.

Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, noted the rate cut could increase flows to emerging markets due to a weaker dollar and lower rates. He added that the Fed's stance has shifted significantly, from calling inflation transitory to acknowledging the need for sustained higher rates.

Iranian Hackers Sent Stolen Trump Info To Biden Campaign

Iranian hackers sent unsolicited emails to people linked to Joe Biden's campaign with information stolen from Donald Trump's team. The emails aimed to interfere in the 2024 election. No recipients responded, and media outlets approached did not publish the material. Kamala Harris' campaign condemned the emails as "unacceptable" but noted they were seen as phishing attempts. The emails were received before Trump’s campaign acknowledged the hack, and recipients were unaware of their origin.

From The States

Naidu Accuses YSRCP of Using Animal Fat in Tirupati Laddu

Andhra Pradesh CM N Chandrababu Naidu sparked controversy, claiming the YSRCP regime used animal fat in the revered Tirupati Laddu prasadam. Naidu accused Jagan's administration of disrespecting Lord Venkateswara Swamy by substituting ghee with animal fat during their tenure from 2019 to 2024. He expressed shock and called it a disgrace to the sacred temple. The TDP has long criticized the YSRCP for compromising the laddu's quality. Recently, the TTD conducted an in-house assessment with dairy experts, reaffirming the use of high-quality ingredients.

Kolkata Doctors' Strike Continues as Talks Fail

Talks between junior doctors and the Bengal government failed to break the deadlock over safety concerns. Doctors accuse the government of refusing to provide written minutes of their discussions, despite a generally positive meeting. They will continue their strike until written directives on hospital safety are issued. The government acknowledged most of the doctors' demands but did not formalise them in writing. Doctors plan to send an email outlining their demands to push the government for action.

Infighting Hits BJP in Madhya Pradesh

Factional feuds within the BJP in Madhya Pradesh have come to light, with state president V D Sharma struggling to contain internal dissent. Leaders across Chhatarpur, Vindhya, and central MP have aired grievances publicly, highlighting rifts in the party that recently won 163 of 230 Assembly seats. In Chhatarpur, criticism has been directed at Union Minister Dr Virendra Kumar Khatik over his appointment of representatives, with allegations of involvement in criminal activities. The unrest coincides with ongoing rebellions within the BJP in Haryana.

Madras HC Rejects Tiruvalluvar Birthday Change Petition

The Madras High Court has dismissed a petition seeking to officially change the celebration date of Tamil saint-poet Tiruvalluvar’s birthday. The petition, filed by Prof. Dr. Samy Thiyagarajan, proposed recognizing Tiruvalluvar's birthday on Anusham Natchatram in Vaikasi (May) instead of the currently observed date in Thai (January). Justice M. Dhandapani ruled that there is no conclusive evidence to determine Tiruvalluvar's exact birthday. The court's decision was based on the lack of substantial historical records supporting a specific date for the poet, whose teachings are enshrined in the Tirukkural.

Ten Years Of Swarajya

Yesterday marked a significant milestone for us at Swarajya—10 years since we had a humble ceremony to launch swarajyamag.com. While we will celebrate...read here.

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