TMS Ep316: Pvt credit, Air India-Vistara merger, Markets, New rice variety

After two years of subdued festivities, markets once again teemed with keen shoppers last October. Diwali was celebrated with usual pre-pandemic fervour. And sales figures, which are coming out now, clearly attest to it -- like auto sales jumped by 48%. The prime festival month saw 18.3% growth in total non-food credit offtake. Retail loans -- driven by robust housing and vehicle loans demand -- saw an impressive 20% jump. So what explains this surge in personal loans? 

Domestic air traffic also rose by 10% in October, as 11.4 million people thronged airports across the country. Meanwhile, the entry of the mighty Tata Group is making waves in the aviation sector, which is staring at consolidation now. India’s second largest airline, Vistara, will soon fly into history. It is being merged with Tata-owned Air India. But, apart from the opportunities, what challenges will this merger pose given the distinct work cultures of the two airlines? Will it be a smooth ride for Air India? We caught up with three experts to bring you the answers.

After going through the roof, the price of jet fuel is coming down now -- giving breather to airlines. But it is not easy sailing for the common man. Price of natural gas is still breaking the back. A government-appointed panel of Kirit Parikh has given a set of recommendations to reform the natural gas pricing regime. It wants to do away with the existing norms where prices are fixed in tandem with global markets. It may give some succour to us, but how will these reforms affect companies in the sector. We find out in our next report.

Meanwhile, in another piece of good news, researchers in China’s Yunnan University have finally achieved a breakthrough in developing a rice variety, which does not need to be planted every year. Once grown, it can be harvested for next eight seasons in four years. This podcast has more on it.