TMSEp183: PLI challenges, IPL media rights, falling rupee, wheat export ban

The government has been doggedly pursuing its flagship Production-Linked Incentive, or PLI, scheme to boost manufacturing, grow exports, generate employment and cut dependence on import. The scheme covers 14 significant sectors and involves a total outlay of 3 trillion rupees. And it is getting good responses too. Vendors of smartphone maker Apple -- such as Foxconn and Wistron– have set up bases in India. But there is a hurdle and a long road ahead with a lot of competition from smaller nations like Vietnam and Malaysia. 

 It is not just the PLI scheme, but the upcoming auction of IPL media rights is also on a sticky wicket. After TV viewership of recently-concluded IPL dropped by 30%, demands are being made to bring down the reserve price for the upcoming auction of its media rights for next five-year cycle. So what could be the possible reasons for the fall in IPL viewership and will it have any bearing on media rights sale? 

Markets can be as unpredictable as any IPL match. The Indian rupee has depreciated nearly 4 per cent this year as a stronger dollar, coupled with relentless foreign fund outflow, signaled diluted demand for emerging market currencies. While the overall impact of a weaker rupee is negative on the equity market, some sectors stand to benefit from this free-fall. 

Global indices soared yesterday as pandemic curbs eased by China apparently weighed heavy on multiple headwinds, including the ongoing war between Russia and Ukraine. These two countries also supplied 1/3rd of wheat which the world consumed. And when the supply came to a halt, the world turned towards India -- which promised to fill the void. But, soon, domestic compulsions forced it to backtrack. This episode of the podcast explains why India slammed a break on wheat export and more.

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