TMS Ep96: IT growth, crude oil price, Somasundaram PR, Revenue Budget

The share of the Information Technology sector in India’s GDP has risen from 1.2% in 1998 to almost 10% in 2019. And it has made its presence felt globally too. Six Indian tech giants -- led by TCS and Infosys -- are now among the 25 most valuable IT brands worldwide, according to Brand Finance. TCS is now world number two, just behind Irish giant Accenture. We find out more about the Indian IT industry’s journey so far, and also about the road ahead for it

From the Indian IT giants, let us now shift our focus to the looming war clouds over Eastern Europe. The mounting tension between Russia and the Western world over the Kremlin's military build-up on the Ukrainian border is also providing the bullying fodder to the oil market. For the first time in seven years, oil touched $90 a barrel. And a disruption in supply may push it beyond the $100 mark. So what such a rise will mean for the Indian economy and will it upset the government’s budget math?

While oil prices soared, that of gold fell over 1% on MCX yesterday, in-line with equities. But, the weakness in the prices of the yellow metal is prompting Indians to buy more gold. The demand for gold jewellery had hit a six-year high in 2021. So, is the trend here to stay as investors flock to safe-haven assets in the backdrop of risks to inflation amid rising oil prices and faster-than-expected rise in interest rates in the US? Business Standard’s Puneet Wadhwa caught up with Somasundaram PR, Regional CEO, India, at the World Gold Council to understand how the gold demand is likely to pan out in 2022.

Several leading jewellers have, meanwhile, appealed to the government to reduce the import duty on gold in the upcoming budget. The Union government is now busy giving final touches to the contours of the budget, which will be presented on February 1. India’s Union Budget can be classified into two parts -- the capital budget and the revenue budget. Let us delve into the details of the latter and more in this episode of the podcast. 

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