Mumbai Reigns Supreme in 2024 GROHE-Hurun India Real Estate 100

Mumbai continues to assert its dominance as the real estate capital of India, according to the 2024 GROHE-Hurun India Real Estate 100 report. The city leads the rankings with 33 companies, boasting a cumulative valuation of INR 6,40,560 crore. Macrotech Developers emerges as the most prominent company in Mumbai's real estate sector with a notable valuation of INR 1,36,730 crore.

The report encompasses companies from 10 states, with Maharashtra, Delhi, Karnataka, and Haryana at the forefront. Bengaluru follows Mumbai with 15 companies, featuring a cumulative valuation of INR 2,13,720 crore, with Prestige Estates Projects leading the pack at INR 63,980 crore. New Delhi ranks third with 14 companies and a cumulative valuation of INR 87,460 crore, highlighted by Oberoi Group's significant valuation of INR 28,430 crore.

Gurugram takes the fourth spot with 10 companies and a cumulative valuation of INR 2,49,320 crore, with DLF standing out with a valuation of INR 2,02,140 crore. Hyderabad and Ahmedabad share the fifth position, each with 4 companies. Hyderabad's real estate sector is valued at INR 68,290 crore, led by Aparna Constructions & Estates at INR 33,130 crore, while Ahmedabad's sector is valued at INR 68,390 crore, with Adani Realty's valuation at INR 56,500 crore.

Other notable cities include Noida with Max Estates, Pune with Gera Developments, Chennai with Casagrand, and Kochi with Skyline. Each of these cities contributes significantly to the real estate landscape of India, demonstrating the diverse and expansive nature of the market.

The 2024 GROHE-Hurun India Real Estate 100 report, produced by the Hurun Research Institute, provides a comprehensive overview of the leading cities and companies shaping the future of India's real estate industry.

UAE supermarket introduces UPI payments across outlets countrywide

The inaugural transaction using UPI at the Al Maya Supermarket was conducted in the presence of the Deputy Consul General of India in Dubai, Yatin Patel.

A UAE-based business conglomerate has announced the acceptance of India's Unified Payment Interface payments across its outlets in the country.

Unified Payment Interface (UPI) is an Indian instant payment system developed by the National Payments Corporation of India (NPCI) in 2016.

The inaugural transaction using UPI at the Al Maya Supermarket was conducted in the presence of the Deputy Consul General of India in Dubai, Yatin Patel.

Kamal Vachani, Group Director and Partner of Al Maya Group, highlighted the convenience and benefits that UPI payments bring to Indian customers.

"We are thrilled to be at the forefront of this innovative payment solution in the UAE. The introduction of UPI will not only enhance the shopping experience for our customers but also strengthen the economic ties between India and the UAE," Vachani said.

China lowers lending benchmarks after PBOC's surprise rate cut

The one-year loan prime rate (LPR) was lowered by 10 basis points to 3.35% from 3.45% previously, while the five-year LPR was reduced by the same margin to 3.85% from 3.95%

China cut benchmark lending rates at a monthly fixing on Monday, after the central bank surprised the markets by lowering a key short-term policy rate earlier in the session.

The one-year loan prime rate (LPR) was lowered by 10 basis points to 3.35% from 3.45% previously, while the five-year LPR was reduced by the same margin to 3.85% from 3.95%.

In a Reuters survey of 36 market participants conducted last week, 23, or 64% of all respondents, expected both rates to stay unchanged.

Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

Over 40% of Japanese firms lack AI adoption plans

A Reuters survey released recently laid bare a nuanced picture of Japanese corporate acceptance and social attitudes toward technology.

The survey, conducted by Nikkei Research, anonymously polled 506 companies from 3-12 July, with around half responding. It provides a broad view of how corporate Japan is striking a balance between incorporating AI and tightening cybersecurity amid changing social attitudes toward work.

The survey revealed a striking divide in AI adoption across Japanese businesses. While nearly a quarter of companies have already integrated AI into their operations, a significant portion – over 40% – have yet to make any immediate plans to leverage this cutting-edge technology. Specifically, 24% of respondents reported having introduced AI in their businesses, with an additional 35% planning to do so in the future. However, the remaining 41% indicated no intention to adopt AI, illustrating the varying degrees of technological embrace within corporate Japan.

For companies venturing into AI territory, the motivations are clear and multifaceted. When asked about their objectives for AI adoption, 60% of respondents cited the need to address labour shortages—a pressing issue in Japan’s ageing society. Additionally, 53% aimed to reduce labour costs, while 36% saw AI as a means to accelerate research and development efforts. These figures highlight the potential of AI to address some of Japan’s most pressing economic challenges.

However, the path to AI integration is not without its obstacles. Companies reported several hurdles in their AI adoption journey. A manager from a transportation company pointed to “anxiety among employees over possible headcount reduction” as a significant concern. Other challenges included a lack of technological expertise within organisations, the need for substantial capital expenditure to implement AI systems, and lingering concerns about the reliability of AI technologies. These factors collectively contribute to the hesitation some companies feel about embracing AI.

The survey also shed light on the cybersecurity landscape facing Japanese businesses. A concerning 15% of respondents reported experiencing cyberattacks over the past year, with an additional 9% indicating that their business partners had fallen victim to such attacks during the same period. The impact of these cyber incidents was substantial, with 23% of affected companies or their partners reporting temporary business halts, and 4% suffering information leaks.

In response to these digital threats, Japanese companies are taking varied approaches to enhance their cybersecurity. Nearly half (47%) of the surveyed firms are outsourcing their defense measures, while 38% have opted to develop in-house expertise. The recent high-profile cyberattack on publisher Kadokawa has further spotlighted this issue, prompting the Japanese government to work towards strengthening national cybersecurity measures.

Shifting social norms: The surname debate

Interestingly, the survey extended beyond technological concerns to gauge corporate attitudes towards social change, specifically regarding Japan’s marriage laws. Half of the surveyed firms expressed support for changing the law that currently requires married couples to share the same surname. This practice, which typically results in women adopting their husband’s name in more than 90% of marriages, has faced growing criticism for potentially infringing on individual identity and burdening women with extensive paperwork.

The issue has gained renewed attention following the Keidanren business lobby’s recent appeal to the government to allow married individuals to retain their original surnames. In the survey, 50% of respondents supported such a legislative change, compared to 11% who opposed it. A manager at a machinery firm argued that “the current system is hurting individuals’ – and especially women’s – dignity and freedom,” while a steelmaker official described the proposed change as the “natural demand of the times.” However, not all views were aligned, with a manager at a non-ferrous metal manufacturer expressing concern that allowing separate surnames could “weaken family bonds.”

When asked about the potential impact of this legal change on their businesses, 14% of respondents anticipated a boost in employee morale, and 10% expected it to aid in hiring activities. However, a majority (56%) foresaw no significant impact on their operations.

This comprehensive survey provides valuable insights into the multifaceted challenges and opportunities facing Japanese businesses today. From technological adoption and cybersecurity concerns to evolving social norms, the results paint a picture of a corporate landscape in transition, grappling with the demands of innovation while navigating complex social changes.

Bengaluru drone startup Aereo raises $15 million in Series B funding

Bengaluru-based drone start-up Aereo on July 19 announced that it has successfully closed a $15 million Series B funding round led by 360 One Asset. The round also saw participation of Aereo's existing partners such as StartupXseed Ventures and Navam Capital.

Vipul Singh, CEO of Aereo said that with this round of funds the company will be working on upgrading the scale and depth of intelligence that it provides through its various solutions.

"There will be a lot of work on the hardware and the software part. So, a good sum of the money we have raised will go into R&D and product development?-- future product development. Another significant portion will go?into business expansion, which will be both within India and overseas," Singh told Moneycontrol.

As part of other geographies, Aereo is looking to tap into markets such as Latin America, Central Africa, South East Asia, and so on.

"We?are eyeing both developed and developing nations where we feel that the industry and the problem statements and the competitor landscape are highly?favourable for us," Singh said.

The start-up founded in 2013 at IIT Kanpur has been working with with Tata Steel since 2019, aiding in the digitalisation of over 27 critical mines and stockyards. Apart from providing drone solutions, it also provides intelligence to its client with its AI-powered data analytics platform.

Over the past three years, Aereo has also been working on the SVATIMVA scheme, mapping over 45,000 villages and covering more than 50,000 sq. km of land area for the Digital India Land Record Modernization Program (DILRMP).

Singh also said that the company is looking to launch its Initial Public Offering within the next two to three years.

Union Budget: Govt to strike a balance between fiscal deficit, capex for growth, social spending

The continuation of the existing capex agenda (infrastructure, railways, defence, renewable/clean energy), higher budgetary allocation to revive rural economy, job creation and a firm roadmap for 'Viksit Bharat' by 2047 would be the key theme for the Union Budget 2024-25.

By Krishna Rao, Managing Director & Co-Head - Equity Broking at JM Financial Services

The upcoming Union Budget is expected to lay a strong foundation for India’s economic, infrastructure, and social development for the next decade, with strong reform measures and a visionary blueprint for growth. With the focus on adding further impetus and consolidating the ‘India growth story’, it is expected that the pace of reforms would be greatly expedited to accelerate progress. In addition, expectations would be high as this would be the first full-year budget for NDA 3.0.

We believe that the government would strike a balance between Fiscal Deficit, Capex for growth and Social spending. The continuation of the existing Capex agenda (Infrastructure, Railways, Defence, Renewable/Clean energy), higher budgetary allocation to revive the rural economy, job creation and a firm roadmap for 'Viksit Bharat' by 2047 would be the key theme for the Union Budget 2024-25. Markets would also keenly await any adverse changes in the capital gains tax on equities. In case there is no change in capital gains tax it would be considered positive for the Indian equity markets.

Fiscal Consolidation

The government would adopt a path to fiscal consolidation to balance macroeconomic growth with stability. The government would attempt to maintain the fiscal deficit for FY25 below 5.1 percent, with a target of achieving 4.5 percent by FY26, as forecasted.

Emphasis on CAPEX spending:

Capex will remain at the forefront while balancing Fiscal deficit. The Government is likely to continue its capex plan of Rs 11.1 lakh crore for FY25, as announced in the Interim budget, to keep Fiscal Deficit target unchanged at 5.1 percent of GDP (versus 5.8 percent of GDP in FY24) to reach 4.5 percent of GDP in FY26E.

The Government’s capex focus would continue to remain on defence, railways and infrastructure development given the Government’s vision of 'Viksit Bharat' by 2047. The continuity of pro-reform agenda like PLI schemes and incentivizing clean energy (RE, Green Hydrogen) would aid revival in private Capex as well as job creation.