RBI's ULI to enable faster credit to MSMEs, agriculture

In today's edition of Business Bytes, we take a closer look at:

• India and Singapore strengthen economic ties, focus on digital connectivity and green economy
• FACT: Scottish and Irish whiskies are known for their use of barley, while Canadians and Americans favor corn and rye. India’s vibrant liquor scene boasts a diverse array of state-specific spirits, reflecting a rich regional culture
• ITC Foods is turning its attention to consumers aged 45 and older with a new health-focused product line under the “Right Shift” brand, targeting around 10 million households
• LEAD: The RBI plans to roll out the “Unified Lending Interface (ULI)” throughout the country in order to meet the significant unmet demand for credit across various sectors, particularly for agricultural and MSME borrowers
• HIGHLIGHT: The Janmashtami celebrations across the country sparked a significant business surge, with transactions surpassing Rs 25,000 crore, according to the Confederation of All India Traders (CAIT)
• India is expected to witness a strong growth in co-branded credit cards, which will likely to be driven by attractive rewards, strategic partnerships, and exclusive deals
• FOREX INSIGHTS: The US Dollar recently hit new yearly lows below 101.00, driven by expectations of potential Federal Reserve rate cuts, which were reinforced by dovish comments from Fed officials, including Chair Jerome Powell
• The Indian Cabinet has approved a significant overhaul in science and technology funding with the introduction of the ‘Vigyan Dhara’ scheme

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India and Singapore commit to strengthening ties in new areas

The Comprehensive Economic Partnership Agreement (CEPA) has significantly increased bilateral trade, and Singapore remains a major source of foreign direct investment for India. Going forward, India and Singapore are deepening their financial and economic ties, focusing on digital connectivity, fintech, and the green economy. Recent meetings reviewed progress and explored new growth areas, while also engaging with top business leaders for investment opportunities.?

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FACT OF THE DAY

Historically, Scottish and Irish distillers have perfected the use of barley, while Canadians and Americans lean towards corn, rye, and wheat. In contrast, India lacks a globally recognized indigenous liquor like China’s Baiju or Japan’s Sake. Instead, the Indian market is filled with locally crafted versions of European spirits, known as Indian-made foreign liquor (IMFL). What’s intriguing is that nearly every Indian state has its own unique distilled spirit, adding a rich layer of diversity to the country’s liquor culture.

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ITC foods targets 45+ market with new health-conscious line

ITC Foods is shifting its focus to consumers aged 45 and above, a demographic often overlooked in favour of younger generations like Gen Z and millennials. The company is launching a new line of health-conscious foods under the brand “Right Shift,” targeting approximately 10 million households.? ITC believes that the 45+ age group represents a significant market opportunity, with an increasing number of consumers in this segment seeking healthier food options due to age-related changes.

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LEAD STORY

RBI launching ULI platform to offer credit to borrowers

The RBI plans to roll out the “Unified Lending Interface (ULI)” throughout the country in order to meet the significant unmet demand for credit across various sectors, particularly for agricultural and MSME borrowers. Piloted last year, the ULI aims to accelerate the credit appraisal process and enable faster loan approvals through a consent-based flow of digital information.

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HIGHLIGHT OF THE DAY

The Janmashtami celebrations across the country sparked a significant business surge, with transactions surpassing Rs 25,000 crore, according to the Confederation of All India Traders (CAIT). These figures underscore the strong consumer spending during the festival, driven by the lively Janmashtami festivities, marking one of the most commercially vibrant periods of the year.

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Cobranded credit cards to garner 25% of market by FY ’28

India is expected to witness a strong growth in co-branded credit cards, which will likely to be driven by attractive rewards, strategic partnerships, and exclusive deals. Currently, cobranded credit cards hold a market share of 12-15%. Approximately 75-80% of cobranded cards are issued through e-commerce partnerships.

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FOREX INSIGHTS

The US Dollar recently hit new yearly lows below 101.00, driven by expectations of potential Federal Reserve rate cuts, which were reinforced by dovish comments from Fed officials, including Chair Jerome Powell. The Dollar Index dropped to a 13-month low of around 100.70. Key upcoming economic data, such as Durable Goods Orders and the PCE index, will be closely watched for clues on the Fed's next steps. Meanwhile, the Euro and British Pound have strengthened against the dollar, and the USD/INR pair showed some volatility as the rupee tested its two-week high. The probability of a September rate cut has risen to nearly 70% following Powell’s Jackson Hole speech.

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Cabinet approves Vigyan Dhara Scheme with a budget of Rs 10,579 Crore

The Indian Cabinet has approved a significant overhaul in science and technology funding with the introduction of the ‘Vigyan Dhara’ scheme. This new initiative consolidates three existing umbrella schemes into a unified central sector program, aimed at strengthening science and technology capacity, fostering research, and promoting innovation across the country.

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