News in Numbers, Feb 09, 2017: Indian Unicorns: Softbank sends a message

$475 million

What is it? The amount written off by Softbank in value of its shareholding in Snapdeal and Ola, two Indian unicorns in e-commerce and cab hailing industries respectively.

Why is it important? It’s a sign that investors are adjusting their expectations from home grown tech startups, given the competition from global players such as Amazon and Uber. Besides, as the customer acquisition costs continue to go up, startups and investors are rethinking about the size of addressable market for business models that are imported from abroad.

Tell me more: Softbank, especially under former Softbank president Nikesh Arora, was one of the most active players in Indian startup space a few years ago, and led an investment of $210 million in Ola and $627 million in Snapdeal in 2014.

 

6.25%

What is it? The repo rate, or the key policy rate for banks, which the Reserve Bank of India (RBI) held for the second time in a row in its bi-monthly policy reviews.

Why is it important? Amidst popular expectation of a rate cut now that banks are flush with liquidity following nationwide deposits, the RBI left it untouched. It indicates the central bank wants to take its time to assess the impact of demonetisation on macroeconomics. Be it inflation or wages, it is now being said RBI will take a call after April.

Tell me more: RBI reiterated its commitment to bring down headline inflation to 4%, and noted Q4 FY17 it will remain below 5%. It alsorevised its GDP growth forecast from 7.1% to 6.9% in FY17.

 

140

What is it? The cases of rape registered with the Delhi police in January, 2017.

Why is it important? Crime against women continue unabated in the capital, despite concrete measures by the Delhi police, including sensitising the force, help desks at police stations and increased patrolling. While 14% of rape complaints remained unsolved in 2016, it was 30% in January.

Tell me more: There were 238 cases of molestation and 51 eve-teasing cases registered in January.

 

500,000

What is it? The proposed annual number legal immigrants allowed into the US, cutting the present quota by half in the Reforming American Immigration for Strong Employment Act (RAISE Act).

Why is it important? The latest proposal adds another angle to the immigration debate taking the US by storm after Donald Trump’s election. It seeks to limit entry of foreigners without a skills-based visa by cutting the number of green card or legal permanent residency issued annually.

Tell me more: The bill also seeks to cap the refugee programme to 50,000 a year, coming in the wake of a year (fiscal ended September, 2016) that allowed 84,995 refugees in, the highest under the Obama administration.

 

$ 1 trillion

What is it? Reduction in China’s foreign exchange reserves in the last three years.

Why is it important? At $2.998 trillion, the reserves are the lowest in nearly six years. While nearly $3 trillion is not small by any measure, it comes when China’s economic growth is moderating. Some analysts believe that it could lead China to devalue its currency, if the trend persists.

Tell me more: Chinese government is concerned about the outflow of capital and has tightened rules on forex purchases and cross-border renminbi remittance in the recent past.

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