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Profiling: Hindi Vs Non Hindi Markets

One way to understand the market is through the language spoken by consumers. And in India, it can be broadly divided into Hindi and non-Hindi speaking population. The data can be further sliced to look at differences between Hindi speaking states.

For example, Chandigarh is vastly different from Patna in all aspects – demographics to economic affluence. This article is an attempt to understand the major differences between the Hindi and non-Hindi speaking markets through three parameters – urbanisation, education and female population. In the next article, we’ll look at what people own in these two markets.

We have considered 14 states as Hindi speaking states, mainly based on percentage of people who can talk in Hindi as per 2001 Census data (Yes, that’s the last time Census released data on languages spoken). Marathi is the mother tongue for Maharashtra, but they would come under Hindi speaking state because a large proportion of the population can talk in Hindi. A detailed table can be seen at the end of this article.

What can these indicators speak of:
Urbanisation – more non-farm employment opportunities, higher share of service sector jobs, more opportunities to move ahead economically
Literacy – ability to read and understand issues and take an informed decision.
Share of female population – how are women treated in the society.

In terms of population, Hindi speaking states account for nearly two-thirds of India’s population. But in other parameters – urbanisation, literacy and share of female population – they lag behind.

State-wise data on the parameters used in the analysis, see the map below.

In the second-part of the series in understanding Hindi vs Non-Hindi speaking markets, we will look at affluence as measured by ownership of assets like two or four wheelers etc. For more data, please check HowIndiaLives.com, India’s most granular database covering all the 715,000 geographical locations.

(John is co-founder of How India Lives)

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Are Promoters Cashing Out?

 

A larger share of IPOs has gone to promoters and investors than to the companies this year. Several LEDs bulb brands are found to be non-compliant. Job growth is not keeping pace with that GDP’s.

 

76%

What is it? The percentage of LED (light emitting diode) bulb brands, besides 70% of LED downlighter brands, sold across 200 outlets in India that were found to be non-compliant with the government’s consumer safety standards, according to a survey by market research firm Nielsen.

Why is it important? The report says this would impact energy efficiency in India, which is looking to replace over 200 million incandescent light bulbs with LED light bulbs under the Ujala scheme. This would pose safety hazards for consumers besides causing losses to the government as some of these brands are manufactured illegally and sold. The total LED market is reportedly worth Rs 10,000 crore, with LED bulbs and downlighters accounting for about 50%.

Tell me more: The Nielsen study was conducted in four cities: New Delhi, Mumbai, Ahmedabad and Hyderabad. Of these, the capital recorded the highest number of Bureau of Indian Standards violations, with nearly three-fourths of LED manufacturers being non-compliant.

 

5.18 million

What is it? The aggregate employment in 1,473 medium to large companies in 2016-17, against 5.07 million in 2015-16 and 5.01 million in 2014-15, according to a study by ratings agency Care Ratings.

Why is it important? The report makes a case for employment generation not being aligned with GDP (gross domestic product) growth. The annual growth in employment in the companies under review was 1.18% in 2015-16, against GDP growth of 8%. In 2016-17, growth in employment improved to 2.25%, while GDP growth slowed to 7.1%. This is also a worrying trend for the NDA-led government, which had swept to power in 2014 with employment generation as one of its key promises.

Tell me more: The study warns it does not include the small and medium sector, which plays a dominant role in employment generation. However, it claims to be “indicative of the trends witnessed in the last two years”.

 

1,000 km

 What is it? The length of the proposed tunnel that China is planning to build to divert water from Brahmaputra, one of India’s largest rivers.

Why is it important? The tunnel, which would be the world’s longest if built, could become another point of tension between the two Asian countries. Recently, India and China were locked in a 73-day military stand-off over the construction of a road by the latter in Doklam, the border tri-junction with Bhutan. The tunnel project involves draining of water from the river in southern Tibet, which is close to Arunachal Pradesh. India, a riparian state, has previously expressed concern over the number of dams being built by China on Brahmaputra; the Chinese say these are run-of-the-river projects and not used for storage purposes.

Tell me more: The tunnel is expected to drop from the world’s highest plateau in various sections connected by waterfalls and provide water to China’s Xinjiang region, a barren area in northwest China.

 

6

What is it? Number of seasons that House of Cards, the popular Netflix political drama series, will finish with. On Monday, Netflix announced the 2018 season, currently being filmed, would be its last.

Why is it important? The announcement comes a day after Kevin Spacey, one of the lead actors in the series, issued a public statement to allegations that he had made unwanted sexual advances on a 14-year-old boy in 1986. Kevin Spacey is the latest Hollywood figure to face a pushback after allegations of sexual abuse, following producers Harvey Weinstein and director James Toback.

Tell me more: Netflix maintained the decision to terminate the series—whose Season 1, aired in 2013, is ranked 33 in IMDb’s list of most popular TV shows—was made “months earlier”.

 

80%

What is it? The share of initial public offerings (IPOs) in 2017 that has gone to promoters and investors of companies, as compared to the companies themselves.

Why is it important? This is the highest percentage since 2003. Seen another way, only one-fifth of the combined size of IPOs has come to companies as new capital, which they can channel into avenues of growth and business enhancement. This also means that promoters and investors are using the buoyancy in the market to cash in and unlock value.

Tell me more: The current IPO rush has also seen entirely new sectors debut on Indian bourses, notably insurance and mutual funds.

 

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Indian aviation: passengers, position, profits

This piece originally appeared on Livemint.com

 

In a year in which new-economy sectors made all the news, one old-economy business finally delivered a maturing it had been promising for two decades now: domestic aviation. The stage for this coming of age was set in 2015, when the price of aviation fuel—the biggest cost head for an airline—tumbled and the sector started turning in 20%-plus growth in passengers. But 2015 was also coming off a turbulent 2014. In comparison, 2016 was challenged by a high base and it bested that, as airlines steadily added routes, flights and passengers—catapulting India up the global ranks in domestic aviation.

 

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News in Numbers, Dec 1, 2016: Can we replace the king?

Cash transactions rule in India. Over two-thirds of the transactions in India are done by cash, as per a report by CLSA. The government’s recent moves seem to be nudging people towards non-cash transactions. And, not all Indians are under the formal financial net yet. On Wednesday, the government appointed a panel to steer the country towards digitalisation. Will Indians be ready to embrace cashless transactions? How quickly can we do that? What about the security concerns? 


13

What is it? The number of members in a panel set up by government think-tank Niti Aayog to promote the use of digital payments.

Why is it important? It’s a part of the government’s efforts to make use of the cash crunch to turn people towards cashless payment options. Digital payments system comes with the advantages of transparency, traceability and accountability besides being faster, less inexpensive and more convenient. However, this also means battling security issues and easing concerns of consumers who may not be comfortable with the new medium. The panel consists of members from different parties, indicating that the government seeks to generate a political consensus in its push for digitalisation of the economy.

Tell me more: Andhra Pradesh chief minister N Chandrababu Naiduis the convenor of the panel, which includes Odisha CM Naveen Patnaik (Biju Janata Dal), Puducherry CM V Narayanasamy (Congress), Sikkim CM Pawan Kumar Chamling (Sikkim Democratic Front), Madhya Pradesh CM Shivraj Singh Chouhan and Maharashtra CM Devendra Fadnavis (both from the ruling BJP). Other panel members include NITI Aayog vice-chairman (Arvind Panagariya) and CEO (Amitabh Kant) and five special invitees including Nandan Nilekani, former chairman of the Unique Identity Authority of India.

40

What is it? The number of locations at which the Enforcement Directorate (ED) conducted searches on Wednesday to check black money held with currency exchanges, hawala dealers and others.

Why is it important? Indicates the government is pushing for a well-rounded attack on tracking down illegal hoarders of cash and suggests that there are ways in which some circumvent the laws, highlighting the need for their stricter enforcement. The authorities seized Rs 1.2 crore cash. The ED, which is responsible for enforcing the Foreign Exchange Management Act and the Prevention of Money Laundering Act, attached assets worth over Rs 9,000 crore for hawala and money laundering crimes in 2014-15, which is likely to go up this fiscal. However, the high pendency – 4,776 cases pending in terms of number of investigations initiated as on March 31, 2015 – is a cause of concern.

Tell me more: As many as 100 investigators along with police personnel have undertaken the searches across the country.

7.3%

What is it? India’s economic growth rate in the July-September quarter of 2016-17.

Why is it important? This is marginally higher than the rate recorded in the June ended quarter (7.1%) though slower than the 7.6% growth in the second quarter of 2015-16. It also fell short of 7.5% forecast by a Reuters poll of economists. The increase in acceleration in the second quarter this fiscal over the first was led by agriculture (compared to 1.8% in the first quarter) while manufacturing grew by 7.1% (compared to 9.1% in the previous quarter). Consumer spending, which accounts for 56% of India’s $2 trillion economy, is likely to be hit due to the recent demonetisation announcement and it remains to be seen how this affects India’s economic growth rates in the next few quarters.

Tell me more: India retains the tag of the fastest growing major economy as per the second quarter data. China recorded a growth rate of 6.7% in the quarter ended September.

32.5 million

What is it? The number of barrels of oil the Organization of the Petroleum Exporting Countries (OPEC) would produce per day from January 1. OPEC is a group of 14 major oil-exporting nations that account for a third of global production.

Why is it important? This is a cut by 1.2 million barrels per day, representing about 1% of global production and the first joint decision to reduce production since 2008. The agreement to cut production is to prop up oil prices. Due to an oversupply of oil, prices plunged from about $100 per barrel in 2014 to less than $40 per barrel this year, affecting oil-dependent economies such as Saudi Arabia. OPEC members have said they are looking at levels of $55-60 per barrel; a failure to clinch the deal may have sent oil prices down to $30 per barrel, according to analysts.

Tell me more: After the announcement, Brent crude futures, the global benchmark for oil prices, increased by 10%.

1 million

What is it? The number of Google accounts whose security has been breached since August by a new variant of Android malware, according to a report by security firm Check Point Software Services.

Why is it important? This is likely the biggest single theft of Google accounts. The malicious software called Gooligan is disguised as legitimate apps to steal authentication tokens that can be used to access data from Google Play, Gmail, Google photos, Google docs, Google Drive among others. The malware attacks 13,000 devices every day, potentially affecting those on Android 4 (Jelly Bean and KitKat) and Android 5 (Lollipop) – this represents nearly three-fourths of the Android devices in use today. About 57% of such devices are located in Asia, 19% in the Americas, 15% in Africa and 9% in Europe.

Tell me more: A device is infected when the user downloads and installs a Gooligan-infected app (from third-party app stores or malicious links), after which data about the device is sent to the campaign’s Command and Control server. This is followed by the malicious software rooting the device (unlocking the operating system) after which it downloads a module that allows Gooligan to steal information, install apps from Google Play and rate them and install adware to generate revenue.

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