Asia's third-largest economy beats estimates, grows at a better-than-expected 6.1% in Q4, while FY23 growth data too springs a positive surprise.
Asia's third-largest economy sprang a surprise as it posted better-than-expected gross domestic product (GDP) growth of 6.1% in the just-concluded January-March quarter of 2022-23. It not only beats analysts' estimates of 5.5%, but is also a much improved performance compared to the preceding December quarter when it clocked a growth rate of 4.4%. For the whole of FY2023, the GDP growth came in at 7.2%, compared to 9.1% in the previous fiscal year, provisional national income data released by the National Statistical Office (NSO) showed. It is to be recalled that the Reserve Bank of India (RBI) had in an earlier forecast projected Q4FY23 real GDP growth to be at 5.1%, while SBI Research had forecast the GDP to grow at a much better 5.5%.

The RBI's move to withdraw 2,000 notes has come more as a shake than a shock.
- ByAjay Chandra Pandey,AGM, and Faculty, State Bank of India, State Bank Academy, Gurugram



Memories of long queues in front of ATMs and banks during the 2016 demonetization came alive in the minds of the common people the moment Reserve Bank of India (RBI) announced the withdrawal of India's highest denomination 2,000 currency note, and this painful memory was accentuated by the alarm raised in the media. But the facts and the truth are much different, as there is no commonality between the two. This withdrawal cannot be equated with the demonetization of 2016, as the current exercise is different not only in nature but in size too. It is a withdrawal of 2,000 note, not an outright ban as was done through the exercise of demonetization in 2016, whereby 500 and 1,000 notes lost their legal tender status. Even if we compare the size only, the 2016 exercise involved the exchange of 86% of the currency in circulation, whereas the current one involves only 10.8% of the currency in circulation and that will be affected over 130 days. Further, this is an RBI decision, while the demonetization of 2016 was a Government of India decision.

A default by the US, which looks more likely than ever before, could imperil the domestic economy, jeopardize global growth, roil global financial markets, and create chaos.

- ByMichael Robert, Economist, London

As I write, the impasse between the Democrats and Republicans over the so-called United States debt ceiling is yet to be resolved. Chances are, it may be by the time you read this. But if not, then it will mean that the US economy is facing paralysis, and that will hit many other countries too.

What is this 'debt ceiling'? The debt ceiling is a legal limit on the total amount of federal debt the US government can accrue. The limit applies to almost all federal debt, including the roughly $24.5 tn of debt held by the public and the roughly $6.9 tn the government owes itself as a result of borrow-ing from various government accounts, like the Social Security and Medicare trust funds.

The annual developer conference has always given Google the chance to let the world get a clear vision and better understanding of the company and the direction they, and we are heading. Alphabet did not let us down this year.

- ByJeff Kagan,Wireless and Technology Industry Analyst Atlanta, Georgia, USA

This year at the annual Google I/O Developer Conference, everyone was watching with one thing on their mind, Artificial Intelligence (AI) and chatbot technology. This brand-new area has quickly become the fastestgrowing new tech trend of all time. And even though AI has been around for decades, chatbot is just beginning. So, let's take a closer look at the event and how AI and their chatbot called Bard will impact our world.

The Indian manufacturing sector is gaining momentum, with many major players eyeing the country as a potential hub for production and innovation. Amidst uncertainty in the global markets, there is an opportunity for India to grab more of the manufacturing share.

Leveraging a strong, stable economy, access to a large labor supply, and policy reforms, India aims to topple China and emerge as the new factory of the world. Such efforts are boosted further by new recognition and accolades. For example, the Economist Intelligence Unit (EIU) predicts major improvements in areas like infrastructure, taxation, and trade regulation, which will reduce the risks associated with manufacturing investment in the country. It is also accelerated by the geopolitical tensions between the United States and China, the Russia-Ukraine war, the rapid adoption of e-commerce, and the Covid-19 pandemic, which have led to a rethinking of strategies for re-shoring sourcing, the diversification of supply routes, and the localization of manufacturing. In its wake, many foreign manufacturing giants have increasingly become wary of their supply-chain overdependence on China, the de facto factory of the world. Most Western companies are implementing or considering 'China plus one' (also known simply as Plus One or C+1, the business strategy to avoid investing only in China and diversify the business into other countries) strategies aimed at building manufacturing across multiple markets.

Germany becomes the first major economy to officially slip into recession, hit hard by runaway prices caused primarily by Russia's invasion of Ukraine.
Germany, the world's fourthlargest and Europe's largest economy, slipped into recession as the country's GDP recorded its second quarterly contraction in the January-March quarter, hit hard by high energy and food prices. Households decreased their spending in the first quarter as the persistence of high price increases continued to be a burden on the economy. Besides, factory orders, retail sales, and exports also suffered significant declines. Europe's largest economy's GDP from January to March quarter fell by 0.3%, the second consecutive drop from the last quarter of 2022, which showed a GDP fall of 0.5%.

Go First Get, Set, Ground!

Go First, one of India's leading ultra-low-cost air carriers, which recently filed for voluntary insolvency proceedings, taking its stakeholders, notably creditors, by surprise, blames faulty P&W engine spare part shortages for facing what appears to be an existential crisis. Can it bounce back?

The company has been crippled by the recurring Pratt & Whitney engine troubles. Pratt & Whitney's defiance in not supplying spare engines as instructed by the Emergency Arbitrator has ground your company to a halt.
- Kaushik Khona,CEO, Go First wrote in a note to employees



Flyers of Go First voke up to a rude shock as the Wadias-owned (of Britannia fame) air car-rier, in a communique dated May 2, announced that owing to operational reasons, its flights scheduled for May 3, 4, and 5 were cancelled; the flights were later suspended for a few more days, before extending to May 30 (there were no further announcements by the airline at the time of going to press). The Mumbai-headquartered air carrier, which began its journey as GoAir in November 2005, some six months before its bete noire and the current market leader IndiGo, promoted by industry stalwarts Rahul Bhatia and Rakesh Gangwal (the latter has now parted ways with the air carrier after a bitter legal battle with his friend turned foe early last year), was among only a handful of the so-called ultra-low-cost air carriers to dot Indian skies until it announced its bankruptcy proceedings early this May; the other ultra-low-cost-carrier (ULCCs) include SpiceJet and the newbie Akasa Air (of Jhunjhunwala fame). With no visible signs yet about whether it has on-boarded investors so as to raise fresh capital and restart operations, concern grows, concern grows if the Mumbaiheadquartered air carrier too is headed for the similar fate met by the likes

The European Union recently approved Microsoft's acquisition of Activision, making the merger far more likely; however, the United States and the UK are opposing the deal, and their opposition needs to be overcome before it can go through. Let's talk about why this deal is important to both Activision and Microsoft, why the merger will be successful, and what the ultimate result will likely be.

Over half of NSE500 stocks delivered multibagger returns in 20 years, says a new study from Goldman Sachs

According to a new study, India has delivered the most number of multibaggers in the last two decades. The study by investment banking biggie Goldman Sachs noted that more than half (54%) of the NSE500, or 269 stocks, have generated multibagger returns over the past 20 years-the largest proportion of multibaggers among the 10 markets versus 30% and 20% averages for EM and DM, respectively.

The study, as per a Mint report, comprised 10 major markets across emerging and developed markets and covered 6,700 stocks to identify multibagger stocks-those which generated at least 10x total returns within a rolling 5-year period over the past two decades.

Can Go First make a comeback? Chances look slim going by the ever-growing list of bankrupt domestic air carriers and the likelihood of a prolonged legal battle with creditors and lessors.

To a certain extent, the Go First bankruptcy filing sounds interesting. For, the bankruptcy was filed voluntarily by the airlines under Section 10 of IBC 2016 for the Corporate Insolvency Resolution Process (CIRP) instead of Financial Creditors (FC) filling it under Section 7 of IBC for CIRP or operational creditors filing it under Section 9 of IBC for CIRP, which took its lessors and creditors by surprise (as they stand to lose). The CIRP process can be initiated by an FC, OC (operational creditors), or CD (corporate debtor). In most cases, which we have seen in the Indian context, FC or OC has filed for CIRP, but here the management of the CD itself has filed for bankruptcy and sought protection for payment of overdue amounts to the different creditors.

Why are some air carriers struggling even as the industry is flying high?

- By Shail Apte, Founder & CEO, Airtham, Ahmedabad

Founded in 2005 by Jeh Wadia, son of Nusli Wadia, Chairman of the Wadia Group, Go First, formerly known as GoAir operated a fleet of Airbus A320 aircraft in an all-economy configuration. The company prioritized profitability over market share expansion, earning recognition as the "Best Performing Airline" by Airbus in 2011.

The recent crisis at US regional banks has highlighted the importance of a strong and resilient banking system. The Federal Reserve is taking steps to support the banking system, but regulators need to continue to monitor the situation closely.

- By Surbhi Singhal, Senior Research Analyst, Advance ThinkTank, New Delhi

In any major economy of the world, there's mainstream banking at the top-rung, regional and cooperative banks in the middle, and shadow banks at the bottom. What happens when there's a major disturbance in any of these layers? Naturally, some other layer expands to fill in the void.

JP Morgan Raises India's Outlook for 2024

JPMorgan recently increased its 2024 economic forecast for India -although only marginally- saying the country's growth will be affected by a slowdown in global growth momentum. The world's leading investment bank expects Asia's third-largest economy to grow 5.5%-instead of 5% it had forecast earlier-in 2024. The revision follows the Q4 and FY23 gross domestic product data which the government released recently. As per the official statistics, the Indian economy grew at a much healthier 6.1% in the January to March quarter, compared to 4.5% the previous quarter.

Metaphors reveal new ways of seeing and thinking about organizations, about people, about situations, and about the nature of the work itself. However, on the flip side, using metaphors to simplify such complex entities as commercial organizations and people has dangers if too simplistic perspectives are adopted.

- By Michael Walton,Business Psychologist and Visiting Professor, UK

The purpose of this article is to illustrate how metaphors can enrich and enhance understandings about the nature of organizations as institutional entities succinctly and 'capture' the individual behavioral characteristics and conduct of leaders. Such understandings provide insights about the type of organization in which a person may be working and about the type of leadership under which they are expected to be successful and thrive.

Bollywood Diva Shilpa Shetty Kundra recently made an investment in the Mumbai-based startup Kisankonnect. The actress has invested an undisclosed amount in the company. She has been contributing to the startup by providing essential fitness elements, particularly focusing on "Fresh Food." Kisankonnect, founded in 2020, stands out in the agricultural ecommerce industry due to its unique approach. The company operates through a vast network of 5,000 members and village-level collection centers, directly sourcing agricultural produce from farmers.