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Average individual expenditure of an individual living in Urban India is almost twice as that of someone living in Rural India!🤯 What do you think could be the reason behind this? Let us know in the comments and follow Finshots for more!

India imported $14 billion worth of computer hardware in 2023 because there aren't any big companies manufacturing PCs in India!!! 🤯 All the top 5 players in India's PC markets are foreign companies. Do you think Indian companies need to focus on this space? Let us know in the comments and follow Finshots for more!

A tax on Billionaires can raise $250 billion every year from just 3,000 taxpayers!!! Should we start taxing Billionaires? 🤔 Some time ago, French Economist Gabriel Zucman made waves when he addressed the Finance Ministers of G20 nations at Brazil’s São Paulo. His pitch? A global minimum tax on billionaires to ensure that they don’t get away with not paying their fair share of taxes. You see, taxing rich people is a conundrum for countries globally. That’s because it’s hard to figure out how much money they make. A significant portion of what they earn comes from capital gains on investments which are often taxed at rates that are much lower than regular income tax. Even the rest of their income may simply never get taxed because they manage to park their money in tax havens, route it through shell companies that often escape taxes or trusts that are exempt from it. In fact, they have at least $7 trillion hidden away in offshore accounts in tax havens outside their country. That’s 8% of the global household financial wealth! So, 80% of what the world’s wealthiest own ends up being hidden from governments. This explains why they end up paying a measly 0.3% of their wealth in annual taxes, costing global governments a whopping $200 billion in lost tax revenue every year. The end result is that a small fraction of the global population end up owning a majority of the world’s wealth. Over the last four decades in fact, this wealth has only grown at an average rate of 7.5% after taxes every year. So governments naturally have less to spend on development. And this massive wealth inequality simply strips the world’s majority of the privilege to economically uplift themselves. When Zucman proposed this new approach, everyone was interested. And a few days ago he came up with a simple plan. If countries find it so hard to estimate how much their billionaires earn every year, just ask them to slap a new wealth tax on these folks. All they have to do is track the individuals that own $1 billion or more in assets like real estate, equities or company ownerships and get them to pay a minimum annual tax, equal to 2% of that wealth. Doing that globally, he says, could actually raise close to $250 billion every year from about 3,000 taxpayers or even an extra $140 billion if you include the tax on centimillionaires or folks earning $100 million or more. But then why don't we do it? Get the full scoop here- https://bit.ly/3XVhylk And don't forget to follow Finshots for more insightful content-

UPI transactions worth over 20,00,000 CRORE took place in just May 2024!🤯 This is up 20,000 times from the transaction value in November 2016. Do you think cash will become irrelevant in the long run? Let us know in the comments and follow Finshots for more!

Why is a Korean company launching the largest IPO in India? We are taking about Hyundai Motors. They want to raise around ₹25,000 crores through an IPO in India. But isn’t Hyundai a foreign brand? So why pursue an IPO in the Indian market? Let’s take it from the top. See, Hyundai Motors India is a wholly-owned subsidiary of South Korean auto giant Hyundai Motor Company (HMC). In the early 1990s, when India liberalised its economy, opening doors for foreign companies to sell and set up shop in India, Hyundai Motors was one of the frontrunners, (in 1996) capitalising on the fledgling Indian economy. But it wasn’t an easy ride for Hyundai. At first, they faced tough competition from the well-known domestic car manufacturer Maruti and foreign brands like Ford. In fact, they were even competing with rival brand South Korean Daewoo, whose compact MPV (Multi-Purpose Vehicle), Matiz, took on Hyundai’s Santro in 1998. But as you all know, Santro would go on to become a best seller and cement Hyundai’s place in the market. Today, they’re a household brand and they’ve undoubtedly won Indian consumers’ hearts like no other. This success is evident in its position as the second-largest car manufacturer in India after Maruti Suzuki. But how did it manage to do so, you ask? First, instead of competing solely on price points, which can be extremely challenging considering Maruti’s dominance in the affordable segment, Hyundai focused on offering extra comfort and more features. For instance, their debut model, the Hyundai Santro, won hearts with its tall-boy design and spacious cabin. See, tall-boy cars have a boxy shape, with a higher roofline than usual, providing ample headroom for occupants, especially taller people. Also, Hyundai put a lot of weight on local manufacturing. At its Chennai plant, Hyundai brought South Korean makers and vendors to localise the manufacturing processes. This approach ensured that Hyundai maintained international standards while controlling the costs of critical components like body parts, headlights, and engine parts. Now, will their IPO be successful? Find out here- https://bit.ly/3L7G0bN And don't forget to follow Finshots for more insightful content!

India's Defense Exports have gone up 14 TIMES since 2016-17!!!🤯 Do you think the increasing geopolitical tension around the world is the reason behind this? Let us know in the comments and follow Finshots for more!

Your next AC purchase is about to get more expensive, and Make in India is to blame here! 🤔 See, India has witnessed scorching summer temperatures this year. And more people rushed to buy ACs. As the demand rose, manufacturers found it hard to keep up and they had to quickly meet this surge with new stocks. But the “Make in India”-led to import restrictions on ACs and parts, which translated into a shortage of components too. That meant that sellers were short of nearly 5,00,000 ACs or lost close to ₹1,500 crores worth of business. The only way to bridge the gap was to transport stocks from southern regions where temperatures are slowly getting better. This naturally increases their input and transportation costs. And the end result is that AC prices are up by at least 6% compared to last year. But that’s not the end of it. AC prices might rise even further due to another problem — AC capacities. About 80% of residential ACs in India operate efficiently only at temperatures of 35℃ or lower. But with temperatures soaring 4-6℃ higher this year, many households struggled to keep their homes cool. And that has nudged manufacturers like Voltas, Daikin, and Godrej Appliances to invest in technology and create ACs that can handle temperatures as high as 50℃ in India. The high-grade compressors these models need could push costs up by another 5-10% in the future. So, whether you own an AC or not, prices are rising. With your AC running at only 60% efficiency due to the extreme heat, you’ll face higher electricity bills and regular maintenance costs. In short, AC prices are heating up, just like the weather. Do you think the Make in India import restrictions need to be eased for a short period until we can manufacture the components domestically? Let us know in the comments and don't forget to follow Finshots for more insightful content!

Another Ketan Parekh like scam is brewing in the Indian stock markets? Before we get into that, let's understand how Parekh's scam unfolded. In 2001, Ketan Parekh, a smart Chartered Accountant, swindled a whopping ₹40,000 crores by artificially inflating stock prices and then selling them at their peak. One of his tricks was using Participatory Notes or P-Notes. Think of P-Notes as a way for foreign investors to anonymously invest in the Indian stock market. Here's the deal. If you want to invest in stocks, you just sign up with a broker, set up a demat account to hold your investments, and start trading. Easy, no? But for foreign investors, it’s a hassle. They need to register with SEBI (Securities and Exchange Board of India), which can be a complicated process. P-Notes on the other hand make it simple. Foreign investors can go to a registered entity or bank and say, “Hey, invest in some Indian stocks for me. Here’s the money.” The entity issues them a P-Note (as proof of their participation) and invests in the Indian market on their behalf. The investment is under the entity’s name, keeping the real investor anonymous. This anonymity worked perfectly for Parekh. He set up accounts with registered foreign investors and funneled money into select stocks via P-Notes. This drove up stock prices, attracting more Indian investors. Since P-Notes are tied to these stocks, Parekh could use his highly valued P-Notes as collateral to borrow money from foreign banks. He’d then secretly reinvest this borrowed money into the market, driving prices even higher and sparking off a vicious stock market rally. But this rally came to a screeching halt when the US dot com bubble burst. Stock prices of massively overvalued technology companies nosedived when they failed to deliver profits. When this resulted in a domino effect on global markets, India was no exception. Parekh’s investments began to plummet too, translating into massive debt defaults. Okay, but how is this scam making a comeback in 2024? Get the full scoop here- https://bit.ly/3XDjFua And don't forget to follow Finshots for more insightful content!

The $100 billion dollar with diamond industry is a scam orchestrated by one company! 🤯 Do you think governments should step in and prevent companies from exploiting customers through such manipulation? Let us know in the comments and follow Finshots for more!

SEBI is after another financial services company! Here is the full story-- Religare Enterprises’ chairperson, Rashmi Saluja is in a tight spot right now. And it's because the SEBI (Securities and Exchange Board of India) has been badgering her company’s Board to get approvals from a bunch of regulators. It wants Religare to give in to a hostile takeover bid by the Burman family or the folks who own Dabur. But why is SEBI doing that, you ask? Well, actually it’s a rule. And SEBI’s just doing its job as a market regulator. To understand what this weird-sounding rule is, you'll have to take a short trip back in time. In 2018, Shivinder and Malvinder Singh, the common founders of Fortis Hospitals and Religare, were accused of fraud. They allegedly swindled a whopping ₹2,400 crores that belonged to Religare's subsidiary Religare Finvest. Now, since Religare is a listed financial services firm, investors naturally lost confidence in its management. And this wasn’t a good look for the company. That’s exactly why it decided to hand over the reins to Rashmi Saluja, Religare’s current chairperson. She was a doctor by profession, had a law degree, an MBA in finance and over two decades of experience handling administrative affairs at various other corporate entities. Her qualifications and experience seemed to tick all the right boxes. And that may have pushed the Board of Directors to think that she was a perfect fit for the role. She would be able to turn around the bitter impression Religare had created, or so they may have thought. But it seems like Saluja had her task cut out right from the start. It was around this time that the Burmans gradually began increasing their stake in Religare. To put things into perspective, between 2018 and 2023, Dabur and its associated entities’ shareholding in the financial services firm went up from just about 10% to 26%. And this 26% is exactly what’s creating the problem for Religare right now. Because here’s the thing. When promoters or investors buy large chunks of a publicly listed company, they have to abide by a few rules chalked out by SEBI. And one of them relates to minority shareholders. So, what's next? Get the full scoop here- https://bit.ly/4cgAkbf And don't forget to follow Finshots for more insightful content!