Exit of ‘bully’ China :
With aggressive China taking a back seat, the Indian government has now started to clear their pending FDI proposals. As an Economic Times report suggests, India is now giving clearance to Chinese proposals on a case-to-case basis.
With this, the government is ending the freeze after nine months. During this time we saw India restricting Chinese entry in several ways. The government banned Chinese apps like Tiktok. It also banned Chinese companies from participating in its 5G program. The government had also increased import duty on Chinese solar equipment to electrical goods.
End of the border issue is a win-win situation for both countries. It shows India's potential as a market that China cannot ignore.
As for India, China has been a major investor in its startup ecosystem. It has been instrumental in developing the entrepreneurial culture and boosting employment opportunities. Also, clearing Chinese proposals is very logical in our opinion as India needs to attract as much FDI as it can to spur growth.
Slow pace of vaccination :
A provisional report of the Union Health Ministry suggests that around 1.1 crore beneficiaries are vaccinated for COVID-19 in India so far. It includes data of people who have received first as well as second dose.
Yet, not many are satisfied with the pace at which the vaccination program is being conducted. Apparently, Serum institute is struggling to cater to the domestic demand and delaying its export orders.
Citing this, Azim Premji has called for involving the private sector in India's vaccination program. As per him, India could vaccinate 50 crore people in 60 days with the help of private players.
Allowing participation of private players is one thing. But, having enough supply is another. At the moment, India lacks enough production capacity. It is evident from Serum's inability to fulfill its international orders. In this context, Azim Premji's suggestion is ideal, but in absence of enough production, it doesn't appear viable.
Jet set to fly again :
Jet Airways could soon hit the sky once it receives approval from NCLT. The Kalrock Capital-Murari Lal Jalan consortium is confident to re-start operations within four to six months once they receive the approval.
Jet could restart its operations with a fleet of 25 aircraft. It could also restart international flights by the end of the year. The new promoters are also planning to keep Jet Airways a listed company.
The Start of Jet Airways is positive news not just for the aviation industry but for the overall market. It could be one of those rare incidents where a troubled company could resolve its legal issues and it is in a position to restart its operation.
It is also a relief for employees as the promoters have revealed the plans of taking them on board again. However, it would be interesting to see its impact on other airlines. Jet's slots were allotted to other airlines in its absence. Now, with Jet's return, those slots will again need to be handed over to it. That is a double blow for existing airlines. They will see competition intensifying and they stand to lose a few of their existing slots as well.
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