The Markets Reverse Some Of The Post Ceasefire Gains
With the markets having fallen again on Tuesday, there is a sense that some balance has been restored
On Episode 580 of The Core Report, financial journalist Govindraj Ethiraj talks to Ajay Srivastava, Founder of the Global Trade Research Initiative, Chetna Gala Sinha, Founder and Chair at Mann Deshi Bank & Mann Deshi Foundation as well as Air Vice Marshal GP Sharma, President (Meteorology & Climate Change) at Skymet Weather.
SHOW NOTES
(00:00) Stories of the Day
(00:50) The markets reverse some of the post ceasefire gains
(03:51) Inflation hits a 6 year low of 3.16%
(05:50) What happens to India' s China + 1 plans?
(18:11) Decoding the arrival of the rains and monsoon 2025, the early forecasts
(27:53) Build On Blockchain: Why women entrepreneurs find it tough to get loans
NOTE: This transcript contains the host's monologue and includes interview transcripts by a machine. Human eyes have gone through the script but there might still be errors in some of the text, so please refer to the audio in case you need to clarify any part. If you want to get in touch regarding any feedback, you can drop us a message on [email protected].
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Good morning, it's Wednesday, the 14th of May, and this is Govindraj Ethiraj, headquartered in Broadcasting and Streaming from Mumbai, India's financial capital.
Our top stories and themes.
The stock market has reversed some of those post-ceasefire gains.
Inflation hits a six-year low of 3.16%.
What happens to India's China plus one plan following the US-China trade deal?
Decoding the arrival of the rains and monsoon 2025, the early forecasts.
And why women entrepreneurs find it tough to get loans. Hint, the problem starts at home.
The Markets Take A Breather
The stock markets were up 4% on Monday, one of the largest up moves ever. Some analysts did wonder why, and they told the core report as much, that while there was cause for optimism because of that ceasefire between India and Pakistan, such a jump seemed little unusual. With the markets having fallen again on Tuesday, there is a sense that some balance has been restored.
News of the ceasefire was welcome, but the other bit of news which fired up global markets was the US-China trade deal, which is mostly in headline territory right now, but significant nevertheless. Which also means that more portfolio investments could flow into China, even as India and many other countries are back to working out whether they do have a real tariff advantage for various industries or not right now. And finally, while there is a ceasefire in place, tensions are still running high on the border.
The BSE Sensex fell 1,281 points to close at 81,148, and the Nifty 50 was down 346 points to 24,578. Interestingly, the broader markets did much better, with the BSE mid-cap index closing up about 0.17% and the small-cap index rising about 1%. On Wall Street, the S&P 500 was mostly flat early Tuesday following that big rally.
On Monday, the Dow Jones was up 1,160 points, while the Nasdaq and S&P 500 were both up sharply. So, it was a big day for both Indian and US markets, though for different reasons. Back home, the rupee shot up on Tuesday morning but then began sliding back, ending still higher on Tuesday as the strong dollar held back any further appreciation.
The rupee was up about 4 paise at 85 rupees 34, after ending at 85 rupees 38 against the dollar on Friday. According to Bloomberg data quoted by Business Standard, earlier the rupee had opened 71 paise stronger, that's at 84 rupees 67, which were the best opening gains since April 30th. After rising nearly 1.5% on Monday, the dollar index, which is a measure of the value of the US dollar relative to a basket of foreign currencies, was down 0.23% at 101.55, according to Business Standard data.
Gold Is Back Up
Gold prices rose on Tuesday as the dollar edged lower and initial optimism over a trade truce between the United States and China ebbed, according to Reuters, adding that spot gold was up slightly at $3,255 an ounce after dropping more than 2% in the previous session. There is a sense that the US-China trade deal, while better than what was earlier suggested, is not something that is going to make trade much easier. Even a 10% tariff is 4 times of what it was earlier and it's now 30% on Chinese goods exported to the US or imported into the US at this point.
Inflation Is Down
India's retail inflation has now dropped to its lowest level since July 2019, year-on-year CPI or consumer price index for last month, April, coming in at 3.16%, according to data released by the Ministry of Statistics and Programme Implementation on Tuesday evening. The April figure reflects a decline of 0.18 percentage points from March's 3.3%, so the inflation levels have been falling for six months now. CPI-based inflation is also now below the Reserve Bank of India's medium-term target of 4% for the third month.
Strong harvests, despite intense heat waves, led to food costs going down, which account for nearly half the consumer price basket. The decline was once again driven by food inflation, which fell to 1.8% in April from 2.7% in March. According to Crisil Intelligence Research's Thali Index released last week, the cost of both vegetarian and non-vegetarian thalis fell by 4% year-on-year, thanks largely to lower vegetable prices.
DK Joshi, chief economist of Crisil, said that the record drabby harvests and robust pulses output, as indicated by the second advance estimates, combined with a forecast of a favourable monsoon for the upcoming Kharif season, should keep food inflation in check as we look ahead. But it's important to remember, he says, that agriculture performance also depends not just on the volume of rainfall, but also its temporal and spatial distribution. Climate change has disrupted traditional monsoon patterns, leading to more frequent instances of both excessive rainfall and dry spells, and more on rain shortly.
Crisil also added that the rising occurrence of heat waves pose a growing threat to agriculture productivity and by extension food inflation, and these conditions warrant close monitoring. Food prices are now the lowest since October 21. The CPI that tracks, or rather Consumer Food Price Index, which tracks inflation in food showed a decrease to 1.78% and it was down from 2.69% in March.
Tariffs: Where does India go now?
The latest round of tariff deals, this time between the United States and China, the two trading giants, can upset some of the calculations of businesses in other countries who were hoping to elbow into the US market, India being one of them. As per the April 2 announcement, subsequently paused, Vietnam, for example, was better off than China with a 46% rate, while Thailand was at 36%, Malaysia at 24%, and India was at 26% and thus better off than everyone else. And at this point, everyone is at 10% and China of course is at 30% as per the latest figures.
So where does this leave India at this point and how should businesses be looking at the months ahead given things as they are going? Of course, things could change again. I reached out to Ajay Srivastava, founder of the Global Trade Research Initiative, a think tank in Delhi that looks at trade, and I began by asking him how he was seeing the US-China trade deal and its likely impact on India.
INTERVIEW TRANSCRIPT
Ajay Srivastava: So the broad takeaway that first comes to mind is what will happen to the China plus strategy so meticulously promoted by the US and many other countries. So the strategy took a lot of boost after Trump announced higher tariffs on China. For example, the highest was 245% on syringes, then average 170% on garments, 145% on most engineering and other goods, and on the other countries he has postponed these country-specific tariffs.
So that means 11%, 12%, 13% tariffs on other countries and 145% plus tariffs on China. This was a big tariff gap. So if you look at say India, our cost of production is more than China by about 25% in many goods.
So we can safely make those goods even if they are expensive compared to China and export them to the US and the rest of the world. So because of this tariff arbitrage, big movements were taking place everywhere in the world of trade. So US investors, Chinese investors, were roaming around in countries like India, Vietnam, Thailand, Cambodia, many countries, and they were trying to talk with the existing businessmen running units for expanding those units.
Nobody wants to invest high billions of dollars because no one knows when Trump is going to change his strategy. So those things were happening. But suddenly now with the US imposing 30% on China and 10-12% on the other countries, that arbitrage has come down substantially.
So I think these activities also will come down substantially. They will remain limited to a very superficial number of sectors.
Govindraj Ethiraj: This of course is a 90-day scheme and we don't know what will happen at the end of 90 days. I mean, what's your sense? I mean, could it go lower?
Could it go higher? I mean, as a guess?
Ajay Srivastava: My understanding is that 10% is here to stay as the baseline US tariffs. For certain products like steel, aluminium, automobiles is 25% of baseline. So this 10% will not go down.
That's what the current indication is. This will be a 90-day period that expires on 8th July, it's like a gun and a temptation to the countries. You come with deals, offer.
If I'm happy with the offers, I'll continue with this 10% else I'll revive your country's specific tariffs, which for India's case was 26%. So India has a choice. If it can please the US, it will continue with 10% tariffs.
If the US is not happy with what India offers, then there will be 26% tariffs on Indian goods. But the point which is to be noticed is that even if India offers zero tariffs on many of its products, the US is not going to lower its tariff from 0% on most. So that's the new normal in world trade.
Govindraj Ethiraj: But even I was reading an edit article or a page article in the Wall Street Journal, which is usually quite friendly to the Trump administration, but has been opposing him on trade and the fact that he has been increasing tariffs. And their point was that I think even 10% is four times what the current tariff is or was. And I was wondering whether that itself is challenging for exporting countries to manage.
Ajay Srivastava: 75% of the world trade flows at zero MFN tariffs, zero tariffs. And the average global tariff is 2.6%. You know, this developed country used to have lower tariffs and developing countries like India used to have higher tariffs. Now, the US will be in the highest tariff category now.
Govindraj Ethiraj: Interesting. So which brings us to India and the negotiations on a deal were supposed to be announced even last week, but it didn't happen. And what we did hear from US Commerce Secretary Howard Lutnick just the day before yesterday was that this is going to take time.
And he said, there are 7000 items which have to be worked through, which of course, I'm assuming we're always there. But it's not going to be an easy one. What's your sense on how things are likely moving in the India-US context?
Ajay Srivastava: What Lutnick says, he's an insider. It doesn't make any sense to me with what the US did with the UK or with China. They did not talk about tariff lines.
They focus on a few items, 20-30 items from the US side and could get as many as 3000-4000 from the UK side. In China also, they didn't talk about the item, they talked about most products. So it's not tariff line level nuanced discussions that's taking place.
That takes place, that takes time. But what the US has done with the UK is that it will do some headline management by focussing on top line concessions by the UK and then say that as a deal. And the rest of the negotiation will linger on.
So what Lutnick says is focussing on the entire negotiation. That takes time. It's not complete between the US and UK also, but a deal has been announced.
I think the similar strategy may be followed with India and we may expect some sort of deal with India also soon.
Govindraj Ethiraj: Even if a headline deal is announced, how long does it usually take for, let's say, all the specific paperwork to get done for, let's say, large trading partners like India-US or US-China?
Ajay Srivastava: If the deal with common understanding on the low-hanging fruits may cover up to 90% of the bilateral trade in goods and services and for UAE, the Ministry of Commerce completed the deal in less than three months' time. With Australia, I think less than four months' time. But on both sides, they don't agree on a common understanding.
It may take years. For example, with the EU, we have been negotiating since 2007. It is nowhere near a conclusion.
Govindraj Ethiraj: But with the UK, we have finally come to a deal after many years of negotiation as well. UK negotiations started in 2022 only. It's not old.
Okay. So, let me come to non-tariff barriers, which have been brought up in the context of China, but are also relevant in the context of India. What's your sense?
You think, I mean, countries like India will give in on non-tariff barriers or some of them at least, I know some are red lines, but how do you see that aspect?
Ajay Srivastava: So, non-tariff barrier is a term which is a non-standard term. The standard term is, see, if I make some policy, I call it non-tariff measure. Which is not the tariff measure, but other than tariff measure, for example, I put some import restrictions on some products.
I call it measure because I think it's important to ensure health or some environmental standards. I have to maintain those things. If other countries find it unreasonable, they call it a non-tariff barrier.
So, there's always this tussle when a measure becomes a barrier. No country agrees that it imposes any single non-tariff barrier. Same is the condition with India.
India imposes many legitimate policy restrictions, but the US may call non-tariff barriers.
Govindraj Ethiraj: So, would this be in areas like agriculture and dairy mostly?
Ajay Srivastava: Of course. For example, they say that our MSP is a barrier. It's of course a non-tariff barrier.
Our public stockholding should be diluted. It's not needed. Then our subsidies on rice are very heavy.
It's a non-tariff barrier. Then they say, for example, I'll give you one very interesting example. India restricts import of dairy products, for example, butter made of a cow which has been fed the meat of another cow.
We feel it's in our right to say so. The US feels it's a big non-tariff barrier. It's totally unreasonable.
India should do away with that. So, that's how I say it's absolute most non-tariff measures for us, cultural sensitivity and other things. And the US finds its non-tariff barrier.
They openly talk about this.
Govindraj Ethiraj: For example, in the case of the US-UK deal, the UK has allowed imports of beef, but it does not allow hormone-treated beef, which apparently disqualifies almost 80% of US beef. So, it's not just India, even other countries have.
Ajay Srivastava: Because I think the UK also feeds its cows this meat of another cow. Remember, about 20 years back, there was a mad cow disease in Europe. They had to slaughter millions of cows because they were fed the meat of another cow.
So, this practice still goes on.
Govindraj Ethiraj: Right. Last question. So, in terms of where we are today, and given that the tariff lines have again changed and so on, what do you feel companies or businesses should be doing?
I mean, should they be waiting to see where things go? Should they be striking deals?
Ajay Srivastava: All I say is, companies should focus on cutting their costs of production, focus on branding, focus on delivery. Trade is a peripheral thing. If your product is good, it will sell.
So, whatever best policy is available internationally, they can use that. They should use this time to make their product better and cheaper. Mr. Shrivastava, thank you so much for joining me. Thank you. Thank you.
Govindraj Ethiraj: Mr. Srivastava, thank you so much for joining me.
Ajay Srivastava: Thank you. Thank you.
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There is some stress on the India-US trade talks front, maybe linked to some of the comments from the United States in the context of the India-Pakistan conflict in the last few days. But linked or not, India's proposal to impose retaliatory import duties on certain US products in response to American tariffs on steel and aluminium could cast a shadow over ongoing negotiations for a trade agreement between the two countries, according to GTRI or the Global Trade Research Initiative. India has formally notified the World Trade Organisation of its intention to suspend trade concessions granted to the US, and the proposed suspension could take the form of increased tariffs on select US products.
While the terms have not been disclosed in a similar move in 2019, India had imposed retaliatory tariffs on 28 US products ranging from almonds and apples to chemicals.
Elsewhere China said that it will start taking deliveries of Boeing aircraft it had sent back earlier, including at least two brand new aircraft which returned quite dramatically to Seattle last month, or rather flew all the way back after coming to China. This would also mean that airlines like Air India and Malaysian Airlines, who were negotiating with Boeing to grab some of those returned aircraft, will have to go back in line. Meanwhile, Commerce Minister Piyush Goyal will travel to Washington on May 16, according to a report in Business Standard, to lead high-level talks with U.S. officials on the proposed bilateral trade agreement. The four-day discussions are scheduled from May 17 through 20 and will involve meetings with key U.S. trade officials, including Commerce Secretary Howard Lutnick. An official from the Indian side told Business Standard that the two countries are working on an interim trade arrangement focused on goods to achieve early mutual wins before finalising the first phase of the larger deal by September or October this year. Speaking of travel, U.S. President Donald Trump began a tour of Saudi Arabia, Qatar and the United Arab Emirates on Tuesday, by starting off with Saudi Arabia. His focus on this trip is more on securing mega-investment deals rather than resolving pressing security problems in the Middle East, according to Reuters. And speaking of Trump, developers Smartworld and Tribeca said on Tuesday they sold all 298 Trump-branded residences in Gurgaon, near Delhi, securing Rs 3,250 crore in a single day.
The Rains Are Coming
The Indian Meteorological Department on Tuesday announced the onset of the southwest monsoon over some areas of the Bay of Bengal and the Andaman Sea. The IMD said that the southwest monsoon has now advanced into some parts of the South Bay of Bengal, South Andaman Sea, Nicobar Islands and some parts of the North Andaman Sea on May 13 and that it would continue to advance over the sea during the next three to four days. The monsoons are now set to hit the southern coast of India around the 1st of June.
I reached out to Air Vice Marshal G.P. Sharma, President, Meteorology and Climate Change of Skymet Weather, the other major weather forecaster in India apart from the government's IMD, and I began by asking him to first take us through the process of data collection and then his analysis for forecasting the monsoons.
INTERVIEW TRANSCRIPT
AVM GP Sharma: The monsoon forecast is a challenge. A number of parameters come into play. Monsoon is an oceanic and land-based couple phenomenon.
So both the parameters from oceans as well as the land, including the mountains or the other terrain, difficult terrain, comes into picture. Largely it is driven by the oceans. Like it has teleconnection with the Pacific Ocean also, which we keep saying and so for El Nino, La Lina, that is what is in the Pacific and closer home we have the Indian Ocean, where we keep talking about the Indian Ocean Dipole.
In addition to these, there is a transiting factor which is MJO, Modern Julian Oscillation, that also makes its appearance during the monsoon season, maybe thrice or so because it goes around the globe. In addition to that, there are some global parameters, be it the pressure distributions over land and in the continents, be it the snowfall in the European region mountains, how are the glaciers, how are the mountains. These are the larger parameters which come into play, like a lesser amount of snow in Europe will be favourable for the good monsoon.
So this is one example. So all these put together, the process of forecasting monsoon, prediction of monsoon, starts much earlier. I will say as soon as the first season gets over, you get into that mood of preparing for the next one.
But then, as you said, the sky map comes out with its first preliminary foreshadow of the monsoon season. Sometimes we attempt to have it in the month of January, mid-Jan or end-Jan and if it is getting delayed a bit, then the start of February is the period. Yes.
Govindraj Ethiraj: So now looking at 2025, how are you broadly describing the nature of the rainfall that we are likely to see, the intensity of it and the dispersion and finally, how could it be spread out? Would it be similar to last year which was of course unusual in itself or recent years or maybe could it be something different?
AVM GP Sharma: See, the best of the monsoon will leave about 15% area. A little below normal, it could be a deficit. And the worst of the monsoon, it gives good range at least in the 15-20%.
That's the distribution which happens every monsoon, it is like that. This season, as the forecast is for a good monsoon, SkyMet has given a forecast of 103% of long period average and the National Weather Agency has given 105%. But more than these figures which we have, what matters most is the temporal and spatial distribution of the rainfall during the four-month long monsoon season as such.
It matters also most over those pockets which are rain-fed. In the core monsoon zone, like our I will say, the central parts of the country, be it whole of Maharashtra, adjacent regions of Madhya Pradesh, even up to Gujarat and going to eastern states like Odisha and adjoining parts of Chhattisgarh, these are the parts which are largely dependent on the monsoon rains. These are the rain-fed zones and this is what we call a core monsoon zone also.
In addition, yes, the agricultural bowl of the country which we call it as the north-western parts of the country, but they are a little well-off. They are a little well-off even if the rainfall is not adequate all the season, all the months, but they have good resources, whether the irrigation part, you say, or the water bodies are there, they're a little well-off. But in the core monsoon zone of central parts of the country which is rain-fed, it is very crucial for this to have a better monsoon, a good monsoon.
And the good news this time is, this part of the country where it matters most, I think they are going to have a good rainfall distribution. It should be timely also. It cannot happen all the time, all the months that you have a distribution, the way you like to have it.
Like, I feel the start of the monsoon this time, though it will be timely, maybe before time onset over Kerala, but then overall, month of June as such is consumed in advance of monsoon or right up to the north-western parts of the country. So, there could be a little sluggish start in between and the advancement may not be as we wish as the pace of monsoon may be a little languid while it reaches over central and the eastern parts of the country. But then overall, except for the month of June, which is likely to have a little less rainfall than the normal.
Otherwise, the core monsoon months, that's July and August, we are going to have a decent monsoon rainfall, different parts of the country, most parts of the country.
Govindraj Ethiraj: Yeah. One of the characteristics of recent monsoons has been very high intensity and extreme weather, very high rains, which also obviously has economic impact. For example, last year, a lot of car dealerships were saying that people are not turning up in their dealerships because of heavy rains.
They also said the same thing about extreme temperatures. But the point is that when there is this form of differential in the intensity, that also causes problems, including for agriculture. Are you able to say or are you able to project on how the rains would behave apart from the fact that they will, it will actually rain across these two or three months?
AVM GP Sharma: It's very difficult to focus on such events. But yes, based on past experience, we have noticed high intensity rainfall, like the duration is less, but the intensity is more. You rightly have pointed out, these events are going to be there.
The reasons are there for this. I feel the human-induced climate change has altered many things, particularly, as I mentioned earlier, in the tropical Pacific, in the equatorial Pacific, we have the ENSO, that is the El Nino Southern Oscillation. We have the El Nino events.
We have the La Nina events there. This time, of course, we have ENSO neutral conditions, but human-induced climate change has made these events more complex. It is becoming more and more difficult.
The predictability is suffering. Actually, the unpredictability is growing on account of this change which has taken place because the basic characteristics of this El Nino and La Nina, which largely control our monsoon, are changing. Okay, so it's very difficult.
The models are sometimes finding it very difficult to trap the forecast, the predictions, and that is how it is becoming more and more difficult, and that we have felt it also. Okay, and these high intensity and the high impact rainfall events will be a part of this season also. However, the intensity, how much is going to be there during the season, it cannot be predicted at this point.
Prediction of monsoon beyond a month, its rainfall distribution, and the temporal distribution, it's very difficult. It's not possible.
Govindraj Ethiraj: Yeah. Your next report, let's say, which looks at once the monsoon has settled in, which as you said is end of June, because you're projecting that things may be sluggish, but by end of June, it should have reached most parts of the country, and then we can start measuring it as a proper season. So, would that be when your next report would be out?
AVM GP Sharma: We give a comprehensive forecast to start with, like this time we have given for the various months also. We have given a detailed forecast regarding the rainfall distribution over different parts of the country in all the four months. By June, we had gone for 96% of the long period average, 102% for July, 108% for August, and then 104% for the month of September.
So, barring the month of June, the other three are definitely above normal, and all these months, they will have a decent distribution. So, SkyMet, we have a course correction only in case the deviations are large. Then, we try to give a course correction sometime halfway through the season, July end or start of August, but if it is behaving okay, if it is going as per on the predicted lines, then we do not give any correction as such, like we haven't given any for the last three years. Yes, we did correct it twice.
Govindraj Ethiraj: Mr. Sharma, thank you so much for joining me. It's been a pleasure speaking with you.
AVM GP Sharma: Thank you. Thank you so much.
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Build On Blockchain
Last week on Build on Blockchain, we explored India's digital infrastructure and its role in driving economic transformation with the former Director General of the Unique Identification Authority of India or Aadhaar, RS Sharma. This week, we continue that conversation with Chetna Gala Sinha, founder of Mann Deshi Foundation, an organisation dedicated to empowering women entrepreneurs in rural India. Chetna speaks on the unique challenges that women face when seeking loans from private banks and how Mandeshi is using blockchain wallets to simplify access to financing.
From reducing administrative burdens to potentially lowering collateral requirements for women-led SMEs, Chetna talks about how innovative technology can foster financial inclusion for a section of society that faces more hurdles than others.
INTERVIEW TRANSCRIPT
Govindraj Ethiraj: Ms. Sinha, thank you so much for joining me. So let me ask you a slightly broader question to start with. How difficult is it for women entrepreneurs to get loans today and what does it take for them and what do they have to go through to get a loan?
Chetna Gala Sinha: So whenever women entrepreneurs want to take a loan and as I'm assuming your question is that loan from the bank or a formal financial institution, right?
So the first thing if a woman wants to take a loan for a business or for her enterprise which she's running, it's already existing, the bank will ask her, what is the collateral? Here we are talking about not micro credit loans or joint liability group loans. We are talking about micro enterprise loans.
So the first question the bank asks her is what is the collateral for the loan? And women do not have collateral because they do not own property, nor do they own a house. So they don't have ownership of any assets.
And because they don't have assets, that is the first question which they have no answer to or they would say like, we don't have assets and they are denied. The second is, what is your credit score? What is your credit history?
Now again, here she doesn't have a credit score because first time borrower, right?
And if I borrowed from the informal sector, then there is no certification of that, which is valid for the formal sector. So in that way, she doesn't have any credit score or any credit history. That is the second. And the most important, like in the beginning, one would have that women need a lot of identities when she goes to the bank, like first of all, her own KYC. The second is the KYC of her own businesses. That is also very important, having Udhyamadhar and all.
So the own KYC of the business and then whatever business she is running, the licensing of those businesses. So bringing all together at one place, it is so challenging.
Govindraj Ethiraj: Tell us about where blockchain could help. I mean, could blockchain wallets empower women?
Could it reduce the administrative burden that is on the bank or those assessing the credit? Where do you see its role?
Chetna Gala Sinha: So let me tell you, I am not a technical expert. I don't know about the details of blockchain. But I would just say that, you know, working with women, we realise that how technology can really enable it can play a role of enabler for these women who have actually missed their high school.
They have not been able to complete their education. But now there is an opportunity where they can get access to technology, then they can empower them. And that is how they can do it.
So in case of say, I'm talking about a woman like Lakshmibai, who runs the business of making dal from pulses, does the packaging of dal and sells it. Now, if she wants to start the business, the first thing and then she wants an access to capital for that business. What does she require?
Number one, she requires her full proof KYC, that is her photo ID, her address proof, these things. Now, in a country like India, of course, we have Aadhaar. So Aadhaar is there, but her residential proof is required.
So the ration card is there. Then her Aadhaar has to be linked to the phone. So she needs a mobile phone and a smartphone is better.
So that is her, that is a part of her own KYC. The second thing then she requires is that, well, as I mentioned earlier also about the credit score or what assets she has, she does not have collateral. How will she prove that she has these assets?
So can we actually create, say, the whole bundle of her KYC, which can be digital and which can be placed on some public platform where the third party can consider it authenticated. So that is one. So in that case, if she has a KYC and it is like in control, I mean, the privacy is there.
So the blockchain can help to place her KYC on that blockchain platform. The second thing which she requires is that credit score. Now, she has not taken a loan or she has not borrowed.
So she does not have any proof of or does not have a credit history. So what Mann Deshi has done is created a table, created a tool, which is a credit rating tool, which gives all the details of that woman, her banking history, her transaction history, her business ID. Even when she has various licences, she has taken a course of her business, then a certificate of that.
And all this can be tokenised and after tokenization, it can be placed on the blockchain so that the third party or I can say financial institution, can consider that this is verified, authenticated and that it can be on this platform. So if these documents, otherwise it's very difficult for her, it is scattered everywhere. But if these documents are placed on some tech platform, which we can say like on blockchain, which has a total control, sole control is owned by women, but at the same time, third parties can actually verify. Now the time has come where micro enterprise and access of loan and capital to micro enterprise, women will prove that they will be successful businesswomen and they will be successful repayers and establish their own business. So I would say that, you know, when we talk about women owned enterprises and then we talk about the world index, sometimes you feel ashamed that, you know, the number of enterprises owned by women all over the world is so low. But with this, I would say with various innovative solutions, if women get in capital and they are able to own their business and scale their businesses, we will be, this is a starting, 2025 can be the start of increasing the percentage of women owning business globally, nationally and in states like Maharashtra.
Govindraj Ethiraj: Ms Sinha, it was a pleasure speaking with you. Thank you so much for joining me.
Chetna Gala Sinha: Thank you. Thank you, Govind. Nice talking to you.
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This segment was part of our special coverage, Build on Blockchain, brought to you by Algorand. Flight suspended again.
Flight Updates
Indigo and Air India have suspended flight operations to some cities in northern and western India for May 13, citing precautionary airspace restrictions and heightened security measures at the border. Air India has cancelled round-trip flights to and from Jammu, Leh, Jodhpur, Amritsar, Bhuj, Jamnagar, Chandigarh and Rajkot. It said that in view of the latest developments and keeping the passenger safety in mind, Jammu, Leh, Jodhpur, Amritsar, Bhuj, Jamnagar, Chandigarh and Rajkot flights were cancelled for Tuesday, the 13th of May.
Indigo also announced cancellation of flights to and from Srinagar, Jammu, Amritsar, Leh, Chandigarh and Rajkot until 11.59pm on Saturday. The Airports Authority of India on Monday had resumed operations at 32 airports that were temporarily closed in the wake of the recent military standoff between India and Pakistan. By the looks of it, and given that the two biggest airlines have expressed concerns, there are some issues still to be resolved, including presumably the backlog of bookings.
