China's mangoes are eating into Indian exports

Top of the Morning

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. Wishing you a happy independence day! It's Wednesday, 15 August 2024. My name is Nelson John. Let's get started.

Markets remained largely flat on Wednesday. The Sensex was up by 0.2 percent, while the Nifty 50 edged up by just 0.02 percent.

India is 78 today. Our markets reach record highs regularly, although not without volatility, and our economy is chugging along. This has been made possible due to some path-breaking economic decisions that have been taken along the way. N. Madhavan takes a look at some of these decisions that have helped India become the fifth-largest economy in the world. Some moments over the years include the green revolution, Manmohan Singh's LPG, and GST.

The recent turmoil in the markets is largely caused by foreign investors pulling their money out of Indian equities. But they have been kept in check by retail investors, who are acting as a counterbalance. Ram Sahgal writes that Indian investors have helped prop the Nifty up and perform better than its peers like Japan's Nikkei, South Korea's Kospi, and Singapore's Straits Time Index. Despite foreign investors pulling out in large numbers, domestic investors are keeping things going for the Indian public markets.

The Nifty has fallen 1.8% during the past 30 days. One of the major factors has been the announcement of the Q1 results for FY25. Manjul Paul analysed nearly 1,500 companies listed on the public bourses, which yielded moderate growth this quarter. Combined revenue increased by 9 percent annually, while net profit was up just 5 percent for the same period. Profits have been trending downwards for a few quarters, economists note. But a closer analysis shows some disparate trends: Manjul finds out that sectors like oil and gas, power, chemicals, and agriculture are performing much more poorly than their peers.

This year's Union Budget allocated nearly a billion dollars towards the National Quantum Mission. But what is that? India wants to be a hub for super-fast quantum computers, and it also wants to make semiconductor chips. The central government has also been bullish on artificial intelligence and has announced several schemes. These are good, healthy targets. Leslie D'monte takes stock of India's technological progress and how these ideas will receive policy support over the years to make the plans a reality.

Indian mangoes ruled the foreign market for decades. Farmers grew varieties like alphonso, langra, and dasheri specifically for export, as they fetched a better price in the western countries. India produces 40 percent of the world's total mangoes. However, India is losing its stronghold over everyone's favourite fruit. There's a new exporter in the market: any guesses?? It’s China. Dhirendra Kumar reports that China exported mangoes worth 59 million dollars in 2023, compared to mangoes worth 55 million dollars by India. Funnily enough, mangoes are not native to China — India’s first prime minister Jawaharlal Nehru had gifted China eight mango saplings back in the 1950s. This diplomatic gift has come back to haunt Indian mango makers decades later.

Show notes:

Amid FII selling, retail investors again prop up Indian market

As Q1 profit growth retreats, can India Inc. hold its head above water?

Chips, Indic LLMs, flying taxis: Inside India’s tryst with tech independence

Seven economic moments to remember since 1947

Mango wars: China grown Indian mango varieties eat into India’ exports