Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, February 5, 2025. This is Nelson John, let's get started.
Despite India's solid track record of fiscal discipline and a narrowing fiscal deficit, international rating agencies like Moody's and Fitch remain cautious about upgrading India's sovereign rating. Currently, Fitch Ratings assigns India a 'BBB-' with a stable outlook, which is the lowest investment grade, suggesting good credit quality but vulnerability to adverse conditions. Similarly, Moody's and S&P rate India at 'Baa3' and 'BBB-', respectively. This contrasts with China's 'A+' and the US's 'AA+', indicating higher credit qualities and lower default risks. The hesitation to upgrade India’s rating affects the cost of borrowing and investment attractiveness, crucial for economic growth, N Madhavan reports. Critics, including UNCTAD, argue that international rating agencies may be biased against emerging economies. Despite significant growth, robust financial systems, and strong foreign investor interest, India's rating has remained unchanged for two decades.
India is set to develop its own AI chip, aiming to enhance its technological independence and global competitiveness. This initiative, led by the Ministry of Electronics and Information Technology in collaboration with the Centre for Development of Advanced Computing (C-Dac) and the National e-Governance Division, focuses on creating a chip using the open-source 'Risc-V' architecture. The goal is to support academic researchers and startups in building foundational AI models, Shouvik Das reports. High-level discussions have involved not only Indian experts but also US Big Tech firms and Taiwan's TSMC, to craft a chip fully made in India by 2027, leveraging local talents and resources. This move is part of a broader strategy under the India AI Mission, aiming to establish a domestic chip production capability that reduces reliance on foreign technology, particularly in light of recent geopolitical tensions and supply chain vulnerabilities highlighted by US restrictions.
Rashmi Saluja's tenure as chairperson at Religare Enterprises may be nearing an end amid a contentious takeover battle. Despite efforts to stabilize the company post-bankruptcy, about one-third of its investors have voted against her reappointment ahead of the upcoming AGM on February 7th. The Delhi High Court has also declined Saluja any interim relief to halt the AGM proceedings. Investors, including the Burman family who owns 25.1% of Religare, have expressed a desire for new management to steer the company towards growth. With 31.85% of shareholders, including financial firms and mutual funds, voting against her, Saluja’s reappointment seems unlikely unless there is an unexpectedly high turnout in her favour from smaller shareholders.
The National Medical Commission (NMC) is gearing up to elevate India's postgraduate medical education to global standards by forming Specialty Expert Committees (SEC) for each speciality. Priyanka Sharma spoke to Dr B. Srinivas, secretary at the NMC, who said that these committees will develop model curriculums, assess educational institutions, and address academic needs, aiming to standardize and improve the quality of speciality courses across the country. This initiative, highlighted in a letter to medical colleges reviewed by Mint, also involves these expert committees in handling student grievances and other speciality-specific requirements. The NMC has called for nominations of faculty members ready to join this effort, with a deadline for submissions set for within 15 days. The move comes as part of a broader effort to address the disproportionate doctor-patient ratios in India by boosting both graduate and postgraduate medical manpower.
Wingify, started in 2009 in Delhi, has grown significantly, boasting a global customer base and robust revenue growth, reaching ₹288.61 crore in 2023-24. This bootstrapped startup's success caught private equity firm Everstone's eye, especially Wingify’s self-sufficient growth and strong technology base. This acquisition aligns with Everstone’s focus on technology-driven firms, following a similar investment in MediaMint, Shadma Shaikh reports. The deal not only marks a significant phase for Wingify but also stands out as a successful bootstrapped venture in the SaaS space, showcasing that startups can achieve substantial growth without external funding. This event is seen as a boost for the Indian SaaS ecosystem, reflecting a mature, profitable company making a significant impact globally.
