The Reserve Bank of India (RBI) has significantly increased its gold purchases to diversify its foreign exchange reserves amidst US dollar volatility. This strategy has contributed to a substantial rise in forex reserves, with gold accounting for over four-fifths of the increase.
The central bank aims to hedge against inflation and foreign currency risks by holding gold, a stable asset in times of uncertainty. The appreciation in international gold prices since February has further boosted the value of gold reserves. With diminishing faith in dollar assets and increased volatility in the FX market, central banks are opting to diversify their reserves, leading to a rise in gold holdings.
As of early April 2024, gold represents about 8.41% of India’s total foreign exchange reserves, with a significant portion held overseas.
The government plans to overhaul the Employees’ Provident Fund Organisation (EPFO) to align with universal social security goals and enhance service delivery. Proposed changes include restructuring EPFO offices, IT-driven automation of claims settlement, and cadre restructuring.
A study by IIT Delhi is underway to identify necessary reforms. EPFO’s staff strength has decreased by 21.3% in the past decade, despite a significant increase in claims settled. Efforts are underway to centralize data and automate claim settlement processes.
With a substantial rise in EPFO subscribers in recent years, the organization faces increased workload, prompting the need for modernization and resource augmentation.
The Indian startup ecosystem is poised to see a 20% increase in unicorns in FY25, with nearly 20 “soonicorns” . Startups include Bookmyshow, Navi, Paymate, Refyne, Clear, Ind Money, Jupiter, Ninjacart, and Biz on Go, valued between $600-930 million.
Fintechs like Turtlemint and Paymate are closest to reaching unicorn status. Last year saw a sluggish pace due to reduced investor commitments, with only two additions to the unicorn club. Fintech dominates the landscape, with a third of soonicorns being fintechs. The sector is thriving due to digital payment growth and government support. However, many startups are still burning cash, although revenue is increasing for most.
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