Smaller cities in India are driving consumer spending, according to an analysis of RBI data. Non-metro areas reported higher income growth and increased non-essential spending compared to major cities like Delhi, Mumbai, Chennai, Bengaluru and Kolkata. Around 79% of people in non-metro cities said they increased overall spending in the last year, versus 71% in major metro areas. Spending on essentials rose for both metro and non-metro cities due to inflation. However, non-essential spending jumped more in non-metro cities, with 36.4% of people there reporting rises versus less than 20% in metros. Income also grew more in non-metros, with 30% saying theirs was up last year compared to 22% in metros. The proliferation of startups and shared services centers in smaller cities may be contributing to better incomes. This points to smaller cities now playing a key role in sustaining India’s consumption-driven economy.
The Cellular Operators Association of India (COAI) has written to the Telecom Regulatory Authority of India (TRAI) dismissing concerns raised by 128 startup founders about network usage fees hurting innovation. The COAI termed the founders’ letter as “misinformed” and “fear-mongering”. It argued that exempting startups and MSMEs from such fees would enhance infrastructure and help them provide better services. The telecom companies also said an “equitable contribution” from large traffic generators would improve network quality for all. However, the startup founders had argued these fees would tilt the balance away from young companies. Interestingly, the telecom companies assured there would be no discrimination in quality of service between those paying the fees and those exempt.
The article discusses the effectiveness of impact investing in achieving social goals like addressing climate change. While impact investors have good intentions, the data suggests impact investing has had little real-world impact on energy production and consumption patterns. Fossil fuels still account for the vast majority of global energy use despite billions flowing into green alternatives. Divesting from fossil fuel companies has not significantly lowered their stock prices long-term. Private capital has also filled gaps left by public fossil fuel company retreats. The article argues impact investing offers a false promise of change and has likely reduced pressure for bolder policies. At best, impact investing may slightly delay energy industry transitions but larger systemic changes are still needed. Impact investors should be more transparent about the limitations and trade-offs of their approaches.