Page 15 - Banking Finance February 2023

ROUNDUP

A decision in this regard was taken in The WEF said globally businesses are chief Nidhi Khare said at a press con-
the meeting of the Cabinet Committee expected to cut costs significantly in ference.
on Economic Affairs (CCEA), headed by response to economic headwinds, but
The market size of the social influencer
Prime Minister Narendra Modi. "The chief economists are optimistic about
industry is projected to reach Rs. 2,800
cooperatives sector plays a pivotal role inflation and strong balance sheets.
crore by 2025 as firms increasingly rely
in creating a stronger economy and fur-
A majority of the World Economic on them to push products to their au-
thering rural development. In this con-
Forum's Community of Chief Econo- dience in a more relatable and per-
text, the Cabinet has taken a crucial
mists expect to see geopolitical ten- sonal way.
decision which will further our vision of
sions continuing to shape the global
Sahakar Se Samriddhi," Modi said.
economy, and anticipate further mon- India aims to become key
etary tightening in the United States
chip supplier for world
NFRA to introduce annual and Europe.
Sensing a huge opportunity in the glo-
transparency report by Almost two-thirds of chief economists
bal semiconductor market, India has
believe a global recession is likely in
audit firms set in motion an ambitious plan to be-
2023; of which 18 per cent consider it come a key supplier for the world with
The National Financial Reporting Author-
extremely likely - more than twice as
the government itself putting in USD
ity (NFRA), the country's sole indepen-
many as in the previous survey con-
10 billion, Communications Minister
dent audit regulator, has published draft
ducted in September 2022.
Ashwini Vaishnaw said.
requirements regarding preparation and
A third of respondents consider a glo-
publication of Annual Transparency Re- Speaking at a session on 'Learning from
bal recession to be unlikely this year.
port (ATR) by auditors/audit firms. semiconductor supply shocks' at the
There is, however, a strong consensus
The ATR requirements are proposed to World Economic Forum Annual Meet-
that the prospects for growth in 2023
be implemented in a gradual manner ing 2023 here, the minister said there
are bleak, especially in Europe and the
for public interest entities (PIEs) start- is a very large market that requires
US. All of the chief economists sur-
ing with statutory auditors of Top 1000 semiconductor.
veyed expect weak or very weak
listed companies (by market
growth in 2023 in Europe, while 91 per PAN as single biz ID to get
capitalisation) with effect from the fi-
cent expect weak or very weak growth
nancial year ending on March 31, legal backing
in the US.
2023. The ATR has to be published
The Union Finance Ministry may bring
within three months from the end of in a legal framework for adopting the
New rules for social media
each financial year.
permanent account number (PAN) card
influencers as the single business or corporate
Recession likely; India may The government cracked down on the identification proof in Budget 2023-24
booming market of social influencers proposals. According to a report, this
benefit from diversifica-
with new rules, including publishing move would first help all businesses in
tion of supply chains clear disclosures about brand associa- securing approvals. Secondly, through
A global recession is likely in 2023, but tions, to bring transparency and pro- the provision, businesses or entities can
pressures on food, energy and inflation tect consumers. Influencers who fail to link their PAN card with any other ex-
may be peaking, the World Economic comply risk facing hefty fines of as isting identifications. This would help
Forum said in its Chief Economists Out- much as Rs. 50 lakh or being barred them in simplifying the procedures and
look survey. from endorsing products for up to six will be recognised under various cen-
years. tral and state legislations.
At the same time, some economies in
the South Asia region, including Disclosures will be required to be pub- As per the report, the enabling provi-
Bangladesh and India, may benefit lished when there is a "material con- sion or clause may be introduced in the
from global trends such as a diversifi- nection" between an advertiser and a Finance Act, 2023, ensuring the legal
cation of manufacturing supply chains celebrity or influencer, Central Con- backing for PAN is used as the primary
away from China, the report said. sumer Protection Authority (CCPA) identifier of an entity.
14 | 2023 | FEBRUARY | BANKING FINANCE