Top Headlines: IT's ability to fund trade deficit dips, Infy cuts variables

IT services are India's single biggest export and a key source of foreign exchange. But there has been a sharp decline in the IT industry’s ability to fund merchandise trade deficit and current account deficit. Meanwhile, the IT ministry has asked Chinese device makers to push exports from India and also bolster their supply chain in the country to increase value additions. Read more on these in our top headlines.

India sees sharp decline in IT sector's ability to fund trade deficit

IT services are India's single biggest export and a key source of foreign exchange. But there has been a sharp decline in the IT industry’s ability to fund India’s fast-growing merchandise trade deficit and current account deficit. The net export of IT services funded just 30 per cent of India's merchandise trade deficit in July, down sharply from 68 per cent in the year-ago period. Read more

MeitY pushes Chinese firms to participate in smartphone exports from India

The Ministry of Electronics and Information Technology (MeitY) has asked Chinese device makers to push exports from India and also bolster their supply chain in the country to increase value additions. A few such companies, such as Oppo, are already preparing a road map for the same, according to sources. Read more

Dolo 650 maker says drug part of Covid treatment, denies 'freebie' charges

Bengaluru-based Micro Labs — the makers of popular paracetamol brand Dolo — said the use of 650 mg paracetamol as first line of Covid-19 treatment was a part of the national treatment guidelines issued by the Centre and thus became the drug of choice among doctors. Micro Labs further said there was no specific reason to promote the 650 mg variant over the 500 mg as both are covered under price control. Read more

Centre proposes stricter valuation rules for overseas direct investments

The government on Monday introduced new set of rules for domestic entities, including companies and large family offices and start-ups, opting for overseas direct investment route (ODI), which could impact their acquisition decisions in a big way. Read more

Infosys cuts average variable payout to 70% for Q1 on margin pressure

India’s second-largest information technology (IT) firm Infosys has decided to reduce the average variable payout of employees to 70 per cent due to falling operating margins in the first quarter (Q1) of 2022-23 (FY23), said people in the know. “The margin impact in the current quarter has reflected on the performance bonus for this cycle,” the company told its employees over email. Read more