Business

Seoul, Aug 21 (IANS) South Korea will launch the "Future Fund" to promote long-term economic growth, using what the government calls "windfall revenue" from increased tax collection driven by the recent artificial intelligence (AI) boom, the budget ministry said on Friday.

The Ministry of Planning and Budget unveiled the plan in partnership with relevant government agencies, saying the AI industry has sparked a major transition across various areas, from the economy to social systems, beyond just a technological revolution, reports Yonhap news agency.

"Amid the global chip boom, domestic tax revenue is expected to rise sharply, driven by an increase in corporate tax revenue," the budget ministry said.

"We need to use the fiscal capacity secured under the current circumstances as valuable ammunition to take the lead in the global competition for technological supremacy," it added.

"Rather than spending these precious resources on one-off expenditures or using them to maintain fiscal soundness in a passive manner, we need to use them proactively to lay the groundwork for future growth," Budget Minister Park Hong-geun also said during a press conference.

"We need to change the way we manage public finances in line with the characteristics of our economy and the evolving fiscal environment," Park added.

"The government will set aside the sharply increasing tax revenue to establish the Future Fund and use it as a strategic investment platform to raise the country's potential growth rate and mitigate the effects of tax revenue volatility," he said.

The budget ministry introduced the concept of "windfall revenue," referring to tax revenue exceeding its long-term trend due to structural economic changes or significant economic fluctuations, such as an industrial supercycle.

The government said the concept differs from surplus tax revenue, which refers to tax receipts exceeding official forecasts due to unexpected short-term economic fluctuations or forecasting errors.

The windfall revenue will be used to finance the Future Fund, while surplus revenue will be used to fund supplementary budgets, repay government debt or make contributions to the fund.

The budget ministry said the fund will serve as a strategic investment platform aimed at boosting the country's potential economic growth.

The fund will also serve as a platform for fiscal stability, contributing to greater stability and efficiency in the country's budget management, the ministry said.

—IANS

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Seoul, Aug 21 (IANS) The labour union of Hyundai Motor launched a full-day strike on Friday after failing to reach an agreement with management over wages, raising concerns about further production disruptions amid sluggish vehicle sales.

It marks the first time in 10 years that the automaker's union has staged an eight-hour strike, reports Yonhap news agency.

Production lines at Hyundai Motor's plants in Ulsan, Jeonju and Asan are set to be halted for a combined 16 hours across two work shifts, with about 39,000 union members participating in the walkout.

Including Friday's walkout, the union has staged a combined 60 hours of strikes since wage talks with management began in May.

The continued strikes are estimated to result in cumulative production losses of around 55,200 vehicles, with lost sales exceeding 2.3 trillion won (US$1.64 billion), according to industry sources.

Production disruptions are expected to worsen as the union plans additional four-hour walkouts Monday and Tuesday.

The latest labour action comes after management and the union failed to narrow their differences over wages, a proposed 50 percent increase in performance-based pay, the reinstatement of union members dismissed over illegal activities and an extension of the retirement age.

The continued strikes are expected to bring cumulative production losses from last month through August 25 to around 62,000 vehicles, with lost sales estimated at 2.6 trillion won (US$1.85 billion), according to industry sources familiar with the matter.

The labour dispute is adding pressure on Hyundai Motor as the automaker grapples with weakening global sales.

Its worldwide sales fell 5.1 percent on-year to 318,454 vehicles in July, marking the 10th consecutive month of on-year declines, said an earlier report.

—IANS

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Washington, Aug 20 (IANS) Gujarat Chief Minister Bhupendra Patel on Thursday urged the global Gujarati community to participate in the state's development by investing in emerging sectors including GIFT City, semiconductors, artificial intelligence, data centres and biotechnology, as he sought greater investment ahead of the Vibrant Gujarat Global Investors Summit 2027.

Patel made the pitch while interacting with members of the Gujarati diaspora at an event organised by the Vishv Umiya Foundation in Washington on the fourth day of his US-Canada visit.

He presented Gujarat as a destination for new investment, highlighting its infrastructure, financial discipline, governance and policies for emerging industries.

The outreach comes as the state delegation continues meetings with investors and technology companies ahead of the 2027 summit.

Explaining the purpose of the delegation's visit, Chief Minister Patel said that business meetings were being held to attract investment, establish new industries and promote emerging sectors in Gujarat.

He added that the meetings held in Silicon Valley had been successful.

"Various business meetings are being held to attract more investment to Gujarat, establish new industries and promote the development of emerging sectors," CM Patel said.

He added that Gujarat had secured an important position in India's economic development and that efforts were now focused on expanding investment into new sectors.

Chief Minister Patel also stressed that the state's development strategy extended beyond economic indicators to basic infrastructure and the quality of life of citizens.

The Chief Minister said the state government is working to improve water supply, electricity, urban amenities and other essential services alongside economic growth.

In a democracy, CM Patel said, governments are assessed not only through economic figures but also by the changes people experienced in their daily lives.

"Gujarat had made significant progress in areas such as electricity, water and employment," he added.

Patel specifically called on overseas Gujaratis to invest in GIFT City, saying the community had created wealth and capital through its hard work across the world.

Investment in GIFT City, he said, would allow that capital to contribute to Gujarat's development while also benefiting investors and strengthening the state's financial economy.

He cited financial discipline and a robust administrative system as among Gujarat's strengths, saying the state had pursued development on the foundations of good governance, discipline and transparency under the guidance of Prime Minister Narendra Modi.

The Chief Minister also highlighted Gujarat's growing focus on new-age industries.

"The state is building a strong presence in semiconductors and data centres, with infrastructure, an industry-friendly environment, a financial ecosystem and supportive government policies creating opportunities for large-scale investment and employment," he noted.

Biotechnology and artificial intelligence were also identified as sectors with significant potential.

Patel's emphasis on these industries follows the state government's wider efforts to position the state as a destination for advanced technology and manufacturing investment.

The hospitality sector also featured in his pitch to the diaspora.

"Gujarat has considerable scope for investment in tourism, hotels and hospitality, with increasing industrial and business activity expected to generate demand for additional infrastructure and employment," he assured.

The Washington interaction formed part of Chief Minister Patel's week-long US-Canada visit, during which he is leading a high-level delegation to engage with businesses, investors and members of the Gujarati community and invite participation in the Vibrant Gujarat Global Investors Summit 2027.

Earlier on Thursday, the Chief Minister also met Walmart Executive Vice-President Dan Bryant in Washington to discuss opportunities for Gujarat's MSMEs and small artisans to access global markets.

"Gujarat's financial and administrative strengths, combined with opportunities in technology, finance, manufacturing, tourism and hospitality, can provide a broader platform for investment as the state prepares for the next edition of the Vibrant Gujarat summit," he noted.

--IANS

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New Delhi, Aug 20 (IANS) Commerce and Industry Minister Piyush Goyal on Thursday said that new avenues are being created for Indian farmers and processed food manufacturers to expand presence in the Singapore market and further to the whole ASEAN region and Australian market.

Goyal met Gan Siow Huang, Minister of State for Foreign Affairs and Trade and Industry, Singapore, and other dignitaries at the APEDA-FairPrice roadshow-cum-instore promotion being organised for expansion of exports of diverse range of India’s agricultural & processed food products.

“Organic products, fresh fruits and vegetables, frozen fruits and vegetables, dairy products, cashew, rice, millet-based products, and products sourced from different regions of India are being promoted through this engagement,” the minister posted on X.

He also held a meeting with Sopnendu Mohanty, Group CEO, Global Finance and Technology Network, a global advisory and investment firm based in Singapore.

They discussed opportunities to deepen India-Singapore cooperation in financial innovation, technology, and emerging areas of the digital economy.

“We also exchanged views on how India's dynamic financial ecosystem and Singapore's global financial and technology network offer significant opportunities for greater collaboration,” said Goyal.

The minister also met Cindy Lim, CEO of Keppel Infrastructure, in Singapore.

“We discussed opportunities for greater collaboration in infrastructure and sustainable development, building on the strong economic partnership between India and Singapore. India remains committed to enabling investments and partnerships that support resilient infrastructure and sustainable growth,” Goyal highlighted.

Goyal earlier joined Finance Minister Nirmala Sitharaman, External Affairs Minister Dr S. Jaishankar and Minister of State for Commerce and Industry, Jitin Prasada, in engaging “with our Singaporean counterparts at the 4th India-Singapore Ministerial Roundtable”.

“We discussed deepening the Comprehensive Strategic Partnership (CSP) across advanced manufacturing, fintech, digitalisation, healthcare, and sustainability,” the Commerce Minister informed.

—IANS

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Mumbai, Aug 20 (IANS) Around 88.5 per cent of individual traders below the age of 30 incurred losses in futures and options (F&O) trading in FY26, highlighting the significant risks faced by young investors in the equity derivatives market, according to a study by capital markets regulator SEBI.

The study found that traders under 30 accounted for 43 per cent of the individual trader base in FY26. At the same time, 73 per cent of individual traders had annual incomes of less than Rs 5 lakh, and this group accounted for 53 per cent of the aggregate losses incurred during the year.

SEBI said low-income traders remained particularly active in the derivatives market, with their trading intensity reaching 75 times their portfolio value. The findings underline the extent to which retail investors, particularly those with lower incomes, are participating in a highly leveraged and volatile segment of the capital market.

The study also showed that traders from B30 cities, or locations beyond India's top 30 financial centres, constituted 67 per cent of individual derivatives traders and accounted for 58 per cent of total retail derivatives losses.

At the state level, Maharashtra, Gujarat and Uttar Pradesh together contributed 41 per cent of the total net losses incurred by individual traders.

Overall, individual participation in India's equity derivatives market declined sharply in FY26, with the number of new traders falling even as the pace of exits accelerated. While aggregate net losses declined during the year, the average loss per trader increased, pointing to persistent risks associated with derivatives trading.

Aggregate net losses incurred by individual traders fell 18 per cent to Rs 91,685 crore in FY26 from Rs 1.12 lakh crore in FY25. However, the average loss per individual trader increased 2.4 per cent to Rs 1.17 lakh during the year.

Over the five-year period from FY22 to FY26, individual traders cumulatively incurred losses of Rs 3.85 lakh crore in the equity derivatives segment.

The Equity Derivatives Segment (EDS) also recorded its first year-on-year decline in active individual traders since FY16. The number of active individual traders fell 18 per cent to 87.5 lakh in FY26 from 106.2 lakh in FY25.

--IANS

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New Delhi, Aug 20 (IANS) The Securities and Exchange Board of India (SEBI) on Thursday eased the onboarding process for foreign portfolio investors (FPIs), allowing them to submit a digitally signed Power of Attorney (PoA) to their custodians.

Under the revised framework, an FPI can issue a PoA to its custodian by specifying its address and execute the document using a digital signature in accordance with the Information Technology Act, 2000, SEBI said.

"Towards SEBI’s continued digitalisation efforts, FPIs are now permitted to execute a Power of Attorney (PoA) through digital signatures in accordance with the Information Technology Act, 2000," the market regulator said.

A PoA authorises an FPI's custodian to act on its behalf. Custodians are financial institutions responsible for holding and managing investors' securities and assets, while also performing functions such as processing FPI registrations, clearing trades, managing settlements and reporting compliance to regulators.

"Digitally signed PoA is envisaged to

bring down the time taken in onboarding considerably as it eliminates the need for notarisation, apostillisation or consularisation of PoA," it added.

SEBI said the revised process will eliminate the requirement for notarisation, apostillisation or consularisation of the PoA. This is expected to reduce the time required for FPI onboarding and further improve ease of doing business for foreign investors.

The capital markets regulator said the move is part of its continued efforts to digitalise and simplify the FPI onboarding process.

Over the years, SEBI has introduced several measures to streamline the registration process, including a Common Application Form for FPI registration, PAN, bank and demat accounts. It has also permitted the use of Indian digital signatures for executing the CAF and other registration documents, introduced digital signature functionality within the CAF portal and allowed registration based on scanned copies.

The latest provisions will come into force with effect from August 20, 2026, SEBI said.

--IANS

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New Delhi, Aug 20 (IANS) India is picking up new advertising formats more quickly than in the past, with AI‑native formats expected to become mainstream in the country within three years, a report said on Thursday.

Programmatic advertising took roughly five to seven years to become mainstream in India after the United States and connected TV lagged by four to five years.

However, AI‑native formats should close that gap to three years as India’s large digital consumer base and adaptable ecosystem speed adoption, the report from Redseer Strategy Consultants said.

India’s digital advertising market is expected to grow from nearly $11 billion in 2025 to $19–22 billion by 2030 at 10–15 per cent annual growth, outpacing the global digital advertising market.

Digital advertising overtook traditional advertising in India in 2023 and is expected to account for 70 per cent of total ad spend by 2027.

"Mobile still anchors the market, while connected TV and retail media are drawing more advertiser interest. Quick commerce adds a distinct opportunity because the distance between seeing a product and buying it can be unusually small," the report said.

“India is becoming a market where global advertising ideas can find commercial scale much sooner. The shift matters because advertisers are getting access to richer consumer signals, stronger commerce linkages and new surfaces at the same time," said Mukesh Kumar, Associate Partner, Redseer Strategy Consultants.

The trend makes advertising more measurable for brands and closer to the point of purchase. It creates a stronger case for platforms to invest in first-party data, distribution and monetisation capabilities before the next format becomes mainstream, Kumar added.

The report forecasted the global advertising market to transition into a space driven by AI-native consumer experiences and new advertising formats.

Integrated platforms that combine demand-and-supply reach with owned consumer surfaces, SDK distribution and first-party (1P) surfaces will be best positioned to capture the next generation of advertising value as budgets increasingly follow high-intent consumer interactions.

Conversational AI advertising delivered more than twice the click-through rate of traditional search, while lower-funnel formats recorded over 70 per cent higher conversion, the report noted.

—IANS

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New Delhi, Aug 20 (IANS) India must retain zero Merchant Discount Rate on UPI transactions for small merchants and low‑value payments, as affordability has been central to UPI’s rapid adoption and resultant financial inclusion, industry experts said on Thursday.

The report from Policy Watch India Foundation cited experts warning that a user fee could adversely affect poor and informal economy participants, adding that affordability has also been central to UPI's emergence as a key component of India's digital public infrastructure.

“Zero MDR has been a defining policy intervention in democratising digital payments in India. It has lowered barriers to adoption, accelerated merchant acceptance, and reinforced UPI’s position as a globally admired digital public infrastructure,” said Dharmender Jhamb, Partner, Grant Thornton Bharat.

Jhamb said the future challenge is not to choose between inclusion and sustainability, but to achieve both.

The discussion comes amid the evolving policy framework for digital payments following Parliament's amendment to the Payment and Settlement Systems Act, 2007, which enables the government to notify electronic payment modes and transactions on which charges may be levied.

The experts stressed that any future MDR framework should balance the sustainability of the payments ecosystem with affordability and continued merchant adoption.

Dharmendra Kumar, Founding Secretary, Janpahal, said UPI had emerged as an important public good for small businesses and low-income families, particularly those operating in the informal economy.

“UPI has supported small businesses including street vendors increase their income and any user fee may impact the poor adversely,” Kumar said.

Bikash Narayan Mishra, Former Senior Advisor, Indian Banks’ Association, said zero MDR had helped make digital payments accessible to small merchants and had also supported wider access to formal financial services and credit.

“It encouraged businesses to adopt digital payment acceptance and, over time, enabled wider access to digital bookkeeping, formal financial services and credit," Mishra said.

Change to such a framework must be evaluated on its impact on merchant behaviour, financial inclusion and the broader digital economy rather than in terms of the cost.

As India's digital payments journey expands into Tier-3 and Tier-4 cities and rural India, affordability and trust will remain critical, he added.

National Payments Corporation of India (NPCI) data showed that UPI clocked highest-ever monthly transaction volume in July 2026 at 23.66 billion transactions worth Rs 29.88 lakh crore.

Transaction volume rose 22 per cent year-on-year and 4.1 per cent from June, while transaction value increased 19 per cent year-on-year. UPI processed an average of Rs 96,383 crore worth of payments every day during the month.

—IANS

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New Delhi, Aug 20 (IANS) Insurance regulator IRDAI has barred Niva Bupa Health Insurance from opening new places of business for six months after the insurer breached prescribed limits on expenses of management during the financial year 2024-25, the insurer said on Thursday.

Niva Bupa, in a statement, said the breach related to expenses of management, which include operating costs as well as commissions paid to agents and distributors.

"IRDAI had sought explanation from the Company on Expense of Management EoM limits for financial year 2024-25. The

Company had made submissions to IRDAI" it said in its exchange filing.

The health insurer said it has complied with the prescribed expense limits for the financial year 2025-26 and remains on track to stay within the regulatory limits during the current fiscal year.

Niva Bupa is backed by UK-based international healthcare group Bupa and is among the major standalone health insurers operating in India.

The regulatory action weighed on the company's stock. Shares of Niva Bupa extended their losses during the session and closed 1.3 per cent lower following the announcement.

"In this regard, IRDAI issued an order on August 19, 2026, whereby the Company has been warned for not complying with the applicable EoM limits for the FY 2024-25 and has directed not to open new place of business for a period of six months from the date of order," it stated.

"The Company is evaluating the order and will take appropriate steps to safeguard the interest of stakeholder," it added.

The six-month restriction on opening new places of business comes as the insurer seeks to maintain compliance with regulatory norms governing management expenses and distribution costs.

"Further, it may be noted that the company is in compliance with the IRDAI (Expenses of Management, including Commission of Insurers) Regulations, 2024 (“EoM Regulations, 2024”) for the full Financial Year ended March 31, 2026 as well as for the period Q1 ended June 30, 2026 and is on track to ensure compliance with the said EoM Regulations, 2024 for the full Financial Year ending March 31, 2027," it mentioned .

--IANS

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New Delhi, Aug 20 (IANS) India is offering a transformative growth story built on population‑scale digital rails that link identity, banking, payments and verifiable documents, Union MoS Communications, Dr Chandra Sekhar Pemmasani, said at the BRICS ICT Track on Thursday.

Minister Pemmasani told the international delegation that digital public infrastructure is a necessity, not a luxury, for sustainable development across the Global South.

He urged stronger BRICS digital partnership anchored in sharing modular, open-source technology frameworks to eliminate prohibitive licensing costs, alongside joint capacity-building initiatives to ensure fair representation in international ICT standard-setting bodies.

The minister outlined India’s strategic vision for open, inclusive, and resilient digital architectures designed to empower citizens and accelerate economic progress, to the international delegation of ministers, policymakers, academicians, and industry leaders from BRICS nations.

Highlighting India’s transformative journey, Dr Pemmasani said that India has demonstrated a modern paradigm built on population-scale digital rails encompassing identity, banking, payments, verifiable documents, and consented data.

He noted that the true innovation lies in establishing an open, interoperable foundational public layer upon which banks, fintech enterprises, and government departments can build diverse consumer services.

Elaborating on the core pillars of India’s Digital Public Infrastructure (DPI), the Union MoS detailed how the foundational identity layer enables low-cost remote verification across billions of authentications, SIM issuances, and banking access.

In the payments sphere, the Unified Payments Interface (UPI) has democratised finance, linking 720 banks, processing 85 per cent of India’s digital transactions, and contributing to nearly 49 per cent of global real-time payment volumes while expanding to nine partner nations.

He also emphasised the role of the Direct Benefit Transfer (DBT) portal, which integrates 318 schemes across 56 ministries to eliminate intermediaries, alongside DigiLocker’s ecosystem of over 700 million users and 9 billion issued verifiable credentials.

Newer initiatives such as the Open Network for Digital Commerce (ONDC), Government e-Marketplace (GeM), and Account Aggregator framework are further democratizing market access and individual data sovereignty.

—IANS

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