In this week's wrapup we talk about drone laws, grammatical quirks, Archegos Capital, Xinjiang cotton and India-Pakistan trade relations.
But before we get there, a quick reminder that you can read this week's Finshots Markets (on contract manufacturing and Dixon Technologies) by clicking the link here.
The age of drones
Drones are everywhere these days. You can use them to capture breathtaking videos, you can use them for recreational purposes and you can use them to map places. The sheer range of application is mindboggling. However, as a country, we haven’t had clearly defined rules on manufacturing and operating these unmanned aircraft systems. So the government has been working hard to frame a new set of guidelines regulating drone use and production in India and if you want to know more, you should definitely read this article.
"THE" Call of Duty
Imagine the government losing 50,000 crores because lawmakers didn't have the foresight to use the right "articles" when drafting policy. It sounds like a ludicrous proposition. But that's precisely what happened recently when Canon and other camera manufacturers took the Directorate of Revenue Intelligence to court. Still not following what's happening here? Then head over to Finshots and read the whole story now.
The biggest stock market event of the year
Archegos Capital Management is a family office. And while the name “family office” might sound rather lacklustre, these entities manage billions of dollars of private wealth — belonging to rich families. And the most important bit — They are not heavily regulated either. So when the company defaulted on billions of dollars of obligations, commentators immediately began dubbing it as the new Lehman moment. But is it really that bad? Well, to understand this bit, you'll have to know what really went down at Archegos and on Wednesday we provided a simplified explainer on just that. Link here.
No country for Western brands
Xinjiang is the largest province in China and by far, the most controversial one. But in recent years, China has alienated these people, destroyed their culture, detained millions and transferred them to “re-education camps”. But in this edition of the newsletter, we are not talking about the broader issue in Xinjiang. Instead, we are going to talk about cotton and the extended apparel industry. Read the story here.
To trade or not to trade
Cotton and Textile Industries are indispensable to Pakistan’s cause. They make up close to 60% of the total exports and contribute 8.5% to the national GDP. However, lady luck hasn’t been too kind to our neighbour and the country’s cotton mills have suffered quite considerably in the recent past. They have had to rely on imports from faraway countries. It was an expensive affair and it took months for the cotton to reach Pakistani shores. The best solution at this point in time would have been to turn to India. But is it, really? To find out more, read the entire story here.
That's it from us this week. We will see you on Monday :)