India’s digital bigwigs brace for stricter regulation

Top of the Morning

On July 8, the Supreme Court will review nearly twenty petitions regarding NEET-UG. The outcome could affect around 2.4 million students. Allegations of paper leaks, exam delays, and unusually high scores have sparked demands for a reexamination. The petitions also sought CBI and ED investigations, besides the formation of an independent committee to probe these irregularities. Responding to the uproar, the government has withdrawn grace marks for some students and formed a committee to review the exam administration process and enhance security. Mint's legal correspondent Krishna Yadav and education reporter Devina Sengupta discuss the implications of this entire fiasco in today's Mint Primer.

Moving on to our next topic of the day: Following India's thrilling victory over South Africa in the T20 World Cup Finals, India's cricketing dominance is at an all-time high. However, amid this glory, a critical pillar of support is faltering—a unique cricketing asset, the Kashmir Willow. Skilled artisans, famed for crafting cricket bats from Salix alba caerulea willow, are rallying for a renewed emphasis on local production, calling upon Indian cricketers to champion domestic industries, and highlighting the challenges they face. The craftsmen like Mohammad Yousuf are contemplating closure due to severe shortages of willow clefts, and rising costs. Irfan Amin Malik, a Kashmiri journalist, delves into the stories of families linked to Kashmir's bat-making tradition, capturing their resilience and hardships in today's extensive Long Story.

Now let’s switching gears to enter the world of entertainment: In the dynamic OTT landscape, the rise of advertising video-on-demand (AVoD) within traditionally subscription-driven platforms is causing waves in the streaming world. Leading this charge are platforms like Amazon's miniTV and Disney+ Hotstar, which are now offering popular shows and major sports events for free on mobile devices. This shift isn't just about cost efficiency—AVoD content is notably cheaper to produce than SVoD. It's also levelling the playing field for new talent and smaller production houses to make their mark. Mint’s entertainment and media correspondent, Lata Jha, spoke with industry insiders who emphasised the challenge of maintaining robust ad rates and crafting compelling content that turns casual viewers into devoted subscribers.

India's burgeoning digital marketplace could soon face a new regulatory hurdle. Companies like Zomato, Myntra, and Nykaa, alongside international giants such as Alphabet and Meta, are in the spotlight, and might soon find themselves classified as 'systemically significant digital enterprises' or SSDEs under the proposed Digital Competition Bill. It will henceforth be mandatory for them to stick to a strict set of rules and report compliance to the Competition Commission of India every year. But here’s the kicker—any slip-ups could see these firms facing fines of up to 10% of their global turnover. Mint’s senior editor Gireesh Chandra Prasad reports on the proposed move, inspired by Europe's Digital Markets Act, but \tailored to better fit the contours of India’s dynamic economy.

With each budget announcement, citizens hold their breath for potential tax breaks, yet an emerging concern is the rising trend of retail investors plunging into high-risk ventures. According to an NSE report, 40% of its 95 million investors are Gen Zs, up significantly from 22% just five years ago. Additionally, the volume of high-risk index options has skyrocketed by over five times in the last three years. Consequently, there's a push for strategic tax incentives to guide investors toward safer, and regulated options. RBI's retail direct scheme for government bonds, for instance, offers secure investment avenues, but has seen limited uptake due to higher taxes and complex interface. Finsafe India’s Mirin Agarwal writes for Mint Money, explaining how three policy changes could put more money in the pockets of the aam aadmi, while safeguarding them from risks.

We'd love to hear your feedback on this podcast. Let us know by writing to us at [e-mail]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.

That’s all for today. Thank you for listening.

We're eagerly looking forward to our next Top of the Morning episode, which will be packed with fresh business news. Until then, have a great day ahead!

Show notes:

Mint Primer | NEET-UG fiasco: How to avoid trouble, going ahead

Death overs: After a century, Kashmir’s batmakers could be run out

Ad-driven slates are a strong focus for OTT platforms as initial efforts pay off

Digital Competition Bill: Gatekeeper tag likely for top digital startups

Three ways Budget 2024 can put more money in aam aadmi's pocket