The state of India’s economy; Ola Electric’s Gen 3 scooters

Hello,

Many have pinned high hopes of tax relief and consumption revival as FM Nirmala Sitharaman presents her eighth Union Budget today. 

Startups and MSMEs expect tax relief, simplified compliance, and access to funding, while sustainability-focused sectors are calling for incentives to adopt green practices. There is also a growing demand for increased spending on infrastructure, healthcare, and education to drive long-term growth.

On the economy front, the Economic Survey 2024-25 noted the GDP for the next financial year is expected to grow between 6.3% - 6.8% on the back of strong fundamentals, calibrated fiscal consolidation, and stable private consumption

It also called for tax breaks on EVs and subsidies on renewable energy to motivate people to switch to low-carbon lifestyles.

The Survey also highlighted the need for enhanced deregulation for MSMEs, which contribute 30% to India's GDP and 40% to our exports.

Meanwhile, the stock markets will remain open tomorrow for a special trading session. This is the third time in a decade that trading was open on Saturday; the markets were operational on Budget days in 2015 and 2020.

You can keep an eye on YourStory’s full coverage of all the announcements made in Budget 2025, and how those measures affect you, here.

In today’s newsletter, we will talk about 

• The state of India’s economy
• Ola Electric’s Gen 3 scooters
• Understanding the FIITJEE fallout

Here’s your trivia for today: Who holds the record for delivering the most words in a Budget speech?

Union Budget

The state of India’s economy

The Economic Survey for 2024-25 called for a sensitive approach to building institutions to deal with the potential impact of AI on jobs in India’s labour-intensive economy. The primary challenge is job creation, as India would have to create an average of 78.5 lakh jobs annually in the non-farm sector by 2030 to cater to the rising workforce, as highlighted in the 2023-24 Survey as well.

The Survey pointed out, “Protracted labour displacement is something that a labour-surplus country like India cannot afford.”

Nation-building:

• India needs to utilise the window of opportunity to build robust institutions. “This can then help tilt the scale towards the benefits, bringing a balance to the ‘cost-benefit’ aspect in a labour-driven, services-dependent economy like India,” it said.
• The Survey also said the growing presence of global capability centres (GCCs) will reshape the corporate landscape in India and influence global business dynamics. The number of GCCs in India has grown from about 1,430 in FY19 to over 1,700 in FY24, employing nearly 1.9 million professionals.
• The female labour force participation rate has shown a significant rise—from 23.3% in 2017-18 to 41.7% in 2023-24. It has been driven largely by rural women entering the workforce​.

Top Funding Deals of the Week

Startup: Leap

Amount: $65M

Round: Series E

Startup: Captain Fresh

Amount: Rs 250 Cr

Round: Pre-IPO

Startup: InsuranceDekho

Amount: $14.1M

Round: Fresh

Electric Vehicle

Ola Electric’s Gen 3 scooters

Ola Electric unveiled its Gen 3 electric scooters in Bengaluru. The S series scooters are priced starting at Rs 79,999 for the S1X and go up to Rs 1,69,999 for its new S1 Pro+. 

Meanwhile, Founder and CEO Bhavish Aggarwal emphasised the company’s focus on the safety of its customers, after Ola Electric came under scrutiny post a series of fire incidents involving its scooters. 

Key takeaways:

• The major changes throughout the generations include a 53% increase in peak power from 8.5 kW motor in Gen 1 to 11 kW in Gen 2 to 13 kW motor in Gen 3. It also sees a 10% increase in energy efficiency from 70% in Gen 1 to 76% in Gen 2 to 80% now in Gen 3.
• Ola Electric’s new line of scooters comes with the company’s Bharat 4680 cell and battery pack. These have better temperature thresholds compared to the previous battery packs that were imported.
• The company also recaptured its lead in the electric two-wheelers market in January, after the company doubled down on expanding its store footprint last month.

Explainer

Understanding the FIITJEE fallout

In the week leading up to January 24, 2025, FIITJEE coaching centres began shutting down across North India. The closures started around January 17-23, affecting centres in Delhi-NCR, Uttar Pradesh, Madhya Pradesh, and Bihar, with a few more shutdowns occurring subsequently. 

Industry experts YourStory spoke to note that this incident has highlighted weaknesses in the coaching industry, particularly for institutes that depend on a decentralised model. 

All the tea:

• Media reports indicate that FIITJEE is facing financial challenges, including salary delays, which may have led to staff departures and operational disruptions. The management asserts this situation is a “criminal conspiracy” orchestrated by individuals with vested interests.
• The sudden closures have disrupted students’ preparation for competitive exams. Many parents who had paid significant fees—ranging from a few thousand rupees to several lakhs—are now seeking refunds or alternative solutions.
• While FIITJEE maintains the closures are due to mismanagement by certain CMPs, parents argue the institute should have had safeguards in place to prevent such disruptions.

News & updates

• Launch: Google took the low-key route for the launch of its next-gen flagship AI model, Gemini 2.0 Pro Experimental—the successor to the Gemini 1.5 Pro model. Instead of a splashy announcement, it revealed the model in a changelog for its Gemini chatbot app, as the tech world remains fixated on Chinese AI startup DeepSeek.
• Inject: The RBI’s $5 billion 6-month dollar/rupee buy-sell swap auction was oversubscribed 5X on Friday, with the central bank receiving bids totalling $25.59 billion from 253 participants. The swap will infuse rupee liquidity into the banking system.
• Tariffs: America’s two biggest trading partners, Canada and Mexico, are bracing for Donald Trump to impose sweeping tariffs on their exports. Officials in Ottawa and Mexico City have drawn up plans to retaliate against Washington with tariffs of their own, raising the prospect of a damaging trade war. 

Who holds the record for delivering the most words in a Budget speech?

Answer: Manmohan Singh. He delivered an 18,650-word speech in 1991 when he was the finance minister.

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