Revenue Secretary Sanjay Malhotra to be the next RBI governor

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, December 9, 2024. This is Nelson John, let's get started.

Sanjay Malhotra, a seasoned bureaucrat from the Rajasthan cadre, is set to steer the RBI following his appointment as the new governor. His tenure starts just as Shaktikanta Das wraps up his six-year term. Malhotra, known for his balanced approach to policymaking and administration, has been instrumental in spearheading significant tax reforms as the revenue secretary since 2022. His efforts included simplifying income tax processes, reducing litigation, and combating fake GST registrations. His experience extends beyond finance as he has led initiatives in power, mining, and IT sectors. Notably, as CMD of REC Ltd, he navigated through a power crisis in 2021, showcasing his ability to manage challenging scenarios. Now, as he transitions to the RBI, Malhotra brings a deep understanding of fiscal matters and a track record of advocating for economic growth over mere revenue collection. This change comes at a critical time, with India facing persistent inflation challenges and global economic shifts.

India is rolling out a new scheme called 'One Nation, One Subscription' (ONOS) to provide free access to over 13,000 international scientific journals to students and researchers across the country. This move, set to start next year, involves a substantial investment of about ₹6,000 crore over three years, making costly academic resources widely accessible without charge. Managed by the newly established Information and Library Network (INFLIBNET) under the UGC, the scheme will include top publishers like Wiley, Elsevier, and Springer Nature, covering subjects from health to materials science. This initiative not only aims to bridge the gap in academic resources, especially benefiting those in tier-2 and tier-3 cities, but also addresses the issue of academic piracy. Soumya Gupta explains the initiative in today’s Primer. 

India is gearing up to boost its trade with BRICS countries by rolling out customs perks for trusted merchants through mutual recognition agreements, or MRAs. This move will streamline customs clearances, meaning quicker processes and fewer headaches for traders on both sides. Already set up with Russia, India's next stops include South Africa and Brazil, with China potentially in line too. These agreements are super handy for smoothing out trade bumps. They mean faster customs for approved businesses, less time spent on inspections, and quicker tax refunds. Gireesh Chandra Prasad reports on the changes, which are about making trading across borders as swift as possible, helping Indian goods become more competitive in these markets.

The Delhi High Court recently addressed a trademark dispute between Mahindra Electric Automobile and Indigo’s parent InterGlobe Aviation. Mahindra agreed not to use the "6E" trademark for its upcoming electric car, the BE 6, during the ongoing lawsuit filed by IndiGo, opting to rename it from BE 6E to BE 6. IndiGo has refrained from seeking an interim injunction against Mahindra in response to this undertaking. IndiGo alleges that the "6E" trademark is central to its brand identity. The airlines registered "6E" under various classes related to advertising, transportation, and promotional services. On the other hand, Mahindra, which had initially secured trademark approval for "BE 6E," argues that its mark is distinct given its classification in the motor vehicle category and that it does not conflict with IndiGo’s airline services. Mahindra stresses that "BE" stands for its "Born Electric" series, and it plans to contest IndiGo's claims vigorously.

Home decor startup Livspace, based in Bengaluru, has been grappling with some customer service challenges, with a number of customers voicing their dissatisfaction online. Despite this, the company reports that a majority of their customers still end up having a positive experience. Recognizing the issues, Livspace is actively working on improvements, particularly since quality concerns can significantly impact its reputation, especially when it comes to big-ticket investments like home interiors. The company last raised substantial funding in 2022, amounting to $180 million, which set high expectations given the company’s valuation at the time. To better manage costs and control quality, Livspace has shifted its strategy. They've moved away from using outsourced designers, bringing nearly all design work in-house. This not only helps maintain quality but has also allowed them to cut down on heavy discounts they were offering previously.