THE MONOCLE: Budget Implications & High Stake Sport
Hello Ashoka!
The semester’s in full swing, and the pace is already picking up! We hope you’re settling into your courses and gearing up for what promises to be an eventful Spring 2025.
We bring you the second edition of The Monocle in this semester. Here’s a roundup of what we found interesting recently - hope you enjoy reading it and stay tuned for more.
Tax Reforms from the 2025- 26 Budget and its Impact.
The 2025-26 Union Budget introduces transformative tax reforms aimed at simplifying the tax system and alleviating the burden on middle-class taxpayers. A significant initiative is the overhaul of the six-decade-old income tax law, emphasizing fairness and simplicity under the principle of "trust first, scrutinize later." This reform is expected to enhance taxpayer confidence and compliance.
The revised income tax slabs under the new regime offer substantial relief. The annual income exemption limit is now set at ₹12 lakh, with salaried taxpayers benefiting from an adjusted threshold of ₹12.75 lakh, accounting for the standard deduction. This restructuring results in significant tax savings across various income levels, thereby increasing disposable income. For instance, individuals earning ₹12 lakh will see a benefit of ₹80,000 in tax savings, while those earning ₹18 lakh and ₹25 lakh will benefit from tax savings of ₹70,000 and ₹1.10 lakh, respectively.
With more disposable income, individuals are likely to allocate funds toward both consumption and savings. Increased consumption can drive demand in sectors such as consumer goods, automobiles, and real estate. For instance, the automotive sector may experience heightened demand as consumers are more inclined to purchase vehicles. Simultaneously, higher disposable income allows individuals to bolster their savings, leading to greater financial security for households and providing capital for investments in various financial instruments, contributing to economic growth.
The anticipated rise in consumption is expected to have a multiplier effect on the economy. As demand for goods and services increases, businesses may expand operations, leading to job creation and further boosting economic activity. The Reserve Bank of India's recent decision to cut the repo rate by 25 basis points to 6.25% complements these tax measures by making borrowing more affordable, encouraging both consumer spending and business investments.
In summary, the 2025-26 tax reforms are poised to benefit individuals by reducing tax liabilities and providing greater financial flexibility. Collectively, these measures are expected to bolster economic growth through increased consumption and investment, contributing to a more robust and dynamic economy.
By Simran Kothari (UG2023)
IPL Owners Turn Westwards - Expand Cricket Portfolio with Stakes in The Hundred
Owners of several Indian Premier League (IPL) teams have now raked up stakes in The Hundred which is England’s version of the IPL cricket tournament that follows a franchise model.
Mumbai Indians (MI), owned by the Ambanis, acquired 49% ownership of the Oval Invincibles for £60Mn (around 650 Crores). This adds to their sprawling portfolio of cricket teams spanning the US (MI New York), South Africa (MI Cape Town), UAE (MI Emirates), and the women's premier league in India. This latest purchase further reinforces their position as cricket's most diversified and influential franchise owners.
Sunrisers Hyderabad (SRH), of the Sun group, clinched complete control of the Northern Superchargers for £100Mn (around 1090 Crores). This is SRH’s second overseas investment after Sunrisers Eastern Cape in South Africa.
Lucknow Supergiants (LSG), of the RPSG group, secured a 49% stake in Manchester Originals for £116Mn (around 1260 Crores).This is their first international expansion.
Indian business houses investing in English cricket reflects a broader trend of cross-border cricket investments, wherein these teams leverage their IPL success to establish a global footprint.
This fresh infusion of cash comes at a crucial time for English cricket, which has been struggling with financial woes and declined viewership. Ironically enough, Indian capital could potentially catalyze much needed changes in England’s waning cricket structure.
While the teams are unlikely to make substantial returns in the short term, they point to the owners’ vast personal wealth and signal their interest in emboldening their sports architecture. On top of earning them public clout, this can potentially create synergies in brand loyalty, player retention, broadcast rights negotiations, marketing opportunities etc.
Will The IPL riches seep through to the English counties as well? Only time will tell.
By Rohit Muthiah (UG25)
Marvel and the Downey Gamble
Marvel Studios has had a difficult run since the pandemic especially compared to Marvel’s previous highs, with movies such as ‘The Marvels’ and ‘Ant-Man and the Wasp: Quantumania’ losing money at the box office and most of their other films underperforming both financially and critically. Their television shows, housed on ‘Disney Plus’ have succumbed to generally low viewership and have contributed to a pullback in the number of planned projects and shuffling around of release dates of completed projects. Their two outright successes, namely ‘Spider-Man: No Way Home’ and ‘Deadpool and Wolverine’ both have main hooks that rely on a nostalgia play which is a limited well to dip into.
However, Marvel threw the gauntlet down during San Diego Comic Con 2025 by announcing the return of Robert Downey Jr. as Dr. Doom and the new big villain of Marvel’s ‘Multiverse Saga’ after Kang actor Jonathan Majors was accused of sexual assault. Downey’s major big screen return to the MCU after his emotional farewell to his career defining role as Iron Man in 2019’s ‘Avengers: Endgame’ is set to unfold in 2026’s ‘Avengers: Doomsday’ with Marvel hoping that audiences will be excited to see the franchise’s most popular hero take a stab at playing one of comic book’s most iconic villains.
The move proved to be polarising but Marvel got what they wanted - people talking about their movies and an emotional hook for audiences which has waned since Downey’s departure. The movie will only resonate however if Marvel builds on its small (only one movie as compared to their usual three-four) but successful 2024 with successful cinematic outings for its 2025 slate ‘Captain America: Brave New World’, ‘Thunderbolts*’, and ‘Fantastic Four: First Steps’. The performance of these movies could validate or implode the biggest financial bets in the movie industry ever.
By Ishan Yellurkar (ASP25)
France Leads Global AI Discussions with AI Action Summit
France is taking the lead in influencing the global artificial intelligence discourse at its "AI Action Summit," which will be held on February 10 and 11, 2025. The first in-person global AI gathering since 2023 is being held at the Élysée Palace and is being led by special envoy Anne Bouverot. With an emphasis on labor market disruption, environmental effect, and AI governance, it seeks to work on a variety of concerns regarding AI.
A primary objective of the summit is the establishment of a "Coalition for Sustainable AI”,ensuring that AI development is both environmentally responsible and beneficial across global economies. The event will bring together tech leaders from companies such as Open AI, Google and Meta, along with government officials and policymakers from the European Commission.
Concerns regarding AI’s potential to displace jobs and its carbon footprint remain at an all time high. However, Spending on AI has surged with major organisations such as Microsoft, Google and Amazon investing over $215 billion in AI infrastructure in 2025 already - a 45% increase over last year. Following the EU's AI Act, which establishes standards for the ethical application of AI, France's leadership in important talks on these subjects indicates Europe's increasing role in AI regulation.
As AI continues to transform industries worldwide, the AI Action Summit will play an essential role in defining global standards and fostering innovation while ensuring responsible development.
The AI Action Summit will play an essential role in supporting innovation and defining global standards - all while ensuring responsible development as AI continues to transform industries across the world. On a brighter note, India’s Prime Minister Narendra Modi will be co-chairing this summit with the French President.
By Varshith Reddy (UG2024)
NEWLY PROPOSED USA SOVEREIGN WEALTH FUND: PROS & CONS
The recently elected Trump administration has proposed an idea for a central government-run sovereign wealth fund to invest in “great national endeavours” such as infrastructure projects including highways and airports, manufacturing and medical research. A sovereign wealth fund is a state-owned investment fund that invests in real and financial assets. Most SWFs are funded by revenues from commodity exports or from foreign exchange reserves held by the central bank.
The long term plans for the United States SWF have been announced with potential acquisitions using this SWF such as taking control of TikTok, thus preventing its ban within the country. The newly nominated United States Secretary of the Treasury Scott Bessent characterized the move by touting it as ‘putting the asset side of the US balance sheet to work’. But there have been instances with the mismanagement of public funds held under SWFs by politicians or high level officials in the government. So the only conclusion that can be reached is to simply wait and watch its efficacy. The question that comes to mind is will it be another avenue for dollar leakage and unsubstantiated expenditure of public money or will it help the United States Government reach newer heights?
By Madhav Wadhwani (UG 2024)
Thank you for reading!