#CNBCTV18Rewind | A Lookback At The Top Newsmakers Of 2024 | Special Show

Introduction

2024 marked a pivotal year in global elections, where nearly half of the world’s population participated, with elections taking place in around 70 countries. It was a challenging year for incumbents, with 40 leaders being ousted from power in Western democracies since the COVID-19 pandemic began. In India, the National Democratic Alliance (NDA) retained power but with a reduced majority. Over the next 30 minutes, we take a retrospective look at the significant events that shaped India's political and economic landscape throughout the year.

Heightened Regulatory Scrutiny in Indian Finance

The Indian finance sector bore witness to intense regulatory scrutiny. The Reserve Bank of India (RBI) undertook unprecedented actions against numerous financial entities, signifying a commitment to regulatory compliance and consumer safety. In early 2024, the RBI barred Paytm Payments Bank from onboarding new customers and accepting deposits due to repeated non-compliance with KYC norms.

Following this, IIFL Finance and JM Financial faced restrictions in March for violations related to gold valuation and governance lapses. The crackdown continued with actions against multiple institutions, including a halt on onboarding new customers at Mahindra Bank due to weak IT systems, and restrictions on lending from various microfinance institutions due to exorbitant interest rates.

The RBI's stringent actions garnered mixed responses, with some praising its commitment to consumer protection, while critics labeled it overly punitive, cautioning that such measures could stifle innovation in the fintech sector. Nevertheless, the RBI's stance underscores the importance of compliance, with the goal of instilling a culture of good corporate governance across India’s financial landscape.

Challenges in the Steel Industry

The Indian steel industry faced significant challenges in 2024, driven primarily by excess steel inventory from China as a result of weak domestic demand. This surplus pressured steel prices globally, prompting domestic manufacturers to advocate for increased import duties on Chinese steel.

While India’s steel demand has surged by 10% annually in recent years, Chinese demand has declined by 13%. As a result, Indian steel producers urged the government to impose a safeguard duty on imports to protect local industries. Despite the challenges posed by China's exports, experts suggest potential recovery in 2025 as prices may stabilize and domestic producers shift their focus to value addition and cost efficiencies.

The Rise of Nuclear Energy

As the global economy pivots away from fossil fuels, nuclear energy emerged as a focal point in 2024, underscored by the world’s first nuclear energy summit in Brussels. Over 20 nations committed to tripling nuclear power capacity by 2050, with projections indicating that nuclear generation could reach record highs by 2025.

Nuclear power is gaining traction due to its low carbon emissions and efficient land use. However, significant investments are needed, with the International Atomic Energy Agency calling for annual investments to increase from $ 50 billion to $ 125 billion by 2025 to meet capacity goals.

India aims to increase nuclear energy generation by 70% by 2029, with plans for 21 new reactors, reflecting an optimistic outlook for clean energy in the coming years.

The Quick Commerce Boom

2024 will also be remembered for the explosive growth of quick commerce, with players like Blinkit, Zepto, and Instamart captivating consumers by offering deliveries in under 10 minutes. Blinkit alone delivered over 93 million orders in the second quarter, while Zepto secured its position as the highest-funded startup in India, raising $ 1.35 billion in the year.

With escalating consumer demand for immediate gratification, quick commerce has reshaped how goods are delivered, prompting existing ecommerce giants to enter the space and adapt their services. However, profitability remains a challenge, as most quick commerce companies are yet to achieve sustainable profit margins.

As we anticipate the future, 2025 may reveal which quick commerce companies will endure amid fierce competition, evolving consumer expectations, and the ongoing pressures of profitability.

As we conclude this retrospective, we acknowledge the events of 2024 and look forward to the possibilities that the new year will bring.

Keywords

2024, elections, incumbents, regulatory scrutiny, Indian finance, Reserve Bank of India, KYC norms, steel industry, nuclear energy, quick commerce, Blinkit, Zepto.

FAQ

Q: What major events shaped India in 2024?
A: Key events included heightened regulatory scrutiny in the financial sector, challenges in the steel industry, the rise of nuclear energy, and the boom of quick commerce.

Q: What actions did the Reserve Bank of India take in 2024?
A: The RBI took unprecedented actions against several financial entities, including imposing restrictions on Paytm Payments Bank and various microfinance institutions due to compliance failures.

Q: How did the steel industry fare in 2024?
A: The Indian steel industry faced pressure from increased imports, particularly from China. Domestic manufacturers requested the government to impose duties to safeguard local production.

Q: What is the outlook for nuclear energy in India?
A: India plans to increase its nuclear power generation by 70% by 2029, with ambitious goals and new reactor initiatives underway.

Q: What role did quick commerce play in 2024?
A: Quick commerce surged, with companies like Blinkit and Zepto delivering goods in under 10 minutes, significantly changing consumer expectations and the landscape of delivery services.