NEW DELHI: The year 2023 witnessed several events that shook the corporate as well as policy space. Many of those left a lasting impact on the economy. Whether it was US short-seller Hindenburg’s damning report on the Adani group, or the government’s decision to withdraw Rs 2,000 denomination notes, these events created an upheaval in the domestic market. We list a few below:
Adani-Hindenburg Saga
Gautam Adani-led Adani Group faced a setback in 2023 when US-based short seller Hindenburg Research in a report published on January 24 accused the conglomerate of stock market manipulation, called the share prices of its 7 listed firms ‘overvalued’, questioned the role of close family members among other serious allegations. Adani Group dismissed the allegations. However, the report caused a stock rout in the 10 listed Adani stocks and at its peak wiped out more than $120 billion from the combined market capitalisation. The aftermath of the report was the formation of a Supreme Court appointment committee which so far finds no wrongdoing by Adani. Adani stocks made a remarkable recovery in the last few months.
RBI withdraws Rs 2000 banknotes from circulation
The RBI in May this year announced to withdraw Rs 2,000 denomination banknotes from circulation. The announcement shocked the people reminding them of the hardships they had to face when the government announced demonetisation in November 2016 and decided to scrap Rs 500 and Rs 1,000 currency notes overnight. However, this time there was no such chaos as the Rs 2,000 banknote remained legal tender.
Online gaming firms hit GST wall
Introduction of a blanket 28% GST on all real-money online gaming dealt a severe blow to the industry’s growth prospects. Previously, online games of skill and chance were subject to different tax rates, but the GST Council decided to unify them under the higher tax slab from October 1, 2023. This abrupt change disrupted the gaming industry, pushing many companies to contemplate downsiing or relocating to more favourable environments.
The Collapse of Go First
In a big setback for India’s aviation industry, GoFirst (formerly GoAir) stopped flying early in May and filed for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), Delhi. It became the second prominent airline to collapse in recent years after Jet Airways.
Telecommunications Bill
The government passed the much-anticipated Telecommunications Bill of 2023. The bill aims to replace three British-era bills: the Indian Telegraph Act, 1885; the Indian Wireless Telegraphy Act, 1933; and the Telegraph Wires Act, 1950. The Bill officially became an Act last week after receiving assent from the president, following its passage in parliament.