Top business stories on 6th September in a capsule

Income Inequality in India highest since 1922

Lucas Chancel and Thomas Piketty, renowned economists in their latest report on Wednesday have stated that income inequality in India is highest since 1922- the year in which Income Tax was introduced. The report suggests that Indian income inequality now stands at 22 percent as against the earlier 6 percent in the early 1980s period. In India, the top 1% billionaires in India are responsible for 29% of the economy’s growth, whereas the bottom 50% account for merely 11% of the company’s economic growth. In the 1980’s this band was responsible for 28% of the country’s growth. 

Sensex, Nifty close lower as tensions mount over North Korea

The Indian benchmark indices lost for the second time in the week on Wednesday as market sentiment was hit due to geopolitical tensions between the US and North Korea. The Sensex fell almost 148 points to 31,661 and the Nifty lost 0.36% and closed at 9,916, after hitting a low of 9,882 in intraday trade. FMCG, select technology, healthcare and banks stocks dragged the indices even down. The rupee too, hit a three-week low against the dollar and stood at 64.26 per dollar.

169 McDonalds stores shut in North and East India; Around 10,000 jobs affected

Fast food company Mcdonalds on Wednesday shut 169 stores in the North and Eastern part of India, which would affect more around 10,000 jobs. The company claimed that there was a breach of contract and payment default. Mcdonalds operates through two franchises in India, out of which Connaught Plaza Restaurants Ltd’s franchise partner Vikram Bakshi owns 50% stake. Meanwhile, Vikram Bakshi filed a fresh application against the company s. The National company Law tribunal has issued a show-cause notice to Mcdonalds for not following an earlier order that it should not interfere in the running of the outlets on Tuesday.

Sometimes, a RBI governor has to say no: Raghuram Rajan

Raghuram Rajan on Wednesday spoke about being the RBI governor during the launch of his book - I do what I do, and said that sometimes, a central Bank chief has to say no to the government. He also added that sometimes people make the mistake of seeing a RBI governor as a bureaucrat working for the government. Earlier, he has also stated that he did not approve of demonetisation and had warned the government that the short-term benefits of the move would outweigh the long-term benefits.

India’s petrol and diesel prices among south- Asia’s costliest

India is the costliest country when it comes to Petrol prices in South-Asia, Business Standard reports.  Petrol price of rupees 32.19 a litre in Malaysia was less than half what prevailed in India last Friday. Our other neighbours too, have a subsequently low price when it comes to fuels. Petrol and diesel were selling at rupees 69.26 and rupees 57.13 a litre in India, 40% more for petrol and 24% more than Malaysia. With the new policy to review prices of these fuels in India every day, petrol prices rose 7 rupees in a month.