Why the BJP’s fortunes in Tamil Nadu may change

Top of the Morning

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, April 18, 2024. My name is Nelson John. Let's get started:

The ruling Bharatiya Janata Party released its manifesto last week. While most of the promises are pretty boilerplate for an incumbent party, the civil aviation sector gets some outsized attention. These promises include setting up of a commercial aircraft manufacturing centre, and turning India into an aviation hub. That would mean convincing foreign airlines to have layovers in India, en route to global destinations. Mint Snapview argues that some of these promises might be foolhardy and mistimed. India needs to make a lot of advancements across the board for this to happen. Economic feasibility and logistical issues are plenty in India, which prove to be detrimental to any such projects. For the BJP to make good on these promises, these challenges need to be addressed first — lest they end up like most hollow poll promises.

The BJP has another, Tamil Nadu-sized challenge for the upcoming elections. Five years ago, Prime Minister Narendra Modi was viewed in the southern state as anti-Tamil. Contrast that to his campaigns in the region today, which are attended by no less than 10,000 voters. BJP is doing its best to garner support from the Dravidian heartland. They are targeting young and first-time voters, writes N. Madhavan. He writes that for the first time in decades, a national party is now a serious challenger in the electoral landscape. Madhavan writes about the history of Tamil Nadu's rich history of regional parties, the politicking, and how the BJP fits in the picture in 2024. In the last couple of months, Modi has visited the state eight times — and the campaigning is making a stark difference among voters, Madhavan reports.

At 83.5, the rupee has reached a new low against the US dollar. While this makes exports more lucrative, imports now turn dearer. Geopolitical instability across Europe and the Middle East has lowered the prospect of the US Federal Reserve cutting its interest rates. Since India is a net importer of goods, a falling currency is not a good sign, writes Sumant Banerji. However, fret not: the Reserve Bank of India is likely to intervene to arrest any further sliding of the rupee, Sumant adds.

In the 1960s, the space race between the US and the Soviet Union was in full flow. That led to a lot of advancements in the sector. In the present day, startups and private companies are now taking further strides towards outer space. Elon Musk's SpaceX has taken full advantage of that opportunity, making multiple efforts to launch their own rockets into space. Musk is visiting India soon, and some Indian aerospace startups have the opportunity to pick his brain about SpaceX. Shouvik Das reports that at least three Indian startups working in the space sector have been invited to meet Musk on 22 April. The meeting is not likely to provide business opportunities and is more to show Musk the strides that India has made in the sector, Shouvik writes.

Does your investment portfolio include Bitcoin, ethereum, or dogecoins? Don't worry if not — these are all different types of crypto currencies. If you've heard of them and still haven't invested, it's understandable: since they are decentralised, crypto currencies are volatile by nature. Take bitcoin for example: it reached its lifetime high of 73,780 dollars last month, but has fallen 7 percent since then. Crypto, often referred to as ‘the Wild West of investing, makes for a very interesting option, and some Indians aren't afraid of dipping their toes despite the risks. Mint money's Anil Poste speaks to H-O-D-L-ers, who are holding on for dear life and investing more money into crypto, despite the roller coaster valuations, tax concerns, and regulatory uncertainties.

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Show notes:

The one thing that stands out in BJP’s manifesto is aviation. Can promises fly?

In Tamil Nadu, BJP’s final frontier, a high-stakes battle

How the rupee’s fall can impact the economy and what RBI can do about it

Can Indian space startups wow Musk with indigenous tech?

What drives crypto HODLers despite volatility, uncertain regulations, high taxes