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How to network without being inauthentic

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This is an audio transcript of the Working It podcast episode: ‘How to network without being inauthentic

Alison Fragale
Strategic and authentic are not opposites. They can go together. And what I’m hearing in Natasha’s story is I love to run. That’s authentic. And I’m returning from maternity leave. I have to think about re-engaging. And so I’m gonna be strategic in doing that. But again, not in a fake way, doing something I really like.

[MUSIC PLAYING]

Isabel Berwick
Hello and welcome to Working It from the Financial Times. I’m Isabel Berwick.

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[MUSIC PLAYING]

Professional networking can be pretty uncomfortable. Approaching senior colleagues or strangers with an agenda is so transparent. And a lot of us find it a bit daunting. In fact, I used to find it so difficult. But I spent a lot of time at drinks events, not networking at all, but hiding in the ladies bathroom. Bonding with colleagues over genuine shared interests is a different story. It’s a great way to make yourself known to people at all levels and quite possibly boost your career as a result. Lots of workplaces, organised sports teams, choirs or other societies to help colleagues bond. How can we use these extracurricular activities to make connections we might not otherwise make? And how can we socialise naturally but strategically with colleagues? To find out, I’m speaking to Alison Fragale, an organisational behaviour professor at the University of North Carolina at Chapel Hill. Alison, hello.

Alison Fragale
Hello.

Isabel Berwick
Alison’s new book, Likeable Badass, is a science-backed guide to winning respect, power and influence. I’m also speaking to Natasha Wood, head of strategy for the FT’s events business FT Live. Natasha, welcome.

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Natasha Wood
Hello. Thank you for having me.

Isabel Berwick
Natasha is gonna tell us how sport helped her meet crucial people at a pivotal moment in her career. Let’s get started. Allison, in your book Likeable Badass, you talk about the relationship between power and status. Could you tell us a bit about how you define those terms and what the relationship is between them?

Alison Fragale
So status is how much other people respect and regard us. So it’s a judgement other people make about us. Power is resources we control like money, authority, the ability to reward and punish. And those are both fundamental human needs. We care about them greatly. Life is better with them than without them. And the relationship between them is that status being highly regarded and respected is a prerequisite or a gateway for being able to have other people give us resources, give us power. So what we often see is that having status ends up making it easier for us to get and hold power.

Isabel Berwick
If you have power but you haven’t bothered to achieve status on the way up, is that gonna be tricky for you at the top?

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Alison Fragale
Turns out it’s really problematic. So not only is power harder to get without status, if somehow you do, it’s actually really hard to use it effectively. We don’t really like resources being controlled by people we don’t respect and therefore we don’t treat them very well. They’re often the recipients of a lot of mistreatment. Things like having their judgement questioned, being interrupted, having their ideas ignored, you know, even more kind of aggressive behaviours that sort of communicate. I really don’t think you should have this control. And it turns out it’s a really miserable existence.

Isabel Berwick
I can see exactly what you mean, but I’m really interested in how we can grow our status through internal mechanisms that are not about promotion, things like socialising with colleagues or sport. You know what that can do for your standing. And I was gonna bring in Natasha here because you recently participated in a relay race organised by the FT and our parent company Nikkei. Could you tell us about that and why you did it?

Natasha Wood
Yeah, it’s a great question. First of all, I’m a passionate runner, so when the invitation came around to participate in an ekiden, which is a Japanese form of relay race, it naturally spoke to me. But I had recently returned from maternity leave and I was very conscious of my status or lack thereof because I had not been at work for 10 months. And I thought, oh this will be a great opportunity. It’s sponsored by a board member, John Ridding our CEO was very much instrumental in the FT sponsorship of it. And so it was a fairly calculated play to apply for a place because I knew it would help build those connections and build my profile as I look to re-establish some level of status following a career break.

Isabel Berwick
And how do you feel afterwards?

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Natasha Wood
Well, it certainly achieved my aims. I made some connections internally at the FT. We continue to go for running sessions at lunchtime. That means that I’m having those conversations that I wouldn’t necessarily be having thanks to that sporting platform.

Isabel Berwick
Alison, how do you rate Natasha’s approach? Is that a status-building activity?

Alison Fragale
I love it. It’s 10 out of 10. So the two things that I’m hearing there that I really emphasise with people is, one, strategic and authentic are not opposites. They can go together. And what I’m hearing in Natasha’s story is I love to run. That’s authentic. And I’m returning from maternity leave, I have to think about re-engaging and so I’m gonna be strategic in doing that. But again, not in a fake way, doing something I really like. That’s one thing. And the second one is just the power of similarity. So I’m a psychologist and we look across all of psychology. The greatest basis of liking and attraction that psychology has ever documented is similarity. This adage birds of a feather flock together, that’s true. So when you have a shared similarity, it is the beginning of a relationship. It’s easy to build a relationship when someone sees themself in you. And most of the similarities that draws together at work don’t have to be about work at all. So anything. Oh, you have three kids. I have three kids. You spell your name with one L, so do I. All kinds of silly things we see in the research lead people to have a sense of connection. And so when you find those things, it’s very powerful.

Isabel Berwick
In workplaces that are increasingly diverse Alison, what kinds of things are similarities? Because I suppose in the olden days, it used to be white men feeling similar to other white men, didn’t it?

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Alison Fragale
Well, there’s no doubt that we can draw similarity from things we can easily observe without even opening our mouth. And that’s why I do a lot of work advocating for women. And I say, when you look different than everyone else around you and you don’t do anything about it, then it’s logical that when people look at you, they simply assume that you are different. But between any two people, I guarantee you if you start to chat, you are gonna find a real genuine similarity. And again, the beauty of the research in psychology is that these similarities can be so trivial. You know, you order the same thing at Starbucks. I do. It truly doesn’t matter as soon as someone has that. Wait, that’s me too. You instantly light up. So the task is for everybody, but particularly if you look different than people around you go searching for those points of connection because they will trump anything that is visible. But if they’re not brought to the surface, then people will simply assume difference.

Isabel Berwick
And Natasha I know you find traditional networking slightly icky, we can call it perhaps. What do you think’s different when you socialise or play sport with colleagues?

Natasha Wood
It’s a great leveller, the sporting world activities that we choose to do that aren’t related to our day jobs. Work status goes out of the window and it’s just about engaging on a very, very personal level. Sport is about performance. It’s about testing your own individual limits and endurance, certainly within the running world. And that is an egalitarian world that makes it very easy to connect with people, regardless of whether the CEO or the latest intern. And making those connections that way, rather than I need something you have it for me means that those connections are a much more positive and likely to endure.

Isabel Berwick
Alison, how does that kind of bonding translate to the professional world? Are there tangible professional benefits we can reap from something like sport?

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Alison Fragale
Absolutely. People cannot respect you if they don’t know you exist. So if we’re in sport or any other activity that’s outside of work, it gives people a chance to know we exist, to find some similarities with us and to start to like us a bit and to feel familiar. And familiar things are liked more. And then how can you start to add value to their life, not just in the personal domain, but the professional?

So I was thinking about a woman I met. We were just sitting next to each other working at shared tables at a co-working space that we both belonged to. And I didn’t know her and I struck up a short conversation with her, learned a little bit about what she did, and then connected with her on LinkedIn, because that’s what I do. And then no sooner I was back at my desk at home and an email comes through and it’s about a media that was looking for some people to write articles on different topics. And one of the topics was about mindfulness at work, which was her area. So I looked her up on LinkedIn. I had met her only the afternoon prior and I sent her this and I said, This sounds like it’s up your alley. And she wrote, ended up getting selected, wrote the article, and she’s been a great supporter of mine ever since.

And so it was that initial conversation that was just chit chat. But when I learned something about her, I kept my eyes open. I didn’t go out of my way that day to say, how can I make her life better? But when something crossed my desk and I thought of her, it took the extra minute to say, this could help you. And that was a simple thing the day, the day we met and that was years ago. And ever since then, she’s been very loyal to me and looked for opportunities to try to give back to me as well. So that social piece gives you the information. What’s this person about? And then when you’re going through your day, you can find those opportunities to think about how can I add a little bit of value?

Isabel Berwick
So would you say that achieving status is also about amplifying others? I think in your book you talk about, you know, supporting others. How can we best make that work?

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Alison Fragale
Well, people respecting us, it’s not a random judgment. It’s based on two things that we pay attention to. How capable are you? Are you good at what you do? If I give you tasks, can you get them done well? And do you care about people other than yourself? Those are the two things that lead us to respect people. And if you can show up as both, hey, I have interesting knowledge, skills, attributes to share and I’m gonna do that for your benefit. That’s what gets you respect. And so what I help people think about is how can you do that in easy ways? There’s a lot of high effort ways you can do that.

But if you’re gonna build status really broadly, you can’t invest in every relationship extremely deeply. But a quick introduction, chit chatting with somebody while you’re taking a break, you know, in a co-working space to I’m gonna forward you an email that has a lot of value to you that opens up a door. Five minutes of your time can be a really big investment or value to that particular person. So that’s what I encourage people to look for is once you have the relationship, how can I add value to it in a way that allows me to show up as unique?

Isabel Berwick
That’s great advice. So how can we network with the right people without looking like we’re just schmoozing or being self-promoting? How can you be strategic as well as being authentic?

Alison Fragale
The authentic piece comes with meet lots of people, talk to lots of people. You never know where the next great, I call them other promoter or sponsor the person who’s really gonna advocate for you and build your status. You never know where that person is gonna come from. There’s a woman, Rachel Sheerin, I talk about her a lot every time I give a presentation. I wrote about her in the book. I met her in an airport bar, just chatting to the person next to me and turns out we are in the same line of work. And she has opened a tremendous amount of doors for me. So I would say meet people broadly.

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Switch from this idea of networking to what Heidi Roizen, who’s a well-known venture capitalist and the subject of a oft-taught business school case. She said it’s not networking, it’s a relationship-driven life. And I think that’s right. I’m building relationships with people, and that’s authentic. And then looking for what do you care about so that I can think about as things cross my desk, the easy ways to add value to you. And that’s the kind of stuff that I’m always trying to think about when I meet people is, OK, who are you and how could I think about something that would make your life better?

One simple one that I offer to everybody is the idea of making an introduction. And when I make that introduction, I’m making two people’s lives better, not just one, if it’s a mutual benefit. And it’s a very easy thing to do. And a lot of those introductions have delivered a lot of value to people and in turn they feel very loyal to me for making them. So that’s one of the things we can start to think about is just meet people, listen to people, and then think about what can I do to add a little bit of value to their life. It’s very authentic, but it’s also strategic because it ends up being reciprocated.

Isabel Berwick
Do you think, Alison, that socialising with our colleagues has become more valuable since the pandemic? Now we’re in a hybrid world. Has that changed?

Alison Fragale
Well, I think it’s changed a little bit, but I was . . . we’ve had smartphones for a while. We’ve been doing things behind screens for a very long time. And so I see it not as like a cliff in the evolution of our social lives, but more just like a continuation of using technology more and more and more. And I think that you can build relationships behind screens, you can build relationships face to face.

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I think the bigger impediment is not the technology or the medium you’re in, but more the mentality that you have, which is I want to strike a personal connection, I want to meet people, I want to add value to people. And if you start thinking about life that way, you can find ways to do it, even if you’re, you know, fully asynchronous, even if you’re just doing it by email, you can find ways to be able to add value. So I think it’s shift the mentality and not worry so much about what mode we are in because we can build relationships throughout.

Isabel Berwick
So Natasha, you’re an events expert. How can we best approach, you know, perhaps a real-life event? Because we don’t go to that many, but when we do, they’re quite special.

Natasha Wood
It’s really interesting as I was listening to Allison talk, I was thinking to my day job leading strategy for FT Live, the FT’s events business. And the feedback we so often get from our attendees is, I want to be able to network better. What tools do you have available? What app can I use to connect with other people? And the apps are great, but if we’re at an in-person event, the most valuable connections, the ones that are going to last you into the future, are actually the serendipitous conversations that you’re having whilst you’re waiting for a coffee, whoever’s picking up your badge.

So taking Alison’s advice to heart when you’re at a live event, introduce yourself. The person sitting next to you is probably feeling just as uncomfortable as you are in that environment. So be the one. Find out, do they spell Annabelle with two Ls, but you only spell it with one? Have they run a marathon? Believe me, it’s the age-old joke. If they have, you will know. They’ll tell you within five seconds of starting the conversation. But it’s a great way of knocking down those walls and starting to build relationships and who knows where they can go.

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Isabel Berwick
That’s great advice. Alison, What would be your parting advice to listeners?

Alison Fragale
Just be yourself in the most strategic way possible. So start talking about what you love and what you do and have the mentality of How can I make others lives better? If you do that, then you’re gonna do 90% of the work that it takes to build sense.

Isabel Berwick
And Natasha, what’s your advice?

Natasha Wood
Find your passion and pursue it. Coming back to sport, there are so many connections that you can make. It’s a great way to build status because you’re exhibiting all of those leadership skills just by participating the resilience, the teamwork. So double down on your passions. And it’s amazing where those connections will take you.

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Isabel Berwick
Thank you.

Natasha Wood
Thank you for having me.

Isabel Berwick
Alison, thanks so much.

Alison Fragale
Thank you for having me.

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[MUSIC PLAYING]

Isabel Berwick
This episode of Working It was produced by Mischa Frankl-Duval and mixed by Simon Panayi. The executive producer is Manuela Saragosa, and Cheryl Brumley is the FT’s global head of Audio. Thanks for listening.

[MUSIC PLAYING]

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F&O trading can’t be a national pastime, says SEBI member Ashwani Bhatia- The Week

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F&O trading can't be a national pastime, says SEBI member Ashwani Bhatia- The Week

Over the last few years, the number of Indians investing in the stock market has grown considerably. From around 4.1 crore at the start of the Covid-19 pandemic in 2020, the number of demat accounts jumped to 17.5 crore as of September 2024. At the same time, volumes in the derivatives market have jumped too, something the Securities and Exchange Board of India (SEBI) is not too happy about.

The market regulator had earlier this month tightened rules for trading in futures and options market. In the Union Budget this year, the STT (Securities Transactions Tax) was also raised on F&O trading.

On Tuesday, Ashwani Bhatia, a full-time member of SEBI, reiterated the regulator’s warning that over-exuberance in F&O market could hurt retail investors and they would rather do serious investing.

“India accounts for the largest volume of F&O globally. We are number one and globally also more than 50 per cent of the F&O volume happens in India. This is a crown we do not wish to wear. F&O cannot be and should not be a national pastime,” Bhatia said speaking at the 14th Morningstar Investment Conference in Mumbai.

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He noted that in the past three years, there had been losses of as much as Rs 1.80 lakh crore and 93 per cent of the investors had lost money.
“Your odds are terrible,” stressed Bhatia.

He felt Indians should rather invest and participate in wealth creation happening across the country.

“Mutual funds are one of the most stable and diverse investing options available to retail investors. In just five years, the mutual fund industry assets under management have increased from Rs. 23.8 lakh crore in March 2020 to the current level of Rs. 67.1 lakh crore as of the end of September 24,” he pointed out.

Money coming via monthly SIPs (systematic investment plan) is now Rs 24,509 crore, he noted, but stated that there was a long way to go.

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“The global average AUM to GDP is about 60-70 per cent and the fact that we are at about 20 per cent currently tells us that we have some way to travel,” said Bhatia.

He also reiterated SEBI’s concerns over the surge in the SME (small and medium enterprises) IPO market.

“SME listings are closely monitored by exchanges and SEBI to ensure they do not engage in irrational exuberance, price manipulation or fraudulent trade practices,” said Bhatia.

The way retail participation is happening, the number of times IPO issues are oversubscribed, the way market making happens, the way underwriting happens and obviously they did not feel very comfortable about what was going on, he said.

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There has been a huge rise in SME IPOs over the past year, with a few IPOs getting significantly more interest than the issue size. The regulator has also passed orders against a few SMEs in the recent past.

Bhatia advised retail investors to be extremely careful while investing in SME IPOs. 

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Singapore Airlines and Air India add 51 new codeshare destinations

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Singapore Airlines and Air India add 51 new codeshare destinations

This marks the first extensive expansion of codeshare arrangements between the airlines since 2010

Continue reading Singapore Airlines and Air India add 51 new codeshare destinations at Business Traveller.

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Why the EU needs to close the gaps in its leaky sanctions regime

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This article is an on-site version of our Europe Express newsletter. Premium subscribers can sign up here to get the newsletter delivered every weekday and Saturday morning. Standard subscribers can upgrade to Premium here, or explore all FT newsletters

Good morning. Today, the leader of Europe’s liberals tells our parliament correspondent that the EU must take more steps to prevent third countries from evading sanctions on Russia. And my colleague in the Balkans reports on how Serbia’s president was convinced not to visit Russia this week.

Join leaders from Orange Group, Nokia, TIM and more on December 12 at our Tech Leadership Forum in Brussels to explore how effective leadership and strategies can underpin technologies and strengthen connectivity as a competitive economic asset in Europe. Reserve your free pass here.

Mind the gap

With Ukraine facing a tough third winter of war, Europe’s liberals are pressing the EU to lean on countries which still allow military goods to reach Russia, writes Andy Bounds.

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Context: Despite 14 rounds of sanctions the EU is struggling to stop Moscow procuring technology for its war machine, says Valérie Hayer, leader of the Renew Group in the European parliament, and it is time to end the “blind spot of sanctions evasion”.

“The Russian economy is not down, despite the 14 sanctions packages we have implemented. They have affected it, but not enough,” she said in an interview with the Financial Times in her office in Strasbourg.

“And we can see that among the blind spots is the evasion of sanctions, especially by countries in Central Asia. 

“Just look at the numbers. Between 2021 and 2023, exports between Kazakhstan and Russia increased from €40mn to €2.2bn . . . It’s all the prohibited products, chemicals, semiconductors, drones, computer hardware.”

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Hayer, who is close to France’s President Emmanuel Macron, wants to review the EU’s Central Asia strategy, now five years old. 

She envisages carrots and sticks to draw the region, once part of the Soviet Union, closer to the EU and reduce its reliance on Russia, including holding regular summits.

“We must demand that the European Union push so that . . . there are systematic elements on the requirement that sanctions against Russia be respected.”

She hopes to enlist the help of the G7 and European businesses. 

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“They all know that they should not sell to Russia. So everyone must assume their responsibilities and European companies must respect these sanctions,” she said.

MEPs cannot make sanctions policy but they can shape the debate. Renew was among the first to call for the EU to stop Russian oil and gas imports at the beginning of the war. That was initially laughed off by some as unfeasible, but is now considered an eventuality.

Chart du jour: Barnier’s budget

After 50 years of failing to balance its budget, France plans €60bn-worth of tax rises and spending cuts next year. But that belt-tightening poses a risk to growth in an economic climate as fragile as the country’s government.

With friends like these

Serbian President Aleksandar Vučić has declined an invitation from his Russian counterpart Vladimir Putin to attend this week’s summit of the Brics countries in Russia, electing instead to spend the time with European Commission president Ursula von der Leyen and other EU leaders, writes Marton Dunai.

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Context: Vučić, who has straddled the fence between Russia and the west since the start of the full-scale invasion of Ukraine, had been invited to become a member of the group named for Brazil, Russia, India, China and South Africa, but declined. He has now reinforced that decision with his no-show at this week’s summit in the city of Kazan.

His European meetings — which include hosting fellow centre-right European People’s party leaders Donald Tusk of Poland and Greece’s Kyriakos Mitsotakis tomorrow — show Vučić angling for acceptance from the western mainstream at the same time as currying favour with Putin. Von der Leyen will visit Serbia on Friday.

While Serbia has opposed EU measures such as sanctions against Russia, Vučić said he had told Putin he was not in a position to join the Brics leaders, saying the busy schedule was a reason but not an excuse for skipping.

“I told [Putin] that it would be difficult [to join the Brics summit] even without all of this, but that we would send a delegation of four of our ministers,” Vučić said, recounting a conversation which was one of the rare occasions the two leaders have spoken directly.

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The delegation to travel to Moscow will include such pro-Russian figures as deputy premier Aleksandar Vulin and Nenad Popović, a minister without portfolio and owner of ABS Electro, a large technology group that caters to Russian clients.

And Vučić may soon be paying an individual visit.

“I talked with President Putin about the 80th anniversary of the victory over fascism, which will take place [on May 9] next year,” he said. “It will be, I assume, the biggest show in history after the second world war on the Red Square in Moscow.”

What to watch today

  1. European Commission president Ursula von der Leyen visits Albania, meets Prime Minister Edi Rama.

  2. Turkish President Recep Tayyip Erdoğan meets Russia’s Vladimir Putin.

Now read these

  • Deglobalisation risk: A fragmented approach to global bank rulemaking could unleash destructive “economic nationalism,” warns UBS chief Sergio Ermotti.

  • Peace sign: Russia ending aerial attacks on Ukrainian energy targets and cargo ships could “signal” negotiations, Volodymyr Zelenskyy has said.

  • Unfrozen asset: Russian oligarch still owned Italian luxury holiday resort months after being sanctioned, according to documents seen by the FT.

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Are you enjoying Europe Express? Sign up here to have it delivered straight to your inbox every workday at 7am CET and on Saturdays at noon CET. Do tell us what you think, we love to hear from you: europe.express@ft.com. Keep up with the latest European stories @FT Europe

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In Conversation With… Jordan Sriharan: Navigating Turbulent Waters – A Market Outlook and Strategies for Financial Advisers

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In Conversation With... Jordan Sriharan: Navigating Turbulent Waters - A Market Outlook and Strategies for Financial Advisers

Join Kimberley Dondo and Jordan Sriharan, Fund Manager at Canada Life Asset Management, as they discuss the current market landscape and the impact of global trends on the UK.

In this episode, Jordan shares his revised outlook, outlines strategies for mitigating risk, and identifies potential opportunities for UK investors.

Tune in for valuable insights and actionable takeaways to help you navigate the turbulent waters and guide your clients through these challenging times.

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There is need for greater financial discipline by states, says Amitabh Kant- The Week

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There is need for greater financial discipline by states, says Amitabh Kant- The Week

In the last few years, the Centre may have focused on controlling the fiscal deficit, but Amitabh Kant, the former CEO of Niti Aayog, is concerned over the high fiscal deficit at the state level and has called for greater fiscal discipline by states.

“The Centre has controlled fiscal deficit. But the Centre and states together still have a high fiscal deficit. So there is a need for greater financial discipline by the state governments as well,” said Kant at the 14th Morningstar Investment Conference.

According to a recent study by the National Stock Exchange, the overall deficit for 21 states it studied, surpassed the budget estimates by 30 bps to 3.5 per cent of GSDP (gross state domestic product) last financial year. For FY25, the fiscal deficit is estimated to be lower at 3.2 per cent of GSDP, but still exceeding the 3 per cent recommended by the 15th Finance Commission.

Kant was not too supportive of redistributing funds among people. Rather he felt governments should focus on spending more on capital expenditure. “You need a huge focus on production and productivity. And that will happen with more money being put into these aspects of growth,” he said.

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He noted that many countries like America and even countries in Europe had grown over the years through capital expenditure spending.

India is among the fastest-growing major economies in the world. Kant noted that India had moved from a ‘fragile 5’ economy to among the top five on the back of major structural reforms and infra development. While it is expected to continue growing, there are challenges ahead.

“India is confronted with three critical challenges like the geo-political conflict, breakdown of global supply chain, and emergence of new technologies like AI (artificial intelligence) and ML (machine learning), which are going to impact production, radically transform lives of citizens across the world. The challenge is that India has to confront these challenges and irrespective of these challenges, India has to grow,” said Kant.

According to him, 500 million people will move from rural to urban areas and therefore there was a need for sustainable urbanisation.

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He also said India had to create more jobs and therefore manufacturing would be extremely critical. India has to grow its share of manufacturing to 25 per cent from the current 17.5 per cent, he added. 

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How to get a free heat pump and cut your energy bills by up to £380 a year

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How to get a free heat pump and cut your energy bills by up to £380 a year

HEAT pumps are an environmentally friendly way to keep your home warm and can reduce your heating bills significantly

And best of all, you might be able to get one installed for free.

A heat pump could make heating your home far more efficient

1

A heat pump could make heating your home far more efficient

Air source heat pumps take in cold air, raise its temperature and use this to heat a home, potentially saving billpayers £380 a year on their energy costs.

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While heat pumps use electricity to heat the cold air, which normally comes from outside, they produce far more energy than they use and are around four times more efficient than a traditional gas or oil boiler.

And they last around five years longer than your standard gas boiler.

Ground source heat pumps are also available, which work in a similar way using the natural heat from the ground.

Exactly how much a heat pump could save you, depends on the heating system you’re upgrading from.

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The Energy Saving Trust has estimated that replacing a G-rated heating system with a high performing heat pump in a semi-detached house could result in savings of £380 a year,

Even replacing a G-rated system with a low performing heat pump would save you around £200 a year.

Replacing an average heating system with a high performing heat pump in a semi-detached house could save you £210 a year.

An air source heat pump costs significantly more than a gas boiler on average, according to the National Infrastructure Commission (NIC).

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But costs are coming down all the time and energy companies are offering some heat pumps for £500, with a government grant.

If you’re on a low income, you might even be able to get all costs covered as you upgrade.

These are the schemes available to get a free or discounted heat pump installed in your home:

Energy Company Obligation

The Energy Company Obligation is a government scheme that helps hard-up households install home upgrades that will tackle fuel poverty and reduce carbon emissions.

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It requires medium and large energy suppliers to help low-income, fuel-poor and vulnerable households to heat their homes.

Energy suppliers can choose how they fulfil their obligations but many offer to cover the cost of installing heat pumps.

How to cut energy costs and get help with FOUR key household bills

Some will even also install solar panels at homes to power the pumps, leading to further reductions to energy bills.

You might qualify for the help if you live in private housing and get one of the following benefits:

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  • Child Tax Credit
  • Working Tax Credit
  • Universal Credit
  • Pension Guarantee Credit
  • Pension Savings Credit
  • Income Support
  • Income-based Jobseeker’s Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Child Benefit
  • Housing Benefit

If you own your home and are seeking help, it must have an energy efficiency rating of D, E, F or G.

Whereas if you rent from a private landlord, you can access support if your house has an energy efficiency rating of E, F or G.

You can check the energy rating of your home on the government website.

There is no cap on the funding that households can get, which means you may be able to get a grant to cover the total cost of installing a heat pump at your home.

The scheme also offers help with covering the cost of other energy efficient measures, like insulation.

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To apply for the scheme you can contact your local authority or your energy supplier.

Different suppliers will offer funding for different projects, so you need to check with your provider.

The following suppliers all take part in the scheme:

  • British Gas
  • E (Gas & Electricity)
  • E.ON
  • Ecotricity
  • EDF
  • Octopus Energy
  • Outfox the Market
  • OVO
  • Scottish Power
  • So Energy
  • Utility Warehouse
  • Utilita

What is a heat pump?

A heat pump is a type of renewable energy technology that enables you to heat your home in an environmentally friendly way.

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They deliver heat at a lower temperature than gas and oil boilers so they have to be run for much longer periods at a time.

There are also ground source heat pumps that take the heat from underground by pumping water through it in pipes.

Heat pumps take the available heat from the ground or air and increase it to a higher temperature using a compressor.

It then transfers the heat to the heating system in your home.

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The pump uses electricity to run but it takes less energy than the heat it produces, making it an efficient way to warm your home.

Boiler upgrade scheme

The Boiler Upgrade Scheme offers households grants up to £7,500 to install heat pumps in their homes.

You can apply for the grant, which aims to cut carbon emissions, whatever your financial situation.

To get the help you must:

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  • live in England or Wales
  • own the property you’re applying for
  • be using the grant money to replace a fossil fuel heating system (such as oil, gas, electric or liquefied petroleum gas)
  • have a valid Energy Performance Certificate (EPC)

An MCS certified installer will be able to give you a quote for installation and tell you if you are eligible for one of the grants.

You can find a list of MCS-certified installers by going on the msccertified.com website.

Once you’ve agreed a quote with the installer, they will normally apply for the grant on your behalf.

The value of the grant is then be deducted off the cost of installation.

So if the work costs £12,500, you would pay £5,000.

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Other savings

Many energy firms also have special tariffs and offers for those installing heat pumps in their homes.

EDF offers customers with heat pumps access to a special tariff to enhance their savings.

It is also pledging to give free electricity throughout December 2025 to those that install the technology.

Octopus also has a tariff specially designed for heat pump users.

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The provider said the Cosy Octopus tariff could save households £264 a year, compared to using a gas boiler.

Installing a heat pump through British Gas would make you eligible for its heat pump energy offer, which caps the price of energy used by the device at 14p per kWh for 12 months, potentially saving customers £456.

Before you look to have a pump installed it’s worth checking what your provider will offer and whether you need to install through them to claim.

4 ways to keep your energy bills low 

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Laura Court-Jones, Small Business Editor at Bionic shared her tips.

1. Turn your heating down by one degree

You probably won’t even notice this tiny temperature difference, but what you will notice is a saving on your energy bills as a result. Just taking your thermostat down a notch is a quick way to start saving fast. This one small action only takes seconds to carry out and could potentially slash your heating bills by £171.70.

2. Switch appliances and lights off 

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It sounds simple, but fully turning off appliances and lights that are not in use can reduce your energy bills, especially in winter. Turning off lights and appliances when they are not in use, can save you up to £20 a year on your energy bills

3. Install a smart meter

Smart meters are a great way to keep control over your energy use, largely because they allow you to see where and when your gas and electricity is being used.

4. Consider switching energy supplier

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No matter how happy you are with your current energy supplier, they may not be providing you with the best deals, especially if you’ve let a fixed-rate contract expire without arranging a new one. If you haven’t browsed any alternative tariffs lately, then you may not be aware that there are better options out there.

    Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

    Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

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