BUSINESS
Bihar, Andhra Pradesh special status demand throws up fiscal, political dilemmas
In April 2015, the 14th Finance Commission discontinued the practice of giving special category status to states, with some exceptions, which means the BJP will have to look for other ways to fulfil the reported demands of its allies TDP and JD(U) for the grant of such a status to Andhra Pradesh and Bihar, respectively.
BUSINESS
A Modi 3.0 that reins in overzealous tax officials
Industry expects the incoming government to tone down the bureaucratic actions that have led to a flurry of GST evasion notices for gaming firms, as well as retrospective demands from startups on angel tax
LOK-SABHA-ELECTION
MC Analysis | A weaker Modi mandate could put welfarism ahead of fiscal prudence
An economist pointed out that if the BJP and its alliance do not win the numbers it has targeted, then a big-bang Budget oriented towards welfare measures to boost consumption may be on the anvil
ELECTION
Full Budget may see quicker fiscal consolidation, higher capex if BJP wins big
Beyond fiscal prudence and capex, a potential Modi-led government that has an absolute majority is also expected to stay focused on strategic sectors, in line with its stated post-election ambition of attaining a $30-trillion ‘Viksit Bharat by 2047’ by betting on private capex picking up as well as on measures to consolidate foreign investments.
BUSINESS
Centre's FY24 fiscal deficit at 5.6% of GDP, lower than revised estimate of 5.8%
The fiscal deficit came in at Rs 16.54 lakh crore, or 95.3% of the estimate
BUSINESS
GDP growth surpasses estimates at 7.8% in Q4; FY24 tops 8%
India is seen growing 8.2 percent in 2023-24 thanks to the manufacturing and mining sector. However, farm sector GVA is seen slowing down to 1.4 percent in FY24 against 4.7 percent in 2022-23.
BUSINESS
India's inflation tug-of-war: Falling headline rate versus rising food prices
As political rhetoric around Inflation increases, Moneycontrol takes stock of how inflation has fared in India over the years and versus globally.
BUSINESS
FM hints at reconsidering 45-day payment rule for MSMEs
The tweaked Income Tax rule bars businesses from claiming tax deductions for payments beyond 45 days from MSMEs for supply of goods and services.
BUSINESS
High GDP growth to youth unemployment: What the incoming govt will inherit on June 4
On the fiscal side of things, a higher than expected dividend payout from the RBI may aid the government in sticking to the path of consolidation, while Consumer Price Index inflation at 4.83 per cent in April continued its downward trajectory.
BUSINESS
Early UK polls will allow FTA talks with India to resume quickly, says UKIBC's McCallum
Experts feel that early elections in the UK are positive for the ongoing FTA negotiations.
BUSINESS
India plans to upskill and add negotiators for FTA talks
The move to ramp up the number of officials directly involved in trade pact talks as well as finalising a standard operating procedure comes at a time when India is negotiating such deals with a number of nations and groupings.
BUSINESS
Analysis: Congress guarantees may cause fiscal slippages. Can India afford it?
According to an economist who spoke on the condition of anonymity, the schemes outlined by the Congress in their manifesto could lead to a slippage of 1.5-2 percentage points to the fiscal deficit target of 5.1 percent for FY25 assuming everything else stays the same. But, measures like rationalising expenditure coupled with higher revenues on account of a widening tax base could very well limit any potential, sharp escalations to the deficit.
BUSINESS
Arvind Kejriwal's Delhi is big on education and subsidies, but low on capex
Delhi's allocation for health and education for FY25 is higher than the average spending by states in 2023-24, but on roads and bridges the outlay is lower at a mere 2.6 percent.
BUSINESS
No immediate 'hot money' worries over bond inclusion given low FPI presence
According to a finance ministry official, whether inflows through the bond market can even be considered "hot money" is questionable given that FPIs in FAR securities are nowhere near a level that is worrying.
BUSINESS
India needs to factor in risks to growth from uncertain US inflation, dollar outlook: CEA Nageswaran
"Global financial stability is an important risk factor we have to face in the coming years. It is a risk factor that has not yet played out which we need to factor in given our own state of market valuation in India," Nageswaran added.
BUSINESS
India's youth needs to be AI-ready to avoid huge dislocations, says CEA Nageswaran
Weighing in on the issue of employment, the CEA said that the quantity of youth covered by India's education system is no more a challenge, but learning outcomes are.
BUSINESS
India may further ease FDI norms once the new govt takes charge: DPIIT Secy
The government is mulling quick reforms in certain areas to enhance the ease of doing business in India, ahead of the World Bank Group's revamped ranking, which is expected to be released soon.
BUSINESS
After FM Sitharaman, DPIIT secretary defends PLI incentives, subsidies for chip makers
DPIIT secretary Rajesh Kumar Singh said critics are losing sight of the fact that the aim of the PLI scheme is to ensure strategic autonomy and reduce dependence on insecure supply chains.
BUSINESS
DPIIT secy asks India Inc. to prepare for lower tariff regime in the long run
Industry secretary Rajesh Kumar Singh said given that India is negotiating key FTAs currently, the government may become a "little less conservative" in its approach, seemingly referring to their stance on tariffs when in talks with other countries for trade pacts.
BUSINESS
FM Sitharaman doubles down on govt's focus on manufacturing despite scepticism from former RBI guv Rajan
Finance Minister Nirmala Sitharaman said India needs to have greater sophistication in product making and assess how best the sector can be given policy support, adding that expanding manufacturing will also help the country achieve its goal of being a self-reliant economy.
BUSINESS
Uncertain inflation path may keep bond yields above 7%; more buybacks likely in May
The finance ministry had expected yields on the 10-year benchmark paper to fall below 7 percent given the sharply lower borrowing programme for the current fiscal.
BUSINESS
India has enough firepower to check dumping of Chinese goods: Official
China remained India's top import-source nation in FY24, accounting for 15.1 percent of total inbound shipments during the previous fiscal followed by Russia that was a distant second.
BUSINESS
India's merchandise trade deficit swells to $19.1 billion in April as gold imports triple
While exports rose by 1.1 percent from the year-ago period to $34.99 billion in April, imports shot up by 10.25 percent at $54.09 billion, the commerce ministry said on May 15
BUSINESS
India may become dumping ground for Chinese goods as US raises duties on EVs, chips: GTRI
Higher duties on Chinese face masks, syringes and needles, medical gloves and natural graphite provides a significant opportunity for India, GTRI also added
