Arup Roychoudhury

ECONOMY

LIC IPO | Government issues tenders for transaction advisors

In its RFPs, DIPAM said that the potential size of the IPO is expected to be larger than any precedent in Indian markets.

ECONOMY

Interview | Economic impact of third wave of COVID likely to be less than that of second wave, lockdowns: Chief Economic Advisor

Krishnamurthy Subramanian tells Moneycontrol in an interview that credit guarantee loans to small borrowers and MSMEs were more targeted and effective than any direct cash transfer. The government's budget plank of higher capital expenditure will have a substantial multiplier effect on the economy, he said.

ECONOMY

Exclusive | Why govt has not listed Cryptocurrency Bill for Monsoon Session of Parliament

Officials told Moneycontrol that there are other economic issues which require legislation in the Monsoon Session of Parliament. While an outright ban is unlikely, it is understood that cryptocurrencies may be allowed as a tradable asset, like commodities or art.

BUSINESS

Interview | Our response will, to some extent, depend on exactly what trajectory the economy will take: Sanjeev Sanyal

In an exclusive interview with Moneycontrol, Principal Economic Advisor Sanjeev Sanyal said that the government is closely monitoring high-frequency data, and will have greater clarity on the trajectory of the economy, post the second wave of COVID-19, within weeks. It is then that a decision to provide further support could be taken.

ECONOMY

June retail inflation rises 6.26 percent, official data shows

June is the second consecutive month when headline retail inflation is above the Monetary Policy Committee's inflation targeting range of 4 (+/-2) percent.

CORONAVIRUS

New Health Minister Mansukh Mandaviya faces the biggest test of his political career

In the medium term, the two biggest challenges Mansukh Mandaviya faces are to ensure that the pace of vaccination improves, with enough supply stock in reserve, and that the infrastructure and trained personnel are in place to deal with the ‘third wave’.

WORLD

Open to ‘amicable solution’ with Cairn Energy: Finance ministry

Moneycontrol understands that, as things stand, any offer of an ‘amicable solution’ between the centre and Cairn Energy has to come from the company. The Centre is of the view that while it will not pay up the sum of $1.2 billion plus interest that Cairn Energy claims, a 'reasonable' figure can be reached at.

ECONOMY

Govt hopes bringing Public Enterprises Department under Finance Ministry will boost privatisation process

This move is aimed at ensuring that the Centre’s privatisation, asset monetisation and capital expenditure plans for state-owned companies are aligned and coordinated.

ECONOMY

India may have to let go of equalization levy once OECD BEPS framework comes into force

India's controversial Equalization Levy, commonly known as the 'Google Tax' would be a thing of the past, when and if it adopts the global plan to have a uniform corporate tax regime. While the G20 tax plan vindicates the stance of India and other large market economies, analysts say finalizing the details will take time given their major impact on India's taxation policy.

BUSINESS

GST collection for June falls to Rs 92,849 crore, lowest in 10 months

Analysts say that though monthly collections fell below the Rs 1 lakh crore mark, they were still encouraging, with the Finance Ministry projecting a rebound in July.

ECONOMY

Four Years of GST: Council should now fulfill unfinished agenda, say experts

While GST has changed India's taxation system for the better, there are still many pending issues which analysts need to be prioritised. These include bringing real estate and petroleum products under GST, sorting out the issue of compensation to states, and providing stability in assessment and disputes.

ECONOMY

Centre's April-May fiscal deficit comes in at 8.2% of full year target

The fiscal deficit for the same period last year had reached 58.6 percent of the full year target. That was in the middle of the nationwide lockdown, when the centre's revenues had all but dried up due to lack of economic activity, and expenditure commitments had increased.

BUSINESS

COVID-19 effect | Finance Ministry brings expenditure curbs back for several ministries from July 1

The curbs imposed for July-September quarter are much more liberal than those imposed for most of 2020-21. It is believed that the expenditure curbs last year saved the centre anything between Rs 1-1.5 lakh crore, though it did not matter much in the end.

ECONOMY

India, US share interest in implementing global minimum tax: Treasury Dept

It is worth noting that there has been no official statement from the Finance Ministry regarding India's stance on the global minimum tax plan. Officials have conceded privately that the proposal and its implications are being examined.

ECONOMY

New spending for FY22 from FM’s latest package to be less than Rs 50,000 crore

If one leaves aside the credit measures and announcements which had already been made earlier, then the extra outlay for 2021-22 as a result of the new announcements will be around Rs 48,900 crore, our calculations show.

ECONOMY

EXPLAINED | How does the govt monitor profiteering after GST rates are cut?

Experts say the National Anti-Profiteering Authority’s (NAPA) move to ensure that GST cuts on COVID-related supplies are passed on to the customers is a step in the right direction, and the law has a provision to ensure that customers are not denied the benefit.

INDIA

COVID-19 | Record vaccination a 'test case' for govt to reach milestone of one crore doses a day

While the Centre is confident of hitting one crore vaccinations a day, officials tell Moneycontrol that supply side concerns remain.

COMPANIES-2

Govt may sell a minimum 26% stake in IDBI Bank; seeks legal, transaction advisors

The government has not yet finalized how much stake to sell and will do so in consultation with the RBI, LIC Ltd, and the appointed transaction advisor, a senior government official told Moneycontrol. The stake offloaded could be anything between 26 percent (the minimum required to transfer management control) and the centre's entire stake, which is currently at 45.5 percent

TRENDS

Exclusive | India considered minimum income support scheme after lockdown last year, says top official

Government officials held internal discussions regarding temporary income support of around Rs 5,000-6,000 per month for the urban and rural poor who had lost their livelihoods in the nationwide lockdown last year, according to Pronab Sen, head of a standing committee to overhaul India’s economic statistics and data collection.

ECONOMY

Interview | India needs temporary income support plan, H2 rate hike likely says Nomura's Sonal Varma

Nomura’s economist expects the Indian economy to contract 4 percent in April-June compared with Jan-March and that inflation would remain a big risk that may require a hike in reverse-repo rates in the second half of the fiscal

ECONOMY

Explained | The rise in retail and wholesale inflation: Why it is a matter of concern

At a time when the economy is reeling from the effects of a deadly wave of COVID-19, income levels have dropped and regional lockdowns have contributed to unemployment, a rise in inflation is the last thing the government wants to deal with.

ECONOMY

EXPLAINED | The concerns raised by some state FMs at the last GST Council meeting

Some of the opposition Finance Ministers publicly spoke about not being heard at the GST Council meeting, prominent among them being Punjab Finance Minister Manpreet Singh Badal and West Bengal Finance Minister Amit Mitra.

ECONOMY

Retail inflation for May at 6.30%, highest in six months

CPI uptick showed that the impact of local COVID-19 lockdowns in May was more severe than expected, said economists. However, given the Monetary Policy Committee's inclination to support growth, a status quo on monetary policy is expected