ECONOMY
Exclusive | Government plans to shut down 'redundant bodies' to rationalise cost
The Union Textile Ministry in August abolished the All India Handicrafts Board and the All India Handloom Board — advisory bodies that were created to help the government in “formulation of the overall development programmes” in the handicrafts and handloom sectors, “keeping in view socio-economic cultural and artistic perspective”.
BUSINESS
GST compensation dues: How borrowing options narrowly missed being put to a vote in GST Council meeting
At the beginning of the 42nd GST Council meeting, the Centre was confident that it had the numbers to have a favourable result on the borrowing options. However, things changed during the discussions, and the government officials were soon found to be trying to force the meeting to a close
INTERVIEW
Some sectors, worst hit by pandemic, 'require special love and care': Sanjeev Sanyal
The government is considering relief measures for sectors which have been the worst-hit by the COVID-19 pandemic, Principal Economic Advisor Sanjeev Sanyal said in an exclusive interview. He said there may be a case of positive GDP growth in Q4 FY21 and a substantial uptick in FY22 due to a low base effect
INDIA
42nd GST Council Meet: No decision on borrowing issue to meet compensation gap; next meeting on October 12
The gap in compensation arising due to the extraordinary situation due to COVID-19 will be paid out of the cess which gets collected after 5 years.
ECONOMY
GST Council to meet today: Stage set for stormy session as compensation dues issue to take centre stage
The Centre late last month gave two options to the states to borrow either Rs 97,000 crore from a special window facilitated by the Reserve Bank of India or Rs 2.35 lakh crore from market, and had also proposed extending the compensation cess levied on luxury, demerit and sin goods beyond 2022 to repay the borrowing.
BUSINESS
Willing to waive off interest on interest during moratorium: Centre to SC
Government says willing to bear costs on loans upto Rs 2 crore on a range of loans like education, housing, and auto, among others
BUSINESS
Hope floats for Indian economy as manufacturing activity, GST collections, vehicle sales pick up
Moneycontrol analyses some indicators that have shown substantial improvement since the lockdown months, with some even exceeding 2019 levels.
ECONOMY
Spending on rural welfare in FY20-21 up to August highest in last 5 years - Govt data
As per the government's data, total expenditure by the agriculture ministry more than doubled year-on-year in FY 21 till August. Government spending for the ministry till August this financial year stood at Rs 61,883 crore, against Rs 38,324 crore for the same period a year ago
ECONOMY
CGA data: Declining trend in corporate tax collection remains a worry
The government's net direct tax collection fell 31 percent year-on-year to Rs 1.92 lakh crore in April-August 2020, Minister of State for Finance Anurag Singh Thakur said in Parliament. Net direct tax collection was Rs 2.79 lakh crore in April-August 2019.
ECONOMY
Budget 2021-22 preparations begin; FY 2019-20 to be base year for revenue and expenditure projections
Total revenue for 2019-20 was Rs 17.5 lakh crore, compared to revised estimates of Rs 19.32 lakh crore. Net tax revenue for 2019-20 was seen at Rs 13.56 lakh crore, which was 90 percent of revised estimates
BUSINESS
Vodafone arbitration case: India can move to the High Court of Singapore for seeking legal remedies
British telecom major Vodafone won the case against India over a retrospective tax demand. The Permanent Court of Arbitration (PCA) at The Hague ruled that the conduct of India's tax department is in breach of "fair and equitable" treatment.
BUSINESS
Interview | Government recognises this is time for fiscal measures: CEA Krishnamurthy Subramanian
"If you look at international evidence during times of crises, government spending is really crucial, because both consumption and investment which comes from the private sector, go down,” CEA Krishnamurthy Subramanian said.
ECONOMY
Exclusive | Government looks at extending PLIs to more sectors, streamline host of laws to attract further investment
Some of the sectors that the government is considering to extend PLIs to include specialised pharmaceutical product makers, textile units, food processing plants, solar panel makers, and automobile components manufacturing.
ECONOMY
Initial India-US trade deal unlikely before November, may include full restoration of GSP benefits
US has been wanting lower duties for its apples, pecan nuts, walnuts, almonds and soya bean. India is keen to get market access for its mangoes, pomegranates and grapes
INDIA
Interview| In corporate farm markets, losses might be passed on to farmers as lower prices: Ramakumar
NABARD chair professor and economist at the Tata Institute of Social Sciences (TISS) R Ramakumar speaks to Moneycontrol about the two farm bills passed by Parliament. While the government claims that the legislation will help farmers get better prices for their crops, farmers feel that these ordinances would 'corporatise' the agriculture sector and further cripple them financially
ECONOMY
Inflation data suggests farmers getting only a fraction of what we pay for vegetables, pulses
The widening gap in wholesale and retail prices that reflects inability of farmers to realise appropriate prices comes at a time when farmer protests against three farm bills is gathering steam.
BUSINESS
Centre plans to scan large export companies that try to dodge cap on MEIS claims
Earlier this month, the government capped export incentives under the MEIS at Rs 2 crore per exporter on outbound shipments made during the period from September 1 to December 31, 2020
BUSINESS
Centre seeks Parliament nod for additional net cash expenditure of up to Rs 1.67 lakh crore
For meeting expenditure towards recapitalisation of public sector banks through government securities, the government has sought Rs 20,000 crore
ECONOMY
Exclusive: Government holds discussion on tax breaks for hospitality sector to revive demand
Tax breaks may be in the offing for the sector which could do with a boost after a punishing spell during the lockdown
INDIA
India GDP outlook: India Ratings forecasts contraction of 11.8% in FY21 GDP
Fitch Ratings too on September 8 projected a massive 10.5 percent contraction of India's GDP in the current financial year.
BUSINESS
Demand for health and hygiene products would remain high post pandemic: ITC's Sanjiv Puri
ITC's gross revenue and PBT (before exceptional items) for FY20 stood at around Rs 46,300 crore and Rs 19,300 crore, respectively
ECONOMY
Rural demand can support, but not substitute for falling urban consumption in FY21: Report
The COVID-19-led business disruptions during end-March-May 2020 have been so severe that the Indian economy shrank 23.9 percent during the April-June quarter this year, confirming fears of a crippling slide across several industries and services
ECONOMY
States get full GST compensation for 2019-20; but next year's payment remains a question mark
Under GST law, states are guaranteed to be paid for any loss of revenue in the first five years of the GST implementation from July 1, 2017. The shortfall is calculated assuming a 14 percent annual growth in GST collections by states over the base year of 2015-16.
ECONOMY
PM Modi likely to meet heads of PSBs, NBFCs this week to take stock of credit availability
Given the economic situation at present, banks are taking a conservative approach in retail lending, as uncertainty looms large over retail segment loans as the private sector grapples with pay cuts and job losses.
