Morning Scan: All the big stories to get you started for the day

The central government will continue the push its reforms agenda in its third term since political continuity, and a predictable and stable economic environment and taxation structure is important to achieve India’s developmental goals, finance minister Nirmala Sitharaman said at an event organized by the Business Standard. The mission of self-reliant India is not a regressive step, but a considered, calibrated one, Sitharaman maintained.

Why it’s important: It is widely expected that the National Democratic Alliance led by the Bharatiya Janata Party will retain power for the third term after the general elections. A promise of policy continuity and stress on the reforms agenda will be welcomed by business and industry.

#3. Centralized intelligence unit on the cards to assess progress of India’s manufacturing sector

The federal government will soon assess India’s manufacturing prowess through a centralized intelligence unit and develop key performance indicators on metrics such as value-added, export performance, technological prowess, supply chain effectiveness, labor productivity and access to global market, The Economic Times reported.

Why it’s important: Make in India is a major policy initiative of the government. A continuous assessment would help in ramping up the manufacturing sector and make it globally competitive.

#4. Baba Kalyani Group denies allegations by kin, will defend position in court

In a new twist to the ongoing spat between the Kalyani and Hiremath families, the Bharat Forge chairman Baba Kalyani-led faction has denied all allegations made in the legal petition, the Hindu Businessline reported. The claims by Baba Kalyani’s sister’s children have been made with the intent to malign the image of the family patriarch and the business conglomerate, it said.

Why it’s important: There has been an ongoing tussle between Baba Kalyani and his sister Sugandha. Sameer and Pallavi, children of Sugandha and Jai Hiremath, have recently filed a lawsuit seeking partition of the Kalyani family assets to claim their share of the Kalyani Hindu undivided family assets.

#5. Automobile platform CarDekho in discussions to raise up to $150 million in fresh funding

Automobile portal CarDekho is in talks for a new round of funding that would raise its valuation marginally ahead of a public listing in the next 18-24 months, the Mint reported. The company is in talks with investors to raise $100-150 million in a secondary round where early investors will affect full or partial exits. The company has hired investment bank Rainmaker Group to help with the process.

Why it’s important: CarDekho, owned by Girnar Software, is said to have seen significant investor interest after it focused on stronger unit economics and swung into profitability in the December quarter.

#6. Car exports from India to reach pre-pandemic levels despite global economic uncertainty

Exports of cars made in India are set to touch pre-Covid levels despite global uncertainty, amid an increase in demand for models such as the Hyundai Creta, Maruti Suzuki Grand Vitara, Kia Seltos and Mahindra XUV700 from customers in Australia, Latin America and Southeast Asia, the Economic Times reported. Carmakers are set to ship more than 675,000 vehicles in 2023-24, recovering from a low of 404,000 after the pandemic in 2020-21. Around 663,000 cars were exported in 2022-23.

Why it’s important: Indian carmakers have been trying to scale up exports for several years now with mixed results. An improvement in outbound shipments will bring some cheer.

#7. Indian Premier League adverts see of mass market products make way for premium goods

The bottom of the pyramid seems to be losing shine for large consumer goods manufacturers, the Economic Times reported. They have launched more premium products than mass-market ones in the past two years in several categories, as per data from companies and market researchers.

Why it’s important: The development indicates a K-shaped economic recovery. Inflation has been ruling high for more than a year, which has taken a toll on mass-segment sales. Economic stress in the low- to middle-income groups hasn’t eased up much since the pandemic.

#8. More than 24 independent directors withdraw candidature during vote

Asian Paints’ independent director Pallavi Shroff withdrew her candidature for a second term on the board while shareholders voted on the proposal, joining a long queue of individuals who agreed to join a company board, only to pull back at a late stage, the Mint reported, citing multiple instances. Zee, for instance, has seen three instances of directors opting out while Gland Pharma and IFGL Refractories have witnessed two such occasions in the past three years.

Why it’s important: There are two likely reasons for the pullback: disapproval from proxy advisory firms and a desire to avoid the embarrassment of being rejected by investors. It would be much better if this is sorted out before the matter ends in a potential negative vote.

#9. Anti-trust regulator conducting inquiries on whether some fintech firms are stifling competition

The Competition Commission of India is conducting enquiries against some fintech entities to check whether their ways of leveraging technologies are impacting competition, according to chief Ravneet Kaur, the Business Standard reported. The fair-trade regulator is taking necessary action to ensure a competitive digital market, she said.

Why it’s important: Digital technologies are playing an increasingly vital role in a slew of sectors. The anti-rust overseer is strengthening its efforts to curb unfair business practices through amended regulations and key rulings against anti-competitive practices in the digital market.

#10. Highest slab of 28 percent tax on online money gaming to continue till Supreme Court decision

India indirect tax body is unlikely to make any changes to the 28 percent goods and services tax regime on online money gaming until the Supreme Court gives its final order on a bunch of tax disputes for the period prior to its introduction last October, the Mint reported.

Why it’s important: A review by the GST Council scheduled in March cannot take place as a model code of conduct is in place because of the upcoming general elections. A review does not guarantee a tweak though, and how the Supreme Court views the matter will weigh on any decision by the tax rate setting body.