Subsidies

BJP government in Delhi will need to find another Rs 13,000 crore to fund its welfare promises

The amount will be in addition to the Rs 11,000 crore that the outgoing AAP government spends on electricity and other subsidies, which the BJP has promised to continue. The city's subsidy bill will rise to nearly 30% of its budget

India's EV ecosystem doesn't need new incentives or subsidies, says Piyush Goyal

Several issues including charging and batter swapping infrastructure were discussed in a meeting between stakeholders from the EV sector and Goyal on January 3

Raghuram Rajan advocates service-led growth, human capital development to secure India's economic future

Raghuram Rajan also underscored the importance of job creation, particularly through the development of skills and called for greater collaboration between industry and training institutions to ensure that people have the skills needed to be employable.

Steep interest rates, uncertain tax policy may limit FDI flows into India: Economic Survey

While, highlighting the downsides of FDI inflows into India going ahead, the survey did mention that the moderate fall in gross terms shows that investor sentiment towards the country remains unchanged.

India’s debt high, but sustainable, NCAER Director General Poonam Gupta says

Debt levels of states are expected to increase further, but will remain sustainable.

WTO’s failure to reach consensus on farm, fisheries may be a win for India

While certain WTO members have expressed concerns over India's MSP scheme for key agricultural products, and export restrictions on commodities such as rice, New Delhi maintains that the country has to protect the interests of the poor and vulnerable farmers, and take care of its domestic food security needs.

FM says India's stand on MSP unchanged despite objection from some WTO members

Some WTO members have raised concerns over the country's MSP scheme on key agricultural products, as well as the recent export restrictions on commodities such as rice, citing that it distorts market prices.

India to implement approved solar module maker list in April: RK Singh

The move is likely to boost domestic solar module manufacturers.

Rule to compensate consumers for gratuitous load shedding must be implemented by state power regulators: RK Singh

"State governments are free to declare subsidies but they have to be paid for. Power is not free and it has to be paid for," the Union minister said.

Railways gave Rs 59,837 crore subsidy on passenger tickets in 2019-20: Minister

The minister said concessions on top of this subsidy are still being provided to many categories such as divyangjans, students and patients, but did not clarify if the government is planning to restore the earlier discount given to those above 60 years of age.

Budget 2023: A renewed push for green mobility, lithium-ion cell machinery gets duty exemption

The Budget 2023-24 extended duty exemption to the import of capital goods and machinery required for making lithium-ion cells for batteries used in EVs, which is expected to being down cost of EVs

Budget Snapshots: Subsidies eat up around a fifth of central government revenues

Why is free food provided to around three fifths of the population, when the poverty ratio is much lower?

Huge subsidies by some developed nations on green hydrogen distorting trade: RK Singh

As one of the world's biggest greenhouse gas emitters, India is betting on green hydrogen to help cut its emissions, and enable it to reach its target of achieving net-zero carbon emissions by 2070.

India aims for $17 billion cut in food, fertiliser subsidies in 2023/24: Report

Food and fertiliser subsidies alone account for about one-eighth of India's total budget spending of 39.45 trillion rupees this fiscal year

India should consider energy and interest rate subsidies to ensure growth doesn’t falter

Subsidies can upset the fiscal balance. But the government has a bit of cushion available right now in the form of buoyant revenue collection, particularly GST

Don't depend on small incentives, subsidies; increase competitiveness: Piyush Goyal to industry

Ambitious targets of exports should not be affected by "small support subsidies and incentives. That has been the bone of contention between some services sectors and the government," Goyal said.

States must curb freebies to spend more on expanding their economies

The short-term benefits of freebies get offset by higher taxes and other costs arising from the low priority accorded to infrastructure creation. Lower investment in infrastructure creation means fewer jobs, continuing inefficiencies in the economy and depressed future revenue growth

Feed the world? India has a chapati crisis brewing at home

Had India not closed its markets, the country might have faced a shortage of chapatis. People, rich or poor, don’t consume wheat; they buy flour to make chapatis

China in talks with automakers on EV subsidy extension

The move by policymakers comes as the world’s second-biggest economy has slowed sharply – and auto sales along with it – after cities led by Shanghai imposed tight COVID-19 lockdowns from March. The curbs have shut stores, disrupted supply chains and slashed spending, including on new homes.

As political parties compete to offer freebies, who will foot the bill?

The larger question is how can governments with perennial problems of revenue deficit underwrite the cost incurred through subsidies and freebies

Budget 2022 | In election year, subsidies slashed 27% to Rs 3.18 lakh crore

Budget 2022 | Finance minister Nirmala Sitharaman’s fourth budget has instituted broad cuts in subsidies for food, fertiliser and petroleum, just weeks before Uttar Pradesh, Punjab and Goa go to the polls. Experts expected subsidies to rise as the economic churn and inflation continued two years into the pandemic.