ELECTION EXPENDITURE
Fiscal deficit hits 3% of full FY25 target in April-May at Rs 50,615 crore
India's fiscal deficit for April-May reached approximately 3% of FY25's target, totaling Rs 50,615 crore. PM Narendra Modi's third term priorities include tackling agricultural distress, job creation, sustaining capital expenditure, and enhancing revenue growth for fiscal consolidation. S&P upgraded India's sovereign rating outlook to positive, contingent on fiscal discipline
Dow closes at a one-month high as investors broaden portfolios
The Dow reached a one-month high, but the Nasdaq fell over 1% as investors shifted from AI-linked stocks. Federal Reserve rate cuts were anticipated, impacting market movements.
Market Moves: Ashi Anand’s take on Indian IT and auto sectors
Ashi Anand, Founder and CEO of IME Capital, provides an in-depth analysis of the Indian IT and auto sectors. Anand highlighted the persistent strength in deal wins across IT companies despite weaker-than-expected revenue growth, attributing this to reduced discretionary spending.
Road construction down by 12.1% to 1288 km in the current financial year up to May 2024
As per the monthly update, released the ministry of road transport and highways (MoRTH) on Wednesday, the capital expenditure incurred during the period stood at Rs 57,925 crore till May 2024, which is 42.5% of the capital outlay under the vote on account provision for the first five months of 2024- 25.
What does Nigel Farage promise in his ‘contract’? Is it economically feasible?
The Reform UK Party promises to end all non-essential immigration and proposes steep cuts in personal income tax rates and other direct taxes. He is not expected to win the upcoming parliamentary elections in July.
ETMarkets Smart Talk: Agri, consumer durable & insurance could be dark horse of FY25: Kush Gupta
Elections in the past have always led to sharp movements pre and post-event, but history has shown that the markets finally stabilize one to six months post-event.
Harsh Gupta Madhusudan on key indicators to monitor ahead of Budget
I think that there should be some more not exactly freebies or welfare, but something more attuned towards consumption and we were already seeing that even in the financial markets. I gave you the number of top line, the most obvious data point to check directly FMCG sales.
Modi 3.0: Growth sequel starring jobs, investment
The full budget, likely to be presented early in July, will detail specific measures toward this end. "The focus would be to promote labour-intensive growth that will create jobs, with continued emphasis on macroeconomic stability," a top government official aware of the details told ET. A host of measures on startups and taxation - including inverted duty structure correction, along with GST rate rationalisation - is under discussion, said the person cited above.
India has made huge strides, but the new govt still has a lot to do
The past decade in India has seen significant transformations in infrastructure, economic reforms, and digitization, laying the groundwork for sustained growth. The challenge for the new government is to maintain an 8%-plus growth rate and increase per capita income. To achieve this, private investment must drive growth, with investments rising to 32-35% of GDP. Scaling up manufacturing, outcome-oriented skill development, supporting women and youth entrepreneurs, reforming municipal governance, realizing tourism potential, accelerating R&D, and addressing urban challenges are key areas for action.
‘Make in India’ under a cloud takes shine off manufacturing
Investors sold manufacturing and infrastructure shares amid concerns over the BJP-led coalition government's performance in the elections, impacting stock indices and specific companies. Analysts suggest a cautious approach towards investments in these sectors.
View: Bye, Bye PSUs, Capex Plays
State-owned companies' valuations, capital expenditure beneficiaries, and Aatmanirbhar supporters face a downturn post electoral results, impacting markets. Midcap and smallcap indices plummet over 10% amid fears of excessive valuations. The market's euphoria pre-elections led to inflated valuations, especially in the defense sector.
Economists project continued economic momentum and stability after India reports robust GDP growth in Q4
India's economy experienced a 7.8% growth rate in the January-March quarter, surpassing expectations due to strong performance in the manufacturing sector. The GDP growth in the fourth quarter of FY24 was slightly lower than the revised 8.6% growth in the previous quarter. Economists are optimistic about sustained momentum throughout the year, with the gap between GDP and gross value added (GVA) expected to normalize from the second quarter of FY25.
India utilised 99.9% of its capex target in FY24
India has used Rs 9,48,506 crore in its capital expenditure in FY24, up from the revised estimate of Rs 9,49,555 crore. The government plans to narrow its fiscal deficit to 5.1% in FY25 from 5.8% in FY24. Private capex is expected to be an important driver of growth and job creation. India's GDP growth was 7.8% in Q4 of FY24, and the overall growth rate is now estimated to be 8.2%.
Dalal St is likely pricing in a Modi 3.0 but election winners already have a bitter household burden
India's stock market hit an all-time high last week, as investors anticipate a third term for Prime Minister Narendra Modi will boost corporate profits. However, consumer debt poses a significant risk. Slow wage growth, high interest rates, and heavy borrowing have strained spending for over 300 million families. Despite this, investors expect post-election growth in private capital expenditure and infrastructure projects
FY25 capital expenditure outlay may be hiked by 10%
India may increase FY25 capital expenditure by 8-10% from the ₹11.11 lakh crore vote on account allocation, boosted by better tax revenue and a record RBI surplus transfer. The full budget, awaited post-election results on June 4, could see a surge in spending, as per a senior official.
GDP likely expanded 6.8% in Q4; FY24 print may hit 7.8%
The strong March quarter print could lift overall gross domestic product (GDP) growth for the full fiscal year to 7.8% against 7.6% assessed in the government's first advance estimates released in February. The International Monetary Fund (IMF) has also forecast 7.8% growth for FY24. The government will release fourth-quarter growth numbers and provisional GDP data for FY24 on May 31.
Money matters in Indian elections but it is no guarantee for victory
Research on electoral funding provides interesting insights into the role of personal wealth on electoral outcomes. Money becomes less important when there is a wave. An important aspect of Indian elections is that ruling parties face anti-incumbency. Incumbents, because of their position, have more resources and money. But they are routinely defeated.
Record-breaking election spending set to ignite rural demand, feel experts
Anticipation is high for the 2024 Lok Sabha polls with record-breaking expenditure projected. Industry experts foresee a boost in rural spending post-election, influencing the FMCG sector positively. Various factors are expected to drive economic growth in rural India.
2024 LS polls pegged as costliest ever, expenditure may touch Rs 1.35 lakh crore: Expert
PM Modi's BJP dominates the Rs 1.35 lakh crore 2024 Lok Sabha elections with notable spending circumvention and professional agency engagement like Dentsu Creative.
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