FISCAL INTERVENTION
India steel, trade ministries in talks over rising Chinese imports
India's steel and trade ministries are discussing the increasing imports of steel, especially the influx of cheap Chinese goods, according to a government source. The talks come amid ongoing requests from top producers for higher tariffs. India became a net steel importer in the fiscal year ending in March, with finished steel imports reaching a five-year high in April and May, based on provisional government data.
Priyank Kharge meets IT minister Ashwini Vaishnaw, requests Centre's support for state's chip firms
Karnataka IT minister Priyank Kharge met Ashwini Vaishnaw, union IT minister, to seek support for the state's semiconductor and electronics space. Kharge said that the State has the highest share of 46% in India in housing innovative companies and contributes 10% of India's industrial output.
Govt steps help boost toy exports, manufacturing; more work needed: DPIIT Secretary
In the interim Budget in February, the Commerce and Industry Ministry has recommended an outlay of Rs 3,489 crore for the Production Linked Incentive (PLI) scheme for toys to boost domestic manufacturing of the sector.
Will RBI start cutting interest rates from October? Dr Samiran Chakraborty answers
In Citi's house view, we think that the Fed rate cut will start early, so we have put our first RBI rate cut in October, to some extent also factoring that in that if Fed moves earlier, then RBI gets the scope to move as well.
New govt likely to vote for populism in budget
With the Lok Sabha election results hinting at a coalition government, economists anticipate a populist Budget focusing on welfare schemes for the upcoming fiscal year.
HUL-owned Oziva posted Rs 44 crore loss on Rs 104 crore revenue in FY24
In FY23, OZiva had posted a net profit of Rs 58.3 crore, as it benefitted from a one-time gain of Rs 95.5 crore during the year. Its operating revenue for the year was Rs 99.3 crore.
View: Your first 100 days to-do list, Gov
The upcoming government will have its work cut out for it as it steps into power following the conclusion of the 18th Lok Sabha polls. While the current administration has made strides in improving the business environment in India, there are key reforms that the new government must prioritize to fully capitalize on the country's growth potential.
RBI dividend will have economic dividends
RBI came into this windfall because of high interest rates in advanced economies, which may persist before an eventual cyclical inversion. The strength of India's recovery from the pandemic also contributed to the RBI surplus, and monetary policy would be inclined to pursue this course by easing interest rates ahead of the pack. Inflation is offering comfort on the demand side for an interest rate downcycle. Food inflation, less amenable to demand management, remains a concern.
How will RBI's Rs 2.11 lakh cr dividend payout to government help Indian economy? A Balasubramanian answers
So, I think combination of these two things put together have made RBI to come with about highest ever dividend, especially at a time where the market is also generally getting, not market, in general, the bond market keeps a very close eye on fiscal numbers.
Swaminathan Aiyar wonders how RBI managed to give Rs 2.1 lakh cr dividend to govt, says it will make a huge difference to July Budget
Finance Minister aims to reduce fiscal deficit from 5.8% to 4.5% in two years, relying on non-revenue RBI transfer. This strategy facilitates reaching 5.1% deficit this year. Challenges remain in sustaining revenue deficit reductions alongside fiscal targets. Aiyar says it is not very clear at this point what has resulted in this rise in the RBI dividend. Once we have greater clarity on that, we will be able to find out what are the consequences for different parts of the economy.
China shares soar, Japan slides as yen pinned near intervention zone
Chinese shares led a rally around most of Asia on Monday amid a broadly optimistic global economic backdrop, but Japanese shares tumbled with the yen pinned near levels that have traders on guard for a currency intervention.
China shares jump, Japan tumbles with yen pinned near intervention zone
U.S. stock futures also pointed firmly higher following a market holiday on Friday, when the Federal Reserve released data showing their preferred inflation measure indicated price pressures are further easing, bolstering bets for a June interest rate cut.
Next generation reforms to avoid middle-income trap: Suman Bery
In an interview, NITI Aayog vice chairman Suman Bery discusses the impact of staying on the "fiscal glide path" on India's credit ratings and private investment. He praises the finance minister for staying the course on fiscal consolidation, which provides headroom for the Reserve Bank of India and impacts the credit ratings of corporates and banks. Bery notes that the timing is right for a huge capex cycle in the private sector and emphasizes the need for regulatory reforms, decentralization, and freeing up sectors like agriculture and energy. He also mentions the importance of transparency in land markets, digitization, and artificial intelligence. Additionally, Bery highlights the challenge of a growing population and the progress made in reducing multidimensional poverty, but suggests that more significant measures may be included in the full budget.
Budget 2024: A pressing issue that may not wait till full budget
The fiscal deficit target of 5.3% will be set by the government in FY25, keeping in view the fiscal consolidation path till FY26, as it normalises capital spending and refrains from any major announcements in the interim budget before the general elections, Icra and Barclays economists have said. ICRA expects the fiscal deficit target for FY25 to be set at 5.3% of GDP, midway through the expected print of 6.0% for FY2024 and the medium-term target of sub-4.5% by FY26.
Budget 2024: Govt may go for big hike in PM-Kisan payout and a housing & jobs push
Union Budget 2024: The government will likely increase the amount of money transferred under its flagship direct benefit transfer scheme - Pradhan Mantri Kisan Samman Nidhi or PM-Kisan - by about 50% to ₹9,000 per year from the current ₹6,000, said some of the economists polled.
Government needs to keep doing high quality capex even while controlling top line spending: Neelkanth Mishra
Neelkanth Mishra, Chief Economist at Axis Bank, believes that the Indian government may have extra cash in hand this year, resulting in lower borrowing for the next year. While the growth in capital expenditure may slow down, there should still be room for it as subsidies and basic expenditures like salaries and pensions are expected to decrease. Mishra also expects the government to continue its focus on macroeconomic stability and prioritize stability for growth.
Insurtech startup Acko aims to achieve profitability by fiscal year 2027
Acko is eyeing profitability on the back of its general and health insurance segment turning earnings positive, founder and CEO Varun Dua said in an interview with investment bank UBS Global. Recently, Acko floated its life insurance company focussing on the sale of term plans, which is currently in the beta stage.
Mahindra expects to sustain growth momentum in SCV segment next fiscal
Mahindra & Mahindra expects to maintain growth in the small commercial vehicles segment next fiscal year by continuously refreshing its range according to customer needs. The company recently introduced the new Supro Profit Truck Excel series, available in diesel and CNG Duo variants, and priced between Rs 6.61 lakh and Rs 6.93 lakh. The company plans to introduce air conditioning to its pick-up range in the near future.
RBI's forex interventions used to manage volatility, not fix rupee level: Das
He also said there is a need to fully understand cryptocurrency risks before it is legitimised. Das said emerging markets always face spillover risks and India took a conscious decision to build buffers against these risks.
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