GLOBAL TAX HEAD
China's GDP growth dips: Where is its economy headed?
China's GDP growth in the second quarter was 4.7%, below the expected 5.1%. The slowdown raises concerns about economic stability and calls for measures to stimulate growth. IMF projects a gradual slowdown in growth due to various factors including ageing population and property sector crisis. Policy meeting aims to outline strategies for promoting advanced manufacturing and boosting domestic consumption. Structural reforms are suggested to enhance productivity and address economic imbalances.
UP gives Maruti a head 'start' in strong hybrids
Maruti Suzuki India saw a nearly 7% surge in its stock price following Uttar Pradesh's decision to waive registration levies on strong hybrid and plug-in vehicles. This move, aimed at promoting greener mobility choices alongside electric cars, is expected to reduce ownership costs by 10%. Maruti, already a leader in the strong hybrid category, stands to benefit significantly. This policy shift reflects a broader trend among states to incentivize alternative technologies like biofuels and hybrids, aiming to make them more attractive and cost-effective compared to traditional petrol vehicles.
Chorus grows for angel tax repeal; policy push for EVs
Startup Inc’s calls to do away with angel tax have found support from the government. This and more in today’s ETtech Top 5.
UK election-winner Starmer inherits weak economy with 'no magic wand'
Living standards have stagnated since Conservatives took power in 2010 and Britain's recovery from the COVID pandemic has been the weakest among big rich nations after Germany. Starmer will be under pressure to use Labour's huge majority in parliament to end the sense of decline, from creaking public services and inflation-hit personal finances to a shortage of housing and weak business investment.
Nervous investors tear up ESG playbooks in election supercycle
In 2024, global elections spark an anti-green trend affecting ESG investments. Marine Le Pen and Trump's influence reshape the environmental landscape. Utility stocks gain prominence amidst shifting policies and investor sentiments.
Industry pitches for tax reduction, rationalisation of duty structure in Budget
During a pre-budget meeting with Finance Minister Nirmala Sitharaman, industry representatives urged for reduced indirect taxes and rationalized duty structures. FIEO's Ashwani Kumar requested extending the Interest Equalisation Scheme for five years. Reliance Industries sought a review of tariffs on Chinese imports, and Nasscom pushed for easing transfer pricing rules.
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How a tax sop has created a divide in India's motown
Indian automakers are at a crossroads as they navigate the shift from internal combustion engines to electric vehicles. Consumers are showing a preference for hybrids over EVs, sparking debate among automakers. The government's proposed tax reduction for hybrids has divided industry leaders, with some advocating for incentives solely for electric vehicles. The potential impact on sales volumes and climate goals is a central point of contention.
Budget 2024 may give Indian startups' HQ relocation plans a fresh lease of life
Indian startups domiciled abroad may relocate their headquarters to India via GIFT City, utilizing its SEZ for tax benefits. Amendments this year enabled unlisted firms to directly list on GIFT IFSC. IFSCA aims to finalize GIFT City listing norms by July for August implementation, facilitating e-commerce and tech firms' return like Razorpay, Zepto, Meesho to tap into India's growing stock market and access capital through global listings in GIFT City or specific overseas jurisdictions.
A 60% fall! Does falling FDI call for policy recalibration?
RBI reported a 62% drop in net FDI flows into India to USD 10.6 bn in FY24, the lowest since 2007. Select sectors benefit from the "China+1" trend, attracting opportunistic foreign investments. India requires comprehensive policy recalibration, aligning with sectoral strengths, and genuine market access.
Indian exports: How Modi 3.0 can navigate the protectionist tides in advanced economies like US and EU
India has transitioned from a decade of single-party rule to a new era of coalition politics, causing concern among stock market investors about potential slowdowns in economic reforms. Rising protectionist measures from advanced economies like the US and EU pose challenges for Indian exporters, with stringent regulations on products ranging from chemicals to food items. The impact of these barriers could disproportionately restrict India's economic objectives and competitiveness, particularly in key sectors like textiles and apparel.
Asian earnings growth to outpace US and Europe, India's growth momentum strong: Report
The analysis by CLSA, citing Bloomberg's projections, forecasts that Asian earnings growth will surpass that of the US and Europe for both this year and the next. This positive outlook is in line with the Reserve Bank of India's (RBI) prediction of a robust 7.2 per cent growth rate for India in fiscal year 2025.
Traders stunned by election surprises from Mexico to India
The world witnessed unexpected outcomes in the Mexican elections and Narendra Modi's victory, impacting markets globally. Claudia Sheinbaum's landslide win also played a significant role in reshaping market dynamics.
Insurers lap up GSec derivatives to manage liabilities
Global funds and insurers are showing strong demand for Indian government bonds, particularly ahead of their inclusion in a JP Morgan index. Insurers are increasingly interested in Bond Forward Rate Agreements (Bond-FRA) to manage long-term liabilities, with significant trading activity reported by Clearing Corporation of India (CCIL).
Any further correction in India can spur FII flows: Chris Wood
A lot of the recovery has been the high end of the market. So, the key issue for this real estate market right now is that will the recovery broaden out and the other issue is will there be policy measures to promote the more affordable end of the housing market, that seems to me a possibility.
Surprised by today's market rebound; expect near term caution in capex-led themes: Chris Wood
I think it is a bit premature to assume that because you have still got the horse trading. I mean, clearly the base case is that the current government remains in power with coalition partners and that is not a disaster. But the reality is the great virtue of the last 10 years has been clear government, consistent policies, and not having to worry about horse trading between parties, which is always a feature of coalition governments.
IATA boss warns foreign airlines may quit India if taxation issues are not sorted
The chief of the International Air Transport Association (IATA), Wille Walsh, warned that airlines may withdraw from the Indian market if concerns over taxation are not addressed. Several global airline groups including Emirates, British Airways, Lufthansa, Singapore Airlines, and others have received tax evasion notices from the Directorate General of GST Intelligence (DGGI). The notices were related to non-payment of tax on services provided by the airlines to their Indian entities.
Modi plans post-election reforms to rival Chinese manufacturing
Indian Prime Minister Narendra Modi is planning business-friendly measures if he secures a third term, aiming to boost domestic manufacturing by easing labor regulations, offering subsidies, and reducing import taxes. Modi's vision includes creating industrial zones to attract global firms, but challenges remain with restrictive labor laws, land acquisition, and high import tariffs. His reelection campaign emphasizes economic development and positioning India as a manufacturing hub.
RBI to face problem of plenty: Prepare for bond sales
The RBI's challenge for the year may not be inflation but liquidity. Government spending resumption and overseas fund flows complicate monetary policy effectiveness.
Election uncertainty weighs on Awfis Space Solutions' debut: Should you hold or exit?
Awfis Space Solutions, a prominent participant in India's flexible workspace sector, experienced a respectable listing on Thursday, albeit slightly below expectations. The company's shares debuted at Rs 435, marking a gain of over 13% compared to the issue price of Rs 383.
Awfis Space Solutions shares list at 14% premium over issue price
Awfis Space Solutions Share Price: Awfis Space Solutions lists at 14% premium over issue price with strong investor interest and expansion plans. Financial challenges persist despite revenue growth. Book running lead managers include ICICI Securities, Axis Capital, IIFL Securities, and Emkay Global Financial Services.
Yen's relentless slide revives Japan's interest in structural reforms
Japanese policymakers are focusing on structural economic factors driving persistent yen declines, as market intervention has limited impact on the currency's broader slide.
Awfis Space Solutions GMP: Will there be a decent listing at the bourses today?
Awfis Space Solutions shares are currently trading in the unlisted market at a premium of Rs 125, representing a 27% increase over their issue price. The IPO garnered significant interest, with a subscription rate exceeding 100 times at closing.
What kind of election results would shake up the markets? Seshadri Sen answers
Seshadri Sen discusses the impact of BJP's majority in the upcoming elections on the economy, focusing on manufacturing, infrastructure, and capital goods sectors. sen says the the only negative outcome for the markets is that the BJP falls considerably short of the absolute majority. All other outcomes are largely the same.
Escalating emissions: How Red Sea disruptions are driving up carbon emissions
Many companies had already revamped their supply chains as they navigated COVID-19 disruptions, extreme weather risks, trade protectionism that forced them to change suppliers, and rising freight costs.
Trade strains boost cargo rates at pace recalling Covid ‘chaos’
Global goods trade is rebounding, boosting shipping rates and triggering memories of past disruptions for supply-chain managers.
Besides election results, a bigger worry has emerged for investors
In early May, Sensex plummeted 1,100 points amid rumors of post-election tax changes. An alleged plan to overhaul tax laws and asset class treatments worried investors. Minister Nirmala Sitharaman dismissed the claims, but speculations persist. Jefferies’ Christopher Wood warned of a potential market correction due to capital gains tax adjustments post-elections. The complex capital gains tax system in India continues to fuel speculation and calls for simplification, impacting equity investors and market growth.
Shock election results, tax tweak may trigger equity correction on Dalal Street: Chris Wood, Jefferies
Christopher Wood of Jefferies warns of a potential market correction triggered by national elections and changes in capital gains tax. BJP's expected return to power in the upcoming elections may impact market stability.
We need a clear future growth path to sustain momentum over the next 20-25 years: Neelkanth Mishra
Neelkanth Mishra emphasizes the need for proactive policies and strategic infrastructure development to sustain India's growth amidst evolving global economic challenges, advocating for efficient tax reforms, energy transition, and enhanced construction industry strategies to drive long-term economic prosperity. Mishra says: "At this stage, the problem is dollar shortages and higher rates and therefore the risks are the reverse, but the moment the Fed restarts QE, I think the problems will turn to be on the other side."
IMF's Georgieva warns "there's plenty to worry about'' in world economy -- including inflation, debt
" Inflation is down but not gone,'' Kristalina Georgieva told reporters at the spring meeting of the IMF and its sister organization, the World Bank. In the United States, she said, "the flipside'' of unexpectedly strong economic growth is that it "taking longer than expected'' to bring inflation down.
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