NATIONAL POLICY
Union Budget: What lies ahead in Budget 2024 for indirect taxes?
Budget Expectations: The upcoming Union Budget by NDA 3.0 is highly anticipated for its economic and social welfare policies to rejuvenate India. The budget is expected to focus on infrastructure, healthcare, education, job creation, and tax reliefs. Indirect taxation, including GST, will be a key area of scrutiny, with potential adjustments to customs duties and the introduction of production-linked incentive schemes. The industry eagerly awaits measures to streamline compliance processes, boost revenue, and support the Make in India initiative.
Pakistan imposes ban on wheat import, flour export
The Pakistan government has banned the import of wheat and the export of flour as of Friday. This measure is to regulate the country's wheat market, according to a notification from the Ministry of Commerce, reported Ary News. The decision follows an assessment showing that Pakistan had imported more wheat than necessary, resulting in a surplus.
Monetary policy will anchor India's growth ambitions, said RBI DG Michael Patra
The role of monetary policy will be crucial in navigating India's inflation rate with global levels which will help preserve both the internal and external value of rupee, Patra said in a speech at the mid-career training programme for officials of the Indian Administrative Service (IAS) at the Lal Bahadur Shastri National Academy of Administration, Mussoorie.
New Recruitment Policy: CISF and BSF set aside 10% constable jobs for former Agniveers
India's government has allocated 10% of CISF and BSF constable positions for former Agniveers under the Agnipath scheme, aimed at rejuvenating security forces with younger recruits. This move follows debates in Parliament over the scheme's effectiveness. CISF and BSF directors detailed the recruitment process, highlighting exemptions and age relaxations for ex-Agniveers. The initiative aims to integrate experienced personnel into critical security roles, reflecting the government's commitment to strengthening national security.
Work contracts on GeM mulled, platform to become world’s largest govt procurement portal
GeM, led by CEO Prashant Kumar Singh, aims to surpass South Korea’s KONEPS by integrating construction contracts. FY24 procurement hit Rs 4 lakh crore, and FY25 Q1 reached Rs 1.24 lakh crore, with ministries and CPSEs, contributing Rs 91,000 crore. Nearly completed stakeholder consultations focus on a Unified Procurement System. MSME transaction charges were lowered to 0.3% with a Rs 3 lakh cap.
China consumer prices inch up but deflation pressure lingers
In June, China's consumer prices rose slightly by 0.2% year-on-year, marking the fifth consecutive month near zero, highlighting ongoing deflationary challenges hindering economic recovery. Meanwhile, factory-gate prices remained in deflation, declining 0.8% year-on-year. Economic disparities persist with manufacturing showing resilience amid weak consumer spending due to a real estate downturn and job market struggles. The risk of prolonged deflation poses concerns, potentially dampening consumption and business activity unless domestic demand rebounds significantly. Policymakers may consider monetary easing measures to stimulate growth, pending global economic developments and domestic conditions.
Dollar firm on Powell caution, kiwi bides time before rates decision
The dollar strengthens after Powell's cautious rate cut comments. Traders await central bank signals. RBNZ likely to keep rates steady. Market uncertainty persists. Currency movements remain subdued. Powell to address House next. CPI data for June awaited.
Education Ministry reviews guidelines for implementation of bagless days in schools
The Ministry of Education reviewed NCERT guidelines for implementing bagless days in schools, aiming to make learning more experiential and stress-free. Suggestions include teaching students about local ecology, testing water purity, and visiting local monuments. The PSSCIVE will fine-tune its guidelines based on the review. The National Education Policy recommends a 10-day bagless period for grades 6-8, focusing on skill-building and engaging activities outside traditional classrooms.
France shifts to the left, but risk of policy paralysis looms
France's parliamentary elections resulted in a hung parliament, with the leftist New Popular Front (NFP) blocking Marine Le Pen's far-right surge. President Macron's centrist alliance faces a weakened position, complicating government formation and policy-making. With no clear majority, France's political future remains uncertain, just weeks before hosting the Olympic Games
'Jobless growth': Congress slams govt over 'accentuated unemployment crisis'
The Congress criticized the Modi government for exacerbating India's unemployment crisis due to failed policies like demonetization and GST. Citing a Citigroup report, they highlighted the urgent need for job creation and reforms to address the high unemployment rates in the country.
2015 skilling policy to be replaced with new one
A new policy on skilling in India, drafted by BCG, aims to create a skilled workforce to meet global demands, aligning with the government's vision and demographic dividend.
Budget 2024 will see many historic economic policies, will be a futuristic one: President Murmu at Parliament
In her address to Parliament, President Droupadi Murmu announced that the upcoming Union Budget will introduce historic economic policies and reforms at an accelerated pace. Highlighting India's contribution of 15% to the global economy, she emphasized that this budget will reflect the government's long-term policies and futuristic vision. Finance Minister Nirmala Sitharaman is set to present this Union Budget in July 2024.
Focus on upcoming Budget: Policy in the works on finance, health support for elders
India is considering policy measures for senior care, including expanding healthcare access through Ayushman Bharat, revising pension under the Indira Gandhi scheme, and providing healthcare under NPHCE.
Job creation is India's top economic challenge, policy experts say
According to a poll of policy experts by Reuters, tackling India's chronic joblessness will be the biggest challenge for the government over the next five years, despite the country's status as the world's fastest-growing major economy. The economy grew more than 8% last fiscal year, but this growth has not translated into sufficient job creation, particularly for young people. The recent parliamentary elections saw Prime Minister Narendra Modi's BJP losing its majority, partly due to issues such as widening inequality, inflation pressure, and a lack of well-paying jobs.
Economists expect big-bang reforms to continue under Modi 3.0
Modi is set to be sworn in for third term as India's Prime Minister in coalition government with key partners Telugu Desam Party and Janata Dal (United). Economists anticipate focus on economic reforms to achieve goal of Vikshit Bharat by 2047. Budget to prioritize infrastructure, manufacturing, and welfare schemes amid global economic challenges.
Lok Sabha results won't force India's budget to make significant policy shifts: Fitch
Fitch Ratings anticipates minimal policy shifts in India post-election losses. The upcoming July budget will detail economic reform plans and fiscal goals for the next five years, crucial for addressing fiscal metrics, reducing debt, potential deviations from capital expenditure commitments, the risk of heightened social spending, progress in judicial reforms at the state level, and reforms in the manufacturing sector.
BJP-led NDA's narrow majority shifts focus to rural spending and increased private investments
The recent election results in India saw the ruling BJP-led NDA secure a majority, though narrower than expected. A Bernstein report predicts increased focus on direct social schemes, especially in rural areas. Private sector investments are expected to drive the capex cycle, with implications for economic growth and market dynamics. Market volatility is anticipated due to policy uncertainty, while financials remain a key sector.
Modi retaining power under changed circumstances to make reforms challenging: Economists
Economists warn that PM Narendra Modi's retention in power after the general elections under 'changed circumstances' will pose challenges for implementing critical reforms.
New govt to inherit strong economy, focus on making India developed nation by 2047
India's record-breaking economic growth rate and strong tax revenues provide a foundation for future reforms aimed at transforming the country into a developed nation by 2047. The new government must address challenges such as unemployment and rural distress, while also focusing on controlling inflation. Despite potential obstacles, experts expect continued infrastructure-led growth, investor-friendly policies, and reforms to maintain India's economic momentum and attract investment.
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