RISING DISPOSABLE INCOME
Raise the Spirits: Whisky and rum dominate India's rising thirst for premium alcohol
India's alcohol beverage market has evolved beyond sheer volume, now ranking 5th globally in revenue contribution at 3.1%. Alongside China, it offers substantial volumes while showing a growing appetite for premium products amidst rapid urbanization and youthful aspirations. The industry spans 736 million 9-litre cases, predominantly led by brown spirits like whisky and rum. Indian single malts hold a significant share domestically and are poised for increased exports. Despite challenges like complex state-level regulations, the sector supports millions of livelihoods and contributes significantly to state revenues, urging for streamlined policies to foster growth and investment.
Income tax cut in Union Budget 2024: India’s middle-class is asking for it but may not get it
BUDGET TAX RELIEF: Despite yearly budget hopes, India's middle class likely faces disappointment again over tax cuts amidst inflation. Both citizens and industry seek relief, especially for lower-income earners. However, there is a chance that fiscal prudence approach may prevent tax benefits. Focus remains on growth via targeted schemes. Economists debate the efficacy of tax cuts on boosting consumption, with rural demand still rebounding.
More tax savings from NPS in Budget 2024? Expect employer's share to rise to 12%, additional Rs 50,000 NPS deduction in new tax regime
NPS changes in Budget 2024: Currently, the deduction in respect of the employer’s contribution (capped at 10%) to NPS is allowed under both the old tax regime and the new tax regime. The government may consider at increasing this limit to 12% (aligned with the exemption of employer’s PF contribution up to 12%). Another proposal is to introduce the additional deduction of Rs 50,000 under the new tax regime. Will Budget 2024 make NPS and new tax regime more attractive for investors? Read on
US inflation cools in May, boosting hopes of Fed rate cut
May's stable inflation, influenced by service costs and goods prices, sets the stage for potential Federal Reserve interest rate changes. The report highlights slight consumer spending growth and hints at the Fed's aim for a controlled economic slowdown through core inflation moderation.
US inflation cools in May; consumer spending rises moderately
ART HOGAN from B RILEY WEALTH notes the stable 2.6% core PCE, potentially leading to Fed rate cuts. The overall economic indicators suggest a favorable environment for equities, with ongoing downward trends in treasury yields.
Investing in commercial real estate: How to earn attractive regular income by investing in commercial real estate via fractional ownership platform
As fractional ownership gains traction and becomes increasingly popular, retail investors must run a few checks before investing in CRE assets via this route. Here are some factors that one must consider.
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Kinara Capital's resilient model gives it 51% profit rise despite distress in fintech sector
The fintech company has been profitable even when the customer segment was disproportionately impacted, says Hardika Shah, Founder & CEO of Kinara Capital. She says this has happened on the back of a balanced business model and strategic planning.
Global demand revival: How is India poised?
As the global demand sees some revival, India must get its act together to make the most out of it.
US Fed's favored inflation measure remains unchanged in April
The US Federal Reserve's key inflation gauge, the PCE price index, remained steady in April, indicating that interest rates are likely to stay high throughout the summer. Services prices, a major factor, remained elevated. The current inflation trend reduces the likelihood of early rate cuts and complicates President Joe Biden's reelection message on the economy. Despite expectations of moderating inflation later in the year, Fed officials, like New York Fed President John Williams, see no urgency in changing policy now. Personal income eased slightly in April, with personal savings remaining steady.
Euro zone inflation rises higher-than-expected in May just as ECB prepares to cut rates
Euro zone inflation increased more than expected in May, reaching 2.6% year-on-year, nudging away from the European Central Bank's 2% target. Core inflation rose to 2.9%, with services sector prices up to 4.1%, driven by strong wage growth. The ECB faces a cautious path in managing inflation amid ongoing economic uncertainty.
Dividend income fuels surge in personal income tax: Motilal Oswal report
The transition from corporation-based dividend taxes to personal income taxes has been a major driver of the increased PIT in recent years. This shift has not only changed the tax dynamics but also underscored the substantial contribution of high-income earners to the tax pool through their dividend receipts.
SUVs roar on country roads as sales from rural India sees a spike
Hyundai Motor's top three cars sold in rural India during January-April 2024 were all SUVs, nudging out the small car Grand i10 from the podium for the first time. SUVs such as Exter, Venue, and Creta accounted for two-thirds (67%) of Hyundai's rural sales in the first four months of the calendar year.
Jyothy Labs Q4 Results: Net profit rises 32% YoY to Rs 78 crore
Homegrown FMCG firm Jyothy Labs Ltd on Wednesday reported a 31.9 per cent increase in consolidated net profit to Rs 78.15 crore in the March quarter. The company had posted a consolidated net profit of Rs 59.26 crore in the same quarter a year earlier, Jyothy Labs Ltd said in a regulatory filing.
A big consumer tide is coming to India. Who all will rise?
India is poised to become the world's third-largest consumer market by 2026, surpassing Germany and Japan. UBS forecasts a doubling of affluent individuals with annual incomes exceeding $10,000 to 88 million by 2028. Household spending per capita in India is projected to outstrip other Asian economies, with rural and urban consumption expenditures witnessing significant growth over the past decade, according to recent reports.
HSBC has no plans to dispose of further businesses, says chairman Mark Tucker
HSBC's chairman Mark Tucker reassured shareholders at the annual meeting that the bank has no immediate plans to sell more assets, signaling a shift in strategy for the banking giant. This comes after CEO Noel Quinn's unexpected retirement and a series of asset sales in Western markets as HSBC refocuses on its Asian operations.
Morgan Stanley Q1 Results: Profit rises as investment banking rebounds
Morgan Stanley's first-quarter profit beat estimates on Tuesday, fueled by a resurgence in investment banking led by equity underwriting where revenue more than doubled, sending its shares up 3.8% before the bell.
Unemployed graduate? If you are struggling to find your first income, here are 6 ways to navigate this challenge
If you have recently graduated and are struggling to find your first income, here’s how you can navigate this challenge.
Rising disposable income giving a thrust to connected cars in India
In the midsize SUV market, currently two-thirds of sales are from models like Hyundai Creta, Toyota Urban Cruiser Hyryder, Maruti Suzuki Grand Vitara and Kia Seltos, all of whom offer hi-tech features such as anti-collision, assistance to maintain lanes while driving and geofencing that creates a virtual boundary of a car using GPS technology and alerts the owner if the vehicle enters or exits the set perimeter.
India's used car market size to touch $100 billion-mark by 2034: CARS24 CEO
The growth trajectory of used car business is propelled by various factors unique to the Indian market, including urbanisation and a growing middle class, which is changing consumer preferences and boosting the demand for affordable mobility solutions, Vikram Chopra said.
Wine imports rise sharply this fiscal
India imported $170.48 million worth of wines in this fiscal year from April till October, compared to $35.03 million in the entire financial year ended March 2023. Wine imports stood at $19.61 million in FY20. India imported $ 23.85 million worth of wines in financial year 2022.
Luxury car sales in India surge to record high, up 20% YoY
Luxury car sales in India reached a record high of 42,731 units in 2023, up 20% YoY. The increase is attributed to a lifestyle change after Covid-19, with younger professionals opting for high-end cars. The trend is expected to continue due to rising disposable income levels. The growth potential of this segment is significant, given the low penetration of the segment.
Income Tax in Budget 2024: Will standard deduction limit be hiked from Rs 50,000 to help salaried taxpayers?
Standard deduction hike in Budget 2024: It has been almost 5 years since standard deduction was revised; the previous instance was in 2019. There are many compelling reasons to raise the limit of the standard deduction from Rs 50,000. Standard deduction, needs to be periodically adjusted to account for inflation, says Akhil Chandna, Partner, Grant Thornton Bharat. Though 2024 will see only an interim budget, middle-class taxpayers are eagerly hoping FM Nirmala Sitharaman will roll out some tax sops. Will the Budget 2024 raise standard deduction from Rs 50,000?
Pick up in consumption contingent on controlling inflation: India Ratings & Research
"One percentage point reduction in inflation will lead to 64 basis points increase in GDP or 1.12 percentage points increase in PFCE (Private final consumption expenditure) growth... If inflation can be brought down by 1 percentage point, it would be a win win," India Ratings and Research Chief Economist Devendra Kumar Pant said in an interview.
View: Post-Covid recovery of poor households exceeds expectations. But many still need a leg-up
The recovery was aided by benefits received through welfare schemes of both state and central governments, which helped bolster support for those households that lost their earnings due to the pandemic. However, financial inclusion at the bottom of the pyramid needs to be enhanced to ensure they are not overwhelmed by informal debt.
Cash may still be king despite pick up in digital transactions
The precautionary behaviour in cash usage is also evident from the excess financial savings of households, which rose to 15.5 per cent of the Gross National Disposable Income (GNDI) in 2020-21 from 11.7 per cent a year ago. The analysis also suggests that for transaction purposes cash is being increasingly substituted by digital means.
Sensex zooms 635 points after 6-day fall. 6 factors behind the U-turn
All major sectoral indices logged gains. Nifty PSU Bank surged 4.1%. Bank of India, Canara Bank. Nifty Auto, Nifty Financial, and Nifty IT also rose over 1% each. The more domestically focussed small and midcaps rose 2% and 1.5%, respectively.
How the middle class will play the hero in India's rise as world power
Imagine desi companies easily growing into global biggies supported by vast domestic scale. Growing disposable incomes, along with the rise of the middle class, will make India a consumption powerhouse.
Mall operators' rental income to rise 8-10% in FY24: ICRA
Retail mall operators in India are expected to see an increase of 8-10% in rental income from a year ago in FY2023-2024, according to ratings agency ICRA. This will be driven by a predicted 4-5% improvement in trading values, with sales for jewellery, electronics, apparel and food, beverages, and entertainment segments expected to be healthy. Rental rates are also expected to increase by 3-4% due to contracted escalations and lease renewals at higher rates.
Personal income tax to GDP ratio rises to 2.94 per cent in FY22
Personal income tax as a percentage of GDP has gone up from 2.11 per cent in 2014-15 to 2.94 per cent in 2021-22 fiscal, indicating that taxpayer base is widening as a result of the steps taken by the present government led by Prime Minister Narendra Modi.
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