Report Wire

Category: Economy

  • GST Revenue Growth Rate Slows In Sep, Collections At Rs 1.73 Lakh Crore | Economy News

    New Delhi: Goods and services tax (GST) revenue growth rate declined to 6.5 per cent in September at Rs 1.73 lakh crore as the rise in collections from domestic transactions as well as imports slowed.

    However, with the festival season ahead, collections are expected to be better in the coming months, tax experts said. According to government data released on Tuesday, GST revenues in September last year was Rs 1.63 lakh crore, while the In August 2024, the mop-up was Rs 1.75 lakh crore.

    Gross domestic revenue grew 5.9 per cent to about Rs 1.27 lakh crore. Revenue from import of goods was up 8 per cent to Rs 45,390 crore. Refunds worth Rs 20,458 crore were issued during the month, an increase of 31 per cent over the year-ago period.

    After adjusting refunds, the net GST revenue in September stood at Rs 1.53 lakh crore, 3.9 per cent higher than the year-ago period. GST collections during the April-September period of the current fiscal year grew 9.5 per cent to over Rs 10.87 lakh crore.

    PwC India Partner Pratik Jain said while the year-to-date GST revenues (September 2024) grew over 9 per cent, the monthly growth is perhaps less than expected.

    “This may need a closer look by the GST Council, particularly in the wake of rate rationalization exercise. However, with festive seasons coming, the collection for next couple of months might be better,” Jain said.

    Deloitte India Partner MS Mani said the GST revenues for the coming months will be keenly watched as they are also a proxy for the economic growth and can be correlated with the GDP numbers.

    However, the significant increase in GST refunds, especially IGST Export refunds, depicts the efforts of tax authorities in expediting refunds and the policymakers in simplifying the refund process.

    “The tepid single-digit growth in GST revenues in many of the large states should, hopefully, be corrected in the coming months,” Mani added.

    EY Tax Partner Saurabh Agarwal said the significant increase in GST refunds for exports suggests a substantial rise in exports from India. Adding further, the overall increase in GST refunds demonstrates the government’s commitment to timely release funds to support the working capital of exporters and industries facing an inverted duty structure.

  • RBI Finds Irregular Practices In Loans Against Pledge Of Gold Ornaments, Entities Advised To Review Policy | Economy News

    New Delhi: The Reserve Bank of India has found irregular practices in the grant of loans against pledges of gold ornaments and jewelery by some entities. It has thus advised all “supervised entities” to comprehensively review their policies, processes, and practices on gold loans to identify gaps.

    They have been asked to initiate appropriate remedial measures in a time-bound manner. RBI recently reviewed loans pledged against gold ornaments and jewellery.

    The review, as well as the findings of the onsite examination of select supervised entities, indicate several irregular practices. The major deficiencies include shortcomings in the use of third parties for sourcing and appraisal of loans; valuation of gold without the presence of the customer; inadequate due diligence and lack of end-use monitoring of gold loans; lack of transparency during an auction of gold ornaments and jewelery on default by the customer; weaknesses in the monitoring of loan to value (LTV); and incorrect application of risk-weights.

    Against that backdrop, RBI said that the gold loan portfolio should be closely monitored, especially in light of significant growth in the portfolio in certain entities.”It should also be ensured that adequate controls are in place over outsourced activities and third-party service providers. RBI said.

    Action taken should be informed to the Senior Supervisory Manager (SSM) of the Reserve Bank within three months. Any non-compliance with regulatory guidelines will be viewed seriously and will attract, among other things, supervisory action.

  • IPO Market Buzz Continues Next Week With 3 New Public Issues | Economy News

    Mumbai: India’s primary market continues to boom, with three SME IPOs set to launch next week from September 30, and the market will see several main board IPO listings like KRN Heat Exchanges, which received massive subscriptions of over 200 times.

    NeoPolitan Pizza, Foods SME IPO will open for retail investors from September 30 to October 4. Under this IPO, the company plans to raise capital of Rs 12 crore. This entire IPO will be a fresh issue, in which 60 lakh new shares will be issued.

    Paramount Dye Tec SME IPO, opens for subscription on September 30, 2024. Investors can bid for this IPO till October 3, 2024. Its issue size is Rs 28.43 crore. This entire IPO will be a fresh issue, in which 24.3 lakh shares will be issued.

    Subscription of Subam Papers SME IPO will open to the general public on September 30, 2024, and close on October 3, 2024. The issue size of this IPO is Rs 93.70 crore. The issue is entirely a fresh issue of 61.65 lakh new shares.

    Three main board companies will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) next week.

    Manba Finance will be listed on NSE and BSE on September 30. This IPO was open for retail investors from September 23 to September 25. The size of this IPO was Rs 150.84 crore and it was a completely fresh issue.

    The allotment of KRN Heat Exchanger and Refrigeration is expected to be finalized on September 30. The listing of shares will be on NSE and BSE on October 3. This IPO was open for retail investors from September 25 to September 27. Its issue size was Rs. Rs 341.95 crore.

    Diffusion Engineers IPO subscription will close on September 30. Its allotment is expected to be finalized on October 1, 2024. Diffusion Engineers shares may be listed on NSE, and BSE on October 4.

  • Pune Metro Update: PM Modi To Inaugurate District Court To Swargate Line Tomorrow, Lay Foundation Stone For Swargate-Katraj Extension. Railway News

    In Good news for Punekars, the new Metro extension line between District Court to Swargate Line will be thrown open for public on Sunday. Prime Minister Narendra Modi will lay the foundation stone, inaugurate and dedicate to the nation various projects in Maharashtra worth over Rs 11,200 crore at around 12:30 PM on 29 September, through video conferencing. Prime Minister Modi will inaugurate the Pune Metro section of District Court to Swargate which will also mark the completion of the Pune Metro Rail Project (Phase-1).

    The cost of the underground section between the District Court to Swargate is around Rs 1,810 crore. Prime Minister Modi will also lay the foundation stone for the Swargate-Katraj Extension of Pune Metro Phase-1 to be developed at the cost of around Rs 2,955 crore. This southern extension of around 5.46 km is completely underground with three stations namely Market Yard, Padmavati and Katraj.

    “Passenger services on the underground metro corridor from District Court to Swargate will commence on Sunday, 29th September 2024, at 4:00 PM, after the virtual inauguration by Hon’ble Prime Minister Shri Narendra Modi. From 4:00 PM, direct travel from PCMC to Swargate will be available, with interchange options for passengers from Vanaz and Ramwadi stations,” said Pune Metro.

    Inauguration of Passenger Services on Underground Metro Services from District Court to Swargate

    Passenger services on the underground metro corridor from District Court to Swargate will commence on Sunday, 29th September 2024, at 4:00 PM, after the virtual inauguration by… pic.twitter.com/lRh5s6RX7b — Pune Metro Rail (@metrorailpune) September 28 , 2024

    Pune Metro Phase-1 Line

    This brings great relief to commuters from Pimpri-Chinchwad. Prime Minister Modi had laid the foundation stone for the Shivajinagar District Court to Swargate metro line in December 2016, which has now been completed.

    Earlier, on March 6, 2022, the Prime Minister inaugurated two stretches of the metro: from the PCMC headquarters in Pimpri to Phugewadi (7 km with five stations) and from Garware College to Vanaz (5 km with five stations). Later, on August 1, 2022, he inaugurated the extensions from Phugewadi to the District Court, Shivajinagar (6.9 km with four stations), and from Garware College to Ruby Hall Clinic (4.7 km with seven stations).

    Amazing pictures of Pune Metro Prakalpacha Swargate underground metro station…will soon be open for migrant services!

    Iconic views of Pune Metro’s Swargate underground station! Opening soon for passenger services!#ReasonToSmile #Milestone #UndergroundMetroStation… pic.twitter.com/ShBKsxC7oC — Pune Metro Rail (@metrorailpune) September 25, 2024

    On March 6, 2024, Prime Minister Modi inaugurated the Ruby Hall Clinic to Ramwadi stretch, offering further relief to commuters from Pimpri-Chinchwad by providing quick access to Kalyaninagar and Vimannagar, bypassing traffic congestion.

    With the completion of the Shivajinagar-Swargate stretch, Pimpri-Chinchwad commuters can now avoid the chaotic traffic and reach Swargate in just 40 minutes.

    Other Projects On Unveil

    Prime Minister Modi will also dedicate to the nation Bidkin Industrial Area, a transformative project covering an expansive 7,855 acres under the National Industrial Corridor Development Program of Govt. of India, situated 20 kms south of Chhatrapati Sambhajinagar in Maharashtra. The project developed under Delhi Mumbai Industrial Corridor holds immense potential as a vibrant economic hub in the Marathwada region. Central Government has approved this project with an overall project cost of over Rs. 6,400 crore for development in 3 phases.

    Prime Minister Modi will inaugurate the Solapur Airport which would significantly improve connectivity, making Solapur more accessible to tourists, business travelers and investors. The existing terminal building of Solapur has been revamped to serve around 4.1 lakh passengers annually. The Prime Minister will also lay the foundation stone for the Memorial for Kranti Jyoti Savitribai Phule’s First Girls’ School at Bhidewada.

  • Zomato Co-Founder Akriti Chopra Resigns After 13 Years | Economy News

    New Delhi: Zomato’s co-founder and Chief People Officer, Akriti Chopra, has stepped down from her position effective immediately, concluding her 13-year journey with the food delivery giant. The company announced this news to the stock exchange on September 27.

    “Pursuant to Regulation 30 of SEBI Listing Regulations, we would like to inform that Ms. Akriti Chopra, CoFounder & Chief People Officer designated as Senior Management Personnel (“SMP”), has tendered her resignation wef September 27, 2024,”the company stated.

    Chopra joined the company in 2011 as a senior manager of finance and operations. She eventually served as the chief financial officer until 2020, when Akshant Goyal took over that position. Most recently, she held the title of chief people officer at Zomato.

    In her resignation email, Chopra wrote, “Deepi, As discussed, formally sending in my resignation effective today, September 27, 2024. It’s been an incredibly enriching journey over the past 13 years. Thank you for everything. I’m always a call away. Wishing you and Eternal, the very best.” This message was shared on the stock exchange.

  • Govt To Borrow Rs 6.61 Lakh Crore In Second Half Of Current Fiscal | Economy News

    New Delhi: The government on Thursday said it plans to borrow Rs 6.61 lakh crore in the second half of the current fiscal through the issuance of dated securities, including Rs 20,000 crore of Sovereign Green Bonds (SGrBs). The government, in consultation with the Reserve Bank of India (RBI), has finalized its borrowing program for the second half (H2) of FY 2024-25.

    Out of the gross market borrowing of Rs 14.01 lakh crore budgeted for FY 2024-25, Rs 6.61 lakh crore (47.2 per cent) is planned to be borrowed in H2, sticking to the gross market borrowing plans. As per the Ministry of Finance, the gross market borrowing would be completed through 21 weekly auctions.

    “The market borrowing will be spread over 3, 5, 7, 10, 15, 30, 40 and 50-year securities. The share of borrowing (including SGrBs) under different maturities will be 3-year (5.3 per cent), 5 -year (10.6 per cent), 7-year (7.6 per cent), 10-year (24.8 per cent), 15-year (13.2 per cent), 30-year (12.1 per cent), 40-year (15.9 per cent), and 50-year (10.6 per cent),” the ministry said.

    The borrowing program for the government is managed by the Department of Expenditure, which is part of the Ministry of Finance. The government said it will carry out switching/buyback of securities to smoothen the redemption profile. It will continue to reserve the right to exercise the greenshoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notifications.

    In the third quarter of FY25, weekly borrowing through issuance of Treasury Bills is expected to be Rs 19,000 crore for 13 weeks with issuance of Rs 7,000 crore under 91 DTBs, Rs 6,000 crore under 182 DTBs, and Rs 6,000 crore under 364 DTBs, respectively. . In order to fix temporary mismatches in government accounts, the central bank has fixed the Ways and Means Advances (WMA) limit for the second half of FY 2024-25 at Rs 50,000 crore.

  • SEBI Launches Outreach Cell To Help FPIs Seamlessly Access Indian Securities Market | Economy News

    New Delhi: The Securities and Exchange Board of India (SEBI) on Wednesday launched a dedicated Foreign Portfolio Investor (FPI) outreach cell as part of the Alternative Investment Fund and Foreign Portfolio Investors Department (AFD).

    The markets regulator said in a statement that this outreach cell will focus on direct engagement with FPIs, and support them in accessing the Indian securities market seamlessly. Key responsibilities of the outreach cell will include providing guidance to prospective FPIs during the pre-application stage, including assistance with documentation and compliance processes.

    These will also include offering support during the onboarding phase, and resolving any operational challenges that may arise during the registration process or thereafter. FPIs have been bullish on the Indian stock market despite global geo-political uncertainties.

    The month of September witnessed the second highest inflows in 2024 so far, the last one being in March. Data from NSDL showed that till September 17, FPIs pumped net $3,682 million into Indian equities, higher than the net monthly flows in six out of eight previous months in the current calendar year.

    The primary factors that make emerging markets like India a sweet spot, are balanced fiscal deficits, rate cut impacts on the Indian currency, strong valuations, and RBI’s approach to keep inflation under control without a rate cut.

    The ferocity of the FII buying can be noticed in the massive Rs 14,064 crore buying in the cash market on September 20. The trigger for this aggressive buying by FIIs was the 50 bp rate cut by the US Fed, marking the beginning of a rate cutting. cycle. According to market experts, the trend of FII buying is likely to continue in the coming days. Banking stocks have turned attractive after news of reduction in the credit-deposit gap.

  • 10 Thousand Locomotives Will Be Covered By Kavach 4.0 In Coming Years: Ashwini Vaishnaw | Mobility News

    Union Railway Minister Ashwini Vaishnaw on Tuesday inspected the Kavach 4.0 in Rajasthan and said that Kavach 4.0 has started for the first time in India from Sawai Madhopur, adding that in the coming years, 10 thousand locomotives will be covered by Kavach.

    “Kavach 4.0 has started for the first time in India from Sawai Madhopur… The work of installing armor in this area has been completed, this is just the beginning, in the coming years, 10 thousand locomotives will be covered with armor and 9 thousand kilometers of additional armor work will be done,” Vaishnaw told reporters.

    Earlier today, the Union Railway Minister addressed concerns regarding passenger safety in light of the recent stone-pelting incidents on trains. The Minister assured that strict action will be taken against anyone involved in incidents of stone pelting on trains.

    “The whole railway staff is fully aware and in touch with the state governments, including state DGPs and Home Secretaries. Strict action will be taken against anyone involved in such incidents,” Vaishnaw stated during a media briefing.

    The Minister emphasized that the Railways are continuously collaborating with the state police forces to enhance safety measures. “The whole railway staff is fully aware and in touch with the state governments. State DGPs, Home Secretaries. Whoever will be involved in such incidents, strict action will be taken against them. The whole railway is continuously working in this direction along with the state police,” Union Railway Minister said while speaking to the media.

    Vaishnaw also highlighted the significant advancements in railway security, including the introduction of the Kavach system. “For the security of railways, Kavach is a very big development. On July 16, 2024, the Kavach 4.0 version was finalized by the RDSO, and its first installation has been completed from Sawai Madhopur to Kota and Nagda,” he said.

    Kavach is an indigenously developed Automatic Train Protection (ATP) system. It is a highly technology-intensive system, which requires safety certification of the highest order. Kavach aids the loco pilot in trains running within specified speed limits by automatic application of brakes in case the loco pilot fails to do so and it also helps the train run safely during inclement weather.

    Earlier on Monday, the Mahabodhi Express (12397) was targeted in a stone-pelting incident during its approach to Mirzapur station.

  • Kharif Crop Sowing Is Up By 1.5 Per Cent At 1104.63 Lakh Hectares | Economy News

    New Delhi: India’s Kharif crop sowing has progressed significantly, with farmers planting crops across 1,104.63 lakh hectares so far, compared to 1,088.26 lakh hectares last year, marking a 1.5 per cent year-on-year increase.

    This surpasses the average area under cultivation (or normal area) for the period from 2018-19 to 2022-23.Commodity-wise, the sowing of paddy, pulses, oilseeds, millets, and sugarcane has increased year-on-year, while sowing for cotton and jute/mesta has been lower.

    Data showed that within the pulse basket, aside from urad bean, crops such as arhar, moong, kulthi, and moth bean have seen positive growth. India is a major consumer and producer of pulses, supplementing its domestic consumption with imports. The primary pulses consumed in India include chana, masur, urad, kabuli chana, and tur.

    The government has been strongly promoting the cultivation of pulses.In the 2023 Kharif season, the total area under cultivation across the country was 1,107.15 lakh hectares. The normal Kharif area between 2018-19 and 2022-23 is 1,096 lakh hectares.India has three cropping seasons: Summer, Kharif, and Rabi.

    Kharif crops, sown during June-July and dependent on monsoon rains, are harvested in October-November. Rabi crops, sown in October-November, are harvested from January, depending on their maturity. Summer crops are produced between the Rabi and Kharif seasons.Traditionally, Indian agriculture, especially the Kharif season, is heavily reliant on monsoon rainfall.

    The Indian Meteorological Department (IMD), in its first long-range forecast, predicted that the southwest monsoon (June–September) this year would be above normal. Skymet, a private forecaster, also predicted a normal monsoon.

    IMD recently stated that the rainfall across the country during September 2024 is expected to be above normal, at 109 per cent of the Long Period Average.Above-normal monsoon rains, which have helped farmers sow more crops this Kharif season, bode well for agriculture. and are likely to improve the sector’s gross value added (GVA), according to rating agency ICRA.

  • FSSAI Signs MoU With Brazil’s Ministry Of Agriculture And Livestock To Enhance Food Safety Cooperation | Economy News

    New Delhi: The Food Safety and Standards Authority of India (FSSAI) has signed a Memorandum of Understanding (MoU) with Brazil’s Ministry of Agriculture and Livestock (MAPA). The agreement was finalized on Saturday, during the Global Food Regulators Summit held at Bharat Mandapam in New Delhi.

    According to the Ministry of Health and Family Welfare, it was signed by Brazil’s Agriculture and Livestock Minister, Carlos Henrique Baqueta Favaro, and countersigned by G Kamala Vardhana Rao, CEO of FSSAI. The MoU marks the beginning of a new phase of cooperation aimed at enhancing food safety through collaborative projects and technical exchanges.

    G Kamala Vardhana Rao emphasized the importance of this agreement, stating, “Signing this MoU demonstrates our dedication to food safety and signifies a major advancement in our ongoing efforts to enhance international collaboration in food safety. We are eager to work with MAPA to achieve our common goals and enhance food safety in both countries.”

    The MoU outlines a framework for joint initiatives that will facilitate the exchange of technical knowledge and expertise between the two nations. In his remarks, the representative from Brazil’s Ministry of Agriculture and Livestock highlighted the significance of the MoU as a milestone in the bilateral relationship between India and Brazil.

    He noted, “The signing of the MoU marks a milestone in the bilateral relations between the two countries in the field of food safety, allowing for technical cooperation and exchange of experience and knowledge with the aim of strengthening the institutional collaboration and pursuing joint initiatives. ” Both FSSAI and MAPA are committed to fostering a productive partnership that is mutually beneficial.