Top Headlines: CBSE Class 12 Board cancelled, Maruti's sales take 71% hit

Prime Minister Narendra Modi annouced on Tuesday CBSE board exams were being cancelled in view of Covid-19. Lockdowns and curfews in states have hit automobile sales--a key benchmark to assess economic performance. Our top headlines Wednesday track the Indian economy.

Centre's indirect tax share in GDP rises in FY21 after four years

After a gap of four years, the contribution of the Centre’s indirect taxes in the gross domestic product (GDP) has exceeded that of direct taxes, underscoring the regressive taxation system in the county.

The share of direct tax in GDP fell to a 15-year low in 2020-21 (FY21) at 4.79 per cent, while that of indirect taxes grew to a four-year high of 5.48 per cent.
 

The increase in indirect taxes was primarily due to a 63 per cent year-on-year (YoY) jump in excise duty collections to Rs 3.89 trillion and a 23-per cent YoY increase in Customs duty to Rs 1.35 trillion. Read More

CBSE, ISC Class 12 board exams cancelled

The union government on Tuesday announced the cancellation of CBSE Board exams for Class 12 in view of the prevailing coronavirus situation. The decision was taken at a high-level review meeting chaired by Prime Minister Narendra Modi.

Hours after the development, Indian School Certificate (ISC) board exams for Class 12 too have been cancelled.

Class 12 results will be made as per well-defined objective criteria in a time-bound manner, the government said in an official statement. Read More

Lockdowns put auto sales in slow lane in May, Maruti takes 71% hit

The lockdowns and curfews across states have severely hit automobile sales--a key benchmark to assess economic performance. The country’s largest automaker Maruti Suzuki saw its sales decline by 71 per cent in May compared to April.

The second wave of Covid-19 forced Maruti and many of its peers to shut down factories.

The move was meant not just to keep their employees safe but also to comply with the government mandate of restricting use of medical-grade oxygen for non-medical purposes. Read More

June MPC meet crucial, may throw light on bias for policy in future

 June MPC meeting is one of the most interesting and crucial ones in recent months. It comes against the backdrop of renewed headwinds for growth recovery and possibilities of material breach in the RBI’s “upper tolerance band” for inflation prints in the coming months, despite markedly weak domestic demand.

 Aga­inst this backdrop, the June policy may throw light on the MPC’s bias for monetary policy in the future. One clearly sees the need for the MPC to continue supporting growth in coming months, looking through supply side-driven inflation.

Still, it remains critical how emphatically the RBI conveys the same and whether the new MPC under Gov­er­nor Das prefers to retain more flexibility in this regard, than in the past. Read More

Covid-19 pandemic: Govt may extend social and rural relief schemes

The Centre is considering extending and relaunching some social and rural relief schemes it announced during the first wave of the Covid-19 pandemic to provide impetus to the rural economy and small businesses, said two people in the government.

The government is also looking to launch a portal dedicated to providing immediate relief to people working in the unorganised sector.

This comes as the Centre braces for the impact of the second wave, which is expected to hit rural demand harder, despite forecasts of record agricultural production and a normal monsoon. Read More

Paytm shares soar over 80% in grey market on hopes of a killing in IPO

Shares of digital payments company Paytm have soared more than 80 per cent in the grey market, said people who deal in shares of unlisted companies.

The gain is on optimism that the stock price will be valued at least 40 per cent higher than the current levels when the company goes public later this year, they said. “The stock has run up from Rs 12,500 per share a month ago to Rs 22,000.

Traders are hoping that the stock will be valued at Rs 35,000 per share in the IPO. Read More