Top headlines: Change in semiconductor scheme, price caps on gas and more

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On-tap application to set up fab plants likely; Meity may consider proposal

The government is tweaking the semiconductor and display fab scheme so that interested parties can make an application on tap instead of being subjected to a 45-day deadline, according to sources. At present, interested applicants have to apply within 45 days to be considered eligible for financial incentives. Read more...

CBIC waives interest charges on EXIM traders due to payment woes 

The Central Board of Indirect Taxes and Customs (CBIC) on Thursday announced interim relief for traders grappling with difficulties in paying import duty through the automated payment system that went live on April 1.

The government has now allowed a temporary waiver of interest charges till April 10 in case there is a delay in paying duty due to technical glitches. Additionally, the government has also reverted to the manual clearance of certain categories of goods. Read more...

Govt imposes gas price caps, accepts key suggestions of Kirit Parikh panel

The government on Thursday amended the domestic pricing model of natural gas in line with the recommendations of the Kirit Parikh committee on gas pricing. Prices of domestic natural gas will now be announced every month, and be pegged at 10 per cent of the international price of the Indian crude basket. The move is expected to reduce by 10 per cent the prices of piped natural gas (PNG), supplied to households, and compressed natural gas (CNG), used as auto fuel and by various industries. Read more...

IMF warns five-year global growth outlook is weakest since 1990

The International Monetary Fund warned that its outlook for global economic growth over the next five years is the weakest in more than three decades, urging nations to avoid economic fragmentation caused by geopolitical tension and take steps to bolster productivity.

The emergency lender sees the world economy expanding about 3% over the next half decade as higher interest rates bite, Managing Director Kristalina Georgieva said in a speech prepared for delivery in Washington Thursday. Read more...

Street sees no major surprise in RBI's interest rate pause decision

The Reserve Bank of India’s (RBI’s) Monetary Policy surprised most commentators who were expecting a 25 basis points (bps) hike. However, while the MPC unanimously voted to hit pause on the rate hikes, it will also continue to tighten money supply in “withdrawal of accommodation”. 
 

The central bank lowered its inflation projections for the fourth quarter of the 2023-24 financial year (Q4FY24) by 40 bps while also lowering its Q1FY24 inflation expectations by 10 bps. The MPC dropped its FY24 CPI inflation forecast to 5.2 per cent (from 5.3 per cent previously), on the basis of moderating crude prices. Read more...