A surge in Omicron variant infections in China prompted authorities there to lock down close factories and stop truck traffic, snarling already frayed supply chains of semiconductor chips. Meanwhile, the finance ministry has asked various line ministries and entities responsible for implementing subsidy and welfare schemes to cut wasteful expenditure expeditiously. Read more on these in our top headlines.
Auto industry fails to pick up pace as chip shortage hurts production
Automakers struggled to lift sales in the first month of the new financial year (2022-23) as a fresh scarcity of semiconductor chips hamstrung production.
While there was optimism that the scarcity of electronic chips would gradually ease, a surge in Omicron variant infections in China prompted authorities there to lock down residents, close factories and stop truck traffic, snarling already frayed supply chains. Read more here
GST mop-up hits record high of Rs 1.68 trn in April on robust biz activity
The goods and services tax (GST) collection touched a record high of Rs 1.68 trillion in April, surpassing the Rs 1.5-trillion mark for the first time since the introduction of the tax regime in 2017.
The mop-up is Rs 26,000 crore higher than the previous record of Rs 1.42 trillion in March, shows the provisional data released by the finance ministry, which indicates an improved economic activity despite the escalating geopolitical conflict. Read more here
Wastage in welfare and subsidy schemes: Centre cracks the whip
The finance ministry has asked various line ministries and entities responsible for implementing subsidy and welfare schemes to cut wasteful expenditure expeditiously, even as the Centre faces higher-than-budgeted food and fertiliser subsidy burden due to the ongoing geopolitical situation.
On the food subsidy front, Food Corporation of India and the Department of Food & Public Distribution have been asked to weed out inefficiencies in the value chain. Read more here
Robust volumes, operating profit margins to drive gains for Maruti Suzuki
The growth outlook for India’s largest passenger carmaker — Maruti Suzuki India (MSIL) — is turning the corner. While robust volumes and price hikes will drive revenue growth, moderating commodity prices and improving leverage are expected to rub off on its operating profit margins.
Brokerages have tweaked their volume growth and earnings estimates upwards after the January-March quarter results (2021-22, or FY22) to incorporate favourable trends for the market leader. Read more here
Holcim likely to seek exemption under India-Mauritius tax agreement
Mauritius-based Holderind Investments, which holds a 63 per cent stake in Ambuja Cements, can claim capital gains exemption under the India-Mauritius tax treaty when it sells the stake in the Indian company in the coming weeks, according to tax experts.
Holcim is currently in talks with several Indian tax experts to ensure that its stake sale in Ambuja Cements does not get embroiled in a tax dispute like Vodafone of the UK when it acquired its India business from Hutchison and had to face litigation from the Indian tax department for over a decade. Read more here