Page 3 - Deloitte

Critical mineral mission shows India's effort for energy security: Deloitte

Consulting firm Deloitte India has welcomed the government's approval to Rs 16,300-crore National Critical Mineral Mission stating that it is well-timed and signals a commitment to strengthen energy security in the face of global uncertainties. "The Cabinet's approval of the National Critical Mineral Mission, accompanied by a significant financial outlay, is a major step forward for India's energy security. Given the country's vulnerability to geopolitical shifts surrounding critical minerals, this mission addresses a key area of concern. It is a well-timed and highly welcome move by the government," Rakesh Surana, Partner, Deloitte India, said in a statement. What stands out most about this initiative is its holistic approach that covers the entire value chain. The focus is not just on the exploration of critical minerals, but also on crucial elements such as processing and recovery from end-of-life products, he said. "This multi-faceted approach will likely drive significant ...

PLI scheme expansion for handicrafts, leather to create more job: Deloitte

The government in its coming Budget must extend fiscal benefits under the PLI (production linked incentive) scheme to sectors such as handicrafts and leather that can create more jobs, Deloitte said on Sunday. It also suggested that the existing PLI schemes must continue in sectors that have seen success, such as electronics, auto and semiconductors. The government in 2021 announced PLI schemes for 14 sectors, including telecommunications, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharma, with an outlay of Rs 1.97 lakh crore. Deloitte further suggested that to improve global liquidity (once the Western central banks start easing their monetary policies), the government can raise the ceiling for investment size and remove location restrictions to attract more foreign investment. "Multi-brand retail and e-commerce are some sectors that may benefi

Indian economy projected to grow in range of 6.5-6.8% in FY25: Deloitte

Deloitte India on Tuesday projected India's GDP to grow at 6.5-6.8 per cent in the current fiscal and said India will have to adapt to the evolving global landscape and harness its domestic strengths to drive sustainable growth. In its Economic Outlook report, Deloitte India also said the country needs to decouple from global uncertainties and harness its domestic potential. Despite global and domestic challenges, India is moving up the global value chains, as highlighted by the rising share of high-value manufacturing exports, particularly in electronics and machinery and equipment. Deloitte India, in its latest Economic Outlook, has revised its annual GDP growth projection for FY2024-25 to 6.5-6.8 per cent, with expectations for 6.7-7.3 per cent in the following year. The adjustment reflects the need for cautious optimism as the economy navigates rising global trade and investment uncertainties. In its Economic Outlook report in October, Deloitte India had projected the country's

Budget: Govt could cut customs duty on raw materials to boost manufacturing

The government could reduce customs duty on inputs used in manufacturing medical equipment, electronic goods and footwear industries in the forthcoming Budget to boost local manufacturing, according to tax experts. Deloitte India Partner, Indirect Tax, Harpreet Singh said key demands from the Customs side from the 2025-26 Budget, to be tabled in Parliament on February 1, would be rate rationalisation, simplification of the regime, and litigation and dispute management. "In the lines of the phased manufacturing plan, we expect some duty cuts in raw materials in electronics, home appliances, healthcare products, and pharmaceuticals. These are the industries where the government wants to give impetus in terms of manufacturing, and hence, we will see the raw materials declining in these sectors," Singh told PTI. On the proposed Customs duty rationalisation announced in the Budget in July 2024, Singh said the sectors which could see rationalisation are healthcare, manufacturing of medica

PLI scheme in R&D needed to make India global innovation hub: Deloitte

The Budget 2025-26 should announce a PLI scheme for R&D to attract foreign companies and make India a global hub for innovation, said Deloitte India Partner (Direct Tax) Rohinton Sidhwa. He said the government has been pursuing a policy wherein tax holidays are less and more focus is on Production Linked Incentive (PLI) or other schemes which promote investment and employment. "We need to push India as the R&D lab of the world and if there can be such a policy which stimulates that, like PLI for R&D which includes foreign companies, that could be a game changer," Sidhwa told PTI in an interview. The Budget for 2025-26 will be presented in Parliament on February 1. Sidhwa said that one area which the government needs to look at is how to stimulate innovation and reward R&D spending and that would happen only when the country is able to attract global R&D centres into India. "If we can develop our own R&D, we are less reliant on developed world for technology and

Big four's Indian arms outpace global counterparts in FY24 revenue growth

The Indian arms of Deloitte, PwC, EY, and KPMG outpaced their global counterparts in FY24, driven by booming demand for consulting services, with revenue set to surpass Rs 45,000 crore by FY25

Indian economy to grow at 6.5-6.8% in FY25 on high consumption: Deloitte

Indian economy is likely to grow at 6.5-6.8 per cent this fiscal and slightly higher between 6.7-7.3 per cent in FY2026, boosted by domestic consumption, Deloitte said on Sunday. Deloitte India Economist Rumki Majumdar said the growth in the first half of the fiscal year 2025 turned out to be slower than estimated as election uncertainties followed by disruptions in activity due to heavy rainfall and geopolitical events weighed on domestic demand and exports. However, India continues to show resilience in certain pockets that are worth noting -- be it in consumption trends, services growth, the rising share of high-value manufacturing in exports, or the capital market. The government's continued focus on infrastructure development, digitisation, and attracting FDI will be the additional growth booster, enhancing overall efficiency. "We remain cautiously optimistic and expect the growth rate to remain between 6.5 and 6.8 per cent this fiscal year and slightly higher between 6.7 and

India has potential to be sustainable aviation fuel producer: IATA official

India has the potential to be a key producer of sustainable aviation fuel by utilising its ethanol supplies and availability of lipids feedstocks like non-edible industrial oils, according to a senior official at the global airlines' grouping IATA. With decarbonisation in focus, efforts are being made to reduce emissions and over the years, Indian carriers have operated some flights with a blend of Sustainable Aviation Fuel (SAF) and traditional Aviation Turbine Fuel (ATF). Hemant Mistry, Director of Net Zero Transition at the International Air Transport Association (IATA), said the ecosystem for SAF has developed but there is more work to be done. "There are some very good opportunities for India right now. One is in terms of SAF feedstocks like agricultural waste... there is a growing understanding on what to do for SAF production. We are talking to a number of companies to understand how we can collaborate... oil companies," Mistry told PTI in a recent interview in Geneva. The .

Security vulnerabilities hinder AI adoption in India: Deloitte report

As many as 92 per cent of Indian executives view security vulnerabilities as the foremost challenge to responsible AI adoption, highlighting a pressing need for robust governance frameworks to foster trust and mitigate risks in an increasingly AI-driven landscape, according to a recent report by Deloitte. The 'AI at a crossroads: Building trust as the path to scale' report by Deloitte Asia Pacific, which surveyed 900 senior leaders across 13 markets revealed that while enthusiasm for AI is high, significant barriers remain. "...about 92 per cent of Indian executives identify security vulnerabilities, including hacking and cyber threats, as a primary concern in AI adoption, while 91 per cent express significant concern about the privacy risks related to sensitive data in AI usage. "Additionally, 89 per cent highlight complexities resulting from regulatory uncertainties, citing evolving compliance requirements as a challenge towards AI integration," it said. The urgency for effective

Simplify ITR forms, get 'one rate one section' for TDS: Deloitte survey

A vast majority of income tax filers want simplified ITRs for individuals, easier way for computing incentives and deductions, and simplification of TDS framework for 'one rate one section', a Deloitte survey said on Wednesday. Deloitte's Income-Tax Policy Survey also suggested doing away with the requirement of issuing Form 16A as the TDS information is already reported and available in the Form 26AS and AIS of the recipient. The survey also suggested limiting the number of sections with regard to withholding tax, classifying payments into two-to-three distinct and non-overlapping categories, and ensuring that each section has only one rate, which will significantly reduce the burden of compliance without any major loss in tax collections from a tax administrative perspective. For example, 1 per cent TDS on tangible goods, 2 per cent on services, 0.1 per cent on e-commerce transactions, and 10 per cent on other transactions such as dividend and interest. The Income Tax Policy Surv

Japanese firms eager to set up semiconductor units in India: Deloitte

Japanese firms are keen to set up semiconductor units in India and they have all the expertise and specialisation to partner with domestic firms, Deloitte has said. It also said that skilled workforce, funds and continuation of support measures are key to push growth of the semiconductor sector in India. Japanese firms are "super enthusiastic" about India, Shingo Kamaya, Deloitte AP and SRT Leader, Deloitte Japan said. In July, Japan became the second Quad partner after the US to sign an agreement with India for the joint development of the semiconductor ecosystem and maintain the resilience of its global supply chain. The two countries signed the memorandum for semiconductor design, manufacturing, equipment research, talent development and to bring resilience in the semiconductor supply chain. With around 100 semiconductor manufacturing plants, Japan is among the top five countries to have a semiconductor ecosystem. Japan houses companies that are global leaders in raw form of .

74% companies want govt to enable real-time audit reporting, says Deloitte

About 74 per cent of high-end corporate taxpayers want the income tax department to enable near real-time reporting and compliance monitoring, Deloitte India said on Tuesday. Deloitte India's Income Tax Digitalisation in India survey, which took views of about 250 highest corporate taxpayers, also found that 67 per cent of businesses seek tax e-wallets to promptly credit refunds on passing orders, enabling adjustment against outstanding demands or future tax liabilities. The survey said the respondents requested to adopt Standard Audit File for Tax (SAF-T), which would enable near real-time reporting and compliance monitoring. This signalled their intention to make the tax function tech-enabled. Additionally, 63 per cent of the survey respondents said that taxpayers expect issuance of automated programming interface (API) to fetch data from income tax portals. Opening up of API by the administration would help taxpayers have seamless connectivity with I-T portals to enable efficien

74% top corporate taxpayers favour real-time compliance monitoring: Report

Deloitte's Income Tax Digitalisation in India survey found a strong push for the use of real-time data, e-wallets, APIs, and emerging technologies like AI and blockchain in the I-T department

Deloitte, EY cut staff in UK amid decline in demand for advisory services

Deloitte recently laid off around 250 advisory staff members in the UK, while EY's annual report on Thursday revealed a reduction of 2,450 employees over the past fiscal year, a first in 14 years

Indian economy to grow 7-7.2% in FY25 on strong govt spending: Deloitte

The Indian economy could grow between 7-7.2 per cent in the current fiscal on strong government spending, and higher manufacturing investments, but a tempered global growth will impact the outlook for the next fiscal, Deloitte India said on Tuesday. In its 'India Economy Outlook for October 2024', Deloitte said the thriving manufacturing sector, stable oil prices, and potential US monetary easing post-elections may boost India's capital inflows, reduce production costs, and enhance long-term investments and job opportunities. The economy grew 6.7 per cent year-over-year in the April-to-June quarter of the current fiscal ending March 2025. Although this marks the slowest growth in five quarters, India ranks among the fastest-growing major economies globally. Deloitte India retains its annual GDP growth projection to be between 7 per cent and 7.2 per cent in FY 2024-2025 and between 6.5 per cent and 6.8 per cent the following year, it said in a statement. India's central bank RBI had

Deloitte eyes $5 billion revenue from Indian biz by 2030: South Asia CEO

Global accounting firm Deloitte is targeting a 4 times growth in its revenue from India business to USD 5 billion (about Rs 40,000 crore) by 2030 and become an "undisputed leader" in professional services, its South Asia CEO Romal Shetty said. Deloitte's India business revenue touched Rs 10,000 crore mark in 2023-24 fiscal (June 2023-May 2024), a growth of 30 per cent. "We are the fastest growing professional services firm of the country. We want Deloitte India revenues to be Rs 20,000 crore by 2027 and USD 5 billion by 2030," Shetty told PTI. He said Deloitte India contributed 10 per cent to the growth in global revenue, and 70 per cent to Asia Pacific's growth. Deloitte's aggregate global revenue grew 3.6 per cent to USD 67.2 billion for the fiscal year ended May 31, 2024. "We disrupted the marketplace in 2023-24 with Rs 10,000 crore revenue. Our aim is to become the undisputed leader in professional services, distinguished by our quality, brand, well-being, and scale. Success f

Airlines, hotels make up 70% of India's $53 billion travel market: Deloitte

In 2023, airlines and hotels made up 70% of India's $53 billion travel market, with corporate travel valued at $10.6 billion. By 2030, the Indian travel industry is expected to touch $97 billion

India likely to clock 7% growth in FY25 despite headwinds: Deloitte

India continues to be a bright spot in an otherwise gloomy global outlook and the country could clock a 7 per cent growth in the current fiscal despite the headwinds, Deloitte South Asia CEO Romal Shetty has said. Shetty, who is the youngest chief executive of a Big Four accounting and consultancy firm in India, said inflation is reasonably under control, there has been a pick-up in rural demand and vehicle sales are improving. "We believe that we would be in the 7-7.1 per cent range in terms of the growth (this fiscal year). You have got the headwinds, the tailwinds... But the fact is, still India is in a better position, in spite of whatever is happening globally but we can't say we're decoupled from the world," he said, adding that the geopolitical crisis in the Middle East and Ukraine and the slowdown in the western world will impact GDP growth. According to Deloitte projections, growth is likely to be 6.7 per cent in the next fiscal year (2025-26). The Indian economy grew 8.2 p

EY employee death fallout: Deloitte forms panel to review people practices

Amid a social media storm over the death of a young employee at tax consultancy major EY allegedly due to work pressure, Deloitte has formed a three-member external committee, which includes former revenue secretary Tarun Bajaj, to look into practices, policies and processes concerning employees, its South Asia CEO Romal Shetty said on Friday. Shetty said to manage the work pressure within the organisation and have an open work culture, Deloitte has a chief happiness officer and takes strictest action for any bad behaviour within the organisation. Deloitte is one of the four major global tax consultancy firms. Besides Deloitte and EY, the other major firms are PwC and KPMG. "... Very unfortunate, very tragic, young child losing her life. We are in the client service business and in the client service business there will always be deadlines... having all of those pressures," Shetty told PTI in an interview. Anna Sebastian Perayil, who passed her CA exam in 2023 and worked at EY Pune

India's home & household market to reach $237 bn by 2030: Deloitte

India's home and household market is expected to reach USD 237 billion by 2030 at a compounded annual growth rate (CAGR) of over 10 per cent, fuelled by increasing disposable income, shifting consumer preferences and a growing focus on comfort and convenience across product categories, according to a report by Deloitte. The report, Powering Consumption Growth-India's Home and House Market, launched at the two-day event MAPIC India 2024, which began here on Wednesday, also said that the home and household market are witnessing strong demand, particularly in tier 2 and tier 3 cities that are emerging as growth hubs. It also said that omnichannel retail and e-commerce are helping businesses connect with consumers, expanding their reach beyond urban centres. Stating that factors such as high disposable incomes, the rise of digital platforms, easy access to credit, and young consumers seeking modern designs, home renovations and personalisation, which provide tailored offerings to ...