Page 10 - India Economy

TN fiscal deficit at 3.44% in FY25, growth anticipated: State finance secy

Tamil Nadu's fiscal deficit in the Budget Estimates for 2024-25 stood at 3.44 per cent of the GSDP despite a decline in the State's Own Tax Revenue (SOTR) due to two successive natural calamities in December 2023 resulting in additional expenditure, State Principal Secretary-Finance T Udhayachandran said on Monday. The SOTR suffered a revenue loss due to cyclone Michaung and unprecedented rains in the southern districts. The state government had to spend more on flood relief, provide immediate relief measures besides initiate long-term relief measures, he said. "This budget has been prepared under this financial stress...Nevertheless, Tamil Nadu's economy is robust. We expect a 15 per cent growth in our SOTR through the Commercial Taxes Department," Udhayachandran told reporters here. The Registration department did not see the expected growth last year but next year the government hoped that it would fetch more revenue to the state, he added. Briefing the media on the Budget ...

India set to boost its economic, geopolitical role: Nobel Laureate Spence

India is poised to boost its economic and geopolitical role in the coming decades, helped by an evolving demographic dividend, rapidly expanding digital economy and GDP growth rates that top the world's major economies, Nobel Laureate Michael Spence has said. Spence further said India's leap on the technology front will be a key catalyst for the economic expansion of the nation, currently the world's fifth biggest economy and its pivotal position in international affairs. "As somebody who has spent the last 25 years thinking about growth in one form or another in virtually every corner of the world, let me just say that the major economy with the highest potential growth rate is India," he told ET NOW. The eminent economist noted that India has successfully developed, by far, the best digital economy and financial architecture in the world. "It is a transformational architecture," he said. Spence said the relatively open global economic system that has been in place for over 70 ye

India, UK trade pact talks at advance stage; we want a fair deal: Govt

The negotiations for the proposed India-UK free trade agreement are at an advanced stage, and both sides are working to iron out differences on the remaining issues, a top government official said on Thursday. Commerce Secretary Sunil Barthwal said the negotiations are taking time because "we want" to safeguard India's interest. "India should commercially gain out of it and we should also be able to safeguard the interest of our farmers, PLI (production linked incentive) scheme goods. So, we are there to see that the deal is a fair deal," he told reporters here. Additional Secretary in the Commerce Ministry L Satya Srinivas said the talks are at an advanced stage and going on at a "very" high level to iron out differences. The 14th round of talks started on January 10. The investment treaty is being negotiated as a separate agreement between India and the UK. The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.

Recurring food price shocks pose challenges in tackling inflation: Das

Reserve Bank Governor Shaktikanta Das on Thursday said recurring food price shocks and renewed flash points on the geo-political front pose challenges in tackling inflation. "We remain vigilant to navigate through the last mile of disinflation as it is often the most difficult part of the journey. We firmly recognise that stable and low inflation will provide the necessary bedrock for sustainable economic growth," the governor said. Das stressed that stable and low inflation will provide the necessary bedrock for sustainable economic growth. India has successfully navigated through multiple challenges and emerged as the fastest-growing large economy, he said in his keynote address at the 59th SEACEN Governors' Conference here. "Prudent monetary and fiscal policies have paved the path for India's success in sailing through these rough waters. The Reserve Bank projects the Indian economy to grow by 7.0 per cent during 2024-25, marking the fourth successive year of growth at or above

Introspect on adapting for India's path to a developed nation: FM to SPMCIL

Finance Minister Nirmala Sitharaman on Thursday asked state-owned Security Printing & Minting Corporation of India (SPMCIL) to find ways to transform itself at a time when its core business of printing currencies is depleting because of India's transition to a digital economy. Addressing the foundation day of SPMCIL, Sitharaman said at a time when minting coins in a digital era has become slightly jaded, the corporation has kept itself relevant by coming out with commemorative coins which can be gifted as souvenirs. The commemorative stamps and coins produced by the organisation are reflective of India's branding, cultural and environment issues, she said. SPMCIL has set the standards in gold and silver refining, and since 2022-23, SPMCIL has refined 5,300 kg of seized gold. It has paid a dividend of Rs 533.77 crore for 2022-23. The core strengths of SPMCIL include manufacture of bank notes and coins, also commemorative coins, and security products like passport and non-judicial ..

FM Sitharaman to review state of economy at FSDC meeting on February 21

Finance Minister Nirmala Sitharaman is scheduled to review the state of the economy amid global challenges at a meeting of the Financial Stability and Development Council (FSDC) on February 21. The 28th meeting of the high-level panel to be held here will be attended by all financial sector regulators, including RBI Governor Shaktikanta Das, sources said. This would be the first meeting of the FSDC after the passage of the Rs 47.6 lakh crore Budget for 2024-25, focussing on capital expenditure with an outlay of Rs 11.11 lakh crore. In the meeting, the Finance Minister will review the current global and domestic economic situation and financial stability issues. Sitharaman is likely to stress key priorities highlighted in the interim Budget, the way forward for various future policies and measures that the government has proposed to take in many sectors, sources said. Besides, the council may also review the progress of measures approved earlier for further development of the finan

Rajnath, Munda, other ministers discuss farmers' issue amid protests

Senior Union ministers, including Rajnath Singh and Arjun Munda, on Wednesday held discussions on the ongoing farmers' protests and ways to address the issues, according to sources. The meeting in the national capital assumes significance against the backdrop of farmers from Punjab marching towards Delhi and Haryana Police using tear gas shells to stop them at the Shambhu border between the two states. Defence Minister Rajnath Singh, also a former agriculture minister, deliberated upon various farmer issues with Munda, who is currently in charge of the agriculture ministry. Munda is also one of the ministers who held discussions with farmer groups, the sources said. Details about the meeting could not be immediately ascertained. Thousands of farmers, who are seeking a guaranteed minimum support price (MSP) among other demands, started their 'Delhi Chalo' march on Tuesday. Haryana Police lobbed tear gas shells at farmers from Punjab at the Shambhu border as thousands of protesters

Need to grow at 7-8% to become developed nation by 2047: Ex-RBI Guv

India needs to grow at seven to eight per cent annually in order to become a developed nation with USD 13000 per capita income by 2047, former Reserve Bank Governor C Rangarajan said on Tuesday. Asserting that innovation cannot be a single solution to reduce inequalities or poverty, the former Chairman of the Prime Minister's Economic Advisory Council said besides faster growth rate, the country may need social safety nets such as subsidies in kind of cash and basic income. I would say that the real growth between 7 per cent and 8 per cent will take it closer to the developed economy, because the developed economy by definition shows per capita income of USD 13,000 or more. India's per capita income is now at USD 2700. That means per capita income will have to increase by five times, he told PTI. According to him, if the exchange rate is kept at a lower level or if the prices go up then nominal income will increase, then India can become a developed nation. Therefore, I am saying t

Bihar govt tables Rs 2.79 trillion Budget in Assembly for 2024-25 fiscal

The Bihar government on Tuesday tabled a Rs 2.79 lakh crore budget in the assembly for the financial year 2024-25. Bihar Deputy Chief Minister Samrat Choudhary, while presenting the budget, said the current 2023-24 financial year saw 2.5 crore people rising above the poverty line in the state. The state registered a growth rate of 10.64 per cent in the current fiscal, Choudhary, who holds the finance portfolio, said.

India should be atmanirbhar in all aspects: Principal secretary to PM Modi

India should go beyond achieving the desired level of per capita income and be 'atmanirbhar' in all aspects, Principal Secretary to the Prime Minister PK Mishra said on Saturday. Speaking at the 56th annual conference of the Odisha Economic Association at Sambalpur, he also stressed on sustainable growth while achieving high growth trajectory to become a developed nation by 2047. "High growth that is not sustainable will not be meaningful," Mishra said. "India should go beyond achieving the desired level of per capita income and be 'atmanirbhar' (self-reliant) in all aspects. Women will be leading India's development story, the economy will be more inclusive and innovative, and corruption, casteism and communalism will have no place in our national life," he said. Mishra said that the G20 Presidency led by India was recognised globally for its unprecedented scale and success, emphasising the adoption of new concepts for a sustainable and better future. "The concept of LiFE (Lifesty

Goa CM presents revenue surplus budget of Rs 26,765 cr for 2024-25

Goa Chief Minister Pramod Sawant on Thursday presented a Rs 26,765 crore revenue surplus budget for 2024-25 in the Assembly, with no additional taxes being imposed on the citizens of the coastal state. The revenue surplus was Rs 1,720 crore, while the Gross State Domestic Product (GSDP) is expected to witness a growth of 13.87 per cent, with per capita income of Rs 7.64 lakh, he said. Sawant also announced a one-time amnesty scheme for residential houses that are being operated illegally as home stays, hotels and restaurants. Sawant, who holds the finance portfolio, said Goa received Rs 750 crore as financial assistance from the Centre for fiscal 2023-24 and this is expected to rise to Rs 1,506 crore for 2024-25. Despite financial liabilities like social welfare schemes, servicing of debt and infrastructure development, the state government in the last financial years has not imposed additional tax burden on citizens, the chief minister told the House. "We have worked out our fina

FM Sitharaman moves Finance Bill 2024 for consideration in Rajya Sabha

Finance Minister Nirmala Sitharaman on Thursday moved the Finance Bill 2024 for consideration in the Rajya Sabha. The Finance Bill 2024 will be considered for returning to the Lok Sabha which passed the bill on Wednesday. The finance minister also moved a bill related to Jammu and Kashmir budget bill and appropriation Bill authorising the government to meet expenses for four months in the next financial year. "I move that the bill to continue the existing rates of income tax for the financial year 2024-25 and to provide for certain relief to taxpayers and to make amendments in certain enactments as passed by Lok sabha be taken into consideration," Sitharaman said while introducing the Finance Bill 2024-25. The minister moved the appropriation vote on Account Bill 2024 as passed by Lok Sabha as part of the discussion on the interim budget. The Appropriation Bill 2024 , The Jammu and Kashmir Appropriation 2 Bill, and the Jammu and Kashmir Appropriation Bill 2024 were also moved by t

Fuel consumption rises 8.2% in January on strong industrial activity

Total consumption, proxy for oil demand, totalled 20.04 mn tonnes in January, up from 18.51 mn tonnes a year earlier, data from Petroleum Planning and Analysis Cell (PPAC) of oil ministry showed

Govt will seek an end to WTO's 1998 tariff freeze on trade of digital goods

The WTO has had a moratorium on customs duties on electronic transmissions since 1998, and members have extended the rule every two years

Andhra Pradesh govt tables interim budget of Rs 2.86 trillion for FY25

In terms of percentage, revenue deficit amounted to 2.19 percent of the GSDP while the fiscal deficit was 4.18 percent

No delay in disbursal of sops under PLI scheme for white goods: DPIIT

Applications of certain companies for claiming incentives under the production linked incentive (PLI) scheme for the white goods (AC and LED lights) are under examination and there is no delay in disbursement, an official statement said on Wednesday. The Department for Promotion of Industry and Internal Trade (DPIIT) said that investors were given the option to choose one of the two gestation period - up to March 2022 (one year) and up to March 2023 (two years). All 15 projects -- companies which have opted for gestation period 2021-22 -- have been commissioned. "Companies opting for one year of gestation period are eligible for PLI in the current year (2023-24) based on achieving the threshold investment and net incremental sales in 2022-23. Their online applications are under examination by the PMA (project management agency). The PLI will be disbursed by March 2024. There is no delay in PLI disbursement under the scheme," it said. The scheme has attracted a mix of multinational

Inflation within tolerance, taking steps to check price rise: FM Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday said the inflation has come down within the tolerance band as a result of the steps taken by the government to check price rise, especially in perishable commodities. Replying to a question in the Rajya Sabha, Sitharaman said Bhabha Atomic Research Centre (BARC) is working with the government on de-humidification of onions through Gamma Rays to give it a longer shelf life. "The government is seized of the difficulties, which arise due to shortage of perishable goods, which are not grown in India. The committee sits and reviews periodically, and the efforts have shown on the ground that inflation is now within the tolerable band," she said. India's retail inflation has declined from an average of 6.8 per cent in April-December 2022 to 5.5 per cent in the corresponding period of 2023. The retail inflation is now stable and within the notified tolerance band of 2 per cent to 6 per cent. The minister said that in order to check the volatil

Rome seeks larger Indo-Pacific role, will step up defence ties with Japan

The leaders of Japan and Italy said on Monday they will bolster their cooperation in security and defence, including their joint next-generation fighter jet development with Britain, as Tokyo welcomed the European nation's shift toward playing a greater role in the Indo-Pacific. Japanese Prime Minister Fumio Kishida, after meeting his Italian counterpart Giorgia Meloni, welcomed Italy's move to increase its presence in the Indo-Pacific region, where several visits by Italy's warships, including its strike group, and joint exercises are planned this year. Japan and Italy are valuable strategic partners that share values and principles such as freedom, democracy, human rights and the rule of law, Kishida said. Kishida also praised progress in their joint development of a new advanced fighter jet with Britain. The three countries in December signed an agreement to establish a joint organisation to develop a new advanced jet fighter for deployment in 2035. Meloni said that the ...

Hiring activity down 5% in January, but registers sequential rise: Report

Hiring activity saw a 5 per cent decline in January, while sequentially it was up 3 per cent, a report said on Monday. The sequential increase was largely due to an improvement in demand for skilled talent in the tourism, telecom, and Banking, Financial Services and Insurance (BFSI) industries, foundit Insights Tracker said in the report. The hiring activity was down 5 per cent in January compared to the same month last year, it said. "...we could trace the steady growth of the tourism industry, which aligns with global trends and the government's interests," Sekhar Garisa, CEO, foundit (previously Monster APAC and ME), a Quess company, said. He said the Budget's focus on developing iconic tourist destinations and promoting spiritual tourism aligns with the increasing demand for unique and immersive travel experiences. "This forward-thinking approach aligns perfectly with the evolving trends we observed at foundit, where the travel and tourism sector has seen an impressive 21 per

FinMin releases Rs 66,745 cr loan to 28 states for investment in Apr-Jan

The Ministry of Finance has released loans worth Rs 66,745 crore to 28 states under the Scheme for 'Special Assistance to States for Capital Investment'. In a written reply to Lok Sabha, Minister of State for Finance Pankaj Chaudhary said the scheme is aimed at boosting capital expenditure by states. Under the scheme, special assistance is being provided to the state governments in the form of a 50-year interest-free loan up to an overall sum of Rs 1.3 lakh crore during the financial year 2023-24. Between April 1, 2023, and February 1, 2024, Rs 66,745.21 crore has been released to 28 states under the Scheme for 'Special Assistance to States for Investment', Chaudhary said. In the 2022-23 fiscal, Rs 81,195.35 crore was released under the scheme. Capital investment projects in diverse sectors have been approved, including health, education, irrigation, water supply, power, roads, bridges and railways. Funds for meeting the state share of Jal Jeevan Mission and Pradhan Mantri Gram S