Daily News - Monday, 2 September 2024

‘Indian MSMEs losing ground as Chinese goods flood market’ (The Indian Express)

Indian small businesses across various sectors, including umbrellas, glassware, and cosmetics, are struggling to compete due to the influx of Chinese goods, according to a report by the Global Trade Research Initiative (GTRI). The report highlights that over 90% of umbrellas and a significant share of other products like glassware and toys in India are now dominated by Chinese imports, displacing local production. This growing dependence on Chinese imports, particularly in sectors where Indian artisans once thrived, is threatening the survival of Indian MSMEs and raising concerns about the country’s economic sovereignty. 

₹ show 2nd-worst among Asian peers (Business Standard)

In August, the Indian rupee was the second-worst-performing Asian currency, depreciating by 0.2% against the US dollar, driven by strong dollar demand and outflows from domestic equities. Despite a weakening US dollar, the rupee settled close to its lifetime low at 83.87 per dollar, with factors like reduced foreign portfolio inflows and increased importer demand contributing to the decline. Analysts expect the rupee to remain range-bound in the near term, with potential support from factors like lower crude oil prices and increased FPI inflows following changes to the MSCI index. 

GST collections rise 10% to ₹1.75 tn in Aug (mint)

In August, India's GST revenue collection reached ₹1.75 trillion, marking a 10% annual growth, closely aligning with the government's projected 10.5% nominal economic growth for the fiscal year. This increase in GST collections reflects strong consumption and enhanced compliance measures, with expectations of further growth during the festive season. The revenue includes ₹93,621 crore from integrated GST (IGST) and ₹12,068 crore from GST cess, with total net receipts for the financial year up by 10.1% compared to the same period last year. 

Govt to revise CPSE guidelines (The Asian Age)

The government plans to amend its 2016 guidelines on dividend payments, bonus issues, and share buybacks by Central Public Sector Enterprises (CPSEs) to better manage government investments, reflecting the improved financial strength and market capitalization of these entities. The current guidelines require CPSEs with significant surplus funds to pay dividends, engage in share buybacks, or issue bonus shares to maintain investor interest. The updated guidelines, expected to be issued this month by the finance ministry, aim to optimize capital deployment and further align with the current financial landscape of CPSEs. 

Auto makers pin hopes on ensuring festive season (The Asian Age)

Carmakers are optimistic about strong demand during the upcoming festive season, particularly for Ganesh Chaturthi and Onam, despite a 2.32% decline in passenger vehicle (PV) wholesales in August, which saw 3.52 lakh units dispatched compared to 3.6 lakh units last year. Major players like Maruti Suzuki and Hyundai reported an 8% drop in sales, attributed to efforts to reduce dealership inventory levels ahead of the festive season. However, Toyota, Kia, and MG Motor India saw growth in volumes, driven by strong demand for their utility vehicles and electric vehicles (EVs).