Weekly News 23 - 27 October 2023
23 October 2023 - (Economic Times) Strong private consumption major driving force of India’s eco growth: Fin Min Eco Review
The Indian economic growth is majorly being driven by strong private consumption in the recent period, even as two new drivers of growth have emerged, the Finance Ministry said in its latest monthly economic review. Further, the report says that India's fiscal position remains solid with steady revenue growth, and headline inflation is likely to remain within the target band. Yet, despite the stronger domestic macro fundamentals, the Indian economy sees downside risks from global headwinds and uncertainties in weather conditions, the ministry said.
Among the new two additional drivers of growth India is witnessing, one is the gradual strengthening of investment demand, the ministry said. “Investment has hitherto been propelled mainly by the capital spending of the Union Government and the crowding-in it induced for private corporate investment. While this continues unabated, increasing demand for residential properties, supported by responsive housing loan financing, has given a fillip to construction activity and the property markets,” the report said.
24 October 2023 - (Economic Times) CBDT extends date for domestic cos to gain 22% tax benefit under form 10-IC
The Central Board of Direct Taxes (CBDT) on Monday has allowed the delay in filing of Form 10-IC which is required to be filed only if a domestic company chooses to pay tax at a concessional rate of 22 per cent under Section 115BAA of the Income Tax Act, 1961. It is to be noted this section, which was added in the I-T Act with effect from FY 2019-20, states that subject to certain specific criteria, every domestic firm has the option to pay income tax at the rate of 22 per cent (effective tax rate: 25.168 per cent with surcharge and cess).
Pertaining to this, in a relief to eligible companies, the government agency has allowed them to file form 10-IC for the Assessment Year (AY) 2021-2022 on or before January 31, 2024, to avail 22 per cent tax benefit. "Form 10-IC is filed electronically on or before 31.01.2024 or 3 months from the end of the month in which Circular is issued, whichever is later," the CBDT circular read.
25 October 2023 - (Economic Times) Telecom industry hiring seen growing 20% in H2
With the finish line for a complete rollout of 5G services by Reliance Jio and Bharti Airtel in sight, the two leading telcos are sprucing up hiring, and staffing experts expect overall telecom industry hiring to grow nearly 20% on year in the second half of 2023-24. Festive season hiring by handset makers will also contribute to the employment growth, they said.
“Both Airtel and Jio have set themselves deadlines to achieve significant 5G coverage in the country, and we are seeing increased hiring activity on the back of it,” RP Yadav, founder and chairman of Genius Consultants, said. “The launch of their respective FWA (fixed wireless access) services is also expected to result in elevated hiring in the sector.” The focus on deepening fibre penetration in the country will require more on-ground professionals, leading to an increase in the telecom firms’ own and vendor workforce, he added.
26 October 2023 - (Economic Times) Mukesh Ambani-backed Altigreen launches commercial 3-wheeler with rapid charging
Altigreen on Thursday launched its all-new neEV Tez - an electric 3-wheeler. The commercial vehicle manufacturer's neEV Tez features 3-in-one charging that lets the user choose between normal, fast and rapid charging options. neEV Tez charges from 0 to 100% in 15 minutes on Exponent's rapid charging network and; takes a mere 1 hour at any Bharat DCOO1 charging station; or 3.5 hours of charging with the 220V/16 A AC Socket. The vehicle comes with a 5-year standard warranty. The price for the vehicle starts at Rs 3.7 lakh in Delhi. The company with services in over 32 cities said it is the world's fastest-charging 3-wheeler. Altigreen added the new EV will tackle issues like range anxiety and enable businesses to make multiple trips and increase earnings.
The operating costs can come down by 22% every year for an owner of the vehicle and earnings can increase by 50% in a year, the company noted. Debashis Mitra, Director of Sales, Service and Marketing, at Altigreen, said, "We are thrilled to unveil newEVTez - a groundbreaking addition to Altigreen's electric vehicle lineup. newEV Tez features the world's best rapid charging capabilities powered by Exponent Energy, and represents our unwavering commitment to service customers' needs pushing the boundaries of innovative technology in electric mobility."
27 October 2023 - (Economic Times) RBI to call out liquidity skew with bankers
The Reserve Bank of India is likely to meet with banks next week to discuss the key liquidity issues in the banking system and developments in sovereign debt yields, which serve as benchmarks for pricing corporate borrowing. "There are meetings scheduled on November 2 and November 3. The discussion points include the skewed liquidity distribution in the banking system, the reasons why some banks deploy excess liquidity at the RBI's Standing Deposit Facility (SDF) and why some banks which are short of liquidity often have to take recourse to borrow from the Marginal Standing Facility (MSF)," a person aware of the matter said, asking not to be named.
"The RBI's plan regarding open market bond sales is also likely to come up for discussion. There is a lot of speculation in the market regarding the timing and the choice of securities that the RBI may use for bond sales," another person said. The meetings come at a time when the RBI is trying to find a solution to the liquidity conundrum that is baffling both the regulator and banks. The RBI is urging lenders to lend out surplus funds in the interbank call money market instead of parking them at the central bank's absorption facility.
