Daily News - Friday, 2 August 2024
Govt to monitor prices of 16 more commodities (Financial Express)
The Indian Department of Consumer Affairs has expanded its daily price monitoring to include 16 additional commodities, such as brinjal, eggs, bananas, and various spices, bringing the total to 38 commodities under scrutiny. This move aims to capture a more comprehensive range of essential food items that collectively represent 31% of the Consumer Price Index (CPI), enhancing the government's ability to respond to price volatility and control inflation. By broadening the scope of commodities tracked, the government seeks to implement more effective policy interventions to stabilize food prices and mitigate inflationary pressures.
India, Vietnam plan to double bilateral trade, investments (Financial Express)
India has extended a $300 million line of credit to Vietnam for maritime security, alongside an agreement to expedite the review of the ASEAN-India Trade in Goods Agreement (AITGA) to enhance trade potential between the two nations. During talks between Prime Minister Narendra Modi and his Vietnamese counterpart Pham Minh Chinh, both sides committed to doubling trade and investments over the next 3-5 years as part of the 2024-2028 Comprehensive Strategic Partnership plan. With bilateral trade currently at $14.81 billion and India's significant trade imbalance with ASEAN, Modi emphasized the need for a swift conclusion to the AITGA review to foster more balanced and effective economic cooperation.
GST collection rises 10% to third highest at ₹1.82 trn (Business Standard)
In July 2024, India's GST collection surged by 10.3% year-on-year to over ₹1.82 trillion, driven primarily by domestic transactions and marking the third-highest monthly collection since the tax regime's inception in 2017. The data reveals a notable growth in revenue from imports, which increased by 14.2%, compared to an 8.9% rise in domestic supply-related revenues. Experts attribute this growth to the stability and maturity of GST implementation in India, with expectations of further increases during the upcoming festive season, and highlight significant economic activity in developing regions like Nagaland, Manipur, Andaman & Nicobar, and Ladakh.
India Needs 3 I’s to Gallop Ahead: Investment, Infusion, Innovation (The Economic Times)
A World Bank study has warned that over 100 countries, including India, China, Brazil, and South Africa, face significant challenges in escaping the "middle-income trap" and achieving high-income status in the coming decades. The World Development Report 2024 introduces a "3i strategy"—focusing on investment, infusion, and innovation—as a roadmap for these countries to break through the trap, emphasizing that sticking to outdated strategies will hinder progress. For India, World Bank Group Chief Economist Indermit Gill highlighted the country's potential advantages, such as a favourable demographic and digital landscape, but stressed the need for comprehensive, horizontal policies across all economic sectors to meet the ambitious goal of becoming a developed nation by 2047.
10% import duty on chemicals for lab use (mint)
The Central Board of Indirect Taxes and Customs (CBIC) has reinstated a 10% concessional import duty on chemicals specifically imported for laboratory use, amending a previous duty hike from the FY25 Union Budget aimed at curbing tax evasion. This concessional rate applies only to importers who declare the chemicals' intended use, ensuring the duty is reserved for genuine laboratory purposes. Additionally, undenatured ethyl alcohol has been excluded from this concession due to past misuse, continuing to attract a higher duty of 150%.
