Outgoing RBI Governor Shaktikanta Das emphasized inflation control as the central bank's top priority. Das provided insights into the crucial challenges awaiting the central bank whilst expressing optimism about his successor's capabilities, as he reviewed his six-year leadership period.
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Personal income tax (PIT) has become a significant source of tax revenue in India, contributing 31% to the centre's gross tax collections in FY24. In contrast, corporate income tax (CIT) contributions have declined. The government's focus on widening the tax net and other measures have driven this increase in PIT collections, while keeping corporate taxes competitive.
Retail credit growth in India decelerated in Q2FY25, significantly impacting affordable housing and low-cost two-wheeler loans. However, higher-value loans experienced an uptick. Personal loan originations and credit card usage saw growth, while overall credit demand hit a two-year low with mixed delinquency trends.
Rajeev Chandrasekhar highlights India's leap in electronics manufacturing, with global and domestic brands now designed and manufactured locally. This shift is attributed to the government's move from import substitution to an export-led framework. Key trends include smarter, AI-connected products, India's expanding global value chain presence post-Covid, and the rise of highly intelligent digital products.
RBI governor Sanjay Malhotra urged banks to enhance their risk management frameworks for green technologies at a seminar in New Delhi. He emphasized the need for financial institutions to prepare for climate-related risks and highlighted RBI's efforts, including stress testing and developing new data systems. Malhotra also called for greater collaboration and further initiatives to support sustainable finance.
Warren Buffett reassures Berkshire Hathaway shareholders about its $321.4 billion cash reserves. Buffett emphasizes future strategic investments in equities and significant stakes in Japan's trading giants. Berkshire Hathaway's total market value exceeded $1 trillion in 2024 due to long-term reinvestment and compounding returns. Operating earnings rose significantly in 2023. Buffett highlights reinvestment over dividends.
The National Company Law Tribunal has approved JSW Energy's resolution plan for KSK Mahanadi Power Company, resulting in a Rs 16,000 crore upfront cash recovery for creditors. Creditors will also receive a 26% stake in the company. The resolution, involving substantial financial players, emphasizes NCLT's commitment to expedite high-value cases.
Wipro restructures its global business lines to enhance its market strategies and meet client demands in emerging technologies like AI, cloud, and digital transformation. The realignment will focus on delivering specialized, outcome-driven solutions, effective from April 1. Key management changes also include Jo Debecker's departure and Nagendra Bandaru assuming a leadership role.
Air India is establishing a massive flying training organization (FTO) in Amravati, Maharashtra, by mid-2025. The airline has ordered 34 trainer aircraft from US and Austrian manufacturers to facilitate the training of 180 pilots annually. This ambitious project aims to address India's growing pilot demand and bolster the nation's aviation infrastructure, aligning with the 'atmanirbhar Bharat' vision.
Kia India MD Gwanggu Lee stated that car sales are expected to grow moderately by 3-4% next year due to increased prices. He suggested the government reduce taxes to stimulate demand. Kia launched the Syros mini offroader, available in petrol, diesel, and eventually electric versions, to compete in the entry SUV market.
Car sales growth in India slowed to approximately 5% in 2024, the slowest in four years, due to urban market pressures. The industry sold about 43 lakh units, with SUVs making up 54% of sales. High car prices and affordability issues impacted demand. Despite this, Maruti Suzuki achieved its highest-ever annual sales, aided by rural market penetration.