India's November vehicle retail sales rose 11.2% to 32,08,719 units, driven by a 15.8% surge in two-wheeler demand due to festive spillover. However, passenger vehicle sales dipped 13.7% to 3,21,943 units, hampered by weak sentiment, limited product variety, and a lack of new launches, despite some support from rural markets.
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The Budget reduced customs duty on imported motorcycles and cars. Bikes with engines over 1,600cc face a 30% duty, down from 50%, while smaller bikes now have a 40% duty. Imported cars over $40,000 have a 70% duty instead of 125%, but a new 40% agriculture cess keeps the cumulative duty at 110%.
Adani Group is officially withdrawing from a $442 million wind power project in Sri Lanka after the government attempted to renegotiate the agreement for better energy rates.
The Competition Commission of India fined Goldman Sachs AIMPL Rs 40 lakh for not notifying it about a deal that included acquiring optionally convertible debentures in Biocon Biologics, providing significant rights beyond those of ordinary shareholders, which necessitated prior notification under the Competition Act.
The US transportation department fined JetBlue Airways $2 million for chronic delays on its east coast routes due to unrealistic scheduling. JetBlue blamed air traffic control issues and called for modernization. The fines partially compensate affected passengers. Routes from New York to Raleigh-Durham, Fort Lauderdale, Orlando, and from Windsor Locks to Fort Lauderdale were notably delayed.
InterGlobe Air Transport Limited has been named the exclusive General Sales Agent for Oman Air in India. This partnership will enhance Oman Air's presence in the Indian market, providing extensive sales, service support, and superior travel experiences. InterGlobe already represents multiple international airlines, ensuring seamless connections and exceptional service for passengers traveling between India and Oman.
The Indian government is closely monitoring the US reciprocal tariffs, which are expected to impact exports and demand. Trade experts anticipate higher duties on Indian goods, including agricultural products, to be a strategic move by the US in bilateral talks. India plans to push forward with trade negotiations to counter the tariff impacts.
Budget 2025 expectations: Address the issue of subdued private capital expenditure with a new strategy rather than relying solely on rate cuts as a panacea. The 2023-24 Economic Survey rightly emphasised that underwhelming private capex in key infrastructure sectors cannot be resolved by central government policies alone.
India's micro finance institutions (MFIs) have seen a surge of over 2,176 per cent in growth from Rs 17,264 crore in March 2012 to Rs 3.93 lakh crore by November 2024. Challenges such as fundraising and portfolio quality were discussed in a DFS meeting, with suggestions for credit guarantees and special funds.
India needs a tax buoyancy of 1.2-1.5 to achieve a 6.5-7% growth rate, according to an EY report. To support this growth, the government may need to boost the tax-to-GDP ratio to 14% by FY31. Enhancing tax buoyancy, managing expenditures, and continuing structural reforms are crucial for sustainable growth. India's projected GDP growth for the next fiscal is 6.3-6.8%.
India must reduce high tariffs to stay competitive and attract investment amidst the US-China trade war, says outgoing US Ambassador Eric Garcetti. Although American companies see potential in India's market, they find it easier to operate in Southeast Asia and Mexico. Strengthening US-India relations, especially in defense and technology, remains crucial despite some challenges.