Industry and law firms have suggested increasing the FDI cap for R&D and security agencies, liberalizing regulations for agriculture, and streamlining investment rules from China. These suggestions were discussed in a DPIIT consultation to make the overall investment regime in India more attractive, ahead of the Union Budget on February 1.
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The new Income Tax Bill, 2025 aims to simplify language, reduce litigation, and lower compliance burdens. It introduces clearer tax year definitions, removes outdated sections, and allows for lower withholding tax certificates under all TDS/TCS provisions, while also simplifying tax provisions for non-resident shipping and airline companies.
Car companies like Tata Motors, Maruti Suzuki, Mahindra & Mahindra, and JSW MG are preparing extensive charging infrastructures to support their electric vehicles. These initiatives include home chargers and robust public networks, with Maruti targeting charging stations in 1,000 cities and Tata expanding collaborations with charge point operators to install over 10,000 public chargers.
Kerala recorded the highest inflation rate at 7.3% in February, while Telangana had the lowest at 1.3%. The overall retail inflation slowed to 3.6%, driven by lower food prices. Thirteen out of twenty-two states had inflation rates below the Reserve Bank of India's target of 4%, according to data from the National Statistical Office.
Goldman Sachs has cut price targets for Indian IT stocks due to anticipated lower revenue growth amid US economic uncertainty. With significant revenue from the US, companies like LTIMindtree were downgraded while TCS is viewed more favorably. The brokerage highlighted ongoing challenges including muted discretionary spending and potential project delays due to macroeconomic conditions.
Chinese stocks experienced their worst start to the year in nearly a decade due to weaker-than-expected manufacturing data and impending tariff hikes. The CSI 300 Index fell 2.9%, with the Hang Seng China Enterprises Index dropping 3.1%. Concerns over the economic recovery and lack of significant stimulus measures contributed to the market's fragile sentiment.
The Reserve Bank of India cut its key repo rate by 25 basis points to 6.25%, the first cut in nearly five years. This decision from the Monetary Policy Committee aims to stimulate economic growth and offers relief to borrowers with lower EMIs. The move is in response to reduced economic growth and inflation management challenges.
Airtel has partnered with Elon Musk’s Starlink, pending regulatory approval, to enhance its broadband services in India. This collaboration aims to provide high-speed internet to remote areas, tapping into SpaceX's satellite technology. Airtel will integrate Starlink’s offerings into its retail and enterprise solutions, bolstering its market presence.
In 2024, Tata's Punch SUV surpassed Maruti's Swift to become the best-selling car in India. Buyers are increasingly preferring SUVs over hatchbacks. Tata Motors achieved its highest sales volumes with SUV sales growing significantly. Maruti WagonR is the only hatchback in the top 5. Tata Motors' multi-powertrain strategy contributed to its strong SUV sales.
Indian startups saw a funding revival in 2024, reaching $11.3 billion, slightly up from $10.7 billion in 2023. While VC firms have ample capital, they are cautiously deploying funds, prioritizing profitability and strong governance. Zepto led funding with $1.4 billion, but overall deal closures were uneven throughout the year. Investors remain optimistic about India's growth potential.
Stocks rose on Wall Street as it deals with uncertainty caused by the ongoing trade war. The S&P 500, Dow Jones, and Nasdaq all showed gains. Investors are focusing on corporate news and awaiting updates on tariffs. Meanwhile, genetics testing company 23andMe took a significant hit, while The AZEK Co. surged on acquisition news.