India's economy is projected to become the fourth largest globally by 2026, surpassing Japan. The PHD Chamber of Commerce and Industry anticipates a GDP growth of 6.8% this fiscal year and recommends tax reforms to boost consumption. They also foresee a 25 basis point rate cut by the Reserve Bank, with inflation expected to decline significantly.
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The US economy grew by 2.4% in the last quarter of 2024, mainly due to strong consumer spending. However, business investment and inventories saw a decline. Inflationary pressures increased, and the outlook for 2025 is uncertain due to tariffs and trade policies under President Donald Trump. Consumer confidence has dropped, potentially impacting future growth.
The US treasury department announced that it will halt enforcement of the Corporate Transparency Act's Beneficial Ownership Information reporting requirements for US citizens and domestic firms. President Trump supports the move, which aims to reduce regulatory burdens on small American businesses and will soon formalize the suspension through emergency regulation.
India's Finance Act of 2022 has introduced a 30% tax on income from cryptocurrencies, classified as virtual digital assets. Investors are required to pay 1% TDS on transactions exceeding certain limits and cannot offset cryptocurrency losses against other gains or carry them forward.
Credit rating upgrades have continued to outpace downgrades in FY25, though at a slower pace compared to FY24. ICRA remains positive due to factors like tax relief and improved credit availability, while others like CareEdge and Crisil also see stability despite global headwinds.
Commerce and industry minister Piyush Goyal states that India's free trade agreements are now finalized after extensive consultations with all stakeholders, offering equitable terms. Highlighting the EFTA pact with a $100 billion FDI commitment, he contrasts current deals with past practices, emphasizing national interests and growth in exports.
Bitcoin hits an all-time high of $109,241 as anticipation grows for Donald Trump’s return to the White House and potential pro-crypto executive orders. Trump’s memecoin launch caused fluctuations in the digital asset market, further pushing the momentum of Bitcoin and other top tokens like Ether and XRP.
Alt, the parent company of Property Share, aims to raise Rs 2,800 crore this year. Key initiatives include SM REITs, alternative investments, and UK warehousing. They plan multiple asset listings and new investment ventures, targeting significant growth in their asset management portfolio.
Private equity firm Everstone has acquired a majority stake in Wingify, an Indian SaaS company, for about $200 million. Wingify, founded by Paras Chopra and Sparsh Gupta, is known for its VWO product that enhances website performance. Sparsh will continue as CEO while Paras will remain on the board as a minority shareholder.
Finance Minister Nirmala Sitharaman refuted concerns of any GST rate increase, emphasizing that the GST rates have been reduced since its introduction, with the average rate dropping to 11.3% from 15.8%. She credited the GST Council for their thorough work in simplifying the tax system.
RBI's new governor, Sanjay Malhotra, faces the tough task of balancing India's economic growth, inflation, and exchange rate amid US election fallout and government pressure for lower interest rates. He must also tackle regulatory reforms, digital fraud, and mis-selling of financial products, impacting bank lending and consumer protection.