Economic Survey recommends sustained increase in infrastructure investment over the next two decades to support high growth, given private sector contributions have fallen short. Report highlights need for accelerated private participation in various stages of infrastructure projects, while noting improved capital expenditure post-general election and monsoon constraints.
Related news
India's eight core infrastructure sectors showed a slowed growth of 4.3% in November 2024, down from 7.9% in the previous year. However, monthly production hit a four-month high. Cement production surged 13%, while other sectors saw moderated growth. Core sector growth for April-November was 4.2%.
India's industrial sector is expected to grow at a slower pace of 6.2 per cent in FY25 compared to 9.5 per cent in FY24, as per advance estimates, primarily due to the base effect and a subdued manufacturing performance in the first half, according to Bank of Baroda report.
Departments such as telecom, defence, railways, and highways have experienced lower capital expenditure with telecom spending just 6% of its annual allocation. Total government capex during April-Nov fell to 49% from 59% last year. The slow spending is attributed to milestones tied to funding and recent elections impacting the first quarter.
The government proposes increasing the TDS threshold on rent from Rs 2.4 lakh to Rs 6 lakh annually as announced by Finance Minister Nirmala Sitharaman in her Budget 2025 speech. This move aims to reduce TDS transactions, offering relief to small taxpayers and simplifying compliance.
While softer economic conditions, tighter bank funding, and asset quality concerns are expected to affect the sector's credit growth and profitability in the near term, larger NBFIs with robust operations and diversified funding channels are expected to maintain steadier performance.
Microfinance and two-wheeler finance sectors are recovering, with NBFCs increasing their microfinance portfolios by 22.2%. Improved loan quality and internal controls are observed in microfinance. Two-wheeler finance sees growth due to high vehicle sales and urbanisation, but faces asset quality concerns.
Warren Buffett's strategic move of reducing Apple and Bank of America holdings and amassing cash has paid off, as market conditions worsen. Berkshire Hathaway's cash reserves doubled to $334 billion in 2024, underscoring Buffett's cautious approach amid high US Treasury yields and market volatility. Time will reveal if this strategy leads to significant gains.
Titan Company Ltd reported a 24% annual growth in Q3, driven by strong festive demand in the jewellery segment. Plain gold sales soared 24%, while gold coins surged 48%. Watches grew 13%, despite a decline in wearables. EyeCare rose 17%. CaratLane saw 25% growth, expanding domestically and opening its first US store. Titan’s overall store count reached 3,240.
DeepSeek, a Chinese AI app, has reached the No. 1 spot in Apple's App Store productivity category, surpassing ChatGPT. The app’s R1 AI model matches top competitors at a fraction of their cost and is free. Industry leaders, including Perplexity’s CEO and Marc Andreessen, have praised the achievement, highlighting its significant impact on the AI industry.
NPS Vatsalya offers parents a way to secure their children's financial future, including retirement, with a pension scheme for minors. Notable features include a market-linked voluntary contribution system and a unique PRAN for account management. Minimum initial investment is Rs 1,000.