New Income Tax Bill: In July 2024, the government announced a review of the Income-tax Act, 1961, aiming to simplify it for taxpayers. A KPMG survey highlights priorities such as dispute simplification, compliance enhancement, and corporate tax structure adjustments.
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Bank credit and deposit growth in India slowed in the October-December quarter of 2024. Notably, personal loans and credit to key sectors saw a decline, while public sector lending picked up. Term deposits grew significantly, driven by higher interest rates and large-value deposits.
Businesses in India's household durables segment are expected to see some moderation in revenue growth in the just-concluded October-December quarter, asserted HSBC Global Research in a thematic report ahead of the impending earning updates.
Senior officials from India's commerce ministry are meeting with commercial representatives from 20 countries to discuss strategies for boosting exports. The focus is on six key goods and services sectors, addressing non-tariff barriers, logistics, and WTO matters. Commerce Minister Piyush Goyal will also participate. India's export-import data reflects a significant trade deficit due to rising imports in November.
India's poverty rates dropped significantly below 5% in 2024, as revealed by the State Bank of India's study. Both rural and urban poverty saw major reductions, with rural poverty at 4.86% and urban poverty at 4.09%. Further adjustments may occur following the completion of the 2021 census.
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.
The road transport ministry in New Delhi proposed a tax rebate of up to 50% for buyers who submit a scrapping certificate for their BS-I, BS-II, or older vehicles. This initiative aims to reduce vehicular pollution by encouraging citizens to replace old, polluting vehicles with newer models, providing significant financial incentives.
India's foreign exchange reserves fell by $2.54 billion to $635.721 billion for the week ending February 14. The decline ended a three-week rise, during which reserves had increased by $7.654 billion. The forex reserves were impacted by a drop in foreign currency assets, while gold reserves and SDRs saw a rise.
Venu Lambu, the new CEO designate of LTIMindtree, is focused on managing client expectations as AI-driven productivity gains affect deal outcomes. Recently, LTIMindtree passed substantial AI-induced productivity benefits to its top client, Microsoft, which significantly impacted revenue from top accounts. This trend may influence future client negotiations and drive industry-wide changes.
The government's decision last July to reduce import duties on gold has significantly had a positive impact on the industry, and any increase in tariffs in the upcoming Budget may have adverse effects, said World Gold Council.
Kotak Mahindra Capital Company predicts the IPO market pipeline to reach USD 35 billion in 2025, up from USD 22 billion in 2024. Majority IPOs are from financial services and digital tech sectors with large IPOs consistently increasing, attracting foreign portfolio investors and leading multinationals to consider IPOs for unlocking investments.