Policy
MSME ministry seeks additional ₹5,000 crore for job generation scheme
The ministry of micro, small and medium enterprises is seeking an additional ₹5,000 crore for the Prime Minister's Employment Generation Programme due to a surge in subsidy claim applications. Budget constraints and an overwhelming number of applications have led to delays in subsidy disbursement. In FY24, Union Bank of India had the highest subsidy claim and release under the scheme. The government subsidizes a percentage of the loan amount for self-employment ventures, with applicants required to contribute towards the project cost. Despite the high demand, the budget allocation for PMEGP in the current year is lower than the revised estimates for the previous year.
Budget Glossary: Key terms to know before Nirmala Sitharaman presents Budget
According to Article 112 of the Indian Constitution, the Union Budget of a year, also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for that particular year. Union Budget keeps the account of the government's finances for the fiscal year that runs from 1st April to 31st March. Union Budget is classified into Revenue Budget and Capital Budget.
NHRC seeks detailed report from labour ministry, Tamil Nadu government on Foxconn issue
The National Human Rights Commission (NHRC) has issued notices to the central labor ministry and Tamil Nadu government over allegations of Foxconn's discrimination against married women at its Sriperumbudur assembly plant. This action follows reports that Foxconn excluded married women from employment, raising serious concerns about gender equality and the violation of the right to equal opportunity.
Commerce ministry seeks views of departments on measures to revive SEZs, promote economies of scale: Official
"The main issue in SEZs is that we are not able to get economies of scale. The connect between SEZs and the domestic tariff area (DTA) or domestic market has to be improved. There are also issues if DTA is selling to SEZs," the official said.
India, four SE Asia countries plan instant retail cross-border payments
Five central banks from India, Malaysia, Thailand, Singapore, and the Philippines collaborate on Project Nexus, a cross-border retail payments platform set to launch by 2026, facilitated by the Bank for International Settlements (BIS). Nexus will integrate digital payment systems like India’s UPI and Singapore’s PayNow, potentially linking 1.7 billion people globally.
Viral video of couple brutally beaten in Bengal: What happened and why is the TMC under scrutiny?
A disturbing incident in West Bengal has sparked widespread outrage following the emergence of a video showing a brutal assault on a couple allegedly involved in an illicit relationship. The opposition Bharatiya Janata Party (BJP) and Communist Party of India (Marxist) (CPI(M)) were quick to condemn the incident and accused the ruling Trinamool Congress (TMC) of being complicit in what they termed as "bulldozer justice" under Chief Minister Mamata Banerjee's governance.
Incomplete transmission could delay rate reversal by RBI
High food inflation and incomplete transmission of the 250 basis point policy rate hikes since May 2022 could delay the Reserve Bank of India's (RBI) rate cut. Transmission through loan and deposit rates varied between 111 and 245 bps until May 2024, except for loans linked to external benchmarks, which had immediate full transmission.
IBBI introduces electronic forms for monitoring liquidation processes
IBBI introduces electronic forms to streamline liquidation, enhancing compliance. From record-keeping to distribution, the forms cover all stages. IPs face a deadline for ongoing cases under the new circular. The initiative aims to boost efficiency and accuracy in insolvency procedures.
2015 skilling policy to be replaced with new one
A new policy on skilling in India, drafted by BCG, aims to create a skilled workforce to meet global demands, aligning with the government's vision and demographic dividend.
Incomplete transmission of policy rates could delay reversal of rate cycle by RBI
RBI faces challenges in rate transmission due to incomplete hikes. Banks show varied transmission rates. Governor Das stresses effective transmission. Rate cuts may come post-October with clearer risk insights.
Must Watch
GST simplified compliance, improved tax buoyancy; fake ITC generation still a challenge
Introduced seven years ago, the Goods and Services Tax (GST) has streamlined compliance and boosted tax revenues, but challenges persist with fake invoices and fraudulent registrations causing tax evasion concerns. Despite this, GST has simplified the tax regime, increased taxpayer numbers, and improved tax buoyancy and state revenues. However, efforts to combat evasion are ongoing, with the need for further measures such as operationalizing the GST appellate tribunal.
India's GDP calculations set for an upgrade as MOSPI sets up panel to revise base year
The Ministry of Statistics and Programme Implementation (MoSPI) has formed a 26-member committee led by Biswantah Goldar to update the base year for national accounts, aiming to align key economic indices with current economic trends. This includes potentially shifting from the current base year of 2011-12 to 2020-21 for indices like the Wholesale Price Index (WPI), Producer Price Index (PPI), and Consumer Price Index (CPI).
Indian economy poised for potentially stable high growth phase, says RBI's monetary policy panel member
RBI's monetary policy committee member Shashanka Bhide highlighted India's potential for stable high growth amidst significant risks, citing strong domestic demand, investment spending, and positive monsoon forecasts. He emphasised the importance of maintaining inflation aligned with targets to support growth, with the RBI projecting retail inflation at 4.5% for FY25. The MPC recently kept the repo rate unchanged at 6.5%, focusing on sustaining economic momentum.
EPFO gross new members addition dips 4% to 1.09 crore in 2023-24: MoSPI report
The gross addition of new members was affected due to the pandemic and declined from 1,10,40,683 in 2019-20 to 85,48,898 in 2020-21. It bounced back to 1,08,65,063 in 2021-22.
Equalisation of interest for MSMEs extended till August 31
The extension of the interest equalisation scheme for MSMEs till August 31 with a total outlay of ₹750 crore disappoints non-MSME exporters and may impact labor-intensive exports and large companies under 410 tariff lines.
Outlay for export tax remission plans unlikely to change in Budget
The government is unlikely to increase the allocation for key tax remission schemes for exporters in the 2024-25 budget, despite demands for more support. In the interim budget, ₹16,575 crore was earmarked for the RoDTEP scheme and ₹9,246 crore for the RoSCTL scheme. Exporters argue for adequate allocation to maintain zero-rated exports, a government policy, as merchandise exports rose 5.1% year-on-year in the first two months of this fiscal.
