Winning Bizness Economic Desk

The total Goods and Services Tax (GST) revenue expanded 8.5 per cent to over Rs 1.82-lakh-crore in November as compared to Rs 1.68-lakh-crore in the same month a year-ago, the union finance ministry’s data showed.

With the November collections, the cumulative gross GST mop-up in the first eight months of FY 25 came in at Rs 14.6-lakh-crore, up 9.3 per cent than the corresponding period of last fiscal (FY 24).

The rise in gross collections in the April-to-November period, however, is less than what finance ministry officials had anticipated for the full year at 11 per cent.

In the April-to-November period, gross GST collections from domestic activity were up 10.3 per cent on-year at Rs 11.04-crore, but from imports the growth was merely six per cent which dragged down the overall growth.

Total GST refunds issue in the April-to-November period stood at Rs 1.66-lakh-crore, up 10.2 per cent on-year, and thus the net GST mop-up stood at Rs 12.9-lakh-crore, 9.2 per cent higher than the corresponding period of FY 24.

In November, the gross GST domestic revenue was up 9.4 per cent on-year at Rs 14-lakh-crore and gross GST import revenue was up 5.9 per cent at Rs 42,591-crore.

Here, it must be pointed out that experts feel that with the economy growing at a slower pace, imports may remain subdued for some time to come, and consequently, the GST collection.

Central GST (CGST) collections in November were up 12.2 per cent on-year and the State GST (SGST) mop-up was by 12.6 per cent.

However, the point to note here is that collections from Integrated GST (IGST) were up by only 5.5 per cent and from cess by eight per cent.

For the April-to-November period, collections from CGST were up 10.2 per cent on-year, and from SGST by 9.2 per cent.

IGST and cess collections were up 9.4 per cent and 6.5 per cent, respectively, in the period.

India’s Forex Reserves Rises to USD 658-bn

The country’s foreign exchange reserves snapped its eight-week losing streak, increasing by USD 1.51-billion to hit USD 658.091-billion, coming off five-month lows.

The foreign exchange reserves increased for the first time in nine-weeks after sliding by nearly USD 48.3-billion cumulatively in the last eight-weeks.

The overall reserves had slid by USD 1.31-billion to USD 656.582-billion in the previous reporting week.

Here, a point that requires highlighting is that the reserves had registered a declining trend in the last two-months and dropped by a record USD 17.761-billion in the week prior to the last.

For the week-ended November 29, foreign currency assets (FCAs), a major component of foreign exchange reserves, increased by USD 2.061-billion to USD 568.852-billion.

Changes in the FCA are caused by the central bank’s intervention in the forex market.

The Reserve Bank of India (RBI) intervenes on both sides of the forex market to curb volatility in the Rupee.

Expressed in dollar terms, the FCA includes the effect of appreciation or depreciation of non-US units like the Euro, the Pound and Yen held in foreign exchange reserves.

Gold reserves decreased by USD 595-million to USD 66.979-billion during the week.

The Special Drawing Rights (SDRs) were up by USD 22-million to USD 18.007-billion.

The central bank data showed that the country’s reserve position with the International Monetary Fund (IMF) was up by USD 22-million to USD 4.254-billion in the reporting week.

Forex reserves also include the country’s reserve tranche position in the International Monetary Fund (IMF).

Putin Praises Modi’s `Make in India’ Policy

Russia’s president Mr Vladimir Putin said that his country will set-up manufacturing plants across India. Mr Putin also praised Mr Modi for his `India-first’ policies.

Speaking at an investment meet in Moscow, the Russian president said that he was impressed by how Mr Modi’s `Make in India’ initiative was “strengthening India’s position globally.”

He also highlighted how the Indian government’s policies have contributed to India’s development by creating a stable environment for growth.

Impressed with the `Make in India’ policy, Mr Putin said that “Prime Minister Modi has a programme called `Make in India’. We are also ready to set-up our manufacturing operations in India. The Indian government, under the prime minister’s leadership, has been creating stable conditions, driven by a policy of putting India first. We believe that investing in India is profitable.”

The Russian company Rosneft has recently invested USD 20-billion in India.

Mr Putin also emphasised how India’s leadership has focussed on “prioritising its national interests” which has translated into India’s robust growth and the well-being of its citizens making a special mention of how India created “stable conditions” for small-and-medium-sized companies (SMEs).

Cement Demand Expected to Rise in Q4 FY 25, says Ind-Ra

The country’s cement sector registered a weak performance in the first-half of this fiscal (H1 FY 25) due to slower construction activities caused by the general elections and lower infrastructure spending, according to India Ratings and Research (Ind-Ra).

The demand for cement grew by only 2.3 per cent in H1 FY 25, with construction affected by elections and weather conditions.

However, H2 FY 25 is likely to witness some pick-up with construction activities perking-up from December but meaningful growth likely only in the fourth quarter of this fiscal (Q4 FY 25).

The rating agency expects Q3 FY 25 to witness low single-digit growth with the festive season affecting demand in the months of October and November.

While demand growth improved to seven per cent Year-on-Year (YoY) in September of this year according to the core industries data, growth slowed down to three per cent YoY in October 2024.

Cement prices are likely to remain under pressure due to high competition and weak demand, even though they may recover slightly after a weak second quarter.

Cement prices dropped by around seven per cent in the first seven months of FY 25 and the sector is expected to face a sharp fall in prices by the end of the year.

India’s Exports Surge 67 Per Cent in a Decade

India’s export performance between 2013-14 to 2023-24 has been tremendous with the country’s total exports surging to around USD 778-billion in 2023-24 as compared to a much lower USD 466-billion in 2013-14, a growth of nearly 67 per cent.

This was stated by Mr Piyush Goyal, the union minister of commerce and industry, in response to a Parliamentary query.

During this period, India’s share in the world merchandise exports also improved from 1.66 per cent to 1.81 per cent with the country advancing in rankings from the twentieth position to the seventeenth position.

Here, it must be pointed out that the government has implemented several initiatives to sustain and accelerate export growth.

The Foreign Trade Policy 2023, launched in April 2023, provides a roadmap for enhancing exports and easing trade processes.

Additionally, the Interest Equalisation Scheme on rupee export credit has been extended until December of this year (2024) to support exporters financially.

What is important to note here is that sector-specific efforts have been pivotal in this growth.

The Agriculture and Processed Food Products Export Development Authority (APEDA) promotes agri-product exports through financial assistance, infrastructure upgrades and international trade participation.

Similarly, the Marine Products Export Development Authority (MPEDA) supports marine exporters by enhancing value-addition facilities and aqua-culture production.

Initiatives such as the Districts as Export Hubs programme and digital platforms for trade certificates demonstrates the government’s commitment to promoting exports.

These measures aim to make India a global export powerhouse, boosting the economy and generating employment.

India Ranks Third Globally in Billionaires

India had 185 billionaires in 2024, making its billionaire count the third highest in the world after the United States at 835 and China at 427, according to UBS’ latest Billionaire Ambitions Report.

The country added 32 billionaires during the past 12-months, a northward movement of around 21 per cent and more than double (123 per cent) since 2015, the report stated.

Over the past year, the net worth of billionaires in India increased 42.1 per cent to USD 905.6-billion. The US added 84 billionaires and in China, the number slipped by 93.

What requires highlighting here is that the combined wealth of billionaires in America climbed to USD 5.8-trillion from USD 4.6-trillion, while for China, it slid to USD 1.4-trillion from USD 1.8-trillion.

Overall, between 2015 and 2024, the total billionaire fortune increased by 121 per cent globally, from USD 6.3-trillion to USD 14-trillion while the number of billionaires reached 2,682 from 1,757 during the same period.

The study, presently in its tenth year, estimated that over the next decade, India is poised to witness a “significant” rise in its count of billionaire entrepreneurs, much like neighbouring China did four years ago.

Additionally, the report identified 108 publicly-listed family businesses in India, placing the country at third in this category as well.

It said that “Family businesses have played a pivotal role in India’s economic transformation. India boasts one of the highest numbers of publicly-listed family-owned businesses globally, many of which have thrived across generations.”