Winning Bizness Economic Desk

The country’s economic growth is projected to be at 7.5 per cent this fiscal (FY 26) and a little lower at seven per cent in the next fiscal (FY 27). India’s economy will outperform the global average growth of 3.1 per cent expected over the next five years, a report by CareEdge stated.

Though a slight moderation is likely in FY 27, the country’s economy will still be more resilient than most major economies. The economy will remain strong despite global headwinds and trade related uncertainties.

The CareEdge report stated that momentum will likely be supported by firm domestic demand, higher investment activity and policy backing, despite challenging external conditions.

According to CareEdge, the hearty performance of the manufacturing and construction sectors drove the country’s robust Q2 economic growth. It was supported by improved demand conditions and the impact of GST rationalisation.

These domestic tailwinds are expected to continue providing a buffer against global volatility.

The report further highlighted a slew of medium-term positives that could strengthen India’s economy such as the possibility of an India-US trade agreement, benign inflation, relatively low interest rates and a reduced tax burden for households.

All the above factors are expected to propel economic momentum in India in both this and the next fiscals.

Income Tax Relief Affects Government’s Revenues

Net revenue collection from non-corporate direct taxes moved northward by a tiny 6.4 per cent in the period April-to-mid-December of this fiscal (FY 26).

This, it must be pointed out, is very much lower than the budgetary target of a 14.4 per cent growth, primarily due to the tax relief provided through the last budget (of 2025-26).

Between April and December 17 of this year, the net direct tax revenue stood at Rs 17.04-lakh-crore, which is eight per cent higher when compared to the corresponding period of the last year, as per data of the Central Board of Direct Taxes (CBDT).

Corporate taxes collection stood at Rs 8.17-lakh-crore and non-corporate taxes at Rs 8.47-lakh-crore.

With respect to the Securities Transaction Tax (STT), its net revenue stood at Rs 40,195-crore during the period under review.

On a Year-on-Year (YoY) basis, the direct taxes paid by companies were 10.5 per cent higher, which is largely in line with budgeted growth.

However, a point that needs highlighting here is that collection from personal Income Tax has been much below the targeted figure. Additionally, it must be pointed out that the 6.4 per cent growth was due to delays in refunds.

At gross level, collection from non-corporate taxes moved northward by only a miniscule 1.3 per cent YoY during the period under review.

The Income Tax Department has issued refunds worth Rs 2.97-lakh-crore till December 17 of this fiscal which is 13.5 per cent lower than the refunds issued during the corresponding period of last year.

For 2025-26, the government is targeting a Rs 25.2-lakh-crore from direct tax collections. Till December 17 of this year, it has achieved 67.6 per cent of the target.

In FY 25, the collection of direct taxes stood at Rs 22.26-lakh-crore.

Home Affordability Increases in Mumbai, Drops in NCR

Real estate consultant Knight Frank India said housing affordability has improved in the western Indian metropolis of Mumbai.

In Delhi-NCR, however, affordability has been adversely affected because of a steep northward movement in housing prices.

The Knight Frank Affordability Index indicates the proportion of income that a household requires to fund the monthly instalment (EMI) of a housing unit in a particular city.

An index level of 40 per cent for a city implies that, on an average, households in that city need to spend 40 per cent of their income to fund the EMI of a housing loan for that unit.

An important point to note here is that an EMI/income ratio over 50 per cent is considered unaffordable.

According to the Index, Ahmedabad is the most affordable housing market among top eight cities, with a ratio of 18 per cent followed by Pune and Kolkata at 22 per cent.

In Mumbai, housing affordability has improved significantly with EMI-to-income ratio sliding to 47 per cent this year. In NCR, the affordability index stands at 28 per cent this year as against 27 per cent last year.

India’s Palm Oil Imports Increase in Nov on Lower Prices

The country’s palm oil imports climbed up last month (November) as refiners exploited lower prices. This helped boost buying of palm oil while reducing imports of the costlier soyoil and sunflower oil, industry body Solvent Extractors’ Association of India stated.

The higher palm oil imports of vegetable oils could help Indonesia and Malaysia, who are the top producers to reduce their stocks and thus support benchmark Malaysian palm oil futures.

This could also put pressure on US soyoil futures.

Palm oil imports last month increased about five per cent from October to 6,32,341 metric tonnes (mt), the Association stated.

Imports of soyoil slid more than 18 per cent to 3,70,661-tonnes and sunflower oil imports declined 45 per cent to a two-year low of 1,42,953-tonnes, the industry body said.

According to the Association, the country also imported 5,000-tonnes of canola oil from the United Arab Emirates (UAE) in the month.

Lower imports of soyoil and sunflower oil reduced the country’s total imports of edible oils in November by 13.3 per cent from a month earlier to a seven-month low 1.15-million tonnes, the Association said.

In November of this year, India imported a record 69,919-tonnes of soyoil from China after a glut elicited discounts from Chinese crushers.

Tata Group to Debut With its Taj Hotel in Egypt

The blue-riband Tata Group’s Hotel Taj is debuting in Egypt with a 300-room property in that country’s capital Cairo. The development is a part of a revival of Cairo’s iconic Grand Continental Hotel.

An agreement was signed between the Tata Group company India Hotels Company Limited (IHCL) and Egyptian General Company for Tourism and Hotels for a management contract.

Egypt’s Prime Minister Mr Mostafa Madbouly oversaw the signing of the agreement

“Debuting the iconic Taj brand in Cairo aligns with IHCL’s international growth strategy of being present in key gateway cities of the world and extending the brand’s hallmark warm and sincere service,” Mr Puneet Chhatwal, the Managing Director and CEO of the company said in a statement.

The Grand Continental Hotel has a history of over 100-years and reviving it has been part of an Egyptian government plan to enhance tourism and hospitality.

The 300-room Taj Cairo hotel will retain the key elements of the historic building’s façade while introducing contemporary design and world-class amenities.

The site housed the Grand Continental’s Savoy built in the 19th century—this is now being re-developed retaining the key elements of the original architecture.

The hotel is expected to open around mid-2029. The total international portfolio of the Tata Group, with this signing, is 36 hotels with 16 more in the pipeline.

L&T Wins Big Order From BPCL

Larsen & Toubro’s Hydrocarbon Onshore business vertical (L&T Onshore) has bagged a major order worth up to Rs 10,000-crore from PSU major Bharat Petroleum Corporation Limited (BPCL) to build a linear low-density polyethelene (LLDPE) and high-density polyethelene (HDPE) swing unit, the company said.

The project covers engineering, procurement, construction and commissioning of two 575 KTPA trains at BPCL’s Bina facility in Madhya Pradesh.

Executed on a Lump Sum Turnkey basis, it will be the largest LLDPE/HDPE swing unit in India, setting a new benchmark in polyethelene production capacity.

L&T defines a “major” order as one with a contract value between Rs 5,000-crore and Rs 10,000-crore.

“This is a major order that will not only strengthen our balance-sheet but also provide impetus to our demonstrated credentials in downstream hydrocarbon EPC space,” Mr Subramanian Sarma, the company’s Deputy Managing Director and President, said.

This unit is a key component of BPCL’s Bina Petrochemicals & Refinery Expansion Project, which aims to expand refinery capacity from 7.8-MMTPA to around 11 MMTPA and establish a comprehensive petrochemical complex.