Winning Bizness Economic Desk
India plans to intensify its efforts to increase its defence exports and has set up a defence export promotional council with the aim of streamlining the country’s arms export strategy and boosting international sales.
The initiative is a part of the country’s ambitious goal to up its defence exports from Rs 21,083-crore in 2024 to Rs 50,000-crore by 2029.
This push for arms exports aligns with the country’s prime minister Mr Narendra Modi’s `Make in India’ initiative, which seeks to reduce India’s dependence on foreign military suppliers while simultaneously positioning India as a global defence exporter.
Over the past decade, India has transitioned from being one of the world’s largest arms importers to a growing arms exporter, with indigenous defence manufacturers securing deals with several countries.
India currently exports military hardware to 85 countries including helicopters, naval vessels, missiles and armoured vehicles.
Negotiations are presently underway with Vietnam, Indonesia, the United Arab Emirates (UAE) and Malaysia for further BrahMos deals, with a USD 700-million contract with Vietnam expected to be finalised soon.
India’s defence industry is driven by a mix of Defence Public Sector Units (DPSUs), ordnance factories, private players and MSMEs, all contributing to a growing eco-system.
Key defence exporters include Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL) and Goa Shipyard Ltd (GSL).
Food Inflation Likely to Remain in Low Single-Digit till April, Says Niti Aayog Member
Food inflation is expected to remain in the low single-digit number until April, said Mr Ramesh Chand, Member of Niti Aayog.
“My own take on food inflation in the month of January is that it will be below five per cent. So those months of high food inflation are now over for a couple of months. However, after that what kind of situation emerges cannot be said with confidence,” the Niti Aayog member said.
Food inflation, which had been rising between 8-to-11 per cent over the past 18-months, began easing in December. It eased to 8.39 per cent in December from 9.04 per cent in November.
In its January 2025 Bulletin, the country’s apex bank, the Reserve Bank of India (RBI) noted price declines in cereals, milk, vegetables, pulses and sugar.
However, inflation for meat, fish, eggs, fruits and edible oils remained elevated. The Reserve Bank cautioned that food price stickiness required close monitoring, adding that firming rural wages and corporate salary growth could increase inflationary pressures in the coming months.
Net Direct Tax Collection Up 15 Per Cent in FY 25
India’s net direct tax collection increased by 14.69 per cent Year-on-Year (YoY) to over Rs 17.78-lakh-crore in the current financial year, according to the Central Board of Direct Taxes (CBDT).
Personal income-tax collections led the northward movement, growing 21 per cent to around Rs 9.48-lakh-crore.
Meanwhile, net corporate tax revenue rose by more than six per cent to over Rs 7.78-lakh-crore in the period between April 1, 2024 and February 10, 2025.
The revenue from the Securities Tax Transaction (STT) registered a big 65 per cent vault, reaching Rs 49,201-crore so far this fiscal.
The refunds issued during the period exceeded Rs 4.10-lakh-crore marking a significant 42.63 per cent increase from the previous year.
A point to highlight here is that despite this, the gross direct tax collections expanded 19.06 per cent to more than Rs 21.88-lakh-crore as of February 10.
It must be pointed out here that the government has revised its direct tax collection estimates in the current fiscal.
The income-tax revenue is now pegged at Rs 12.57-lakh-crore, up from the budget estimate of Rs 11.87-lakh-crore. STT collections are projected to touch Rs 55,000-crore, exceeding the initial target of Rs 37,000-crore.
However, the corporate tax collection target has been revised southward to Rs 9.80-lakh-crore from the earlier estimated of Rs 10.20-lakh-crore.
Overall, the revised estimate places direct tax collections at Rs 22.37-lakh-crore, slightly higher than the budgeted Rs 22.07-lakh-crore.
South India Leads Other Regions in Economic Progress: CEA Nageswaran
South India leads in economic progress and far outperformed other regions of the country—its GDP growth rate is 6.3 per cent as compared to five per cent in the rest of the country.
This was stated by Dr V Anatha Nageswaran, the Chief Economic Advisor (CEA) to the union government.
A point that requires highlighting here is that Tamil Nadu contributes 20.4 per cent to south India’s manufacturing GDP with automotive, textiles and electronics manufacturing being the thrust areas of the state.
Mr Nageswaran was speaking at the Mystic South Global Linkages Summit 2025, organised by the Confederation of Indian Industry (CII) Southern Region recently.
Mr Nageswaran said that the per capita income of the southern region has also grown at five per cent as compared to the 4.2 per cent annual growth for the rest of India and added that the labour force participation is higher down south than the national average.
The two other southern states—Andhra Pradesh (AP) and Telangana also boast of over 50 per cent participation of women in the work-force, the only two Indian states to have achieved this.
“With long-term strategic competitiveness in mind, greater industry-academic collaboration is vital. I urge industries to look at R&D as an investment, rather than as an expenditure,” Mr Nageswaran said.
At the event, a report titled `2047 Southern Odyssey: Powering Ahead to a USD 10-trillion Economy’ was released.
The report said that south India contributed 31 per cent to India’s GDP in 2023-24 with Tamil Nadu and Karnataka taking the top two spots, followed by Telangana and Andhra Pradesh.
The Vice-President of CII and Managing Director and CEO of Tata Chemicals Mr R Mukundan, said that public-private partnerships were reshaping development, ensuring efficiency and investment in infrastructure, manufacturing and renewable energy.
“As India targets a USD 30-trillion economy and Tamil Nadu aims for a USD 40,000 per capita income, smart industrial zones, export logistics and social infrastructure will be vital for sustainable growth,” he said.
Sales of Homes Below Rs 50-Lakh Fall 14 Per Cent in 2024
Sales of apartments costing less than Rs 50-lakh each declined 14 per cent to 38,626 units in 2024 across seven major cities on lesser launches of affordable housing projects and rising prices, JLL data showed.
Real estate consultant JLL India’s data showed that sales of apartments across seven major cities during last year registered a sustained growth, reaching a record-high volume of 3,02,867 units, up 11 per cent from 2,71,818 units in the preceding year.
The seven cities are Mumbai, Delhi, NCR, Bangalore, Pune, Chennai, Hyderabad and Kolkata.
A point to be noted here is that the data includes only apartments. Rowhouses, villas and plotted developments are excluded from JLL India analysis.
Another important point here is that sales of apartments costing less than Rs 50-lakh each fell to 38,626 units from 45,160 units.
On the outlook for the current year, JLL said the housing market is expected to exhibit a strong performance amid rising urbanisation levels, infrastructure developments and rising demand for premium homes driven by changing lifestyle preferences of consumers and higher disposable income levels.
