Winning Bizness Economic Desk

The country’s economy remains resilient, states the latest Financial Stability Report (FSR) from the Reserve Bank of India (RBI).

The Gross Domestic Product (GDP) is projected to expand at 6.6 per cent this fiscal (FY 25). This growth will be driven by a recovery in rural consumption, government expenditure, investments and strong services exports.

The report, released on December 30 of last year (2024), reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC).

It evaluates the strength of India’s financial system and its ability to withstand risks. The report highlights that Scheduled Commercial Banks (SCBs) are in a strong shape.

They have improved profitability, declining Non-Performing Assets (NPAs) and sufficient capital and liquidity buffers.

The Return on Assets (RoAs) and Return on Equity (RoE) have reached decadal highs. The Gross Non-Performing Assets (GNPAs) ratio has also moved southward to a multi-year low.

An important point in the report is that it says that macro stress tests show SCBs have adequate capital buffers. This remains true even under adverse conditions.

Stress tests also confirm the resilience of mutual funds (MFs) and clearing corporations.

Structural growth drivers such as public consumption, investment and service exports are expected to support recovery in the latter half of this fiscal (FY 25).

On inflation, the FSR said that a bumper kharif harvest and favourable rabi crop prospects will help ease food-grain prices.

GST Collection Rises 7.3 pc in December

India’s Goods and Services Tax (GST) collection increased to Rs 1.77-trillion in December of last year. This, it must be pointed out is the tenth consecutive month that collections have breached the Rs 1.7-trillion mark, according to data released by the government.

The December 2024 collection reflects a 7.3 per cent rise as compared to the Rs 1.65-trillion collected in the previous December of 2023.

However, they remain below the Rs 2.1-trillion peak registered in April of last year (2024). The number is also lower than the Rs 1.82-trillion reported in November 2024, which marked an 8.5 per cent Year-on-Year (YoY) growth.

The Central GST collection (CGST) stood at Rs 32,836-crore while State GST (SGST) and Integrated GST (IGST) were at Rs 40,499-crore and Rs 47,783-crore, respectively.

The collection from cess was reported at Rs 11,471-crore.

Domestic transactions during the month contributed Rs 1.32-trillion, an 8.4 per cent increase compared to the same period last year. The revenue from GST on imports increased by four per cent YoY to Rs 44,268-crore.

The refunds issued in December totalled Rs 22,490-crore, reflecting a significant 31 per cent increase over December 2023.

Adjusting for refunds, the net GST collection increased by 3.3 per cent YoY to Rs 1.54-trillion. In November of 2024, the GST collection was driven by strong revenues from domestic transactions which expanded by 9.4 per cent YoY to Rs 1.40-trillion.

Healthcare Sector to Touch USD 320-bn by 2028: Report

India’s healthcare sector is expected to reach USD 320-billion by 2028, a report by Great Place to Work stated.

According to it, the pharmaceutical and bio-technology sectors are aiming to reach the USD 130-billion and USD 300-billion, respectively, by 2030.

The growth in healthcare sector is driven by robust international expansion, increased industry consolidation and the influx of investments leveraging the country’s skilled workforce, the report stated.

Last year (2024), 85 per cent of best workplaces invested in employee development programmes, up from the 73 per cent of last year.

To stay ahead, firms must double-down on actively cultivating career development pathways, grooming future-ready leaders and refining their strategies to attract and retain top-tier talent, it pointed out.

Mr Balbir Singh, the CEO of Great Place to Work, India, said that the pharmaceutical, healthcare and bio-tech sectors are at a turning point.

“What started as a pandemic-driven sprint has transformed into a marathon of innovation, powered by a sharp increase in healthcare R&D investments. India is leading the charge, with healthcare AI investments projected to reach USD 1.6-billion by 2025,” Mr Singh said.

With relation to the healthcare industry, growth is backed by training initiatives for employees that provide access to new technology, therapists and learning platforms as well as offering flexible work arrangements and cross-departmental mobility opportunities.

For the pharma sector, the companies are doing well primarily due to skill enhancement for the workforce, continuous learning and by implementing structured systems that enable performance-based career progression and foster innovation.

Realty Major TVS Emerald Buys Land in Chennai for Rs 2,800-cr Project

Real estate major, TVS Emerald, has bought a 12-acre land parcel to develop a real estate project worth about Rs 2,800-crore. The company did not disclose the cost of acquisition of the land.

This land is located on Radial Road (PTR) in Chennai.

The land will have a development potential of 2.5-million sq ft and a revenue potential of Rs 2,800-crore, the company said in a statement.

Here, it is important to point out that this is the third acquisition of land by the company in the current fiscal (FY 25).

Earlier, the company acquired a four-acre land parcel in Podur, Chennai, and a four-acre parcel in Thanisandra in Bangalore.

The company’s Director and CEO Mr Sriram Iyer said that “this landmark acquisition reinforces our commitment to strategic growth and market leadership in Chennai and Bangalore.”

Mr Iyer said that by securing this land on the premium Radial Road corridor, the company was expanding its footprint and creating substantial value for its stakeholders.

“This move aligns perfectly with our vision of developing world-class properties in high-potential locations,” he said.

TVS Emerald is a fully-owned subsidiary of TVS Holdings and is engaged in the business of developing residential projects and self-sustaining communities with a presence in Chennai and Bangalore.

The company has delivered around 3.6-million sq ft of residential developments in Chennai and has about 8.6-million sq ft under development projects.

Kuppam Horticulture Hub Wins Skoch Award for Agricultural Innovations

Kuppam has become a thriving horticulture hub, setting a benchmark for agricultural innovations and contributing very healthily to farmers’ livelihoods. Kuppam is located in Chittoor district of Andhra Pradesh.

The Kuppam Horticulture Hub has introduced modern farming practices and uses advanced Israeli technology. These innovative methods have revolutionised agriculture in the region.

The Hub, formally inaugurated in January 2019 by the then chief minister of Andhra Pradesh Mr N Chandrababu Naidu, was envisioned to make Kuppam a model for horticulture.

Spanning a 22.8-acre area, the Centre of Excellence (CoE) at Pedda Bangarunatham village in Kuppam mandal focusses on the cultivation of flowers and vegetables, utilising cutting-edge technologies like drip-irrigation, polyhouses and grafting.

The Hub supports farmers in producing high-quality crops with minimal resources, ensuring increased productivity and profitability.

A point that needs highlighting here is that the favourable climate in the region supports a variety of vegetables, flowers and fruits, including marigolds, tomatoes and capsicum.

Farmers, officials and students receive training on modern agricultural practices and improving skills at the centre.

Defence Exports Rise 10-Fold in 10-Years: Min

The country’s aim to become a global manufacturing hub for defence has taken a leap in the last decade with a ten-fold increase in defence exports, its defence minister Mr Rajnath Singh said.

He said that India’s exports have crossed a record Rs 21,000-crore, up from Rs 2,000-crore ten-years ago.

According to India’s defence minister, the country has set a target for annual defence exports to cross the Rs 50,000-crore mark within the next five-years. Mr Singh was addressing officers at the Army War College in Mhow Cantonment in Madhya Pradesh (MP).

“Our defence exports, which were around Rs 2,000-crore a decade ago, have crossed the record figure of Rs 21,000-crore today. We have set an export target of Rs 50,000-crore by 2029,” Mr Singh said.

The defence minister’s speech focussed on the evolving nature of warfare globally and emphasised how the mastering of frontier technologies is essential in today’s era of technology.

Elaborating further, Mr Singh said that “unconventional methods of warfare like information warfare, Artificial Intelligence or AI-based warfare, proxy warfare, electro-magnetic warfare, space warfare and cyber attacks are posing a big challenge.”

Highlighting the need for the military to be well-trained and equipped to fend off such attacks, Mr Singh stressed the importance of a strong economy and a robust national security.

“Economic prosperity is possible only when full attention is paid to security. Similarly, the security system will be robust only when the economy is strong. Both complement each other,” Mr Singh said.