Winning Bizness Economic Desk

The central government’s tax collections have remained subdued in the on-going financial year (2025-26) with growth below budgeted estimates. It is, however, expected to improve in the next fiscal (FY 27) as demand conditions strengthen, a report by CareEdge Ratings stated.

Gross tax collections expanded by a small 3.3 per cent Year-on-Year (YoY) during the first eight months of FY 26, the report observed, adding that this was significantly lower than the budgeted growth of 12.5 per cent.

This reflects continued pressure on revenue mobilisation amid slower-than-expected growth in both direct and indirect taxes.

“Direct tax collections have lagged in the year so far with growth in corporate and Income Tax collections remaining below the budgeted annual growth”, the report said.

While the Union Budget had projected a healthy growth in both segments, the actual collections between April and November of last year fell short of expectations.

Corporate tax collections increased by 7.8 per cent during the period, as compared to the budgeted growth of 9.7 per cent.

The Income Tax mop-up moved northward slightly by 6.8 per cent, which was considerably lower than the budgeted growth of 21.6 per cent, highlighting the extent of the shortfall in direct taxes.

For the next fiscal (FY 27), however, the report expressed more optimism. On a lower base and with improving nominal GDP growth, GST collections are expected to perk-up, bolstered by higher compliance and strong economic activity.

The agency expects the gap between tax growth and nominal GDP growth to narrow in the coming year.

India’s Forex Reserves Up USD 14.17-bn to USD 701.36-bn

The country’s foreign exchange reserves climbed up steeply by USD 14.167-billion to USD 701.360-billion in the week ended January 16, the Reserve Bank of India (RBI) data showed.

The northward movement was propelled by a very healthy jump in both Foreign Currency Assets (FCAs) and gold reserves.

This latest increase means that India’s forex reserves have remained close to their all-time high of USD 704.89-billion, which was registered in September 2024.

During the reporting week, the Foreign Currency Assets, which comprise the largest component of the reserves, increased by USD 9.652-billion to USD 560.518-billion.

Gold reserves also registered a robust climb, increasing by USD 4.623-billion to USD 117.454-billion.

The increase in gold holdings comes amid a sustained uptrend in global prices, supported by heightened global uncertainty and a strong investment demand for the safe haven asset.

The RBI data shows that the country’s forex reserves has increased by around USD 56-billion so far in 2025.

In comparison, reserves climbed up by just a little over USD 20-billion in 2024, while the previous year witnessed an accretion of about USD 58-billion. In 2022, there was a cumulative slide of nearly USD 71-billion.

Foreign exchange reserves are assets held by a country’s central bank, primarily in reserve currencies such as the US Dollar with smaller portions in the Euro, Japanese Yen and Pound Sterling.

Here, it must be pointed out that the Reserve Bank actively manages liquidity in the foreign exchange market, buying dollars when the Rupee is strong and selling them during periods of weakness to control excessive volatility.

Mizoram, NDDB Ink MoU to Boost Dairy Sector

The Mizoram Milk Producers Co-operative Union Ltd (MULCO) has signed a Memorandum of Understanding (MoU) with the National Dairy Development Board (NDDB) to strengthen the state’s dairy sector.

The MoU aims at providing a structured and tech-driven boost to Mizoram’s dairy industry. The MoU was signed in the presence of the state’s Chief Minister Lalduhoma and Co-operation Minister P C Vanlalruata.

The state’s Co-operation Secretary Mr Udit Rai Prakash, NDDB’s Executive Director Mr S Rajeev and MULCO Managing Director Lalhmunliani executed the agreement.

This partnership aligns the north-eastern state’s dairy development initiatives with the Ministry of Co-operation’s flagship programme `White Revolution 2.0’.

Under the agreement, the NDDB will prepare a comprehensive dairy development plan for the state and provide technical backing and assistance in all required areas.

MULCO will be responsible for implementing the plan on the ground.

Mizoram’s Chief Minister Lalduhoma said the agreement would not only enhance milk production but also improve the livelihood and incomes of livestock farmers in the state.

According to him, modern technology and improved practices could help harness the sector’s full potential. He also suggested establishing a dedicated monitoring unit to ensure effective implementation of the project.

Here, an important point to note is that according to official data, Mizoram registered the lowest dairy milk production in the north-eastern region during 2024-25 at 64,000 kg per day, highlighting the need for prioritising structured interventions in the sector in the state.

India’s Palm Oil Imports Likely to Slide as Refiners Move to Other Oils

The country’s palm oil imports slid to an eight-month low in December of last year as refiners increased purchases of rival oils such as soyoil and sunflower oil amid weaker seasonal demand during winter months, a leading trade body pointed out.

Lower palm oil imports by India, the largest purchaser of vegetable oils in the world, could boost inventories in top producing countries—Indonesia and Malaysia—while lending support to US soyoil futures.

The country’s palm oil imports in December declined about 20 per cent from the previous month to 5,07,204-metric tonnes, the lowest since April 2025, the Solvent Extractors’ Association of India (SEA) said in a statement

India imported an average of about 6,32,000 tonnes of palm oil each month during the marketing year that ended in October 2025, SEA said.

Imports of soyoil increased 36 per cent to 5,05,112-tonnes in December of last year, the highest in three months and sunflower oil imports were up about 145 per cent to a 17-month high of 3,49,929-tonnes, SEA said.

The total vegetable oil imports rose 17 per cent to 1.38-million tonnes, the statement added.

India purchases palm oil mainly from Indonesia and Malaysia and imports soyoil and sunflower oil from Brazil, Argentina, Russia and Ukraine. An important point to note here is that India’s palm oil imports typically moderate during winter.

WB Nod for USD 680-mn Three Assam Projects

The World Bank (WB) has approved the funding of USD 680-million for three projects in the north-eastern state of Assam. These projects are aimed at improving access to markets, jobs and public services while simultaneously bolstering the state’s resilience to extreme weather events.

An important highlight here is that the projects concentrate on climate-resilient road infrastructure, school education and adolescent well-being and improved governance and service delivery and support inclusive growth in the state.

The USD 350-million Assam Disaster Resilient Hill Roads Development Project is the largest project. This project will support the construction of climate-resilient roads, particularly in hilly and remote areas.

It aims to reduce travel time for nearly 1,90,000 people in tribal and rural communities and improve connectivity through upgraded transport and logistics hubs equipped with public transport facilities and electric vehicles (EV) charging points.

The second project—the USD 250-million Assam School Education and Adolescent Wellbeing Project is aimed at improving learning outcomes for over two-million primary school students and prepare another two-million adolescents aged between 10-19 years of age for the work-force through life-skills training, curriculum upgrades and multi-lingual education.

The USD 80-million Assam Governance and Service Delivery Programme, will focus on strengthening public financial management, improving administrative service delivery for citizens and businesses and enhancing data systems to support informed and rapid decision-making.

According to the World Bank, all three projects will have a final maturity period of 16-years, including a grace period of three-years and are expected to play a key role in supporting the state’s long-term economic and social development.