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Monday, August 15, 2022

The Expresso Business Update

Your Business Expresso is served! The Indian Express brings to you the latest updates from the world of Indian and international business. Your one stop shop for all finance and business stories.

Episode 456 June 26, 2022

Expresso Business Highlights of the week

“You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express.

Let’s begin with some economy news. The Food Corporation of India will raise Rs 50,000 crore as short-term loans from banks next month for financing its operations because of the inadequate release of food subsidy expenses from the Centre. Sources told FE that against demand of around Rs 47,000 crore towards the expenses for April-June, 2022, FCI has been provided with only around Rs 33,000 crore so far under the food subsidy budget. The corporation has been relatively comfortable with the cash position over the last one year as the government promptly released the food subsidy amounts to it, after the practice of availing National Small Saving Fund loans for subsidy financing was stopped in Financial Year 22 Budget for the sake of transparency of government finances.
In some more economy news, RBI’s deputy governor Michael Patra has said that India’s central bank is hopeful that required monetary policy actions will be more moderate than in the rest of the world and there are indications that inflation is peaking. Patra said that internal research has showed that growth is unambiguously impaired when inflation exceeds 6% and with core measures of inflation showing signs of generalisation, monetary action is certainly warranted. Patra was speaking at an event organised by the PHD Chamber of Commerce and Industry on Friday.
Moving on. To reduce the tax incidence in the tour and hospitality sector, the fitment committee of the Goods and Service Tax Council has suggested levying tax on the margins made by tour operators at a suitable rate. Currently, a 5% GST is levied on gross tour cost without the facility of input tax credit. The panel also suggested “regularising” 5% GST paid by ice-cream parlours without input tax credit before October 2021. The GST on ice-cream parlours will, however, remain at 18% with ITC. There will not be any refund for parlours which have paid the tax at 18% in the period till October last year. These recommendations will be considered by the GST Council which will meet in Chandigarh on June 28-29.
Social media firms, as well as consumer-centric cyber forums, sought more clarity from the government this week regarding setting up of grievance appellate committees as part of the ministry of electronics and IT’s stakeholder consultation on the draft IT intermediary rules, 2022. Clarity was sought in the areas relating to the qualification of the members of the proposed committees and whether consumers would also be part of it. The stakeholders also suggested removal of certain ambiguities from some of the clauses. Through the proposed changes in the IT intermediary rules 2022, the government plans to make social media firms like Twitter, Facebook, Google, etc, more accountable. All the stakeholders have to send their written submission by July 6, after which the rules are likely to be notified by the end of next month.
In the technology sector, a healthy uptake is expected in 5G services once they are launched in the country, and 5G is estimated to account for around 40% of mobile subscriptions by 2027. In absolute numbers, this would translate to around 500 million users, Swedish telecom gear maker Ericsson said in its mobility report released this week. As per the report, though 5G has not been launched commercially, there is a good foundation for 5G uptake in India. According to the Ericsson ConsumerLab study, there is significant consumer interest in adopting 5G and 40 million smartphone users could take up the services in the first year of availability. Indian consumers also claim to be willing to pay 50% more for 5G bundled-plans, which presents a unique opportunity to mobile operators to grow their revenues within a market that has historically had very low average revenue per user.
And lastly, some exciting news for the automobile lovers. India’s largest carmaker, Maruti Suzuki, is gearing up to launch the all-new Brezza on June 30. The bookings for the 2022 Maruti Suzuki Brezza commenced on June 20. Now, a top company executive told Express Drives that this sub-compact SUV received 4,400 bookings within 24 hours. This roughly translates to around 184 new Brezza’s being booked every hour on day one. It is also worth mentioning that Maruti Suzuki has 20,000 pending orders for the current Vitara Brezza. In an interaction with FE, Shashank Srivastava, Senior Executive Director, Marketing & Sales, revealed that all those customers will be offered the all-new Brezza. One can book this sub-compact SUV by paying a token amount of Rs 11,000 on the company’s official website or by visiting their nearest Maruti Suzuki Arena dealership. The 2022 Maruti Suzuki Brezza will get a major cosmetic overhaul, a bunch of new features, and updated powertrain choices.

You were listening to the Expresso Business Update by The Indian Express and The Financial Express. Ask your digital assistant device to play the latest business news from the Indian Express and stay up to date with the happenings in the finance and business stories.

Expresso Business Highlights of the week"You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express. " Let's begin with some economy news. The Food Corporation of India will raise Rs 50,000 crore as short-term loans from banks next month for financing its operations because of the inadequate release of food subsidy expenses from the Centre. Sources told FE that against demand of around Rs 47,000 crore towards the expenses for April-June, 2022, FCI has been provided with only around Rs 33,000 crore so far under the food subsidy budget. The corporation has been relatively comfortable with the cash position over the last one year as the government promptly released the food subsidy amounts to it, after the practice of availing National Small Saving Fund loans for subsidy financing was stopped in Financial Year 22 Budget for the sake of transparency of government finances. In some more economy news, RBI's deputy governor Michael Patra has said that India’s central bank is hopeful that required monetary policy actions will be more moderate than in the rest of the world and there are indications that inflation is peaking. Patra said that internal research has showed that growth is unambiguously impaired when inflation exceeds 6% and with core measures of inflation showing signs of generalisation, monetary action is certainly warranted. Patra was speaking at an event organised by the PHD Chamber of Commerce and Industry on Friday. Moving on. To reduce the tax incidence in the tour and hospitality sector, the fitment committee of the Goods and Service Tax Council has suggested levying tax on the margins made by tour operators at a suitable rate. Currently, a 5% GST is levied on gross tour cost without the facility of input tax credit. The panel also suggested “regularising” 5% GST paid by ice-cream parlours without input tax credit before October 2021. The GST on ice-cream parlours will, however, remain at 18% with ITC. There will not be any refund for parlours which have paid the tax at 18% in the period till October last year. These recommendations will be considered by the GST Council which will meet in Chandigarh on June 28-29. Social media firms, as well as consumer-centric cyber forums, sought more clarity from the government this week regarding setting up of grievance appellate committees as part of the ministry of electronics and IT’s stakeholder consultation on the draft IT intermediary rules, 2022. Clarity was sought in the areas relating to the qualification of the members of the proposed committees and whether consumers would also be part of it. The stakeholders also suggested removal of certain ambiguities from some of the clauses. Through the proposed changes in the IT intermediary rules 2022, the government plans to make social media firms like Twitter, Facebook, Google, etc, more accountable. All the stakeholders have to send their written submission by July 6, after which the rules are likely to be notified by the end of next month. In the technology sector, a healthy uptake is expected in 5G services once they are launched in the country, and 5G is estimated to account for around 40% of mobile subscriptions by 2027. In absolute numbers, this would translate to around 500 million users, Swedish telecom gear maker Ericsson said in its mobility report released this week. As per the report, though 5G has not been launched commercially, there is a good foundation for 5G uptake in India. According to the Ericsson ConsumerLab study, there is significant consumer interest in adopting 5G and 40 million smartphone users could take up the services in the first year of availability. Indian consumers also claim to be willing to pay 50% more for 5G bundled-plans, which presents a unique opportunity to mobile operators to grow their revenues within a market that has historically had very low average revenue per user. And lastly, some exciting news for the automobile lovers. India’s largest carmaker, Maruti Suzuki, is gearing up to launch the all-new Brezza on June 30. The bookings for the 2022 Maruti Suzuki Brezza commenced on June 20. Now, a top company executive told Express Drives that this sub-compact SUV received 4,400 bookings within 24 hours. This roughly translates to around 184 new Brezza’s being booked every hour on day one. It is also worth mentioning that Maruti Suzuki has 20,000 pending orders for the current Vitara Brezza. In an interaction with FE, Shashank Srivastava, Senior Executive Director, Marketing & Sales, revealed that all those customers will be offered the all-new Brezza. One can book this sub-compact SUV by paying a token amount of Rs 11,000 on the company’s official website or by visiting their nearest Maruti Suzuki Arena dealership. The 2022 Maruti Suzuki Brezza will get a major cosmetic overhaul, a bunch of new features, and updated powertrain choices. You were listening to the Expresso Business Update by The Indian Express and The Financial Express. Ask your digital assistant device to play the latest business news from the Indian Express and stay up to date with the happenings in the finance and business stories.
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