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After a 10.2% increase last year, <keyword id="19910265" type="General" weightage="100" keywordseo="gold-prices" source="keywords">gold prices</keyword> are expected to rise another 9.9%, <keyword id="22706139" type="General" weightage="20" keywordseo="Infomerics-Ratings" source="keywords" meta.keywordsubtype="org" meta.entityname="Infomerics Ratings" meta.hostid="261" meta.entityid="Infomerics Ratings">Infomerics Ratings</keyword> said in a report, attributing largely to the <keyword id="20132853" type="General" weightage="20" keywordseo="Middle-East-crisis" source="keywords">Middle East crisis</keyword> involving Iran and Israel. The dragged <keyword id="20130144" type="General" weightage="20" keywordseo="geopolitical-crisis" source="keywords">geopolitical crisis</keyword> in the Middle East has spurred a rush into safe-haven assets such as gold. Historically, gold, as an asset, is considered a haven as it typically manages to retain or appreciate its underlying value in times of turbulence. "But this rise would now partly be offset by the reduced duty cut (in India)," said the Infomerics Ratings report. Historical trends, such as the surge during the Russia-Ukraine war, highlight gold's role as a safeguard against inflation and market instability during <keyword id="19982403" type="General" weightage="20" keywordseo="global-uncertainties" source="keywords">global uncertainties</keyword>. Prices of gold, considered safe investment bets, have seen a mild correction after the latest stellar bull run. Gold has been in demand for a considerable period, with its prices rallying to hit record highs now and then. Geopolitical conflict in West Asia that stretched for a long time, buying by several central banks, including the RBI, and physical demand, have altogether pushed gold prices northwards. Gold is a scarce commodity, and any mismatch in demand-supply conditions may invariably trigger a sharp price rise. "Gold's diverse uses, in jewellery, technology and by central banks and investors, mean different sectors of the gold market rise to prominence at different points in the global economic cycle. This diversity of demand and self-balancing nature of the gold market underpin gold's robust qualities as an investment asset," said Infomerics Ratings. Festive season buying, a weak dollar, uncertainty surrounding the US elections, and possible Fed rate cuts in September could raise prices, the report noted. In the wake of the presentation of the <keyword id="19908389" type="General" weightage="20" keywordseo="Union-Budget" source="keywords">Union Budget</keyword> on July 23, 2024, by the Finance Minister, gold prices in India declined sharply. Finance Minister Nirmala Sitharaman slashed the import duty on gold from 15% to 6% in the Budget presented on July 23. Days after the Budget, gold became cheaper by Rs 6,200 in most states of India. In the capital Delhi, the price of 10 grams of 24 carat gold came down to about Rs 69,140. "With surging demand for gold, especially as the <keyword id="19896655" type="General" weightage="20" keywordseo="wedding-season" source="keywords">wedding season</keyword> approaches, gold prices are likely to rise this financial year, driven by escalating geopolitical tensions, robust central bank buying, and expectations of <keyword id="21050688" type="General" weightage="20" keywordseo="US-Fed-rate-cuts" source="keywords">US Fed rate cuts</keyword>." Infomerics Ratings report said. In India, gold has strong cultural and religious significance. As per <keyword id="20195223" type="General" weightage="20" keywordseo="World-Gold-Council" source="keywords" meta.keywordsubtype="org" meta.entityname="World Gold Council" meta.hostid="261" meta.entityid="World Gold Council">World Gold Council</keyword>, India is one of the largest consumers of gold jewellery, accounting for about 25% of global gold demand. The demand for gold in India is primarily driven by weddings and festivals, making it an integral part of the country's culture and traditions. Touching upon regulatory structure and challenges in the gold sector, the report noted that the regulatory landscape for the gold industry in India is fragmented. "The regulatory landscape for the gold industry in India is fragmented, involving multiple circulars and notifications from various authorities such as the RBI, Ministry of Finance, Ministry of Commerce, DGFT, Customs, and others. This patchwork of regulations leads to confusion, inefficiency, and difficulty in compliance, as stakeholders must navigate through numerous documents to understand the rules," the report read.

Gold shines as demand for safe haven asset strong; Infomerics Ratings anticipates 10% price jump this year

New Delhi: India's fossil fuel emissions are projected to rise by 4.6 per cent in 2024, while China could see a marginal rise of 0.2 per cent, according to new research by a group of international scientists. As the UN climate conference in Baku, Azerbaijan, discussed raising trillions of dollars to tackle <keyword id="19907392" type="General" weightage="20" keywordseo="Climate-change" source="keywords">climate change</keyword>, the group of scientists known as the "Global Carbon Project" warned that emissions from fossil fuels -- the main driver of warming -- could hit a record 37.4 billion tonnes in 2024, up 0.8 percent from 2023 levels. This comes despite rapid growth in renewable energy and a landmark agreement at COP28 in Dubai last year to move away from fossil fuels. The "<keyword id="23948569" type="General" weightage="20" keywordseo="Global-carbon-budget-2024" source="keywords">Global Carbon Budget 2024</keyword>" report said total global CO2 emissions are set to go up from 40.6 billion tons in 2023 to 41.6 billion metric tons in 2024, which is on course to become the warmest year on record. "The impacts of climate change are becoming increasingly dramatic, yet we still see no sign that burning of fossil fuels has peaked," Professor Pierre Friedlingstein of Exeter's Global Systems Institute, who led the study, said. The 'Global Carbon Project' team said India, the world's most populous country and fastest-growing major economy, may see its fossil fuel emissions rise by 4.6 percent. According to a UN report released last month, India's greenhouse gas emissions surged by 6.1 per cent in 2023, contributing to 8 per cent of the global total. However, the country's historical contribution to global CO2 emissions stands at only 3 per cent. India's per capita emissions remain low at 2.9 tons of CO2 equivalent (tCO2e), far below the global average of 6.6 tCO2e. India, the world's third-largest greenhouse gas emitter, has pledged to reach net zero emissions (balancing emissions with removals) by 2070 and aims to achieve 500 gigawatts of renewable energy capacity by 2030. China's emissions, which make up 32 per cent of the global total, are likely to increase slightly by 0.2 per cent, though there is a chance they could decline, according to the data released on Wednesday. Emissions from the United States and the European Union, which contribute 13 per cent and 7 per cent of the global total, are both set to decline, with drops of 0.6 per cent for the US and 3.8 per cent for the EU. Emissions from the rest of the world, which together account for 38 per cent of global emissions, could see a rise of 1.1 per cent. The researchers said that in 2024, coal emissions will likely increase by 0.2 per cent, oil by 0.9 per cent, and gas by 2.4 per cent, globally. Coal, oil, and gas contribute 41 per cent, 32 per cent, and 21 per cent of global fossil CO2 emissions, respectively. However, given the uncertainty in projections, it remains possible that coal emissions could decline in 2024, they said. The report also pointed out that emissions from international aviation and shipping, which account for 3 per cent of global emissions and are tracked separately from national or regional totals, are expected to rise by 7.8 per cent in 2024. However, these emissions will still be 3.5 per cent below the 2019 pre-pandemic levels. Globally, emissions from land-use changes, like deforestation, have dropped by 20 per cent over the past decade but are expected to rise in 2024. Permanent CO2 removal through reforestation and new forest planting now offsets about half of the emissions from permanent deforestation, they added. Technology-based CO2 removal accounts for only a tiny fraction -- around one-millionth -- of CO2 emissions from fossil fuels. The report said that emissions from fires in 2024 have been above the average since the beginning of the satellite record in 2003, particularly due to the extreme 2023 wildfire season in Canada (which continued into 2024) and severe drought in Brazil. Land and ocean carbon sinks continued to absorb around half of the total carbon emissions, despite being negatively affected by climate change.

Global fossil emissions to reach record high in 2024; India's share to rise by 4.6 pc: Report

New Delhi: The Indian garment and knitted fabric sector is witnessing a bit of uncertainty due to the <keyword id="22498521" type="General" weightage="20" keywordseo="Bangladesh-crisis" source="keywords">Bangladesh crisis</keyword>, Finance Minister <keyword id="19916618" type="General" weightage="100" keywordseo="Nirmala-Sitharaman" source="keywords">Nirmala Sitharaman</keyword> said on Saturday, expressing hope that the interim government there will settle things "sooner rather than later." Interacting with the media on the sidelines of customary post Budget address to the central board of <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword>, she said efforts are being taken to ensure that borders with the neighbouring country are safe. With regard to Indian investments, she said, the textile industry particularly from Tamil Nadu has made investments there in good faith and they have done well having gone there. "The exports from <keyword id="19919639" type="General" weightage="20" keywordseo="bangladesh" source="keywords">Bangladesh</keyword> also increased because of the duty and quota liberal approach that we have towards low-income countries. They (Indian garment industry based in Bangladesh) could even export to India." Particularly, she said, the garment and knitted fabric sector is seeing a bit of uncertainty because of the crisis in the neighbouring country. "I hope that the investments are all safe... it's too early for me to see what kind of an impact this situation in Bangladesh will have on our economy. I hope that the interim government will settle things sooner rather than later so that both the people of Bangladesh and India can get back to normalcy," she said. Earlier this week, Bangladesh plunged into a political crisis when Sheikh Hasina resigned as the Prime Minister and fled the country. Soon after Parliament was dissolved leading to the creation of an interim government. The 84-year-old Nobel laureate Muhammad Yunus on Thursday took oath as the head of an interim government, replacing Sheikh Hasina who abruptly resigned and fled to India leaving the country in turmoil following deadly protests against her government over a controversial quota system in jobs. On Friday, Bangladesh's interim leader Yunus announced the portfolios of his 16-member council of advisors and named a former top diplomat to head the foreign ministry. The Nobel laureate's first task is to bring stability to Bangladesh after he responded to a call by student protesters for him to temporarily lead the country following weeks of deadly anti-government demonstrations against the government led by Sheikh Hasina.

Garment sector facing uncertainty due to Bangladesh crisis, normalcy may return soon: FM Nirmala Sitharaman

India's economy is expected to grow at 7-7.2 per cent in the current fiscal year driven by robust economic fundamentals and continuity in domestic policy reforms, <keyword id="20006170" type="General" weightage="100" keywordseo="Deloitte-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Deloitte India" meta.hostid="261" meta.entityid="Deloitte India">Deloitte India</keyword> said on Monday. The August update of <keyword id="19896400" type="General" weightage="20" keywordseo="deloitte" source="keywords">Deloitte</keyword>'s India Economic Outlook said several initiatives in the <keyword id="19908389" type="General" weightage="20" keywordseo="union-budget" source="keywords">Union Budget</keyword> 2024-25 toward improving agriculture productivity, creating jobs for the youth, and in manufacturing and addressing the challenge of access to finance for micro, small, and medium enterprises (MSMEs), would help improve supply-side demand, curb inflation, and prop up <keyword id="20139791" type="General" weightage="20" keywordseo="consumer-spending" source="keywords">consumer spending</keyword>, especially in rural areas. Deloitte India Economist Rumki Majumdar said, India will witness robust growth in the second half after a period of uncertainty in the first six months of the year. "Key contributing factors include the continuity in domestic policy reforms, reduced uncertainties in the US post-elections, and more synchronous global growth within a low inflation regime. "Additionally, improved global liquidity conditions, as central banks in the West ease their monetary policy stance, will enhance capital flows and drive higher investments, particularly in the private sector," Majumdar said. Observing that strong economic fundamentals would drive <keyword id="19972825" type="General" weightage="20" keywordseo="GDP-growth" source="keywords">GDP growth</keyword> between 7 per cent and 7.2 per cent in FY25, the Economic Outlook report said effectively addressing the urban-rural consumer spending gaps, inflation, and employment concerns can significantly enhance the affordability of aspirational rural consumers. "The much-desirable policy pivot was evident in the Union Budget presented last month. Reducing the urban and rural spending gap in the coming years will ensure sustained consumer demand from a larger consumer base," it added. Deloitte India's growth projection is at par with that of RBI, which projected FY'25 growth at 7.2 per cent. It is higher than Finance Ministry's Economic Survey which estimated GDP expansion between 6.5-7 per cent. The <keyword id="19948184" type="General" weightage="20" keywordseo="Indian-economy" source="keywords">Indian economy</keyword> grew at 8.2 per cent in 2023-24 fiscal year. The report further said despite strong growth, private consumption spending has remained modest over the past five years. The pandemic, high global and domestic inflation, consequent tightening of financial conditions, and the effects of poor agriculture output on rural demand seem to have capped private consumption growth in India. But a Deloitte research showed that India is witnessing distinct and broad-based shifts in consumption patterns. There is a broad-based shift in the composition of consumption towards more non-food and discretionary items, reflecting changing lifestyles and preferences that are here to stay. According to the Household Consumption Expenditure Survey, spending on discretionary goods and services (including conveyance) has gone up both in rural and urban India, with the former quickly catching up in spending on discretionary durable goods (including automobiles, electric and electronic goods) with the latter in just one decade. "Demand for processed food has been among the highest in most states, suggesting a shift towards ready-to-eat options. Rapid urbanization, increasing women's participation in the workforce, and enhanced marketing and availability are driving these changing dietary habits," the report said. According to Deloitte research, if increasing income in states results in a relatively equitable distribution and higher rural spending, businesses can tap into a larger proportion of the state's population that resides in rural areas. This gives businesses access to a large consumer base and a sustainable consumer spending demand, as compared to states with a widening gap.

Indian economy likely to grow at 7-7.2 percent in FY25,Deloitte India says

Finance Minister <keyword id="19916618" type="General" weightage="20" keywordseo="Nirmala-Sitharaman" source="keywords">Nirmala Sitharaman</keyword> on Tuesday announced <keyword id="20404375" type="General" weightage="20" keywordseo="income-tax-relief" source="keywords">income tax relief</keyword> for the <keyword id="20071167" type="General" weightage="100" keywordseo="middle-class" source="keywords">middle class</keyword>, a Rs 2 lakh crore outlay for <keyword id="22517841" type="General" weightage="20" keywordseo="job-creation-schemes" source="keywords">job creation schemes</keyword> over the next five years and a spending splurge for states run by her party's new coalition partners as she unveiled <keyword id="20509939" type="General" weightage="20" keywordseo="Modi-3-0" source="keywords">Modi 3.0</keyword> government's first budget after the general elections. With rural distress and unemployment being blamed for BJP losing its majority, Sitharaman in her seventh straight budget provided Rs 2.66 lakh crore for <keyword id="20027688" type="General" weightage="20" keywordseo="rural-development" source="keywords">rural development</keyword> and maintained spending on long-term infrastructure projects at Rs 11.11 lakh crore to boost <keyword id="19900794" type="General" weightage="20" keywordseo="economic-growth" source="keywords">economic growth</keyword>. She abolished 'angel tax' for all classes of investors in startups, cut customs duty on mobile phones and gold and simplified capital gains tax. She, however, raised the securities transaction tax (STT) on futures and options of securities, which led to tanking of stock markets. "India's economic growth continues to be the shining exception (in a world that is gripped by policy uncertainties) and will remain so in the years ahead," she said. "In this budget, we particularly focus on <keyword id="19898684" type="General" weightage="20" keywordseo="employment" source="keywords">employment</keyword>, <keyword id="20374219" type="General" weightage="20" keywordseo="skilling" source="keywords">skilling</keyword>, MSMEs, and the middle class." Besides Rs 2 lakh crore provided over a five year period for schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth, "I have made a provision of Rs 1.48 lakh crore for education, employment and skilling," she said. For Bihar, where assembly elections are due next year, the finance minister announced spending of Rs 60,000 crore on infrastructure projects like expressways, power plant, heritage corridors and new airports. The support to Bihar, whose ruling party and BJP's partner JD-U has been demanding an economic package and special category status for the state, is in the form of capital projects but not subsidy or cash dole. Similarly, for Andhra Pradesh, whose ruling TDP recently joined BJP-led NDA, she allocated Rs 15,000 crore in financial aid through multilateral agencies. A similar request for support to Bihar will be expedited, she said. For the middle class, she raised standard deduction -- a flat deduction from total salary earned by an employee in a year before calculating applicable income tax rate -- by 50 per cent to Rs 75,000 and tweaked tax slabs for taxpayers opting for the new income tax regime. This will lead to taxpayers under the new tax regime -- which offers lower rates of taxes but permits limited deductions and exemptions -- saving up to Rs 17,500 in tax annually, she said. To spur employment, the Budget provided for incentives for companies, including paying for one-month salary for first-time employees, incentive at specified sale to both employee and empower with respect to their retirement fund contribution in the first four years of employment and reimbursing employers up to Rs 3,000 per month for 2 years towards EPFO contribution of each additional employee. Also, a programme to improve skills as well internship for students and subsidised loans for higher education will be provided, she said. India's official unemployment rate in urban areas is pegged at 6.7 per cent but private agencies put it at much higher levels. Buoyed by robust tax collections and a higher-than-expected dividend receipt from the Reserve Bank, Sitharaman said the government's fiscal deficit -- the difference between the total revenue earned and total expenditure -- will be trimmed to 4.9 per cent of the GDP in 2024-25, below the 5.1 per cent figure estimated in the interim budget she presented in February. She reduced gross market borrowing marginally to Rs 14.01 lakh crore. The Budget for 2024-25 fiscal (April 2024 to March 2025) allocated Rs 1.52 lakh crore for agriculture and allied sectors, aid for building 3 crore affordable housing units in urban and rural areas, provided credit support to small and medium businesses, raised small loans to Rs 20 lakh for small business, proposed setting up 12 industrial parks, and provided for setting up a Rs 1,000 crore venture capital fund for space sector.

Modi 3.0 1st Budget: Tax relief for middle class, Rs 2 lakh cr job scheme

The residential market shows a positive outlook, with 51% of stakeholders predicting higher sales over the next six months. However, a notable 24% expect stability, while 25% predict a potential decrease, reflecting a balanced yet cautious sentiment, as per a recent <keyword id="19895043" type="General" weightage="20" keywordseo="Knight-Frank" source="keywords" meta.keywordsubtype="org" meta.entityname="Knight Frank" meta.hostid="261" meta.entityid="Knight Frank">Knight Frank</keyword> report. The outlook for residential launches is also positive, with 61% expecting an increase, suggesting continued demand. A more tempered view is held by 20% of respondents who expect stability, and 19% foresee a decrease in launches. The Indian <keyword id="20152263" type="General" weightage="20" keywordseo="real-estate-sector" source="keywords">real estate sector</keyword> continues to reflect a positive outlook for the near future, though with a more cautious approach. In terms of pricing, 63% of stakeholders expect a rise, but 36% anticipate stable prices, and a very small minority predict a decline. G Hari Babu, National President, National Real Estate Development Council (<keyword id="20429653" type="General" weightage="20" keywordseo="naredco" source="keywords">NAREDCO</keyword>), said, "The residential and office markets continue to show notable activity, signaling ongoing growth and opportunity. Developers and other key stakeholders, including banks and financial institutions, are maintaining a positive outlook." He added, "This suggests that while there may be short-term challenges, the sector is well-positioned to adapt and thrive. The continued optimism and activity in the market highlight the sector's ability to sustain its momentum and drive forward, amidst changing conditions." The <keyword id="22822547" type="General" weightage="20" keywordseo="office-leasing-market" source="keywords">office leasing market</keyword> shows signs of strong recovery, with 63% of respondents predicting an increase in leasing activity, driven by positive business sentiments and <keyword id="21313740" type="General" weightage="20" keywordseo="economic-revival" source="keywords">economic revival</keyword>. However, 24% expect stability, and 13% foresee a decline. New office supply also remains a point of interest, with 47% expecting an increase, while 29% anticipate stability, and 24% forecast a decrease. Furthermore, 67% of stakeholders expect office rents to rise, signaling confidence in the market's ongoing growth, even as 27% anticipate stable rents and 7% expect a decrease. The <keyword id="20635920" type="General" weightage="20" keywordseo="future-sentiment-score" source="keywords">Future Sentiment Score</keyword>, which measures stakeholders' outlook over the next six months, saw adjustments across various regions. The North Zone score slightly decreased from 65 in Q1 2024 to 63 in Q2 2024, though it remains firmly optimistic. The South Zone witnessed a more significant drop from 76 to 65, signaling a moderated outlook. In the East Zone, the score fell from 77 to 65, largely influenced by the discontinuation of the 2% stamp duty cut. The West Zone also saw moderation, with the score dipping from 73 to 66, though it too, remains optimistic. The overall Developer Future Sentiment score decreased from 72 to 61, reflecting a more guarded approach. Developers, while cautious, continue to remain optimistic due to strong sales since early 2023. On the other hand, the Non-Developer Future Sentiment core, which includes financial institutions and PE funds, also moderated from 73 to 68. This shift indicates stakeholders' careful consideration of macroeconomic concerns. Optimism in India's broader economic scenario remains strong, with 59% of respondents expecting an improvement, reflecting confidence in the country's economic resilience. However, 24% foresee stability, and 17% predict a decline, underscoring global economic uncertainties. Meanwhile, 51% of respondents anticipate increased funding availability for real estate investments, reflecting continued confidence in the financial sector's support for the real estate market. Shishir Baijal, Chairman and Managing Director of Knight Frank India Pvt Ltd, noted, "As we transition through 2024, a host of factors are playing out globally. The global economic landscape shows resilience despite ongoing challenges. Inflation rates are gradually aligning with central bank targets, enabling a more supportive monetary policy. India, benefiting from stable post-election conditions, remains a strong growth beacon." He added, "Domestic consumption is robust, supported by consumer loans, though there are some signs of growth moderation. Food inflationary pressures persist, but are converging overall towards price stability targets. With a projected GDP growth rate of 7.2% for FY 2025, India's outlook remains positive. An effective monetary policy by the Reserve Bank of India has helped sustain growth with price stability, positioning India as one of the fastest-growing large economies globally." The Current Sentiment score, which reflects stakeholders' view of the market compared to six months ago, moderated from a decadal high of 72 in Q1 2024 to 65 in Q2 2024. This suggests a more measured outlook as stakeholders navigate evolving global economic conditions. Despite the dip, the score remains indicative of optimism. Looking forward, the Future Sentiment index also adjusted from 73 in Q1 2024 to 65 in Q2 2024, signaling a positive yet more conservative outlook for the near term. While macroeconomic uncertainties may dampen enthusiasm, stakeholders continue to show confidence in the sector's resilience and adaptability.

Despite budget provisions, residential housing market will see sales growth, notes recent report by Knight Frank

<ul class="summary-list"><li><keyword id="60973" type="UNKNOWN" weightage="60" keywordseo="biden" source="Orion">Biden</keyword> proposed more funding in his 2023 <keyword id="11931253" type="UNKNOWN" weightage="60" keywordseo="budget" source="Orion">budget</keyword> for Federal Student Aid to help student-loan borrowers.</li><li>His administration also noted the "great uncertainty" that comes with resuming student-loan payments on May 1.</li></ul>Student-loan borrowers aren't the only ones unsure of what the resumption of payments on May 1 will look like.This week, President Joe Biden released his $5 trillion budget proposal for the upcoming fiscal year. Included in the proposal was $2.7 billion in funding for the Federal Student Aid (FSA) office to "provide better support to student-loan borrowers," like improving customer service and reforming loan forgiveness programs.While the <keyword id="11897874" type="UNKNOWN" weightage="60" keywordseo="education-department" source="Orion">Education Department</keyword>'s <a href="https://www2.ed.gov/about/overview/budget/budget23/justifications/q-sloverview.pdf">overview</a> reiterated the pandemic measures it's taken to give borrowers relief, it also expressed uncertainty with what might happen once those measures, like the pause on student-loan payments, expire.Also in the proposal was an <a href="https://www.businessinsider.com/biden-budget-proposal-help-student-loan-borrowers-without-debt-forgiveness-2022-3">$88.3 billion investment</a> to enact policies like doubling the maximum Pell Grant award and increasing funding for Historically Black College and Universities.The overview said that while pandemic student-loan relief has protected student-loan performance "from economic disruption caused by the COVID-19 pandemic," it added that "there is great uncertainty regarding student loan performance and corresponding cost estimates once these measures expire."This isn't the first time Biden's administration has cautioned of the challenges that could arise should payments resume in a month. In February, the Education Department told the Government Accountability Office that it will be "<a href="https://www.businessinsider.com/challenge-to-motivate-student-loan-debt-borrowers-in-may-gao-2022-2">a challenge to motivate</a>" student-loan borrowers to pay off their debt after an over two-year pause. And back in September, when payments were set to resume in February, FSA head <keyword id="12136821" type="UNKNOWN" weightage="60" keywordseo="richard-cordray" source="Orion">Richard Cordray</keyword> <a href="https://www.businessinsider.com/restarting-student-loan-debt-payments-richard-cordray-borrowers-psychological-hurdle-2021-9">said</a> the multiple extensions of the pause sowed "tremendous confusion about what even the immediate future may hold.""The old saying is that 'the wish is father of the thought,' and we can expect that many, many borrowers will not be eager to return to repayment when they have been led to believe, or even to hope, that was never going to happen," Cordray said at the time. "Getting over that psychological hurdle with millions of Americans may be a much harder job than we know."Following Cordray's comments, Biden did <a href="https://www.businessinsider.com/student-loan-debt-cancellation-payment-pause-borrowers-disabilities-defrauded-2021-6">extend</a> the pause for an additional 90 days, through May 1, but that restart date is just a month a way and advocates and lawmakers are growing increasingly worried borrowers will get cut off from relief before they're financially prepared. On Thursday, <a href="https://www.businessinsider.com/biden-cancel-meaningful-amount-student-loan-debt-extend-pause-democrats-2022-3">nearly 100 Democratic lawmakers</a> called on Biden to extend the pause on payments and cancel "a meaningful amount" of <keyword id="11896049" type="UNKNOWN" weightage="60" keywordseo="student-debt" source="Orion">student debt</keyword>, adding that the president needs to "make clear to the American public" his intentions to provide relief immediately.While Republican lawmakers have <a href="https://www.businessinsider.com/republican-bill-block-student-loan-debt-payment-pause-extension-may-2022-3">pushed back</a> on further relief, citing its cost to taxpayers and the <keyword id="11893570" type="UNKNOWN" weightage="100" keywordseo="economy" source="Orion">economy</keyword>, the New York Federal Reserve recently found the student-loan payment pause <a href="https://www.businessinsider.com/student-loan-debt-payment-pause-saved-borrowers-195billion-biden-plan-2022-3">saved 37 million borrowers $195 billion</a> — and that's money a lot of them <a href="https://www.businessinsider.com/stories-of-student-loan-debt-hamster-wheel-borrowers-cant-escape-2022-1">are not prepared</a> to part with.

Biden's Education Department is again signaling 'great uncertainty' surrounding student-loan repayment when the pause expires in 30 days

<ul><li>During the coming <keyword id="6358814" type="General" weightage="20" keywordseo="wedding" source="Orion">wedding</keyword> season, 35 lakh weddings will take place across the country.</li><li>Normally, in a wedding, 20% of the expenditure goes to the groom-bride's side while 80% of the expenditure goes to other third party agencies.</li><li>Destination weddings are picking up, but even now it is meant for only a certain class and the masses cannot afford it. </li></ul>The big fat Indian wedding – a celebration so lavish, it's the stuff of TV series and legends. This extravaganza isn't just about tying the knot; it's a whirlwind of opulence, from palatial venues to sumptuous feasts. In a land where traditions meet modernity, and where elephants and drones both make appearances, welcome to a world of big fat Indian weddings. Along with brides, grooms and their families, traders across the country too are gearing up and preparing themselves adequately for one big bonanza for the upcoming wedding season. The first spell will begin from November 23, the day of Dev Uthan Ekadashi, till December 15th. The next phase of the wedding season will start from mid- January and will continue till July. During this period around 35 lakh weddings will be take place across the country with a flow of about ₹4.25 lakh crore by way of wedding purchasing and obtaining various services in the wedding business, as per a survey conducted by the CAIT Research and Trade Development Society, the research arm of Confederation of All India Traders (CAIT), among traders and service providers of 20 different cities. “According to estimates, there are 35 lakh weddings going to happen this year with an average spend of 12 lakh per wedding. Last year during the Nov-Dec timeline 32 lakh weddings happened. So, in my opinion the wedding season is going to be even bigger,” says Aman Kumar, co-founder and CTO, VivaHIT, a wedtech company. <cmsannotation type="cmsannotation" annotationid="Economic slowdown: Wait, what is that?" comment="Subhead" text="Economic slowdown: Wait, what is that?">Economic slowdown: Wait, what is that?</cmsannotation> There is a sense of overall economic uncertainty. Also, there is a slowdown in jobs. However, these factors are not likely to act as a dampener as far as wedding spending is concerned. “These short term factors don't really affect wedding spends in general. Just 1-2 years of bad market doesn't impact this number that much,” says Kumar. Also, with a shorter wedding season in November- December, the prices may have gone up, or there could be a large demand supply mismatch. However, Praveen Khandelwal, secretary general, CAIT says that we must understand that after Covid, this is the first year when there is no threat of any Covid or any other epidemic. <cmsannotation type="cmsannotation" annotationid="So, there is a good spirit among the people of the country to solemnise weddings at a faster pace." comment="Subhead" text="So, there is a good spirit among the people of the country to solemnise weddings at a faster pace.">So, there is a good spirit among the people of the country to solemnise weddings at a faster pace.</cmsannotation> Prices will not be affected because most of the dates are decided months before. The weddings for the first spell of the wedding season have already been finalised, maybe in the month of July or maybe in the month of June or in the previous months. Once the dates are finalised, the first thing of any wedding is to book the <keyword id="6424187" type="General" weightage="20" keywordseo="venue" source="Orion">venue</keyword>. “As far as the prizes are concerned, I don't think that there will be any splash in the prices,” says Khandelwal,. <cmsannotation type="cmsannotation" annotationid="Have money will spend" comment="Subhead" text="Have money will spend">Have money will spend</cmsannotation> Like anything else wedding <keyword id="161963" type="General" weightage="20" keywordseo="budgets" source="Orion">budgets</keyword> vary. According to CAIT, during this marriage season, about 6 lakh weddings will have an estimated expenditure of ₹3 lakh per wedding, while in about 10 lakh weddings the cost per wedding will be around ₹6 lakh per wedding, 12 lakh weddings will cost about ₹10 lakhs per wedding. Further, 6 lakhs weddings will cost ₹25 lakhs per wedding, 50 thousand weddings will have ₹50 lakhs expenditure per wedding and 50 thousand weddings will be such in which ₹1 crore or more money will be spent. Wedding expenses generally follow a 80:20 rule. Says Khandelwal, “It is a known fact that about 20 percent of the expenditure of each marriage goes to the broom-bride's side while 80 percent of the expenditure goes to other third agencies working in solemnising the marriage.” Put together, the market is huge. <cmsannotation type="cmsannotation" annotationid="Subhead" text="Band Baaja Baraat: A complete ecosystem">Band Baaja Baraat: A complete ecosystem</cmsannotation> It is important to understand that weddings span several industries. According to CAIT, during the wedding season, a large amount of business happens in the repair of houses and paint of the houses. Additionally, a wide range of items such as jewellery, traditional clothing like sarees and lehenga-choli, furniture, ready-to-wear garments, shoes, wedding and greeting cards, dry fruits, sweets, fruits, worship items, groceries, food grains, decoration items, home decor, electrical appliances, electronics, and various gift items are in high demand and expected to have a successful year. Venues for weddings, including banquet halls, hotels, open lawns, community centres, public parks, and farmhouses, are prepared across the country. Besides purchasing accessories for each wedding, various services play a crucial role. This includes tent decorators, floral decorations, crockery, catering services, travel arrangements, transportation services, professional welcoming groups, vegetable vendors, photographers, videographers, musical services like Shehnai, Orchestra, DJ, procession horses, wagons, lighting services, and much more. ‘Event management has also emerged as a thriving business, taking care of wedding arrangements from venue booking to event execution. So, get ready to witness Indian weddings in all their grand glory this year! With all the glitz, glamour, and joyful chaos, it's like a Bollywood blockbuster come to life. Love conquers all, and Indian weddings are the ultimate celebration of it!

The big fat Indian wedding is set to become bigger and fatter this year

<ul class="summary-list"><li><keyword id="12416504" type="UNKNOWN" weightage="60" keywordseo="meta" source="Orion">Meta</keyword> plans to "operate leaner" as it braces for a macroeconomic <keyword id="12277778" type="UNKNOWN" weightage="60" keywordseo="slowdown" source="Orion">slowdown</keyword>, according to a leaked memo <a href="https://www.reuters.com/article/idUSL1N2YH25Y">seen by Reuters</a>.</li><li>In the memo, Meta's chief product officer warned "we are in serious times here and the headwinds are fierce." </li></ul>Meta plans to trim excess costs as it readies itself for a slowdown in business for the second half of this year, according to an internal memo from Meta's chief product officer <a href="https://www.reuters.com/article/idUSL1N2YH25Y">seen by Reuters</a>.In a note to employees, Chris Cox wrote that the company will "prioritize more ruthlessly" and "operate leaner, meaner, and better executing teams," according to Reuters.Cox highlighted macroeconomic uncertainty as the reason for the decision, writing "we are in serious times here and the headwinds are fierce."He also warned that "teams should not expect vast influxes of new engineers and budgets," Reuters reported. In a comment to Insider, a Meta spokesperson said, "This was simply an internal strategy memo intended to build on what we've already said publicly in earnings about the challenges we face and the opportunities we have, where we're putting more of our energy toward addressing."The memo comes as experts warn of <a href="https://www.businessinsider.com/advertising-cuts-are-coming-winners-losers-2022-6?IR=C">stalling advertising spending</a> across industries as companies brace for a possible US recession. Meta's CFO warned of a <a href="https://markets.businessinsider.com/news/stocks/meta-shares-plunge-20percent-as-facebook-reports-first-ever-daily-users-loss--warns-of-ad-slowdown-10998074">potential slowdown</a> in <keyword id="11894120" type="UNKNOWN" weightage="60" keywordseo="advertising" source="Orion">advertising</keyword> revenue earlier this year. In February, the company reported its <a href="https://www.businessinsider.com/meta-facebook-user-numbers-shrink-first-time-ever-2022-2">first-ever sequential quarterly decline</a> in daily active users.Many tech companies like <a href="https://www.businessinsider.com/tesla-is-sacking-staff-who-recently-started-withdrawing-job-offers-2022-6">Tesla</a> and <a href="https://www.businessinsider.com/inside-coinbase-layoffs-crypto-employees-spend-salaries-overhire-bitcoin-2022-6">Coinbase</a> have prepared for decelerating growth by <a href="https://www.businessinsider.com/recession-2022-companies-prepare-economic-downturn-netflix-layoffs-meta-hiring-2022-5">announcing layoffs</a>. While Meta has not announced <keyword id="12651442" type="UNKNOWN" weightage="60" keywordseo="layoffs" source="Orion">layoffs</keyword>, Insider has reported that the company has <a href="https://www.businessinsider.com/facebook-is-freezing-hiring-heres-why-and-who-it-impacts-2022-5">instituted a hiring freeze</a> that will extend through the year.

Meta plans to operate 'leaner, meaner, better executing teams' as it prepares for slower growth for the rest of the year, according to an internal leaked memo

<ul><li>Income tax bonanza for the salaried class and the government’s capital expenditure push have emerged as the stars of Budget 2023-24.</li><li>While the income tax exemptions are expected to increase disposable incomes of taxpayers and thereby boost demand, the capex push is aimed at promoting growth and increasing job opportunities, say experts.</li><li>The government also announced a slew of measures for the agriculture and green energy sectors, promoting the use of technology to boost output and transition to green energy.</li></ul>An upward revision in income tax slabs and a continued push on capital expenditure investments emerged as the key highlights of the Union Budget 2023-24. While the revised tax slabs under the new tax regime will benefit the middle-class and salaried individuals, the government also announced a 33% increase in its capital investment outlay for FY24 to boost growth and promote job creation. “We are steering an ambitious people-centric agenda to address global challenges and to facilitate sustainable economic development,” finance minister Nirmala <keyword id="679937" type="General" weightage="80" keywordseo="sitharaman" source="Orion">Sitharaman</keyword> said, announcing the budget. Despite an increase in capital expenditure outlay, the government has continued on its path of fiscal consolidation. Sitharaman said that while the government will meet the fiscal deficit target of 6.4% in FY23, it has been reduced to 5.9% in FY24, and further below 4.5% in FY 25-26. Sitharaman also announced that the gross borrowings are estimated at ₹15.43 lakh crore in FY24, lower than the Economic Survey 2023 estimate of ₹15.77 lakh crore. “This budget is a Bahubali budget. With one arrow multiple targets are shot. Fiscal prudence is achieved with lower deficit and path set till FY26. Consumption is supported through tax cuts. Investment outlay is enhanced. Numbers are realistic or conservative to enhance the credibility,” said Nilesh Shah, managing director, Kotak Mahindra Asset Management Company. <cmsannotation type="cmsannotation" annotationid="Here are all the major announcements of Budget 2023-24" comment="subhead" text="Here are all the major announcements of Budget 2023-24">Here are all the major announcements of Budget 2023-24</cmsannotation> Slabs for income tax computation enhanced under the new regime: Under the new income tax regime, individuals with an annual income of up to ₹9 lakh will now have to pay an income tax of ₹45,000, which is an effective tax rate of 5%. The government has also increased the limit for rebate under section 87A of the Income Tax Act to ₹7 lakh from ₹5 lakh earlier. The following are the new tax slabs: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Slab </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax rate </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹0-3 lakh </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nil </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3-6 lakh </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹6-9 lakh </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹9-12 lakh </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹12-15 lakh </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹15 lakh and above </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> In addition to this, there’s good news for salaried individuals as well, with the standard deduction being hiked to ₹52,500 from ₹50,000 earlier. Further, the tax exemption limit for leave encashment has been raised from ₹3 lakh to ₹25 lakh. Lastly, the new income tax regime will be applicable by default going forward. However, assessees will have an option to opt out and file their returns under the old regime. “More money in the hands of the middle class will have a cascading effect across the economy which needs this push as we continue to depend on domestic demand to beat the global uncertainty,” Sanjeev Krishan, chairperson, PwC in India. Capital expenditure outlay gets a major boost: In a bid to promote growth and job creation, the government has announced a 33% increase in capital expenditure outlay to ₹10 lakh crore for FY24, or about 3.3% of the gross domestic product (GDP). The capex outlay for FY23 is estimated at ₹7.5 lakh crore. Sitharaman outlined that infrastructure is one of the seven priorities of the government, which is now backed by the 33% increase in capex outlay for this segment. Overall, the government’s capex outlay has increased over three-fold from ₹3.1 lakh crore in FY19 to ₹10 lakh crore in FY24. Here’s how the government’s capex spending has trended since 2019 <div type="image" title="Capex spending FY19-FY24." msid="97524051" hostid="261" sizebytes="16064" caption="&amp;lt;p&amp;gt;Indian government&amp;#39;s capex spending trends since FY19&amp;lt;/p&amp;gt;"></div> “This is a positive development for domestic commercial vehicle space and more so for medium and heavy commercial vehicle (M&amp;HCV) domain,” said ICICI Direct. The government announced an allocation of ₹2.7 lakh crore for roadways and ₹2.4 lakh crore for railways. “A 33% increase in capital expenditure to ₹10 lakh crore, the highest ever, will go a long way in building roads, ports, and airports — crucial for making India a reliable investment destination. Investment of ₹2.4 lakh crore in railways is commendable,” said Anand Rathi, founder and chairman, Anand Rathi Group. Apart from this, Sitharaman also announced an outlay of ₹10,000 crore per annum to develop urban infrastructure. The government has also announced a 66% increase in funding for the PM Awaas Yojana to ₹79,000 crore in FY24, which will benefit engineering, production and construction companies. Further detailing the infrastructure push, Sitharaman said that the government has identified 100 critical transport infrastructure projects for steel, ports, fertilizers and other sectors with an investment outlay of ₹75,000 crore, which includes a private sector investment of ₹15,000 crore. Agri Accelerator Fund to encourage innovation: In a bid to promote the adoption of technology in the agriculture sector, the government announced a new Agri Accelerator Fund to promote agri-tech startups in rural areas, with a cluster-based and value chain approach through public-private partnerships. “The proposal to set up an Agri Accelerator Fund for agri-tech startups is a welcome move, and was much anticipated. Agri-tech startups who are focusing on improving the market reach for agricultural products and produce, as well as last mile delivery of products to farmers should benefit from this move,” said Raj Ramachandran, partner, JSA. Sitharaman also announced a slew of measures for the agriculture sector, which are: <ul><li>Increase in agriculture credit target to ₹20 lakh crore, with a special focus on animal husbandry, dairy and fisheries.</li><li>A new sub-scheme of PM Matsya Sampada Yojana with a targeted investment of ₹6,000 crore to further enable activities of fishermen and fish vendors.</li><li>Computerisation of 63,000 primary agricultural credit societies with an investment outlay of ₹2,516 crore.</li></ul>Green energy ambitions get a boost: The government also announced a slew of measures to encourage and promote green energy in India, including ₹35,000 crore priority capital for transition from fossil fuels to green energy. Of this, the specific outlay for National Hydrogen Mission has been set at ₹19,700 crore. The government has set a target of 5 million metric tonnes of hydrogen production capacity by 2030. Key players in the hydrogen space are Mukesh Ambani and Gautam Adani. Their green energy bets, primarily based on green and blue hydrogen, amount to $125 billion. <cmsannotation type="cmsannotation" annotationid="‘Force multiplier’ budget, say analysts" comment="subhead" text="‘Force multiplier’ budget, say analysts">‘Force multiplier’ budget, say analysts</cmsannotation> Overall, the budget has been well-received by experts, with the broad consensus being that this is a growth-oriented budget. “Growth with fiscal consolidation continues to be the continuing theme with capital expenditure at 3.3% of GDP while being committed to the long term 4.5% deficit target. Providing more incentives under the new tax regime to middle class Indians, will also widen the net of those who can invest,” said Radhika Gupta, MD and CEO, Edelweiss Asset Management. Sensex zoomed 1,180 points reacting to the tax announcements made by the government. The tax exemptions under the new regime will increase the disposable income in the hands of taxpayers, according to ICICI Securities, helping boost demand. “In keeping with its focus on inclusive growth, the Union Budget has hiked outlays on infrastructure and agriculture which in our view would have a force multiplier impact on the economy,” said S Ranganathan, head of research at LKP Securities. According to economists, the reduction in fiscal deficit targets for FY24 through FY26 will also offer relief for bond markets, with the 10-year bond yield projected to moderate to 7-7.1% in FY24, according to Abheek Barua, chief economist, HDFC Bank. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/sensex-zooms-as-finance-minister-delivers-tax-bonanza-to-middle-class/articleshow/97510050.cms">Sensex zooms 1,180 points as FM delivers tax bonanza to middle-class</a> <a href="https://www.businessinsider.in/budget/news/budget-2023-24-nirmala-sitharaman-speech-highlights-and-updates/articleshow/97512649.cms">Budget 2023-24 highlights: Those with income below ₹7 lakh a year need not pay income tax</a> <a href="https://www.businessinsider.in/budget/news/government-to-set-up-three-centres-of-excellence-in-artificial-intelligence/articleshow/97520242.cms">Budget 2023 gives a boost to artificial intelligence – government to set up three centers of excellence</a>

Income tax bonanza, capex push emerge as the stars of Budget 2023-24

<ul><li>Focus on job creation and investment-driven growth should be a primary agenda in this <keyword id="6358021" type="General" weightage="50" keywordseo="budget" source="Orion">budget</keyword>. Infrastructure projects hold the key to the development of any country. </li><li>Tightening of the <keyword id="6357126" type="General" weightage="20" keywordseo="monetary-policy" source="Orion">monetary policy</keyword> and consecutive rate hikes by the RBI as inflation crept impacted the purchasing power capacity of a large section of the populace, especially in the rural sector. </li><li>In this economic climate, where credit availability is facing global headwinds, the government can offer support via credit stimulus to small and medium enterprises.</li></ul>The Union Budget is one of the most anticipated events, closely watched by market participants. By offering a blueprint for the economic roadmap of the union government, the budget often serves as a catalyst that stimulates overall economic and market growth. As the world battles economic headwinds and recessionary trends, all eyes are on the FM and what she will present on February 1. Being the last full-year budget before the Union Elections in 2024, we expect the government to deliver a growth-oriented budget, offering a roadmap to generate gainful employment opportunities without burning a hole in fiscal health. From a market perspective, any announcement or policy draft to bring the oil and gas sector under GST would be positive. The market will also react favorably to any plan to reduce pending receivables of infrastructure companies from government undertakings via a quick dispute resolution process. Moreover, new measures to prod state governments to improve the financial health of electricity companies will also be received well by the market. The markets, however, would be wary of a full-fledged populist budget or a significant increase in subsidies that impact the fiscal consolidation roadmap. These measures can result in a market correction. A substantial rise in borrowings that can increase long-term bond yields could make markets jittery. We believe that in this budget, the government will remain committed to maintaining macroeconomic stability by adopting a fiscal consolidation path. The government is dealing with slowing global growth and macroeconomic uncertainties threatening domestic growth. Against this backdrop, achieving the right balance between growth and inflation, with a focus on capacity building, is crucial. <cmsannotation type="cmsannotation" annotationid="A push to job creation and infra growth" comment="subhead2" text="A push to job creation and infra growth">A push to job creation and infra growth</cmsannotation> Focus on job creation and investment-driven growth should be a primary agenda in this budget. Infrastructure projects hold the key to the development of any country. An emphasis on infrastructure spending and increasing budgetary allocation to infra projects in the upcoming fiscal will be helpful in the push for growth. Steps towards infrastructure development will augment our job creation capabilities as well. Additional focus on building and improving public infrastructure such as water, metro, railways, defence, digital infrastructure, and green initiatives is the need of the hour. It will showcase our true potential as an investment destination, ensure easy and fast movement of goods and services, and help in employment generation. We hope that the upcoming budget takes steps to provide a fresh impetus to private capital expenditure that has been sluggish in the past few years. It will boost investment activities leading to more production and employment. The PLI scheme that offers production-linked incentives to multiple sectors and industries to manufacture domestically has been a huge success. We hope the government takes steps to include more industries and sectors under the PLI ambit. This move will boost manufacturing in India and help drive growth and employment opportunities. <cmsannotation type="cmsannotation" annotationid="Higher rural spending to beat inflation pressures" comment="subhead2" text="Higher rural spending to beat inflation pressures">Higher rural spending to beat inflation pressures</cmsannotation> Inflation has been relatively high in the last fiscal, driven by global cues. A tightening of the monetary policy and consecutive rate hikes by the RBI as inflation crept has impacted the purchasing power capacity of a large section of the populace, especially in the rural sector. We hope the government offers relief measures for those at the bottom of the pyramid. As the rural economy recovers slowly from the pandemic, more policy measures aimed at offering affordable housing options and expanding the scope of employment guarantee schemes will be helpful. Employment and housing are two core areas where government policy in the budget could bring about lasting change. The Economic advisory council to the Prime Minister has spoken about universal basic income and higher fund allocation for the social sector to reduce inequality. More steps in this direction will help augment rural growth and put the country on the path to prosperity and growth. The government can also offer relief by expanding the current income tax benefits for housing to support growth and affordability in rural areas. <cmsannotation type="cmsannotation" annotationid="Small and Medium enterprises" comment="subhead2" text="Small and Medium enterprises">Small and Medium enterprises</cmsannotation> The Indian economy has come out of the pandemic-induced slump and is a shining light, even as global economic growth stalls. In this economic climate, where credit availability is facing global headwinds, the government can offer support via credit stimulus to small and medium enterprises. The banking system is on the cusp of a good recovery with robust balance sheets, improving asset quality trends, and lower provisioning. A stimulus will help credit growth pick up steam. We hope the budget sets a roadmap to build and bolster the entrepreneurship culture in India with new policies and a push for fresh investments in agriculture and allied activities that can be a focus area. The budget should also focus on developing rural industries and improving the reach of healthcare facilities in rural areas. In a nutshell, the budget must focus on driving and sustaining growth via capacity creation. The government must take steps to build on its capital expenditure by fostering private capital expenditure. Making the atmosphere more conducive for capital market investments will help fulfil the dream of making the 20s truly The Indian Decade. (B Gopkumar is MD &amp; CEO, Axis Securities)

Conducive capital markets will help fulfil the dream of making this India’s Decade

<ul><li>India’s current <keyword id="173153" type="General" weightage="20" keywordseo="capital-gains-tax" source="Orion">capital gains tax</keyword> regime provides for multiple tax rates and differential treatment based on the holding period and type of assets. </li><li>A simplified capital gains tax regime can help investors plan their investment/divestment strategies efficiently. </li><li>Writing exclusively for Business Insider India, the columnists suggest amendments that the government needs to consider in the upcoming Budget to rationalise India’s capital gains tax regime. </li></ul>Capital investment plays an important role in facilitating economic growth, creating employment and encouraging savings. Hence, many countries tax capital gains at a preferential rate. India too follows a preferential-tax policy for capital gains, e.g., partial exemption on long-term capital gains on sale of listed shares (up to ₹1,00,000 of such gains were fully exempt from tax until 31 March 2019) and lower tax rates for certain types of capital gains. However, the current capital gains tax regime in India provides for multiple tax rates and differential treatment based on the holding period and type of assets. To bring clarity to the capital gains tax regime, the government should consider simplifying the norms. A simplified capital gains tax regime can help investors plan their investment/divestment strategies efficiently. Amendments to be considered in Budget FY24 to rationalise India’s capital gains tax regime The current capital gains tax regime with numerous tax rates and differential tax treatments causes uncertainty and confusion amongst investors. To simplify the tax regime, the following steps can be considered: <ul><li>Currently, the assets are classified into long-term and short-term based on their class – for instance listed shares of a company qualify as long-term capital asset if held for more than 12 months, whereas listed units of a business trust qualify as long-term capital asset if held for more than 36 months, resulting in differential treatment for similar class of assets. </li></ul>Hence, the holding period for various types of capital assets can be rationalised. <ul><li>There are numerous tax rates for different types of capital assets and their holding period, e.g., the long-term capital gains on listed shares are taxed at 10% whereas, the long-term capital gains on house property are taxed at 20%. </li></ul>Such multiple rates can be reduced to a maximum of 2 to 3 rates. <ul><li>To tax only the actual cash gain earned by the investors on sale of capital assets, expenses such as Securities Transaction Tax (STT), legal fees, portfolio management fees, consultation fees, etc., incurred by investors in connection with the purchase and sale of shares can be allowed as expense to compute capital gains. </li></ul><ul><li>Long-term capital gains arising from sale of capital assets (other than residential house property) are exempt from tax for individuals and HUFs (Hindu undivided families), if the entire ‘net consideration’ is deposited under Capital Gain Account Scheme. However, in some cases (such as deduction of tax by buyer, receipt of consideration in instalments, etc.), the actual amount available to deposit under the scheme would be less than the ‘net consideration’, resulting in a shortfall. </li></ul>To avoid litigation, clarity should be provided on this aspect. <ul><li>Individuals and HUFs are exempt from capital gains tax arising on sale of agricultural land if such gain is invested in another agricultural land within two years of the sale. </li></ul>Like the relief provided for residential house property, the exemption on sale of agricultural land should be available if invested in another agricultural land either one year prior or within two years of sale. <ul><li>The capital gains tax regime provides for deemed income consequences for both buyer and seller, where the transfer of assets takes place at a price lower than their fair market value. Hereby, the fair market value is considered as the deemed sale consideration for the seller for computation of capital gains and the difference between the fair market value and the purchase consideration is considered as deemed income in the hands of the buyer. </li></ul> <div type="image" title="Shivani Kotadia - Photo" msid="97090764" hostid="261" sizebytes="313968" caption="&amp;lt;p&amp;gt;&amp;lt;em&amp;gt;Shivani Kotadia is a Manager at Deloitte India.&amp;lt;/em&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;&amp;lt;em&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/em&amp;gt;&amp;lt;/p&amp;gt;"></div>However, there is some ambiguity in the deemed income provisions for certain types of transactions (such as transactions effected pursuant to Insolvency &amp; Bankruptcy Code, 2016, slump sale transactions, conversion of compulsorily convertible instruments, etc). Such transactions can be kept outside the purview of the deemed income provisions. <ul><li>To incentivise promoters, most private equity players are increasingly introducing a combination of clauses in the shareholders’ agreement, including consideration payable in a contingent manner based on certain performance milestones. However, there is no clarity on taxation of such contingent consideration. </li></ul>It may be clarified that the contingent consideration should be taxed only in the year in which the same is crystallised. <ul><li>Currently, capital gains tax exemption/relief has been provided to some forms of business reorganisation, this relief/exemption can also be extended to other forms of business reorganisation, such as: <ul><li>Exemption from capital gains arising on conversion of LLP to a company i.e., exemption in the hands of the partners of an LLP on transfer of their interest in the LLP in exchange of shares of a company, aligned with exemption provided to a firm on being succeeded by a company. </li><li>Specific exemption to be provided for merger of an Indian company into a foreign company. </li><li>Similar to the relief provided to a foreign company, relief from capital gains tax too can be provided to the shareholders of the amalgamating foreign company. </li><li>It can be considered to provide tax exemption to intra-group slump sale transactions, subject to a certain lock-in period. </li></ul></li></ul>Also, clarification needs to be provided on the applicability of grandfathering clause in case of amalgamation/demerger of listed entities, post 31 January 2018. <div type="image" title="Shivani Kankaria" msid="97090806" hostid="261" sizebytes="31524" caption="&amp;lt;p&amp;gt;&amp;lt;em&amp;gt;Shivani Kankaria is a Deputy Manager at Deloitte India.&amp;lt;/em&amp;gt;&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;&amp;lt;em&amp;gt;&amp;lt;br&amp;gt;&amp;lt;/em&amp;gt;&amp;lt;/p&amp;gt;"></div>Given that income from capital gains is a secondary source of income for the majority of the taxpayers, lack of clarity and tedious compliances is cumbersome for such taxpayers. The above amendments/clarifications would help in rationalisation of the capital gains tax regime and improve the vibrancy of capital markets in India. Utkarsh Trivedi is a Partner at Deloitte India. Shivani Kotadia is a Manager and Shivani Kankaria is a Deputy Manager at the same firm.

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