Eight years of GST rollout: PwC India proposes three-slab structure, inclusion of petro-products to ease compliance
As India's GST completes eight years, PwC India advocates for reforms like a simplified three-rate structure and the phased inclusion of petroleum products, starting with ATF, to align with global trade dynamics. While GST collections have surged, the report highlights challenges like inverted duty structures and cascading tax effects due to the exclusion of certain items.from Latest Business News Today: Stock Markets, Financial News, India Business & World Business News https://ift.tt/WfGEj8B
Starting July 2025, SBI, HDFC Bank, and Kotak Mahindra Bank will implement significant credit card changes. SBI Card discontinues air accident insurance and updates its Minimum Amount Due calculation. HDFC Bank introduces new charges for gaming, wallet loads, and utility payments, while Kotak Mahindra Bank replaces the Myntra Card with the Kotak League Credit Card.
July 2025 brings key financial and service changes for Indian consumers. Aadhaar becomes mandatory for online Tatkal train bookings, with stricter OTP verification. Axis Bank revises ATM charges, increasing fees for transactions exceeding free limits. ICICI Bank introduces new service fees, impacting ATM usage and cash transactions. The government will also announce new interest rates for small savings schemes.
Cushman & Wakefield's report emphasizes that India can boost manufacturing and self-reliance by focusing on plug-and-play industrial parks and better logistics. Survey reveals that infrastructure improvements are driving manufacturers to scale up. Addressing logistics costs, warehousing capacity, and skill gaps are crucial.
Mahanadi Coalfields Limited will start two new coal mines in Odisha by FY 2029-30. These mines will add 35 million tonnes to reserves. The Subhadra mine will be operational by FY 2025-26. The Balabhadra mine is expected to start by FY 2029-30. MCL aims for net zero carbon emissions by FY 2029.
China's industrial profits saw a sharp decline in May. This reverses a previous recovery. Factory activity slowed down. Deflationary pressures increased. Trade instability with the United States continues. Data from the National Bureau of Statistics reveals a 9.1 percent year-on-year drop. Weak domestic demand and property sector issues persist. Experts suggest more policy support is needed for recovery.
Promoters, PE firms, and strategic investors offloaded over Rs 1 lakh crore in Indian shares. This selling trend, driven by attractive valuations and strategic reasons, was absorbed by strong institutional demand, particularly from domestic mutual funds. Experts emphasize understanding the motivations behind divestments to assess market health.
Bitcoin briefly exceeded $108,000 amid easing geopolitical tensions and rising institutional interest. As of 11:50 am IST, it traded at $107,800, up 1.5%. Ethereum also rose, while some altcoins declined, reflecting cautious retail sentiment. Experts predict potential volatility due to options expiry and anticipate a breakout if Bitcoin surpasses $108.5K.
The Cabinet Committee has approved a revised Jharia Master Plan with a Rs 5,940.47 crore outlay to address coal fires, land subsidence, and rehabilitate affected families in Jharkhand. The plan prioritizes sustainable livelihoods through skill development, grants, and infrastructure development at resettlement sites. A dedicated fund and partnerships with skill development institutes will further boost income-generating opportunities.
Mukesh Ambani considers launching Reliance Jio in 2016 as his biggest gamble with financial analysts' skeptical. Jio's affordable data plans revolutionized India's telecommunications sector, driving down costs and enabling widespread internet access.
Gautam Adani announced that Adani Group's drones and anti-drone systems played a crucial role in Operation Sindoor, India's counter-terror strike. The company's loitering munitions conducted precision strikes, while counter-drone units protected Indian assets. Adani reaffirmed the group's commitment to national missions, reporting record revenue and significant capital expenditure despite global challenges and US regulatory scrutiny.
India is poised for a consumption boom, potentially adding $30-40 billion annually, driven by tax cuts, salary increases, and lower borrowing costs. Analysts anticipate a significant rise in discretionary spending, benefiting sectors like food delivery and consumer goods. Investors should consider opportunities as economic indicators and liquidity conditions support sustainable growth.
NPCI introduced a real-time PAN and bank account validation facility on the Income Tax e-filing website via a new API, as announced on June 17, 2025. This initiative aims to streamline verification, ensuring secure and faster processing of income tax refunds and direct benefit transfers. Banks are urged to prioritize system upgrades to support this service.
PhonePe, India's leading digital payments provider backed by Walmart, is preparing to file initial documents for a public offering, potentially raising up to $1.5 billion.
Despite a 22% dip in FY24 exports due to global headwinds, India's agrochemicals industry is projected to reach USD 14.5 billion by 2027-28, growing at a 9% CAGR. Herbicides are driving export growth, with Japan emerging as a key buyer. Manufacturers are adapting through cost efficiency and diversification, fueling a steady recovery.
To combat the surge in digital payment frauds, major Indian banks are collaborating with the RBI to develop a Digital Payment Intelligence Platform (DPIP). This Digital Public Infrastructure aims to enable real-time intelligence sharing and data analysis for fraud prevention.
A new report by GTRI reveals concerns that proposed relaxations in local content rules for the telecom sector could disadvantage Indian manufacturers. The Department of Telecommunications' potential amendments to the Public Procurement Order may favor multinational corporations like Cisco and Ericsson. This shift could undermine domestic innovation and investments in R&D, potentially increasing reliance on foreign technologies.
South Korean President Lee Jae Myung has unveiled a substantial USD 22.1 billion supplementary budget to invigorate the nation's economy and aid struggling citizens. Approved by the Cabinet, the plan involves new spending and revised revenue projections. A key feature is a universal cash handout, with citizens receiving a minimum of 150,000 won.
Donald Trump has once again publicly criticized Federal Reserve Chair Jerome Powell, calling for lower interest rates and even suggesting he might consider firing him. Trump's renewed attacks come despite the Fed's recent decision to hold rates steady, citing the need for patience on inflation. Speculation is growing about potential replacements for Powell, raising concerns about the Fed's independence.
India Post Payments Bank secured the Union Finance Ministry’s Digital Payments Award 2024-25 for its pivotal role in expanding access to digital transactions and promoting financial inclusion nationwide. Recognized for topping the DFS performance index, IPPB delivers paperless banking via postmen and Gramin Dak Sevaks, reaching 11 crore customers across India's villages and towns.
India's aviation sector anticipates continued growth in FY2026, with domestic air passenger traffic projected to rise by 7–10%, reaching 175-181 million. Despite this surge and a 16.8% recovery above pre-pandemic levels, the industry is expected to face net losses of Rs 20,000–30,000 crore due to high operating costs, including aviation fuel prices and lease obligations.
Following the Air India Boeing 787 Dreamliner crash, fares have significantly decreased on both domestic and international routes, with some routes experiencing drops of up to 24%. Air India CEO Campbell Wilson stated that the crashed aircraft had undergone recent checks and monitoring, showing no prior issues.
Asian markets presented a mixed performance as geopolitical tensions in the Middle East and uncertainty surrounding potential US military action against Iran fueled investor caution. Crude oil prices increased due to concerns about supply disruptions. Central banks, including the Bank of England, are holding steady on interest rates, citing risks from the Israel-Iran conflict.
President Trump's indication of an early Federal Reserve chair nomination, potentially before Jerome Powell's term concludes in 2026, has stirred market anxieties. Investors fear this move could compromise the Fed's independence, leading to conflicting monetary policy signals. Experts warn that a politically influenced appointment might destabilize markets, emphasizing the importance of maintaining the Fed's autonomy.
The Bank of England is likely to maintain current interest rates. Concerns rise over the Israel-Iran conflict's impact. This conflict could involve the United States, potentially increasing oil prices. UK inflation remains high, exceeding the 2% target. Rising oil prices may further strain consumer finances. Global trade tensions, particularly involving potential US tariffs, add to economic uncertainty.
India's trade with the G7 nations has experienced substantial growth, reaching $248 billion in FY25 with a 13% CAGR since FY21. Exports to the G7 hit $138 billion, while imports totaled $110 billion. India maintains a $28 billion trade surplus, driven by key sectors like telecom equipment and pharmaceuticals, with mobile phone exports surging by 55%.
Reliance Consumer Products is set to invest ₹6,000-8,000 crore to expand its beverage business, challenging Coca-Cola and PepsiCo. This investment will support new plants across India. RCPL's portfolio includes Campa Cola and other brands, with aggressive pricing strategies. The company aims for national availability by 2027, leveraging a growing distribution network.
Air India has cancelled several international flights, causing travel disruptions following the tragic crash of flight AI171. The airline is increasing operational inspections and technological checks. Bad weather in Delhi is also impacting flight schedules. Passengers can track refund status or request refunds through the airline's website or app, with refunds processed within 7 to 10 business days.
India is bolstering its rare-earth material supply chain to reduce reliance on imports, especially from China, for critical components in EVs, electronics, and defense. Inter-ministerial meetings are addressing the entire value chain, from mining to refining, with potential amendments to mining regulations to boost domestic production.
Central banks worldwide are increasingly favouring gold amid global economic uncertainties, according to a World Gold Council survey. A significant 95% of reserve managers anticipate further growth in central bank gold reserves, the highest since 2019. Emerging markets drive this trend, prioritizing gold for its value preservation and performance during instability.
Hindustan Zinc Limited (HZL) will invest approximately Rs 12,000 crore to double its zinc, lead, and silver production capacity. This expansion includes establishing a 250 ktpa integrated smelter in Debari, Rajasthan, along with mine expansions. The project, expected to be completed in 36 months, aligns with India's growing economy and aims to enhance self-reliance in zinc production.
Basmati rice prices, recently elevated due to increased exports, are anticipated to decline due to potential export reductions to Iran amidst geopolitical tensions. Iran constitutes a significant importer of Indian basmati rice.
India's electronics manufacturing sector is poised for significant growth, potentially reaching $282 billion to $500 billion by 2030, driven by global supply chain shifts and increasing domestic production. Mobile phones, semiconductors, and consumer electronics are expected to be key growth drivers. Realizing this potential requires sustained policy support, infrastructure development, and strategic investments.
State Bank of India reduced its lending rates by 50 basis points, effective June 15, 2025, lowering RLLR to 7.75% and EBLR to 8.15%. Fixed deposit rates for amounts up to Rs 3 crore were also decreased by 25 basis points across various maturities.
Taiwan has tightened export controls by adding Huawei and SMIC to its restricted list, requiring permits for Taiwanese firms to export goods to them. This move aligns Taiwan with US efforts to limit China's access to advanced technologies. The decision underscores Taiwan's complex role in the global tech supply chain amid rising tensions.
UIDAI has extended the free online Aadhaar update deadline to June 14, 2026, benefiting millions. Citizens can now update their Proof of Identity (PoI) and Proof of Address (PoA) documents via the myAadhaar portal without any charges. This initiative encourages individuals to maintain accurate records, especially those with decade-old Aadhaar cards or altered personal details.
Sun Pharmaceutical Industries faces scrutiny. The USFDA issued a Form 483. This follows an inspection of its Halol manufacturing plant in Gujarat. The inspection occurred between June 2 and June 13, 2025. Eight observations were noted regarding Good Manufacturing Practices. Sun Pharma is expected to respond. They will submit a remediation plan to address the concerns.
Deloitte India's whitepaper reveals that India-based Global Capability Centres (GCCs) are now vital for multinational companies managing global tax operations. These GCCs, evolving beyond back-office roles, offer high-value tax expertise and drive digital transformation. With 76% already running global tax processes, India's GCC ecosystem is booming, projected to reach $105 billion by 2030.
CareEdge Ratings anticipates a slight increase in Indian banks' NPAs by FY26's first half, driven by rising stress in retail loans, particularly unsecured personal and microfinance. Despite overall asset quality improvements in recent years, private banks face higher slippages due to unsecured lending. Increased retail lending amid subdued corporate credit demand poses potential risks to asset quality.
Following the Air India Dreamliner 787-8 crash in Ahmedabad, Boeing CEO Kelly Ortberg has cancelled his attendance at the Paris Air Show to concentrate on the investigation. The incident, the first fatal one involving a 787, caused Boeing's shares to drop.
IndiGo's stock plunged roughly 6% following reports of InterGlobe Enterprises' plan to sell a 4% stake, aiming for $1 billion. This sale occurs amidst Rakesh Gangwal's ongoing share reduction since 2022.
A major incident occurred in Ahmedabad. An Air India flight AI171, bound for London, crashed after takeoff. The Boeing 787 Dreamliner went down in the Meghaninagar area. Airport operations are suspended. Emergency services responded quickly. Many casualties are feared. Injured passengers are receiving treatment at the city civil hospital. Air India is gathering more information about the incident.
Zara's India operations experienced marginal revenue growth of 0.5% in FY25, reaching Rs 2,782.06 crore, while net profit surged by 23% to Rs 299.47 crore. Meanwhile, Massimo Dutti's India revenue saw a slight decrease of 0.7% to Rs 100.37 crore. Trent Ltd. reduced its stake in both joint ventures during the fiscal year, impacting shareholding percentages.
The Cabinet Committee on Economic Affairs has approved two railway projects totaling Rs. 6,405 crore. These projects include doubling the Koderma-Barkakana track in Jharkhand and the Ballari-Chikjajur line across Karnataka and Andhra Pradesh.
Indian Railways is set to implement new Tatkal ticket booking rules starting July 1, 2025, requiring Aadhaar authentication for users booking through IRCTC. From July 15, an additional Aadhaar-based OTP verification will be mandatory.
Chinese consumers are changing their spending habits. Economic challenges are impacting luxury goods consumption. People like Mandy Li are opting for second-hand luxury items due to pay cuts and property value declines. Deflation fears are rising with consumer prices falling. Price wars are erupting across various sectors.
Even though home loan rates are expected to come down, prepayment will save you more than what you earn from fixed income options. High-cost and long-term loans should be retired as early as possible.
China dominates rare earth metals, impacting nations like India. Restrictions on exports, especially germanium, worry industries. India's automotive sector faces challenges due to limited rare earth magnet supplies.
Rapido is poised to disrupt India's food delivery sector by offering restaurants commission rates of 8-15%, significantly lower than Swiggy and Zomato's 16-30%. Partnering with the NRAI, Rapido aims to aid smaller restaurants, launching a pilot program in Bengaluru soon.
Silver is surging in 2025, hitting record highs due to safe-haven demand, supply constraints, and strong industrial use in clean energy and electronics. Experts predict the rally will continue, potentially reaching Rs 1,23,000/kg, driven by geopolitical tensions and a shift towards green technologies. Analysts advise a buy-on-dips strategy, citing positive technical signals and long-term supply issues.
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