Budget 2024: GTRI urges govt not to cut import duty on smartphone parts | Budget 2024 News

Budget 2024: GTRI urges govt not to cut import duty on smartphone parts | Budget 2024 News

Budget 2024: GTRI urges govt not to cut import duty on smartphone parts | Budget 2024 News

Firms can also use the customs bond scheme for duty-free imports without localisation requirements. (Photo: Bloomberg)


Economic think tank GTRI on Monday urged the government to cut import duty on smartphone components in the Budget as it could lead to an increase in superficial assembly plants that rely heavily on imported parts.


Finance Minister Nirmala Sitharaman will present the Union Budget for 2024-25 tomorrow.


The Global Trade Research Initiative (GTRI) said the current schemes and tariff structure resulted in great success, and the current framework is also ensuring duty-free imports of components for exports.


“Do not cut import duty on smartphone components in this Budget. Removing tariffs could lead to an increase in superficial assembly plants that rely heavily on imported parts, contributing little to the local economy.


“Imported components and subassemblies account for up to 90 per cent of the bill of material value for an India-made phones,” GTRI Founder Ajay Srivastava said.


Currently, import tariffs on the product is 20 per cent while duty on components range between 0 and 20 per cent. The Budget should maintain these tariffs for several compelling reasons, he said.


“Smartphone is the most celebrated success story pushed by PLI (production linked incentive) incentives and a clever tariff arbitrage between these phones and its components,” he added.


India’s production of this item has crossed USD 49 billion in FY24, and its exports grew from USD 10.96 billion in FY23 to USD 15.57 billion in FY24, a growth of 42 per cent.


Additionally, over 98 per cent of smartphones sold in India are made locally, demonstrating the success of policies like the PLI scheme, which offers a 4-6 per cent cash incentive on annual incremental production. No need to change a policy giving great results, it said.


The GTRI added that Indian manufacturers can import necessary inputs or capital goods duty-free for manufacturing and exporting electronic items, facilitated through schemes like Advance Authorisation, Export Promotion Capital Goods, Special Economic Zones (SEZs), and 100 per cent Export Oriented Units.


Firms can also use the customs bond scheme for duty-free imports without localisation requirements.


“Apple, for example, through its contract manufacturers Foxconn and Wistron, benefits from SEZs to manufacture and export smartphones. In 2023, Apple’s iPhone production in India exceeded Rs 1 lakh crore (about USD 13.5 billion), with Rs 65,000 crore worth of exports,” the think-tank said.


Schemes like SEZs thus allow import of all inputs at zero duty, thus making Indian smartphone globally competitive, it added.


In FY24, electronics imports crossed USD 83.92 billion, with components growing from USD 25.13 billion in FY23 to USD 34.36 billion in FY24, a 36.8 per cent increase.


It added that the high reliance on imported parts in local manufacturing suggests that cutting import duties would eliminate incentives to establish deeper manufacturing operations in India, leading firms to assemble mobile phones from nearly complete imported kits and exit once incentives disappear.


“Maintaining current import tariffs is crucial for sustaining the growth and depth of India’s smartphone manufacturing sector. Reducing these tariffs could encourage short-term assembly operations over long-term, valuable manufacturing, undermining the industry’s success and future potential,” it said.


Srivastava said these tariffs are not just protective measures but catalysts for fostering a robust, self-reliant smartphone manufacturing ecosystem in India.


This ecosystem can compete globally while driving local employment and technological advancement, he added.


“Preserving these tariffs is essential for continuing the remarkable growth trajectory and nurturing the deep manufacturing capabilities of India’s smartphone sector,” he said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Jul 22 2024 | 8:24 PM IST


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Shakti Pumps Q1 result: Net profit jumps to Rs 93 cr, revenue up four-fold | Company Results

Shakti Pumps Q1 result: Net profit jumps to Rs 93 cr, revenue up four-fold | Company Results

Shakti Pumps Q1 result: Net profit jumps to Rs 93 cr, revenue up four-fold | Company Results

Madhya Pradesh-based Shakti Pumps (India) manufactures solar pumps, energy-efficient stainless-steel submersible pumps, pressure booster pumps, pump motors, and other related products. | (Photo: Bloomberg)


Shakti Pumps on Monday said it has posted a manifold jump in its consolidated profit after tax to Rs 92.6 cr during the June 2024 quarter, on the back of higher revenues and healthy order book.


It had clocked a Profit After Tax (PAT) of Rs 1 cr in the April-June quarter of the preceding fiscal, the company said in a statement.


During the first quarter, the company’s revenue from operations rose four-fold to Rs 567.6 cr from Rs 113.1 cr in the year-ago quarter.


As of June 2024, the company had an order book of around Rs 2,000 cr, the statement said.


“We reported an outstanding start to FY25, with the first quarter demonstrating robust revenue growth and enhanced profitability. Our performance is attributable to the accelerated execution of the existing orders in both domestic and export markets,” Shakti Pumps (India) Ltd Chairman Dinesh Patidar said.


The improvement in margins was achieved due to a decline in raw material prices, coupled with economies of scale resulting from higher execution during the quarter, he said.


Madhya Pradesh-based Shakti Pumps (India) manufactures solar pumps, energy-efficient stainless-steel submersible pumps, pressure booster pumps, pump motors, and other related products.

First Published: Jul 22 2024 | 5:22 PM IST


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Realty sales highest since 2013, 4 lakh homes sold in 8 cities: Eco Survey | Personal Finance

Realty sales highest since 2013, 4 lakh homes sold in 8 cities: Eco Survey | Personal Finance


India’s household sector serves as a primary source of financial resources through savings, contributing a substantial 70% to the total gross domestic savings.  The growth in housing sales in cities has been particularly impressive, indicating that urban households are diversifying the deployment of their savings. 

Data from the Economic Survey shows that residential real estate sales across major Indian cities are at their highest since 2013! In 2023, a whopping 4.1 lakh units were sold in the top eight cities alone, reflecting a significant 33% increase compared to the previous year.  To meet this growing demand, developers are constructing more properties than ever before. In 2023, a record-breaking 5.2 lakh new housing units were launched, exceeding the previous year’s figure by almost a lakh, showed data analysed by PropTiger. 

Realty sales highest since 2013, 4 lakh homes sold in 8 cities: Eco Survey | Personal Finance


 The momentum hasn’t slowed down. The first quarter (Q1) of 2024 witnessed a phenomenal 41 per cent growth in sales compared to the same period last year, with a record 1.2 lakh units sold.  Since mid-2022, the number of new housing units launched has consistently crossed the one lakh mark each quarter. 


Similarly, personal loans for housing have surged, corresponding to the increase in housing demand, noted the Economic Survey


Most households save in two ways – financial assets (like bank deposits, stocks, and mutual funds) and physical assets (like real estate, gold, and other durable goods), a global brokerage firm BofA Securities said in a report in May 2024.


 As of 2022, over half (56%) of household savings were in financial assets, which is double the amount seen a decade ago. This suggests a shift towards more diversified saving methods.  Despite the rise in financial savings, a large portion (77%) of household assets are still tied up in real estate.  


 On average, an Indian household holds 77% of its total assets in real estate, 7% in other durable goods, and 11% in gold.

First Published: Jul 22 2024 | 2:15 PM IST


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Land deals slowing down? Not everywhere! Bengaluru, Gurugram still booming | Personal Finance

Land deals slowing down? Not everywhere! Bengaluru, Gurugram still booming | Personal Finance


The general elections and  heated land prices seem to have dented the appetite for land acquisition for developers and other entities in the second quarter of 2024. The number of land deals closed in the second quarter of 2024 came down to 25 transactions for 325+ acres’ area, as per the latest data from Anarock. In contrast, Q1 2024 saw approximately 29 land deals for 721+ acres closed across the country.


Bengaluru topped in the number of land deals. “The city saw nine separate deals for approximately 114 acres closed in Q2 2024. All deals are proposed for residential developments. Gurugram followed, remaining a hot market for land deals in Q2 2024. As many as seven deals for over 77.5 acres were closed here in this period for residential development and agriculture,” said Dr Prashant Thakur, Regional Director & Head – Research & Advisory, ANAROCK Group,.


Of the total land deals closed in Q2 2024 (Apr.-June), over 17 for 163+ acres have been proposed for residential developments. Agriculture, mixed-use development, data centers, logistics parks, industrial, and retail saw one deal each.

“While Bengaluru continues to be a hotbed for residential development, Gurugram has also upped its game,” says Dr. Thakur. “Demand has been soaring here in the last couple of years, and developers are able to sell units in new projects very quickly post launch. Mumbai, which topped in land deals in the previous quarters, saw just 2 land deals closed in Q2 2024 – one for industrial purposes and the other for retail development.”

Land deals slowing down? Not everywhere! Bengaluru, Gurugram still booming | Personal Finance


Here’s a breakdown of the data:


Fewer deals in Q2: There were only 25 land deals closed in Q2 2024, covering roughly 325 acres of land. This is a decrease compared to Q1 2024 which saw 29 deals for over 721 acres.


Bengaluru and Gurugram Lead: Bengaluru remained the top city for land deals with 9 deals for around 114 acres, all for residential projects. 


Gurugram followed closely with 7 deals for over 77.5 acres, with projects planned for residential and agricultural use.


Mumbai Slows Down: Interestingly, Mumbai, which previously dominated land deals, saw only 2 deals in Q2 – one for industrial and one for retail development.


Dominant Residential Focus:  A significant portion (17 deals for over 163 acres) of the land acquired is designated for residential development. This is spread across cities like Gurugram, Bengaluru, Thane, Pune, and Ahmedabad.


Growth in Specific Sectors:


  • Agriculture: Gurugram witnessed a single deal for a large agricultural project spanning 18 acres.

  • Data Centers: Hyderabad saw a single deal for a data center project on 48 acres.

  • Industrial: Mumbai had a single deal for a small industrial project on 3.32 acres.

  • Logistic Parks: Chennai closed a single deal for a logistic park project on 27 acres.

  • Mixed-Use Development: Pune had a single deal for a mixed-use development project on 11 acres.

  • Limited Retail and SRA Activity: Only one deal each was recorded for retail development (Mumbai – 1.2 acres) and residential redevelopment under Slum Rehabilitation Authority (SRA) projects (Thane – 12.2 acres).
deal123r


Land Deals in H1 2024


On the other hand, land deals data trends for the first half of 2024 are more upbeat. As many as 54 deals for 1,045+ acres were closed in the period across the country. In contrast, approx. 46 deals for 950+ acres were closed in the corresponding period last year (H1 2023).


  • Bengaluru and Gurugram closed maximum deals (15 each) for approx. 216 acres and 162 acres, respectively in H1 2024.

  • Mumbai saw 5 land deals for approx. 34 acres in the first half this year.

  • Hyderabad and Chennai each closed 3 deals for approx. 63.5 acres and 48 acres, respectively.

  • Pune, Ahmedabad, Noida & Thane collectively closed 2 land deals each for approx. 103 acres.

  • Ghaziabad and Delhi closed one deal each for approx. 62.5 acres and 5 acres, respectively.

  • Ayodhya, Jaipur, and Surat saw one deal each closed in H1 2024 for approx. 353 acres collectively.

 

First Published: Jul 22 2024 | 11:18 AM IST


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Asian shares tread cautiously; Wall St unfazed as Joe Biden bows out | World News

Asian shares tread cautiously; Wall St unfazed as Joe Biden bows out | World News

Asian shares tread cautiously; Wall St unfazed as Joe Biden bows out | World News

MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.2 per cent. | Photo: Reuters


Asian shares tread cautiously on Monday ahead of a packed week of corporate earnings that should test the sky-high valuations of tech stocks, while investors hope a key reading in US inflation will narrow the odds on a September rate cut.


Investors seemed well-prepared for news that US President Joe Biden had dropped out of the election race and endorsed Vice President Kamala Harris for the Democratic ticket.


Online betting site PredictIT showed pricing for a victory by Donald Trump had fallen 3 cents to 61 cents, while Harris climbed 11 cents to 38 cents. California governor Gavin Newsom, another possible Democratic challenger, trailed at 4 cents.


Markets took the news in their stride, with S&P 500 stock futures edging up 0.3 per cent, while Nasdaq futures added 0.5 per cent. Futures for 10-year Treasuries rose 3 ticks, while 10-year bond yields dipped 2 basis points to 4.22 per cent.


“As Trump’s polling results have lifted, markets have favoured positions that anticipate more trade barriers and possibly higher inflation,” ANZ analysts said.


“Some polls have Harris performing better than Biden against Trump, and the Democrats will be hoping the next polls feature a Harris-driven bump.”


MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.2 per cent, having shed 3 per cent last week amid a general risk-off mood. Japan’s Nikkei lost 0.6 per cent, and South Korea’s benchmark index was down 0.4 per cent.


US second-quarter earnings are poised to dominate the week, with Tesla and Google-parent Alphabet kicking off the season for the “Magnificent Seven” megacap group of stocks.


Others reporting include General Electric, General Motors, Ford and Lockheed Martin.


The tech sector is projected to increase year-over-year earnings by 17 per cent, while profit for the communication services sector is seen rising about 22 per cent.


Such gains would outpace the 11 per cent estimated rise for the S&P 500 overall, according to LSEG IBES.


A busy week for economic news will culminate with the Federal Reserve’s favoured inflation measure out on Friday. The core personal consumption expenditures index is seen rising 0.1 per cent in June, pulling the annual pace down a tick to 2.5 per cent.


Markets are wagering heavily that a benign outcome will underline the case for a September rate cut, which futures are pricing as a 97 per cent chance.


Also due are figures for advance gross domestic product that are forecast to show growth picking up to an annualised 1.9 per cent in the second quarter, from 1.4 per cent in the first.


The closely-watched Atlanta Fed GDPNow indicator points to growth of 2.7 per cent, suggesting some risk to the upside.


The Bank of Canada meets on Wednesday and is considered almost certain to cut its rates by a quarter point to 4.5 per cent.


China is expected to leave its one-year and five-year loan prime rates unchanged later on Monday.


Beijing released a policy document on Sunday outlining known ambitions, from developing advanced industries to improving the business environment, but showed no sign of imminent structural shifts in the world’s second-biggest economy.


In currency markets, the dollar gave back a little of last week’s safe haven gains as the euro edged up 0.2 per cent to $1.0900. The dollar likewise dipped 0.2 per cent on the Japanese yen to 157.21.


In commodity markets, gold held at $2,410 an ounce and not far from last week’s record high of $2,483.60. [GOL/]


Oil prices inched higher, with little sign of progress on a ceasefire deal in Gaza as Israeli forces battled Palestinian fighters in the southern city of Rafah on Sunday. [O/R]


Brent gained 39 cents to $83.02 a barrel, while US crude rose 42 cents to $80.55 per barrel.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Jul 22 2024 | 8:19 AM IST


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Chinese billionaire criminal secretly profited off Jack Ma’s deals | World News

Chinese billionaire criminal secretly profited off Jack Ma’s deals | World News


By Michael Forsythe, Katrina Northrop & Eliot Chen


Four years ago, Jack Ma was the embodiment of China’s spectacular economic rise. Already the country’s wealthiest and most famous businessman, he was poised to become one of the richest in the world.




The expected initial public offering of  Ma’s fintech company, Ant Group, was projected to surpass the record-shattering launch of his e-commerce giant, Alibaba. Soon, it was thought, he would be lionised like Bill Gates and Steve Jobs — a paragon of Western-style business in China.




At the same time, another wealthy Chinese businessman was awaiting a very different fate. Xiao Jianhua  was languishing in detention on bribery and corruption charges — a larger-than-life target of a government crackdown on graft.  Xiao had amassed a fortune manipulating markets and cultivating close ties to relatives of top Chinese officials, and he was about to be made an example.




And yet behind the scenes, these bookends of China’s catch-as-catch-can capitalism — its most celebrated and its most notorious billionaires — were linked through investments worth at least $1 billion, an investigation by The New York Times and The Wire China found.

Chinese billionaire criminal secretly profited off Jack Ma’s deals | World News

A review of more than 2,000 confidential documents shows that Xiao’s now dismantled company Tomorrow Group secretly secured lucrative shares in an array of Ma’s companies over a period of five years. These business associations were never disclosed, and a former senior executive at Tomorrow Group said, “As far as we know, Jack Ma was unaware” of them.




The deals offer a close-up view of China’s signature brand of capitalism, where well-connected entrepreneurs and those who raise money for them are better off, at least in some cases, not interacting with one another. In almost any other robust economy, the proprietor of a major business would want to develop a relationship with an investor who raised $1 billion, and the investor would want to influence how the money was used.




©2024 The New York Times News Service

First Published: Jul 22 2024 | 1:27 AM IST


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Gujarat CM Patel allocates Rs 100 crore for road repairs post-monsoon | India News

Gujarat CM Patel allocates Rs 100 crore for road repairs post-monsoon | India News

Gujarat CM Patel allocates Rs 100 crore for road repairs post-monsoon | India News

On the occasion of Guru Purnima, Gujarat Chief Minister Bhupendra Patel visited the Guru Ashram at Bagdana in Bhavnagar district of Gujarat on Sunday. (Photo: PTI)


Gujarat Chief Minister Bhupendra Patel on Sunday announced the allocation of Rs 100 crore for resurfacing and repairing urban roads damaged during the monsoon.


This funding aims to improve road safety, enhance road quality, and elevate the Ease of Living for urban residents. Heavy monsoon rains often cause significant damage to city and town roads.


To address this, CM Patel has adopted a proactive approach by allocating funds in advance, enabling municipalities to begin planning and repair work promptly.


These funds are allocated from ‘Swarnim Jayanti Mukhyamantri Shaheri Vikas Yojana’, launched by Prime Minister Narendra Modi during his tenure as Chief Minister of Gujarat to commemorate the state’s golden jubilee. For the year 2024-25, a provision of Rs 400 crore has been made under Mukhyamantri Shaheri Sadak Yojana.


Chief Minister has approved a total allocation of Rs 100 crore for road repair across 157 municipalities, based on their category, to ensure prompt action after the monsoon and provide citizens with improved roads quickly.


Specifically, 22 municipalities in Category ‘A’ will receive Rs 1 crore each, 30 municipalities in Category ‘B’ will receive Rs 80 lakh each, 60 municipalities in Category ‘C’ will receive Rs 60 lakh each, and 45 municipalities in Category ‘D’ will receive Rs 40 lakh each for road repairs and related work.


Under Mukhyamantri Shahri Sadak Yojana, the state government has allocated a total grant of Rs 810.95 crore for road repairs and facilities to municipalities until 2023-24.


On the occasion of Guru Purnima, Gujarat Chief Minister Bhupendra Patel visited the Guru Ashram at Bagdana in Bhavnagar district of Gujarat on Sunday.


The devotees warmly welcomed the minister with chants of ‘Bapa Sitaram.’ Patel worshipped with children at Santshri Bajrangdas Bapa’s throne, visited Bajrangdas Bapa’s tomb, and later offered prayers at both the Dhyan Temple and the Main Temple.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Jul 21 2024 | 11:33 PM IST


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Kanwar Yatra eateries row: SC to hear on Jun 22 plea on UP govt order | India News

Kanwar Yatra eateries row: SC to hear on Jun 22 plea on UP govt order | India News

Kanwar Yatra eateries row: SC to hear on Jun 22 plea on UP govt order | India News

The order issued by the Muzaffarnagar police earlier this week has been slammed by opposition parties and some members of the ruling NDA at the Centre, who say it targets Muslim traders. (Photo: PTI)


The Supreme Court is scheduled to hear on Monday a plea against the Uttar Pradesh government’s order that eateries along the Kanwar Yatra route must display the names of their owners.


A bench of justices Hrishikesh Roy and S V N Bhatti is likely to hear the plea filed by NGO Association of Protection of Civil Rights.

 


Days after the Muzaffarnagar Police asked all eateries along the Kanwar Yatra route to display their owners’ names, the Uttar Pradesh government on Friday extended the controversial order across the state.


The order issued by the Muzaffarnagar police earlier this week has been slammed by opposition parties and some members of the ruling NDA at the Centre, who say it targets Muslim traders.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Jul 21 2024 | 8:30 PM IST


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Affordable housing, infra growth likely to be in focus of Budget: Assocham | Budget 2024 News

Affordable housing, infra growth likely to be in focus of Budget: Assocham | Budget 2024 News

Affordable housing, infra growth likely to be in focus of Budget: Assocham | Budget 2024 News

Nirmala Sitharaman, Nirmala, Finance Minister, Budget(Photo: Reuters)


Greater focus on green mobility, affordable housing, holistic infrastructure development and a big push to manufacturing, along with boosting consumption demand, are expected to find prominence in the forthcoming Union Budget, said an Assocham-Primus paper.


Finance Minister Nirmala Sitharaman will present the Union Budget on Tuesday in Parliament.


Highlighting that the first Budget of the Narendra Modi 3.0 government will also include a long-term blueprint for making India a developed nation by 2047, the paper listed areas that would require the government’s greater attention and priorities for realising the national goals.


“While the Budget would attend to the immediate requirements of boosting consumption, investment and augmenting the supply side of the economy, it is also expected to lay a roadmap for the bigger goal of scaling up national income to a level of developed nations,” said Assocham President Sanjay Nayar.


He further said the government has the fiscal space to spend on capex but recycling the funds from monetisable operating assets would be strategically a better strategy to manage it even better.


The Assocham-Primus paper said the wheels of the Indian economy will increasingly run on green fuel. The directional shift is gathering pace across different levels.


It expects the launch of PMAY 2.0, incorporating components like Affordable Housing in Partnership (AHP) and Beneficiary Led Construction (BLC) to tailor housing solutions to financial capabilities of large sections of the population.


“India Inc is expecting a major thrust in the forthcoming Budget on consumer demand, especially among the middle-class people, while reforms-friendly policies will continue more vigorously with several investment-oriented and Ease of Doing Business measures,” said Assocham Secretary General Deepak Sood.


Nilaya Varma, co-founder and CEO, Primus Partners said to achieve the vision of Viksit Bharat, the government needs to prioritise and enable a shift from agriculture to manufacturing to provide a pathway for employment.


“Support for core engineering-led manufacturing (that would provide jobs), supporting clusters for strengthening MSMEs and supporting/creating new clusters like EV, electronics and aircraft manufacturing is critical. This needs to be done while advancing towards net-zero energy,” he said.


The paper also stressed the need for a national agriculture infrastructure mission with a focus on improving logistics like cold storage, processing units, and packaging facilities to reduce post-harvest losses and ensure better price realisation for farmers.


Promotion of sustainable and climate resilient agriculture will be a road map for de-carbonisation in agriculture for the next 10 years and help India meet its net-zero commitment by 2070, the paper said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Jul 21 2024 | 5:24 PM IST


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