Budget May Re-Introduce Interest Subsidy For PMAY-U; Slower GST Growth Points To Heatwave Effect

PMAY Urban Scheme Likely To Be Tweaked To Make Room For The Middle Class

The Centre may tweak the criteria and classification of middle-income groups for beneficiaries of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) scheme, with the changes likely to be presented in the upcoming Union budget, Livemint reported.

The middle-class housing scheme, announced in the interim budget earlier this year, is likely to be a part of the PMAY-U scheme, with the government likely to re-introduce an interest subsidy for its urban housing schemes, officials said.  Currently, under PMAY-U, households with an annual income of Rs 6-18 lakh come under the ambit of the middle-income group, while those in the Rs 6-12 lakh income slab are under the middle-income group-I (MIG-I) and those with income in the range of Rs 12-18 lakh fall under MIG-II. Read more 

Slower Growth Of GST In June Points To Impact Of Heatwave On Economy

The single-digit growth of 7.7 per cent in goods and services tax (GST) collections in June points to the impact of the May heatwave on consumption, coupled with a base year effect, the Business Standard reported quoting analysts.

The gross GST collection for June, reflecting transactions made in May, stood at Rs 1.74 trillion. This year-on-year growth was notably less than the 12.4 per cent and 10 per cent increases recorded in April and May, respectively. Analysts suggest that while this does not signify a slowdown, it indicates a moderation in consumption, likely influenced by severe heatwave conditions prevailing in the country during May. Fast-moving consumer goods companies are likely to report a subdued April-June quarter due to heatwave conditions and the continuing effects of high food inflation. Read more

EV Makers Want FAME Subsidy For Two-Three Years Without Abrupt Cut

With expectations of the Budget unveiling the third edition of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) to promote adoption of electric vehicles, sections of EV makers said this time they wanted a subsidy policy with a definite timeline, rather than one that would be abruptly cut off like the previous one, the Economic Times reported.

"New changes are too sudden, especially for the automobile industry with its long lead times. We would want the new subsidy regime to last for at least two to three years to truly benefit the industry," Amitabh Saran, chief executive of electric three-wheeler maker Altigreen, said. More here

Acute Worker Shortage Holds Back Industries In Several Sectors

An acute shortage of workers, both skilled and unskilled, is threatening to hold back India Inc.’s plans for greater growth, the Business Standard reported. 

The talent shortage or skills gap has been a persistent issue in the industry. A marathon general election and extreme heat have only exacerbated the problem. The shortage of skilled labour appears to have hit India’s engineering and capital goods firms the hardest. Industry executives attribute the shortage to a mix of India’s growing order book and increasing demand, while other factors impact the supply end. A big part of the shortage, many in the industry point out, can be ascribed to the skill gap. The problem is widespread, affecting various sectors and levels of hires — from engineers to daily-wage workers. Read more  

Premium Economy Segment Takes Off On Domestic Flights As Fares Stay High 

The ‘premium economy’ class on domestic flights in India has transformed in the past five years, evolving from an overlooked option to a sought-after service, the Business Standard reported. 

According to aviation analytics firm Cirium, premium-economy fares have skyrocketed up to 128.6 per cent on major domestic routes like Delhi-Mumbai and Mumbai-Bengaluru since 2019. This surge far outpaces the up to 41.3 per cent increase in economy-class fares on the same routes, highlighting a remarkable turnaround for a service that airlines once struggled to promote. The Delhi-Mumbai route, India’s busiest, illustrates the trend. Five years ago, average economy and premium economy fares were nearly identical. More here

FSSAI Checks Quick Delivery Apps Stores After Lapses Come To Light

The government has stepped up unscheduled audits and spot checks on dark stores of leading quick commerce platforms, especially for packaged foods, the Economic Times reported. 

The checks came after several hygiene lapses were brought to light in recent weeks. Not just these warehouses, but direct-to-consumer food brands too have received ‘surprise visits’ from the Food Safety and Standards Authority of India (FSSAI). Quick commerce companies are exercising more caution — in hygiene as well as in adding small-scale new-age brands to their platforms. Industry executives said the situation is akin to that several years ago when horizontal e-commerce platforms were expanding into new categories and took time to stay compliant. More here