Centre Releases Funds To States, Farmers Among First Decisions; Bengaluru Tops In EV Registrations

Centre Clears Two Tax Devolution Instalments Worth Rs 1.4 Lakh Crore 

In her second term as Finance Minister, Nirmala Sitharaman released two tax devolution instalments, totalling Rs 1,39,751 crore, to 28 states, for bolstering their development and capital spending, the Economic Times reported. 

The minister earlier reviewed the economic and fiscal situation of states with Finance Secretary TV Somanathan and Economic Affairs Secretary Ajay Seth, soon after the first meeting of the newly formed Cabinet on Monday evening. The interim budget for FY24-25 earmarked Rs 12.20 lakh crore toward the devolution of taxes. With this release, the total devolved so far this fiscal year stands at Rs 2,79,500 crore. Sitharaman returns to North Block amid a broad focus on continuity by the NDA government. Read more

PM Modi Sanctions 17th Kisan Nidhi Scheme In First Decision 

Prime Minister Narendra Modi sanctioned the 17th instalment of the PM Kisan Nidhi Scheme, which will benefit 93 million farmers, as the first official decision of the new coalition government, the Economic Times reported. 

Around Rs 20,000 crore will be distributed in this instalment. This is expected to help boost rural demand and support consumer stocks that are trading near 52-week highs. Rural demand is crucial for the overall growth of the FMCG sector, with well over a third of the annual sales of large companies dependent on demand from the hinterland. Research and analytics firm NielsenIQ said in an earlier report on the FMCG sector that rural demand had outpaced urban markets for the first time in five quarters in the January-March period. Here’s more 

Public Sector Banks Want Government To Help Them Recoup Deposits

The State Bank of India and other public sector banks are urging the government to allow them to offer incentives to bolster deposits, which have slumped hitting credit flows, the Economic Times reported.

Banks' deposit growth in FY24 was well below the rise in credit, forcing them to meet the funding gap through higher-cost Certificates of Deposit (CDs). Banks have suggested reducing the lock-in period for tax-saving fixed deposits to three years from five years. Given the bumper returns by equities, mutual funds and tax-saving equity-linked savings schemes (ELSS), investors prefer them to tax-saving fixed deposits which have a five-year lock-in period. More here

Bengaluru Outdoes Mumbai, Delhi In Electric Car Registrations In 2023

Bengaluru outpaced Mumbai, Delhi, and Pune in 2023 to become India’s leading city for electric car registrations, the Business Standard reported. 

The city’s tech-savvy workforce, increased acceptability, zero road tax, subsidised electricity for EV charging, and a wide charging station network contributed to this surge. Electric car registrations in the Karnataka capital surged more than threefold in 2023 to 8,690 units, overtaking the growth witnessed in the other three cities. Bengaluru also tops in electric two-wheelers registration. The city has consistently held the top position in India for electric two-wheeler registrations over the past four years. More here

Onion Prices Up 30-50% Over Last Fortnight In Maharashtra

Onion prices have increased by 30-50 per cent in the last fortnight, as arrivals have slowed, while demand has increased ahead of Eid-al-Adha (Bakra Eid). The trade has started holding stocks hoping that the Central government may ease its interventions to control prices, the Economic Times reported.

The main reason for the recent price rise is the mismatch between demand and supply. The onion that arrives in the markets from June onwards comes from the stocks that are kept by farmers and traders. Farmers are slow in selling from their stock as they expect prices to firm up due to an expected fall in the rabi crop of 2023-24. More here 

Apple Unveils Long-Awaited AI Features, OpenAI Partnership 

Apple Inc. took the wraps off long-awaited new artificial intelligence features, including a partnership with ChatGPT maker OpenAI, betting that a personalised and understated approach to the technology will win over customers, the Business Standard reported.

A new AI platform called Apple Intelligence was the highlight of the company’s Worldwide Developers Conference presentation on Monday, which also included updates to the iPhone maker’s operating systems. The technology will help summarise text, create original images and retrieve the most relevant data when users need it. The push also includes a revamped version of Siri, the company’s once-pioneering digital assistant.  Apple is making a high-stakes bid to catch up with rivals in the booming AI market. After falling behind tech peers like Alphabet Inc.’s Google and Microsoft Corp., the company is counting on a streamlined interface to regain ground. More here