IMF Revises India Growth Forecast, CBDT Seeks Data On High-Value Deals From Banks, Post Offices

IMF Ups India Growth Forecast For FY2024-25 On Rural Revival

The India growth story got another fillip on Tuesday when the International Monetary Fund (IMF) raised its growth forecast to 6.8 per cent for FY2024-25, from the 6.5 per cent it had projected in January, the Economic Times reported. India remains the world’s fastest-growing economy. 

The IMF also revised the 2024 growth forecast for the world economy upward to 3.2 per cent from the 3.1 per cent projected earlier. It, however, kept its FY2025-26 forecast for India unchanged at 6.5 per cent. The change follows upward revisions by other international institutions, which predict strong domestic demand and a revival in the rural economy propelling the economy this year. Read more

46 FDI Proposals Await Govt Clearance, 27 On MHA List

As many as 46 foreign direct investment (FDI) proposals are awaiting government decision and have breached the government-mandated 12-week time limit for grant of approval, the Business Standard reported. The Department for Promotion of Industry and Internal Trade has written to 17 government departments to expedite decision-making on FDI proposals awaiting government clearance.

It sought immediate intervention from relevant government departments, including the Ministry of Finance’s Department of Economic Affairs, to ensure a time-bound green signal for these pending proposals. Of these 46 proposals, 27 have also received comments from the Ministry of Home Affairs regarding security clearance. More here

RBI Sets Draft Regulation Rules For POS Payment Service Providers

After bringing in guidelines for online payment aggregators like Razorpay and Cashfree, the Reserve Bank of India has issued draft rules to regulate point-of-sale payment service providers (PA-P), the Economic Times reported. Companies like Innoviti Payments, Pine Labs and MSwipe will be brought under regulatory cover now. 

The regulator said companies providing the service will need to apply for authorisation from the RBI by May 31, 2025. If they fail to get authorisation, they will have to cease these services, as per the draft rules. It directed banks to close non-bank PA-Ps by October 31, 2025, unless they provide evidence of applying to the RBI for authorisation. Here’s more

Apple Powers India’s Mobile Phones Export Feat With 35% Surge

India’s mobile phone exports hit a record US$ 15 billion-plus in FY 2023-24, powered by iPhones’ 35 per cent export surge, the Economic Times reported, quoting government data. In FY2022-23, the exports stood at US$ 11.1 billion. Apple contributed 65 per cent, or about US$ 10 billion, double the US$ 5 billion of phone exports from India in FY2022-23 when the US major became the first smartphone brand to achieve this feat.

India’s mobile electronics manufacturing ecosystem has helped create more than 1.2 million jobs, while producing goods worth US$ 50 billion in FY24, according to the data. Overall, electronics exports jumped nearly 24 per cent to US$29.12 billion in FY2023-24 from US$ 23.55 billion the previous year. Read more    

VVPAT For Every Vote: Supreme Court Not Gung-Ho On Paper Ballot Return 

Hearing a plea for a thorough count of VVPAT slips for every vote cast, the Supreme Court of India cautioned against drawing parallels with foreign countries, especially Germany, when it comes to using electronic voting machines during elections, the Economic Times reported. 

The bench of Justice Sanjiv Khanna and Justice Dipankar Datta verbally noted that we have to repose some trust in somebody and said the petitioners should not bring down the system like this. Currently, VVPATs are checked only in five randomly chosen EVMs in each Assembly segment of a parliamentary constituency. The apex court didn’t agree with the contention for the reintroduction of the ballot paper system. Here’s more

CBDT Reminds Banks, Co-ops To Report All High-Value Deals In FY2022-23

Banks, post offices, co-operatives and other self-reporting organisations have been asked by the Central Board of Direct Taxes (CBDT) to file details of all high-value transactions carried out in 2022-23 by June 30, the Economic Times reported.

The report said 6,000 reporting entities have either not filed the information, provided incomplete information, or given it in incorrect format. Any transactions above Rs 50 lakh, share purchase and sale above Rs 10 lakh and post office deposits and withdrawals of Rs 5 lakh and above have to be reported. Officials said while all large banks and mutual fund houses are compliant, regional banks, post offices and regional registry offices are sometimes not filing on time. Here’s more