Key NDA Allies Want More Say In 100-Day Agenda; Economists Expect Focus On Growth, Job Creation

Economists say the change in mandate for Modi 3.0 will reflect in a more inclusive decision-making. But ratings agencies expect broad policy continuity. Satcom internet connectivity isn’t getting cleared soon. In other news, proposed Central Excise Bill doesn’t provide for exemptions to SEZ products, yet. And Byju’s creditors move the US court to add more units to bankruptcy suit. 

NDA Allies Want Tweaks In 100-Day Agenda Of Next Government

The Narendra Modi government may need to rework its 100-day agenda to accommodate its partners' wishes after failing to secure an outright majority in the just-concluded national elections, Livemint reported. 

The BJP may also have to incorporate policy prescriptions in state manifestos where it contested along with allies. The latest plan is to discuss the 100-day agenda with all coalition partners, said senior leaders of Telugu Desam Party (TDP) and Janata Dal (United), two key partners of the National Democratic Alliance (NDA) led by Modi. Other NDA allies would also give inputs for the agenda. The existing 100-day agenda has five key elements—infrastructure, manufacturing, semiconductors, renewable energy and housing. Read more

Change In Mandate Shakes Up List Of Priorities For Next Government

The incoming government would need to maintain growth, create more jobs, preserve macro stability, pursue tax reforms, and bolster risk management in stock and credit markets, the Economic Times reported. 

Economists said in the report that the list of priorities had changed after a surprising poll mandate in favour of a more inclusive decision-making. They called for factor market (land, labour and capital) reforms to strengthen growth, further fiscal consolidation to cut debt, elevated government capex for a longer period to crowd in private investments, and shedding the pro-consumer policy bias in farm trade to make agriculture more remunerative. More here 

Ratings Agencies Expect Broad Policy Continuity With Focus On Capex Push 

India will see a broad policy continuity with focus on capex push and gradual fiscal consolidation, however, reforms and fiscal metrics may prove to be a challenge, the Economic Times reported quoting ratings agencies.

"We do expect broad policy continuity to persist, with the government retaining its focus on its capex push, ease of doing business measures, and gradual fiscal consolidation," said Jeremy Zook, director and primary sovereign analyst for India, Fitch Ratings. Moody’s Ratings Senior Vice President Christian de Guzman said the slim margin of victory, as well as the BJP's loss of its outright majority in Parliament, may delay more far-reaching economic and fiscal reforms that could impede progress on fiscal consolidation. More here

Proposed Central Excise Bill Has No Exemptions For SEZ Products

The proposed Central Excise Bill, 2024, does not exempt excisable goods produced or manufactured in a Special Economic Zone (SEZ) and brought to any other place in India from duty, the Business Standard reported. 

Any exemption will need to be notified separately by the Central government, if deemed fit, says the Bill. The move, if implemented, could curb misuse of incentives and alleged duty evasion at SEZ units. A senior government official said the Bill is not expected to be a part of the upcoming full Budget. Currently, central excise duty is levied on a select list of goods — tobacco, crude oil, gasoline, diesel, natural gas, and air turbine fuel — while the majority of goods have transitioned to the goods and services tax regime. More here

Satcom-Based Internet Connectivity Likely To Be Delayed Into Next Year

Satellite communications, or satcom-based internet connectivity, maybe delayed due to regulatory roadblocks, Livemint reported. 

Industry stakeholders and close watchers said while satcom service providers are ready to launch their own services in India, multiple regulatory roadblocks and subsequent testing could delay the launch beyond the end of this year and could even stall its rollout until the end of next year. Satcom services in the mainstream fold entail satellite operators that have launched and deployed satellite constellations in low-earth orbit. These satellites subsequently work in a relay formation to ensure that they cover the entire planet with their bandwidth. As a result, satcom internet services have been pegged as one that can work even in extreme terrain. More here

Byju’s Creditors Move US Court To Add More Units In Bankruptcy Suit

A group of lenders asked a US court to impose bankruptcy oversight on multiple units tied to the struggling Indian education technology company Byju’s, claiming millions of dollars are being “siphoned” out of the companies, moneycontrol.com reported.

Creditors led by HPS Investment Partners filed involuntary Chapter 11 cases in Delaware against Neuron Fuel Inc., Epic! Creations Inc. and Tangible Play Inc. on Wednesday. All three were once affiliated with Byju’s Alpha, a unit of the once high-flying startup that was put into bankruptcy earlier this year after defaulting on $1.2 billion of debt. The lenders accused founder Byju Raveendran of violating their debt contracts by refusing to give them financial details about the three units. More here