Last Quarter FY 2023-24 Points To Worry In Easing Off; Electronics Industry Wants New PLI Scheme

FY 2023-24 Last Quarter Growth Drop Points To Key Drivers’ Slowdown

After strong growth rates of above 8 per cent for three consecutive quarters, economic growth is expected to have moderated to at least a four-quarter low in the March quarter of FY 2023-24 due to a sequential slowdown in key growth drivers, Business Standard reported quoting analysts.

During the first three quarters of FY 2023-24, the economy grew 8.2 per cent, 8.1 per cent, and 8.4 per cent, respectively. The National Statistical Office (NSO) has projected the FY 2023-24 growth rate at 7.6 per cent, implicitly assuming 5.9 per cent growth in the fourth quarter of FY 2023-24. The NSO will release the Q4 growth numbers and the provisional estimates of gross domestic product (GDP) data for FY 2023-24 on Friday. Read more

Sebi Makes It Difficult For FPIs With Outsized Exposure To Get Exemptions

The Securities & Exchange Board of India (Sebi) has hardened the conditions under which foreign portfolio investors (FPIs) with outsized exposures would be spared from making full disclosure of the investors in the fund, the Economic Times reported.

This was communicated by Sebi to custodians of offshore funds, two persons aware of the regulatory changes said. Custodians are banks and non-bank institutions holding cash and securities on behalf of FPIs. The FPIs impacted by the new rules will have to rejig their portfolios by August 20, failing which they would have to sell off their portfolios in the next six months. More here

Riding Mobile Export Surge, Electronics Industry Seeks New PLI Scheme

The electronics manufacturing industry is urging the government for a Rs 30,000-Rs 35,000 crore production-linked incentive (PLI) scheme for components and sub-assemblies, the Economic Times reported.

This new scheme is being sought along with capital expenditure backup to support surging exports of mobile phones and other electronics. "The incentive scheme is needed to support growing demand for electronics components to the tune of US$ 75-80 billion by 2026, and US$ 300 billion by 2032 to support US$ 300 billion worth of electronics products manufacturing by 2026 and US$ 1.2 trillion by 2032," the India Cellular & Electronics Association (ICEA), which represents top smartphone brands and manufacturing companies, said. More here

Ethanol Blending With Petrol Volume Hasn’t Gone Up Since Last Year

Six months into India’s latest ethanol supply season, the needle on blending biofuel with petrol hasn't moved an inch, the Business Standard reported.

The blending ratio in the first half of the November 2023-October 2024 ethanol supply year (ESY) averaged 12.1 per cent—flat from the entire ESY 2022-23. That compares with a 1.9 percentage point gain in 2021-22 from 2020-21 and a 2.1 percentage point gain in 2022-23 from the previous ESY. The slowdown in ethanol output carries consequences—hurling the 20 per cent ethanol-blended petrol (EBP) target by 2025-26 out of range—leaving India dependent on more polluting, expensive fossil fuel imports. More here

Too Many Terms Hold Up Prepackaged Insolvency For MSMEs

In the three years since its launch, the prepackaged insolvency resolution process has had a slow start, with limited interest from micro, small, and medium enterprises (MSMEs) and lower recoveries than the normal corporate insolvency resolution process, the Business Standard reported.

Prepack resolution is an arrangement where the promoter of the stressed company proposes a resolution plan to the creditors before the company can be taken to bankruptcy proceedings. The government promulgated an ordinance in 2021 and amended the insolvency law to help MSMEs avoid bankruptcy. However, the prepack scheme has not attracted many takers due to lack of advocacy, awareness, and a structure with an unreasonably high threshold of approvals from creditors and shareholders. More here

Sebi Tells Exchanges Not To Share Real-Time Share Price Data With Gaming Apps

The Securities and Exchange Board of India (Sebi), the capital market regulator, is cracking down on gaming apps providing virtual trading services and fantasy games based on the movement of real-time share prices of listed companies, the Economic Times reported.

Sebi asked exchanges and depositories not to share real-time price data with third parties in a move aimed at quashing such activities. "If the data is used for education or fun purposes, it's fine, but monetary incentives can't be allowed based on the performance of the virtual stock portfolio," said a regulatory official. "Then it's like dabba trading, which is illegal." More here