New Electoral Bond Scheme In The Works; World Bank Blows The Whistle On India’s Jobs Shortage

Centre Working On New Scheme To Replace Electoral Bonds

The Centre is working on a new scheme for funding political parties after the Supreme Court struck down the electoral bonds scheme as being unconstitutional, Livemint reported. It said the new scheme will address the concerns raised by the apex court. The finance ministry is holding internal consultations on the new scheme, which is expected to be finalised after the Lok Sabha elections in April-June.

The scheme will address issues of transparency and extent of political financing by corporations, which were questioned by the apex court. Legislative changes that may be needed for the new scheme have not been thought of since discussions are at an early stage, the report said. More here

World Bank Warns Of India Squandering Demographic Dividend 

The World Bank has upgraded its FY2025 economic growth forecast for India to 6.6 per cent, primarily because of “upward revisions to investment growth”, the Business Standard reported. The World Bank pegged India’s FY2024 growth rate at 7.5 per cent as a decade of robust public investment yields growth dividends. 

The update also had words of caution. It said India is on a path that risks “squandering” its demographic dividend of growth over its inability to provide employment for its growing population. The report said vibrant, competitive firms are key to unlocking the demographic dividend, robust private investment, and workers’ ability to move out of agriculture. Read more

Talks on ESOPs For Public Sector Bank Employees Begin, Decision After Polls 

Employees of public sector banks may get to buy stock options in the banks, the Economic Times reported. The government is said to have resumed talks with the banks to offer employee stock ownership plans (ESOPs) to eligible employees as a way to retain talent.

Further movement on this is expected after the Lok Sabha elections while a government official said it was a preliminary discussion and any decision on the proposal will be made after the polls. The bankers have appointed consultancy firm Deloitte to come up with suggestions and a framework. ESOPs have been discussed informally in the background over some 10-odd years. Here’s more

EV Sales Grow 41% In FY2023-24 But 2-Wheelers Hit By Subsidy Cut

Sales of electric vehicles (EV) in financial year 2023-24 saw an increase of over 41 per cent despite subsidy cuts and regulatory shifts, the Business Standard reported. The total EV registrations surpassed 1.6 million, which is significantly higher than last year’s 1.1 million. This has pushed the overall EV penetration in the country in FY24 to 6.8 per cent against 5.3 per cent in FY23.

Sales took a sharp decline after the government’s decision to cap the maximum subsidy for electric two-wheelers at Rs 22,500 apiece. This fall was over 35 per cent in June, dropping from an all-time high of 158,000 seen in May. Read more

After Pandemic, Rural Demand For FMCG Outstrips Urban Centres 

Rural demand has outstripped the cities for fast-moving consumer goods for the first time in some three years and hints at a demand recovery, the Economic Times reported. The bouncing back of the rural market is also being helped by a lower base and price cuts to offset hyperlocal competition, the report said quoting NielsenIQ data.

Demand in the hinterland has been dragging down overall growth in the past few years, along with underperforming urban markets, until November 2023. Villages last exceeded cities in FMCG sales expansion in March 2021. Before the pandemic, rural demand had been rising at twice the rate of urban areas. Read more

NHAI Wraps Up FY2023-24 With Yet Another Record In Highway Construction

The National Highways Authority of India spent a record Rs 2,07,000 crore in building national highways in 2023-24, the highest ever capital expenditure so far, the Economic Times reported. The amount has increased 20 per cent, compared to Rs 1,73,000 crore spent in 2022-23 and Rs 1,72,000 crore in 2021-22.

A government official quoted in the report said the construction of highways in the just-concluded financial year also surpassed previous records and stood at 6,644 km as against 5,544 km constructed in the preceding financial year. The total length of highways built in the last financial was 53 per cent higher when compared to 4,331 km built in 2021-22. More here