NITI Aayog Lists Targets For Viksit Bharat 2047; Finance Ministry Clarifies On Tax Certificate

The lithium block auction was scrapped due to too few bidders. In other news, RBI data finds banks are keen to lend even if they have to borrow, rather than generate deposits and loans up to Rs 50,000 from banks and fintech firms under RBI radar.

NITI Aayog Paper Says India Growth Rate Should Keep At 7-10 Per Cent For 20-30 Years

India needs to grow at a sustained pace of 7-10 per cent for 20-30 years to escape the middle-income trap, Business Standard reported quoting a NITI Aayog paper. 

In an approach paper summarising its vision for Viksit Bharat, the NITI Aayog said such growth will make India become a developed nation with a per capita income of US$18,000 per annum and the size of a US$30 trillion economy by 2047 when the country celebrates its centenary anniversary of independence.

"The GDP would have to grow 9 times from today’s $3.36 trillion and the per capita income would need to rise 8 times from today’s $2,392 per annum," the government's think tank said after its 9th Governing Council meeting attended by chief ministers and lieutenant governors. Read more 

Finance Ministry Clarifies On Tax-Clearance Certificate Effective October 1

The Union Finance Ministry has said it is mandatory for Indians involved in serious financial irregularities or having substantial tax dues to get a tax-clearance certificate before leaving the country, Business Standard reported.

The clarification comes amid the stir over new rules, effective October 1,  that mandate Indians going abroad to obtain a tax-clearance certificate under the Black Money Act. In the Finance Bill, 2024, it was proposed including the Black Money Act in the list of laws under which residents can clear their tax liabilities.

The ministry said a tax-clearance certificate was necessary only for individuals with significant direct tax arrears exceeding Rs 10 lakh if their case had not been stayed by any authority. More here 

Centre May Identify And Specify Industries, Sectors For Chinese Investment  

The Central government may consider preparing a list of sectors and industries where Chinese investments may be allowed, provided these help indigenise manufacturing and do not pose a security risk, Livemint reported. 

Once identified, investments may be permitted in these sectors without additional scrutiny under the Press Note-3 of the Foreign Direct Investment (FDI) regulation applicable to neighbouring countries. In place since the 2020 border conflict between India and China, Press Note-3 made it mandatory for investors from countries with land borders with India to seek government approval to invest.

As a result, very little investment has come in from China since the regulation, even though imports have maintained their momentum. More here

Centre Scraps Auctions Of Critical Mineral Mines Due To Poor Response 

The Centre has scrapped the auction of three critical mineral blocks, which includes a lithium mine in Jammu and Kashmir, Moneycontrol.com reported as per a notice issued by the Mines Ministry. 

The auction was annulled as the "required number of bids as per the mineral auction rules have not been received", the notice said. The three critical mineral blocks were scrapped under the third tranche of sale of mines due to a lower-than-required number of bidders.

The three blocks are Salal-Haimna Lithium, Titanium and Bauxite (Aluminous Laterite) Block in Jammu and Kashmir, Muskaniya-Gareriatola-Barwari Potash block in Jharkhand and Kurunjakulam Graphite block in Tamil Nadu. More here 

Banks Borrowed More To Lend In July Than Raise Deposits: RBI Data

Banks borrowed a record Rs 1.19 lakh crore from the market to fund demand for loans while they could mobilise lesser deposits - Rs 1.02 lakh crore in early July, the Economic Times reported quoting the latest Reserve Bank of India data (RBI) data, highlighting the challenges faced by banks in attracting depositors.

The war for deposits is set to intensify since the budget has not announced any measures to attract depositors as regulators as well as the government have been directing banks to focus on the core business of mobilising deposits.

Aggregate borrowings by banks at the system level amounted to Rs 8.83 lakh crore according to the RBI data published in its weekly statistical supplement and it indicates the extent of non-deposit resources used to fund loan demand. More here

RBI Monitoring Loans Up To Rs 50,000 From Banks, Fintech Lenders

The Reserve Bank of India is monitoring loans with a ticket size of up to Rs 50,000 on the books of banks and fintech lenders, the Business Standard reported.

 A majority of consumers in this segment service three “live” loans, and it is suspected this could be an indication of evergreening with the possibility of diversion into capital markets.

The scrutiny should be seen in the context of the RBI in November asking regulated entities (REs) to review their exposure limits for consumer credit and put in place board-approved limits for various sub-segments, specifically unsecured consumer credit exposures, by February 29, 2024. More here