RBI Governor Sees Rural Demand Driving Growth, NHAI’s PPP Projects Return In Modi 3.0 

RBI Governor Says Rural Demand Will Drive GDP Growth Higher

Reserve Bank of India Governor Shaktikanta Das said GDP growth for the first quarter of 2024-25 was projected to be 7.3 per cent, expressing confidence in continued economic momentum driven by rural demand revival, government expenditure, and services exports, the Business Standard reported.

He said rural demand, particularly on the consumption side, was now showing clear signs of improvement. Das said that while inflation had been decreasing, the last mile of disinflation could be challenging due to volatile food prices. He said a change in policy stance at this point could be premature. According to Das, the current account deficit (CAD) for FY24 could be lower than 1 per cent. Read more 

NHAI Dusts Off Private-Public Projects After 10 Years Out Of Favour

The National Highways Authority of India (NHAI) plans to offer 15 road projects worth Rs 44,000 crore, covering 900 km, for bids under the build-operate-transfer (BOT) mode in financial year 2024-25. If successful, this could mark the comeback of public-private-partnership (PPP) projects in highways, the Economic Times reported.

The government earlier this year amended the model concession agreement to make it attractive for the private sector to invest in road construction. PPP projects had been on the backburner since 2014. The 15 projects for this fiscal year are a part of the government’s plan to offer 53 projects worth over Rs 2.2 lakh crore under BOT mode over the next three to five years. More here 

Tweak In GST Law Can Benefit Online Gaming Companies Facing Tax Demands

The Goods and Services Tax (GST) Council is expected to take up a key amendment that has the potential to resolve the vexatious issue of retrospective taxation for online gaming companies, the Business Standard reported.

This amendment to the central GST (CGST) Act, if implemented, will give both the Centre and states the power to waive GST dues that have not been paid due to legal ambiguity or on account of “general practices” consistently followed by businesses. The proposed amendment, if implemented, may provide relief to online gaming companies facing Rs 1.12 lakh crore in tax demands through over 70 notices. More here

Meity Secretary Krishnan Meets Stakeholders Over Digital Competition Bill

Boss Representatives from the internet and mobile business expressed their concern about the draft Digital Competition Bill in a meeting with Information Technology Secretary S Krishnan conducted by the Ministry of Electronics and Information Technology (Meity), the Business Standard reported.

The meeting is significant because divergent stances have emerged among digital players. While big tech players have opposed the introduction of any ex-ante framework under the Bill, several Indian startups have favoured it.

Representatives from the Internet and Mobile Association of India (IAMAI), Digital News Publishers Association, Alliance of Digital India Foundation, Federation of Indian Fantasy Sports, and Cyber Cafe Association of India attended the meeting. More here

MSME Ministry Says 45-Day Payments Rule Has Got Unqualified Support 

The Ministry of Micro, Small and Medium Enterprises (MSME) has received “positive” feedback from industry regarding the 45-day payments cycle for MSMEs, the Business Standard reported. 

In FY23 Budget, the government introduced Clause (h) under Section 43B of the Income Tax Act to tackle the issue of delayed payments faced by MSMEs. The clause stipulated that expenses for buyers on invoices from MSMEs can only be claimed if paid within 45 days where an agreement exists, and within 15 days if there is no agreement.

MSMEs were up in arms against the law which they feared drove big companies away from them due to the legalese. FM Nirmala Sitharaman had indicated that she was ready to do what MSMEs wanted. More here 

Banks Say ATM Shortage Linked To Delays Caused By Make In India Push

Banks have sounded out the government and the Reserve Bank of India about the shortage in supply of automated teller machines (ATMs) while making a case for clarity in norms for procurement via the government e-marketplace, or GeM portal, the Economic Times reported.

Leading bankers had flagged the issue in a meeting with officials last month, the report said. Industry insiders said the initial reason for low capacity is connected to the 'Make in India' guidelines, which were implemented in FY20, and it took time for vendors to set up Indian operations. The Indian ATM market is projected to grow at a CAGR of 9.2 per cent between 2024 and 2032. More here