Subsidy Cut Sees Electric 2-Wheeler Sales Slip Sharply In April; Private Capex To Expand This Fiscal

Private Sector Capital Expenditure To Expand This Fiscal

Private sector capital expenditure is likely to expand gradually amid expectations of high growth despite geopolitical uncertainties and tepid consumption remaining a concern, the Economic Times reported.

The Confederation of Indian Industry's business confidence index touched a 12-quarter high in January-March quarter, with 51 per cent firms expecting capacity utilisation of 75 per cent and above. Moreover, 71 per cent expect an improvement in private capex in the first half of FY2024-25, compared with the second half of FY2023-24.

The Indian economy is expected to grow 6.8 per cent this fiscal, according to the International Monetary Fund, following a strong 7.6 per cent expansion in FY2023-24. Read more

With Incentives Gone, Electric 2-Wheeler Sales Slip Sharply in April

The sales of electric two-wheelers (E2W) fell by about 53 per cent to 65,111 units in April against 1,39,531 in March, the Hindu Businessline reported. Industry insiders say sales picked up just before the government’s subsidy scheme got over on March 31 and slumped after the scheme came to an end. 

The government’s FAME II scheme began on April 1, 2019 for three years and was further extended for two years up to March 31 this year, with a total outlay of Rs 10,000 crore. On year-on-year basis, too, E2W sales declined by three per cent as compared with 66,873 units in April 2023, the latest data shared by the Federation of Automobile Dealers Associations said. More here

ESOPs Land Employees Of International Companies In Taxman Scanner

A brush with the harsh black money law can sometimes be an unwanted consequence of the employee stock ownership plan (ESOP) offered by overseas companies, the Economic Times reported.

Several resident individuals working in Indian subsidiaries and arms of offshore parents have recently received notices from the Income Tax (I-T) department which has pointed out amounts that either went undisclosed or untaxed or both.

The tax office has questioned the gaps that are showing up between the numbers reported by the employees in their annual I-T return (ITR) and the information received by the revenue department on the back of laws like the Foreign Account Tax Compliance Act (FATCA) and other information sharing pacts. More here

Global Crypto Players Binance, KuCoin Register In India

The regulatory gap between crypto firms registered with the Financial Intelligence Unit-India (FIU-India) and unregistered offshore entities is expected to narrow after global crypto players Binance and KuCoin received approvals to register with India's anti-money laundering unit, the Business Standard reported.

FIU-India is expected to lift the ban on Binance, the world’s largest crypto exchange, after completing due diligence, a top government official said.It had, however, lifted the ban on another offshore crypto exchange KuCoin in March after imposing a penalty of Rs 34.5 lakh.

While some industry players welcomed the move by the regulator, saying it gives a credibility boost for the crypto industry, others are concerned the entry of the global players may impact business. More here

Rural Vacancies Increase, Demand Up Despite Scorching Summer 

Rural India is creating a wave of new jobs, thanks to recovering demand and a scorching summer driving up sales of cooling products like air conditioners, refrigerators and fans, besides ice cream and beverages, the Economic Times reported.

There is a 20 per cent year-on-year increase in rural job vacancies, according to executives at recruitment services and consumer companies. They estimate 20,000-50,000 new temporary jobs are being created this year thanks to robust summer season demand in rural and semi-urban areas while companies with a large focus on rural businesses are looking to bolster sales and distribution presence in the hinterlands. More here

Rooftop Solar Scheme Will Need Training 1 Lakh People 

The government is working on readying a 100,000-strong workforce skilled in installation and management of solar panels to support its plan of helping 10 million homes run on solar energy, the Economic Times reported.

The Ministries of Renewable Energy and Skill Development and Entrepreneurship have jointly framed a skilling plan for the PM Surya Ghar: Muft Bijli Yojana, the rooftop solar project that aims to help households generate 300 units of electricity through grid-connected solar panels. The government will also train 50,000 vendors for entrepreneurship. The scheme, launched in February this year, offers subsidies of up to Rs 78,000 to those willing to install solar power generating units. More here