GST rationalisation: Review going on, a rate reset may come by September end
GST rate rationalisation: The group of ministers has postponed restructuring tax slabs, but has continued to review rates for items in the 12% and 18% brackets. They are considering sectors like health insurance, restaurants, and some food products. Final decisions on specific goods and services are anticipated by the end of September. Key Points
Economic TimesExporters seek separate division for non-trade issues, faster customs clearance
Exporters requested the establishment of a distinct division within the Commerce and Industry Ministry to address non-trade barriers, particularly those related to environment and sustainability. During their discussion with Union Minister Piyush Goyal, they also highlighted concerns about Chinese goods entering India via the ASEAN free trade agreement. Key Points
Economic TimesIndian official delegation heads for London for FTA talks
Negotiations for the India-UK free trade agreement are in the final stage. A high-level Indian delegation is heading to London to resolve remaining issues on goods, services, and rules of origin. The negotiations cover 26 chapters, including market access, skilled professionals, and import duties. The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23. Key Points
Economic TimesBullish on capital goods stocks? 3 reasons to be cautious
For the year ended December 31, 2023, the S&P BSE Capital goods Index experienced a remarkable surge of 66.89%, outpacing the Nifty50 and Sensex by considerable margins. Key Points
Economic TimesBharat Park to be set up in UAE: Piyush Goyal
Expressing concern on Free Trade Agreements (FTAs) with Japan, Australia, UAE, and South Korea, the minister said that utilisation of benefits are very poor in India. He also said that Bureau of Indian Standards (BIS) will spend Rs. 40 crore for setting up 21 testing laboratories across the country. Key Points
Economic Times
India, UK 14th round of FTA talks in January
Indias main exports to the UK are ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, while key imports include precious and semi-precious stones, ores and metal scraps, and engineering goods. Discussions are also going on between the countries on the bilateral investment treaty. Investment is being negotiated as a separate agreement and earlier, the plan was to conclude the two simultaneously. Key Points
Economic TimesWarranty period should start from date of installation and not purchase date: Centre to white goods makers
Consumer Affairs Secretary Rohit Kumar Singh has written a letter in this regard to six industry bodies as well as many manufacturers. With demand for consumer goods on rise because of festive season, the Centre on Thursday asked white goods manufacturers and sellers to revise their warranty or guarantee policy, ensuring that warranty starts from installation date and not the date of purchase. Key Points
The Tribune IndiaUnilever's India arm misses Q1 profit view on higher expenses
India's Hindustan Unilever (HLL.NS) reported a smaller-than-expected increase in quarterly profit on Thursday as the consumer goods major grappled with higher costs and tepid demand for branded tea. Key Points
Reuters10 Online Marketplaces for Selling Your Handmade Products
In recent years, the demand for handmade goods has increased in India. Customers are looking for unique, handcrafted products that fit their specific needs. The market for handcrafted items including jewellery, clothing, and home decor has flourished as a result of this trend. Key Points
Times of IndiaGlobal trade fairs on cards; sectoral targets for $1 trillion exports by ’30
Officials said investment promotion arm Invest India, which is also drawing up the countrys trade strategy, has identified 100-odd companies across 30 sectors and 30 countries, and around a 100 more being shortlisted as part of the Strategic Investment Targets Initiative. Besides, sectoral targets have been set for $1 trillion goods exports by 2030. Key Points
Economic Times
These 5 sectors gave superlative returns to investors in June; are the gains sustainable?
In June, the best-performing sectors in the Indian market were consumer discretionary, realty, healthcare, automobiles, and capital goods. The S&P BSE Realty, Healthcare, and Capital goods sectors saw 9-10% upside. Smallcap stocks in the automobile and auto ancillary sector also performed well. Analysts remain bullish on the auto ancillary space due to strong automobile demand. In the capital goods space, 31 smallcap stocks had double-digit returns. The healthcare sector also gave good returns, with several stocks experiencing significant gains. However, banks, financials, information technology, and oil and gas sectors underperformed. Key Points
Economic TimesAs UK introduces DCTS, Indian goods worth $960 mn to lose concessional duty access
Indian goods worth $960 million will lose their concessional duty access due to the UKs new Developing Countries Trading Scheme (DCTS) that will supersede the previous preferential regime from Monday. That said, this exclusion may turn out to be temporary as both countries are in the process of finalising a Free Trade Agreement. Key Points
Economic TimesRetail inflation slides to 4.7% in April; IIP grows just 1.1% in March
India’s retail inflation slid to 4.7% in April, staying below the Reserve Bank of India’s 6% tolerance threshold for price rise for the second successive month and Industrial output grew just 1.1% in March 2023, moderating sharply from 5.8% in February Key Points
The Hindu4 stocks from consumer electrical space with upside potential of up to 30%
Electrification not only in terms of reach across the country but also the number of hours it is available has increased in large parts. It has helped companies expand not only geographically but increase their product range from just electrical wire to white goods. The high valuations have been taken partially care off by the multiple coming down and also partly by the fact that earnings did catch up. Key Points
Economic TimesHow much jewellery, gold can I take with me to UK from India?
Indian laws have no value limit on exporting gold jewellery as long as it is the passenger's bonafide baggage. UK customs/import duties may apply. Declare items beforehand. Key Points
mint
India, UK free trade agreement: 12th round of talks from Aug 7
India and the UK are close to finalizing a free trade agreement (FTA), with the 12th round of talks set to take place in August. The talks are expected to cover issues such as investment, reduced duties on autos and whiskey, and trade in services. Of the 26 chapters in the proposed FTA, 19 have been agreed, while a separate agreement on bilateral investment is also being negotiated. Key Points
Economic TimesExport orders rise 10% in six months on demand from US, EU
Export orders up 10% in EU, West Asia, US driven by leather goods, footwear, apparel demand in India. Challenges for engineering goods due to geopolitical tensions. Increase in apparel orders from UK and demand for non-leather footwear. Positive impact of trade pacts with Australia and Mauritius. Market recalibration after inventory decline, logistics issues, and geopolitical tensions. Key Points
Economic TimesGST, subsidy, affordable housing & more: India Inc's wish list for the Interim Budget
Union Budget: The Confederation of Indian Industry (CII) has offered policy suggestions to the Narendra Modi government for the upcoming interim Union Budget. The CII suggests balancing fiscal consolidation with economic growth by reducing the fiscal deficit to around 5.4% of the GDP. They propose a three-rate structure for the goods and services tax (GST) and prioritizing investor interest in the government's divestment program. Key Points
Economic TimesOffshores online gaming companies: ED raids 25 locations, remittance to the tune of Rs 4,000 crore under s
Remittance to the tune of Rs. 4000 crore allegedly made in the guise of payments for import of goods and services is under scanner. Rs. 19.55 lacs in cash, US$2695 and 55 bank accounts of firms being used for layering and remitting income generated from online gaming in the guise of remittances against import of goods and services have also been frozen, the agency said in a statement on Tuesday. Key Points
Economic TimesUS targets cheap products coming in from China. What's the 'de minimis' loophole it's trying to plug
Biden administration puts in new curbs to counter low-value products mainly originating from China-founded e-commerce platforms. This comes 2 months ahead of US presidential elections. Key Points
ThePrint
CAG asks Finance Ministry to put in place online Customs refund system
Under the Customs Act, refunds can be claimed in cases where the imported goods are found to be defective or not in conformity with the specification agreed upon, when the goods are exported after payment of the export duty/cess and the exported goods are returned to the exporter. A refund can also be claimed by a person who has paid duty on assessment of imported goods and applies for refund of duty consequent on remission /abatement of duty due to pilferage/damage of goods. Key Points
Economic TimesBosch Ltd to increase manufacturing in India - CFO
Bosch Ltd (BOSH.NS), the Indian arm of German automotive supplier Robert Bosch GmbH, is looking to boost manufacturing in India over the next two to four years, the company's financial chief said on Tuesday. Key Points
ReutersRural consumer goods consumption back to growth in March quarter, says report
The increase in product prices slowed to 6.9% from January to March, from 7.9% in the previous quarter, helping consumption in rural India increase 0.3%, after six quarters of decline. Key Points
FinancialexpressIs the worst behind them? 5 stocks from electrical and mini white good space with upside potential of up t
On a day when the majority of the stocks are trading with a cut, one set of stocks which have been able to log in gains has been from a space which cannot be very clearly defined. The reason, what would you call a company which makes both, water geysers , and electrical wires, a white goods or electrical goods company.From the year 2015 to 2020, companies with strong brands in different sectors which were considered as commodity plays got re-rated by the street. The expansion in price earnings multiples of these companies led to big wealth creation.For the last more close to four years, with some more companies getting listed in the same sector and some headwinds emerging we saw these companies consolidating between a very broad range. Is the phase of valuation readjustment over, probably a time to get them on the watch list. Key Points
Economic TimesGovt rolls out mandatory quality norms for electrical accessories
Under this order, items cannot be produced, sold, traded, imported and stocked unless they bear the Bureau of Indian Standards (BIS) mark. The order will come into force from six months of the date of publication of the notification, DPIIT said. Key Points
Economic Times
Summer Rush: Consumer companies' production in top gear
White goods makers are increasing production and running their cooling product line of air conditioners, refrigerators, coolers and chest freezers at 90-100% capacity compared with 60-70% in January-February. Even fast-moving consumer goods (FMCG) and beer companies are running their assembly lines at full steam. Key Points
Economic TimesProgress of India-UK trade pact talks reviewed at highest level
The India-UK free trade agreement negotiations are at a crucial stage, with the Prime Minister's Office reviewing progress on February 16. Commerce and Industry Minister Piyush Goyal and Commerce Secretary Sunil Barthwal attended the meeting. Both countries are working to resolve remaining issues. The pact covers 26 chapters, including goods, services, investments, and intellectual property rights. Key Points
Economic TimesUS GDP grows more than expected at 3.3% in Q4 of 2023
US GDP surpassed expectations, growing by 3.3% in Q4 of 2023, driven by a resilient job market and robust consumer spending, exceeding the 2% economist consensus. Both S&P and Nasdaq futures saw pre-market gains. The year-end marked a strong period for the US economy, with a full-year growth of 2.5%, according to the Commerce Department. Meanwhile, the European Central Bank (ECB) maintained interest rates for the third time, sustaining the historic rate of four percent despite inflation easing. Key Points
Economic TimesColgate-Palmolive India posts Q3 profit jump on lower expenses, urban demand
BENGALURU (Reuters) - Colgate-Palmolive (India) reported a 35.7% jump in third-quarter profit on Monday, aided by healthy urban demand and a fall in expenses. Net profit rose to 3.30 billion rupees ( Key Points
ThePrintGood days are back? 5 stocks from capital goods and engineering sector with upside potential of up to 35%
Capital goods and engineering companies had faced tough times for many years. The reason, there was hardly any capex in many sectors of the Indian economy. This changed in 2014, when the new government took over. Road and infrastructure sector got a big push and all the companies in that sector saw their order book growing sharply. Over a period of nine years, many other sectors have seen a sharp increase in their capex. Right from railways to defence all of them have seen increased outlays leading to sharp improvement in the bottomline of the companies in the whole chain of companies. Given the capacity utilisation which some other sectors might see in near term, some more engineering and capital goods may come into focus. Key Points
Economic Times
Govt to come up with 60 quality control orders this year to stop imports of sub-standard goods
Violation of the law can attract a penalty of up to two years of imprisonment or with fine of at least Rs 2 lakh for the first offence which increases to Rs 5 lakh minimum for the second and subsequent offences. These orders are issued by the department in consonance with the WTO (World Trade Organization) Agreement on Technical Barriers to Trade (TBT) for industries falling under its domain. Key Points
Economic Timesgoods trains collide in West Bengal's Bankura, 12 bogies derailed
Two goods trains collided with each other near West Bengal’s Bankura in the wee hours of Sunday, resulting in the derailment of 12 boggies. The incident happened at Onda station. Key Points
India TodayNo deadline for conclusion of India-UK trade pact talks: Commerce Secretary
The 'rules of origin' provision prescribes minimal processing that should happen in the FTA country so that the final manufactured product may be called originating goods in that country. Under this provision, a country that has inked an FTA with India cannot dump goods from some third country in the Indian market by just putting a label on it. It has to undertake a prescribed value addition in that product to export to India. Rules of origin norms help contain the dumping of goods. Key Points
Economic TimesIndustrial growth slows to a three-month low of 3.7% in June
“The sequential slowdown was led by the manufacturing sector, while the mining and electricity sectors witnessed an improvement in their growth performance amid deficient rainfall in the month,” said Aditi Nayar, chief economist, Icra. Manufacturing, which has a weight of 77.6% in the Index of Industrial Production, grew at its slowest pace of 3.1% in three months, even as electricity and mining outperformed, showed a government data release on Friday. Key Points
Economic TimesTailwinds to continue: 6 capital goods and engineering stocks with upside potential of up to 40%
Capital goods and engineering companies had faced tough times for many years. Given the fact that hardly any capacity buildup was taking place in any industry, a number had to change their product portfolio and had to live with very low margins. But all the efforts have now started to show some results. Three things impact the demand for capital goods . First, spending by the government, spending by the private sector. Last but not the least the focus of the government policies. After the state election results, there is a higher probability that two out of three factors are likely to continue to play. Will this lead to another round of strong re-rating? Key Points
Economic Times
India, UK close to concluding FTA talks, working to iron out issues on IPRs, rules of origin
India and the UK are close to wrapping up negotiations on a proposed free trade agreement (FTA), with the remaining issues largely relating to intellectual property rights, rules of origin and investment treaty, according to a senior government official. The UK will be the first developed country with which India has such a comprehensive FTA. Key Points
Economic TimesUnilever's India arm falls after costs hit quarterly profit
Shares of consumer goods major Hindustan Unilever (HLL.NS) fell as much as 2.4% on Friday after reporting a smaller-than-expected increase in June-quarter profit, hurt by higher costs and tepid demand for branded tea. Key Points
ReutersGST an engine for driving consumption, helped households save on monthly bills: Govt
The goods and Services Tax (GST) has helped drive domestic consumption and save households money since its implementation in India six years ago, according to the government. The number of registered taxpayers has also increased significantly since its introduction. Under the GST, a four-rate structure is applied to different types of goods, with a top rate of 28%. Key Points
Economic TimesHunt for gems in industrial and infrastructure sectors: Pashupati Advani
India is considered a good investment due to its growth opportunities, particularly in the capital goods and infrastructure sectors. While IT companies and PSU stocks may suffer from cooling relationships between India and the US, the current government's focus on infrastructure spending is bolstering stock markets. Pashupati Advani, founder of Global Foray, suggests investing in midcap cement and infrastructure stocks, as well as new-age businesses, such as Paytm and Zomato. Key Points
Economic TimesRetro amendment clears key GST doubt, but opens door for further litigation
The Finance Bill proposes to do away with GST on merchant trade, in-bond sale and high sea sales. But by not refunding the tax collected under these categories, the government is opening another can of worms. Key Points
Economic Times
Restrictions, PLI, mandatory quality norms help cut import of certain non-essential goods
Various steps such as inbound shipments of certain goods, production-linked incentive scheme and mandatory quality norms have helped in reducing import of non-essential products. To cut imports, the government has increased customs duty on gold, imposed curbs on inbound shipments of television, levied minimum import price on some goods, introduced National Food Security Mission (Oilseeds and Oil Palm) Scheme, and blending of ethanol in oil. Key Points
Economic TimesTrade deficit narrows to 5-month low in December, exports at 9-month high
India's trade deficit narrowed to a three-month low of $19.8 billion in December as exports grew and imports eased. Explore the details of the trade gap, goods exports, and the challenges ahead. Key Points
Times Of IndiaIndia’s exports to grow higher than world average: StanChart
The global growth in goods trade will be 5% on an average till 2030 to touch $32.6 trillion while India will be growing at 7.5% annually during that period, the report said. Key Points
FinancialexpressExports, trade gap hit record high in FY23
India's merchandise exports reached $447bn in 2022-23, a rise of 6%, driven by outbound shipments of petroleum, pharma, chemicals and marine goods. Its imports grew 16.5% to $714bn in FY23, leading to a trade deficit recording in goods of $266.78bn. However, the overall trade deficit was $122bn in FY23 due to a trade surplus in services. The estimated growth of services exports, at around 27%, surpassed that of goods at 6.03%. Key Points
Economic TimesTrade deficit narrows to nearly $21 billion in November
India Business News: India's trade deficit in November narrowed to $20.6 billion as goods exports and imports fell. goods exports declined due to a shrinkage in key produc Key Points
Times Of India
High five! These 5 sectors gave double-digit returns in H12023
Real estate and manufacturing sectors outperformed cyclical sectors in the first half of 2023 in India. The realty sector registered about 20% returns in January-June 2023, against negative results of 19% in the same period last year, with the residential segment recording significant sales and sales launches during the same period. The S&P BSE Capital goods index rose 20% from June 2022, riding on the governments focus on infrastructure and local manufacturing. Meanwhile, the power and oil and gas sectors saw almost no gains as the S&P BSE Power index dipped by 9%, while the S&P BSE Oil and Gas index saw a fall of over 10%. Key Points
Economic TimesEU moving towards paperless customs system from June; Indian exporters must prepare to comply
The European Union (EU) is transitioning to a paperless customs process, implementing the second phase of its Import Control System (ICS) from June 3, 2024. This move is significant for Indian exporting firms, as the EU constitutes about 17% of India's total merchandise exports. Key Points
Economic TimesElectronics exports from Tamil Nadu touch $7.37 billion
India Business News: Tamil Nadu has continued to consolidate its position as India’s leading exporter of electronic goods with its value touching $7.37 billion for the period April 2023 to January 2024. The state’s export of electronic goods is expected to hit $9 billion by the end of this financial year. Learn more about the growth of electronics exports from Tamil Nadu and the state's efforts to tap the sector's potential. Key Points
Times Of IndiaDollar inches down as heavy week of data begins
By Caroline Valetkevitch NEW YORK (Reuters) -The dollar edged lower against a basket of major currencies on Monday ahead of U.S. durable goods orders and an inflation reading this week that could Key Points
ThePrintCapital goods and fertilisers are most impacted by the Red Sea crisis: CRISIL
The Red Sea conflict has also impacted Middle Easts fertiliser exports to India. Shipment timelines have been extended by nearly a fortnight and hiked freight costs. “Import of the key fertiliser, muriate of potash (MOP), from Jordan and Israel has been majorly affected. Israel constitutes 10-15% of MOP exports to India, while Jordan constitutes 25-30%,” CRISIL said while adding that the Indian government has assured a sufficient buffer for fertilisers but MOP supplies from these countries will be affected if the situation persists for long. Key Points
Economic Times
DGFT working with MEA, customs, industry to ease export norms for some dual-use goods
The government is working to ease export norms for certain products with dual-use, such as chemicals, for companies with a proven track record. The Director General of Foreign Trade (DGFT) emphasised the sensitivity of dual-use goods and technologies, which can cause disruptions if misused. These goods include high tech equipment, chemicals, biotechnology, defense, aerospace, electronics, telecommunications, and information security. Key Points
Economic TimesFinal ONDC sellerto be liable for TCS, CBDT clarifies
In detailed guidelines, the CBDT said TCS will be collected on the gross amount charged to the customer. In case the buyer receives a discount, the TCS will be on the final invoice raised to the buyer irrespective of whether the first e-commerce operator is offering the discount or the second. The CBDT also said in case of purchase of goods which are not under the purview of goods and Services Tax, the TDS will be applicable on the amount without including state levies, VAT or other tax. Key Points
Economic TimesBeneficiary for capex recovery in different sectors: 6 small, midcap engineering and capital good stocks
Recently in review of the PLI schemes, the government indicated that things are on track and some of the results would be visible soon. Especially in the chemical and pharmaceutical space are doing well, this is not to say that electronics and others are not doing well. Whenever capacity expands in any industry, one segment which is bound to get its order book better is capital goods and engineering companies. Over the years some companies have changed their business model in a way that they are a mix of capital goods and engineering companies as they provided turnkey solutions. We look at companies with an overlapping nature of business which give supply capital good and engineering service to different sectors. Key Points
Economic TimesITC consumer goods margins jump, launches 300 items in 3 years
In 2022-23, the company’s packaged consumer goods business comprising brands such as Aashirvaad atta, Sunfeast cookies, Fiama soaps, Engage deodorants, etc. reported revenues of ₹19,123 crore. Key Points
mintDisbursement of Rs 79 crore incentives under PLI for white goods expected in last quarter of this fiscal
Indian government is set to disburse around Rs 79 crore in fiscal incentives under the Production Linked Incentive (PLI) scheme for white goods in the last quarter of the financial year. The PLI scheme for white goods aims to promote domestic manufacturing of air conditioners and LED light components. Some selected beneficiary firms have already started production, contributing to the disbursement target. Key Points
Economic Times