Today Top News of Finance Business And Share Markit
Introduction: India is witnessing significant developments across various sectors, impacting millions of citizens. Central government employees and pensioners are eagerly awaiting a potential increase in Dearness Allowance, while the discontinuation of the Sovereign Gold Bond scheme could mark a shift in government strategy. The Ayushman Bharat Yojana may soon offer doubled insurance coverage, and the job market is showing renewed optimism with increased hiring for freshers. Meanwhile, India’s GDP growth faces challenges, and stock markets continue their bullish streak. These key updates highlight the dynamic changes shaping the nation’s economic landscape and their potential implications for the future.
Good News for Central Government Employees: DA and DR Increase Expected Soon |
| Central government employees and pensioners are set to receive a welcome announcement in the coming days. The government is expected to increase the Dearness Allowance (DA) and Dearness Relief (DR), which will benefit approximately 60 lakh employees and 77 lakh pensioners. Currently, the DA is set at 50% of the basic salary, but with last year’s average Consumer Price Index for Industrial Workers increasing to 4.90, experts suggest that DA should be 53.3%. It is anticipated that the government will raise the DA to 53%, aligning with the previous trend of announcing DA hikes before the festive season. The last DA increase was announced on March 7, 2024, effective from January 1, 2024. |
Sovereign Gold Bond Scheme to Be Discontinued |
| In a significant development, the government is likely to discontinue the Sovereign Gold Bond scheme, which was initially launched in 2015 to curb the rising gold imports and reduce the demand for physical gold. Despite the success of the scheme, the import of gold has continued to rise, prompting the government to reconsider its strategy. With gold prices more than doubling since the launch of the scheme and the added burden of paying 2.5% annual interest to investors, the scheme has become less viable for the government. An official announcement is expected soon. |
Ayushman Bharat Yojana: Insurance Cover to Double |
| The Ayushman Bharat Yojana is set to undergo a major enhancement, with the Health Ministry proposing to double the insurance cover to ₹1 lakh per family. This proposal, prepared by the Group of Secretaries on Social Sector, is part of the ministry’s priorities for the next five years. The increase in cover, particularly for women, will be a significant boost to the 55 crore people currently covered under the scheme. Additionally, the ministry plans to increase the number of private hospital beds under the scheme from 7 lakh to 95 lakh by 2026-27. |
GST Council Meeting to Review Tax Structures |
| Ahead of the GST Council meeting on September 9, a Group of Ministers is scheduled to meet on August 23 to discuss the rationalization of GST rates. This meeting, which includes ministers from seven states, will focus on simplifying tax benefits, reviewing the GST exemption list, and addressing the inverted duty structure. The current GST system has five slabs (0%, 5%, 12%, 18%, and 28%), with a cess on luxury and harmful goods. The group is expected to make recommendations to increase revenue and streamline the tax structure. |
Ola Electric: Aiming for Profitability and Growth |
| Ola Electric is making headlines as it prepares for profitability and growth in the electric vehicle market. The company, which recently entered the electric motorcycle segment, is focused on increasing production, developing its supply chain, and using domestically produced batteries. Ola’s founder, Bhavesh Agarwal, stated that the company is working on strategies to improve profits in the coming quarters, with a particular emphasis on two-wheelers and three-wheelers. The use of its own batteries is expected to significantly boost profitability by next year. |
Employment Market Shows Positive Signs |
| The employment market in India is showing signs of improvement, with 72% of companies expressing a desire to hire freshers in the second half of the year. This marks a 4% increase from the first half and a 7% increase compared to the second half of 2023. According to a report by TeamLease Tech, this trend reflects growing confidence among companies and provides valuable opportunities for new talent entering the workforce. |
TRAI Warns Against Fake Calls |
| The Telecom Regulatory Authority of India (TRAI) has issued a warning to the public about fake calls being made in its name. These calls threaten customers with the disconnection of their mobile numbers and seek private information. TRAI has clarified that it does not contact customers regarding mobile disconnections and has advised citizens to be cautious of suspicious calls. The regulator emphasized that no third-party agency has been authorized to make such calls. |
India’s GDP Growth Slows Down |
| India’s GDP growth is expected to slow down to 6% in the April-June quarter, the lowest in the last six quarters. Rating agency ICRA has projected the growth rate for the entire financial year 2024 to be 6.1%, down from 8% in the previous financial year. The slowdown is attributed to reduced government capital expenditure and sluggish urban consumer demand. The Reserve Bank of India’s Consumer Confidence Survey also indicates a decline in urban consumer confidence, with rural demand remaining weak due to adverse monsoon conditions. |
Stock Markets Continue to Rally |
| Indian stock markets continued their upward trend for the sixth consecutive day, driven by strong buying in commodity, telecom, and consumer stocks. The BSE Sensex closed above 81,000, while the NSE Nifty crossed the 24,800 mark. Signs of weakness in US non-agricultural employment data have fueled expectations of an interest rate cut in September, contributing to the global market rally. |
Auto-Rickshaw and Taxi Strike in Delhi NCRCommuters in Delhi NCR are facing difficulties as taxi and auto-rickshaw drivers have launched a two-day strike, demanding better payments from cab aggregator companies. The Delhi Auto Taxi Transport Congress Union has claimed that 80% of auto-rickshaws and taxis are off the roads, leading to delays and cancellations for passengers. The strike highlights the drivers’ grievances over inadequate payments and the impact of motorcycle taxi services on their livelihoods. |
Air India’s In-Flight Entertainment Upgrade |
| Air India has started providing in-flight wireless entertainment services in its existing wide-bodied aircraft, addressing passenger complaints about malfunctioning systems. The airline, owned by the Tata Group, is in the process of upgrading its old fleet and adding new aircraft. The new entertainment service, Vista, has been introduced in wide-bodied aircraft and will soon be available in smaller aircraft as well. |
Gold Loan Market Expected to Double |
| Despite facing regulatory challenges, India’s organized gold loan market is expected to double to ₹14.1 lakh crore over the next five years. According to PwC India, the market is projected to grow at an annual rate of around 15%, driven by the substantial value of gold held by Indian households. However, growth may be moderate in the next two years due to increased regulatory scrutiny on loan-to-value ratios and auction processes. |
Income Tax Returns Processing Speeds Up |
| The Income Tax Department has processed approximately 4 crore income tax returns in just 15 days for the assessment year 2024-25. Over 7 crore returns have been filed so far, with nearly 5 crore already processed. This rapid processing is helping taxpayers receive their refunds more quickly, reflecting the department’s improved efficiency. |
Premier Energy’s IPO Launch |
| Premier Energy Ltd, a solar cell and module manufacturer, is set to launch its IPO to raise ₹830 crore. The Hyderabad-based company has fixed the price band for the IPO at ₹427-450 per share, with the offer opening on August 27 and closing on August 29. The company, which has 29 years of experience in the industry, plans to issue 91 crore fresh shares and offer 3.42 crore shares for sale. |
Conclusion
In conclusion, India’s economic landscape is rapidly evolving, with both opportunities and challenges on the horizon. The anticipated increase in Dearness Allowance is set to bring relief to millions of central employees and pensioners, while the discontinuation of the Sovereign Gold Bond scheme signals a shift in government policy. The expansion of the Ayushman Bharat Yojana and positive trends in the job market reflect ongoing efforts to improve social welfare and employment. However, slowing GDP growth and regulatory hurdles in the gold loan market remind us of the complexities ahead. As these changes unfold, they will significantly impact the country’s future trajectory.
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