Category: BUSINESS

New Delhi: Union Finance Minister Nirmala Sitharaman has said that Goods and Services Tax (GST) rates will be reduced further as the process of rationalising tax slabs is nearing completion.

FM Sitharaman mentioned that the revenue neutral rate (RNR), which was 15.8 per cent when GST was introduced in July 2017, has now come down to 11.4 per cent in 2023 and will decrease further.

Speaking at a media event in the national capital, FM Sitharaman said that the work on simplifying GST slabs is almost finished. The GST Council, which is led by the finance minister and includes state finance ministers, is expected to take a final decision soon.

‘Now, at this stage, there is one more look that I would (take) the groups (GoM) have done excellent work, but I still have taken it upon myself to, once more, completely review each of the groups’ works, and then probably take it to take it to the Council to see if we can come to a final conclusion on this,’ the Finance Minister stated.

The GoM was set up in September 2021 to suggest changes in GST rates and slabs. This committee consists of finance ministers from six states and has been working on making the tax system more efficient.

The rationalisation process includes reducing the number of tax slabs, streamlining rates, and addressing key concerns raised by different industries.

The Union Minister emphasised that a final review is underway before presenting the proposal at the next GST Council meeting.

‘We’ll take it to the next council (meeting). We are very close to coming to a final call on some of the very critical issues, reduction, rationalisation of rates, looking at the number of slabs and so on,’ FM Sitharaman said.

When asked about stock market volatility, the finance minister attributed it to global uncertainties, including wars, disruptions in the Red Sea, and piracy threats.

FM Sitharaman said that predicting absolute stability in the markets is difficult due to these unpredictable global factors.

On the government’s plans for public sector banks, the Union Minister added that the efforts are being made to increase public shareholding.

The goal is to have more retail investors in public sector banks, which will enhance public participation in the banking sector.

Regarding the India-US trade deal, the Finance Minister mentioned that both countries are working towards a mutually beneficial agreement.

FM Sitharaman also highlighted that India is actively engaged in negotiations with the European Union and the United Kingdom, ensuring that national interests remain a priority.

Mumbai: Finance Minister Nirmala Sitharaman on Saturday said the GST rates will come down further and the work on rationalising tax rates and slabs has “almost reached a finale”.

She said that the revenue neutral rate (RNR) has come down from 15.8 per cent at the time of the launch of GST on July 1, 2017, to 11.4 per cent in 2023.

“It will come down even further down,” the minister added.

The GST Council, headed by Sitharaman and comprising her state counterparts, in September 2021, set up a group of ministers (GoM) to rationalise GST rates and suggest changes in slabs. The GoM comprises finance ministers of 6 states.

Responding to a question at ‘The Economic Times Awards’ on whether it is time to rationalise GST rates and slabs, Sitharaman said “that work has almost reached a finale”.

“Now, at this stage, there is one more look that I would (take) the groups (GoM) have done excellent work, but I still have taken it upon myself to, once more, completely review each of the groups’ works, and then probably take it to take it to the Council to see if we can come to a final conclusion on this,” she said.

Sitharaman said some more work is required on rate rationalisation.

“We’ll take it to the next council (meeting). We are very close to coming to a final call on some of the very critical issues, reduction, rationalisation of rates, looking at the number of slabs and so on,” she said.

To a question on the reasons for stock market volatility and how the path towards more calm markets playing out, Sitharaman said, “It is like asking will the world be calm, will the wars come to an end, will the Red Sea be safer, will there be no sea pirates. Can I comment on it or any of you can comment”.

On public sector banks’ stake dilution, Sitharaman said the government is committed to increasing the public float.

“We want to have more retail investors in public sector banks,” she said.

Hyderabad: Chief minister A Revanth Reddy has accused Bharat Rashtra Samithi (BRS) leaders of deriving sadistic pleasure out of SLBC tunnel collapse incident and the drying up of standing crops.

Reminding that history has never been kind to those drawing pleasure out of others’ miseries, he advised BRS leaders to extend their help, or give suggestions in such distressing times, instead of criticising him and enjoying people’s suffering.

He was addressing a massive gathering of women at the Indira Mahila Shakti public meeting held at the Parade Grounds in Secunderabad on Saturday, March 8, where he handed out cheques worth Rs 22,794 crore to 2,82,552 women’s self-help groups (SHG) in the state, in addition to giving them accidental insurance scheme worth Rs 44.80 crore.

Revanth Reddy also virtually laid foundation-stones for the establishing solar power plants to be owned and operated by the SHG women on the occasion.

He announced that the state government was soon going to empower the SHG women to run rice mills and godowns in every mandal, for which he said the state government will not only provide land, but will also give loans to establish them.

By making the women run these businesses, he said that a lesson will be taught to those diverting and recycling the rice from the mills, which are intended to be milled and distributed in public distribution system.

“You build the godowns and become entrepreneurs. The government will support you. Let us prove that Indira Mahila Shakti is a role model for the world,” he said, taking the responsibility to transform one crore women as crorepatis in Telangana.

He felt that Telangana could become one trillion economy only if one crore women were made crorepatis.

To empower SHG women to turn entrepreneurs, he said that the state government was also giving solar projects with a capacity of generating 1,000 MW solar power to them, and also by making them owners of 1,000 electric buses, to be rented out and run by Telangana State Road Transport Corporation (TGSRTC).

He also said that Mahila Shakti buildings would be constructed in every district headquarters, where the SHG women could hold their meetings.

To transform government schools to have the standards of corporate educational institutions we have given the operation of those schools to SHG women. The state government has given the responsibility of stitching 1.3 crore government school uniforms to SHG women,” he noted.

Encouraging the SHG women to compete with corporates giants like Ambani and Adani, he said that only if SHGs were strengthened, could the state achieve economic progress.

He also appealed to the women to be politically empowered and serve the society as people’s representatives.

Nashik: BJP leader Smriti Irani on Friday suggested real estate developers to diversify their business and said there is a huge demand for data centres in India.

Addressing a conference organised by CREDAI here, she said there is a huge demand for data centres in India and around 18 million square feet area will be required over the next 4-5 years for data centres.

Irani, the former Union Minister, also spoke about the growing number of Global Capabilities Centres (GCCs) across major cities in India and beyond.

Acknowledging the contribution of the Indian real estate sector in economic growth, she asked builders to share their best practices related to construction technologies and sustainable development with urban local bodies.

“I do not think that there is anybody in governance or bureaucracy that can deny CREDAI’s community contribution to India’s GDP,” she said.

The BJP leader was responding to a query about the government’s perception about the real estate sector.

“We have to accept the fact that with that for the nomenclature ‘real estate’ there has been a lot of bad press. There has been a projection in the media as though you are not a community of nation builders, you are a community of profit chasers,” she observed.

Irani said real estate is not only about building tall towers or gated communities for people, either in big cities or emerging cities, but it is also about building capacities for the future data centres and building capacities for attracting more GCCs into the country.

Currently, she said there are 1,600 GCCs in India and close to 1.6 to 2 million people are working in those GCCs.

She said that the number of GCCs are expanding and the data centers have to be complemented by a power grid.

As these GCCs are also spread in Tier II and Tier III cities, Irani said there will be a requirement of building an entire ecosystem around it including data centers, housing, technology centres, healthcare infrastructure, education facilities and entertainment centres.

“So I believe that there needs to be a new projection of the word real estate,” she said.

Irani said at least 18 million square feet of area is needed only for data centers in India over the next 4-5 years.

“So, why should somebody presume that real estate is only about a gated community or a tall fancy building. Can we reorient how you are looked upon as an industry,” Irani said.

CREDAI is organising the 6th edition of the New India Summit during March 7-8.

With Tier 2 and Tier 3 cities accounting for an increasing share of real estate investments and housing demand, the association through this annual Summit makes efforts to navigate the evolving landscape of real estate in Bharat.

The Confederation of Real Estate Developers’ Associations of India (CREDAI) is the apex body of private real estate developers in India.

Established in 1999, CREDAI represents more than 13,000 developers across 230 city chapters in 21 states.

New Delhi: Tech Mahindra on Friday said that it has taken a significant step in expanding its footprint in the United States (US) with the inauguration of its new headquarters in Plano, Texas.

The move signals the company’s growing commitment to the US market and its efforts to strengthen its role in driving technological innovation across industries.

The new office, Tech Mahindra’s 19th in the US, is strategically located in North Texas, a region known for its thriving business ecosystem and deep talent pool.

With a sprawling 27,000-square-foot facility accommodating 130 seats, the office is set to become a hub for technology consulting, customer support, and digital solutions.

One of the key highlights of Tech Mahindra’s expansion is the planned Innovation Lab within the Plano facility.

The lab will act as a center of excellence, driving research and development efforts to accelerate innovation.

“Tech innovation is crucial for our region’s growth. The new Tech Mahindra office will nurture local talent and contribute significantly to our economy, reflecting our shared commitment to fostering a thriving tech ecosystem,” Plano Mayor John B. Muns said.

Lakshmanan Chidambaram, President and Head of Americas Leadership Council at Tech Mahindra, described Texas as an emerging powerhouse for technology and innovation.

“As a top employer in North Texas, we celebrate the opening of our new facility, which underscores our commitment to supporting customers, partners and the local economy,” Chidambaram said.

He added that the new facility will enable us to enhance our innovation offerings, particularly in areas such as artificial intelligence, cloud computing, and cybersecurity, delivering cutting-edge solutions that meet evolving industry needs.

Meanwhile, in Q3, the IT and digital solutions provider posted 21.4 per cent drop in its net profit at Rs 988 crore (quarter-on-quarter) as compared to Rs 1,257 crore in the same quarter last fiscal (Q3 FY24).

The company’s total headcount at the end of the quarter was 150,488, down 3,785 on the quarterly basis.

New Delhi: There is an immediate need for improved road safety measures to put in place, Union Minister for Road Transport and Highways, Nitin Gadkari, has said, urging the road construction industry to develop strategies to enhance road safety by adopting newer technologies and sustainable recyclable construction materials.

“With road safety a top priority, the government aims to reduce accident rates by 50 per cent by 2030,” the minister emphasised.

Speaking at the two-day ‘Global Road Infratech Summit and Expo (GRIS); in the national capital, the minister observed that most of the road accidents that happen in the country are due to poor civil engineering practices in road design, construction, and management and improper road signages and marking systems.

Gadkari suggested that they can be rectified by emulating from what is being practiced in countries like Spain, Austria and Switzerland.

India witnessed 4,80,000 road accidents, 1,80,000 deaths, and about 4,00,000 serious injuries.

Out of these 1,40,000 accident deaths are in the age of 18-45 years and affecting mostly two-wheeler riders and pedestrians.

“These accidents contribute to an economic loss of 3 per cent to GDP,” Gadkari noted.

Holding engineers largely responsible for the rise in road accidents due to poor planning and design of roads, the Union Minister also pointed to substandard detailed project reports (DPRs).

“With road safety a top priority, the government aims to reduce accident rates by 50 per cent by 2030,” he added.

Gadkari urged the industry and government to collaborate in finding solutions to prevent road accidents, emphasising the importance of education in building safer infrastructure and promoting awareness on safer driving habits.

He also highlighted the need for stronger law enforcement and responsive emergency medical services.

The summit is being organised to inspire innovation, showcase cutting-edge solutions from industry providers, foster knowledge exchange, and open valuable networking opportunities for experts and decision-makers from government bodies and private organisations.

Washington: US President Donald Trump has said he would “probably” extend the timeline for a TikTok sale if a deal isn’t reached by the initial deadline.

When asked by a reporter if he plans to extend the TikTok ban deadline if a deal is not hammered out in time, Trump said, “Probably, yeah.”

“We have a lot of interest in TikTok,” Trump said during Oval Office remarks on Thursday, adding that China will play a role in the decision.

He did not say how long an extension would be if one was needed.

“Right now we have at least another month, so we don’t need an extension,” he said.

“But if I needed an extension, I’d probably get an extension.”

A law signed last April under the Biden administration requires the popular China-owned social media app to be sold to an owner in the US or one of its allies or face a ban because of national security concerns.

Trump signed an executive order on January 20 that gives TikTok parent company ByteDance another 75 days to find a new owner.

The comments come as uncertainty looms over TikTok’s future in what has been a turbulent couple of months for the app.

TikTok briefly shut down for around 12 hours in January before Trump signed the executive order extending the sale deadline.

Although the app was quickly restored, it didn’t reappear in Google and Apple’s app stores until mid-February.

The social media platform was quickly brought back online after Trump pledged to issue an executive order once back in office to give the company an extension. The President made good on that promise, giving ByteDance until April 5 to hammer out a divesture deal.

Numerous buyers have expressed interest in purchasing the US arm of TikTok. The list includes bids from YouTube star MrBeast and a joint proposal from former Los Angeles Dodgers owner Frank McCourt and “Shark Tank” star and investor Kevin O’Leary.

Trump has floated numerous other names like his ally Elon Musk and Oracle founder Larry Ellison.

The President noted on Thursday the deadline is still about a month away, “so we don’t need an extension.”

The prospect of selling TikTok appeared dead in the water under the Biden administration after TikTok and ByteDance repeatedly said any sort of divestment was not a feasible option.

The Chinese government, however, has increasingly signalled a potential change of heart on the deal, though it is unclear if any specific bid has made notable progress.

Hyderabad: Telangana cabinet has approved developing 30,000 acres for its ambitious Future City Project between Nagarjunasagar highway and the Srisailam highway, covering 7 mandals and 1,355 villages.

The cabinet has approved increasing the limits of the Hyderabad Urban Development Authority (HMDA) to cover 11 districts, 104 mandals and 1,355 villages in Telangana, extending its reach between the limits of the outer-ring road (ORR), up to 2 km outside the regional ring road (RRR).

Explaining the cabinet’s decisions after marathon 6-hour-long discussions at Dr BR Ambedkar Telangana State Secretariat on Thursday, March 6, revenue minister Ponguleti Srinivas Reddy said that Telangana has been trifurcated into three zones, where Telangana’s core area lies within the ORR’s limits.

He said that from the ORR till the RRR and 2 km outside it marked as the buffer zone, it will be demarcated as the Telangana’s urban area, and the rest of the state will be the rural Telangana.

He stated that 56 villages in the 7 mandals of Hyderabad’s periphery were newly being merged with the Future City Development Agency (FCDA) region, for which 90 new posts have been approved by the cabinet.

He said 332 new revenue villages were added to the HMDA’s limits.

It was also decided to table the draft SC Categorisation Bill in the next assembly session, apart from introducing the bill to give 42% reservations to the backward classes (BC) in education, employment and politics.

In the six-hour-long cabinet meeting that was held on Thursday, the state cabinet has also approved bringing about an Indira Mahila Shakthi Mission- 2025l by bringing all the women’s self-help groups under the MEPMA and SERP under one umbrella.

It was also decided to increase the membership age limit of self-help group (SGH) women to 15 years to 65 years.

Establishment of the Yadagirigutta Temple Board, and developing 27 tourist destinations across the state under the Telangana Tourism Policy-2025, and conducting Miss World Pageant 2025 in Telangana were discussed and approved by the cabinet.

The cabinet has decided to absorb revenue officials who had held village revenue officer (VRO) and village revenue assistant (VRA) posts, to work as village-level officials (VLO) in 10,954 villages across the state.

Clearance of over 5 acres for the construction of ESI Hospital in Pedda Golconda, a government job for Paralympian Deepthi, 361 new posts for the newly-formed revenue divisions and mandals, 330 new posts in the residential educational institutions, and the reduction of Gandhamalla reservoir’s storage capacity from 4.2 tmcft to 1.41 tmcft were approved by the cabinet.

Observing that the Centre’s attempt to conduct delimitation was being done keeping the north/south concept in its mind, Ponguleti stated that the issue will be debated in an all-party meeting led by deputy chief minister Bhatti Vikramarka and senior Congress leader K Jana Reddy and fight with the centre.

Mumbai: The RBI’s move to inject Rs 1.9 lakh crore has come as a big positive for banks, which is reflected in the rise in the stock prices of both private and public sector banks, as well as Non-Banking Financial Companies (NBFCs) on Thursday.

The Nifty PSU Bank index rose 1.46 per cent, or 86.3 points to hit an intraday high of 5,976.75, while the Nifty Bank index increased 0.72 per cent, adding 349.15 points to hit an intraday high of 48,839.10. Similarly, the Nifty Private Bank index recorded a gain of up to 0.67 per cent in morning trade.

As part of the measures to infuse more liquidity in the banking system, the RBI has announced that it will conduct open market operation (OMO) purchases of government securities worth Rs 1 lakh crore in two tranches of Rs 50,000 crore each. The first auction will be held on March 12 and the second by March 18.

Besides, the central bank has also decided to hold a dollar-rupee buy/sell swap auction of $10 billion for 36 months to be held on March 24.

The measures are expected to infuse additional liquidity of Rs 1.9 lakh crore. The move comes ahead of an anticipation of tight liquidity conditions by the end of the current financial year (FY25) amid tax outflows and banks rushing to meet targets.

The RBI said it “will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions,” it said in a press release.

These measures will not only address frictional liquidity tightness in March but also the issue of durable liquidity which has tightened of late, according to Teresa John, economist at Nirmal Bang Institutional Equities.

“While liquidity will likely be neutral by end March, it may move to surplus as we enter into FY26 unless we continue to see dollar sales by the RBI,” John said.

Transmission is also likely to improve significantly, she said, adding that corporate bond spreads had tightened despite rate cuts.

Samiran Chakraborty, chief economist at Citi, estimates that durable liquidity would now move towards Rs 1.2 lakh crore surplus by end-March. Including outstanding VRRs, liquidity surplus could be about Rs 3 lakh crore, he estimated.

The Monetary Policy Committee had cut rates by 25 basis points at its meeting in February, preceding which, the central bank had announced measures to infuse liquidity.

According to economists, liquidity conditions have been tight since mid-December largely due to tax outflows, dollar sales by the RBI in the foreign exchange market to stabilise the rupee.

The RBI had earlier injected another Rs 1.7 lakh crore to enhance liquidity in the banking system in February

In a big relief for banks, RBI Governor Sanjay Malhotra had also announced the postponement of the proposed Liquidity Coverage Ratio (LCR) as well as project financing norms by a year. These will not to be implemented before March 31, 2026.

He said that the step has been taken as the earlier deadline March 2025 announced by his predecessor, did not give sufficient time for the implementation of these guidelines.

The step was taken after the RBI held close consultations with banks, who were staunchly opposed to the implementation of the new norms as they would lead to a liquidity crunch.

Malhotra has made it clear that the RBI does not want to cause disruption in the financial system and will ensure a smooth transition, he added.

Both public sector and private sector banks had opposed the implementation of these norms, announced by former RBI Governor Shaktikanta Das, as they feared that it would cause a liquidity crisis in the financial system.

The heads of banks had raised the issue with Malhotra, shortly after he took over as RBI Governor with Das’ tenure coming to an end.

These norms were earlier scheduled to come into effect on April 1, 2025.

According to treasury officials of banks, implementing the LCR norms would in effect mean over Rs 4 lakh crore would have to be diverted from banks to buy government bonds instead of extending credit to corporates and individuals to boost demand in the economy and spur growth.