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The Indian Finance Ministry remains hesitant to reinstate the interest equalisation scheme (IES) or offer export incentives like duty credit scrips, despite pressure from exporters facing significant US tariffs of 50%. Sources indicate that the Ministry is questioning the effectiveness of these schemes and is exploring alternative support measures. Discussions are ongoing with exporters and the Commerce Department, but no consensus has been reached on increasing the budget allocation for the export promotion mission, which stands at ₹2,250 crore for FY26. Exporters, particularly from the MSME sector, argue that the IES would reduce their credit costs, which are higher than those of competitors like Vietnam and Bangladesh. However, the Ministry is skeptical about the direct impact of the IES and duty credit scrips on export growth, citing concerns over WTO compliance and the difficulty in linking incentives to actual duties paid. Meanwhile, the RBI is considering other liquidity solutions for exporters. 
Published: Sep 14 2025, 7 pmeznews.inThe Vande Bharat Express trains, a hallmark of India's Atmanirbhar Bharat initiative, have captured public fascination since their launch, with 91 sets delivered across various railway zones in just two years. Produced by the Integral Coach Factory (ICF) in Chennai, these semi high-speed trains represent a significant advancement in Indian rail travel, offering enhanced comfort and amenities compared to previous models. General Manager U Subba Rao emphasized that Vande Bharat is not merely a replication of European or Chinese trains but a step towards modernizing India's rail system, capable of speeds up to 160 kph. The service has notably reduced travel times on key routes, such as Chennai to Bengaluru, outperforming air travel. Looking ahead, ICF plans to produce sleeper versions of Vande Bharat and mixed Amrit Bharat trains, while also targeting the production of over 4,300 coaches in the current fiscal year.
Published: Sep 14 2025, 9 pmeznews.inThe Union Finance Ministry has agreed to consider the Indian Micro-Fertilizers Manufacturers Association's (IMMA) request for uniform treatment of all micro-nutrients under the Goods and Services Tax (GST), following a meeting with Central Board of Indirect Taxes and Customs (CBIC) officials in New Delhi on September 12. The IMMA is advocating for all fertilizers, including micronutrients and non-subsidised grades, to remain in the 5% GST slab, citing concerns over the inverted duty structure. While officials acknowledged these concerns, they indicated that the current structure would persist as long as multiple GST rates exist. They also confirmed that refunds for accumulated tax credits would be expedited alongside the upcoming GST 2.0 notification, set for implementation on September 22. The IMMA pledged to ensure that any tax savings would be passed on to farmers through price reductions.
Published: Sep 14 2025, 8 pmeznews.inIndia is considering imposing an export duty on iron ore as early as October 2, 2025, amid government concerns over stagnant domestic production and high prices. A high-level review meeting revealed that if production does not increase and prices are not halved, a blanket export ban could follow. Currently, an export duty of 10-20% is being contemplated for low-grade iron ore, alarming industry stakeholders. Despite having an environmental clearance capacity of over 200 million tonnes per year, actual output remains at just half that level, raising alarms as India seeks to boost steel production. The government has directed iron ore miners to expedite production, particularly in Odisha, and is also working to reset pricing frameworks. Industry groups have opposed the export duty, citing environmental concerns and the need for effective utilization of low-grade ore, while urging the government to maintain the current nil-duty regime for certain regions.
Published: Sep 14 2025, 6 pmeznews.inTruck driver Joginder Singh is currently enjoying an extended break on the outskirts of Chennai as many automobile manufacturers halt deliveries ahead of the new Goods and Services Tax (GST) rates, effective September 22. With approximately 90% of trucks idle, freight rates have plummeted by 30-35% due to diminished demand, primarily from e-commerce. Industry experts predict a significant surge in demand post-GST implementation, with freight rates expected to rise by 30-40% as logistics ramp up for the festive season, including Navaratri and Diwali. Operators like Sachin JKS HaritasH and P Sundarraj highlight the current lull in sectors such as automobiles and white goods, but anticipate a rush to deliver vehicles once the new rates take effect. Blue Dart's Vikram Mansukhani notes that this slowdown is a temporary consequence of the GST reforms, with a rebound in shipment volumes and logistics needs expected soon.
Published: Sep 14 2025, 6 pmeznews.inAutomobile dealers and industry stakeholders are set to meet Finance Minister Nirmala Sitharaman to address concerns over compensation for cess, which will lapse on September 22 with the implementation of the new Goods and Services Tax (GST). Dealers warn that without relief, they could incur losses exceeding ₹2,500 crore. Despite these concerns, government sources indicate that no relief is forthcoming. C S Vigneshwar, President of the Federation of Automobile Dealers Association (FADA), expressed hope for a resolution, highlighting the potential for the cess loss to eliminate annual profits. FADA has urged the government to allow cess balances to be transferred to GST credit ledgers or refunded to mitigate losses. Meanwhile, dealers are collaborating with Original Equipment Manufacturers (OEMs) to offer discounts on high-value vehicles to clear inventory ahead of the new GST rates, which have reduced taxes on certain cars.
Published: Sep 14 2025, 6 pmeznews.inThe Indian government has issued a new GST circular clarifying that post-sale discounts are not taxable as services, a significant development for companies, particularly in the fast-moving consumer goods sector. This clarification resolves a long-standing dispute with tax authorities regarding the tax treatment of secondary discounts offered by manufacturers to distributors and retailers. The Central Board of Indirect Taxes and Customs (CBIC) stated that such discounts are price adjustments rather than payments for separate services, thus exempt from GST unless linked to specific promotional activities. Additionally, businesses receiving discounts via credit notes will not need to reverse their Input Tax Credit (ITC), as the original transaction value remains unchanged. Experts view this circular as a timely resolution that will encourage brand owners to offer competitive post-sale discounts, potentially boosting demand during the festive season.
Published: Sep 14 2025, 5 pmeznews.inThe transition to a consolidated 40% Goods and Services Tax (GST) on aerated beverages, effective September 22, poses significant challenges for FMCG distributors and traders. Currently, these beverages are taxed at a 28% rate plus a 12% compensation cess, but the new flat rate eliminates the cess, leaving traders unable to utilize accumulated input tax credits (ITC) on unsold stock. Manoj Mishra from Grant Thornton Bharat highlighted that this structural shift could lead to stranded ITC, particularly impacting smaller traders with tighter margins, potentially resulting in increased consumer prices. The beverage industry, already reeling from a poor summer season due to early rains, is concerned about the financial strain this change may impose. Industry representatives, including Dhairyashil Patil of the All India Consumer Products Distributors Federation, plan to approach the Finance Ministry to address the issue of blocked working capital, which could exacerbate pressures on the retail ecosystem.
Published: Sep 14 2025, 5 pmeznews.inThe Ministry of New & Renewable Energy (MNRE) has announced plans to include solar wafers in the Approved List of Models and Manufacturers (ALMM) by June 1, 2028, contingent on India achieving a cumulative capacity of 15 gigawatts (GW). Currently, the country lacks a robust domestic manufacturing ecosystem for polysilicon, ingots, and wafers. The MNRE has released a draft for ALMM List-III, inviting stakeholder feedback until October 11, 2025. Key conditions for the list's implementation include the requirement for at least three independent wafer manufacturing units, collectively producing a minimum of 15 GW annually, and that manufacturers must have ingot production capacity equivalent to their wafer output. Minister Pralhad Joshi emphasized the government's commitment to developing a complete solar manufacturing ecosystem in India, aiming for self-sufficiency in solar cells, wafers, and ingots by 2028.
Published: Sep 14 2025, 3 pmeznews.inIndian airlines are intensifying their presence in Southeast Asia to capture a larger share of outbound travelers and transit traffic. IndiGo plans to launch new flights to Bali from Mumbai and Delhi, complementing its existing service from Bengaluru, while Vistara, now part of Air India, was the first to connect Delhi to Bali in December 2023. The surge in direct flights has significantly boosted tourist arrivals, with India ranking among the top three source markets for Bali. Online travel portal Yatra.com reports a 30-35% increase in inquiries for Southeast Asia, driven by improved airline connectivity. Akasa Air is set to commence flights to Phuket and is exploring further destinations, while Air India will introduce a direct service to Manila next month. Overall, data indicates a 12% rise in scheduled flights between India and Southeast Asia, reflecting a shift in demand from the Indian diaspora to a broader base of outbound travelers.
Published: Sep 14 2025, 3 pm
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