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Telangana's Finance Minister and Deputy Chief Minister Mallu Bhatti Vikramarka has criticized the current Central allocation formula, arguing that Southern States, including Telangana, deserve a larger share of tax devolution. In a recent budget presentation for 2025-26, he proposed that the allocation model should assign 50 per cent weightage to Gross State Domestic Product (GSDP) growth, moving away from the existing "Per Capita Income Distance" criterion. Vikramarka highlighted concerns over the declining share of tax devolution, noting that Telangana's allocation dropped from 2.437 per cent under the 14th Finance Commission to 2.102 per cent under the 15th. He called for a fairer distribution system that rewards states contributing to national economic growth and urged the Centre to increase the tax devolution component from 41 per cent to 50 per cent, while also seeking enhanced financial support for infrastructure and social welfare initiatives. 
Published: Mar 19 2025, 2 pmeznews.inThe Delhi High Court has issued a stay on the Goods and Services Tax (GST) demand against the Competition Commission of India (CCI), following a writ petition challenging a tax assessment by the CGST Commissioner. The dispute originated from a January 2025 order that deemed the CCI liable for GST on fees received from parties involved in disputes. The CCI contended that this assessment overlooked a prior ruling in a similar case involving the Central Electricity Regulatory Commission (CERC), which established that statutory regulatory functions do not qualify as "business" under the CGST Act, 2017, and are exempt under Schedule III. The CCI's legal team, led by Senior Advocate Sujit Ghosh, argued that its fees are statutorily mandated and not service-based. The outcome of this case could clarify the GST applicability to regulatory bodies engaged in statutory functions, with the GST Department's appeal on a related service tax ruling still pending.
Published: Mar 19 2025, 8 pmeznews.inA parliamentary committee in India has recommended writing off a significant portion of direct tax arrears, which currently total over ₹43 lakh crore, with approximately ₹29 lakh crore classified as "difficult to collect." The report, presented on March 19, highlights that more than two-thirds of these arrears stem from legacy issues dating back to the mid-1990s, when tax records were maintained manually and lacked proper identification systems. The Central Board of Direct Taxes (CBDT) Chairman noted that many of these demands are fictitious, as interest continues to accrue on uncollectible amounts. The committee emphasized the urgent need to reform the tax assessment system to enhance efficiency and alleviate the burden on honest taxpayers facing inflated demands. It called for decisive actions, including moratoriums, to address the backlog of tax arrears in a timely manner, following the complete digitization of tax records.
Published: Mar 19 2025, 8 pmeznews.inThe Reserve Bank of India's latest monthly bulletin highlights the resilience of the Indian economy amid global uncertainties, including escalating trade tensions and volatility in financial markets. Despite sustained foreign portfolio outflows that pressured domestic equity markets in February, the economy is buoyed by strong agricultural performance and improving consumption trends. The authors assert that India's macroeconomic fundamentals remain robust, supported by domestic demand, steady investment, and government spending on infrastructure. A notable decline in headline CPI inflation to 3.6% in February, driven by falling food prices, is expected to further enhance consumption recovery and strengthen the economy. While structural strengths such as sound fiscal policies and digital initiatives provide a solid foundation for sustainable growth, potential risks from commodity price volatility and weather anomalies could impact the inflation outlook. Overall, the bulletin underscores a cautiously optimistic economic trajectory for India.
Published: Mar 19 2025, 8 pmeznews.inThe Competition Commission of India (CCI) has launched an investigation into Bharat Forge Ltd's proposed acquisition of AAM India Manufacturing Corporation Private Ltd (AAMCPL), inviting public feedback on potential competition concerns in the commercial vehicle axle market. Bharat Forge, a leading metal forging company, aims to acquire 100% equity in AAMCPL to enhance its manufacturing capabilities and customer base in India. The deal follows a restructuring of AAM's Indian operations, marking its exit from the CV axle market. However, the acquisition raises concerns as Bharat Forge's existing joint ventures could lead to a combined market share of 10-15% in overall CV axles and up to 55% in the medium and heavy commercial vehicle segment. The CCI is assessing the impact on competition, particularly regarding the supply of forged axle sub-components. Stakeholders have ten days to submit their views, with the final approval contingent on the CCI's findings.
Published: Mar 19 2025, 8 pmeznews.inThe Indian Finance Ministry is reassessing the future of its sovereign green bonds (SGrBs), launched in fiscal year 2022-23 to fund green infrastructure, after acknowledging their "below expectation" performance. Economic Affairs Secretary Ajay Seth, addressing the Standing Committee, suggested that a decision on whether to continue the bonds will be made in two to three years, citing disappointing investor interest. While globally, green bonds typically attract a premium of eight to nine basis points, India's experience has yielded only two to three basis points. Despite raising over ₹57,000 crore through SGrBs between FY 2022-23 and FY 2024-25, the allocation of funds has primarily focused on clean transportation (78%) and renewable energy (21%), with a mere 1% directed towards sustainable land management. The government remains committed to evaluating the effectiveness of this financing mechanism in promoting environmental projects.
Published: Mar 19 2025, 8 pmeznews.inIn a pioneering move for clean mobility, EKA Mobility has partnered with KPIT Technologies and BPCL to introduce a hydrogen fuel cell bus at Cochin International Airport in Kerala. This initiative, the first of its kind in the state, aims to enhance India's clean mobility ecosystem and promote the adoption of hydrogen-powered commercial vehicles. The 30+ passenger bus, part of a three-year Proof of Concept project, was showcased at the recent Global Hydrogen & Renewable Energy Summit in Kochi. EKA Mobility has integrated KPIT's hydrogen fuel cell technology into its 9-metre bus, while BPCL has established the necessary hydrogen generation and refuelling infrastructure. This comprehensive approach not only facilitates vehicle deployment but also positions Kerala as a leader in green hydrogen adoption, potentially accelerating investments in hydrogen infrastructure and contributing to India's net-zero goals.
Published: Mar 19 2025, 7 pmeznews.inThe Union Cabinet of India has approved a series of significant initiatives aimed at bolstering the economy, including a ₹1,500 crore incentive scheme to promote UPI transactions under ₹2,000 for the fiscal year 2024-25. This scheme, which will cover small merchants, aims to encourage low-value digital payments by offsetting the Merchant Discount Rate (MDR) for such transactions. Additionally, a new urea plant in Assam, with an estimated cost of over ₹10,000 crore, is set to enhance domestic production of this essential crop nutrient, reducing reliance on imports. The Cabinet also increased funding to ₹6,190 crore for two dairy development schemes, aiming to modernize infrastructure and boost milk production. Furthermore, a ₹4,500 crore project to construct a high-speed National Highway connecting JNPA Port in Maharashtra was approved, enhancing road connectivity in the region.
Published: Mar 19 2025, 7 pmeznews.inThe PHDCCI has called on Finance Minister Nirmala Sitharaman to establish a permanent zero-rated import duty on gold ore concentrate, aligning it with the current zero duty on copper ore concentrate. Ranjeet Mehta, CEO & Secretary General of PHDCCI, highlighted that the existing 2.5% import duty on gold ore concentrate places the domestic gold refining industry at a competitive disadvantage, as copper ore concentrate, which produces gold as a by-product, enjoys no such duty. The chamber also expressed concerns over the recent reduction in import duty on finished gold from 15% to 6%, which could further undermine domestic refining efforts. Additionally, PHDCCI criticized the temporary nature of the current exemption on gold ore concentrate, set to expire on March 31, 2026, urging for its removal to ensure long-term stability and growth for the industry.
Published: Mar 19 2025, 7 pmeznews.inThe Standing Committee on Finance, led by BJP MP Bhartruhari Mahtab, has urged the Finance Ministry to implement robust safeguards in light of the proposed increase in foreign direct investment (FDI) in India's insurance sector from 74% to 100% under the Insurance Laws (Amendment) Bill, 2025. While recognizing the potential benefits, such as enhanced competition and technology transfer, the Committee raised concerns over profit repatriation, job security, and the risk of neglecting rural and financially weaker populations. It warned that full foreign ownership could prioritize short-term gains over long-term growth, potentially leading to job losses and a focus on high-margin policies. However, the Committee also acknowledged the transformative potential of InsurTech in improving efficiency and accessibility, particularly in underserved markets. It emphasized the need for a balanced approach to ensure that the expansion of insurance services aligns with India's financial inclusion goals.
Published: Mar 19 2025, 6 pmeznews.inIndia's solar module exports surged to $1.97 billion in FY24, marking a 91% increase from FY23 and a staggering 23-fold rise from FY22, largely driven by the US-China tariff war. The US now accounts for over 90% of India's solar cell and module exports, presenting significant growth potential. However, the risk management firm Rubix Data Sciences warns that potential US reciprocal tariffs and intensified Chinese price competition could disrupt this burgeoning market. India relies on China for over 50% of its PV components, which could pressure domestic manufacturers if China lowers prices to offset US losses. Major Indian players like Waaree Energies and Vikram Solar are exploring US manufacturing to leverage incentives from the Inflation Reduction Act. To navigate these challenges, Indian manufacturers must diversify markets, enhance production quality, and address defect rates, which currently exceed 8% in several regions, including India.
Published: Mar 19 2025, 6 pm
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