Around the market.

India will jump into quantum technology

India is gearing up for a leap into quantum technology, which will define the future of science with practical solutions to pressing world problems, government sources said. When the country celebrates 100 years of independence in 2047, technology and innovation will be the torchbearers of the country's economy. Decisions like unlocking the space sector in June 2020, liberalization of drone technology, approval of geospatial guide lines and the recent green hydrogen mission worth Rs 20,000 crore have opened new directions for India's rapid growth march during technology. Since the space sector was opened up to private participation in June 2020, India has seen around 120 deep-space startups that not only send rockets into space but are also involved in areas such as satellite manufacturing and management.

Capacity will be upgraded for FTA

Foreign Trade Agreements (FTAs) have been expanding and becoming more complex in recent times. The Commerce Department of the government is looking to enhance its capacity to meet the challenges posed by the situation. The idea is to speed up the process of resolving differences with potential partner countries and conclude more deals. Apart from the deals under negotiation with the UK, European Union, Australia and Canada, South American and African countries are also of late for agreements to facilitate two-way trade in goods and services. Given that the multilateral trade liberalization process has slowed down, India is eyeing FTAs ​​as an efficient way to boost foreign trade and has a favorable attitude towards many of these proposals. Negotiations on FTAs ​​consume time, energy and human resources, so trying to increase its bandwidth.

Proposal to reconsider 28% tax on online gaming

The Ministry of Electronics and Information Technology may refer the Goods and Services Tax GST Council to reconsider its decision to levy 28 percent tax on online gaming platforms. Electronics and IT. Minister of State Rajiv Chandrasekhar said on Monday. The process of creating a regulatory framework for online gaming began in January 2023. We will go back to the GST Council and perhaps present them to consider the facts of the new regulatory framework. In April, the ministry had notified rules for online gaming arbitration, which would allow for the creation of self-regulatory bodies that would decide what constitutes an acceptable online game. Self-regulatory bodies are yet to be formed. The GST Council's decision to levy a flat 28 percent tax on face value for online gaming, casino and horse racing has sparked outrage in the online gaming industry. Start-ups have said that this decision can increase the net tax for companies by 1000 percent. They have also said that this decision will force users to join illegal betting platforms.

New trouble for IT companies

Demand uncertainties remain for IT companies. As clients are canceling or slowing down small deals amid adverse macro conditions, particularly in the banking, retail, hi-tech and telecom verticals. However, companies continue to register healthy growth in large-sized deals. For instance, during the April-June quarter, Wipro recorded muted bookings of $3.7 billion. Which is down 10% quarter on quarter. Large deals accounted for $1.2 billion (up 9% each sequentially and year-on-year) of total bookings, reflecting a slowdown in smaller deals. HCL Tech booked 18 deals in the April-June quarter, five more than the previous quarter, but the company's TCV fell to $1.5 billion from $2.07 billion in the previous quarter.

Bank credit growth fell to 16.8 percent

In 2022, bank credit growth has decreased to 16.8% and deposit growth has been 10.3%. Credit growth was driven by bank branches in metropolitan centers Bank credit growth in October-December 2022 declined to 16.8 percent from a year earlier. According to data released by the Reserve Bank of India, the credit growth of scheduled commercial banks increased to 16.8 percent in December from 8.4 percent a year ago, according to quarterly data on bank deposits and credit. During the calendar year 2022, the credit portfolio of public sector banks increased by 15.7 percent as compared to 4.7 percent in 2021. While the credit of private sector banks has increased by 19.1 percent against 13.1 percent a year ago.

Chhattisgarh government increased mandi tax

Paddy prices have come down after the Chhattisgarh state government stopped giving tax concessions on sale of paddy in the market. This exemption expired on July 12 and since the government did not extend it further, farmers now have to pay indirect mandi tax on selling their paddy in Krishi Upaj Mandi. Rs. Mandi tax of 5.20 was becoming a headache for farmers. Earlier traders had to pay Rs 2 mandi tax which in December last year the government changed the rules and increased the tax to Rs. 5.20 Due to the opposition of traders, the government exempted them from this high tax.

Three times investment in India in 3 years

Singapore-based Temasek Holding plans to triple its normal investment in India every year if it gets the right opportunity. TeamSec's portfolio has performed well in the world's fastest growing economy, the investment group said. We are investing 1 billion dollars every year. It will reach 9 billion dollars in the next three years. As valuations fall in digital companies, there is potential to invest in promising business models of companies. Intrinsic value testing shows that many of them are viable The potential runway is still long Whether it is e-commerce or fintech, digitization benefits them all. Investment in India is consistent with the global theme of investment in its four trends.

Staff expenses will increase by 12%

In financial year 2024, businesses will offer small increases in fixed salaries across most industries and levels. For example, CEO fixed pay is projected to grow by an average of 9.8% year-over-year in fiscal 2023. Overall people spending will increase by a modest 12% in FY2024, and Indian companies are likely to spend more than their multinational corporation counterparts. According to a study, this financial year could be a year of consolidation, with fixed costs increasing more slowly and being replaced by variable, performance-based pay-outs. A huge increase in people's spending in the last two years has been driven by sharp salary hikes and increased recruitment. In FY 2023, overall public expenditure increased by 15%. These figures are consistent with growing signs of a general slowdown in recruitment.