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Category: Economy

  • Zerodha Bracing For Big Revenue Hit Later This Year: CEO Nithin Kamath | Economy News

    New Delhi: Zerodha’s Co-founder and CEO, Nithin Kamath, said on Tuesday that the company is witnessing a plateau in revenue and profits and is preparing for a significant revenue hit later this year.

    In a blog post, Kamath mentioned that SEBI’s true-to-label circular will go live on October 1, 2024, and added, “We expect a 10 percent dip in revenue.”

    SEBI recently published a consultation paper on index derivatives, which was open for public comments.

    “We expect this paper to turn into regulation sometime in the next quarter. Currently, index derivatives constitute a significant portion of our revenue, and any changes will impact us. We anticipate a 30 to 50 percent drop in revenue,” said the Zerodha CEO.

    The Securities Transaction Tax (STT) will also increase from October 1.

    While the impact on options trading is minimal, “we anticipate a significant impact on futures trading.”

    “The amount of Annual Maintenance Charges (AMC) we collect will change with the new Basic Services Demat Account (BSDA) thresholds set by the regulator. Essentially, we can now charge full AMC from customers with demat holdings of Rs 10 lakh or more, compared to Rs 4 lakh today. Combined with the removal of the account opening fee, this will lead to a meaningful drop in revenue,” Kamath explained.

    Zerodha’s total current assets under custody, which include all assets held in its demat accounts, amount to Rs 5.66 lakh crore.

    “The exciting part of this figure is that our customers, as a whole, are sitting on unrealised profits of over Rs 1 lakh crore,” the CEO shared.

    Regarding the company’s IPO, Kamath emphasized that an IPO is not the end but rather a new beginning.

    “When retail investors enter the cap table, the company must be able to predict revenue to some extent. In the last 14 years, I have never once accurately predicted revenue growth or dips. Our business, while appearing strong based on financials, can change in an instant due to regulatory shifts or unfavorable market conditions,” Kamath explained.

  • Supreme Court Disposes of 573 Direct Tax Cases After Revised Monetary Limit For Filing Appeals; Nearly 4,300 Tax Disputes To Be Withdrawn | Personal Finance News

    New Delhi: The Supreme Court has disposed of 573 direct tax cases where the tax effect is less than Rs 5 crore, following the revised monetary limit for filing appeals, the Ministry of Finance said in a statement on Tuesday.

    This move aligns with the government’s efforts to reduce tax litigation and promote the Ease of Doing Business.The Union Budget 2024-25 provided for an enhanced monetary limit for filing appeals related to Direct Taxes, Excise, and Service Tax in the Tax Tribunals, High Courts, and Supreme Court. 

    The limits were increased to Rs 60 lakh, Rs 2 crore, and Rs 5 crore, respectively. Following the Budget announcement, the CBDT and CBIC issued the necessary orders to raise the monetary limit for filing appeals in their respective domains.

    “As a result, it is expected that the number of cases pending before various appellate forums will decrease, reducing tax litigation,” the Finance Ministry stated.In line with the Union Budget 2024-25 announcements, the monetary thresholds for filing tax dispute appeals by the department were enhanced: for the Income Tax Appellate Tribunal (ITAT), it was raised from Rs 50 lakh to Rs 60 lakh; for High Courts, it was increased from Rs 1 crore to Rs2 crore; and for the Supreme Court, from Rs 2 crore to Rs 5 crore.

    Due to these revised limits, it is estimated that approximately 4,300 cases will be withdrawn from various judicial forums over time, the Finance Ministry said. Adding further, the ministry stated that steps have been taken to deploy more officers dedicated to hearing and deciding income tax appeals, particularly those involving substantial tax amounts.

    “These initiatives reflect the government’s commitment to improving the ‘Ease of Living’ and ‘Ease of Doing Business’ across the country by reducing pending litigation,” it added. 

  • Accenture Delays Global Promotions Following No Salary Hikes For Indian Staff In 2023 | Economy News

    New Delhi: Accenture Plc, a leading global consulting and technology firm is pushing back the timing of most staff promotions by six months. As per report by Bloomberg, in an internal blog post shared with employees, the tech firm announced that promotions, typically announced in December, will now be announced in June 2025. This adjustment will affect the company’s extensive workforce of over 750,000 employees around the world.

    “We are permanently changing our primary promotion date from December to June, which is when we have better visibility of our clients’ planning and demand,” the company said in a statement.

    Accenture Withholds Pay Raises in India and Sri Lanka in 2023

    Last October, Accenture announced it would not be giving salary increases to its employees in India and Sri Lanka for 2023 except where legally required or for essential roles. With over 300,000 employees in India, had postponed promotions for senior management till June 2024.

    Accenture’s shares in March experienced their biggest drop in four years after the company lowered its revenue growth forecast for fiscal 2024. The new prediction of up to 3 per cent growth was down from the earlier estimate of 5 per cent.

    Similar to many of its rivals, Accenture significantly increased its workforce during the pandemic to handle growing demand. However, more than a year ago the company revealed plans to reduce its staff by 19,000 positions—roughly 2.5 per cent of its total workforce—over the next 18 months.

    Other consulting firms, such as McKinsey & Co., Ernst & Young, and PricewaterhouseCoopers have also cut staff in response to the economic slowdown. Despite this a recent increase in demand for automation and AI projects has provided a welcome boost.

  • E-Vehicle Parade In Delhi This October – Are You Ready To Go Electric? | Auto News

    Delhi E-Vehicle Parade: The Delhi environment department will host an ‘e-vehicle parade’ at Rajghat in early October, aimed at promoting the adoption of electric vehicles (EVs) in the capital. According to the officials, the event is expected to see participation from over 500 EV owners, with a registration link for interested owners to be announced shortly.

    A senior official from the environment department said that a tender for the event, estimated to cost around Rs 5.76 lakh, has been floated, with bids open until September 30. The parade will take place within five days of awarding the tender.

    “The primary objective is to promote EV usage in Delhi and raise awareness about their benefits. We encourage as many EV owners as possible to join the parade,” an official said. “Transitioning to electric vehicles will contribute to reducing vehicular pollution in the capital,” the official stated.

    Environment Minister Gopal Rai, who has resumed his role after the recent cabinet reshuffle, emphasised the government’s commitment to tackling air pollution in the coming months.

    “The biggest challenge during winter is to reduce pollution levels. We have already held meetings with 33 departments to strategise on this issue,” Rai said.

    “Today (23 Sept, 2024), I will meet the chief secretary to discuss further suggestions. The Winter Action Plan is ready and will be launched on September 25 instead of the 27th due to the Assembly session,” Rai said.

    Rai also expressed confidence that, with collaborative efforts, pollution levels in Delhi could be reduced significantly throughout the year, aiming for similar results during the winter months.

    Delhi Electric Vehicle Polic

    In August 2020, the Delhi government introduced its EV Policy, which offers subsidies to EV buyers and aims to ensure that by 2024, one in every four newly registered vehicles in the city will be electric.

  • Kharif Crop Sowing Is Up By 1.5 Per Cent At 1104.63 Lakh Hectares | Economy News

    New Delhi: India’s Kharif crop sowing has progressed significantly, with farmers planting crops across 1,104.63 lakh hectares so far, compared to 1,088.26 lakh hectares last year, marking a 1.5 per cent year-on-year increase.

    This surpasses the average area under cultivation (or normal area) for the period from 2018-19 to 2022-23.Commodity-wise, the sowing of paddy, pulses, oilseeds, millets, and sugarcane has increased year-on-year, while sowing for cotton and jute/mesta has been lower.

    Data showed that within the pulse basket, aside from urad bean, crops such as arhar, moong, kulthi, and moth bean have seen positive growth.India is a major consumer and producer of pulses, supplementing its domestic consumption with imports. The primary pulses consumed in India include chana, masur, urad, kabuli chana, and tur. 

    The government has been strongly promoting the cultivation of pulses.In the 2023 Kharif season, the total area under cultivation across the country was 1,107.15 lakh hectares. The normal Kharif area between 2018-19 and 2022-23 is 1,096 lakh hectares.India has three cropping seasons: Summer, Kharif, and Rabi. 

    Kharif crops, sown during June-July and dependent on monsoon rains, are harvested in October-November. Rabi crops, sown in October-November, are harvested from January, depending on their maturity. Summer crops are produced between the Rabi and Kharif seasons.Traditionally, Indian agriculture, especially the Kharif season, is heavily reliant on monsoon rainfall.

    The Indian Meteorological Department (IMD), in its first long-range forecast, predicted that the southwest monsoon (June-September) this year would be above normal. Skymet, a private forecaster, also predicted a normal monsoon. 

    IMD recently stated that the rainfall across the country during September 2024 is expected to be above normal, at 109 per cent of the Long Period Average.Above-normal monsoon rains, which have helped farmers sow more crops this Kharif season, bode well for agriculture and are likely to improve the sector’s gross value added (GVA), according to rating agency ICRA. 

  • EPFO Reports Highest Monthly Payroll Additions In July 2024 | Personal Finance News

    New Delhi: The Employees’ Provident Fund Organisation (EPFO) has reported its highest-ever monthly payroll addition in July 2024, with a 19.94 lakh members joining the ranks.

    This highlights a shift in India’s employment landscape, reflecting the effectiveness of the Modi Government’s transformative schemes aimed at driving job creation and formalising the job market.

    The EPFO data indicates that of the new additions, 10.52 lakh are first-time employees, marking a 2.66 per cent increase over June 2024 and a 2.43 per cent rise compared to July 2023. This uptick in employment showcases an expanding job market and increased opportunities, particularly for youth and women.

    India’s massive push toward economic growth and job creation has been bolstered by key government initiatives like the Production Linked Incentive (PLI) Scheme, the Startup India movement, the Employment Linked Incentive Scheme, and significant capital expenditure (Capex) drives.

    Year-wise net payroll additions further underscore the progress being made: in 2022-23, there were 138.52 lakh net additions, while in 2023-24, this number was 131.48 lakh.

    Youth employment is leading the surge in formal job creation, with 8.77 lakh young individuals contributing to the net payroll in July 2024 alone.Among these, 6.25 lakh were first-time employees, accounting for 59.41 per cent of total new joiners in the month. This growth can be attributed to initiatives like the National Career Service (NCS), which currently hosts over 20 lakh active vacancies and has registered 33.72 lakh companies, indicating robust hiring across various sectors.

    A key highlight of July 2024 is the rise in female workforce participation. The data shows that 4.41 lakh women joined the formal sector in July, with 3.05 lakh being new joinees.The net female workforce grew by 14.41 per cent, while the number of new female members increased by 10.94 per cent. This substantial rise in female employment reflects the government’s focus on improving access to education, skill development programs, and support services like working women hostels.

    Industry-wise, the top sectors driving the highest net payroll additions in July 2024 include manufacturing, marketing services, the usage of computers, and building and construction.These industries collectively accounted for over 2 lakh new members, while other sectors such as expert services, electronic media companies, and banks also contributed to the rising employment numbers.  

  • Netflix India Faces Scrutiny For Alleged Visa Violations, Racial Discrimination, And Tax Evasion | Economy News

    New Delhi: Netflix India is facing an investigation over alleged visa violations, racial discrimination, tax evasion and questionable business practices, according to a government email reviewed by Reuters. This marks the latest challenge for the streaming giant in India.

    Details of the Investigation

    The investigation was revealed through a July 20 email from Deepak Yadav, an official with the Foreigners Regional Registration Office (FRRO) of India’s Home Ministry, addressed to Nandini Mehta, Netflix’s former director of business and legal affairs for India. In the email, Yadav stated:

    “This is regarding visa and tax violations concerns regarding the business practices of Netflix in India. We have received certain details in this regard w.r.t (with respect to) the stated company’s conduct, visa violation, illegal structures, tax evasion and other malpractices including incidents of racial discrimination that company has been engaged in while conducting its business in India.”

    Netflix’s Response

    A Netflix spokesperson informed Reuters that the company was “unaware of any investigation being conducted by the Indian government.”

    Nandini Mehta’s Lawsuit

    Nandini Mehta, departed from Netflix in 2020 and she is currently suing the company in the US for alleged wrongful termination and racial and gender discrimination—claims that Netflix denies. Mehta has voiced her support for the Indian government’s investigation and hopes that the findings will be made public. She declined to share additional details regarding the specific allegations.

    Growing Scrutiny in India

    Netflix has been under growing scrutiny in India. They found around 10 million subscribers. While the company has made significant investments in producing local content, including projects with Bollywood stars, it has also faced criticism over content considered offensive by some viewers and officials. Alongside the ongoing investigation, Netflix has been contesting a tax demand from the Indian government since 2023.

    Scope of the Investigation

    The email from the FRRO did not detail which agencies are participating in the investigation. The FRRO, which collaborates closely with India’s Intelligence Bureau, mainly oversees visa compliance for foreigners and permissions for visiting restricted areas. However, it also works alongside other government agencies on issues concerning foreigners.

    Nandini Mehta’s Involvement

    Mehta was employed at Netflix’s offices in Los Angeles and Mumbai from 2018 to 2020. The Indian government’s email asked her to provide “details/documents” pertinent to the investigation, given her previous position as a legal executive at the company.

  • FSSAI Signs MoU With Brazil’s Ministry Of Agriculture And Livestock To Enhance Food Safety Cooperation | Economy News

    New Delhi: The Food Safety and Standards Authority of India (FSSAI) has signed a Memorandum of Understanding (MoU) with Brazil’s Ministry of Agriculture and Livestock (MAPA). The agreement was finalised on Saturday, during the Global Food Regulators Summit held at Bharat Mandapam in New Delhi.

    According to the Ministry of Health and Family Welfare, it was signed by Brazil’s Agriculture and Livestock Minister, Carlos Henrique Baqueta Favaro, and countersigned by G Kamala Vardhana Rao, CEO of FSSAI. The MoU marks the beginning of a new phase of cooperation aimed at enhancing food safety through collaborative projects and technical exchanges.

    G Kamala Vardhana Rao emphasised the importance of this agreement, stating, “Signing this MoU demonstrates our dedication to food safety and signifies a major advancement in our ongoing efforts to enhance international collaboration in food safety.  We are eager to work with MAPA to achieve our common goals and enhance food safety in both countries.”

    The MoU outlines a framework for joint initiatives that will facilitate the exchange of technical knowledge and expertise between the two nations. In his remarks, the representative from Brazil’s Ministry of Agriculture and Livestock highlighted the significance of the MoU as a milestone in the bilateral relationship between India and Brazil.

    He noted, “The signing of the MoU marks a milestone in the bilateral relations between the two countries in the field of food safety, allowing for technical cooperation and exchange of experience and knowledge with the aim of strengthening the institutional collaboration and pursuing joint initiatives.” Both FSSAI and MAPA are committed to fostering a productive partnership that is mutually beneficial. 

  • ‘No Work, No Pay’: Samsung Warns Chennai Factory Workers of Wage Cuts Amid Protests | Economy News

    New Delhi: Samsung Electronics has warned protesting workers at its Chennai factory that they could face wage cuts or even termination if they continue to strike without returning to work, according to a report by Reuters.

    The strike which started on September 9, 024 saw hundreds of workers at Samsung’s home appliances factory near Chennai demanding better wages and recognition of their union. This factory plays a crucial role in Samsung’s operations, accounting for nearly one-third of the company’s 12 billion dollars annual revenue in India.

    The workers have established a temporary tent near the factory to continue their protests. Their primary demands include a wage increase and official recognition of their union which is being supported by the Centre of Indian Trade Unions (CITU).

    The union is advocating for a pay raise that would increase average monthly wages from Rs 25,000 to Rs 36,000 over the next three years. In response to the strike, Samsung has taken legal action, approaching a district court last week to seek a temporary injunction preventing the union from protesting near the factory.

    The court did not impose a direct order to stop the protests but urged a quick resolution of the dispute. In an email sent to some striking workers on Friday, Samsung’s HR team referred to the protest as an “illegal strike.” The email stated that employees taking part in the strike would not receive wages from 9th September 2024 until they return to work, reinforcing the message of ‘No work, no pay.’

    The email also cautioned workers that if they did not return to work within four days, they would have to explain why they should not be dismissed. Samsung emphasized that it is open to discussions and encouraged workers to come back to the negotiating table to resolve the issues.

    Three workers confirmed to Reuters that they received the warning email from Samsung’s HR team. Despite the warnings, they are continuing their protest, and there’s no indication that the strike will end soon. 

    Samsung has not provided further comments on the situation. Last week, the company mentioned that it had started discussions with the workers at the plant and hoped to resolve the issues quickly. However, the ongoing negotiations among the company, workers, and state officials have yet to produce any solid solutions.

    The workers’ demands are backed by the labor group CITU which has played a key role in organizing the factory workers and advocating for higher wages. CITU is also pushing for Samsung to officially recognize the union, a move that the company has so far resisted.