1)The Reserve Bank of India said that India’s foreign exchange reserves witnessed a decline of USD 2.922 billion to reach USD 652.895 billion as of June 14. The previous week saw a significant increase, with reserves soaring from USD 4.307 billion to a record high of USD 655.817 billion.
2)According to the HSBC survey, the final Manufacturing, Services and Composite Purchasing Managers’ Index (PMI) figure rose by 0.4 percentage point to 60.9 in June, compared to a downward revised figure of 60.5 in May.
3)India’s net direct tax collections for 2024-25 (FY25) grew 9.81 per cent to Rs 4.62 trillion till June 16 of the first quarter over the same period in FY24, officials aware of the figures said. Collections, which contributed Rs 1.48 trillion during the period, they said.
4)The provisional figures for the Gross collection of Direct Taxes (before adjusting for refunds) for the Financial Year 2024-25 stand at Rs. 5,15,986 crores compared to Rs. 4,22,295 crores in the corresponding period of the preceding financial year, showing a growth of 22.19% over the collections of FY 2023-24.
5)The provisional figures of Direct Tax collections for the Financial Year 2024-25 (as of 17.06. 2024) show that Net collections are at Rs. 4,62,664 crores, compared to Rs. 3,82,414 crores in the corresponding period of the preceding Financial Year (i.e. FY 2023- 24), representing an increase of 20.99%.
6)Provisional figures of total Advance Tax collections for Financial Year 2024-25 (as on 17.06.2024) stand at Rs. 1,48,823 crores, against Advance Tax collections of Rs. 1,16,875 crores for the corresponding period of the immediately preceding Financial Year (i.e. FY 2023-24), showing a growth of 27.34%.
7)Refunds amounting to Rs. 53,322 crores have also been issued in the FY 2024-25 till 17.06.2024, which are 33.70% higher than refunds issued during the same period in the preceding year.
8)The Reserve Bank of India (RBI) in its June bulletin highlighted that the exceptionally hot summer and low reservoir levels could cause stress on summer crops of vegetables and fruits, adding pressure to food prices and complicating efforts to bring inflation down to the target of 4%. The bank also said it sold $3.65 billion on a net basis in the spot foreign exchange market in April.
9)Fitch Ratings has raised India’s growth forecast for FY25 to 7.2% from 7% earlier, on the back of elevated consumer confidence that is expected to drive spending and increased investments but cautioned that the ongoing heatwave was a risk to both growth and inflation.
10)Overseas Indians parked $ 1 billion in various NRI deposit schemes in April reflecting a strong faith in India’s growth story because these deposits witnessed outflows of $150 million in the same period a year ago. Outstanding non-resident Indian (NRI)deposits touched $ 153 billion as of end April on account of the $1.08 billion, the latest data released by the Reserve Bank indicated.
11)Formal job creation under the Employees’ Provident Fund Organisation went up by 10% in April 2024 to 1.89 million as against 1.72 million formal jobs created in April 2023, the highest addition in 72 months since first the payroll data was published in April 2018, shows the provisional data released.
12)Funds held by Indian individuals and firms in Swiss banks, including through local branches and other financial institutions, experienced a sharp decline of 70% in 2023, reaching a four-year low of 1.04 billion Swiss Francs (approximately Rs 9,771 crore), according to annual data from Switzerland’s central bank.
13)The Reserve Bank of India’s (RBI) Monetary Policy Committee members raised concerns about inflation pressures due to “exceptionally” warm summers, impacting perishable goods and crop output, as per their latest meeting minutes released on 21st June 2024. here’s a concise summary of the key points from the RBI’s MPC meeting:
I nflation Concerns: RBI Governor Shaktikanta Das highlighted that stubbornly high food prices are slowing down the decline in overall retail inflation, which reached 4.75% in May, a one-year low.
Policy Decision: The MPC voted 4:2 in favor of maintaining the repo rate at 6.5%. Governor Das and three others preferred status quo due to persistent inflation concerns, while two external members advocated for a 25 basis points rate cut to stimulate economic growth.
Economic Growth: External members Ashima Goyal and Jayanth R Varma argued for a rate cut to bolster economic growth, citing current growth below potential and potential future growth sacrifices if policy remains restrictive.
Monetary Policy Stance: Despite moderating inflation, the MPC leaned towards maintaining price stability over immediate growth stimulus, emphasizing cautious movement to balance growth and inflation objectives.
Future Outlook: Members discussed the impact of normal monsoon expectations on food prices, expecting some relief in key food items which could ease inflation pressures gradually.
Overall, while inflation is moderating, the MPC opted to prioritize inflation control amidst concerns of persistent food price inflation and potential growth risks if monetary policy remains overly restrictive.
14)The Goods and Services Tax (GST) Council, led by Union Finance Minister Nirmala Sitharaman, convened for a significant meeting today, June 22. Here are the updates from the GST Council meeting:
GST Exemptions:
Platform tickets by Indian Railways
Hostel accommodation outside educational institutions (up to ₹20,000/month/person)
Interest & penalties on tax demand notices (for FY 2017-18, 2018-19, 2019-20)
GST Rate Changes:
Uniform 12% on:
Milk cans (all materials)
Paper cartons, boxes & cases (previously 18%)
Solar cookers (all types)
Parts of poultry machinery
All types of sprinklers (including fire sprinklers)
5% IGST on imports of aircraft parts & tools (for MRO activities)
Other Decisions:
₹20 lakh limit for tax authority appeals to tribunal, ₹1 crore for High Court, ₹2 crore for Supreme Court
Pan-India Aadhaar based GST verification to fight fraud
Request sent to GoM for reducing GST on fertilizers
Report on GST rate rationalization by GoM expected at next meeting
