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Shobhana Subramanian

Articles By Shobhana Subramanian

205 Articles

Hike corporation taxes now: GVA underscores disparity between India Inc & MSMEs

A retrospective higher tax for FY21 not out of place

On the contrary, fat-cat corporations and banks that were, in any case, raking it in, pocketed the gains.

NDA failed to do its job on the economy: Big job-creating schemes needed to revive consumer demand & small businesses

At the last count, the cumulative loss of salaried jobs, since the pandemic, was 12.6 million across urban and rural areas; as of April 2021, there were just 73.3 million of them.

The virus resurgence has mainly dented aggregate demand, in contrast to last year when the lockdown also constrained supply.

Year of revival turns year of survival

With banks unwilling to lend, the govt must tap retail savings for capex and welfare spend; also, it must increase corporate tax rates

India GDP, indian economy, GDP growth, RBI, reserve bank of india, covid-19,

Sunil Jain was a fearless writer and hands-on boss, committed to high standards of journalism

Through the pressures, he never lost his sense of humour and the newsroom was always a fun place to be in when he was around.

Sunil Jain

RBI’s latest moves should help buffer small businesses against impact of second Covid wave, but much rests on banks

Bankers must be relieved the Governor hasn’t asked them to offer borrowers a moratorium on the repayment of interest and principal.

To try and facilitate credit flows in staying strong, Das, on Wednesday, announced measures that will help keep the liquidity in the system more abundant than it already is.

More job-loss ahead, raise govt spending

There is now a real danger of structural damage to the economy; the govt must quickly come up with a new relief package

The RBI had in April (before the full fury of the Covid resurgence) pegged the FY22 growth rate at 10.5%.

Raise the corporate tax rate; big firms will gain share from MSMEs in recovery, should pitch in with welfare

The big companies can afford to pay a 30% corporate tax for a few years. The additional revenue can be used to bring succour to MSMEs, increase MGNREGA allocations, even lower personal tax rates to boost consumption, which, i

Corporate numbers have been good because, though the economy isn’t exactly on fire, companies are able to raise prices to pass on the higher costs of inputs.

Covid-19: And the bad news keeps rolling in

The second wave, not yet over, will crush MSMEs further and, with it, the hopes of FY22 being the big-recovery year

Corporate profits are also getting a boost from the huge cost-cuts, but that is hurting the larger economy.

Till Covid-19 is in the air, RBI’s stance is clear

With economic revival likely to take a hit due to the latest Covid surge, RBI will continue to keep policy accommodative

economy

Large gains for OTT in 2021: With theatres likely to remain empty for longer, more producers may release films on OTT platforms

A string of recent releases — Roohi, Mumbai Saga, Sandeep Aur Pinky Faraar and Saina — haven’t done too well at the box office and, much like in 2020, many more filmmakers are now likely to release their films on stream

And, indirect jobs, as per an EY expert, could be the cherry on top of the icing if India becomes “the world’s back office for production and post-production.”

Fintech revolution needs regulatory help

They have cracked the payments piece but to do the same in the lending space, fintechs need important permissions from RBI

To be sure, merchants would opt for a waiver of the MDR, typically 2-3% on the value of the purchase, only if they are severely strapped for cash. Else, it would not make sense for them to give up the float.

Between Supreme Court & govt, banks lose freedom

SC did well to allow banks to declare loans as NPAs, but not allowing them to charge penal interest was a bad idea

India had seized and sold shares of Cairn in its erstwhile India unit, confiscated dividend due and withheld tax refunds to recover the tax demand it had levied two years after passing a law in 2012 that gave it powers to levy tax retrospectively.

‘RuPay’s market share by volumes is 34%’

E-commerce is a very significant driver, but we are also seeing a lot of other interesting categories emerge. For example, we now have some of the bus transport corporations going live on UPI.

CFO of the Year: Saurabh Agrawal – The man who loves numbers

But only a little. Unscrambling the 100-odd businesses at the $100-billion conglomerate is a never-ending process.

In between buying, selling and merging businesses, Agrawal is trying to create a cohesive unit for defence manufacturing; there’s also the not-so-small matter of allocating resources to the group’s focus areas: digital, consumer and financial services.

Survived Covid, long recovery ahead

Services won’t recover till vaccine is fully rolled out and, within manufacturing, it is bigger firms that are doing well

GDP growth in FY21 is now estimated to grow at a slightly weaker minus 8%, from the minus 7.7% estimated earlier.

Reserve Bank continues to help the recovery

Though bond yields will harden, the central bank has done well to give banks some more time to fix their bond portfolio

RBI

Union Budget 2021: Tap household savings for budget

Union Budget 2021 India: If that is done, it will reduce the dependence upon the bond market, and the costs will also be lower for govt

Budget 2021-22, Union Budget 2021

Organised cheer, unorganised fear: Master show, pent-up demand and K-shaped recovery

India is witnessing the classic K-shaped recovery with the formal sector doing well while the informal one lags

Indeed, in the short run, the accumulated savings of high earners can support the economy.

No V-shaped recovery this: Only big firms doing well, labour participation is low, investments weak

Until the informal economy is back on its feet, we can’t call a recovery.

economy

Don’t let the Insolvency and Bankruptcy Code go the CDR way

IBC should never have been kept in abeyance for so long and, if not handled well, the pre-pack can deal it a big blow

However, since the creditors and the debtors already arrive at a concensus on initiating the pre-pack resolution, chances of frivolous litigations under the proposed framework are minimised, analysts say.

Record CaFE: R Shankar Raman- A $500-billion infrastructure opportunity in five years

We expect the curve to be upward-sloping from 2022-23 onwards, and initially, we expect an average of $50 billion annually as a realistic amount.

R Shankar Raman, director and group CFO, Larsen & Toubro

COVID-19 vaccine alone won’t cure the economy

It will help revive economic activity, but there are deep-seated issues—and Covid-induced ones—that need fixing

economy

Govt capex critical for sustainable GDP growth, disinvestment is key

Given the state of private investment and the balance sheets of states, central capex critical for sustainable GDP growth

RBI ignores inflation, sticks to growth plan

The policy seeks to reassure bond markets while hoping a good crop and fixing Covid-bottlenecks will ease inflation

RBI

No time to tighten those purse strings

Large enough swathes of the economy remain in trouble, so increased government expenditure will remain critical

https://blog.stockal.com/wall-street-takes-a-pause-looks-for-signals-from-stalled-stimulus-talks/

Allowing business houses to own banks is fraught with risk

Allowing business houses to own banks is fraught with risk; India’s supervisory system is too lax to deal with it

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