The Gross Goods and Services Tax (GST)

♦ The Gross Goods and Services Tax (GST) collections hit a record high in April 2024 at Rs 2,10,267 crore. While the Central Goods and Services Tax (CGST) was registered at Rs 43,846 crore, the State Goods and Services Tax                 (SGST)  was Rs 53,538 crore. The Integrated Goods and Services Tax (IGST) stood at  Rs 99,623 crore, including Rs 37,826 crore collected on imported goods, the finance ministry said. While Cess was recorded at Rs 13,260 crore,         including Rs 1,008 crore collected on imported goods.
♦ This is the highest level of GST collections recorded since the indirect tax reform started in July 2017. Also, this is the first time that the overall mop-up crossed the Rs 2 lakh crore mark. The previous highest level was registered in         April 2023 at Rs.1.87 lakh crore.

According to Invest India

♦ According to Invest India, India is set to become the 3rd largest online retail market by 2030. Currently, India's e-commerce sector stands at a market size of USD 70 billion, constituting around 7 percent of the total retail market in the country.

♦ With 881 million users, India has the 2nd largest Internet user-base globally. The internet penetration has witnessed significant growth, with 52 percent of the Indian population, approximately 759 million people, accessing the internet in 2022.

♦ Several factors contribute to India's e-commerce boom:

♦ One of the primary drivers is the increasing internet penetration, with around 87 per cent of Indian households expected to have internet connections by 2025. The duration of internet access through mobiles has seen a 21 percent rise compared to 2019.

♦ The number of online shoppers in India is projected to increase significantly, with a compound annual growth rate (CAGR) of 22 per cent to 88 million in rural India and 15 per cent to 263 million across urban India between 2019 and 2026.

♦India’s affordability in data prices also plays a pivotal role, with one gigabyte of data costing approximately USD 0.17 (Rs 13.5), driving the majority of the population online.

Global Trade Research Initiative

♦ According to the Global Trade Research Initiative (GTRI) report, India's dependence on Chinese industrial goods rose to 30% from 21% in the last 15 years. The goods include telecom, machinery and electronics.

♦ From 2019 to 2024, India's exports to China have stagnated at around $16 billion annually, while imports from China have surged from $70.3 billion in 2018-19 to over $101 billion in 2023-24, resulting in a cumulative trade deficit exceeding $387 billion over five years.

♦ In 2023-24, India's total merchandise imports amounted to $677.2 billion, with $101.8 billion of that coming from China.
 

Adanis Vizhinjam Port

♦ Adani’s Vizhinjam Port has received the approval of The Port and Shipping Ministry to operate as India's first trans-shipment port. This port is located in Kerala. A transshipment port is a crucial hub where cargo is transferred from one big vessel to several smaller ones before they reach the final port of discharge. It will now help India in its ambition to become a manufacturing hub.

♦ Approximately 75 per cent of India’s transshipment cargo is currently processed at ports overseas, with destinations such as Colombo, Singapore, and Klang handling about 85 per cent of this cargo.
 

Indias GDP growth

♦ National Institute of Public Finance and Policy (NIPFP) estimated India's GDP growth at 7.1 percent for the current fiscal (2024-25). NIPFP said that in 2023-24, states' capex growth is robust due to significant capex transfers from the Centre.

♦ While the Asian Development Bank (ADB) and Fitch Ratings have estimated India's growth at 7 percent, the International Monetary Fund (IMF), S&P Global Ratings and Morgan Stanley projected a 6.8 percent growth rate for 2024-25.
 

Indias drugs and pharmaceutical exports

♦ India’s drugs and pharmaceutical exports increased 9.67 percent year-on-year to USD 27.9 billion in 2023-24. According to the commerce ministry data, pharma exports in March grew by 12.73 percent to USD 2.8 billion. In 2022-23, the exports stood at USD 25.4 billion. 
♦ The top five export markets, for the sector during the last fiscal (2023-24), are the United States, the United Kingdom, the Netherlands, South Africa and Brazil. The US accounted for over 31% of India’s total pharmaceutical exports.
♦ India’s pharmaceutical industry is the third largest by volume and the 13th largest by value in the world, producing more than 60,000 generic drugs across 60 therapeutic categories.

Indias net direct tax

♦ India’s net direct tax collections grew 17.7% in 2023-24 to hit Rs.19.58 lakh crore. In 2022-23 the direct tax collections stood at Rs. 16.64 lakh crore. 
♦ The Budget Estimates for Direct Tax revenue in the Union Budget for FY 2023- 24 were fixed at Rs.18.23 lakh crore which were revised and the Revised Estimates were fixed at Rs. 19.45 lakh crore. The provisional Direct Tax collections (net of the refunds) have exceeded the BE by 7.40% and RE by 0.67%.
♦ The Gross collection (provisional) of Direct Taxes (before adjusting for refunds) for the FY 2023-24 stands at Rs. 23.37 lakh crore showing a growth of 18.48% over the gross collection of Rs. 19.72 lakh crore in FY 2022-23.

International Monetary Fund

♦ The International Monetary Fund (IMF) released its World Economic Outlook on 16 April 2024. In it IMF has raised India's growth forecast for 2024-25 to 6.8% from 6.5%. It revised upwards the growth figure for 2023-24 to 7.8% from 6.7% it had forecast in January 2024. 

♦ The IMF estimates Asia's third largest economy's gross domestic product to grow at 6.5% in the next financial year (2025-26).
 

Moodys Analytics released its latest report

Moody's Analytics projected India's economy to expand 6.1% in 2024, a decrease from the 7.7 percent growth recorded in 2023. Moody's Analytics released its latest report, ' APAC Outlook: Listening Through the Noise' on 12 April 2024. It said the APAC (Asia-Pacific) region is faring relatively well compared to the rest of the world. The report forecasts 3.8 percent growth for the APAC economy in 2024, in contrast to the global economy's 2.5 percent growth.
 

HDFC Bank

♦ HDFC Bank inaugurated a branch in Lakshadweep's Kavaratti island.

♦ It became the first private sector lender to have a branch in the Lakshadweep.

♦ HDFC Bank has branches in the cold climes of Kashmir, the southern tip of Kanyakumari and now the island of Lakshadweep.

♦ As of December 31, 2023, the HDFC Bank’s distribution network was at 8,091 branches and 20,688 ATMs across 3,872 cities or towns as against 7,183 branches and 19,007 ATMs across 3,552 cities or towns as of December 31, 2022. 

Indian economy would grow 7.5 percent in 2024

♦ The World Bank projected that the Indian economy would grow 7.5 percent in 2024 in its “Jobs for Resilience” report. The report highlighted ongoing structural challenges that pose a threat to sustained growth, thereby hindering the South Asian region’s ability to generate employment and respond to climate shocks.

♦ The report forecasts a mild recovery in the Pakistan economy with growth projected at 2.3 percent in FY24-25, while in Sri Lanka output growth is expected to increase to 2.5 percent in 2025, with recoveries in reserves, remittances, and tourism.

♦ In Bangladesh, output is expected to rise by 5.7 percent in FY24/25, with high inflation and restrictions on trade and foreign exchange constraining economic activity.
 

Paradip Port Authority

♦ Paradip Port Authority (PPA) emerged as the highest cargo-handling major port in the country in the financial year 2023-24. PPA handling 145.38 Million Metric Tons (MMT) of cargo, marking a 7.4% growth from the previous year (2022-23). 

♦ For the first time in the 56-year history of operation, the port on the east coast in Odisha has surpassed previous records, set by Deendayal Port. Paradip Port has also recorded growth of 10.02 million metric tonnes (7.4 percent) of traffic on a year-on-year basis.
 

Reserve Bank of India

♦ The Reserve Bank of India (RBI) entered its 90th year on 1 April  2024. On this occasion Prime Minister Narendra Modi unveiled a commemorative coin at Mumbai's National Centre for the Performing Arts (NCPA). 

♦ RBI was founded in 1935, April 1 and is regulated by the Reserve Bank of India Act, 1934, as well as the Hilton Young Commission's recommendations.
 

Goods and Service Tax

♦ Goods and Service Tax (GST) collection in March 2024 rose 11.5 percent on an annual basis to Rs.1.78 lakh crore. This is the second highest since the regime came into force in July 2017. Of the total collections, Central Goods and Services Tax (CGST) stood at Rs 34,532 crore, State Goods and Services Tax (SGST) was Rs 43,746 crore and Integrated Goods and Services Tax (IGST) was Rs 87,947 crore, including Rs 40,322 crore collected on imported goods. The Cess collections stood at Rs 12,259 crore, including Rs 996 crore collected on imported goods.

♦ FY 2023-24 marks a milestone with total gross GST collection of Rs.20.18 lakh crore exceeding Rs.20 lakh crore, a 11.7% increase compared to the previous year (2023).

♦ The highest-ever GST collection was recorded at Rs 1.87 lakh crore in April 2023.