5 September 2024 : Important Financial News in India

‘Electric 3-wheeler Market Set for Consolidation’

TLDR Of the Article:

• The fragmented electric three-wheeler market in India is poised for consolidation due to stricter battery regulations and reduced government subsidies.

Which Indian Companies will be affected:

• Electric three-wheeler manufacturers like Kinetic Green, Mahindra Electric, and Piaggio.

Its Implications On Industry And Business:

• Smaller players may be pushed out of the market due to increased regulatory compliance costs.
• Consolidation will lead to stronger, more stable players with better technology and compliance.
• The sector may see an influx of investment as it becomes more organised and regulated.

Local Value Addition Math in Preferential Market Access: IT Hardware Cos Oppose Change

TLDR Of the Article:

• The government has proposed reducing the weightage of local value addition in the procurement of IT hardware.
• IT hardware companies argue that this change will make it harder for them to qualify for state tenders, impacting domestic players.

Which Indian Companies will be affected:

• Indian IT hardware manufacturers such as HCL, Wipro, and others producing locally.

Its Implications On Industry And Business:

• Domestic hardware companies may struggle to meet the new requirements, reducing their competitiveness in state contracts.
• Could lead to increased reliance on imported components, affecting the government’s “Make in India” initiative.
• Potential impact on jobs and local manufacturing capabilities.

India, Singapore to Sign Pact on Semicon During PM Visit

TLDR Of the Article:

• India and Singapore will finalise a semiconductor collaboration pact during Prime Minister Narendra Modi’s visit.
• The agreement will focus on talent development, knowledge sharing, and building a strong semiconductor value chain.

Which Indian Companies will be affected:

• Indian semiconductor startups and companies like Vedanta and Tata Group investing in semiconductors.

Its Implications On Industry And Business:

• Boost for India’s semiconductor ecosystem and knowledge transfer between India and Singapore.
• Could help India attract investment in its emerging semiconductor manufacturing sector.
• Positive impact on India’s self-reliance in critical technologies and chips.

SC Seeks Details of Sahara Shareholders, Properties

TLDR Of the Article:

• The Supreme Court has requested Sahara Group to provide details of its shareholders and unencumbered properties to raise ₹10,000 crore to refund 33 million small investors.

Which Indian Companies will be affected:

• Sahara Group and its real estate and finance arms.

Its Implications On Industry And Business:

• Increased pressure on Sahara to liquidate assets to meet its financial obligations.
• Potential sales of large properties could lead to opportunities for real estate buyers and investors.
• Could impact investor sentiment regarding corporate governance in large business groups.

Vodafone Idea’s Revenue Market Share Sinks to All-time Low in Q1

TLDR Of the Article:

• Vodafone Idea’s revenue market share (RMS) has dropped to a historic low of 15% in Q1, losing market share in 16 out of 22 telecom circles.

Which Indian Companies will be affected:

• Vodafone Idea and its competitors like Reliance Jio and Bharti Airtel.

Its Implications On Industry And Business:

• Vodafone Idea’s financial instability could lead to further loss of customers, impacting its survival in the market.
• Rival telecom companies may capture more market share, solidifying their dominance.
• Could lead to consolidation in the telecom industry as smaller players exit the market.

Amid Floods All Around, 11% of India is Facing Drought

TLDR Of the Article:

• Despite heavy rains and floods in several states, around 10.7% of India is experiencing severe drought-like conditions, according to the India Drought Monitor.

Which Indian Companies will be affected:

• Agricultural companies and FMCG firms dependent on agricultural output.

Its Implications On Industry And Business:

• Impact on agricultural productivity in drought-affected regions, potentially leading to higher food prices.
• Negative effects on industries dependent on agricultural raw materials, such as food processing and FMCG.
• Possible demand for increased government intervention to address water scarcity and drought mitigation.

EV Sales in Delhi Plummet as Road Tax Waiver Ends

TLDR Of the Article:

• Electric vehicle (EV) sales in Delhi have dropped significantly due to the removal of the state government’s road tax waiver on EVs.

Which Indian Companies will be affected:

• EV manufacturers like Tata Motors, Ola Electric, and Hero Electric.

Its Implications On Industry And Business:

• Decline in EV adoption in Delhi could impact the broader electric vehicle ecosystem.
• Manufacturers may need to push for other incentives or discounts to boost sales.
• Could slow down Delhi’s electric mobility transition and hamper India’s broader EV goals.

Deals & Disputes Drive India Inc Legal Spends up by 17% in FY24

TLDR Of the Article:

• India Inc’s legal spending increased by 17% in FY24 due to a rise in cross-border deals, dispute resolution, and compliance costs.

Which Indian Companies will be affected:

• Large Indian corporations engaged in global M&A, litigation, and regulatory compliance, such as Tata Group, Reliance, and Adani.

Its Implications On Industry And Business:

• Rising legal expenses indicate increased corporate activity and complexity in the business environment.
• Greater focus on dispute resolution and compliance could impact profitability and operations.
• Firms may look to optimise legal strategies to control costs while navigating complex regulatory landscapes.

Hindujas’ Acquisition of Reliance Capital Hits Tax Dues Hurdle

TLDR Of the Article:

• Hinduja’s acquisition of Reliance Capital faces a new challenge due to over ₹1,000 crore in Goods and Services Tax (GST) dues.
• The dues are owed by Reliance Capital’s insurance subsidiaries, and the Mauritius-based IndusInd International Holdings (IIHL) is adjusting payments accordingly.

Which Indian Companies will be affected:

• Reliance Capital
• Hinduja Group (IndusInd International Holdings)

Its Implications On Industry And Business:

• Delays in finalising the acquisition could affect creditors awaiting repayment.
• The insurance industry may see heightened scrutiny over unpaid GST dues.
• Regulatory complexities could add to the cost of acquisition deals involving distressed assets.

Swiggy Operating Revenue Up 36% in FY24, Losses Down 44%

TLDR Of the Article:

• Swiggy reported a 36% increase in revenue to ₹11,247 crore for FY24, alongside a 44% reduction in losses.
• Growth was driven by its quick-commerce vertical, Instamart, and increasing out-of-home consumption.

Which Indian Companies will be affected:

• Swiggy
• Competitors like Zomato and Dunzo

Its Implications On Industry And Business:

• Positive revenue growth signals Swiggy’s improving financial health and efficiency.
• Increasing competition in the quick-commerce space could lead to further innovation and price wars.
• Possible IPO for Swiggy could attract new investments into the food delivery and grocery segments.

RIL Bags ₹3,620-Cr Battery PLI Sops

TLDR Of the Article:

• Reliance Industries Ltd. (RIL) secured ₹3,620 crore in government incentives for manufacturing advanced chemistry cell (ACC) battery storage systems with a capacity of 10 GWh.

Which Indian Companies will be affected:

• Reliance Industries Ltd.
• Competitors in the battery and energy storage space like Amara Raja and Exide.

Its Implications On Industry And Business:

• Strengthens RIL’s position in the green energy sector and supports India’s goal of reducing reliance on fossil fuels.
• Boosts India’s battery manufacturing capacity, helping meet growing demand from the EV sector.
• Accelerates India’s progress in energy storage technologies under the production-linked incentive (PLI) scheme.

Jakson Engg to Invest ₹2kcr in 2,500 MW Solar Cell Mfg Unit

TLDR Of the Article:

• Jakson Engineers Ltd. will invest ₹2,000 crore to set up a 2,500 MW solar cell manufacturing facility and expand its solar module capacity to 2,000 MW.

Which Indian Companies will be affected:

• Jakson Group
• Competitors in the renewable energy and solar manufacturing sector like Adani Green and Tata Power Solar.

Its Implications On Industry And Business:

• Increases domestic solar cell manufacturing, helping India reduce reliance on imports.
• Supports India’s renewable energy goals and boosts the country’s green energy infrastructure.
• Potential job creation and investment in sustainable technologies within the solar power sector.

India-UK FTA within Touching Distance: NITI Aayog CEO

TLDR Of the Article:

• India and the UK are nearing an agreement on a Free Trade Agreement (FTA), with the deal now in the final stages of negotiation.

Which Indian Companies will be affected:

• Indian exporters, particularly in sectors like IT, textiles, and pharmaceuticals.
• UK-based companies looking to expand operations in India.

Its Implications On Industry And Business:

• A finalised FTA could open new export opportunities for Indian companies in the UK.
• Indian industries may benefit from reduced tariffs and improved market access.
• Strengthens trade relations between India and the UK, potentially boosting FDI and joint ventures.

‘China Manufacturing Centre of World Due to US Outsourcing Policy’

TLDR Of the Article:

• China’s dominance as a global manufacturing hub is attributed to the outsourcing policies of top US companies, according to India’s G20 Sherpa Amitabh Kant.

Which Indian Companies will be affected:

• Indian manufacturing firms competing globally in sectors like electronics and textiles.
• Companies involved in supply chain diversification efforts.

Its Implications On Industry And Business:

• Highlights the importance of reshoring and supply chain diversification strategies for India.
• Could fuel India’s manufacturing ambitions, especially in electronics and IT hardware sectors.
• India may position itself as an alternative to China in global manufacturing through policy reforms and investment incentives.

Adani Power to Invest ₹18,000 Cr to Triple Kawai Plant Capacity

TLDR Of the Article:

• Adani Power plans to invest ₹18,000 crore to more than triple the capacity of its Kawai thermal power plant in Rajasthan.
• This investment will help meet the rising demand for electricity as India pushes for rapid industrialization and infrastructure growth.

Which Indian Companies will be affected:

• Adani Power
• Competitors in the power sector, including Tata Power, NTPC.

Its Implications On Industry And Business:

• Increased power generation capacity will support India’s growing energy demand, helping industries expand.
• Competitors may need to accelerate their own expansion plans to maintain market share.
• The investment could contribute to job creation and economic development in Rajasthan.

NCLT Seeks Go First Response on CoC Decision to Liquidate Co

TLDR Of the Article:

• The National Company Law Tribunal (NCLT) has sought Go First’s response to the Committee of Creditors’ (CoC) decision to liquidate the airline, as it faces severe financial challenges.

Which Indian Companies will be affected:

• Go First (formerly GoAir)
• Competitors in the airline industry like Indigo and SpiceJet.

Its Implications On Industry And Business:

• Potential liquidation could reshape the competitive landscape of India’s low-cost aviation market.
• Competitors may benefit from Go First’s market share loss, possibly leading to fare adjustments.
• Could have ripple effects on jobs and the airline supply chain, affecting vendors and service providers.

States Told to Expand PM Awas Yojana to Marginalised Workers

TLDR Of the Article:

• The Ministry of Labour and Employment has asked state governments to include marginalised workers, including migrant and contract labourers, under the Pradhan Mantri Awas Yojana (PMAY), a government housing scheme.

Which Indian Companies will be affected:

• Construction and real estate companies involved in affordable housing projects.
• Cement, steel, and building material suppliers.

Its Implications On Industry And Business:

• Expanding PMAY to include marginalised workers could drive more affordable housing projects, benefiting construction firms.
• Increased demand for construction materials like cement and steel could provide a boost to related industries.
• Could also lead to social development and improved living conditions for millions of unorganised sector workers.

Govt to Offload Up to 6.78% in GIC; OFS Opens Today

TLDR Of the Article:

• The government is launching an Offer for Sale (OFS) to reduce its stake in General Insurance Corporation (GIC) by up to 6.78%.

Which Indian Companies will be affected:

• GIC (General Insurance Corporation)
• Competitors in the insurance and reinsurance sectors like New India Assurance, United India Insurance.

Its Implications On Industry And Business:

• The OFS could attract institutional investors, impacting GIC’s stock price and market valuation.
• Increased market liquidity might make GIC more attractive to new investors.
• The government’s divestment push aligns with broader efforts to reduce its stake in public sector enterprises.

D-Street Diary

TLDR Of the Article:

• Sona BLW Precision Forgings launched a ₹2,000-crore QIP at ₹699.01 per share.
• QIP (Qualified Institutional Placement) allows companies to raise capital by issuing shares to institutional investors.

Which Indian Companies will be affected:

• Sona BLW Precision Forgings

Its Implications On Industry And Business:

• The QIP will help Sona BLW raise capital to fund expansion and reduce debt.
• Investors and competitors in the auto components sector will watch closely for its financial performance post-fundraising.

Rupee Hits New Low of 83.98

TLDR Of the Article:

• Rupee touched an intraday low of 83.98/$1 but recovered as the RBI likely intervened by selling dollars.
• Rupee hitting a new low raises concerns over inflation and import costs.

Which Indian Companies will be affected:

• Import-heavy sectors: Automobiles, electronics, and pharmaceuticals.
• Export sectors: IT, textile, and metal industries.

Its Implications On Industry And Business:

• Importers may face increased costs, while exporters could benefit from a weaker rupee.
• Higher inflationary pressure due to costlier imports.

Brent Crude Futures Fall to $72.75

TLDR Of the Article:

• Brent crude oil prices dropped to $72.75 amid pessimism about global demand.
• Oil prices fluctuating can impact multiple industries, from transport to manufacturing.

Which Indian Companies will be affected:

• Oil companies (e.g., ONGC, Reliance Industries)
• Energy-intensive industries like steel, cement, and airlines.

Its Implications On Industry And Business:

• Lower oil prices reduce energy costs for industries but might hurt oil producers’ margins.
• Airlines and logistics may benefit from reduced fuel expenses.

Weak US Data Halts Nifty’s Strong Run

TLDR Of the Article:

• Weak US manufacturing data caused Nifty to lose momentum, ending the trading session weak on Wednesday.
• The drop in global oil prices helped limit losses in Indian markets.

Which Indian Companies will be affected:

• Export-driven companies like IT firms (Infosys, TCS).
• Firms exposed to US markets may see volatility.

Its Implications On Industry And Business:

• Indian markets might see short-term pressure as concerns about a US downturn rise.
• Investors may adopt a cautious stance on export-oriented stocks.

Adani Group’s Maiden Public Issue of Bonds Oversubscribed 1.8X on Day 1

TLDR Of the Article:

• Adani Enterprises’ first non-convertible debenture (NCD) issuance was oversubscribed by 1.8 times, with bids of ₹716 crore.

Which Indian Companies will be affected:

• Adani Enterprises
• Competitors in infrastructure and energy sectors.

Its Implications On Industry And Business:

• Strong investor interest shows confidence in Adani’s financial health despite past controversies.
• Provides Adani Enterprises with capital for expansion or refinancing existing debt.

Wall Street Stable After Soft Job Nos

TLDR Of the Article:

• Wall Street indexes showed stability after a report of soft US job openings and dovish comments from a Fed policymaker.

Which Indian Companies will be affected:

• IT services companies with US exposure, like Infosys, Wipro, and TCS.

Its Implications On Industry And Business:

• Stability in US markets may calm investor sentiment in India.
• Indian IT companies may benefit if the US economy slows, potentially leading to increased outsourcing.

Why You Should Look to Build A Core & Satellite Portfolio

TLDR Of the Article:

• Financial planners recommend building a core and satellite portfolio using a combination of active and passive strategies due to high equity valuations.

Which Indian Companies will be affected:

• Mutual fund companies, wealth managers.

Its Implications On Industry And Business:

• A balanced portfolio helps manage risk in volatile markets.
• The financial services sector may see increased interest in portfolio management and investment products.

A Bigger Share of Bank Deposits Comes at Higher Rates Now

TLDR Of the Article:

• More than two-thirds of bank deposits now carry interest rates of 7% or higher, reflecting rising competition among banks to attract deposits.

Which Indian Companies will be affected:

• Major banks (SBI, HDFC, ICICI)
• Corporates relying on credit from banks.

Its Implications On Industry And Business:

• Higher deposit rates could put pressure on banks’ margins, affecting profitability.
• Corporates may face increased borrowing costs due to the competition for deposits.

Patient Investors Could Subscribe to GIC’s OFS

TLDR Of the Article:

• The ₹4,701-crore OFS from GIC offers retail investors an opportunity to buy shares with a three-year holding period recommended.

Which Indian Companies will be affected:

• GIC (General Insurance Corporation).

Its Implications On Industry And Business:

• A successful OFS could improve liquidity in GIC stock.
• GIC’s financial performance will be critical for long-term investors looking at insurance sector growth in India.

Satin Creditcare Raises ₹120 Cr from HSBC India

TLDR Of the Article:

• Satin Creditcare Network raised ₹120 crore through securitisation from HSBC India at a coupon rate of 9.30%.
• The funds will be used to strengthen Satin Creditcare’s microfinance business and expand operations.

Which Indian Companies will be affected:

• Satin Creditcare Network
• Microfinance competitors like Ujjivan and Spandana Sphoorty.

Its Implications On Industry And Business:

• Boosts Satin Creditcare’s liquidity for lending to small businesses and individuals.
• Strengthens microfinance activity in rural and semi-urban India, improving financial inclusion.
• HSBC India strengthens its presence in the microfinance sector.

RBI Board Reviews Indian, Global Economy

TLDR Of the Article:

• The RBI central board reviewed the state of the domestic and global economy, discussing policy measures and financial outlook.
• This meeting is key in shaping future monetary and financial policy directions for India.

Which Indian Companies will be affected:

• All Indian banks and financial institutions.
• Companies reliant on RBI policy changes, including borrowers and lenders.

Its Implications On Industry And Business:

• Potential adjustments in interest rates or inflation targets could affect borrowing costs for businesses and individuals.
• Review indicates future focus areas like inflation management, currency stability, and financial sector reforms.

StanChart Carries Out 1st Derivative OTC Deal for Gold Price at GIFT City

TLDR Of the Article:

• Standard Chartered completed the first OTC derivative deal for hedging gold prices from GIFT City, a significant step in India’s financial market development.

Which Indian Companies will be affected:

• Standard Chartered
• Companies in precious metals trading and hedging.

Its Implications On Industry And Business:

• Boosts GIFT City’s role as an emerging financial hub.
• Enhances gold price risk management for Indian companies trading in gold.

Surging Inflows Make MFs Stay Put in Equities

TLDR Of the Article:

• Domestic mutual funds continued investing heavily in equities, with cumulative rolling investments reaching ₹3.3 lakh crore in August.

Which Indian Companies will be affected:

• Mutual fund companies like HDFC AMC, SBI MF.
• Companies seeing inflows from mutual funds, such as IPO and QIP participants.

Its Implications On Industry And Business:

• Continued equity inflows indicate bullish sentiment in the market.
• Positive for companies launching IPOs and seeking funding through institutional investors.

NPA Provisions Show Sequential Rise in Q1 on Seasonal Weakness

TLDR Of the Article:

• Loan loss provisions by banks increased in Q1, driven by public and private sector banks, reflecting seasonal economic weakness.

Which Indian Companies will be affected:

• Public sector banks (SBI, Central Bank of India).
• Private banks (Axis Bank, Kotak Mahindra Bank, Bandhan Bank).

Its Implications On Industry And Business:

• Higher provisions indicate rising non-performing assets (NPA), a concern for bank profitability.
• Could lead to tighter lending conditions and higher interest rates for borrowers.

Canara Bank Raises $300 M Through GIFT City Branch

TLDR Of the Article:

• Canara Bank raised $300 million through a five-year bond issue, tapping investors in Asia and Europe from its GIFT City branch.

Which Indian Companies will be affected:

• Canara Bank
• Competitors like SBI, Bank of Baroda also raising funds through international markets.

Its Implications On Industry And Business:

• Provides Canara Bank with additional liquidity to meet loan demand and capital requirements.
• Strengthens GIFT City’s position as an international financial hub.

Aarti Inds Needs to Leverage Capex Plans to Regain Heft

TLDR Of the Article:

• Aarti Industries, despite showing growth in revenue and profit, has seen a stock drop by 18% post-Q1 results due to market concerns over capex utilisation.

Which Indian Companies will be affected:

• Aarti Industries
• Competitors in the specialty chemicals sector, including SRF and Atul Ltd.

Its Implications On Industry And Business:

• Capex execution is critical for Aarti’s long-term growth and market performance.
• Market confidence in the chemical sector may hinge on how efficiently companies deploy expansion plans.

Axis Bank Sells 10-yr Infra Bonds to Raise ₹3,925 Cr

TLDR Of the Article:

• Axis Bank raised ₹3,925 crore by selling 10-year infrastructure bonds, securing long-term funding amid high loan demand.

Which Indian Companies will be affected:

• Axis Bank
• Infrastructure companies seeking funding through loans.

Its Implications On Industry And Business:

• Strengthens Axis Bank’s ability to support large-scale infrastructure projects.
• Higher loan demand signals robust economic activity in the infrastructure sector.

World Bank’s Advice to India on Rejoining RCEP Flawed: GTRI

TLDR Of the Article:

• GTRI criticised the World Bank’s recommendation for India to rejoin the RCEP, calling it based on outdated projections.
• The think tank believes India’s economic conditions have changed, making the advice less relevant today.

Which Indian Companies will be affected:

• Indian exporters in sectors like textiles, automotive, and electronics.

Its Implications On Industry And Business:

• Rejoining RCEP could lead to tougher competition for Indian businesses from Chinese and Southeast Asian companies.
• GTRI’s stance suggests a preference for India to focus on self-reliance and avoid potential trade imbalances.

Need to Adopt Advanced Tech to Optimise Agri Ops: PK Mishra

TLDR Of the Article:

• PK Mishra emphasised the need for states to integrate advanced tech like AI, drones, and GPS in agriculture.
• The aim is to boost productivity and ensure sustainable farming practices.

Which Indian Companies will be affected:

• Agri-tech companies like DeHaat and Ninjacart.

Its Implications On Industry And Business:

• Accelerates the agri-tech market, increasing demand for tech solutions in agriculture.
• Could lead to better crop yields and long-term sustainability in Indian farming.

‘Plan Afoot to Put Out Approved List of Cos & Models for Solar Cells’

TLDR Of the Article:

• The government plans to release an approved list of models and manufacturers (ALMM) for solar cells to streamline procurement.

Which Indian Companies will be affected:

• Solar manufacturers like Adani Solar, Vikram Solar.

Its Implications On Industry And Business:

• Ensures quality standards for solar products.
• Could provide a boost to domestic manufacturers, increasing India’s solar energy capacity.

Finmin Relaxes Norms for Spending Above ₹500 crore

TLDR Of the Article:

• The finance ministry relaxed spending norms for large capital expenditures above ₹500 crore to promote capital investments.

Which Indian Companies will be affected:

• Construction and infrastructure companies such as L&T and GMR.

Its Implications On Industry And Business:

• Expected to accelerate capital-intensive projects, improving infrastructure and job creation.
• Stimulates sectors dependent on large government contracts.

Export Credit Scheme Extended till Sept 30

TLDR Of the Article:

• The government extended the interest equalisation scheme for export credit to support outbound shipments till September 30.

Which Indian Companies will be affected:

• Export-focused industries such as textiles, IT services, and pharmaceuticals.

Its Implications On Industry And Business:

• Helps Indian exporters remain competitive in global markets.
• Reduces borrowing costs for companies relying on export credit.

Domestic Demand Drives Services Sector PMI to 5-month High in August

TLDR Of the Article:

• India’s services sector saw a five-month high in August, driven by strong domestic demand.

Which Indian Companies will be affected:

• Service-oriented companies in sectors like IT, retail, and financial services.

Its Implications On Industry And Business:

• Indicates a growing economy with robust demand in services.
• Highlights positive business sentiment despite global economic uncertainties.

Now, EPS Pension Can be Withdrawn from Any Bank

TLDR Of the Article:

• EPS pension subscribers will be able to withdraw their pensions from any bank across India starting January 2025.

Which Indian Companies will be affected:

• Banking sector as new systems are implemented.

Its Implications On Industry And Business:

• Improves flexibility for pensioners, simplifying access to pension funds.
• Encourages modernization of banking infrastructure to support centralised pension systems.

Textile Industry to Grow to $350 b by 2030: Giriraj

TLDR Of the Article:

• India’s textile industry is projected to reach $350 billion by 2030, creating 35 million jobs.

Which Indian Companies will be affected:

• Major textile companies like Arvind Ltd, Raymond, and Vardhman Textiles.

Its Implications On Industry And Business:

• Significant employment generation in the textile sector.
• Opportunities for growth in exports, innovation, and value-added textile products.

HDK for Raising Import Duty on Steel from 7.5% to 12%

TLDR Of the Article:

• Steel Minister HD Kumaraswamy proposed raising the steel import duty to protect domestic producers from rising imports, especially from China.

Which Indian Companies will be affected:

• Steel manufacturers like Tata Steel, JSW Steel, and SAIL.

Its Implications On Industry And Business:

• Expected to benefit domestic steel manufacturers by curbing imports.
• Could lead to higher steel prices, affecting industries reliant on steel, such as construction and automotive.

‘FAME III Likely in 2 Months, Focus on Preventing Misuse of Subsidies’

TLDR Of the Article:

• The government is preparing to launch FAME III, a subsidy scheme for green mobility, with a focus on preventing misuse of subsidies.

Which Indian Companies will be affected:

• Electric vehicle manufacturers such as Tata Motors, Ather Energy, and Ola Electric.

Its Implications On Industry And Business:

• Incentivizes the growth of the electric vehicle sector in India.
• Increased scrutiny on subsidy disbursement to ensure proper utilisation.

Lower GST on Insurance Likely to Come with Caps

TLDR Of the Article:

• The government may propose lowering GST on health and life insurance policies with annual premiums below ₹50,000.

Which Indian Companies will be affected:

• Insurance companies such as HDFC Life, ICICI Prudential, and Max Life.

Its Implications On Industry And Business:

• Could make insurance products more affordable for low and middle-income groups.
• May lead to higher penetration of insurance products across the country.