Market Pulse

Date Heading Details
20-Aug-2019   09:19 Hrs IST Corporate tax rate will be gradually cut to 25%: Finance Minister <p align="justify">With an aim to support Indian wealth creators, Finance Minister Nirmala Sitharaman has said corporate tax rate will be gradually cut to 25 per cent for companies with an annual turnover of over Rs 400 crore. Though, she did not give a timeframe for the reduction. She said the corporate tax reduction for the rest of corporates would be gradual. She added that Indian wealth creator entrepreneurs will be given all kind of support.</p><p align="justify">She said ‘I would like to underline the fact that we are conscious of that the Indian entrepreneurs are the ones who have been the wealth creators, job creators of this country. We are proud of them and we shall keep supporting them. Every attempt of the government will be towards promoting them, to understand them and also to facilitate them.' She added that ‘only 0.7 per cent is left … Even for them gradually, hopefully, in the long run, we will be able to bring down the tax to the level of 25 per cent.'</p><p align="justify">In her maiden Budget, she had cut corporate tax for companies with annual turnover of up to Rs 400 crore to 25 per cent from 30 per cent earlier. Earlier, the then Finance Minister Arun Jaitley had cut the corporate income tax rate to 25 per cent for companies with a turnover of up to Rs 250 crore.<br></p>
19-Aug-2019   09:28 Hrs IST Growth in job creation slows down in FY19: CARE Ratings <p align="justify">CARE Ratings in its latest study report has stated that growth in job creation slowed down in the financial year 2018-19 (FY19), with a 4.3% year-on-year (Y-o-Y) increase in total employment, over 6.2% Y-o-Y growth in FY18. The report showed that the number of jobs created during FY19 to be at 6.03 million. It noted that an economy growing at 6.8% should ideally be creating jobs commensurate to its growth rate. The study is based on a sample of 969 companies which has a high level of concentration as of 2019. About 12 of the 33 sectors are included, with 502 companies that accounted for 83 percent of total headcount, as of March 2019. </p><p align="justify">The study showed that growth tended to be higher in the service sectors such as finance, retail, realty, IT insurance, media and logistics. These were the relatively faster growing sectors in the economy. In the non-services sectors, non-ferrous, consumer durables and capital goods registered higher growth rates (electrical as well, though it was smaller in size). The auto sector (which saw a sharp fall in growth in production, combined with higher mechanisation), textiles (low production growth) and chemicals grew at just less than 5 percent (and have a sizeable share in total).</p><p align="justify">The slower movers were infrastructure, construction materials (even though production grew at a healthy rate), FMCG (slowdown in growth in production from 10.5% in FY18 to 4% in FY19), healthcare (slowdown in production growth from 23.1% in FY18 to 1.6% in FY19) and power (stable growth in production of around 5%). CARE Ratings said that the slower growth in the capital goods segment is a factor that has affected job growth in some sectors like infrastructure and construction material. Employment in paper industry grew by just 0.9%, which corresponded to a decline in production by 4.4% over two successive years.<br></p>
16-Aug-2019   09:18 Hrs IST India's exports growth likely to be in double digits in FY20: Commerce Secretary
14-Aug-2019   09:41 Hrs IST RBI allows fintech companies, financial institutions to set up regulatory sandbox
13-Aug-2019   09:27 Hrs IST RBI, Government on same page on steps to boost economy: Nirmala Sitharaman
09-Aug-2019   09:18 Hrs IST Industry leaders seek Rs 1 trillion stimulus package from govt to revive economy
08-Aug-2019   09:30 Hrs IST Consumer confidence declines in July: RBI
07-Aug-2019   09:26 Hrs IST India's GDP growth likely to be 6.2% in FY20: NCAER
06-Aug-2019   09:20 Hrs IST Government will soon hold discussions with FPIs: Finance Minister
05-Aug-2019   09:22 Hrs IST India's economy is cyclical; growth will pick up in one or two years: Bimal Jalan