Business Today 6-Oct-19

Over the past five years that I have been overseeing Business Today’s Most Powerful Women special issue, the number of women making it to the long list has been increasing – and also becoming more broad-based in terms of sectors from which they hail. Every year, in fact, we see a number of new names shattering the glass ceiling and making it to the C-suites and boardrooms of different companies and sectors. Even five years ago, the number of women achievers from finance and banking dominated the list. Today, apart from finance, the list has many representatives from FMCG, media and entertainment, durables, manufacturing as well as a number of service sectors. All this – along with the number of women’s issues being debated in publications and legislature – could…

STAY CONNECTED WITH US ON www.facebook.com/BusinessToday@BT_India Bailed Out for Now, Sugar Sector Needs Structural Reforms The Indian sugar industry is going through a sweet phase. But, is it the end of the industry’s and sugarcane farmers’ troubles? businesstoday.in/sugar-reforms Why Automotive Start-ups Appeal to Venture Capitalists Global investors’ interest in auto-tech start-ups comes at a time when the Indian auto sector is battling its steepest fall in monthly sales in the past 19 years businesstoday.in/autoindustry-global.investors Rosy-eyed Centre Looking at PSB Mergers as a Panacea; It’s Not In a slowing economy, where asset quality deterioration of PSBs has still not receded, the merger could be counterproductive businesstoday.in/psbmerger-economy NEWS Rana Kapoor, Other Promoters Stare at Losing YES Bank Control Post Equity Dilution As the family’s stakes have gone below 10 per cent, they…

28% The current GST rate for automobiles THE FINANCE ministry and the Goods and Service Tax (GST) Council are in a dilemma over cutting the GST rate for the automobile sector from the current 28 per cent. It is no secret that the Indian automobile sector has been going through its worst phase with monthly sales registering a decline for nine consecutive months. Amid falling sales, the sector has been demanding a rate cut, but given the government’s current fiscal situation, there is hardly any space for a rate cut. However, some industry analysts suggest that a rate cut could boost sales of cars and trucks and compensate for the revenue loss through improved collections. But given the voices coming from within the government, it is not looking very confident that a…

MANUFACTURING companies, which announced big expansion plans in the last one year, are now reducing their capital expenditure plans, especially after vehicle sales crashed 23.55 per cent in August—the steepest fall since tracking of wholesale vehicle sales started in 1997/98. Mahindra & Mahindra has deferred 10 per cent of its planned capex of around ₹1,000 crore by a year, besides executing plant shutdowns in phases. If sales do not pick up in the festive season, it will have to undertake the same exercise in October too. Hero MotoCorp has announced a capex cut of up to 20 per cent or ₹300 crore. Around 3,000 Maruti Suzuki temporary workers have lost their jobs. Tata Motors, Ashok Leyland and TVS group companies are also planning plant shutdowns. A big maker of automobile…

INDIA’S LARGEST bank, State Bank of India (SBI), has taken a lead in reducing deposit rates. While lending rates are now linked to the external benchmark repo rate for better and faster rate transmission, deposit rates are still sticky, which raises concerns about borrowers getting lower rates in future. SBI and a few other banks have made a beginning by reducing deposit rates, but it is only restricted to term deposit rates. In addition, private sector banks are still offering higher term deposit rates. There are questions on whether the recent deposit rate cut will sustain for long because of competitive pressures. Similarly, there is also scope to reduce the rate on savings deposits, which account for a big chunk of banks' cost of funds. Many suggest the RBI should…

BY STAYING non-committal at the Regional Comprehensive Economic Partnership’s (RCEP)’s ministerial discussion and reopening the FTA with ASEAN countries, India has resisted the pressure being built by Chinese diplomats to open up the economy for their products. The RCEP, which has ASEAN countries along with China, Japan, Korea, Australia and New Zealand, is working on a mega free trade agreement. India is open to giving space to the other partners except China. The tariff would become zero on roughly 74 per cent of the products; of this, 40 per cent are already being ‘dumped’ by Chinese players into India. India has a trade deficit of more than $57 billion with China. With reworking of the FTA with ASEAN, India is looking at capturing the global value chain manufacturing and services…