Business Today 2-May-21

A leading business magazine read by the business leaders for staying ahead and managing challenges that comes right away in the ever changing world of business.

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IN THIS ISSUE

Quest To Be The World’s Factory

The Production Linked Incentive (PLI) Scheme — India’s valiant answer to domestic and foreign manufacturers’ eternal gripe that producing in India was hopelessly unviable because of high taxes, high cost of logistics, finance, land, power and an endless list thereafter — was introduced for mobile manufacturers in 2020. The Government of India’s commitment to provide cash incentives up to 4-6 per cent of revenue from incremental local manufacturing aimed at import substitution got such an excitable response from companies that the Centre made mobile PLI the template to launch it in 12 other sectors. With total incentives committed going as high as ₹1.99 lakh crore over five years, PLIs now rival some of the biggest Government of India outlays such as ₹3.05 lakh crore for reforms-based result-linked power distribution sector…

2 min

The Point

BANKS GET A BREATHER

4.1 PERCENTAGE POINTS Improvement in gross NPA ratio of public sector banks from 12.8% in third quarter of FY19 to 8.7% in third quarter of FY21…

1 min

The Point

Assam Grew Fastest Among Poll-Bound States

↘ Four states and one Union Territory are voting in March-April to elect new assemblies. Of these, Assam’s economy grew the fastest at 8.6 per cent a year during the four-year period to FY20. It was followed by Tamil Nadu (8 per cent), West Bengal (6.7%), Puducherry (6.7 per cent) and Kerala (6.4 per cent) ↘ Of these, Tamil Nadu’s economy is the largest (3rd largest in India), followed by West Bengal (6th), Kerala (11th), Assam (17th) and Puducherry (26th)…

1 min

The Point

Bank Credit Growth Dips In Spite of Recovery

Growth in outstanding non-food credit given by scheduled commercial banks (SCBs) fell from 8.5 per cent in January 2020 to 6.6 per cent in February 2021. This despite the economy coming out of the contraction phase in the third quarter of FY21 OUTSTANDING CREDIT BY SCHEDULED COMMERCIAL BANKS CREDIT GROWTH HAD SLIPPED BELOW 7 PER CENT FOR THE FIRST TIME SINCE DEMONETISATION IN MARCH 2020. IT HAS NOT CROSSED THIS LEVEL IN ANY MONTH SINCE THEN Outstanding credit to industry fell 0.2 percent…

1 min

The Point

MUTUAL FUND AUM HITS RECORD HIGH

↘ Assets under management (AUMs) of the mutual fund industry rose 16.1 per cent (by ₹4.4 lakh crore) YoY to all-time high of ₹31.6 lakh crore in February 2021 ↘ Equity schemes had the largest number of folios at 68 per cent (6.59 crore). This was followed by hybrid schemes with 10 per cent share (93 lakh folios) and debt with 9 per cent share (88.9 lakh folios). AUM OF INDIAN MF INDUSTRY 3.74% Month-on-month rise in total assets under management in February 2021. Equity schemes' assets rose 7.8% month-on-month…

1 min

The Point

NET SALES OF CV MAKERS CROSS PRE-COVID LEVELS

↘ Domestic net sales of commercial vehicle companies rose 26.5 per cent in the December quarter to cross pre-Covid levels. This despite sales either remaining lower or rising only marginally compared with the year-ago period ↘ In February 2021, though, most companies had reported double-digit growth in sales, mainly due to the low base of the year-ago period QUARTERLY FINANCIAL PERFORMANCE: COMMERCIAL VEHICLES…

1 min