Innholdsfortegnelse for 2 March 2025 i Business Today

What is the relationship between the value of a currency and national pride? And how does the rupee-US dollar exchange rate impact India’s economy? The questions gain currency as the rupee touched an all-time low of nearly 88 to the dollar earlier this month. Over 10 years ago, the rupee was just above 63 to the dollar. The greenback has been strengthening and with the prospects of major disruptions in global trade, the rupee may come under further pressure. It is not just the Indian currency, many other currencies have also fallen, a point emphasised by government mandarins who point out that while many currencies have seen sharp declines, the rupee’s depreciation has been relatively modest. On its part, India’s central bank is focussed on the medium to long-term value…

PRIME MINISTER NARENDRA MODI’S four-hour long meeting with US President Donald Trump on February 13, yielded substantial gains for India. This includes a broad agreement to deepen bilateral trade ties and double it to $500 billion by 2030, as well as negotiate a bilateral trade agreement in the coming months. However, just hours before that crucial meeting, Trump announced a new system of reciprocal tariffs on trading partners of the US and said India is among the highest tariff nations, underscoring it with his grievance over customs duties India imposed on Harley Davidson motorbikes. India’s trade and industry have welcomed the discussions on deepening bilateral trade ties—after all, the US is India’s largest trading partner and biggest export market. But experts are worried about what the reciprocal tariffs would entail.…

FOOD DELIVERY GIANT Zomato’s announcement that it was renaming the company to Eternal Ltd, which incidentally is also the market listed entity, is not just a simple re-branding exercise. It’s a calculated shift towards a future where food delivery becomes only a slice of the whole pie. In a letter to Zomato’s stakeholders on February 6, Co-Founder and CEO, Deepinder Goyal, unveiled the plan to rename the holding company to Eternal. “This isn’t just a name change; it is a mission statement. A reminder etched into our identity that we will endure—not because we are here, but because we need to get there,” Goyal wrote in the letter. This comes even as Zomato’s quick commerce arm Blinkit’s rapid growth outpaced that of its main food delivery business in the third…

A FALLING RUPEE The rupee is seen to depreciate to 90 against the US dollar in the coming months The government is monitoring the movement and RBI has stemmed excessive volatility A stronger US dollar has put pressure on currencies across the globe SANJAY MALHOTRA’S tenure as the new Governor of the Reserve Bank of India has begun at a time of global economic uncertainty. The Indian economy is facing a slowdown, surging oil prices, and a weakening rupee—challenges that could have far-reaching consequences. Finance Minister Nirmala Sitharaman tried to address the slowing domestic economy in the Union Budget 2025-26 by providing salaried individuals some relief on the income tax front in the hope that it will spark a consumption boom, and revive slowing economic growth. But a weakening rupee…

THE RECENT DEPRECIATION of the rupee has sparked a debate on the relative merits and drawbacks of the fall in value vis-à-vis the US dollar. The recent volatility has been sparked by US President Donald Trump’s tariff policies that have increased uncertainty around the world and have led to a fall in the value of many currencies, not just the rupee. Consider this: the rupee fell by 57 paise to 86.62 on January 28, 2025—the steepest decline in nearly two years. From just February 10 to 13, the rupee quoted between 86.50 and 88. In this period, some have questioned the Reserve Bank of India’s (RBI’s) handling of the situation, raising concerns about its decision sell dollars to shore up the currency. The debate has also included top ministers in…

The Adani Group has partnered with the International Society for Krishna Consciousness (ISKCON) to offerthe Mahaprasad Seva atthe ongoing Maha Kumbh Mela in Prayagraj, Uttar Pradesh. The humanitarian service provides meals to approximately 100,000 devotees daily. About 2,500 volunteers prepare the meals in kitchens equipped with advanced facilities. The food is served on eco-friendly plates made ofleaves and distributed at several assembly points on the mela premises. In addition, the Adani Group provided 100 golf carts for differently-abled individuals, elderly people, and children before the state government replaced the service with two-wheelers after atragic stampede resulted in the deaths of several devotees during the early hours of Mauni Amavasya on January 29. The conglomerate has also collaborated with the Gorakhpur-headquartered Gita Press to print around 10 million copies of the…

INCOME TAX ACT, 1961 THE ACT COMPRISES 23 CHAPTERS, ORGANISED INTO 298 SECTIONS AND SUPPORTED BY 14 SCHEDULES Sale of depreciable business asset There was ambiguity in the treatment of gains or losses arising from the sale of depreciable assets. Such transactions could be interpreted as either capital gains/losses or income/losses under Profits and Gains of Business or Profession (PGBP) Capital Gains Exemption on Investment in Bonds Under Section 54EC, exemption from long-term capital gains tax was tied to the transfer of a “long-term capital asset”. Relying on the Supreme Court rulings, even short-term capital gains on depreciable assets were eligible for exemption if transferred from a block of assets Tax Deducted at Source Over 40 standalone sections navigate the intricate provisions surrounding TDS compliance Basis of Charge The concept…

INDIAN DISTILLERY GROUP Radico Khaitan is known among other brands for its distinctly Indian premium offerings to the world, including the Rampur Indian Single Malt Whisky and the Jaisalmer Indian Craft Gin that have over the years been much appreciated and gained a steady following. Last year, it also launched a new product—the Sangam World Malt Whisky in India, which has been getting acclaim across the world since its global launch in 2023, for its unique taste that is a fusion of premium malts sourced from Europe and the New World. Its name ‘Sangam’ is derived from the Sanskrit word ‘confluence’. The name symbolises a blend of Eastern tradition and Western whisky-making expertise. This is reflected in its taste as well, which is suited to please both Indian and Western…

Soon after she presented a record eighth consecutive Budget on February 1, Finance Minister Nirmala Sitharaman was interviewed by Rahul Kanwal, News Director of India Today and Aaj Tak, and Executive Director of Business Today; Siddharth Zarabi, Editor, Business Today; Sahil Joshi, Executive Editor, India Today; and Sakshi Batra, Senior Associate Editor, BTTV. Edited excerpts: Q: Are the tax sops an admission that urban consumption has not grown fast and, therefore, a masterstroke was needed? A: In the last three or four years, we have continuously engaged [with income tax payers]… and to ensure that their trust in the government is intact, we have taken several steps. In every Budget clear steps have been taken towards giving the sense that we respect taxpayers. And this is a continuation of that…

INDIA’S MANUFACTURING sector stands at a critical juncture. Initiatives like ‘Make in India’ and the Production-Linked Incentive (PLI) schemes have created a conducive environment for growth in sectors such as pharmaceuticals, electronics, and renewable energy. As global supply chains shift and new opportunities emerge, India is expected to corner a major share of the shift. But will this renewed push for manufacturing ensure that its share in the GDP surpasses the 20% mark? Rahul Jain, Managing Director & Senior Partner, and Head of BCG in India, spoke with Anand Adhikari about whether India is merely moving in the right direction or is genuinely poised to lead in global manufacturing. Edited excerpts: Over the last decade, we have seen ‘Make in India’ and PLI schemes aimed at encouraging manufacturing. But manufacturing’s…

LONG DRIVES AND smart play were the highlights of the Royal Ranthambore BT Golf’s Chandigarh edition. India’s oldest corporate tournament travelled to the Tricity—Chandigarh, Mohali, and Panchkula—last week as part of its silver jubilee year. Favourable weather and ideal conditions at the Panchkula Golf Club set the tone for the match, held on January 25. True to their reputation of producing talented sportspersons, Chandigarh, Mohali, and Panchkula delivered some of the longest drives recorded this season. Hartaj Pargat Singh, son of former India hockey captain Pargat Singh, drove the ball a massive 340 yards to win one of the spot prizes. Two other long drive prizes also went to participants who crossed the 300-yard line at Panchkula. This was the first time since 2022 that such distances were collectively recorded…

15.9% OVERALL HOLDINGS OF FOREIGN INSTITUTIONAL INVESTORS IN INDIAN LISTED FIRMS AS OF JANUARY 2025. THE FIGURE STOOD AROUND 16.3% AS OF JANUARY 2024 63 basis points IS THE JUMP WITNESSED BY 10-YEAR BENCHMARK US BOND YIELDS TO 4.53% FROM JANUARY 1, 2024 TO FEBRUARY 13, 2025. RISING US TREASURY YIELDS OFFER FIIs A SAFER AND MORE ATTRACTIVE ALTERNATIVE TO INVESTING IN RISKIER EMERGING MARKETS 17% CHINA’S SHANGHAI COMPOSITE INDEX GAINED IN THE PAST SIX MONTHS TILL FEBRUARY 14, 2025. HANG SENG ALSO RALLIED 32% DURING THE SAME PERIOD, WHILE THE BENCHMARK NSE NIFTY50 DECLINED 5% DURING THE SAME PERIOD…

NOT NOT SO LONG ago, budget airlines were the go-to choice for cost-conscious travellers. Affordable fares made air travel accessible to millions. But today, booking an air ticket—even on a low-cost carrier—feels like a premium experience, at least in terms of pricing. Whether last-minute travel, or pre-planned trips, airfares across budget airlines are soaring, often rivalling full-service carriers. From Mahakumbh in Prayagraj to the Coldplay music concert in Ahmedabad, and now the approaching summer holidays, spikes in airfares have become the norm rather than the exception. An airline ticket on the Delhi-Prayagraj route, which otherwise costs around ₹5,000, touched to ₹30,000-40,000 during the ongoing Mahakumbh. The Director General of Civil Aviation’s (DGCA’s) intervention to check the surge in airfare hasn’t made much difference, though the airlines said they flew more aircraft…

A Vision for Sustainable Growth Kerala’s economic development aligns with global best practices, emphasizing Environmental, Social, and Governance (ESG) principles. With a long-term vision of transforming into a trillion-dollar economy, the state is focused on integrating industry, environmental sustainability, and human development. The government’s proactive approach ensures quality infrastructure, an enhanced standard of living, and robust economic opportunities for its people. The state boasts a strong knowledge-based economy supported by a highly skilled workforce and industry-academia collaborations. This ecosystem fuels innovation, enhances productivity, and has positioned Kerala as a leader in e-Governance, startup incubation, and export preparedness. Recognized as a 'Top Achiever' in the Ease of Doing Business ratings by the Central Government, Kerala provides an ideal environment for businesses to thrive. Infrastructure and Connectivity Kerala’s extensive infrastructure plays a…

There has been asubstantial reliefto the middle class, with the nil-tax slab raised from Rs 7 lakh to Rs 12 lakh (reduced progressively over the years from Rs 2.5 lakh in 2014 to Rs 5 lakh in 2019 to Rs 7lakh in 2023), thereby boosting household consumption, savings and investment. In fact, tax slabs have been widened across the board in the new tax regime, providing relief to all categories of taxpayers, enabling more consumption and wealth creation. The Budget strikes a fine balance between fiscal discipline and economic growth, while equally focusing on improving the social wellbeing ofthe citizens of the country. It provides a comprehensive framework of reforms across six major domains including taxation, power sector, urban development, mining, financial sector and regulatory reforms, to promote sustainable, durable…

The Indian business ecosystem is witnessing a surge in astrotech startups, blending centuries-old traditions with cutting-edge technology. Legacy players like Drik Panchang, Clickastro, Astroyogi and AstroSage have donned the tech avatar, while new-age startups such as Astrotalk, Cosmic Insights and InstaAstro are redefining astrology for the techsavvy generation. What’s fascinating is how astrology, deeply rooted in Indian culture, is not just surviving, but thriving in the age of artificial intelligence. From AI-driven horoscope predictions to algorithm-powered kundali matching for marriages, the sector isn’t just keeping up with technology—it’s leveraging it to expand its reach and precision. The fusion of tradition and innovation is setting the stage for astrology’s next big evolution. Take for instance Astrotalk, an app-based platform providing on-demand consultation services to seekers of celestial divination. It first gained…

GROWING AWARENESS ABOUT healthier lifestyles and increasing instances of lifestyle-related diseases have opened up the world of over-the-counter (OTC) drugs for both patients and pharmaceutical companies. From headaches to a bout of acidity, patients turn to easily available OTC medications to alleviate common ailments. Add to that, the access to information through various social media platforms. According to the January 2023 edition of The Cureus Journal, an online medical journal, 60% of Indians engage in self-medication. Medications like analgesics (66.25%) and antipyretics (59.16%) are commonly used for ailments like fever and body aches. Typically, OTC drugs are those that are allowed to be sold without a doctor’s prescription. Countries like the UK, the US, and Australia have clear guidelines for the sale of OTC drugs, but India lacks such regulations. In 2022,…

THE UNION BUDGET 2025-26, the eighth one presented by Finance Minister Nirmala Sitharaman, unveiled a bonanza for the middle class by hiking the tax exemption limit to ₹12 lakhs and revised rates under the new income tax regime. At a time when the vagaries of external threats and a slowing urban consumption continue to plague the domestic economy, the tax cut is expected to put ₹1 lakh crore back into the hands of consumers. Sitharaman, in her Budget speech, spoke about ‘Sab ka Vikas’, or development for all, and aimed to stimulate balanced long-term growth of all regions. Invoking Telugu poet Gurajada Appa Rao’s verse ‘Desamante Matti Kaadoi, Desamante Manushuloi’, meaning, ‘A country is not just its soil, a country is its people’, the FM said the Budget focusses on…