Large states revenue growth to see uptick at 7-9 pc this fiscal: Crisil Ratings
Kolkata, Jul 29 (PTI) Crisil Ratings on Tuesday said that revenue growth of large states is likely to witness a marginal uptick at 7-9 per cent to Rs 40 lakh crore this financial year.
In its research report, the rating agency said this is slightly higher than 6.6 per cent notched up in the last fiscal, though lower than the decadal growth of around 10 per cent.
The research report said the revenue growth of 18 large states, which account for over 90 per cent of the gross state domestic product, is likely to witness an uptick at 7-9 per cent on-year this financial year, amounting to around Rs 40 lakh crore.
The increase in revenue growth will be supported by steady GST collections and devolution by the Centre, the report said.
Maharashtra, Gujarat, Karnataka, Tamil Nadu and West Bengal are among the 18 large states.
The states' revenue streams comprise two components, namely own tax revenue and transfers from the Centre.
The own tax revenue of these states is expected to grow around eight per cent this financial year, driven by GST and liquor tax, with a modest growth in petroleum tax, the report said.
Grants from the Centre are expected to recover and grow by three to four per cent due to higher outlay of centrally sponsored schemes.
The calculations assume India's nominal GDP growth of nine per cent this fiscal. However, global uncertainties, domestic consumption patterns and inflationary trends can alter these estimates, the report said.
To ensure sustainable revenue growth, the states will have to focus on expanding their own revenue and improving collection efficiency, the report added. PTI DC BDC
view comments
First Published:
July 29, 2025, 16:45 IST
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Deccan Herald
8 minutes ago
- Deccan Herald
Karnataka to complete AI workforce impact survey in a month
Karnataka IT Minister Priyank Kharge on Tuesday said the state is talking to companies to evaluate the impact of AI on workforce and the assessment is expected to be completed in about a month. The comment assumes significance in the backdrop of TCS' decision to slash 12,000 jobs this year. The unexpected move by India's largest IT services company has sent fresh tremors in the tech industry, that has been battling global macroeconomic woes and geopolitical uncertainty. On the Karnataka State IT/ITeS Employees' Union reportedly seeking action against TCS over the job cuts, Kharge said Karnataka does not recognise unions in IT sector. He, however, added that "if there are concerns raised by public and people, it is our responsibility to address it". "We are talking to companies to ask them what exactly we can do to ensure our HR or talent is most employable. We are getting a survey done with the companies on AI affect in workforce," Kharge told PTI on sidelines of SAP Labs India event. He added that the process is expected to be completed in about a month. It is pertinent to mention here that India's top IT services companies have delivered single-digit revenue growth in Q1 FY26, capping off a somewhat-sobering June quarter as macroeconomic instability and geopolitical tensions have weighed on global tech demand and delayed client decision making.
The Hindu
8 minutes ago
- The Hindu
Central govt. has released over ₹8,000 cr. for Chennai Metro Rail's phase II project
The Centre has released more than ₹8,000 crore for the construction of the Chennai Metro Rail's upcoming phase II project. This year, the Centre has so far allocated ₹3,000 crore for the project. The fund for the phase II project, ₹63,246 crore, is drawn from the Centre, State, and bilateral and multilateral loans. Minister of State for Urban Affairs Tokhan Sahu, while responding to a question in the Lok Sabha about the funds allocated and released for the implementation of Metro Rail projects in the country, shared the funds released for Chennai Metro Rail project as well. The Centre released ₹5,219.57 crore in 2024-25 for the phase II project, whose network will connect major parts of the city, with its three corridors — Madhavaram to SIPCOT, Light House to Poonamallee, and Madhavaram to Sholinganallur. For 2025-2026, the Centre has allocated ₹8,445.8 crore. Of this, ₹3,000 crore has been released. Meanwhile, the phase II project has achieved a physical progress of 44.33%. In response to another question by AIADMK MP M. Thambidurai in the Rajya Sabha, Mr. Sahu said, 'The Central government has approved Chennai Metro Rail's phase-II project as 50:50 Joint Venture Project, for 118.9 km at a cost of ₹63,246.4 crore in October 2024. Physical and financial progress of the project as on June 30, 2025, is 44.33% and 40.43% respectively.' Chennai Metro Rail officials are preparing to inaugurate the first elevated stretch of corridor 4, from Poonamallee to Porur, by December this year. The next stretch is expected to operate in 2026.
&w=3840&q=100)
Business Standard
14 minutes ago
- Business Standard
Narayana Health to add 2,000 beds, expand insurance schemes in FY26
Bengaluru-headquartered hospital chain Narayana Health aims to grow its domestic revenue by 10 per cent in FY26, in line with industry benchmarks, a senior company official said. Managing director and chief executive officer Emmanuel Rupert told Business Standard: 'Last fiscal we did about Rs 4,349 crore in India revenue and we want to grow at a rate at which the healthcare industry is growing — over 10 per cent. We look to be on the same momentum and revenue.' Sandhya J, chief financial officer at Devi Shetty's Narayana Health, said the company plans to scale up its Aditi and Arya health insurance schemes in Karnataka and West Bengal. 'The entire healthcare ecosystem is failing in trust. We are on the path to solve the trust deficit and episodic interference of fund transfer. On the back of this, we aim to double down on our insurance scheme and build a strong customer base in Bengaluru, Shivamogga, Mysore, and Kolkata.' Commenting on efforts to improve profit after tax (PAT), which declined 2.3 per cent to Rs 196 crore in Q1 due to increased investments in integrated care and other financial costs, Sandhya said PAT optimisation will improve as the India business grows. Some clinics have started breaking even, reducing losses from the health insurance schemes. 'Over a period of time, we will be able to keep the losses in check and expand margins in the domestic business. PAT should improve. Finance cost will continue to increase due to the Rs 3,000 crore project to add 2,000 beds across India over the next three years. The integrated care dilution will continue over the next year but we hope to maintain a decent level of cash burn.' She added that a large part of the funding will come through bank borrowings and non-convertible debentures (NCDs) as needed. So far, Rs 800 crore has been raised for projects already signed. The CFO noted that about Rs 1,500–2,000 crore in loans might be raised in this fiscal, depending on upcoming project developments. 'We are exploring opportunities to expand, some might be inorganic as well. Borrowings will be linked to the construction progress of our current projects.' During the quarter, revenue from international patients declined, primarily due to reduced footfall from Bangladesh. Narayana expects this trend to continue, given ongoing geopolitical tensions. 'The goal is to keep focusing on domestic growth and see how well we can push the numbers. Eventually, in the next two to three years, we believe that revenue contribution from Bangladesh will go down to zero. Not to miss, the country is building its own healthcare infrastructure.' Looking ahead, Narayana expects its integrated care business to account for a larger share of overall revenue. At present, cardiac sciences and oncology contribute approximately 33 per cent and 16 per cent, respectively. On Tuesday, the Clinical Research team and Medha AI developed an artificial intelligence (AI) model that predicts left ventricular ejection fraction from ECG images, enabling early heart failure detection and improved diagnostic access. 'All along we have waited for Western countries to develop these technologies. Today we are developing this because this country is blessed with phenomenally skilled, passionate software engineers and AI experts. This is our strength. We have made massive investments in building the digital platform, which is far ahead of all the other hospitals. With the great combination of a digital platform and the AI tool, healthcare will never be the same,' said Devi Prasad Shetty, chairman and founder of Narayana Health, at a media briefing. The company said that trained on over 100,000 ECG images paired with echocardiogram reports, the model showed strong predictive performance. With external validation across 14 tertiary centres and over 57,000 patients, it identified 97 per cent of individuals with severely reduced ejection fraction (≤35 per cent).
