Latest news with #RajivMemani
Hans India
3 days ago
- Business
- Hans India
GST reforms as ‘Diwali gift' major step towards improving tax efficiency
New Delhi: The announcement of next-generation GST reforms as a 'Diwali gift' is a major step towards improving tax efficiency, enhancing compliance, and simplifying processes, according to industry chambers. These reforms will not only reduce the tax burden on citizens and businesses but also boost the ease of doing business, stimulate domestic consumption, and attract greater investments. 'Equally noteworthy are the government's continuing efforts to modernise regulations and streamline approvals, creating a truly enabling environment for enterprise growth,' said Rajiv Memani, President, CII. The decision to present a bill in Parliament on decriminalising minor offences, along with the constitution of a dedicated taskforce for next-generation reforms to align existing laws with the needs of the 21st century, will give a major boost to industry by reducing compliance costs, removing operational bottlenecks, and fostering a climate of trust, innovation, and competitiveness, he mentioned. CII also applauded the heightened focus on strategic sectors — the push for Made-in-India semiconductor chips by year-end underscores India's emergence in global tech manufacturing, while the Sudarshan Chakra Mission, energy self-reliance, and space capabilities, including the plan for an indigenous space station, signal a transformative leap in indigenous innovation. 'CII stands ready to work closely with the government and stakeholders to advance these reforms, facilitate industry participation, and ensure that India's growth story remains robust, inclusive, and globally competitive,' said Memani. The apex industry chamber commended the Prime Minister's bold and forward-looking roadmap towards achieving Viksit Bharat by 2047, anchored in sustained reforms and a resilient Atmanirbhar philosophy. With emphasis on self-reliance, innovation, and citizen empowerment, the Prime Minister underscored India's evolution from dependence on others to becoming a confident, technologically advanced, and economically robust nation, said CII. MSMEs, as the backbone of India's economy, stand to gain significantly from these measures. Increased access to talent, targeted incentives, and a stronger domestic manufacturing ecosystem will enable them to scale, innovate, and integrate more deeply into global value chains.
Indian Express
01-08-2025
- Business
- Indian Express
Signs of loan growth picking up in June as banks pass on RBI's big-bang rate cut
Lending by Indian banks picked up some pace in June after the Reserve Bank of India's (RBI) surprise 50-basis-point (bps) rate cut early in the month was fully passed on to borrowers, according to latest data from the Indian central bank. As per data released on Thursday by the RBI, new loans given by Indian banks in June were priced 58 bps cheaper compared to May at 8.62 per cent on a weighted average basis, indicating the RBI's larger-than-expected interest rate cut — which saw the Monetary Policy Committee (MPC) bring down the policy repo rate to 5.5 per cent on June 6 — was passed on, or transmitted, completely to prospective borrowers. The transmission of the June rate cut was far greater than in previous months. In the current easing cycle, the MPC first cut interest rates in February, bringing down the repo rate by 25 bps to 6.25 per cent. This was followed by another similar cut in April. However, in response to that cumulative 50 bps reduction in the policy rate, banks reduced the weighted average lending rate on new loans by just 13 bps — from 9.33 per cent in January to 9.2 per cent in May — despite the central bank infusing record amounts of liquidity to help lubricate the monetary transmission. The passage of reduced policy rates to borrowers has been a key concern for policymakers. In an interview to The Indian Express in late June, Nagesh Kumar – one of the three external members on the RBI's MPC – had said transmission of the 25 bps rate cuts had been 'a bit slow'. Two weeks later, Confederation of Indian Industry President Rajiv Memani told this paper the RBI had done its job and that availability of capital was not an issue for industry anymore. The reduction in banks' lending rates has seemingly found some takers, with separate data released by the RBI on Thursday showing credit growth picked up some pace in June as loans given rose 10.4 per cent year-on-year (YoY) as on June 27, after excluding the impact of the July 2023 merger between HDFC Bank and Housing Development Finance Corporation. At 10.4 per cent, the latest loan growth figure is higher than the 9.9 per cent recorded at the end of May. In their monthly State of the Economy article, published on July 23, RBI economists had noted that the rise in credit growth to 10.4 per cent was primarily due to a 'strong momentum effect'. To be sure, at 13.9 per cent, loan growth was higher in June 2024. Furthermore, policymakers will want to see durable signs of loan growth picking up. However, credit growth by banks has been steadily weakening since November 2023, when it stood at 17.8 per cent, after the RBI clamped down heavily on personal loans extended by banks and non-banks on concerns that the boom in this segment, particularly in unsecured loans, was unsustainable. The slide in loan growth has coincided with a highly volatile global environment, which adversely impacts investment plans of the private sector — and in turn, their borrowing decisions. These concerns came to a head in May, when credit growth slipped below 10 per cent for the first time since March 2022. Non-food credit, meanwhile, was up 10.2 per cent as on June 27, compared to 9.8 per cent at the end of May and 13.8 per cent in June 2024. As per the RBI's latest sectoral data, lending to micro and small enterprises as well as individuals was robust. As on June 27, loans extended by banks to micro and small enterprises were up 19.3 per cent YoY compared to a growth of 13.7 per cent as on May 30 and 11 per cent in June 2024. This helped push up total loans to industry — which also include medium and larger enterprises — by 5.5 per cent, up from 4.9 per cent in May but lower than 7.7 per cent a year ago. Personal loan growth also picked up to 14.7 per cent YoY from 13.7 per cent at the end of May and wasn't too far off from the year ago growth rate of 16.6 per cent, driven by vehicle, housing, and unsecured loans. Siddharth Upasani is a Deputy Associate Editor with The Indian Express. He reports primarily on data and the economy, looking for trends and changes in the former which paint a picture of the latter. Before The Indian Express, he worked at Moneycontrol and financial newswire Informist (previously called Cogencis). Outside of work, sports, fantasy football, and graphic novels keep him busy. ... Read More
Hans India
07-07-2025
- Business
- Hans India
Viksit Bharat target needs 10% GDP growth: CII chief
New Delhi: CII president Rajiv Memani said India requires a 10 per cent average nominal GDP growth annually to achieve its Viksit Bharat vision by 2047. He highlighted that the interim trade pact with the US will remove uncertainty and provide access to a larger market for Indian firms. India's economy is projected to grow at 6.4-6. Nominal GDP is the total value of goods and services produced in a country, measured using current market prices, without adjusting for inflation, unlike real GDP. In an interview, the newly-appointed president of the industry lobby observed that the interim trade pact between India and the US, expected to be finalised shortly, will remove the cloud of "uncertainty", providing access to a bigger market for Indian firms, especially in labour-intensive sectors. The trade pact between the two nations will also pave the way for technology transfers, more joint ventures and partnerships, the CII president said. "So, I think first is that the uncertainty which was there, I think that will go away. People will get a clearer direction of what will happen in the future, and I think that has a very positive impact," he said. India's economy is expected to grow 6.4-6.7 per cent during the current financial year driven by strong domestic demand, even as geopolitical uncertainty poses downside risks, according to CII. "We have a very good position macro-economically, things are very stable. "Our institutions, whether it's the capital markets, whether it is RBI, whether it is banks, are in good shape, corporate balance sheets are looking stronger," the CII president said about India's prospects. The Reserve Bank has retained India's GDP growth projection for the current fiscal ending March 2026 at 6.5 per cent, saying the country's economy presents a picture of strength, stability and opportunity in the backdrop of global uncertainty. The FY26 growth projections are compared with the 6.5 per cent economic growth recorded in the 2024-25 fiscal year.
Time of India
06-07-2025
- Business
- Time of India
'Investors have faith in India, capex happening'
Rajiv Memani Rajiv Memani, chairman and CEO of consulting firm EY India has taken over as the new president of CII (Confederation of Indian Industry) at a critical juncture for India Inc. In an interview to TOI, Memani says the overall health of businesses is not bad and he expects a reasonably strong bounce-back in growth. Excerpts: Some numbers point to a slowdown in Q1. What is your assessment of current economic situation? There are some sectors where the growth has been good. Some sectors have been impacted in terms of profitability due to the geopolitical situation, the global trade-related uncertainty and the earlier onset of monsoons. But the overall health of businesses is not bad. Overall GST collection in the first quarter is still 11-12%, it's not bad. In the low-to-middle income segments in urban areas, there is some pressure. But outside of that it's okay. Rural consumption is becoming more robust. With lower interest rates, lower inflation, more crop sowing, there is expectation that the bounce-back should be reasonably strong and we should be looking at the GDP numbers that we had estimated. Tax incentives were announced in Budget. Is there evidence of higher spends by consumers, especially middle class? It is too early to say. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 境界のないゲームを発見する BuzzDaily Winners ゲームをプレイ Undo The pattern of consumption is changing. So, sometimes traditional measures don't fully indicate where consumption is happening. People are spending much more on technology, much more on experiences than in traditional areas. But I am sure that in some form or shape consumption will increase whether it's in travel technology or in the traditional areas. What about private investment? Private investment has been growing. There's a general myth that private investments are not happening. It is happening. If you look at every data, after 2020, for a year or two before Covid and for a year or two after that it was slow. But from 2022-23 onwards private sector investments have picked up. There are three or four things, which are impacting decisions. One is global uncertainty; second, demand in some areas has not been as strong as anticipated, time taken for approvals for land, environmental clearances in states and lack of skilled manpower for large projects in newer areas. If I was planning a capex of, say, Rs 1,000 crore, given the uncertainty, I will probably reduce it to Rs 600-700 crore. But, the fundamental focus on growth, fundamental belief in India, strength in the balance sheet, seeing what's happening in the capital markets, lower interest rates, that will make investments come through. What is your expectation on US tariffs? Do you expect a deal? The engagement has been very intense. The level of detailing is very high. Not everyone is going to probably get the best deal. At an overall level, the industry would benefit and is keen to ensure that India enters into a bilateral trade agreement and not wait for 26% duty to come through. How is industry bracing for tariff cuts as govt is working on multiple FTAs? We are trying to see how we can mitigate the non-tariff barriers as part of the FTA talks. There are a lot of complementarities with the current set of countries with which FTAs are being signed. Indian industry is very clear that on an average duties could come down by 5-20%. If that is the gap, there has to be much more focus on competitiveness, including internal competitiveness through investment in R&D and other areas. The other is in terms of factors of production such as land, or energy, logistics and cost of capital. CII has set up a committee to address the issue of competitiveness. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
06-07-2025
- Business
- Economic Times
Private investments flat, but pickup in demand seen: CII Chief Rajiv Memani
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: Private investment stayed flat in the last three-six months as companies are finding it challenging to envisage manufacturing amid an uncertain tariff structure, though it is currently seeing a revival in line with an improvement in the demand environment , said Rajiv Memani, president, Confederation of Indian Industry (CII)."I won't say it has gone down, but it is kind of flat in the last three to six months. But we can see an acceleration happening as the demand environment picks up especially with the interest rate reduction," Memani told ET, adding that land and environment approvals should also be firms announced new projects worth ₹3.5 lakh crore in the quarter ended June, sharply rising from ₹1.4 lakh crore a year earlier, according to the Centre for Monitoring Indian Economy. However, it was the lowest level of private investments in four quarters. On urban consumption, Memani said there is some slowdown, especially in the lower-to-middle-income noted that India previously used to take a long time for inking free trade agreements (FTA) with the West. That scenario has changed, with all nations including India presently evaluating trade pacts with trusted partners."I think it's a positive change, but it is a big change. We are signing up with large countries where we have complementarity of with countries we are competing with," said Memani, adding such pacts also create a bigger market opportunity besides generating interest from micro, small and medium issues that India should be wary of while negotiating FTAs with developed countries, he said, "You have to be trusting and verifying go in step by step rather than trying to boil the ocean in one go."Insisting that India has to create efficiency by unleashing further reforms on land, logistics, energy, and labour productivity, even at the state level, he also called for more investments in R&D. "We need to act with more speed and look at either reforms and allocations towards R&D and also some of the production linked incentive (PLI) schemes or schemes like PLI which require some initial support," Memani how the industry is preparing to deal with shocks such as China suspending rare earth exports, he said companies are reducing their financial risks, taking lesser debt, and relying more on industry chamber is assessing the extent of India's reliance on global supply chains. Citing the instance of compressors, Memani said the critical parts are imported and that CII is engaging with the government on ways to address the issue and areas where PLI support is has recently recalled its engineers and technicians from the Indian factories of Taiwanese contract manufacturing giant Foxconn and Memani said the Centre has been cautioning the local industry that such things can happen, urging it to be prepared. The government, he noted, has been proactive and offered PLI said CII's suggestions on goods and services tax (GST) reforms include rate rationalisation and slab structuring, subsuming all taxes in the overarching framework and input tax credit which impact industry competitiveness. "I think it's very important that we find ways and means to bolster the income and resilience of the bottom 30%," Memani reform pertains to assessment audit processes wherein states have their own separate audits with each raising different issues and asking different sets of information. "What we have recommended is that there should be a standard operating procedure. Secondly, can we just do the audit once at least for the MSMEs. So these are newer issues that are coming up," he said. The last GST reform is technology-linked where for smaller companies, CII has recommended lesser compliances."Within some sectors, there are areas where we have dependencies in industry is trying to see how the gross value add can improve. So if you look at electronics, how can you bring it up to late 20% or early 30% in the next five-six years," Memani said, pointing to disabilities in certain sectors. The CII has set up an AI Centre of Excellence to help companies become more efficient. "We are seeing early signs in some industries-information technology and financial services. I think there is a clear need that India should be the AI capital of the world," said Memani.
