The proposed 35% GST rate on sin goods like tobacco, cigarettes, and soft drinks is likely just the beginning, with a new cess expected to ensure the effective tax rate doesn't significantly reduce. The GST Council, led by Bihar's deputy CM, is working on recommendations, but final decisions have not been made yet.
Bank credit growth has slowed to 11.1% as of Nov 15, 2024, compared to 20.6% the previous year. Deposit growth also decreased, with banking system deposits rising by only 6.7% since March. Banks are liquidating govt bonds due to slower deposit growth. Retail lending and NBFC loans have similarly declined.
The rupee hit a record low of 84.73 against the dollar, driven by strong dollar demand and Trump's tariff threats to BRICS nations. Weaker-than-expected Q2 growth and global factors compounded the decline. RBI intervention limited further losses, but analysts predict continued pressure with potential geopolitical tensions impacting the rupee's value.
Domestic stock indices in India are preparing for RBI's monetary policy decisions after Q2 FY25 GDP growth slowed to 5.4%, the lowest in two years. The upcoming week brings crucial data releases, with market focus on the RBI MPC's interpretation of GDP data and their stance on rate trajectory.The proposed 35% GST rate on sin goods like tobacco, cigarettes, and soft drinks is likely just the beginning, with a new cess expected to e...
