Point-wise News Summary

1. Union Budget 2025:

The upcoming Union Budget is expected to prioritize tax reforms aimed at simplifying the existing tax structure, which will benefit both individuals and corporations.
Key proposals may include increased tax deductions for the middle class and incentives for businesses to encourage investment and job creation.
Significant allocations are anticipated for critical sectors such as agriculture, rural development, healthcare, and education, reflecting the government’s commitment to inclusive growth and social welfare.

Analysts predict a 25 basis point cut in the policy repo rate during the February monetary policy review, aimed at stimulating economic growth amid global uncertainties.
The Reserve Bank of India (RBI) is expected to balance the need for growth with inflation control, emphasizing the importance of fiscal consolidation alongside monetary policy measures to ensure sustainable economic recovery.

The banking sector is currently facing challenges with high credit-deposit ratios, which pose systemic risks and indicate that banks are increasingly relying on short-term borrowings to meet liquidity needs.
Regulatory bodies are urging banks to adapt to tighter liquidity coverage ratio (LCR) guidelines, which require banks to maintain a minimum level of high-quality liquid assets to withstand financial stress.

The government is planning to enhance corporate data management systems to better detect regulatory breaches and improve overall corporate governance practices.
Initiatives may include funding workshops and conferences aimed at educating corporate leaders on compliance, ethical practices, and the importance of economic substance in business operations.

The HSBC India Summit will feature discussions with leading fund managers who will share insights on alternative investments and market strategies in the current economic landscape.
Participants will be encouraged to stay informed about market trends, emerging sectors, and investment opportunities, which are crucial for making informed financial decisions and maximizing returns.

An interview with prominent art collector Kiran Nadar will explore the evolving forms of museums and their societal impact, emphasizing the role of art in cultural preservation and education.
The discussion will highlight how contemporary Indian artists are using their work to explore personal histories, societal issues, and gender roles, thereby fostering a deeper understanding of cultural narratives.

Experts are calling for a comprehensive organizational revamp of India’s banking sector to address persistent issues such as low deposit growth and rising non-performing assets (NPAs).
Proposed reforms may include a shift towards a leaner banking architecture, with clearly defined value-creation pillars that focus on customer service, risk management, and technological innovation to enhance operational efficiency and competitiveness.

As of Q3 FY25, JLR’s wholesale volume growth was reported at 3% year-on-year, with realization falling to £71,705 from £73,020.
Tata Motors received a cumulative Production-Linked Incentive (PLI) of ₹351 crore in Q3 FY24 for commercial and passenger vehicles, despite facing a flat EBIT for the CV segment and a 22% decline for the PV segment.
The average monthly per capita consumption expenditure (MPCE) disparity between urban and rural areas stood at 70%, with Jharkhand, Chhattisgarh, Assam, Maharashtra, Odisha, and Gujarat having the highest gaps in 2023-24.