MLAs facing criminal cases

Over 37% of the MLAs elected in the just-concluded assembly elections in five states declared at least one criminal case against them, an analysis of data compiled by the Association for Democratic Reforms (ADR) showed. 

Telangana had the highest incidence, with 82 of 119 MLAs having such a record—an increase from 73 in 2018. About half the MLAs are accused of "serious" crimes.

Reserves rebound

On 24 November, India's foreign exchange reserves rebounded to $597.9 billion, up from the recent low of 20 October but down since July levels. The reserves have displayed a pattern of fluctuations. 

The recent uptick is attributed to a decline in the return on the 10-year US government bond, prompting foreign institutional investors (FIIs) to reinvest in India. 

This eliminates the need for the Reserve Bank of India (RBI) to tap into its reserves to safeguard the rupee, according to a Mint explainer.

New ventures

1.6 million: That's the number of active companies in India as of October, data from the ministry of corporate affairs showed.

Over 96,800 companies have been formed in the current financial year so far. The surge was led by service sector businesses, which accounted for 42% of all new incorporations in the month of October.

Manufacturing firms accounted for 14% of the new registrations. India had 1.53 million companies as of March 2023.

Bull run

Investors gained over ₹11 trillion in the first four trading sessions in December. Both frontline indices BSE Sensex and the Nifty 50 scaled new highs in every session until Wednesday, following strong macro numbers and the BJP's win in three of the five states that held assembly elections last month.

Foreign portfolio investors (FPIs), too, turned bullish. However, the indices lost again on Thursday, to decline 0.19%.

Debt deluge

In 2022-23, annual borrowings by households were 5.8% of GDP, the highest since 2006-07, a Mint analysis showed. There are concerns about the ability of households to service this debt.

While not all of this borrowing is unsecured, the Reserve Bank of India's (RBI) recent alert over the increase in small, unsecured personal loans and growing delinquencies among small borrowers is a wake-up call.

GST notices

₹1.1 trillion:That's the amount of GST dues for which71 show cause notices have been issued in FY23, and in FY24 till October, to online gaming companies, minister of state for finance Pankaj Chaudhary told the Rajya Sabha this week.

Since the notices are pending adjudication, the respective GST demand is not yet determined, the minister said. The 28% tax rate on online gaming firms, casinos, and horse racing clubs has been welcomed with anxiety in the sector.

Expansion plans

UltraTech Cement's recent acquisition of Kesoram Industries' cement division is a strategic move towards achieving its long-term target of 200 million tonnes (mt) capacity, a Mint report explained.

This deal not only provides UltraTech with entry into Telangana but also reinforces its presence in the southern and western markets. Additionally, through another acquisition, the company secured Burnpur Cement's 0.54 mt cement grinding unit for ₹170 crore, facilitating expansion into Jharkhand.

Chart of the week: Air fair?

Under the draft national aviation hub policy, the government has proposed to introduce differential charges for Indian and foreign airlines at airports in the country, Mint reported.

The policy would require foreign airlines to pay more than their Indian counterparts for landing, parking, and ground handling, among others.