GST kitty

Goods and services tax (GST) collections rose 11.6% in 2023-24, less than the revised aim of 12.7% in the Budget 2024. While the growth is also significantly lower than the post-pandemic surge of 30.5% recorded in FY22 and 21.9% in FY23, it has surpassed the nominal gross domestic product (GDP) growth of 9.1%. This suggests even with a moderation, the collections may be considered strong. GST collections have become one of the major sources for the government's coffers in recent years and a double-digit growth may keep its finances out of stress.

Corporate stress

The proportion of corporates with poor debt-servicing capabilities (i.e. operating profit less than interest outgo) has reached its lowest level in nearly a decade, Mint reported, citing an analysis of 3,000 listed firms by India Ratings and Research. Around 12% of large businesses (those with annual revenues exceeding ₹500 crore) were classified as stressed in the quarter ended December. However, the stress is down from the peak of 39% observed in the first quarter of FY21.

Price cuts

₹1,764.5: That's the cost of a 19-kg commercial cooking gas cylinder in the national capital after a price cut of ₹30.5 earlier this week. LPG prices have been lowered by ₹30.5-32.0 across the four metros as political climate heats up ahead of the General Elections. The cut has more than reversed the hike announced on 1 March and puts the price at the lowest since the beginning of the year. The reduction in prices may come as a relief for hotels and restaurants, the major consumers of commercial LPG cylinders.

Strong manufacturing

India's manufacturing PMI improved to 59.1 in March from 56.9 in February, indicating stronger growth of new orders and revived job creation. New orders experienced the fastest growth rate in nearly three-and-a-half years during March. The last time such a reading was recorded was in February 2008 when the manufacturing PMI had reached a high of 59.5. New export orders, which increased at the fastest pace since May 2022, reflected better sales to Africa, Asia, Europe and the US, the survey said.

Capex plans

India Inc. announced ₹11.3 trillion worth of new projects during the January-March quarter, two times higher than the figure in the December quarter, provisional data from the project-tracking database of the Centre for Monitoring Indian Economy (CMIE) showed. However, the overall value of new projects for the fiscal year 2023-24 experienced a decline of nearly 31%, following two consecutive years of substantial growth. The decline can largely be attributed to the high base of the previous year.

PV drives

4.23 million: That's the number of passenger vehicles sold in India in FY24, a Mint report said. The sale of passenger vehicles crossed the 4 million-mark in a year for the first time in a year, driven majorly by rural India. This was a 8.7% rise over 3.89 million unit cars sold in the previous year. The strong sales come despite a fall of 12% decline in demand for hatchbacks, which have historically dominated car purchases in rural areas, while SUVs experienced the sharpest growth, with a 28% increase.

Startup funding

The Indian tech startup ecosystem saw a decline in venture capital funding in the first three months of 2024, reversing the moderate growth observed over the preceding three quarters. Indian tech startups raised $2 billion in the quarter ended March, a decrease from $2.3 billion in the previous quarter, data from the market intelligence platform Tracxn reveals. In addition, the number of funding rounds plummeted to a three-year low. Despite this decline, the quarter saw the emergence of two new unicorns, Perfios and Ola Krutrim.

Chart of the week: Donor loyalty

Many companies buying electoral bonds on multiple occasions did not consistently support a single party, a Mint analysisof the data released by the Election Commission of India showed. The biggest beneficiary, the BJP, had at least 362 distinct corporate donors, with only 43 of them being repeat loyal donors.