Page 15 - Banking Finance November 2022

ROUNDUP

means the total tax due in this case is per cent higher than the net collec- privatisation of two lenders, finance
to the tune of Rs. 20,000 crore. tions for the corresponding period of minister Nirmala Sitharaman said.
last year, the ministry said, adding that
"We've already shown that we are very
India set to become the this was 37.2 per cent of the net direct committed to the divestment process.
tax Budget Estimate for FY23. For instance, the LIC public issue wasn't
third largest economy by
The ministry said refunds amounting to easy, but we did it," Sitharaman told.
2029: SBI Rs 1.19 trillion have been issued till "We are committed and will go ahead
After surpassing the UK as the fifth September 8 this fiscal year, 65.3 per with the banking sector reforms, and
largest economy, India is likely to get cent higher than the refunds issued for even the Cabinet has given clearance.
the tag of the third largest economy the same period in FY22. We have mentioned it in the budget,
by 2029, according to an assessment and we shall take if forward.
Net corporate tax and personal income
by the State Bank of India's Economic
tax collections, after adjusting for re- The government plans to divest its
Research Department (ERD).
funds, grew 32.7 per cent and 28.3 per stake in two public sector banks. NITI
This is a movement of seven places cent refunds, respectively, the state- Aayog, the government's policy and
upwards since 2014 when India was ment said. planning platform, had earlier recom-
ranked the 10th largest economy. mended privatising the Central Bank of
"India should surpass Germany in 2027 Demat accounts surpass India (CBI) and Indian Overseas Bank
and most likely Japan by 2029 at the (IOB).
100 million for first time
current rate of growth. This is a re-
The country's demat account tally
markable achievement by any stan- Forex reserves cover of
topped the 100 million-mark for the
dards," said Soumya Kanti Ghosh,
first time. Over 2.2 million new ac- imports falls to 8.7
Group Chief Economic Advisor, SBI.
counts -- most in four months -- were
According to the ERD, the global share months
opened recently, taking the cumula-
of India's GDP is now at 3.5 per cent India's foreign exchange reserves at
tive figure to 100.5 million, according
against 2.6 per cent in 2014 and is $532.9 billion as on October 7, 2022
to data released by depository firms
likely to cross 4per cent in 2027, the were equivalent to 8.7 months of im-
National Securities Depository Limited
current share of Germany in global ports projected for 2022-23, according
(NDSL) and Central Depository Services
GDP. The ERD noted that in the com- to Reserve Bank of India's latest
(CDSL).
ing days India is likely to be the benefi- monthly bulletin.
India's demat account tally was 40.9
ciary as China slows down in terms of "So far, in 2022-23, the reserves have
million in March 2020 just before the
new investment intentions. been depleted by $74.4 billion; how-
outbreak of Covid-19 in the country.
ever, most of the depletion was on
Direct tax mop-up jumps The sharp surge in the market, greater account of valuation loss due to the
lean hours due to the lockdown and
appreciation of the US dollar against
35.5% to Rs 6.48 trillion in mobility restrictions, shift to the work-
major currencies," per the article
FY23: Govt from-home set-up, ease of account "State of the Economy".
opening, increase in mobile and data
The provisional gross direct tax collec-
penetration, and a drop in brokerage At end of December 2021, foreign ex-
tions for FY23 till September 8 stood at change reserves cover of imports (on
rates have underpinned this growth.
Rs 6.48 trillion, which is 35.5 per cent
balance of payments basis) declined to
higher than the same period last year, 13.1 months from 14.6 months at end-
Govt committed to bank-
the Finance Ministry said in a state-
September 2021, per RBI's 'Half Yearly
ment. ing reforms: FM Report on Management of Foreign
"Direct tax collections, net of refunds, The Centre will go ahead with banking Exchange Reserves: October 2021 -
stand at Rs 5.29 trillion, which is 30.2 sector reforms that envisage March 2022'.
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