Page 17 - Banking Finance December 2024

ROUNDUP

According to the Ministry of Home Af- 2.52 lakh crore in 2014, to Rs 9.62 lakh ambitions for the next decade and
fairs (MHA), which monitors crore in 2024. beyond with India aiming to become a
cybercrime at the central level through A source said that 76 per cent of in- USD 30 trillion economy by 2047, from
the Indian Cybercrime Coordination come tax collected is from those earn- the current USD 3.6 trillion. India is
Centre (I4C), digital arrests have of late ing above Rs 50 lakh a year. This has currently the fifth largest economy.
become a prevalent method of digital led to reduced tax burden on the "India is poised to be the fastest-grow-
fraud. Many of those carrying out middle class. ing major economy over the next three
these frauds are based in three con- years and the third largest globally by
tiguous southeast Asian countries: Also, the increase in number of people
filing ITRs with annual income above 2030. Its 2024 entry into JP Morgan's
Myanmar, Laos and Cambodia.
Rs 50 lakh is due to "strong anti tax Government Emerging Market Bond
evasion and black money laws imple- Index could provide additional govern-
Five-fold increase in ITR fil- mented by the Modi government", the ment funding and unlock significant re-
ers with income above Rs. source added. sources in domestic capital markets.
50L in 10 years The source further said that in 2014, This is only a first step --investors will
individuals earning above Rs 2 lakh a continue looking for improved market
Tax burden on individuals earning access and settlement procedures,"
year had to pay income tax. However,
less than Rs 20 lakh a year, broadly
because of various exemptions and S&P said.
described as middle class, has come deductions announced by the Modi
down during the 10 years of Prime government, individuals earning up to
Minister Narendra Modi-led govern- Rs 7 lakh need not pay any taxes. Can't accept FDI bundly,
ment, while there has been a substan- need safeguards: Finance
tial increase in taxes paid by those India poised to be third-
having annual income above Rs 50 Minister
lakh, sources said. largest global economy by India will place restrictions on foreign
As per the income tax return (ITR) fil- 2030: S&P direct investment (FDI) in the national
ing data, the number of individuals India is poised to be the third largest interest to ensure safeguards because
showing annual income of over Rs 50 global economy by 2030 but rising of its location in a highly sensitive
lakh has gone up to over 9.39 lakh in population presents mounting chal- neighbourhood, Finance Minister
2023-24, a five-fold jump from 1.85 lenges in basic service coverage and Nirmala Sitharaman said during an in-
lakh in 2013-14. Also, the income tax growing investment needs to maintain teractive session at the Wharton Busi-
liability of those earning above Rs 50 productivity, S&P Global Ratings said. ness School in the US.
lakh has gone up 3.2 times, from Rs It said emerging economies have high "I cannot blindly accept FDI simply

because we need investment, unmind-
BRICS nations agree on financial settlement in local ful of where it is coming from. We
want business, we want investment,
currencies but we also need some safeguards,
BRICS nations agreed to strengthen trade and financial settlement in local because India is located in a
currencies, study feasibility of an independent cross-border settlement and neighbourhood that is very, very sensi-
depositary infrastructure, and a BRICS reinsurance company. tive," Sitharaman said.
The leaders also agreed to jointly develop the New Development Bank into The finance minister's comments came
a new type of multilateral development bank (MDB) in the 21st century
ahead of the bilateral meeting be-
and supported further expansion of the BRICS-led bank's membership.
tween Prime Minister Narendra Modi
The declaration issued after the 16th BRICS Summit here, said that BRICS and Chinese Premier Xi Jinping on the
members would explore the possibility for joint activities in the field of digi- sidelines of the Brics Summit in Kazan,
tal infrastructure to ensure the integrity, stability of the functioning and se- the capital of the Republic of
curity of national segments of the Internet. Tatarstan.

16 | 2024 | DECEMBER | BANKING FINANCE