Discover the top business headlines that are trending across the world today.
With the implementation of a new share buy-back rule on October 1, 2024, India’s tax system will undergo a change. The latest rule will allow tax liability to shift from corporations to shareholders, and it will alter the pattern of capital allocation and investment plans. In fact, the buyback proceeds will now be taxed as “dividend” income and now “capital gains” under the new legislation. Earlier, Buybacks were tax-free for companies but now the shareholders’ income from buybacks will be taxed. It will give certain investor groups an opportunity to impose higher tax costs. Meanwhile, mutual funds will benefit since they hardly get tax exemptions.
Owing to a slump in global markets, Indian equity indices Sensex and Nifty too were at the lower trading ends on Wednesday. The dip has been witnessed amid renewed concerns over a U.S. economic slowdown, and how key data could influence the Federal Reserve's interest rate decision. Around 9 am on Wednesday morning, the BSE Sensex was down 576 points, or 0.70%, at 81,984. On the other hand, Nifty50 went down 193 points, or 0.76%, to 25,087.
In terms of global trade, India has been lagging behind rivals like Bangladesh and Vietnam as low-cost manufacturing export hubs. The World Bank has now hinted how India’s trade in goods and services has been dipping as a percentage of gross domestic product. Despite the economic heft, India’s trade has been on a decline in the past decade. In global exports of apparel, leather, textiles, and footwear, India saw a growth
in 2002 to a peak of 4.5 per cent in 2013. However, since then, it has gone down to 3.5 per cent in 2022, as per World Bank. In contrast, Bangladesh’s share in global exports of these goods has increased to 5.1 per cent, while Vietnam’s share was 5.9 per cent in 2022.
In the first six months of 2024, India has seen a higher appetite for the so-called exotic foods, and consumed 4 million kg of avocados. With the increased consumption, there has been a 28-fold rise from the 140,600 kg imported in the first half of 2019, and a 264-fold increase from 15,170 kg imported during the first half of 2015. Avocado, the buttery fruit native to Mexico, is now being cultivated in India and other parts of the world. Not just that, Dragon Fruit too has become everyone’s favourite over the years.
