Government Issues 67 Sovereign Gold Bond Tranches: An Overview Up to FY25

The Indian government has actively utilised Sovereign Gold Bonds (SGBs) as a strategic financial tool. By the financial year 2024-25, a total of 67 tranches had been issued, amounting to a significant volume of gold. This blog explores various aspects of the SGB programme, including its issuance, valuation, redemption policy, and recent changes.

Total Issuance and Outstanding Value

Minister of State for Finance, Pankaj Chaudhary, informed Parliament that as of the financial year 2024-25, the government issued 67 tranches of Sovereign Gold Bonds, equivalent to approximately 146.96 tonnes of gold. The outstanding valuation of these bonds, based on the issue price, was ₹67,322 crore for 130 tonnes of gold, as of March 20, 2025.

Redemption Policy

The redemption process for Sovereign Gold Bonds is tied directly to the prevailing market price of gold at the time of maturity. Investors receive returns based on this price, providing them with potential appreciation aligned with market fluctuations.

Gold Reserve Fund (GRF)

To manage the risks and maintain financial stability associated with Sovereign Gold Bonds, the government established the Gold Reserve Fund (GRF). This fund is maintained within the Public Account and regularly credits the price and interest differential amounts. The GRF helps manage discrepancies arising from fluctuations in gold prices, thereby stabilising the scheme.

Purpose and Benefits of SGBs

Sovereign Gold Bonds were primarily introduced as a tool to finance India’s fiscal deficit, alongside other borrowing instruments. However, they have also gained popularity among investors as an alternative savings instrument to physical gold. The bonds provide investors with a secure, digital mode of holding gold, eliminating concerns related to storage, theft, and purity.

Impact of Recent Economic Conditions

In recent times, global economic headwinds and significant volatility in gold prices have increased the cost associated with issuing SGBs. Highlighting this issue, Pankaj Chaudhary noted, “Therefore, based on maturing and deepening of Indian G-Sec market, which helped in mobilising relatively low-cost borrowing, resources were not raised through SGBs in FY 2024-25.” This indicates a strategic shift by the government towards more cost-effective borrowing alternatives like Government Securities (G-Secs).

Additional Insights: Pradhan Mantri Mudra Yojana

In a separate disclosure, Chaudhary informed that as of February 28, 2025, over 52.07 crore loans have been sanctioned under the Pradhan Mantri Mudra Yojana (PMMY) since its inception. Additionally, the average non-performing assets (NPAs) for the scheme stood at a manageable 2.21% of the amount disbursed, according to data provided by Member Lending Institutions (MLIs) on the Mudra portal.

Conclusion

The Sovereign Gold Bond scheme continues to play an integral role in India’s economic strategy, adapting to market conditions and fiscal priorities. Although issuance paused in FY25 due to economic factors and more favourable borrowing options, SGBs remain a relevant and attractive savings alternative for many Indian investors, reflecting their dual role as a financing and investment instrument.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Power Grid Secures New Transmission Project and Plans 81st NCD Issue

Power Grid Corporation of India Limited (POWERGRID), a Maharatna CPSU and one of India’s leading electric utilities, has announced that its “Committee of Directors for Bonds” will meet on April 4, 2025. The agenda? To consider the issuance of Unsecured, Non-Convertible, Non-Cumulative, Redeemable, Taxable Bonds under private placement. This will be POWERGRID’s 81st (LXXXI) bond issue in the financial year 2025-26.

The company aims to raise capital through these Non-Convertible Debentures (NCDs), which are typically used for funding capital expenditure or refinancing existing liabilities. While the terms, amount, and tenure are yet to be disclosed, the move highlights POWERGRID’s continuous reliance on bond markets as a strategic financing avenue.

Declared Successful Bidder for Inter-State Transmission Project

In another development, POWERGRID has been declared the successful bidder under Tariff Based Competitive Bidding (TBCB) norms for a major inter-state transmission system. The project is titled:

“Transmission System for evacuation of power from Mahan Energen Limited Generating Station in Madhya Pradesh.”

This win comes under the Build, Own, Operate and Transfer (BOOT) model, further solidifying POWERGRID’s dominant role in the transmission infrastructure domain. The Letter of Intent (LoI) for this project was received on April 1, 2025.

Project Highlights

The awarded project will involve the development of a 400kV double-circuit transmission line along with associated bays at the existing Rewa Power Station (PG) sub-station, located in Madhya Pradesh. Once operational, the transmission system is expected to enhance the evacuation capacity from Mahan Energen’s generating units, thereby improving regional grid reliability and supporting power availability in the state.

Share Price Movement 

The share price of Power Grid was seen trading down by 0.60% at ₹287.40 as of 10:58 AM on April 2, 2025.

Conclusion

These 2  announcements—progress on the bond issuance front and securing of a new infrastructure project—reflect POWERGRID’s dual focus on financial discipline and project execution. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Sovereign Gold Bonds: How Rising Gold Prices Have Grown Government Liabilities to ₹1.2 Lakh Crore

The Sovereign Gold Bond (SGB) scheme, introduced in 2015, was a novel attempt by the Indian government to curb gold imports and reduce the country’s current account deficit. Over the years, the scheme attracted a significant number of investors seeking to benefit from gold price appreciation and regular interest income. However, what began as a strategic move to raise low-cost capital has evolved into a substantial financial obligation for the government.

A Trillion-Rupee Gold Dilemma

According to a recent report, if the government were to redeem all outstanding sovereign gold bonds as of April 1, 2025, it would need to shell out a staggering ₹12,06,92,00,00,000 – over ₹1.2 trillion or ₹1.2 lakh crores. This estimate is based on the prevailing gold price of ₹9,284 per gram.

In a written reply to Parliament, the government also noted that the outstanding value of these bonds as of March 20, 2025, based on the issue price, stands at ₹67,322 crores for approximately 130 tonnes of gold. This indicates that the government’s liability has swelled by 79% in absolute terms, excluding interest payments made over the years.

Redemption Trends and Gold Price Impact

SGBs are redeemed based on prevailing gold prices, with the actual redemption value calculated using the average closing price of gold in the preceding week. As gold prices continue to rise, so does the redemption cost.

The first tranche of bonds, for example, had to be redeemed at a 128% premium. Including interest payouts, the overall outflow on this tranche was 148% higher than the amount originally raised. As more tranches mature in the coming years, a similar pattern could emerge, especially if gold prices continue their upward trajectory.

Tranche-Wise Timeline and Redemption Buffer

While the liability appears massive, not all bonds are set to mature at once. The government has already fully redeemed bonds from seven tranches and recently offered early redemption for the eighth tranche. The final tranche is not due for maturity until 2032, providing the government with a much-needed buffer to stagger redemptions over time.

As of March 20, 2025, bonds amounting to less than 17 tonnes of gold have been fully redeemed. This leaves a considerable balance still on the government’s books, with potential liability increasing further if gold prices continue to escalate.

The Scale of Issuance: A 9-Year Snapshot

Since its inception, the SGB scheme has resulted in the issuance of bonds equivalent to 147 tonnes of gold. Each bond is pegged to one gram of gold. In total, the government has raised ₹72,274 crores over 9 financial years through these issuances. The issue price per bond has ranged from ₹2,684 in the first tranche to ₹6,263 in the 67th tranche – closely reflecting the then-prevailing gold prices.

Strategic Shield: RBI’s Gold Hoard

Interestingly, while the scheme may appear to be weighing heavily on the exchequer, the Reserve Bank of India (RBI) has simultaneously built a strategic hedge. According to a report, the RBI has quietly accumulated 321 tonnes of gold since the inception of the scheme. This move has served as a risk offset, shielding the system from the mounting liabilities of SGBs.

The RBI’s gold reserves have led to mark-to-market gains of approximately $20 billion. While these gains belong to the central bank, they are ultimately transferred to the government annually, offering a financial cushion amidst the rising cost of redemptions.

Conclusion

The SGB scheme has provided Indian investors with an efficient, paper-based alternative to physical gold, offering safety and returns tied to market performance. However, it has also created a growing fiscal liability for the government, especially in the context of rising gold prices.

The government’s redemption obligations, coupled with the interest payouts and price-linked bond maturity, underscore the complexities of financial instruments tied to commodity prices. Fortunately, the RBI’s strategic accumulation of gold offers a mitigating factor that could help ease the burden over time.

 

 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Will Central Government Employees Retiring Before January 1, 2026, Be Eligible for 8th Pay Commission Benefits?

With the 8th Pay Commission set to take effect from January 1, 2026, a wave of concern has emerged among central government employees and pensioners. Speculations are rife that those retiring before this date may be deprived of key benefits.

Government’s Clarification on 8th Pay Commission Benefits 

Finance Minister Nirmala Sitharaman promptly addressed the controversy in Parliament. During her response to the discussion on the Finance Bill and the Appropriation (No.3) Bill, 2025, she stated unequivocally that the amendments are procedural and aim to validate existing pension policies.

She emphasised that there would be no change in benefits for civil and defence pensioners and reiterated that those who retired before 2016 received equal pension benefits under the 7th Pay Commission — a principle that will remain intact moving forward.

What Is the 8th Pay Commission?

Approved in January 2025, the 8th Pay Commission aims to revise the salaries, allowances, and pensions of central government employees and pensioners. This commission follows a decade-long tradition of pay revisions, with the 7th Pay Commission having been implemented in 2016.

One of the key features of the 7th Pay Commission was parity in pensions — ensuring that pensioners retiring before and after the cut-off year received equivalent benefits. According to official figures, as of March 1, 2025, around 36.57 lakh employees and 33.91 lakh pensioners stand to benefit from the upcoming commission.

What Has the Government Said About Alleged Disparities?

In the Rajya Sabha on March 27, 2025, the Finance Minister asserted that the principle of equal pension for all retirees, regardless of the date of retirement, will be upheld. She further clarified that the recent amendment was merely an administrative update, not an indication of changing policy.

Earlier, on March 18, 2025, Sitharaman informed MPs Kangana Ranaut and Sajda Ahmed that the financial implications of the 8th Pay Commission would be evaluated once the recommendations were finalised.

Will Pensioners Retiring Before 2026 Miss Out?

As of now, there is no official indication that pensioners retiring before January 1, 2026, will be excluded from the 8th Pay Commission’s benefits. The apprehensions seem to be largely based on misinterpretations of technical language in the Finance Bill amendments.

Historically, the government has applied pay commission revisions retrospectively and provided arrears for the past year. According to a news report, a similar approach may be taken this time as well, which would accommodate all pensioners, irrespective of their retirement date.

Conclusion

To date, there is no substantial evidence suggesting that pensioners retiring before January 2026 will be excluded from the 8th Pay Commission benefits. Most of the concern appears to stem from speculation and misunderstanding surrounding procedural changes.

The government has reaffirmed its commitment to ensuring equity among pensioners, and the detailed recommendations of the 8th Pay Commission are expected to be finalised in the near future. Until then, it is advisable to rely only on official announcements for clarity on this matter.

 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

How RBI and Government Reforms Are Enhancing Governance in Co-operative Banks

Co-operative banks have long played a vital role in India’s financial inclusion story, especially in semi-urban and rural areas. However, their regulatory framework has often lagged behind that of commercial banks. Recognising this gap, the Government of India and the Reserve Bank of India (RBI) have introduced a slew of reforms over the last few years. Among these, the Banking Regulation (Amendment) Act, 2020, the RBI’s 2024 Master Direction on Fraud Management, and amendments to the Multi-State Co-operative Societies (MSCS) Act, 2002, have significantly enhanced the governance and regulatory oversight of co-operative banks.

Banking Regulation (Amendment) Act, 2020: Expanding RBI’s Authority

The Banking Regulation Act, 1949, was amended through the Banking Regulation (Amendment) Act, 2020, granting the RBI greater supervisory powers over Urban Co-operative Banks (UCBs). These provisions, enforced from June 26, 2020, made several key sections of the BR Act applicable to co-operative banks, such as:

  • Section 10 & 10A: Qualifications of Board members
  • Section 35B: Appointment and remuneration of auditors
  • Section 36AB: Power of the RBI to remove managerial persons

The amendments are aimed at strengthening internal controls, promoting sound banking practices, and ensuring effective management within co-operative banks.

RBI’s 2024 Master Direction on Fraud Management

In a move to further reinforce governance, the RBI issued a Master Direction on Fraud Management in 2024. This comprehensive guideline applies to co-operative banks and addresses:

  • Early Warning Systems
  • Staff Accountability
  • Third-Party Responsibility
  • Role of Auditors
  • Adherence to Natural Justice

The directive ensures timely fraud detection and transparent internal processes while encouraging banks to build robust prevention mechanisms.

Additional Safeguards: PCA Framework and Deposit Insurance

To further safeguard depositor interests and prevent financial instability:

  • Prompt Corrective Action (PCA) Framework requires financially weak UCBs to initiate corrective steps in a timely manner.
  • Deposit Insurance, through the Deposit Insurance and Credit Guarantee Corporation (DICGC), assures account holders up to a pre-defined limit, offering a financial safety net in case of bank failures.

Multi-State Co-operative Societies (MSCS) Act, 2002: Strengthening Governance

Recent amendments to the MSCS Act, 2002, aim to enhance transparency and accountability in the functioning of multi-state co-operative societies. Key changes include:

  • Appointment of an Ombudsman (Section 85A): To address complaints related to deposits and member rights.
  • Establishment of a Cooperative Election Authority: To conduct free and fair elections, a step critical to improving internal democracy.
  • Incorporation of the 97th Constitutional Amendment: Embedding cooperative principles within the legal framework.

These reforms collectively address governance gaps and ensure fair representation, internal accountability, and operational transparency.

NABARD’s Role in Fraud Reporting

The National Bank for Agriculture and Rural Development (NABARD) has issued guidelines for co-operative banks to report frauds to appropriate law enforcement agencies, including State Police, Economic Offence Wings, and State CID. This step ensures faster investigation and legal action against financial malpractices.

Ministry of Cooperation’s Initiatives for Empowerment

The Ministry of Cooperation (MoC), responsible for building a robust cooperative framework in India, has taken proactive steps to:

  • Promote a cooperative-based economic development model
  • Create a policy and institutional framework for growth
  • Train cooperative personnel and educate members

The ministry’s efforts are aligned with the vision of “from cooperation to prosperity,” ensuring co-operatives serve as engines of equitable development.

Conclusion

The recent amendments and guidelines reflect a comprehensive regulatory overhaul intended to make co-operative banks more resilient, transparent, and depositor-friendly. While challenges remain, these steps mark a significant move towards restoring trust and improving governance in the co-operative banking ecosystem.

 

 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Why April 2 Is ‘Liberation Day’: What Time Will Trump Announce Reciprocal Tariffs in India

According to a news report, April 2 has been coined as ‘Liberation Day’ by US President Donald Trump, marking a pivotal moment in his administration’s trade agenda. With a press conference scheduled for 4 pm Eastern Time (2000 GMT / 1.30 am IST on April 3) from the White House Rose Garden, the announcement is expected to usher in sweeping tariff measures aimed at rebalancing the country’s trade relationships.

The initiative, touted by Trump for years, is positioned as a strategy to reduce America’s dependence on foreign imports and foster domestic production.

What Will Be Announced?

According to the White House press secretary Karoline Leavitt, reciprocal tariffs will be introduced targeting countries that impose duties on US goods. Although detailed specifics remain undisclosed, it has been confirmed that a 25% tariff on automobile imports will be enacted starting April 3.

In addition, a separate 25% duty is to be applied to imports from countries that purchase oil or gas from Venezuela, including the US itself. These measures are intended to take immediate effect post-announcement.

Rather than targeting individual nations, reports suggest that the administration is contemplating a uniform average tariff of 20% across products from nearly all countries.

Previous Tariffs and the New Wave

This isn’t the first time President Trump has introduced protectionist trade measures. Previous tariffs on steel and aluminium, along with increased duties on Chinese imports, have laid the groundwork for the current strategy.

Treasury Secretary Scott Bessent described the upcoming tariffs as a “cap”—with the possibility of reductions if trading partners respond by lowering their own duties on American goods.

White House trade adviser Peter Navarro has projected that the new tariff regime could generate up to $600 billion annually.

Impact on Consumers and Businesses

While the tariffs may generate revenue and aim to strengthen domestic industries, economists have raised concerns about their broader impact.

Higher import duties are likely to increase costs for businesses reliant on foreign goods, which could translate into elevated consumer prices and inflationary pressures. A recent survey by the Federal Reserve Bank of Atlanta indicates that corporate executives foresee a potential slowdown in hiring and overall economic growth as a consequence.

Supply chain disruptions, particularly in industries dependent on global sourcing, could also become more prominent.

Global Response and Diplomatic Tensions

Unsurprisingly, the proposed tariffs have triggered strong reactions from major US trade partners. Canadian Prime Minister Mark Carney declared that Canada would implement countermeasures to safeguard its own industries and workers. He also engaged in talks with Mexican President Claudia Sheinbaum, focusing on a united response to what they describe as “unjustified trade actions” from the US.

This growing tension suggests that while the US pursues economic reform, international diplomacy could face further strain.

Spotlight on India and Other Allies

President Trump has singled out India as one of the countries expected to lower its tariffs significantly in response to his measures. Speaking from the White House Oval Office, he expressed optimism that many US allies would follow suit, pointing to the European Union’s recent tariff reductions as validation of his approach.

“I heard that India is going to be dropping its tariffs substantially,” Trump stated, reiterating his belief that the US has been at a disadvantage in global trade for far too long.

Conclusion

April 2 may indeed prove to be a defining moment for international trade relations. Whether it leads to broader economic recalibrations or escalates into prolonged disputes remains to be seen. As the world watches closely, the full implications of the US’s shift towards reciprocal tariffs will unfold in the months ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Solar Power Leads the Charge: India Adds Record 25 GW of Renewable Energy in FY 2024–25

In a significant achievement for India’s clean energy ambitions, the Ministry of New and Renewable Energy (MNRE) added 25 gigawatts (GW) of renewable energy capacity in the financial year 2024–25. This marks a 35% increase compared to the 18.57 GW added in FY 2023–24. The progress highlights India’s continued focus on sustainable energy under the leadership of Prime Minister Shri Narendra Modi.

Solar Power Leads the Charge

India’s solar energy sector played a pivotal role in this growth. Solar capacity additions rose from 15 GW in FY24 to nearly 21 GW in FY25, reflecting a 38% year-on-year increase. With this addition, India surpassed the milestone of 100 GW in installed solar capacity, reaffirming its position as a major global player in solar energy.

Domestic Solar Manufacturing Strengthens

In line with the government’s Atmanirbhar Bharat initiative, domestic solar manufacturing saw unprecedented expansion. By March 2025:

  • Solar module manufacturing capacity increased from 38 GW to 74 GW.
  • Solar photovoltaic (PV) cell capacity surged from 9 GW to 25 GW.
  • The nation’s first ingot-wafer manufacturing facility (2 GW) began operations.

Under the Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules, investments worth ₹41,000 crore were made, creating approximately 11,650 direct jobs. These developments signal a shift towards reducing import dependence and enhancing self-sufficiency in clean energy production.

PM Surya Ghar Muft Bijli Yojana Empowers Households

The PM Surya Ghar Muft Bijli Yojana made notable strides during the year. As of March 31, 2025:

  • Over 11.01 lakh households benefited from the scheme.
  • ₹5,437.20 crore was disbursed as Central Financial Assistance.
  • Assistance reached 6.98 lakh households, encouraging the use of rooftop solar panels.

The scheme has played a vital role in promoting solar energy adoption among residential consumers, especially in rural and semi-urban areas.

Green Hydrogen Sector Gains Traction

India’s Green Hydrogen ambitions also saw a boost in FY25:

  • ₹2,220 crore was awarded for 1,500 MW of annual electrolyser manufacturing capacity.
  • ₹2,239 crore was allocated for 4.5 lakh tonnes per annum of Green Hydrogen production.
  • 7 pilot projects aimed at decarbonising the steel sector received ₹454 crore.
  • 5 transport-sector pilot projects worth ₹208 crore were launched, introducing 37 hydrogen-powered vehicles and nine hydrogen refuelling stations.

These initiatives under the National Green Hydrogen Mission indicate India’s intent to establish itself as a global leader in hydrogen-based clean fuel.

Record Progress in PM-KUSUM Scheme

The PM-KUSUM Scheme, which promotes solar energy use in agriculture, achieved remarkable outcomes in FY25:

  • Under Component B, 4.4 lakh solar pumps were installed—a 4.2x increase over the previous year.
  • Under Component C, 2.6 lakh pumps were solarised, 25 times higher than in FY24.
  • The totalTotal installed and solarised pumps under the scheme crossed the 10-lakh mark.
  • Financial expenditure under PM-KUSUM rose by 268% to ₹2,680 crore.

These results reflect growing farmer participation and government efforts to promote clean irrigation solutions.

IREDA’s Enhanced Role in Clean Energy Financing

The Indian Renewable Energy Development Agency (IREDA) played a pivotal role in scaling up financing for clean energy:

  • Loan sanctions rose by 27% to ₹47,453 crore.
  • Loan disbursements increased by 20% to ₹30,168 crore.

This financial support has enabled several large-scale renewable projects to take shape across the country.

India’s Global Standing in Renewable Energy

Union Minister Shri Prahlad Joshi remarked that India “may have already become or will soon become the 3rd largest renewable energy capacity holder in the world.” This progress reflects the government’s long-term vision of sustainable energy development, energy security, and economic resilience.

Conclusion

India’s performance in FY 2024–25 showcases its unwavering commitment to renewable energy growth. From solar and hydrogen to agricultural reforms and manufacturing expansion, the momentum is clear. While challenges remain, these achievements mark a critical step forward in India’s clean energy journey.

 

 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

India Will Record the Highest GDP Growth Among G20 Nations by FY26: Moody’s Report

Moody’s Investors Service has forecast that India will record the highest GDP growth among the advanced and emerging economies in the G20 group in the fiscal year 2026. The projected growth rate of 6.5% places India ahead of several other major economies. This momentum is largely fuelled by ongoing structural reforms, robust domestic demand, and supportive monetary policies.

The consistent efforts by the government to implement tax reforms and broaden the tax base have contributed to stronger fiscal discipline. Additionally, the monetary easing by the Reserve Bank of India (RBI), aimed at promoting credit growth and investment, is expected to further support economic activity.

Inflation Trends and Monetary Policy Easing

Inflation is anticipated to moderate to 4.5% in FY26, down from an average of 4.9% in FY25. This downward trend provides room for the RBI to adopt a more growth-supportive monetary stance. In line with this, the RBI reduced interest rates by 25 basis points to 6.25% in February 2025, with additional cuts expected in April to further bolster the economy.

Such monetary measures are intended to stimulate private consumption and investment, helping to maintain economic momentum amidst global uncertainties.

Fiscal Relief and Middle-Class Boost

One of the notable policy steps includes the increase in the income tax rebate limit to ₹12 lakh (approximately US$ 14,014), up from ₹7 lakh (around US$ 8,175). This move is set to provide a fiscal relief of ₹1,00,000 crore (US$ 11.68 billion) to the middle-class population, which in turn could boost consumption.

This substantial tax relief aims to enhance disposable income, support domestic consumption, and further reinforce India’s growth trajectory.

India’s Structural Strengths Support Capital Inflows

Moody’s also highlights India’s macroeconomic resilience as a key driver for attracting global capital. The country benefits from:

  • A large domestic economy and deep capital markets

  • Strong foreign exchange reserves

  • Moderate policy credibility and consistent reforms

  • A low external vulnerability indicator (61%)

  • High share of domestic currency-denominated external debt

These factors limit India’s exposure to external financial shocks and reinforce investor confidence in the economy.

Global Comparison: How India Stands Out

While China’s growth remains export and technology-driven, it grapples with weak domestic consumption, making its growth profile less balanced. In contrast, India’s consumption-led model provides a broader base for sustainable growth.

Among emerging markets, Brazil and India are positioned more favourably compared to nations like Argentina and Colombia, which face elevated risks due to significant foreign currency-denominated debt.

Moreover, although policy shifts in the United States and global trade fluctuations pose potential challenges, India’s diversified economy offers greater insulation from these external shocks, according to Moody’s.

Conclusion

India’s expected position as the fastest-growing economy in the G20 by FY26 underlines its resilient fundamentals, policy reforms, and robust domestic demand. While global uncertainties persist, the country’s economic structure and proactive governance are likely to maintain its growth leadership among peer nations.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Reliance and BLAST Form Strategic Partnership to Elevate Esports in India

Reliance’s wholly-owned subsidiary, Rise, has entered into a strategic partnership with BLAST Esports to revolutionise the esports industry in India. The collaboration will establish a joint venture (JV) that merges BLAST’s expertise in esports media production with Jio’s technological capabilities and extensive distribution network. This initiative aims to bolster India’s esports ecosystem by facilitating sustainable growth and innovation.

Expanding India’s Esports Infrastructure

The newly formed JV is set to enhance the entire esports spectrum in India. It will provide services to game publishers and sponsors, offer end-to-end tournament management, and implement targeted marketing strategies. Additionally, the JV will focus on high-quality production and broadcasting, ensuring a seamless gaming experience for both players and audiences. By leveraging BLAST’s strong global network and Jio’s vast technological resources, the partnership is expected to propel India’s esports industry onto the international stage.

A Vision for the Future of Indian Esports

With India emerging as one of the fastest-growing gaming markets globally, this partnership holds immense potential. Robbie Douek, CEO of BLAST, emphasised that the JV will not only nurture the Indian esports ecosystem but also create avenues for local talent to gain global recognition. Devang Bhimjyani, Head of Reliance Sports, expressed confidence that this collaboration would enable Indian esports to reach its full potential, aligning with Reliance’s broader interest in sports and Jio’s commitment to technological advancement.

Reliance Industries Share Performance 

As of April 02, 2025, at 12:15 PM, Reliance Industries share price was trading at ₹1,251.70 per share, reflecting a decline of 0.09% from its previous closing price. Over the past month it has surged by 7.04%.

Conclusion

The partnership between Rise and BLAST Esports signifies a major milestone in India’s esports industry. As esports gains prominence worldwide, including recognition from the International Olympic Committee and its inclusion in the 2023 Asian Games, this joint venture is poised to accelerate India’s presence in the competitive gaming arena. By combining expertise, technology, and strategic planning, the initiative promises to transform India into a global esports powerhouse.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Government Set to Receive Highest-Ever CPSE Dividends in FY25

The Indian government is on track to receive a record-breaking dividend payout from Central Public Sector Enterprises (CPSEs) in the financial year 2024-25 (FY25). With ₹69,873 crore already received, the figure is expected to cross ₹74,016 crore by the end of the fiscal year, according to a news report. This marks a significant milestone in public sector profitability and contribution to the exchequer, driven by robust financial performances and a revised dividend policy.

Record Dividend Inflows in FY25

Compared to the ₹63,749.3 crore received in FY24, which was, until now, the highest, this year’s projected inflow represents a new benchmark. The increase in dividends reflects improved financial performance across several CPSEs and is a testament to the government’s proactive policy revisions.

Top Contributors: Who’s Paying the Most

Leading the dividend payout list for FY25 is Coal India, remitting ₹10,252.09 crore, closely followed by the Oil and Natural Gas Corporation (ONGC) with ₹10,001.97 crore. Other significant contributors include:

These payouts significantly bolster the government’s non-tax revenues and help in fiscal planning.

Revised Dividend Policy: A Strategic Move

In a bid to maximise returns from public sector undertakings, the government revised the dividend policy for CPSEs last year. As per the new guidelines:

  • Each CPSE is required to pay a minimum annual dividend of 30% of its profit after tax (PAT) or 4% of its net worth, whichever is higher.
  • Exceptions are allowed only if legal constraints prevent such payouts.

For CPSEs operating in the financial sector, including non-banking financial companies, the minimum payout remains at 30% of PAT, again subject to regulatory allowances.

Beyond the Minimum: Encouragement to Distribute More

The revised policy serves as a benchmark, encouraging enterprises to exceed the minimum requirement where feasible. Factors taken into consideration include:

  • Overall profitability
  • Capital expenditure needs
  • Cash reserves
  • Net worth
  • Appropriate financial leverage

This approach ensures that CPSEs contribute meaningfully to government revenues while maintaining sound financial health.

The CPSE Landscape: Rising Profits and Better Yields

According to the Public Enterprises Survey, there are 272 operational CPSEs, of which 212 reported profits in FY24. Collectively, these 212 entities posted net profits of ₹3.43 trillion, a remarkable 48% increase from the ₹2.18 trillion recorded in FY23.

Public Sector Banks: Adding to the Dividend Pool

A notable contribution to the government’s kitty also comes from public sector banks. In FY24, the total dividend payout from 12 public-sector banks rose 33% to ₹27,830 crore. Of this, the government received ₹18,013 crore, signalling healthier balance sheets and stronger fundamentals in the banking sector.

Conclusion

The record dividends from CPSEs in FY25 underline a positive shift in the financial performance of India’s public sector. This upward trend, supported by strategic policy changes and improved operational efficiency, not only boosts government revenues but also reflects the maturing financial discipline within CPSEs. The coming years will reveal whether this momentum can be sustained and further enhanced.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.