This has reference to ‘Why businesses are embracing electric mobility’ (November 7). Compared to a year before, movement of EV2W, EV3W, EV4H on roads has increased. Out of 10, one can easily spot two EVs zipping on city roads. Reduced GST on EVs and IT deductions on EV loans have boosted EV sales besides the production linked incentives for local battery cell manufacturing are also pushing the vehicle users to turn to EVs.
The government can allow toll free travel for all EV3Ws and EV4Ws , flat tax incentive of ₹5,000 to buyers of EV2Ws, other tax incentives for start-ups and small companies to urge employess to use EVs for their daily commute.
Apropos the news item on SEBI’s proposal for instant settlement of equity trades (November 7), the move is welcome. However, SEBI could also address some more pressing investor concerns. Among them, even with T+1, one does not get credit in demat account of securities purchased (and paid for) on the next day. It happens only one day later.
As regards mutual funds, in several instances SIP units are not allotted on the day of debit to bank account, though well before cut-off time. AMCs take refuge under the clause that says units will be allotted ‘when the funds become available for deployment’. This is opaque, one-sided, nebulous, and not verifiable by investor. This needs to be addressed.
Apropos the article ‘Private Sector: BJP’s most striking failure’ (November 7), it may not be entirely correct to blame the government. Of course, demonetisation and GST did cause some slowdown in the first term. In the second term, the pandemic put us behind at least by about one year, when businesses struggled and even shut down. Implementation of labour reforms, insolvency resolution, production linked incentive (PLI) under Make in India, etc., are some of the steps taken by the government.
This slowdown in investment may be due to reduced risk appetite and to some extent due to higher cost of capital with higher interest rates in recent times.
China growth worries
Apropos ‘Is IMF too optimistic about China’s growth?’ (November 7), indeed vital headwinds facing Chinese growth are the dismal realty sector saddled with debts, declining exports and the contraction of demand with low CPI inflation. Nevertheless global factories relocating from China reduces its share in the global export market. At this juncture IMF’s 5 per cent GDP growth forecast seems optimistic in the midst of negative capital investment climate.
China’s investment in Sri Lanka and Pakistan in the Belt and Road Initiative and strained relations with global majors are not conducive for China to achieve 5 per cent growth.