
The week in charts: Informal jobs, GST tangle, export reset

Summary
- Every Friday, Plain Facts publishes a compilation of data-based insights, with easy-to-read charts, to help you delve deeper into the stories reported by Mint in the week gone by.
A new report released this week showed job creation had slowed in the informal sector in 2023-24. Meanwhile, the Indian stock market this month is seeing the second-worst December performance in a decade and the GST council’s decision to tax popcorn differently has kicked up a storm.
Informal worry
India’s informal sector added fewer new jobs in 2023-24, with 10.97 million jobs being generated in this period as against 11.74 million in 2022-23, showed the government’s Annual Survey of Unincorporated Sector Enterprises, released this week. The latest survey was conducted during October 2023 and September 2024. This is even as the informal sector saw more enterprises being added during this period at 8.4 million versus 5.3 million in the previous fiscal, the findings showed.
Dull December
The Indian stock market is experiencing a subdued holiday season with a 1.7% decline this month, marking the second-worst December performance in a decade after the 3.6% drop in 2022, Mint analysis showed. This could be the fifth negative December in the last 10 years, in contrast with the 7.8% gain in 2023. Experts attribute this to profit-booking, a shift towards initial public offerings (IPOs), and foreign portfolio investors (FPIs) outflows due to a stronger dollar. Experts warn of potential market volatility ahead, especially the implications of Trump's policies.
Also Read: Santa skips D-Street during second-quietest December in a decade
GST tangle
18%: That is the GST rate caramelised popcorn will attract, as decided at the 55th GST council meeting on 21 December, chaired by FM Nirmala Sitharaman. On the other hand, GST will be 5% for salty/spiced unpackaged popcorn and 12% will be levied on packaged versions. Prominent economists criticised the move saying three different tax slabs for a single item pushes the tax system into greater complexity. Similar issues have risen with items such roti. Different rates also exist for packaged roti and parathas and curd and yoghurt, with the former in both cases attracting 5% and the latter taxed at 18%.
Mega merger
Honda Motor Company and Nissan Motor Corporation are reportedly in talks to merge operations in mid-2025. This move, which could also include Mitsubishi Motors, aims to counter the rise of Chinese automakers and accelerate the transition to electric vehicles. The merged entity would become the third-largest auto group globally, with a market cap exceeding $50 billion, with annual sales topping 8 million vehicles. There is scepticism around the success of the merger with past attempts by other automakers like Daimler-Chrysler and Renault-Nissan having fallen flat.
Export reset
India is revising its six-year-old Agricultural Export Policy (AEP) to adapt to evolving market demands and diversify its export basket, Mint reported. The review aims to enhance the competitiveness of Indian agricultural products, ensure global standards compliance, and promote value-added products. The focus will shift towards processed food and organic products, targeting new markets. Under AEP, the government targeted doubling agricultural exports to $60 billion by 2022, but current exports stand at $48.8 billion in FY24. This was attributed to export restrictions on rice and wheat.
Deal weaver
₹1,000 crore: That is the amount Weaver Services, an affordable housing finance company founded by ex-HDFC employees, is seeking to raise from Premji Invest and Paragon Partners, Mint reported. This funding will partially finance the ₹267 crore acquisition of Capital India Home Loans, acquired by Weaver in October. Weaver previously signed a funding agreement for ₹800 crore from Gaja Capital and Lok Capital, and is awaiting regulatory approval. The affordable housing finance sector has witnessed growing investor interest this year due to its perceived lower risk.
Raining funds
India's housing finance sector saw a tenfold jump in primary fundraising in 2024, Mint reported. Funding surged to $826.8 million across nine rounds in 2024, according to data from Tracxn. Rising housing demand and the ability of lenders to manage costs attracted investors seeking less risky assets. Major players like Prosus, Norwest Venture Partners, and Elevation Capital invested in companies like Vastu Housing Finance and Vridhi Finserv Home Finance. There were big buyouts as well, with Warburg Pincus acquiring Shriram Housing Finance and EQT acquiring Indostar Home Finance.
Chart of the week: Weak cover
The forest cover in Indian metro cities has grown just 0.4% between 2021 and 2023, as per the India State of Forest report released earlier this week. Three out of six cities – Delhi, Chennai and Hyderabad – saw a dip in their forest cover. Overall, forest cover remains high in Delhi, Mumbai and Bengaluru.
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