The week in charts: Trumponomics, MSME boost, tax cut hopes

Trumponomics begins

At the start of his second innings as US president, Donald Trump issued a slew of executive orders, many of which overturned his predecessor’s decisions. These included ending birthright citizenship, enhanced border vetting, and pulling the US out of the Paris climate accord and the World Health Organization. The US has been the top contributor to the WHO and Trump’s decision has sparked worries of weakening of global efforts to handle health-related issues, even as the health body has been heavily criticised for its handling of the covid-19 outbreak.

Budget boost for startups and small businesses?

The upcoming Union Budget is expected to prioritise financial support for startups and small businesses, Mint reported. Easy access to credit for micro, small, and medium enterprises (MSMEs) is on the table – a key demand from the stakeholders against the backdrop of high interest rates. Small businesses contribute nearly a third of India’s gross domestic product and employ more than 247 million people. Other measures under consideration include enhanced funding through schemes offered by the Department of Promotion of Industry and Internal Trade (DPIIT).

Media IPO 

₹3,200 crore: That's the size of the initial public offering (IPO) media technology unicorn Amagi Media Labs is eyeing, Mint reported. The company has hired Kotak Mahindra Capital, Citigroup, IIFL Capital and Goldman Sachs as investment banks. The IPO will likely include both an offer for sale by existing shareholders and a primary component to fund expansion and acquisitions. Bengaluru-based Amagi has achieved a valuation of $1.4 billion and serves major clients such as NBCUniversal and CBS. The company plans to file draft IPO papers after April.

Tax relief for individuals?

The upcoming budget is considering income tax cuts for individuals as part of efforts to boost household spending. A slowdown in consumption could prompt the government to announce tax sops. Possible changes include higher standard deductions, increased basic exemption limits, and revised tax rates for incomes up to ₹12-15 lakh, Mint reported. Separately, a Mint analysis showed that tax relief announced in the budget in July last year offered minimal benefits to low-income groups and, when adjusted for inflation, worsened the situation for high-income groups.

IT firms in choppy waters

India’s top information technology (IT) firms including Tata Consultancy Services (TCS), Infosys, HCL Technologies and Wipro have reported subdued quarterly earnings, with revenue growth remaining sluggish, a Mint analysis showed. Only Infosys posted an improvement in revenues. Net profit figures offered a glimmer of hope. TCS, Infosys and Wipro all reported improved profitability and only Wipro saw a sequential decline. The absence of major deals and high attrition rates underscored the sector’s persistent challenges. However, cautious optimism prevails, driven by anticipated demand recovery and increased client spending.

PLI payout

₹1,596 crore: That's how much the government disbursed under production-linked incentive (PLI) schemes for six sectors during the first half of the current fiscal year, the Press Trust of India reported. The electronics sector received the largest share with ₹964 crore, followed by pharmaceuticals at ₹604 crore. The flagship PLI scheme was launched in 2021 for 14 sectors with a total outlay of ₹1.97 trillion with the aim of boosting domestic manufacturing. The performance of the scheme has been mixed but sectors such as electronics and white goods have benefited.

Wealthy management boom

The Indian wealth management sector is booming, with the number of private bankers nearly doubling in the past two years. The number has touched around 3,200 across metros, tier-I and tier-II towns, according to data from Native, a headhunting firm, Mint reported. High demand for domain expertise has driven up salaries amid a rapid increase in the number of high-net-worth individuals (HNIs). The number of private bankers earning over ₹2 crore a year has also doubled in the past two years to 200.

Chart of the week: Netflix viewership jumps

Streaming platform Netflix recorded more than 300 million paid subscribers worldwide as of the fourth quarter of 2024, recording 15.9% year-on-year growth, showed data from the company’s quarterly earnings. Netflix has maintained double-digit subscriber growth since July-September 2023.

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