Short Stories: Your Monthly Business Wrap for July

Quarter of Contrasts

From RIL’s gains to Tata Communications’ earnings stumble, Q1 results swung from high to low. RIL posted a ₹26,994 crore profit, fuelled by a 279% YoY leap in other income aided by its Asian Paints sale, strong 5G growth and record JioStar IPL revenue. Tata Communications saw a 43% drop in profit to ₹190 crore.

Wipro clocked a 10.9% YoY rise in profit despite IT revenue slipping. Axis Bank saw a 4% YoY decline in profit to ₹5,806 crore.

Track, Trace, Transfer

Aiming to enhance transparency and speed in public spending, the Centre has mandated that all payments above ₹75crore be made through the RBI’s e-Kuber system. The shift enables real-time tracking and quicker reconciliation, cutting down delays and improving financial oversight. Previously required only for payments above ₹500crore, the threshold has now been lowered. The government plans to further bring it down to ₹50crore.

Export Gains Secured

The newly signed India-UK free trade agreement (FTA) is expected to significantly boost India’s exports by offering zero-duty access to sectors such as pharma, chemicals and engineering goods. Signed during Prime Minister Narendra Modi’s visit to the UK, the landmark agreement is expected to boost annual bilateral trade by $34bn, unlock export opportunities for the MSME sector and make it easier for British firms to export whisky, cars and cosmetics to India.

Jobs for Crores

The Union Cabinet has approved the ₹99,446crore employment-linked incentive (ELI) scheme, targeting the creation of 3.5 crore jobs over two years starting August 1, 2025. The scheme is expected to tackle underemployment and boost social security in the formal sector and includes wage support for first-time workers and hiring incentives for employers. The initiative also aims to encourage savings and streamline benefits through EPFO-linked support and direct bank transfers.

Aligning NPS, UPS Tax

Tax parity between the National Pension System (NPS) and the Unified Pension Scheme (UPS) is now in place, after the finance ministry extended all NPS tax benefits to UPS. Targeting central government recruits who joined on or after April 1, 2025, the decision ensures similar deductions and incentives, enhancing UPS’ financial appeal. Experts note that the change is about aligning benefits rather than overhauling pension policy.