SBI Chief CS Setty Becomes Chairman of Indian Banks Association
CS Setty, Chairman of State Bank of India (SBI), has been appointed as the Chairman of the Indian Banks Association (IBA) for the upcoming term. Setty takes over from Sunil Mehta following the IBA’s managing committee meeting on March 28, 2025. The IBA also named A Manimekhalai (Union Bank of India), Swarup Kumar Saha (Punjab & Sind Bank), and Madhav Nair (Bank of Bahrain & Kuwait) as deputy chairpersons, with B Ramesh Babu (Karur Vysya Bank) serving as honorary secretary. Setty’s leadership is anticipated to strengthen the association’s advocacy role and address critical challenges in India’s banking sector.
India’s Core Sector Growth Slows to 2.9% in February 2025
India’s core sector growth declined to 2.9% in February 2025, marking the lowest pace in five months, compared to 5.1% in January. This slowdown is attributed to weaker performance in five of the eight core industries, with coal, crude oil, and natural gas production contracting by 5.2% and 6%, respectively. Fertilizer and cement sectors showed resilience, recording growth of 10.2% and 10.5%, supported by government infrastructure investments. The eight core industries, which account for 40.27% of the Index of Industrial Production (IIP), are vital to industrial activity. The decline is linked to subdued demand and a high base effect.
‘Sahkar’ Taxi Service: A Driver-Centric Cooperative Initiative
Union Home and Cooperation Minister Amit Shah has announced the launch of ‘Sahkar,’ a cooperative-based taxi service aimed at empowering drivers. This app-based platform eliminates commissions charged by intermediaries, allowing drivers to retain their full earnings. It will register two-wheelers, auto-rickshaws, and four-wheelers under cooperative societies, promoting the vision of ‘Sahkar se Samriddhi’ (Prosperity through Cooperation). Additionally, a cooperative insurance scheme will provide financial security to participants. The initiative offers an alternative to private operators like Ola and Uber, fostering fair practices, enhancing driver welfare, and emphasizing financial independence through the cooperative model.
India’s CAD Rises to $11.5 Billion in Q3 FY25, Driven by Trade Deficit
India’s current account deficit (CAD) increased to $11.5 billion, accounting for 1.1% of GDP in Q3 FY25 (October–December 2024), compared to $10.4 billion in the same quarter last year. This expansion is attributed to a merchandise trade deficit of $79.2 billion, though it eased from $16.7 billion (1.8% of GDP) in Q2 FY25. Net services receipts reached $51.2 billion, driven by strong growth in computer, business, and travel services exports. Additionally, remittances, primarily through personal transfers, rose to $35.1 billion. These factors helped mitigate some effects of the widened trade deficit, sustaining economic balance amidst global uncertainties.
SMILE Programme: Boosting Efficiency in India’s Logistics Sector
The Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) Programme, backed by the Asian Development Bank (ADB), aims to modernize India’s logistics framework. It focuses on reducing overall logistics costs while enhancing efficiency and sustainability. Key initiatives include building multimodal logistics hubs, standardizing warehousing practices, and promoting digital tools in trade logistics. The programme integrates low-emission transport solutions and emphasizes inclusivity, particularly gender participation. Aligned with the National Logistics Policy and PM Gati Shakti Master Plan, SMILE seeks to improve India’s global Logistics Performance Index ranking, strengthen supply chain resilience, and attract greater private investment for economic growth.
Finance Bill 2025: Revised Taxation Rules for AIFs
The Finance Bill 2025 proposes updated tax regulations for Alternative Investment Funds (AIFs). Securities held by Category I and II AIFs are now uniformly classified as capital assets, ensuring consistent tax treatment. The definition of capital assets has been expanded to include securities regulated by SEBI and the International Financial Services Centres Authority (IFSCA). Additionally, Section 10 (4D) amendments simplify tax benefits for funds operating within the International Financial Services Centre (IFSC). These changes aim to boost transparency, align tax norms with regulatory advancements, and encourage investment growth in India’s financial sector.