Business News: Aviation Minister Focuses on Airfares, Budget 2024 Quarantine, GST Council Meeting, Vodafone Idea Funds, Moody’s India Growth, Melbourne Airport Connectivity

The Civil Aviation Minister Ram Mohan Naidu has outlined a vision of affordable air travel in India. As per him, air tickets should be made cheaper so that the common man can easily travel by flight "It has been the PM's Modi vision as well that air travel should be affordable to all, and my department is committed to realizing this dream". Soon after taking the oath as Cabinet minister, Naidu has identified the development of aviation infrastructure to put India as a front-runner in the sector. As the air traffic saw an increase of 23% in the year 2023, the government and airlines will increase capacity amid growing demand.

Nirmala Sitharaman has taken up her second stint as the finance minister of the country, whose showstopper would be the presentation of the final budget for FY 2025. Preparations for the budget have kick-started amidst North Block going into a so-called 'quarantine' until July when it is presented. Sitharaman is gung ho about taking forward the vision of a developed India espoused by Prime Minister Narendra Modi; she laid emphasis on keeping reforms going for economic stability and growth, besides underscoring how India's resilience was being brought to the forefront when global challenges loomed large. Sitharaman, the first full-time lady finance minister, has made key announcements of economic measures and will present her seventh budget-a record.

The 53rd meeting of the GST Council is scheduled to be held on June 22, 2024, in New Delhi. Union Finance Minister Nirmala Sitharaman is chairing it. The issues to be discussed by the Council are rate rationalisation and compliance measures and ITC reforms. Some important issues are a) taxability of online gaming; b) ESOPs, Corporate guarantees; and c) new ISD regulations. This is the first meeting after the Lok Sabha elections and follows the 52nd meeting held in October 2023, starting law on a 28% levy on online gaming, casinos, and horse racing.

This is for raising a sum of Rs 2,458 crore from Nokia Solutions, Networks India Private Ltd and Ericsson India Pvt Ltd by issuing equity shares to these companies at Rs 14.80 per share. This follows the previous Rs 18,000 crore raised through the market in April. Vodafone Idea Ltd would be issuing 102.7 crore shares amounting to Rs 1,520 towards Nokia and 63.37 crores worth Rs 938 crore towards Ericsson. The company is aiming to strengthen the financial position of Vodafone Idea and fund its operational needs.

Strong momentum in the domestic economy, exports to the developed world, domestic demand, and government expenditure on infrastructure will be the factors that will continue to support the country of India as the fastest-growing economy in the Asia-Pacific region in 2024, Says Moody's Ratings. After election, policy continuity backed by spending on infrastructure and private sector investment are some of the reasons that Moody's sees ahead. The agency has increased forecast of GDP growth in 2024 to 6.8% while it projects expansion of 6.5% in 2025. In ASP, 2023 The real GDP of India has increased by 7.7% from 6.5% in 2022.

According to Melbourne Airport's chief executive officers, Lorie Argus, India is its most rapid long-haul growth market. The airport has seen direct flights surging 330 percent over the previous year. However, a simpleraría analysis reveals that 70 percent of all India traffic to Australia is via connecting hubs in Singapore and elsewhere-which suggests there is sizeable underserved demand. With Air India and low-cost IndiGo expanding their operations, Argus is expecting to see more direct capacity between India and Melbourne in the next few years as Victoria benefits from growth in its Indian diaspora and beyond.