The week in charts: Import shock, budget plans, tax trends
Subscribe to enjoy similar stories. 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. India's trade deficit widened to a record high in November, while loss-making general insurers are set to get a capital boost in the upcoming Union budget.
India's trade deficit widened to a record high of $37.84 billion in November, primarily driven by a 331% year-on-year surge in gold imports, showed data from the commerce ministry. Gold imports rose on the back of festive and marriage-related demand and rising prices. As a result, merchandise imports grew 27% on-year to $69.95 billion last month.
On the other hand, exports contracted 4.9% to $32.11 billion. The widening deficit is a concern amid slowing economic growth and a weakening currency. The government is considering a capital infusion of ₹4,000-5,000 crore into its loss-making general insurers in 2025-26, Mint reported.
The upcoming budget in February may allocate additional funds based on the insurers' progress in financial performance in April-December. Three of the four state-owned general insurers—National Insurance, United Insurance, and Oriental Insurance—have negative solvency ratio currently, which means their total debt is greater than their equity. The capital infusion, however, would be contingent upon companies showing signs of consistent improvement in financial parameters and growth.
₹9,861 crore: That’s the amount The Hinduja Group is expected to spend on acquiring Reliance Capital. According to chairman Ashok Hinduja, the acquisition is expected to be completed by January. The deal will come nearly a year after the National Company
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