Economy
The week in charts: Tax share, oil diplomacy, IndusInd Bank sell-off
Summary
In this weekly Plain Facts compilation, we present to you data-based insights, with easy-to-read charts, to help you delve deeper into the stories reported by Mint in the week gone by.
The Centre’s net tax collections have been robust in the current financial year so far. India is working on a plan to import oil from the US to avoid reciprocal tariffs. Meanwhile, top mutual funds heavily sold IndusInd Bank shares before the accounting discrepancy was revealed.
Tax boost
The Centre has collected ₹21.26 trillion in net direct taxes until 16 March this financial year, reaching 95% of its revised target, according to the data released by the Income Tax Department. Net direct tax revenue grew 13.1% year-over-year, outpacing India’s 9.9% nominal GDP growth estimate, indicating strong buoyancy and increased compliance. Net corporate tax revenue grew at a slower pace of 7.1%. As such, the share of net corporate tax collections in overall collections fell to 45.6% in 2024-25 compared to 48.1% the previous year.
Oil diplomacy
India's oil and gas imports are central to the ongoing trade talks with the US, as it races to prepare a strategy before the reciprocal tariff deadline of 2 April set by Donald Trump. To ease tensions, India is planning to increase its imports of West Texas Intermediate (WTI) crude, potentially setting a quota, Mint reported. The move aims to reduce trade barriers and avoid reciprocal tariffs. The US is currently India's fifth-largest oil supplier and witnessed a year-on-year increase of 7.6%.
Long-awaited return
286 days: That’s the number of days NASA astronauts Sunita Williams, Nick Hague, Butch Wilmore, and Russian cosmonaut Aleksandr Gorbunov spent in space before returning to Earth on Wednesday. The crew had reached the International Space Station (ISS) in June 2024, with plans to return in a week. However, issues with their spacecraft, Boeing’s Starliner, made it unsafe for their return. Williams and Wilmore, who were stranded at ISS, completed 4,576 orbits around Earth. With this, Williams has completed 62 hours and 6 minutes of total spacewalk time, the most of any female astronaut.
RBI’s dilemma
The rupee has seen sharp depreciation in recent months, addressing concerns by some who criticized the Reserve Bank of India (RBI) for intervening in the markets to stabilize the currency. Market watchers note a shift in rupee management strategy since new governor Sanjay Malhotra took charge. A Mint analysis showed that the rupee depreciated 2.1% during Malhotra’s first 70 days compared to 1.1% during Shaktikanta Das’ last 70 days. While the rupee may still be overvalued, the government may not want too much depreciation in the currency.
Sinking smallcap
Amid the market turbulence, the carnage in smallcap stocks has become a cause of concern. The BSE SmallCap index’s 22% plunge into bear territory from its 52-week high, with approximately a third of small caps declining 50% or more from their most recent highs, a Mint analysis showed. While eight out of 19 sectors, tracked by Mint, suffered similar losses, travel and hospitality, and chemicals sectors have shown relative strength, with only 15-19% of the stocks down by 50% or more from their 52-week highs.
Fund withdrawals
₹1,600 crore: That’s the value of IndusInd Bank shares top mutual funds sold in February 2025 just before the accounting discrepancy was revealed, Mint reported. Mutual fund holdings fell 7.4% to ₹20,020 crore, with shares held by fund houses dropping 7.3% to 20.22 crore by February end. Last week, IndusInd Bank disclosed an accounting discrepancy in derivative transactions conducted before April 1, 2025. The financial impact of this issue is estimated to be 2.35% of the bank’s net worth, amounting to approximately ₹1,577 crore.
Export slump
India’s merchandise exports fell 10.9% in February to $36.91 billion, recording the sharpest decline in 20 months. While imports also fell in February, the weakness in exports was more pronounced, with five of the last 12 months recording a contraction. In comparison, the import decline was only in two months. The situation is unlikely to improve for exports due to the direct impact of tariffs on trade and the indirect impact through an expected slowdown in the global economy.
Chart of the week: Politics paradox
India's young population is seen as key to the country’s future. An online survey found that while youth strongly identify as Indians and support liberal values, they avoid political activities or party affiliations.
Follow our data stories on the“In Charts" and“Plain Facts" pages on the Mint website.
