TMS episode 630: Center vs states, PLI scheme, small caps, bullet train #TMS | Podcast – Business Standard

The tussle between the Center and some opposition-ruled states over tax decentralization came to light recently when the chief ministers of Kerala and Karnataka openly alleged discrimination. Karnataka leaders even went a step further and staged a protest at the Jantar Mantar in Delhi after taking out full-page advertisements in national dailies claiming losses of Rs 1.8 trillion. Some call it the “south tax movement.” These states have alleged that the Centre’s policies have shrunk their share of shareable taxes. So do states have a case against the Center on tax transfers? And what will this mean for the 16th Finance Commission?

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Clearly, the Center has to strike a delicate balance on the tax decentralization front. In the meantime, the country is doing its utmost to perform a balancing act on another front. Production Linked Scheme keeps busy. So far it has proven to be a mixed bag. While it has delivered expected results in some sectors, it has yet to take off in others. A recent review of the three-year-old scheme produced a contrasting picture. So how can India adjust the PLI scheme?

An adjustment to the PLI would indeed help India realize its manufacturing dream. Moving on, market volatility with sharp swings between losses and gains has continued into the current month as well. While benchmark indices have been flat so far in February, it has been largely one-way traffic for small-cap stocks that have been hit with sharp cuts. So will this downward trend continue?

Very soon, India’s financial capital will be connected to Ahmedabad via bullet trains. Railway Minister Ashwini Vaishnaw took to Platform X to share an animated video explaining the special features of the Mumbai-Ahmedabad train corridor. Learn more about the key features of this project in this episode of the podcast.

First print: February 17, 2024 | 2:04 am IST

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