The Forward-Looking Survey on Private Sector Capex Investment Intentions (Capex Survey), the first of its kind by the National Statistics Office (NSO) (under MOSPI), was conducted under the Collection of Statistics Act, 2008.

Key Findings

• Private sector CAPEX grew 66% from FY22 to FY25, reaching ~Rs 6.5 lakh crore.
• Manufacturing enterprises accounted for 48% of total private sector CAPEX in FY24-25.
• In 2024-25, most enterprises focused CAPEX on core assets, with others investing in value addition, opportunistic assets, and diverse strategies.

Significance of Capital Expenditure (CAPEX)

• Competitive Advantage: By investing in Capex, companies can enhance their operational efficiency, innovate products or services, and stay ahead of competitors.
• Asset Maintenance and Upgrades: Capex is needed to upgrade technology, or expand production capacity. 
• Investor Confidence: Capex signals to investors that the company is committed to its long-term growth and value creation.
• Strategic Decision-Making: Capex decisions reflect strategic priorities, indicating where resources are allocated to drive future growth.

Challenges hindering private sector Capital Expenditure

• Difficulty in mobilizing large equity and affordable debt.
• Project structuring issues related to risk estimation and mitigation.
• Delays in clearances and land acquisition.

Recently, the Lok Sabha passed the Coastal Shipping Bill, 2025. 

Aim of the Coastal Shipping Bill, 2025

• To consolidating laws related to regulation of coastal shipping.
• To regulate all types of vessels, including ships, boats, sailing vessels, and mobile offshore drilling units. 
• To repeal Part XIV of the Merchant Shipping Act, 1958, which regulates ships other than sailing vessels engaged in trade within coastal waters.  

Key Provisions of the Coastal Shipping Bill, 2025

• License for Coasting Trade: License issued by the Director General of Shipping (DGS) is mandatory for foreign vessels while Indian vessels are exempted.
  • “coasting trade” means carriage of goods or passengers by sea from any port or place in India to any other port or place in India, or performing any service within coastal waters but shall not include fishing of any kind.
• Strategic Plan and Database: It mandates the formulation of a National Coastal and Inland Shipping Strategic Plan (revised biennially) and formation of a National Database for Coastal Shipping.
• Authority to DGS: It grants DGS the authority to seek information, issue directions, and enforce compliance.
• Power to Central Government: It empowers the Central Government to provide exemptions and regulatory oversight, ensuring streamlined and efficient coastal shipping operations in India.
• Other Provisions: Regulates foreign vessels chartered by Indian entities, outlines penalties for violations, provides participation of States/UTs in key mechanisms.

The Ministry of Steel has notified the revised DMI&SP Policy 2025 (Domestically Manufactured Iron & Steel Products).

What is DMI&SP Policy?

• Launched in 2017; revised in 2019, 2020, and now in 2025.
• Gives preference to domestically produced steel in government procurement.

Key Highlights of the Revised Policy

• Nodal Ministry: The Ministry of Steel 
• Applicability: All government ministries, departments, and affiliated agencies—including public sector undertakings (PSUs), societies, trusts, and statutory bodies.
  • Covers all procurement above ₹5 lakh.
• Materials covered: Steel in the “Melt & Pour” condition. E.g. flat-rolled steel, bars, etc.
  • Melt & Pour refers to the steel that has been produced in a steel-making furnace and poured into its first solid shape.
• Restrictions on Global Tenders: No Global Tender Enquiries (GTE) for most iron and steel products barring some exception.
• Emphasis on Domestic value addition (DVA): Capital goods used in production of the alloy, such as furnaces and rolling mills, must achieve at least 50% DVA. 
• Reciprocal clause: Bans suppliers from countries that bar Indian firms in their government steel procurement unless the Ministry allows it.

Why Was the Policy Revised?

• Rising Threat from Steel Imports: India is a net importer of finished steel . There was a surge in cheap steel imports from China, Japan, and South Korea while exports fell. 
• Stagnation in global markets: There have been issues of over capacities in production, slump in global steel demand etc. 
• Strategic Role of Government Procurement: Governemnt buys 25–30% of India’s finished steel for infrastructure, railways, and defence. 
  • Revised policy will support local industry through government demand.

Income Tax department has recently notified list of luxury items on which taxpayers will have to pay 1% Tax Collected at Source.

About Tax Collected at Source (TCS)

• It is a tax payable by a seller which he collects from the buyer at the time of sale of goods. 
• Section 206 of the Income Tax Act mentions the list of goods on which the seller should collect tax from buyers.
• Section 52 of the CGST Act, 2017 provides for Tax Collection at Source, by e-Commerce Operator in respect of the taxable supplies
• Seller is categorized as any individual or organization authorized under TCS which includes Central Government, State Government, Local authority, Partnership Firms, etc.

Central Board of Direct Taxes (CBDT) notifies amendments in Income-Tax Rules, 1962 to expand the scope of safe harbour rules.

• Scope of safe harbour rules has been expanded by:
  • Increasing threshold for availing safe harbour from Rs. 200 Crore to Rs. 300 Crore.
  • Including Lithium-Ion Batteries for use in electric or hybrid electric vehicles in definition of core auto components.

Safe Harbour

• Safe harbour is generally defined as circumstances in which the tax authority shall accept the transfer price declared by the taxpayer to be at arm’s length.
• Income-tax Act, 1961 empowers CBDT to make safe harbour rules.