The country’s economic growth in the April-June quarter of the current fiscal year touched a four-quarter high on the back of robust performances by services, farm, manufacturing and mining sectors and a favourable base, but patchy monsoon rains and a global slowdown could hurt expansion in the months ahead.
The government has announced a five-day special session of Parliament, sparking speculation about its purpose. The session, which will take place in September, may be held in the new Parliament building and could be an opportunity to showcase the structure. The session is expected to focus on the government's major achievements, and there will be no Question Hour or private members' bills. A resolution or sense of the House on 'Amrit Kaal' may be passed.
India's chief economic adviser, V Anantha Nageswaran, believes that the country's growth prospects remain strong due to robust investments and consumption. Despite external risks, India's economy grew by 7.8% in the June quarter, making it the fastest-growing major economy in the world. Nageswaran highlighted that private sector investment has already taken off, supported by the government's capital expenditure push.
The bilateral trade between countries increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.
The government is likely to put LPG (cooking gas supplied to households in cylinders) price on freeze for the rest of the year, after announcing a cut of Rs 200 per cylinder on Tuesday, providing a relief of over Rs 18,500 crore to consumers during the remaining seven months of the fiscal.
An ET analysis shows that LPG prices were cooling off even before the cut. Inflation in LPG had dropped down to 4.9% in July, compared with 11.8% in the April-June quarter and 18.3% in 2022-23.
The government on Tuesday promised relaxations in the Rs 26,000-crore production-linked incentive (PLI) scheme for the auto sector, and said that it will extend the tenure of the zero-emission technology programme by one more year on demands made by the industry.
Commerce and industry minister Piyush Goyal highlighted the challenges faced by the Indian economy, including geopolitical tensions, inflation concerns, and slowing growth. He emphasized the need for focusing on the value, volume, and quality of exports. Goyal stated that India aims to unlock new markets through free trade agreements, collaborations with other countries, and investments in technology.
Reliance Industries, India’s largest company in terms of market value, has appointed chairman and managing director Mukesh Ambani’s three children — Isha, Akash and Anant — to the board, an indication that they will eventually helm the oil-to-telecom conglomerate.
The deadline for the revised PLI scheme was extended for the second time in July, after stakeholders sought more time to file the paperwork. The revised scheme has a financial outlay of ₹17,000 crore, more than doubling the incentives given in the previous version of the scheme.
A senior bank executive aware of the developments said the portal will help lenders connect seamlessly on such fraud cases and stop and trace funds being transferred from one account to multiple accounts.
The approach of digital public infrastructure (DPI), which has gained global prominence, can also help in area of climate adaptation and mitigation going forward, chairman and co-founder of Infosys and the founding chairman of UIDAI, Nandan Nilekani said.
Foreign direct investment (FDI) equity inflows dropped 34% to $10.9 billion during the June quarter from the year-ago period, government data showed. Amid an aggressive investment pitch by India, government officials said companies are holding back on fresh funding due to the slowdown in Europe and the US, which have been aggravated by geopolitical tensions.
The commerce and industry ministry said on Sunday that it directed trade promotion body Agricultural and Processed Food Products Export Development Authority (Apeda) not to register contracts below $1,200 per tonne. Existing contracts below $1,200 per tonne have been kept in abeyance.
Total FDI inflows, including fresh FDI equity inflows, reinvested earnings and other capital, were $17.56 billion against $22.34 billion a year ago. Singapore was the top source of FDI with inflows of almost $3 billion, followed by the Netherlands, at $1.5 billion. FDI from Mauritius, Singapore, the US and the UAE declined in the first quarter of FY24.
India has imposed restrictions on the export of basmati rice, following the imposition of a 20% duty on parboiled rice. The government has set a minimum export price of $1,200 per ton for basmati rice shipments. Contracts below this price will be put on hold and evaluated by a committee.
Foreign investors have slowed down their inflows into Indian equities in August due to higher crude oil prices, resurfacing inflation risks, and rising US bond yields. FPIs invested a net amount of Rs 10,689 crore in Indian equities this month, compared to over Rs 40,000 crore in each of the past three months.
The government is expected to take up the issue of penal charges levied by banks for non-maintenance of minimum balance with the Reserve Bank of India, as these yielded Rs 21,000 for state-run and private lenders over the last five years. While a government official insisted that state-run banks such as SBI do not adopt such practices, he acknowledged the problem and said the issue will be taken up with RBI.
The government is initiating fresh measures to ensure that rice prices remain under control and overall inflation comes down. On Friday, the Centre imposed 20% export duty on parboiled rice (rice partially boiled with husk), barely a week after imposing 40% duty on exports of onion. Besides, it is expected to notify a minimum export price (MEP) for basmati rice, pegged at $1,200 (Rs 99,000) a tonne.
India and the European Union have made good progress in the ongoing three negotiations- India-EU Free Trade Agreement; a standalone Investment Protection Agreement; and a Geographical Indications Agreement, the government said Saturday. The commerce and industry ministry said in a statement that the two sides discussed their market access issues and review the progress made so far under the India-EU Trade and Technology Council.
After a hiatus of almost a year, India has finally added a new unicorn. Mumbai-based quick commerce startup Zepto, founded by Stanford University dropouts Aadit Palicha and Kaivalya Vohra, has bagged afresh $200 million (around Rs 1,653 crore) in funding led by new investor StepStoneGroup at a valuation of $1.4 billion, becoming the first unicorn of 2023.
With rainfall deficiency of up to 40%, the dry weather conditions are likely to extend for a few days in September as well, said experts. As most of the kharif crops are waiting for a spell of showers, this extended period of dryness may not auger well for many kharif crops.
The Employees' Provident Fund Organisation (EPFO) is in discussions with the finance ministry to reinvest its redemption proceeds from exchange-traded funds (ETFs) back into the stock market. The EPFO aims to maximize equity returns while protecting gains from market volatility. The proposal, which would increase retirement funds flowing into equities, needs approval from the finance ministry.
India's rice output is projected to decline by 5% due to uneven rains in key rice-producing states like West Bengal, Odisha, Jharkhand, Chhattisgarh, eastern Uttar Pradesh, and Bihar. The ICAR-National Rice Research Institute has suggested that farmers in these states opt for short-duration rice crops to mitigate the impact of the erratic monsoon. The deficient rainfall has affected the sowing and growth of paddy crops, raising concerns about rice production. Additionally, global rice prices are expected to rise due to an estimated 7 million-tonne deficit in global rice production in FY24, driven by El Nino and unfavorable weather conditions.
Addressing the opening session of the two-day TIMM in Jaipur, he said the meeting aims to formulate fair, inclusive and sustainable trade and trade-related investment policies. "While recognising the importance of smooth logistics for international trade, he said that paperless trading is a critical step towards streamlining cross border transactions, reducing administrative delays and enhancing the pace in trade operations," the commerce and industry ministry said in a statement.
While the ratings agency continues to say India's overall debt level remains way above that of similar-rated peers, strangely it doesn't adequately appreciate New Delhi's lower external debt level compared with others, a senior finance ministry official said. The official said the Centre's fiscal deficit dropped from 9.2% of GDP in FY21 to 6.4% in FY23.
Shares of Jio Financial Services, the demerged financial services unit of Reliance Industries, fell by 5% on Wednesday to hit its lower circuit limit for the third day running. The stock declined 5% to hit its lower circuit limit of Rs 227 on the BSE.
India has asked for a review of the agreement to eliminate barriers and misuse of the trade pact. Concerns have also been raised about routing of goods from third countries in India through Asean members by taking the duty advantages of the agreement. Trade facilitation, customs cooperation, and economic and technical cooperation are likely to be part of the pact review.
India's economy is expected to have grown by 7.8% in the June quarter, supported by resilient domestic demand and government capital expenditure. The services sector is seen as the biggest contributor to growth, with construction activity providing support. Manufacturing also witnessed robust growth, driven by lower commodity prices.
Union food secretary Sanjeev Chopra told reporters on Wednesday that the target for procurement of rice was set after holding a meeting with food secretaries of all states. During the current kharif marketing season, which ends on September 30, the government agencies have procured 495 lakh tonnes of rice.
The government will purchase an additional 200,000 tonnes of onions for the buffer stock at a "historically high" price of ₹2,410 per quintal to guard their interests, Union minister for commerce and consumer affairs Piyush Goyal told onion farmers
Finance and corporate affairs minister Nirmala Sitharaman has called for the simplification of official processes in order to improve the delivery of public services. She emphasized the need for consistency in reform policies and encouraged officers to utilize government resources effectively.
The government on Tuesday asked the Supreme Court to vacate its November order that restrained environmental release of genetically modified (GM) mustard, saying "the huge policy implications involved deserve early resolution" of the matter as the growing season is fast approaching in September and October.
The Indian tech sector has seen a significant increase in the number of women employed in the past decade. In 2012-13, there were 9 lakh women employed in the sector, making up 30% of the workforce. Today, that number has doubled to over 2 million, accounting for 36% of the total workforce.
The onion trade has requested the government to introduce a floor price for calculating export duty on onions in order to ensure fairness among all stakeholders. Bans and restrictions on wheat, rice, and onion exports are causing revenue losses and inventory pileups for businesses. The government has imposed a 40% export duty on onions to control rising prices, but there is concern that certain ports and stakeholders may have an advantage.
The IPO of stainless steel flexible hose manufacturer Aeroflex Industries Limited (AIL) will open on August 22 and close on August 24. The company has already raised Rs 104 crore from anchor investors. The IPO includes a fresh issue of equity shares worth up to Rs 162 crore and an offer for sale of up to 1.75 crore equity shares by promoter body Sat Industries.
India has not had an economic census for nearly a decade. The sixth economic census was conducted in 2013, results of which were made available in 2016. The data collection for the seventh economic census started in 2019 and could only be finished in 2021, owing to Covid.
The imposition of a 40% export duty on onions in Maharashtra has resulted in a drop in prices, angering farmers and putting the ruling Bharatiya Janata Party (BJP) on the defensive. Opposition parties are urging farmers to vote against the BJP in the upcoming parliamentary elections to express their dissatisfaction. The government imposed the duty to control rising onion prices, but farmers argue that it will lead to financial losses.
In several cases, such as Himachal Pradesh and other states, contractual workers were absorbed as full-time government employees much later during their service and did not see full accumulation from NPS at the time of exit, government sources told TOI.
