Digital News Dispatch: India Business and Economy News Today

6th May 2024, TICE Digital News Dispatch: Your Daily Brief on Top Business & Economy News from India

India Urges ADB to Prioritize Growth and Poverty Reduction

India's call to the Asian Development Bank (ADB) to uphold its focus on poverty reduction alongside sustainable growth reverberated during the 57th Annual Meeting. Vikas Sheel, India's Temporary Alternate Governor at the ADB, emphasized the critical role the bank plays in fostering economic development and reducing poverty across the Asia Pacific region.

Concerns Rise as Rural Wage Growth Stumbles

Rural wage growth in India faces a setback, with real wages contracting for 25 out of 27 months until February 2024. This contraction, coupled with rising rural inflation, paints a challenging picture for the hinterland's economic recovery, suggesting a longer path ahead.

Digital Payments Surge in India

External Affairs Minister S Jaishankar highlighted India's remarkable stride in digital payments, revealing that Indians make 10-12 billion cashless transactions monthly. The significant gap between India's digital payment volumes and those of the US underscores India's prowess in digital infrastructure.

Securitisation Market Thrives Amid Funding Diversification

India's securitisation market witnesses a booming resurgence, hitting record highs in FY24 despite the absence of major players like HDFC Ltd. The market's resilience, coupled with increased issuance diversity, reflects a positive trajectory in financial markets.

Housing Credit Soars, Boosting Real Estate Sector

Outstanding credit to the housing sector in India surges by nearly Rs 10 trillion over the last two fiscal years, reaching a record high in March 2024. This growth, attributed to a post-pandemic revival in the real estate market, signals optimism for the housing sector's future.

Government Initiatives to Ease Liquidity and Combat Money Laundering

The Indian government announces plans to repurchase short-term government bonds, aiming to lower yields and enhance liquidity. Additionally, India's Financial Intelligence Unit arms itself with AI tools to combat money laundering and terrorist financing, underscoring efforts to strengthen economic safeguards.

Measures to Boost Electronics Manufacturing Competitiveness

The Ministry of Electronics and Information Technology seeks stakeholder input to formulate a production-linked incentive scheme for electronics components. Benchmarking competitiveness and export potential are key focus areas to bolster India's manufacturing capabilities.

Quality Control Measures for Spice Industry

India gears up to enforce stricter guidelines on ethylene oxide usage in the spice industry to enhance quality standards for domestic consumption and exports. The move underscores the government's commitment to ensuring product safety and compliance.

Hospitality Sector Seeks Industry Status for Growth

The hospitality sector advocates for industry status at the state level and infrastructure recognition at the national level to attract investments and support the government's tourism development initiatives.

Revamping Urban Transport and Goods Movement

India unveils plans for a comprehensive overhaul of urban transport systems, emphasizing integration, clean fuel adoption, and incentives for greener goods transport. The initiative aims to enhance efficiency and sustainability in urban mobility.

Stable Coal Stocks Amid Rising Power Demand

Thermal power plants in India maintain stable coal stocks despite surging electricity demand fueled by rising temperatures. With 68% of normative coal stock levels, power generation remains steady amidst seasonal fluctuations.

Healthcare Sector Poised for Post-Pandemic Recovery

India's medical tourism sector anticipates a rebound, with projections indicating a surpassing of pre-pandemic levels in 2024. This resurgence bodes well for India's healthcare industry and its role in global healthcare services.

Trade Negotiations and Policy Changes

India raises concerns over pharmaceutical pricing control in Australia during bilateral discussions, signaling a push for fair market access. Additionally, India extends duty-free imports of yellow peas while lifting restrictions on onion exports, demonstrating flexibility in trade policies.

Strengthening Digital Payment Systems

India and Ghana explore collaborations to integrate their payment systems, fostering instant and low-cost fund transfers. Discussions also encompass broader digital transformation initiatives and trade agreements, highlighting opportunities for mutual growth.

Amid evolving economic landscapes and global partnerships, India continues to navigate challenges while leveraging its strengths to drive inclusive growth and prosperity.

Stay tuned to TICE Digital News Dispatch for more updates on business and economy.