Business & Economy News: 6.6% Growth Forecast and Action-Packed Agenda

Top Business & Economy Headlines From India 

World Bank retains India's economic growth forecast at 6.6% for FY25

The World Bank has maintained its growth forecast for India at 6.6% for the fiscal year 2024-25 (FY25). Despite a projected moderation in the pace of expansion, India is set to remain the fastest-growing among the world's largest economies. Following a high growth rate in FY 2023/24, the World Bank anticipates steady annual growth of 6.7% on average over the next three fiscal years starting in FY 2024/25, as highlighted in its latest biannual Global Economic Prospects report.

Rural jobs, roads, housing next on government radar

Following the announcement of plans to construct 30 million houses under the Pradhan Mantri Awas Yojana (PMAY), the government is considering further measures to support rural development as part of its 100-day agenda and medium-term roadmap. Proposed initiatives include enhancing support for rural housing beneficiaries, streamlining the job guarantee scheme, expanding the rural road network, and intensifying efforts to alleviate poverty and boost women's income.

Need to build on success of PLI schemes, recent FTAs, PPP governance model:

Piyush Goyal Commerce and Industry Minister Piyush Goyal has urged senior government officers to build on the successes of the production-linked incentive (PLI) schemes and recently signed free trade agreements (FTAs). He emphasized the importance of focusing on the public-private partnership (PPP) model of governance. This directive was issued during a review meeting attended by senior officers from the commerce and industry departments, including Commerce Secretary Sunil Barthwal and DPIIT Secretary Rajesh Kumar Singh.

Polls over, govt draws final sketch of 100-day action plan

The BJP-led National Democratic Alliance (NDA) government is finalizing a 100-day action plan aligned with the Viksit Bharat 2047 goals. This agenda, prepared by bureaucrats and Niti Aayog officials and overseen by the cabinet secretary, outlines measures requiring legislative approval or funding, likely to be announced in the forthcoming budget.

Chinese-Indian JVs may get Govt nod, but with a rider

The government may permit new joint ventures (JVs) between Chinese and Indian companies, provided the Indian partner holds a majority shareholding. This development comes as the Department for Promotion of Industry and Internal Trade (DPIIT) engages with industry CEOs to facilitate these JVs, particularly in the electronics and automobile sectors. Proposed manufacturing projects, which had been stalled, are now progressing, buoyed by the government's softened stance and the successful JV between MG Motor India and JSW.

Major overhaul on cards to improve data quality, frequency

The new government is planning a comprehensive overhaul of the country's statistical system to enhance data quality and survey frequency. This initiative aims to address data leakages and improve the methodology for computing macro-economic indicators. The proposed changes are part of the government's 100-day plan and are currently under review.

India reports sixth strongest hiring outlook globally in Sept quarter

Survey India ranks sixth globally for employment outlook in the September quarter of 2024, with 30% of businesses planning to increase their staff over the next three months, according to a survey by ManpowerGroup. However, India's Net Employment Outlook (NEO) has weakened by 6% from the previous quarter and the same period last year, reflecting cautious hiring intentions.

IT ministry to meet industry over draft digital competition law on Jun 13

The IT Ministry has scheduled a meeting with industry associations to discuss the draft Digital Competition law, which has sparked debates between startups and tech giants. The meeting, chaired by IT Secretary S Krishnan, will address concerns raised about the bill's impact on data and digital markets.

RBI must review plan to raise provisions against infra loans

The lobby group for Indian non-banking lenders has requested a review of the RBI's proposal to increase provisions for infrastructure project loans. The central bank proposed a hike in provisions to 5% of the total loan amount during the construction phase, up from the current 0.4%.

Regulator plans to ease compliance burden on insolvency professionals

The Insolvency and Bankruptcy Board of India (IBBI) proposes to reduce the compliance burden on insolvency professionals by streamlining the information and data submission requirements. This initiative aims to enhance decision-making without compromising accuracy.

General insurance companies can't reject claims for want of documents

IRDAI The Insurance Regulatory and Development Authority of India (IRDAI) has mandated that general insurance companies cannot reject claims due to lack of documents. This reform aims to simplify and enhance customer-centric insurance solutions.

Auto industry body seeks cut in two-wheeler GST; SIAM suggests three-level slabs based on fuel types

The Society of Indian Automobile Manufacturers (SIAM) has requested the government to reduce GST rates for two-wheelers. It suggested lowering the rate to 18% from 28% for internal combustion engine two-wheelers and to 5% from 12% for zero-carbon emission models like hydrogen-powered vehicles.

Domestic passenger vehicle sales rise 4% in May to 347,492 units

SIAM Passenger vehicle sales in India increased by 4% year-on-year in May to 347,492 units, according to SIAM. This moderate growth is primarily attributed to a high base effect from the previous year.

EV sales soar 40.31% in FY24, two-wheelers lead the charge

Electric vehicle (EV) sales in India surged by 40.31% in FY2024 to 1,752,406 units, driven predominantly by electric two-wheelers and three-wheelers, which accounted for 94% of all EV sales.

Steel demand expected to grow in range of 9-12% in FY25: Ind-Ra report

Steel demand in India is forecasted to grow by 9-12% during FY25, supported by steady growth in the automobile and infrastructure sectors, according to India Ratings and Research.

DPIIT, Flipkart, toy makers to meet on Jun 12 on ways to increase sourcing

The Commerce and Industry Ministry, Walmart group firm Flipkart, and domestic toy makers are set to discuss strategies to enhance sourcing and onboard manufacturers onto the e-commerce platform, aiming to boost India's position in the global toy supply chain.

Paint sector to double its production capacity to 7.8 blpa by FY27, says CRISIL report

The organized paints sector in India is expected to double its production capacity to approximately 7.8 billion liters per annum by FY27, with significant investments planned, as per a CRISIL report.

NHAI to monetize assets with Rs 15,000 to Rs 20,000 crore in 2024-25 through InvIT

The National Highways Authority of India (NHAI) plans to monetize road assets worth Rs 15,000-20,000 crore in the current fiscal year through its infrastructure investment trust, NHIT, formed to support the national monetization pipeline.

Electric vehicle owners can soon sell surplus battery power back to grids

Power distribution firms are developing vehicle-to-grid (V2G) technology that will allow EV owners to sell surplus power stored in their vehicle batteries back to the grid, akin to rooftop solar schemes.

End-use curbs for coal supplies to non-power units to go

The Union coal ministry plans to provide long-term coal linkages to non-regulated sectors like cement, steel, sponge iron, and captive power units without end-use restrictions to increase coal availability.

India eyes oil deals with nations including Russia, minister says India is exploring more oil import deals, including discounted agreements with Russia, as part of a strategy to provide affordable energy to consumers, according to Oil Minister Hardeep Singh Puri.

Pharma's eco pill: Sustainable packaging as new prescription for planet

Pharmaceutical companies are adopting sustainable packaging to reduce their carbon footprint, driven by regulatory requirements and environmental goals. Merck Life Science, for instance, has replaced single-use glass bottles with reusable steel drums for chemical transportation.

Weather changes drove Indian pharma market growth to 5.2% in May

The Indian pharmaceutical market grew by 5.2% in May 2024, driven by increased demand for anti-infectives and respiratory therapies due to weather changes, according to market research firm Pharmarack.

Exports from special economic zones up 4% to $163.69 bn in 2023-24

Exports from India's special economic zones (SEZs) rose by over 4% to $163.69 billion in 2023-24, despite a dip in the country's total shipments, contributing significantly to the overall export performance.

Govt restricts import of gold jewellery and parts amid unusual surge

The government has imposed restrictions on the import of gold jewellery and parts from all countries, except those with free-trade agreements like the UAE, in response to a surge in inbound shipments.

Tyre exports from India recorded at Rs 23,073 cr in FY24

India's tyre exports for the fiscal year 2023-24 stood at Rs 23,073 crore, maintaining the previous year's level despite earlier setbacks due to geopolitical and economic challenges.

India’s seafood exports decline due to Red Sea crisis and overseas demand slump in FY24

India's seafood exports declined in FY24 due to the Red Sea crisis and reduced overseas demand, resulting in a 5.39% drop in rupee terms and an 8.80% decline in dollar terms.

Discalimer: The contnet produced here is aggrigated from various Media Reports & Press Releases.