Top Economic News: NPCI Eyes Rupay, Inflation Data & Key Updates

Top Economic News

RBI Warns Unchecked Inflation Could Harm India's Real Economy, Despite Strong Growth Outlook

The Reserve Bank of India (RBI) has cautioned that unchecked inflation could damage India’s real economy, even as strong festive demand and recovery in the farm sector have mitigated the impact of weaker second-quarter demand. The central bank highlighted that inflation is already affecting urban consumption and corporate earnings, and if not controlled, could undermine prospects for industry and exports.

GDP Growth Likely to Slip to 6.5%, FY25 Growth Estimate at 7%: ICRA

ICRA has projected India’s real GDP growth for the September quarter to fall to 6.5% due to factors such as heavy rainfall and weaker corporate performance. However, the rating agency maintains its FY25 growth forecast at 7%, expecting a recovery in the latter half of the fiscal year despite concerns over urban demand slowdowns.

NPCI Eyes Rupay, UPI Expansion to 10 Countries

The National Payments Corporation of India (NPCI) is in discussions with 10 countries to expand the reach of Rupay and Unified Payments Interface (UPI). While three countries have already signed agreements, further implementation will take a few more weeks. The NPCI hopes to tap into a global market for these platforms.

Read More: RBI Expects UPI Transactions to Hit 1 Bn: Watch India's UPI Journey!

New Norms Mooted to Ease Corporate Liquidation

The Insolvency and Bankruptcy Board of India (IBBI) has proposed several changes in the liquidation process under the Insolvency and Bankruptcy Code (IBC). The aim is to enhance efficiency, improve stakeholder confidence, and manage funds more effectively during corporate liquidation processes.

Attracting and Retaining Talent Remains Key Concern in Banking: KPMG Report

The KPMG Banking CEO Outlook 2024 report reveals that attracting and retaining skilled talent is a major concern for the banking sector as it undergoes technological transformation. Despite challenges like talent shortages and cybersecurity threats, CEOs are optimistic about the sector’s growth potential, especially through the adoption of emerging technologies such as generative AI.

Earnings Growth Expected to Moderate to 12-14% CAGR Over FY24-26

A report from Motilal Oswal Private Wealth (MOPW) indicates that earnings growth in India will moderate to 12-14% CAGR between FY24 and FY26. The report points to external factors such as geopolitical tensions and changes in global markets impacting India’s earnings outlook.

Insurtech Sector Attracted $2.5 Billion Funding, More Investment Expected

India’s insurtech sector has attracted over USD 2.5 billion in funding, with 150 insurtech companies, including 10 unicorns and several "minicorns." Despite challenges, the sector has shown significant revenue growth, and more investments are expected as opportunities expand.

National Skills Development Fund to Invest Surplus in Term Deposits for Better Returns

The National Skills Development Fund (NSDF) plans to invest surplus funds in term deposits to improve returns on the corpus used for skills training across the country. The government has invited bids from public sector banks to manage Rs 900 crore in fixed deposits for a one-year term.

Read More: Angel Tax Removal: Not a Panacea for Manufacturing Startups and SMEs

Majority of Steel Imports Under FTAs, Making Any Duty Hike Ineffective, Says Steel Secy

Around 62% of steel imports into India come from Free Trade Agreement (FTA) countries, making any potential customs duty hikes ineffective. Steel Secretary Sandeep Poundrik acknowledged the supply glut from increased imports but emphasized that raising duties would have limited impact on steel shipments under these FTAs.

More Wedding Days, Social Media to Drive Retail Business This Shaadi Season

The upcoming wedding season, with an increased number of wedding days from October 2024 to March 2025, is expected to boost retail business in India. Increased awareness among brides and grooms, partly driven by social media, is anticipated to push spending to new heights, generating an estimated Rs 6 trillion in business.

Online Platforms Changing Buying Pattern Among Urban Consumers

Urban consumers, especially in metro cities, are increasingly turning to online platforms for their shopping needs, shifting from “top-up” to “stock-up” purchases. Quick commerce and e-commerce sales have surged by 30% quarter-on-quarter, driven by the convenience and variety offered by online platforms.

India Drops 2 Places But Remains Among Top 10 Climate Performers: Report

India has slipped two spots in the Climate Change Performance Index (CCPI 2025), but still remains in the top 10 countries for its efforts to combat climate change. India’s low per-capita emissions and fast-growing renewable energy deployment have contributed to its strong performance.

States Procure Only 2.6% of Soyabean Approved by Centre Under Price Support Scheme

The procurement of soyabean under the government’s price support scheme has been low, with states purchasing only 2.6% of the approved quantity. This comes amid political issues in Maharashtra and the relaxation of moisture norms for the crop. However, procurement is expected to pick up as moisture levels improve.

PM GatiShakti: 228 Infra Projects Worth Rs 15.89 Lakh Crore Recommended for Approval

Under the PM GatiShakti initiative, 228 large-scale infrastructure projects worth Rs 15.89 lakh crore have been recommended for approval. These projects, spanning ministries like roads and railways, are expected to significantly enhance India’s infrastructure and promote economic growth.

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