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India's economic outlook for the second half of fiscal 2025-26 is showing signs of improvement, according to a Finance Ministry report released on December 26. Despite a dip in growth to 5.4% in the July-September quarter, leading to a downgrade in GDP growth forecasts for 2024-25 to around 6.5%, the performance of High Frequency Indicators (HFIs) for October and November suggests a brighter economic landscape. Key factors include an increase in minimum support prices for rabi crops, high reservoir levels, and robust rural demand, evidenced by significant growth in two and three-wheeler and tractor sales. Additionally, urban demand is recovering, with a 13.4% year-on-year increase in passenger vehicle sales. However, concerns remain regarding job opportunities and wage levels affecting consumption, alongside structural factors contributing to the earlier slowdown. The Reserve Bank of India's recent reduction of the cash reserve ratio is expected to stimulate credit growth. 
Published: Dec 26 2024, 8 pmeznews.inIndia is currently navigating a cyclical economic downturn, with GDP growth projected at 6.1% for both FY25 and FY26, according to a report by Nirmal Bang. While rural growth shows signs of improvement, it remains fragile compared to urban areas. The report highlights a modest recovery in private capital expenditure, spurred by initiatives like the Production Linked Incentive (PLI) scheme and a renewed focus on renewable energy and real estate. However, this recovery is not expected to significantly impact overall growth. The government is maintaining fiscal discipline, targeting a fiscal deficit of 4.5% of GDP by FY26, and is unlikely to introduce fiscal stimulus unless a prolonged slowdown is evident. Additionally, the Reserve Bank of India has refrained from easing monetary policy. Despite these challenges, India's market capitalization-to-GDP ratio has reached a record high of approximately 135%, indicating potential for future growth amid ongoing structural reforms.
Published: Jan 14 2025, 9 ameznews.inThe Indian rupee is set to open at a record low of 86.60 against the U.S. dollar, down from 86.5750 in the previous session, as market pressures continue to mount. This decline follows a significant 0.70% drop on Monday, marking the rupee's largest fall in over two years and a total decline of 1.1% this month. Factors contributing to this trend include the dollar's strength ahead of Donald Trump's inauguration, potential interest rate cuts by India's central bank to stimulate growth, and rising oil prices, with Brent crude nearing $81 per barrel. The dollar index eased slightly to 109.64 after reaching 110, while foreign investors sold a net $165.5 million in Indian shares on January 12, although they purchased $12.1 million in bonds. Market analysts suggest that the dollar/rupee pair may continue to rise unless a reversal point is reached.
Published: Jan 14 2025, 8 ameznews.inThe India Energy Week (IEW) 2025, set to take place in New Delhi from February 11 to 14, will highlight India's growing significance as a major energy consumer, with participation from over 70,000 delegates across 120 countries. The event will feature the launch of key reports by the International Energy Agency (IEA) and OPEC, including an oil outlook report and a natural gas sector analysis. Oil Secretary Pankaj Jain emphasized the conference as a platform for global collaboration on energy innovations, including clean cooking solutions, showcased through the Clean Cooking Ministerial. The event will also host a roundtable with Prime Minister Narendra Modi and top energy CEOs, alongside the Avinya Energy Startup Challenge 2.0, promoting India's start-up ecosystem. With over 700 exhibitors and participation from various Indian ministries, IEW 2025 aims to address strategic themes such as decarbonization and energy equity.
Published: Jan 13 2025, 8 pmeznews.inChina remains the dominant buyer of Indian iron ore, accounting for approximately 90% of shipments, despite a significant year-on-year decline in exports. For the nine-month period ending January 2025, India's iron ore exports fell nearly 30% to 22.67 million tonnes, with China importing only 20.17 million tonnes due to excess steel stocks and poor demand. This marks a decrease from 24.75 million tonnes during the same period last year. The decline in shipments is attributed to tighter import policies in India and a global downturn in steel demand, which has also led to lower iron ore prices. Despite these challenges, China increased its overall iron ore imports by about 5% in 2024, reaching 1.24 billion tonnes, as it capitalized on lower prices while steel production fell by 2.7% in the same period.
Published: Jan 13 2025, 8 pmeznews.inIn a recent press conference, Indian Army Chief General Upendra Dwivedi outlined significant modernization plans, including the procurement of 354 Zorawar light tanks, currently undergoing trials, with an estimated cost of ₹17,000 crore. He highlighted upcoming contracts worth ₹10,500 crore for range-enhancing ammunition for Pinaka rocket systems and an ₹8,000 crore deal for 307 Advanced Towed Artillery Guns (ATAGS), expected to be finalized by the fiscal year's end. General Dwivedi described the situation at the Line of Actual Control (LAC) as "stable but sensitive" following recent disengagements. He also noted improvements in the production capacity of T-72 tank upgrades and emphasized the Army's ongoing restructuring efforts, including the establishment of Integrated Battle Groups and enhanced emergency procurement powers. Additionally, he confirmed that funds allocated for the Shinku La tunnel project would be returned to the Ministry of Defence, underscoring the Army's evolving operational needs.
Published: Jan 13 2025, 9 pmeznews.inIn a recent address in New Delhi, outgoing US Ambassador to India Eric Garcetti highlighted the significant demand among Indians for US visas, stating that over 5 million Indians currently hold such visas. He described this demand as an "incredible opportunity" for strengthening US-India relations, despite concerns regarding potential stricter immigration policies under President-elect Donald Trump. Garcetti noted that since his tenure began, the US has increased visa issuance by over 60%, successfully meeting the demand for first-time student visas in 2024. He praised the contributions of the Indian community in the US, emphasizing their vital roles in education, innovation, and the economy, which he believes enhance America's strength and diversity. Garcetti's remarks underscore the ongoing importance of the US-India partnership amid evolving immigration dynamics.
Published: Jan 13 2025, 9 pmeznews.inIn a significant move to enhance transparency in arrest procedures, the Central Board of Indirect Taxes & Customs (CBIC) has updated its guidelines following a Delhi High Court ruling. The amendment mandates that officials must now provide written communication of the grounds for arrest to individuals, ensuring they are fully informed. This change stems from the case of Kshitij Ghildiyal vs. the Director General of GST Intelligence, where the court emphasized the necessity of written documentation. Under the new instructions, officials are required to explain the grounds of arrest and include this information as an annexure to the Arrest Memo, with an acknowledgment obtained from the arrested individual. This update builds on previous guidelines from August 2022, which only required verbal explanations and documentation in the arrest memo, marking a crucial step towards greater accountability in the arrest process.
Published: Jan 13 2025, 8 pmeznews.inThe Indian government is set to revamp its interest equalisation scheme for exporters, focusing on value-added products while excluding non-value-added items, raw materials, and cereals like cotton yarn and rice. This decision follows directives from the Finance Ministry to the Commerce Department aimed at promoting the manufacturing and export of labour-intensive and high-tech goods. Initially launched in April 2015, the scheme provided subsidised export credit to both MSME and non-MSME exporters, covering around 410 identified products. The latest extension for MSME exporters lapsed on December 31, 2024. The revamped scheme is expected to be announced in this year’s Budget, with interest rates likely remaining unchanged at 2% for non-MSME and 3% for MSME exporters due to budgetary constraints. The government may retain many items from the original list while considering the inclusion of new sectors like electronics and pharmaceuticals to stimulate growth.
Published: Jan 13 2025, 8 pmeznews.inIndia's crude oil trade with Russia is expected to remain stable in the short term, despite recent US sanctions on 183 vessels involved in shipping Russian crude, which have pushed Brent prices above $81 per barrel, the highest since August 2024. A senior government official indicated that tankers chartered before January 10, 2024, can offload their cargoes in India without facing sanctions until March 12. While the sanctions may complicate future negotiations for term contracts with Middle Eastern suppliers, the official reassured that an oil shortage is not anticipated, citing sufficient spare capacity from OPEC and other countries. Indian refiners are preparing to negotiate for more barrels, although they may face higher prices without the usual discounts from Russian suppliers. The Indian government is also assessing the implications of sanctions on companies like Vostok Oil, in which Indian firms have a stake.
Published: Jan 13 2025, 8 pmeznews.inThe Karnataka Milk Federation (KMF) has partnered with Chai Point for the Maha Kumbh Mela in Prayagraj, running from January 13 to February 26, with the ambitious goal of selling over 1 crore cups of tea. Chai Point has established ten outlets at the event, and the initiative also seeks to set a Guinness World Record for the highest number of tea cups sold at a single event. Alongside tea, the outlets will feature a range of Nandini products, including sweets and milkshakes. This collaboration follows KMF's recent foray into the whey protein market, highlighted by the launch of whey protein-based idly and dosa batters in Bengaluru. Additionally, KMF is expanding its reach into the Delhi market, aiming to capture 10 lakh litres of milk per day within the next two years.
Published: Jan 13 2025, 8 pm
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