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Rubber industry urges higher import duty on products

Natural rubber prices have seen a decline globally due to oversupply, with countries like Thailand, Vietnam, Indonesia, Malaysia, and India increasing rubber cultivation to meet demand from the automotive industry. Shashi Singh, President of the All India Rubber Industries Association, has called for higher import duties on rubber-finished products to support local producers and farmers. Factors affecting rubber prices include demand and supply conditions, currency fluctuations, and the use of synthetic rubber. India ranks sixth globally in natural rubber production, accounting for 5.8% of the total. The drop in prices has been attributed to weak Chinese demand and the European energy crisis, benefiting sectors like tyres and non-tyres. The government has increased aid to rubber plantations by 23% to incentivize cultivation amidst challenges like price fluctuations, climate changes, and labor shortages. sources

Published:
May 07 2024, 1 pm

FPIs drive Indian equities sell-off in May

Foreign Portfolio Investors (FPIs) have offloaded nearly $6 billion in Indian equities since April 19, with net outflows reaching ₹28,242 crore by May 17, amid election outcome jitters. Despite the India VIX doubling to 20.6, analysts remain unconcerned, citing a lower fear gauge compared to previous election cycles. Domestic institutions have countered the FPI selling spree in May 2024 with increased buying, driven by strong SIP inflows. V K Vijayakumar of Geojit Financial Services attributes the FPI selling to the outperformance of Hong Kong's Hang Seng Index, prompting a shift of funds from expensive markets like India to cheaper markets. The uncertainty surrounding the election outcome has contributed to heightened volatility in the Indian market, with expectations of a dramatic change in FPI equity flows post-election results. sources

Published:
May 19 2024, 6 pm

PNGRB's structured approach for shift to gas-based economy

A committee has been formed by the Petroleum & Natural Gas Regulatory Board (PNGRB) in India to develop a strategy for the growth of the natural gas sector and ensure that infrastructure is not under-utilized. The committee, led by Former Chairperson of PNGRB, D K Sarraf, aims to increase the share of natural gas in the country's energy basket from 6% to 15% by 2030. With a focus on Vision 2040, the committee will assess the demand and supply of natural gas infrastructure in India, including pricing, transportation, and connectivity to demand centers. The report is expected within three months and will address various aspects of the gas value chain, domestic vs. imported gas availability, and the need for structured infrastructure development to meet increasing demand. This initiative comes as the government pushes for the sector's expansion and invites bids for gas network projects, emphasizing the importance of aligning supply with demand to prevent underutilization of infrastructure. sources

Published:
May 19 2024, 4 pm

GDP growth expected to reach 7% in FY24

The Reserve Bank of India, in its monetary policy review in April, projected a GDP growth rate of 7 per cent for the fiscal year 2023-24. India Ratings and Research expects the GDP growth rate for the March quarter to be 6.7 per cent, with an overall projection of 6.9-7 per cent for the fiscal year. The GDP numbers for the fourth quarter and the provisional estimates for the fiscal year are set to be released by the Government on May 31. The country's economy showed growth rates of 8.2 per cent, 8.1 per cent, and 8.4 per cent in the first three quarters of 2023-24. The principal economist at India Ratings and Research, Sunil Kumar Sinha, highlighted the wedge between GVA and GDP growth rates, attributing the higher tax collection as a significant factor. Despite uncertainties in the global economy, the Finance Ministry remains optimistic about India's economic performance, citing resilient growth and steady external sector performance. sources

Published:
May 19 2024, 3 pm

Government recovers ₹852 crore through exporter amnesty scheme

In April, India's merchandise exports saw a 1% increase to $34.99 billion, although the trade deficit widened to $19.1 billion, the highest in four months. The government has recovered about ₹852 crore under an amnesty scheme for exporters to settle defaults in export obligations. Small exporters have requested an extension of the scheme until September. The new foreign trade policy allows for a one-time settlement of defaults in export obligations. Imports also rose by 10.25% to $54.09 billion, driven by a surge in gold imports. Total exports in goods and services for 2023-24 reached $778.21 billion, with merchandise exports at $437.1 billion and services exports at $341.1 billion. The figures are expected to increase further as data compilation continues. sources

Published:
May 19 2024, 2 pm

Sanjiv Puri becomes CII President

Sanjiv Puri, Chairman and Managing Director of ITC Limited, has been elected as the new President of the Confederation of Indian Industry (CII) for the term 2024-25. Rajiv Memani, Chairman of EY India, has been appointed as the President Designate, while R Mukundan, Managing Director & CEO of Tata Chemicals Limited, has taken on the role of Vice President. Puri, an alumnus of IIT Kanpur and Wharton School of Business, has a strong background in agriculture and sustainability initiatives. Memani, a trusted advisor to various organizations, will bring his expertise in mergers and acquisitions to his new role. The CII, under the leadership of these new office bearers, is expected to focus on driving innovation and inclusive growth in the Indian industry. sources

Published:
May 19 2024, 12 pm

Kannauj regains title as India's perfume capital

In a bid to revive the age-old tradition of producing attar, Amazon and Boond Fragrances have joined forces to bring natural perfumes back to the forefront. Once the perfume capital of India, Kannauj in Uttar Pradesh saw a decline in attar production due to the influx of alcohol-based imports. However, the Tandon siblings, Krati and Varun, stepped in during the Covid pandemic to promote natural and oil-based perfumes, creating Boond Fragrances. Sourcing raw materials from local farmers, the siblings have reintroduced attar using traditional techniques like _Degh-Bhapka_, with the help of Amazon's marketplace to reach a wider audience. Boond's products, including the evocative _Maati_, have garnered global interest, providing employment opportunities for artisans and reviving the essence of Kannauj's perfume-making heritage. sources

Published:
May 19 2024, 9 am

FSSAI urges compliance with fruit ripening norms

The Food Safety and Standards Authority of India (FSSAI) has issued a warning against the use of calcium carbide for artificial ripening of fruits due to its health risks, including dizziness, vomiting, and skin ulcers. The FSSAI has directed food safety departments across all states and Union Territories to take strict action against violators under the FSS Act, 2006. The advisory comes during the crucial mango season, emphasizing the dangers of using calcium carbide, which releases harmful acetylene gas containing arsenic and phosphorus. The FSSAI has highlighted the safer alternative of ethylene gas for fruit ripening and urged traders, fruit handlers, and Food Business Operators to comply with the regulations to ensure food safety. sources

Published:
May 18 2024, 8 pm

CEA Nageswaran urges Indian youth to embrace AI future

In a speech at the CII's Annual Business Summit 2024, Anantha Nageswaran, Chief Economic Advisor to India's Finance Ministry, emphasized the importance of preparing the country's youth for the impact of Artificial Intelligence (AI) on their lives and employment prospects. Nageswaran highlighted the need to focus on the physical health of the youth cohort alongside AI readiness to achieve India's goal of becoming a developed country by 2047. He also addressed challenges related to economic growth, energy security, and global financial stability, stressing the importance of skilling, employability, and manufacturing to sustain high levels of growth. Nageswaran expressed confidence in addressing employment generation challenges through improved infrastructure and bank balance sheets, while acknowledging the need for continued efforts in skilling and learning outcomes. The government's approval of an AI mission with a significant budget allocation reflects India's commitment to preparing for the future of technology and job opportunities in the sector. sources

Published:
May 18 2024, 8 pm

Reconsider sachetisation of F&O trade to protect savings: CEA

In a speech at the CII’s Annual Business Summit, Chief Economic Advisor V Anantha Nageswaran warned against the sachetisation of futures and options (F&O) trade, emphasizing the need for different financial literacy for such investments. Nageswaran highlighted the importance of ensuring that the capital market grows in areas where Indian household savings can be utilized productively, cautioning against the risks associated with F&O trading. This comes amidst a decline in net household savings and a significant increase in investments in mutual funds and shares. Finance Minister Nirmala Sitharaman also expressed concerns about the unchecked growth in retail F&O trading, urging regulatory bodies to safeguard investors' interests. Sebi chairperson Madhabi Puri Buch echoed these sentiments, emphasizing the need for a long-term investment strategy to ensure sustainable returns. Despite the surge in F&O trading participation during the pandemic, research shows that only a small percentage of individual traders have been profitable in this segment. sources

Published:
May 18 2024, 7 pm

NCLT approves IL&FS Transportation Networks' share sale to Roadstar

In a recent development, the National Company Law Tribunal (NCLT) has granted permission to IL&FS Transportation Networks to proceed with the sale of its shares in Moradabad Bareilly Expressway to Roadstar Infra Investment Trust. The transfer involves 32,140,691 equity shares, representing a 14.5% stake, and has been approved by both the new IL&FS board and the IL&FS Transportation Networks board in October 2023. The Union Bank of India has also expressed no objection to the proposed sale, leading the tribunal to approve the transaction. This decision allows IL&FS Transportation Networks to move forward with the share purchase agreement with Axis Trustee Services Limited and Roadstar Investment Managers, marking a significant step in the company's restructuring efforts. sources

Published:
May 18 2024, 7 pm

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