Daily News - Tuesday, 27 August 2024
India & Singapore vow to cement ties in emerging areas (Financial Express)
India and Singapore have pledged to strengthen their ties in emerging sectors such as digital connectivity, fintech, green economy, and skill development during the second ministerial round-table in Singapore. The discussions, led by key ministers from both countries, focused on enhancing the strategic partnership, reviewing progress from previous meetings, and exploring new growth areas for cooperation. Bilateral trade between the two nations has significantly increased since the implementation of the Comprehensive Economic Partnership Agreement (CEPA), with Singapore becoming India's largest source of foreign direct investment (FDI) in 2023-24, contributing $11.77 billion.
GDP growth likely slowed to five-quarter low in Q1 (Financial Express)
India's economy is projected to grow at a five-quarter low of 6.7% in Q1FY25, primarily due to slower manufacturing and agricultural activity, along with reduced government expenditure. The manufacturing sector's growth is expected to be impacted by higher input costs, while the agricultural sector faces challenges from lower reservoir levels and heatwaves, despite a partial recovery in rural demand. Economists predict that GDP growth for the entire fiscal year might fall slightly below 7%, with potential improvement in the agricultural sector and increased government capital expenditure in the upcoming quarters.
Natural gas imports rise 7% in Apr-Jul on high demand (Financial Express)
India's natural gas import bill increased by 7% to $4.6 billion in the first four months of FY25, driven by higher consumption, particularly from the city gas distribution and power sectors, which saw a 31% increase in gas use. The rise in imports, along with a 13% growth in LNG imports, is attributed to stabilized natural gas prices, making imported gas more attractive. Despite a marginal 4% increase in domestic production, India's reliance on imported gas rose to 48.9%, as domestic production by major companies like ONGC and Oil India fell short of targets.
Govt sees no spurt in food prices this festive season (Financial Express)
The government has assured that prices of pulses, onions, and potatoes are expected to remain stable during the festive season. Currently, retail prices for onions and potatoes are stable at ₹35/kg and ₹50/kg, respectively, while tomato prices have moderated to ₹40/kg. The increase in imports and higher sowing of kharif pulses, including tur, urad, and moong, is expected to further stabilize prices and reduce inflation in these commodities.
RBI plans UPI-like tool for smoother credit flow (The Asian Age)
RBI Governor Shaktikanta Das announced the upcoming nationwide launch of the 'Unified Lending Interface' (ULI), aimed at simplifying credit access for small and rural borrowers by digitizing and streamlining the credit appraisal process. The ULI, which follows a successful pilot since August last year, is expected to revolutionize lending in India similar to how UPI transformed payments. Das highlighted that ULI will facilitate faster and more accessible credit by integrating diverse data sources and reducing documentation, supporting the JAM-UPI-ULI digital infrastructure initiative that has significantly enhanced financial inclusion, especially in rural areas and among women.
