Daily News - Thursday, 1 August 2024
MIGA to Expand India Footprint, Help in Energy Transition: Officials (The Economic Times)
The World Bank's Multilateral Investment Guarantee Agency (MIGA) is deepening its collaboration with India to support the nation's energy transition and infrastructure development through enhanced credit guarantees and investment tools. MIGA aims to mobilize private investment not only within India but also in other developing countries, reflecting India's growing leadership among developing nations. Recent collaborations include substantial projects like a $317.5 million solar refinancing deal and a $132 million infrastructure plan, with ongoing discussions to further leverage these guarantees in partnership with Indian institutions such as the Small Industries Development Bank of India (SIDBI) and State Bank of India (SBI), particularly in climate-related initiatives.
Core sector growth slows to 20-month low of 4% in June (Financial Express)
The growth in production of key infrastructure sectors in India dropped to a 20-month low of 4% in June, down from 6.4% in May, primarily due to slower growth in five of the eight core industries. This decline was sharper than the usual seasonal contraction observed between May and June over the past 13 years, with significant drops in crude oil and natural gas production. While coal production surged to an 8-month high, and modest recoveries were seen in cement and fertilizer outputs, economists predict that core sector growth may remain subdued, impacting the broader Index of Industrial Production (IIP) for the month.
‘India and Vietnam trade can touch $20 billion’ (mint)
Vietnamese Prime Minister Pham Minh Chinh, during his visit to India, emphasized the need for closer cooperation between the two countries, particularly in semiconductor technology, digital transformation, green hydrogen, pharmaceuticals, and biotechnology. He expressed optimism that bilateral trade could increase from $15 billion to $20 billion in the coming years, highlighting Vietnam's importance in India's Act East policy. Addressing the Vietnam-India Business Forum, Pham Minh Chinh underscored the strategic partnership between the two nations, encompassing areas such as supply chain integration, climate action, and defense, while also advocating for equitable sharing of benefits in their cooperation.
FM stressed commitment to cooperative federalism (Business Standard)
During a discussion on the Union Budget for FY25 in the Rajya Sabha, Finance Minister Nirmala Sitharaman emphasized the government's commitment to cooperative federalism, highlighting an increase in resource transfers to states and the fiscal balance achieved in the Budget. She defended the NDA government's performance, citing better employment generation and inflation control compared to the previous UPA government, even amid the challenges posed by the pandemic. Responding to criticisms from the opposition, including concerns over the Agnipath scheme and allocations for various sectors, Sitharaman refuted claims of partiality and inefficiency, pointing to data and reforms as evidence of the government's success in promoting growth, employment, and fiscal consolidation.
385 mines auctioned since 2015, only 50 operational (Business Standard)
Despite major reforms to the Mines and Minerals (Development and Regulation) Act in 2015, which were intended to increase transparency and efficiency in the mining sector, only 50 out of 385 auctioned mines have commenced operations, highlighting persistent challenges in India's mining industry. Minister of Mines and Coal, G Kishan Reddy, emphasized the government's ongoing efforts to boost domestic mining and achieve self-reliance, noting that the sector's contribution to GDP has grown, and key minerals like iron ore and limestone have seen significant production increases since the reforms. However, the slow operationalization of mines reflects broader global challenges, where mining projects typically take over a decade to progress from discovery to production.
