Daily News - Tuesday, 20 August 2024
FM asks PSBs to Launch Special Drives to Push Deposits Growth (The Economic Times)
Finance Minister Nirmala Sitharaman urged public sector banks (PSBs) to intensify efforts in deposit mobilization through special drives to sustainably support credit growth, emphasizing the need to close the widening gap between deposits and credit. While reviewing the performance of PSBs, she highlighted the importance of implementing budgetary initiatives like the new MSME credit assessment model and improving customer engagement, particularly in rural areas, to enhance financial inclusion. Despite concerns over deposit growth and cyber security, PSBs showed strong financial performance in FY24, with notable improvements in asset quality, capital adequacy, and record profits.
Dual-use goods: US alerts Indian companies on export of defence tech to Russia (The Indian Express)
The US government is actively engaging with Indian companies and exporters to prevent them from supplying Russia with dual-use items and technology that could be utilized in Russian defense systems, warning of potential Western sanctions. Despite these efforts, India's exports to Russia surged by 40% in 2023, with significant growth in engineering goods, pharmaceuticals, and chemicals, amid Russia's increased military spending and economic adaptation to sanctions through trade diversion to countries like China, India, and Türkiye. This situation reflects the complex balance India faces between expanding trade relations with Russia and navigating the geopolitical pressures from Western powers.
ONGC Videsh secures contract extension for Vietnam oil blocks (mint)
India's ONGC Videsh Ltd has secured a 16-year extension for its production sharing contract in Vietnam's Block 06.1, ensuring continued oil and gas production in the offshore Nam Con Son basin until 2039. Additionally, the company received a three-year extension to explore Block 128 in the South China Sea, a strategically significant area where India’s presence counters China's influence, despite no commercially recoverable reserves being found there over the past 18 years. These developments underscore India's commitment to maintaining a strategic foothold in the contested waters, aligned with Vietnam's interests.
Asean FTA: India to seek more tariff cuts (Financial Express)
India is seeking further tariff reductions on key export items like chemicals, metals, machinery, textiles, and gems as part of a comprehensive review of its free trade agreement (FTA) with ASEAN, aiming to boost its export competitiveness. Additionally, India is pushing for streamlined rules of origin (RoR) to address concerns about third-party goods entering the country through the FTA's preferential routes. Negotiations, targeting completion by 2025, will also include ASEAN's demands for concessions on items where India previously resisted duty cuts, with a draft text for discussions expected next month.
CPSE capex yet to recover, down 16% in Apr-July (Financial Express)
Capital expenditure by central public sector enterprises (CPSEs) fell by 16% in April-July, with significant declines in investments by the Railway Board and the National Highways Authority of India (NHAI), largely due to the impact of general elections on project implementation. Despite efforts to drive economic growth through public capex, the pace is expected to pick up in the second half of the financial year, as CPSEs aim to meet their combined investment target of ₹7.8 lakh crore for FY25. In contrast, state-run companies like ONGC and NTPC have shown improvement, with ONGC's capex up by 13% and NTPC doubling its investment during this period.
