Daily News - Thursday, 24 October 2024

Can’t accept FDI blindly, need safeguards: FM (Business Standard)

India plans to impose restrictions on foreign direct investment (FDI) to safeguard its national interests, given its sensitive geopolitical neighbourhood, despite its need for investment. Finance Minister Nirmala Sitharaman emphasized the importance of knowing the ultimate beneficiaries of FDI and noted that while the country remains open to such investments, security concerns will guide its decisions. Sitharaman also highlighted the Modi government’s focus on infrastructure, investment, innovation, and inclusiveness as key to India’s goal of becoming a developed nation by 2047. 

⁠Major port cargo rose 6% in September (Business Standard)

⁠Major government-owned ports in India saw a 6% growth in cargo in September, handling 65 million tonnes, driven by a 9% rise in crude oil shipments and a 41% jump in miscellaneous commodities. While export-import (Exim) cargo grew by nearly 9%, coastal cargo fell by 1.9%, and private ports posted a stronger 10% growth, especially in Exim cargo, which increased by 12%. Major ports handled 414 million tonnes of cargo in FY25 so far, marking a 5% growth compared to last year, with Deendayal Port leading with a 28% rise, partly due to a low-base effect from FY24. 

Gold hits lifetime high of ₹80,000, silver ₹1 lakh (Financial Chronicle)

Gold prices in the Delhi spot market hit ₹81,000 per 10 grams, while silver surged past ₹1 lakh per kg, with both metals recording continuous gains over the past six days. On the Multi Commodity Exchange (MCX), gold reached a high of ₹78,919 per 10 grams, and silver touched ₹1 lakh per kg, but both metals saw a technical correction after profit-booking. Despite short-term fluctuations, gold has been on an upward trend since early 2024, starting at ₹63,225 in January and rallying to ₹75,000 by late September, continuing to rise in October. 

⁠India cannot risk another bout of inflation: RBI Governor Das (The Hindu)

⁠RBI Governor Shaktikanta Das justified holding interest rates at 6.50% in the latest Monetary Policy Committee (MPC) meeting, emphasizing that India cannot risk another bout of inflation at this stage in its economic cycle. While MPC member Nagesh Kumar voted for a 0.25% rate cut, arguing it could revive demand and boost private investment, Das stressed the need for flexibility and more evidence of inflation aligning with targets before making changes. Das highlighted that monetary policy must focus on maintaining price stability to support sustainable economic growth. 

⁠‘Microfinance institutions should refrain from doing reckless lending’ (The Hindu)

⁠Microfinance institutions (MFIs) are crucial for financial inclusion, but reckless lending practices to Self Help Groups (SHGs) or Joint Liability Groups (JLGs) could harm the sector, warned Financial Services Secretary M. Nagaraju. He emphasized the need for responsible lending due to the limited financial literacy of borrowers, urging MFIs to empower and support them for sustainable growth. Under the SHG-Bank Linkage Programme, over 77 lakh groups hold loans worth ₹2.6 lakh crore, benefiting 10 crore poor households, while JLGs have outstanding loans of ₹4.4 lakh crore, benefiting 8 crore households.