Daily News - Thursday, 26 December 2024
FinMin rejects plan to establish body for procuring green steel (Business Standard)
The Finance Ministry has rejected the Steel Ministry’s proposal to establish a central agency for bulk procurement of green steel, citing that most government steel procurement is done indirectly through contractors, rendering the agency unnecessary. The Steel Ministry, aiming to define “green steel” and promote its adoption, projected that a 10-15% premium on green steel could increase public infrastructure costs to ₹14,954 crore over FY26-FY31, while the additional cost for private goods like automobiles would remain minimal at 0.5-1%. Despite this rejection, the Steel Ministry is focusing on developing a Green Public Procurement (GPP) policy and technical criteria for green steel, with total public sector steel consumption expected to grow from 25 million tonnes in FY23 to 67-73 million tonnes by FY31.
Cotton association seeks ₹500 crore for drip irrigation units (Business Standard)
The Cotton Association of India (CAI) has urged the government to allocate ₹500 crore in budgetary support to help farmers adopt drip irrigation, which could increase cotton yield and save 40-60% of water compared to traditional irrigation. Currently, 67% of India’s cotton is grown in rain-fed areas, where limited rainfall during critical growth stages significantly reduces yields, particularly in Maharashtra, where 95% of cotton cultivation relies on rain. CAI President Atul Ganatra emphasized that the high installation cost of drip irrigation necessitates government intervention to improve productivity in key states like Madhya Pradesh, Andhra Pradesh, Tamil Nadu, Karnataka, and Gujarat.
Healthy FDI inflows into India to continue (Financial Chronicle)
India’s foreign direct investment (FDI) inflows grew by 42% year-on-year to $42.13 billion during January-September 2024, with April-September alone seeing a 45% rise to $29.79 billion, driven by investor-friendly measures like reduced compliance burdens, decriminalization of minor offences, and production-linked incentives (PLI). Total FDI for 2023-24 was $71.28 billion, and the trend is expected to continue in 2025 as the government enhances ease of doing business, raises sectoral investment caps, and develops infrastructure to attract firms shifting manufacturing bases from China. Experts emphasize the importance of further streamlining regulatory processes, improving logistics, and strengthening digital connectivity to sustain this growth trajectory.
‘Govt. will boost spending quality, cut fiscal deficit’ (The Hindu)
The Indian government remains committed to reducing the fiscal deficit to below 4.5% of GDP by FY26, with FY25’s deficit projected at ₹16.13 lakh crore (4.9% of GDP) and ₹4.75 lakh crore incurred in the first half, or 29.4% of the Budget Estimate (BE). Total FY25 expenditure is estimated at ₹48.21 lakh crore, with ₹37.09 lakh crore allocated for revenue spending and ₹11.11 lakh crore for capital expenditure, while effective capital expenditure (including grants) is projected at ₹15.02 lakh crore. Despite global uncertainties, the focus will remain on quality spending, strengthening social security, and fiscal consolidation to sustain India’s position as one of the fastest-growing economies globally while addressing risks to growth.
India boosts position in world mkt for copper, aluminium wires (Financial Express)
India has significantly improved its global standing in aluminium and copper wire exports, with copper wire exports rising 21-fold from $40.8 million in 2013 to $890 million in 2023, boosting India’s rank from 37th to 8th and its global export share from 0.19% to 3.33%. Similarly, aluminium wire exports grew 12-fold from $39.5 million to $509 million over the same period, elevating India’s rank from 21st to 3rd and increasing its global export share from 1.19% to 9.52%. This growth is attributed to domestic manufacturing expansion, rising global demand, and government initiatives promoting production and competitiveness in the sector.
