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From wheat to steel, India can't afford to lose the world's trust on trade

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The only chance that countries such as India have to entice value chains away from China is by focusing on resilience and reliability

World prices for wheat rose 6% on news of India’s export ban. (Photo: Bloomberg)

Indian Prime Minister  often speaks of “trusted” supply chains. At the G-20 last year, he said that global supply chains depend upon “trust, transparency, and timeframes”; he’s made a similar pitch for Japan, the United States and Australia to “trust” India as a trade partner.

And he’s right: The only chance that countries such as India have to entice value chains away from China is by focusing on resilience and reliability.

Yet the actions of Modi’s government are severely undermining his argument. India has responded to rising global commodity prices by unexpectedly blocking exports of sugar and wheat; some expect rice to be next. These are products in which India plays a major role in global markets; the country is the world’s second-largest exporter of sugar and the second-largest producer of wheat. World prices for wheat rose 6% on news of India’s export ban.

True, for India, food prices are of particular importance. It’s one of the few countries in the world in which food products comprise more

The arbitrariness of India’s trade policy is even more evident in the way the government has treated the country’s paper industry. After two years of global price increases, officials recently declared that all imports of paper products would henceforth require “pre-registration” — dangerously close to a 1970s-style license. This, the government claimed, would “go a long way in promoting ‘Make In India’ and ‘Atmanirbhar’ [self-reliance].”

Thus, rather than arguments detailing how consistent trade policy helps productivity and investment, we’re left with empty slogans. Every bad, anti-trade decision is presented as either supporting Modi’s “Make in India” and “self-reliance” drives, or as necessary to control inflation. And the slogans can cheerfully point in opposite directions: Two years ago, India levied tariffs on steel imports to protect domestic producers; now it has an export tax to protect domestic consumers.

India’s trade policy is not just incoherent across time but contradictory at any particular moment in time. For example, steel producers justifiably complain that the new export taxes mean that they will fail to meet government-set targets for exports under an incentive subsidy regime begun as recently as last year. To sum up: First, the government raised steel tariffs, then it subsidized exports and set stiff targets for the steel industry, and then it slapped an export tax on steel products to control domestic prices — all in just a few years.

These aren’t, to say the least, the sort of decisions that build trust. Who will sign a long-term contract for Indian steel under such circumstances? India can’t hope to steal investment away from China as long as its trade policy is so unpredictable.

Moreover, Indian protectionism doesn’t just hurt Indian producers; it hurts the world. As my Bloomberg Opinion colleague David Fickling has pointed out, the global safety net against hunger depends on the world’s large food producers — including India — avoiding disruptions such as export bans. If India, which will assume the G-20 presidency later this year, expects to be treated as a global leader, we need to start taking the global effect of our policies into account.

Modi himself is intensely attuned to international perceptions of India. Yet he keeps on being forced into embarrassing climbdowns by his own government. Last year, he promised India would vaccinate the world — only to end vaccine exports after the Delta variant hit. In April, he promised to “feed the world” and to “send relief from tomorrow itself”; within weeks, his government shut down the wheat trade.

Judging by his words, Modi certainly understands how critical trust is. Now he just needs to build some.

Covid cut Indian women out of the job market, putting $6 trillion at stake

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India is an extreme illustration of a global phenomenon. Across the world, women were more likely than men to lose jobs during the pandemic, and their recovery has been slower

women

For years, Sanchuri Bhuniya fought her parents’ pleas to settle down. She wanted to travel and earn money — not become a housewife.

So in 2019, Bhuniya snuck out of her isolated village in eastern India. She took a train hundreds of miles south to the city of Bengaluru and found work in a garment factory earning $120 a month. The job liberated her. “I ran away,” she said. “That’s the only way I was able to go.”

That life of financial freedom ended abruptly with the arrival of Covid-19. In 2020, Prime Minister Narendra Modi declared a nationwide lockdown to curb infections, shutting almost all businesses. Within a few weeks, more than 100 million Indians lost their jobs, including Bhuniya, who was forced to return to her village and never found another stable employer.

As the world climbs out of the pandemic, economists warn of a troubling data point: Failing to restore jobs for women — who have been less likely than men to return to the workforce — could shave trillions of dollars off global economic growth. The forecast is particularly bleak in developing countries like India, where

female labor force participation fell so steeply that it’s now in the same league as war-torn Yemen.

This week’s episode of The Pay Check podcast explores how the coronavirus accelerated an already worrying trend in the world’s second-most populous country. Between 2010 and 2020, the number of working women in India dropped from 26 per cent to 19 per cent, according to data compiled by the World Bank. As infections surged, a bad situation turned dire: Economists in Mumbai estimate that female employment plummeted to 9 per cent by 2022.

This is disastrous  for India’s economy, which had started slowing before the pandemic. Modi has prioritized job creation, pressing the country to strive for amrit kaal, a golden era of growth. But his administration has made little progress in improving prospects for working women. That’s especially true in rural areas, where more than two-thirds of India’s 1.3 billion people live, conservative mores reign and jobs have been evaporating for years. Despite the nation’s rapid economic expansion, women have struggled to make the transition to working in urban centers.

Closing the employment gap between men and women — a whopping 58 percentage points — could expand India’s GDP by close to a third by 2050. That equates to nearly $6 trillion in constant US dollar terms, according to a recent analysis from Bloomberg Economics. Doing nothing threatens to derail the country on its quest to become a competitive producer for global markets. Though women in India represent 48 per cent of the population, they contribute only around 17 per cent of GDP compared to 40 per cent in China.

India is an extreme illustration of a global phenomenon. Across the world, women were more likely than men to lose jobs during the pandemic, and their recovery has been slower. Policy changes that address gender disparities and boost the number of working women — improved access to education, child care, or flexible work arrangements, for example — would help add about $20 trillion to global GDP by 2050, according to Bloomberg Economics.

For workers like Bhuniya, 23, the pandemic had heavy consequences. After losing her job, she struggled to afford food in Bengaluru and eventually returned to her remote village, Patrapali, in the state of Odisha. Bhuniya doesn’t think she’ll have another opportunity to leave. She no longer earns a steady income, but her family worries about her safety as a single woman living in a distant city.

“If I run away again, my mother will curse me,” said Bhuniya. “Now, there’s nothing left. My account is empty and there’s little work in the village.”

The story echoes across India. During the pandemic, Rosa Abraham, an economics professor at Azim Premji University in Bengaluru, tracked more than 20,000 people as they navigated the labor market. She found that after the first lockdown, women were several times more likely to lose their jobs than men and far less likely to recover work after restrictions lifted.

graph

Increased domestic duties, lack of childcare options after school shutdowns, and a surge in marriages — which often confine women’s autonomy in India — help explain the difference in outcome.

“When men are faced with this kind of a huge economic shock, then they have a fallback option,” Abraham said. “They can navigate to different kinds of work. But for women, there is no such fallback option. They can’t negotiate the labor market as effectively as men do.”

Dreams of freedom or a well-paid office job were replaced with what she called “distress-led employment,” essentially unpaid work on a family farm or taking care of the home. Prior to the pandemic, Indian women already performed about 10 times more care work than men, around three times the global average.

“It is the unfortunate situation that the decision to work is often not in the hands of the woman herself,” Abraham said.

The decline in workforce participation is partly about culture. As Indians became wealthier, families that could afford to keep women at home did so, thinking it conferred social status. On the other extreme, those at the lowest rungs of society are still seen as potential earners. But they tend to work menial or unpaid jobs far from the formal economy. In the official statistics, their labor is not counted.

In many villages, patriarchal values remain ironclad, and a stigma against girls persists. Though illegal, sex-selective abortions are still common. Akhina Hansraj, senior program manager at Akshara Centre, a Mumbai-based organization that advocates for gender equity, said Indian men often think “it’s not very manly if their wife contributes to the family income.”

“They want to create this dependency,” Hansraj said. “People believe if women get educated, they might work and become financially independent and then they may not obey and respect the family.”

Marriage is a sticking point in India, where most weddings are still arranged. After the first lockdown, in 2020, the country’s leading matrimony websites reported a spike in new registrations. In some states, marriages among children and young adults — many of them illegal under Indian law — jumped by 80 per cent, according to government data.

Madhu Sharma, a Hindi teacher at the Pardada Pardadi Educational Society, a girls’ school in the northern town of Anupshahr, said she might intervene in three child marriages a year. During the pandemic, when the campus closed, the number increased three to four times.

“Before Covid, children were always in touch with their teachers and also with me,” she said. “After Covid, when the children had to stay at home, keeping in contact with them became a big challenge.”

Financial considerations often tipped the scales in favor of marriage. Social distancing and warnings against large gatherings meant parents could hold small, less-expensive ceremonies at home, rather than the multi-day celebrations that are common even in the poorest pockets of society. During the direst stretches of the pandemic, some families married off daughters because they couldn’t afford to feed another mouth.

For Sharma’s students, getting married before finishing school can change the trajectory of their lives. In India, when a woman marries, she typically moves in with her husband and in-laws. That can make it difficult to leave secluded villages where policing of choices is common and employment opportunities are scarce.

“We try to educate our students,” Sharma said. “We explain to them that if they study, they will be in a good spot. If they don’t, we describe what their position will be like. ‘The rest is up to you,’ we tell them. You live life the way you want to create it.”

In 2015, Modi started a campaign called “Beti Bachao, Beti Padhao,” which roughly means “Save Our Daughters, Teach Our Daughters.” It’s an initiative aimed at keeping girls in school and reducing sex-selective abortion. The government has also tried to eradicate child marriage. Last year, Modi’s administration passed a proposal to raise the legal marriage age for women from 18 to 21, which is what it is for men.

But in many villages, national laws are distant abstractions. Local customs are still set and enforced by local panchayats, essentially a group of elders, almost all men. And while Modi’s campaign to educate India’s daughters received lots of publicity, recent government audits found that much of the initiative’s funds remained unspent.

Even in urban metropolises, where literacy rates are far higher and jobs are more abundant, the pressure on women is overwhelming.

Anjali Gupta, who lives in Mumbai, said she was barely hanging on. First, the coronavirus lockdowns devastated her family’s small grocery store, forcing them to exhaust their savings to survive. Then her parents started pushing Gupta and her three sisters to get married, fearing that they would be left destitute without husbands.

Gupta tried to reason with them. She had already spent about $1,300 studying for a master’s degree in pharmaceuticals and nutrition. She was training with a homeopathic doctor. She wanted a career. “I explained that my situation is different, my generation is different,” Gupta said.

But after an uncle died from the coronavirus, Gupta’s father pleaded with her to drop out of school, a prospect that induced migraines and endless arguments. Her parents started bringing prospective grooms home. Gupta worries the inertia will eventually overpower her.

“It shouldn’t be this way,” she said. “I want to do and learn more. I’m only 22.”

Also Read:- Gautam Duggad of Motilal Oswal expects first quarter earnings to be modest

Gautam Duggad of Motilal Oswal expects first quarter earnings to be modest

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Gautam Duggad of Motilal Oswal Financial Services expects first quarter of fiscal year 2023 to be challenging and has a downward bias in the earningsMotilal Oswal | Gautam Duggad : Investors need to be cautious about new age  Internet businesses: Gautam Duggad, Motilal Oswal Securities

Gautam Duggad of Motilal Oswal Financial Services expects the first quarter of fiscal year 2023 to be challenging. The bias for the earnings seems downward as the impact of the rise in input cost has not been fully priced in.

"You may see June quarter earnings very modest compared to March and December quarters and then subsequently where the input cost burden settles, earnings will progress but must say that there is a clear downside risk to the earnings", Gautam Duggad of Motilal Oswal said in a CNBC TV interview.

Duggad expects banking, auto and oil & gas companies will do well in 1QFY23. Commercial vehicles started well but passenger vehicles and two wheelers likely to face weak performance. M&M & Maruti are the preferred bets in the auto space, Duggad added.

"We expect the full impact of elevated input costs to be felt in 1HFY23 as 4QFY22 had some benefits of lower RM inventory. We find more value in large-caps than mid-caps given the relative valuation equation. That said, we reiterate that earnings delivery is crucial for markets to hold, in an adverse milieu of volatile and challenging macro", Duggad added.

Duggad said FY22 was a huge high in terms of earnings per share growth. EPS growth came in 35%, its biggest jump since FY04. The growth has been contributed by metals, oil & gas and BFSI sectors.  More than half of the incremental growth was steered by BFSI, driven by a modest revival in credit growth and improvement in asset quality trends. BFSI, Commodities  and IT accounted for 90% of incremental earnings year on year.

"The adverse macroeconomic backdrop with heightened worries on rising interest rates, elevated crude oil prices and liquidity tightening has kept the market volatile and jittery. Meanwhile, the domestic earnings season continues to remain healthy and provides a silver lining, notwithstanding the challenges faced on multiple fronts", said Duggad.

Power companies ride on robust demand to post a record 21% surge in sales

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Net sales of 24 power firms increased to 21 percent to Rs 93,240 crore, its biggest jump since December 2018. Net profit for the same set of firms during the quarter jumped 32 percent on-year to Rs 15,593 crorePower companies ride on robust demand to post a record 21% surge in sales

Despite margin pressures, power companies have averaged a 21 percent annual sales growth through the last three years, thanks to robust demand following the resumption of economic activities and heat waves sweeping large swathes of India.

While the topline for 24 power firms have increased to Rs 93,240 crore, the bottomline for the same set of firms during the fourth quarter of FY2022 jumped 32 percent on-year to Rs 15,593 crore, according to data from ACE Equities.

"We believe overall improvement in power companies was led by strong demand as well as better realisations. Going ahead, the demand is expected to remain robust and government initiatives towards renewable energy will also help drive growth," said  Ajit Mishra, VP- Research at Religare Broking Ltd.

Operating margins, however, took a hit despite increased demand, due to higher input costs, especially coal. Total cost for the quarter under review increased 20 percent on-year and 16 percent on-quarter. Operating margins in Q4FY22 stood at 43.8 percent, compared to 46.4 percent in Q4FY21 and 42.9 percent in Q4FY20.

NTPC net profit grew 14 percent YoY to Rs 5,167 crore for the March quarter. Revenue for the state-owned utility major rose 23 percent on-year to Rs 37,085 crore from Rs 30,103 crore in the year-ago quarter. NTPC added 3,152 mega watts (MW) of new capacity during the year thereby taking its total installed capacity 68,962 MW.

PowerGrid Corp reported 8 percent YoY growth in its consolidated net profit at Rs4,156.44. Total income grew 2.3 percent YoY to Rs 11,067.94 crore. For Tata Power, revenue grew 16 percent and net profit jumped 31 percent. JSW Energy recorded an eight-fold surge in net profit and a 64 percent leap in revenues.

Analysts believe that India's growing urban population, improvement in economic activities in the recent months after significant population received vaccines, and the need for clean and reliable power supply provide a huge scope for continued growth in power demand.

Also, the high prices of imported coal due to geopolitical uncertainties are expected to send power tariffs through the roof, which could increase dependency on green power sources, analysts expect.

"With power production reviving to the pre-pandemic levels, the need for green power is expected to pick up strongly, as thermal power capacity remains stagnant to control carbon emission," said Vinit Bolinjkar, Head of Research, Ventura Securities Ltd.

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Rupee recovers from record low, rises 14 paise against US dollar

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Recovering from its record low, the rupee rose by 14 paise to 77.57 against the US dollar in early morning traderupee


Recovering from its record low, the rupee rose by 14 paise to 77.57 against the  in early morning trade on Wednesday.

At the interbank foreign exchange, the rupee opened at 77.58 against the American dollar, then inched higher to quote at 77.57, registering a rise of 14 paise from the last close.

On Tuesday, the rupee declined by 17 paise to close at its all-time low of 77.71 against the US currency as surging US bond yields dampened the appeal of riskier assets.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.17 per cent higher at 101.92.

Global oil benchmark Brent crude futures rose 0.96 per cent to USD 122.84 per barrel.

"The Indian GDP came as expected at 4.1 per cent, while the fiscal deficit for 2021-22 was at 6.7 per cent of GDP against the budgeted 6.9 per cent indicating a robust tax collection," said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

Bhansali further said that the range for the rupee is still between 77.40 and 77.80 with oil companies and foreign portfolio investors (FPI) standing at one end and the Reserve Bank of India (RBI) at the other end.

On the domestic equity market front, the 30-share Sensex was trading 118.94 points or 0.21 per cent higher at 55,685.35, while the broader NSE Nifty advanced 30.45 points or 0.18 per cent to 16,615.00.

Foreign institutional investors remained net sellers in the capital market on Tuesday as they offloaded shares worth Rs 1,003.56 crore, as per stock exchange data.

GST collections fall 16% to Rs 1.41 lakh crore in May from record highs a month back

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This is the 11th month in a row that the total GST mop-up has come in above the Rs 1-lakh-crore services Tax (GST) collections fell to Rs 1.41 lakh crore in May, down 16 percent from April's all-time high of Rs 1.68 lakh crore, data released on June 1 by the finance ministry showed.GST revenue hits all-time high of Rs 1.41 lakh crore in April - Business  News

On a year-on-year basis, GST collections in May were up 44 percent.

"The collection in the month of May, which pertains to the returns for April, the first month of the financial year, has always been lesser than that in April, which pertains to the returns for March, the closing of the financial year," the finance ministry said in a statement.

"However, it is encouraging to see that even in the month of May 2022, the gross GST revenues have crossed the Rs 1.40 lakh crore mark," it added.

 
TREND IN TOTAL GST COLLECTIONS
MonthAmount (in Rs crore)YoY change
May 2022 1,40,885 44%
April 20221,67,54020%
March 2022 1,42,09515%
February 20221,33,02618%
January 20221,40,98618%
December 20211,29,78013%
November 20211,31,52625%
October 20211,30,12724%
September 20211,17,01023%
August 20211,12,02030%
July 20211,16,39333%
June 202192,8002%

Of the total GST collections in May, Central GST was Rs 25,036 crore, State GST was Rs 32,001 crore, Integrated GST was Rs 73,345 crore, and compensation cess was Rs 10,502 crore.

In May, the government settled Rs 27,924 crore to Central GST and Rs 23,123 crore to State GST from Integrated GST. As a result, the total revenue for the month after settlement was Rs 52,960 crore for the Centre and Rs 55,124 crore for State GST.

This is the 11th month in a row that the total GST mop-up has come in above the Rs 1-lakh-crore mark.

Factory output momentum stays firm as manufacturing PMI cools slightly to 54.6

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At 54.6, India's manufacturing PMI for May is the 11th consecutive month in which it has come in above 50.Factory output momentum stays firm as manufacturing PMI cools slightly to  54.6

The S&P Global India Manufacturing Purchasing Managers' Index (PMI) declined marginally in May to 54.6 from 54.7 a month back.

A reading above 50 indicates expansion in activity, while a sub-50 print is a sign of contraction.

According to S&P Global, the 11th consecutive 50+ print for the manufacturing PMI "pointed to a sustained recovery" and was "consistent with a solid improvement in operating conditions".

"Demand showed signs of resilience in May, improving further in spite of another uptick in selling prices. Companies reported a marked increase in total new orders that was broadly similar to April," S&P Global noted.

Within new orders, May saw international orders rise the most in 11 years

The continued rise in new orders helped increase manufacturing sector jobs in May. Although the rise in manufacturing employment was only slight, S&P Global said the rate of employment growth rose to the most since January 2020.

Holding back a more robust increase in employment was only mild pressure on manufacturers' capacities.

While the situation looked firm on the output side, price pressures continued to build on top of already elevated levels.

Manufactuerers' input prices rose again in May, although the rate of increase was lower than seen in April. However, this was the 22nd month in a row that costs had risen.

These cost burdens continued to be shared with consumers, with selling prices being raised by the most in over eight-and-a-half years - consistent with Consumer Price Index (CPI) inflation hitting a near-eight-year high of 7.79 percent in April.

"While firms appear to be focusing on the now, the survey's gauge of business optimism shows a sense of unease among manufacturers. The overall level of sentiment was the second-lowest seen for two years, with panellists generally expecting growth prospects to be harmed by acute price pressures," noted Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.

India Q4 GDP: Omicron curbs may have slowed down growth before Ukraine war

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In the January-March quarter, the economy likely expanded 3.9%, according to the survey, a performance that will mark the low point of the yearGDP


India’s economy probably grew slower than previously estimated last year, with virus curbs in the final quarter seen as a drag on activity while the war in Europe has added a new inflation hurdle to recovery.

Data due Tuesday is likely to show  in the year to March 2022 grew 8.7 per cent from a year ago, according to the median estimate in a Bloomberg survey. That’s slower than the 8.9 per cent expansion projected by the Statistics Ministry three months ago.

In the January-March quarter, the economy likely expanded 3.9 per cent, according to the survey, a performance that will mark the low point of the year.

The pace of growth eased amid the surge in  infections and temporary activity restrictions, said Rahul Bajoria, chief India economist for Barclays Plc. “While the movement restrictions were short-lived, other headwinds from global supply shortages and higher input costs also impeded the pace of expansion.”

graph












Asia’s third largest economy had just begun recovering from the pandemic-induced slump when a surge in  cases in January brought back some of the virus-related restrictions. The war in Ukraine, in February, further added to its woes, pushing up commodity prices and squeezing supplies further.

Earlier this month, elevated prices forced India’s central bank to hike rates by 40 basis-points in an off-cycle meeting. Governor Shaktikanta Das, who is due to next review monetary policy June 8, has signaled more hikes to tame inflation, a move that may hurt demand further.

“Elevated commodity prices, slowing global growth and monetary policy tightening across most markets are likely to weigh on growth prospects,” said Teresa John, an economist with Nirmal Bang Equities Pvt in Mumbai. “We continue to expect contact-intensive services to lead the economic recovery even as high commodity prices weigh on manufacturing margins.”

Centre’s FY22 fiscal deficit at 6.7%, undershoots revised target by 20 bps

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The 2022 Budget had seen the central government make a 10-basis-point upward revision to its fiscal deficit target for FY22 to 6.9 percent of GDP.Centre's FY22 fiscal deficit at 6.7%, undershoots revised target by 20 bps

The central government’s fiscal deficit for FY22 has come in at 6.7 percent, undershooting the revised target by 20 basis points, data released on May 31 by the Controller General of Accounts showed.

As per the 2022 Budget, the fiscal deficit was revised to Rs 15.91 lakh crore. As such, the deficit, at Rs 15.87 lakh crore, is Rs 4,552 crore lower than the target.

As per the data released on May 31, March – the month for which data was awaited – saw the Centre post a fiscal deficit of Rs 2.70 lakh crore.

In March 2021, the Centre had posted a fiscal deficit of Rs 4.13 lakh crore.

India Q4 GDP: Inflation may have slowed down growth to just 4%, says poll

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A Reuters poll predicts India's FY22 GDP growth rate at 8.9 per cent while a Bloomberg survey suggest a growth rate of 8.7 per cent

indian economy

The National Statistical Office (NSO) will release the data for India's Gross Domestic Product (GDP) growth in Q4 FY22 and full financial year 2021-22 on Tuesday.

According to reports, Asia's third-largest economy is expected to accelerate in the January-March quarter from a year earlier.

GDP growth stood at 20.3 per cent in April-June quarter (Q1) of FY 2021-22 and 8.5 per cent in July-September quarter (Q2). During the third quarter of 2021-22, economic growth slowed to 5.4 per cent but was higher than China's GDP expansion of 4 per cent during the same period and the country retained its position as the world's fastest growing major economy.

As per the provisional estimates released in May 2021, the GDP had contracted by 7.3 per cent during 2020-21 on account of the outbreak of Covid-19 and subsequent nationwide lockdown to contain the pandemic. The NSO has also revised downward the real GDP growth number for 2019-20 to 3.7 per cent as against the earlier estimate of 4 per cent.

The growth in GDP during 2021-22 is estimated at 8.9 per cent as against a contraction of 6.6 per cent in 2020-21, according to Reuters.


According to the median estimate in a Bloomberg survey, India is likely to register GDP growth of 8.7 per cent in FY 2021-22.

Earlier in May, the Reserve Bank of India (RBI) raised the benchmark repo rate by 40 basis points in an unscheduled meeting.

The rupee's nearly 4 per cent depreciation against the dollar this year has also made imported items costlier, prompting the federal government to restrict wheat and sugar exports and cut fuel taxes, joining the RBI in the battle against inflation.

According to a Reuters report, supply shortages and higher input prices were weighing on output in the mining, construction and manufacturing sector, even as credit growth has picked up and states are spending more.

The consumer sentiment slid in early May, dipping for the second month in a row, as rising fuel prices and broader inflation hit household finances, according to a Refinitiv.

The unemployment rate for persons of 15 years and above in urban areas slipped to 8.7 per cent in October-December 2021 from 10.3 per cent in the year-ago quarter, showed a NSO survey.

RBI Governor Shaktikanta Das said last week that the central bank's primary focus was to bring inflation closer to its target but it could not disregard concerns around growth.

CII President TV Narendran said the Indian economy is expected to grow 7.5-8 per cent this fiscal year with exports playing a key role in the country's success story, however the country needs to remain prepared for any fallout of next wave of Covid-19 pandemic, and the impact of the ongoing Russia-Ukraine war.

Earlier, the World Bank and International Monetary Fund have slashed India's FY23 growth forecast to 8 per cent and 8.2 per cent, respectively.

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