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India's Gross Domestic Product (GDP) grew at the same annual average rate during the terms of the United Progressive Alliance and National Democratic Alliance governments, at least until the coronavirus pandemic struck.

According to new data released by the Ministry of Statistics and Programme Implementation, India's GDP grew at an annual average rate of 6.8 percent from 2004-05 to 2013-14—the 10 years Manmohan Singh was the prime minister (PM).

In the first six years of Narendra Modi's tenure as PM—before the pandemic struck and pushed India into a recession—India's GDP again grew by 6.8 percent on an average from 2014-15 to 2019-20.

If the two pandemic-hit years of 2020-21 and 2021-22 are taken into account, the average GDP growth rate under Modi drops to 5.4 percent.

The recently-released annual GDP growth data stretches back to 1951-52. Until now, comparable growth rates for the current GDP series with 2011-12 as the base year was available only till 2005-06.

The current GDP series, introduced by the statistics ministry in early 2015, attracted heavy criticism as it showed a big jump in growth even as high-frequency indicators painted a grimmer picture. For instance, the new series raised the GDP growth rate for 2013-14 to 6.9 percent from 4.7 percent under the previous series.

This number has subsequently been revised down to 6.4 percent.

The statistics ministry attributed the revision to a shift in focus to measuring value-addition based on a wider dataset of corporate earnings from volume-based growth in manufacturing.

However, comparison across years was difficult as the new series only provided growth rates starting from 2012-13. This led to calls for a 'back series'.

Back series controversy

In July 2018, the Sudipto Mundle-led committee on real sector statistics, set up by the National Statistical Commission, said India clocked a growth of 10.8 percent in 2010-11 as per the new GDP series. This was higher than the 8.9 percent estimated under the old series.

Further, the committee's estimates showed GDP growth averaged 8.0 percent per year during the 10 years of the Singh government as per the new series, while growth in Modi's first four years as PM averaged 7.3 percent per year.

These numbers spilt over into the political arena, with the Congress saying the data proved "like-for-like, the economy under both UPA terms outperformed the Modi govt (sic)".

However, a month later in August 2018, the statistics ministry said the GDP back series given by the committee on real sector statistics was not official but only "experimental results".

The official GDP back series, released in November 2018, showed GDP grew 7.4 percent per year on average from FY15 to FY18. Meanwhile, the annual average GDP growth rate for the last nine years of Singh's tenure as PM was revised to 6.7 percent, leading to another outcry and accusations of political interference in the calculation of India's official statistics, especially with the 2019 general elections just around the corner.

Full comparability

The numbers now released (external link) by the statistics ministry allow comparisons to be made across several decades. Some of the striking highlights are as follows:

The 6.6 percent contraction in the GDP in 2020-21 is the largest ever since 1951-52. The next worst year was 1979-80, when the GDP contracted by 5.2 percent.

>> Since 1951-52, India's GDP has contracted on six occasions: by 6.6 percent in 2020-21, 5.2 percent in 1979-80, 2.6 percent in 1965-66, 0.6 percent in 1972-73, 0.4 percent in 1957-58 and 0.1 percent in 1966-67.

>> The 2021-22 GDP growth rate of 8.7 percent is India's fourth-highest since 1951-52. The highest rate of growth of 9.6 percent was recorded in 1988-89. As such, India has never hit double-digit growth when it comes to real GDP.

The finance ministry has come out with draft SoP for facilitating e-commerce jewellery exports through courier route, as it looks to provide a simplified regulatory framework for manufacturers and traders who want to export jewellery.

The Central Board of Indirect Taxes and Customs (CBIC) has invited feedback and suggestions from stakeholders by June 14 on the Standard Operating Procedure (SoP) for implementation of a simplified regulatory framework to facilitate export of jewellery made of precious metals and imitation jewellery through e-commerce in courier mode.

The CBIC also proposes to amend the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010, and related forms and come out with a notification prescribing conditions for reimport of returned jewellery and has invited views from stakeholders on the same.

Finance Minister Nirmala Sitharaman had in the 2022-23 Budget announced implementation of a

simplified regulatory framework to facilitate export of jewellery through e-commerce.

Subsequently stakeholder consultations, including those with the Express Industry Council Of India (EICI), Gems and Jewellery Export Promotion Council (GJEPC), e-commerce operators, members of the trade, officers working in the Directorate General Of Export Promotion, Directorate General of Systems and Customs field formations, have been held.

"The feedback received through the aforesaid consultations showed that a simplified regulatory framework is required for e-commerce exports of Jewellery through courier mode. This can be implemented through an SoP for bringing uniformity and certainty on the process and steps to be followed to facilitate such exports via International Courier Terminals (ICTs)," the CBIC said inviting comments on the draft SoP.

"This SoP is applicable on e-commerce export of jewellery made of precious metals (whether or not studded or set with precious or semi-precious stones) .... and imitation jewellery .... In the initial phase, the SoP will be implemented on ECCS (Express Cargo Clearance System) at ICT Mumbai, ICT Delhi and ICT Jaipur," the CBIC added.

AMRG & Associates Senior Partner Rajat Mohan said export of jewellery would bring foreign exchange to the country and contribute to the net disposable income of Indian designers, artisans, and skilled job workers.

"Integrating and easing jewellery export through e-commerce platforms would boost the livelihood of millions of people engaged in the sector," Mohan further said.

The new rules stipulate that jewellery export through courier mode is permitted only after receipt of full advance and photos of the export jewellery, product package/outer covering, product listing on the e-commerce platform and Hallmark certificate are uploaded on the customs system.

Reimports of physically damaged or defective Jewellery exported through courier mode are permitted subject to several conditions to keep menace makers at bay. Such restrictions are imposed to ensure that the original consignee returns initially shipped damaged goods to the original exporter within a short span of time," Mohan said.

KPMG in India Partner (Indirect Tax) Abhishek Jain said the jewellery manufacturers and traders involved in/ or intending to export jewellery out of India should closely study these SOP(s) and notifications and provide their suggestion in a timely manner.

He said that the member countries of the World Trade Organisation (WTO) have let down the people of the LDCs (least developed countries) and developing nations.

"My country ramped up supplies of medical products to provide medical and health items globally. Unfortunately, the WTO could not respond with alacrity. We have let down the people of the LDCs and developing countries. The rich countries need to introspect! We need to bow our heads in shame for our inability to respond to the pandemic in time," he said.

Goyal is leading the Indian delegation for the 12th Ministerial Conference (MC) of the WTO. MC is the highest decision-making body of the WTO, and it is meeting after a gap of over four years. The meeting is being held in the backdrop of the Ukraine-Russia war and the global food and energy crisis.

He said the pandemic reinforced the importance of 'One Earth One Health', calling for global solidarity and collective action. The minister also said India strongly believes that the WTO should not negotiate rules on non-trade-related subjects like climate change and gender, which legitimately fall within the domain of other inter-governmental organisations.

The pandemic has reinforced once again the need and efficacy of food stockholding for the public good, he added. A permanent solution to the issue of public food stocks, which has already been delayed, should be the topmost priority for MC-12 before the members of the WTO move to new areas.

Nothing is more important than this for the people of the world," he noted. On the proposed agreement on fisheries subsidies, the minister said the right to life and livelihood of traditional fishermen cannot be curtailed in any manner.

On the contrary, he said, those nations responsible for depleted fish stock should assume responsibility, having exploited the oceans for far too long by giving subsidies.

"In conclusion, let me say that when the world is facing severe challenges and expects the WTO to deliver solutions, the MC12 must send a strong message that the rich care for the poor, vulnerable and marginalised people and that we have come together to give them a better future. The WTO should embrace a people-first approach to trade," he added.

India's fuel consumption jumped 23.8% in May from a year earlier, continuing a recovery from a relatively low base in 2021 when the world's third biggest oil consumer was in the grip of a second wave of COVID-19.

Consumption of fuel, a proxy for oil demand, totalled 18.27 million tonnes last month, according to data from the Indian oil ministry's Petroleum Planning and Analysis Cell.

Last month's increase was the biggest year-on-year jump since April 2021. Consumption also rose modestly, by 0.4%, from April.

The yearly increase is "because of a lower base, as demand in May 2021 was low due to high COVID cases at that time," although the monthly rise was surprising, said Refinitiv analyst Ehsan Ul Haq.

"However, high oil prices are likely to have an impact on consumption in the next few months. High fuel prices do not bode well for motorists all over the world," he added.

Consumption of diesel rose 31.7% in May year-on-year to 7.29 million tonnes and was up about 32.6% from two years earlier.

Sales of gasoline, or petrol, were 51.5% higher than a year earlier at 3.02 million tonnes.

Meanwhile, daily gasoil sales of Indian state refiners declined in May from April as lower consumer spending curtailed truck movement in the country, preliminary fuel sales data showed on June 1.

India's gasoline sales have been rising since the country eased pandemic lockdowns, as people continued to prefer using personal vehicles over public transport for safety reasons and to avoid heatwaves.

India's retail inflation likely slipped modestly in May, according to a Reuters poll, but probably stayed well above the central bank's upper tolerance limit for a fifth consecutive month as surging food costs offset a drop in fuel prices due to cuts in fuel tax.

DOMESTIC SALES (in million tonnes):

2022 2022 2022 2021 2021 2021

May April March May April March

Diesel 7.29 7.20 7.70 5.53 6.68 7.23

Petrol 3.02 2.80 2.91 1.99 2.39 2.74

LPG 2.17 2.16 2.48 2.16 2.11 2.26

Naphtha 0.91 1.09 1.14 1.25 1.24 1.28

Jet fuel 0.60 0.55 0.54 0.27 0.41 0.47

Kerosene 0.10 0.10 0.11 0.14 0.11 0.16

Fuel Oil 0.54 0.52 0.59 0.42 0.51 0.51

Bitumen 0.70 0.76 0.94 0.66 0.83 1.01

TOTAL 18.27 18.20 19.83 14.76 16.60 18.63

NOTE: Total figures may not tally because not all items are included in the table, and numbers are rounded. The numbers for previous months may have been revised.

A YouTuber, who posted a video which used special effects to show him beheading former BJP spokesperson Nupur Sharma, has apologised for the content.

Faisal Wani, who runs the YouTube channel “Deep Pain fitness”, said in an apology video on June 11 that he did not intend to hurt anyone.

“Like the earlier video was made viral, I hope that this (apology) clip will also be circulated widely,” the man said. “If I have hurt anybody’s feelings, I am extremely sorry.”

Nupur Sharma has caused a huge controversy by making derogatory remarks about Prophet Muhammad during a recent television debate.

Her comments led to massive outrage in India as well as in foreign countries. Many Muslim nations have condemned her remarks.

Amid fierce backlash at home and abroad, the BJP suspended Sharma as its national spokesperson.

India and Iran have "surveyed" the possibilities of settling trade transactions in rupee or through barter system, along with discussing a need to establish a banking mechanism, foreign minister of the Middle Eastern country, Hossein Amir-Abdollahian, said on Thursday.

New Delhi and Tehran have also agreed to "precipitate" investment in the Chabahar Port which is being developed with the help of India, the visiting minister said.

"Yesterday, we discussed with Indian high officials as a special need with my colleague the external (affairs) minister on the need to establish a banking mechanism," Abdollahian said at an event organised by the World Trade Centre here.

The two sides "surveyed" the possibility of trade in local currency, including rupee, or otherwise barter, he added.

He said there are existing mechanisms within the framework of international law which can help in reviving the "banking and financial interaction", pointing out that Tehran has implemented such a mechanism with a dozen countries already.

Abdollahian, who is on a three-day visit to India, addressed industry representatives in the financial capital. His arrival was delayed due to another round of meeting with Indian Minister for External Affairs S Jaishankar on Thursday morning, as per organisers.

"As we speak, we've in mind recognised legal mechanisms that can be conducive for development of trade between india and Iran," the Iranian foreign minister said.

There are "ample opportunities" for India and Iran irrespective of the "unilateral sanctions" imposed by the US, which will not last for long, he added.

Abdollahian, who met Prime Minister Narendra Modi and National Security Advisor Ajit Doval on Wednesday, said New Delhi and Tehran have agreed to "delineate a long term roadmap".

He further said Modi is "way forward" on such thinking about a long-term partnership, and stressed during the meeting that both the countries are already implementing the roadmap even before formalising it.

The foreign minister said there were detailed and forward looking discussions on economic and trade aspects, adding that Indo-Iranian trade was centuries old.

He also said Chabahar Port is a very reliable infrastructure asset and added that it is already functional with help from Indian investment.

"We agreed to precipitate the investment in this port," he said, adding that discussions were also held on energy.

A "special heed" was paid to the capacities in oil, petroleum and gas that exists within Iran, he said.

Iran has kept the domestic trade routes across the country ready and active to help the cause of trade, especially amid the war triggered by Russian invasion of Ukraine, he added.

Indian markets opened over 1% lower tracking a fall in global equities as investors remain concerned about the global economy while awaiting key data on US retail inflation.

At 9.55 am, the benchmark Sensex was down 1.3% or 711 points to 54608 points while the Nifty was 1.24% or 205 points lower at 16274 points.

This comes after the Dow Jones Industrial Average fell 1.94 percent, the S&P 500 lost 2.38 percent and the Nasdaq Composite dropped 2.75 percent overnight. Among Asian shares, Nikkei was down 1.3%, Hang Seng was trading flat, Topix down 1%, Kospi down 1.3%, Jakarta fell 1.2%, and the Philippines lost 2%.

"Global markets are falling as investors remain concerned about the global economy while awaiting key data about inflation. The combination of slowing growth and rising prices has raised concerns of stagflation where growth stalls but inflation drives up prices. Moreover, the Russia-Ukraine crisis continues to impact market sentiments," said Mitul Shah, head of research at Reliance Securities.

Here is a detailed look at the factors sending Indian markets lower:

India data: Investors will wait for April factory output data today and consumer price index data for May on Monday. A Bloomberg poll expects factory output for April to rise 5% year on year from 1.9% a month ago and CPI to grow 7.1% for May versus 7.79% in April.

US CPI data: Investors are waiting for US CPI inflation data for May today.   They expect the US Federal Reserve to hike rates by 50 basis points next week, especially if data confirms an elevated inflation reading.

ECB meeting: The European Central Bank on Thursday confirmed its intention to hike interest rates for the first time since 2011 and downgraded its growth forecasts. ECB aims to raise key interest rate by 25 basis points at the July meeting and targets a further hike in the September meeting, saying the scale of that increment would depend on the evolving trajectory of the medium-term inflation outlook. It has also ended its bond buying stimulus.

Crude oil: Currently trading over $120 bbl fuelled by intensifying geopolitical tensions between Russia and Ukraine, and tightening by global central banks. As oil boils, India's current account deficit is likely to hit a three-year high of 1.8% or $43.81 billion in FY22, as against a surplus of 0.9% or $23.91 billion in FY21, according to India Ratings.

RBI policy: Reserve Bank of India signalled more rate hikes to come in its inflation fight. On Wednesday, RBI raised the key interest rate for a second straight month and pledged to withdraw the pandemic-era accommodation as it steps up its fight to tame prices that have been running above its target band since the beginning of the year. In the latest move, the rate setting panel unanimously raised the repurchase rate by 50 basis points to 4.90%.

Covid cases: Investors were also worried by Covid cases rising in India. The nation registered its highest daily spike in nearly three months with 7,584 new Covid cases as the country witnesses a fresh surge in several parts. Maharashtra, the state most affected, recorded 2,813 cases, the sharpest rise any state saw in 24 hours. This was followed by Kerala, which recorded 2,193 cases

After a surprise rate hike in May in an off-cycle meeting, the Reserve Bank of India's Monetary Policy Committee on Wednesday unanimously voted to increase the benchmark policy rate by 50 basis points. Thus, the repo rate now stands at 4.90 per cent.

Consequently, the standing deposit facility rate stands adjusted to 4.65 per cent. The marginal standing facility rate and the bank rate stand adjusted to 5.15 per cent. The Monetary Policy Committee voted unanimously to remain focused on the withdrawal of accommodation in order to ensure inflation remains within range going forward, while supporting growth.

The rupee slipped 10 paise to 77.78 against the US dollar in early trade on Thursday, as elevated crude oil prices and persistent foreign capital outflows weighed on investor sentiments.

At the interbank foreign exchange, the rupee opened at 77.74 against the American dollar, then lost ground to quote at 77.78, registering a fall of 10 paise from the last close.

On Wednesday, the rupee recovered from its record low to close 10 paise higher at 77.68 against the American currency. Rupee is hovering around its lifetime low of 77.78 against the US dollar tracking the strength of the American currency in the overseas market and firm crude oil prices.

Rupee opened on a bearish note as crude oil neared USD 125 per barrel, Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, said. "Only RBI is supporting the rupee while the flows have totally dried out. Foreign Portfolio Investors (FPIs) continue the sell-mode for equities and buy-mode for US dollar," Bhansali said.

Moreover, Asian currencies are trading on a weak note, Bhansali said, adding that there is "no effect of a rate hike by RBI on Wednesday on the rupee as buyers of the dollar are in abundance." Global oil benchmark Brent crude futures rose 0.26 per cent to USD 123.90 per barrel.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.01 per cent lower at 102.52. On the domestic equity market front, the 30-share Sensex was trading 163.34 points or 0.30 per cent lower at 54,729.15, while the broader NSE Nifty declined 41.00 points or 0.25 per cent to 16,315.25.

Foreign institutional investors were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 2,484.25 crore, as per stock exchange data.