Tuesday, February 28, 2023
7% Growth Forecast For Current Fiscal "Realistic": Chief Economic Advisor
Chief Economic Advisor V Anantha Nageswaran on Tuesday said high frequency data indicate buoyant economic growth momentum and the 7 per cent GDP growth estimate for the current fiscal is very realistic.
He also said that there are enough signs that manufacturing is in good health.
"Inflation is softening and the pass through from wholesale prices has run its course… we do have some uncertainty related to monsoon because of El Nino activity… we need to be ready with both supply side and monetary policy measures in the course of the next financial year," Mr Nageswaran told reporters.
According to him, the GDP growth forecast of 6.5 per cent for the next fiscal is well within the range of forecast by other agencies like OECD and ADB but there are downside risks.
"We need to be prepared for tighter financial conditions globally, weather-related uncertainties and geopolitical factors. 2023-24 may not see a big ticker shock as we saw in early months of 2022-23 as the war broke out in 2022 but nonetheless some of the underlying factors are still simmering and we need to be watchful," Mr Nageswaran said.
He said sales of passenger vehicles, two-wheelers and tractors are on an uptrend and real estate sector too is bouncing back strongly. Unemployment rate is coming down and jobs are being created at lower salary level, he added.
Further, Nageswaran said all these indicators point towards broad-based growth momentum in the economy.
"... The growth rate that we need to achieve in the fourth quarter is roughly at 5-5.1 per cent to be able to hit a 7 per cent real GDP growth.
"The trends that we have in terms of high frequency data for 2022-23 for fourth quarter do indicate that achieving that growth rate in Q4 is well within the realm of possibility and therefore the 7 per cent real GDP growth estimate for 2022-23 is very realistic," he said.
He was briefing reporters after the release of the December quarter GDP data by the National Statistical Office (NSO) which showed that growth slowed to 4.4 per cent, mainly due to a contraction in the manufacturing sector.
In the current fiscal, the Indian economy grew 19.5 per cent and 23.9 per cent in June and September quarters, respectively.
Mr Nageswaran said the Quarter-on-Quarter changes are less consequential and since they are not seasonally-adjusted, it should be seen with caution. The broader picture shows economy is buoyant, he added.
The manufacturing sector's output, as per the gross value added in the third quarter of this fiscal, contracted 1.1 per cent compared to a growth of 1.3 per cent in the year-ago period.
"Manufacturing appears to have slowed down on the face of it due to rising input cost, but if you look at PMI (Purchasing Managers Index) indicators, the manufacturing sector is in good health and performance of core sector in January tells us we do have a fairly robust manufacturing growth rate in the fourth quarter," he added.
The chief economic advisor also said the merchandise exports of goods and services is expected to be USD 750 billion in the current fiscal compared to USD 680 billion in the last fiscal, which is a creditable achievement considering the global growth slowdown in 2022.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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7% Growth Forecast For Current Fiscal "Realistic": Chief Economic Advisor
Chief Economic Advisor V Anantha Nageswaran on Tuesday said high frequency data indicate buoyant economic growth momentum and the 7 per cent GDP growth estimate for the current fiscal is very realistic.
He also said that there are enough signs that manufacturing is in good health.
"Inflation is softening and the pass through from wholesale prices has run its course… we do have some uncertainty related to monsoon because of El Nino activity… we need to be ready with both supply side and monetary policy measures in the course of the next financial year," Mr Nageswaran told reporters.
According to him, the GDP growth forecast of 6.5 per cent for the next fiscal is well within the range of forecast by other agencies like OECD and ADB but there are downside risks.
"We need to be prepared for tighter financial conditions globally, weather-related uncertainties and geopolitical factors. 2023-24 may not see a big ticker shock as we saw in early months of 2022-23 as the war broke out in 2022 but nonetheless some of the underlying factors are still simmering and we need to be watchful," Mr Nageswaran said.
He said sales of passenger vehicles, two-wheelers and tractors are on an uptrend and real estate sector too is bouncing back strongly. Unemployment rate is coming down and jobs are being created at lower salary level, he added.
Further, Nageswaran said all these indicators point towards broad-based growth momentum in the economy.
"... The growth rate that we need to achieve in the fourth quarter is roughly at 5-5.1 per cent to be able to hit a 7 per cent real GDP growth.
"The trends that we have in terms of high frequency data for 2022-23 for fourth quarter do indicate that achieving that growth rate in Q4 is well within the realm of possibility and therefore the 7 per cent real GDP growth estimate for 2022-23 is very realistic," he said.
He was briefing reporters after the release of the December quarter GDP data by the National Statistical Office (NSO) which showed that growth slowed to 4.4 per cent, mainly due to a contraction in the manufacturing sector.
In the current fiscal, the Indian economy grew 19.5 per cent and 23.9 per cent in June and September quarters, respectively.
Mr Nageswaran said the Quarter-on-Quarter changes are less consequential and since they are not seasonally-adjusted, it should be seen with caution. The broader picture shows economy is buoyant, he added.
The manufacturing sector's output, as per the gross value added in the third quarter of this fiscal, contracted 1.1 per cent compared to a growth of 1.3 per cent in the year-ago period.
"Manufacturing appears to have slowed down on the face of it due to rising input cost, but if you look at PMI (Purchasing Managers Index) indicators, the manufacturing sector is in good health and performance of core sector in January tells us we do have a fairly robust manufacturing growth rate in the fourth quarter," he added.
The chief economic advisor also said the merchandise exports of goods and services is expected to be USD 750 billion in the current fiscal compared to USD 680 billion in the last fiscal, which is a creditable achievement considering the global growth slowdown in 2022.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Monday, February 27, 2023
Sunday, February 26, 2023
India's Economic Growth Appears To Be "Very Fragile": RBI Panel Member
India's economic growth appears to be 'very fragile' and it may fall short of what the country needs to meet the aspirations of its growing workforce, RBI Monetary Policy Committee (MPC) member Jayanth R Varma said on Sunday.
In India, Varma said he expects inflation to remain high in 2022-23 but come down significantly in 2023-24.
"However, growth appears to be very fragile, and monetary tightening is compressing demand," he told PTI.
Explaining further, he said rising EMI payments increases the pressure on household budgets and dampens spending, and exports are struggling in the face of global factors.
While noting that high interest rates make private capital investment more difficult, Varma said the government is in fiscal consolidation mode, thus reducing the support to the economy from this source.
"Because of all these factors, I fear that growth may fall short of what we need to meet the aspirations of our growing workforce given our demographic context and income level," he said.
The Reserve Bank of India (RBI) has projected India's economic growth at 6.4 per cent for 2023- 24. Gross Domestic Product (GDP) growth is estimated at 7 per cent in 2022-23, according to the first advance estimate of the National Statistical Office (NSO).
The Economic Survey 2022-23 projected a baseline GDP growth of 6.5 per cent in real terms for the next fiscal.
Varma , currently a professor at the Indian Institute of Management, Ahmedabad said he sees global inflationary pressures dissipating in the months ahead as the supply shocks from the pandemic and from the Ukraine war gradually resolve themselves.
"The world is learning to live with the war," he said, adding that. at the same time monetary tightening is putting growth at risk across the world.
Replying to a question on high inflation, Varma said 2022-23 is a year of high inflation due to various supply shocks as well as the delay in monetary tightening during the second half of 2022-23.
"However, I expect inflation to come down significantly in 2023-24. I anticipate a gradual glide path that brings inflation down close to the target," he said.
The RBI lowered the consumer price inflation (CPI) forecast to 6.5 per cent for the current fiscal from 6.7 per cent. India's retail inflation in January was 6.52 per cent.
To a question on the Reserve Bank hiking the short-term lending rate, Varma opined that the balance of risks has shifted towards growth rather than inflation, and in this context, a pause is more appropriate.
While observing that rates are high enough for the MPC to wait and see how the situation evolves, he said, "In the unlikely event of inflation remaining stubbornly high, further rate hikes could be considered at that point of time." The Reserve Bank which has been hiking the short-term lending rate since May last year has cumulatively raised the repo rate by 250 basis points. The repo rate now stands at 6.5 per cent.
Asked what would be the likely impact of hot weather on wheat crop and food inflation, Varma said he hopes that weather anomalies will prove transient and India have a normal monsoon.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Saturday, February 25, 2023
India's Economic Growth Appears To Be "Very Fragile": RBI Panel Member
India's economic growth appears to be 'very fragile' and it may fall short of what the country needs to meet the aspirations of its growing workforce, RBI Monetary Policy Committee (MPC) member Jayanth R Varma said on Sunday.
In India, Varma said he expects inflation to remain high in 2022-23 but come down significantly in 2023-24.
"However, growth appears to be very fragile, and monetary tightening is compressing demand," he told PTI.
Explaining further, he said rising EMI payments increases the pressure on household budgets and dampens spending, and exports are struggling in the face of global factors.
While noting that high interest rates make private capital investment more difficult, Varma said the government is in fiscal consolidation mode, thus reducing the support to the economy from this source.
"Because of all these factors, I fear that growth may fall short of what we need to meet the aspirations of our growing workforce given our demographic context and income level," he said.
The Reserve Bank of India (RBI) has projected India's economic growth at 6.4 per cent for 2023- 24. Gross Domestic Product (GDP) growth is estimated at 7 per cent in 2022-23, according to the first advance estimate of the National Statistical Office (NSO).
The Economic Survey 2022-23 projected a baseline GDP growth of 6.5 per cent in real terms for the next fiscal.
Varma , currently a professor at the Indian Institute of Management, Ahmedabad said he sees global inflationary pressures dissipating in the months ahead as the supply shocks from the pandemic and from the Ukraine war gradually resolve themselves.
"The world is learning to live with the war," he said, adding that. at the same time monetary tightening is putting growth at risk across the world.
Replying to a question on high inflation, Varma said 2022-23 is a year of high inflation due to various supply shocks as well as the delay in monetary tightening during the second half of 2022-23.
"However, I expect inflation to come down significantly in 2023-24. I anticipate a gradual glide path that brings inflation down close to the target," he said.
The RBI lowered the consumer price inflation (CPI) forecast to 6.5 per cent for the current fiscal from 6.7 per cent. India's retail inflation in January was 6.52 per cent.
To a question on the Reserve Bank hiking the short-term lending rate, Varma opined that the balance of risks has shifted towards growth rather than inflation, and in this context, a pause is more appropriate.
While observing that rates are high enough for the MPC to wait and see how the situation evolves, he said, "In the unlikely event of inflation remaining stubbornly high, further rate hikes could be considered at that point of time." The Reserve Bank which has been hiking the short-term lending rate since May last year has cumulatively raised the repo rate by 250 basis points. The repo rate now stands at 6.5 per cent.
Asked what would be the likely impact of hot weather on wheat crop and food inflation, Varma said he hopes that weather anomalies will prove transient and India have a normal monsoon.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Explained: Why US Has Always Had Its Nominee As World Bank President
Indian-American executive Ajay Banga has been nominated by US President Joe Biden to become the new President of the World Bank. His election to the position will be a mere formality since the presidency has traditionally been held by the United States.
All 13 Presidents of the World Bank so far have been US citizens; the only exception being Bulgarian national Kristalina Georgieva, who served as the acting president in 2019.
This connection between the United States and the World Bank presidency is no co-incidence.
The US is the single-largest shareholder in the Bank, with 16.35 per cent of total capital subscription and over 15 per cent of the votes. The United States is also the only country with veto power over certain changes in the Bank's structure.
"The US has picked its president, using the appointment as a vehicle to advance American economic interests, power and development priorities around the globe," a report in The Wall Street Journal encapsulates the US domination of the World Bank.
In fact, the US faced no challenge for the presidency till 2011, when the system was changed for a "transparent, merit-based process."
The genesis of the World Bank provides another reason for the pre-eminence of the United States.
The World Bank was established towards the end of World War II, which devastated European economies but led to the emergence of the US as an economic powerhouse. Washington DC bought the most shares, controlled 35.07 per cent of the voting rights, and heavily funded the Bank.
In its early years, the World Bank focused on the reconstruction of Western Europe. The US, which largely escaped the war's tragedy, was in pole position to take up the leadership role.
On the other hand, according to an informal understanding, the Europeans chose to lead the International Monetary Fund, which was also established alongside the World Bank. All Managing Directors of the IMF have been Europeans.
How The World Bank President Is Elected
The World Bank has a weighted system of voting. All member nations receive votes consisting of share votes (one vote for each share of the Bank's capital stock held by the member nation) and basic votes.
According to the Bank, "basic votes shall be the number of votes that results from the equal distribution among all members of 5.55 per cent of the aggregate sum of the voting power of all the members."
The President is elected by the board of Executive Directors. There are 25 Executive Directors in total - five nominated and 20 elected.
The nomination process began on February 23 at 9 am Eastern Standard Time (EST) and will end on Wednesday, March 29 at 6 pm EST. The nomination is made by Executive Directors, or by Governors through their Executive Director.
A country's finance minister or the chief of the central bank is a Governor at the World Bank. The Executive Director manages the day-to-day affairs on behalf of the Governor.
The Executive Directors will later shortlist three names and formally interview them. Following confirmation by the board, a new President - Mr Banga in all likelihood - is likely to be in place by early May 2023, as per reports.
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Explained: Why US Has Always Had Its Nominee As World Bank President
Indian-American executive Ajay Banga has been nominated by US President Joe Biden to become the new President of the World Bank. His election to the position will be a mere formality since the presidency has traditionally been held by the United States.
All 13 Presidents of the World Bank so far have been US citizens; the only exception being Bulgarian national Kristalina Georgieva, who served as the acting president in 2019.
This connection between the United States and the World Bank presidency is no co-incidence.
The US is the single-largest shareholder in the Bank, with 16.35 per cent of total capital subscription and over 15 per cent of the votes. The United States is also the only country with veto power over certain changes in the Bank's structure.
"The US has picked its president, using the appointment as a vehicle to advance American economic interests, power and development priorities around the globe," a report in The Wall Street Journal encapsulates the US domination of the World Bank.
In fact, the US faced no challenge for the presidency till 2011, when the system was changed for a "transparent, merit-based process."
The genesis of the World Bank provides another reason for the pre-eminence of the United States.
The World Bank was established towards the end of World War II, which devastated European economies but led to the emergence of the US as an economic powerhouse. Washington DC bought the most shares, controlled 35.07 per cent of the voting rights, and heavily funded the Bank.
In its early years, the World Bank focused on the reconstruction of Western Europe. The US, which largely escaped the war's tragedy, was in pole position to take up the leadership role.
On the other hand, according to an informal understanding, the Europeans chose to lead the International Monetary Fund, which was also established alongside the World Bank. All Managing Directors of the IMF have been Europeans.
How The World Bank President Is Elected
The World Bank has a weighted system of voting. All member nations receive votes consisting of share votes (one vote for each share of the Bank's capital stock held by the member nation) and basic votes.
According to the Bank, "basic votes shall be the number of votes that results from the equal distribution among all members of 5.55 per cent of the aggregate sum of the voting power of all the members."
The President is elected by the board of Executive Directors. There are 25 Executive Directors in total - five nominated and 20 elected.
The nomination process began on February 23 at 9 am Eastern Standard Time (EST) and will end on Wednesday, March 29 at 6 pm EST. The nomination is made by Executive Directors, or by Governors through their Executive Director.
A country's finance minister or the chief of the central bank is a Governor at the World Bank. The Executive Director manages the day-to-day affairs on behalf of the Governor.
The Executive Directors will later shortlist three names and formally interview them. Following confirmation by the board, a new President - Mr Banga in all likelihood - is likely to be in place by early May 2023, as per reports.
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India, UK Finance Ministers Agree To Make Progress On Free Trade Talks
India and the UK have agreed to make further progress on the ongoing negotiations for a free trade agreement (FTA) and also to swiftly organise the next bilateral Economic and Financial Dialogue soon, the British government said on Saturday.
At the conclusion of UK Chancellor Jeremy Hunt's India visit for the G20 Finance Ministers and Central Bank Governors meeting, held under India's 2023 Presidency, the UK's Treasury department said the finance minister held talks with Indian counterpart Nirmala Sitharaman with a focus on deepening bilateral economic and financial ties.
"At a meeting with Indian Finance Minister Nirmala Sitharaman, both sides agreed to make further progress on the UK-India Free Trade Agreement and deepen bilateral economic and financial ties," the Treasury department said in a statement.
"They agreed to make swift progress on setting up the next UK-India Economic and Financial Dialogue," it said.
Hunt, on his first international visit as UK Chancellor, also met with business leaders in Bengaluru and visited the offices of tech multinational Wipro which employs over 4,000 people in the UK.
"Meeting fellow Finance Ministers face to face is an excellent opportunity to make real progress on the key global economic issues of our time," said Hunt.
"I first visited India 38 years ago, and it's been fascinating to see how much the country has changed in this time - there are positive lessons to be learnt from their successful rapid development.
"It's been great to hear from Indian technology business leaders here in Bengaluru how they are pushing the country's economy forward, and I look forward to further collaboration between India and the UK as we continue to trade and create jobs - delivering on the government's plan to grow the economy," he said.
The Chancellor, alongside Bank of England Governor Andrew Bailey, attended a meeting of G7 Finance Ministers and Central Bank Governors on Thursday. They were joined virtually by Ukrainian Finance Minister Serhiy Marchenko.
"Their statement sent a strong message of condemnation for Russia's war of aggression against Ukraine, announced an increase of financial support for the Ukrainian government to a total of USD 39 billion in 2023 and committed to continue supporting vulnerable countries hardest hit by the economic impact of the war," the Treasury said.
On Friday, the UK announced a fresh wave of internationally coordinated sanctions and trade measures, to "further restrict Russia's capability to wage war in Ukraine both now and in the future".
At the first G20 Finance Ministers and Central Bank Governors meeting under the Indian Presidency, Hunt condemned "Russia's brutal acts" in the strongest terms, emphasising that securing peace was the most important action for global growth.
According to the UK government, the senior Cabinet minister also underscored the need for bilateral official creditors and private sector to urgently help address low and middle-income country debt vulnerabilities in developing countries.
The minister emphasised the importance of multilateral development banks boosting lending from their existing balance sheets and called on the G20 to fulfil its pledge to channel USD 100 billion of IMF Special Drawing Rights in support of developing countries.
"The Indian Presidency issued a Chair's statement at the end of the meeting which highlighted, among other things, the continued need to fight inflation, and the importance of supply-side policies, especially those that increase labour supply, boost growth and alleviate price pressures.
"There was also G20 consensus, including China, on the need for swift resolution of existing debt restructuring cases and to work on the impacts of food and energy insecurity on the global economy," the Treasury said.
While in Bengaluru, the UK Chancellor is also said to have had "productive bilateral meetings" with US Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, French Minister of Economy and Finance Bruno Le Maire and Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF). He also met with Australian Treasurer Jim Chalmers.
While speaking at the meetings, the Chancellor is said to have set out the UK government's intention to protect the most vulnerable from cost-of-living pressures, whilst maintaining fiscal sustainability with debt falling and not adding to inflationary pressure.
He added that the upcoming Spring Budget of the Rishi Sunak-led government on March 15 will "drive economic growth, focusing on skills, business and infrastructure investment and research and innovation, as well as reviewing regulations of the UK's key growth industries".
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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India, UK Finance Ministers Agree To Make Progress On Free Trade Talks
India and the UK have agreed to make further progress on the ongoing negotiations for a free trade agreement (FTA) and also to swiftly organise the next bilateral Economic and Financial Dialogue soon, the British government said on Saturday.
At the conclusion of UK Chancellor Jeremy Hunt's India visit for the G20 Finance Ministers and Central Bank Governors meeting, held under India's 2023 Presidency, the UK's Treasury department said the finance minister held talks with Indian counterpart Nirmala Sitharaman with a focus on deepening bilateral economic and financial ties.
"At a meeting with Indian Finance Minister Nirmala Sitharaman, both sides agreed to make further progress on the UK-India Free Trade Agreement and deepen bilateral economic and financial ties," the Treasury department said in a statement.
"They agreed to make swift progress on setting up the next UK-India Economic and Financial Dialogue," it said.
Hunt, on his first international visit as UK Chancellor, also met with business leaders in Bengaluru and visited the offices of tech multinational Wipro which employs over 4,000 people in the UK.
"Meeting fellow Finance Ministers face to face is an excellent opportunity to make real progress on the key global economic issues of our time," said Hunt.
"I first visited India 38 years ago, and it's been fascinating to see how much the country has changed in this time - there are positive lessons to be learnt from their successful rapid development.
"It's been great to hear from Indian technology business leaders here in Bengaluru how they are pushing the country's economy forward, and I look forward to further collaboration between India and the UK as we continue to trade and create jobs - delivering on the government's plan to grow the economy," he said.
The Chancellor, alongside Bank of England Governor Andrew Bailey, attended a meeting of G7 Finance Ministers and Central Bank Governors on Thursday. They were joined virtually by Ukrainian Finance Minister Serhiy Marchenko.
"Their statement sent a strong message of condemnation for Russia's war of aggression against Ukraine, announced an increase of financial support for the Ukrainian government to a total of USD 39 billion in 2023 and committed to continue supporting vulnerable countries hardest hit by the economic impact of the war," the Treasury said.
On Friday, the UK announced a fresh wave of internationally coordinated sanctions and trade measures, to "further restrict Russia's capability to wage war in Ukraine both now and in the future".
At the first G20 Finance Ministers and Central Bank Governors meeting under the Indian Presidency, Hunt condemned "Russia's brutal acts" in the strongest terms, emphasising that securing peace was the most important action for global growth.
According to the UK government, the senior Cabinet minister also underscored the need for bilateral official creditors and private sector to urgently help address low and middle-income country debt vulnerabilities in developing countries.
The minister emphasised the importance of multilateral development banks boosting lending from their existing balance sheets and called on the G20 to fulfil its pledge to channel USD 100 billion of IMF Special Drawing Rights in support of developing countries.
"The Indian Presidency issued a Chair's statement at the end of the meeting which highlighted, among other things, the continued need to fight inflation, and the importance of supply-side policies, especially those that increase labour supply, boost growth and alleviate price pressures.
"There was also G20 consensus, including China, on the need for swift resolution of existing debt restructuring cases and to work on the impacts of food and energy insecurity on the global economy," the Treasury said.
While in Bengaluru, the UK Chancellor is also said to have had "productive bilateral meetings" with US Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, French Minister of Economy and Finance Bruno Le Maire and Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF). He also met with Australian Treasurer Jim Chalmers.
While speaking at the meetings, the Chancellor is said to have set out the UK government's intention to protect the most vulnerable from cost-of-living pressures, whilst maintaining fiscal sustainability with debt falling and not adding to inflationary pressure.
He added that the upcoming Spring Budget of the Rishi Sunak-led government on March 15 will "drive economic growth, focusing on skills, business and infrastructure investment and research and innovation, as well as reviewing regulations of the UK's key growth industries".
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Thursday, February 23, 2023
Wednesday, February 22, 2023
Pakistan Must Do More To Ensure Foundation For Strong Growth: IMF Head
Pakistan has to do more to ensure that the foundation for strong growth is in place, taxes are collected and are fairly distributed, and those who have more, pay more, IMF Managing Director Kristalina Georgieva has said, as the cash-starved country is engaged in "tough" talks for a bailout with the global lender to tide over the worsening economic crisis.
Pakistan, which is in dire need of funds as it battles a wrenching economic crisis, has received financial assistance from the International Monetary Fund (IMF) in the past and is presently in discussions with the organisation to resume its loan programme.
An agreement on the ninth review of the programme would release over USD 1.1 billion. A resumption of the IMF programme would also unlock other avenues of funding for Pakistan.
Ms Georgieva emphasised that the IMF has made "good progress" in its talks with Pakistan.
"Pakistan has gone through a number of years striving to stabilise the economy and put in place a sound framework for private sector growth. There is still some work the country needs to do to achieve this objective," Ms Georgieva told news agency PTI in an interview ahead of the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in Bengaluru this week.
Pakistan, she said, has been severely impacted recently by the floods that put one-third of the country under water. It adds to the difficulties of this South Asian country, she said.
The cataclysmic floods inundated a third of the country, displaced more than 33 million and caused economic damages to the tune of USD 12.5 billion to Pakistan's already teetering economy. The devastating floods last year killed 1,739 people.
"What we would like very much to support Pakistan in is to make sure that the foundation for strong growth is in place, that taxes are collected, they're fairly distributed, and that those who have more, pay more, and that the use of public money is well designed, so it targets the most vulnerable people in society," Ms Georgieva said.
"In other words, subsidies are not made available to those who don't need them. We know that Pakistan is now seriously engaged in implementing programme objectives," she said.
"We have had our team come back. Good progress was made. Still some more to be done. And I do hope that we will see Pakistan coming from that very difficult time with a sounder policy framework for the future," Ms Georgieva said.
Her remarks came days after the two sides concluded the ninth review of the USD 6.5 billion bailout package without a staff-level agreement after 10 days of talks. However, both sides agreed to a set of measures that could still help clinch the deal.
The two sides are now holding talks in virtual settings to finalise a deal to provide the much-needed funds to shore up the foreign exchange.
Pakistan Prime Minister Shehbaz Sharif said earlier this month that the IMF was giving a "tough time" to the government during talks for the restoration of the loan.
"As I speak, the IMF delegation is in Islamabad and they are giving Finance Minister Ishaq Dar and his team a tough time," Shehbaz Sharif said in Peshawar.
The economic challenge at this point was unimaginable, Sharif said, adding that the IMF conditions that the country has to meet are "beyond imagination", but it is mandatory to fulfil the demands of the Fund.
Meanwhile, foreign exchange reserves held by the State Bank of Pakistan have fallen to around USD 3 billion, barely enough to cover three weeks of controlled imports.
Earlier, the IMF said in a statement that both sides have agreed to stay engaged and "virtual discussions will continue in the coming days to finalise the implementation details" of the policies, including the tax measures, discussed in Islamabad.
The government is in a race against time to implement the tax measures and reach an agreement with the IMF. The IMF has given a deadline of March 1 to Pakistan for implementing all the measures.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Pakistan Must Do More To Ensure Foundation For Strong Growth: IMF Head
Pakistan has to do more to ensure that the foundation for strong growth is in place, taxes are collected and are fairly distributed, and those who have more, pay more, IMF Managing Director Kristalina Georgieva has said, as the cash-starved country is engaged in "tough" talks for a bailout with the global lender to tide over the worsening economic crisis.
Pakistan, which is in dire need of funds as it battles a wrenching economic crisis, has received financial assistance from the International Monetary Fund (IMF) in the past and is presently in discussions with the organisation to resume its loan programme.
An agreement on the ninth review of the programme would release over USD 1.1 billion. A resumption of the IMF programme would also unlock other avenues of funding for Pakistan.
Ms Georgieva emphasised that the IMF has made "good progress" in its talks with Pakistan.
"Pakistan has gone through a number of years striving to stabilise the economy and put in place a sound framework for private sector growth. There is still some work the country needs to do to achieve this objective," Ms Georgieva told news agency PTI in an interview ahead of the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in Bengaluru this week.
Pakistan, she said, has been severely impacted recently by the floods that put one-third of the country under water. It adds to the difficulties of this South Asian country, she said.
The cataclysmic floods inundated a third of the country, displaced more than 33 million and caused economic damages to the tune of USD 12.5 billion to Pakistan's already teetering economy. The devastating floods last year killed 1,739 people.
"What we would like very much to support Pakistan in is to make sure that the foundation for strong growth is in place, that taxes are collected, they're fairly distributed, and that those who have more, pay more, and that the use of public money is well designed, so it targets the most vulnerable people in society," Ms Georgieva said.
"In other words, subsidies are not made available to those who don't need them. We know that Pakistan is now seriously engaged in implementing programme objectives," she said.
"We have had our team come back. Good progress was made. Still some more to be done. And I do hope that we will see Pakistan coming from that very difficult time with a sounder policy framework for the future," Ms Georgieva said.
Her remarks came days after the two sides concluded the ninth review of the USD 6.5 billion bailout package without a staff-level agreement after 10 days of talks. However, both sides agreed to a set of measures that could still help clinch the deal.
The two sides are now holding talks in virtual settings to finalise a deal to provide the much-needed funds to shore up the foreign exchange.
Pakistan Prime Minister Shehbaz Sharif said earlier this month that the IMF was giving a "tough time" to the government during talks for the restoration of the loan.
"As I speak, the IMF delegation is in Islamabad and they are giving Finance Minister Ishaq Dar and his team a tough time," Shehbaz Sharif said in Peshawar.
The economic challenge at this point was unimaginable, Sharif said, adding that the IMF conditions that the country has to meet are "beyond imagination", but it is mandatory to fulfil the demands of the Fund.
Meanwhile, foreign exchange reserves held by the State Bank of Pakistan have fallen to around USD 3 billion, barely enough to cover three weeks of controlled imports.
Earlier, the IMF said in a statement that both sides have agreed to stay engaged and "virtual discussions will continue in the coming days to finalise the implementation details" of the policies, including the tax measures, discussed in Islamabad.
The government is in a race against time to implement the tax measures and reach an agreement with the IMF. The IMF has given a deadline of March 1 to Pakistan for implementing all the measures.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Tuesday, February 21, 2023
"Only Private Sector Can Take Country Forward": Sajjan Jindal
Business tycoon and chairman of JSW Group Sajjan Jindal on Tuesday said that it is be the private sector, not the public sector, that will take India ahead because "ultimately what matters is accountability and profitability".
While pointing out that India is on the path of becoming a USD 10-trillion economy in the next ten years, the country needs to adopt a "modern thought process" which is not driven by socialism or a notion that only the public sector can deliver, he said.
He made the remarks at the Indian Institute of Management Ahmedabad (IIM-A) after inaugurating the JSW School of Public Policy's new building, a state-of-the-art multi-facility centre at IIMA's new campus.
"...we used to talk about a country becoming a USD 5-trillion economy. But today we are talking about USD 10-trillion, visible in the next seven to ten years. The country is growing at neck-break speed. So we need a real modern thought process, which is not driven by socialism or an idea that only the public sector can deliver growth in the country," said Mr Jindal.
"On the contrary, in my view, it's the private sector which will propel this country to a different level. Because worldwide, the public sector has failed. And I am a very strong proponent of the government not to do business. Not because I belong to the private sector. It's because, ultimately it is the accountability and profitability which matters," he said.
The businessman added that it is the private sector and public listed companies which "finally deliver and take the country to a different level".
"Government and bureaucracy's role is to govern, to regulate the system. We need to encourage the government to bring in bureaucrats, IAS officers for training and retraining. There should be a refresher course where new ideas, what's happening in the world are discussed and debated and then implemented when they go back," he said.
Pankaj R Patel, Chairman of IIM-A Board of Governors, and Sangita Jindal, Chairperson of JSW Foundation, were among those who attended the event.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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"Only Private Sector Can Take Country Forward": Sajjan Jindal
Business tycoon and chairman of JSW Group Sajjan Jindal on Tuesday said that it is be the private sector, not the public sector, that will take India ahead because "ultimately what matters is accountability and profitability".
While pointing out that India is on the path of becoming a USD 10-trillion economy in the next ten years, the country needs to adopt a "modern thought process" which is not driven by socialism or a notion that only the public sector can deliver, he said.
He made the remarks at the Indian Institute of Management Ahmedabad (IIM-A) after inaugurating the JSW School of Public Policy's new building, a state-of-the-art multi-facility centre at IIMA's new campus.
"...we used to talk about a country becoming a USD 5-trillion economy. But today we are talking about USD 10-trillion, visible in the next seven to ten years. The country is growing at neck-break speed. So we need a real modern thought process, which is not driven by socialism or an idea that only the public sector can deliver growth in the country," said Mr Jindal.
"On the contrary, in my view, it's the private sector which will propel this country to a different level. Because worldwide, the public sector has failed. And I am a very strong proponent of the government not to do business. Not because I belong to the private sector. It's because, ultimately it is the accountability and profitability which matters," he said.
The businessman added that it is the private sector and public listed companies which "finally deliver and take the country to a different level".
"Government and bureaucracy's role is to govern, to regulate the system. We need to encourage the government to bring in bureaucrats, IAS officers for training and retraining. There should be a refresher course where new ideas, what's happening in the world are discussed and debated and then implemented when they go back," he said.
Pankaj R Patel, Chairman of IIM-A Board of Governors, and Sangita Jindal, Chairperson of JSW Foundation, were among those who attended the event.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Monday, February 20, 2023
Bajaj Auto: When Will Growth Accelerate?
It's a company that represented the aspirations of the rising middle class of India for decades. Bajaj Auto provides mobility to families, and also represents the 'can do' spirit of consumers.
And with the economy slowly reemerging from the twin shocks of Covid and rising fuel prices related to the Russia-Ukraine war, investors have been bullish on this auto stock.
No surprise, that Bajaj Auto ended last week Friday's trade at Rs 3,894, not too far from its 52-week high of Rs 4,130 touched on 1 September 2022.
This bullish sentiment comes at a time when the key operational performance of Bajaj Auto is sluggish.
For instance, total vehicle sales (two-wheelers and commercial vehicles) of Bajaj Auto declined 21% year-on-year (YoY) to 285,995 units in January 2023, and that was largely due to a 46% fall in two-wheeler exports to 100,679 units in the month under review.
Also, during April - January of FY23, total vehicle sales of the Pune-based company declined 9% YoY to 3,353,929 units, given weak demand conditions in overseas markets for its two-wheelers.
Meanwhile, nearest rival Hero MotoCorp saw its sales decline 6.2% YoY to 356,690 units in January 2023.
However, during April till January of the current financial year, total vehicle sales of this New-Delhi based company grew 6.7% to 4,414,744 units.
Smaller rival, TVS Motor Company reported a sales growth of 3% YoY to 275,115 units in January 2023.
Managing costs
Bajaj Auto had the highest operating profit margins in the December 2022 quarter in the two-wheeler segment.
The company's operating margins grew 370 basis points YoY to 21.9% in the quarter under review. Tight check on costs helped the Pune-based company grow its standalone net profit 22.8% YoY to Rs 14.9 billion (bn) while revenue from operations grew just 3.3%.
In the case of Hero MotoCorp, its operating profit margins were broadly flat at 13.8% on a YoY basis in the third quarter of current financial year.
Similarly, TVS Motor's operating profit margins were broadly flat at 10.1% on a YoY basis in the December 2022 quarter.
Investor sentiment
Investors are hoping that the government would shortly accept the two-wheeler industry demand for reducing GST from 28% to 18%.
Also, signs of easing in raw material prices have kept investor sentiment bullish for this sector.
As a result, TVS Motor ended Friday's trade at Rs 1,104 and not too far from its 52-week high of Rs 1,177 that was reached on 19 October 2022.
Hero MotoCorp ended Friday's trade at Rs 2,534 vis-a-vis its 52-week high of Rs 2,939 that was reached on 18 August 2022.
Valuations
Bajaj Auto trades at 18.5 times estimated FY23 earnings and 16 times estimated FY24 earnings.
Meanwhile, Hero MotoCorp trades at 18 times estimated March 2023 earnings and 17 times estimated March 2024 earnings.
And TVS Motor trades at 36 times estimated March 2023 earnings and 29 times estimated March 2024 earnings.
Bajaj Auto trades at a price to earnings (PE) multiple broadly in tune with its nearest rival Hero MotoCorp.
However, until the sales momentum in overseas markets picks up, growth opportunities appear limited for Bajaj Auto in the near term.
Investors could instead consider other two-wheeler stocks with a strong focus on the domestic market.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
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Bajaj Auto: When Will Growth Accelerate?
It's a company that represented the aspirations of the rising middle class of India for decades. Bajaj Auto provides mobility to families, and also represents the 'can do' spirit of consumers.
And with the economy slowly reemerging from the twin shocks of Covid and rising fuel prices related to the Russia-Ukraine war, investors have been bullish on this auto stock.
No surprise, that Bajaj Auto ended last week Friday's trade at Rs 3,894, not too far from its 52-week high of Rs 4,130 touched on 1 September 2022.
This bullish sentiment comes at a time when the key operational performance of Bajaj Auto is sluggish.
For instance, total vehicle sales (two-wheelers and commercial vehicles) of Bajaj Auto declined 21% year-on-year (YoY) to 285,995 units in January 2023, and that was largely due to a 46% fall in two-wheeler exports to 100,679 units in the month under review.
Also, during April - January of FY23, total vehicle sales of the Pune-based company declined 9% YoY to 3,353,929 units, given weak demand conditions in overseas markets for its two-wheelers.
Meanwhile, nearest rival Hero MotoCorp saw its sales decline 6.2% YoY to 356,690 units in January 2023.
However, during April till January of the current financial year, total vehicle sales of this New-Delhi based company grew 6.7% to 4,414,744 units.
Smaller rival, TVS Motor Company reported a sales growth of 3% YoY to 275,115 units in January 2023.
Managing costs
Bajaj Auto had the highest operating profit margins in the December 2022 quarter in the two-wheeler segment.
The company's operating margins grew 370 basis points YoY to 21.9% in the quarter under review. Tight check on costs helped the Pune-based company grow its standalone net profit 22.8% YoY to Rs 14.9 billion (bn) while revenue from operations grew just 3.3%.
In the case of Hero MotoCorp, its operating profit margins were broadly flat at 13.8% on a YoY basis in the third quarter of current financial year.
Similarly, TVS Motor's operating profit margins were broadly flat at 10.1% on a YoY basis in the December 2022 quarter.
Investor sentiment
Investors are hoping that the government would shortly accept the two-wheeler industry demand for reducing GST from 28% to 18%.
Also, signs of easing in raw material prices have kept investor sentiment bullish for this sector.
As a result, TVS Motor ended Friday's trade at Rs 1,104 and not too far from its 52-week high of Rs 1,177 that was reached on 19 October 2022.
Hero MotoCorp ended Friday's trade at Rs 2,534 vis-a-vis its 52-week high of Rs 2,939 that was reached on 18 August 2022.
Valuations
Bajaj Auto trades at 18.5 times estimated FY23 earnings and 16 times estimated FY24 earnings.
Meanwhile, Hero MotoCorp trades at 18 times estimated March 2023 earnings and 17 times estimated March 2024 earnings.
And TVS Motor trades at 36 times estimated March 2023 earnings and 29 times estimated March 2024 earnings.
Bajaj Auto trades at a price to earnings (PE) multiple broadly in tune with its nearest rival Hero MotoCorp.
However, until the sales momentum in overseas markets picks up, growth opportunities appear limited for Bajaj Auto in the near term.
Investors could instead consider other two-wheeler stocks with a strong focus on the domestic market.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
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Adani Group Firm Repays Rs 1,500 Crore In Comeback Strategy
Adani group firm Adani Ports & SEZ paid Rs 1,500 crore loan and promised to repay more as the embattled conglomerate mapped a comeback strategy after a sellout triggered by a damning report by US-based Hindenburg Research.
Adani Ports and SEZ paid SBI Mutual Funds' due amount of Rs 1,500 crore on Monday and will also pay another Rs 1,000 crore of commercial papers due in March (as per the payment scheme), a company spokesperson said.
"This part prepayment is from the existing cash balance and funds generated from the business operations," the spokesperson said. "This underscores the confidence which the market has placed on the prudent capital and liquidity management plan for the group."
The apple-to-airport conglomerate is hoping to claw back the narrative with payback and calm jittery investors and lenders who were spooked by allegations of accounting fraud and stock manipulations. Adani group has denied all the allegations.
The firm has already brought in Kekst CNC as a global communications advisor to help change the narrative building in international media. It has also engaged American law firm Wachtell, Lipton, Rosen and Katz to fight back against the short seller's allegations.
Adani group's gross debt stood at Rs 2.26 lakh crore as of September 2022 and had cash of Rs 31,646 crore.
Adani group has been on an overdrive to address investor concerns around debt. It has called off a plan to acquire a coal plant of DB Power for over Rs 7,000 crore and is drawing up a roadmap detailing the repayment schedule of existing debt.
APSEZ on February 8 said it will repay Rs 5,000 crore debt in year financial year starting April and the group would also repay a USD 500 million bridge loan due next month.
Earlier this month, French oil major TotalEnergies said it would wait for the result of an independent audit before proceeding with investing in Adani Group's USD 50 billion plans to make green hydrogen.
According to Bernstein Research, Adani Green is capable of paying off all its debt of Rs 22,000 crore due in the financial year ending in March 2025, if it divests some renewable energy assets, seeks fresh equity capital from existing investors, or cancels some planned projects and avoids bidding for new ones.
A group spokesperson, however, termed questions over the group's ability to fund projects and refinance debt as 'unfounded speculation'.
Moody's Investors Service downgraded the rating outlook for four Adani group companies to negative from stable.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
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Ola Plans To Build World's Largest Electric Vehicle Hub In Tamil Nadu
India's Ola Electric Mobility Pvt. plans to build what it says will be the world's largest electric vehicle hub with an investment of 76.1 billion rupees ($920 million) to localize the supply chain for cleaner transport.
The hub, spanning 2,000 acres (809 hectares) in Tamil Nadu, will be used for manufacturing electric two-wheelers, cars and battery cells, in addition to housing vendor and supplier parks, Ola said in a statement Friday. The Indian startup will begin mass production of cells from the hub later this year, it said.
While localizing critical elements of the EV supply chain, such as batteries, will make EVs more affordable, India has only a fraction of the raw materials needed to satisfy domestic demand for lithium-ion batteries - forecast by Crisil to grow 100- fold by 2030. Besides Ola, billionaire Mukesh Ambani's Reliance Industries Ltd. and bullion refiner Rajesh Exports Ltd. will receive incentives under a $2.3 billion government program to support advanced battery cell development.
Building a reliable supply chain could help Ola iron out issues in producing electric vehicles. The Bengaluru-based company recalled 1,441 electric scooters after one of the vehicles produced in the batch caught fire. Ola scooter deliveries were initially delayed as India relies heavily on imported parts, the supply of which was disrupted by a global chip shortage.
Ola last year unveiled its first lithium-ion cell developed in its battery innovation center in Bengaluru, which saw an investment of $500 million, the startup said in the statement. Over the next decade, Ola will focus on developing a local supply chain for materials and components such as motors, rare-earth magnets, semiconductors, lithium processing and electrode production from minerals like graphite, nickel, it said.
--With assistance from Saritha Rai.
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Vedanta's Debt-Cut Plan At Risk As India Opposes $3 Billion Asset Sale
Vedanta Resources' efforts to manage its debt load were dealt a blow after the government opposed the mining conglomerate's proposed $2.98 billion deal to move certain zinc assets from its flagship company to another in which it is a majority shareholder.
The government opposed Hindustan Zinc Ltd, in which it holds a near 30% stake, buying the Africa-based assets from Vedanta Ltd, its top shareholder with a near-65% stake, as it was a "related party transaction".
"We always believe in and operate in perfect manners of corporate governance, so (there is) no deviation on that count," Hindustan Zinc Chief Executive Arun Misra told CNBC-TV18. The company and Vedanta Ltd did not respond to Reuters' request for comment.
The development comes a week after Vedanta Resources said it had slashed net debt by $2 billion in the last 11 months, to $7.7 billion, seeking to allay concerns days S&P Global Ratings raised doubts about the billionaire Anil Agarwal-owned group's financial health.
S&P Global had said the group's ability to meet its financial obligations beyond September would depend on a planned $2 billion fundraise as well as the proposed sale of THL Zinc Ltd, a Vedanta Ltd unit that holds zinc assets in Africa.
That deal, announced on Jan. 19, is now in doubt after the government-nominated directors on Hindustan Zinc's board opposed the acquisition and said in a letter they would oppose further resolutions.
However, the Ministry of Mines, in its letter, urged Hindustan Zinc to "explore other cashless methods" for the deal. The government is looking to sell its entire stake in Hindustan Zinc as part of its efforts to replenish state coffers.
The deal, analysts have said, is unfavourable to Hindustan Zinc's minority shareholders, who have to sign off any board decision on related party deals in a meeting that Hindustan Zinc has to call within three months of announcing the deal.
Hindustan Zinc said in an exchange filing it had not yet called for the meeting but its board would consider the government's position.
While miner Vedanta Ltd, has been hit by a fall in commodity prices, Vedanta Resources is betting growth will be bolstered by its associate firms' investment in areas like semiconductors, display glass, renewables, optical fibre, and transmission.
Hindustan Zinc's shares have lost nearly 14.5% since the deal was announced a month ago, while Vedanta Ltd'd shares have lost about 5%. Both stocks were little changed on the day.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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Vedanta's Debt-Cut Plan At Risk As India Opposes $3 Billion Asset Sale
Vedanta Resources' efforts to manage its debt load were dealt a blow after the government opposed the mining conglomerate's proposed $2.98 billion deal to move certain zinc assets from its flagship company to another in which it is a majority shareholder.
The government opposed Hindustan Zinc Ltd, in which it holds a near 30% stake, buying the Africa-based assets from Vedanta Ltd, its top shareholder with a near-65% stake, as it was a "related party transaction".
"We always believe in and operate in perfect manners of corporate governance, so (there is) no deviation on that count," Hindustan Zinc Chief Executive Arun Misra told CNBC-TV18. The company and Vedanta Ltd did not respond to Reuters' request for comment.
The development comes a week after Vedanta Resources said it had slashed net debt by $2 billion in the last 11 months, to $7.7 billion, seeking to allay concerns days S&P Global Ratings raised doubts about the billionaire Anil Agarwal-owned group's financial health.
S&P Global had said the group's ability to meet its financial obligations beyond September would depend on a planned $2 billion fundraise as well as the proposed sale of THL Zinc Ltd, a Vedanta Ltd unit that holds zinc assets in Africa.
That deal, announced on Jan. 19, is now in doubt after the government-nominated directors on Hindustan Zinc's board opposed the acquisition and said in a letter they would oppose further resolutions.
However, the Ministry of Mines, in its letter, urged Hindustan Zinc to "explore other cashless methods" for the deal. The government is looking to sell its entire stake in Hindustan Zinc as part of its efforts to replenish state coffers.
The deal, analysts have said, is unfavourable to Hindustan Zinc's minority shareholders, who have to sign off any board decision on related party deals in a meeting that Hindustan Zinc has to call within three months of announcing the deal.
Hindustan Zinc said in an exchange filing it had not yet called for the meeting but its board would consider the government's position.
While miner Vedanta Ltd, has been hit by a fall in commodity prices, Vedanta Resources is betting growth will be bolstered by its associate firms' investment in areas like semiconductors, display glass, renewables, optical fibre, and transmission.
Hindustan Zinc's shares have lost nearly 14.5% since the deal was announced a month ago, while Vedanta Ltd'd shares have lost about 5%. Both stocks were little changed on the day.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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Sunday, February 19, 2023
Rupee Gains 16 Paise To 82.66 Against US Dollar
The rupee gained 16 paise to 82.66 against the US dollar in early trade on Monday as the American currency retreated from its elevated levels.
Forex traders said weak crude oil prices also lent some support to the local unit.
At the interbank foreign exchange, the domestic unit opened at 82.69 against the dollar, then gained ground and touched 82.66, registering a rise of 16 paise over its previous close.
In initial trade, the rupee also touched a low of 82.71 against the American currency.
On Friday, the rupee closed at 82.82 against the US currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.13 per cent to 103.99.
Brent crude futures, the global oil benchmark, advanced 0.61 per cent to USD 83.51 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 23.44 points or 0.04 per cent lower at 60,979.13. The broader NSE Nifty declined 33.95 points or 0.19 per cent to 17,910.25.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth Rs 624.61 crore, according to exchange data.
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Sensex Gains 165.9 Points In Early Trade, Nifty Rises To 17,979.45
Equity benchmark indices climbed in initial trade on Monday amid a positive trend in Asian markets. The BSE Sensex climbed 165.9 points to 61,168.47. The NSE Nifty advanced 35.25 points to 17,979.45.
From the Sensex pack, Power Grid, HCL Technologies, ITC, Bharti Airtel, Hindustan Unilever, ICICI Bank, IndusInd Bank, Infosys, Tech Mahindra, NTPC and HDFC Bank were the major winners.
Tata Steel, Wipro, Nestle, Bajaj Finserv, Titan and Bajaj Finance were among the major laggards.
In Asian markets, Japan, South Korea, Hong Kong and China were trading in the positive territory.
The US markets had ended on a mixed note on Friday.
"Markets may log steady gains in early trade on Monday as investors are likely to take cues from the optimism in SGX Nifty and other select Asian peers even as the key US indices closed mixed on Friday," said Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities Ltd.
However, going by the tumultuous ride of the last few weeks, markets may continue to witness a bumpy ride on the back of concerns over further uptick in interest rates and the likelihood of a slowdown in global growth, Mr Tapse added.
The 30-share BSE benchmark had declined by 316.94 points or 0.52 per cent to settle at 61,002.57 on Friday. The Nifty dropped by 91.65 points or 0.51 per cent to end at 17,944.20.
International oil benchmark Brent crude climbed 0.65 per cent to $83.55 per barrel.
Foreign Portfolio Investors (FPIs) offloaded shares worth Rs 624.61 crore on Friday, according to exchange data.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Sensex Gains 165.9 Points In Early Trade, Nifty Rises To 17,979.45
Equity benchmark indices climbed in initial trade on Monday amid a positive trend in Asian markets. The BSE Sensex climbed 165.9 points to 61,168.47. The NSE Nifty advanced 35.25 points to 17,979.45.
From the Sensex pack, Power Grid, HCL Technologies, ITC, Bharti Airtel, Hindustan Unilever, ICICI Bank, IndusInd Bank, Infosys, Tech Mahindra, NTPC and HDFC Bank were the major winners.
Tata Steel, Wipro, Nestle, Bajaj Finserv, Titan and Bajaj Finance were among the major laggards.
In Asian markets, Japan, South Korea, Hong Kong and China were trading in the positive territory.
The US markets had ended on a mixed note on Friday.
"Markets may log steady gains in early trade on Monday as investors are likely to take cues from the optimism in SGX Nifty and other select Asian peers even as the key US indices closed mixed on Friday," said Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities Ltd.
However, going by the tumultuous ride of the last few weeks, markets may continue to witness a bumpy ride on the back of concerns over further uptick in interest rates and the likelihood of a slowdown in global growth, Mr Tapse added.
The 30-share BSE benchmark had declined by 316.94 points or 0.52 per cent to settle at 61,002.57 on Friday. The Nifty dropped by 91.65 points or 0.51 per cent to end at 17,944.20.
International oil benchmark Brent crude climbed 0.65 per cent to $83.55 per barrel.
Foreign Portfolio Investors (FPIs) offloaded shares worth Rs 624.61 crore on Friday, according to exchange data.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Saturday, February 18, 2023
India's Economy To Grow At 6% In 2023-24: Ex Niti Aayog Vice Chairman
India is likely to clock 6 per cent growth rate next fiscal and the country can persevere with a high growth rate because of several reforms undertaken during the last eight years by the Narendra Modi government, former Niti Aayog Vice Chairman Rajiv Kumar said on Sunday.
Rajiv Kumar further said major risks going forward will emerge from a synchronized downturn in the North American and European economies.
"India has a good opportunity to persevere with a high growth rate because of the reforms undertaken during the last eight years. We will manage to grow at 6 per cent in 2023-24," he told PTI in an interview.
According to Rajiv Kumar, there are several downside risks, especially in the context of an uncertain global situation.
"These will have to be tackled through careful policy measures designed to support our export efforts and at the same time improve the flow of private investment both from domestic sources as well as from foreign sources," he said.
The Reserve Bank has projected India's economic growth at 6.4 per cent for 2023-24, broadly in line with the estimate of the Economic Survey tabled in Parliament.
Gross Domestic Product (GDP) growth is estimated at 7 per cent in 2022-23, according to the first advance estimate of the National Statistical Office (NSO).
The Economic Survey 2022-23 projected a baseline GDP growth of 6.5 per cent in real terms for the next fiscal.
Replying to a question on high inflation, Rajiv Kumar said the Reserve Bank has said that it will ensure that inflation rate is brought under control.
"Also a good winter crop will help in keeping the food prices low," he noted.
The RBI lowered the consumer price inflation (CPI) forecast to 6.5 per cent for the current fiscal from 6.7 per cent.
India's retail inflation in January was 6.52 per cent.
To a question on India's rising trade deficit with China, Kumar suggested that New Delhi should re-engage with Beijing on finding greater market opportunities and access in the Chinese market.
"There are several products which India can export more to China.
"That will require a considered re-engagement," he emphasised.
According to Mr Kumar, it would be feasible for India to restrict imports from China because most imported products are quite essential imports.
Indian and Chinese troops clashed along the Line of Actual Control (LAC) in the Tawang sector of Arunachal Pradesh on December 9, 2022 and the face-off resulted in "minor injuries to a few personnel from both sides.
According to recent data released by the Chinese customs, the trade between India and China touched an all-time high of USD 135.98 billion in 2022, while New Delhi's trade deficit with Beijing crossed the USD 100 billion mark for the first time despite frosty bilateral relations.
Replying to a question on the Adani crisis, Kumar said a robust public-private partnership is essential for developing infrastructure at the rate required.
"I don't think that one such incident with a private family company will hamper that effort.
"... There are a large number of private sector companies who have participated in infrastructure development in the past and will continue to do so going forward," he observed.
Adani group has been under severe pressure since the US short-seller Hindenburg Research on January 24, accused it of accounting fraud and stock manipulation, allegations that the conglomerate has denied as "malicious", "baseless" and a "calculated attack on India".
While listed companies of the group lost over USD 125 billion in market value in three weeks, opposition parties inside and outside Parliament attacked the BJP government for the meteoric rise of the ports-to-energy conglomerate. Stocks of most group firms have recovered in the last couple of days.
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India's Economy To Grow At 6% In 2023-24: Ex Niti Aayog Vice Chairman
India is likely to clock 6 per cent growth rate next fiscal and the country can persevere with a high growth rate because of several reforms undertaken during the last eight years by the Narendra Modi government, former Niti Aayog Vice Chairman Rajiv Kumar said on Sunday.
Rajiv Kumar further said major risks going forward will emerge from a synchronized downturn in the North American and European economies.
"India has a good opportunity to persevere with a high growth rate because of the reforms undertaken during the last eight years. We will manage to grow at 6 per cent in 2023-24," he told PTI in an interview.
According to Rajiv Kumar, there are several downside risks, especially in the context of an uncertain global situation.
"These will have to be tackled through careful policy measures designed to support our export efforts and at the same time improve the flow of private investment both from domestic sources as well as from foreign sources," he said.
The Reserve Bank has projected India's economic growth at 6.4 per cent for 2023-24, broadly in line with the estimate of the Economic Survey tabled in Parliament.
Gross Domestic Product (GDP) growth is estimated at 7 per cent in 2022-23, according to the first advance estimate of the National Statistical Office (NSO).
The Economic Survey 2022-23 projected a baseline GDP growth of 6.5 per cent in real terms for the next fiscal.
Replying to a question on high inflation, Rajiv Kumar said the Reserve Bank has said that it will ensure that inflation rate is brought under control.
"Also a good winter crop will help in keeping the food prices low," he noted.
The RBI lowered the consumer price inflation (CPI) forecast to 6.5 per cent for the current fiscal from 6.7 per cent.
India's retail inflation in January was 6.52 per cent.
To a question on India's rising trade deficit with China, Kumar suggested that New Delhi should re-engage with Beijing on finding greater market opportunities and access in the Chinese market.
"There are several products which India can export more to China.
"That will require a considered re-engagement," he emphasised.
According to Mr Kumar, it would be feasible for India to restrict imports from China because most imported products are quite essential imports.
Indian and Chinese troops clashed along the Line of Actual Control (LAC) in the Tawang sector of Arunachal Pradesh on December 9, 2022 and the face-off resulted in "minor injuries to a few personnel from both sides.
According to recent data released by the Chinese customs, the trade between India and China touched an all-time high of USD 135.98 billion in 2022, while New Delhi's trade deficit with Beijing crossed the USD 100 billion mark for the first time despite frosty bilateral relations.
Replying to a question on the Adani crisis, Kumar said a robust public-private partnership is essential for developing infrastructure at the rate required.
"I don't think that one such incident with a private family company will hamper that effort.
"... There are a large number of private sector companies who have participated in infrastructure development in the past and will continue to do so going forward," he observed.
Adani group has been under severe pressure since the US short-seller Hindenburg Research on January 24, accused it of accounting fraud and stock manipulation, allegations that the conglomerate has denied as "malicious", "baseless" and a "calculated attack on India".
While listed companies of the group lost over USD 125 billion in market value in three weeks, opposition parties inside and outside Parliament attacked the BJP government for the meteoric rise of the ports-to-energy conglomerate. Stocks of most group firms have recovered in the last couple of days.
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Finance Minister Nirmala Sitharaman Chairs 49th GST Council Meet In Delhi
Union Finance Minister Nirmala Sitharaman today chaired the 49th meeting of the Goods and Services Tax (GST) Council, in Vigyan Bhawan, New Delhi.
The Union Finance Minister, Union Minister of State for Finance Pankaj Chaudhary, besides the finance ministers of states and Union Territories (with legislature) and senior officers from the Union government and states, attended the meeting, according to the finance ministry's official handle - @FinMinIndia.
With the meeting being attended by various officials from the Centre and state governments, it is anticipated the council is likely to discuss setting up appellate tribunals and mechanisms to curb tax evasion in pan masala and gutkha business.
The much-awaited report by the Group of Ministers on online gaming and GST appellate tribunal is unlikely to be submitted in the meeting, Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Johri had earlier said.
The 48th Meeting of the GST Council was held on December 17, 2022, through video conference.
At the last meeting, the GST Council had recommended decriminalising three different types of offences, including the tampering of material evidence. They pertain to obstructing or preventing any officers in the discharge of his duties, deliberate tampering of material evidence, and failure to supply information. Also, GST rates on pulses husk and knives were reduced from 5 per cent to nil.
Goods and Services Tax was introduced in the country with effect from July 1, 2017 and states were assured for compensation for loss of any revenue arising on account of the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for a period of five years.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Finance Minister Nirmala Sitharaman Chairs 49th GST Council Meet In Delhi
Union Finance Minister Nirmala Sitharaman today chaired the 49th meeting of the Goods and Services Tax (GST) Council, in Vigyan Bhawan, New Delhi.
The Union Finance Minister, Union Minister of State for Finance Pankaj Chaudhary, besides the finance ministers of states and Union Territories (with legislature) and senior officers from the Union government and states, attended the meeting, according to the finance ministry's official handle - @FinMinIndia.
With the meeting being attended by various officials from the Centre and state governments, it is anticipated the council is likely to discuss setting up appellate tribunals and mechanisms to curb tax evasion in pan masala and gutkha business.
The much-awaited report by the Group of Ministers on online gaming and GST appellate tribunal is unlikely to be submitted in the meeting, Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Johri had earlier said.
The 48th Meeting of the GST Council was held on December 17, 2022, through video conference.
At the last meeting, the GST Council had recommended decriminalising three different types of offences, including the tampering of material evidence. They pertain to obstructing or preventing any officers in the discharge of his duties, deliberate tampering of material evidence, and failure to supply information. Also, GST rates on pulses husk and knives were reduced from 5 per cent to nil.
Goods and Services Tax was introduced in the country with effect from July 1, 2017 and states were assured for compensation for loss of any revenue arising on account of the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for a period of five years.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Friday, February 17, 2023
India's Russian Oil Imports Rise To 1.4 Million Barrels A Day: Report
India's Russian oil imports climbed to a record 1.4 million barrels per day (bpd) in January, up 9.2% from December, with Moscow still the top monthly oil seller to New Delhi, followed by Iraq and Saudi Arabia, data from trade sources showed.
Last month Russian oil accounted for about 27% of the 5 million bpd of crude imported by India, the world's third-biggest oil importer and consumer, the data showed.
India's oil imports typically rise in December and January as state-run refiners avoid maintenance shutdowns in the first quarter to meet their annual production targets fixed by the government.
Refiners in India, which rarely used to buy Russian oil because of costly logistics, have emerged as Russia's key oil client, snapping up discounted crude shunned by Western nations since the invasion of Ukraine last February.
Last month India's imports of Russian Sokol crude oil were the highest so far at 100,900 bpd, as output from the Sakhalin 1 field resumed under a new Russian operator, the data showed.
In January, India's imports of oil from Canada rose to 314,000 bpd as Reliance Industries boosted purchases of long-haul crude, the data showed.
Canada emerged as the fifth-largest supplier to India in January after the United Arab Emirates, the data showed.
India's Iraqi oil imports in January rose to a seven-month high of 983,000 bpd, up 11% from December, the data showed.
During April-January, the first ten months of this fiscal year, Iraq continued to be the largest oil supplier to India, while Russia became the second-biggest supplier, replacing Saudi Arabia which is now in third place, the data showed.
Higher purchases of Russian oil dragged down Indian imports from the Middle East to an all time low of 48% and member nations of Organization of Petroleum Exporting Countries (OPEC) declined to the lowest ever, the data showed.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Thursday, February 16, 2023
Air India Will Require More Than 6,500 Pilots For 470 Planes: Report
Air India will require more than 6,500 pilots to operate 470 aircraft that are to be supplied by Airbus and Boeing in the coming years, according to industry sources.
Seeking to expand fleet as well as operations, the airline has placed orders for acquiring a total of 840 aircraft that includes an option to buy 370 planes. This is one of the largest aircraft order by any airline.
Currently, Air India has around 1,600 pilots to operate its 113 aircraft fleet and in recent times, there have been instances of ultra-long haul flights getting cancelled or delayed due to shortage of crew.
The airline's two subsidiaries -- Air India Express and AirAsia India -- together have around 850 pilots for flying their 54 planes while the joint venture Vistara has more than 600 pilots. The latter has a fleet of 53 aircraft, one of the sources told PTI.
Air India, Air India Express, Vistara and AirAsia India together have little over 3,000 pilots to operate the combined fleet of 220 aircraft.
The latest Airbus firm order comprises 210 A320/321 Neo/XLR and 40 A350-900/1000. The Boeing firm order comprises 190 737-Max, 20 787s and 10 777s.
"Air India is taking these 40 A350 majorly for its ultra long-haul routes or flights which lasts over 16 hours. The airline will require 30 pilots -- 15 commanders and 15 first officers -- per aircraft, which means some 1,200 pilots for A350s alone," the source in the know said.
According to the source, 26 pilots are required for one Boeing 777. If the airline inducts 10 such planes, it will require 260 pilots while 20 Boeing 787 will require some 400 pilots considering that each such aircraft needs 20 pilots -- 10 commanders and 10 first officers.
Taken together, the induction of 30 wide-body Boeing planes will require a total of 660 pilots, the sources said.
On an average, each narrow-body plane, whether it is Airbus A320 family or Boeing 737 Max, requires 12 pilots, implying that 400 such planes in the fleet will require not less than 4,800 pilots for their operations.
On Thursday, Air India Chief Commercial Officer Nipun Agarwal in a Linkedin post said "the order comprises 470 firm aircraft, 370 options and purchase rights to be procured from Airbus and Boeing over the next decade".
According to Air India's former Commercial Director Pankaj Shrivastava, enough opportunities have to be created for the Commercial Pilots Licence (CPL) holders to get them type rated.
Type ratings is a particular training that makes a pilot qualify to operate a particular type of aircraft.
"Air India would definitely have some plan in place. They would not be buying these planes to put them on ground," he said.
These aircraft are not going to be inducted tomorrow but over a period of time. During that period, Shrivastava said that he was confident that Boeing and Airbus along with Air India will be able to create a large enough pool of pilots by having in place the required number of flight simulators and pilots training.
Air India earlier this year announced its plans to set up a training academy, which is a new initiative for the Tata Group.
The academy, being headed by AirAsia India former CEO Sunil Bhaskaran, will rival the biggest and the best anywhere in the world, Air India Managing Director and Chief Executive Officer Campbell Wilson had said.
"Over the coming years, the ambitious new Air India and aviation industry generally will require thousands of home-grown pilots, engineers, cabin crew, airport managers and other function specialists. As India's flagship airline, we have the need and duty to develop this talent," he had said earlier. PTI IAS RAM ANU ANU
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Air India Will Require More Than 6,500 Pilots For 470 Planes: Report
Air India will require more than 6,500 pilots to operate 470 aircraft that are to be supplied by Airbus and Boeing in the coming years, according to industry sources.
Seeking to expand fleet as well as operations, the airline has placed orders for acquiring a total of 840 aircraft that includes an option to buy 370 planes. This is one of the largest aircraft order by any airline.
Currently, Air India has around 1,600 pilots to operate its 113 aircraft fleet and in recent times, there have been instances of ultra-long haul flights getting cancelled or delayed due to shortage of crew.
The airline's two subsidiaries -- Air India Express and AirAsia India -- together have around 850 pilots for flying their 54 planes while the joint venture Vistara has more than 600 pilots. The latter has a fleet of 53 aircraft, one of the sources told PTI.
Air India, Air India Express, Vistara and AirAsia India together have little over 3,000 pilots to operate the combined fleet of 220 aircraft.
The latest Airbus firm order comprises 210 A320/321 Neo/XLR and 40 A350-900/1000. The Boeing firm order comprises 190 737-Max, 20 787s and 10 777s.
"Air India is taking these 40 A350 majorly for its ultra long-haul routes or flights which lasts over 16 hours. The airline will require 30 pilots -- 15 commanders and 15 first officers -- per aircraft, which means some 1,200 pilots for A350s alone," the source in the know said.
According to the source, 26 pilots are required for one Boeing 777. If the airline inducts 10 such planes, it will require 260 pilots while 20 Boeing 787 will require some 400 pilots considering that each such aircraft needs 20 pilots -- 10 commanders and 10 first officers.
Taken together, the induction of 30 wide-body Boeing planes will require a total of 660 pilots, the sources said.
On an average, each narrow-body plane, whether it is Airbus A320 family or Boeing 737 Max, requires 12 pilots, implying that 400 such planes in the fleet will require not less than 4,800 pilots for their operations.
On Thursday, Air India Chief Commercial Officer Nipun Agarwal in a Linkedin post said "the order comprises 470 firm aircraft, 370 options and purchase rights to be procured from Airbus and Boeing over the next decade".
According to Air India's former Commercial Director Pankaj Shrivastava, enough opportunities have to be created for the Commercial Pilots Licence (CPL) holders to get them type rated.
Type ratings is a particular training that makes a pilot qualify to operate a particular type of aircraft.
"Air India would definitely have some plan in place. They would not be buying these planes to put them on ground," he said.
These aircraft are not going to be inducted tomorrow but over a period of time. During that period, Shrivastava said that he was confident that Boeing and Airbus along with Air India will be able to create a large enough pool of pilots by having in place the required number of flight simulators and pilots training.
Air India earlier this year announced its plans to set up a training academy, which is a new initiative for the Tata Group.
The academy, being headed by AirAsia India former CEO Sunil Bhaskaran, will rival the biggest and the best anywhere in the world, Air India Managing Director and Chief Executive Officer Campbell Wilson had said.
"Over the coming years, the ambitious new Air India and aviation industry generally will require thousands of home-grown pilots, engineers, cabin crew, airport managers and other function specialists. As India's flagship airline, we have the need and duty to develop this talent," he had said earlier. PTI IAS RAM ANU ANU
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Wednesday, February 15, 2023
Tuesday, February 14, 2023
Airbnb Posts 1st Profitable Year As Travel Rebounds, Share Price Jumps 9%
Airbnb on Tuesday reported its first annual profit, with revenue surging in the final three months of 2022 as travel bookings rebounded. The home-rental platform said it made a profit of $319 million in the final quarter of last year on revenue of nearly $2 billion.
Airbnb finished 2022 with a net income of $1.9 billion compared with a loss of $352 million the prior year, the San Francisco-based company reported.
"We are excited to see the continued strong demand in (the first quarter of this year)," Airbnb said in a letter to investors.
"We're particularly encouraged by European guests booking their summer travel earlier this year; the market share gains we are seeing in Latin America, as well as the continued recovery within Asia Pacific."
Airbnb shares were up more than nine percent in after-market trade after the earnings figures came out.
People are getting back to crossing international borders and visiting cities in forms of travel that were "Airbnb's bread and butter before the pandemic," company chief executive Brian Chesky said on an earnings call.
Airbnb in mid-2020 slashed one-fourth of its workforce -- some 1,900 people -- as the coronavirus pandemic crushed the travel industry.
Chesky said in a blog post at the time that "global travel came to a standstill" as the Covid-19 crisis unfolded.
Airbnb ended last year with 6.6 million active listings of lodgings for rent, an all-time high, as homeowners seek to make extra money in tough economic conditions, according to the letter to shareholders.
Late last year, Airbnb made it easier for people to offer their homes for rent on its platform.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Reddit Aims For IPO (Public Issue) Later This Year: Report
Social media platform Reddit Inc is looking to go public later this year, likely in the second half, the Information reported on Tuesday, citing people familiar with the matter.
Reddit and other firms including grocery delivery firm Instacart are keeping their initial public offering paperwork up to date, in preparation for their debuts when market conditions improve, the report added.
Reddit did not immediately respond to Reuters' request for comment.
The IPO market had come to a virtual standstill last year with several high-profile listings on ice as a selloff in high-growth tech stocks and volatility in the capital markets soured investor sentiment.
In December 2021, Reddit had confidentially filed for an initial public offering with the US securities regulator, after the company's message boards became the go-to destination for day traders during the meme stock frenzy.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Monday, February 13, 2023
Sunday, February 12, 2023
Tata Steel To Merge 7 Subsidiaries By FY24, Says CEO TV Narendran
The merger of 7 subsidiary companies with Tata Steel is expected to be completed in 2023-24 fiscal year, its CEO and managing director T V Narendran said.
In September 2022, Tata Steel board had approved a proposal to merge six of its subsidiaries into itself for greater synergies, higher efficiency and reduce costs.
"We had already announced (merger of) 6 companies earlier. (Merger of) one more Angul Energy we announced recently," he told PTI in reply to a question on the timeline for the merger.
However, the completion of the merger depends on the regulatory processes including NCLT clearances, post which the process is expected to be completed in the next financial year, the CEO said.
"We are dependent on the speed at which we can go through our regulatory requirements," he added.
Besides Angul Energy, the six subsidiaries to be merged with Tata Steel are Tata Steel Long Products (TSPL), The Tinplate Company of India, Tata Metaliks, TRF, Indian Steel & Wire Products, and Tata Steel Mining and S&T Mining Company.
When asked about plans of merging recently acquired NINL into Tata Steel, the CEO said there are no such immediate plans.
"As per the terms of purchase with the government, the company is committed to run the new asset as a separate legal entity for three years...after that we can decide what is best for NINL," he said.
Narendran also said Tata Steel will first work to complete the merger of these 7 entities before it plans for merger of more subsidiary companies into self.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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Tata Steel To Merge 7 Subsidiaries By FY24, Says CEO TV Narendran
The merger of 7 subsidiary companies with Tata Steel is expected to be completed in 2023-24 fiscal year, its CEO and managing director T V Narendran said.
In September 2022, Tata Steel board had approved a proposal to merge six of its subsidiaries into itself for greater synergies, higher efficiency and reduce costs.
"We had already announced (merger of) 6 companies earlier. (Merger of) one more Angul Energy we announced recently," he told PTI in reply to a question on the timeline for the merger.
However, the completion of the merger depends on the regulatory processes including NCLT clearances, post which the process is expected to be completed in the next financial year, the CEO said.
"We are dependent on the speed at which we can go through our regulatory requirements," he added.
Besides Angul Energy, the six subsidiaries to be merged with Tata Steel are Tata Steel Long Products (TSPL), The Tinplate Company of India, Tata Metaliks, TRF, Indian Steel & Wire Products, and Tata Steel Mining and S&T Mining Company.
When asked about plans of merging recently acquired NINL into Tata Steel, the CEO said there are no such immediate plans.
"As per the terms of purchase with the government, the company is committed to run the new asset as a separate legal entity for three years...after that we can decide what is best for NINL," he said.
Narendran also said Tata Steel will first work to complete the merger of these 7 entities before it plans for merger of more subsidiary companies into self.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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Saturday, February 11, 2023
New Tax Regime To Benefit Middle Class, Says Finance Minister
Finance Minister Nirmala Sitharaman today said the new tax regime will benefit the middle class, as it will leave more money in their hands.
Speaking to reporters after the customary post-Budget address to the central board of RBI, she said it is not necessary to induce individuals to invest through government schemes but give him an opportunity to make a personal decision regarding investments.
Under the revamped concessional tax regime, which will be effective from the next fiscal, no tax would be levied on income up to Rs 3 lakh. Income between Rs 3-6 lakh would be taxed at 5 per cent; Rs 6-9 lakh at 10 per cent, Rs 9-12 lakh at 15 per cent, Rs 12-15 lakh at 20 per cent and income of Rs 15 lakh and above will be taxed at 30 per cent.
However, no tax would be levied on annual income of up to Rs 7 lakh.
Answering a question on the Adani Group row, the minister said, "Indian regulators are very, very experienced and they are experts in their domain. The regulators are seized of the matter and they are on their toes as always not just now." On regulating cypto assets, she said India is in discussion with G20 nations for designing a common framework.
Responding to a query on price rise, RBI Governor Shaktikanta Das said retail inflation is expected to be around 5.3 per cent in 2023-24 and may fall further if crude prices remain benign.
Mr Das said RBI has assumed USD 95 per barrel rate of crude for inflation projection for the next fiscal.
On pricing of loans, Mr Das said market competition will decide rates on lending and deposit sides as it has been a deregulated segment.
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New Tax Regime To Benefit Middle Class, Says Finance Minister
Finance Minister Nirmala Sitharaman today said the new tax regime will benefit the middle class, as it will leave more money in their hands.
Speaking to reporters after the customary post-Budget address to the central board of RBI, she said it is not necessary to induce individuals to invest through government schemes but give him an opportunity to make a personal decision regarding investments.
Under the revamped concessional tax regime, which will be effective from the next fiscal, no tax would be levied on income up to Rs 3 lakh. Income between Rs 3-6 lakh would be taxed at 5 per cent; Rs 6-9 lakh at 10 per cent, Rs 9-12 lakh at 15 per cent, Rs 12-15 lakh at 20 per cent and income of Rs 15 lakh and above will be taxed at 30 per cent.
However, no tax would be levied on annual income of up to Rs 7 lakh.
Answering a question on the Adani Group row, the minister said, "Indian regulators are very, very experienced and they are experts in their domain. The regulators are seized of the matter and they are on their toes as always not just now." On regulating cypto assets, she said India is in discussion with G20 nations for designing a common framework.
Responding to a query on price rise, RBI Governor Shaktikanta Das said retail inflation is expected to be around 5.3 per cent in 2023-24 and may fall further if crude prices remain benign.
Mr Das said RBI has assumed USD 95 per barrel rate of crude for inflation projection for the next fiscal.
On pricing of loans, Mr Das said market competition will decide rates on lending and deposit sides as it has been a deregulated segment.
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