The Govt or Maharashtra has issued a notification declaring 29th June 2023 as a Public Holiday for Bakri Id. The holiday for 28th June 2023 has been cancelled.
Copy of Notification is attached.
The Govt or Maharashtra has issued a notification declaring 29th June 2023 as a Public Holiday for Bakri Id. The holiday for 28th June 2023 has been cancelled.
Copy of Notification is attached.
Continuing its downward trend, the annual rate of inflation based on all India Wholesale Price Index (WPI) numbers fell – 3.48% (Provisional) for the month of May, 2023 (over May, 2022) against – 0.92% recorded in April, 2023. The decline in the rate of inflation in May, 2023 is primarily contributed by fall in prices of mineral oils, basic metals, food products, textiles, non-food articles, crude petroleum & natural gas, and chemical & chemical products. The month over month change in WPI for the month of May, 2023 stood at – 0.86 % as compared to April, 2023.
The index for primary articles declined by 1.13% to 175.3 (provisional) in May, 2023 from 177.3 (provisional) for the month of April, 2023. Prices of Minerals (0.90%) increased in May, 2023 as compared to April, 2023. Prices of Food Articles (-0.22%), Non-food Articles (-1.87%) and Crude Petroleum & Natural Gas (-7.81%) declined in May, 2023 as compared to April, 2023.
Fuel & Power declined by 2.62% to 148.6 (provisional) in May, 2023 from 152.6 (provisional) for the month of April, 2023. Prices of Coal (-0.67%), Mineral Oils (-2.01%) and Electricity (-5.46%) declined in May, 2023 as compared to April, 2023.
Manufactured Products fell by 0.35% to 140.7 (provisional) in May, 2023 from 141.2 (provisional) for the month of April, 2023. Out of the 22 NIC two-digit groups for Manufactured products, 7 groups have witnessed an increase in prices, whereas 11 groups have witnessed a decrease in prices.
The groups that have recorded major increases in prices are electrical equipment; pharmaceuticals, medicinal, chemical and botanical products; tobacco products; wood and products of wood & cork; leather and related products; beverages, etc. Some of the groups that have witnessed a decrease in prices are basic metals; food products; textiles; chemical and chemical products, other manufacturing etc. in May, 2023 as compared to April, 2023.
The Production Linked Incentive (PLI) Schemes have led to a significant increase in production, employment generation, economic growth and exports in the country. Rajesh Kumar Singh, Secretary, DPIIT, said that PLI Schemes have led to a significant increase of 76% in FDI in the manufacturing sector in FY 2021-22 (USD 21.34 billion), compared to the previous FY 2020-21 (USD 12.09 billion).
As per the Government, sectors for which PLI schemes exist and have seen an increase in FDI inflows from FY 2021-22 to FY 2022-23 are Drugs and Pharmaceuticals (+46%), Food Processing Industries (+26%) and Medical Appliances (+91%). To date, 733 applications have been approved in 14 Sectors with an expected investment of Rs.3.65 Lakh Crore. 176 MSMEs are among the PLI beneficiaries in sectors such as Bulk Drugs, Medical Devices, Pharma, Telecom, White Goods, Food Processing, and Textiles & Drones.
Actual investment of Rs. 62,500 Crore has been realised till March 2023, resulting in incremental production/ sales over Rs. 6.75 Lakh Crore and employment generation of around 3,25,000. Exports boosted by Rs 2.56 lakh crore till FY 2022-23.
Incentive amount of around Rs. 2,900 Crore disbursed in FY 2022-23 under PLI Schemes for 8 sectors – Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom & Networking Products, Food Processing and Drones & Drone Components.
Import substitution of 60% has been achieved in the Telecom sector and India has become almost self–reliant in Antennae, GPON (Gigabit Passive Optical Network) & CPE (Customer Premises Equipment). Drones sector has seen a 7 times jump in turnover due to the PLI Scheme which consists of all MSME Startups.
Under the PLI Scheme for Food Processing, the sourcing of raw materials from India has seen a significant increase which has positively impacted the income of Indian farmers and MSMEs.
The Reserve Bank of India has issued various instructions to regulated entities (REs) regarding compromise settlements in respect of stressed accounts from time to time, including the Prudential Framework for Resolution of Stressed Assets dated June 7, 2019 “Prudential Framework”, which recognises compromise settlements as a valid resolution plan.
As per the RBI, the provisions of this framework shall be applicable to all REs to which this circular is addressed and shall be without prejudice to the provisions of the Prudential Framework, or any other guidelines applicable to the REs on resolution of stressed assets.
REs shall lay down Board-approved policies for undertaking compromise settlements with the borrowers as well as for technical write-offs. The Board approved policy shall comprehensively lay down the process to be followed for all compromise settlements and technical write-offs, with specific guidance on the necessary conditions precedent such as minimum ageing, deterioration in collateral value etc. The policies shall also put in place a graded framework for examination of staff accountability in such cases with reasonable thresholds and timelines as may be decided by the Board.
The World Bank has revised its global growth forecast for 2023, stating that the U.S. and other major economies have displayed greater resilience than anticipated. Nevertheless, the Bank has lowered its growth projection for India in the fiscal year 2023/24 (April-March) to 6.3%, marking a 0.3 percentage point downward revision compared to January.
According to the World Bank’s latest Global Economics Prospects report, India’s gross domestic product (GDP) growth forecast for FY24 has been reduced to 6.3%, down from the previous estimate of 6.6% growth. The report attributes this slowdown to factors such as high inflation and increasing borrowing costs limiting private consumption, as well as fiscal consolidation impacting government consumption.
Despite this adjustment in India’s projections for FY24, global brokerages like JP Morgan, Goldman Sachs, and Citi Research have upgraded their forecasts for India’s GDP growth, following the better-than-expected economic growth of 6.1% in the March quarter.
Nonetheless, the World Bank still expects India to maintain its position as the fastest-growing major economy in the current financial year.
India’s gross Good & Services Tax (GST) revenue collected in the month of May, 2023 cross Rs 1.57 lakh crore, of which CGST is ₹28,411 crore, SGST is ₹35,828 crore, IGST is ₹81,363 crore (including ₹41,772 crore collected on import of goods) and cess is ₹11,489 crore (including ₹1,057 crore collected on import of goods).
The government settled ₹35,369 crore to CGST and ₹29,769 crore to SGST from IGST. The total revenue of Centre and the States in the month of May 2023 after regular settlement is ₹63,780 crore for CGST and ₹65,597 crore for the SGST.
As per the Government, the revenue for May 2023 are 12% higher than the GST revenues in the same month last year. During the month, revenue from import of goods was 12% higher and the revenues from domestic transactions (including import of services) are 11% higher than the revenues from these sources during the same month last year.
Mizoram recorded a revenue growth of 52%, followed closely by Arunachal Pradesh at 47%, Delhi at 25%, and Meghalaya and Madhya Pradesh, both experiencing a 23% increase in revenues. Odisha, Kerala, and Andhra Pradesh witnessed an 11% growth, while Karnataka saw a 12% rise, and Tamil Nadu and Telangana observed a 13% increase in revenues.
In a bid to facilitate wider execution of offshore wind energy initiatives, to promote the expansion of Green Hydrogen/Green Ammonia Projects and to encourage the offtake of renewable energy from Energy Storage System Projects, the Government plans to grant a waiver of Inter-State Transmission Charges (ISTS) charges to off-shore wind projects and extend the waiver to green hydrogen/green ammonia.
As per a notification issued by the Ministry of Power, a complete waiver of ISTS charges has been given for off-shore wind power projects commissioned on or before 31st December, 2032 for a period of 25 years from the date of commissioning of the Project. The off-shore projects commissioned from 1st January, 2033 would be given graded ISTS charges. Earlier, all wind energy projects were provided waiver upto 30.06.2025.
The government has also granted complete waiver of ISTS charges for a period of 25 years from the date of commissioning of the project, for Green Hydrogen/Green Ammonia production units, using Renewable Energy (commissioned after 8th March 2019), Pumped Storage System or Battery Storage Systems or any hybrid combination of these technologies.
To promote development of Pump Storage Plants (PSP), the criteria for availing the complete waiver of ISTS charges for PSP projects has been linked to the date of award of the project rather than commissioning of the project. This will be applicable in cases where construction work is awarded on or before 30th June, 2025.
Moody’s Investors Service has reported that India will be the fastest-growing G-20 economy over the next few years, with expansion of manufacturing and infrastructure sectors. However, reform and policy barriers could hamper investment. In a research report, the US-based agency has also warned that bureaucracy could slow processes in obtaining approvals.
India is now the world’s most populous country and the fifth-largest economy globally, with its GDP scaling $3.5 trillion in 2022. The government’s infrastructure spending will bolster steel and cement sectors, while India’s net-zero commitment will drive investment in renewable energy. Larger production capacity will raise rated companies’ competitiveness in these sectors, a credit positive if they manage execution risks with financial discipline.
The report also states that while demand across the manufacturing and infrastructure sectors will grow 3-12% annually for the rest of the decade, India’s capacity will still rank well behind China’s by 2030. Leading companies will invest around $150 billion in additional capacity, requiring access to multiple funding sources, but most rated companies can tolerate a rise in debt.
Building on the success of the Production Linked Incentive scheme (PLI) for mobile phones, the Union Cabinet, chaired by the Prime Minister Narendra Modi, approved the Production Linked Incentive Scheme 2.0 for IT Hardware with a budgetary outlay Rs. 17,000 crore, more than double the budget for the scheme first cleared in 2021.
The new scheme has a predetermined duration of six years, with the government anticipating an investment exceeding Rs 2,430 crore as a component of it. The projected increase in production value could reach Rs 3.35 lakh crore, leading to the potential creation of 75,000 direct jobs. When factoring in indirect employment opportunities, the total number of jobs could reach 2 lakh.
Electronics manufacturing in India has witnessed consistent growth with 17% CAGR in the last eight years. This year it crossed a major benchmark in production – 105 billion USD (about Rs 9 lakh crore). India has become the world’s second largest manufacturer of mobile phones. Exports of mobile phones crossed a major milestone of 11 billion USD this year (about Rs 90 thousand crore).
Salient features:
According to data released by the Ministry of Commerce, India’s overall exports (merchandise and services combined) in April 2023 is estimated to be USD 65.02 billion, exhibiting a positive growth of 2.00 per cent over April 2022. Overall imports in April 2023 is estimated to be USD 66.40 billion, a negative growth of (-) 7.92 per cent over April 2022.
MERCHANDISE TRADE
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