- Friday, February 28, 2025
By: Shubham Ghosh
Here are news in brief related to Indian economy and business for Thursday, June 15, 2023:
In May, India’s exports continued their decline for the fourth consecutive month, dropping by 10.3 per cent year-on-year to $34.98 billion. Trade deficit of $22.12 billion, the highest in five months. Sectors such as petroleum products, gems and jewellery, engineering goods, and textiles and chemicals experienced negative growth. Imports also decreased by 6.6 per cent for the sixth month in a row, totaling $57.1 billion. Despite the challenges, commerce secretary Sunil Barthwal expressed hope for an improvement in demand in developed countries. The government is working on a trade strategy to promote exports, focusing on key countries and industries, he said. Meanwhile, sectors like smartphones, electronic goods, and pharmaceuticals witnessed positive export growth. Declines in imports were primarily driven by lower commodity prices, including petroleum, vegetable oil, coal, coke, and briquette.
India’s ministry of corporate Affairs has initiated an investigation into the association of Hero MotoCorp, India’s largest manufacturer of motorcycles, with a third-party vendor following allegations of fund diversion, Reuters reported citing government sources. The investigation, ordered in the “public interest,” aims to examine the ownership structure of Hero MotoCorp and determine its control over the third-party vendor, they added. Hero MotoCorp said that it was yet to receive communication from the government regarding the matter. The internal government order follows a preliminary inquiry conducted by India’s Registrar of Companies. The ministry now possesses the authority to interview company officials and request documents for a thorough probe. Last year, Hero MotoCorp was also subjected to scrutiny by India’s income-tax authorities.
Reliance Industries, the Indian conglomerate led by Mukesh Ambani, is reportedly in talks with foreign-currency loan lenders to raise up to $2 billion for the expansion of its oil-to-telecom business, Bloomberg News reported citing sources. The company plans to secure the loan through India’s external commercial borrowing route, the sources added. The loan is expected to have a maturity period of three to five years and will also be used to refinance an existing loan set to mature in September, the report said. Bank of America, Citigroup, and Standard Chartered are among the lenders involved in the discussions. Reliance Industries and the banks have not yet responded to requests for comment. Last year, Reliance announced plans to invest Rs 750 billion over five years to expand its oil-to-chemical business. Additionally, the conglomerate has been expanding its 5G services, strengthening its streaming platform JioCinema, and investing in green energy projects.
Perth-based company Austin Engineering has secured purchase orders for four haul truck trays from a major Indian iron-ore producer, marking its entry into the Indian market, The Australia Today reported. Austin specialises in designing and manufacturing customised mining equipment, including dump truck bodies and buckets. CEO David Singleton expressed excitement about expanding into India, citing the company’s experience in the Australian iron-ore sector. The orders, developed in collaboration with the customer over nine months, feature Austin’s ULTIMA trays, which offer improved performance without the need for a steel wear liner, the company said. The deal potentially opens up a new market for Australian heavy machinery manufacturers.
Indian commerce and industry minister Piyush Goyal has emphasised the importance of effectively utilising the PM GatiShakti initiative to extend its benefits beyond just the infrastructure sector. During a meeting chaired by him, the progress of PM GatiShakti was reviewed with the department for promotion of industry and internal trade and eight other concerned ministries in New Delhi. The minister suggested that cooperatives and start-ups could support the agriculture sector by establishing common facilities on agricultural lands using the integrated framework of PM GatiShakti and data from the National Master Plan (NMP). The plan includes onboarding five new ministries to enhance socioeconomic development in the country and promote the usage of NMP for social sector planning. PM GatiShakti was launched in October 2021 with the aim of breaking departmental silos in project implementation and considering infrastructure as a growth engine.
According to Ashish Saraf, vice president and country head at Thales India, Tata Group’s Air India’s order of 470 planes from Boeing and Airbus will have a positive impact on job opportunities in India. Saraf highlighted that this presents an advantage for Thales India to offer their technologies on board the aircraft and engage in servicing and maintenance activities. He emphasised the creation of direct and indirect jobs through such initiatives. Saraf sees India as a shining star in terms of economic growth and technological adoption. Thales India aims to establish MRO (maintenance, repair and overhaul) stations in India and deepen partnerships with Indian companies for aerospace, defense and civilian programmes, Saraf added.
(With PTI, ANI, Reuters inputs)
