- Friday, February 28, 2025
By: Shubham Ghosh
Here are news in brief related to Indian economy and business for June 22, 2023:
Reserve Bank of India (RBI) governor Shaktikanta Das on Thursday said that bringing inflation in India back to the desired range is only half the battle and efforts should continue to maintain inflation around four per cent. At the recent monetary policy meeting, the RBI unanimously decided to keep the repo rate unchanged at 6.5 per cent. The central bank’s decision may have been influenced by the consistent decline in inflation, which is currently at an 18-month low. Das stated that the RBI will remain flexible in managing liquidity and that the global economy is showing sustained growth, although uncertainties and geopolitical conflicts persist. He also highlighted the improved external sector outlook and the resilient balance sheets of banks and corporations in India. India’s retail inflation dropped to 4.25 per cent in May, reaching a two-year low, prompting the RBI to revise its inflation projection for 2023-24 to 5.1 per cent.
Fitch Ratings has revised India’s growth forecast for 2023-24 to 6.3 per cent, up from its previous estimate of six per cent in March, positioning the country among the fastest-growing major economies globally. The rating agency attributed the upgrade to a stronger performance in the January-March quarter and ongoing momentum indicated by rising PMI indices, increased car sales, and higher power consumption. Fitch also highlighted the positive impact of high bank credit growth, infrastructure spending, and the government’s emphasis on capital expenditure. While the global trade slowdown will have some impact, Fitch expects the Reserve Bank of India to pause its rate cycle and potentially cut rates early next year. Inflation in India has eased, and the RBI has maintained the repo rate at 6.5 per cent in recent meetings. Retail inflation in India dropped to 4.25 per cent in May, a two-year low.
The Directorate General of Civil Aviation (DGCA) has suspended the license of an Air India pilot for one year and the license of the first officer for one month following an incident where an unauthorised person was allowed in the cockpit of a Chandigarh-Leh flight. The DGCA ordered the grounding of both pilots pending investigation, as per safety norms that prohibit unauthorized individuals from entering the cockpit. The pilot-in-command’s license was suspended for misusing authority and allowing the violation of regulations, while the first officer’s license was suspended for not taking assertive action to prevent and report the violation. Previously, Air India was fined for a similar incident, and AirAsia India also faced penalties for violating pilot training norms.
Applied Materials, Inc. has announced its plans to construct a collaborative engineering center in Bengaluru, India. The center will facilitate cooperation among Applied engineers, global and domestic suppliers, and research institutions to accelerate the development of semiconductor manufacturing equipment technologies. Additionally, the center aims to enhance the training and growth of future semiconductor industry professionals while expanding India’s role in the global chip ecosystem. The initiative aligns with the Indian government’s efforts to promote electronics manufacturing and establish India as a favorable investment destination for the global semiconductor industry. The engineering center will foster collaboration among engineers, academia, and suppliers to drive innovative breakthroughs.
Sridharan Rangarajan has been appointed as the managing director of Carborundum Universal Ltd (CUMI), effective from August 3. Currently serving as the director of finance and strategy, he will succeed N Ananthaseshan, who will retire and step down as a director on August 2. Sridharan has been associated with CUMI since June 2011, initially as the chief financial officer and later as the president and Group CFO of the Murugappa Group which owns CUMI. He holds key positions on the boards of various companies within the group. MM Murugappan, chairman of CUMI, expressed confidence in Sridharan’s leadership during the company’s expansion plans.
Punit Goenka, the CEO of ZEE Entertainment, said in an interview with the Economic Times that the merger between ZEE and Sony’s Indian unit will proceed regardless of his position as CEO of the merged company. The merger, which was announced in 2021, aims to create a $10 billion (£7.8 billion) TV enterprise with Goenka serving as the managing director and CEO. However, regulatory approvals are still pending. Goenka emphasised that if legal restrictions prevent him from holding those positions, the failure of the merger would have a negative impact on the ecosystem and the entire sector. Reuters’s requests for comment from Zee remained unanswered at the time.
(With inputs from agencies)
