- Wednesday, February 26, 2025
By: Shubham Ghosh
HERE are news in brief on Indian economy and business for Tuesday, October 31, 2023:
The CEOs of Air India and Akasa Air engaged in a private exchange of accusations concerning pilot recruitment with Akasa alleged rule violations by Air India, prompting a response that such collusion might breach competition laws. This confrontation, disclosed in a September 21 letter obtained by Reuters, highlights the intensifying competition in India’s aviation sector. A surge in air travel post-pandemic and a surge in aircraft orders have resulted in a pilot shortage. These unusual verbal and written disputes between the airline leaders were detailed in a letter from Campbell Wilson of Air India to Vinay Dube of Akasa, a low-cost airline.
Tata Motors saw its shares climb up to two per cent in early trading on Tuesday, but later saw some gains pared. This came a day after the company was granted Rs 7.66 billion (£75.7 million) in compensation for its investment in the Singur plant in the eastern state of West Bengal. A three-member arbitral tribunal ruled that Tata Motors had the right to recover this amount from the West Bengal Industrial Development Corporation due to the losses incurred in connection with the auto facility, said an exchange filing. The Singur plant, now inactive, was initially established for the production of Tata Nano cars with an investment of Rs 10 billion (£98.8 million). Tata Motors had to relocate the manufacturing plant from Singur to Sanand in the western state of Gujarat in 2008 due to a land dispute, as reported by local media.
Record-high gold prices may suppress demand in India during the peak festival season, potentially resulting in the lowest purchase volumes in three years, according to the World Gold Council (WGC). India, the world’s second-largest gold consumer, reducing purchases could impact global prices. Declining imports of gold may also help narrow India’s trade deficit and strengthen the rupee. Higher prices in the December quarter, the peak sales season, could discourage purchases, noted Somasundaram PR, regional CEO of WGC’s Indian operations. Typically, gold demand in India surges towards year-end, aligning with the wedding season and key festivals such as Dusherra and Diwali, which are considered auspicious for buying bullion.
The combined Index of Eight Core Industries increased by 8.1 per cent (provisional) in September 2023 as compared to the Index of September 2022, said an official statement from the country’s ministry of commerce and industry on Tuesday. The production of coal, steel, electricity, natural gas, refinery products, cement and fertilizers recorded positive growth in September 2023 over the corresponding month of last year. The ICI measures combined and individual performance of production of eight core industries. The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production, added the statement.
Brazil has offered to share its ethanol production technology with India as part of efforts to resolve a sugar-related dispute between the two countries at the World Trade Organisation, an official said. The South American nation in its proposal has stated that the ethanol production technology would help India to use surplus sugar in making ethanol. The offer can help India utilise its excess sugar output and ease competition for Brazil in the international sugar market. Brazil is the largest producer of sugarcane and ethanol in the world. It is a leader in the technology used for ethanol production and is also the largest exporter of sugar in the world. India is the world’s second-largest producer. The proposal could benefit India as it aims to gradually increase the percentage of blending of ethanol in petroleum auto fuels and reduce dependence on imported crude oil.
(With agencies inputs)
