- Friday, February 28, 2025
By: Shubham Ghosh
Here are news in brief related to Indian economy and business for Monday, June 12, 2023:
The Supreme Audit Institutions 20 (SAI20) meet in Goa is focusing on the topics of blue economy and artificial intelligence (AI), with India aiming to advance the recommendations and outcomes of the member countries’ Comptroller and Auditor Generals (CAGs), according to G20 Sherpa Amitabh Kant. He emphasised the significance of the blue economy, stating that oceans are vital for combating climate change, providing livelihoods, and contributing to the economy. Regarding AI, he highlighted the need for pro-innovation discussions that prioritise ethical dimensions, privacy, and progress for humanity. The ongoing SAI20 Summit, led by Girish Chandra Murmu, the CAG of India, seeks to address the audit of the blue economy and responsible AI for good governance, transparency, and accountability.
In May, India’s retail inflation reached a two-year low, further easing to 4.25 per cent. It was 4.7 per cent in April and 5.7 per cent the month before. The inflation index for rural and urban areas stood at 4.17 per cent and 4.27 per cent, respectively. The sub-index for oils and fats, fruits declined in May, data released by the ministry of statistics and programme implementation on Monday revealed. The Reserve Bank of India’s (RBI) consistent tightening of monetary policy since the middle of last year played a role in the significant decline in inflation. The RBI had raised the repo rate by 250 basis points to combat inflation, but in its recent monetary policy meeting, it decided to keep the rate unchanged at 6.5 per cent. Wholesale inflation, on the other hand, turned negative in April at -0.92 per cent. The wholesale price index-based inflation has been declining, with the upcoming release of May’s data awaited.
India’s outsourcing industry, a major employer and a popular career choice for engineering students, is experiencing an unprecedented slowdown. Global uncertainty and reduced demand are leading to hiring cutbacks by outsourcing giants, potentially impacting the economy. The IT sector accounts for about eight per cent of India’s GDP versus less than one per cent about 30 years back, according to Rishad Premji, chairman of Wipro, one of India’s IT giants, Reuters reported. However, labour-saving technologies and short-term negative demand shocks are dampening IT hiring, Rohit Azad, an economics professor at New Delhi’s Jawaharlal Nehru University, the news outlet reported. While other sectors like accounting are experiencing some optimism, they are dwarfed by the size of the IT industry.
The Narendra Modi government and the Asian Development Bank (ADB) have signed a $130-million (£104 million) loan agreement to enhance agricultural productivity, expand access to irrigation and promote horticulture agribusinesses in the northern state of Himachal Pradesh. The Himachal Pradesh Subtropical Horticulture, Irrigation, and Value Addition Project aims to increase the income and climate resilience of approximately 15,000 farm households in seven districts of the state that include Bilaspur, Hamirpur, Kangra, Mandi, Sirmour, Solan and Una. The project will focus on improving on-farm irrigation and water management by rehabilitating or constructing new irrigation systems, covering an estimated 6,000 hectares of farmland. This initiative will address challenges such as inadequate irrigation facilities and crop damage caused by wildlife and stray animals, which have led to reduced farming activities in the region.
The family of IndiGo’s co-founder Rakesh Gangwal was planning to sell between five and eight per cent stake in the Indian airline’s parent InterGlobe Aviation Ltd, worth up to Rs 75 billion (£728.11 million), CNBC Awaaz said in a report, citing sources. Rakesh Gangwal and his wife Shobha Gangwal currently hold 13.23 per cent and 2.99 per cent respectively in InterGlobe as of March 31, while their Chinkerpoo Family Trust holds a 13.5 per cent stake, as per exchange data. The family is expected to sell the stake through block deals once the lock-in period for shares opens on July 15. Rakesh Gangwal, who quit the company’s board in February last year, had previously announced his plan to reduce his stake in the airline over a five-year period. Following the news, the company’s shares fell by as much as 3.1 per cent after experiencing a year-to-date increase of over 19 per cent.
India’s Enforcement Directorate (ED) filed its first chargesheet in the land fraud case in the eastern state of Jharkhand before a special court in capital Ranchi. The ED has arrested 10 individuals so far, including an Indian Administrative Service officer Chhavi Ranjan. In connection with the case, the agency provisionally attached two land parcels worth Rs 74.39 crore (£7.2 million) under the Prevention of Money Laundering Act. One parcel of 4.55 acres is located in Ranchi’s Bariatu area, while the other measuring 7.16 acres is situated in the Bajra area. The ED stated that these parcels were fraudulently mutated in favor of the land mafia with the involvement of land revenue department officers.
(With PTI, ANI, Reuters inputs)
