India's Financial and Economic News, February 6, 2024 — The U.S. Relies on India’s Pharmaceutical Industry to Sideline China

II. India’s Union Finance and Economy 1. According to the Annual Survey of Industries, factory employment in India rose by 7% in FY 2021–22, surpassing pre-pandemic levels. Investment and output also increased, indicating the country’s recovery from the pandemic. Manufacturing demonstrated resilience following the adverse impacts of the pandemic, with only a slight decline in employment recorded in FY 2020–21. 2. The Indian government has approved amendments to the Food Safety and Standards Regulations, requiring only a single certification for food products by the food regulator—the Food Safety and Standards Authority of India (FSSAI). The FSSAI will issue a draft notification and solicit stakeholder feedback before finalizing the amendments. This move aims to enhance ease of doing business under the principle of “One Nation, One Commodity, One Regulator.” 3. On Tuesday, the Indian government launched a subsidized “Bharat Rice” scheme priced at ₹29 per kilogram to alleviate the 15% retail price increase in this staple grain over the past year. Subsidized rice will be available in 5 kg and 10 kg packs. In the first phase, the Food Corporation of India will supply 500,000 metric tons of rice to two cooperatives—the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF)—as well as to the retail chain Kendriya Bhandar. 4. India’s Goods and Services Tax (GST) officials are deploying data analytics and artificial intelligence tools to identify taxpayers suspected of fraudulent input tax credit claims. Between April and December 2023, 14,597 GST evasion cases were registered, with Maharashtra reporting the highest number (2,716 cases). Tools such as NETRA, BIFA, and ADVAIT helped uncover fake income tax return filings worth ₹180 billion and led to the arrest of 98 fraudsters. 5. Even without a large-scale spectrum auction, the Indian government is expected to achieve its revenue target of ₹1.2 trillion from the telecom sector in the next fiscal year. Improving financial health across the telecom industry—reflected in rising license fees and spectrum charges—and substantial payments made by state-owned Bharat Sanchar Nigam Limited (BSNL) for its 5G spectrum are projected to support this target. Although a spectrum auction is planned, demand is expected to be muted, as operators acquired sufficient spectrum during the August 2022 auction to meet their 5G requirements. 6. Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation reported combined profits exceeding ₹690 billion in the first nine months of the current fiscal year—surpassing their annual revenues prior to the oil crisis. Their combined net profit for April–December FY24 outperformed the previous pre-oil-crisis annual revenue of ₹39,356 billion. Retailers have held gasoline, diesel, and cooking LPG prices unchanged for nearly two years, resulting in losses when input costs rise and profits when raw material prices fall. These three companies posted record earnings in the first two quarters of the current fiscal year—when international oil prices nearly halved—but delivered robust full-year profits overall. 7. On Monday, India’s Minister of State for Finance, Vivek Joshi, convened an assessment meeting to discuss banking- and insurance-related challenges faced by exporters and importers. In a statement, India’s Ministry of Finance noted: “To ensure seamless processes, banks are advised to proactively engage with customers to expedite resolution, while appropriately reviewing compliance requirements.” The Ministry has directed banks to interact directly with exporters and importers to accelerate problem resolution, while suitably reviewing compliance mandates. The Ministry further stated that banks will closely coordinate with the Ministry of Commerce and Export Promotion Councils to facilitate trade and resolve issues promptly. 8. The Indian government announced plans to collaborate with international toy giants including Snapdeal and Walmart. At the five-day International Toy Fair held in Germany, Indian toy manufacturers secured orders exceeding USD 10 million. India’s toy industry is growing healthily and competing effectively with global enterprises.

2024 Market Status Analysis of India’s Natural Gas Industry

The current market status of India’s natural gas industry is as follows: Industry Performance: Quarterly profits reported by India’s state-owned Oil and Natural Gas Corporation (ONGC) exceeded expectations, driven primarily by reduced operating costs and increased oil production—despite declines in both natural gas prices and output. Production Share: ONGC accounts for 67% of India’s oil production and 53% of its natural gas production. Exploration Investment: The company is investing billions of dollars in deepwater and ultra-deepwater exploration to help India reduce its heavy dependence on overseas energy supplies. Global Market Impact: Global oil exploration firms have benefited from rising oil prices, but the Indian government has curbed their profits through a windfall tax. Price Trends: Henry Hub natural gas (NG) futures settlement prices in the U.S. rose month-on-month; European Title Transfer Facility (TTF) natural gas futures prices also increased month-on-month—indicating an upward trend in international natural gas prices. Supply-Demand Dynamics: Henry Hub futures prices show an upward trajectory, as regional temperatures gradually rise, boosting cooling-related power generation demand. Simultaneously, Europe’s increasing LNG import demand is driving price increases. Inventory Levels: Natural gas inventory reserves in both the U.S. and Europe are rising steadily; however, inventory growth rates may slow as summer demand emerges. China’s LNG Market: Domestic natural gas prices in China show mixed trends. On the supply side, domestic LNG plants are lowering prices to clear high-priced inventories, while receiving terminals are raising sales prices due to upward pressure from international spot prices. International Outlook: Globally, natural gas prices are expected to peak and then retreat, primarily due to the imminent onset of summer heatwaves across the Northern Hemisphere, alongside scheduled maintenance or planned shutdowns at LNG export terminals and natural gas pipelines.

Indian Oil's Q2 profit nearly triples on LPG compensation

1 day ago

Indian Oil Corporation reported a nearly threefold jump in Q2 net profit to $2.28 billion, boosted by government compensation for domestic LPG losses. Revenue rose 30% despite higher crude procurement costs driven by geopolitical tensions.

reuters

2026-10-30

Indian Oil's Q2 profit nearly triples on LPG compensation

Indian Oil's Q2 profit nearly triples on LPG compensation

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