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

II. India’s Union Finance Sector 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 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 seek stakeholder feedback before finalizing the amendments. This move aims to ease doing business through the concept 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 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 tonnes 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 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 expects to achieve its revenue target of ₹1.2 trillion from the telecom sector in the next fiscal year. Improving financial health in the telecom industry—reflected in rising license and spectrum fees—and a substantial payment by state-owned Bharat Sanchar Nigam Limited (BSNL) for its 5G spectrum are expected to support this revenue goal. Although a spectrum auction is planned, muted response is anticipated, 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 annual revenues recorded before the oil crisis. Their combined net profit for April–December FY24 outperformed the ₹393.56 billion annual revenue of the pre-oil-crisis year. Retailers have held gasoline, diesel, and cooking LPG prices unchanged for nearly two years, resulting in losses when input costs were high and profits when raw material prices were low. These three companies posted record earnings in the first two quarters of this fiscal year—when international oil prices nearly halved—but delivered robust full-year profits overall. 7. On Monday, Vivek Joshi, India’s Minister of State for Finance and Corporate Affairs, convened an assessment meeting to discuss banking- and insurance-related challenges faced by exporters and importers. In a statement, the 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 engage directly with exporters and importers to accelerate problem resolution while ensuring appropriate review of compliance requirements. The Ministry further stated that banks will closely coordinate with the Ministry of Commerce and Industry and Export Promotion Councils to facilitate trade and resolve issues promptly. 8. The Indian government announced plans to collaborate with global 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 globally.

India Finance News, June 9, 2023 — The Reserve Bank of India Projects GDP Growth at 6.5%

1. The Ministry of Cooperation has decided to identify Primary Agricultural Credit Societies (PACS) that do not currently act as fertilizer retailers and encourage them—where feasible—to assume such roles in a phased manner. 2. The Reserve Bank of India (RBI) issued guidelines on loan write-offs and default loss guarantees. The RBI approved the First Loss Default Guarantee (FLDG) scheme—a lending model involving fintech firms, partner banks, and non-banking financial companies (NBFCs)—under which the fintech firm originating the loan bears the initial loss upon default. On Thursday, the RBI released a framework governing technical write-offs, lender compromise settlements, and digital loan default loss guarantees. The RBI stated that banks and NBFCs must impose a cooling-off period on borrowers who accept compromise settlements before extending further loans. The central bank set a minimum cooling-off period of 12 months for non-agricultural credit and left the duration for agricultural credit to be determined by individual bank boards. 3. The Ministry of Railways reported that freight loading reached 134 million metric tonnes in May 2023, a 2% increase over the 131 million tonnes loaded in May 2022. The Ministry stated: “Freight revenue in May 2023 stood at ₹146.4183 billion, compared to ₹140.8386 billion in May 2022—an approximate 4% year-on-year growth.” 4. At the conclusion of its Monetary Policy Committee (MPC) meeting on Thursday, June 2023, RBI Governor Shaktikanta Das announced an expected real GDP growth rate of 6.5% for FY 2023–24—projected at 8% for Q1, 6.5% for Q2, 6% for Q3, and 5.7% for Q4. He noted that domestic demand conditions continue to support economic growth; rural demand is expanding, while urban demand remains resilient. Prior to this MPC meeting, major forecasting institutions projected figures ranging between 5.5% and 6.3%—the OECD forecast 6% for FY24, the World Bank 6.3%, JPMorgan 5.5%, and UBS 6.2%. 5. The RBI today revised downward its inflation forecast for the current fiscal year, citing recent declines in inflation data—though it still expects inflation to remain above the 4% target for the year, with upside risks persisting due to potential supply constraints affecting food and commodity prices. The RBI lowered its inflation projection from 5.2% in the April policy statement to 5.1%. The central bank also maintained its benchmark repo rate unchanged at 6.5% for the second consecutive time, continuing its focus on exiting accommodative monetary policy. 6. The RBI stated on Thursday that it aims to reach one million users of its central bank digital currency (CBDC) by month-end. While no specific date for full CBDC rollout has been finalized, the central bank emphasized a cautious approach. The RBI also plans to ensure full interoperability between the Unified Payments Interface (UPI) platform and the CBDC. Additionally, the RBI comprehensively overhauled regulations concerning one-time settlements and technical loan write-offs to harmonize instructions across all regulated entities. In detailed guidelines, the RBI requires all regulated entities (REs) to implement board-approved one-time settlement and technical write-off policies for borrowers—establishing frameworks for staff accountability, precedents, tiered procedures, and timelines. 7. The RBI held its Monetary Policy Committee meeting for the second consecutive time without changing interest rates, keeping the repo rate unchanged at 6.5%. Governor Das indicated that real interest rates suggest the possibility of a policy rate cut, as the interest rate cycle may have peaked. The inflation targeting framework—a monetary policy objective aimed at controlling the pace of price increases—was introduced in 2016 after years of reform. 8. The RBI’s decision to maintain the repo rate at 6.5% for the second consecutive time is expected to help sustain steady growth in residential sales, particularly in interest-sensitive segments such as affordable housing and mid-to-low-income housing. Since May last year, the central bank has raised its policy rate six times consecutively, cumulatively hiking it by 250 basis points, reaching 6.5% before pausing in April. Housing loan rates in India have risen to around 9%, and the RBI’s rate hikes since May 2018 have driven up costs across the housing sector and its 260 associated industries. 9. Officials stated that the Union Government is preparing to notify final Quality Control Orders (QCOs) for aluminum, copper, and nickel—aimed at curbing imports and sales of substandard metal products. They said this measure would help regulate the sale of these metals, mandating sellers to comply with standards set by the Bureau of Indian Standards (BIS).

India's Bharat Petroleum profit drops amid crude oil price volatility

23 hours ago

India's Bharat Petroleum reported a 22.5% drop in second-quarter net profit to 49.93 billion rupees, driven by volatile crude oil prices and rising raw material costs despite government compensation.

reuters

2026-10-23

India's Bharat Petroleum profit drops amid crude oil price volatility

India's Bharat Petroleum profit drops amid crude oil price volatility

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