Economy
Data recap: Uneven rains, Adani’s capex, wheat stock curbs
Summary
- News and developments from the week gone by, through numbers and charts.
NEW DELHI : Every Friday, Plain Facts publishes a compilation of data-based insights, complete with easy-to-read charts, to help you delve deeper into the stories reported by Mint in the week gone by. Despite arriving early, the annual monsoon rains have been deficient in June so far, while the government has imposed stock limit on wheat to control price rise. The Adani Group is planning to nearly double its capital expenditure in 2024-25.
Monsoon misery
The monsoon season in India is off to a sluggish start despite an “above-rainfall" prediction by the India Meteorological Department (IMD). After arriving ahead of its schedule in Kerala, on 30 May, the progress of monsoon has been uneven. Data from the IMD shows all-India deficiency in rainfall was 17% of the long-period average (LPA) until 27 June. Of the 36 states and Union territories, 21 are experiencing below-normal rains, with states like Uttar Pradesh, Bihar, Punjab and Haryana, among others, facing large deficiency in rainfall.
Dissent of doves
The Reserve Bank of India (RBI) is facing growing pressure to start easing the monetary policy amid softer inflation from its two rate-setting panel members. Earlier this month, Monetary Policy Committee (MPC) members Jayanth R. Varma and Ashima Goyal voted to cut the repo rate by 25 basis points against the majority vote of status quo. According to a Mint analysis, Varma has a long record of dissents, mostly on stance, while Goyal is the only other member to dissent albeit fewer times.
Expansion plans
The Adani Group has planned a capital expenditure of ₹1.3 trillion in 2024-25, which is nearly double the ₹70,000 crore the company had outlined in 2023-24. The capex will be funded through a mix of debt, equity and internal cash generation. The group plans to invest nearly 85% of the planned amount in infrastructure and utilities, including ₹34,000 crore in renewable energy. About ₹7,000 crore will go into the ports business and ₹4,200 crore in data centre's business.
Also Read: Data explainer: Decoding the dissent of RBI’s doves, in 5 charts
Trade tales
After a gap of two years, China overtook the US to become India's leading trading partner in 2023-24, although with a small margin, mainly due to a 19.8% decline in imports from the US. India's trade relationship with the two countries is quite contrasting. While the trade with China is import-heavy, that with the US is driven by exports. As a result, India enjoys a hefty $36.7 billion trade surplus with the US, while the trade with China leaves a debilitating deficit.
Stake sale
Five state-owned banks, UCO Bank, Central Bank of India, Punjab & Sind Bank, Bank of Maharashtra and Indian Overseas Bank are looking to issue qualified institutional placements (QIPs) in the second half of 2024-25 to increase the public shareholding to 25% to meet regulatory norms, a Mint report said. While the deadline for the compliance is 1 August, the public-sector banks (PSBs) have reportedly requested an extension. Current public shareholding in these banks ranges from 1.75-13.54%.
Wheat woes
The new permissible limit of wheat stock that wholesalers can hold is 3,000 tonnes, as per the latest restrictions imposed by the Centre. The new rules have been notified in a bid to crack down on hoarders and speculators, control rising prices, and prevent food security issues. Apart from wholesalers, the restrictions have also been imposed on retailers and processors. This move comes amid an already existing ban on exports of wheat imposed to manage stock and control prices.
Also Read: In charts: The toll of climate crisis on India’s marginal farmers
Backlog busting
Consumer courts in India are making a significant headway in clearing the backlog of cases, with more cases (440,971) disposed off than filed (415,104) since the formation of the Central Consumer Protection Authority (CCPA), Mint reported. The progress can be attributed to the cancellation of summer vacations for state commissions. Alarmed by the growing backlog of cases, the consumer affairs ministry urged the National Consumer Disputes Redressal Commission (NCDRC) to suspend these breaks.
Chart of the week: India leads
Amid global growth slowdown, India maintained its dominance in May when it attained the first position among its emerging markets’ peers. Strong gross domestic product (GDP) growth and manufacturing Purchasing Managers’ Index (PMI) were the major boost during the month, according to the latest Emerging Markets’ Tracker.
Also Read: Global news wrap: Monetary policies, G7 summit, climate warning
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