WEEKLY MEDIA UPDATE Monday
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Issue 514 6 70 16 August, 2021 WEEKLY MEDIA UPDATE Monday (This document comprises news clips from various media in which Balmer Lawrie is mentioned, news related to GOI and PSEs, and news from the verticals that we do business in. This will be uploaded on intranet and website every Monday.) Business resumption hits record high, Economic impact of 2nd Covid wave regains mojo after 2-week fatigue: likely to be muted; visible signs of eco Nomura rejuvenation: FinMin After a slowdown in the previous two weeks, The finance ministry on Tuesday said the business activities have resumed in August, said economic impact of the second wave of the Nomura. The Nomura India Business Resumption COVID-19 pandemic is likely to be muted and Index (NIBRI), which tracks high frequency data, there are visible signs of economic rose to a record high of 99.4 for the week ended rejuvenation. The latest Monthly Economic 8 August from 94.0 in the previous week, nearing Review, released by the finance ministry, said the pre-pandemic level of 100, and surpassing the the "robust recovery in tax collections cushions pre-second wave peak of 99.3 in mid-February. the fiscal towards meeting the budgeted “Nomura India Business Resumption Index support to the economy". It also said the recent regains its mojo after fatigue in the past two sero-prevalence results signify that India can weeks," Sonal Varma and Aurodeep Nandi, reduce the likelihood of severe illness due to economists, Nomura said in a note. Having COVID-19 if the country sustains the plateaued briefly, mobility picked up sharply, with momentum of the vaccination programme. Google workplace, retail & recreation and Apple "Having antibodies reduces the probability of driving index rising 7.4 percentage points (pp), acquiring serious illnesses, as is borne by 5.3pp and 6.7pp, respectively. Power demand also studies. So, any subsequent waves are rose 5.3% week-on-week after contracting for expected to be mild in terms of severity of three consecutive weeks, while labour disease," the ministry said in the report. participation rate rose to 41.5% from 39.8%, with However, it is imperative that COVID- unemployment rate to 8.1%. Fresh covid case appropriate behaviour and due protocol is additions remained flat at 40,000 per day, and at followed. At this juncture, it said, the economy close to 5 million doses per day, the vaccination and society are at a crucial inflection point pace is higher than the daily rate of 3.9 million in where sustenance of economic recovery, June. vaccination progress and COVID-19 appropriate Mint - 10.08.2021 behavioural strategies are needed in close https://www.livemint.com/economy/business- synergy with each other. resumption-hits-record-high-regains-mojo-after- News 18 - 11.08.2021 2-week-fatigue-nomura-11628499619039.html https://www.news18.com/news/business/econ omic-impact-of-2nd-covid-wave-likely-to-be- muted-visible-signs-of-eco-rejuvenation- finmin-4069349.html Government will do ‘everything’ to Exports hit record $35.4 billion in July revive growth, says finance minister Nirmala Sitharaman India exported a record $35.4 billion worth of goods in July, riding the rapid economic The government is committed to doing everything recovery in key western markets, revised data that is required to revive the economy, finance from the commerce ministry showed on Friday. minister Nirmala Sitharaman said on Thursday as Merchandise imports also shot up to $46.4 she assured industry about the Centre’s billion, the second-highest in history, expanding commitment to reforms and urged India Inc to India’s trade deficit to $11 billion. Exports were come out in a big way and show its risk taking led by robust growth in petroleum products, abilities. Addressing the annual session of the gems and jewellery, chemicals, engineering Confederation of Indian Industry (CII), goods, electronic goods and readymade Sitharaman also said the government and the RBI garments, while imports were led by crude oil, will both push growth and take all necessary steps chemicals, precious stones, iron and steel, to keep inflation contained. “Government’s electronic goods and gold. Aditi Nayar, chief commitment to recovery is shown in so many economist at ICRA Ltd, said the current account different ways and we are going to continue doing will record a surplus of $2-3 billion in Q1FY22, that because recovery and its sustainability is before reverting to a deficit of $3-5 billion in the something which the PM is very keenly invested ongoing second quarter. “This will be followed in,” said Sitharaman. “I am not looking at growth by much larger deficits in Q3 and Q4FY22, as versus inflation. We shall attend to inflation and the recovery in domestic demand gains keep it contained, take all the necessary steps but strength. We continue to expect a modest never forget the fact that growth is that will make current account deficit of $20-25 billion or 0.7% all the difference to the economy’s revival, growth of GDP in FY22," she added. Tentative data will eventually remove poverty and bring in a released earlier this week showed Indian level-playing field for all Indian citizens,” FM said, shipments started off well in August, garnering adding that both the Centre and RBI are working $7.4 billion in the first week of the month. as partners to address issues linked to the Mint - 14.08.2021 economy. https://www.livemint.com/economy/exports- The Economic Times - 13.08.2021 at-record-high-of-35-4-bn-in-july- https://energy.economictimes.indiatimes.com/ne 11628860074474.html ws/oil-and-gas/government-will-do-everything- to-revive-growth-says-finance-minister-nirmala- sitharaman/85291083 Exports up 50.45% in first week of July retail inflation eases to 3-month August low of 5.59%; June IIP at 13.6% Led by engineering goods, gems and jewellery, India's retail inflation eased to a three-month and petroleum products, India’s exports rose low in July, back within the Reserve Bank's 50.45% to $7.41 billion during August 1-7. tolerance level (2 per cent-6 per cent) after Imports in the week rose 70% to $10.45 billion, staying above the upper band for two straight leaving a trade deficit of $3 billion, tentative data months, government data released on Thursday released on Tuesday by the commerce and showed. The consumer price index (CPI) based industry ministry showed. The top export inflation cooled to 5.59 per cent in the last destinations were the US, UAE and Saudi Arabia month from 6.26 per cent in June. Food inflation while the highest rise in imports was seen from the fell substantially to 3.96 per cent in July from UAE, China and Nigeria. Outbound shipments of 5.15 per cent in June. The RBI in latest engineering goods increased 63.2% and monetary policy review has kept the rates and petroleum products grew145.3%. Gems and stance unchanged and pledged to remain jewellery exports witnessed a growth of 121% accommodative in the near future, while raising whereas iron ore, oil meals, oil seeds saw the its inflation forecast to 5.7 per cent during steepest decline in exports. In the first four 2021-22. RBI projected 5.9 per cent in the months of FY22, merchandise exports were second quarter, 5.3 per cent in third, and 5.8 $130.56 billion, which is 32.64% of the $400 per cent in the fourth quarter of the fiscal, with billion target set by the government for this fiscal risks broadly balanced. CPI inflation for Q1FY23 and up 73.8% over the corresponding period last is projected at 5.1 per cent. Meanwhile, year. Imports of oil in the first week of August rose Industrial output for the month of June rose 141% to $1.8 billion while those of electronic 13.6 per cent, in a sign that the low base effect goods were up 31% to $308 million. However, of the last year is waning. Factory output, gold imports declined12.48% to $100 million. measured by the Index of Industrial Production Non-petroleum, non-gems and jewellery imports (IIP) had contracted 16.6 per cent in the same —an indicator of domestic demand — grew 53.3%. month of last year and rose by 29.3 per cent in The Economic Times - 11.08.2021 May. https://epaper.timesgroup.com/Olive/ODN/TheEc Business Standard - 12.08.2021 onomicTimes/shared/ShowArticle.aspx?doc=ETK https://www.business- M%2F2021%2F08%2F11&entity=Ar01105&sk=5 standard.com/article/economy-policy/retail- 19FFF23&mode=text inflation-cools-to-3-month-low-of-5-59-in-july- june-iip-at-13-6-121081201362_1.html India's industrial production grows PM Narendra Modi announces Rs 100- 13.6% in June on low base effect lakh-crore 'Gatishakti' initiative for infrastructure growth India’s industrial production grew 13.6 per cent in Prime Minister Narendra Modi on Sunday said June from the year-ago period due to the low-base the government will launch a Rs 100-lakh-crore effect, data released by the Ministry of Statistics plan for an integrated infrastructure growth that and Programme Implementation showed. The will help reduce logistics costs and make the impact of a low-base declined in June as compared economy competitive. “We will launch a to the last two months. In April and May, growth masterplan for Gati Shakti, a big programme ... was 134.6 per cent and 28.6 per cent, This scheme of more than Rs 100 lakh crore will respectively, thereby portraying an exaggerated result in new employment opportunities for picture of industrial activity.