- Wednesday, May 08, 2024
By: Shubham Ghosh
HERE are news in brief on Indian economy and business for Friday, April 26, 2024:
Deloitte India on Friday said it estimates India’s GDP growth at 6.6 per cent in the current fiscal helped by consumption expenditure, exports rebound and capital flows. In its India’s economic outlook report, Deloitte said the rapid growth of the middle-income class has led to rising purchasing power and even created demand for premium luxury products and services. With the expectation that the number of middle-to-high-income segments will be one in two households by 2030/31, up from one in four currently, we believe this trend will likely become further amplified, driving overall private consumer expenditure growth, it said.
S&P Global Ratings on Friday said the Reserve Bank of India’s (RBI) regulatory action on Kotak Mahindra Bank could restrain the lender’s credit growth and profitability. The RBI on Wednesday barred Kotak Mahindra Bank from issuing fresh credit cards and onboarding new customers online. Credit cards are a higher-yielding target growth segment for Kotak Mahindra Bank. This portfolio grew at 52 per cent year-on-year as of December 31, 2023, compared with total loan growth of 19 per cent, the US-based rating agency said.
With the Delhi High Court allowing lessors to take back 54 planes leased to bankrupt Go First, joint bidder Busy Bee Airways’ Nishant Pitti on Friday said he will consider any necessary adjustments to its proposed offer for the airline after reviewing the court order. Busy Bee Airways, along with SpiceJet chief Ajay Singh, has put in a bid for Go First under the insolvency resolution process. Travel portal EaseMyTrip’s co-founder and CEO Nishant Pitti is a majority shareholder in Busy Bee Airways. On Friday, the court directed the Directorate General of Civil Aviation to forthwith process the applications filed by several lessors for deregistration of their 54 planes so that they could take them back from the crisis-hit Go First airline.
As part of the Local for Vocal initiative, India is making a strong course correction in the toy manufacturing ecosystem. The country’s massive toy demand was till recent years met mainly through imports, largely from neighbouring China. India’s toy imports from China have reduced by an estimated 70 per cent over the recent years. Policy interventions, such as raising import duty to discourage cheap imports, emphasis on quality and incentives have created an ambient atmosphere for the firms in this largely unorganized space. Pushed by the self-reliant India initiative and renewed focus on enhancing domestic manufacturing post-COVID-19, a large number of small and big players have forayed into this area once perceived as not so lucrative proposition.
Snapping a four-day winning streak, Indian stock indices closed sharply lower on Thursday, primarily due to risk aversion by investors amid weak global cues. Sensex settled at 73,730.16 points, down 609.28 points or 0.82 per cent, while Nifty settled at 22,419.95 points, down 150.40 points or 0.67 per cent. Among the sectoral indices, Nifty bank, Nifty private bank, and Nifty financial services declined the most. On Wednesday (24), Indian stock indices marked the fourth straight session of gains, largely due to strong domestic economic indicators. Also, improved investor sentiment with the relative easing in tensions in the Middle East and declining oil prices supported the Indian stocks.
(With agencies)
