Business News at 10:00 am on 30th April, 2024

Let’s begin…Finance Minister Nirmala Sitharaman said on Monday that India’s aim to become the third-largest economy in the next few years is not an ‘arithmetic inevitability’ as claimed by Congress leader P Chidambaram, but requires a lot of efforts and visionary leadership of Prime Minister Narendra Modi. Addressing Viksit Bharat Ambassador Campus Dialogue at Gitam University in Visakhapatnam, Sitharaman said, quote, ‘The previous Congress-led government could increase the Indian economy’s ranking just by two places from 12th to 10th in 2004-2014, but it improved to 5th place under Modi’s tenure between 2014-2024, end quote. Recently, former finance minister Chidambaram said no matter who the prime minister is, India’s GDP will become the third largest in the world. Next up, Nestle India has rejected the charges relating to the company selling baby food products like Cerelac with higher sugar content in less developed countries like India. Chairman and managing director Suresh Narayanan said the allegation is racially stereotyped, unfortunate and untrue. Narayanan said that added sugar content in Cerelac is much lower than the upper limit prescribed by the Food Safety and Standards Authority of India (FSSAI). He said, quote, There is nothing in this product that makes it potentially of any risk or any kind of harm to the child, end quote. As per the FSSAI, the permissible level of added sugar is 13.6 grams per 100 grams of feed. Moving on, The growth in factory output, as measured by the Index of Industrial Production (IIP), is likely to slow down to around 4.7% in FY25 from an estimated 6.1% in FY24, in the backdrop of the statistical effect of a high base and fading away of pent-up demand, say economists. In April-February FY24, IIP growth has averaged 6%. An expectation of a slower IIP growth would also mean GDP growth in FY25 may end up lower than 7.5% projected by the National Statistical Office for FY24. The Reserve Bank of India projected the GDP growth at 7% in FY25, but several economists have pegged it at 6.5-6.7%. The International Monetary Fund has projected FY25 growth at 6.8%. In other news, The exporters have pitched for an increase in interest subvention on loans under the Interest Equalisation Scheme as their costs have gone up post Red Sea crisis and they continue to face tepid demand in key markets. The scheme will expire on June 30 and the Commerce Ministry is expected to seek its extension for a further period of five years. The interest equalisation scheme provides upfront reduction in interest rates on per-shipment and post shipment credit by banks. The exporters from Micro Small and Medium Enterprises get a rebate of 3% on loans under the scheme. The merchant exporters who source goods for exports from other manufacturers and others get 2% benefit for exports of 410 identified products. Some more industry news, Reliance Consumer Products, a Reliance Retail subsidiary and fast-moving consumer goods arm of the company, will focus on setting up its own bottling units, as it eyes a wider distribution network for Campa Cola in the country, persons in the know told FE. The iconic soft drink brand, popular in the 1970s and 1980s, was acquired by RCPL in August 2022 for Rs 22 crore. It was relaunched in March last year in both general trade and Reliance Retail outlets. The company works with external bottlers like Kali Aerated Water Works, the maker of the Bovonto brand of soft drinks and Asian Beverages in Tamil Nadu; Jallan Food Products in Andhra Pradesh and Rajasthan; and Ghodavat Consumer Products in Maharashtra. Let’s jump to aviation, Digi Yatra is set to spread wings and will be available for international travellers before the end of 2025. That’s not all. The makeover plan includes using the app for hotel check-ins and hassle-free access to public places. To enable the facility for foreign travellers, Digi Yatra Foundation, a non-profit organisation working on the project, will create e-passport verifiable credentials by integrating the soon-to-be-launched chip-enabled e-passports into the app. At present, it is prototype testing the e-passport-based enrollment. Suresh Khadakbhavi, CEO, DYF, said during an interaction with FE, quote, We are eagerly waiting for the rollout of electronic passports in India to fast-track things at our end, end quote. Lastly, GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Tuesday. Here is all you need to know before the market opens. GIFT Nifty traded up by just 5.50 points or 0.02% at 22,770.50 indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 ended up by 223.45 points or 1% to settle at 22,643.40 while the BSE soared 941.13 points or 1.28% to 74,671.28. Ajit Mishra – SVP, Research, Religare Broking, said, quote, The fresh buoyancy in the banking index has paved the way for a new high in the Nifty index while others may continue to offer support on a rotational basis, end quote.