Top Economic News: Key Policy Changes, New Investments & More

The Indian economy continues to see dynamic shifts across various sectors, from agriculture to technology, and infrastructure to sustainability. With significant developments such as the potential revision of the Consumer Price Index (CPI) basket, the introduction of new government welfare initiatives for the unorganised workforce, and groundbreaking changes in the real estate and energy sectors, there’s a lot to unpack. The focus on fiscal management, sustainability investments, and industry-specific transformations shows a complex economic landscape that is constantly evolving.

Here’s TICE brings a round-up of the top economic stories making headlines today.

Top Economy News

Food Items May Shed Weight in CPI Basket

Experts suggest that food items could lose their dominance in the Consumer Price Index (CPI) basket. The changes are anticipated to be up to 6.5 percentage points in rural areas and 3.4 percentage points in urban areas, as per findings from the Household Consumption Expenditure Survey (HCES) 2022-23. A government panel is currently reviewing the CPI basket, with a base year revision on the horizon. The CPI was last updated in 2011-12, and the previous HCES from 2017-18 was discarded due to inaccuracies.

e-Shram Database Now a 'One Stop Solution' for Unorganised Workforce

In a major step towards supporting India's unorganised sector, the Labour Ministry has integrated various social security schemes with the e-Shram portal, creating a comprehensive repository for over 300 million workers. This “One Stop Solution” will provide seamless access to welfare programs, aligning with the Union Budget's promise to enhance services for workers in the unorganised sector.

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Government Rolls Out e-Daakhil Portal Across India

The government has successfully launched the e-Daakhil portal, designed to simplify the process of filing consumer complaints across India. The portal aims to provide an inexpensive, speedy, and hassle-free mechanism for consumers, with plans for an enhanced version called e-Jagriti, which will improve case filing, tracking, and management.

Fiscal Deficit Projected at 4.75% in FY25

India's fiscal deficit for FY25 is expected to be 4.75%, slightly lower than the budget target, according to India Ratings and Research. The reduction in the deficit is attributed to controlled expenditure, with government capital expenditure estimated to be Rs 62,000 crore lower than initially projected.

Cement Industry to Add 70-75 Million MT Capacity Amid Slowdown

Despite a slowdown in construction, the Indian cement industry is expected to expand its capacity by 70-75 million metric tonnes (MT) over the next two years. The expansion will primarily involve clinker and grinding capacity, with 33-35 million MT capacity expected to be added in FY2025 and 37-39 million MT in FY2026.

Paper Industry Raises Concerns Over Below-Cost Imports

The Indian Paper Manufacturers Association (IPMA) has raised alarms over the rising imports of virgin fibre paperboard at below-cost prices, mainly from countries like China and Chile. This surge in imports threatens local manufacturers, with the association calling for a level playing field in the industry.

Government to Launch Auction of Offshore Mineral Blocks

The government is set to launch the first-ever auction of mineral blocks in offshore areas on November 28, 2024. Thirteen blocks across the Arabian Sea and Andaman Sea, containing critical minerals like construction sand, lime mud, and polymetallic nodules, will be up for auction. These minerals are crucial for infrastructure development and green energy transitions.

Leading Automakers to Launch 100% Ethanol Vehicles

Major automakers such as Mahindra, Toyota, Hyundai, and Tata are preparing to launch 100% ethanol-powered vehicles over the next five months. This move is part of India's push for sustainable transportation solutions, with advancements also being made in ethanol-based aviation fuel.

Surge in Quick Commerce Platforms in India

Quick commerce platforms are rapidly gaining popularity in India, with 91% of internet users now aware of these services. A Meta study reveals that Gen Z is leading the adoption of these platforms, particularly for groceries, personal care, and niche categories like health, wellness, and pet supplies. Users are spending more on high-demand items, with Gen Z at the forefront.

Over 90% of Indian Businesses Increasing Sustainability Investments

A recent report highlights a significant increase in sustainability investments, with 91% of CXOs reporting higher investments over the past year. This reflects the growing importance of climate action in driving value creation and aligning with business strategies, despite challenges in measuring environmental impact.

Government Looks to Ease Agricultural Marketing

The government is working on a set of measures to improve agricultural marketing, including allowing direct farm-gate purchases by bulk buyers, bypassing state-notified mandis and levies. This aims to ensure more favorable terms of trade for farmers and remove barriers to free trade in agricultural commodities.

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Real Estate Sector Faces Scrutiny Over Ad Norm Violations

The real estate sector was identified as the largest violator of advertising norms, according to the Advertising Standards Council of India (ASCI). Between April and September 2024, 34% of the ads investigated were from real estate, with nearly all found in violation of the Maharashtra Real Estate Regulatory Authority (MahaRERA) Act. This has led to penalties for developers.

India to Spend Over Rs 9 Lakh Crore on Power Transmission Infrastructure by 2032

India plans to invest Rs 9.12 lakh crore in power transmission infrastructure by 2032, aiming to add 1,91,474 circuit kilometers of transmission lines and 1,274 GVA of transformation capacity. This initiative is part of the National Electricity Plan (Transmission) and will strengthen the country’s energy grid.

Gujarat and Andhra Pradesh to Benefit from Mega Refinery Plan

The Indian government’s mega refinery plan, originally proposed for Maharashtra, is now set to shift to Gujarat and Andhra Pradesh. These states will host two refineries processing 10-15 million tonnes of oil annually. This strategic move will bolster Saudi Arabia's crude oil sales to India.

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NTPC Plans Rs 4 Lakh Crore Investment in Nuclear Power

NTPC, India’s largest power producer, is planning to invest Rs 3-4 lakh crore to add around 20 GW of nuclear power capacity over the next 20-30 years. The first nuclear project will be developed in collaboration with NPCIL, and NTPC plans to undertake future projects independently.

This roundup highlights key shifts and initiatives shaping India's economy, covering sectors from energy and agriculture to technology and infrastructure. These developments reflect the country’s ongoing efforts to boost sustainability, enhance consumer rights, and strengthen key industries for future growth.

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