1)India’s gross domestic product grew at 6.7 per cent for Q1FY25. Experts were anticipating moderate growth for this quarter, attributing their expectations to the general elections of 2024, a slump in urban consumption and a previously sluggish rural growth. The Reserve Bank of India had in August projected India’s GDP to grow at 7.1 per cent for the first quarter of fiscal year 2024-25.
2)The central government’s fiscal deficit in the first four months of FY25 touched 17.2% of the annual target, against 33.9% a year before, government data showed on Friday. India’s fiscal deficit for April–July was 2.77 trillion rupees ($33.05 billion), or 17.2% of the estimate for the financial year.
3)The Government of India has received ₹10,23,406 crore (31.9% of corresponding BE 2024-25 of Total Receipts) up to July 2024 comprising ₹7,15,224 crore Tax Revenue (Net to Centre), ₹3,01,796 crore of Non-Tax Revenue and ₹6,386 crore of Non-Debt Capital Receipts.
4)Growth in India’s eight core sector industries slowed to 6.1 per cent in July compared to 8.5 per cent in the same month last year, according to government data released. It picked up compared to 5.1 per cent last month, helped by business activity and road construction.
5)India’s forex reserves jumped by $7.023 billion to touch a new high of $681.688 billion in the week ended August 23, the RBI said on Friday. The overall reserves had jumped by $4.546 billion to $674.664 billion in the previous week reporting.
6)Moody’s has raised India’s growth projections for 2024 and 2025, citing improving rural demand, while Fitch affirmed the country’s sovereign credit rating. Moody’s now expects India’s economy to grow by 7.2% in 2024, up from 6.8% and 6.6% in 2025, compared to 6.4% earlier.
7)According to data with the depositories, Foreign Portfolio Investors (FPIs) injected Rs 11,366 crore into the debt market this month (till August 24). This inflow came following a net investment of Rs 22,363 crore into the Indian debt market in July, Rs 14,955 crore in June and Rs 8,760 crore in May.
8)The Asset Under Management (AUM) of the microfinance industry (MFI) has increased by 22.8 per cent compared to June 30, 2023, and decreased slightly by 0.8 per cent compared to March 31, 2024, according to the data shared by Microfinance Industry Network (MFIN), a microfinance industry association and an RBI-recognised self-regulatory organization, in its 50th edition of Micrometer for Q1 FY24-25. The report further added that the AUM of MFIs is Rs 1,44,797 crore as on June 30, 2024, including an owned portfolio of Rs 1,16,478 crore and a managed portfolio (off-balance sheet) of Rs 28,319 crore. The owned portfolio of MFIN members is 69 per cent of the NBFC-MFI universe portfolio of Rs 1,68,747 crore.
9)In June 2024, the Reserve Bank of India reported that bank deposits grew by 11.7 percent year-on-year (12.2 percent including mergers), down from 13.1 percent (13.7 percent) the previous quarter. The share of savings deposits fell to 29.8 percent from 30.1 percent last quarter and 31.8 percent a year ago, as more funds shifted to term deposits, which saw 66.9 percent of deposits earning 7 percent or more, up from 45.4 percent a year ago. Current account deposits dropped to 9.1 percent of total deposits, and the share of females in household deposits increased to 20.6 percent from 20.3 percent a year earlier.
10)In June 2024, the Reserve Bank of India reported that bank credit growth slowed slightly to 15.0 percent year-on-year, down from 15.6 percent the previous year. The private corporate sector’s share of total bank credit increased to 26.4 percent from 25.7 percent, while individuals accounted for 46.5 percent, with female borrowers rising to 10.9 percent. Public sector entities saw their share in total credit fall to 13.5 percent from 16.4 percent. Metropolitan branches, though still holding the majority of loans, saw their share decrease to 60.6 percent as urban and semi-urban branches grew. Public sector banks’ share of credit declined to 53.1 percent, with a corresponding rise for private sector banks, as the weighted average lending rate (WALR) increased to 10.23 percent from 10.18 percent last quarter.
11)In August 2024, the Reserve Bank reported that the weighted average lending rate (WALR) on fresh rupee loans rose to 9.40 percent in July 2024, up from 9.32 percent in June, while the WALR on outstanding loans remained at 9.91 percent. The 1-year median Marginal Cost of fund-based Lending Rate (MCLR) increased to 8.90 percent in August, up from 8.85 percent in July. On the deposit side, the weighted average domestic term deposit rate (WADTDR) on fresh deposits increased slightly to 6.48 percent in July 2024, while the rate on outstanding deposits edged up to 6.92 percent.
12)All-India HPI increased by 3.3 per cent (yoy) in Q1:2024-25 as compared to 4.1 per cent growth in the previous quarter and 5.1 per cent a year ago; Annual HPI growth varied widely across the cities. On a sequential (q-o-q) basis, all-India HPI increased by 1.8 per cent in Q1:2024-25.
13)In July 2024, international trade in services saw exports rise to $30,580 million, up 16.6 percent year-on-year, while imports increased to $15,903 million, up 15.7 percent. This compares to June 2024, with exports at $28,818 million and imports at $15,021 million; May 2024, with exports at $29,764 million and imports at $16,744 million; and April 2024, with exports at $30,332 million and imports at $16,631 million.
14)The Union government on August 30 reduced the windfall tax on domestically produced crude oil to ₹1,850 per tonne from ₹2,100 per tonne, as per a new notification. The new rate will be in effect from August 31, according to an official notification.
15)The Reserve Bank released data on the performance of the private corporate sector for Q1:2024-25, covering 2,934 listed non-government non-financial companies, with comparisons to Q1:2023-24 and Q4:2023-24.
Sales: Aggregate sales growth for listed private non-financial companies was 6.9 percent year-on-year, up from 2.1 percent a year ago. Manufacturing led with 67.5 percent of total sales, though sales in cement, iron and steel, and other sectors declined.
Expenditure: Manufacturing raw material costs rose 6.4 percent, with staff costs up 10.7 percent. IT and non-IT services saw staff cost increases of 2.4 percent and 12.8 percent, respectively. Staff cost to sales ratios were 5.8 percent for manufacturing, 49.1 percent for IT, and 11.0 percent for non-IT services.
Pricing Power: Operating profit grew 9.6 percent and net profit 14.2 percent year-on-year. Manufacturing, IT, and non-IT services saw operating profit increases of 9.3 percent, 5.1 percent, and 6.0 percent, with margins at 14.6 percent, 22.5 percent, and 21.4 percent. Electricity and construction sectors reported higher profit growth of 28.6 percent and 28.4 percent.
Interest Expenses: Interest coverage ratios improved slightly to 7.9 percent for manufacturing and 1.8 percent for non-IT companies, while IT companies maintained a high ICR of 42.9 percent.
16)In July 2024, data from 41 select scheduled commercial banks, covering about 95 percent of total non-food credit, revealed a year-on-year growth of 15.1 percent, up from 14.7 percent last year. Credit to agriculture rose by 18.1 percent, while industry credit strengthened to 10.2 percent from 4.6 percent. Services sector credit growth slowed to 15.4 percent from 19.7 percent, with notable acceleration in commercial real estate, tourism, and software. Personal loan growth decreased to 17.8 percent from 18.4 percent, due to slower growth in other personal and vehicle loans, although housing loans accelerated.
