Business News at 10:00 am on 13th August, 2024

Let’s begin. India’s retail inflation, based on the Consumer Price Index , plunged to a 59-month low of 3.54% in July, due to the statistical effect of a high base, data released by the National Statistical Office showed on Monday. In July 2023, the CPI inflation was 7.44%, a 15-month high. High base also pulled down food inflation, with Consumer Food Price Index falling to a 13-month low of 5.42% in July. In the year ago period, food inflation stood at 11.51%. On a sequential basis, however, the overall index rose by 1.4% in July, the highest pace in 12 months, driven by a 2.8% rise in the CFPI. During July, the indices of five of six groups increased on a month-on-month basis.
Moving to Industry news, A day after the Securities and Exchange Board of India and its chairperson Madhabi Puri Buch defended themselves in separate statements amid allegations levelled against them by US short-seller Hindenburg, a senior government official said it had nothing to add on the matter. Quote Both of them, the concerned person as well as the regulator, have made the statements and there is nothing further to be added by the government unquote economic affairs secretary Ajay Seth said. Seth made the statement when asked whether Sebi chief would need to step aside from the regulatory investigation into Adani group in the wake of Hindenburg’s allegations. He was the only government functionary to give a reaction on the matter till late Monday.
Next to Economy news, India’s factory output growth, as measured by the Index of Industrial Production, moderated to a five-month low of 4.2% in June from 6.2% in May, primarily due to slower growth in manufacturing activity, official data released on Monday showed. Manufacturing growth (accounting for 78% of IIP) slowed to a seven month low of 2.6% in June from 5% in May, and electricity growth eased a three -month low of 8.6% from 13.7%. Mining growth, on the other hand, rose to an eight-month high of 10.3% in June from 6.6% in May. Also, given the lower industrial output in the first quarter along with lower than expected profitability, weaker GVA growth in the manufacturing sector may pull down GDP growth in Q1FY25.
Latest update from healthcare, In less than a week since the Drugs Controller General of India has given permission to pharma companies to launch certain types of drugs without local clinical trials, the economic think tank Global Trade Research Initiative has opposed the decision. GTRI has said that the decision is going to adversely impact the patients in India and could hurt the domestic pharma industry. Quote By overlooking India’s unique genetic diversity, the waiver could lead to unexpected safety and effectiveness issues. Also, it might increase competition from multinational corporations making it harder for local pharma companies and contract research organisations to grow unquote GTRI said. As per the think tank, the genetic make-up of Indians are different from the US and EU who have diverse population.
Next news on LIC, The life insurance industry recorded a 14.2% year-on-year increase in premiums at ₹31,823 crore in July, compared with ₹27,867 crore in the same month last year. The growth was primarily driven by a strong growth in premiums of Life Insurance Corporation. LIC’s premiums surged 20% year-on-year, totalling ₹18,431 crore, compared with ₹15,387 crore in July 2023. According to data from the Life Insurance Council, LIC new business premium collection for the first four months of FY25 rose 26% to ₹75,872 crore, against ₹60,224 crore during the year-ago period. In contrast, the premium growth for the private life insurance industry was at 7%, reaching ₹13,392 crore in July. Among private players, HDFC Life reported a 34% increase in premiums to ₹2,699 crore.
Over to Banking sector, Finance secretary TV Somanathan, who has been elevated to the post of Cabinet secretary, has played a pivotal role in the adept management of government finances during the testing period of the pandemic, and bringing about enhanced fiscal transparency despite heavy odds. His rich experience in handling public monies and ensuring that it is put to the most efficient use, as well in building consensus among different layers of government, including the states, is expected to stand him in good stead in the new assignment. A chartered accountant who holds a doctorate in economics, the amiable 1987-batch IAS officer from Tamil Nadu cadre, has also managed to take the state governments on board in making further headway in fiscal discipline.