Government Set To Change Base Year For Economic Indices, Exports From India Take A Beating In April

Government Looks To Set FY2022-23 As Base Year For Major Economic Indices 

The government is considering a change in the base year for key economic indices to FY23, as well as a revamp of several datasets, to better capture structural changes in the economy, the Economic Times reported. 

Indices such as the Index of Industrial Production (IIP), Wholesale Price Index (WPI) and National Income are currently benchmarked to FY2011-12. Earlier, the base year was FY2004-05. For the most-followed price benchmark, Consumer Price Index (CPI), the base year is 2012.

The base year provides a reference point for measuring changes in economic variables and comparing relative performances of indicators over time. Read more 

Geopolitical Factors Push India’s April Exports To 5-Month Low 

India’s goods exports slipped to a five-month low due to disruptions caused by geopolitical tensions, such as the Red Sea crisis, and softer commodity prices, the Business Standard reported.

Commerce department data showed the country’s merchandise exports grew merely 1.07 per cent year-on-year to US$34.99 billion during the first month of FY25, while imports rose sharply by 10.25 per cent to US$54.09 billion in this period, widening the trade deficit to a five-month high of $19.1 billion.

The surge in imports was mainly driven by petroleum products, which grew by a fifth to $16.64 billion. The category constitutes more than 30 per cent of the total imports. More here

RBI To Meet Asset Reconstruction Companies To Gauge Sector

The Reserve Bank of India will meet top executives of asset reconstruction companies (ARCs) to take stock of the sector, the Business Standard reported. 

During the meeting, ARCs will also seek clarity from the regulator on bank borrowing. While there is no regulatory ban in place, ARC sources said banks often refuse funding. Apart from bank funding, ARCs raise funds from the market by way of non-convertible debentures.

The other issue faced by the ARCs is the settlement process, which often takes a long time. This is because ARCs need to vet every settlement proposal by an independent committee of three officials, even for a nominal amount. More here

More International Travellers Use Indian Airports As Connecting Hubs 

Major Indian airports are increasingly becoming global connecting hubs, with international transit traffic for Indian carriers nearly doubling over the past year, the Business Standard reported. 

The number of international passengers on Indian carriers passing through six major Indian airports, Delhi, Mumbai, Kolkata, Chennai, Bengaluru, and Hyderabad, to reach their destinations increased by 97.09 per cent year-on-year to 68,305 in February, according to aviation analytics firm Cirium’s data reviewed by Business Standard.

The top six final destinations for these transit passengers were Dhaka, Kathmandu, Colombo, Bangkok, Singapore, and Dubai. This growth is being capitalised more by full-service carriers, such as Air India and Vistara, than by low-cost carriers like IndiGo. More here 

American Tariff War Against China Can Benefit Indian Exporters  

US President Joe Biden's plan to levy high tariffs on a host of Chinese products, including electric vehicles (EVs), batteries, and medical supplies, will likely benefit Indian exporters, Livemint reported quoting government officials and trade experts. 

Higher duties on Chinese face masks, syringes, needles, medical gloves and natural graphite could aid Indian exports of these products. By scaling up production and exports of these sough-after products, India stands to boost its presence in the US market, they said.

Washington has reportedly said that these tariffs will hit an estimated US$18 billion worth of imports from China. More here

In Data Centre Capacity, India Powers Ahead in The Asia-Pacific

Excluding China, India has become the data centre leader in the Asia-Pacific, having overtaken Singapore, Australia, South Korea, Japan and Hong Kong with the highest data center capacity of 950MW, the Economic Times reported.

The county is also likely to record the highest capacity addition of 850 MW during the 2024-2026 period, higher than major APAC countries. The sector has witnessed significant investments from global operators, real estate developers, and private equity funds.

After India, Japan recorded the second-highest data centers (DC) capacity with 892 MW, followed by Australia at 773 MW, Singapore at 718 MW, Hong Kong at 613 MW and Korea at 531 MW. More here