News in numbers | Indian economy to grow at 7.2% in FY16: OECD4 min read . Updated: 10 Nov 2015, 01:23 PM IST
Railways awards Rs40,000 crore of projects in Bihar to GE, Alstom; Jet Airways to buy 75 fuel-efficient Boeings in its biggest order
What is it? The growth estimate for the Indian economy in the current financial year by the Organisation for Economic Cooperation and Development (OECD), a Paris-based economic organization
Why is it important? This has remain unchanged from its September forecast. However, OECD has said despite having relatively better growth prospects, the delay in passing key structural reforms and the increase in bad loans are the main impediments. It remains to be seen if Parliament would be able to pass key bills such as the GST Bill, Insurance Laws (Amendment) Bill, 2008 the Coal Regulatory Authority Bill, 2013 and the Lokpal and Lokayuktas Bill, 2011 as the BJP needs to rely on the Congress in the Rajya Sabha for its support to push through these bills.
Tell me more: OECD estimates for India’s economic growth is 7.3% in 2016-17 and 7.4% in 2017-18.
₹ 40,000 crore
What is it? The size of two contracts the Indian Railways has awarded to US-based General Electric Co. (GE), and French multinational Alstom for setting up diesel and electric locomotive factories in Bihar. Only the first project was officially announced on Monday.
Why is it important? The first big foreign direct investment in the railways sector in India. This would bolster indigenous production backed by the latest technology, help the Indian Railways improve its infrastructure and provide employment opportunities by giving rise to ancillary industries. Under the agreement, GE and Alstom would supply 1,000 diesel locomotives and 800 electric locomotives in 10 years. Railways had 5,633 diesel and 4,568 electric locomotives at the end of March 2014.
Tell me more: Both projects were approved in 2007 by the then railways minister Lalu Prasad Yadav, but were mired in controversy and bureaucratic red tape. The Indian Railways (26% stake) and the foreign companies (74% stake) would form joint venture companies to construct and run the diesel and electric locomotive factories.
What is it? The central and excise duties’ components in the retail price of a litre of petrol at ₹ 60.7 in Delhi. This is 6.45 higher than the cost of producing a litre of petrol at the refineries based on the average cost of gasoline and the foreign exchange rate in the second half of October.
Why is it important? It shows the relative inflexibility of taxes as crude prices move up and down. To protect tax revenue as oil prices dropped sharply, the government moved away from ad-valorem tax (tax as percentage of price) to a tax per litre. This means customers will not fully benefit from a fall in oil prices. Both central and state governments are expected to earn around 80,000 crore by taxing petroleum products this fiscal.
Tell me more: Central government hiked excise duty for the fifth time in a year. The previous four hikes were made between November 2014 and January 2015 and resulted in additional revenue of ₹ 20,000 crore for the government in the 2014-15.
What is it? The value of the order for 75 Boeing 737 Max 8 aircraft placed by Jet Airways at list price, though aircraft manufacturers usually sell aircraft below the list price.
Why is it important? This is the largest ever aircraft deal for the Naresh Goyal-founded airline and large orders usually get a good discount. This deal is seen to be good for Jet Airways in terms of upping its game in the fiercely competitive industry, though the delivery of the aircraft would begin from mid-2018. The new aircraft is said to be fuel-efficient, consuming 20% less fuel than the first Next-Generation 737s and has the lowest operating costs in its class at 8% per seat less than its nearest competitor, according to Boeing. This is significant because jet fuel accounts for 45-55% of an airline’s revenue in India.
Tell me more: Jet Airways currently has 115 aircraft with an average age of 6.04 years. The second biggest airline (in terms of passengers carried) posted its biggest standalone quarterly profit in the first quarter of 2015-16 for the first time in nearly nine years.
What is it? Number of people in India who would be endangered if the global temperature rises by 4°C, according to a report by Climate Central, a US-based research organisation. This is about 4.4% of India’s current population.
Why is it important? Carbon emissions would cause warming, which in turn, would lead to rise in sea levels that could submerge land, causing danger to the inhabitants. Though India is the world’s third largest greenhouse gas emitter, the government says its historical cumulative emission is below 3% currently. All countries, especially advanced economies, have to keep up their commitments of keeping the earth’s average temperature from rising beyond 2°C, a widely accepted benchmark for preventing further damage due to global warming.
Tell me more: A 4°C rise in temperature could submerge land inhabited by 470-760 million people. However, if countries are able to contain carbon emissions resulting in 2°C warming, then the number of people who could be affected could be brought down to 130 million.
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