Data recap: GDP data, RBI gains, ONGC plans, and more

Consumption Story

The Indian economy grew 7.2% in 2022-23, beating analysts’ estimates by 20 basis points, thanks to better-than-expected growth in agriculture, construction and the services sector. On the expenditure side, private final consumption expenditure grew 7.5%. While concerns over the revival of private consumption remain, its share in GDP has risen in the past few years. But the change for FY23 was only marginal from 58.3% to 58.5% , suggesting a fall in post-pandemic pent-up demand.

Falling Behind

The Indian insurance industry has grown hugely in the past few years, recording an average annual premium growth of 11.3% between 2013-14 and 2021-22. But its stock market performance has been below par. Six companies that have been listed for at least five years has trailed BSE Sensex in five-year returns, a howindialives.com analysis showed. As against 12.1% return by BSE Sensex, only SBI Life came close at 12%, followed distantly by ICICI Lombard at 8.6%.

Green Investment

₹1 trillion: That's the amount Oil and Natural Gas Corp. will spend by 2030 to reduce its carbon footprint as part of achieving net-zero emissions. The company is looking to cut emissions from Scope 1 sources such as fuel used in its operation and Scope 2 sources such as electricity purchases. The company aims to achieve net zero by 2046, six years later than Bharat Petroleum Corp. Ltd and Oil India.

Looming Threat?

The possibility of El Nino’s effect on rainfall has led to worries about food production around the world. While the India Meteorological Department has reiterated its forecast of normal monsoon at 96% of long period average, it is at the lower end of the normal band of 96-104. Below normal monsoon has often resulted in decline in cereal production, a Mint analysis showed. At a time when cereal inflation is still in double digits, a possible decline in production may make matters worse.

Flying High

Several small airports in the country are seeing a dramatic rise in passengers due to greater connectivity and rise in post-pandemic travel. The number of airports recording air passenger traffic up to 100,000 rose to 52 in 2022-23 from 2017-18, Mint reported. Darbhanga airport, which opened in 2020 under the government’s Ude Desh ka Aam Nagrik scheme saw over 600,000 passengers in FY23. The number of active domestic airports has gone up to 128 from 86 during the period.

Forex Gains

₹2.35 trillion: That's the income the Reserve Bank of India earned in 2022-23, registering a growth of 47% on the back of gains from foreign exchange transactions. The central bank sold currency worth $213 billion, twice more than the previous year, against the backdrop of a sharp depreciation in rupee. The rise in income allowed the RBI to transfer a larger-than-budgeted dividend of ₹87,416 crore to the government, which could offset the impact of higher subsidy payout.

Attrition Issue

Seven Australian universities have reportedly banned or restricted the intake of Indian students from certain states, citing attrition. After securing admission in universities in 2022, many Indian students allegedly dropped out and moved to cheaper vocational institutes. Outbound students to Australia surged in FY23, with 52,000 getting student visas in the first six months alone, Mint reported. This was much higher than 42,627 student visas granted in the whole of FY22.

Chart of the Week: IT Woes

Amid waning of pandemic-led demand and beginning of global slowdown, the share of India’s IT sector in overall corporate profit pool dropped to a 21-quarter low of 9.7% in January-March, underlining the headwinds being faced by the industry.

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