Welcome to Daily Banking Digest, your premier source for the latest news and insights on April 04, 2024, focusing on banking, the economy, and finance. Our platform offers a comprehensive overview of the day’s most critical financial stories, market trends, and economic developments. Whether you’re a professional in the financial sector, an investor monitoring market movement, or someone interested in staying informed about the economic landscape, Daily Banking Digest provides reliable, up-to-date information.

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Solopreneurs Account for a Minority of Unicorn Startups in the Past Decade

In the past decade, solopreneurs have played a significant role in India’s unicorn ecosystem, with 22% of unicorns being founded by individuals. Bengaluru has emerged as the preferred location for solopreneur-led unicorns, particularly in the fintech sector. While co-founded unicorns tend to have higher revenue and funding, solopreneurs have also achieved notable success, including IPO launches. The decision between solopreneurship and co-founding involves weighing factors such as control, equity dilution, and access to resources.

Key Points:

Solopreneur-Led Unicorns – 22% of Indian unicorns in the last decade were founded by solopreneurs. – 40% of solopreneur-led unicorns are in the fintech sector. – Bengaluru is the most preferred headquarters location for solopreneur-led unicorns.

Co-Founded Unicorns – Indian unicorns typically have two founders. – Co-founded unicorns have higher average revenue than solo founder unicorns. – Co-founder-led companies tend to raise more funding than solopreneurs.

Central Tendencies – Variation in central tendencies indicates that investors prefer co-founder-led companies. – Co-founders may have access to a larger network of contacts.

Solopreneurship vs. Co-Founding – Solopreneurs have control over decisions and avoid equity dilution. – Solopreneurs may experience loneliness and limited resources. – Co-founders provide support, ideas, and an extensive network.

India’s Economic Growth Projected at 7.5% in 2024 by World Bank

The World Bank projects India’s economy to grow by 7.5% in 2024, driven by robust growth in services and industry. South Asia is expected to remain the fastest-growing region globally, with growth projected at 6.1% in 2025. However, fragile fiscal positions and climate shocks pose challenges to sustained growth.

Key Points

India’s Economic Growth – Projected to grow by 7.5% in 2024, revised up by 1.2% from previous estimates. – Growth driven by strong performance in services and industry. – Inflation has remained within the RBI’s target range, and the policy rate has been unchanged since February 2023. – Financial conditions remain accommodative, with domestic credit issuance growing at a fast pace. – Foreign reserves have increased, providing import cover for about 11 months.

South Asia’s Economic Outlook – Overall growth projected at 6.0% in 2024, driven by India’s growth and recoveries in Pakistan and Sri Lanka. – South Asia remains the fastest-growing region globally, with growth expected to reach 6.1% in 2025.

Challenges to Growth – Fragile fiscal positions in some countries. – Increasing climate shocks.

Recommendations for Sustainable Growth – Policies to boost private investment. – Strengthen employment growth. – Capitalize on the demographic dividend by increasing labor force participation.

Breaking the Oligopoly of Credit Rating Agencies: A Call from the CEA

The Chief Economic Advisor of India, V Anantha Nageswaran, criticizes the oligopoly of the three global rating agencies (Moody’s, Standard & Poor, and Fitch) and calls for their dismantling. He highlights concerns about the agencies’ methodology, including the use of subjective qualitative parameters and questionable sources of information. Nageswaran also questions the fairness of comparing developing countries’ institutions to those of developed countries, given the different stages of development.

Key Points:

Methodology: – Rating agencies use qualitative parameters that introduce subjectivity. – Sources of information for rating agencies, such as the World Bank’s World Governance Index, are problematic and opaque. – The WGI does not consider the stage of development of countries, leading to unfair comparisons.

Missed Opportunity: – The 2008 financial meltdown exposed the flaws in credit rating agencies, but the opportunity to reform the sector was missed.

India Employment Report: – The ILO’s India Employment Report 2024 presents a bleak picture of employment, but it fails to show the progress made over time. – Unemployment declined in India before the pandemic. – The pandemic caused a shift to agricultural jobs, but this trend is reversing as manufacturing improves. – India created 77 million non-agricultural jobs annually between 2014 and 2022, compared to 66 million in the previous decade.

Indian Rupee Declines Marginally, Closing at 83.45 Against US Dollar

The Indian rupee depreciated against the US dollar on Wednesday due to rising crude oil prices and persistent foreign fund outflows. The rupee closed at 83.45, a loss of 3 paise from its previous close. The muted trend in domestic equities also contributed to the decline in investor sentiment.

Key Points:

Depreciation of the Rupee: – The rupee depreciated by 3 paise to close at 83.45 against the US dollar. – The depreciation was attributed to elevated crude oil prices and foreign fund outflows.

Factors Influencing the Rupee: – Rising crude oil prices: Brent crude futures rose to ₹89.21 per barrel, threatening India’s current account dynamics. – Foreign fund outflows: FIIs were net sellers in the capital markets, offloading shares worth Rs 1,622.69 crore. – Muted domestic equities: The Sensex and Nifty declined, dampening investor sentiment.

Impact of Crude Oil Prices: – Rising crude oil prices will negatively impact the rupee by widening the current account deficit.

Market Outlook: – The rupee is expected to trade with a negative bias due to a recovery in the US dollar and risk aversion in global markets. – Geopolitical tensions and rising crude oil prices may further pressure the rupee. – Strength in domestic markets and intervention by the RBI could support the rupee at lower levels.

Suryoday Small Finance Bank’s Gross Advances Surge by 41% in Q4FY24

Key Points:

Gross Advances:

• Increased by 41% y-o-y to ₹8,650 crore as of March-end 2024.
• Loan disbursements up 39% y-o-y to Rs 2,340 crore in the fourth quarter.

Total Deposits:

• Grew by 50% y-o-y to ₹7,775 crore as of March-end 2024.
• Retail deposits surged by 63% y-o-y to ₹6,149 crore.
• Bulk deposits increased by 14% y-o-y to ₹1,626 crore.

CASA Deposits:

• Proportion of CASA deposits rose to 20.1% of total deposits from 17.1%.

Gross Non-Performing Assets:

• Declined to 2.8% of gross advances from 3.1% a year ago.

Rajnath Singh Advocates ‘Disengagement and De-escalation’ for Resolving China Border Disputes

India and China continue to negotiate border disputes, with India emphasizing the need for “disengagement and de-escalation.” Despite recent talks, China has not explicitly endorsed this approach. Defense Minister Rajnath Singh expressed confidence in the troops and emphasized the importance of doctrinal changes to prepare for future challenges.

Key Points:

Border Talks: – India and China are still negotiating two friction points along the LAC. – China has not explicitly agreed to “disengagement and de-escalation” as a solution.

Defense Minister’s Address: – Rajnath Singh expressed confidence in the troops guarding the northern borders. – He emphasized the importance of disengagement and de-escalation as the way forward. – He praised the Border Road Organisation for improving road communication in border areas.

Western Borders: – Singh appreciated the Army’s response to cross-border terrorism from Pakistan. – He highlighted the synergy between CAPF/Police forces and the Army in tackling terrorism in Jammu and Kashmir.

Doctrinal Changes: – Singh suggested making doctrinal changes to prepare the Armed Forces for the future. – He emphasized the importance of defense diplomacy, indigenisation, information warfare, defense infrastructure, and force modernization.

Government Approves Export of 1000 Tonnes of Kala Namak Rice, Boosting Income for Uttar Pradesh Farmers

The Indian government has authorized the export of 1,000 tonnes of Kala namak raw rice, a premium non-basmati variety from Uttar Pradesh, through designated ports and land customs stations. The export is permitted with certification from the Uttar Pradesh government and is subject to specific conditions.

Key Points:

Export Authorization: – Export of 1,000 tonnes of Kala namak raw rice allowed.

Export Destinations: – Varanasi Air Cargo – Jawaharlal Nehru Custom House (JNCH) at Nhava Sheva – Customs House Kandla – Land Customs Station (LCS) Nepalganj – LCS Sonauli – LCS Barhni

Export Conditions: – Exporter must obtain a certificate from the Director, Agriculture Marketing & Foreign Trade, Lucknow, Uttar Pradesh.

Export History: – 21 tonnes of Kala namak exported in 2021-22.

Kala namak Rice: – Black husk and strong fragrance. – Considered a gift from Lord Buddha. – Geographical Indication (GI) tag for 11 districts in Uttar Pradesh.

Government Initiatives: – Release of Pusa Narendra Kalanamak 1638 and 1652 varieties.

Expert Opinion: – Government should establish standards for other GI and specialty rice varieties. – Labeling rice as specialty, aromatic, premium, and common could enhance export realization and boost farm income.

Ministry of Home Affairs Revokes FCRA Licenses of Notable Non-Governmental Organizations

The Union Home Ministry has revoked the FCRA licenses of five prominent NGOs for alleged religious conversion, foreign grant violations, and other offenses. The NGOs include CNI Synodical Board of Social Service, Voluntary Health Association of India, Indo-Global Social Service Society, Church Auxiliary for Social Action, and Evangelical Fellowship of India.

Key Points:

1. FCRA License Cancellation: – The Union Home Ministry has canceled the FCRA licenses of five NGOs for alleged involvement in religious conversion and foreign grant violations.

2. NGOs Involved: – The NGOs affected by the cancellation include: – CNI Synodical Board of Social Service (CNI-SBSS) – Voluntary Health Association of India (VHAI) – Indo-Global Social Service Society (IGSSS) – Church Auxiliary for Social Action (CASA) – Evangelical Fellowship of India (EFOI)

3. Allegations: – The NGOs were accused of religious conversion, land grab, and misuse of foreign grants.

4. Scrutiny and Extension: – The Home Ministry conducted a scrutiny of NGOs until March 31, 2024. – Several NGOs, including those listed above, were granted a six-month extension in September 2023.

5. License Revocation: – The licenses were canceled on March 30, 2024. – The NGOs will not be able to receive or utilize foreign contributions until their certificates are renewed.

6. Foreign Funding: – The NGOs received foreign donations from various countries, including Germany, the United States, Sweden, France, and the United Kingdom.

7. Previous Revocations: – In December 2023, the Home Ministry revoked the FCRA license of Churches of North India (CNI). – Over 100 NGOs have lost their FCRA licenses in the past year for alleged misuse of foreign grants.

RBI Likely to Maintain Interest Rates Amidst India’s Balanced Economic Growth

India’s central bank is expected to maintain interest rates at 6.50% this week and likely until July due to strong economic growth and moderating inflation. The RBI has ample room to keep rates on hold as the economy grows faster than expected and inflation trends lower. However, food inflation remains a risk, and the RBI is unlikely to ease policy before inflation returns to its 4% target.

Key Points:

Economic Growth: – India’s economy grew a stellar 8.4% in the fourth quarter of 2023, the fastest among major economies. – Growth is expected to remain robust, but not at its full potential.

Inflation: – Retail prices in February rose at a faster-than-expected pace of 5.09% due to elevated food prices. – Headline inflation remains above the RBI’s 4% target, but core inflation has fallen below 4%.

Monetary Policy: – The RBI is widely expected to keep rates unchanged on Friday, for the seventh consecutive meeting. – The RBI has ample room to remain on hold in the near term. – The current monetary policy stance is ‘withdrawal of accommodation’, signaling that policy will likely remain tight.

Government Pressure: – The RBI’s monetary policy setting is independent, but governments have exerted pressure in the past for easier lending policies. – The RBI may prefer to stay on the sidelines to prevent concerns over its independence.

Monetary Policy Committee Begins Deliberations; Decision Expected Friday

The Reserve Bank of India’s Monetary Policy Committee (MPC) is expected to maintain the key interest rate unchanged at its upcoming meeting, focusing on controlling inflation while economic growth concerns ease. The decision will be announced on April 5th.

Key Points:

• MPC Meeting: The MPC will hold a three-day meeting to discuss monetary policy.
• Interest Rate: Experts predict the MPC will keep the repo rate at 6.5%, unchanged from the last six bi-monthly policies.
• Inflation Control: The MPC will prioritize controlling inflation, which remains close to the upper band of the RBI’s target.
• Economic Growth: Concerns over economic growth are abating, with India posting an 8.4% growth rate in the December quarter.
• Global Cues: The MPC may consider actions taken by central banks in major economies, such as the US and UK, which are in wait-and-watch mode on interest rate cuts.
• SBI’s View: The State Bank of India believes the MPC should continue to withdraw accommodation, but predicts the first rate cut in Q3FY25.
• Housing Market: A rate cut is expected to boost demand for housing and enhance homebuyer sentiment.
• MPC Members: The MPC is headed by Governor Shaktikanta Das and includes Shashanka Bhide, Ashima Goyal, Jayanth R Varma, Rajiv Ranjan, and Michael Debabrata Patra.
• Inflation Target: The RBI is mandated to maintain retail inflation at 4% with a margin of 2% on either side.
• Retail Inflation: Retail inflation was 5.1% in February.

Government Permits Additional Onion Exports to UAE Post-Ban

The Indian government has approved the export of an additional 10,000 tonnes of onions to the UAE, bringing the total approved exports to 79,150 tonnes since the ban was imposed in December 2023. The ban was implemented due to concerns about global supply and reduced domestic production.

Key Points:

Export Approval: – Government has approved the export of an additional 10,000 tonnes of onions to the UAE. – Total approved exports since the ban: 79,150 tonnes.

Export Ban Justification: – Global supply scenario and dry spell under El Niño reduced onion output in India.

Previous Export Approvals: – 550 tonnes to Bhutan – 3,000 tonnes to Bahrain – 1,200 tonnes to Mauritius – 50,000 tonnes to Bangladesh – 24,400 tonnes to the UAE

Export Timeframe: – March 1 notification: Ceiling of 3,600 tonnes per quarter to UAE. – April 2 notification: No such stipulation, leaving timeframe unclear.

Government Intervention: – Centre to buy 5 lakh tonnes of onion directly from farmers to cushion the export ban.

Onion Production: – Rabi onion production expected to dip 18% to 193 lakh tonnes in 2023-24. – Rabi onion contributes 72-75% of annual production and has better shelf-life.

ITC’s ‘Krishi Mitra’: Empowering Farmers with Microsoft Copilot

ITC has developed “Krishi Mitra,” an AI-powered application that leverages Microsoft Copilot templates to provide farmers with personalized and timely information. The app aims to empower farmers with knowledge to enhance productivity, profitability, and climate resilience.

Key Points:

Application: – Krishi Mitra is an AI copilot application built using Microsoft Copilot templates. – It is designed to serve 300,000 farmers in India during its pilot phase, with an anticipated user base of 10 million.

Functionality: – Farmers can ask questions using natural language via a smartphone. – The app provides detailed, personalized responses in the user’s local language. – It offers information on weather conditions, market locations, pricing, and other relevant details.

Support for Farmers: – Krishi Mitra supports various aspects of farming, including crop management, pest control, soil health, water conservation, weather forecasting, market linkages, and government programs. – It provides tailored insights to help farmers work more efficiently and profitably.

Collaboration: – Microsoft collaborated with ITC, Bayer, and Headstorm at World Agri-Tech 2024 to showcase new solutions and announcements that address the needs of farmers and agronomists.

Delaying PPF Investment Beyond April 5: The Cost in Lost Interest

Individuals investing in Public Provident Fund (PPF) accounts for the 2024-25 financial year should ensure that their funds are credited before April 5 to maximize interest earnings. PPF interest is calculated based on the lowest balance between the 5th and end of each month, so deposits made before April 5 earn interest for the entire month.

Key Points:

1. Deposit Deadline for Maximum Interest: – PPF deposits made before April 5 or the 5th of every month earn higher interest than those made after.

2. Interest Calculation: – PPF interest is calculated monthly but credited annually. – Interest is based on the lowest balance between the 5th and end of each month.

3. Interest Rate: – PPF currently offers 7.1% interest rate per annum for the April-June 2024 quarter.

4. Interest Loss for Late Deposits: – A lumpsum deposit made after April 5 loses Rs 23,188 in interest over 15 years. – Monthly deposits made after the 5th of each month lose Rs 22,475 in interest over 15 years.

5. Tax Exemption: – Interest earned from PPF accounts is tax-exempt.

6. Maximum Investment Limit: – Individuals can invest a maximum of Rs 1.5 lakh in PPF accounts per financial year.

CGHS Beneficiary ID Linking with ABHA ID: Mandatory from April 1, 2024 for Central Government Employees

The Central Government Health Scheme (CGHS) has made it mandatory for central government employees to link their CGHS beneficiary ID with their Ayushman Bharat Health Account (ABHA) ID by April 1, 2024. This move aims to streamline healthcare access and record-keeping for government employees.

Key Points:

What is Ayushman Bharat Health Account ID (ABHA ID)?

• A unique 14-digit identification number that allows patients to store and access their medical records online.
• Eliminates the need for multiple IDs and physical documents.

Benefits of ABHA ID:

• Less paperwork and easy access to medical records online.
• Patients have full control over their health records and can choose what to share with healthcare providers.
• Data is securely shared through a Health information exchange consent management system.

How to Link CGHS Beneficiary ID with ABHA ID:

For beneficiaries without an ABHA number:

1. Visit the CGHS website and log in.
2. Click on “Create/Link ABHA ID.”
3. Enter Aadhaar number and consent.
4. Verify OTP.
5. Print ABHA card.

For beneficiaries with an existing ABHA number:

1. Log in to the CGHS website.
2. Click on “Link Using ABHA Number.”
3. Enter ABHA number and consent.
4. Verify OTP.
5. Print ABHA card.

CBIC Reports Substantial Surplus in Indirect Tax Collections for FY24

The Central Board of Indirect Taxes and Customs (CBIC) has reported that indirect tax collections for FY24 have surpassed the revised estimates by a significant margin, driven by record GST revenue. The gross GST mop-up for the year reached Rs 20.18 trillion, exceeding the previous year’s collection by 11.7%.

Key Points:

Indirect Tax Collection: – Indirect tax collections exceeded the revised estimates of Rs 14.84 trillion by a “handsome margin.” – GST mop-up reached a record high of Rs 20.18 trillion, surpassing the previous year’s collection by 11.7%. – The revised estimates for central GST, excise duty, and customs were Rs 9.57 trillion, Rs 3.08 trillion, and Rs 2.19 trillion, respectively.

GST Performance: – GST collections remained high throughout the fiscal year, with record collections of Rs 1.87 trillion in April 2023 and Rs 1.78 trillion in March 2024.

Economic Growth: – Tax collection reflects economic activity, and India is projected to grow at 7.6% in 2023-24. – Domestic consumption and government capex are driving the country’s economic momentum. – Various agencies have revised India’s growth estimates for FY24 closer to 8%.

Growth Forecasts: – SBI Research and Moody’s expect GDP growth for FY24 to be 8%. – Fitch and Barclays raised their growth forecast to 7.8%.

Adani Green Emerges as India’s Renewable Energy Leader with 10,000 MW Capacity

Adani Green Energy Ltd (AGEL) has achieved a significant milestone by commissioning 2,000 MW of solar capacity at the Khavda solar park in Gujarat, making it the first company in India to surpass 10,000 MW of renewable energy capacity. AGEL’s operational portfolio now stands at 10,934 MW, the largest in the country.

Key Points:

Capacity: – AGEL has commissioned 2,000 MW of solar capacity at the Khavda solar park. – The company’s operating portfolio now stands at 10,934 MW, including 7,393 MW solar, 1,401 MW wind, and 2,140 MW wind-solar hybrid capacity.

Growth: – AGEL has brought 2,848 MW of renewables capacity on stream in FY24. – The company aims to achieve 45 GW of renewable energy by 2030.

Impact: – AGEL’s 10,934 MW operational portfolio will power over 5.8 million homes and avoid approximately 21 million tonnes of CO2 emissions annually.

Khavda Solar Park: – The Khavda solar park is built on 538 square kilometers, making it five times the size of Paris and almost as large as Mumbai. – AGEL has operationalized 2,000 MW of solar capacity at Khavda within 12 months of commencing work.

Sustainability: – AGEL’s operating portfolio is certified ‘single-use plastic free’, ‘zero waste-to-landfill’, and ‘water positive for plants with more than 200 MW capacity’.

Lithium Producers Reduce Production and Expansion Amidst Price Decline

Lithium prices are expected to recover moderately in 2024 and 2025 after a significant decline in 2023. The drop in prices has led to production cuts and cost-saving measures by global lithium producers. Despite short-term volatility, the long-term outlook for lithium remains positive due to its crucial role in decarbonization efforts, particularly in the electric vehicle sector.

Key Points

1. Price Forecast – Lithium spodumene price is forecast to rise to $1,360 per tonne by 2026, before falling to $1,090 by 2029.

2. Production Cuts – Global lithium producers have reduced production and scaled back expansion plans in response to low prices.

3. Price Decline – Lithium carbonate prices have fallen by 50% year-on-year, driven by increased supply and a slowdown in electric vehicle sales.

4. Supply and Demand – A wave of investment in lithium production in 2022 led to a sharp rise in global supply, while demand was weaker than expected due to slower EV adoption.

5. Goldman Sachs Outlook – Goldman Sachs maintains a pessimistic outlook for lithium prices in 2024, projecting further declines due to oversupply.

6. S&P Global Forecast – S&P Global predicts that lithium prices may start recovering in 2025 as the surplus gets reduced.

7. Long-Term Outlook – Despite short-term volatility, the long-term forecast for lithium remains positive due to its importance in decarbonization efforts.

8. EV Demand – Demand from electric vehicles is expected to drive the bulk of lithium demand in the future.

9. European EV Market – The growth rate of the European new energy vehicle industry is expected to slow down in 2024 due to subsidy reductions.

10. Next Bull Market – The next bull market for lithium prices may not occur before 2025.

KisanKraft Unveils 12 Direct-Seeded Rice Varieties for Multi-Location Trials in 14 States

KisanKraft, an agri-firm, has developed 12 new rice varieties suitable for the direct-seeded rice (DSR) cultivation method, which uses less water. The company aims to commercialize these varieties in 2025 and has planned multi-location trials across 14 major rice-growing states. The DSR method offers advantages such as reduced water consumption, labor requirements, and cultivation costs.

Key Points

1. New Rice Varieties for DSR Cultivation – KisanKraft has developed 12 new rice varieties specifically for the DSR method. – These varieties are a mix of fine grain, medium slender, and bold varieties. – They offer yields comparable to high-yielding varieties, ranging from 22 to 25 quintals per acre.

2. Water Conservation with DSR – The DSR method significantly reduces water consumption compared to traditional paddy cultivation. – It eliminates the need for puddling and transplanting, reducing water use by 30% immediately. – Overall, water consumption can be reduced by more than half under the DSR method.

3. Multi-Location Trials and Commercialization – KisanKraft has conducted trials of the DSR varieties at three locations in Karnataka. – Multi-location trials are planned across 40 locations in 14 major rice-growing states in the 2024 kharif season. – The company aims to commercialize these varieties in the 2025 kharif season.

4. Other Research and Development – KisanKraft is also working on developing vegetable hybrids, including tomato, cucumber, gourds, and capsicum. – The company expects to commercialize some of these vegetable hybrids next year.

Coal Output from Captive and Commercial Mines Hits Record High in FY24

India’s coal production witnessed a significant increase in the last financial year (FY24), with a 27% rise in cumulative output to a record 147.2 million tonnes (MT). The dispatch of coal also surged by 30% to 143 MT. The growth was driven by increased production from captive mines, particularly in the power sector, and a substantial rise in output from commercial mines.

Key Points:

Total Output: – Total coal production reached 147.2 MT in FY24. – Power sector captive mines produced 121.3 MT, a 19% increase. – Non-power captive mines produced 8.4 MT, a 63% increase. – Commercial mines produced 17.5 MT, a 93% increase.

Operational Mines: – 58 coal mines were in production as of March 2024, up from 49 a year ago. – 9 new coal mines commenced production in FY24.

Auctioned Coal Mines: – 104 coal mines with a Peak Rated Capacity (PRC) of 226.20 MTPA have been auctioned. – 80 captive mines and 9 commercial mines with a PRC of 24.30 MTPA have commenced production.

Players in Commercial Coal Mines: – Jindal Steel and Power – Sarda Energy and Mineral – Boulder Stone Mart – Aurobindo Realty and Infrastructure

RBI Initiates Fiscal Year 2025 with Multiple Variable Rate Reverse Repo Auctions

The Reserve Bank of India (RBI) has initiated liquidity management operations in the new financial year by conducting variable rate reverse repo (VRRR) auctions to absorb excess liquidity from the banking system. The RBI’s actions aim to align liquidity conditions with its “withdrawal of accommodation” monetary policy stance.

Key Points:

Liquidity Management: – RBI has conducted four VRRR auctions to withdraw surplus liquidity. – The liquidity surplus stood at ₹1.47 lakh crore as of April 2.

VRRR Auctions: – The first two-day VRRR auction received a lukewarm response, with banks deploying only ₹2,015 crore. – The second two-day VRRR auction received a better response, with banks placing funds amounting to ₹22,365 crore. – The first three-day VRRR auction received funds amounting to ₹32,105 crore. – The second three-day VRRR auction received funds amounting to ₹21,325 crore.

RBI’s Liquidity Management Strategy: – RBI’s liquidity management has been active since the February monetary policy committee (MPC) meeting. – The RBI aims to align the weighted average call rate (WACR) with the repo rate. – Autonomous factors, such as government spending and maturity of RBI swaps, have also injected liquidity.

Policy Stance: – CareEdge Ratings expects the RBI to maintain its “withdrawal of accommodation” stance in the April MPC meeting. – The RBI will conduct an overnight VRRR auction for ₹1-lakh crore on Thursday.

India Targets Seafood Exports Worth Rs 1 Lakh Crore in Two Years

India aims to boost seafood exports to Rs 1 lakh crore within two years by enhancing processing capacity and focusing on higher-value products. The country is a major seafood supplier, particularly frozen shrimp, to the US and adheres to strict regulatory and safety standards.

Key Points:

Export Target: – India aims to increase seafood exports to Rs 1 lakh crore in the next two years.

Processing Capacity: – India plans to increase its processing capacity to support the export target.

Value-Added Products: – The focus will shift to higher value-added seafood products.

US Market Share: – India’s shrimp exports have increased their share of the US market from 21% in FY15 to 40% in 2022-23.

Regulatory Compliance: – India’s seafood units are regularly inspected and monitored by government agencies. – All units are registered with MPEDA, FSSAI, and the Export Inspection Council.

Quality Standards: – Indian seafood units follow world-class quality and standards. – Major export destinations are developed nations.

Processing in India: – India aims to process shrimp locally to capture higher export value.

Russia Asserts No Payment Issues for Oil Exports to India

Russian oil shipments to India continue uninterrupted, and payment issues that caused delays late last year have been resolved. The Russian Foreign Ministry emphasizes the importance of using national currencies for payments to reduce dependence on Western financial systems.

Key Points:

• Shipments Uninterrupted: Russian oil shipments to India are proceeding without disruptions.
• Payment Issues Resolved: Payment problems that delayed shipments in late 2022 have been addressed.
• National Currency Payments: Russia prioritizes payments in national currencies to avoid reliance on Western financial systems.

NHAI’s Planned Capital Expenditure for FY24 Surges by 20% to Rs 2.07 Trillion

The National Highways Authority of India (NHAI) achieved significant milestones in the financial year 2023-24 (FY24), including a 20% increase in capital expenditure and construction of 6,644 km of national highways. The government has allocated increased capital expenditure to alleviate debt burdens on NHAI and railways, and NHAI has successfully monetized highway assets worth Rs 40,314 crore through various models.

Key Points:

Capital Expenditure: – NHAI executed capital expenditure of Rs 2.07 trillion in FY24, a 20% increase from FY22 and FY23.

Highway Construction: – NHAI constructed 6,644 km of national highways in FY24, exceeding the target of 6,544 km. – Construction increased by 20% compared to FY23 and 53% compared to FY22.

Government Support: – The government has allocated increased capital expenditure to reduce the reliance on debt for road and rail projects. – The Ministry of Road Transport and Highways has been allocated Rs 2.78 trillion in FY25.

Highway Monetization: – NHAI monetized highway assets worth Rs 40,314 crore in FY24 through TOT, InvIT, and toll securitization models. – NHAI plans to secure debt for expressway projects on a standalone basis without a comfort letter from NHAI.

TOT Bundles: – NHAI awarded four TOT bundles in FY24 with a combined value of Rs 15,968 crore. – The success rate in TOT mode was 100%, and LoAs were issued within one day of financial bid opening.

InvIT and Toll Securitization: – NHAI raised Rs 15,700 crore through InvIT mode and Rs 8,646 crore through toll securitization in FY24.

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