News Brief
Swarajya Staff
Jan 01, 2025, 09:06 AM | Updated 09:06 AM IST
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Capex Falls 12 Per Cent In April-November
India's capital expenditure fell by 12 per cent during the April-November period, showing a slower spending pace, according to the Controller General of Accounts (CGA). The government aimed to spend Rs 11.11 lakh crore on capital expenditure in FY2023-24, but actual expenditure for the period stood at Rs 5.13 lakh crore, compared to Rs 5.85 lakh crore in the same period last year.
This slowdown is attributed to factors like the Model Code of Conduct during the general elections and the impact of the monsoon on infrastructure investment.
Despite a 21 percent increase in capital expenditure in November compared to October, experts believe it will be challenging to meet the full year's budget target. The fiscal deficit during this period was 52.5 percent of the FY25 target, showing a slight decrease in absolute terms but rising as a share of the budget estimate.
Gambhir Delivers A Blunt Dressing Room Speech
India's head coach Gautam Gambhir delivered a blunt dressing room speech on Monday (30 December) after the team collapsed to 195 all out in 20.4 overs, conceding the Melbourne Test to Australia. Gambhir, who became coach in July, expressed frustration over players prioritising their "natural game" over team strategies and warned of consequences for those failing to align with his plans.
He revealed he had allowed the team freedom for six months but would now enforce a strict approach to ensure discipline and accountability. Highlighting the team's batting struggles since the Bangladesh series in September, Gambhir emphasised the need to execute pre-discussed strategies instead of improvising recklessly. With the Border-Gavaskar Trophy slipping away at 1-2 and the World Test Championship final in jeopardy, Gambhir has made it clear he won’t tolerate further lapses.
India's Coffee Exports Cross $1 Billion Mark For The First Time
India, traditionally a tea exporter, has achieved a milestone in coffee exports, crossing the $1 billion mark for the first time by November in FY24, according to CMIE data. Coffee exports surged 29 per cent to $1,146.9 million between April and November, compared to $803.8 million in the same period last year, driven by rising Robusta prices and stocking ahead of the EU’s new deforestation regulation.
Robusta coffee, accounting for over 40 per cent of global production, saw prices peak at $4,667 per metric ton in June on the London ICE Futures Europe market, a 63 per cent jump this year due to supply issues in Vietnam and Brazil. In contrast, Indian tea exports showed minimal growth despite expectations of gaining markets after Sri Lanka’s economic crisis. A government official highlighted that Indian coffee successfully captured the premium export segment, a feat not replicated with tea.
Other Developments
Bank Loan Growth Slows For Fifth Straight Month
Indian banks experienced slower loan growth for the fifth consecutive month in November, with credit increasing by 11.8 per cent year-on-year. This is a significant slowdown compared to the 16.5 per cent growth in November 2023, excluding the impact of HDFC Bank's merger with its parent company. Including the merger, loan growth stood at 10.6 per cent, a sharp decline from nearly 21 per cent in the previous year. The Reserve Bank of India’s actions to curb "exuberant" lending, especially in unsecured and personal loans, have contributed to this slowdown. Despite this, banks have consistently reported double-digit growth in loans, driven by strong retail demand and urban consumption.
GCCs Outpace IT in Job Additions And Market Cap In 2024
In 2024, Global Capability Centres (GCCs) surpassed the traditional IT sector in both job creation and market capitalisation. India, now known as the GCC capital of the world, has seen a surge with over 300,000 new jobs and nearly $20 billion in market value added this year. In contrast, the IT sector has struggled, adding less than 100,000 employees and just $6 billion in market cap amid a macroeconomic slowdown in key markets like North America and Europe.
GCCs, which involve offshore units handling IT and business functions, are experiencing rapid growth, with India hosting over 1,700 GCCs and generating $65 billion in export revenue for FY24. Projections indicate GCCs could contribute 3.5 percent to India’s GDP by 2030, generating an estimated $121 billion in revenue.
Growing Support In Congress For Bharat Ratna For Manmohan Singh
The Telangana Assembly has passed a resolution urging the Centre to confer the Bharat Ratna, India’s highest civilian award, on former Prime Minister Manmohan Singh, sparking growing support within the Congress. The resolution follows BJP allegations that Congress leader Sonia Gandhi had ignored a 2013 recommendation by former President Pranab Mukherjee to confer the award on Singh. Congress leaders argue it is only fitting for Singh’s contributions to be recognized with the country’s highest honor. However, in a rare show of unity, Telangana’s ruling BRS and Opposition BJP also agreed to install a statue of Singh in Hyderabad during a special Assembly session.
In A First, Ukrainian Drone Downs Russian Helicopter
Ukrainian military intelligence intercepted radio communications from a Russian Mi-8 helicopter pilot, who panicked after being hit by a Ukrainian missile on Tuesday. The attack, carried out by a Ukrainian Magura V5 naval drone in the Black Sea, resulted in the destruction of one helicopter and damage to another.
In a video posted by Ukraine's military intelligence, the thermal imager shows the helicopter being struck by a missile, causing it to crash into the sea. The intercepted radio call revealed the pilot’s distress, mentioning being hit by an explosion from a missile launched from the water, leading to system failures on the helicopter. This marked the first time a Ukrainian naval drone successfully downed an air target, adding to the ongoing series of drone strikes on Russian naval assets in Crimea.
From The States
Manipur CM Apologises, Hopes For Peace In 2025
On the final day of 2024, Manipur Chief Minister N Biren Singh apologised for the ethnic violence that has plagued the state since May 3, 2023, resulting in at least 258 deaths and thousands being displaced. Expressing deep regret, he acknowledged the suffering of those who lost loved ones and homes, and extended his apologies to the victims.
Singh expressed hope that the progress toward peace in the past few months would lead to normalcy and stability in Manipur by 2025. Appealing to all communities, he urged them to forgive past mistakes and work together for a peaceful and prosperous Manipur, uniting its 34-35 recognized tribes. His remarks come after one of the state’s most violent incidents, marking a critical test of his leadership.
TN Govt Cancels Smart Meter Tender In Blow To Adani
Tamil Nadu's DMK government has cancelled a global tender for smart meter procurement, citing high costs despite Adani Energy Solutions Ltd (AESL) being the lowest bidder for one of the packages. The scrapped tender included installing over 8.2 million smart meters under the Centre’s Rs 19,000 crore Revamped Distribution Sector Scheme (RDSS), excluding agricultural connections.
All four tenders, floated in August 2023, have been annulled for administrative reasons, with plans to refloat them soon, according to Tangedco sources. The decision follows US prosecutors indicting Adani Group chairman Gautam Adani, his nephew Sagar Adani, and others over alleged bribes for securing solar energy contracts, which the group has denied as baseless. The cancelled package covered eight districts, including Chennai, Kancheepuram, and Chengalpattu, raising further questions about the tendering process.
Stay tuned for more insights throughout the day.