Morning Brief: GDP Growth Of 6.5-7 Per Cent For FY25 Still Feasible, Says CEA Nageswaran; RBI MPC Meet Ends Today; NTPC To Build Rs 30,000 Crore Transmission Network For Green Hydrogen Hub

Dear reader, catch up on the day’s must-read stories with Swarajya's roundup of the morning's headlines.

GDP Growth Of 6.5-7 Per Cent For FY25 Still Feasible, Says CEA Nageswaran

Despite a slowdown in second-quarter GDP growth to a seven-quarter low of 5.4 per cent, Chief Economic Advisor V Anantha Nageswaran has reaffirmed the Finance Ministry's confidence in achieving a 6.5-7 per cent growth target for 2024-25, The Hindu Business Line reported. He suggested that the Q2 GDP figure, being the first estimate, could be revised upwards, emphasising that the underlying growth story remains intact.

Nageswaran also pointed out that global factors such as increased uncertainty and supply chain pressures contributed to the slowdown. He stressed that while external challenges like lower global economic growth, trade restrictions, and geopolitical fragmentation are significant, the domestic economy remains robust, with manageable external debt and controlled non-performing assets.

His remarks came ahead of the end of RBI's Monetary Policy Committee meeting, in which the central bank is expected to revise its GDP growth projection for 2024-25.

NTPC To Build Rs 30,000 Crore Transmission Network For Green Hydrogen Hub

NTPC Green Energy plans to invest Rs 30,000 crore to build a dedicated transmission network for its upcoming green hydrogen hub in Andhra Pradesh.

The 20 GW network, India's first purpose-built for a single project, will remain separate from the national grid. It will initially link NTPC's proposed solar project in Anantapur to the green hydrogen hub in Pudimadaka, which spans 1,600 acres and aims to produce 1,500 tonnes of green hydrogen daily.

The network, expected to take 1-1.5 years to establish, will be fully operational by 2032, aligning with NTPC Green's goal of achieving 60 GW of installed renewable energy capacity. Green hydrogen, produced using electrolyses powered by clean energy, is used in refineries and for manufacturing steel and aluminium. The overall project cost, including green energy generation, transmission infrastructure, and hub setup, is estimated at Rs 1 trillion, with up to 30 per cent allocated to transmission.

RBI To Announce Interest Rate Decision As MPC Meet Ends

The three-day policy review meeting of the six-member Monetary Policy Committee (MPC), chaired by RBI Governor Shaktikanta Das, concludes today, with the interest rate decision to be announced at 10:00 AM. The Committee is expected to ease monetary conditions, potentially by reducing banks' cash reserve ratios, as economic growth slowed to a seven-quarter low. Analysts suggest that while the RBI is likely to maintain the key policy rate at 6.5 per cent for the eleventh consecutive meeting, some economists predict a 25 basis point (bps) cut due to the recent growth slowdown.

GDP grew 5.4 per cent in the September quarter, falling short of the 6.5 per cent forecast, raising concerns about the economy. Economists at Nomura predict a 25 bps rate cut to 6.25 per cent, citing weaker growth and a favorable inflation outlook. They expect cumulative cuts of 100 bps by mid-2025, with the terminal rate reaching 5.50 per cent. If the RBI decides to cut rates, it would be the first reduction since May 2020.

Other Developments

ICC Agrees To Hybrid Model For Champions Trophy 2025

The International Cricket Council (ICC) has agreed to host next year’s Champions Trophy using a hybrid model, allowing India to play its matches in Dubai while the rest of the tournament is held in Pakistan. This arrangement, finalized during an informal meeting between ICC President Jay Shah and the Board of Directors in Dubai, has also been approved "in principle" for multi-lateral events until 2027.

Pakistan had initially demanded a reciprocal hybrid model for ICC events until 2031 but accepted the scaled-down arrangement covering the next four years. India is set to host the women’s ODI World Cup this October and co-host the 2026 men’s T20 World Cup with Sri Lanka. Meanwhile, the Champions Trophy is scheduled for February-March 2025, with this model seen as a compromise benefiting all stakeholders.

Relaxed Satcom Norms To Help Elon Musk's Starlink

India plans to ease security requirements for satcom licences, potentially benefiting Elon Musk’s Starlink, according to the Economic Times. Proposed changes include allowing remote satellite network management and removing the latitude-longitude binding condition for fixed satellite terminals. The Department of Telecommunications (DoT) has shared these proposals with major players, including Starlink, Bharti-backed Eutelsat OneWeb, Reliance Jio-SES, and Amazon Kuiper, seeking their inputs within a week.

While Starlink welcomed the changes and promised quick feedback, other players, including Amazon, requested more time, with Amazon seeking an extension until mid-January. This move could facilitate the approval of Global Mobile Personal Communication by Satellite (GMPCS) licences for Starlink and Amazon, whose applications are currently stalled over non-compliance with existing security requirements.

Swiggy Instamart Races To Catch Up With Blinkit

The quick commerce sector is witnessing intense competition as Swiggy Instamart strives to close the gap with market leader Blinkit. In the last quarter, Instamart's gross order value grew by 42.1 per cent to Rs 3,382 crore, while Blinkit reported Rs 6,132 crore during the same period, showcasing its dominant position. Swiggy is improving its dark store network’s order density, but Blinkit continues to lead with better unit economics at a similar scale. The heightened rivalry pushes both platforms to innovate and expand, benefiting consumers with better services and deals. Instamart still faces significant challenges in narrowing the gap with Blinkit in the growing market.

From The States

Yogi Adityanath Links Violence In Ayodhya, Sambhal And Bangladesh

Chief Minister Yogi Adityanath, speaking at the inauguration of the Ramayan Mela in Ayodhya, compared the actions of Mughal emperor Babur’s commander in Ayodhya 500 years ago with recent incidents in Sambhal and Bangladesh. He argued that the underlying nature, intent, and "DNA" of these events were the same, drawing a parallel between the past and present violence against the Hindu community.

Adityanath cautioned against dismissing the atrocities in Bangladesh as irrelevant, highlighting that forces promoting division and violence are still active today. While refraining from naming specific politicians, he accused these forces of seeking to create discord and stir violence, adding that those who incite such tensions often have properties abroad and would flee in times of crisis, leaving others to suffer.

Farmers' 'Dilli Chalo' March To Parliament Today

Farmers camping at the Shambhu border on the Punjab-Haryana border for eight months are resuming their "Dilli Chalo" march to Parliament today, demanding a legal guarantee for minimum support prices (MSP) and addressing other issues. Security has been tightened for the protest, scheduled to begin at 1 pm, with heavy barricading in place and a ban on gatherings of more than five people in Ambala district.

The farmers, led by Sarwan Singh Pandher, are expected to march on foot instead of using tractors. Previous attempts on February 13 and 21 to march toward Delhi were stopped by security forces at the Punjab-Haryana borders. Farmers, under the banners of the Samyukta Kisan Morcha (Non-Political) and Kisan Mazdoor Morcha, have been staging their protest at the Shambhu and Khanauri border points since then.

Soren Inducts Full Cabinet In Jharkhand

Jharkhand Chief Minister Hemant Soren filled his entire Council of Ministers, inducting 11 MLAs, including six from the JMM, four from the Congress, and one from the RJD. It includes two women, both Congress MLAs, matching the previous government's representation. Five ministers from the previous Soren-led government have been retained, and Soren decided against keeping any ministerial berths vacant this time.

In the new Assembly, the JMM, with 34 MLAs, now has eight ministers compared to seven earlier, while the Congress and RJD maintain their previous shares with 16 and four MLAs, respectively. The Cabinet’s first meeting is set for 3 pm Friday, where portfolios will be assigned, with key ministries like Finance, Revenue, Mines, and Industries expected to go to JMM ministers, and departments like Power, Urban Development, and Transport likely distributed between the Congress and RJD.

Stay tuned for more insights throughout the day.