India celebrates 67th Republic Day with majestic parade

Jan 24: India’s economy appears to be shaking off a slump, as activity in the services and manufacturing sectors expanded for a second straight month in December.

The needle on a gauge measuring so-called animal spirits signaled the economy may be taking a turn for the better, as five of the eight high-frequency indicators tracked by Bloomberg News came in stronger last month. The dial was last at the current position in August.

“Animal spirits” is a term coined by British economist John Maynard Keynes to refer to investors’ confidence in taking action, and the gauge uses the three-month weighted average to smooth out volatility in the single-month numbers.

The nascent recovery would need a helping hand, with expectations building that Finance Minister Nirmala Sitharaman will provide some stimulus when she presents the budget Feb. 1. Official forecasts show the economy is set to expand at 5% in the year ending March 2020 -- the weakest pace in more than a decade.

Here are the details of the dashboard:

Business Activity

The dominant services index rose to the highest level in five months in December as improving new work orders helped boost activity. The seasonally adjusted Markit India Services PMI index climbed to 53.3 from 52.7 in November, helping post a strong end to the calendar year.

India’s manufacturing PMI also rose -- to 52.7 from 51.2 a month ago -- boosted by the fastest increase in new orders since July. A reading above 50 means expansion while anything below that signals contraction.

The uptick in business confidence was accompanied by a rise in inflationary pressures, the survey showed. That trend may keep monetary policy makers from resuming interest-rate cuts anytime soon, leaving most of the heavy-lifting to boost growth with the government.

“The relative stability in macro indicators over the past two months suggests that the worst is behind, but the recovery is likely to be prolonged,” said Teresa John, an economist at Nirmal Bang Equities Pvt. in Mumbai. “Still, sluggish growth and rising inflation indicate that India may well remain in stagflation for most of 2020.”

Exports

Exports remained a laggard, falling 1.8% in December from a year ago. The drag was mainly because of a fall in export of engineering goods, which constitute a third of India’s non-oil exports.

Capital goods imports continued to contract and was lower by 16.5% year-on-year in December after a 22% drop in November. This was the seventh consecutive month of continuous decline, underscoring the weakness in the capex cycle, according to IDFC First Bank.

Consumer Activity

Weakness in demand for passenger vehicles persisted, with local sales falling 1.2% in December from a year ago, according to the Society of Indian Automobile Manufacturers. That capped the worst yearly passenger vehicle sales on record. A Nielsen study on demand for fast-moving consumer goods showed volume growth dropped to 3.5% in the last quarter of 2019 from 3.9% in the same period of 2018.

Funding conditions held out hope, showing considerable improvement in December, according to the Citi India Financial Conditions Index. Credit growth remained tardy though, with demand for loans rising at a slower 7.1% pace from a year ago compared with a nearly 8% growth in November.

Industrial Activity

Industrial output rose for the first time in four months in November. The pick up was broad-based, led by mining, manufacturing and electricity. Mining and manufacturing, in particular, posted a second month of sequential growth. Production of consumer goods also rose after a few months of contraction.

The index of eight core infrastructure industries, which feeds into the index of industrial production, however, declined 1.5% in November from a year ago -- the fourth straight month of contraction. That was on account of shrinking production of electricity, steel, coal, natural gas and crude oil. Both the core sector and industrial output numbers are reported with a one-month lag.

New Delhi, Apr 23: Union Information and Broadcasting Minister, Prakash Javadekar, on Thursday condemned the attack on Republic TV editor-in-chief Arnab Goswami saying that this is "against democracy".

"We condemn the attempt to attack renowned journalist Arnab Goswami. Essentially, we condemn every attack on any journalist. Because this is against democracy," the Union Minister said.

"It is really ironical that those who preach tolerance have become so intolerant. Therefore, we condemn this attempt. We appeal to the collective wisdom that this is undemocratic. As per present law, definitely, police takes action, if there is a complaint," said Javadekar.

Two persons were arrested on Thursday morning for allegedly attacking Republic TV editor-in-chief Arnab Goswami and his wife Samyabrata Ray in Mumbai.

Kochi, Jan 22: The Left front government in Kerala on Monday decided to inform the Centre it would not cooperate with the updation of the NPR, saying there were fears among the public about the process and it has the "Constitutional responsibility" to alleviate them and ensure law and order.

A special cabinet meeting, chaired by Chief Minister Pinarayi Vijayan here, decided to inform the Registrar General and Census Commissioner under the Union Home Ministry that it was unable to cooperate with anything with regard to the updation of the NPR.

"The decision was taken as it was the Constitutional responsibility of the government to alleviate the fears of general public and ensure law and order situation in the state," a Chief Minister's Office release said.

However, the state would fully cooperate with the census procedures, it said.

The LDF government, which has been on a warpath against the Centre over the Citizenship Amendment Act, has last month stayed all activities related to updation of NPR, considering 'apprehensions' of public that it would lead to NRC in the wake of the controversial CAA.

"As the NPR is a process that leads to the National Register of Citizens (NRC), there is a sense of fear among the people that its implementation could lead to widespread insecurity", the CMO release said on Monday.

The experience of the state which had already compiled the NRC was an example for this, it added, in apparent reference to Assam.

Kerala had already stopped all procedures regarding the NPR updation, the release said adding there was also a report of the state police that the if the government went ahead with the procedures, it would adversely impact the law and order situation.

The district collectors have also informed the government that the Census procedures would be affected if the updation of the NPR was done along with it, the CMO release said.

The CPI(M)-led LDF government had recently convened a meeting of political parties and socio-religious organisations here on December 29 in the wake of the concerns among people in various stratas of the society, it said.

A special assembly session was convened and a resolution was passed requesting the Centre not to implement the CAA and the government had also approached the apex court against the law, it added.