SC extends March 31 deadline of Aadhaar linking till it gives its order

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, Feb 1: Activist Sharjeel Imam's mobile phone and laptop along with some anti-CAA posters have been seized from his house in Bihar's Jehanabad and rented flat in Vasant Kunj, police said on Friday.

Imam was arrested by the Delhi Police's Crime Branch from Jehanabad in a sedition case and he is being questioned by police for his alleged inflammatory speeches in Aligarh and at the Jamia Millia Islamia University here.

During investigation, a laptop and a desktop belonging to Imam were recovered from his rented flat at Vasant Kunj, Deputy Commissioner of Police (Crime) Rajesh Deo said.

His mobile phone was recovered from his house at his native place in Jehanabad's Kako area on the instance of his brother, he said.

Imam had prepared anti-CAA and anti-NRC pamphlets with "misleading and intimidating facts" and then distributed them in various mosques, the copy of which have been recovered, police said.

The shop from where he made photocopies of the pamphlets has also been identified, they added.

Imam was arrested on Tuesday. He was brought to Delhi on Wednesday and produced at the residence of Chief Metropolitan Magistrate Purushottam Pathak in the evening amid tight security after which police were granted his five-day custody.

The PhD scholar at the Jawaharlal Nehru University's Centre for Historical Studies has been booked for sedition and other charges in several states after videos of his alleged inflammatory speeches, made during protests against the Citizenship (Amendment) Act (CAA), were circulated on the social media.

An FIR was registered against Imam by the Delhi Police on January 25 under IPC sections 124A (sedition) and 153A (promoting or attempting to promote disharmony or feelings of enmity on grounds of religion, race, place of birth, residence, language, caste or community or any other ground whatsoever) among others.