On Thursday (September 12, 2019), the Indian rupee has appreciated by 52 paise to
close at 71.14 against the US dollar as signs of easing trade tensions between the US
and China.
The Indian rupee has appreciated by 125 paise in the last six trading sessions.
Demand for power fell 1.6% in August, accentuating concerns over the economic slowdown. A contraction had last been witnessed in February 2017, when consumption declined 2.7% year-on-year.
Demand fell in states like Maharashtra, Gujarat, Tamil Nadu, Jharkhand, Punjab and Odisha, where industrial and commercial users usually account for around 40% of electricity consumption, according to data by the Central Electricity Authority.
Electricity requirement also decreased in Haryana, which houses significant automobile and component manufacturing units (along with Maharashtra, Gujarat and Tamil Nadu), after a number of manufacturers recently announced temporary plant shutdowns and
production cuts.
The government’s move towards mandatory registration of steel import contracts under
the Steel Import Monitoring System has raised the hackles of the user industry. The
decision is intended to check, if not eliminate, invoice manipulation, the government
has argued.
But two issues merit reconsideration by the government. First, the time limit specified
for the registration of import contracts. Second, the registration fee.
India’s factory output accelerated to 4.3% in July from a downward-revised 1.2% a
month ago while retail inflation quickened to 3.21% in August from 3.15% in the
previous month. This could lead to another round of rate cuts by the Reserve Bank of
India in October.
A scheme to augment the availability of export credit at affordable terms and in
sufficient volume will soon be unveiled, said Commerce and Industry Minister Piyush
Goyal. This scheme will include forex credit.
The national transporter announced that it was suspending its busy season surcharge
of 15%, which is levied between October 1 and June 30, for the current season.
According to Railway Board Member (Traffic) P S Mishra, considering the current
economic scenario, to give a boost to the industry and freight, the railways has taken
measures to facilitate industry, especially in reducing rail transport cost.
Additionally, a further waiver of 5% will be given on loading mini rakes or smaller parcel
size.