• India’s consumer price inflation likely eased in June from March, a Reuters poll predicted, as loosened coronavirus-led restrictions in most of the country drove a slight recovery in economic activity and helped reduce a supply crunch. The July 3-8 poll median of over 35 economists showed India’s retail inflation in June moderated to 5.30% from March’s revised 5.84%, still breaching the Reserve Bank of India’s medium-term target of 4.00%.
  • The global economy is likely to contract by 5.2% in 2020 with the coronanvirus still spreading and the economic prospects of countries across the world looking muted, says a report. According to Dun and Bradstreet’s Country Risk and Global Outlook Report, that covered 132 countries, the wider global context remains sombre and the global economy will not reach pre-pandemic levels of activity again before 2022.
  • The sharp downward revision in growth by various national and international agencies indicates that the impact of the coronavirus-induced lockdown was highly deleterious and the stimulus package was inadequate, EY said. It said the growth projections for the current year by various global and domestic agencies indicate a sharp contraction ranging from (-)3.2% to (-)6.8%. And Indian economic growth stood at an estimated 4.2% in 2019-20.
  • Power consumption remained muted in June. The 105.2 billion units (BUs) of electricity supplied in the month was only 3% higher than May, but 10.8% down year-on-year. The gradual rise in demand can be attributed to higher agricultural consumption in the sowing season and increased residential usage with the advent of summer.
  • Power demand in states like Gujarat, Maharashtra, Tamil Nadu and West Bengal, where industrial and commercial consumers comprise more than 40% of electricity usage, were lower by 10.1%, 16.4%, 10.2% and 18.9%, respectively, year-on-year. However, states such as Rajasthan, Karnataka and Telangana, where agricultural power consumption is high, recorded annual decreases of 6.5%, 8.6% and 4.2%, respectively.
  • Unemployment rate in the country more than halved to 11% in June from 23.5% in May. Employment rate also improved handsomely from 29.2% in May to 35.9% in June, implying an addition of 70 million jobs, the Centre for Monitoring Indian Economy (CMIE) said.
  • The government expects to roll out the online single-window clearance system for coal block plans by the end of next month, a senior Coal Ministry official said. Coal Joint Secretary M Nagaraju highlighted that various regulatory approvals at state level were causing delay in development of coal mines.