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.