India’s economy shrank by nearly a quarter in April-June, much more than forecast and pointing to a longer than previously expected recovery with analysts calling for further stimulus. Gross domestic product shrank by a record 23.9% in April-June from a year earlier, official data showed, against a Reuters poll forecast for an 18.3% contraction.
India’s target to gasify 100 million tonnes of coal by 2030 will entail an investment of over Rs 4 lakh crore, Coal Minister Pralhad Joshi said. This 100 MT coal gasification will happen in three phases.
India’s economy likely suffered its largest quarterly slump on record, as Covid-related lockdowns add to already-declining consumer demand and investment. Economists in a Reuters poll predicted that gross domestic product will contract by 18.3% in the June quarter, compared to 3.1% growth in the previous quarter, the worst performance in at least eight years.
India’s fiscal deficit is expected to touch 7% of GDP in 2020-21 fiscal as against budget estimate of 3.5%, with revenue collections being hit amid disruptions in economic activities due to lockdowns, according to Brickwork Ratings.
Coal India’s fuel supply to the power sector registered a decline of 19.5% to 126.30 million tonnes (MT) in the April-July period of the ongoing fiscal in the wake of slump in coal demand. Coal India Ltd (CIL) had despatched 156.86 MT of fuel in April-July last year, according to the latest data of the coal ministry. The despatch of coal by CIL in July fell 12.4% to 32.76 MT, from 37.41 MT supply in the corresponding month of the previous fiscal, it said.
India plans to significantly reduce its thermal coal imports in the next few years to save foreign exchange and create jobs through the development of existing and new coal blocks, a senior official in the federal coal ministry said.