Economists at Crisil, saying planned budgetary measures are not expected to provide a short-term boost. Noting that the economy is facing its worst slowdown in over a decade, a Crisil report has said this was because consumption and investment have stopped firing for too long.
Shishir Baijal, chairman of Knight Frank, said the real issue is how to spur demand in housing. “With exemptions gone (under the new tax regime), there is no incentive to buy homes. Generating demand will be a big issue,” he said.
India’s coal import increased by 7.6% to 185.88 million tonnes (MT) in the April-December period of the current fiscal .Coal imports in December rose by 13.3% to 20.52 MT compared to 18.10 MT in the year-ago month, according to provisional data by mjunction services.
A pick-up in demand for steel and successive price increases is prompting companies to bring back focus on the domestic market.
Steel companies are mulling an increase in prices up to Rs 2,000 a tonne in February, which would be the fourth increase in a row. The price differential between domestic steel and imports is approximately $30 a tonne currently.
JSW Steel, director (commercial & marketing), Jayant Acharya said there is a potential for prices to increase to that extent.
N Srinivasan, Vice-Chairman and Managing Director of India Cements said, “By the time the next settlement (wage) comes, in 2022, we will have significantly fewer permanent employees across all our manufacturing facilities put together,” adding that the unions have realised that their main constituency (permanent workers) has already gone and that they are mobilising contract workers in order to stay relevant.