Indian economy recorded slowest growth rate in six years during July-September quarter.
According to data released by the Ministry of Statistics and Program Implementation, the second quarter GDP (Gross Domestic Product) growth rate was 4.5% as against 7% during corresponding period of last fiscal (2018-19). This is the lowest growth rate after fourth quarter (January-March) of fiscal year 2012-13, when GDP growth rate was 4.3%. Also, this is sixth successive quarter of growth rate declining.
With growth rate on decline, core sector (eight key industries) on contraction, fiscal deficit widening and retail inflation on rise, all eyes are now on Monetary Policy Committee headed by RBI Governor. There is hope that the committee will go for another rate cut in addition to 1.35% cut during the current year.
About a billion mobile phone subscribers will pay up to 40% or so more to make calls and use data from this month, with private operators Reliance Jio Infocomm, Bharti Airtel and Vodafone Idea increasing prices for the first time since 2016 to shore up finances.
According to Parth Jindal, Managing Director of JSW Cement, the company has deferred its plan for an initial public offering (IPO) by a year as the economic slowdown continues to weigh on its growth strategy. The company plans to use the downturn as an opportunity to expand capacity to 25 million tonnes.
JSW Cement has plans to invest Rs 2,800 crore for additional capacity of 11 million tonnes per annum when the sector is reeling under excess production capacity built-up especially in the southern market.
The company is also planning setting up a clinker plant in UAE with Rs 800 crore to tap western market in India. According to the Managing Director, Parth Jindal, JSW Cement, the freight from Gujarat and Fujairah to Mumbai are same, so decided to do bigger operations overseas with an investment of $110 million (Rs 800 crore). The project will be completed by January end. Currently, the company is importing clinker from different countries and grind it at its Dolvi unit but from February onwards likely to source clinker from its own overseas factory.
JSW Cement plans to invest Rs 2,875 crore to nearly double its manufacturing capacity to 25 million tonnes per annum by FY23 through organic expansion. JSW Cement has an installed capacity of 14 million tonne per annum across west, south and east India. Parth Jindal, managing director of JSW Cement told that the capacity expansion will happen on the back of increased raw material supply from its subsidiary Shiva Cement.
The cement maker had earlier set a target of 20 MTPA manufacturing capacity by 2020, which it is likely to miss due to the ongoing demand slowdown.