India’s construction, automobiles and energy sectors have bounced back and the government will soon address the downturn in the commercial vehicles sector, commerce and industry minister Piyush Goyal said.
India’s coal demand is expected to pick up in the third quarter of the current financial year as the industries ramp up their capacity utilization gradually overcoming covid-19 led disruptions, according to a report published by India Ratings and Research.
The government will seek Parliament’s approval for Rs 37,000-crore additional spending on infrastructure development in the second batch of supplementary demands for grant. Earlier this month, Finance Minister Nirmala Sitharaman had announced additional budget of Rs 25,000 crore as capital expenditure (capex) on roads, defence, water supply, urban development and domestically produced capital equipment.
India’s coal import rose 11.6% to 19.04 million tonnes in September on account of a recovery in consumption by thermal power plants and other industries as also helped by competitive prices in international markets. The country imported 17.06 million tonnes (MT) of coal in September 2019, showed data available with mjunction services limited.
Industry body PHDCCI expects India’s GDP to contract by 7.9% in the current financial year and grow by 7.7% in 2021-22, assessing that the worst is over and the economy is on the verge of a slow recovery.