1. World Bank raises India’s 2022-23 GDP growth forecast to 6.9%
The World Bank has raised its GDP growth forecast for India for the current financial year to 6.9 percent from 6.5 percent projected in October because of the economy’s relative resilience to external headwinds and the strong outturn in the September quarter. This is the first upgrade of India’s growth forecast by any multilateral agency in 2022-23. The World Bank number is close to the Reserve Bank of India’s projection of 7 percent GDP growth in the year to March.
Why it’s important: Despite global economic sluggishness, the upgrade in the GDP forecast for India stands out, mainly due to robust domestic demand that has rebounded well from the pandemic shock.
2. Carlyle, Fairfax, and DBS may bid for 10% each in IDBI Bank
The Carlyle Group, Fairfax Financial Holdings, and DBS Bank could bid for at least 10 percent each in IDBI Bank as part of the government’s share sale process. Private equity firms Carlyle and Fairfax and Singaporean lender DBS Bank have communicated with the department of investment and public asset management, finance ministry officials, and the investment banker hired for the largest privatization in India’s banking space regarding the sale process. KPMG is the adviser managing the privatization.
and its units will be the base bid for the auction. The Hinduja Group, Torrent Investments and Oaktree Capital are among the other bidders that have offered to acquire Reliance Capital and its units. In the first round, bidders must offer at least Rs 1,000 crore more than the base price to remain in the fray.
Why it’s important: Lenders are in a quandary as the potential bids have been much lower than the projected liquidation value by independent evaluators. It remains to be see whether the insolvent firm and its units fetch a good prices.
6. Premium products drove sales in the run up to the Diwali season
Domestic consumers bought more premium cars, smartphones, televisions, and other appliances than ever before during the week leading up to Diwali. Cars priced Rs 10 lakh and above, 5G-enabled smartphones, large-screen televisions and double-door and side-by-side refrigerators saw a big spike in demand during Diwali, driving up their share in overall product sales hit new highs.
Why it’s important: The development in trade settlement in rupees came after the Western sanctions against Russia post the Ukraine conflict. It has now been extended to other countries as well. No such settlement has yet taken place due to procedural issues and concerns raised by banks.
10. Government may soon lease out 11 more airports as air traffic picks up
India remains the fastest-growing aviation market in the world, aviation minister Jyotiraditya Scindia has said in an interview. The country’s air passenger number will touch about 400 million a year in the next five years, while the government is looking to lease out 11 more airports, he said.
Why it’s important: The aviation sector is showing signs of a revival after the COVID-19 pandemic, although airline firms are struggling to increase capacity amid a global supply constraint.
11. Drugs panel recommends approval for flu vaccine developed by Cadila
The subject expert committee of the Drugs Controller General of India (DCGI) has recommended granting manufacturing approval to Cadila Pharmaceutical for India’s first indigenously developed seasonal flu vaccine. The final nod is yet to be given by the regulator. The committee met in the last week of November and deliberated on the phase-3 clinical trials report submitted by the firm. The panel has asked Cadila to submit the data safety monitoring report for children.
Why it’s important: Doctors currently prescribe imported flu shots for children, the elderly, and patients with respiratory illnesses, which come at a high cost. A locally developed jab would help ease matters.
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