Weekly Media Update_26_12_2022.pdf

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Global economic developments may
complicate outlook for Indian economy:
Finmin report
Global economic developments are expected to
complicate the outlook further for the Indian
economy next year and there is a need to maintain
vigilance on the external front, a Finance Ministry
report said on Friday. According to the ministry's
Monthly Economic Review for November, the
external sector continues to face the headwinds
emanating from the global slowdown. However, it
said, the downside to a widening current account
deficit is expected to be limited by a robust
services export performance through the rest of
the year and by inward remittances, which are
expected to touch $100 billion this fiscal, as per
the World Bank. "As we head into 2023, global
economic developments are expected to
complicate the outlook further, and therefore
continued vigilance is a critical aspect in
maintaining India's external resilience," it said. No
country can afford to sit on its laurels, India
included, it said, adding that continued
commitment to macroeconomic stability will
underpin both economic performance and investor
interest in India. "The latter is very high, currently.
It needs to be nurtured. Going forward, India
needs to focus on medium-term challenges such
as securing technology and resources for energy
transition and skilling its youth for the 21st-
century economy while staying the course on fiscal
consolidation at the general government level," it
noted.
Millennium Post - 24.12.2022
https://www.millenniumpost.in/business/global-
economic-developments-may-complicate-
outlook-for-indian-economy-finmin-report-
503242
India growth may moderate to 6.1% in
FY24, IMF says
India’s economic growth is expected to
moderate to 6.1% in FY24 from 6.8% estimated
for the current fiscal because of high oil prices,
weaker external demand, and tighter financial
conditions, the International Monetary Fund
said in its report released on Friday. It expects
inflation in India to ease gradually over the next
two years. The IMF cautioned that the
emergence of a more contagious coronavirus
variant could impact trade and growth further.
“The war in Ukraine and sanctions on Russia
continue to impact the Indian economy through
multiple channels, including elevated
commodity prices, lower external demand, and
uncertainty-driven adverse confidence effects,"
said the Article IV Consultation report, which is
based on IMF’s bilateral discussions with the
Indian authorities. It estimated India’s potential
growth at 6% over the medium term. The report
said that the Indian authorities were confident
of a 7% GDP growth in FY23 on the back of
government capital spending and private
demand, which are expected to strengthen
further in the remainder of the year. The IMF
cautioned that the risk of second-round effects
from fuel and commodity price shocks remains
high even as India’s long-term inflation
expectations remain relatively well anchored.
The Reserve Bank of India’s monetary policy
committee on 7 December hiked the repo rate
by 35 basis points (bps) to 6.25%, the fifth raise
in the current fiscal year, taking the policy rate
to the highest level since August 2018.
Mint - 24.12.2022
https://www.livemint.com/economy/imf-sees-
india-growth-slowing-to-6-1-in-fy24-
11671803777129.html
Fitch retains its India rating, outlook
Fitch Ratings on Tuesday maintained its sovereign
rating for India at the lowest investment grade of
“BBB-” with a “stable” outlook. The agency said
India’s latest rating reflects strengths from a
robust growth outlook compared to peers and still-
resilient external finances, which have helped it
navigate the large external shocks during the past
year. “These are offset by India’s weak public
finances, illustrated by high deficits and debt
Inflation stubborn, signs of upturn in
capex: RBI
The state of the economy report released by the
Reserve Bank of India (RBI) has said that the
battle against inflation continues even as there
were signs of an upturn in the capital
expenditure cycle. The observation seems to
hint at continuing with rate hike action as prices
rise and economic activity heats up.
WEEKLY MEDIA UPDATE
Issue 581
26 December 2022
Monday

relative to peers, as well as lagging structural
indicators, including World Bank governance
indicators and GDP per capita,” it said in a
statement. In June, Fitch had revised up its
outlook for India’s long-term foreign currency
Issuer Default Rating (IDR) to “stable” from
“negative” after a gap of two years. But it has
retained its sovereign rating for the country at
“BBB-“for 16 years now. In its latest assessment,
the global agency stated that the Indian economy
remains resilient but is still slowing. Sustained
consumption and investment recoveries underpin
Fitch’s FY23 India GDP growth forecast of 7%.
The Financial Express - 22.12.2022
https://www.financialexpress.com/economy/for-
dec-21-fitch-retains-its-india-rating-
outlook/2921103/
“Inflation may be slightly down, but it is
certainly not out. If anything, it has broadened
and become stubborn, especially at its core,”
the report said. It pointed to uncertainty over
oil prices and higher food rates due to global
weather conditions. In its December monetary
policy, the central bank had moderated its rate
hike from 50 basis points (100bps = 1
percentage point) in the three earlier policies to
35bps. This was seen by some as a policy pivot.
Also, the drop in inflation to 5. 9% in November
brought it within the RBI’s tolerance zone of
6%. However, the language in the state of the
economy report indicates that the rate hike
cycle is not over.
The Times of India - 21.12.2022
https://epaper.timesgroup.com/article-
share?article=21_12_2022_015_013_toikc_TO
I
Economy May Grow at Over 7% in FY23,
Says Panagariya
The Indian economy is likely to grow at over 7%
in the current fiscal year, former Niti Aayog vice
chairman Arvind Panagariya said on Wednesday,
while observing that the growth rate should
sustain next year too provided the forthcoming
Budget does not have any negative surprises.
Panagariya further said recessionary fears have
been around for a while but so far neither the US
nor the EU has gone into recession. “From the
viewpoint of India, in terms of headwinds
originating abroad, the worst is probably behind
us,” he told PTI. Earlier this month, the RBI
revised down its growth estimate for FY23 to 6. 8
per cent from the earlier 7 per cent, while the
World Bank revised upwards its GDP growth
forecast to 6. 9 per cent, saying the economy was
showing higher resilience to global shocks.
“Overall, I still expect us to end the current fiscal
year with a growth rate exceeding 7 per cent.
The Economic Times - 22.12.2022
share?article=22_12_2022_009_002_etkc_ET
Dark Clouds Loom Over Global Growth
The Reserve Bank of India’s (RBI) monthly
bulletin has warned about the risks to global
growth in 2023 as the full impact of interest rate
hikes will be visible next year. In its report on
the state of the economy, RBI said that with
every passing day, the balance of risks gets
increasingly tilted towards a darkening global
outlook for 2023. “Emerging market economies
appear even more vulnerable, having battled
currency depreciations and capital outflows in
addition to slowing growth and high inflation.
Debt distress is rising, with a surge in default
rates and an appreciating US dollar, although
more recently it has tumbled down from 20-
year highs. Looking beyond, a mild recovery is
projected to get underway in most countries in
2024,” it said.
Reduction in oil import bill narrows down
India's trade deficit in Nov
The reduction in oil import bill resulted in
narrowing of India's trade deficit in November as
compared to October, said Prabhudas Lilladher Pvt
Ltd. The trade deficit narrowed month-on-month
(MoM) in November to $23.89 billion as against
$27.58 billion in October, while up only 13 per cent
year-on-year (YoY), said Amnish Aggarwal, Head-
Research, Prabhudas Lilladher. According to
Aggarwal, the dip was largely on account of
decline in imports led by sequential decline in oil
imports from $18.2 billion to $15.7 billion. On a
Govt tracking inflation to avoid surge
in prices: FM
The government is closely following the inflation
situation to prevent any surge in prices, FM
Nirmala Sitharaman told the Rajya Sabha as
she attributed inflation to “extraneous” factors,
such as, rising fuel and fertiliser prices. While
replying to a debate in the House, the minister
said while some large economies were facing
recession because of their financial handling of
the pandemic, the government with its
“targeted approach” of providing relief had kept
India on a “safe course of revival” and the

YoY basis, imports grew by 5 per cent while
exports remained flattish. India's exports
exhibited a positive YoY growth in 15 out of 30
sectors in November and imports surged in 19 out
of 30 sectors YoY. In the exports category,
electronic goods (54.48 per cent), rice (19.16 per
cent), ceramic products & glassware (22.64 per
cent), fruits and vegetables (25.01 per cent),
cereal preparations & miscellaneous processed
(22.75 per cent).
https://energy.economictimes.indiatimes.com/ne
ws/oil-and-gas/reduction-in-oil-import-bill-
narrows-down-indias-trade-deficit-in-
nov/96338830
country was not getting into recession. “Borrow
& spend and even print money to reboot the
economy was the suggestion by a former FM
and others during Covid. As we close 2022, we
should look at the negative effect of this
suggestion by other countries, which have gone
into recession,” she said. The FM also expressed
confidence that fiscal deficit will not breach the
target set for the current fiscal as there was
revenue buoyancy to take care of additional
spending of Rs 3. 3 lakh crores in FY23.
share?article=22_12_2022_015_005_toikc_TO
I
Government raises over Rs 4 lakh crore
via disinvestment since 2014
The government has raised over Rs 4.04 lakh
crore through disinvestment and strategic sale of
public sector enterprises since the Modi
government came into power in 2014, the Finance
Ministry said on Tuesday. Of this, the largest
amount totalling over Rs 1.07 lakh crore through
offer for sale in 59 cases. This was followed by a
stake sale through Exchange Traded Fund (ETF) in
10 tranches, aggregating to Rs 98,949 crore.
Strategic sales in 10 companies, including Air
India, yielded Rs 69,412 crore to the exchequer in
the last 8 years. Share buyback in 45 cases
fetched Rs 45,104 crore. 17 CPSEs were listed
since 2014-15, which yielded Rs 50,386 crore. Of
this, the initial public offering (IPO) of LIC alone
fetched the government Rs 20,516 crore. The
additional market capitalisation of Rs 7.31 lakh
crore was achieved through new listings, the
ministry said. Besides, the government has sold
its residual stake in Paradeep Phosphate Ltd, IPCL,
and Tata Communication for Rs 472 crore, Rs 219
crore and Rs 8,847 crore, respectively.
The Financial Express - 21.12.2022
https://www.financialexpress.com/industry/gover
nment-raises-over-rs-4-lakh-crore-via-
disinvestment-since-2014/2920804/
Sebi to review buyback rules
The board of Securities and Exchange Board of
India (Sebi) is likely to consider key proposals
in its last board meeting of 2022 on Tuesday.
These include major changes in share buyback,
tighter disclosure for listed firms and
strengthening governance at market
infrastructure institutions such as stock
exchanges. In November, the market regulator
had released a consultation paper on the review
of the buyback regulations which were first
notified in November 1998. A key proposal
before the Sebi board is to drop buyback
through the open market route in a phased
manner. A sub-group headed by Keki Mistry,
vice-chairman & CEO, HDFC, had recommended
this method be closed from April 2025.
Currently, companies repurchase their shares
either through the tender offer or the open
market method. Recently, One 97
Communications, the Paytm parent, had
announced a share buyback at a price of up to
Rs 810 per share. Though this is at a premium
to the current market price, investors were left
disappointed as the company did not choose the
tender offer route. Paytm has said in a
regulatory filing that it will commence the share
buyback on Wednesday.
The Telegraph - 21.12.2022
https://www.telegraphindia.com/business/sebi
-to-review-buyback-rules/cid/1904764
EPFO added 13L net subscribers in
October, most in 18-21 yr age group
The Employees’ Provident Fund Organisation
added 12. 9 lakh subscribers on a net basis in
October 2022, logging a year-on-year increase of
21,026 in net membership in as compared to the
year before, the Union labour and employment
ministry said in a statement on Tuesday. Of the
total 12. 9 lakh members added during the month,
around 7. 2 lakh new members have been covered
Taking all steps to ensure crude oil
supplies: Govt
The government on Thursday said it is taking all
steps to ensure crude oil supplies and mitigate
the risk of dependence on a single region.
Responding to a question, Minister of State for
External Affairs Meenakashi Lekhi said in Rajya
Sabha that import of crude oil is carried out by
Indian Oil and refining by companies in the
public and private sectors from diverse sources

under the social security cover of the EPFO for the
first time, according to the provisional payroll data
of EPFO. Among new members, the highest
number was registered in the 18–21-year age
group with 2. 1 lakh members, followed by 1. 9
lakh members between the ages of 22 and 25
years. The ministry said 57. 2% new members are
in the 18-25 years age group. The statement also
said that approximately 5. 6 lakh net members
exited EPFO during October 2022 but rejoined
after changing jobs within establishments covered
by EPFO and transferred funds to their current
accounts instead of seeking final settlements.
share?article=21_12_2022_005_006_toikc_TOI
through business-to-business arrangements.
"Oil PSUs have diversified their petroleum
basket and are procuring crude from countries
located at various geographical locations
namely Middle East, Eurasia, North America,
South America etc," she said. "The government
of India is taking all the steps to ensure security
of crude supplies and mitigate the risk of
dependence on crude oil on a single region," she
added. India has been ramping up procurement
of crude oil from Russia notwithstanding
increasing disquiet by several Western
countries over Moscow's military invasion of
Ukraine.
https://energy.economictimes.indiatimes.com/
news/oil-and-gas/taking-all-steps-to-ensure-
crude-oil-supplies-govt/96445338
About 20% ethanol-blended petrol to
debut within days: Hardeep Puri
India achieved 10 per cent ethanol blended petrol
in June and is well ahead of the deadline of
November 2022, said the Oil Minister. Following
the achievement of the target to sell petrol doped
with 10 per cent ethanol, India will in the next
couple of days start experimental supplies of 20
per cent biofuel mixed petrol, Oil Minister Hardeep
Singh Puri said on 23 December. Puri, while
addressing the first public awareness event in the
run-up to India Energy Week 2023 -- 'Dance to
Decarbonise', said that India achieved 10 per cent
ethanol blended petrol in June and is well ahead of
the deadline of November 2022. "E20 (petrol
mixed with 20 per cent ethanol) will come in select
markets on a pilot basis in a day or two," he said.
To cut India's dependence on imported oil for
meeting its energy needs, ethanol is extracted
from sugarcane as well as agri waste is being
mixed with petrol. Also, ethanol has a lower
carbon footprint than fossil fuels, helping the
nation meet its climate targets. Being rolled out in
11 states/UTs of Delhi, Bihar, Uttarakhand,
Himachal Pradesh, Uttar Pradesh, Haryana,
Karnataka, Maharashtra, Punjab, Daman Diu and
Dadra & Nagar Haveli, E20's initial target was April
1, 2023, but the government had advanced it.
Under phase 1, 15 cities will be covered, the
minister said.
Mint - 23.12.2022
https://www.livemint.com/news/india/about-20-
ethanol-blended-petrol-to-debut-within-days-
hardeep-puri-11671811938414.html
Windfall gains taxes may fetch Rs
30,000 cr this fiscal
The Centre is likely to earn about Rs 30,000-
35,000 crore from the windfall gains taxes on
oil companies this fiscal due to the falling global
crude oil prices and the reduction in the levies
since they were imposed on July 1, 2022. While
the finance ministry had not given an official
estimate of the revenue to be raised from the
taxes, it was expected initially that it would
raise at least about Rs 60,000 crore this fiscal.
“Given the recent trends in crude oil prices and
the series of revisions in the windfall gains
taxes, it is estimated that the revenue from it
would be in the range of Rs 30,000 crore,” said
a person familiar with the development.
Another round of revision in the taxes is
expected by early next week, he added. The
lower collection is, however, not expected to
impact the government’s fiscal math as tax
collections have been buoyant and higher than
estimated till now. “This was an additional tax
that was imposed mid-year and had as such not
been factored in the calculations for the Budget
Estimate of 2022-23. The collections from the
tax, even if they are lower, will not have any
major impact,” the source added, noting that
tax collections are expected to surpass the
Budget estimate for the fiscal.
Financial Express - 26.12.2022
https://www.financialexpress.com/economy/wi
ndfall-gains-taxes-may-fetch-rs-30000-cr-this-
fiscal/2926116/
Not just gas, PNGRB to focus on
petroleum product pipelines too
The Petroleum and Natural Gas Regulatory Board
(PNGRB) has undertaken a vital exercise to bring
all petroleum product pipelines under its ambit,
Domestic demand for finished steel to
grow 8% this fiscal year: Icra
The demand for finished steel in India is
expected to grow eight per cent this year
compared to 2021, according to rating agency

which will help determine their tariff and facilitate
non-discriminatory third-party access to public
sector oil companies’ pipelines. Access to state-
run companies’ product pipelines can dramatically
increase private fuel retailers’ ability to serve new
markets across the country, increasing
competition in the fuel business and benefitting
end consumers, people familiar with the matter
said. The PNGRB Act of 2006 covers all petroleum
and natural gas pipelines, but the focus so far has
been only on gas pipelines. The regulator is now
trying to enforce the law on petroleum products
pipelines as well. In a letter earlier this month to
Indian Oil, HPCL, and BPCL, the regulator sought
details of all their operational as well as under-
construction petroleum product pipelines.
Icra. Supported by the government's
infrastructure-led growth model, domestic
finished steel demand has registered a double-
digit growth of 11.9 per cent in the first eight
months of the current fiscal, the ratings agency
said in a report on Wednesday. The demand is
"poised to close the year with a growth of 8 per
cent...7-8 per cent growth for FY 2022-23," Icra
said. However, domestic steel companies "face
a bumpier road ahead" as the external
environment becomes more challenging due to
elevated inflation/ energy prices and rising
interest rates. Given the expectation of a
slowdown in the pace of economic activity over
the next few quarters, domestic steel demand
growth is likely to moderate to 6-7 per cent in
FY24, Icra said.
Business Standard - 22.12.2022
https://www.business-
standard.com/article/economy-
policy/domestic-demand-for-finished-steel-to-
grow-8-this-fiscal-year-icra-
122122100882_1.html
More initiatives on anvil to boost steel
sector in 2023
With increasing steel production in the country,
the focus in 2023 will be on boosting raw material
supplies and producing more special grade steel,
according to Union minister Faggan Singh Kulaste.
India produced 113.43 million tonne of crude steel
in January-November 2022, which is 10 per cent
higher compared to the year-ago period.The
government aims to double the country's annual
crude steel making capacity to 300 MT from 150
MT at present. In an interview to PTI, Kulaste, the
Minister of State for Steel, said more initiatives for
the sector will be taken in 2023. Last year, the
government introduced the Production Linked
Incentive (PLI) scheme for specialty steel to
enhance the production of the high-end alloy.
Special grade steel is used in various sectors,
including power, shipping, railways and auto. The
demand for this steel is being met through
imports. "Our focus will also be on taking
measures to support industry besides finding new
markets as the production of steel continues to
grow in the country," he said. Ensuring the raw
material security for steel production will be a key
focus area for the government as the country is
mostly dependent on import of raw materials like
coking coal. While other minerals are available in
sufficient amounts, Kulaste said India is
dependent on imports for coking coal. The country
imported 57 MT of coking coal in FY22 to produce
120 MT crude steel.
https://economictimes.indiatimes.com/industry/i
ndl-goods/svs/steel/more-initiatives-on-anvil-to-
boost-steel-sector-in-
2023/articleshow/96472678.cms
Soon, air passengers will get
compensation for involuntary
downgrade of booked tickets
Passengers will soon be compensated for any
involuntary downgrade of their tickets for a
particular class by an airline, with aviation
regulator DGCA preparing to put in place new
norms. Once the norms come into force, the
airline concerned will have to refund the full
value of such tickets, including taxes, and also
the affected passenger will be flown free of cost
in the next available class, according to DGCA.
Against the backdrop of complaints from air
travellers about their tickets booked for a
particular class being downgraded by airlines,
the Directorate General of Civil Aviation (DGCA)
is now in the process of amending the existing
regulations to address passenger grievances.
“The amendment will allow the passenger, who
is downgraded involuntarily from his booked
class of ticket, to receive the full value of the
ticket, including taxes, as a refund from the
airline and the airline will carry the passenger
free of cost in the next available class,” it said
in a statement on Friday. After stakeholder
consultations, final regulations will be issued by
the watchdog. A senior DGCA official said the
new norms are likely to come into force in
February next year. The watchdog said that in
view of the rapid expansion of air services and
the increase in passenger traffic volumes, it has
been noticed that sometimes airlines
downgrade passengers’ tickets.
Financial Express - 23.12.2022
https://www.financialexpress.com/infrastructu
re/airlines-aviation/soon-air-passengers-will-
get-compensation-for-involuntary-downgrade-
of-booked-tickets/2924677/

Raj Kumar Dubey recommended as next Director (HR), BPCL
Public Enterprises Selection Board (PESB) on Thursday, December 22, 2022, recommended Mr. Raj
Kumar Dubey for the post of Director (Human Resource) of Indian central public sector undertaking,
Bharat Petroleum Corporation Limited (BPCL). Currently, Mr. Dubey is serving as Executive Director in
Indian Oil Corporation Ltd. PESB in the selection meeting interviewed five others including Sanjeev
Chandrasekharan Pillai, General Manager, Bharat Petroleum Corporation Ltd. K Mahendra Kumar,
General Manager, Bharat Petroleum Corporation Ltd. Aidaphi Giri Saxena, General Manager, Bharat
Petroleum Corporation Ltd. Neelesh Khulbe, Chief General Manager, Hindustan Petroleum Corporation
Limited (HPCL) Atanu Bhowmik, Executive Director, Engineers India Ltd.
PSU Connect - 22.12.2022
https://www.psuconnect.in/news/raj-kumar-dubey-recommended-as-next-director-hr-of-
bpcl/35661/

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