dfa-12-sep

Daily Financial News Analysis – 12th Sep’20 – Free PDF Download

 

Factory Output

  • India’s industrial production contracted for the fifth month in a row in July, declining 10.4% from a year ago, underscoring the flattening of the recovery trend seen in May and June, analysts said.
  • The double-digit fall also marked a weak start to the second quarter of FY21 after April-June gross domestic product (GDP) contracted 23.9%, the sharpest decline among major economies.
  • Revised data showed industrial production contracted 15.7% in June and 34% in May, marginally better than earlier estimates.
  • In April, the first full month of lockdown, the index of industrial production (IIP) had fallen 57.3%.
  • In the first four months of FY21, India’s factory output shrank 29.2% compared with 3.5% growth in the year-ago period.
  • High-frequency indicators suggest the economy picked up pace toward the end of August even though Covid-19 cases have continued to rise.
  • Passenger vehicle sales returned to positive territory in August after nine straight months of decline, rising 14.16%.
  • Manufacturing, mining and electricity contracted 11.1%, 13% and 2.5%, respectively, in July.
  • The consumer non-durables sector was the only subsector to witness growth at 6.7% while all the other IIP subsectors were deep in the red.
  • Barring tobacco products and pharmaceuticals, the other 21 manufacturing subsectors reported a contraction in July.
  • Consumer durables, an indicator of urban demand, saw the steepest fall of 23.6% while the contraction in capital goods, an indicator of investment activity, declined 22.8% compared with a 37.3% fall in the month before.
  • This shows the discretionary portion of consumption and investment will recover from the Covid-19 crisis with a substantial lag, analysts said.

Carpet exports

  • After the success of the 40th India Carpet Expo, the Carpet Export Promotion Council (CEPC) has announced a three-day Buyer-Seller Meet in virtual mode with special focus on Australia and adjoining countries to ensure business continuity amid COVID-19 pandemic.
  • The buyer-seller meet shall be held from 29th of September to 1st of October and with a limited number of virtual booths available, only 50 exhibitors shall participate in the event on first-cum-first-serve basis.

  • India is the biggest exporter of handmade carpets to countries like Australia in the Oceania Region.
  • In a statement issued by the Handicrafts and Handloom Department of Kashmir, interested craft exporters and entrepreneurs from Jammu and Kashmir have been urged to participate in the buyer-seller meet, latest by 15th of September.
  • The statement added that carpet exporters can explore business opportunities by targeting new destinations Down Under to enhance export potential.
  • The famed Kashmir carpet is the leading hand-made product exported to various overseas destinations like Europe, US and the Middle East.
  • The exporters and businessmen belonging to handicrafts and handloom sector in Jammu and Kashmir are facing stiff challenges to showcase their products, services and capabilities to potential buyers affecting their businesses due to the ongoing COVID-19 pandemic.

Kisan Rail

  • Kisan Rail is becoming popular day by day with the farmers of Maharashtra.
  • Blessing for farmers of Western Maharashtra.
  • According to a press release issued by Central Railway, so far in the last one month around 1127.67 tonnes of nutritious and immunity boosting fruitPomegranate’ was transported from Western Maharashtra to Northern India
  • Pomegranate has an impressive nutrient profile as it contains Vitamin C, Vitamin K, Folate, Potassium, etc. which is beneficial in fighting Covid-19.
  • Pomegranate is being produced massively in western Maharashtra i.e. Nashik, Pune and Solapur.
  • Farmers availing the benefit of the cheap and the fastest mode of transport are excited & happy as now the Kisan Rail is running thrice a week.
  • Besides Pomegranate, perishable goods like Capsicum, Cauliflower, Lemon, Green chillies, Iced-Fish, Live plants, Eggs and other vegetables have also been transported through Kisan rail from Sangola, Pandharpur, Kopergaon, Pune, Daund, Nashik, Manmad regions of Maharashtra.
  • Introduced by the Ministry of Railways with the support of Ministry of Agriculture, Kisan Rail has brought hope & opportunity for the farmers as there is increase in their income with faster mode of transport, fresh delivery of perishables, with no restriction on quantity, cheaper than road and saving huge transport costs including tolls.

Transport Vehicles

  • The Union Government has embarked upon a transformational programme of implementing international standards of emission and safety measures in the transport vehicles.
  • The government is moving on the path of a long-term regulatory road map for the automobile industry to grow and increase its contribution to Gross Domestic Product.
  • The Ministry of Road Transport and Highways, in a statement said, there are plans to bring Indian automotive industry at par with developed nations in such regulations.
  • The Ministry said, it has already notified a number of regulations for upgrading emission and safety features in Indian automobiles.
  • These include the draft notifications for anti-lock braking systems, airbags, speed systems, reverse parking assist and crash standards.
  • The Ministry is also in the process of finalization of implementation of standards for Electronic Stability Control systems and brake assist systems for relevant categories by next two years.
  • The Ministry said, it is contemplating higher level of safety for all categories of vehicles.
  • The Ministry has identified certain priority areas for international standardization in this field. These include the tyre pressure monitoring system, if fitted for certain categories of vehicles, which is likely to come into force by October this year.
  • It said, the standards for vehicle dimensions and safety of construction equipment vehicles have been notified.
  • Similarly, notifications have already been issued for side stands, foot rests and external projections of two wheelers which will come into force soon.

Khadi and Village Industries Commission

  • KVIC ventured into E- Commerce Industry just two months ago is using handmade paper packaging materials from day one to prevent plastic pollution.
  • KVIC is specifically using handmade paper envelopes, packets and carton boxes for packaging of articles except for liquid materials where plastic wraps are nominally used to prevent any leakage during transportation.
  • MSME Ministry in a statement said that  KVIC, which was using plastic for packing face masks for better hygiene, has also specially designed handmade paper envelopes made of banana fiber which it will start very soon.
  • The move assumes significance in wake of the directions of the National Green Tribunal to various E-commerce companies for putting a check on excessive use of plastic in packaging of goods and thus posing grave environmental hazard.
  • The Ministry said, by using handmade paper packets, KVIC is serving the dual purpose of environmental protection and employment creation.
  • KVIC has also received appreciation from its online customers for delivery of goods in paper packets.

 

 

 

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