1. World Bank President praises India.
a. World Bank President David Malpass is happy to see the Indian Economy recovering and travelling in the upward direction.
b. Malpass told reporters “Indians were hard hit by the waves of COVID and that's unfortunate. They responded with the huge production of vaccines and there's been progress on the vaccination effort. But we have to recognize the hit that COVID caused on the Indian economy and especially on the informal sector of the Indian economy which is large”. The World Bank has estimated the Indian Economy to grow at 8.3% this year.
c. The International Monetary Fund has also estimated an optimistic growth of 9.5% for the Indian Economy.
2. American Inflation at 13-year high.
a. The consumer price index of the US Economy rose to 5.4% in the month of September 2021 from 5.3% in August 2021, matching the 2008 high.
b. Core Inflation (Inflation excluding food and energy prices) rose 0.2% in September and 4% compared with a year ago. Core prices have hit a three decade high of 4.5% in June.
c. The unexpected burst of inflation this year reflects high prices for food and energy, new and used cars, hotel rooms, clothing, and furniture, among other goods and services. COVID-19 has shut down factories in Asia thus reducing imports in USA, making consumers and businesses paying more for goods that don't arrive for months.
d. Inflated prices are also overtaking the wages of many workers. The average hourly wage rate rose 4.6% in September from a year earlier, a healthy increase, but not enough to keep up with inflation.
3. Debt Extremity.
a. The global debt has jumped to a new high of $226 trillion with India’s dues projected to rise to 90.6% in 2021, thanks to the coronavirus.
b. China and other developed economies contributed more than 90% to the accumulation of world-wide debt in 2020. The developing and under-developed countries contributed only 7%.
c. The spread of coronavirus and measures adopted to tackle catalyzed the increase in debt levels. High debt levels pose a risk to the financial stability and public finances.
d. Fiscal policies need to take quick action and make the global economy more productive and resilient to future health and other crisis.
4. Increase in Solar and Wind Power.
a. 6,530 MW of Solar and Wind Power generating capacity has been created in India in the past year.
b. Gujarat added 2,256 MW capacity, the highest capacity during the said period, followed by Rajasthan added 1,438 MW and Uttar Pradesh added 822 MW.
c. 6,530 MW meant an addition of 3% to existing capacity. India’s renewable sector has remarkable strength and potential. However, the investor is still lacking confidence because of policy uncertainties and execution risks.
5. Financial Results Update.
a. Infosys has raised its guidance on revenue growth for the financial year 2021-22 to 17.5% from the earlier 16%.
b. Wipro is expecting a 2-4% sequential growth in the third quarter of Financial Year 2021-22.