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RBI says momentum in economic recovery to continue in FY23

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India’s economic recovery from the pandemic shock has sustained in FY22 and the momentum is expected to broadly continue through the ongoing FY23, though with risks of downside from the geopolitical shock and its spillovers, said the RBI’s Annual Report for 2021-22 released on Friday.

Despite the risks, the report said the recovery is “getting entrenched and is broadening”, besides the Union Budget for FY22 envisioned the roadmap for ‘India at 100’, with a focus on demand side measures.

The substantial increase in government capital expenditure outlay could crowd-in private investment and “propel a virtuous cycle, thereby improving aggregate demand”.

Furthermore, the National Infrastructure Plan (NIP) amounting to Rs 100 lakh crore and the National Monetisation Pipeline (NMP) involving Rs 6 lakh crore – both targeted for completion by FY25, are also expected to give a major thrust to infrastructure spending, it added.

“The focus on supply side management through ‘process reforms’, facilitating the smoothening and simplification of processes in some sectors where government’s presence as a facilitator or regulator is necessary, would help improve the resilience of the Indian economy.”

Overall consumer and business confidence remains resilient in spite of the third wave on the back of the accelerated pace of vaccination and better prospects for economic activity.

“A full recovery in aggregate demand is, however, contingent on a turnaround in private investment. On the supply side, there is a resurgence in mining and manufacturing sectors. The services sector, which felt the brunt of the pandemic, is staging a broad-based recovery since Q2FY22.”

The report stressed upon reforms in the labour market so as to adapt to the pandemic by reskilling workers.

On financial markets in FY22, the report said that abundance of liquidity and accommodative monetary policies in major economies had pushed financial asset prices to all-time highs. The market was bolstered also by stimulus packages and easing of Covid-19-led restrictions.

The financial markets in India remained vibrant amidst easy liquidity conditions, although the severe second wave of the pandemic during April-May 2021 dampened sentiments. The equity market continued to register double digit growth in FY22 in sync with the global peers with optimism on large scale vaccine rollouts and resurgence in economic activities.

Notably, the direct participation of retail investors in equities continued to increase, with the opening of 3.46 crore Demat accounts during FY22, as against 1.42 crore opened during the previous year. During the fiscal, on an average, 28.8 lakh Demat accounts were opened every month, which is higher than 11.8 lakh per month in the previous year and 4.2 lakh Demat accounts per month in 2019-20, the annual report said.

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Q1 results, inflation, US-Iran tensions among key triggers likely to drive stock market next week

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Mumbai, Aug 9: Indian stock markets are likely to remain volatile next week as investors track a busy earnings calendar, the release of July retail inflation data, movements in crude oil prices, geopolitical developments surrounding the US-Iran conflict and foreign institutional investor (FII) flows.

Indian equities ended the week on a positive note despite heightened volatility, with investors assessing the implementation of the new Closing Auction Session (CAS) framework for F&O stocks, the Reserve Bank of India’s monetary policy decision and persistent geopolitical uncertainties.

The Sensex gained 0.52 per cent over the week to close at 78,499.17, while the Nifty rose 0.77 per cent to finish at 24,570.65.

A key focus for investors next week will be the ongoing Q1 FY27 earnings season. Several prominent companies are scheduled to announce their April-June quarter results.

Markets will also react to India’s July retail inflation data, which is scheduled to be released by the Ministry of Statistics and Programme Implementation (MoSPI) on August 12.

Geopolitical developments, particularly those involving the US, Iran and the Strait of Hormuz, will remain another major market trigger.

Iran has reportedly put forward fresh conditions for reopening the strategically important Strait of Hormuz, while the UAE has reported that one of its vessels was targeted by an Iranian missile.

Any further escalation in geopolitical tensions or delays in reopening the shipping route could put additional pressure on crude prices.

FII activity will also remain on investors’ radar. Foreign institutional investors turned net buyers of Indian equities on Friday, snapping their brief selling streak.

According to provisional exchange data, FIIs purchased shares worth Rs 12,941.31 crore and sold equities worth Rs 12,461.07 crore, resulting in a net inflow of Rs 480.24 crore.

Domestic institutional investors (DIIs) continued to support the market, recording a net inflow of Rs 235.56 crore on Friday. DIIs bought equities worth Rs 15,679.58 crore and sold shares worth Rs 15,444.02 crore.

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India exported over 7,000 metric tonnes of Makhana to over 20 global destinations in FY26

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New Delhi : India exported more than 7,000 metric tonnes of Makhana and value-added Makhana products to over 20 international destinations, including the US, the Middle East and Africa, in last fiscal (FY26), the government informed on Saturday.

Bihar accounts for nearly 85 per cent of India’s Makhana production. To further strengthen the sector, a separate HS Code for Makhana came into effect from July last year under the Finance Bill, 2025.

In a new feat, APEDA facilitated first-ever commercial sea shipment of 18 metric tonnes of GI-tagged Mithila Makhana from the BIADA Industrial Area in Bihta, Bihar, to Australia.

The consignment, sourced from Makhana growers of Darbhanga district, is expected to strengthen the international presence of Bihar’s flagship GI product while creating enhanced income opportunities for farmers through export-led market access, according to Commerce Ministry.

The initiative has enabled farmers to realise nearly 18 per cent higher returns than prevailing market rates, highlighting the benefits of export-oriented value chains and direct market linkages.

The export is expected to strengthen the international presence of GI-tagged Mithila Makhana, create sustainable export opportunities for Bihar’s Makhana sector and contribute to higher farmer incomes.

State Agriculture Minister Vijay Kumar Sinha said Makhana is the identity of Bihar and greater participation of Bihar-based exporters in international trade would enable farmers to secure better price realisation.

He emphasised the importance of maintaining quality standards to meet global market requirements and stated that the Government of Bihar is continuously working to strengthen the Makhana value chain by supporting growers, processors and exporters.

The minister further said that all necessary support would continue to be extended to the Phori community, whose traditional skills are integral to Makhana processing.

The first-ever sea shipment of GI-tagged Mithila Makhana to Australia reflects the growing global demand for Bihar’s agricultural products and opens new opportunities for farmers and exporters, he added.

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CSIR conclave reviews first-year progress of Phase III skill initiative

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New Delhi : The Coordinators’ Conclave‑cum‑Meeting of the Monitoring Committee of the CSIR Integrated Skill Initiative reviewed the progress made during the first year of Phase III of the initiative, an official statement said on Saturday.

The statement from the Ministry of Science & Technology said the two‑day meeting facilitated knowledge exchange among participating laboratories and strengthened collaboration for effective implementation of the programme.

The conclave was hosted by CSIR‑HRDC in association with CSIR‑National Chemical Laboratory, Pune, and brought together Skill Nodal Coordinators from all 37 participating CSIR laboratories to present annual progress reports covering programmes conducted, trainee outreach, innovations, challenges and future action plans.

These presentations enabled the Monitoring Committee to comprehensively assess the implementation status across laboratories while providing an excellent opportunity for sharing best practices and successful models of skill development.

Dr. Mohana Krishna Reddy Mudiam, Director, Institute of Pesticide Formulation Technology (IPFT), Gurugram, and Chairman of the Monitoring Committee underscored that skill development is an integral part of nation-building and outlined five key priority pillars to guide the CSIR Integrated Skill Initiative towards building a robust, future-ready, and industry-aligned skill development ecosystem.

Dr. Vinay Kumar, Scientist-G and Skill Nodal Principal Investigator, CSIR-HRDC highlighted Skill Initiative’s pivotal role in creating a nationwide skill development ecosystem for nurturing industry-ready talent to build a technology-driven workforce.

Dr. Ashish Lele, Director, CSIR-NCL, Pune emphasised that CSIR is uniquely positioned to make a meaningful contribution to the Skill India Mission by leveraging its extensive nationwide laboratory network and scientific expertise to help position India as a global hub for skilled talent.

Dr. T. S. Rana, Head, CSIR-HRDC, Ghaziabad, emphasised CSIR’s commitment to transforming knowledge into digitally enabled, experiential, and innovation-driven solutions for skill development.

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