Adani Green Energy has withdrawn from two wind power projects worth $1 billion in Sri Lanka after the government sought to reduce the tariff. The projects, set to be completed by 2026, were scrutinized following a political change. Adani deemed the revised tariff unviable but remains open to future collaboration with Sri Lanka.
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The Indian government's Production Linked Incentive (PLI) schemes across 14 sectors have yielded Rs 1.46 lakh crore in investments, generating over Rs 12.50 lakh crore in sales and 9.5 lakh jobs as of August 2024. Over Rs 4 lakh crore in exports have been achieved, with incentives exceeding Rs 6,753 crore disbursed in the last fiscal year.
India’s low volume of goods exports to the US offers a buffer against trade tensions due to Trump's tariff moves, with strong services exports and supportive domestic policies enhancing resilience. Economic recovery strategies include increased government spending, eased monetary policies, moderated food inflation, and robust services exports driving growth, says Morgan Stanley.
While softer economic conditions, tighter bank funding, and asset quality concerns are expected to affect the sector's credit growth and profitability in the near term, larger NBFIs with robust operations and diversified funding channels are expected to maintain steadier performance.
Retail inflation in India dropped to a seven-month low in February, helped by falling food prices. This decline offers the RBI a chance to cut interest rates in April. Additionally, industrial output growth improved in January, driven by the manufacturing sector's expansion. Both urban and rural inflation rates have also decreased.
RailTel Corporation's shares jumped 9.6% after securing a Rs 25.15 crore contract from HPCL for MPLS/Internet services over five years. Despite recent gains, RailTel stocks have seen a YTD decline of 16.80%. Currently trading at Rs 328 with a 6.10% increase, the stock shows neutral momentum with an RSI of 52.
TCS CEO K Krithivasan attributes the company's sequential lackluster performance to deferred discretionary spends by clients and seasonality. Despite these challenges, he remains optimistic about future business prospects, managing potential changes in immigration regulations, and leading advancements in AI and software engineering for improved productivity.
UltraTech Cement, part of the Aditya Birla Group, is acquiring Kesoram Industries from the BK Birla Group with a share swap ratio of 1:52. This acquisition, effective from March 1, values Kesoram at Rs 7,600 crore. UltraTech will also enter the wires and cables market with a Rs 1,800 crore investment. Kesoram's cement units will increase UltraTech's capacity to 149 mtpa.
The rupee dropped to an all-time low of 85.21 against the US dollar for the sixth consecutive session due to rising US bond yields and strong demand for the dollar from importers. The RBI intervened to limit losses, but underlying issues such as tepid capital flows and a widening trade deficit persist.
The finance ministry is preparing for Union budget 2025 with potential reforms in healthcare, insurance, and taxation. A State Bank of India report recommends increasing healthcare spending to 5% of GDP, exempting GST and taxes on insurance premiums, and rationalizing GST on medical devices.
India Inc should introduce AI with sensitivity and a longer horizon to avoid taxation on technology replacing labor. AI's benefits include enhanced productivity, but its adverse impact on jobs, especially in low-value IT services, could hinder India's economic growth. Balancing AI adoption with social responsibility and workforce impact is essential.