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Time of India
01-07-2025
- Business
- Time of India
Odisha leads in Q1 private capex
New Delhi: New project announcements by private sector companies fell to a four-quarter low in the three months ended June, showed data from the Centre for Monitoring Indian Economy (CMIE). Total investments in these projects at ₹3.5 lakh crore, however, more than doubled from Rs 1.4 lakh crore a year earlier, the data showed. Five states dominated the investments, accounting for 85.7% of the newly-announced projects. Odisha led at Rs 1.4 lakh crore, followed by Andhra Pradesh (₹47,110.7 crore) and Haryana (₹45,934 crore). Experts attributed moderation in investments to prevailing uncertainty around tariffs, and muted domestic demand, both weighing on capacity expansion plans. "The unprecedented economic uncertainty due to tariffs and geopolitical reasons appear to have been behind the decline in new project announcements," said Paras Jasrai, associate director at India Ratings and Research (Ind-Ra). India and the US are negotiating a trade agreement, which is expected to be finalised before July 9. Live Events Sakshi Gupta, principal economist at HDFC Bank , noted that a broader and sustainable recovery in domestic consumer demand is essential for driving private capex. "Clarity on external demand is also crucial for sectors with significant export exposure." The drop in new project announcements aligns with a government survey on private sector capex investment intentions released in April. This fiscal year, private capex is expected to reach ₹4.9 lakh crore, declining from ₹6.6 lakh crore in FY25, according to the survey released by the statistics ministry. "Private capex is expected to remain subdued going by the survey, though a pick up could occur in the second half of this fiscal year, as domestic demand strengthens from August with the start of the festive season," said Madan Sabnavis, chief economist at Bank of Baroda . Government capex rose 54% to ₹2.2 lakh crore in April-May, official data released Monday showed. At 324, new private projects announced in the first quarter of FY26 were the lowest since Q1FY23, according to an ET analysis. CMIE tracks projects with capex of Rs 1 crore or above. Across sectors, metals and metal products saw the highest value of new project announcements at ₹1.4 lakh crore, followed by electricity (₹63,207.3 crore) and transport services (₹44,893.5 crore).
Time of India
26-06-2025
- Business
- Time of India
T-bill, money market rates rise on VRRR plan
Treasury bill and money market rates experienced an increase following the RBI's announcement of a variable rate reverse repo operation. The weighted average call rate and treps rate also saw a rise. Experts suggest that the RBI's move aims to manage surplus system liquidity and align rates within the liquidity adjustment facility corridor. Tired of too many ads? Remove Ads Mumbai: Treasury bill and money market rates rose as much as seven basis points on Wednesday, after the RBI announced a variable rate reverse repo (VRRR) operation on Tuesday. The weighted average call rate rose 3 bps to 5.30%, while treps rate rose five bps to 5.25%.The T-bill auction saw yields harden by 5-7 bps across 3 tenures, after being on a softening trajectory for over 4 months. Restarting of VRRR operations by RBI suggests that the central bank would keep surplus system liquidity in check, and align the call and treps rates near the repo rate and within the liquidity adjustment facility (LAF) corridor, experts said. The LAF corridor is between 5.25% and 5.75%."Now that advance tax and GST outflows are behind us and as we approach month-end, RBI would expect government spending to pick up. These operations will take care of frictional liquidity flows," said Sakshi Gupta, principal economist at HDFC Bank
Time of India
24-06-2025
- Business
- Time of India
RBI to conduct Rs 1 lakh crore VRRR for the first time since November 2024
The RBI will conduct its first variable rate reverse repo (VRRR) since November 2024 on July 4, aiming to absorb ₹1 lakh crore amid a ₹2.4 lakh crore liquidity surplus. The move aligns rates within the LAF corridor. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Reserve Bank of India will conduct a variable rate reverse repo (VRRR) operation on July 4, for the first time since November 2024. The VRRR - an operation that temporarily drains liquidity from the banking system - will be done for a notified amount of Rs 1 lakh crore and will have a seven-day announcement of VRRR comes at a time when banking system liquidity is in a surplus of Rs 2.4 lakh crore, RBI data showed. For June, average surplus stood at Rs 2.76 lakh Bank's Kaushik Das and HDFC Bank 's economist Sakshi Gupta had stated in their reports that the RBI is likely to conduct a VRRR operation, as reported by ET in its June 16 edition. This move is expected to cause the call and treps rates to align within the liquidity adjustment facility (LAF) corridor of 5.25% to 5.75%.The RBI has also decided to cancel the 14-day main VRR operation on June 27 after reviewing liquidity conditions.'It seems like the RBI is smoothing out the frictional surplus liquidity and bringing the call and treps rate closer to the repo rate,' said Sakshi Gupta, principal economist at HDFC Tuesday, the call rate stood at 5.27%, while the average treps rate was 5.20%. These overnight rates (call and treps) are expected to harden on Wednesday, experts announcement by the RBI also surprised a section of market participants as transmission of deposit rates is yet to be fully completed.'There were signals that such an operation may come, but this is sooner than expected. Further cues would be taken from the auction and we will have to see how the market responds to it in terms of bids,' said Gaura Sen Gupta, chief economist at IDFC First Bank
Economic Times
18-06-2025
- Business
- Economic Times
Labour force survey may include migration trends
New Delhi: The statistics ministry is considering the inclusion of migration data in the Periodic Labour Force Survey (PLFS) 2026, a government official told ET."Discussions are underway to include this data point in the survey," the official migration data is expected to help identify regions with high labour demand and better inform employment and welfare strategies of government policies. Additionally, information on migrants is crucial for designing and delivering welfare schemes like the 'One Nation One Ration Card'. The initiative is part of the broader effort by the ministry of statistics and programme implementation (MoSPI) to make employment data more robust and accurate. Questions such as whether an individual moved from their previous usual place of residence and why they shifted cities or states may become part of the 2026 survey design. The data will be collected across states and is expected to be released in present, the PLFS covers indicators such as unemployment rate, labour force participation rate (LFPR), and worker population ratio across rural and urban areas. While the current design does not focus on capturing information on migration, such data was collected once during the 2020-21 say this will offer deeper insights from business as well as policy making perspective. "This will enrich the tracking of economic activity and employment trends, given the diversity of India's labour market across regions," said Sakshi Gupta, principal economist at HDFC Bank. A person is classified as a migrant if their current residence differs from their last usual place of residence."For many social welfare schemes, information on migration makes your targeting more efficient," said Gupta. Currently, the e-shram portal launched by the ministry of labour and employment tracks unorganised sector workers including migrants. A 2024 report by the Prime Minister's Economic Advisory Council stated that the number of domestic migrants declined by 11.8% to 40.2 crore between 2011 and 2023. "This was on account of improved conditions and opportunities at the places of origin," it 2020-21, the overall migration rate was 28.9%, significantly higher among women at 47.9% compared to 10.7% for men, according to the PLFS data. For women, marriage was the key reason for migration, while for men it was employment. Across regions, urban areas recorded a higher migration rate of 34.9% than rural areas at 26.5%.The ministry also aims to include age-disaggregated data on individuals not in employment, education or training (NEET) in the PLFS schedule from July, ET reported earlier.
Time of India
18-06-2025
- Business
- Time of India
Labour force survey may include migration trends
The statistics ministry is considering adding migration data to the Periodic Labour Force Survey (PLFS) in 2026 to better understand labor demand and improve government policies. This inclusion aims to enhance the effectiveness of welfare schemes like 'One Nation One Ration Card'. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: The statistics ministry is considering the inclusion of migration data in the Periodic Labour Force Survey (PLFS) 2026, a government official told ET."Discussions are underway to include this data point in the survey," the official migration data is expected to help identify regions with high labour demand and better inform employment and welfare strategies of government information on migrants is crucial for designing and delivering welfare schemes like the ' One Nation One Ration Card '.The initiative is part of the broader effort by the ministry of statistics and programme implementation ( MoSPI ) to make employment data more robust and such as whether an individual moved from their previous usual place of residence and why they shifted cities or states may become part of the 2026 survey design. The data will be collected across states and is expected to be released in present, the PLFS covers indicators such as unemployment rate , labour force participation rate (LFPR), and worker population ratio across rural and urban areas. While the current design does not focus on capturing information on migration, such data was collected once during the 2020-21 say this will offer deeper insights from business as well as policy making perspective."This will enrich the tracking of economic activity and employment trends , given the diversity of India's labour market across regions," said Sakshi Gupta, principal economist at HDFC Bank A person is classified as a migrant if their current residence differs from their last usual place of residence."For many social welfare schemes, information on migration makes your targeting more efficient," said the e-shram portal launched by the ministry of labour and employment tracks unorganised sector workers including migrants.A 2024 report by the Prime Minister's Economic Advisory Council stated that the number of domestic migrants declined by 11.8% to 40.2 crore between 2011 and 2023. "This was on account of improved conditions and opportunities at the places of origin," it 2020-21, the overall migration rate was 28.9%, significantly higher among women at 47.9% compared to 10.7% for men, according to the PLFS data. For women, marriage was the key reason for migration, while for men it was employment. Across regions, urban areas recorded a higher migration rate of 34.9% than rural areas at 26.5%.The ministry also aims to include age-disaggregated data on individuals not in employment, education or training (NEET) in the PLFS schedule from July, ET reported earlier.
