Category: Economy

Recent findings from SBI Research reveal a significant drop in India’s unemployment rate, reaching a record low. The Periodic Labour Force Survey report indicates a notable decrease from 6.1% in the fiscal year 2018 to 3.2% in 2023. SBI Research’s analysis further notes a rise in self-employment, climbing from 13.6% to 18.3% during the same period.

The shift is accompanied by an increasing trend in higher educational attainment and a growing preference for entrepreneurship across diverse segments of society. The report underscores a societal shift in India, transitioning from traditional employment models to more dynamic and self-sustaining business approaches.

Notably, the labour force participation rate has experienced a boost, particularly among women. The female labour force participation rate has surged from 17.5% to 27.8% between 2018 and 2023, with the most significant increase observed in the 15-29 years’ age bracket. SBI Research attributes this rise in female participation to financial inclusion initiatives such as the Pradhan Mantri MUDRA Yojana, which has substantially increased disbursement amounts and deposit figures for women.

However, the report also suggests that the distribution of unemployment rates across various educational levels and states paints a complex picture.

Union Minister Piyush Goyal on November 14 said that US electric car manufacturer Tesla Inc. is in the process of doubling its imports of components from India. He shared the information on the social media platform X after his visit to Tesla’s state-of-the-art manufacturing facility in Fremont, California, US.

The minister said in September that Tesla was aiming to source components worth between $1.7 billion and $1.9 billion from India this year, having bought $1 billion of components last year.

Piyush Goyal was, however, unable to meet Tesla chief Elon Musk during his visit to the plant. The minister’s visit to the US was supposed to include discussions with Musk around the world’s largest electric car producer’s plans to set up an Indian factory, manufacturing a $24,000 car at this factory, sourcing more components, and establishing charging infrastructure across the nation.

Responding to the Indian minister’s post on X, Musk said, “It was an honor to have you visit Tesla! My apologies for not being able to travel to California today, but I look forward to meeting at a future date.”

Piyush Goyal was in the US on a four-day visit. In June, Elon Musk met Prime Minister Narendra Modi in New York. After the meeting, Musk had said that he planned to visit India in 2024.

Prime Minister Narendra Modi on November 15 launched the Rs. 24,000-crore Pradhan Mantri Particularly Vulnerable Tribal Groups (PM PVTG) Mission for the holistic development of around 28 lakh PVTGs in the country.

While announcing the mission from Birsa College ground in Jharkhand’s Khunti district, PM Modi also released Rs. 18,000 crore as the 15th installment of Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme to more than eight crore beneficiary farmers across the country.

Launched on the occasion of the third Janjatiya Gaurav Diwas, the PM PVTG mission will provide basic facilities such as road and telecom connectivity, electricity, safe housing, clean drinking water and sanitation, improved access to education, health and nutrition and sustainable livelihood opportunities to PVTG habitations, which are mostly remote, scattered and inaccessible.

The PM-KISAN scheme is one of the world’s largest Direct Benefit Transfer (DBT) schemes, which aims to support farmers in meeting their agricultural and other incidental needs. Under the scheme, a financial assistance of Rs. 6,000 per year is transferred into the bank accounts of beneficiary farmers through DBT in three equal installments. The Prime Minister transferred the amount digitally by clicking a button.

Taiwan is planning to address its labour shortage in factories, farms, and hospitals by hiring up to 1 lakh Indian workers. The two countries are expected to finalise an employment mobility agreement as early as December. Arindam Bagchi, a spokesperson for India’s Ministry of External Affairs, announced on November 9 that the pact between India and Taiwan is in the final stages of negotiation.

This initiative comes in response to Taiwan’s shrinking workforce, attributed to a low birth rate and an aging population. The influx of Indian workers is anticipated to boost Taiwan’s economy and support key industries.

By 2025, Taiwan is projected to become a ‘super-aged’ society, with the elderly constituting over a fifth of the population. Despite achieving the lowest unemployment rate since 2000, the decision to hire Indian workers aims to maintain the target of a $790 billion economy.

This move aligns with India’s strategy of signing employment pacts with developed countries grappling with aging workforces. The employment mobility agreement is expected to permit Indian workers to stay in Taiwan for up to three years, with the option to bring their families. Additionally, these workers will be entitled to the same benefits as Taiwanese workers, including minimum wage, social security, and paid leave.

Turkiye and India have topped a global ranking of employees’ well being, measured by assessing physical, mental, social and spiritual health based in a survey conducted by McKinsey Health Institute released on November 3. Japan has ranked last in the survey.

Turkiye scored the highest at 78%, followed by 76% for India and 75% for China in the poll of more than 30,000 workers across 30 countries. Meanwhile, Japan scored 25%. The global average was 57%.

In the survey, Indian employees reported the highest rates of burnout symptoms at 59%, while Cameroon reported the lowest at 9%; 22% of employees across the world are experiencing burnout symptoms at work.

Workers aged 18 to 24 had the lowest holistic health scores demographically.

Among respondents, the largest proportion of positive scores was for physical health at 70%, and about two-thirds of global employees reported positive scores on mental and social health. The lowest proportion of positive scores was on spiritual health, at 58%.

According to the McKinsey survey, employees who had positive work experiences reported better holistic health, are more innovative at work, and show higher job performance.

Mundra Port in Gujarat handled 16.1 MMT of cargo in October, the highest-ever volume by any port in India.

One of the flagship ports of Adani Ports & Special Economic Zone (APSEZ), the port is the largest port in the country with 102 MMT of cargo handled on a year to date (YTD) basis, at 9% year-on-year growth. It crossed the volume of 100 MMT in 210 days, overtaking the record of 231 days last year.

Mundra saw double-digit growth on a year-on-year basis for containers (10%) and liquids and gas (14%). In another milestone, it handled 4.2 million TEUs of containers in just 203 days, a feat achieved in 225 days in the previous financial year. It added new cargo types such as Hydrolysis Pi Gas (HPG) to its portfolio. On a year-to-date basis, it docked over 2,480 ships and serviced over 11,500 rakes.

Capable of maintaining a deep draft, Mundra Port can handle large vessels. In July 2023, it berthed one of the largest ships ever – MV MSC Hamburg (399 m long and 54 m wide), with a carrying capacity of 15,908 TEUs and a current reported draught of 12 m. In 2021, it berthed the 13,892 TEU APL Raffles – a Singapore-registered vessel that is 397.88 m long and 51 m broad and the largest container vessel to call at any Indian port.

India’s Essar Group is poised to initiate an ambitious foray into low-carbon initiatives spanning three continents. This significant plan represents the conglomerate’s concerted effort to prioritise clean energy investments and take a leadership role in sustainable, environmentally-friendly solutions.

The company is gearing up to invest in low-carbon ventures in Saudi Arabia, the United Kingdom, and India. It anticipates securing final approvals by June 2024 to kickstart a $4 billion project aimed at constructing a low-carbon steel plant with an annual production capacity of 4 million tons in Ras Al-Khair, Saudi Arabia, as reported by media outlets.

In addition to this endeavour, the Indian conglomerate has outlined plans to allocate $3.6 billion for the development of various low-carbon energy projects over the next five years. These initiatives encompass a $2.4 billion project focused on the decarbonization of its oil refinery in the UK and a $1.2 billion green ammonia plant in India, designed to cater to the UK and other international markets within approximately three and a half years.

Delhi-NCR is the sixth most expensive office space rental market across the APAC region, says Knight Frank’s latest Asia-Pacific Prime Office Rental Index for the third quarter of 2023. Meanwhile, Hong Kong SAR maintained its position as the most expensive office market in the region during the same quarter.

The demand for office space in India’s largest occupier markets remained robust, with over 700,000 square meters of office space being leased during the quarter. The majority of this demand was driven by companies establishing Global Capability Centres, compensating for the reduced demand from flexible workspace operators.

Prime office rentals in Delhi-NCR, Mumbai and Bengaluru, continued to exhibit strength on a year-on-year basis, while rental rates for the next 12 months are anticipated to remain steady at their current levels.

When analysed on a quarter-on-quarter basis, the average office rental rates across the region remained relatively stable, with declines observed in the Chinese Mainland markets gradually moderating. This was offset by rental increases in many other developed markets.

Overall, the quarterly report highlights that, in line with the trends in Q2 2023, 15 out of the 23 cities monitored reported either stable or rising office rental rates, mirroring the conditions in Q3 2023.

Gentari, the clean energy division of Malaysia’s Petroliam Nasional Bhd (Petronas) and AM Green, a hydrogen and ammonia producer owned by the founders of Indian renewable company Greenko Energy Holdings, have together signed definitive agreements with an affiliate of Singapore’s sovereign wealth fund, GIC, to produce 5 million tons per annum (MTPA) of green ammonia by 2030.

Petronas, GIC and Greenko Energy Holdings are investing $2 billion in AM Green. Of this, $1.5 billion will come from Petronas for a 30% stake. GIC of Singapore and the Greenko founders are expected to invest $250 million each in the green ammonia business.

The partnership will focus on the production of green ammonia across multiple locations in India, which is expected to accelerate efforts to achieve net zero targets in India and OECD markets. Exports of green ammonia to main OECD markets, such as Germany, Japan, South Korea, and Singapore from this platform is likely to begin by late 2025.

The green ammonia will be produced by a unit of AM Green, known as AM Green Ammonia Holdings. After investment from Gentari, GIC and AM Green, the fully funded platform will invest in Andhra Pradesh, Tamil Nadu, Gujarat, Karnataka, and Himachal Pradesh in phases.

Singapore is about to begin one of the first commercial projects in the world to use ammonia for bunkering and power generation. The country’s Minister for Trade and Industry Gan Kim Yong said on October 23 that an international supply chain and the technology for transporting ammonia are well established.

The country has set its sights on using hydrogen for about 50% of its energy needs by 2050. Ammonia also has the potential to be used directly as fuel for power generation and maritime shipping, Gan said while speaking on the first day of Singapore International Energy Week at Marina Bay Sands. The event ran till October 27.

Ammonia is formed when hydrogen combines with nitrogen from ambient air. As a hydrogen carrier, it can be stored at room temperature, and is easy to transport. A clean fuel, hydrogen does not produce any planet-warming carbon dioxide when burned.

To be located on Jurong Island, the project will involve developing an end-to-end ammonia solution to generate 55MW to 65MW of electricity from imported low-carbon or zero-carbon ammonia via direct combustion in a gas turbine or combined cycle gas turbine, said the Energy Market Authority on October 23.

The project developer will also have to facilitate ammonia bunkering at a capacity of at least 100,000 tonnes per annum, starting with shore-to-ship bunkering, followed by ship-to-ship bunkering.