Latest news with #Jasrai
The Hindu
26-05-2025
- Business
- The Hindu
Tamil Nadu's capital expenditure grew over 16% in fiscal 2025
Tamil Nadu's capital expenditure grew over 16% to ₹46,076.54 crore in fiscal 2025, when compared to ₹39,540.90 crore in fiscal 2024, according to the preliminary un-audited provisional figures from the Comptroller and Auditor General of India (CAG). Capital expenditure (capex) goes towards creation of fixed assets, such as roads and bridges, irrigation structures, schools, hospitals, along with investments made in Public Sector Undertakings. It helps in improving economic activity and generating employment. The capital expenditure for fiscal 2025 is also in line with the projection made in the revised estimates. The overall Capital Expenditure in the Revised Estimates was projected at ₹46,766 crore, as compared to ₹47,681 crore in the initial Budget Estimates for 2024-25, as per the State Budget for 2025-2026. 'The 16% growth in fiscal 2025 indicates a sustained focus on capex by the State government. The capex growth achieved in fiscal 25 provisional is much better than the compounded annual growth rate (CAGR) of 12.3% during fiscal 2018-2024,' Paras Jasrai, associate director, India Ratings & Research, said. He said this is a positive development. 'In fact, a better way to look at it is comparing the actual overall capex (including loans and advances) as a proportion of the budgeted numbers. A closer look at the data reveals that Tamil Nadu has met 95.2% of the budgeted target in fiscal 2025, which is much better than fiscal 2024 number of 86.2% and 95.4% in fiscal 2023, as well as the average of 88.1% during FY18-FY24,' Mr. Jasrai said. According to him, the State has also fared better in terms of quality of expenditure. The quality of expenditure can be gauged by capital outlay to total expenditure (COTE). The COTE stood at 12.2% in fiscal 2025 provisional numbers and has hit a three-year high (it was 12.6% in fiscal 2022), Mr. Jasrai said. The metric for fiscal 2025 provisional is also better than the average of 11.4% during fiscal 2018-fiscal 2024. For fiscal 2026, the State government has estimated capital expenditure of ₹57,231 crore, which is a growth of 22.38% from the revised estimates for fiscal 2025. The total capital outlay of the State, including Net Loans and Advances, is estimated at ₹65,328 crore in the Budget Estimates 2025-26. 'Capex remains a sustained focus for the government, which is quite favourable for the continuing the economic momentum in the state. The State has been actively focusing on fiscal consolidation as evident even in the FY26 budget,' Mr. Jasrai said.
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Business Standard
20-05-2025
- Business
- Business Standard
India's core sector growth plunges to eight-month low of 0.5% in April
Output growth in India's eight core infrastructure industries plummeted to an eight-month low of 0.5 per cent in April from an upwardly revised 4.6 per cent growth recorded in March, with three sectors contracting sharply, including refinery products and fertilisers, while electricity and natural gas clocked very feeble upticks. Base effects also pulled down last month's growth print, as the Index of Core Industries (ICI) had risen a sharp 6.9 per cent in April 2024, which was the joint highest in the past thirteen months. Cement production grew at the fastest pace among the core sectors, rising 6.7 per cent in April, but this was almost half the pace recorded in March and the lowest uptick in six months. Steel output grew 3 per cent and electricity generation rose a mere 1 per cent, the slowest uptick in seven months for both sectors. Coal production rose at a three-month high pace of 3.5 per cent, while natural gas output grew for the first time in ten months, albeit by a fractional 0.4 per cent, according to data released by the Ministry of Commerce and Industry on Tuesday. Crude oil output (-2.8 per cent) contracted for the fourth consecutive month, that economists attributed to low global prices, while output in refinery products contracted for the first time in eight months, with a 4.5 per cent drop that marked the sharpest downturn since November 2022. The eight core sectors constitute 40.27 per cent of the Index of Industrial Production (IIP), which had recorded a mild recovery to rise 3 per cent in March. Economists now expect industrial output growth to drop to around 1 per cent in April. 'The impact of Tariff Tantrums-led unprecedented economic uncertainty along with a high base effect pulled the infrastructure output growth down to be the lowest since August 2024, with six of eight sectors seeing a moderation in growth,' said Paras Jasrai, Associate Director at India Ratings and Research. Jasrai said he expects IIP growth in the range of one to two per cent in April, and core sectors' growth to improve to around 2 per cent in May. Terming the ICI print for April 'quite disappointing', Bank of Baroda chief economist Madan Sabnavis reckoned that IIP growth will be in the range of 1 per cent to 1.5 per cent for last month. Rating agency ICRA said IIP growth could moderate sharply to just around 1 per cent in April, citing the tepid core output numbers and other available high frequency indicators. 'The healthy growth in non-oil exports may provide an upside, unless the same represents round-tripping of some imports,' the firm's chief economist Aditi Nayar noted.
Indian Express
30-04-2025
- Business
- Indian Express
At 6.2%, Delhi records slowest economic growth since 2021-22
Delhi's economic growth slowed down in financial year (FY) 2024-25, with real Gross Domestic Product (GDP) growing by 6.2%, as compared to 9.16% in the previous year, the government's most recent estimates showed. This was the slowest growth recorded by the city since FY 2021-22. The data is part of the Estimates of State Domestic Product 2024-25 released by the Directorate of Economics and Statistics recently. This data is significant since the state Economic Survey, which provides insights into the Capital's financial health and is presented before the Budget, was not released this year. The GDP, the total monetary value of all goods and services produced over a year, serves as a key indicator of the region's economic performance and growth. Advanced estimates are released before the end of a financial year. It is the government's forecast of how the economy will perform based on data gathered up to that period. 'Post-pandemic years saw higher growth because of the base effect… there was very low growth during the Covid-19 pandemic. Now that the base effect is waning, we are seeing growth moderating. Due to inflation inching very high, people are also spending less on discretionary items,' said Paras Jasrai, Associate Director of India Ratings. Delhi 's slowdown is in line with the slowdown India witnessed in the same period — India's growth rate also decelerated from 9.2% to 6.5% in a year. The size of Delhi's economy grew to Rs 7.11 lakh crore last year from Rs 6.69 lakh crore in the previous year. Delhi's per capita income is Rs 4.93 lakh, which grew at 7.32% last year, much slower than the 10.11% it grew at the year before that. In 2011-12, Delhi's per capita income was almost thrice the national average. However, over time, this gap has narrowed with the national average growing at a faster pace. Delhi's per capita income is now around two-and-a-half times higher than India's national average of Rs 2.05 lakh. The deceleration of the growth is primarily driven by the secondary and tertiary sector, the report showed. The tertiary sector, which includes services such as transport, banking, hospitality, and tourism, among others, and contributes close to 85% of Delhi's economy, grew only at 6.5%, as compared to 8.8% the year before that. This sector's growth slowed down the previous year as well, from a high of 10.27% in 2022-23. Within the tertiary sector – transport, storage and communications, and services incidental to transport – have fared particularly badly last year, with their growth rates halving. Growth rate of real estate, ownership of dwellings and professional services, which contributes roughly 30% to Delhi's economy alone, has fallen from 13.3% to 6.2% in the past three financial years. 'After the pandemic, we saw many people buying houses as there was pent up demand. Now, we are seeing overall house sales growth moderating,' Jasrai said. The secondary sector (primarily manufacturing and construction), which contributes roughly 13% to the economy, also witnessed a slowdown from 9.68% in FY 2023-24 to 5.32% in FY 2024-25. Electricity, gas, water supply and other utility services were the segment hit the hardest in the secondary sector, the report showed.
