The Signal (weekly highlights)

1. IIP rises by 1.3% in Jan 2022

Industrial output, measured by the Index of Industrial Production (IIP), grew by 1.3 per cent in January 2022, after suffering a 0.6 per cent contraction in the year-ago month. All three components of the IIP reported growth in January 2022.

Use-based break-up of the IIP shows that output of primary goods increased by 1.6 per cent, while that of intermediate goods expanded by 0.9 per cent in January 2022. Among capital goods and infrastructure/construction goods, the former suffered 1.4 per cent contraction in production while the latter reported 5.4 per cent expansion.

2. India’s gold imports rose by 27.7% in 2021

During 2021, India’s gold imports rose by 27.6 per cent to 1,067.7 tonnes from 836.4 tonnes during 2019, according to the Gem Jewellery Export Promotion Council (GJEPC). In 2020, the demand fell down to 430.1 tonnes owing to coronavirus (Covid-19) pandemic.

Along with China, India is by far the world’s largest importer and consumer of gold. The past decade has seen India’s gold imports coming close to the year-prior figure. For instance, the quantity of gold imported in 2021 is comparable to gold imports of 1,047 tonnes in 2015 and 1,032 tonnes in 2017.

3. Hiring activity up by 3% in Feb 2022

February 2022 saw a monthly uptick of three per cent in hiring activity versus January 2022, according to the Monster Employment Index, the job analysis report by Monster.com.

US alone will release 30 million barrels from its own strategic reserves. Biden has promised that the US administration will ensure the protection of American businesses and consumers.

4. Steel companies to ramp up shipments to Europe

Steel companies are stepping up exports and taking up the advantage of the supply gap created by the Russia-Ukraine war.

The war has pushed companies from Europe, the Middle East and Africa to reach out to Indian producers even as steel prices have jumped 20 per cent in the last one month. Industry experts expect Indian and Chinese steel mills to ramp up shipments to Europe to make up for supply shortages from Russia and Ukraine. 

5. EV industry to get Rs 2.2 trillion in capex by 2030

The Indian electric vehicle (EV) industry is likely to get up to Rs.2.2 trillion in capex till 2030, according to a report by Crisil.

Total auto/transport related investments will go up from Rs.4.2 trillion in 2015-2022 period to Rs.5.4 trillion in 2023-30 period. Already auto and solar together comprise 65 per cent of the capex committed under the PLI schemes.