The Signal (weekly highlights)

1. FinMin releases Rs. 71.8 bn revenue deficit grant to 14 states

The Ministry of Finance has released the fourth monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs.71.8 billion to 14 states. The grant has been released as per the recommendations of the 15th Finance Commission.

With the release of the fourth installment, the total amount of revenue deficit grants released to the states in 2022-23 has gone up to Rs.287.3 billion.

2. Services PMI rises to 59.2 in June 2022

The seasonally adjusted S&P Global India Services PMI rose to 59.2 in June 2022 from 58.9 in May 2022 . This is the highest level achieved by the index since April 2011. An index reading above 50 denotes expansion and below 50 denotes contraction.

Improvements in demand following withdrawal of the pandemic restrictions and capacity expansions supported the growth in the services activity, according to the panellists. New order intakes by the services companies touched to an 11-year high in the June 2022 quarter. 

3. Hiring activity up by 22% in June 2022

Hiring activity in India increased by 22 per cent year-on-year (y-o-y) in June 2022, according to a report by Naukri JobSpeak. While hiring in travel and hospitality rose by 125 per cent y-o-y, retail and banking, financial services and insurance (BFSI) also ramped up offers by 75 per cent and 58 per cent, respectively.

In addition, hiring activity rose in industries such as insurance with an uptick of over 48 per cent, in education sector by over 47 per cent and in retail by over 46 per cent. Further, auto & auto ancillary and oil & gas ramped up hiring by 37 per cent and 36 per cent, respectively. Hiring in telecom and pharma/biotech sector remained flat.

4. Exports up 16.8% imports up 51% in June 2022

India’s merchandise exports rose year-on-year by 16.8 per cent to USD 37.9 billion in June 2022, as compared to a 47.5 per cent growth registered in the year-ago month. POL exports rose by 98 per cent to USD 7.8 billion, and non-POL exports rose by 5.5 per cent to USD 30.1 billion in June 2022.

At USD 63.6 billion in June 2022, India’s merchandise imports were 51 per cent higher than the year-ago level. POL imports rose by 94.2 per cent to USD 20.7 billion and non-POL imports rose by 36.4 per cent to USD 42.8 billion in June 2022. Trade deficit touched an all-time high of USD 25.6 billion in June 2022.

5. Passenger vehicle, commercial vehicle sales continue to grow in June 2022

Sales of passenger vehicles and commercial vehicles continued their upward trajectory in the month of June 2022. Most passenger vehicle manufacturers, barring Maruti Suzuki India (MSIL), reported growth in sales during the month.

In the commercial vehicles segment all the manufacturers registered an increase in sales. Most two wheeler manufacturers also reported year-on-year growth in sales during the month under review. However, Bajaj Auto reported a 20 per cent decline in sales during the month.