The Signal (weekly highlights)

1. Exports up 23.5%, imports up 57.6% in June 2022

India’s merchandise exports rose year-on-year by 23.5 per cent to USD 40.1 billion in June 2022, as compared to a 47.5 per cent growth registered in the year-ago month. POL exports rose by 119 per cent to USD 8.6 billion, and non-POL exports rose by 10.3 per cent to USD 31.5 billion in June 2022.

At USD 66.3 billion in June 2022, India’s merchandise imports were 57.6 per cent higher than the year-ago level. POL imports rose by 99.5 per cent to USD 21.3 billion and non-POL imports rose by 43.3 per cent to USD 45 billion in June 2022. India’s overall exports (Merchandise and Services) grow by 23% in June; Exports growth in 1st quarter over 25%

2. WPI inflation falls to 15.2% in June 2022

Wholesale price inflation, measured by the WPI, fell to 15.2 per cent in June 2022 from 15.9 per cent in May 2022. Inflation in the manufactured products group dropped to 9.2 per cent in June 2022 from 10.1 per cent in May 2022. Inflation in primary article prices declined to 19.2 per cent from 19.7 per cent in May 2022, while that in power & fuel fell to 40.4 per cent from 40.6 per cent.

The high rate of inflation in June, 2022 is primarily due to rise in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, food products etc. as compared to the corresponding month of the previous year.

3. Jio, Airtel, Vodafone Idea, Adani to bid for 5G spectrum

On 12 July 2022, the Department of Telecommunications (DoT) released a list confirming that Gautam Adani-led Adani Data Networks, Reliance Jio, Bharti Airtel and Vodafone Idea have applied to participate in the upcoming 5G auction. The spectrum auction, which is set to start from 26 July 2022, may see aggressive bidding for some frequency bands, with Adani Data Networks joining the fray and established players such as Reliance Jio and Bharti Airtel looking to strengthen their positions in the industry.

However, India with its current data prices significantly lower than global average, will continue to set rate benchmarks as new services are rolled out.

4. CPI inflation remains unchanged at 7% in June 2022

Retail price inflation, measured by the Consumer Price Index (CPI), remained almost unchanged at 7.01 per cent in June 2022 from 7.04 per cent in May 2022. Inflation in urban India fell to 6.92 per cent from 7.08 per cent in May 2022, while that in rural India, at 7.09 per cent, remained almost unchanged from the preceding month.

At the all-India level, inflation in the food & beverages group fell to 7.56 per cent in June 2022 from 7.84 per cent in May 2022. Inflation in the fuel & light group rose to 10.39 per cent from 9.54 per cent in May 2022 and that in the clothing & footwear group increased to 9.52 per cent from 8.85 per cent. Inflation in miscellaneous items fell to 6.28 per cent from 6.81 per cent.

5. IIP rises by 19.6% in May 2022

Industrial output, measured by the index of industrial production (IIP), rose by 19.6 per cent on a year-on-year basis in May 2022. Output of mined products grew by 10.9 per cent, while electricity generation increased by 23.5 per cent. The manufacturing sector reported a 20.6 per cent growth in production in May 2022. The growth was broad-based, with 22 of the 23 sub-groups of the manufacturing sector reporting rise in production.

Among the use-based classification of IIP, output of primary goods rose by 17.7 per cent and that of intermediate goods rose by 17.9 per cent. Production of capital goods jumped by 54 per cent and that of infrastructure/construction goods also grew in double-digits, by 18.2 per cent. Among consumer goods, production of durables rose by 58.5 per cent.