Monthly Summary for Cabinet April 2022

No. A-45O 1 1 / 3 I 2O22-Adnn.lll Government of India Ministry of Finance (Department of Economic Alfairs) *** New Delhi, 2Oth li4ay, 2022 oFFICE MEMORANDUM The undersigned is directed to circulate herewith the unclassified portion of Monthly Summary on important policy decisions in respect of Department of Economic Affairs for the Month of April, 2022. (Arup Shyam "hk_, Deputy Secretary to the Government of India Tel No. 23095091 To 1 A11 Members of the Union Council of Ministers, Government of India, New De1hi. 2 Vice Chairman, Niti Aayog, Yojna Bhawan, New Delhi. Cabinet Secretary, Cabinet Secretariat, Rashtrapati Bhavan, New De1hi. 4 Secretary to the President of India, Rashtrapati Bhavan, New Delhi. 5 Secretary to the Vice-President of India, 6, Maulana Azad Road, New De1hi. 6 Principal Secreta,ry to the Prime Minister, PMO, South Block, New Delhi 7 Chairman, Union Public Service Commission, Dholpur House, New Delhi. 8 A11 Members of Niti Aayog, Yojna Bhawan, New De1hi. 9 Secretaries to all the Ministries/ Departments, Government of India, New Delhi. 10. PS to MOS (F), PPS to Finance Secretary, PPS to Secretary (EA), PPS to Secretary (Revenue), PPS to Secretary (Expenditure), PPS to Secretary (DTPAM). 11. Shri V. Anantha Nageswaran, Chief Economic Adviser, DEA. t2. Additional Secreta-ry, Cabinet Secretariat, Rashtrapati Bhavan, New Delhi. 13. Shri .Manoj Sahay, JS&FA(Finance). 14. Shri A.M. Bajaj, Additional Secretary (FM), DEA 15. Shri Rajat Kumar Mishra, Additional Secretary (Budget), DEA. 16. Shri Sanjeev Sanyal, Principal Economic Adviser, DEA 17. A11 Heads of Divisions in Department of Economic Affairs.SrEconomicAdviser(C&C / FSLR/ FS&CS) / JS(C&C and oMI)) / JS(Budget) /JS(IPP/JS(ISD) /JS(Inv) /All Advisers/ CAAA 18. Shri Rajesh Malhotra, DG (M&C), M/o Pinance, North B1ock, New Delhi. 19. Guard File - 2022.III A-4SOLL I 3 I 2o22-Admn. Ministry of Finance Department of Economic AfIairs *** Subject: Monthly Summary on important policy declsions pertaining to Department of Economic Affairs (DEA I for the month of Aptil,2O22 I. Important policy decisions taken and major achievements durlng the month 1. Macroeconomic Overview: A strong growth momentum pushed the real GDP in Q3 of 2021-22 to 106.2 per cent of the pre-pandemic Q3 output of 2Ol9-2O and the combined output of l-rrst three quarters to 100 per cent of the pre- pandemic level. These estimates reaffirm India's prospects of a resilient and strong recovery and bear testimony to India's strong macroeconomic fundamentals. GST coilections during April 2022 (reflective of March transactions) stood at Rs 1.67 lakh crore registering a double-digit growth of 20 per cent compared to corresponding period last year and 46.7 per cent higher than the corresponding pre-pandemic leve1. Global PMI composite index declined to 52.7 in March 2022 ftorr 53.4 in February 2022 on account of intensifying inflationary pressures, supply chain issues and geopolitical tensions. For 2O2l-2O22, retatl inflation averaged 5.5 per cent, as compared to 6.2 per cent obtained in 2O2O-21. WPI inflation stood at 12.9 per cent in 2O2l-2O22. A part of the rise in wholesale inllation in 2O2l-22 is attributed to the 1ow base in the previous year and partly driven by rebound in the world economy and resurgence of industrial demand in advanced economies on account of easing pandemic related restrictions. Supply side disruptions on account of Russia Ukraine conflict has a-lso led to an uptick in commodity prices in recent months.India's manufacturing activity as per PMI manufacturing recovered in Aprll 2022 and stood at 54.7 after decelerating to 54 in March 2022, as new orders and production expanded at a stronger pace in conjunction with an increase in buying activity. Industrial activity is expected to recover in the forthcoming months with Government's thrust on capital expenditure. Credit to industry witnessed YoY growth of 7.1 per cent in March 2022. Medium industries registered high double-digit YoY credit growth of 7 I.4 per cent in March, 2022 followed by 21.5 per cent growth witnessed by micro and small industries. PMI Services improved to 53.6 in March 2022 from 5 1.8 in February 2022. Strenglhening of services is attributed to expansion in new orders, better demand conditions and enhanced business confidence. In March 2022, performance of merchandise exports continued to remain resilient growing YoY at 19.8 per cent. During FY 2O2l-22, merchandise exports have been USD 419.65 bil1ion, 43.8 per cent higher than in 2O2O-21, in-part benehtting from a rebound in the world economy. Capital goods index of IIP, an indicator of private investment, witnessed an YoY growth of 18.8 per cent in April-February 2O2l-22 as compared to the corresponding period last year. High frequency indicators for the current quarter indicate sign of recovery in the economic activity as Omicron induced restrictions are eased with the decline in new cases. Union Government's endeavours to enhance capital expenditure will further boost the growth and employment through multiplier effect. 2. Important Developments: (i) The Annual Report for the year 2O2l-22 of Ministry of Finance was circulated amongst the Members of Lok Sabha/Rajya Sabha. (ii) Gazette notil-lcations for the following have been issued: (a) For issue of commemorative Coin on the occasion of '400th Birth Anniversary of Shri Guru Tegh Bahadur Ji". (b) For issue of commemorative Coin on the occasion of "Centenary Year of University of Delhi".(c) For issue of Commemorative Coin on the occasion of "Birth Centenary of Shri Jawahar Lal Darda". (iii) The following agreements/loans were signed with multilateral and bilateral development agencies: (a) A loan No. 6O46-IND: Nagaland Urban Infrastructure Development Project for an amount of USD 2.0 Million was signed with ADB. (b) A loan for amount of USD 386 million towards Assam Electricity Distribution System Enhancement and ioss Reduction Project was signed with AIIB. (iv) The following rules/ regulations/ schemes have been issued pertaining to International Financial Serrrices Centres Authority (IFSCA) Act, 2019: (a) IFSCA, Fund Management Regulations, 2022 (b) IFSCA, Financial Product (") The following capacity building training programmes/conclave 1n infrastructure sector were held: (a) Training Programme on 'lnfrastructure Finance and PPP' ln association with World Bank and All India Management Association. (b) A conclave on investment, infrastructure and PPPs was hosted by State Government of Meghalaya as part of the Azadi ka Amrit Mahotsav with an objective of boost infrastructure development in the NE region. (vr) Hon'ble Finance Minister attended the following meetings during the month: (a) A Meeting with European Parliamentary Deiegation led by Hon'ble Mr. Bernd Lange, MEP, Chair of the Committee of International Trade Affairs of the European Parliament to discuss the issues of mutual interests and early conclusion of Free trade agreement (F"tA)/ Bilateral Investment Treaty (BIT) negotiations. (b) A virtual meeting with Ms. Nadia Calvino, Vice President and Minister of Economy and Digitalization of Spain and International Monetary and Financial Committee (IMFC) Chair to discuss the consequences of(c) Ukraine-Russia conflict on global economic and hnancial stability and key priorities at IMFC. (d) A Bilateral Meeting with Managing Director, International Monetary Fund (lMF) in which Hon ble Finance Minister expressed concern regarding global growth slowdown and rise in commodity prices and outlined the need for rapid IMF assistance in Sri Lanka that is facing a massive economic and energr crisis. (e) An IMF Breakfast meeting was held in which Honble Finance Minister emphasized on the importance of vaccination and support to vuinerable countries with vaccines and medical equipment and highlighted that India had continued its agenda of wide-ranging structural reforms even during the pandemic. (f) A Plenary session of International Monetary and Financial committee (IMFC) was held in which Hon'ble Finance Minister emphasized that despite the challenges of successive waves of pandemic, India has continued to implement key structural reforms and india is the only large economy that has delivered in letter and spirit on the Paris Commitment and is committed to the path to net-zero. ($ 2"4 G20 Finance Ministers arrd Central Bank Governors (FMCBG) meeting was held under the Indonesian G20 Presidency in Washington D.C. on the sidelines of World Bank-International Monetary Fund (WB- IMF) Spring Meetings. (h) First meeting of BRICS Finance Ministers and Central Bank Governors under the Chinese Presidency was held virtually. (il 2022 Spring Meetings of the International Monetary Fund (lMF) and World Bank and other related meeting/events were held in Washington DC and San-Francisco, USA. (vii) Other Meetings during the month (a) The fourth and final meeting of the Sth replenishment negotiations of Global Environment Facility (GEP) was held wherein the contributing participant countries pledged an amount of USD equivalent of 4.54 billion. India announced contribution of USD 18.75 million. (b) The 127tt, meeting of the DEA Screening Committee for consideration of proposals seeking financing from Multilateral Development Banks/ Bilateral was held. (c) Exceptional IDA- 19 Meeting was held to discuss providing linancial support to Ukraine and Moldova.(d) A Plenary meeting was organized by the Financial Stability Board to discuss the hnancial stability outlook, EME vulnerabilities and climate- related financial risks. (e) Board Meeting of Nationa1 Investment and Infrastructure F\rnd Trustee Limited were held. (f) Investor meeting of National Investment and Infrastructure Fund Limited was held. (g) A round of discussion between India and European Union (EU) on Bilateral Investment Treaty (BIT) in Brussels, Belgium. (h) 9th round of negotiations between India and UAE on Bilateral Investment Treaty (BIT) was held. (i) Third round of negotiation between India and UK on Bilateral Investment Treaty (BIT)/ Investment Chapter was held in New Delhi. (1) AIIB Board of Directors meeting to consider Comprehensive Review of the Accountability Framework and investment operations. (k) Executive Board of IFAD and Retreat was held at Rome, Ita,ly. 3 Minimum Government, Maximum Governance The use of ICT in submission of information is being encouraged. 4 Non-Compliance of ACC directions/orders Ni1 5, Details of FDI proposals cleared during the month and status of FDI proposals awaiting approval in the Department: Number of proposals cleared o2 Awaiting Approval in the Department 08Table 1 : INFLATION- CPI-C, WPI (in percent) March 2O21 Febnrary 2o22 March CPI-C 6.O7 6.95 WPI 7.89 13.11 14.55 I Source: NSO for CPI-C and OEA, DPIIT for WPI Note: WPI inJlation for last tuto montls and CPI-C inJTation for last one month is prouisional. Table 2 : MONETARY DEVELOPMENT Item t5.4.2022 Policy Repo Rate 4.O lo-Year G-Sec Par Yield (FBILI 7.22 Bank Credit Year-on-Year growth # tt.2 Note : # As on 8.4.2022. Table 3 : Merchandise Trade Performance (Customs Basis) (in US$ btllioil) Exports Imports Trade Balance March 202 1 t)- ) 48.9 (-) 13.6 March 2022 42.2 60.7 (-) 1B.s Table 4: Services Trade Performance (in US$ billionl* ][f.arch 2022 22.5 13.2 19.4 Source: Provisional data as per the Press Release dated 13.4.2022 of tlne * Department of Commerce, Ministry of Commerce and Industry. : Estimated. Table 5: Balance of Peyme[ts 2020-21 2021-22 Items I I {April- (April-Decemberf I Current Account Balance (in US$ (-\ 26.5 Current Account Balance / GDP (Per t.7 o t.2 I Source: Reserve Bank of India. I Table 6 : Foreign Exchange Reserves (in US$ bitlion)End-M.arch,2022 607.3 t5.4.2022 603.7 Source: Reserve Bank of India I Table 7: Exchange Rate ofthe Indian Rupee (Rupee per unit of foreign currency) yen US Dollar Pound Sterling Euro 1OO Japanese I 27.4.2022 76.6414 96.4767 81 .4509 59.8900 Source: Reserve Bank of India Table 8 : External Debt (US$ Billionf as at end of as at end of Percentage variation I December December 2020 PR 2021 P [(2/ 1]-U*1oo s68.3 Total External debt 16t4.e18.2 Source: Quarterly Report on External Debt as at end December 2021, DEA. Table 9 : Industrial Production Highlights Monthly Growth (YoY) in per cent December 2020 Jarrtary 2O2l February 202 1 2.2 (-) 0.6 ll 3.2 Index of December 2O21 Januarsr 2022 February 2022 Industrial o.7 1.5 )..7 Table 1O: Eight Core Industries Monthly Growth (YoY) in per cent January 2O21 February 2O21 March 2O21 1.3 (-) 3.3 r2.6 Eight Core Industries (ICI) Jarrttary 2022 Febnnry 2022 March 2O22 4.O 6.0 4.3