MUMBAI: Barring another wave of COVID-19 infections, the worst is over for India’s economy and policymakers may soon have more room to support a recovery, the central bank said in its January bulletin released on Thursday.
“Recent shifts in the macroeconomic landscape have brightened the outlook, with GDP in striking distance of attaining positive territory and inflation easing closer to the target,” the Reserve Bank of India (RBI) said in an article on the state of the economy.
“If these movements sustain, policy space could open up to further support the recovery,” it added.
The RBI slashed interest rates early last year to cushion the shock from the coronavirus crisis, but has left rates unchanged in recent months, cautious of rising inflation.
The RBI expects Asia’s third-largest economy to contract by 7.5 percent in the current fiscal year to March, but analysts believe it is likely to escape recession and see modest growth in the current quarter.
Growth will be mostly consumption driven, the RBI said.
The need to kickstart investment is growing more urgent to secure a durable turnaround and a sustainable growth trajectory, the RBI said.
It also added that the cash sitting idly on the balance sheet of companies and banks and the funds parked with it at the reverse repo must find their way toward productive sectors and into real spending on investment activity, before it imposes a persistent deflationary weight on real activity.
The RBI said stress on financial sector balance sheets could increase, but banks are in a better position now than they were during the 2008 global financial crisis.
It also noted a “vigorous resumption” of government spending which acts as an important growth driver when all other components of GDP are in deep retrenchment due to the pandemic.
“Recent high frequency indicators suggest that the recovery is getting stronger in its traction and soon the winter of our discontent will be made glorious summer,” the RBI wrote, quoting William Shakespeare.
Central bank: India has seen the worst, barring another wave of COVID-19
https://arab.news/4mxfq
Central bank: India has seen the worst, barring another wave of COVID-19
- ‘Recent shifts in the macroeconomic landscape have brightened the outlook’
- Central bank: Growth will be mostly consumption driven
Saudi Arabia opens 3rd round of Exploration Empowerment Program
RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has opened applications for the third round of the Exploration Empowerment Program, part of ongoing efforts to accelerate mineral exploration in the Kingdom, reduce early-stage investment risks, and attract high-quality investment from local and international mining companies.
The third round of the Exploration Empowerment Program offers a comprehensive support package targeting exploration companies and mineral prospecting license holders.
The initiative aims to lower investment risks for projects and support a faster transition from prospecting to development.
"The program provides coverage of up to 70 percent of the total salaries of Saudi technical staff, such as geologists, during the first two years, increasing to 100 percent thereafter, in line with program requirements.
This support aims to develop talent, build national capabilities in mineral exploration, promote job localization, and facilitate the transfer of geological knowledge.
The application for the third round opened on Jan. 14, allowing participants to benefit from the Kingdom’s attractive investment environment, its stable legal framework, and streamlined regulatory structures, as well as integrated infrastructure that supports the transition from mineral resources to operational mines.
The ministry has set the timeline for the third round, with the application period running from Jan. 14 to March 31.
This will be followed by the evaluation, approval, and signing of agreements from April 1 to May 31, with the eligible projects set to be announced between June 1 and July 31 of the same year.
The program stages include submitting exploration data during the reimbursement and payment phase from Sept. 1 to Nov. 30, followed by technical and financial verification of work programs and approval of the disbursement of support funds in January 2027.
The exploration data will then be published on the National Geological Database in April 2027.
The ministry emphasized that the EEP focuses on supporting the exploration of strategically important minerals with national priority. It also contributes to enhancing geological knowledge by providing up-to-date data that meets international standards, helping investors make informed decisions and supporting the growth of national companies and local supply chains.
The ministry urged companies to apply early to benefit from the program’s third round, which coincided with the fifth edition of the International Mining Conference, which was held from Jan. 13 to 15.
