Infrastructure poised for investment boom

Dear Readers,

Today's newsletter brings you the latest updates across diverse sectors:

• Infrastructure investment poised for a 38% surge by 2026
• June rainfall falling 20% below average
• NHAI's ambitious ?44,000 crore road projects in FY25 and more.

Plus, discover why global central banks are eyeing gold with optimism and the government's plans to revisit export obligations.

Stay informed with our concise briefing!

Infrastructure sectors to see 38% investment growth by 2026

Key infrastructure sectors in India, including renewable energy, roads, and real estate, are set to experience a 38% investment growth by fiscals 2025 and 2026, reaching Rs 15 lakh crore. This surge, driven by the need for sustainable infrastructure and improved connectivity, is supported by strong policy interventions and increased investor interest, according to a CRISIL Ratings report.

Since 2014, there has been a 500% increase in the road transport and highway budget allocation, leading to a substantial enhancement in infrastructure development. The speed of highway construction reached an impressive 37 km/day in 2020-21, marking a record for the fastest highway construction in India

June rainfall has dropped by 20% from the average

India has received 20% less rainfall since the monsoon began on June 1, with significant stagnation between June 12 and 18, according to the IMD. During June 1-18, the country recorded 64.5 mm of rainfall, below the 80.6 mm LPA. Despite the slowdown, the IMD forecasts the monsoon will advance into several regions, including Maharashtra, Chhattisgarh, Odisha, and Bihar, within the next few days.

NHAI to Launch ?44,000 Crore BOT Road Projects in FY25

The National Highways Authority of India (NHAI) plans to offer 15 road projects worth Rs 44,000 crore, covering 900 km, for bids under the build-operate-transfer (BOT) mode in FY25. These 15 projects are part of a larger government plan to offer 53 projects worth over Rs 2.2 lakh crore, covering 5,200 km, under the BOT mode over the next three to five years.

FACT OF THE DAY

Power demand hit a record 89 GW as North India endures its longest heatwave spell, with nationwide peak demand soaring to 250 GW this summer due to the surge in air conditioner and cooling appliance usage.

A record-breaking heatwave in India's northern plains has driven power demand to an unprecedented 89 GW, with Delhi's temperatures soaring to 44°C, feeling like 49.2°C due to high humidity. From March to May, the country reported nearly 25,000 suspected heat stroke cases and 56 heat-related deaths.

Nationwide peak power demand hit 250 GW this summer, fueled by increased use of cooling appliances. Despite importing 25-30% of its electricity from neighboring regions, relief is only expected by June 26 as the IMD forecasts some cooling, though monsoon rains remain 20% below normal.

WGC survey reveals global central banks' positive outlook on gold

The World Gold Council's (WGC) 2024 Central Bank Gold Reserves Survey indicates that central banks globally are poised to boost their gold purchases over the next 12 months. This anticipated increase continues a recent trend of substantial gold buying, fueled by economic and geopolitical uncertainties.

Government proposes to review export obligation periods for select sectors

The government has proposed amendments to the export obligation period for various sectors, including wheat, raw sugar, natural rubber, spices, pharmaceuticals, and tea, to facilitate their exports. Under the current system, India permits duty-free import of inputs used for manufacturing exports under advance authorisation, provided exporters ship the goods within a specified period. Failure to do so results in penalties.

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