- India’s economic activity recouping: RBI
Economic activity in India is recouping from a brief spell of moderation in January in view of the less virulent effects of Omicron, as per an article by the Reserve Bank of India (RBI) on state of the economy.
Unlike in the first two waves, overall consumer and business confidence stayed resilient on back of the accelerated pace of vaccination, better prospects on the general economic situation, household incomes and spending.
- E-way bill generation up by 14% in Feb as compared to Jan
First half of February 2022 saw the number of e-way bills being generated for inter-state trade in goods under the Goods & Services Tax (GST) system at 2359,000 a day.
This is 14 per cent higher than the e-way bill generation in the first 16 days of January 2022, reflecting a pick-up in commerce after the spread of the Omicron variant of coronavirus (Covid-19) subsided.
- Surplus liquidity in banking system has moderated
Surplus liquidity in the banking system has moderated with the daily net liquidity absorption by the RBI falling to Rs.6.4 trillion in the second half of January to February 2022 from Rs.7 trillion during December 2021 to mid-January this year,
This is said to be on account of liquidity rebalancing through variable reverse rate repo (VRRR) auctions.
- Demand for FMCG declines in rural India
Big FMCG companies experienced a decline in the sales volume in rural areas during the December 2021 quarter. The rural sales in India accounts for nearly 30-40 per cent for these companies.
A major reason for this decline is, rise in prices and rural consumers downgrading to cheaper products. In order to revive the sales volume, these companies are relying on lower-priced packs, distribution expansion and increase in market spending.
- Travel agencies, online portals, hotels ram up hiring
Travel agencies and online portals such as Thomas Cook and EaseMyTrip are recruiting people across functions as covid infections are falling and restrictions are easing
Leisure travel bookings as well as business travel has picked up pace. Leading hotel chains such as ITC-backed Fortune Hotels, Lemon Tree Hotels and Royal Orchid Hotels are also ramping up manpower.
