Business, Economy & Banking Current Affairs - 2019

Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.

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Growth of eight core sectors slows to 2.1% in July 2019

According to official data released by Government, Growth of eight core industries (Index of Eight Core Industries) dropped to 2.1% in July 2019. It was mainly due to contraction in coal, crude oil, natural gas and refinery products. These eight sectors had expanded by 7.3% in July 2018. Moreover, it has declined by 6.2% during April to July, 2019-20 over the corresponding period of previous year.

Sector wise breakaway (July 2019)

Index of Eight Core Industries

It is monthly production index, which is also considered as lead indicator of the monthly industrial performance. It contains production and growth figures of eight core industries viz. steel, electricity, crude oil, refinery products, coal, cement, natural gas and fertilizers. It is compiled by Central Statistic Organisation (CSO) under Union Ministry of Commerce and Industry based on monthly production information received from source agencies. These core industries are considered as main or key industries of the economy and serve as backbone of all other industries

Weightage: Petroleum Refinery production (weight: 28.04%), Electricity generation (19.85%), Steel production (17.92%), Coal production (10.33%), Crude Oil production (8.98%), Natural Gas production (6.88%), Cement production (5.37%), Fertilizers production (2.63%

Relation with index of industrial production (IIP):  These eight core sectors constitute 40.27% of IIP.

Economic Slowdown

The data concerned with slowdown in growth of eight core sector comes days after India’s GDP growth rate slowed to 6-year low of 5% for first quarter of FY 2019-20. It was down from 5.8% in fourth quarter of FY 2018-19. In first quarter of the previous financial year, GDP growth was 8.2%. This effectively means that India’s growth rate has fallen by 3% in barely a year’s time. This is fourth successive decline in GDP, from 8% in 1st quarter of FY19 to 5% in this quarter. It is also the slowest growth since Q1 in 2013.

India’s longest electrified train tunnel inaugurated in Andhra Pradesh

Vice-President M Venkaiah Naidu dedicated the country’s longest electrified rail tunnel between Cherlopalli and Rapuru in Andhra Pradesh. He also inaugurated electrified railway line between Venkatachalam and Obulavaripalli at Gudur railway station and also flagged off Gudur-Vijayawada inter-city superfast express.

Cherlopalli-Rapuru Electrified rail tunnel

It is located between Cherlopalli and Rapuru Railway Stations in Andhra Pradesh. It was built at a cost of Rs. 437 crore and has 44 trolley refuges and 14 cross-passages in a horseshoe design. New Australian Tunneling Method (NATM) was used to construct this tunnel. Its total length is 6.3km. Its height (from rail level to roof) is 6.5 meters and minimum height of contact wire is maintained at 5.2m. LED lightening is provided at 10m intervals inside the tunnel. It is provided by two traction power supply sub-stations near Cherlopalli and near Rapuru. It will provide viable rail connectivity between Krishnapatnam Port and hinterland for seamless movement of freight.

Venkatachalam-Obulavaripalli Electrified railway line

It has nine railway stations along the route, 146 bridges, 60 road-under-bridges and two tunnels. It has no level crossings. It reduces distance by 72 km for trains coming from Guntakal division to Krishnapatnam and eases traffic density in the Obulavaripalli-Renigunta-Gudur section. It will facilitate operation of freight trains on Obulavaripalli-Venkatachalam-Krishnapatnam Port route. It will also provide shortest path on Chennai-Howrah and Chennai-Mumbai rail routes. It will ease congestion of both freight and passenger carrying trains in Vijayawada-Gudur-Renigunta-Guntakal sections.