CII Strategy Cell and Infrastructure Bonds FY25

SBI economists predict a 6.5% GDP growth for the second quarter, down from 6.7% in the first quarter. Concerns about a cyclical slowdown exist.

The Indian FMCG sector experienced a 5.7% growth in value and 4.1% in volume during July-September. Rural demand, at 6%, outpaced urban demand (2.8%).

The growth in FMCG is attributed to price increases (1.5%) and rising commodity costs. Hindustan Unilever noted moderating urban demand, leading to calibrated price adjustments.

S&P Global Ratings forecasts 6.5-7% annual GDP growth from 2025-2027 based on increased infrastructure spending and private consumption.

The Reserve Bank of India (RBI) forecasts 7.2% growth for FY24 driven by strong demand and healthy corporate balance sheets. Corporate borrowing is gaining momentum, but external uncertainties may affect capital expenditure.

Goods exports surged 17.25% to $39.2 billion in October 2024, while imports rose 3.9%. The trade deficit widened to $27.14 billion.

Strong Christmas demand and growth in engineering goods, chemicals, electronics, rice, and textiles contributed to the 17.25% increase in exports.

The process of issuing bonds to fund infrastructure projects. These bonds are typically issued by government agencies or public-private partnerships to raise capital for building and maintaining infrastructure like roads, bridges, and airports.

In the fiscal year 2025, various banks in India issued a total of ₹74,236 crore in infrastructure bonds. This indicates a significant investment towards developing infrastructure in India.

The largest public sector bank in India, State Bank of India took the lead in infrastructure bond issuance in FY25, contributing the highest amount of ₹30,000 crore.

The Confederation of Indian Industry (CII) launched a strategy cell in Coimbatore to assist businesses, particularly in select industries, in achieving global competitiveness.

The strategy cell provides tailored support to chosen industries for 6-12 months, helping them achieve their specific growth goals. This involves providing mentorship, expertise, and guidance.

The strategy cell initially focuses on the manufacturing sector, particularly MSMEs, as they require mentorship and support for informed strategic decisions and expansion opportunities. The cell utilizes its expertise to assist these sectors in achieving sustainable growth.

The strategy cell provides free mentorship, combining the expertise of its members to offer 200+ hours of guidance and support to businesses. This helps industries define medium and long-term goals for sustainable development.

The strategy cell aims to foster a culture of growth and improved competitiveness by providing customized guidance to participating industries. This helps them enhance productivity and become global players, aligning with CII's mission.

A $98 million loan agreement between India and ADB to improve plant health management in horticulture for farmers, aiming to increase crop yield, quality, and climate resilience.

An initiative supported by the ADB loan that focuses on developing a regulatory framework and institutional systems for effective implementation of clean plant practices.

Facilities established under the CPP that will house cutting-edge diagnostic laboratories to ensure disease-free planting material.

A system to accredit private nurseries and certify their planting materials, ensuring disease-free plants are provided to farmers.

India's largest social gaming platform, WinZO, partnered with DPIIT to strengthen India's gaming industry and support over 2,000 interactive entertainment startups.

This sector is projected to grow to $60 billion by 2034, creating over 2 million jobs in India.

The WinZO collaboration aims to address the skills shortage in gaming by providing training in coding, animation, game design, and development.

India aspires to become a global leader in gaming, targeting a share of the $300 billion global market.

The project will improve plant health management, boost crop yield, quality, and climate resilience for Indian horticulture farmers.

The program involves collaboration with private nurseries, researchers, state governments, and growers’ associations.

SIDBI (Small Industries Development Bank of India) is a financial institution that provides financial and non-financial support to Micro, Small and Medium Enterprises (MSMEs) in India. It aims to promote growth and development of the MSME sector.

Reliance Industries is investing ₹65,000 crore to establish 500 compressed biogas (CBG) plants in Andhra Pradesh. The goal is to utilize agricultural waste and other organic materials to produce renewable energy and reduce dependence on fossil fuels.

The World Bank and Asian Development Bank (ADB) have provided ₹13,500 crore to support the development of the Amaravati capital city in Andhra Pradesh. This funding will be crucial for infrastructure development and economic growth in the region.

Federal Bank has issued infrastructure bonds worth ₹1,500 crore to raise capital. These bonds will be used to invest in infrastructure projects, contributing to the growth and development of the country.

The partnership between SIDBI and Peenya Industries Association aims to enhance support for MSMEs in the region through financial assistance, capacity building programs, and access to resources. This could lead to increased growth and innovation within the MSME sector.

Net FDI is calculated by subtracting the total value of outward FDI (investment made by a country's companies abroad) from the total value of inward FDI (investment made by foreign companies into the country).

Repatriation refers to the withdrawal of profits, dividends, or capital invested by a foreign company from the host country back to their home country.

KBL Peak is an education loan offered by Karnataka Bank Ltd. It provides financing of up to ₹2 crore for higher education in India and abroad, covering tuition, accommodation, travel, and more.

KBL Genius is a student savings account offered by Karnataka Bank Ltd., designed for efficient financial management and comes with features like cyber insurance, digital banking, and debit card benefits.

These are categories of Central Public Sector Enterprises (CPSEs) in India, classified based on their performance, size, and profitability. Maharatna is the highest category, followed by Navratna, and then Miniratna.

NITI Aayog is the government's policy think tank in India, providing strategic advice for the government on various issues, including economic development.

The Department of Investment and Public Asset Management (DIPAM) is an Indian government department responsible for managing and disinvesting government stakes in public sector enterprises.

The Department of Public Enterprises (DPE) is the Indian government department responsible for overseeing and regulating Central Public Sector Enterprises (CPSEs).

This revocation provides more autonomy and flexibility to Central Public Sector Enterprises (CPSEs), allowing them to form joint ventures and subsidiaries more easily. It also signifies a move towards streamlined and efficient procedures.