Business News: Unemployment rate rises to 7.45 percent in February, decline in manufacturing and consumption

The unemployment rate in the country has increased once again. It stood at 7.45 percent in February, which was 7.14 percent in January. The Center for Monitoring in Indian Economy (CMIE) said that there has been more unemployment in cities than in villages. Unemployment has been 7.23 percent in villages and 7.93 percent in cities. According to the data, however, the unemployment rate in cities declined to 7.93 percent from 8.55 percent in January. In villages, it has increased from 6.48 percent to 7.23 percent. The highest unemployment rate in February was on February 18, which was 7.84 percent. 29.4% unemployment rate in Haryana and 4% in UP According to the data, the unemployment rate in Haryana is 29.4%, while it is 17.1% in Jammu & Kashmir, 28.3% in Rajasthan, 13.9% in Himachal and 12.3% in Bihar. Uttarakhand has a 2.3% unemployment rate, UP has four, MP has two and Chhattisgarh has the lowest unemployment rate of 0.8%.

Revision of figures led to a decline in manufacturing and consumption

India's Chief Economic Advisor (CEA) V Ananth Nageswaran on Wednesday said that the performance of the manufacturing sector and private consumption expenditure in the December quarter of 2022-23 looks subdued due to the high base effect. He said the base of GDP growth had been increased by the revision of the figures of the last three financial years. The National Statistical Office on Tuesday revised the GDP growth rate data for the last three financial years 2019-20, 2020-21, and 2021-22. Also released the second advance estimate of GDP for 2022-23. He said that if the base effect had not increased, manufacturing would have grown by 3.8 percent and private consumption expenditure by 6 percent in the December quarter.

The growth rate will be 5.5% in 2023-24

Moody's on Wednesday raised the country's economic growth forecast. It said the GDP growth rate in 2023-24 could be 5.5 percent. Earlier 4.8 percent was estimated.

Axis buys Citibank's retail business

Citibank's retail business in India has now been merged with Axis Bank. The deal has been done for 11,603 crores. Citibank's retail business includes credit cards, personal and home loans, retail banking, insurance services, and others. From now on all the services related to retail business including all branches, and ATMs will be provided through Axis Bank. All customers and employees associated with this business will also become part of Axis. Citibank India's 30 lakh customers and 3,200 employees will also become Axis.

Petrol-diesel: up to 13 percent increase in demand

After a decline in winter, there was a sharp increase in the demand for petrol-diesel (fuel) in February 2023. Petrol sales rose 12 percent year-on-year to 2.57 million tonnes in February. Sales are 1.57% higher as compared to the same month of Covid affected 2021. Diesel sales rose 13% to 6.52 million tonnes in February. Aviation fuel (ATF) demand increased by 41.3 percent year-on-year to reach 5,74,200 tonnes. Cooking gas (LPG) sales increased by 2.43 percent to reach 2.53 million tonnes.

Electricity consumption: increased by more than 9% to 117.84 billion units

Electricity consumption in the country increased by more than 9 percent year-on-year to reach 117.84 billion units in February 2023. This increase indicates a faster pick-up in economic activity in February. Electricity consumption in February 2022 was 108.03 billion units. In February 2023, the maximum demand increased to 209.66 GW in a single day.

Also Read: GDP: Government will release October-December GDP figures today, growth rate may remain up to 5.5 percent in third quarter