Development Watch – Week #1 Dec’24

Development News

---

Strong agriculture growth to sustain in FY-25

Agriculture sector in India is poised for strong growth in second half of FY-25. Favorable monsoon, higher reservoir levels, and healthy Rabi sowing season are driving this growth and will lead to increase in farm incomes. Despite challenges in other sectors, resilient agriculture and government measures are expected to support economic recovery and boost rural demand. There is 57% chance of La Nina conditions between October and December, extending into January-March period. Compared to El Nino, La Nina brings better monsoon activity in India. India also highlights importance of financing for achieving UNCCD goals at a UN conference in Saudi Arabia. India has restored 22.5 million hectares of degraded land. It aims for 26 million hectares by 2030. The Green Credit Programme and microfinance support sustainable agriculture. The Green India Mission follows a landscape-based approach for land restoration through multi-sectoral convergence.

1.45 Crores registrations in PM Surya Ghar Yojana

1.45 Crores people have registered for the PM Surya Ghar Muft Bijli Yojana. The scheme aims for 1 Crore rooftop installations by FY 27. So far 6.34 lakh installations are complete and 26.38 applications have been reported on the National Portal. The state of Gujarat tops the list. Subsidies are also being released regularly. The ministry is coordinating stakeholders to ensure successful implementation. The scheme has an outlay of Rs. 75,021 Crores by the Ministry of New Renewable Energy. Gujarat has seen maximum solar installations under the scheme at 2,86,545, followed by Maharashtra with 1,26,344 installations and Uttar Pradesh at 53,423. The MNRE is coordinating with all stakeholders involved such as REC, Discoms, and vendors for successful implementation of the scheme. Going ahead, there is a need for Rs. 30 lakh Crore funding over the next 7-8 years for India’s energy transitions. There is a rapid growth in solar capacity and bank financing and storage solutions are very important for achieving 500 GW renewable energy capacity target by 2030.

EVs and RE cannot alone solve climate change

Effectiveness of common climate change solutions can be disputed. Renewable energy and electric cars are not sufficient and there is a need for community-based strategies and local knowledge. Bangladesh has adapted methods like real solutions which are more local, especially in agriculture. There is also a negative environmental impact of militarization, which goes under-researched. During the Iraq War, the US military was consuming 1.3 billions of oil annually. The west focuses too much on data and technology, overlooking local knowledge. Everyone having an electric vehicle is not going to solve the problem. India has always been a water stressed region and yet farmers have been able to wrest a crop from that soil for millennia.

5 Indian cities among fastest growing urban centres

Bengaluru, Delhi, Mumbai, Hyderabad and Pune are among top 15 fastest-growing global urban centers by 2033. Bengaluru is recognized for its thriving tech ecosystem and projected high GDP growth per capita. Delhi is on track to become the world’s most populous city by 2050. It is attracts migration and economic activity. India is undergoing rapid urbanization, robust economic growth and technological innovation. Mumbai anchors national global trade and investment aspirations. Hyderabad and Pune are witnessing remarkable growth in technology, life sciences and advanced manufacturing sectors. India’s growth story is fueled by the government’s focus on infrastructure development, a simplified tax regime, and policies promoting industrial resurgence. With only 35% of the population living in urban areas, continued migration from smaller towns and rural areas is expected to drive urban expansion. Indian cities are forecasted to witness a GDP surge of over 68% by 2033. Rising disposable incomes and a burgeoning middle class will drive consumption and investment.

3.8 million houses allocated under new PMAY-G norms

Rural Development Ministry has announced the allocation of 3.8 million houses under PMAY-G across 18 states, with an initial release of Rs. 10,668 Crores for construction of new houses. 20 million new dwelling units have been proposed to be constructed over the next 5 years. The Ministry has spent Rs. 1.03 lakh crore in FY-24 this fiscal year on various schemes. A new survey will identify more beneficiaries under relaxed eligibility criteria. The Lakhpati did scheme now boasts 11.5 million members. It is implemented through SHGs and aims to boost earnings of women. In August 2024, the cabinet had approved Rs. 3.06 lakh crores to build 30 million houses across India, over the next 5 years. 20/30 million would be built under the PMAY-G. Under the 4th phase of PMGSY, 6,614 km of rural roads have been sanctioned, of which 3,380 km will be built in West Bengal. India also faces an estimated affordable housing shortage of 31.2 million units by 2030. It presents a market size of Rs. 67 trillion. There is a potential financing opportunity of Rs. 45 trillion for banks and housing finance companies.

Rs. 56,993 Crore annual subsidy on Railway tickets

A total subsidy of Rs 56,993 crore is given every year by the Indian Railways to all categories of passengers. There is a 46% rebate on every ticket. Among recent developments, the railways has started Namo Bharat Rapid Rail service between Bhuj and Ahmedabad. As per the railways, the satisfaction level of passengers is extremely high due to its superior service. Namo Bharat Rapid Rail has improved intercity connectivity by covering the 359-kilometre distance between Bhuj and Ahmedabad in 5 hours and 45 minutes, with stops at several stations along the way.

Amazon’s hyperscale data center in Palava

Amazon India has acquired an over 38.18-acre land parcel in Palava near Mumbai from realty developer Lodha, listed as Macrotech Developers, for more than Rs 450 crore with a plan to develop a hyperscale data centre. Amazon’s India subsidiary Amazon Data Services India will also get access to the already sanctioned floor space index. This has a permissible development potential of around 4.16 million sq ft. Amazon has paid over Rs 396 crore out of the total consideration amount to Macrotech Developers at the time of execution and registration of the sale agreement. The balance amount of over Rs 54 crore will be paid within a certain time frame. Prior to this, ADS has also leased land parcels from L&T in Powai, and a commercial tower in Thane. Google and Microsoft have also started setting up their hyperscale data centres in India. With growing digitization in India, data centres are becoming more crucial for several concepts such as payments, gaming, or even for needs of upcoming trends such as the metaverse.

India-Russia collaboration on Railways

India and Russia are set to enter a pact on rail manufacturing soon. Russia is set to invest in Indian train and component manufacturing to meet some of its own requirements. Russian railway company TMH has shared an expression of interest. They have huge domestic requirements and for that they want to set up manufacturing facilities here. They want to get these supplies from India. TMH is the majority stakeholder in Kinet Railway Solutions, which holds a Rs 55,000 crore contract with Indian Railways. This contract covers the production and 35-year maintenance of 1,920 Vande Bharat sleeper coaches. The current sanctions on Russia will not impact the project.

Uber’s ‘shikara’ booking service for Srinagar

Uber has launched its first water transport service in India, with a booking of a shikara at Dal Lake in Srinagar through its app, a senior company official said on Monday. The company introduced the first service of its kind in Asia. Uber Shikara is an attempt to blend technology and tradition to give a seamless experience to travelers for their shikara ride. Uber’s water transport service in India is also the first in Asia. Uber offers water transport booking in some of the European countries including Venice in Italy. In India, the company has initially onboarded seven shikaras and plans to gradually expand the fleet based on the service’s traction. Uber users will be able to book shikara at government-determined rates. Each Uber Shikara ride can be booked for a period of 1 hour between 10 am to 5 pm, allowing up to 4 passengers from Shikara Ghat No 16. Uber Shikara rides can be booked 12 hours prior and up to 15 days in advance. There are around 4,000 shikaras in Dal Lake.

---