Institute of Management Studies
D.A.V.V.
Finance Club
Batch: FA 2024- 26
Daily NEWS Report:
Date:25/03/2025
Day: Tuesday
__________________________________________________________
Contents
Electronics Exports to Top ₹3 Lakh Crore .................................................................. 2
Crude Import Bill Rises 2.9% in Apr-Feb .................................................................... 3
Primary Sector’s Share in GVA Declines .................................................................... 3
BYD Overtakes Tesla in Sales as Tech-Savvy Chinese Drivers Shift Preferences ......... 4
RBI Issues Revised Priority Sector Lending Guidelines ............................................... 5
SEBI Extends Suspension of Trading in 7 Commodity Derivatives.............................. 6
IREDA Board Approves ₹30,800 Crore Borrowing Program for FY 2025-26 ................ 6
1|Page
Headline Highlights:
Electronics Exports to Top ₹3 Lakh Crore
Key Highlights:
1. Record Growth in Electronics Exports:
o
India’s electronics exports are set to cross ₹3
lakh crore for the first time in FY25.
o
From April 2024 to February 2025, electronics
exports reached ₹2.87 lakh crore, marking a
35% increase from ₹2.11 lakh crore in the
previous fiscal year.
2. Smartphones as the Main Contributor:
o
Smartphone exports accounted for ₹1.75 lakh
crore out of the total ₹2.87 lakh crore in
electronics exports.
o
Apple (iPhone exports) led the segment, contributing ₹1.25 lakh crore (43% of total shipments).
o
Overall smartphone exports could surpass 70% of total electronics exports by the end of FY25.
3. Electronics Industry Ranking in Exports:
o
Electronics has become the third-largest export category, behind engineering goods and petroleum.
o
In FY24, petroleum exports exceeded electronics by ₹4.4 lakh crore, but the gap has now reduced to
₹2 lakh crore.
4. Government Initiatives Driving Growth:
o
Policies such as the Production-Linked Incentive (PLI) scheme for smartphones (launched in 2021)
played a crucial role in boosting exports.
o
The government plans to introduce new policies for further strengthening the electronics supply
chain.
5. Challenges in Engineering Goods Exports:
o
Tariff wars, especially US-imposed tariffs, have impacted engineering exports.
o
In February 2025, engineering exports fell by 8.62% year-on-year to $9.08 billion.
o
Steel, aluminum, and copper exports suffered due to tariff hikes (e.g., the US imposed a 25% duty on
Indian steel and aluminum).
6. Overall Trade Trends:
2|Page
o
Engineering exports grew positively for nine months but faced a decline in February.
o
The US remains the largest export destination for engineering products, but other markets like China
and Russia are also affected by tariff policies.
Crude Import Bill Rises 2.9% in Apr-Feb
Key Highlights:
•
•
•
Increase in Import Bill & Volume:
o
India's crude import bill rose 2.9% to
$124.7 billion in the first 11 months of
FY25, up from $121.2 billion in FY24.
o
Crude oil imports increased 3% to 219.9
million tonnes.
Rising Dependence on Imports:
o
India's crude import dependence rose to
88.2%, up from 87.7% last year.
o
Domestic oil production declined 4% in February to 2.2 million tonnes, contributing to higher
imports.
Impact of Russian Crude & Policy Changes:
o
Lower Russian crude discounts and geopolitical uncertainties have raised costs.
o
India is diversifying suppliers, with increased interest in US crude and LNG imports.
o
Government amendments to the Oilfields (Regulation and Development) Act aim to boost domestic
oil and gas production.
India’s crude import bill is expected to reach $101-104 billion by FY25-end.
Primary Sector’S Share in GVa DeclineS
[Gross Value Added (GVA) measures the total value of goods and services produced in an economy after deducting
the cost of inputs and raw materials. It reflects the contribution of different sectors to economic growth and is a key
indicator of overall economic activity.]
Key Insights:
•
•
Decline in Primary Sector Contribution:
o
The primary sector’s share in Gross
Value Added (GVA) dropped to
19.7% in FY24, its lowest in the
current GDP series (base year 201112).
o
This marks a decline from 21.7% in
FY12 and 22.1% in FY21 (which saw
a temporary rise due to the
pandemic-driven agricultural
dependence).
Employment Shift & Rural Distress:
3|Page
•
o
Due to reverse migration and limited employment opportunities, the share of agriculture in the
rural workforce increased to 46.1% in FY24, up from 42.5% in FY19.
o
However, rural unemployment rose to 7.6% in FY24, compared to 7.2% in FY23 and 7.3% in FY22,
indicating persistent economic challenges.
Sector-Wise Performance:
o
Tertiary sector (services) expanded significantly, growing to 54.4% in FY24 from 49% in FY12,
reflecting a structural shift in the economy.
o
Secondary sector (manufacturing, construction, etc.) declined from 29.3% in FY12 to 25.9% in FY24,
signaling weaker industrial performance.
BYD Overtakes Tesla in Sales as Tech-Savvy Chinese
Drivers Shift Preferences
Key Highlights
BYD's Revenue and Profit Surge:
•
Shenzhen-based BYD reported a revenue of 777 billion
yuan ($107 billion) in 2023, marking a 29% growth.
•
Net income rose 34% year-on-year to 40.3 billion
yuan, surpassing analyst expectations.
•
Tesla’s revenue for 2023 stood at $97.7 billion.
Tech-Driven Growth & Market Dominance:
•
BYD’s advanced battery-swapping technology, EV charging ecosystem, and driver-assistance features have
strengthened its appeal.
•
Investors showed confidence as BYD’s total vehicle sales reached 4.27 million units last year, outpacing
Tesla’s 1.76 million EVs.
•
Unlike Tesla, which has struggled with declining shipments, BYD continues to expand its customer base with
innovative tech solutions.
Stock Market Impact & Industry Trends:
•
BYD’s market capitalization nears $157 billion, while Tesla’s stock has dropped 38% this year.
•
Tesla’s slowing European sales allowed Volkswagen and BMW to outsell it in February 2024.
•
Factors like Elon Musk’s political stance and the phasing out of Tesla’s Model Y impacted the company’s
performance.
4|Page
RBI Issues Revised Priority Sector Lending
Guidelines
🔹 Overview of the New Guidelines
The Reserve Bank of India (RBI) has issued revised guidelines on Priority Sector Lending (PSL) to enhance the
targeting of bank credit toward key sectors of the economy. These new norms will come into effect from April 1,
2025.
According to the RBI’s statement, the revised framework aims to expand coverage and improve credit flow to
priority sectors, including agriculture, MSMEs, export credit, education, housing, social infrastructure, and
renewable energy.
🔹 Key Changes in the PSL Guidelines
1. Enhanced Loan Limits for Housing under PSL
o
o
Housing loan limits for PSL have been revised:
▪
₹50 lakh for centres with a population of 5 million and above
▪
₹45 lakh for centres with a population between 1 million and 5 million
▪
₹35 lakh for centres with a population below 1 million
Maximum cost of dwelling units has also been specified.
2. Boost to Renewable Energy Financing
o
Banks can now lend up to ₹35 crore for renewable energy-based power generation and public
utilities under PSL classification.
o
Individual households can avail up to ₹10 lakh for renewable energy projects like solar panels and
wind energy setups.
3. Changes in Urban Cooperative Banks (UCBs) Lending Norms
o
Overall PSL target for UCBs raised to 60% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent
of Off-Balance Sheet Exposures (CEOBSE), whichever is higher.
o
Cap on loans by UCBs to individual housing beneficiaries removed, expanding access to funds.
4. Expanded Definition of ‘Weaker Sections’
o
The list of eligible weaker section borrowers has been expanded, ensuring better credit access to
marginalized groups.
🔹 Impact and Analysis
Better Credit Access to Key Sectors:
•
Increased credit flow to agriculture, MSMEs, and social infrastructure, strengthening the foundation of the
economy.
5|Page
•
Expanded housing finance limits make home ownership easier for different income groups.
Support for Renewable Energy & Sustainability:
•
Higher loan limits for green energy projects will boost India's transition to sustainable power generation.
Strengthened Cooperative Banking System:
•
Raising the PSL target for UCBs and removing loan caps will improve their lending capacity.
Empowerment of Weaker Sections:
•
The wider definition of weaker sections ensures that more underprivileged borrowers gain formal financial
inclusion.
SEBI Extends Suspension of Trading in 7 Commodity
Derivatives
The Securities and Exchange Board of India (SEBI) has extended the suspension of derivatives trading in seven
agricultural commodities for another year, now lasting until March 2026.
🔹 Affected Commodities
The suspension applies to:
•
Wheat, Moong, Paddy (Non-Basmati), Chana, Crude Palm Oil, Mustard Seeds & its derivatives, Soybean &
its derivatives.
Background & Timeline
•
Initially imposed in December 2021 to control price volatility.
•
Extensions were granted multiple times, with the latest restriction now continuing until March 31, 2026.
Purpose & Impact
•
Aims to stabilize prices and prevent speculation in agricultural markets.
•
Traders and investors face continued restrictions, impacting market liquidity.
•
While it may curb price fluctuations, some argue it limits price discovery for farmers and businesses.
IREDA Board Approves ₹30,800 Crore
Borrowing Program for FY 2025-26
The Indian Renewable Energy Development Agency (IREDA) has approved a significant borrowing program of
₹30,800 crore for the financial year 2025-26. This initiative is aimed at raising capital to fund renewable energy
projects across India, supporting the government’s clean energy transition goals.
Key Highlights of the Borrowing Program:
•
The funds will be raised through various financial instruments, including:
6|Page
•
o
Bonds
o
Term Loans
o
Commercial Papers
o
Other market borrowings from domestic and international markets
The decision aligns with IREDA's strategy to expand its financial capacity and strengthen its role as a key
lender in India's renewable energy sector.
Impact on Market & Stock Performance
Following the announcement, IREDA's share price surged by approximately 3%, with strong buying interest from
investors. Experts attribute this rise to market optimism regarding IREDA’s aggressive expansion and financing plans.
Growth Outlook
IREDA has been playing a crucial role in financing renewable energy projects, and this borrowing plan is expected to:
•
Provide critical funding for upcoming solar, wind, and bioenergy projects.
•
Support the government's target of 500 GW of non-fossil fuel-based capacity by 2030.
•
Improve liquidity and enable more project financing at competitive rates.
Market analysts have responded positively, with some recommending a buy position for IREDA shares, given its
strong financial backing and growth potential.
Prepared By:Market Mavericks
7|Page