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Indian government consumption key to growth in economy amid pandemic, central bank says

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MUMBAI (Reuters) – Indian government spending will support the economy during the pandemic, but private consumption will be needed to drive any economic recovery once the coronavirus threat eases, the central bank said on Tuesday.

“An assessment of aggregate demand during the year so far suggests that the shock to consumption is severe, and it will take quite some time to mend and regain the pre-COVID-19 momentum,” the Reserve Bank of India said in its annual report.

April-June quarter GDP data, set to be released on Aug. 31, is expected to show a contraction of 20%, according to a Reuters poll.

Private consumption will come back gradually with non-discretionary spending leading the way, until a durable increase in disposable incomes enables discretionary spending to catch up, the bank added.

“Upticks that became visible in May and June after the lockdown was eased … appear to have lost strength,” the bank said.

This weakening was mainly due to reimposition or tougher imposition of lockdowns, suggesting the contraction in economic activity was likely to prolong into the second fiscal quarter, it added.

Key downside risks to growth are wider pandemic spread, a deviation of seasonal monsoon rains from the predicted normal volume and global financial market volatility, the bank said.

The RBI advised that fiscal incentives for industry ought to be re-aligned in favour of productive labour-intensive companies so as to generate employment.

It also highlighted the need for specialised infrastructure-focused lending companies to help drive funding of major infrastructure projects. It also called for the diversification of financing options for companies, saying capital markets and foreign direct investment offer opportunities to bring in investors with a longer-term view, as also more durable capital.

The RBI said the banking sector needs to be freed of risk aversion, which is impeding the flow of credit to productive sectors and undermining the role of banks in the economy.

Despite a reduction in banks’ bad loans as of March 2020, the system’s resilience will be tested by the economic fallout of the pandemic, since measures to alleviate it masked the consequent build-up of stress in the system, the RBI said.

“Against this backdrop, a recapitalisation plan for public and private sector banks assumes critical importance,” it added.

In a separate report, the RBI had warned that banks’ bad loans could nearly double by the end of this fiscal year, while the capital adequacy ratio could fall to 11.8% in a severely stressed situation.

Data in the annual report showed frauds of 100,000 rupees and above at banks increased by 159% in terms of value in 2019/20, but the RBI said the date of occurrence of these was spread out over several previous years.

Total frauds stood at 1.86 trillion rupees in FY20 versus 715.43 billion rupees in FY19, data showed.

In the April-June quarter of 2020, however, frauds came down to 288.43 billion rupees in value versus 422.28 billion in the corresponding quarter in 2019.

The RBI’s own balance sheet increased 30.02% by June 30, it added.

The increase on the asset side was due to a rise in domestic and foreign investments, loans and gold while on the liability side it was due to the increase in notes issued, deposits and other liabilities, RBI said.

Reporting and photo: Reuters

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Indian influencer Niki Mehra in Maldives

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Maldives Marketing and Public Relations Corporation (MMPRC/ Visit Maldives) hosted a familiarisation trip with Amilla Maldives for high-end influencer, Niki Mehra, from India to experience the luxury and romantic offerings of the Maldives from 3rd – 6th May 2024.

The familiarisation trip was a great opportunity to Niki Mehra, a renowned Indian model, fashion, beauty and travel content creator and social media influencer with over half a million followers who has carved a niche in the Indian fashion industry with her unique sense of style. During her time in the Sunny Side of Life, Niki Mehra showcased luxury to romantic experiences of the destination.

The trip promoted Maldives through social media platforms of Niki Mehra while highlighting experiential itinerary offerings of the Maldives. Additionally, the influencer trip assisted MMPRC in propelling growth in the luxury travel segment and honeymoon market by showcasing the Maldives as a premier honeymoon destination for the Indian travellers.

The Indian market has been a strong market for the Maldives over the years, currently ranked number 6 with 46,970 tourists as of 13th May 2024. Additionally, MMPRC showcased the Maldives in OTM and SATTE held earlier this year. MMPRC is committed to boosting the arrivals from the market and has exciting marketing activities planned for future, including joint campaigns, familiarisation trips, participation in major events and other campaigns which provides numerous opportunities to showcase the breathtaking Maldives to the market, attracting more Indian travellers.

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130 hotels in The Prestige Collection with 4 Maldives properties

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The Prestige Collection has reached 130 hotels in its portfolio, continuing to uphold quality and excellence as core pillars. It represents the most exclusive selection within Keytel, the world’s first alliance of independent hotels.

Since its establishment in 2007, The Prestige Collection has been dedicated to meeting the growing demand for luxury hotels, becoming a reference for hospitality industry specialists. Despite its focus on independent hotels, the collection has successfully attracted prestigious properties from international luxury chains such as Rosewood Villa Magna, Mandarín Oriental Ritz Madrid, and Fairmont Mayakoba in Riviera Maya. These hotels view The Prestige Collection as a complement to their commercial strategy for attracting luxury clientele.

With a prominent presence both nationally and internationally across 36 countries, The Prestige Collection shines in with four distinguished resorts: Baglioni Resort Maldives, Diamonds Athuruga Maldives Resort & Spa, Diamonds Thudufushi Maldives Resort & Spa, and Hideaway Beach Resort & Spa. Internationally, the collection boasts emblematic properties like Armani Dubai, Café Royal in London, The Pierre in New York, and Kappa Senses in Ubud, Bali, among others.

The collection categorises hotels into four distinctive categories, highlighting ideal places to disconnect, properties in vibrant urban settings, coastal options for those seeking serenity, and unique experiences for those seeking singularity.

Furthermore, this milestone coincides with the relaunch of its new experiential website platform. This platform offers users and industry professionals the opportunity to explore the collection in greater detail and drives qualified traffic to the official websites of member hotels.

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Waste Management Corporation (WAMCO) Marks a Significant Step Towards Transforming Urban Waste Management

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Waste Management Corporation (WAMCO) marked a significant step towards plastic waste management with the adoption of dedicated vehicles handed over to boost this transformation of urban waste management supported by The Coca-Cola Foundation (TCCF) and the United Nations Development Programme (UNDP) in the Maldives.  

In March 2024, UNDP Maldives officially handed over a fleet of six vehicles to WAMCO, which included two electric vehicles (EVs), as part of an initiative aimed at enhancing waste management across the Greater Male’ Area (GMA). This acquisition, facilitated through the financial support of TCCF paves the way for a crucial advancement in bolstering PET collection efforts and tackling the challenge of plastic waste in the Maldives.

“This initiative marks a significant step towards boosting recycling rates and combating environmental pollution in the Maldives,” stated Pek Chuan Gan, Deputy Resident Representative of UNDP Maldives speaking at the handover ceremony. “Integrating electric vehicles into WAMCO’s fleet and improving PET recycling processes not only lowers carbon emissions but also pioneers renewable energy use in waste management. It’s a vital move for steering the Maldives towards a sustainable and renewable-powered future.”

The provision of electric vehicles marks a continuation of UNDP Maldives’ support to the Government’s vision to introduce renewable energy in key sectors such as waste management that significantly contribute to the country’s renewable energy transition ambition. By embracing clean energy solutions, such as electric vehicles in waste management practices, the Maldives can further reduce its carbon footprint and move closer to achieving its renewable energy goals.

“Utilizing eco-friendly vehicles is a pivotal change for WAMCO, signifying a major leap towards modernizing waste management in the Maldives,” remarked Mujthaba Jaleel, Managing Director, from WAMCO. “This collaboration highlights the shared commitment to environmental stewardship and the potential for such partnerships to catalyse meaningful progress in sustainability and about the positive impact these vehicles will have on our operations and the environment.”

Representatives from UNDP Maldives, WAMCO, and The Coca-Cola Foundation’s unified efforts towards a sustainable future. Photo courtesy: CIAO Advertising.

“Our commitment goes beyond just recycling; it’s about fostering a culture of sustainability,” remarked Saadia Madsbjerg, President, Coca‑Cola Foundation and VP Community Affairs. “By enhancing waste management in the Maldives, we aspire to set a benchmark for environmental stewardship.”

For The Coca-Cola Foundation, together with the stakeholders, the aim is to propel Maldives towards a future where plastic circularity is not just envisioned but actively pursued. By channelling resources and expertise into the heart of waste management, TCCF has made a sizeable contribution in enhancing and attracting investment to this crucial sector in the Maldives. This initiative is a testament to TCCF’s commitment to fostering sustainable practices and promoting the reuse and recycling of plastics, thereby reducing environmental impact, and paving the way for a circular economy.

The fleet handover event held on March 18, 2024, served as a celebration of collaboration in waste management. Representatives from UNDP Maldives, WAMCO, The Coca-Cola Foundation, government officials, and stakeholders came together to mark this significant step and reinforced their collective dedication to building a more sustainable future for the Maldives.

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