Navneet Kapoor on LinkedIn: What heat waves spell for India: Impact on RBI, biz, food & GDP (2024)

What heat waves spell for India: Impact on RBI, biz, food & GDPhttps://lnkd.in/dpxY2cbi Download Economic Times App to stay updated with Business News - https://lnkd.in/eK4XZsX

Weather experts warn of increasing heat waves in India, impacting daily life, business, and economy. With hotter temperatures forecasted, power demand is expected to rise, putting pressure on power generation and potentially leading to power cuts. Heat waves can also disrupt food production, impacting prices and rural demand, affecting GDP growth.Read more at:https://lnkd.in/dcw7HZXM

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This is a correlation that particularly should be shared with Africa's governmental leaders...because implicitly it indicates that as goes access to electricity goes economic development. Electrification needs to be THE infrastructure priority of the next decade. And government does not have to invest alone, private sector independent power producers should be encouraged to invest in infrastructure and policies that promote roof top residential, commercial and industrial embedded generation PV should also be promulgated.

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"How India simply pulled itself out of the worst energy crisis of the 21st Century"With Russia's invasion of Ukraine in Feb 2022, the Global energy market was in turmoil. Inflation was skyrocketing worldwide, and economic growth was slumping. The recession was inevitable. But not for India!Why not for India? Ain't India heavily dependent on Imports for energy?Well, India does import 85% of Crude, and 60% of gas as we are not blessed with enough domestic supplies but what we are blessed with is great minds indeed!India's strategy for energy safeguard!👉 Deepening relations with Russia for crude supplies at deep discounts. Russian share in India's crude imports was 2% in 2021 (The period before the crisis) which rose to 42% in 2022 (During the peak period of the crisis). ⭕ Diversification at the right time, ain't it?👉 Indian oil refiners BPCL, IOCL, and HPCL together decided to hold revision of petrol and diesel prices for almost 2 years now. While global energy prices were multiplying, Indian oil companies took the hit in 2022 by incurring huge losses and strategically recouped the entire losses in 2023 with energy prices cooling down. ⭕ Well when in trouble, simply hold.👉 Rising growth of renewables in India's energy basket. UT/States like Delhi have already started giving EVs a legal shape.Renewable energy sources like solar, wind, and hydro currently hold a 10% share of India's energy basket and are expected to cloak a CAGR of 10%+ in coming years!⭕ Aiming right thing at right time.Do share your thoughts on India's energy crisis management!#oilandgas #energy

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A direct link to World GDP growth and crude consumptionWorld GDP growth or contraction is tied directly to the world crude consumption forecast. GDP growth is fueled by economic expansion. Economic expansion leads directly to increase fuel consumption, either through increase transportation or other means of necessary power generation. Petroleum is still the leading source of energy provided to the world and will continue to be for the foreseeable future. Thus, projected increases in World GDP will lead to increased petroleum demand without doubt. Below is a recent EIA projection of the growth of both in the near future.

TheReserve Bank of India (RBI)has published its report on 𝐂𝐮𝐫𝐫𝐞𝐧𝐜𝐲 𝐚𝐧𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 (𝐑𝐂𝐅) for 2022-23, focusing on climate change as the central theme-"𝐓𝐨𝐰𝐚𝐫𝐝𝐬 𝐚 𝐆𝐫𝐞𝐞𝐧𝐞𝐫 𝐂𝐥𝐞𝐚𝐧𝐞𝐫 𝐈𝐧𝐝𝐢𝐚"-The report discusses the role of central banks, including the RBI, in addressing climate change and emphasizes the urgent need for a green#taxonomy, a classification system to assess the#sustainabilityof investments.-It states that India needs to achieve an annual reduction in the#energyintensity of GDP by approximately 5% and significantly increase the share of#renewablesin its energy mix to around 80% by 2070-71 to achieve its#netzerotargets.-Furthermore, the report estimates that India's green financing requirement is at least 2.5% of GDP annually until 2030, highlighting the significant efforts needed for climate action.-It recognizes the risks#climatechangeposes to financial stability, as it can affect the valuation of financial assets by influencing investors' perceptions of risk.-The report explores the impact of climate change on sectors, such as#electricity,#mobility,#industry, and#agriculture, and underscores the challenges associated with transitioning these sectors towards sustainability.-In addition, it emphasizes the necessity of deep#decarbonizationacross all sectors emitting carbon, focusing on the importance of decarbonizing#power,#transportation,#construction, industry, and agriculture.-It also stresses the significance of encouraging changes in citizens' lifestyle habits and consumption patterns as part of the transition to a net-zero#economy.-The report highlights the importance of appropriate#carbonpricingin achieving an 80% reduction in#carbonemissionsby 2050. It suggests that#carbontaxescan facilitate a shift from coal to renewables in#powergeneration while generating public revenue.-Mitigating climate change impacts, adapting to changes, and managing disasters will require substantial resources. India will need to mobilize new investments estimated to be between $7.2 trillion and $12.1 trillion by 2050, as outlined in the report.-Furthermore, the challenge of accessing the technology and minerals necessary for the transition has been acknowledged. The increasing reliance on technologies like#batteries,#renewables,#carboncaptureand storage, and#ewastemanagement will require increased#investmentin R&D.

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Aatma Nirbhar Bharat 🇮🇳Rising Oil Prices: Challenges and Opportunities 🛢️🚀As oil prices decide to take a skyward leap, it's like our economy is getting ready for a challenging game of leapfrog! 🎯📈Fuel Costs: Yes, petrol prices are on the rise, but it's an opportunity for us to carpool more, explore public transport, and embrace electric vehicles for a greener tomorrow! 🚗🌿Inflation: While inflation is a concern, it encourages us to get creative with budgeting, discover local products, and support indigenous businesses, boosting our self-reliance. 🛒🇮🇳Current Account Deficit: A larger deficit can push us to find new export markets and boost our manufacturing sector, ultimately making us more globally competitive. 🌐🏭Rupee's Resilience: The Indian Rupee might sway a bit, but it's a reminder that we have a strong and adaptable currency, and it's here to stay! 💱💪Policy Innovation: Rising oil prices inspire policymakers to think outside the box, invest in renewables, and chart a sustainable energy future. It's a catalyst for innovation! 🌞🔋#Greenenergy #crudeoil #India #forex #Aatmanirbharbharat

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Will India’s heat wave impact RBI’s rate cut decisions:1.The recent heat wave forecasted by IMD could delay interest rate cuts in India, according to economists.2.The sizzling temperatures are raising concerns for policymakers already dealing with persistent inflation.3.The three-month period through June is expected to experience hotter-than-usual weather across the country.4.This development underscores the complex challenges faced by India’s economy and its impact on monetary policy decisions.Stay informed about the evolving economic landscape and its implications for financial planning and decision-making.

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India's Diesel Appetite Surges: What Lies Ahead in 2022-23?Hold onto your seats, because India's fuel consumption is breaking records! In 2022-23, the nation devoured a staggering 85.90 million tonnes of diesel, while petrol wasn't far behind at 34.98 million tonnes.But here's the plot twist: the Petroleum Planning and Analysis Cell (PPAC) predicts even bigger numbers for the current financial year, with the country set to consume a whopping 233.81 million tonnes of petroleum products!What's driving this surge in fuel consumption, you ask? It's a reflection of India's growing economy, increasing mobility, and the thirst for energy to power our industries. As our nation marches forward, the demand for energy continues to soar.So, what lies ahead? Are you ready for energy evolution? Share your thoughts! #FuelConsumption #EnergyTrends #Sustainability #EconomicGrowth #India2030

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"India to become middle-income country with GDP of $6 trn by 2030: Report"*The Report, released by Standard Chartered Bank, assumes that India's nominal GDP growth rate will be 10 per cent per annum from now on."Power Grid hits record high as it emerges successful bidder for 2 projects"*Shares of Power Grid Corporation gained 3 per cent to hit a record high of Rs. 264.8 in Monday's Intraday trade after the company was declared as a successful bidder under Tariff based Competitve bidding (TBCB) for two projects.#stockmarket #stocnerv

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