Winning Bizness Economic Desk

The country’s total telephone subscriber base increased marginally to 1,189.92-million in December 2024. Reliance Jio, the Mukesh Ambani-led company, led in both mobile and fixed-line additions.

This is according to a report released by the Telecom Regulatory Authority of India (TRAI).

India had 1,187.15-million subscribers in November, marking a slight increase.

Jio remained the front-runner in broadband services with 476.58-million subscribers, followed by Bharti Airtel (289.31-million) and Vodafone Idea (126.38-million).

The country’s urban telephone subscribers rose to 663.37-million in December, up from 659.87-million in November.

However, rural subscriptions registered a dip from 527.27-million to 526.56-million, during the same period.

The wireless subscriber base increased from 1,148.65-million to 1,150.66-million, reflecting a 0.17 per cent monthly growth. The wireless tele-density also climbed up to 81.67 per cent from 81.59 per cent in November.

Reliance Jio added the highest number of wireless subscribers at 3.9-million followed by Bharti Airtel with 1.03-million.

In contrast, Vodafone Idea lost 1.7-million wireless subscribers, while BSNL and MTNL lost 3,16,599 and 8,96,988 subscribers, respectively. Private telecom players dominated the wireless market, holding a 91.92 per cent share, while BSNL and MTNL accounted for only 8.08 per cent.

The broadband subscriber base inched up from 944.76-million in November to 944.96-million in December.

Reliance Jio maintained its dominance with a 50.43 per cent market share while Bharti Airtel and Vodafone Idea held 30.62 per cent and 13.37 per cent, respectively.

The top five broadband providers—Jio, Airtel, Vodafone Idea, BSNL (35.33-million subscribers) and Atria Convergence Tech (2.27-million)—accounted for over 98 per cent of the market.

Textile Industry Eyes USD 6-bn Export Boost with US Trade Deal

India’s textiles industry is hoping that a zero-for-zero trade agreement with the United States (US) would up exports by USD 6-billion in three-years.

Here, a point to note is that presently India is the third-largest supplier of both textile and apparel products to the US after China and Vietnam.

The US contributed to 28.5 per cent of the country’s total textile and apparel exports between January and November 2024.

In the last fiscal (FY 24), India exported USD 10.8-billion worth goods to the country, while imports from the United States were just 0.41-billion.

US imports from China have declined at a CAGR of 9.4 per cent over the last five-years while imports from India have grown at a CAGR of 9.1 per cent. This presents a window of opportunity for India to strengthen its position in the US market.

However, here it is important to point out that the recent trade tensions saw US firms partially moving away from China and this has benefited Bangladesh and Vietnam the most.

Both the countries are a part of preferential trade agreements with the US for textiles and enjoy duty concessions.

The Confederation of Indian Textile Industries has said that India’s textile and apparel exports to the US can climb up to USD 16-billion within the next three-years by adding USD 6-billion in revenues.

“For this, India should explore a zero-for-zero trade agreement with the US for textile and apparel products with necessary safeguards for sensitive products,” the organisation said.

A zero-duty structure would create a level playing field for Indian exporters vis-a-vis Vietnam and Bangladesh.

The Confederation further added that as India remained dependent on cotton imports from the US, a duty-free access mechanism with quota safeguards could ensure a balanced trade approach.

SBI Report Says Investments to Surpass Consumption in FY 26

Investments in the country are expected to grow at a faster pace than consumption in the next fiscal (FY 26), a report by SBI MF said.

The report highlighted a gradual improvement in economic growth during the second-half (H2) of FY 25, fuelled by supportive measures from the government and the Reserve Bank of India (RBI).

Between consumption and investment, the latter could be a likely outperformer in FY 26, the report stated.

In Q3 FY 25, India’s GDP expanded by 6.2 per cent, rebounding from a revised figure of 5.6 per cent in the previous quarter.

In FY 26, the report estimated GDP growth to be in the range of 6.5 per cent to seven per cent.

The report also threw light on other factors that could support GDP growth in the coming quarters.

An important point to highlight here is that rural consumption is expected to improve and higher government spending could provide an additional boost to economic activity.

RBI Imposes Fines of Rs 76.6-lakh on Four NBFCs Over Compliance Issues

India’s apex bank, the Reserve Bank of India (RBI) has said that it has imposed a Rs 76.6-lakh penalty on four non-banking finance companies (NBFCs) for non-compliance with certain provisions of its directions related to peer-to-peer lending platform.

A Rs 40-lakh penalty has been imposed on Fairassets Technologies India and Rs 10-lakh each on two others. They are Bridge Fintech Solutions and Rang De P2P Financial Services for non-compliance with certain provisions of the Non-Banking Financial Company—Peer-to-Peer Lending Platform (Reserve Bank) Directions, 2017.

The Reserve Bank also said that a penalty of Rs 16.6-lakh has been imposed on Visionary Finance peer.

In each case, the Reserve Bank said that the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.

The Reserve Bank informed about the penalties through separate releases.

Reduction in Coal Import Saves Foreign Exchange of Around Rs 42,315-crore

India’s coal imports slid southward by 8.4 per cent to 183.42-million tonnes in the April-to-December period of the current fiscal, resulting in foreign exchange savings of around Rs 42,315-crore.

The coal import was 200.19-million tonnes in the corresponding period of the previous fiscal.

“Coal imports…during April to December 2024 fell by 8.4 per cent, totalling 183.42-million tonnes (MT), compared to 200.19 MT in the same period of the previous fiscal year. This reduction resulted in forex savings of approximately USD 5.43-billion,” the coal ministry said in a statement.

The non-regulated sector, excluding the power sector, experienced a more significant decline with imports dropping by 12.01 per cent Year-on-Year (YoY).

Although coal-based power generation grew by 3.53 per cent from April-to-December 2024 over the previous year, imports for blending by thermal power plants decreased by 29.8 per cent.

The government has implemented several initiatives including commercial coal mining and Mission Coking Coal to enhance domestic coal production and reduce imports.

Here, it is important to point out that these efforts have also led to a 6.11 per cent growth in coal output during the April-to-December period as against the same period of 2023-24.

India’s Auto Component Industry Targets USD 100-bn in Exports

The domestic auto components industry is eyeing an USD 100-billion in exports by focusing on the United States (US) and European markets, according to a joint report by the Boston Consulting Group and Auto Component Manufacturers Association of India (ACMA).

The report titled Revving Up Exports: The Next Phase of Export Growth for the Auto Component Industry, stated that by doubling down on classical components, India can potentially add USD 40-to-USD 60-billion in incremental exports by prioritising 11 product families, with a focus on the US and Europe markets.

In the last fiscal (FY 24), India’s auto component exports reached USD 21.2-billion, marking a significant turnaround from a USD 2.5-billion deficit in FY 19 to a USD 300-million surplus.

“We have not only achieved a positive trade balance, but for auto-specific use cases, the surplus is even more pronounced reaching approximately USD 0.5-to-1.5-billion. We are committed to sustaining this growth trajectory and have set an ambitious target of USD 100-billion in exports ahead,” Shraddha Suri Marwah, President of ACMA, said.

The report further said that by capitalising on emerging electric vehicle and electronic value chains through localisation, India can look to tap into an additional USD 15-to-20-billion exports in components such as battery management systems, telematics units, instrument clusters, etc.

The global auto component trade presently stands at USD 1.2-trillion, with the US and Europe as top importers.

India’s export share in north America and Europe is around 4.5 per cent presenting a massive headroom for expansion, the report stated.