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Current Affairs

India’s oil import dependence jumps to 84%

  • Prime Minister NarendraModi may have set a target to cut India’s oil import dependence by 10 per cent. On March 2015, He had said that India needs to bring down its oil import dependence from 77 per cent in 2013-14 to 67 per cent by 2022 when India will celebrate its 75th year of Independence.
  • Itchanged exploration rules multiple times. The previous New Exploration Licensing Policy (NELP) was changed to Hydrocarbon Exploration and Licensing Policy (HELP) that gave companies freedom to choose area they want to explore.
  • India spent USD 111.9 billion on oil imports in 2018-19, up from USD 87.8 billion in the previous fiscal year.

Industrial output

  • India’s industrial output declined by 0.1% in March because of manufacturing, capital goods and consumer durables.
  • Manufacturing , which constitutes 63% of the Index of Industrial Production (IIP)
  • The previous low for IIP was a 0.3% decline in June 2017.

CCI ON Maruti

  • India’s antitrust regulator is looking into allegations that Maruti Suzuki, resorted to anti-competitive practices by controlling its dealer discounted
  • Maruti forces its dealers to limit the discounts they offer.
  • It is up to the dealer to offer discounts and take a lower profit margin, which they often do.
  • In 2017, South Korean firm Hyundai Motor Co’s India unit was fined $12.5 million by CCI for antitrust violations including resale price maintenance.

Poor Corporate profits

  • Q4FY19 have been quiet 1,012 companies (excluding banks and financials), net profits fell 13% year-on-year in the three months to March.
  • Demand is very weak and with purchasing power crimped, the competitive intensity has gone up.
  • EBITDA excludes interest, depreciation, amortization and taxes, EBITDA margin can provide an investor business owner or financial professional with a clear view of a company’s operating profitability and cash flow.EBITDAmargin is an assessment of a firm’s operating profitability as a percentage of its total revenue. It is equal to earnings before interest, tax, depreciation and amortization (EBITDA) divided by total revenue.