Page 25 - Policy Economic Report - October 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

• The ratings of 506 companies were upgraded during the six months, while there were 184
downgrades. The agency has a positive credit outlook on India Inc, led largely by the government's
infrastructure investment and private consumption, which is the driving force for the economic
growth estimated at 6.8 per cent in FY25.

• Over 38 per cent of the rating upgrades were of infrastructure or related sectors in the April to
September period (H1) of FY25, achieved on the back of strong sponsors and lower-than-expected
debt.

• The agency said private sector capital expenditure is set to rise 10-12 per cent in FY25 over the Rs
4.3 lakh crore in FY24 on the back of the headroom that corporates have, mainly due to lean
balance sheets, possibilities of interest rate cuts and rising capacity utilization.

• Over half of the capital expenditure comes from oil and gas refining/marketing, oil and gas
exploration and production, primary steel, aluminum, cement sectors, while the infrastructure
push from the government is expected to ensure that traditional industries such as cement,
primary steel and aluminum continue investing in FY25 and FY26.

• On the credit quality outlook, it said the fast-moving consumer goods sector is showing positive
movement given the expected increase in rural demand, while information technology, cement
and fertilizers have moved downwards to 'favorable' from 'strong' bucket.

• It also said the borrowing costs have gone up 1.60 per cent since April 2022, yet corporate India
has been able to maintain its profile on healthy growth in profits, well-behaved commodity prices
and steady demand conditions.

10. India's renewable energy capacity hits 200 GW milestone

India's total electricity generation capacity has reached 452.69 GW, with renewable energy
contributing a significant portion of the overall power mix. The country's total renewable energy
capacity crossed the 200 GW (gigawatt) mark as of October 10, 2024. According to the Central
Electricity Authority, the total renewable energy-based electricity generation capacity now stands at
201.45 GW, accounting for 46.3 percent of the country's total installed capacity. This achievement
underscores India's growing commitment to clean energy and its progress in building a greener future.

When factoring in the 8,180 MW (megawatt) of nuclear capacity, the total non-fossil fuel-based power
now accounts for almost half of the country's installed electricity generation capacity, signaling a
strong move toward clean energy leadership on the global stage.

• Solar power leads the way with 90.76 GW, playing a crucial role in India’s efforts to harness its
abundant sunlight.

• Wind power follows closely with 47.36 GW, driven by the vast potential of the coastal and
inland wind corridors across the country.

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