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Trump’s Tariff Impact Slows Global Growth, Warns World Bank

June 11, 2025, 1:54 pm

Trump’s tariff has had an immense impact on global growth, and it is now undeniable, according to the World Bank’s latest forecast. The global economy is on track to experience its slowest decade since the 1960s, as rising tariffs and unpredictable trade policies continue to destabilise financial markets and disrupt investor confidence.

Global Growth Forecasts Plunge Amid Trade Tensions

The World Bank’s twice-yearly report reveals a grim outlook. Nearly two-thirds of countries have had their growth projections slashed compared to January’s predictions. Global growth is now expected to hit just 2.3% in 2025, 0.4% lower than earlier forecasts, and only 2.6% by 2027. Economists at the bank directly attribute this slowdown to Trump’s tariff impact, which intensified following a blanket 10% tariff on all U.S. imports and additional duties on steel and aluminium.

Markets reacted swiftly. The tariffs, introduced shortly after Trump took office, led to significant financial volatility. Although an international trade ruling declared most of the measures illegal, a U.S. appeal has allowed them to remain for now. The World Bank has since downgraded U.S. growth expectations for 2025 and 2026, citing declining consumer spending and faltering investor sentiment.

Trump’s Tariff Impact Triggers Economic Instability Worldwide

Despite the bleak U.S. forecast, China’s outlook remained steady. The World Bank noted that China possesses a stronger financial cushion to endure what it called “significant headwinds.” However, the broader global context remains volatile. Trump tariffs continue to impact global growth and intensify due to frequent policy shifts and escalating trade barriers.

The research suggests that more tariff increases might “seize up” international commerce, leading to market panic and overall unpredictability. The bank provides a probability of a recession, but it places the odds of one happening at less than 10%. Meanwhile, as supply chains suffer under the increased constraints, inflation risks are rising.

The Organisation for Economic Co-operation and Development (OECD) echoed similar concerns, cutting its global growth outlook to 2.9% from a prior estimate of 3.1%. As trade talks between the U.S. and China resume in London, the world watches anxiously for signs of stability.

China Imposes Stricter Rare Earth Export Curbs Amid Rising Trade Tensions

May 18, 2025, 5:09 pm

China has clamped down on rare earth element exports, sparking global supply chain disruptions and alarm. The nation imposed a new licensing regime in early April that restricts exports of seven principal rare earth elements and permanent magnets. The materials are crucial to markets such as electric vehicles, wind turbines, fighter jets, and robotics. The action came on the heels of US President Donald Trump’s tariff package on April 2.

While China has issued some export licenses, delays and curbs concern manufacturers globally. Firms are concerned about supply shortages that can hit production heavily, particularly in the United States and Europe.

Export Controls Tighten Amid Trade Tensions

China’s new regulations mandate end-use certificates from exporters. Such certificates confirm that materials won’t be used for military intent or re-exported to the US. But most buyers and exporters find these requirements vague and daunting. The intricacy hinders the process of approval, restricting the export of rare earths.

Rajesh Jejurikar of Mahindra & Mahindra stated the certification process is unclear. Likewise, Chengdu Galaxy Magnets supports clients with paperwork but denies any application associated with military use.

Impact on Global Manufacturers

European firms such as Volkswagen have been given only a “limited number” of export licenses. Others describe continued challenges in dealing with China’s export bureaucracy. Federation of German Industries official Wolfgang Niedermark cautioned that Europe’s production is in danger of being seriously harmed if supply disruption continues.

In the US, there is also concern from large companies like Tesla, Ford, and Lockheed Martin. Lockheed has acknowledged that it has sufficient rare earth magnets for its F-35 fighter jets but is dependent on government assistance to have the supplies maintained.

Even with obstacles, some Chinese suppliers such as Yantai Zhenghai Magnetic Material keep shipping after getting approval. Long-standing customers are said to be shipped even without official endorsements. Supply chain analyst Cameron Johnson observes that “material is still going out,” but risks remain high.

Strategic Leverage and Future Outlook

China Ministry of Commerce (Mofcom) remains ambiguous about the extent of the export regime. Trivium China’s Cory Combs describes Beijing’s approach: employing export controls as a bargaining chip and holding out for an acceptable US trade agreement.

Short of an agreement, Western countries are stepping up plans to diversify sources for rare earths. Weaning themselves off China’s rare earth supply chain will be a strategic imperative in the years to come.

China’s rare earth export restrictions unveil weakness in the supply chains across the world. The world is now increasingly under pressure to identify substitutes and stabilize key industries that rely upon these crucial materials.

India’s GDP Doubles to $4.3 Trillion in 10 Years

March 26, 2025, 1:20 am

India has emerged as the fastest-growing major economy globally, with its Gross Domestic Product (GDP) more than doubling in the last decade. According to the latest data from the International Monetary Fund (IMF), India’s GDP stands at $4.3 trillion in 2025, compared to $2.1 trillion in 2015, marking a remarkable 105% growth.

India to Overtake Japan and Germany

India is on the verge of overtaking Japan, whose GDP currently stands at $4.4 trillion, by the third quarter of 2025. If the current growth trajectory continues, India is expected to surpass Germany, the world’s third-largest economy with a GDP of $4.9 trillion, by the second quarter of 2027.

Outperforming Major Global Economies

India’s exceptional growth rate has outperformed major economies like:

China: 76% growth
USA: 66% growth
Germany: 44% growth
France: 38% growth
UK: 28% growth

Commerce and Industry Minister Piyush Goyal hailed this performance as “outstanding,” emphasizing that India has outpaced all nations in the G7, G20, and BRICS groups in terms of economic growth.

Journey to Economic Milestones

India’s economic growth journey has been remarkable:

Reached the first $1 trillion mark in 2007 (after 60 years).
Took 7 years to double to $2 trillion by 2014.
Despite COVID-19, India crossed the $3 trillion milestone in 2021.
The leap from $3 trillion to $4 trillion took just 4 years.

India’s Future Economic Prospects

At this rate, India is expected to add $1 trillion to its GDP every 1.5 years, potentially becoming a $10 trillion economy by the end of 2032.

Global Economic Comparison

Currently, the top two economies remain:

United States: $30.3 trillion
China: $19.5 trillion

India’s steady growth trajectory indicates that it could potentially break into the top two spots in just over two decades

Trump Walks Back 50% Tariff Threat On Canadian Steel: ‘Cooler Heads Prevailed’

March 12, 2025, 9:20 am

US President Donald Trump has put a hold on his plan to double tariffs on Canadian steel and metal imports, a decision that comes only hours after he threatened to raise these duties to 50 percent. However, the previously announced 25 percent tariffs will still be implemented starting March 12.

Tariff Shake-Up Following Ontario’s Move

Trump’s decision to pause the doubling of tariffs followed a strategic move by Ontario, which suspended the new 25 percent charge on electricity exports to certain northern US states. This suspension came in response to Trump’s tariff threat, and according to White House Senior Counselor Peter Navarro in a CNBC interview, “cooler heads prevailed.” The development allowed the US administration to ease off on further escalating the steel and metal import duties from Canada.

The Ongoing US-Canada Trade War

The recent tariff adjustments are the latest flashpoint in a broader North American trade dispute. On February 1, 2025, Trump announced a 25 percent tariff on imports from Canada and Mexico, citing issues such as trade imbalance, illegal immigration, and drug trafficking. Initially scheduled for February 4, the tariffs were postponed to March 4 and later further delayed, with the additional levies now set to take effect on March 12.

In response, Prime Minister Justin Trudeau condemned the US measures as unjustified. Canada retaliated by imposing a 25 percent tariff on US goods valued at $30 billion, with plans to expand these measures to affect $125 billion worth of American products.

Impact on Bilateral Relations and Consumer Behavior

The trade skirmish has reverberated through both economies, sparking significant changes in consumer behaviors. Many Canadians have begun boycotting US products and canceling trips to the United States. Meanwhile, retaliatory moves by Canada’s Ontario province have compounded tensions, including banning US companies from government contracts and canceling a contract with Elon Musk’s Starlink, as well as threatening to cut electricity supplies to millions of US consumers.

How the West Uses Russia’s Frozen Funds for Ukraine

March 6, 2025, 12:39 am

Following Moscow’s 2022 invasion of Ukraine, the Group of Seven (G7) nations froze approximately $300 billion in Russian state assets. Now, European nations are leveraging these funds to provide financial assistance to Ukraine. The G7 has pledged $50 billion in loans, with repayment expected through profits generated from the frozen assets.

Actions Taken So Far

The European Union (EU) holds around €210 billion ($221.5 billion) of these frozen Russian assets, primarily in government bonds.
Euroclear, a Belgium-based securities repository, allocated €4 billion in interest earnings to Ukraine in 2024.
An additional €2 billion is expected to be transferred this month, with continued payments projected through 2027.
The U.S. committed $20 billion to the aid package, but Trump’s decision to suspend military aid raises uncertainties.

Full Confiscation: A Divisive Proposal

Some nations, such as the UK, advocate for full confiscation of Russian assets. However, key EU players, including France and Germany, remain cautious due to potential economic repercussions:

The European Central Bank (ECB) fears that seizing Russian funds outright could damage trust in the euro.
Concerns arise that nations like China or Saudi Arabia might withdraw their reserves from Europe as a precaution.

Using Assets as Ceasefire Leverage

French President Emmanuel Macron has suggested utilizing the frozen funds in negotiations with Russia to end the war. Reports indicate that European leaders have considered seizing assets if Russia violates a future ceasefire agreement.

Russia’s Response

Russia has condemned the asset freeze as “theft” and threatened to retaliate by seizing Western assets within its borders.
Russian Central Bank Governor Elvira Nabiullina stated that Moscow is not involved in any discussions regarding unfreezing its reserves.
Reports suggest that Russia may accept using these funds for Ukraine’s reconstruction but insists some must be spent in Russian-occupied territories.

The Future of Russian Assets

Legal experts argue that full asset seizure could be justified under international law as “countermeasures” in response to Russia’s aggression. Historical precedents include asset confiscations following World War II and Iraq’s invasion of Kuwait. However, those actions occurred after conflicts ended, making Ukraine’s situation unique.

As Western nations deliberate their next moves, the future of these frozen funds remains uncertain, especially with Trump’s recent decision impacting the U.S.’s commitment.

Bangladesh Faces Financial Disaster: Political Chaos May Trigger Banking Meltdown!

February 27, 2025, 8:35 am

Bangladesh’s banking sector is facing a severe crisis as non-performing loans (NPLs) surged to Tk 345,764 crore by December 2023, representing 20.20% of all loans—a dramatic increase from Tk 284,000 crore just three months ago. Bangladesh Bank Governor Ahsan H Mansur revealed these alarming figures at a press conference, highlighting deep-rooted issues in the nation’s financial system.

New Measures to Tackle the Crisis

In response to the mounting crisis, Bangladesh Bank has drafted a Bank Resolution Ordinance, currently open for public consultation on the finance ministry’s Financial Institutions Division website. The proposed ordinance introduces the concept of “bridge banks”—temporary institutions designed to take over weak banks until a suitable buyer is found. It also empowers the central bank to transfer shares, assets, and liabilities to third parties without requiring shareholder consent, and establishes a Bank Restructuring and Resolution Fund supported by government contributions, international financial institutions, and risk-based bank levies.

A key focus of the ordinance is depositor protection. The framework aims to curb insider transactions, prevent unauthorized loan write-offs for influential borrowers, and stop the artificial inflation of bank profits. Additionally, it grants Bangladesh Bank the authority to restrict the transfer or sale of shares by troubled bank owners to help stabilize the sector.

Governor’s Candid Critique Sparks Debate

Governor Mansur’s forthright comments have stirred intense debate among financial stakeholders. While his efforts to expose financial irregularities and enforce stricter discipline have been lauded by some, others fear his transparency could further undermine public confidence. Last September, his warning that 10 commercial banks were on the verge of bankruptcy triggered panic and mass withdrawals. Critics argue that such frank assessments may exacerbate instability rather than resolve it.

Political Instability Compounds Economic Concerns

The banking crisis unfolds amid a broader leadership turmoil in Bangladesh. After an elected leader was ousted amid student agitation in August last year, Nobel Laureate Muhammad Yunus was appointed chief adviser with the task of overseeing parliamentary elections. However, the Yunus government lacks widespread popular support, and political instability is now causing stress within the armed forces, with the army chief reportedly expressing deep frustration over ongoing turmoil.

A Call for Comprehensive Reform

With years of financial scandals, mismanagement, and weak regulatory oversight plaguing the sector, reform is urgently needed. Policymakers are under pressure to implement robust measures that protect depositors, enforce accountability, and rebuild trust in the banking system. However, experts warn that if not executed carefully, these reforms could further destabilize an already fragile economy.

As Bangladesh grapples with these intersecting crises in banking and leadership, the coming months will be critical in determining whether decisive reforms can restore confidence and secure the nation’s economic future.

Trade Wars Benefit No One; India Must Lead Globally: Swiss Official

February 13, 2025, 11:43 pm

As global economies face increasing uncertainty, Switzerland’s State Secretary for Foreign Affairs, Alexandre Fasel, has stated that trade wars are never beneficial and urged for open markets and free trade policies. Speaking in an interview, Fasel emphasized that India must play a larger role in global politics and trade.

Trade Wars and Economic Uncertainty

Fasel pointed out that the current global trade environment is unpredictable due to proposed tariff hikes by major economies. He cautioned that such measures could:

Increase prices and fuel inflation
Disrupt supply chains
Negatively impact consumers and businesses worldwide

He noted that the India-EFTA Trade and Economic Partnership Agreement (TEPA) will strengthen India’s trade relations with European nations like Switzerland, Norway, Iceland, and Liechtenstein.

India’s Growing Global Influence

Fasel also stressed India’s diplomatic strength, stating that the country is well-positioned to play a key role in international geopolitical affairs. He highlighted India’s efforts to amplify the voice of the Global South, aligning with Prime Minister Narendra Modi’s vision.

Strengthening India-Switzerland Ties

The Swiss official is in New Delhi for foreign office consultations, discussing bilateral trade, strategic partnerships, and diplomatic collaborations. With the India-EFTA Desk now operational, stronger trade relations between India and European nations are expected.

India Emerges as Key Player in Global Economy: Singapore President

January 18, 2025, 11:01 pm

Bhubaneswar, January 18: Singapore President Tharman Shanmugaratnam has lauded India’s growing significance in the global economy, stating that the country is poised to become a leading player in a multipolar world. During his visit to Odisha on Saturday, Tharman emphasized India’s rising influence, driven by its favorable demographics, ongoing development, and export potential.

“India aspires to be a pole in its own right in a multipolar world. This is true not only geopolitically but also economically,” President Tharman remarked, highlighting India’s journey toward higher skill and value in global markets.

Strengthening India-Singapore Collaboration

Tharman underscored the strong alignment between India’s and Singapore’s priorities, as demonstrated by their collaboration under the India-Singapore Ministerial Roundtable (ISMR). Key areas of focus include:

Semiconductor Ecosystem Development:
Both nations are working together to build India’s semiconductor ecosystem. Singapore’s Sembcorp is exploring potential sites for next-generation industrial parks in India to boost this sector.
Green Energy Initiatives:
Tharman praised India’s potential as a significant producer of solar and wind energy, as well as green ammonia. He expressed Singapore’s interest in creating a green energy corridor connecting India to Southeast Asia over time.
Digital Technology and FinTech:
Cooperation in IT, digital technology, and finance is expanding. Discussions are underway to ensure the secure and trusted flow of data between financial institutions in both countries.

Mutual Trust in a Challenging World

The Singapore President highlighted the importance of building mutual trust between India and Singapore, especially in a global environment where trust is becoming rare. He commended India’s proactive engagement in fostering ties across various sectors, citing Prime Minister Modi’s previous discussions on IT during his visit to Singapore.

“India and Singapore are not just collaborators but also partners in building a more resilient global economy,” he concluded.

The Tobacco Trap: EU’s Green Rules Threaten India’s Top Export

January 10, 2025, 2:08 pm

India’s tobacco export industry, a major contributor to the global tobacco market, now faces a significant challenge. Stringent European Union (EU) sustainability standards, set to take effect by 2030, threaten to disrupt the thriving export sector. Despite achieving remarkable growth—rising to become the world’s largest tobacco exporter in 2024—the industry may falter due to its inability to meet the evolving requirements. These regulations, focused on sustainability, transparency, and climate neutrality, pose serious risks to both the industry and the millions of Indian farmers whose livelihoods depend on tobacco cultivation.

EU Sustainability Standards: A Challenge for Indian Tobacco

The EU’s sustainability frameworks, including the European Green Deal, European Sustainability Reporting Standards (ESRS), and the Carbon Border Adjustment Mechanism (CBAM), require industries to align with carbon neutrality and climate action goals. Tobacco imports will be subject to stricter environmental, reporting, and governance requirements, with initial compliance phases starting in 2026 and full implementation by 2030. These standards demand major investments in technology, training, and infrastructure, areas where Indian tobacco farmers currently lag.

An estimated 50-60% of India’s farm exports, including tobacco, are expected to be impacted by these regulations. Without adequate preparation, Indian tobacco risks losing its competitive edge in European markets, potentially leading to a significant drop in exports.

Knowledge Gaps Among Farmers

One of the most pressing issues is the lack of awareness among Indian tobacco farmers. Many remain uninformed about the impending changes. Farmers in Andhra Pradesh, one of the key tobacco-growing regions, expressed concerns about the absence of training and information. A farmer from East Godavari district stated, “We are not aware of European norms or their implications. We rely on the Tobacco Board and the Central Tobacco Research Institute (CTRI) for guidance, but no such measures have been communicated to us.”

This knowledge gap underscores the urgent need for awareness campaigns, capacity-building programs, and the provision of resources to help farmers transition to sustainable practices.

The Tobacco Board’s Efforts

The Tobacco Board has initiated measures to promote sustainable tobacco cultivation, focusing on:

Reducing Pesticides and Fertilizers: Farmers are encouraged to adopt organic farming methods and use natural alternatives like green manure and lentil-based soil enrichment techniques.
Alternative Curing Methods: Experiments are underway to replace traditional wood-based curing with solar energy, LPG, and other sustainable options.
Soil Health Improvements: The Board promotes practices such as the Pachi Rota method, which enhances soil organic content and minimizes chemical dependency.
Pesticide Residue Testing: Collaboration with international laboratories ensures that tobacco meets global safety standards.

While these efforts are commendable, they remain insufficient to meet the comprehensive requirements of the EU sustainability frameworks.

Industry-Wide Collaboration

The public-private partnership model in Indian tobacco cultivation places significant responsibility on companies that purchase crops from farmers. According to CTRI Director Maganti Seshu Madhav, these companies are pivotal in implementing environmental, social, and governance (ESG) practices. Regular third-party audits are conducted to ensure compliance with established protocols throughout the crop cycle.

However, challenges persist. While some importing companies have begun demanding sustainable practices, the majority of Indian tobacco farmers are not yet equipped to meet these conditions. The Tobacco Board and companies must work collaboratively to provide farmers with the resources and training necessary to align with global standards.

Risks of Non-Compliance

Failing to meet EU sustainability standards could have far-reaching consequences:

Economic Impact: The livelihoods of millions of farmers and workers in the tobacco industry are at stake, particularly in states like Andhra Pradesh and Karnataka, which rely heavily on tobacco cultivation.
Health Concerns: An oversupply of tobacco in domestic markets could exacerbate tobacco-related health issues, countering public health initiatives.

To mitigate the impact of EU standards, the following steps are crucial:

Training and Awareness: Comprehensive campaigns should educate farmers about sustainability requirements and the benefits of adopting eco-friendly practices.
Financial Assistance: Access to credit and subsidies will enable farmers to invest in sustainable farming techniques and infrastructure.
Research and Development: Institutions like CTRI must lead efforts to develop innovative solutions, such as more efficient curing methods and high-yield organic tobacco varieties.

The EU’s stringent sustainability standards represent a significant challenge for India’s tobacco export industry. However, with proactive measures, collaboration, and government support, India can navigate these changes without jeopardizing its position as a global leader in tobacco exports. Striking a balance between environmental goals and economic stability is not just an opportunity but a necessity. Only then can India’s tobacco industry secure its future while contributing to a more sustainable global economy.

India Navigates Global Shifts: ‘Partnerships Key to Progress,’ Says Jaishankar at CII Summit

December 2, 2024, 7:23 pm

Speaking at the CII Partnership Summit 2024, Dr. S. Jaishankar underscored India’s essential position in a swiftly changing global environment, stressing that partnerships are fundamental to advancement. “India and the World” effectively captures the country’s growing global presence, a path marked by economic achievements and strategic partnerships.

India, now the world’s fifth-largest economy, seeks deeper collaborations to meet heightened global expectations. Amidst economic volatility, India emerges as a stabilizing force, contributing to technological progress and diversified growth engines. The world, grappling with challenges from manufacturing and logistics to AI and clean energy, faces a demographic imbalance where innovation demands skilled human resources. As Dr. Jaishankar noted, “The very economic landscape we are looking at is in the midst of a deep transformation. Responding effectively cannot be just a national endeavor.”

Strategically, global dynamics are shifting. The backlash against globalization has unveiled vulnerabilities in international systems. The COVID-19 pandemic underscored external dependencies, while the US-China rivalry and the Ukraine conflict intensified global insecurities. For nations like India, this tumult underscores the need for reliable partnerships.

India’s approach to partnerships extends beyond traditional frameworks. Its burgeoning manufacturing capabilities, bolstered by initiatives like Gati Shakti, and its focus on infrastructure have positioned it as a hub for resilient supply chains. Meanwhile, advancements in AI, semiconductors, and electric mobility underscore its commitment to shaping the digital age. As Dr. Jaishankar remarked, “The digital era intensifies the compulsions to forge trusted partnerships.”

The minister also touched on India’s global collaborations, from the India-Middle East-Europe Economic Corridor to projects with Myanmar and Thailand, designed to reshape connectivity routes and economic flows. With the Global South, India supports 78 nations through development projects, exemplifying its ethos of shared progress.

Also read: ‘We Will Resolve Farmers’ Issues, Congress Misleading Public’: UP Deputy CM Keshav Prasad Maurya

Ultimately, India’s partnerships abroad hinge on fostering strength at home. Whether through expanding its manufacturing base or preparing its workforce for a globalized era, India’s strategy is clear: to lead with resilience and innovation. “The world’s image of India,” Jaishankar concluded, “is shaped by actual experiences… in partnering together, we may get the best value for ourselves.”

Xi and Biden Warn Of ‘Turbulent Future’ Amid Trump’s Shadow At APEC Summit

November 16, 2024, 4:49 am

At the Asia-Pacific Economic Cooperation (APEC) summit in Lima, Chinese President Xi Jinping and U.S. President Joe Biden delivered stark warnings about a turbulent global future. With Donald Trump’s return to the White House imminent, both leaders highlighted growing economic and geopolitical challenges.

Xi’s Warning Against Protectionism

Xi Jinping expressed concerns about rising unilateralism and protectionism. In a written address at an APEC CEO meeting, he warned of the dangers of a fragmented global economy, emphasizing the need for inclusive growth.

Biden’s Call for Strong Alliances

Joe Biden, meanwhile, underscored the importance of alliances, meeting with Japan and South Korea’s leaders. He emphasized the trilateral partnership’s durability amidst significant political changes, calling for unity in countering challenges like North Korea’s military ambitions and its cooperation with Russia.

Trade Wars Loom Large

The summit’s agenda, focusing on trade and investment, was clouded by Trump’s protectionist stance. His proposed tariffs of up to 60% on Chinese imports threaten not only U.S.-China relations but also the global economy. Economists warn such policies could disrupt trade and stability.

Trump’s ‘America First’ Approach

Trump’s return to power signals a shift towards protectionist trade policies and reduced international cooperation. This stance could undermine Biden’s efforts to address global issues like climate change and regional conflicts.

Geopolitical Tensions Heighten

The summit also highlighted rising tensions in the Asia-Pacific region. China’s increasing military presence and its claims over Taiwan add to the geopolitical strain, while Trump’s proposed tariffs on Mexico and other economies further complicate international relations.

The Path Ahead

As Biden and Xi prepare for their final official meeting, U.S. National Security Advisor Jake Sullivan emphasized the need to manage U.S.-China competition carefully to avoid conflict. The APEC summit, representing 60% of the world’s GDP, stands at a crossroads, with global stability hanging in the balance.

India On Track To Be 3rd Largest Global Economy With 8% Growth, Says PM Modi

July 30, 2024, 3:05 pm

Prime Minister Narendra Modi, addressing a post-budget conference in New Delhi organized by the Confederation of Indian Industry (CII), lauded the record-setting achievements of his administration over the past decade.

He emphasized that the central government has significantly increased allocations to various ministries while reducing tax rates to unprecedented lows. According to PM Modi, these efforts reflect a transformative shift in economic management aimed at fostering growth and efficiency.

During his speech, PM Modi underscored that India is currently experiencing an impressive growth rate of 8%. He expressed confidence that this trajectory will propel India to become the third-largest economy globally. Reflecting on the achievements since 2014, PM Modi noted that his administration has prioritized the implementation of budgetary measures and schemes, a departure from previous governments that he claimed failed to execute their promises effectively. He highlighted that past administrations often made grand announcements without ensuring their practical execution.

VIDEO | Prime Minister Narendra Modi (@narendramodi) addresses at the inaugural session of CII Post Budget Conference on ‘Journey towards Viksit Bharat’. Here’s what he said.

“During the times of pandemic, we were discussing to get the growth back. I then said that India will… pic.twitter.com/FqeRkq9TT4

— Press Trust of India (@PTI_News) July 30, 2024

In his address, PM Modi also remarked on the progress India has made despite challenges such as the COVID-19 pandemic. He credited his government’s commitment to development and transparency for the country’s current economic status.

Modi encouraged further study and debate on the government’s white paper detailing economic reforms and progress. He concluded by affirming that India’s ongoing economic growth and development are evidence of the successful implementation of his administration’s policies, which are steering the nation towards becoming a global economic powerhouse.

Inflation, monetary policy to moderate global economic activity: Finance Ministry report

April 25, 2023, 5:11 pm

The Ministry of Finance’s Monthly Economic Review report states that the growth process has been weakened due to heightened inflation and the tightening of monetary policy, and it is anticipated that these factors will continue to impede economic activity for a minimum of three years since the onset of the conflict between Russia and Ukraine in February 2022, which corresponds to the financial years 2022-2025.

“The slowing of global growth, accompanied by pressures from deglobalisation and supply chain disruptions, has also moderated global trade,” the finance ministry report said. In its April 2023 update, the IMF has attempted to clear the path of uncertainty and has projected global growth to decline from 3.4 per cent in 2022 to 2.8 per cent in 2023.

“Growth is forecasted to marginally improve to 3.0 per cent in 2024, but not enough to beat the growth rate of 2022 while falling significantly short of the 6.4 per cent mark attained in 2021.” Inflation in various advanced countries is way too above their target ranges which necessitated their central banks to constantly raise interest rates, which in the process hurt growth.

The increase of interest rates is a monetary policy tool that is generally utilized to reduce demand in the economy, consequently aiding the reduction of inflation rates and vice versa. The Reserve Bank of India (RBI) has raised the repo rate, the interest rate at which it lends money to banks, by a cumulative 250 basis points since May 2022 to combat inflation in the country. In the United States, the current interest rate stands at 4.75-5.00 per cent, a substantial increase from its near-zero level during the early stages of the pandemic.

The finance ministry report highlighted that the recent collapses of some banks in the US and Europe, attributed to the ongoing tightening cycle, raises significant concerns for policymakers regarding the vulnerability of their financial systems, particularly in emerging market economies (EMEs). Nonetheless, the report indicates that India’s banking system is relatively less susceptible to such incidents. Additionally, the finance ministry stated that the likelihood of rapid withdrawal of deposits is low, given that 63 per cent of deposits, primarily contributed by households, are considered to be stable.

India’s position as fifth largest economy testifies its rising prestige globally: CM Yogi

December 4, 2022, 4:25 pm

India’s position as the fifth largest economy of the world has been lauded by CM Yogi Adityanath on Sunday. He termed the country’s rank as the testimony of India’s “rising prestige globally”.
“The country is setting new paradigms in terms of development. As India celebrates Azadi’s Amrit year, its position as the fifth leading economy testifies to its rising prestige globally,” Yogi said while inaugurating the 90th Founder’s Week celebrations of Maharana Pratap Education Parishad in Gorakhpur.
He further said, “Prime Minister Narendra Modi assumed leadership of the G-20, a group of 20 countries that own 80 per cent of the world’s resources. As a leader, our country will guide the whole world.”
Pointing out India’s Covid-19 management model, CM Yogi said that it will always be discussed. “Even when the whole world was gripped with the Covid-19 pandemic, the government made sincere efforts towards the interests of the citizens,” he said.
The Prime Minister, according to the Chief Minister, had set a lofty goal for the nation by announcing the National Education Policy during this time.
The Chief Minister emphasised that research, development, and startups in all sectors, such as agriculture, education, and technology, should be encouraged. He also emphasised that citizens should share responsibility for making the nation and UP the country’s two leading economies.
The Chief Minister said that Maharana Pratap Education Parishad was established by Brahmalin Mahant Digvijaynath during the struggle for independence.
“In 1932, the outline of Maharana Pratap Education Parishad was made according to the needs of the freedom struggle and independent India. Brahmalin Mahant Digvijaynath had established the Parishad in the name of Maharana Pratap, a paragon of bravery and valour against foreign invaders. The goal was independent India and the medium was the bravery and courage of Maharana Pratap,” he said.