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India’s Economic Rise Must Now Lift Its People, Says Report

June 21, 2025, 2:08 pm

India has surpassed several global economies in terms of total GDP over the last decade. However, its per capita income remains low. A report by Llama Research now urges the country to shift focus toward increasing individual prosperity.

Growth Must Reach the People

The report emphasized that India’s next phase of growth must benefit its citizens directly. Although India ranks among the top 10 global economies, it ranks the lowest in per capita income. Llama Research explained, “This isn’t a flaw, it’s a window of compounding potential.”

Key Strengths Driving India’s Momentum

According to the report, India has many advantages. These include manufacturing expansion, rising income tiers, and rapid digital transformation. Additionally, the report cited India’s tech-savvy population, sound policies, macroeconomic stability, and room for long-term capital formation.

“India is not just rising in rank,” the report stated, “it’s building the foundations to lead from the ground up.”

Roadmap to Viksit Bharat by 2047

India aims to become a developed nation, or ‘Viksit Bharat’, by 2047. To achieve this, the Economic Survey 2024–25 stated India must sustain an average growth rate of 8% at constant prices for the next 10 to 20 years.

From Fragile to Fast-Growing

In 2013, India was part of the “Fragile Five” — a term coined by Morgan Stanley for struggling emerging markets. Today, India has transformed. It now stands as the fifth-largest economy and continues to grow rapidly.

The IMF projects that India will overtake Japan and become the fourth-largest economy in the current financial year.

Impressive Growth Numbers

India’s growth remains strong. In 2021–22, the economy expanded by 8.7%. It grew by 7.2% in 2022–23, followed by an impressive 9.2% in 2023–24. In 2024–25, India is expected to grow by 6.5% in real terms, as widely anticipated.

Final Take

India’s economic rise is clear. But now, the challenge lies in ensuring that prosperity reaches every individual. With strong fundamentals and a clear vision, India is laying the groundwork for inclusive growth in the years ahead.

India’s Economy: No Retaliation, But Can It Win Against US Tariffs?

April 7, 2025, 1:15 pm

India’s economy is sailing through stormy seas following US, under President Donald Trump, imposing a high 26% tariff on Indian imports. Although government officials are still hopeful, estimating 6.3% to 6.8% growth in the 2025/26 fiscal year, private economists are not so sure. They predict that the tariff shock would bring India’s momentum to a standstill.

The authorities contend that as long as crude oil prices remain below $70 per barrel, India can still achieve its growth rates. Budget allocations already account for duty remission schemes to aid exporters. Relief may be forthcoming. Ministries are actively negotiating with export bodies to assess the damage and frame a response.

Sectoral Impact and Economic Doubts

Private companies such as Goldman Sachs have cut India’s growth estimate by 20-40 basis points, blaming the disruptions generated by Trump’s tariffs. The diamond sector, which exports more than one-third of its shipments to America, is especially at risk, with thousands of jobs at stake.

The auto industry is not too far behind. Tata Motors stocks fell 10% when Jaguar Land Rover suspended exports to America. Other sectors such as IT are preparing themselves for lower foreign demand as US consumer spending, which is inflating, reduces. These news items test the government’s defiant attitude.

Strategic Choices Over Retaliation

India isn’t striking back with counter-tariffs. Rather, it is placing its bets on trade negotiations and diplomacy. The government is looking to extend interest subsidy schemes and asking banks to give more credit to exporters. Still, analysts aren’t convinced. They wonder whether these policy measures are robust enough to counteract the growing blow of tariffs across labor-intensive industries such as textiles, footwear, and agriculture.

Even though there are official reassurances, uncertainty hangs heavy. The strength of India’s economy will hinge on how rapidly and forcefully these steps bite. Unless help comes early enough, already-stressed sectors could suffer further losses.

The next quarter will be the test. Either India softens the blow and continues growing—or runs the risk of a long slowdown.

IMF MD predicts Indian Economy to be ‘Little Weaker’ in 2025

January 11, 2025, 1:08 pm

Aaccording to IMF Managing Director Kristalina Georgie the Indian economy will be “a little weaker” in 2025. She said the global growth will be steady, but there is major uncertainty over the global economic landscape, mainly about the trade policies of the US.

Global economic growth is to have been stable going into 2025 according to Georgieva, however that regional variations of this were certain. Georgieva says while the US economic performance exceeded anticipation, EU witnessed something which could only be termed stagnating. However when it comes to India she commented that that shall be little lesser, and no further clarifies why. More details will be provided during the World Economy Outlook update.

Economic Policy Directions

The IMF Managing Director expressed her concerns about uncertainty, especially in economic policies. She said that the decisions of the new US administration on tariffs, taxes, deregulation, and government efficiency will be critical, especially with regard to global trade policy. This uncertainty, she explained, is contributing to higher long-term interest rates, even though short-term rates have declined.

Challenges for Low-Income Countries

Georgieva also indicated that emerging markets remain vulnerable to the economic shocks. Deflationary forces and low domestic demand persist as challenges facing the economy of China. About inflation, IMF projects that continued global disinflation will take place, and with advanced economies convergence more quickly than emerging markets into inflation targets.

US Trade Policy Under Trump

This uncertainty is worse since this is under the leadership of the newly inaugurated 47th President of the United States, Donald Trump, as he assumes his post on January 20. While campaigning and addressing the electorate during his speech, he announced intentions to set even more taxes for countries such as China, Canada, and Mexico. Therefore, he will make tariffs a central tool in his economic agenda.

Concluding, Georgieva noted that higher interest rates to contain inflation haven’t triggered a global recession, but have yielded the desired effects in terms of the fall in inflation, as the same is now falling steadily to the target level in advanced economies.

Jairam Ramesh Warns of “Three Dark Clouds” Threatening Growth of Indian Economy

October 6, 2024, 2:06 pm

Congress General Secretary Jairam Ramesh has raised concerns over what he describes as “three dark clouds” that pose significant challenges to India’s economic growth in the coming years. Taking aim at Prime Minister Narendra Modi and the NDA government, Ramesh criticized what he called the “bombastic claims” regarding the economy, suggesting these issues would hinder India’s growth potential.

Unsteady Private Sector Investment

In a statement shared on social media platform X, Ramesh pointed to an “unsteady path of private sector investment” as a key challenge. He noted that new project announcements in the private sector had fallen by 21% between FY 2023 and FY 2024, following a brief surge during the COVID-19 recovery. This decline, he argued, reflects a lack of investor confidence and uncertainty caused by inconsistent government policies and what he termed “raid raj.”

“New project announcements by the private sector fell by 21 per cent between FY23 and FY24. This reflects a lack of investor confidence in India’s consumer markets and the uncertain investment climate generated by the government’s inconsistent policymaking,” Ramesh said.

Stagnation in Manufacturing Sector

Ramesh also highlighted the stagnation of India’s manufacturing sector despite the government’s “Make in India” initiative. According to him, manufacturing’s contribution to GDP has remained unchanged over the past decade, and its share of total employment has marginally declined. India’s share in global merchandise exports has also stagnated, and exports as a share of GDP are falling.

“India’s manufacturing is stagnating, and exports are falling as a share of India’s GDP,” Ramesh stated, comparing the situation unfavorably to the rapid export growth seen between 2005 and 2015 under the UPA government.

The third issue raised by Ramesh was the decline in real wages and productivity for India’s laborers. Referring to the Annual Survey of Industries (ASI) for 2022-2023, he noted that the growth in Gross Value Added (GVA) per worker, a measure of labor productivity, had slowed dramatically since 2014-15. This decline in productivity has contributed to stagnating real wage growth, which, combined with rising inflation, has weakened consumption and dampened investment.

“Real wages are stagnating, and consumption will remain weak, resulting in low investment that has been a consistent restraint on India’s growth,” he warned.

Ramesh expressed concern over what he called the “financialization” of India’s economy, with companies focusing more on stock market valuations rather than revenue growth. He argued that this trend, coupled with declining private sector investment, bodes poorly for the medium- to long-term prospects of India’s economic growth.

Is the World’s Best-Performing Economy Losing Its Shine?

September 3, 2024, 3:22 am

India, often lauded as the world’s fastest-growing major economy, has recently witnessed a slowdown in its GDP growth. In March 2024, CNN termed India as the world’s fastest-growing major economy. However, India’s GDP growth for the quarter ending June 2024 came in at 6.7%, slightly below expectations and 1.5 percentage points lower than the growth rate during the same quarter last year. This dip has raised eyebrows both domestically and internationally. While some may view this as a troubling sign, it’s crucial to recognize that this is not an indication of long-term decline but rather a momentary pause in India’s otherwise upward trajectory. The current challenges are significant, but they are not insurmountable. A deeper look reveals that India has both the strength and the strategies to bounce back robustly.

Domestic Factors Impacting Growth

Weather Challenges and Agricultural Impact: India’s agricultural sector remains a bedrock of the economy, employing a significant portion of the workforce and supporting rural livelihoods. This year, erratic monsoon patterns and an unusually harsh summer have disrupted this sector. Unpredictable weather has led to a decline in agricultural output to 2.7%, affecting rural incomes and stoking inflation, particularly in food prices. These inflationary pressures, in turn, dampen overall consumer demand, slowing down economic activity. Investments in sustainable agricultural practices and improved irrigation systems could mitigate the adverse effects of such climatic irregularities, stabilizing rural incomes and enhancing overall economic resilience.

Economic Implications of Electoral Cycles: India’s vibrant democracy, while a strength, also poses unique economic challenges, especially in the run-up to elections. Political uncertainty often leads to a wait-and-watch approach among businesses and consumers. Investment decisions are deferred, and households cut back on discretionary spending due to apprehensions about policy continuity. This phenomenon, known as the “election cycle effect,” temporarily suppresses economic activity. Retail sales growth, for example, slowed to 4.2% in recent months, down from 7.1% earlier in the year, reflecting cautious consumer sentiment. Maintaining a steady course of economic reforms irrespective of electoral outcomes is crucial to maintaining economic stability.

Geopolitics & Rate Hikes

Global Economic Slowdown and Export Challenges: The slowdown in global demand has been a significant external factor affecting India’s growth. As the US, China, Russia, and the European Union—India’s major trading partners—grapple with economic challenges, Indian exports, particularly in textiles, automotive, and IT services, have seen a decline. Despite these challenges being a drag, India has continued to maintain a strong export performance in sectors such as pharmaceuticals, which grew by 12% year-on-year, and chemicals, demonstrating resilience. The focus must now be on diversifying export markets and enhancing the competitiveness of Indian products globally. India’s proactive trade policies and new trade agreements are set to open up new avenues, bolstering export growth and reducing dependency on traditional markets.

Geopolitical Instabilities: The geopolitical landscape, marked by conflicts like the Russia-Ukraine, Israel-Middle East and ongoing US-China trade tensions, has created a climate of uncertainty, affecting global supply chains and trade flows. For India, this has meant disruptions in imports and exports and increased volatility in commodity prices. For instance, crude oil imports, which constitute a significant portion of India’s import bill, increased by 14% in the first half of 2024 due to supply chain disruptions. Strengthening trade relations with emerging markets in Africa and Latin America, as well as enhancing economic cooperation with ASEAN countries, could shield India from global economic shocks.

Interest Rates and Their Economic Impact: The Reserve Bank of India (RBI) has been aggressively raising interest rates to curb inflation, with the repo rate now standing at 6.5%. While higher rates help in managing inflation, they also make borrowing costlier, affecting consumer spending and business investment. Credit growth in the non-food sector slowed to 9.2% in July 2024, down from 13.5% a year earlier, reflecting the impact of higher borrowing costs. Balancing inflation control with growth is critical. A more nuanced monetary policy approach that supports growth while keeping inflation in check could be instrumental. The government’s continued focus on structural reforms and fiscal prudence will also play a crucial role in complementing the RBI’s efforts.

Path to Recovery

Job Creation and Skill Development: India’s large and youthful workforce is a double-edged sword. While it presents immense potential for economic growth, it also poses a challenge in terms of job creation. Despite the current slowdown, India has shown resilience in sectors like technology, e-commerce, and renewable energy, which continue to create jobs. Employment in the technology sector, for example, grew by 5.7% in 2024, even amidst global tech layoffs. Initiatives such as ‘Skill India’ and ‘Make in India’ are set to bridge the skills gap and enhance employability. By focusing on high-growth sectors and promoting startups, India can harness its demographic dividend, leading to sustainable economic growth.

Accelerating Structural Reforms: Structural reforms are the cornerstone of sustained economic growth. The government’s commitment to reforming labour laws, land acquisition processes, and the financial sector has already begun to show positive outcomes. The pace of these reforms is vital in enhancing the ease of doing business, attracting foreign investment, and fostering domestic entrepreneurship. Prime Minister Modi’s administration has shown determination in driving these reforms forward, ensuring that India remains an attractive destination for global investors. Accelerating these reforms could unlock India’s growth potential, driving the economy back to a high-growth trajectory.

Sustained Growth

India’s economic fundamentals remain strong. The country continues to be one of the most attractive investment destinations globally, thanks to its large market, growing middle class, and pro-business government policies. The slowdown is temporary, and with strategic interventions, India is well-positioned to regain its growth momentum. Critical areas of focus include:

Promoting Export Competitiveness: Diversifying export markets and improving the quality and competitiveness of Indian goods will reduce dependency on traditional markets and drive export-led growth.

Enhancing Infrastructure Investment: Continued investment in infrastructure, particularly in logistics, transportation, and digital infrastructure, will reduce costs, enhance productivity, and attract investments.

Innovation and digitalisation: Encouraging innovation and leveraging digital technologies across sectors can boost productivity, create jobs, and sustain growth.

The Bottom Line is that India’s GDP growth slip, while a cause for concern, is not a reflection of the country’s long-term economic potential. The proactive and visionary Indian leadership has laid a solid foundation for sustained growth. By addressing both domestic and global challenges with strategic policy measures and reforms, India is poised not only to recover from this slowdown but to emerge stronger, reaffirming its position as one of the world’s leading economies. With the right mix of policies and reforms, India can convert this temporary setback into an opportunity for renewed growth and prosperity.

Rakesh K Chitkara is an expert in public policy, regulations, and international trade.

India’s Top 3 Wealthiest Families’ Net Worth Matches Singapore’s GDP

August 15, 2024, 10:59 pm

India’s three richest families—the Ambanis, Bajajs, and Birlas—hold a combined wealth of $460 billion, a figure comparable to the GDP of Singapore. This staggering valuation highlights the dominance of these family businesses in the Indian economy.

Ambani Family Leads the Pack

Topping the list is the Ambani family, with a net worth of Rs 25.8 lakh crore ($309 billion). The family’s vast business empire, which includes Reliance Industries, secures their place as the wealthiest in India, according to the Barclays Private Clients Hurun India most valuable family businesses list.

Bajaj and Birla Families Follow

Following the Ambanis, the Bajaj family, led by Niraj Bajaj, ranks second with a valuation of Rs 7.1 lakh crore. The Birla family, headed by Kumar Mangalam Birla, ranks third with a net worth of Rs 5.4 lakh crore. These families have established themselves as pillars of Indian industry through their diverse and long-standing business ventures.

Adani Family Tops First-Generation Entrepreneurs

The Adani family, known for their rapid rise in wealth, leads the list of first-generation entrepreneurs with business interests valued at Rs 15.4 lakh crore. They are followed by the Poonawalla family, who manage the Serum Institute of India, valued at Rs 2.4 lakh crore, and the Divi family, overseeing Divi’s Laboratories, valued at Rs 91,200 crore.

Business Families’ Total Wealth Exceeds GDP of Switzerland and UAE

The combined wealth of the families on the 2024 list amounts to $1.3 trillion, surpassing the GDP of countries like Switzerland and the UAE. To qualify for the list, a family business must have a minimum value of Rs 2,700 crore, with 124 families boasting a net worth of at least $1 billion.

Notable Highlights

The Benu Bangur family leads in share price growth since inheritance, with a 571-fold increase, followed by the Taparia and Dharmpal Agarwal families.
Haldiram Snacks stands out as the most valuable unlisted company in India, valued at Rs 63,000 crore.
The list also includes 15 companies led by women and 53 managed by professional CEOs, showcasing the diversity in leadership.

Legacy Businesses and Long-Standing Traditions

The Gadgil family, with their six-generation-old jewellery business PN Gadgil & Sons, valued at Rs 3,900 crore, and the Wadia Group, led by Nusli Wadia and valued at Rs 1,28,900 crore, are at the forefront of long-standing family businesses. The Burman family of Dabur India and the Shriram family of DCM Shriram are notable for their five-generation-old enterprises.

These figures underscore the significant impact and legacy of India’s wealthiest families, who continue to shape the country’s economic landscape.

Top 7 Key Figures in Budget 2024: Gauging India’s Economic Health Under Sitharaman

July 23, 2024, 11:17 am

Union Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024 in Parliament today, marking her 7th consecutive budget and surpassing the record held by the late Morarji Desai. This budget presentation is the first of Narendra Modi’s third term as Prime Minister.

Union Finance Minister Nirmala Sitharaman, along with the Minister of State, was seen leaving the Finance Ministry en route to Parliament House to present the General Budget in New Delhi on Tuesday. The photograph is credited to Arvind Yadav/HT.

At 11 a.m., FM Sitharaman will present various financial documents in the Lok Sabha. The budget will highlight key figures demonstrating the growth of the Indian economy under the leadership of PM Modi and FM Sitharaman.

Key Numbers to Watch in Budget 2024:

Fiscal Deficit:
– The fiscal deficit for the current fiscal year is projected at 5.1%, down from 5.8% last year.
– This reduction is attributed to strong tax revenue growth.
– The government aims to bring down the fiscal deficit to 4.5% of GDP by FY26.

Capital Expenditure:
– The planned capital expenditure for this fiscal year is ₹11.1 lakh crore, an increase from ₹9.5 lakh crore the previous year.
– The focus remains on infrastructure development, encouraging states to boost their capital expenditure.

Tax Revenue:
– The projected gross tax revenue for 2024-25 is ₹38.31 lakh crore, reflecting an 11.46% increase from the previous year.
– This includes ₹21.99 lakh crore from direct taxes and ₹16.22 lakh crore from indirect taxes.

GST Collection:

– The Goods and Services Tax (GST) collection for 2024-25 is expected to rise to ₹10.68 lakh crore, an increase of 11.6%.

Government Borrowing:
– The gross borrowing for the current financial year is budgeted at ₹14.13 lakh crore.
– The borrowing trends will be closely monitored, especially after the higher-than-expected dividend from the RBI.

Nominal GDP:
– India’s nominal GDP growth for the current fiscal year is estimated at 10.5%, reaching ₹327.7 trillion.
– Real GDP growth is projected at 7.2%, according to the RBI.

Dividend:
– The Interim Budget had estimated ₹1.02 lakh crore from the RBI and financial institutions, but this is expected to increase due to the RBI’s surplus transfer of ₹2.11 lakh crore in May.
– An additional ₹43,000 crore is anticipated from Central Public Sector Enterprises (CPSEs).

Stay updated with the latest on Budget 2024, including real-time insights and detailed analysis, by following our live updates.

The Shift from Briefcase to ‘Bahi-Khata’:

Finance Minister Nirmala Sitharaman will present Budget 2024-25 in Parliament with a digital tablet wrapped in a traditional ‘bahi-khata’ style pouch, continuing the paperless format introduced by the Narendra Modi government.

In 2019, Sitharaman replaced the colonial budget briefcase with a ‘bahi-khata’, and in 2021, she transitioned to using a digital tablet. This year’s budget marks her seventh consecutive presentation.

The budget briefcase tradition originated in 18th-century Britain. The term ‘Budget’ comes from the French word ‘bougette’, meaning a small leather briefcase. In 1860, British Chancellor William E. Gladstone used a red suitcase with the Queen’s monogram to carry his budget papers. India’s first finance minister, RK Shanmukham Chetty, also used a leather portfolio in 1947, and subsequent finance ministers continued this tradition until 2019.

Decoding Economic Survey

July 22, 2024, 12:21 am

The wait for the full Budget for 2024-25 is almost over as the Union government is set to table the Economic Survey on Monday. Union Finance Minister Nirmala Sitharaman will table the pre-budget document in Parliament, a day ahead of the Budget presentation.

What is an Economic Survey:
The Economic Survey document, prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and formulated under the supervision of the chief economic adviser, will give insights into the state of the economy and various indicators of 2023-24 (April-March) and some outlook for the current year.

The Economy Survey document may also give some idea about the tone and texture of the actual Budget for 2024-25, to be presented on Tuesday.The first economic survey reportedly came into existence in 1950-51, when it used to be a part of the budget documents. In the 1960s, it was separated from the Budget documents and presented the day before the Union Budget. The most important feature that many will look out for is its central theme. In 2022, the central theme was ‘Agile Approach’, which emphasized on India’s economic response to the COVID-19 pandemic shock. In 2023, it was ‘recovery complete’, when the economy staged a broad-based recovery from pandemic-induced contraction, Russian-Ukraine conflict, and inflation, and ascended to the pre-pandemic growth path.

Typically, along with the sectoral chapters, the Survey document also adds new need-based chapters that need focus. All eyes will be on the major announcements made by the finance minister and the government’s forward-looking guidance about the overall economy. With this upcoming budget presentation, Finance Minister Nirmala Sitharaman will surpass the record set by former Prime Minister Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964 as finance minister. Sitharaman’s upcoming budget speech will be her seventh. Sitharaman has surpassed Manmohan Singh, Arun Jaitley, P. Chidambaram, and Yashwant Sinha, who each presented five budgets.

Halwa ceremony:
A key event before the budget presentation is the ‘halwa ceremony’. A few days before the budget is presented, the government has a tradition of conducting a ‘halwa ceremony’, marking the start of budget document printing.

This year, the Halwa ceremony, marking the final stage of the budget preparation process for the full budget of 2024-25, was held in North Block on July 16 in the presence of Finance Minister Sitharaman, Minister of State Pankaj Chaudhary, and secretaries. Officers and staff involved in the budget preparation and compilation process were also present on the occasion. The Halwa ceremony is significant as it also marks the beginning of a lockdown at the finance ministry, meaning no official is allowed to leave the ministry compound. Everyone on the budget team is allowed to leave only after the financial document is presented in Parliament. The printing of the Union Budget inside the basement located in the North Block has been a permanent feature since 1980.
On budget day, Tuesday, the Finance Minister will present the Union Budget in the Lok Sabha at 11 am. The budget speech will outline the government’s fiscal policies, revenue and expenditure proposals, taxation reforms, and other significant announcements.
The budget is then subjected to detailed debate and discussion in both houses of Parliament, allowing members to scrutinise its provisions, raise concerns, and propose amendments. Following its presentation and approval by Parliament, the Union Budget sets in motion a series of post-budget activities aimed at implementing its provisions and achieving the outlined objectives.

On the morning of budget day, the finance minister will go to the North Block, where the Ministry of Finance is housed. She will meet the secretaries of her ministry, and later, along with them, she will reach the President’s residence to get permission before presenting the Budget. Half an hour before the budget is presented, a Cabinet meeting headed by the Prime Minister is usually held, where ministers are briefed about the budget and Cabinet approval is taken. Like the previous few full Union budgets, the budget 2024 will also be delivered in paperless form.

State of the Economy:
The Reserve Bank of India, in its latest monetary policy meeting, raised the GDP forecast for the current year 2024-25 to 7.2 per cent from 7 per cent earlier. The strength of domestic demand has driven the economy to a 7 per cent plus growth rate in the past few years. The International Monetary Fund (IMF), in its latest outlook, has raised India’s growth projections for 2024 from 6.8 per cent earlier to 7 per cent, with the country maintaining the fastest-growing status in emerging markets and developing economies.
The IMF had earlier projected growth rate of 6.5 per cent for 2024, revising it to 6.8 per cent and now 7 per cent. India continues to be the fastest-growing major economy.
According to official data of the Indian government, the country’s GDP grew at an impressive 8.2 per cent during the financial year 2023-24. India’s economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22 respectively.

Coming to inflation, RBI projected it at 4.5 per cent for 2024-25.
Rising food prices continued to be a headache for Indian consumers with the inflation rate in the food segment almost doubling year-on-year in June. The food inflation almost doubled to 8.36 per cent last month, versus 4.63 per cent reported same month of 2023, data showed. India’s overall retail inflation rate hardened in June, taking a departure from the moderation it witnessed in the past months, pushed by rising food prices.
The retail inflation in India is in RBI’s 2-6 per cent comfort level but is above the ideal 4 per cent scenario. Barring the recent pauses, the RBI has raised the repo rate by 250 basis points cumulatively since May 2022 in the fight against inflation. Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline. The repo rate is the rate of interest at which the RBI lends to other banks. Faced with food inflation remaining at elevated levels consistently, the Reserve Bank of India recently said that it is too long a period for a food price shock to be termed as transitory.

Highlights of the interim Budget tabled on February 1, 2024:
The government proposed to increase capital expenditure outlay by 11.1 per cent to Rs 11.11 lakh crore in 2024-25, amounting to 3.4 per cent of the GDP. A capital expenditure, or capex, is used to set up long-term physical or fixed assets.

Coming to the fiscal deficit, the government pegged for 2024-25 at 5.1 per cent of gross domestic product (GDP). In 2023-24, the government pegged the fiscal deficit target for 2023-24 at 5.9 per cent of gross domestic product (GDP). The fiscal deficit of 2023-24 was downwardly revised to 5.8 per cent. The government intends to bring the fiscal deficit below 4.5 per cent of GDP by the financial year 2025-26.

The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings that may be needed by the government. In relief to the citizens, the central government neither tweaked nor raised the tax burden on citizens. An Interim Union Budget 2024 was presented on February 1, as the country was due for general elections later in the year.

The interim budget, took care of the financial needs of the intervening period until a government was formed after the Lok Sabha polls, after which a full budget was to be presented by the new government. The robustness seen in domestic demand–private consumption and investment–traces its origins to the reforms and measures implemented by the government over the last 10 years. Also, firm GDP growth forecasts, inflation at manageable levels, political stability and signs of the central bank tightening its monetary policy have all contributed to painting a bright picture for the Indian economy.
According to projections, India is expected to become the third-largest economy in the world with a GDP of USD 5 trillion in the next three years. Subsequently, India can aspire to become a USD 7 trillion economy in the next six to seven years (by 2030).

Gujarat Records FDI Inflow of $7.3 bn in FY 2023-24

July 5, 2024, 6:19 pm

Gujarat saw an astronomical increase in Foreign Direct Investment (FDI) last year, the latest data by the Ministry of Commerce and Industry has revealed. Registering a 55% increase in the FDI inflow during FY 2023-24 as compared to the previous year, the state received a whopping $7.3 bn in FY 2023-24. Notably, in FY 2022-23, it received merely $4.7 bn.

With the FDI inflow of $7.3 bn, Gujarat moved ahead of Karnataka and Delhi to reach the second spot in the country. It topped the chart in the annual increase in FDI inflow this year by recording a jump of $2.6 bn. Gujarat has also shown consistent growth in attracting FDI for three consecutive financial years by securing investments of $2.7 billion in FY2022, $4.7 billion in FY2023 and $7.3 billion in FY2024.

Aligned with PM Narendra Modi’s vision of Viksit Bharat, Chief Minister Shri Bhupendra Patel has enacted numerous industry-friendly policies and decisions, leading to significant positive outcomes in the state.

Speaking about the consistent performance of Gujarat in attracting FDI inflow, Shri Balvantsinh Rajput, Minister of Industries and Mines, Govt. of Gujarat, said, “Under the guidance of Hon’ble Prime Minister Shri Narendra Modiji, our Chief Minister Shri Bhupendrabhai Patel is ensuring that every possible mechanism that facilitates investment and business is in place ranging from state-of-the-art industrial infrastructure to business-friendly government policies. Due to the dedicated efforts of the Prime Minister and the Chief Minister, Gujarat is also attracting significant investment in emerging industries like semiconductors and other promising sectors.”

Factors Fuelling FDI Inflow in Gujarat

Among the major factors that have played a role in attracting FDI are Gujarat’s state-of-the-art industrial infrastructure, industry-friendly policies, and consistent enhancement in ease of doing business. Cluster-based industrial regions such as GIFT City, Sanand GIDC, Dholera SIR (Special Investment Region) and Mandal Bechraji SIR also play a significant role in attracting the investors. Marquee projects such as multiple semiconductor manufacturing plants have also played a huge role in attracting foreign investment.

Launch and effective implementation of new sector-specific policies in areas such as renewable energy, semiconductor, and IT in the last three years have also created a favourable investment climate. Financial incentives to entrepreneurs and small industries setting up base in Gujarat, expedited allotment of land, power connection and other business friendly measures have also played a prominent role in bringing new investment.

The biennial Vibrant Gujarat Summits that Hon’ble Prime Minister Shri Narendra Modi had first pioneered during his tenure as Gujarat CM has also played a significant role in bringing new investment. Notably, the first Vibrant Summit during the Azadi Ka Amrit Kaal, held in January this year, was also highly successful.

FDI Inflow: Top Five States

With a total FDI inflow of $15.1 bn in 2024, Maharashtra sits on the top spot followed by Gujarat with $7.3 bn. Karnataka, Delhi and Telangana in the same order are on the third, fourth and fifth spot with the respective FDI inflows of $6.6 bn, $6.5 bn and $3 billion.

India to Resume Wheat Imports After Six Years to Boost Reserves

May 29, 2024, 3:20 pm

India is set to resume wheat imports after a six-year hiatus to replenish low reserves and control rising prices following three years of poor harvests. According to sources, this move comes as the end of general elections removes a key obstacle.

Officials and other sources told Reuters that New Delhi plans to scrap the 40% wheat import tax this year, allowing private traders and flour millers to purchase wheat from major exporters like Russia, though in limited quantities. The government is likely to wait until after June to remove the import tax, coinciding with Russia’s wheat harvest.

“There is a compelling case for the removal of the wheat import duty,” said Pramod Kumar, president of the Roller Flour Millers’ Federation of India. “That is the best possible way to ensure sufficient supplies in the open market.”

A government source confirmed this sentiment, stating, “The considered view is that the wheat import duty should be removed after June, so that the private trade can import wheat. And to protect our farmers’ interest, the duty should be reinstated before wheat planting starts in October.”

Prime Minister Narendra Modi’s Bharatiya Janata Party is expected to win the election, which concludes on June 1, with vote counting on June 4.

Traders are ready to begin imports if the 40% duty is lifted. Rajesh Paharia Jain, a New Delhi-based trader, estimated that about 3 million metric tons of imports would suffice, with Russia being the most likely supplier.

“Once the government removes the duty, private trade can start importing wheat,” he said. Imports would help prevent a price surge during October’s peak demand for the festival season, according to a New Delhi-based dealer with a global trade house. Imports of 3 to 5 million metric tons would negate the need for New Delhi to sell large quantities from reserves.

After five consecutive record harvests, India’s wheat crop suffered due to a sharp rise in temperatures in 2022 and 2023, leading the world’s No. 2 producer to ban exports. This year’s crop is expected to be 6.25% lower than the government estimate of 112 million metric tons.

Domestic prices have remained above the state-set minimum purchase rate of 2,275 rupees per 100 kg and have recently started rising.

Wheat stocks in state warehouses dropped to 7.5 million metric tons in April, the lowest in 16 years, after the government sold more than 10 million tons to flour millers and biscuit makers to control prices.

“The removal of the import duty will help us ensure that our own reserves don’t fall below a psychological benchmark of 10 million tons,” said a government official.

The government has struggled to replenish state wheat stocks, managing to buy only 26.2 million metric tons against a target of 30 to 32 million since the harvest began in April, despite advising trading houses to refrain from purchases. State procurement is unlikely to exceed 27 million metric tons, according to a New Delhi-based dealer with a global trading house.

New Delhi needs nearly 18.5 million metric tons of wheat for its extensive food welfare program. The opposition Congress party has promised to double the current supply of free grain if elected.

New Delhi has resisted wheat imports to avoid angering farmers, a significant voting bloc, but this restriction is expected to end with the conclusion of the lengthy election. While India’s import needs are modest, they could still impact global prices. Benchmark wheat prices in Chicago recently hit a 10-month high due to concerns over crop losses in the Black Sea region.

“Despite the recent rise in global prices, imports at zero duty are economically viable, and that’s why the new government should remove the duty to enable the trade to import,” said Kumar, the flour milling official.

India’s Chemical Market To Reach $29.7 Billion, Forecasts 3.26% CAGR Growth By 2029

May 25, 2024, 3:28 pm

The Indian chemicals market, valued at $220 billion since 2023, is expected to reach USD 383 billion by 2030.

Thus, underpinning the growth by 8.1 percent anticipated CAGR from 2021 to 2030.

As a sixth largest globally by chemical sales, India is getting huge foreign direct investment. Which had cumulatively reached USD 21.7 billion in the period between April 2000 to September 2023.

Further benefiting from 100 percent FDI under automatic route, this sector is currently enjoying investor’s confidence and a huge growth.

In addition, India’s Petroleum, Chemical, and Petrochemical Investment Regions (PCPIRs), is predicted to attract investment worth USD 420 billion.

Meanwhile, the specialty chemicals will likely grow at a CAGR of 12 per cent from 2020 to 2025, owing to their innovations and its huge demand across different applications.

In order to bolster growth in this sector, seven of CIPET (Central Institutes of Petrochemicals Engineering & Technology) and IPFT (Institute of Pesticide Formulation Technology) have been established to ensure, that a skilled human resource will be able to contribute to sector’s growth.

In 2024, the market’s per capita value will reach USD 20.6 with a 21% added value margin.

Overall, the chemical market’s output is forecasted to reach $143.3 billion with a 2.71% CAGR over the next five years.

As for the employment, it is projected to reach 1 million by 2024, which will be backed by CAGR of 3.19 per cent in the chemical sector.

Several factors are propelling the growth of this sector. These include increasing domestic consumption, which goes hand in hand with demand from end-use industries such as packaging and automotive.

Additionally, favorable government policies, enhanced infrastructure, and the availability of skilled labor at competitive prices are also significantly contributing to the expansion of India’s chemical sector.

FM Nirmala Sitharaman emphasizes for more focus on investment in manufacturing sector

May 17, 2024, 1:10 pm

Finance Minister Nirmala Sitharaman emphasized the need for a stronger focus on the manufacturing sector. Speaking at the CII Annual Business Summit 2024 in Delhi, Sitharaman acknowledged that while many advocate for India’s potential in services, manufacturing cannot be overlooked and requires increased investment and government support.

The minister emphasised that sophisticated product production is essential, and that strong policy support is required. “Manufacturing must expand, and India must enhance its role in global manufacturing value chains through effective policies and investment,” She said.

At the function, Sitharaman read aloud from an IMF analysis projecting that, beginning in 2023, India would contribute 18% of global growth over the following five years. She emphasised that India’s growth is most active between 2023 and 2028.

“For the five years beginning in 2023, India is expected to provide 18% of global growth, according to IMF predictions. Thus, we anticipate a dynamic India making a big contribution to global economy between 2023 and 2028,” the minister said.

Sitharaman also emphasised the remarkable growth story of India, using data from S&P Global Market Intelligence regarding the country’s expanding consumer market.

There is a $2.9 trillion opportunity as the Indian consumer market is expected to treble by 2031. It is anticipated that food expenditures by Indian consumers will amount to $1.4 trillion, with a further trillion-dollar potential,” the speaker stated.

Quoting the S&P report, the minister highlighted significant opportunities in India’s financial market as well. “Spending on financial services is predicted to reach $670 billion, with a $390 billion untapped opportunity,” she noted.

Sitharaman also shared projections from the World Economic Forum indicating the creation of 50 million net jobs in India from green energy, contributing $1 trillion to the economy by 2030.

“The WEF projects that 50 million net jobs will be created in India from green energy, with a $1 trillion economic impact by 2030. Solar energy alone exemplifies the potential for job creation,” she stated.

While talking about reforms to India’s financial sector, Sitharaman emphasised the answer to the “twin balance sheet problem,” in which growing non-performing assets (NPAs) and unpaid debt negatively impacted both corporate and financial sector balance sheets.

“According to the government survey and RBI, there has been a shift from the twin balance sheet issues of 2013–14 to a twin balance sheet advantage. She clarified that the balance balances of the corporate and financial sectors have not only recovered but are also in a position to support growth.

Conversations on six themes are covered in the CII conference: Green Economy, India and the World, Advanced Technology and Innovation, Jobs and Livelihood, Startups, and New Age Businesses. The two-day CII Annual Business Summit is scheduled to take place in Delhi on May 17–18.

India Poised To Surpass Japan, Become 4th Largest Economy By 2025: Amitabh Kant

May 12, 2024, 4:20 pm

India is poised to overtake Japan and become the world’s fourth-largest economy by 2025, as per Amitabh Kant, India’s G20 Sherpa and former CEO of Niti Aayog. Kant attributes this projection to various favorable macroeconomic indicators. Currently ranked fifth, India’s GDP trails behind the United States, China, Germany, and Japan, with India surpassing the United Kingdom in 2022. This achievement underscores India’s impressive economic growth, especially considering that a decade ago, its GDP ranked eleventh globally.

Currently, the nation’s GDP is approximately $3.7 trillion. As per an ANI report, Kant has underscored various crucial elements that have propelled India’s transformation from being among the “Fragile 5” in 2013 to emerging as one of the top 5 economies by 2024. These factors encompass record GST collection, sustained GDP growth exceeding 8% in the last three quarters, the utilization of the Indian Rupee for trade with 27 nations, and manageable levels of inflation.

The term “Fragile 5” was coined by a Morgan Stanley analyst in 2013 to denote five emerging economies, including India, that were encountering economic challenges at that time. The other four countries were Brazil, Indonesia, South Africa, and Turkey. Kant also highlighted the double-digit growth in sectors like steel, cement, and automobile manufacturing, along with India’s global leadership in digital public infrastructure.

E-transactions have surged to 134 billion, constituting 46% of all global digital payments. Additionally, accounts opened under the Jan Dhan, Aadhaar, and Mobile trinity hold a current balance exceeding Rs 2.32 lakh crore. The average annual inflation rate between 2013-14 and 2022-23 decreased to 5% from 8.2% recorded between 2003-04 and 2013-14, further underscoring India’s robust growth.

The Indian economy has been showcasing a promising outlook in recent quarters, buoyed by firm GDP growth forecasts, manageable inflation rates, political stability at the central government level, and commendable monetary policy from the central bank, as per the ANI report. India recorded a notable GDP growth of 8.4% during the October-December quarter of the financial year 2023-24, with expectations of maintaining this growth trajectory in the future.

According to the International Monetary Fund’s latest World Economic Outlook, India is anticipated to retain its position as the fastest-growing major economy in 2024. The IMF has revised India’s growth projections for 2024 from 6.5% to 6.8%, reflecting the country’s robust economic performance. India’s economy expanded by 7.2% in 2022-23 and 8.7% in 2021-22, underscoring its status as a prominent global economic player.

RBI: Need 8-10% Annual Growth for India’s Developmental Goals

April 24, 2024, 1:22 am

To fulfill its developmental objectives over the next thirty years, the Indian economy needs to maintain a growth rate of 8-10% per annum in the coming decade. This is crucial to capitalize on the demographic dividend, which began accruing in 2018 and is projected to continue until 2055, as per assessments, according to an article in the Reserve Bank of India’s (RBI) monthly bulletin, released on Tuesday.

In its article titled ‘State of the Economy,’ the RBI stated that conditions in India are indicating a continuation of the trend that raised the average real GDP growth above 8 per cent during 2021-24.

Thus far, the enhancement of capital is driving the acceleration of the country’s growth path, propelled by consistent public investment and reinforced by advancements in productivity.

“More recently, a resurgence of private investment has become visible, according to the Asian Development Bank (ADB), which is shifting its investment strategy to expand space for private capital,” read the article.

The creditworthiness of Indian corporates has improved due to deleveraged balance sheets, steady domestic demand, and increased public capital expenditure. Rating upgrades have consistently outnumbered downgrades. The article suggests that to leverage its favorable demographics and surpass the low-middle-income barrier, India’s developmental strategy in the coming decades should focus on maximizing the contribution of its youthful and expanding labor force to Gross Value Added growth.

It stressed the importance of enhancing the employability of the youth.

“Raising employability–the set of skills that makes a person more likely to gain employment in a chosen occupation to benefit the person, the workforce, the community and the economy–with a focus on the formalisation of employment opportunities for the youth and women should continue to be the hallmark of the strategy,” the article read.

India’s growth trajectory will significantly depend on the quality of its workforce, given that the working-age population is projected to increase by approximately 9.7 million per annum from 2021-31 and 4.2 million per annum from 2031-41.

Although labor quality has historically exhibited slow growth, at a rate of 0.7% per annum between 1980 and 2021, there is increasing evidence indicating an improvement in the growth rate of aggregate labor quality since 2017-18.

The improvement in aggregate labor quality is primarily driven by the services sector. Additionally, a significant development supporting India’s growth aspirations is the evolution of inflation dynamics in recent data. The article contends that since January of this year, the easing of headline inflation is bolstering growth prospects.

In India, the Consumer Price Index (CPI) inflation stood at 4.9% in March, down from an average of 5.1% in the preceding two months, following a recent peak of 5.7% in December 2023.

“With 4 per cent inflation finally being sighted, there is greater confidence now that the descent of inflation to the target is imminent,” it said.

Inflation remains the primary concern for members of the Monetary Policy Committee of RBI as they consider loosening their stance on key interest rates.

According to the minutes of the latest monetary policy meeting released last week, uncertainties surrounding inflation were frequently mentioned. Looking forward, uncertainties regarding food prices are expected to persist and impact the inflation outlook, as stated in the minutes.

Retail inflation in India falls within the RBI’s comfort level of two-six percent but remains above the ideal scenario of four per cent. While inflation has been a concern for many countries, including advanced economies, India has generally succeeded in managing its inflation trajectory effectively.

India a fastest growing economy for the last 3 years: Sitharaman

April 16, 2024, 10:11 pm

In a dialogue programme with investors & businessmen, Union Finance minister Nirmala Sitharaman has recently declared on Tuesday, that India has been a fastest growing economy from the last three consecutive financial years and asserted that this growth can be sustained in the years to come.

She said that the coming 25 years will be extremely critical for the country. Talking about India’s growth in detail, she also added that it is due to India’s economic credibility, that the foreign investors are coming to invest in this country.

In the financial year of 2023-24, India has seen 8% growth during all 3 quarters. Followed by the recent revision of IMF’s forecast, which now predicts that Indian economy is likely grow at 6.8% this financial year 2025.

“Due to the economic policy, larger macroeconomic stability, stable government, stable taxation policy, transparent tenders and procurement, there has been immense credibility of India’s economy abroad. So, the investors are coming here to invest,” she said.

She mentioned that international investors are showing interest in investing in India because they trust the stability and reliability of its economy.

India is one of the fastest-growing major economies in world: PM Modi

March 1, 2024, 1:29 pm

Emphasizing the goal of making India a developed nation by 2047, Prime Minister Narendra Modi highlighted the country’s status as one of the fastest-growing major economies globally. He cited the economic statistics for the latest quarter, pointing out the growth rate of 8.4 percent in the financial quarter from October to December 2023 as indicative of India’s rapid development towards achieving the goal of a developed India.

Addressing a public rally in Dhanbad’s Sindri, PM Modi stressed the government’s efforts in the past decade towards the development of Jharkhand, particularly focusing on the welfare of the tribal community, the poor, youth, and women. He reiterated the importance of making Jharkhand a developed state in the journey towards a developed India by 2047.

PM Modi expressed confidence in Jharkhand becoming a source of energy for the resolutions of a developed India. He acknowledged the need for all-round support to Jharkhand in its development efforts.

Chief Minister Champai Soren, speaking at the same event, emphasized the importance of enhancing irrigation facilities in Sindri to benefit the agriculture sector and farmers in the state. Union Minister Arjun Munda highlighted the growth in agriculture production and budget allocation for the sector, indicating progress in agricultural development.

India’s GDP growth of 8.4 percent in the October-December quarter of the current financial year reaffirmed its status as the fastest-growing major economy. The economy has shown consistent growth, with real GDP growth rates of 7.8 percent and 7.6 percent in the preceding two quarters, respectively.

The Reserve Bank of India has projected a GDP growth rate of 7 percent for the current financial year, slightly lower than the National Statistics Office’s initial estimate of 7.3 percent. Domestic demand has been a key driver of India’s economic growth, with the economy growing at 7.2 percent in 2022-23 and 8.7 percent in 2021-22.

PM Modi lauds Indian economy’s strength after 8.4 pc GDP growth in Q3

March 1, 2024, 11:07 am

Prime Minister Narendra Modi has once again reiterated that his government will continue in its mission to ensure India’s economic growth is on the upward trajectory soon after data showed that the country’s gross domestic product (GDP) had registered a robust 8.4 per cent growth in the third quarter of 2023-24. While stating that 8.4 per cent growth of the GDP shows the strength of the Indian economy, PM Modi added that the government will continue its efforts for fast economic growth to create ‘Viksit Bharat’.

In his post on X, PM Modi pointed out that the people of the country will lead a better life due to the fast economic growth. “Robust 8.4% GDP growth in Q3 2023-24 shows the strength of Indian economy and its potential. Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat!” he said.

India’s GDP grew at 8.4 per cent during the October-December quarter of the current financial year. India is already the fastest growing major economy of the world and has come out completely of the COVID pandemic induced slowdown which has derailed several other big countries.

India also has not faced any adverse impact of the Russia-Ukraine war, which has been going on the last two years, as well as the Israel-Hamas conflict in the middle east.

The Indian economy grew 7.8 per cent and 7.6 per cent during the preceding two quarters – April-June and July-September, data released by the Ministry of Statistics and Programme Implementation on Thursday showed.

Real GDP or GDP at Constant (2011-12) Prices in the year 2023-24 is estimated to attain a level of Rs 172.90 lakh crore, against the FRE (first revised estimates)of GDP for the year 2022-23 of Rs 160.71 lakh crore.

The growth rate of GDP during 2023-24 has been estimated at 7.6 per cent as compared to growth rate of 7 per cent in 2022-23.

Nominal GDP or GDP at Current Prices in the year 2023-24 is estimated to attain a level of Rs 293.90 lakh crore, against Rs 269.50 lakh crore in 2022-23, showing a growth rate of 9.1 per cent.

GDP at Constant (2011-12) Prices in Q3 of 2023-24 is estimated at Rs 43.72 lakh crore, against Rs 40.35 lakh crore in Q3 of 2022-23, showing a growth rate of 8.4 per cent. GDP at Current Prices in Q3 of 2023-24 is estimated at Rs 75.49 lakh crore, as against Rs 68.58 lakh crore in Q3 of 2022-23, showing a growth rate of 10.1 per cent.

India’s real GDP growth for the current financial year ending in March 2024 is also pegged at 7 per cent by the Reserve Bank of India. It is 30 basis points lower than the National Statistics Office’s first estimates 7.3 per cent.

The strength of domestic demand has driven the economy to a 7 per cent plus growth rate in the last three years.

India’s economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22, respectively.

The robustness seen in domestic demand — private consumption and investment — traces its origin to the reforms and measures implemented by the government over the last 10 years, Department of Economic Affairs under the Ministry of Finance had said earlier.

In the next three years, India is expected to become the third-largest economy in the world, with a GDP of USD 5 trillion.

(With Inputs From ANI)

Sitharaman to lay White Paper on Indian Economy in Lok Sabha

February 8, 2024, 3:53 pm

On Thursday, Finance Minister Nirmala Sitharaman is set to present a White Paper on the Indian economy to the Lok Sabha, as per the supplementary list of business for February 8. This initiative comes amidst the ongoing budget session, which commenced with President Droupadi Murmu’s address to the joint sitting of both Houses on January 31. Notably, this session marks the final gathering of the current Lok Sabha before the upcoming general elections anticipated to be held in April-May this year.

In the union budget unveiled on February 1, the government announced its intention to release a ‘White Paper’ to evaluate the economic performance during the tenures of both the Congress-led UPA government and the BJP-led NDA government over the past decade. Sitharaman, while presenting the interim budget for 2024-25 in Parliament, emphasized the significant strides made by the Modi administration since assuming office in 2014, overcoming economic challenges and steering the nation towards sustainable growth.

She stated, “The crisis of those years has been overcome, and the economy has been put firmly on a high sustainable growth path with all-round development.” Sitharaman highlighted the government’s commitment to transparency and accountability by announcing the presentation of the White Paper, aimed at assessing the economic trajectory from pre-2014 to the present, with a focus on learning from past shortcomings.

Emphasizing the government’s dedication to the welfare and progress of the nation, she remarked, “The exemplary track record of governance, development and performance, effective delivery, and ‘Jan Kalyan’ has given the government trust, confidence and blessings of the people to realize, whatever it takes, the goal of ‘Viksit Bharat’ with good intentions, true dedication and hard work in the coming years and decades.”

The budget session, originally scheduled to conclude on February 9, has been extended by a day.

PM Modi’s ‘Wed in India’ Initiative Could Bring Rs 1 Lakh Crore Boost to Indian Economy

December 9, 2023, 2:52 pm

Prime Minister Narendra Modi’s recent call for “Wed in India” has the potential to redirect an estimated Rs 1 lakh crore back to the country, a move applauded by the Confederation of All India Traders (CAIT). This visionary initiative, reminiscent of the successful “Make in India” campaign, aims to curb unnecessary outflows of currency from the nation, particularly related to expenditures on destination weddings abroad.

The “Wed in India” concept was introduced by PM Modi during his monthly “Man Ki Baat” on November 26, encouraging citizens to opt for destination weddings within the country. CAIT, since the announcement, has actively led a campaign to promote this idea among businesses and civil society across India.

While official surveys on destination weddings by Indians abroad are scarce, estimates suggest that approximately 5,000 such weddings take place each year, with expenditures ranging from Rs 75 thousand crore to Rs 1 lakh crore. CAIT National President BC Bhartia and Secretary Praveen Khandelwal emphasized that India has over 2,000 potential locations for grand destination weddings in approximately 100 major cities across various states. Among the notable options are Goa, Mumbai, Jaipur, Udaipur, Chennai, and Delhi.

Highlighting the economic impact, Bhartia and Khandelwal noted that redirecting destination weddings from foreign countries to domestic venues could keep a substantial business within India. They urged the affluent class to lead this shift, anticipating that others would follow suit, contributing to the growth of the country’s wedding industry.

India’s wedding industry has developed a robust network over the years, making wedding-related goods and services a significant economic contributor. The CAIT leaders stressed that hosting destination weddings in India would not only preserve Indian values but also provide a considerable boost to the nation’s business and economy.

The “Wed in India” initiative aligns with PM Modi’s broader vision to retain India’s wealth within the country, foster economic growth, and generate substantial employment opportunities. As this campaign gains momentum, it has the potential to significantly impact the wedding industry and related sectors, positively influencing the Indian economy. Further developments are expected as businesses and individuals respond to this call to support domestic events and celebrations.

PM Modi Highlights India’s Economic Growth and Leadership Role in Global South at InFinity Forum

December 9, 2023, 12:48 pm

Prime Minister Narendra Modi, in his virtual address during the second edition of the InFinity Forum, emphasized India’s impressive economic growth and leadership role in the Global South. He noted that India’s growth story demonstrates the positive outcomes achieved through prioritizing policy, ensuring good governance, and placing the country and its citizens at the core of economic policies.

PM Modi highlighted India’s economic progress, citing a growth rate of 7.7 per cent in just six months of the current fiscal year. He also mentioned that Australia’s Prime Minister, earlier in March, recognized India’s strong position to provide leadership to the Global South.

The World Economic Forum’s acknowledgement of reduced red tape in India, creating a more favourable environment for investment, was underscored by PM Modi. He mentioned that the international community is looking at India with hopes and expectations, attributing this positive perception to the strengthening economy and transformative reforms implemented over the past decade.

Addressing the global challenge of climate change, PM Modi emphasized India’s awareness of its responsibilities as one of the largest economies, ensuring that concerns related to climate change are not underestimated.

Discussing the Gujarat International Finance Technology City (GIFT City) in Gujarat, PM Modi expressed confidence that the economic policies formulated in GIFT City would bring pride to the state. He highlighted India’s status as one of the fastest-growing FinTech markets globally, aligning with GIFT IFSC’s vision to emerge as a FinTech hub.

The Prime Minister congratulated Gujarat on UNESCO’s recognition of the traditional dance Garba as an intangible cultural heritage, considering it a significant achievement for the state and the country.

The Infinity Forum, organized by the International Financial Services Centers Authority (IFSCA), serves as a platform to explore and advance ideas in finance and technology. The event aims to develop these ideas into global solutions and opportunities, reflecting India’s commitment to innovation and leadership in the financial sector.

S Jaishankar Celebrates Diwali at BAPS Shri Swaminarayan Mandir in London, Highlights India’s Economic Growth

November 13, 2023, 11:32 am

External Affairs Minister (EAM) S Jaishankar, who is on a four-day official visit to the United Kingdom, observed Diwali by praying at the BAPS Shri Swaminarayan Mandir (Neasden Temple) in London. Outside the temple, he underlined India’s position as the world’s fastest-growing major economy, lauding its leadership, vision, and good governance.

Speaking to the media, EAM Jaishankar highlighted the positive image of India, attributing it to the efforts of the people in Bharat and their contributions to everyday life. He expressed gratitude on behalf of Prime Minister Narendra Modi and noted India’s successful G20 presidency under challenging circumstances.

The BAPS Shri Swaminarayan Mandir, Europe’s first authentic Hindu temple, welcomed Jaishankar and his wife, Kyoko Jaishankar, who took part in the Diwali Abhishek Puja.

During his visit, EAM Jaishankar stressed the significance of cultural connections in bilateral relations and underscored the importance of fostering shared political and economic interests. His meetings included a discussion with UK Prime Minister Rishi Sunak, where he conveyed PM Modi’s Diwali wishes, presenting a Lord Ganesha statue and a cricket bat signed by Virat Kohli.

Taking to X, EAM Jaishankar expressed his delight at calling on PM Sunak on Diwali Day, thanking him and his wife, Akshata Murty, for their warm reception and gracious hospitality.

With a developing bilateral cooperation, India and the United Kingdom launched a Comprehensive Strategic cooperation in 2021, as expressed in the India-UK Roadmap 2030. The continuing discussions for a free trade deal underscore the two nations’ stronger relations.

Jaishankar’s visit to the UK, which concludes on November 15, seeks to strengthen cordial ties and offer new momentum to India and the United Kingdom’s Comprehensive Strategic Partnership.

What Ashwini Vaishnav has to say about Union Budget 2023?

February 2, 2023, 5:24 pm

In a recent interview with newsX, Ashwini Vaishnav presented his views on Union budget 2023. Ashwini vaishnav is an Indian politician and former IAS officer, currently serving as Minister of Railways, Communications and Electronics & Information Technology.

TDG NETWORK: What do you make of the budget? Has it covered everything that the Aam Aadmi Party was hopeful for? How would you rate the budget?

ASHWINI VAISHNAV: I will focus on the three responsibilities that I hold today, railway, telecom and Information and electronics. Now first of all I would like to thank the Honourable PM for giving a visionary budget in these hard times when India has already emerged as a ray of hope and a bright spot. This budget will make India the global engine of growth. First of all, within railways, the allocation for investment in infrastructure is very good. We have given Rs two lakh 41 thousand crores. This will help us meet the deficit infrastructure, the deficit which has been there for decades and as you can see that it is now getting completed in the last 8 years. Using this allocation, there will be a lot of focus on improving passenger amenities. We are taking up 1275 stations for complete redevelopment to world standards. Then Vande Bharat Express trains which are very well received by the passengers and which was developed as per his vision. The production will now be ramped up; right now it is manufactured in Chennai, now it will also be manufactured in Haryana, UP, Maharashtra. In the spirit of green growth, Railways is developing a hydrogen train by December 2023. It will be indigenously designed, made in India, manufactured in India, and designed in India. That way the budget is very good for railways. I thank the Honourable PM and Honorable FM for that.

TDG NETWORK: 2.4 Lakh crores for the railways. The railway is the backbone of India when it comes to the common man and his aspirations. In your opinion, how is India poised, even if you consider the capital expenditure announced today, how do you think India is poised, to become the next destination for the world when it comes to investment and an alternative to China?

ASHWINI VAISHNAV: I will give an example, electronic manufacturing which has brought great results when the Prime Minister announced the make in India programme 7 years back. At that time electronic manufacturing was practically negligible. Today, it is close to 87 billion dollars. The export of smartphones itself is 9 billion dollars. It is one of those multiple factors which have propelled India to the situation where the entire world sees India as a bright spot, a very reliable and trusted partner. With diverse talent and stable policies, India is emerging as an investment destination in the world.

I will take the example of telecom also. See, on 1st October last year, PM launched 5G and the target was to complete 200 cities by March 2023. I am very happy to share with all of you that we are in February and we have already covered more than 200 cities. So this is one of the fastest cases of 5G rollout. The Union Budget 2023 has provided enough for the industries.

Union Budget 2023: Here’s what Dr. Jitendra Singh has to say

February 2, 2023, 5:13 pm

In a recent interview with newsX, Dr. Jitendra Singh presented his views on Union budget 2023. Dr. Singh is an Indian physician and politician. He is the Minister of State for the Ministry of Science and Technology and Minister of state for ministry of earth science.

TDG NETWORK: The FM spoke about the Amrit Kaal which is at play here. Do you think that this grand scheme of things is being understood by the common man?

Dr Jitendra: I believe so. All the things are unfolding in a very substantial way one after the other. For example, in the global innovation index, we have jumped 40 ranks higher, from 81 to 40. In the startup ecosystem, we are number 3. It gives a huge degree of self-esteem to the common Indian citizen. We have overtaken the economy of the UK, a country which ruled over us for 200 years has been overtaken despite so many restrictions and constraints that we face. Over the last 8-9 years Prime Minister Modi has sought to streamline and channel the resources in the most optimum way, most objectively and scientifically. Look at the concept which was mentioned today the aspirational blocks and districts. I was highly impressed when PM Modi presented this concept. It is absolutely out of the box. Earlier on, we had a backwards district with subjective parameters. Here we have 41 aspirational districts. So we are preparing ourselves over the last 8-9 years and in the next 25 years, I am sure we are going to be a front-line nation.

What Niranjan Hiranandani has to say about the Union Budget 2023?

February 2, 2023, 5:01 pm

In an exclusive interview with NewsX, Niranjan Hiranandani presented his views on the Union Budget 2023. Hirananadani is an Indian businessman, co-founder and managing director of Hiranandani group.

TDG NETWORK: This is a very forward-looking pragmatic reformist budget but not the populist one. Would you agree with that? What are your views on it?

NIRANJAN HIRANANDANI: I think this is a very balanced budget. Remember the economy has been much challenged. Ukraine-Russian war, look at the recession taking place globally and look at the situation in Pakistan, and Sri Lanka. Look at our imports of oil, we have been able to save Rs. 35000 crores by just dealing with Russia, instead of the open markets. So, internationally I think this is a very good budget that could have happened. There has been a surplus generation in income in terms of direct and indirect taxes. On infrastructure, we have increased the expenditure by 30%, so this is a very good budget. Yes, there is a lot of dissatisfaction with individuals or corporate or sectors of society that they are not happy as they could have given more. ‘Dil Mangey More’. So I think that has been an idea including real estate where we find that a lot of things were expected of the budget and did not happen so I can see that part of it in other sectors of society also. So by and large, I can say that for a country with 7.2% growth that we are looking forward to and the rest of the world and we have been able to manage with 8% depreciation in the rupee. The other countries have seen a huge loss in that term, including China. So all in all a good budget that has been taking place. Of course, I am also unhappy in certain positions not having happened. But that is part of the budget; you can’t expect everything you want.

TDG NETWORK: As you have talked about the Russia-Ukraine war, global economic crash, and Covid situations, what do you think is driving India’s story? What is making India the bright spot in the world amid all this?

NIRANJAN HIRANANDANI: We have not taken the western side not the eastern side, we have taken the Indian side. All our economic drivers, whether it is in manufacturing, agriculture, IT, housing or infrastructure, the entire thing is targeted towards the growth of the country’s GDP, and growth of employment and focus on that aspect of it which is to be done. Of course, there is a lot that needs to be done, but there is a lot that is happening. The target of Amrit Kaal is the target we are going through. N we do more than what has been done? The answer is always yes. We can always do much more and we hope in the next couple of years India will do even better than it is. To reach the five trillion dollar market which the Prime Minister has used as a target, we need at least an 8 % growth instead of a 6.2% growth, which we hope with all the changes and the investments this will happen in the economy even though the target is 6.2%. I am sure we will be able to do this with a focus on infrastructure, housing, and textiles; I think the employment situation can also be brought under control. But there is one big point and that has also been pointed out by the PM that there are a lot of jobs the system is bringing but there are no people skilled for the jobs. 10 years ago when I wanted 100 skilled workers, painters, carpenters, plumbers, fitters, electricians etc, I would get 500 of them. Today when I want 100, I can’t get even 20. For example, in the Real estate industry. So, on the one side, India has unemployment and on the other side, we don’t have skilling. So, one point that even the Finance Minister has mentioned is that we need to have a targeted, oriented skilling, re-skilling, un-skilling and up-skilling of the people of our country to take the job opportunities that will be there whether it is in the physical field like we are operating tourism which becomes another heavy labour intensive field of activity or in other fields of activity which we think we need to focus on including the service industry. So all in all the direction is correct whether we can do much more. Some things are still left out that could have been done but I guess everything cannot be done for every sector of society.

TDG NETWORK: What are your takeaways for the Real Estate sector?

NIRANJAN HIRANANDANI: Firstly, the point that has been bottling me is the fact that the cost of the apartments has gone up and the interest rates have gone up from 6.5 to 8.2. I would have thought that the standard deduction for Home loans which is still stuck at two lakh rupees for the last 10-12 years should have been increased to five lakh rupees because the EMI of all the common people who have bought the house and especially the middle class who has gone to buy houses is quite difficult and I was hoping that they will do it. Second is the loan to value, which is not going to affect the government at all. It is a question of getting a higher amount of loan for the thing we are looking at 65% and in the case of affordable housing, 90%. But affordable housing is defined as less than 45 Lakh. I think that is a challenge. I hope the RBI will intervene and make changes so that more borrowing can be done by individuals. Lastly, the capital gains for the sale of the houses. I think that could have been a better head.

Union Budget 2023: Overall economic outlay

February 1, 2023, 4:45 pm

Finance Minister Nirmala Sitharaman on Wednesday gave her speech on Union Budget, after which the Lok Sabha was adjourned till 11am tomorrow. In her nearly one and a half hour long speech, she highlighted the government’s expenditure to several sectors for the financial year 2023-2024.

“(This overall outlay) would be 3.3 per cent of GDP, almost three times the outlay made in 2019-20. With the substantial increase, it is central to government’s efforts to enhance growth potential and job creation, the crowd in private investments and provides a cushion against global headwinds,” Sitharaman said in her Budget speech.

Earlier on Monday the government proposed a capital outlay of about Rs. 2.40 lakh crore for railways. This new outlay for the railways is the highest ever and nine times of what it was in 2013. This was the last full Budget of the Modi government in its second term. Similar to the previous two Union Budget, the 2023-24 Union Budget was also presented in paperless form. This was the fifth time Sitharam is presenting the budget. This year’s budget is more important given that the country is scheduled to have next Lok Sabha election in April-May 2024. Sitharaman along with ministers of state, Pankaj Chaudhary and Bhagwat Karad and Finance Secretary T. V. Somanathan called on President Droupadi Murmu. The government also proposed to increase the agricultural credit target to Rs 20 lakh crore with more focus on animal husbandry, dairy and fisheries. Currently agriculture sector of the country has been growing at an average annual growth rate of 4.6 per cent in the last six years. In addition to this the government will also launch a sub-scheme of the existing PM Matsya yojana to improve value chain efficiencies.

Chief Economic Adviser: India’s economy is poised to do better in remainder of this decade

January 31, 2023, 4:06 pm

‘… jealous of Indian economy’: Sitharaman laments on Congress

December 12, 2022, 3:12 pm

Nirmala Sitharaman, the Union finance minister, lamented on Monday that “Some people in Parliament are jealous” of the country’s expanding economy in response to a question in the Lok Sabha over India’s currency devaluation.

“India has the fastest-growing economy but opposition has a problem with it. Everyone should be proud of India’s growth but some people take it as a joke,” the minister said.

Sitharaman was responding to a question from Congress MP Anumula Revanth Reddy, who wanted to know if the administration was aware that the Indian rupee is “weakening day by day and has hit 83 per US dollar for the first time ever” and what steps were being done to stop the decline. Reddy also made a dig at the federal government by recalling a statement made by then-Gujarat chief minister and current Prime Minister Narendra Modi in 2013 that was directed at the Manmohan Singh-led UPA administration.

Today Rupee is in ICU. I do not know why Tamil people sent this person to Delhi,” Modi had tweeted in October 2013 in a subtle dig at P Chidambaram, who was then the Union finance minister.

“The Indian rupee has been strong against every currency. Reserve Bank has used foreign exchange reserves that it has to intervene in the market to make sure that the Dollar-Rupee fluctuation does not go too much,” Sitharaman replied.

As significant selling pressure in local equities and a strong dollar in the foreign market impacted on investor sentiments, the rupee fell 35 paise to 82.63 against the US dollar in early trade on Monday, according to PTI. At the interbank foreign exchange, the local unit had a shaky start versus the dollar, trading at 82.54, before losing more ground to quote at 82.63, falling 35 paise from its previous close.

Indian economy to grow 6.9% in FY2023, says World Bank

December 6, 2022, 1:21 pm

According to a report released by the World Bank on Tuesday, India’s economy is ecpected to grow 6.9% in the current fiscal year as a result of tighter monetary policy and rising commodity prices.

Asia fourth-largest economy expanded 6.3% in the July-September quarter, and gross domestic product growth for the full fiscal year is likely to be 6.8-7%, the government said last week.

The World Bank increased its 6.5% previous growth prediction for India to 6.9% for the current fiscal year. From 7% before, the Bank reduced its forecast for the upcoming fiscal year to 6.6%.

The rise in commodity prices and the tightening of monetary policy by central banks throughout the world have affected India, like its counterparts globally.

In contrast to other emerging economies, the World Bank is convinced that India would be far less affected by the global recession.

According to the research, retail inflation will average 7.1% this year, but it also cautions that the decline in commodity prices may lessen inflationary pressures.

India’s annual retail inflation rate dropped to 6.77% in October, a three-month low, but some experts think it could still be two years before it reaches 4%, the middle of the Reserve Bank of India’s goal range.