Page 16 - Economic Growth

Unlocking India's decadal growth

Sustained high growth will need hard reforms

Sri Lanka holds rates to control inflation, foster economic stability

Incoming data suggests that headline inflation is likely to be below the targeted level of 5 per cent in the upcoming months

A decade after

States need engines of growth

Family and factory economics

Transitioning away from industrial norms, the 21st-century economy must prioritise work within families

Bumper RBI dividend of Rs 2.11 trillion to give govt more fiscal room

Economists said that the government may not need much borrowing because of the highest-ever transfer of surplus to the government

Business activity expands in May as exports surge, PMI rises to 61.7

Robust demand was supported by new business in the services industry, which grew at the fastest pace since January, as well as rising manufacturing output and new orders

Tweaking the inflation targeting mandate

A key focus for the new govt should be to ensure wider consultation in setting inflation target

UN reports brighter global economic outlook, predicts 2.7% growth in 2024

The United Nations reported improved prospects for the world economy since its January forecast on Thursday, pointing to a better outlook in the United States and several large emerging economies including Brazil, India and Russia. According to its mid-2024 report, the world economy is now projected to grow by 2.7 per cent this year up from the 2.4 per cent forecast in its January report and by 2.8 per cent in 2025. A 2.7 per cent growth rate would equal growth in 2023, but still be lower than the 3 per cent growth rate before the COVID-19 pandemic began in 2020. "Our prognosis is one of guarded optimism, but with important caveats, Shantanu Mukherjee, director of the UN's Economic Analysis and Policy Division, told a news conference launching the report. The report pointed to interest rates that are higher for longer periods, debt repayment challenges, continuing geopolitical tensions and climate risks especially for the world's poorest countries and small island ...

Measuring up to the standard

In today's world, standards wield not only technical but also strategic significance. India needs a change in mindset to elevate its industry standards to a global level

Israel Q1 economic growth rebounds 14.1%, lifted by shopping, building

The recovery in the January to March period was led by large increases in private spending and investment, both of which slid in the fourth quarter

India's GDP to expand at 6.6% in FY25; will fuel NBFCs' growth: Moody's

Moody's Ratings on Tuesday said the Indian economy is projected to expand 6.6 per cent in the current fiscal year and said strong credit demand fuelled by robust economic growth will support the NBFC sector's profitability. "We expect India's economy to expand 6.6 per cent in the year ended March 2025 (FY25) and 6.2 per cent the following year, and this will lead to robust loan growth at NBFCs, mitigating the impact of rising funding costs on their profitability," Moody's Ratings said. The Indian economy is estimated to have expanded 8 per cent in the 2023-24 fiscal year. In a commentary on the non-banking finance companies, Moody's said robust economic conditions will help them preserve their asset quality even as rise in interest rates increase the debt burdens of their customers. "Funding costs for non-bank finance companies (NBFCs) in India are rising, but strong credit demand fuelled by country's robust economic growth will support the sector's profitability. "Also, robust ..

China new bank loans fall more than expected in April to 730 bn yuan

Chinese banks extended 730 billion yuan ($101 billion) in new yuan loans in April, down sharply from 3.09 trillion yuan in March and falling short of analysts' expectations, according to bank's data

IEG applies afresh after licence cancelled under FCRA over procedural lapse

Institute could not submit documents to govt due to 'minor technical issues', say sources

India's core sector growth slows to 5.2% in March from 7.1% in February

In March 2023, the core sector had recorded a growth of 4.2 per cent

Export figures for FY04, FY14, and FY24 show interesting trends

A look at the destination of our exports shows that our shipments to our neighbours in South Asia at 5.8 per cent have stagnated in the past 10 years

Deloitte projects India's FY25 GDP growth at 6.6% as exports rebound

Deloitte India on Friday said it estimates India's GDP growth at 6.6 per cent in the current fiscal helped by consumption expenditure, exports rebound and capital flows. In its India's economic outlook report, Deloitte said the rapid growth of the middle-income class has led to rising purchasing power and even created demand for premium luxury products and services. With the expectation that the number of middle-to-high-income segments will be one in two households by 2030/31, up from one in four currently, we believe this trend will likely become further amplified, driving overall private consumer expenditure growth, it said. Deloitte has revised India's economic growth prediction for last fiscal to a range of 7.6 to 7.8 per cent. In January, the firm had projected growth for 2023-24 fiscal in the range of 6.9-7.2 per cent. The country's GDP growth is estimated to reach around 6.6 per cent in FY 2024-25 and 6.75 per cent in the year after, as markets learn to factor in geopolitic

An agenda for next government

India's growth model needs a serious course correction

Only INDIA bloc can deliver more inclusive economic growth, says Congress

Stepping up its attack on Prime Minister Narendra Modi over his 'redistribution of wealth' remark, the Congress on Tuesday said he will never tell people that more than 40 per cent of the wealth created in the country from 2012 to 2021 has gone to just one per cent of the population, and asserted that only an INDIA bloc government can deliver a vastly more inclusive economic growth. At a rally in Rajasthan on Sunday, Modi had said that if the Congress came to power, it would redistribute the wealth of people to "infiltrators" and those who have more children, and cited former PM Manmohan Singh's remark that the minority community had the first claim on the country's resources. The Congress has hit back at Prime Minister Modi over his remarks targeting the party, saying after facing "disappointment" in the first phase of Lok Sabha polls, the PM has now resorted to "lies" and "hate speech" to divert people from the real issues. Congress general secretary Jairam Ramesh on Tuesday said

Sustained growth of 7% feasible for India: RBI MPC member Shashanka Bhide

Sustaining the economic growth momentum of 7 per cent in 2024-25 and beyond is feasible on the back of favorable monsoon, higher farm productivity and improved global trade, RBI Monetary Policy Committee (MPC) member Shashanka Bhide said on Monday. During 2023-24, the economy is likely to record a growth rate of near 8 per cent on account of good performance of manufacturing and infrastructure sectors. "(India's economic) Growth in the current year is likely to be supported by agriculture with a favourable monsoon and improved global trade. Sustaining the growth momentum of 7 per cent seems feasible," he told PTI. Bhide further said that in the long-term, the need for productivity improvements will remain the key factor to achieve food price stability. Asked what are some of the headwinds he is wary of, Bhide said one area of concern is the global environment. "The slow pace of recovery in global demand on one hand and supply chain disruptions on the other hand... if the ongoing .

Lower-middle-income trap

Without structural transformation in India's workforce, growth will necessarily sputter in the future