Page 3 - Economic Reforms

Sri Lanka economic recovery hinges on sustaining ongoing reforms: IMF

The key to Sri Lanka's transition from stabilisation to full economic recovery is sustaining the ongoing reform momentum, the IMF said on Friday after it decided to release the third tranche of USD 336 million from the USD 2.9 billion four year bailout package to the island nation. While releasing the third tranche, the IMF on Thursday noted that Sri Lanka's economy has started recovering, inflation remained low, revenue collection was improving, and reserves continued to accumulate but warned that despite these positive developments, the economy is still vulnerable and the path to debt sustainability remains knife-edged. We encourage the (Sri Lankan) authorities to continue to build on these hard-won gains and remain steadfast with their reform commitments, Peter Breuer, the head of the Sri Lanka IMF mission, told reporters here on Friday. In April 2022, Sri Lanka declared its first-ever sovereign default since gaining Independence from Britain in 1948. The unprecedented financial

Reforms in customs duties, GST, commerce to push India's growth: GTRI

Implementation of key strategic reforms such as simplification of customs duty structure, GST, and not incentivising low value-added electric vehicles would help India ensure its sustainable development and inclusive growth, GTRI said on Thursday. Economic think tank Global Trade Research Initiative (GTRI) also said that India is standing on the cusp of a transformative era and there is an urgent need for comprehensive economic reforms. "From simplifying the convoluted customs duty structure to pioneering regulatory sandboxes for cryptocurrencies, and from boosting the MSME sector through GST (Goods and Services Tax) reforms to fortifying our energy security, this agenda lays the foundation for a robust, resilient, and globally competitive India," it said. It said that the current basic customs duty structure, which affects USD 680 billion worth of imports, has not been reviewed in 20 years, leading to over 27 different duty rates and over 100 specific or mixed duty slabs. Currentl

Reforms, PLI: CEOs expect new govt to maintain policy continuity

The election results coincide with a slowdown in manufacturing activity for the second consecutive month in May

Indian PE, VC investments decline 35% to $39 billion in 2023: Report

The Indian private equity and venture capital investments declined by about 35 per cent to around USD 39 billion in 2023 from USD 62 billion in 2022, according to a joint report by Bain & Company and IVCA released on Thursday. The private equity (PE) investments in India dropped by 18 per cent to USD 29.6 billion from a peak value of USD 36 billion in 2022. The drop in VC investments was much sharper, with total investments at USD 9.6 billion in 2023 versus USD 25.7 billion in 2022. "Mirroring the global trend, Indian private equity and venture capital (PE-VC) investment softened by about 35 per cent from approximately USD 62 billion in 2022 to around USD 39 billion in 2023, returning to pre-Covid-19 activity levels," the report said. The report saw 2023 as a marquee year for Indian exits with exit values soaring by 15 per cent to USD 29 billion with sale of shares in 340 entities. "In a year marked by global economic uncertainties, India's private equity landscape demonstrated ..

BJP's Sankalp Patra lacks plans for structural economic reforms, says Citi

The general election starts on April 19 and will be held in seven stages until June 1, with the results expected on June 4

Waiting for the states

The future of key economic reforms seems to depend more on the states

India's stock market value to reach $10 trillion by 2030, says Jefferies

The nation's market, currently the world's fifth largest at $4.5 trillion, briefly overtook Hong Kong last month. Still, its weight in global stock indexes is below 2%

Reforms in last 10 yrs are foundation of growth over next decade: Jefferies

Strong reform measures initiated by the Prime Minister Narendra Modi-led government in the last ten years have laid the foundation of a solid economic growth in coming decades, Jefferies Equity Research outlook said. It also said that India would become the third largest economy by 2027 and expected to achieve a market capitalization of USD 10 trillion by 2030. "With a consistent history of 10-12 pe cent CAGR (compound annual growth rate) over the last 10 and 20 years, India is now the fifth largest equity market and market cap will likely to touch USD 10 trillion by 2030," the report said. It added that continued reforms should maintain India's status of being the fastest growing large economy. Over the last 10 years, India's GDP has grown by 7 per cent CAGR in USD terms to USD 3.6 trillion, jumping from the eighth largest to the fifth largest economy. "Over the next 4 years, India's GDP will likely touch USD 5 trillion making it the third largest economy by 2027, overtaking Japa

Best of BS Opinion: External exposure, Growth sans big bang reforms & more

Here is the best of Business Standard's opinion pieces for today

Growth sans 'big bang' reforms

India's economic resilience shows incremental reforms are more effective

Economic reforms implemented 'despite the odds', says FM Sitharaman

Rating agencies must take note of the country's transparent fiscal consolidation path, FM says

Evaluating the Indian economy's resilience

A growth trajectory of 6.5 to 7.5 %, centred around 7 %, is reasonable in the coming years, barring the eventuality of simultaneous external shocks

Palliatives, not solutions: When politicians hide failures under largesse

Voters have learnt to look for what they can get today, not tomorrow, and seem to choose parties offering the most generous packages - which encourages a rush to raid the treasury - notes T N Ninan

FATF removes offshore tax haven Cayman Islands from its 'grey list'

In its review published on October 27, FATF has added Bulgaria to the grey list

India will be the world's third largest economy by 2030, says VP Dhankhar

Vice President Jagdeep Dhankhar on Friday said India will go past Japan and Germany to become the third largest economy in the world by 2030. Addressing the closing ceremony of the 'Country-led Initiative' organised under the United Forum on Forests (UNFF) here, the vice president said India was among the "Fragile Five" two decades back, but it has now become the fifth-largest economy in the world. In 2022, India went past Britain and France to become the fifth-largest economy in the world, he said, adding that there are full indications that by the end of the decade, it will take the third spot. Dhankhar said international organisations such as the International Monetary Fund have called India a"shining destination" in terms of investment and opportunities. He said that India's digital transactions are four times that of the US, UK, France and Germany. The vice president added that per capita internet data usage in India is also more than the total data consumption of the US and .

India, Sri Lanka embarking on new chapter in diplomatic, economic ties: PM

India and Sri Lanka are embarking on a new chapter in diplomatic and economic relations, Prime Minister Narendra Modi said on Saturday as he hailed the launch of a ferry service between the two nations as an "important milestone" in strengthening ties. Addressing the event to launch ferry services between Nagapattinam in India and Kankesanthurai in Sri Lanka, via a video message, Modi said the ferry service brings alive all historical and cultural connections. "Connectivity is not only about bringing two cities closer. It also brings our countries closer, our people closer and our hearts closer," he said. The prime minister said India and Sri Lanka are embarking on a "new chapter in diplomatic and economic relations" and the launch of a ferry service between Nagapattinam and Kankesanthurai is an "important milestone" in strengthening the relations. Underlining the shared history of culture, commerce and civilisation between India and Sri Lanka, the prime minister pointed out that .

Eco survey 2023: Bright prospects under dark clouds with silver linings

The Economic Survey outlines the underlying framework of reforms in India centred on ease of doing business and ease of living

Budget may not be right time to restructure capital gains tax: Revenue secy

There's no need for having so many buckets under the capital gains tax structure or so many different permutations and combinations, says Tarun Bajaj

UK Treasury chief delays detailing new economic plans until Nov 17

UK Treasury Chief Jeremy Hunt has delayed a statement on the country's economic affairs until November 17, only a day after the new prime minister took office. Hunt told the BBC says that a two and half week delay will ensure the right decisions are taken. The statement was originally set to be announced on October 31. The Treasury says in a tweet that new Prime Minister Rishi Sunak and Hunt have agreed that the statement will include a forecast from the independent Office of Budget Responsibility. It will contain the UK's medium term fiscal plan to put public spending on a sustainable footing, get debt falling & restore stability," the Treasury said on Twitter.

World Bank advises Pakistan to take internal steps for economic recovery

World Bank Vice President for South Asia, Martin Raiser advised Pakistan to take internal measures along with help from the international community to recover from the cataclysmic floods