Page 13 - Gdp

GDP growth rate likely to be 6.7% in Q4, around 7% in FY24: Ind-RA

India Ratings and Research expects the country's GDP growth rate for the March quarter at 6.7 per cent and around 6.9-7 per cent for the 2023-24 fiscal, its principal economist Sunil Kumar Sinha said. The GDP numbers for the fourth quarter (January-March 2024) and the provisional estimates for the 2023-24 fiscal are scheduled to be released by the government on May 31. The Indian economy grew 8.2 per cent in the June quarter, 8.1 per cent in the September quarter and 8.4 per cent in the December quarter of 2023-24. "We are expecting the fourth quarter growth to be 6.7 per cent and the overall GDP growth for FY24 to be around 6.9-7 per cent," Sinha told PTI Videos in an interview. He said the growth rate in the first two quarters benefited from a low base, though the 8.4 per cent growth rate in the third (October-December 2023) quarter was surprising. "When we analyse the data, then what is visible is the wedge between the GVA and GDP. A large impetus to Q3 GDP has come from higher

Japan's economy contracts, complicating Bank of Japan's rate hike plans

Private consumption, which accounts for more than half of the Japanese economy, fell 0.7 per cent

CEO's growth correlation remark not meant to doubt GDP data: Asian Paints

Asian Paints Ltd on Wednesday said its Managing Director & CEO Amit Syngle's comments on correlation between growth in the paint industry and the GDP were not meant to question the sanctity of the GDP numbers. In a clarification shared on the stock exchanges, Asian Paints said Syngle's comments are being "misinterpreted". His comments were in response to a specific query on the correlation between the growth in the paint industry and the GDP, the company said. "In that context, it was mentioned that the correlation of the paint industry growth with the GDP growth is varying, and we are unable to correlate both, unlike in the past," it added. Historically, the paint industry was seen growing in multiples of 1.5 to 1.75 times the GDP growth; of late, this correlation was distorted. "It was, hence, called out that there is a need for examining the GDP data to understand the reasons for this variance," the company said, referring to the recent social media posts and media articles ...

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 ..

Corp tax collections as proportion to GDP yet to reach pre-tax cut levels

After surcharges and cesses, this tax comes to 17.01 per cent against 29.12 per cent if the companies don't opt for this tax

India Ratings raises sovereign GDP growth estimate for FY25 to 7.1%

India Ratings and Research on Monday revised upward the country's GDP growth estimate for FY25 to 7.1 per cent from 6.5 per cent earlier. The projection is marginally higher than the Reserve Bank's estimate of 7 per cent. In a statement, the domestic rating agency said strong support from the sustained government capex, deleveraged balance sheets of corporate and banking sector, and the incipient private corporate capex cycle make it revise its estimate. It said that factors that may constrain growth include consumption demand not being broad based and the headwinds faced by exports due to sluggish growth globally. The agency said it expects the growth in private final consumption expenditure to jump to 7 per cent in FY25, up from 3 per cent in FY24, and added that this will be a three-year high. "Current consumption demand is highly skewed, as it is driven by the goods and services largely consumed by the households belonging to the upper income bracket," it said, adding that rur

India's manufacturing PMI dips marginally to 58.8 in April, shows data

Business optimism improved as firms expected demand to remain buoyant and higher production volumes in the coming 12 months

India global services export to reach $800 billion by 2030: Goldman Sachs

Report says services exports could reach around 11% of GDP by 2030, helping increase demand for top-tier discretionary spending

Pak finance ministry sees inflation at 18.5%-19.5% in April, easing in May

Gross domestic product growth for the second quarter of the fiscal year ending in June is estimated at 1% and expected to improve in the second half of the fiscal year, it said in its monthly report

Need more competition

Small finance banks have a clear path

Economic think-tank NIPFP projects India's FY25 GDP growth at 7.1%

Economic think-tank National Institute of Public Finance and Policy (NIPFP) on Friday said it has estimated India's GDP growth at 7.1 per cent for the current fiscal, using high-frequency models. NIPFP, in a series of tweets, said the Centre is on a fiscal consolidation path through buoyancy in taxes and revenue expenditure compression. The economic think tank said that in 2023-24, states' capex growth is robust due to significant capex transfers from the Centre. While the Asian Development Bank (ADB) and Fitch Ratings have estimated India's growth at 7 per cent, the International Monetary Fund (IMF), S&P Global Ratings and Morgan Stanley projected a 6.8 per cent growth rate for FY25.

Global warming of 3 degrees Celsius may result in 10% GDP loss: ETH study

Warming of the planet by 3 degrees Celsius may cost the world up to 10 per cent of its GDP, a new research has found. It also found that poorer, tropical countries could see the worst effects -- up to 17 per cent GDP loss. The study -- led by ETH Zurich, Switzerland, and published in the Nature Climate Change journal -- suggested that roughly half of the predicted global economic damage could be related to extreme heat, with heat waves being the most impactful among the extreme events analysed. "Impacts are more severe in the Global South and highest in Africa and the Middle East, where higher initial temperatures make countries particularly vulnerable to additional warming," the authors wrote. The researchers further found that the cost of climate change increased around the world after accounting for changes in rainfall and temperatures occurring within a short span at a location. "If we take into account that warmer years also come with changes in rainfall and temperature ...

IMF raises India's GDP growth forecast by 30 bps to 6.8% for FY25

Also sees world economy growing faster at 3.2% in 2024

China's Q1 GDP grows 5.3% amid continued crisis in property sector

China's economy grew at 5.3 per cent in the first quarter, making a stronger-than-expected start to the year even as the downturn of its property market continued while the domestic demand remained subdued. The GDP grew 5.3 per cent year on year to 29.63 trillion yuan (about USD 4.17 trillion) in the first three months of 2024, data from the National Bureau of Statistics (NBS) showed on Tuesday. The pace accelerated from 5.2 per cent overall GDP growth for 2023, appearing on course to meet the target set by the government at around five per cent. On a quarterly basis, the economy expanded by 1.6 per cent in the first three months of this year, according to the NBS. "China's high-quality development has made new achievements in the first quarter. The national economy has sustained recovery momentum and got off to a good start," Sheng Laiyun, Deputy Head of the NBS, said at a press conference. Sheng mentioned positive factors during this period, such as rising production demand, sta

What does the NSS data imply for GDP estimates?

What can we learn from the latest survey? Before we answer this question, we need to recognise the limitations of comparing NSS figures with the ones from the NIA

States fiscal deficits for FY24 likely to be close to 3.1% of GDP: Citi

The report suggests grants from Centre to states have been falling due to no GST compensation funds and lower finance commission grants

Debt settlement offers immediate relief but damages your credit score

A debt settlement involves negotiating a single payment with the creditor that is lower than the amount owed

Ratio of GST collections to GDP is increasing, albeit at a slow pace

GST receipts rose more than GDP growth in nominal terms in the past three years. But buoyancy came down from 1.6 to 1.3 during the period

Household debt registered new high by Q3FY24, savings plummeted: Report

A report by Motilal Oswal said that households' net savings plummeted to a six-year low level of 18.4 per cent of GDP

'Public investment of 2% of GDP can create 11 mn jobs, majority for women'

Direct public investment of 2 per cent of India's GDP can potentially generate 11 million jobs, nearly 70 per cent of which will go to women, according to a report released by Ficci Ladies Organisation (FLO) on Wednesday. The FLO also unveiled a roadmap for transforming India's care economy, including five key areas, leave policies, care service subsidies, investment in care infrastructure, skill training for care workers, and quality assurance mechanisms. "In India, the Ministry of Labour and Employment can consider supporting MSMEs and startups financially for maternity leave, revising parental leave policies, and promoting care work leave and flexible work options. This could include introducing market-based financing for leave, such as parental leave insurance. Employers are encouraged to adopt gender-neutral care work leave and flexible work options," Ficci Ladies Organisation (FLO) stated. It said collaboration between government agencies and industry bodies can promote these