Page 16 - Gdp

CPI inflation to average 4.5% in FY25, growth to top 7%: RBI Governor

Observing that headline inflation substantially eased from the elevated level seen in the summer of 2022, Das said price momentum was easing across core goods and services

Can allied sectors save agriculture from the blushes in FY24?

The uneven southwest monsoon ensured that production of almost all kharif crops was down in 2023-24

Building forward better

The biggest impediment in India securing transformative prosperity for its citizens by 2047 is the suboptimal utilisation of its resources

Health sector's Budget wishlist: Increase spending to 2.5% of GDP

Key demands include rationalising GST rates, investment in skilling professionals, building local capabilities

India to be $5 trn economy by FY28, to reach $30 trn by 2047: FM Sitharaman

India will become the third largest economy by 2027-28, with a GDP of over USD 5 trillion, Finance Minister Nirmala Sitharaman said on Wednesday. Even going by conservative estimates, the size of the Indian economy will be USD 30 trillion by 2047, she noted. "It is possible that we will be the third largest economy by 2027-28, and our GDP will cross USD 5 trillion by that time. By 2047, it is a conservative estimate that we will reach at least USD 30 trillion in terms of economy," Sitharaman said at the Vibrant Gujarat summit. India, with a GDP of roughly USD 3.4 trillion, is currently the fifth largest economy in the world, after the US, China, Japan and Germany. Indian economy is projected to grow by 7.3 per cent in the current fiscal, higher than 7.2 per cent in 2022-23. Sitharaman said India has received USD 919 billion in foreign direct investment in 23 years till 2023. Of this, 65 per cent, or USD 595 billion, came in the last 8-9 years of the Narendra Modi government. Refe

Economy to grow 6.2% on favorable factors, positive credit momentum: Report

The Indian economy is likely to grow at 6.2 per cent in the next fiscal, mainly due to the favourable combination of neutral policy settings, positive credit momentum, and manageable macros amid a 15-year high household debt levels, a foreign brokerage report said on Tuesday. Despite the rising external headwinds, India is likely to grow 6.2 per cent next fiscal against a consensus of 6.3 per cent to USD 3.9 trillion from USD 3.57 trillion in FY24 on a likely 7 per cent growth, as consumption growth is likely to stabilise at 4.7 per cent from 4.5 per cent in FY24, Tanvee Gupta-Jain, the UBS India chief economist, said in a note. A pick-up in capex is expected to become more broad-based in FY25, led by marginally moderate public capex but higher private corporate capex after elections, Jain said. Another growth driver will be the residential housing sector along with exports, which may marginally improve, depending on global growth. "We expect India to maintain medium-term growth of

Gujarat has set target to become $500 billion economy by 2026-27: CM Patel

With five per cent of the population, Gujarat contributes over 8.3 per cent to the national GDP

State index of education, health, economic condition to be prepared: UP CM

The Chief Minister further said, "For our planning to be in line with the target, it is crucial to gather accurate data

India's GDP growth pegged at 7.3% for FY24: Govt's first advance estimates

According to a statement, the growth in real GDP during 2023-24 is estimated at 7.3 per cent compared to 7.2 per cent in 2022-23

Centre expected to maintain fiscal discipline in Interim Budget 2024

Interim budget likely to prioritise fiscal consolidation over populist spending, anticipating fiscal deficit at 4.5% of GDP by FY26

Growth in Asia Pacific emerging markets to remain strong in 2024: Fitch

The economic growth in Asia Pacific will remain strong in 2024 and GDP is expected to grow by about 5 per cent in India and a host of emerging market countries, Fitch Ratings said on Wednesday. In its report titled 'APAC Cross-Sector Outlook 2024', Fitch said the outlooks for the banking sectors in India and Indonesia, as well as APAC emerging markets as a whole, move to improving in 2024, partly reflecting the robust economic backdrop. "Economic growth in APAC will generally remain strong in 2024, especially in emerging markets (EMs), supporting sector outlooks across the region. We expect real GDP to expand by, or above, 5 per cent in India, Indonesia, the Philippines and Vietnam, and China's performance will still be strong by most other countries' standards," Fitch said. The Indian economy grew 7.2 per cent in 2022-23 fiscal year. India's GDP expanded 7.8 per cent and 7.6 per cent in the June and September quarters, respectively. Fitch had last month said it expects India to be

Goldman Sachs sees current account deficit falling to 1% of GDP this fiscal

Stating that the country's external balances are stronger than expected on the back of strong inflows, a Wall Street brokerage on Tuesday projected a much lower current account deficit which is likely to print at 1 per cent for this fiscal, leaving the balance of payment surplus at USD 39 billion. Goldman Sachs in a report said the country's external balances remain favourable with a combination of low CAD, strong capital flows, adequate forex reserves and low external debt. Combined with this, expectations for a weaker dollar due to the likely five US Fed rate cuts this year suggest a "goldilocks" environment for the country's external balances. Accordingly, the Wall Street major has revised upwards its current account deficit (CAD) forecast to 1 per cent of GDP for FY24 from 1.3 per cent earlier, and 1.3 per cent for FY25 from 1.9 per cent earlier, citing a downward revision to their oil price forecast to USD81/barrel in 2024 from above USD90 earlier; and services exports continui

Govt project announcements, capex at new low, completion rates slow

It was at Rs 26,987 crore in the three months ended December, according to data from project tracker Centre for Monitoring Indian Economy (CMIE)

Fiscal deficit contained at 50.7% of FY24 budget estimate in Apr-Nov

The Government, CGA data indicates, is moving towards fiscal consolidation, with improved tax collections compared to the April-October period and compressed capital expenditure

Current account gap narrows to 1% of GDP at $8.3 bn in Q2FY24: RBI

Services exports grew by 4.2 per cent on a y-o-y basis on the back of rising exports of software, business and travel services, the Reserve Bank said

'Discontents' notwithstanding, India has done well in last quarter century

While India should be concerned about disparities, the fact is that whereas three decades ago about half the people had incomes greater than $2.15 a day, today seven out of eight do, writes T N Ninan

Rupee ends lower due to high dollar demand from oil firms, US data awaited

The Indian rupee declined on Thursday as dollar demand from local oil companies weighed on the local unit, while traders awaited GDP and labour market data from the United States

House panel recommends benchmark percentage of GDP for defence allocation

The government should fix a "definite benchmark" percentage of the GDP for defence budget as military expenditure by neighbouring countries and the evolving global security scenario warrant such an outlay for the country to prepare for dealing with future security challenges, a parliamentary panel said on Wednesday. It expressed "surprise" over the defence ministry not taking any action towards arriving at such a benchmark yet following its earlier recommendation. In its report, the parliamentary standing committee on defence, specifically recommended putting adequate focus on developing futuristic drones and electronic warfare systems to confront future challenges. "While appreciating the concern and the efforts made by the ministry towards preparedness of the defence forces in the country, the committee feel that the recent wars in the international arena should act as a grim reminder that the nomenclature of war has really changed and defence preparedness in terms of an electroni

US Federal Reserve pivot helps markets log seventh weekly advance

A dovish pivot by the US Federal Reserve and a sharp retreat in bond yields spurred risk appetite across the globe

Govt likely to come out with logistics cost estimate framework on Thursday

The government is expected to release a framework to assess the logistics cost in the country to get a realistic estimate tomorrow, an official has said. At present, the government is going by certain estimates, suggesting India's logistics cost stands at about 13-14 per cent of the country's GDP (gross domestic product). Sumita Dawra, Special Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT), had earlier stated that the government is coming out with its logistics cost framework. The framework would include elements of this cost and how to measure that. Acknowledging the necessity for targeted policy interventions, a report containing baseline aggregated logistics cost estimates; and a framework for long-term logistics cost calculation is now ready and has been reviewed by external experts from the World Bank, the official said. "This comprehensive report is scheduled for the launch on December 14," the official added. The objective of this endeavou