Page 22 - Latest Updates on New GDP series

GDP preview: Why is India likely to retain fastest-growing economy tag

Growth in services and manufacturing and private investment rebound likely to have helped economy in Q4

India's fiscal deficit target of 5.9% for FY24 at risk, warns Nomura

A notable increase in RBI's income, which was driven by profits from foreign exchange sales amounting to Rs 1 trillion, reflects active intervention in the foreign exchange market

Advance estimates fail to gauge economy correctly in periods of uncertainty

Advance estimates have varied from actual numbers during 2008 crisis, Eurozone crisis, 'policy paralysis' and Covid lockdown years

Top Headlines: IPEF deal on supply chains in Detroit, GDP preview and more

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Services sector to drive GDP growth to 4.9% in Q4 FY23, says Icra

Domestic rating agency Icra expects GDP growth in January-March period of 2022-23 at 4.9 per cent, a modest step-up from the 4.4 per cent recorded in preceding quarters, driven by the services sector. The National Statistical Organisation (NSO) is scheduled to release the provisional estimate for the GDP growth for the fourth quarter as well for the fiscal 2022-23 on May 31. Icra estimates the services gross value added (GVA) year-on-year growth to have risen mildly to about 6.4 per cent in Q4 FY23 from 6.2 per cent in Q3 FY23. The YoY performance of nine of the 14 high frequency indicators of the services sector improved in Q4 FY23 relative to Q3 FY23, partly reflecting the robust demand for the contact-intensive segment, as well as the low base of Covid 3.0 for some sectors such as aviation, it said in a release. Aditi Nayar, Chief Economist, Head-Research and Outreach, Icra, said that economic activity in fourth quarter of FY23 remained uneven, with domestic demand for services

Germany's GDP shrinks by 0.3% in first quarter, puts economy into recession

New figures show the German economy suffered an unexpected dip in the first quarter of this year, putting the country formally into recession. Data released Thursday by the Federal Statistical Office shows Germany's gross domestic product, or GDP, down by 0.3 per cent in the period from January to March. This follows a drop of 0.5 per cent in Europe's biggest economy during the last quarter of 2022. Two consecutive quarters of decline constitute a technical recession. The figures are a blow to the German government, which last month boldly doubled its growth forecast for this year after a feared winter energy crunch failed to materialise. It said GDP will grow by 0.4 per cent up from a 0.2 per cent expansion predicted in late January a forecast that may now need to be revised downward. Economists said high inflation hit consumer spending, with prices in April 7.2 per cent higher than a year ago. GDP reflects the total value of goods and services produced in a country. Some exper

Need to go beyond GDP

The need to complement purely GDP-based progress with alternative measures of economic and societal progress is now being suggested as a new reference point for measuring quality growth

Goldman Sachs sees remittances keeping CAD lower in 2023: Report

Despite an improved external situation, Goldman expects rupee to underperform Asian peers

India remains a bright spot, economy expected to grow 6.7% in 2024: UN

However, higher interest rates and weaker external demand will continue to weigh on investment and exports in 2023, it said

India to contribute 16% to global GDP growth over 2023-24: Morgan Stanley

With Indian economy being a key contributor for Asian economic growth outperformance, the broad-based recovery in demand runs counter to the weakness seen outside Asia, said Morgan Stanley in a report

India's vulnerability to global shocks to reduce in FY24: CRISIL

Domestic banking insulated from global financial turmoil and better positioned to tackle rising interest rates

Roads, traffic and GDP

Addressing the problem of slow and chaotic traffic movement could enhance productivity and welfare in India

India's additional green financing need at 2.5% of GDP: RBI report

PSBs more vulnerable to shocks than private banks

India's green financing requirement estimated at 2.5% of GDP: RBI Study

India's green financing requirement is estimated to be at least 2.5 per cent of GDP annually till 2030, a Reserve Bank report said on Wednesday. The country aims to achieve net zero emissions target by 2070. The Reserve Bank of India's report on Currency and Finance (RCF) for the year 2022-23 covers four major dimensions of climate change to assess future challenges to sustainable high growth in India. The areas are the unprecedented scale and pace of climate change; its macroeconomic effects; implications for financial stability; and policy options to mitigate climate risks. The country's goal of achieving the net zero target by 2070 would require an accelerated reduction in the energy intensity of GDP by around 5 per cent annually and a significant improvement in its energy-mix in favour of renewables to around 80 per cent by 2070-71, it said. "India's green financing requirement is estimated to be at least 2.5 per cent of GDP annually till 2030," the report said. According to

Cautious optimism

Incoming data must be read carefully

India's welfare balm

While many analysts have estimated India's potential annual GDP growth at 7-8 per cent, the most recent figures indicate a subdued rate of 4.4 per cent

Indian economy demonstrates strength, GDP to grow at 6% in FY23: Acuite

Most lead indicators at the start of 2023 continue to display resilience, with incremental data Feb-23/Mar-23 faring better than Jan-23

Get real with targets

The credibility of foreign trade policies will improve if they are not obsessed with setting export targets

Personal income tax to GDP ratio surges, indicating rise in taxpayer base

Personal income tax as a percentage of GDP has gone up from 2.11 per cent in 2014-15 to 2.94 per cent in 2021-22 fiscal, indicating that taxpayer base is widening as a result of the steps taken by the present government led by Prime Minister Narendra Modi. At a review meeting with the Central Board of Direct Taxes (CBDT), finance minister Nirmala Sitharaman was apprised about the impact of various steps taken by the apex direct tax body to widen taxpayer base, the finance ministry said. The ministry said the personal Income Tax (PIT), which is paid by individuals, to GDP ratio has been steadily increasing from 2.11 in FY 2014-15 to 2.94 in FY 2021-22. The personal income tax collection (including Securities Transaction Tax) increased to over Rs 6.96 lakh crore, from over Rs 2.65 lakh crore in 2014-15. Introduction of new data sources in Statement of Financial Transactions (SFT) like dividend and interest; securities; mutual funds and information from GSTN in recent years has led to

India's GDP to grow at 6.2% in FY24, RBI to cut rate in Q1: Morgan Stanley

The report also said the inflation in India is likely to be below 5 per cent in the second quarter of calendar year 2024