Page 16 - India Economy

ICRA revises FY24 GDP growth forecast to 6.5%, still below RBI's estimate

Domestic rating agency Icra on Monday revised its FY24 GDP growth forecast to 6.5 per cent from 6.2 per cent earlier. However, the revised forecast is still much lower than the Reserve Bank of India's (RBI's) 7 per cent real Gross Domestic Product (GDP) growth estimate for the ongoing fiscal. Earlier this month, the RBI had revised upwards its GDP estimate to 7 per cent from 6.5 per cent, calling the revised number a "conservative" one. The rating agency did not specify reasons for the lower growth estimate made in its business activity monitor. The revision is being done because Icra feels the deflation in commodity prices will be sustained and there are expectation of better growth in the October-December period than previous estimates, it said. "The festive-led uptick in volume growth in high frequency non-agri indicators as evinced by ICRA Business Activity Monitor in October-November 2023 (11.3 per cent versus the 9.5 per cent in Q2FY24) leads us to believe that the GDP growt

Debates on India's progress more important than vishwa guru claims: Rajan

Former RBI governor Raghuram Rajan, who has often been trolled for his frank views, says ideas and opinions of critics should be attacked but not their motives, as for India's progress listening was more important than preaching like a know-all vishwa guru. In an interview with PTI, Rajan defended joining Congress leader Rahul Gandhi's 'Bharat Jodo Yatra' saying he very strongly believed in the ideas of national integration and of love, not hate and thought the 135-day foot march was an attempt to make that point. Rejecting as "just ridiculous" the charge by government backers that he was responsible for some of the mess in the economy that Prime Minister Narendra Modi inherited, he said he had brought down inflation from double digits and had cleaned up the bad debt which the government is taking credit for now. He also stuck to his comment -- 'India will be lucky if it achieves 5 per cent growth in 2023-24 fiscal year', saying the country was indeed lucky to achieve a 6.5 per cent

Gen AI can add up to $1.5 trillion to India's GDP over next 7 years: Report

Generative artificial intelligence (Gen AI) has the potential to add a cumulative USD 1.2-1.5 trillion to India's Gross Domestic Product over the next seven years, according to a report by EY India. The report, titled 'The AIdea of India: Generative AI's potential to accelerate India's digital transformation', provided insights into the industry's preparedness and challenges in embracing Gen AI. Generative AI can potentially add a cumulative USD 1.2-1.5 trillion to India's GDP by FY2029-30, as per the report. "The report forecasts that by fully capitalising Gen AI technology and its applications across sectors, India can potentially add USD 359-438 billion in FY2029-30 alone, reflecting a 5.9 per cent to 7.2 per cent increase over and above baseline GDP," it said. Nearly 69 per cent of the overall impact is expected to be derived from sectors such as business services (including IT, legal, consulting, outsourcing, rental of machinery and equipment, and others), financial services,

Sri Lanka's economy records positive growth for first time since crisis

Sri Lanka's bankrupt economy has recorded a positive growth for the first time since the economic crisis hit the island nation, according to official data. The year-on-year GDP growth rate for the third quarter has been reported as 1.6 per cent of positive growth rate, the Department of Census and Statistics (DCS) said in a press release on Friday. Sri Lanka had recorded a minus 8 per cent growth when it declared bankruptcy in April 2022. The country's economy continued to be in the negative from the fourth quarter of 2021. The International Monetary Fund (IMF), which released the second tranche of its USD 2.9 billion bailout earlier this week, has said that Sri Lanka's overall growth for 2023 would remain negative. However, the country's economy in 2024 is expected to grow with a positive one plus growth, it said. Sri Lanka is currently going through a strict IMF based reform regime. President Ranil Wickremesinghe, who is also the finance minister, insists on reforms despite stro

India's growth story is going to be distinctive and unique: Rohit Jawa

At the 188th Foundation Day Celebration by the Bombay Chamber of Commerce & Industry, Jawa said in his keynote address that India's digital landscape is a key accelerator for growth

No slacking: Indians work long, are willing to put in more hours

Never mind work-life balance: this generation spends more time on the job than ever before

Indian oil product demand growth to slow ahead: International Energy Agency

Indian oil product deliveries edged higher in November but were underwhelming compared to the usual seasonal rise, the agency noted. Deliveries in November increased by 40,000 barrels per day

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Focus on design, IP creation key to India's rise as product nation: IT secy

Focus on design and creation of IP is crucial to India's ambitions as a product nation, IT Secretary S Krishnan on Thursday said, exhorting electronics products designers in the country to prioritise aspects such as inclusivity, aesthetics, and user experience in designing products for wider audiences. Design elements add substantial value to products, particularly in the electronics and digital space, Krishnan said while addressing the '23rd India Design Summit and Awards' organised by CII and World Design Organisation. Citing an example of just how important design elements are in the digital era, he said in case of a USD 1,000 iPhone, about USD 250 is paid to vendors while a substantial amount is retained by the designers in Cupertino. Referring to the Apple manufacturing ecosystem in India, he said, "Today, we are aiming that about 20-25 per cent at least of Apple iPhones are made in India at some point or the other, and if you look at the value addition which takes place in ...

Services exports hit $192 bn so far this FY24, likely to reach $400 bn

The country's services exports have touched USD 192 billion so far this fiscal and are expected to reach USD 400 billion by the end of 2023-24, SEPC said on Wednesday. Services Export Promotion Council (SEPC) said that key sectors which are recording healthy growth rates include telecom, computer, information, and transport and travel. The council is also engaged in formulating strategies to propel the sector's growth, it said. "As of the latest report, the services sector has demonstrated progress, with over USD 191.97 billion already accomplished out of the targeted USD 400 billion," the council added. It added that sectors like tourism, hospitality, and medical value tourism which suffered due to COVID-19 are now showing revival signs. In addition to this, sectors like legal, auditing, higher education, accounting, and logistics are showing good growth. "At SEPC, our mission is clear, to guide the services sector in India's pursuit of achieving USD 400 billion by 2024 and USD 1

Indian goods worth $3.7 billion entering Oman to get boost by FTA: GTRI

Over 83.5 per cent of Indian goods worth USD 3.7 billion such as gasoline, iron and steel, electronics, and machinery will get a significant boost in Oman, once both sides reach a comprehensive free trade agreement, a report said on Tuesday. According to the - India-OMAN CEPA: Gateway to Middle Eastern Markets and Beyond - report, prepared by think tank Global trade Reproach Initiative (GTRI), these goods at present face a 5 per cent import duty in Oman. India and Oman are negotiating a comprehensive economic partnership agreement (CEPA), under which the two countries could significantly reduce or eliminate customs duties on the maximum number of goods agreed between them. With the new trade agreement, these products, including major export items like motor gasoline (exports worth USD 1.7 billion), iron and steel products (exports worth USD 235 million), electronics (USD 135 million), machinery (USD 125 million), aluminium oxide (USD 126 million), textiles (USD 110 million), alumina

53 Chinese foreign companies established place of business in India: Govt

The corporate affairs ministry on Monday said there are 53 Chinese foreign companies that have established a place of business in India, but there is no specific data maintained about details of business activities related to providing loans through apps by these firms. A foreign company (incorporated outside India) can establish a place of business in the country after complying with the requirements of RBI regulations and other sectoral requirements, wherever applicable. Within 30 days of the establishment of such an office, it has to seek registration with the Registrar of Companies (RoC) (Delhi & Haryana) under Section 380 of the Companies Act, 2013. In a written reply to the Lok Sabha on Monday, Minister of State for Corporate Affairs Rao Inderjit Singh said that as per information available, there are 53 Chinese foreign companies have established a place of business in India. "However, no specific data is maintained about the details of business activities related to ...

PM Narendra Modi urges youth for ideas to make India developed by 2047

The prime minister also said that this is the historic period when India is going to take a quantum jump and asked the nation to take a pledge

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India's bio-economy grew from $10 bn to $80 bn in 8 years: Mandaviya

India's bio-economy has grown eight times in the last eight years from USD 10 billion to USD 80 billion, Union Health Minister Mansukh Mandaviya said on Monday, underlining that in the coming times, biotechnology will become the biggest foundation for medical treatment. The Indian biotech industry aims at growing to USD 150 billion by 2025 and USD 300 billion by 2030, he noted while virtually addressing an event "Biotechnology: The Path of Innovation and Wellness for Viksit Bharat" held at the at Vigyan Bhavan in Ahmedabad. Mandaviya said India is currently among the top 12 destinations for biotechnology in the world with approximately three per cent share in the global biotechnology industry. The event, which was attended by Gujarat Chief Minister Bhupendra Patel, was held in the run up to the 10th Vibrant Gujarat Global Summit. The summit is scheduled to be held in Gandhinagar in January with the theme -- 'Gateway to the Future'. "This industry (biotechnology) will become a mediu

A tango: Indian equity market valuation rises as US bond yields ease

Earlier, earnings yields in the Indian equities have risen in line with the rise in bond yields in the US

Ficci expects economy to grow at 7.5-8% this fiscal, 8% in 2024-25

Industry expects the economy to grow at 7.5 to 8 per cent in the current fiscal and 8 per cent in 2024-25 on the back of strong growth momentum, positive sentiments and rising private investments, Anish Shah, newly-elected president of the Federation Indian Chambers of Commerce and Industry (Ficci), said on Monday. There will, however, be geopolitical pressure points that may have a bearing on India's growth prospects, he added. "We have seen great growth numbers so far at 7.8 per cent, 7.6 per cent. I expect that to continue because we have got strong momentum. We are seeing multiple companies investing, adding capacities, something that Mahindra group has done as well. "We expect that growth momentum to continue at 7.5 per cent to 8 per cent in the current financial year and for next year, I would expect 8 per cent or higher," said Shah, who is also Group CEO and Managing Director of Mahindra and Mahindra, in an interview to PTI. Indian economy recorded a growth of 7.8 per cent i

GDP growth reflection of transformative reforms of last 10 years: PM Modi

Prime Minister Narendra Modi on Saturday said India's GDP growth of 7.7 per cent in the first six months of the current fiscal year is a reflection of the country's strengthening economy and the transformative reforms carried out in the last 10 years. Addressing the 'Infinity Forum 2.0' conference at the GIFT City here via video link, Modi said his government wants to turn the Gujarat International Finance Tec (GIFT) City into a global nerve centre of the new age global financial and technology services. "In the first six months of this financial year, India has achieved a GDP growth of 7.7 per cent...Today, the entire world has pinned its hopes on India, and this did not happen just on its own. This is a reflection of India's strengthening economy and also the transformative reforms carried out in the last 10 years," Modi said in his inaugural address. India is one of the fastest growing fintech markets in the world today and the GIFT International Financial Services Centre (IFSC)

World recognizes India only option for large demand: Piyush Goyal

The Union Commerce Minister emphasized the unprecedented opportunity presented by 1.4 billion people aspiring for a better future

RBI MPC keeps repo rate unchanged at 6.5% for 5th straight policy review

The central bank raised the GDP growth forecast for FY24 to 7% from 6.5%