Page 18 - India Economy

Food inflation sole threat to 4% CPI target: RBI 'State of Economy' report

The headline inflation had risen to a 15-month high of 7.44 per cent in July due to a surge in retail prices of vegetables, particularly tomatoes

Govt considering several measures to help revive special economic zones

The government is considering several measures such as a flexible framework for sale of products manufactured in special economic zones (SEZs) in the domestic market, easy de-notification norms, and streamlining approval processes for units, an official said. The aim is to help revive SEZs and facilitate business transactions between SEZ and domestic tariff area (DTA) or the domestic market. SEZs are enclosures which are treated as foreign territories for trade and customs duties, with restrictions on duty-free sales outside these zones in the domestic market. To seek views of different ministries on these measures, the commerce ministry has circulated a note on a draft SEZ (special economic zone) amendment bill 2023. The inter-ministerial consultation is going at a fast pace and the bill is likely to be introduced in the forthcoming Winter session of Parliament which will commence on December 4 and continue till December 22. This amendment bill will be introduced in place of the .

Food inflation remains above comfort level, despite easing of CPI: Official

Food inflation, which accounts for nearly half of the overall consumer price basket, was 6.61% in October

India to emerge as third largest global economy by 2027: FM Sitharaman

Finance Minister Nirmala Sitharaman on Wednesday said India is expected to overtake Japan and Germany to emerge as the third largest economy in the world by 2027. Addressing the Indo-Pacific Regional Dialogue here, Sitharaman said India's economic growth is estimated to be just under 7 per cent during the year, the highest among major economies, despite global headwinds. The Indian economy is therefore on the right track and is heading towards a bright future, she said. Amidst supply-chain disruptions and economic turbulence due to contemporary conflicts that impact the Indo-Pacific, irrespective of whether they are occurring in relatively distant Ukraine or in relatively-proximate Israel or Yemen, and despite the palpable tensions prevalent in the South- and East China Sea, the Indian economy stands out as a bright spot, she said. "Even according to the usually conservative estimates of the IMF, the Indian economy is set to emerge as the world's third largest economy by 2027, hopp

Centre may raise threshold for GST evasion cases from Rs 2 cr to Rs 3 cr

The Centre may also tweak the rules of issuing summonses to the violators

Manufacturing accelerates in Q2, likely to sustain in FY24: Ficci study

57% respondents have plans for investments and expansion in the next six months

India needs 8%-8.5% growth to create enough jobs, says Raghuram Rajan

While India's expansion has outpaced that of other major economies, the country isn't creating enough jobs for the millions of people joining the workforce every year

India proposes slashing EV import taxes to clinch UK free trade deal

The UK's demand for import concessions on electric vehicles is one of the few outstanding issues in the free trade talks

Tax windfall gives Modi govt scope to spend more on welfare schemes

The revenue windfall gives Modi's government more firepower for a populist push as voters in five states take to the polls this month and the nation gears up for general elections in 2024

Will take India among top 3 economies of world in my third tenure: PM Modi

Prime Minister Narendra Modi on Wednesday said in his third tenure as PM, he will take the country among the top three economies in the world. Addressing a public meeting in Madhya Pradesh's Damoh town ahead of the November 17 state assembly polls, Modi also said he will continue to fight against corruption. People gave power to the Congress in Chhattisgarh and Rajasthan, but their chief ministers were found involved in "satta" (betting) and generating black money, he said. Modi said that after 2014, the country's economy climbed to 5th position from 10th, leaving behind the UK, which ruled the country for over 200 years. In 2014, when we came to power, the country's economy was at the 10th position. Gradually it moved to 9th, 8th, 7th and 6th but nobody was talking about it. When it reached the 5th position and left behind the UK, which ruled the nation for 200 years, everybody was surprised and started looking at India, he said. Modi said during his third tenure as PM, he will t

RBI launches two key surveys which will provide inputs for monetary policy

The Reserve Bank of India on Wednesday announced the launch of 'Inflation Expectations Survey of Households' and 'Consumer Confidence Survey' which will provide key inputs for the bi-monthly monetary policy. The next bi-monthly monetary policy is scheduled during December 6-8. The 'Inflation Expectations Survey of Households' captures subjective assessments on price movements and inflation based on their individual consumption baskets, across 19 cities, including Bhopal, Bhubaneswar, Chandigarh, Chennai, Delhi and Thiruvananthapuram. The survey on inflation seeks qualitative responses from households on price changes in the three months ahead as well as in the one year ahead period and quantitative responses on current, three months ahead and one year ahead inflation rates, according to RBI releases. The 'Consumer Confidence Survey' seeks responses from households, regarding their sentiments on general economic situation, employment scenario, price level, households' income and ...

Unemployment rate in October rises to more than two-year high, says CMIE

The weakest monsoon rains in five years is weighing on farming output in the world's second-biggest producer of rice, wheat and sugar

Isma projects 9% fall in sugar output, says sufficient to meet local demand

Industry body ISMA on Tuesday projected a 9 per cent fall in gross sugar production at 337 lakh tonnes for the current marketing year starting this month but asserted the output will be enough to meet domestic demand. It has not estimated the diversion of sugar for ethanol production. "Gross sugar production for the 2023-24 sugar season has been estimated at around 337 lakh tonnes," Indian Sugar Mills Association (ISMA) said in a statement. The sugar marketing year runs from October to September. In August, ISMA had estimated gross sugar production at 369 lakh tonnes, while the net sugar output was projected at 328 lakh tonnes after a diversion of 41 lakh tonnes for ethanol. "With India's domestic consumption average of 278.5 lac tons, the production estimates assure sufficient sugar for domestic consumption," ISMA said. ISMA said that the diversion of sugar towards ethanol would be estimated only after the declaration of feed stock-wise ethanol procurement price for the 2023-24

Manufacturing accounted for 78% of foreign technical collaborations: RBI

Manufacturing sector accounted for 78 per cent of the total reported Foreign Technical Collaborations (FTCs) with Japan, the US, and Germany remaining the top three source countries for technology transfer, a Reserve Bank of India (RBI) survey said on Tuesday. Of the 709 Indian entities that participated in the latest survey round, the RBI said 674 FTCs agreements were reported by 356 entities, of which, 221 had also responded in the previous survey round. Foreign Direct Investment (FDI) companies accounted for an overwhelming majority of the FTCs. Further, foreign subsidiaries (single foreign investor holding over 50 per cent of the total equity) and foreign associate companies (foreign investors' equity holding ranging from 10-50 per cent) reported a 71 per cent and 18 per cent of FTC agreements, respectively. "Among economic sectors, manufacturing and services sectors accounted for 78 per cent and 17 per cent of the total reported FTCs, respectively; machinery, transport equipme

Key infra sector growth slows down to 4-month low of 8.1% in September

The growth of eight key infrastructure sectors slowed down to 8.1 per cent in September 2023 against 8.3 per cent recorded a year ago, according to the official data released on Tuesday. Crude oil output dipped by 0.4 per cent in September as against a contraction of 2.3 per cent in the same month last year. The core sector growth in August was 12.5 per cent. The output growth of the eight sectors was also lower at 7.8 per cent in April-September 2023-24 against 9.8 per cent in the year-ago period.

Govt's fiscal deficit rises to 39.3% of annual target in H1 of FY24

The fiscal deficit was 6.4 per cent of the GDP in 2022-23 against the earlier estimate of 6.71 per cent

75% beneficiaries of PM SVANidhi from non-general category: SBI research

An SBI research report has praised the Modi government's micro-credit scheme for street vendors for ensuring "inclusive entrepreneurship" and said nearly 75 per cent of its beneficiaries come from the non-general category with the OBCs accounting for 44 per cent. The Scheduled Castes and Scheduled Tribes account for 22 per cent of the total disbursement of the PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme and 43 per cent of the total beneficiaries are women, the report said. "Female share indicates empowerment of entrepreneurial capabilities of urban female, giving SVANidhi a gender equaliser tag," it said. Sharing the report on X, Prime Minister Narendra Modi said, "This in-depth research by Soumya Kanti Ghosh of the State Bank of India provides a very clear picture of the transformative impact of PM SVANidhi." "It notes the inclusive nature of this scheme and highlights how it has led to financial empowerment," he added. The prime minister shared highlights of the re

Uttarakhand CM releases Rs 90 crore subsidy to 40 industrial units

Uttarakhand Chief Minister Pushkar Singh Dhami on Saturday transferred a subsidy of Rs 90 crore to 40 industrial units under the Industrial Development Scheme. Under the Central Government's Industrial Development Scheme, 2017, manufacturing and service sector units established in Uttarakhand and Himachal Pradesh are given a subsidy of 30 per cent up to a maximum of Rs 5 crore on the investment made in plant and machinery. After transferring this grant amount to the accounts of 40 industrial units established in Uttarakhand, the chief minister said that this is a very important scheme for the promotion and expansion of industries in the state. Dhami thanked Prime Minister Narendra Modi and Union Commerce and Industry Minister Piyush Goyal for the grant of subsidy. Dhami said that the state government is continuously making efforts to promote industries in Uttarakhand and the 'Uttarakhand Global Investors Conference' is being organized in December to boost the sector. He said that

Delhi industrial policy seeks to create knowledge-based economy: State govt

The Delhi government has proposed the 'Industrial and Economic Development Policy 202333' to create a knowledge-based economy through high-tech industrial development and services sector and make the national capital a "24-hour city". Industries department officials on Saturday said that comments have been invited from the shareholders on the policy white paper till November 20. The proposed policy envisions making Delhi a globally competitive urban economy through the promotion of night economy, plug-and-play facilities, startups and new economic activities. The mission of the government through the policy will be to promote the services sector and knowledge-based economy, hi-tech industrial and economic development, stated the white paper. The policy objectives will be implemented in a timely and transparent manner while creating an accountable governance mechanism. The policy will be operational for 10 years after its notification, it stated. "The concept of a '24-hour city' fo

India's per capita FMCG consumption low compared to other economies: HUL MD

Premiumisation is bound to accelerate as Indians become more affluent and urban, says Jawa