Page 24 - India Economy

CEA rejects 'statistical discrepancy' criticism on Q1 growth numbers

Chief Economic Advisor V Anantha Nageswaran has rejected criticism of 'statistical discrepancy' in the first quarter GDP data, saying when the same statistical authority reported the severest contraction in the first quarter of 2020, the naysayers had called it credible as it suited their narrative. "In Q1 of 2023-24, the discrepancy of 2.8 per cent has a plus sign. This indicates that the expenditure side has explained only 97.2 per cent of the income side. It does not mean that the 2.8 per cent that has yet to be explained does not exist," Nageswaran said in an op-ed article. "It exists and lends itself to being explained in subsequent quarters. Similarly, the preceding eight quarters have shown negative discrepancies. It means that the expenditure side has been over-explained and needs to be reconciled," the article co-authored by senior government economist Rajiv Mishra said. Over a long period, the negatives and positives offset each other, it said, adding that between 1Q FY12

India's forex reserves jump by $4.03 billion to $598.89 billion: RBI data

India's forex reserves jumped by USD 4.039 billion to USD 598.897 billion for the week ended September 1, the Reserve Bank said on Friday. In the previous reporting week, the overall reserves had dropped by USD 30 million to USD 594.858 billion. It can be noted that in October 2021, the country's forex kitty had reached an all-time high of USD 645 billion. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year. For the week ended September 1, the foreign currency assets, a major component of the reserves, increased by USD 3.442 billion to USD 530.691 billion, according to the Weekly Statistical Supplement released by the RBI. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves were up by USD 584 million to USD 44.939 billion, the RBI ..

$1.8 bn worth assets recovered from economic offenders: Jitendra Singh

Union Minister Jitendra Singh on Thursday said that assets worth more than USD 1.8 billion have been recovered from economic offenders and fugitives in the last about four years. Addressing an event at the Central Bureau of Investigation (CBI) headquarters here, he said there has been a quantum jump in extradition of criminals and fugitives in recent years, especially after India hosted the 90th Interpol General Assembly in October 2022. Singh, the Minister of State for Personnel, said 19 criminals/fugitives have returned to India this year so far, whereas previously, on an average around 10 of them have returned to India every year. The figure stood at 27 in 2022 and 18 in 2021. "Over 1.8 billion US dollar worth of assets have been recovered from economic offenders and fugitives in the last about four years, after Prime Minister Narendra Modi brought in the Economic Offenders Act, while the Prevention of Money Laundering Act (PMLA) has helped in attaching the assets of offenders .

Services PMI slows down in Aug as sales wane off despite record exports

Optimistic outlook of companies bodes well for growth prospects, says S&P Global survey

RBI committed to bring down inflation to 4%: Governor Shaktikanta Das

The central bank has been mandated by the government to keep inflation at 4 per cent with a margin of 2 per cent on either side

Inflation to remain elevated in near-term, govt policies to prevent it: S&P

In July, the consumer price index based retail inflation spiked to 15-month high of 7.44 per cent in July, with specific food commodities mainly driving the increase

India will have no place for corruption, casteism, communalism: PM Modi

Prime Minister Narendra Modi in exclusive interview to PTI: Many positive impacts from India's G20 Presidency, some "very close to my heart".

G20 Presidency helping India deepen trade ties with member nations: Experts

The G20 Presidency with India is helping New Delhi to strengthen trade ties with member nations and provides an opportunity to attract investments from those countries in sectors like infrastructure, experts say. They said that the G20 (Group of 20) holds a strategic role in securing future global economic growth and prosperity, as its members represent about 85 per cent of the global GDP (Gross Domestic Product), 75 per cent of global trade and two-thirds of the world's population. Presiding over this multilateral forum is an opportunity for India as it can showcase its strength and achievements for attracting investment and deepen its trade relation with these large economies, the experts added. Fast-tracking negotiations for free trade agreement, ease of doing business, development of modern infrastructure, skilled manpower, large population with growing income are some of the positives which help India to enhance trade realisations with these member countries. The G20 has 43 ..

GST collection grows 11% YoY to around Rs 1.6 trillion in August: Govt

The GST revenues for August 2023 have shown a growth of 11 per cent year on year due to increased compliance and less evasion, Revenue secretary Sanjay Malhotra said on Friday. The collection from Goods and Services Tax (GST) was Rs 1,43,612 crore in August 2022. "Roughly numbers are in the range of 11 per cent year on year growth as in earlier months," Malhotra told reporters. A 11 per cent growth roughly translates to around Rs 1.60 lakh crore. He was replying to a question on the expected GST revenue numbers for August, the data for which will be released later on Friday. Malhotra said GDP growth was 7.8 per cent in June quarter and nominally it has grown 8 per cent. "GST revenues during June quarter grew by more than 11 per cent. This translates into a tax:GDP ratio of more than 1.3," Malhotra said. Malhotra said GST collections have grown by more than nominal GDP and this is despite no increase in tax rates. This is because of better compliance and improved tax collection .

Moody's ups GDP projection to 6.7% for CY2023 on robust economic momentum

Moody's Investors Service on Friday raised India's growth projection for 2023 calendar year to 6.7 per cent on account of robust economic momentum. "Strong services expansion and capital expenditures propelled India's 7.8 per cent real GDP growth in the second (April-June) quarter from a year ago. We have accordingly raised our 2023 calendar year growth forecast for India from 5.5 per cent to 6.7 per cent," Moody's said in its Global Macro Outlook. "Given the robust underlying economic momentum, we also recognise further upside risk to India's economic growth performance," it added Moody's said since the second quarter outperformance creates a high base in 2023, "we have lowered our 2024 growth forecast from 6.5 per cent to 6.1 per cent". India's monsoon season which runs from June to October could also see below average rainfall, resulting in higher food prices. So far, as of August 29, the India Meteorological Department has estimated a 9 per cent rain deficiency across the ...

Nomura raises India's economic growth forecast for FY24 to 5.9%

India's Gross domestic product (GDP) expanded a more-than-expected 7.8% on an annual basis in the June quarter, Thursday's data showed, accelerating from 6.1% growth recorded in the March quarter

Top headlines: Q1 GDP data, core sector output slowed to 8%, and more

Business Standard brings the top headlines at this hour

India continues to be fastest-growing economy, thanks to Modinomics: BJP

Various growth parameters indicate that India continues to be the fastest-growing economy in the world and the country's GDP data for the first quarter of the current fiscal should come at around 8 per cent, thanks to "Modinomics", the BJP said on Thursday. The increase in both rural and urban demand, the consumption pattern, the Goods and Services Tax (GST) collection and various other parameters provide "very good indications" for the future, Bharatiya Janata Party's (BJP) national spokesperson Syed Zafar Islam told a press conference at the party headquarters here. "With festivals approaching, there will be further increase in demand. The economy of the country will be in a much better position. The growth momentum will also increase further," he said, giving credit to "Modinomics" -- Prime Minister Narendra Modi's economic vision. "The GDP data for the first quarter is going to come today. I don't know what the figure will be, but the speed of growth indicates that it will be ..

Govt likely to focus on motor fuel prices ahead of 2024 polls: Citigroup

The government's decision to reduce liquefied petroleum gas could lower inflation by around 30 basis points, economists Samiran Chakraborty and Baqar M. Zaidi said in a note

Economy on growth path; auto, pharma, tourism sectors to add new jobs: PM

Prime Minister Narendra Modi on Monday said the Indian economy was on the path of rapid growth which had led to creation of big opportunities for employment of the youth. Addressing a Rozgar Mela where he distributed over 51,000 appointment letters to the youth, he said automobile, pharma, tourism and food processing sectors were expected to grow at a rapid pace and open up employment opportunities for the youth. Modi addressed the Rozgar Mela virtually as the new appointees in central paramilitary forces, Narcotics Control Bureau and the Delhi Police joined in from 45 locations across the country. The prime minister said India had emerged as the fastest growing economy and would soon be among the top three economies in the world during this decade and bring benefits to the common man. "For any economy to grow, it is imperative that every sector develops. From the food sector to pharmaceuticals, from space to start-ups, when every sector grows the economy will move ahead," he said

India, UK to continue free trade agreement negotiations till Aug-end

Indian and UK officials will continue their negotiations till the month-end to iron out differences on the proposed free trade agreement (FTA), the commerce ministry said on Sunday. This meeting will be followed by a review at the higher level, it said. Following the G20 Trade and Investment Ministers Meeting (TIMM) at Jaipur, the progress of the negotiations was reviewed by Commerce and Industry Minister Piyush Goyal and UK's Secretary of State for Trade Kemi Badenoch on August 26. "Teams are going to continue negotiations till the end of August 2023 which will be followed by stock taking at the higher level, it said. While expressing satisfaction over the last 12 rounds of negotiations wherein several chapters have been finalized, both exuded confidence that the next round of talks to be similarly successful. "Both Chief Negotiators apprised the ministers about the current state of play, issues outstanding for resolution and their continuous joint efforts to iron out the same,"

Creating industrial hubs, implementing single GST crucial for MSMEs: Rahul

Creating industrial hubs and implementing a single GST rate are imperative measures to shield MSMEs which collectively possess the power to drive India's growth engine, Congress leader Rahul Gandhi said on Sunday as he shared a video of his recent visit to a chocolate-making factory in Ooty. Gandhi had visited "one of Ooty's most celebrated brands" Moddys Chocolates earlier this month while on his way to his parliamentary constituency Wayanad after his Lok Sabha membership was restored. Nestled amidst the picturesque Nilgiris lies a globally renowned Indian industry -- the chocolate-makers of Ooty, a statement issued by the Congress said. "On my way to Wayanad, recently, I had the delightful experience of visiting one of Ooty's most celebrated brands: Moddys Chocolates. The entrepreneurial spirit of the couple behind this small business, Muralidhar Rao and Swati, is inspiring," Gandhi was quoted as saying in the statement. Equally remarkable is the all-women team which works ...

India a lab for global good, has reservoir of talent: Pradhan at B20 meet

India is a laboratory for global good and carries a reservoir of talent, Union Education Minister Dharmendra Pradhan said on Saturday. Addressing the B20 Summit India on the theme "Aligning Education to Emerging Imperatives", Pradhan said education is the mothership that will drive all growth. "India is a laboratory for global good which comes from our civilisational values of Vasudhaiv Kutumbukam India's aspirations are for achieving global good and wellbeing. Education is the mothership that will drive all growth and, as a knowledge civilisation, India carries a reservoir of talent," Pradhan said. Speaking about initiatives in the education sector, Pradhan said the National Education Policy, 2020, which is rooted both in Indian values and is futuristic, is preparing students for the 21st century. He spoke about the various initiatives such as integration of education and skill, learning in the mother tongue and efforts to achieve 100 per cent enrolment in the knowledge ecosystem

GCC keen to 'quickly' start talks for free trade agreement: Goyal

The Gulf Cooperation Council (GCC) has expressed the desire to "quickly" get back on the negotiating table to discuss a potential trade agreement, Commerce and Industry Minister Piyush Goyal said on Thursday. Last year, both the regions agreed to pursue an FTA and resume the negotiations. GCC is a union of six countries in the Gulf region -- Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain. The council is the largest trading bloc of India. "We have large investments coming from GCC countries. We already have a FTA with UAEThe GCC countries led by Saudi Arabia have expressed the desire to quickly get back on the negotiating table to discuss potential agreements with the GCC countries. Many GCC member nations have also approached India individually with the request to enter into a bilateral agreement," he told reporters here. The minister is here for the G20 trade and investment ministerial meeting. Among the economic regions, GCC is the top source of imports. Imports from GC

Monsoon rains will trigger growth of Rs 8,000 cr sector: NR Group MD

The NR Group, owner of the world's largest incense stick brand Cycle, on Thursday said monsoon rains will trigger the growth of the Rs 8,000-crore sector, though there are some concerns about normal rainfall as of now. "The sector's actual demand is driven in the second and third quarters of the year due to the festive season. With good monsoon, festivals are celebrated in a bigger way and so the demand for incense sticks and puja materials increases. Currently, there is some uncertainty about a normal monsoon, which is a bit worrying for us," Cycle Pure Agarbathi managing director Arjun Ranga told PTI. He was in the city to launch four new products unveiled by brand ambassador and former Indian cricket team captain Sourav Ganguly. Ranga said post-Covid, unorganised players have thrived, which is another headwind, albeit temporary, as they will eventually fade away. With the implementation of GST, most of the industry is becoming more organised as unorganised players are being wiped