Page 9 - India Economy

Needs to sustain growth to hit bottom echelons of developed country: Sanyal

Economist Sanjeev Sanyal on Wednesday said India needs to sustain the current growth momentum to reach the "bottom echelons" of being considered a developed world by 2047. Sanyal, a full-time member of the Economic Advisory Council, suggested that developing fast is imperative because by 2047, India would have aged and be in the same place as China is right now. "We still remain a very poor country. So, we have to sustain this performance for 25 years. Only then are we going to get to the bottom echelons of being a developed country in 2047 when we will be 100 years of freedom," Sanyal said while addressing the India Global Forum here. He said this is a window of opportunity before the country, and we ought to make it work by remaining focused on economic growth and not getting distracted by other things. Sanyal said it is essential that we continue to undertake reforms to realise the growth potential and listed out some essential priorities. He said the judicial side requires a l

'India targets 5-fold increase in share of global space economy by 2030'

Union minister Dr Jitendra Singh on Tuesday said the Centre has set the target of increasing the share of the Indian space sector five-fold by 2030 - from the current 2 per cent to 10 per cent. Singh, the Union Minister of State (Independent Charge) for Science and Technology, made the statement after inaugurating "IN-SPACe Technical Centre' at the headquarters of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) in Bopal area of Ahmedabad city. Addressing a gathering after the inauguration, he said there was a time when the world did not take India very seriously in the space sector, while it is the other way round now. "Our target is to take the space economy from 2 per cent to 10 per cent by 2030, a five-fold increase. And as per our vision document, we have mentioned 15 per cent by 2047. That is 15 per cent share in the global space economy," he said. "India's space economy today stands at a modest USD 8 billion, but our own projection is that by 2040 it .

Dysfunctional environmental clearance system should be shut down: Narain

India's system for granting environmental clearances is badly broken and should be completely shut down to dispel any illusions about their effectiveness, eminent environmentalist Sunita Narain has said. In an interview with PTI, Narain -- the director general of independent think-tank Centre for Science and Environment (CSE) -- suggested that the government overhaul the system to strike a balance between environmental preservation and development. Expressing concern over the decriminalisation of environmental laws in India, Narain said the current system for granting environmental and forest clearances, and penalising polluters is "so broken that it should be completely shut down so that we have no illusion of anything that is not working". Regarding environmental impact assessments, Narain pointed out the lack of accountability of committees granting clearances. "The panel lays down hundreds of conditions so that it is not held to account but there is no way to know if the ...

Best of BS Opinion: Sustained momentum, BJP's manifesto on defence & more

Here is the best of Business Standard's opinion pieces for today

Fiscal deficit at Jan-end touches 63.6% of full year target: Govt data

In the corresponding period last year, the fiscal deficit or gap between the expenditure and revenue was 67.8 per cent of Revised Estimates (RE) of the Union Budget 2022-23

India's growth, fast delivery new normal for world: PM at global summit

Prime Minister Narendra Modi on Monday said the world no longer feels surprised at India's achievements as it has become a new normal now and they today realise the benefit of walking alongside the country. Earlier the world used to be surprised to see India has done something but it is no longer so and it has become a new normal for the world, Modi said at a global summit organised here by the TV9 News Network. "Growing trust in India has become the biggest recognition for India," he said. Modi also hit out at previous governments, saying those in power till 10 years ago did not have any faith in India's capabilities. It is very difficult to get victory with a mind that has accepted defeat, he added. "They were the people who called Indians lazy. If there is hopelessness in those in power, how can they inspire hope among the people," Modi said. "We have brought the country out of that era of hopelessness," the prime minister said. Now, decisions are taken fast and those decision

Real GDP growth likely expanded by 7% in December quarter: Report

The country's real GDP growth for the December quarter is all set to come at a higher-than-anticipated 7 per cent, a German brokerage said on Monday. "We are forecasting October-December 2023 real GDP to have grown 7.0 per cent year-on-year during the quarter, which is higher than what we had previously anticipated," analysts at Deutsche Bank said in a note. The official data on quarterly growth will be released on February 29. In the three months ended September 2023, the economy had clocked a 7.6 per cent growth. The German brokerage said its estimate is based on a proprietary index of five high-frequency indicators, including industrial production, exports, non-oil-non-gold imports, bank credit and consumer goods. It said that another indicator comprising nearly 65 high-frequency indicators is also pointing towards 7 per cent growth for the December quarter. "The Indian economy has exhibited remarkable resilience despite the Russia-Ukraine war of last year and Covid prior to th

Best of BS Opinion: The Nato conundrum, recalibrating spend, and more

Here is the best of Business Standard's opinion pieces for today

German economy in 'troubled waters', govt cuts its growth forecast

The German government said Europe's largest economy was in troubled waters and slashed its growth forecast for this year as it struggles with a lack of skilled labour, excessive bureaucracy, high interest rates and lagging investment in new projects while a relatively modest set of tax breaks for business remains blocked in the legislature. The growth forecast was lowered to 0.2% from the previous forecast from last fall of 1.3%. That would follow a shrinking of the economy by 0.3% for all of last year. Germany is recovering more slowly than we hoped from the shock of Russia cutting off most supplies of natural gas after its invasion of Ukraine, Vice Chancellor Robert Habeck said as he presented the government's annual economic report. The economy is in troubled waters. The loss of Russian gas in Germany led to a spike in energy costs that hammered energy intensive industries and contributed to high consumer inflation that eroded purchasing power and made consumers more reluctant t

GDP growth to moderate sequentially to 6% in Q3 FY2024, projects ICRA

Rating agency ICRA on Wednesday projected GDP growth to moderate sequentially to 6 per cent in the third quarter of FY24 from 7.6 per cent in the preceding three months mainly due to subdued performance of agriculture and industrial sectors. Further, it said the GVA (Gross Value Added) growth is estimated to ease to 6 per cent in the October-December quarter FY24 from 7.4 per cent in the second quarter of the last fiscal. The anticipated deterioration in the industrial sector growth in the third quarter is partly attributable to an adverse base effect and a deceleration in volume expansion, even as the continued deflation in commodity prices kept the profitability of some sectors favourable. Additionally, a mild 0.2 per cent contraction in the total spending of the government of India and the 25 state governments (all states except Arunachal Pradesh, Goa, and Manipur) in the October-December period is expected to have dulled the GVA growth in the quarter. "Lower volume growth for t

Govt must focus on exports to reach 10% economic growth: Finance Commission

India must focus on exports to achieve 10 per cent economic growth, Arvind Panagariya, Chairman of the 16th Finance Commission, has said. Paragariya also said that the temptation of import-substituting industrial policy is not unique to India. "I have looked at successful countries such as...Singapore, Taiwan, South Korea, China, and India - these are the...high-growth examples. "My conclusion is very clear - countries that have been open are the ones that have grown rapidly," he said in an interaction with 'Foundation For Economic Development'. He added that the intellectual support for industrial policy and import substitution remains strong in India. Panagariya also explained how the global export market was worth USD 32 trillion in 2022, almost ten times India's GDP. He pointed out that China acquired a very large share of certain products which gave the country a huge boost. "For 3-4 decades, it grew at 10 per cent a year," the economist said.

'US-India alliance for women's economic empowerment being revitalised'

An alliance between the US and India that seeks to facilitate women's economic participation in India by catalysing commitments from private sector, civil society and government leaders in both countries is being revitalised, a senior US diplomat said on Tuesday. The US-India Alliance for Women's Economic Empowerment will work across the board to harness the resources of the private sector and NGOs to foster commitments for women's retention, and stem employment and entrepreneurship, Deputy Chief of Mission in India Patricia A Lacina said. She was delivering the keynote address at the WEConnect International Empowering Inclusion-Advancing Value Chains Summit 2024. "...we are revitalising the US-India Alliance for Women's Economic Empowerment. A public-private partnership to enhance mentorship," she said. Last year, the US-India Strategic Partnership Forum (USISPF), the US Department of State, the US Agency for International Development (USAID) and the George Washington University .

Economic outlook appears bright, 7% GDP growth expected in FY25: FinMin

The outlook for the Indian economy appears 'bright' with GDP likely to clock 7 per cent growth rate next fiscal although the nation needs to keep a watch on global headwinds emanating from geopolitical tensions and volatility in international financial markets, a finance ministry report said on Tuesday. During the current financial year, the Indian economy is estimated to grow at 7.3 per cent. This would be the third year in the row when the GDP would grow in excess of 7 per cent. Driven by a better-than-expected performance in Q2 and above 7 per cent growth projection for FY24 (by Ministry of Statistics and Programme Implementation in its first advance estimates), many global agencies have revised India's growth projection in the upward direction, the Monthly Economic Review released by the finance ministry said. This reflects the resilience of the Indian economy to sustain its growth path amidst ongoing geopolitical headwinds, it said, adding, the measures announced in the Interim

Govt cuts import duty on turkeys; exempts extra long staple cotton from tax

The government has fully exempted customs duty on import of extra long staple cotton, and has cut duties on specified varieties of imported blueberries, cranberries and frozen turkeys. In a notification, the Finance Ministry has slashed import duty on certain items of blueberries and cranberries from 30 per cent to 10 per cent in some cases and 5 per cent in other cases. Similarly, import duty pertaining to meat and edible offal of turkeys, were also reduced from 30 per cent to 5 per cent effective Tuesday. According to officials, the duty rate changes on frozen turkey, specified cranberries and blueberries and their processed products is to implement the recommendation of the Department of Commerce following a mutually agreed solution between India and the US. Nangia Andersen India Associate Director- Indirect Tax, Khushbu Trivedi, said, in pursuance of the bilateral agreement that took place in the recent G20 Leaders' Summit between India and USA intended at addressing the past .

TN fiscal deficit at 3.44% in FY25, growth anticipated: State finance secy

Tamil Nadu's fiscal deficit in the Budget Estimates for 2024-25 stood at 3.44 per cent of the GSDP despite a decline in the State's Own Tax Revenue (SOTR) due to two successive natural calamities in December 2023 resulting in additional expenditure, State Principal Secretary-Finance T Udhayachandran said on Monday. The SOTR suffered a revenue loss due to cyclone Michaung and unprecedented rains in the southern districts. The state government had to spend more on flood relief, provide immediate relief measures besides initiate long-term relief measures, he said. "This budget has been prepared under this financial stress...Nevertheless, Tamil Nadu's economy is robust. We expect a 15 per cent growth in our SOTR through the Commercial Taxes Department," Udhayachandran told reporters here. The Registration department did not see the expected growth last year but next year the government hoped that it would fetch more revenue to the state, he added. Briefing the media on the Budget ...

India set to boost its economic, geopolitical role: Nobel Laureate Spence

India is poised to boost its economic and geopolitical role in the coming decades, helped by an evolving demographic dividend, rapidly expanding digital economy and GDP growth rates that top the world's major economies, Nobel Laureate Michael Spence has said. Spence further said India's leap on the technology front will be a key catalyst for the economic expansion of the nation, currently the world's fifth biggest economy and its pivotal position in international affairs. "As somebody who has spent the last 25 years thinking about growth in one form or another in virtually every corner of the world, let me just say that the major economy with the highest potential growth rate is India," he told ET NOW. The eminent economist noted that India has successfully developed, by far, the best digital economy and financial architecture in the world. "It is a transformational architecture," he said. Spence said the relatively open global economic system that has been in place for over 70 ye

India, UK trade pact talks at advance stage; we want a fair deal: Govt

The negotiations for the proposed India-UK free trade agreement are at an advanced stage, and both sides are working to iron out differences on the remaining issues, a top government official said on Thursday. Commerce Secretary Sunil Barthwal said the negotiations are taking time because "we want" to safeguard India's interest. "India should commercially gain out of it and we should also be able to safeguard the interest of our farmers, PLI (production linked incentive) scheme goods. So, we are there to see that the deal is a fair deal," he told reporters here. Additional Secretary in the Commerce Ministry L Satya Srinivas said the talks are at an advanced stage and going on at a "very" high level to iron out differences. The 14th round of talks started on January 10. The investment treaty is being negotiated as a separate agreement between India and the UK. The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.

Recurring food price shocks pose challenges in tackling inflation: Das

Reserve Bank Governor Shaktikanta Das on Thursday said recurring food price shocks and renewed flash points on the geo-political front pose challenges in tackling inflation. "We remain vigilant to navigate through the last mile of disinflation as it is often the most difficult part of the journey. We firmly recognise that stable and low inflation will provide the necessary bedrock for sustainable economic growth," the governor said. Das stressed that stable and low inflation will provide the necessary bedrock for sustainable economic growth. India has successfully navigated through multiple challenges and emerged as the fastest-growing large economy, he said in his keynote address at the 59th SEACEN Governors' Conference here. "Prudent monetary and fiscal policies have paved the path for India's success in sailing through these rough waters. The Reserve Bank projects the Indian economy to grow by 7.0 per cent during 2024-25, marking the fourth successive year of growth at or above

Introspect on adapting for India's path to a developed nation: FM to SPMCIL

Finance Minister Nirmala Sitharaman on Thursday asked state-owned Security Printing & Minting Corporation of India (SPMCIL) to find ways to transform itself at a time when its core business of printing currencies is depleting because of India's transition to a digital economy. Addressing the foundation day of SPMCIL, Sitharaman said at a time when minting coins in a digital era has become slightly jaded, the corporation has kept itself relevant by coming out with commemorative coins which can be gifted as souvenirs. The commemorative stamps and coins produced by the organisation are reflective of India's branding, cultural and environment issues, she said. SPMCIL has set the standards in gold and silver refining, and since 2022-23, SPMCIL has refined 5,300 kg of seized gold. It has paid a dividend of Rs 533.77 crore for 2022-23. The core strengths of SPMCIL include manufacture of bank notes and coins, also commemorative coins, and security products like passport and non-judicial ..

FM Sitharaman to review state of economy at FSDC meeting on February 21

Finance Minister Nirmala Sitharaman is scheduled to review the state of the economy amid global challenges at a meeting of the Financial Stability and Development Council (FSDC) on February 21. The 28th meeting of the high-level panel to be held here will be attended by all financial sector regulators, including RBI Governor Shaktikanta Das, sources said. This would be the first meeting of the FSDC after the passage of the Rs 47.6 lakh crore Budget for 2024-25, focussing on capital expenditure with an outlay of Rs 11.11 lakh crore. In the meeting, the Finance Minister will review the current global and domestic economic situation and financial stability issues. Sitharaman is likely to stress key priorities highlighted in the interim Budget, the way forward for various future policies and measures that the government has proposed to take in many sectors, sources said. Besides, the council may also review the progress of measures approved earlier for further development of the finan