Page 143 - Indian Economy

'India will continue to be a lower cost economy for two more decades'

India will continue to be a lower cost economy for around two more decades, and it will be cheaper to design and manufacture products here for many years, Infosys' co-founder Kris Gopalakrishnan said on Monday. In the next three decades, India will reach where China is today by becoming a middle-income country with a per capita income of at least USD 6-7,000, Gopalakrishnan said while addressing the first convocation of Somaiya Vidyavihar University. "India will continue to be a lower cost economy for the next 10-20 years, whereas the countries above us in development are all higher income countries. It will be cheaper to ideate, to design, to develop and manufacture products in India for many years to come," he said. It can be noted that labour arbitrage, especially on the services front, has been very helpful to the country's growth. The IT sector which emerged out of it is now a USD 220 billion industry and supports millions of jobs. Gopalakrishnan further said the country will

Growth next year to be better than IMF projections, says CEA Nageswaran

Chief Economic Adviser V Anantha Nageswaran on Monday said India is expected to clock better growth than IMF's projections next year aided by enhanced capital formation. Recently, the International Monetary Fund (IMF) projected 6.8 per cent real growth for this year and 6.1 per cent for next year for India. "I think in fact, the growth rates for the coming years may be slightly more, slightly better than what these numbers are, because I think there is a possibility that India's capital formation cycle will do better after one decade of retrenchment," he said. India's public digital infrastructure has probably crossed an inflection point and that will also be contributing to both formalisation of the economy and therefore higher growth, he said. So, he said, maybe there could be 0.5-0.8 per cent addition to the 6 per cent baseline numbers. He also said that fiscal policy and monetary policy are usually synchronised and counterbalance each other. On high debt-to-GDP ratio, he said

Retail inflation for industrial workers rises to 6.49% in Sept: Govt data

Retail inflation for industrial workers rose to 6.49 per cent in September from 5.85 per cent in August 2022 mainly due to higher prices of certain food items, according to the government data released on Monday. "Year-on-year inflation for the month (of September 2022) stood at 6.49 per cent compared to 5.85 per cent for the previous month (August, 2022) and 4.40 per cent during the corresponding month (September 2021) a year before," a labour ministry statement said. Similarly, it stated that the food inflation stood at 7.76 per cent against 6.46 per cent of the previous month and 2.26 per cent during the corresponding month a year ago. The All-India CPI-IW (Consumer Price Index-Industrial Workers) for September, 2022 increased by 1.1 points and stood at 131.3 points. It was 130.2 points in August 2022. On one-month percentage change, it increased by 0.84 per cent with respect to previous month compared to an increase of 0.24 per cent recorded between corresponding months a year

Core sector output sees rebound, grows by 7.9% in Sept against 5.4% YoY

Production of eight infrastructure sectors expanded by 7.9 per cent in September against 5.4 per cent in the same month last year on better show by coal, fertiliser, cement and electricity segments, according to official data released on Monday. In August, the core sectors' output growth stood at 4.1 per cent. The production growth of eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- was 9.6 per cent during April-September this fiscal, compared to 16.9 per cent a year ago.

April-Sept fiscal deficit at 37% of FY23 target, net tax receipts Rs 10 trn

Net tax receipts rose to Rs 10.12 trillion while total expenditure was Rs 18.24 trillion, the data showed

On high inflation, here is what RBI needs to tell govt: It is your fault

All the research since 1980 shows that loose fiscal policy causes inflation, and the RBI MPC needs to tell the govt just that

Global turmoil not over, volatility to remain: MD, ITI Long Short Eq Fund

In Q&A, Rajesh Bhatia spells out the key tailwinds and risks the domestic markets face at this juncture and how a long-short fund can help protect downside risks

Statsguru: Six charts show India's declining foreign exchange reserves

RBI has scheduled an off-cycle meeting for November 3

Despite Covid waves, India one of fastest-growing economies: Rijiju

Union Law and Justice Minister Kiren Rijiju on Saturday said despite the three waves of the Covid-19 pandemic, India is currently one of the fastest-growing economies in the world

Govt likely to surpass FY23 tax collection goal by over $24 billion

India's union budget, due to be presented in February, will outline the federal spending plan for the coming fiscal year

High inflation a result of exogenous price shocks, says MPC member

The high inflation rate in the last three quarters is mainly a consequence of the 'exogenous' price shocks, and addressing the issue will require coordinated policy efforts, RBI Monetary Policy Committee (MPC) member Shashanka Bhide has said. Bhide further said the inflationary pressures are high and it certainly is a test for India's inflation targeting framework. "The high inflation rate in Q2 FY2022-23 follows high inflation in the previous two quarters. "High fuel and food prices and their spillover to other sectors have sustained the high inflation rate," he said in an email interview with PTI. The retail inflation based on CPI has remained above 6 per cent since January 2022, and it was 7.41 per cent in September. The MPC factors in retail inflation while deciding the RBI's bi-monthly monetary policy. "While this pattern is mainly a consequence of the exogenous price shocks, it is important to take measures to limit the spillover of the price shocks to the rest of the ...

RBI steps up fund infusion as system liquidity 'almost neutral'

Rates on CPs, CDs surge; pressure mounts on banks to raise deposits

Foreign trade vital in making India a $30 trillion economy: Piyush Goyal

Union Minister for Commerce and Industry Piyush Goyal said here on Friday that foreign trade would become a truly defining feature that would help India become a USD 30 trillion economy in the Amrit Kaal. "We have reached that inflection point, we are at the cusp, where we are going to take off. If we have the ambition to be at least ten times in the next 25 years...we are looking to cross the USD 30 trillion economy with a per capita GDP of 15,000 dollar," Goyal said. Speaking as the guest of honour after inaugurating the third campus of the Indian Institute of Foreign Trade-Kakinada, along with Union Finance Minister Nirmala Sitharaman, Goyal noted that foreign trade would become a truly defining feature in the years to come "as we work in the Amrit Kaal in the next 25 years and progress towards a developed India." "Amrit Kaal, leading to the 100 years of Indian Independence, will determine the future of our children and generations to come. You are the main stakeholders in this .

RBI release suggests Nov MPC meet only to discuss inflation target failure

MPC may decide RBI's response to govt on the matter; Unlike earlier off-cycle meetings in which interest rate action was taken outside schedule without prior notice, this one was announced in advance

India's forex reserves touch $524.5 bn, lowest level since July 2020

The primary reason for the decline is foreign currency assets, which recorded a dip of $3.5 billion to $465 billion

The UK or Korea: What is the ideal benchmark for the size of India's govts?

There must be a warning in the fact that some of the most problem-ridden middle-income economies have big govts, big deficits, high levels of debt and large-scale corruption, writes T N Ninan

Xi's fraying ties with West make China+1 real theme in India festive season

India as a risk-mitigation tactic - a hedge against manufacturing all widgets in China - is a story that's gathering investor interest and helping to justify lofty valuations

Business confidence falls for second straight quarter, says NCAER survey

Earlier, it was at 142.9 in the fourth quarter of 2021-22. It was 117.4 in the corresponding quarter last year

Explained: Mahatma to Mangalyaan, how currency notes evolved in India

Delhi's Chief Minister Arvind Kejriwal said that efforts to make India wealthy would only bear fruit with blessings from gods and goddesses.

Political currency or divine help?

Economic debates should be informed. Changing the currency notes or printing images of Lord Ganesh and Goddess Lakshmi on them will not help