Page 47 - Indian Economy

India eyes robust growth in 2025, tackling inflation and global headwinds

India will have to navigate geopolitical headwinds, tame domestic inflation and nudge the private sector to further loosen their purse strings as the world's fastest-growing major economy seeks more purple patches in 2025, leaving behind September quarter growth blues. Economists at the Reserve Bank of India (RBI) say that high-frequency indicators for the third quarter of 2024-25 indicate the economy is recovering, driven by strong festival activity and a sustained upswing in rural demand. In what has been described as a "temporary blip" by Union Finance Minister Nirmala Sitharaman, the country's economic growth slid to a seven-quarter low of 5.4 per cent in the July-September period after clipping a healthy rate of 7-8 per cent. With the growth versus inflation debate leaving the finance ministry and RBI on different pages, all eyes will also be on possible interest rate cuts in February when the central bank's monetary policy panel meets for the first time under the new Governor

India can use retaliatory measures in case of trade war with US: Think tank

In 2023, bilateral trade between India and the United States reached $117.8 billion, with India importing goods worth $42 billion and exporting $75.8 billion

States, UTs to borrow Rs 4.7 trillion via govt securities in Q4FY25

In 2023-24, states contained their GFD at 2.9 per cent of GDP, within the Fiscal Responsibility Legislation (FRL) limit of 3 per cent

Governance woes: Why filling govt vacancies should be India's top priority

Addressing unfilled positions in courts, police, and hospitals could boost productivity and ease citizens' lives

April-Nov fiscal deficit at 52.5% of full-year target, shows govt data

Total government expenditure for the eight months was 27.41 trillion rupees, or about 57% of the annual goal. The government spent 26.52 trillion rupees in the same period last year

Confidence is high, outlook is bright: RBI Guv Malhotra on economy

But stress tests show GNPA ratio of banks may rise under baseline scenario

HCES shows some reassuring trends, urging CPI and policy overhaul

Shifting household consumption patterns and evolving priorities call for updates to inflation indices and a rethink of food and subsidy policies in India

India, China to Germany and UK: How major economies performed in 2024

While India and US have optimistic outlooks going into 2025, Germany and UK may see sluggish growth

Indian economy prospects expected to improve, says RBI Guv Sanjay Malhotra

He noted that RBI's focus remains steadfast on maintaining the stability of financial institutions and, more broadly, systemic stability while preserving financial stability to support higher growth

Dr Manmohan Singh trusted India's trade capacity to compete at global level

He introduced a dual exchange rate mechanism in February 1992 and unified exchange rate mechanism in February 1993, effectively engineering a further devaluation of about 30 per cent

Budget FY26: Economists urge govt to focus on consumption, tax reforms

India's economic growth slowed more sharply than anticipated in the July-September period of FY25, dropping to a seven-quarter low of 5.4 per cent

Manmohan Singh's legacy: 1991 reforms, rights-based laws, nuclear deal

Singh's term as Prime Minister also witnessed several landmark decisions which, in a way, were built on the foundation he laid as finance minister

Manmohan Singh: The technocrat who reshaped India's economic destiny

Manmohan Singh showed that technocrats can change nations' destinies as effectively as any populist

Modest growth raises concerns about sustainability of market rallies

Next time the GDP numbers are announced, the slowdown could be attributed to global economic weakness, rising oil prices, or another drop in domestic capex

Indian economy to grow at 6.5-6.8% in FY25 on high consumption: Deloitte

Indian economy is likely to grow at 6.5-6.8 per cent this fiscal and slightly higher between 6.7-7.3 per cent in FY2026, boosted by domestic consumption, Deloitte said on Sunday. Deloitte India Economist Rumki Majumdar said the growth in the first half of the fiscal year 2025 turned out to be slower than estimated as election uncertainties followed by disruptions in activity due to heavy rainfall and geopolitical events weighed on domestic demand and exports. However, India continues to show resilience in certain pockets that are worth noting -- be it in consumption trends, services growth, the rising share of high-value manufacturing in exports, or the capital market. The government's continued focus on infrastructure development, digitisation, and attracting FDI will be the additional growth booster, enhancing overall efficiency. "We remain cautiously optimistic and expect the growth rate to remain between 6.5 and 6.8 per cent this fiscal year and slightly higher between 6.7 and

Recovery in markets, focus on key products boost export prospects for 2025

India's growing capabilities in high-value sectors like machinery and electronics are supporting the country's exports, amid global uncertainties caused by conflicts, and the gradual economic recovery in developed markets offers improved growth prospects for the Indian exporting community in 2025. Trade experts suggest that if the new US administration imposes higher tariffs on China, Mexico, and Canada, Indian exporters could benefit further by seizing those opportunities. They noted that the possible intervention of the new US administration under Donald Trump to end the Russia-Ukraine conflict could ease the Red Sea crisis, streamline global supply chains, and reduce shipping costs for traders. However, Trump's threat for reciprocal tariffs on Indian goods may have an impact on the country's outbound shipments, as additional duties affect exporters' competitiveness. The European Union's green regulations, including the Carbon Border Adjustment Mechanism (CBAM) and deforestation

Manmohan Singh's economic reforms left indelible mark: RBI Guv Malhotra

Manmohan Singh's contributions as the architect of India's economic reforms have left an indelible mark, RBI Governor Sanjay Malhotra said on Friday as he paid tribute to the departed soul. Singh, the former prime minister and finance minister, also served as the RBI governor between 1982 and 1985. "I am deeply saddened on the passing away of former Prime Minister, Dr. Manmohan Singh, a visionary economist and former RBI Governor. His contributions as the architect of India's economic reforms have left an indelible mark. @RBI joins the nation in mourning this huge," Malhotra said in a post on X. Singh, the architect of India's economic reforms, died here on Thursday night at the age of 92. When Singh took the reins of the finance ministry in 1991, India's fiscal deficit was close to 8.5 per cent of the GDP, the balance of payments deficit was huge and the current account deficit was close to 3.5 per cent of GDP. To make things worse, foreign reserves were just enough to pay for tw

Manmohan Singh: India's quiet reformer taught a generation to dream

Manmohan Singh, who died at 92, was above everything else the embodiment of hope

Growth in informal enterprises signals job creation but raises concerns

ASUSE data shows a rise in unincorporated sector jobs, but reliance on own account enterprises sparks questions about economic health and formal sector job creation

Monetary policy stance may have led to demand slowdown in H1: Finmin review

India's economic growth slowed more sharply than anticipated in the July-September period of FY25, dropping to a seven-quarter low of 5.4 per cent