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India has recently unveiled its interim budget for the upcoming fiscal year, allocating $580 billion for various expenditures commencing on April 1. The budget, presented by Finance Minister Nirmala Sitharaman, reflects the economic priorities of the nation. But what goes into earning every rupee that contributes to this massive financial plan?

Breaking down the sources of income, it is revealed that 28 paise of every rupee comes from government borrowings. Income tax follows closely, contributing 19 paise, while Goods and Services Tax (GST) contributes 18 paise. The corporate sector adds 17 paise, and customs and excise duties together contribute 9 paise. The remaining 9 paise come from various other sources, showcasing a diverse revenue stream.

Turning the focus to expenditures, one-fifth of the government's budget goes into paying interest on loans, reflecting the economic challenge of managing existing debt. As a federal country, every 16 paise earned is shared with the states and union territories, emphasising cooperative fiscal responsibility.

Government schemes account for at least 24 paise. Pensions and subsidies make up 10 paise, while defence spending constitutes 8 paise. Finance Commission-related fund transfers and other expenses collectively take away the remaining 22 paise.

This comprehensive breakdown of how each rupee is earned and spent provides a glimpse into India's economic health and its ambitious goal to emerge as a developed country by 2047. &nbsp;

&nbsp;

India has recently unveiled its interim budget for the upcoming fiscal year, allocating $580 billion for various expenditures commencing on April 1. The budget, presented by Finance Minister Nirmala Sitharaman, reflects the economic priorities of the nation.

India has recently unveiled its interim budget for the upcoming fiscal year, allocating $580 billion for various expenditures commencing on April 1. The budget, presented by Finance Minister Nirmala Sitharaman, reflects the economic priorities of the nation. But what goes into earning every rupee that contributes to this massive financial plan? Breaking down the sources of income, it is revealed that 28 paise of every rupee comes from government borrowings. Income tax follows closely, contributing 19 paise, while Goods and Services Tax (GST) contributes 18 paise. The corporate sector adds 17 paise, and customs and excise duties together contribute 9 paise. The remaining 9 paise come from various other sources, showcasing a diverse revenue stream. Turning the focus to expenditures, one-fifth of the government's budget goes into paying interest on loans, reflecting the economic challenge of managing existing debt. As a federal country, every 16 paise earned is shared with the states and union territories, emphasising cooperative fiscal responsibility. Government schemes account for at least 24 paise. Pensions and subsidies make up 10 paise, while defence spending constitutes 8 paise. Finance Commission-related fund transfers and other expenses collectively take away the remaining 22 paise. This comprehensive breakdown of how each rupee is earned and spent provides a glimpse into India's economic health and its ambitious goal to emerge as a developed country by 2047.

Interim Budget 2024: How India's government earns and spends every rupee

India's Central Bank has dropped the hammer on Paytm Payments Bank. In a move prompted by supervisory concerns, the central bank has imposed stringent restrictions on the digital banking giant. This means Paytm can no longer accept new deposits, credit transactions, or top-ups in any accounts after February 29th.

Paytm Payments Bank in limbo: India's RBI hits Paytm Payments Bank

For the year 2024-25, the Indian government has proposed an allocation of around $1.63 billion (Rs 13,042 crore) for the Department of Space (DoS), as revealed in the interim budget. The DoS is an umbrella body, which covers the Indian Space Research Organisation (ISRO), the space sector regulator IN-SPACe (Indian National Space Promotion and Authorization Centre), other related centres, associated academic and research institutions, etc.&nbsp;

As per the data shared in the Demand for Grants document, this proposed budget allocation of Rs 13,042 crore&nbsp;for 2024-25 is a step up from the revised estimate of $1.33 billion (Rs 11,070 crore) for 2023-24. While this is an increase of 17.8 per cent, it would take considerable time to know how much of this proposed sum&nbsp;would be allocated eventually.

However, when comparing the proposed budget allocation for 2023-24 (Rs 12,543 crore&nbsp;or approx $1.56 billion)and the proposed allocation for 2024-25 (Rs 13,042 crore&nbsp;or approx $1.63 billion), the hike is barely Rs 500 crore&nbsp;or approximately $62 million, which translates to four per cent&nbsp;hike.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
India's <a href="https://twitter.com/hashtag/space?src=hash&amp;ref_src=twsrc%5Etfw">#space</a> ambitions: 
 
Astronaut mission by 2026<a href="https://twitter.com/hashtag/Indian?src=hash&amp;ref_src=twsrc%5Etfw">#Indian</a> Space Station by 2035 
Crewed moon landing by 2040 
 
Proposed for Funding 2024-25: 
₹13,042cr 
Revised Estimate for 2023-24: 
₹11,070cr 
 
Hike is 17.8% <a href="https://twitter.com/hashtag/science?src=hash&amp;ref_src=twsrc%5Etfw">#science</a> <a href="https://twitter.com/hashtag/tech?src=hash&amp;ref_src=twsrc%5Etfw">#tech</a> <a href="https://twitter.com/hashtag/research?src=hash&amp;ref_src=twsrc%5Etfw">#research</a> <a href="https://twitter.com/hashtag/isro?src=hash&amp;ref_src=twsrc%5Etfw">#isro</a> <a href="https://twitter.com/hashtag/BudgetSession?src=hash&amp;ref_src=twsrc%5Etfw">#BudgetSession</a> <a href="https://twitter.com/hashtag/InterimBudget?src=hash&amp;ref_src=twsrc%5Etfw">#InterimBudget</a> <a href="https://t.co/6nzMSvWiZ2">pic.twitter.com/6nzMSvWiZ2</a>
— Sidharth.M.P (@sdhrthmp) <a href="https://twitter.com/sdhrthmp/status/1753019350079197342?ref_src=twsrc%5Etfw">February 1, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

It is noteworthy that the government-run Indian space agency ISRO has been assigned significantly challenging technological tasks by Prime Minister Narendra Modi. In October 2023, Prime Minister Modi set a roadmap for ISRO's future endeavours and even stated specific deadlines for these projects.&nbsp;

Setting up a ‘Bharatiya Antariksha Station’ (Indian Space Station) by 2035 and sending the first Indian to the Moon by 2040, are among the targets. Therefore, it raises questions about whether such a modest proposed hike in funding would be adequate to meet the challenges that have been put forth.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/indian-interim-budget-key-takeaways-from-nirmala-sitharamans-budget-speech-685817">India Budget 2024: ‘Garib, Mahilayen, Yuva, Annadata,’ key takeaways from Sitharaman’s speech</a>

The Department of Space had also been asked to develop a roadmap for Lunar exploration, which would encompass a series of Chandrayaan missions, the development of a Next Generation Launch Vehicle (NGLV), construction of a new launch pad, setting up human-centric laboratories and associated technologies. In addition to this, Prime Minister Modi has also called upon Indian scientists to work towards interplanetary missions such as a Venus orbiter and a Mars lander.&nbsp;

Since 2018, ISRO has been working on executing its maiden human spaceflight mission, under a programme known as 'Gaganyaan'. This is an entirely indigenous effort to ferry Indian astronauts (specially trained Indian Air Force test pilots) to space and bring them back safely. ISRO aims to perform an uncrewed Gaganyaan mission in 2024, another uncrewed mission in 2025 and perform the astronaut mission by early 2026.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/india-interim-budget-2024-this-is-what-is-in-store-for-jobs-in-tourism-infra-and-deep-tech-685930">India Interim Budget 2024: This is what is in store for jobs in tourism, infra, and deep tech</a>

Along with routine launch activities and satellite building for India’s own needs, ISRO would also have to carry out research and development on new technologies and components that would enable them to achieve their future goals. On a war footing, ISRO has to also work on increasing the payload carrying capacity of its existing rocket LVM3, while developing new rockets, and reusable rockets for future requirements.&nbsp;

Over the years, ISRO has been gradually outsourcing routine activities such as building rockets and satellites to private firms or public-private entities, thereby ensuring that ISRO’s resources can be better utilised for the core research and development activities that are aimed at scaling up and meeting future requirements.

For the year 2024-25, the Indian government has proposed an allocation of around $1.63 billion (Rs 13,042 crore) for the Department of Space (DoS), as revealed in the interim budget.

For the year 2024-25, the Indian government has proposed an allocation of around $1.63 billion (Rs 13,042 crore) for the Department of Space (DoS), as revealed in the interim budget. The DoS is an umbrella body, which covers the Indian Space Research Organisation (ISRO), the space sector regulator IN-SPACe (Indian National Space Promotion and Authorization Centre), other related centres, associated academic and research institutions, etc. As per the data shared in the Demand for Grants document, this proposed budget allocation of Rs 13,042 crore for 2024-25 is a step up from the revised estimate of $1.33 billion (Rs 11,070 crore) for 2023-24. While this is an increase of 17.8 per cent, it would take considerable time to know how much of this proposed sum would be allocated eventually. However, when comparing the proposed budget allocation for 2023-24 (Rs 12,543 crore or approx $1.56 billion)and the proposed allocation for 2024-25 (Rs 13,042 crore or approx $1.63 billion), the hike is barely Rs 500 crore or approximately $62 million, which translates to four per cent hike. India's #space ambitions: Astronaut mission by 2026#Indian Space Station by 2035 Crewed moon landing by 2040 Proposed for Funding 2024-25: ₹13,042cr Revised Estimate for 2023-24: ₹11,070cr Hike is 17.8% #science #tech #research #isro #BudgetSession #InterimBudget pic.twitter.com/6nzMSvWiZ2 — Sidharth.M.P (@sdhrthmp) February 1, 2024 × It is noteworthy that the government-run Indian space agency ISRO has been assigned significantly challenging technological tasks by Prime Minister Narendra Modi. In October 2023, Prime Minister Modi set a roadmap for ISRO's future endeavours and even stated specific deadlines for these projects. Setting up a ‘Bharatiya Antariksha Station’ (Indian Space Station) by 2035 and sending the first Indian to the Moon by 2040, are among the targets. Therefore, it raises questions about whether such a modest proposed hike in funding would be adequate to meet the challenges that have been put forth. ALSO READ | India Budget 2024: ‘Garib, Mahilayen, Yuva, Annadata,’ key takeaways from Sitharaman’s speech The Department of Space had also been asked to develop a roadmap for Lunar exploration, which would encompass a series of Chandrayaan missions, the development of a Next Generation Launch Vehicle (NGLV), construction of a new launch pad, setting up human-centric laboratories and associated technologies. In addition to this, Prime Minister Modi has also called upon Indian scientists to work towards interplanetary missions such as a Venus orbiter and a Mars lander. Since 2018, ISRO has been working on executing its maiden human spaceflight mission, under a programme known as 'Gaganyaan'. This is an entirely indigenous effort to ferry Indian astronauts (specially trained Indian Air Force test pilots) to space and bring them back safely. ISRO aims to perform an uncrewed Gaganyaan mission in 2024, another uncrewed mission in 2025 and perform the astronaut mission by early 2026. ALSO READ | India Interim Budget 2024: This is what is in store for jobs in tourism, infra, and deep tech Along with routine launch activities and satellite building for India’s own needs, ISRO would also have to carry out research and development on new technologies and components that would enable them to achieve their future goals. On a war footing, ISRO has to also work on increasing the payload carrying capacity of its existing rocket LVM3, while developing new rockets, and reusable rockets for future requirements. Over the years, ISRO has been gradually outsourcing routine activities such as building rockets and satellites to private firms or public-private entities, thereby ensuring that ISRO’s resources can be better utilised for the core research and development activities that are aimed at scaling up and meeting future requirements.

Budget 2024: India’s Department of Space proposed to receive approx $1.63 billion

Indian Finance Minister Nirmala Sitharaman on Thursday (Feb 1) announced a number of plans to steer the country towards its commitment of net zero target by 2070 as the interim budget&nbsp;2024&nbsp;was tabled in the Parliament.&nbsp;

<h2>‘Viksit Bharat’&nbsp;</h2>

“Our vision for <a href="https://www.wionews.com/india-news/indian-budget-2024-fm-sitharaman-tables-interim-budget-says-working-to-viksit-bharat-by-2047-685816">Viksit (Advanced) Bharat</a> is that of a prosperous Bharat…in harmony with nature and modern infrastructure, and providing opportunities for all to reach their potential,” said Sitharaman, during her speech.&nbsp;

WATCH |&nbsp;FM Nirmala Sitharaman: Next five years will see unprecented development

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/india-budget-2024-fm-nirmala-sitharaman-next-five-years-will-see-unprecented-development-685912/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

This was in line with Prime Minister Narendra Modi's&nbsp;vision for ‘Viksit Bharat’&nbsp;which involves several aspects of development, including economic growth and environmental sustainability.&nbsp;

The Indian finance minister also spoke about how the government will adopt economic policies that foster and sustain growth and facilitate inclusive and sustainable development.&nbsp;

<h2>Focus on green energy</h2>

In the interim Budget, the finance minister has allocated significant resources to bolster the green energy sector including a viability gap funding to harness offshore wind energy, setting up coal gasification and liquefaction projects, and so on.&nbsp;

The gap funding would be used for the development of one gigawatt (GW) of offshore wind energy, which would reduce India’s reliance on fossil fuels.&nbsp;

Additionally, the Indian government also plans to set up coal gasification and liquefaction projects capable of processing 100 metric tonnes (MT) by 2030, which will help reduce imports of natural gas, methanol, and ammonia.

The government has said that it would mandate the blending of Compressed BioGas (CBG) in Compressed Natural Gas (CNG) for transportation and Piped Natural Gas (PNG) for domestic use. These measures are aimed at reducing carbon emissions and improving air quality.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/india-interim-budget-2024-revolutionary-steps-announced-for-these-industries-685893">India Budget 2024: Revolutionary steps announced for solar, dairy and fisheries industries - check details</a>

Financial assistance would be provided for the procurement of biomass aggregation machines to support collection, which could help ramp up the production of bioenergy – a renewable energy derived from biomass, which also contributes to climate change mitigation.&nbsp;

The interim Budget also includes the introduction of a new scheme of bio-manufacturing and bio-foundry to promote green growth. This, Sitharaman said “will provide environment friendly alternatives such as biodegradable polymers, bio-plastics, bio-pharmaceuticals and bio-agri-inputs.”&nbsp;

Additionally, the scheme would also help transform “today’s consumptive manufacturing paradigm to the one based on regenerative principles.”

The government has also announced plans to&nbsp;expand and strengthen the <a href="https://www.wionews.com/india-news/india-interim-budget-govt-to-expand-ev-infra-and-develop-more-entrepreneurship-opportunities-685838">e-vehicle ecosystem</a> by supporting&nbsp;manufacturing and charging infrastructure in the country.&nbsp;

According to&nbsp;Sitharaman,&nbsp;through rooftop solarisation more than 10 million (one crore)&nbsp;households will be enabled to obtain up to <a href="https://www.wionews.com/india-news/india-interim-budget-govt-to-provide-300-units-free-electricity-announces-fm-sitharaman-685911">300 units of free electricity</a> every month.&nbsp;

<h2>What is Blue Economy 2.0?</h2>

During her speech, the Indian finance minister unveiled plans for the launch of Blue Economy 2.0 which is aimed at promoting climate-resilient activities and sustainable development in coastal areas.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/india-interim-budget-2024-this-is-what-is-in-store-for-jobs-in-tourism-infra-and-deep-tech-685930">India Interim Budget 2024: This is what is in store for jobs in tourism, infra, and deep tech</a>

The scheme will focus on “restoration and adaptation measures” and the expansion of coastal aquaculture and mariculture with an integrated and multi-sectoral approach.&nbsp;

Notably, the Blue Economy, which involves sustainable use of ocean resources and coastal areas for economic growth has emerged as a new area of focus in sustainable development.&nbsp;

(With inputs from agencies) 
&nbsp;

Indian Finance Minister Nirmala Sitharaman on Thursday (Feb 1) announced a number of plans to steer the country towards its commitment of net zero target by 2070 as the interim budget 2024 was tabled in the Parliament.

Indian Finance Minister Nirmala Sitharaman on Thursday (Feb 1) announced a number of plans to steer the country towards its commitment of net zero target by 2070 as the interim budget 2024 was tabled in the Parliament. ‘Viksit Bharat’ “Our vision for Viksit (Advanced) Bharat is that of a prosperous Bharat…in harmony with nature and modern infrastructure, and providing opportunities for all to reach their potential,” said Sitharaman, during her speech. WATCH | FM Nirmala Sitharaman: Next five years will see unprecented development This was in line with Prime Minister Narendra Modi's vision for ‘Viksit Bharat’ which involves several aspects of development, including economic growth and environmental sustainability. The Indian finance minister also spoke about how the government will adopt economic policies that foster and sustain growth and facilitate inclusive and sustainable development. Focus on green energy In the interim Budget, the finance minister has allocated significant resources to bolster the green energy sector including a viability gap funding to harness offshore wind energy, setting up coal gasification and liquefaction projects, and so on. The gap funding would be used for the development of one gigawatt (GW) of offshore wind energy, which would reduce India’s reliance on fossil fuels. Additionally, the Indian government also plans to set up coal gasification and liquefaction projects capable of processing 100 metric tonnes (MT) by 2030, which will help reduce imports of natural gas, methanol, and ammonia. The government has said that it would mandate the blending of Compressed BioGas (CBG) in Compressed Natural Gas (CNG) for transportation and Piped Natural Gas (PNG) for domestic use. These measures are aimed at reducing carbon emissions and improving air quality. ALSO READ | India Budget 2024: Revolutionary steps announced for solar, dairy and fisheries industries - check details Financial assistance would be provided for the procurement of biomass aggregation machines to support collection, which could help ramp up the production of bioenergy – a renewable energy derived from biomass, which also contributes to climate change mitigation. The interim Budget also includes the introduction of a new scheme of bio-manufacturing and bio-foundry to promote green growth. This, Sitharaman said “will provide environment friendly alternatives such as biodegradable polymers, bio-plastics, bio-pharmaceuticals and bio-agri-inputs.” Additionally, the scheme would also help transform “today’s consumptive manufacturing paradigm to the one based on regenerative principles.” The government has also announced plans to expand and strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure in the country. According to Sitharaman, through rooftop solarisation more than 10 million (one crore) households will be enabled to obtain up to 300 units of free electricity every month. What is Blue Economy 2.0? During her speech, the Indian finance minister unveiled plans for the launch of Blue Economy 2.0 which is aimed at promoting climate-resilient activities and sustainable development in coastal areas. ALSO READ | India Interim Budget 2024: This is what is in store for jobs in tourism, infra, and deep tech The scheme will focus on “restoration and adaptation measures” and the expansion of coastal aquaculture and mariculture with an integrated and multi-sectoral approach. Notably, the Blue Economy, which involves sustainable use of ocean resources and coastal areas for economic growth has emerged as a new area of focus in sustainable development. (With inputs from agencies)

Budget 2024: Sitharaman unveils India's plan to achieve net zero target by 2070 with focus on green energy

As India eagerly waits for its final budget before the upcoming summer polls to be unveiled, Finance Minister Nirmala Sitharaman is set to present a roadmap that promises to shape the nation's economic landscape. Industry expectations are high, spanning from infrastructure boosts to manufacturing incentives, import duty tweaks, and crucial tax reforms.

Industry expectations from India's budget

In this budget, the Confederation of Indian Industry (CII) urges a 20 per cent increase in infrastructure spending. This bold call, coupled with demands for extended manufacturing incentives and adjustments to import duties, sets the tone for an economic blueprint aiming to propel growth in the face of political transition.

The CII outlines key priorities for India's Budget 2024, emphasising the need for growth triggers. The focus spans across vital sectors, reflecting the aspirations of industries looking for policy measures that will foster economic development.

Key focus points: Infrastructure, manufacturing &amp; import duties

As we delve into the specifics, the Confederation of Indian Industry puts forward a comprehensive set of proposals that address crucial sectors. The Federation of Indian Chambers of Commerce and Industry (FICCI) pitches for a five-year extension of the concessional tax regime for new manufacturing facilities.

The Production Linked Incentive (PLI) scheme, a flagship initiative, is anticipated to expand into labour-intensive sectors such as apparel, toys, footwear, and chemicals. Import tariffs, proposed for a three-tier duty structure, aim to address concerns where input taxes surpass final goods.

In the gems and jewellery sector, there's a call for lower import duties, while the steel industry seeks higher levies on finished steel to counter rising imports from China.

Critical tax reforms and social spending

As the budget unfolds, the CII outlines critical tax reforms, advocating for an increase in the tax exemption limit linked to inflation to boost consumption. There's a plea for consistency in the capital gains tax structure across asset classes, be it debt, equity, or immovable assets.

In the realm of social spending, a call resonates for increased allocation to healthcare and education. The CII urges the combined efforts of federal and state governments to elevate spending on these critical sectors, addressing current spending gaps.

As Finance Minister Nirmala Sitharaman reveals India's budgetary roadmap, industries across the spectrum eagerly await the details that will shape the economic trajectory of the nation.

As India eagerly waits for its final budget before the upcoming summer polls to be unveiled, Finance Minister Nirmala Sitharaman is set to present a roadmap that promises to shape the nation's economic landscape.

As India eagerly waits for its final budget before the upcoming summer polls to be unveiled, Finance Minister Nirmala Sitharaman is set to present a roadmap that promises to shape the nation's economic landscape. Industry expectations are high, spanning from infrastructure boosts to manufacturing incentives, import duty tweaks, and crucial tax reforms. Industry expectations from India's budget In this budget, the Confederation of Indian Industry (CII) urges a 20 per cent increase in infrastructure spending. This bold call, coupled with demands for extended manufacturing incentives and adjustments to import duties, sets the tone for an economic blueprint aiming to propel growth in the face of political transition. The CII outlines key priorities for India's Budget 2024, emphasising the need for growth triggers. The focus spans across vital sectors, reflecting the aspirations of industries looking for policy measures that will foster economic development. Key focus points: Infrastructure, manufacturing & import duties As we delve into the specifics, the Confederation of Indian Industry puts forward a comprehensive set of proposals that address crucial sectors. The Federation of Indian Chambers of Commerce and Industry (FICCI) pitches for a five-year extension of the concessional tax regime for new manufacturing facilities. The Production Linked Incentive (PLI) scheme, a flagship initiative, is anticipated to expand into labour-intensive sectors such as apparel, toys, footwear, and chemicals. Import tariffs, proposed for a three-tier duty structure, aim to address concerns where input taxes surpass final goods. In the gems and jewellery sector, there's a call for lower import duties, while the steel industry seeks higher levies on finished steel to counter rising imports from China. Critical tax reforms and social spending As the budget unfolds, the CII outlines critical tax reforms, advocating for an increase in the tax exemption limit linked to inflation to boost consumption. There's a plea for consistency in the capital gains tax structure across asset classes, be it debt, equity, or immovable assets. In the realm of social spending, a call resonates for increased allocation to healthcare and education. The CII urges the combined efforts of federal and state governments to elevate spending on these critical sectors, addressing current spending gaps. As Finance Minister Nirmala Sitharaman reveals India's budgetary roadmap, industries across the spectrum eagerly await the details that will shape the economic trajectory of the nation.

Budget 2024: What do industries expect?

Ahead of the upcoming general elections, Indian Prime Minister Narendra Modi's government unveiled a budget that steered clear of populist measures and focused on fiscal consolidation to attract investors.

Tax policies remained unchanged, and major subsidies on essential items like food, fertilisers, and fuel were slashed by 8 per cent, signalling a commitment to financial prudence.

Shilan Shah from Capital Economics noted, "This is an indication that the ruling BJP (Bharatiya Janata Party) is feeling fairly confident about securing another big victory in the upcoming general election."

Finance Minister Nirmala Sitharaman announced a sharp reduction in the budget gap for 2024-'25 to 5.1 per cent of GDP, while revising the current fiscal year's gap down to 5.8 per cent.

"In this budget, capital expenditure has been raised to a historic high of 11.11 trillion rupees ($133.90 billion), while keeping the fiscal deficit in control. To put it in the terms of economists, this is a sweet spot,” Modi said.

The fiscal consolidation is anticipated to bolster India's case for a higher sovereign credit rating, currently rated at BBB- by S&amp;P and Fitch, and Baa3 by Moody's.

Reuters cited Sachchidanand Shukla, an economist at Larsen &amp; Toubro, who said, "The interim budget effectively juggled the need to support growth while signalling continued fiscal consolidation. This will be reassuring for investors and rating agencies alike."

Despite the overall positive tone, concerns linger about weak spots in the economy. While India is expected to achieve a remarkable 7.3 per cent economic growth for the financial year ending March 31, 2024, consumption, constituting nearly 60 per cent of GDP, remains sluggish, growing just over 4 per cent.

Garima Kapoor, economist at Elara Capital, told Reuters, "The budget lacks consumption triggers. Thus, it is a departure from the previous pre-election vote on accounts."

Finance Minister Sitharaman addressed the need for affordable housing, pledging to build 20 million houses in the next five years, in addition to the 30 million already constructed. The budget also hinted at a new housing scheme for the middle class, although specific details were not provided.

The government's borrowing plan of 14.13 trillion Indian rupees ($170.33 billion) from the bond markets to fund its fiscal deficit came in lower than expectations. While the budget had a limited impact on equity and currency markets, the better-than-expected fiscal deficit target and lower borrowing estimates boosted gains in the bond market.

The benchmark 10-year bond yield dropped to over six-month lows, currently standing at 7.0467 per cent, and the Indian rupee, initially gaining ground, retreated after briefly rising to 82.9325 against the US dollar.

(With inputs from Reuters)

Ahead of the upcoming general elections, Indian Prime Minister Narendra Modi's government unveiled a budget that steered clear of populist measures and focused on fiscal consolidation to attract investors.

Ahead of the upcoming general elections, Indian Prime Minister Narendra Modi's government unveiled a budget that steered clear of populist measures and focused on fiscal consolidation to attract investors. Tax policies remained unchanged, and major subsidies on essential items like food, fertilisers, and fuel were slashed by 8 per cent, signalling a commitment to financial prudence. Shilan Shah from Capital Economics noted, "This is an indication that the ruling BJP (Bharatiya Janata Party) is feeling fairly confident about securing another big victory in the upcoming general election." Finance Minister Nirmala Sitharaman announced a sharp reduction in the budget gap for 2024-'25 to 5.1 per cent of GDP, while revising the current fiscal year's gap down to 5.8 per cent. "In this budget, capital expenditure has been raised to a historic high of 11.11 trillion rupees ($133.90 billion), while keeping the fiscal deficit in control. To put it in the terms of economists, this is a sweet spot,” Modi said. The fiscal consolidation is anticipated to bolster India's case for a higher sovereign credit rating, currently rated at BBB- by S&P and Fitch, and Baa3 by Moody's. Reuters cited Sachchidanand Shukla, an economist at Larsen & Toubro, who said, "The interim budget effectively juggled the need to support growth while signalling continued fiscal consolidation. This will be reassuring for investors and rating agencies alike." Despite the overall positive tone, concerns linger about weak spots in the economy. While India is expected to achieve a remarkable 7.3 per cent economic growth for the financial year ending March 31, 2024, consumption, constituting nearly 60 per cent of GDP, remains sluggish, growing just over 4 per cent. Garima Kapoor, economist at Elara Capital, told Reuters, "The budget lacks consumption triggers. Thus, it is a departure from the previous pre-election vote on accounts." Finance Minister Sitharaman addressed the need for affordable housing, pledging to build 20 million houses in the next five years, in addition to the 30 million already constructed. The budget also hinted at a new housing scheme for the middle class, although specific details were not provided. The government's borrowing plan of 14.13 trillion Indian rupees ($170.33 billion) from the bond markets to fund its fiscal deficit came in lower than expectations. While the budget had a limited impact on equity and currency markets, the better-than-expected fiscal deficit target and lower borrowing estimates boosted gains in the bond market. The benchmark 10-year bond yield dropped to over six-month lows, currently standing at 7.0467 per cent, and the Indian rupee, initially gaining ground, retreated after briefly rising to 82.9325 against the US dollar. (With inputs from Reuters)

India's Budget 2024: Modi government prioritises fiscal discipline over populism

<o:p></o:p>In a strategic move aimed at sustaining India's position as one of the world's fastest-growing major economies, Finance Minister Nirmala Sitharaman announced a record-breaking capital expenditure (capex) of 11.11 trillion rupees (approximately $134 billion) for infrastructure creation in the fiscal year beginning on April 1, 2024.<o:p></o:p>

The proposed capex is 11.1 per cent higher than the current fiscal year's allocation of little over 10 lakh core rupees (approximately $120 billion).<o:p></o:p>

Sitharaman highlighted that the federal government's capital expenditure as a percentage of GDP is anticipated to rise from 3.3 per cent in 2023-'24 to 3.4 per cent in the upcoming financial year.<o:p></o:p>

Reuters quoted Ranen Banerjee, Partner and Leader for Economic Advisory at PwC India, as saying, "The additional allocation of INR 1.1 trillion for capex, taking it to INR 11.1 trillion, should provide continuity in the pace of infra creation and in bringing down the logistics cost in the country progressively."<o:p></o:p>

&nbsp;The allocation is expected to contribute to the ongoing efforts to enhance infrastructure, reduce logistics costs, and fuel economic development.<o:p></o:p>

While the capex increase is notable, the year-on-year rise is lower compared to the current fiscal year. Sitharaman also announced government spending of 1.3 trillion rupees (approximately $15.85 billion) in the form of 50-year loans to states, aimed at boosting their capital investments. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a strategic move aimed at sustaining India's position as one of the world's fastest-growing major economies, Finance Minister Nirmala Sitharaman announced a record-breaking capital expenditure (capex) of 11.

In a strategic move aimed at sustaining India's position as one of the world's fastest-growing major economies, Finance Minister Nirmala Sitharaman announced a record-breaking capital expenditure (capex) of 11.11 trillion rupees (approximately $134 billion) for infrastructure creation in the fiscal year beginning on April 1, 2024. The proposed capex is 11.1 per cent higher than the current fiscal year's allocation of little over 10 lakh core rupees (approximately $120 billion). Sitharaman highlighted that the federal government's capital expenditure as a percentage of GDP is anticipated to rise from 3.3 per cent in 2023-'24 to 3.4 per cent in the upcoming financial year. Reuters quoted Ranen Banerjee, Partner and Leader for Economic Advisory at PwC India, as saying, "The additional allocation of INR 1.1 trillion for capex, taking it to INR 11.1 trillion, should provide continuity in the pace of infra creation and in bringing down the logistics cost in the country progressively." The allocation is expected to contribute to the ongoing efforts to enhance infrastructure, reduce logistics costs, and fuel economic development. While the capex increase is notable, the year-on-year rise is lower compared to the current fiscal year. Sitharaman also announced government spending of 1.3 trillion rupees (approximately $15.85 billion) in the form of 50-year loans to states, aimed at boosting their capital investments. (With inputs from Reuters)

India Budget 2024: Capex raised to over $132 bn  for 2024-'25

As India eagerly anticipates the Interim Budget for 2024-25, Finance Minister Nirmala Sitharaman is poised to present a preliminary view of the government's broad plan for the upcoming fiscal year. With a keen focus on fiscal prudence and a commitment to capital expenditure, the budget is expected to address key sectors, providing a glimpse into the nation's economic roadmap.

Expectations from India's Budget

The Interim Budget, required for the authorisation of expenditures until a new government is formed post-elections, is set to play a crucial role in outlining the trajectory of India's economic policies. The latest economic report pegs India's growth rate at an impressive 7 per cent, a figure that the Finance Minister is expected to highlight as a testament to the country's growth prospects.

The budget's central focus is anticipated to be on the government's fiscal roadmap. For the current fiscal year, the government is expected to assert that it is on track to achieve the deficit target of 5.9 per cent of GDP. This optimistic outlook is attributed to robust direct tax collections, better-than-expected non-tax revenues, and expenditure savings by some ministries. The target for the upcoming fiscal year is likely to be set lower at 5.4 per cent of GDP.

Fiscal prudence or popular schemes?

The fiscal deficit, the gap between government revenue and expenditure, will be a key metric attracting attention from both domestic and international businesses and investors. Promising aggressive fiscal consolidation, the government aims to cut its budget deficit to 4.5 per cent of GDP by 2025-2026, requiring a significant reduction of 1.4 percentage points over the next two years. However, the feasibility of such drastic fiscal consolidation remains uncertain, considering potential impacts on domestic consumption.

While the government may steer clear of drastic fiscal measures, the emphasis on capital expenditure is expected to persist. With capital spending projected to increase by 37 per cent for the current fiscal year, the budget for capital expenditures is likely to see a moderate expansion of 12-15 per cent for the next year. This strategic move aims to sustain economic growth and development.

Priority Sectors: Farmers, women, the poor, and young people

In line with the government's commitment to welfare, the budget is anticipated to allocate more funding to ongoing welfare programs. Programs like PM Kisan and MNREGA are expected to receive increased funding to bolster the rural and agricultural sectors, providing support to those in need.

As India eagerly anticipates the Interim Budget for 2024-25, Finance Minister Nirmala Sitharaman is poised to present a preliminary view of the government's broad plan for the upcoming fiscal year.

As India eagerly anticipates the Interim Budget for 2024-25, Finance Minister Nirmala Sitharaman is poised to present a preliminary view of the government's broad plan for the upcoming fiscal year. With a keen focus on fiscal prudence and a commitment to capital expenditure, the budget is expected to address key sectors, providing a glimpse into the nation's economic roadmap. Expectations from India's Budget The Interim Budget, required for the authorisation of expenditures until a new government is formed post-elections, is set to play a crucial role in outlining the trajectory of India's economic policies. The latest economic report pegs India's growth rate at an impressive 7 per cent, a figure that the Finance Minister is expected to highlight as a testament to the country's growth prospects. The budget's central focus is anticipated to be on the government's fiscal roadmap. For the current fiscal year, the government is expected to assert that it is on track to achieve the deficit target of 5.9 per cent of GDP. This optimistic outlook is attributed to robust direct tax collections, better-than-expected non-tax revenues, and expenditure savings by some ministries. The target for the upcoming fiscal year is likely to be set lower at 5.4 per cent of GDP. Fiscal prudence or popular schemes? The fiscal deficit, the gap between government revenue and expenditure, will be a key metric attracting attention from both domestic and international businesses and investors. Promising aggressive fiscal consolidation, the government aims to cut its budget deficit to 4.5 per cent of GDP by 2025-2026, requiring a significant reduction of 1.4 percentage points over the next two years. However, the feasibility of such drastic fiscal consolidation remains uncertain, considering potential impacts on domestic consumption. While the government may steer clear of drastic fiscal measures, the emphasis on capital expenditure is expected to persist. With capital spending projected to increase by 37 per cent for the current fiscal year, the budget for capital expenditures is likely to see a moderate expansion of 12-15 per cent for the next year. This strategic move aims to sustain economic growth and development. Priority Sectors: Farmers, women, the poor, and young people In line with the government's commitment to welfare, the budget is anticipated to allocate more funding to ongoing welfare programs. Programs like PM Kisan and MNREGA are expected to receive increased funding to bolster the rural and agricultural sectors, providing support to those in need.

Budget 2024 Preview: Nirmala Sitharaman set to unveil economic roadmap

As the clock ticks down, India anticipates the unveiling of the Modi government's interim budget, a pivotal financial roadmap that Finance Minister Nirmala Sitharaman is set to present just before the country heads to polls in April-May. The interim budget, a parliamentary practice in India, is expected to offer insights into the government's financial priorities, with a full-fledged budget scheduled post-elections in July.

India's unveiling of interim budget before elections

In a few hours, Finance Minister Nirmala Sitharaman will present the final budget of Narendra Modi Government 2.0, providing a comprehensive outlook before India enters the electoral arena. This interim budget, in effect from April 1 at the start of the financial year until the presentation of the new budget, is a crucial precursor to the full budget that will shape India's economic trajectory.

While Sitharaman has hinted at no major announcements in this interim budget, it is expected to draw attention to balancing the fiscal deficit and investments in significant projects. India, the bright spot in the global economy, is set to lower its budget deficit by at least 0.5 percentage points in 2024-25, coupled with a potential 20 per cent increase in capital spending, predominantly in infrastructure.

Global watch on India's economic landscape

Despite the interim nature of the budget, the world is keenly watching India's financial moves. With the country growing at over 7 per cent, India stands out in the global economic arena. Setting its sights on becoming a $7 trillion economy by 2030, India's strong macroeconomic fundamentals attract global attention.

Given the upcoming elections, the government is likely to focus on key constituencies – farmers, women, and the poor. There are expectations of doubling the annual payout to landowning female farmers, a significant vote bank. The extension of the free food grains program for the next five years and the flagship federal housing scheme for low-cost loans might also be on the cards.

Anticipated fiscal moves and social programs

In terms of fiscal moves, India aims to balance the books while stimulating growth. The interim budget could be a delicate dance between fiscal prudence and strategic investments. As the budget unfolds, it is expected to offer insights into the government's vision for India's economic future.

As the clock ticks down, India anticipates the unveiling of the Modi government's interim budget, a pivotal financial roadmap that Finance Minister Nirmala Sitharaman is set to present just before the country heads to polls in April-May.

As the clock ticks down, India anticipates the unveiling of the Modi government's interim budget, a pivotal financial roadmap that Finance Minister Nirmala Sitharaman is set to present just before the country heads to polls in April-May. The interim budget, a parliamentary practice in India, is expected to offer insights into the government's financial priorities, with a full-fledged budget scheduled post-elections in July. India's unveiling of interim budget before elections In a few hours, Finance Minister Nirmala Sitharaman will present the final budget of Narendra Modi Government 2.0, providing a comprehensive outlook before India enters the electoral arena. This interim budget, in effect from April 1 at the start of the financial year until the presentation of the new budget, is a crucial precursor to the full budget that will shape India's economic trajectory. While Sitharaman has hinted at no major announcements in this interim budget, it is expected to draw attention to balancing the fiscal deficit and investments in significant projects. India, the bright spot in the global economy, is set to lower its budget deficit by at least 0.5 percentage points in 2024-25, coupled with a potential 20 per cent increase in capital spending, predominantly in infrastructure. Global watch on India's economic landscape Despite the interim nature of the budget, the world is keenly watching India's financial moves. With the country growing at over 7 per cent, India stands out in the global economic arena. Setting its sights on becoming a $7 trillion economy by 2030, India's strong macroeconomic fundamentals attract global attention. Given the upcoming elections, the government is likely to focus on key constituencies – farmers, women, and the poor. There are expectations of doubling the annual payout to landowning female farmers, a significant vote bank. The extension of the free food grains program for the next five years and the flagship federal housing scheme for low-cost loans might also be on the cards. Anticipated fiscal moves and social programs In terms of fiscal moves, India aims to balance the books while stimulating growth. The interim budget could be a delicate dance between fiscal prudence and strategic investments. As the budget unfolds, it is expected to offer insights into the government's vision for India's economic future.

Budget 2024: A look at India's interim financial outlook

India's central bank - the Reserve Bank of India (RBI) - on Wednesday (Jan 31) ordered Paytm Payments Bank (the banking arm of Paytm) to stop accepting fresh deposits in its accounts or popular wallets from March.

India's central bank - the Reserve Bank of India (RBI) - on Wednesday (Jan 31) ordered Paytm Payments Bank (the banking arm of Paytm) to stop accepting fresh deposits in its accounts or popular wallets from March. In a statement, the RBI said that Paytm Payments Bank will not be allowed to take further deposits in any customer accounts after Feb 29, and no credit transactions will be allowed either, including via wallets. Paytm Payments Bank is an associate of One 97 Communications. On Thursday, Paytm said in a statement that it will take steps immediately to comply with the central bank's directions. One 97 will cease working with Paytm Payments Bank and start working only with other banks, it said. The RBI's decision is a major blow to Paytm - which is one of India's largest payment firms. What is Paytm Payments Bank? Founded in 2017, Paytm Payments Bank is 49 per cent owned by Paytm and 51 per cent owned by Paytm's Chief Executive Officer (CEO) and founder Vijay Shekhar Sharma. The payments bank acts as a key banking partner for Paytm. For example, funds deposited in Paytm's popular digital wallets are held with Paytm Payments Bank. The payments bank may accept small deposits of up to $2,400 (around Rs 2,00,000) but is not allowed to lend. Deposits must be parked in government securities or deposits at other banks. Also read | Paytm lays off more than 1,000 employees across various departments: Report Citing Macquarie Capital, the news agency Reuters reported that the bank houses all of the parent's 330 million wallet accounts, meaning money held in them is deposited with the payments bank. The actions taken by the RBI are under a provision of banking regulations that allow the regulator to give directions to a bank in the interest of depositors. What led to the RBI's action? In its statement, the RBI said on Wednesday, "The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action." Issuing directions to the bank, the RBI said, "No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after Feb 29, 2024, other than any interest, cashback, or refunds which may be credited anytime." "Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance," it added. In March last year too, Paytm Payments Bank was restricted from adding customers but continued doing business with existing customers. However, it has now been told to wind down most of its businesses this month. Paytm shares plunge post RBI's action Agreeing to comply with the RBI's directions, Paytm said on Thursday it expected a worse-case impact of Rs 3 billion to Rs 5 billion to its annual earnings before interest, tax, depreciation, and amortisation (EBITDA). Following the central bank's move, Paytm shares plunged the daily limit of 20 per cent on Thursday which could be a precursor to its license being cancelled, a source told Reuters. The source said that RBI's action (against Paytm) followed years of non-compliance with central bank rules, including on customer due diligence, use of funds, and technology infrastructure. Also watch | Paytm Payments Bank in limbo: India's RBI hits Paytm Payments Bank × Paytm's stock is trading at less than one-third of its listing price of Rs 1,950, despite having climbed 20 per cent last year. With Thursday's plunge, the shares are down more than 4 per cent this year, Reuters reported. Shekhar Sharma lost about $233 million on Thursday as the shares cratered. Paytm was founded by Sharma in 2010 and rose to fame after Uber made it a quick payment option in India. Paytm saw an unprecedented demand in 2016 after the Modi government introduced demonetisation, which led to a major shift from cash to digital payments. The impact So what would be the impact of RBI's decision? According to Jefferies, Paytm's business impact will largely come from reputation concerns arising from governance or compliance, and the path to resolution will be from better compliance with regulations. Jefferies further downgraded Paytm's stock to "underperform" from "buy", slashing its target price to Rs 500 from Rs 1,050 and saying regulatory and reputational issues could affect profitability. Meanwhile, JPMorgan cut Paytm's rating to "underweight" from "neutral", lowering its target price by one-third to Rs 600. "While we don't believe that the order is an end of the road for Paytm, it materially impacts near-term growth, profitability forces another pivot and necessitates it to restore the credibility of the durability of the business," JPMorgan analysts said. (With inputs from agencies)

Explained | RBI orders Paytm’s banking arm to stop fresh business. What happens next?

In the upcoming fiscal year, various budget proposals are poised to stimulate economic growth and generate employment in key sectors such as tourism, infrastructure, ports, construction, and technology. The government's commitment to comprehensive development and global branding of iconic tourist centres signals a strategic approach to tap into the vast opportunities within the tourism industry.

Finance Minister Nirmala Sitharaman emphasised the encouragement of states to undertake the holistic development of iconic tourist destinations. The focus includes global-scale branding, marketing initiatives, and the exploration of opportunities in spiritual tourism.&nbsp;

"States will be encouraged to take up comprehensive development of iconic tourist centres, branding and marketing them at global scale... Tourism, including spiritual tourism, has tremendous opportunities for local entrepreneurship," Sitharaman said in her budget speech.

Amid the pandemic, there has been a notable surge in domestic tourism. To capitalise on this trend, the budget proposes projects for port connectivity, tourism infrastructure, and amenities, particularly in island regions such as Lakshadweep. These endeavours aim not only to boost tourism but also to create additional employment opportunities.

"To address the emerging fervour for domestic tourism, projects for port connectivity, tourism infrastructure and amenities will be taken up on our islands, including Lakshadweep. This will help in generating employment also," the finance minister said.

<a href="https://www.wionews.com/india-news/budget-2024-amrit-peedhi-to-kartavya-kaal-all-new-hindi-phrases-used-by-nirmala-sitharaman-in-her-speech-685883">Also read |&nbsp;Budget 2024: 'Amrit Peedhi' to 'Kartavya Kaal', all new Hindi phrases used by Nirmala Sitharaman in her speech</a>

<h2>Infrastructure boost</h2>

The budget outlines a significant 11 per cent increase in infrastructure capital expenditure (capex) for the fiscal year 2025, amounting to ₹11.11 trillion. This substantial investment is expected to generate both formal and informal jobs, providing a crucial stimulus to the economy.

Industry experts highlight the positive effects on the hospitality sector, foreseeing increased employment due to a rise in religious and business tourism.

Additionally, the construction sector is expected to benefit from the ambitious construction of two crore houses under the PM Awas Yojana (Grameen).

<h2>Technological advancements</h2>

The budget's forward-looking approach includes substantial investments in sunrise sectors and deep tech.

Also watch |&nbsp;Budget 2024: Government working on all-round, all-pervasive, all-inclusive growth, says Sitharaman

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/budget-2024-government-working-on-all-round-all-pervasive-all-inclusive-growth-says-sitharaman-685913/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The establishment of a ₹1 lakh crore corpus with a 50-year interest-free loan is particularly noteworthy. This corpus is designed to provide long-term financing, encouraging the private sector to scale up research and innovation in emerging technological domains.

"For our tech-savvy youth, this will be a golden era. A corpus of&nbsp;₹1 lakh crore will be established with a 50-year interest-free loan. The corpus will provide long-term financing or refinancing with long tenures and low or nil interest rates. This will encourage the private sector to scale up research and innovation significantly in sunrise domains," the finance minister said.

(With inputs from agencies)

In the upcoming fiscal year, various budget proposals are poised to stimulate economic growth and generate employment in key sectors such as tourism, infrastructure, ports, construction, and technology.

In the upcoming fiscal year, various budget proposals are poised to stimulate economic growth and generate employment in key sectors such as tourism, infrastructure, ports, construction, and technology. The government's commitment to comprehensive development and global branding of iconic tourist centres signals a strategic approach to tap into the vast opportunities within the tourism industry. Finance Minister Nirmala Sitharaman emphasised the encouragement of states to undertake the holistic development of iconic tourist destinations. The focus includes global-scale branding, marketing initiatives, and the exploration of opportunities in spiritual tourism. "States will be encouraged to take up comprehensive development of iconic tourist centres, branding and marketing them at global scale... Tourism, including spiritual tourism, has tremendous opportunities for local entrepreneurship," Sitharaman said in her budget speech. Amid the pandemic, there has been a notable surge in domestic tourism. To capitalise on this trend, the budget proposes projects for port connectivity, tourism infrastructure, and amenities, particularly in island regions such as Lakshadweep. These endeavours aim not only to boost tourism but also to create additional employment opportunities. "To address the emerging fervour for domestic tourism, projects for port connectivity, tourism infrastructure and amenities will be taken up on our islands, including Lakshadweep. This will help in generating employment also," the finance minister said. Also read | Budget 2024: 'Amrit Peedhi' to 'Kartavya Kaal', all new Hindi phrases used by Nirmala Sitharaman in her speech Infrastructure boost The budget outlines a significant 11 per cent increase in infrastructure capital expenditure (capex) for the fiscal year 2025, amounting to ₹11.11 trillion. This substantial investment is expected to generate both formal and informal jobs, providing a crucial stimulus to the economy. Industry experts highlight the positive effects on the hospitality sector, foreseeing increased employment due to a rise in religious and business tourism. Additionally, the construction sector is expected to benefit from the ambitious construction of two crore houses under the PM Awas Yojana (Grameen). Technological advancements The budget's forward-looking approach includes substantial investments in sunrise sectors and deep tech. Also watch | Budget 2024: Government working on all-round, all-pervasive, all-inclusive growth, says Sitharaman The establishment of a ₹1 lakh crore corpus with a 50-year interest-free loan is particularly noteworthy. This corpus is designed to provide long-term financing, encouraging the private sector to scale up research and innovation in emerging technological domains. "For our tech-savvy youth, this will be a golden era. A corpus of ₹1 lakh crore will be established with a 50-year interest-free loan. The corpus will provide long-term financing or refinancing with long tenures and low or nil interest rates. This will encourage the private sector to scale up research and innovation significantly in sunrise domains," the finance minister said. (With inputs from agencies)

India Interim Budget 2024: This is what is in store for jobs in tourism, infra, and deep tech

Indian Finance Minister Nirmala Sitharaman on Thursday (Feb 1) presented the Interim Budget for the fiscal year 2024, without announcing any major policies or changes in the taxation structure.&nbsp;

During her shortest speech of 58 minutes, Sitharaman underlined the government's commitment to stability in taxation and a strategic approach to encourage economic growth.&nbsp;

The interim budget aims to take care of the fiscal needs of the intervening period until a government is formed after the general elections. A full budget will be presented probably in July.&nbsp;

But this Interim Budget doesn't include anything major, unlike how it was in 2019 when the Bharatiya Janata Party (BJP)-led government had presented a budget ahead of Lok Sabha polls.&nbsp;

This budget hints at the confidence of the Modi administration ahead of the upcoming polls, as they seem to be certain of scoring a victory in the elections, after which a full budget will be presented.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/india-news/india-budget-2024-for-railways-fm-sitharaman-says-3-major-economic-corridor-programmes-to-be-implemented-685834">India Budget 2024: For railways, FM Sitharaman says 3 major economic corridor programmes to be implemented</a>&nbsp;

<h2>What were the major announcements of the Interim Budget 2019?&nbsp;</h2>

In 2019, the interim budget was tabled by then finance minister Piyush Goyal, who had given the additional charge of the finance ministry due to Arun Jaitley's ill health.&nbsp;

Farmers&nbsp; 
Usually, the government doesn't announce anything major in interim budgets, but Goyal introduced some crucial changes in 2019, including an extension to the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme.&nbsp;

He had said that 120 million small and marginal farmers to be provided with an assured yearly income of Rs 6000 per annum under the scheme. "Our government is launching a historic programme PM-KISAN with an outlay of Rs 75,000 crore for the FY 2019-20 and Rs 20,000 crore in the Revised Estimates of FY 2018-19," Goyal had said.&nbsp;

Assured MSP of minimum 50 per cent to all 22 crops, interest subvention doubled in last five years, and announcements for soil health card, neem-coated urea emerged as a game changer in the farm sector.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/india-news/indian-interim-budget-key-takeaways-from-nirmala-sitharamans-budget-speech-685817">India interim Budget 2024: Key takeaways from Nirmala Sitharaman's speech</a>&nbsp;

Labour&nbsp; 
For labourers, the Pradhan Mantri Shram Yogi Maandhan scheme was announced to ensure a fixed monthly pension to 100 million unorganised sector workers. Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month was also announced.&nbsp;

Health&nbsp; 
Goyal had said that the 22nd All India Institute of Medical Sciences (AIIMS) was to be set up in the north-western state of Haryana.&nbsp;

Direct Tax proposals&nbsp; 
Income up to Rs 5 lakh exempted from Income Tax and more than Rs 23,000 crore tax relief to three million middle-class taxpayers.&nbsp;

Defence&nbsp; 
The defence budget crossed Rs 3,00,000 crore for the first time ever.&nbsp;

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Railways&nbsp; 
Capital support of Rs 64,587 crore was proposed in 2019-20 (BE) from the budget and overall capital expenditure programme to be of Rs 1,58,658 crore.&nbsp;

Poor and Backward Classes 
For the underprivileged class, Goyal had said that the "first right on the resources of the country is that of the poor". A 25 per cent additional seats in educational institutions to meet the 10 per cent reservation for the poor.&nbsp;

Entertainment Industry&nbsp; 
Goyal had announced that Indian filmmakers will get access to single window clearance as well for ease of shooting films.&nbsp;

Digital Villages 
The government had said that it would make 100,000 villages into Digital Villages over the next five years.&nbsp;

(With inputs from agencies)&nbsp;

Indian Finance Minister Nirmala Sitharaman on Thursday (Feb 1) presented the Interim Budget for the fiscal year 2024, without announcing any major policies or changes in the taxation structure.

Indian Finance Minister Nirmala Sitharaman on Thursday (Feb 1) presented the Interim Budget for the fiscal year 2024, without announcing any major policies or changes in the taxation structure. During her shortest speech of 58 minutes, Sitharaman underlined the government's commitment to stability in taxation and a strategic approach to encourage economic growth. The interim budget aims to take care of the fiscal needs of the intervening period until a government is formed after the general elections. A full budget will be presented probably in July. But this Interim Budget doesn't include anything major, unlike how it was in 2019 when the Bharatiya Janata Party (BJP)-led government had presented a budget ahead of Lok Sabha polls. This budget hints at the confidence of the Modi administration ahead of the upcoming polls, as they seem to be certain of scoring a victory in the elections, after which a full budget will be presented. Also read: India Budget 2024: For railways, FM Sitharaman says 3 major economic corridor programmes to be implemented What were the major announcements of the Interim Budget 2019? In 2019, the interim budget was tabled by then finance minister Piyush Goyal, who had given the additional charge of the finance ministry due to Arun Jaitley's ill health. Farmers Usually, the government doesn't announce anything major in interim budgets, but Goyal introduced some crucial changes in 2019, including an extension to the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme. He had said that 120 million small and marginal farmers to be provided with an assured yearly income of Rs 6000 per annum under the scheme. "Our government is launching a historic programme PM-KISAN with an outlay of Rs 75,000 crore for the FY 2019-20 and Rs 20,000 crore in the Revised Estimates of FY 2018-19," Goyal had said. Assured MSP of minimum 50 per cent to all 22 crops, interest subvention doubled in last five years, and announcements for soil health card, neem-coated urea emerged as a game changer in the farm sector. Also read | India interim Budget 2024: Key takeaways from Nirmala Sitharaman's speech Labour For labourers, the Pradhan Mantri Shram Yogi Maandhan scheme was announced to ensure a fixed monthly pension to 100 million unorganised sector workers. Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month was also announced. Health Goyal had said that the 22nd All India Institute of Medical Sciences (AIIMS) was to be set up in the north-western state of Haryana. Direct Tax proposals Income up to Rs 5 lakh exempted from Income Tax and more than Rs 23,000 crore tax relief to three million middle-class taxpayers. Defence The defence budget crossed Rs 3,00,000 crore for the first time ever. × Railways Capital support of Rs 64,587 crore was proposed in 2019-20 (BE) from the budget and overall capital expenditure programme to be of Rs 1,58,658 crore. Poor and Backward Classes For the underprivileged class, Goyal had said that the "first right on the resources of the country is that of the poor". A 25 per cent additional seats in educational institutions to meet the 10 per cent reservation for the poor. Entertainment Industry Goyal had announced that Indian filmmakers will get access to single window clearance as well for ease of shooting films. Digital Villages The government had said that it would make 100,000 villages into Digital Villages over the next five years. (With inputs from agencies)

Election year vs Election year: How this year's budget is different from 2019 Interim Budget

Finance Minister Nirmala Sitharaman on Thursday (Feb 1) announced that a corpus of&nbsp;₹1 Lakh Crore (or over $12 billion) will be established with provision for a&nbsp;'50-year interest-free loan to provide long-term financing with no or less interest rates'.&nbsp;

"For our tech-savvy youth, this will be a golden era. A corpus of rupees one lakh crore will be established with fifty-year interest-free loan. The corpus will provide long-term financing or refinancing with long tenors and low or nil interest rates," Sitharaman said.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/budget-2024-a-look-at-indias-interim-financial-outlook-685663">Budget 2024: A look at India's interim financial outlook</a>

The finance minister reasoned that this would "encourage the private sector to scale up research and innovation significantly in sunrise domains. We need to have programmes that combine the powers of our youth and technology."

The Indian finance minister also mentioned that a new scheme will be launched "for strengthening deep-tech technologies for defence purposes and expediting&nbsp;atmanirbharta&nbsp;(or self-sufficiency)". Sitharaman did not specify the details of the scheme.

<h2>Over 25 million people out of multidimensional poverty in last decade: Sitharaman</h2>

Finance Minister Nirmala Sitharaman presented her sixth consecutive budget, at par with the record set by the former prime minister Morarji Desai who also held finance portfolio in the 1960s.&nbsp;

Presenting the interim Budget 2024-25 ahead of the general elections in the spring, Sitaraman said that Prime Minister Narendra Modi's administration is making efforts to make India a developed country by 2047.&nbsp;

Also watch |&nbsp;India Budget 2024: PM Modi hails budget as 'inclusive', says 'this is a budget for India's future'

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Poor, women, youth and farmers are four castes for the government, she added.

India remains the fastest-growing major economy in the world and in the coming years will become the world’s third-largest economy with a $5 trillion Gross Domestic Product.&nbsp;

Hailing the poverty alleviation steps, Sitharaman said that 250 million (or 25 crore) people came out of multi-dimensional poverty since 2014 when Prime Minister Narendra Modi-led Bharatiya Janata Party first came to power in New Delhi's corridors of power to govern the world's largest democracy.&nbsp;

(With inputs from agencies)

&nbsp;

Finance Minister Nirmala Sitharaman on Thursday (Feb 1) announced that a corpus of ₹1 Lakh Crore (or over $12 billion) will be established with provision for a '50-year interest-free loan to provide long-term financing with no or less interest rates'.

Finance Minister Nirmala Sitharaman on Thursday (Feb 1) announced that a corpus of ₹1 Lakh Crore (or over $12 billion) will be established with provision for a '50-year interest-free loan to provide long-term financing with no or less interest rates'. "For our tech-savvy youth, this will be a golden era. A corpus of rupees one lakh crore will be established with fifty-year interest-free loan. The corpus will provide long-term financing or refinancing with long tenors and low or nil interest rates," Sitharaman said. Also read | Budget 2024: A look at India's interim financial outlook The finance minister reasoned that this would "encourage the private sector to scale up research and innovation significantly in sunrise domains. We need to have programmes that combine the powers of our youth and technology." The Indian finance minister also mentioned that a new scheme will be launched "for strengthening deep-tech technologies for defence purposes and expediting atmanirbharta (or self-sufficiency)". Sitharaman did not specify the details of the scheme. Over 25 million people out of multidimensional poverty in last decade: Sitharaman Finance Minister Nirmala Sitharaman presented her sixth consecutive budget, at par with the record set by the former prime minister Morarji Desai who also held finance portfolio in the 1960s. Presenting the interim Budget 2024-25 ahead of the general elections in the spring, Sitaraman said that Prime Minister Narendra Modi's administration is making efforts to make India a developed country by 2047. Also watch | India Budget 2024: PM Modi hails budget as 'inclusive', says 'this is a budget for India's future' × Poor, women, youth and farmers are four castes for the government, she added. India remains the fastest-growing major economy in the world and in the coming years will become the world’s third-largest economy with a $5 trillion Gross Domestic Product. Hailing the poverty alleviation steps, Sitharaman said that 250 million (or 25 crore) people came out of multi-dimensional poverty since 2014 when Prime Minister Narendra Modi-led Bharatiya Janata Party first came to power in New Delhi's corridors of power to govern the world's largest democracy. (With inputs from agencies)

India Budget 2024: With focus on deep tech, Sitharaman announces '50-year interest-free loan' scheme

Indian Finance Minister Nirmala Sitharaman is all set to present the interim budget on Thursday (February 1) with the health sector expecting that the government's projected spending will be aimed at improving the quality of healthcare across the nation.&nbsp;

Dr Girdhar Gyani, who is the Director General of the Association of Healthcare Providers (AHPI), urged the government to increase budget allocation on health to at least 2.5 per cent of GDP to meet its objective of having universal health coverage. He also pointed out the World Health Organization (WHO) requirement of 3.5 beds per 1000 people.&nbsp;

Dr Gyani spoke to the India-based news agency ANI, stating, "Adult vaccination should be subsidised. (The government should) launch adult vaccination at subsidised rates as a preventive measure among vulnerable populations, including influenza, HPV for women to prevent cervical cancer, pneumococcal disease, and zoster."&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/budget-2024-what-to-expect-for-the-defence-sector-685589">Budget 2024: What to expect for the defence sector</a>&nbsp;

"We need basic health infrastructure across the nation to ensure the availability and accessibility of hospital beds. We need to add more than double the number of beds to match the WHO requirement of 3.5 beds per 1000 people," he said.&nbsp;

Dr Sanjeev Singh, Medical Director at Amrita Hospital in Faridabad, reiterated the same. He said that it is unfortunate that the GDP spent on healthcare in India stands at 1.9 per cent. As quoted by ANI, he said, "Unfortunately, in India up until now, as we speak, the GDP spent for healthcare allocated is only 1.9 per cent."&nbsp;

Dr Singh highlighted that it has to be the United States level at 17 per cent, and also mentioned that the United Kingdom is at 9.3 per cent. He noted that India should be at 2.5 per cent. He argues that some of the contributions definitely would come from the private sector as well.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/business-jargon-buster-budget-edition-684963">Business Jargon Buster: Budget edition</a>&nbsp;

Last year in the Union budget, the Ministry of Health and Family Welfare received an allocation of Rs 89,155 crore for 2023-24, an increase of 12.6 per cent compared to the revised Budget estimates for 2022-23.&nbsp;

Sitharaman had said that the government aims to focus on skills, research and innovation in the sector in the aftermath of the coronavirus (COVID-19) pandemic heightened the need as she announced a slew of measures for the Union Health Ministry.&nbsp;

Sitharaman will present the interim Union Budget on Thursday. The interim budget typically takes care of the fiscal needs of the intervening period until a government is formed after the Lok Sabha polls.&nbsp;

(With inputs from agencies)&nbsp;

Indian Finance Minister Nirmala Sitharaman is all set to present the interim budget on Thursday (February 1) with the health sector expecting that the government's projected spending will be aimed at improving the quality of healthcare across the nation.

Indian Finance Minister Nirmala Sitharaman is all set to present the interim budget on Thursday (February 1) with the health sector expecting that the government's projected spending will be aimed at improving the quality of healthcare across the nation. Dr Girdhar Gyani, who is the Director General of the Association of Healthcare Providers (AHPI), urged the government to increase budget allocation on health to at least 2.5 per cent of GDP to meet its objective of having universal health coverage. He also pointed out the World Health Organization (WHO) requirement of 3.5 beds per 1000 people. Dr Gyani spoke to the India-based news agency ANI, stating, "Adult vaccination should be subsidised. (The government should) launch adult vaccination at subsidised rates as a preventive measure among vulnerable populations, including influenza, HPV for women to prevent cervical cancer, pneumococcal disease, and zoster." Also read: Budget 2024: What to expect for the defence sector "We need basic health infrastructure across the nation to ensure the availability and accessibility of hospital beds. We need to add more than double the number of beds to match the WHO requirement of 3.5 beds per 1000 people," he said. Dr Sanjeev Singh, Medical Director at Amrita Hospital in Faridabad, reiterated the same. He said that it is unfortunate that the GDP spent on healthcare in India stands at 1.9 per cent. As quoted by ANI, he said, "Unfortunately, in India up until now, as we speak, the GDP spent for healthcare allocated is only 1.9 per cent." Dr Singh highlighted that it has to be the United States level at 17 per cent, and also mentioned that the United Kingdom is at 9.3 per cent. He noted that India should be at 2.5 per cent. He argues that some of the contributions definitely would come from the private sector as well. Also read: Business Jargon Buster: Budget edition Last year in the Union budget, the Ministry of Health and Family Welfare received an allocation of Rs 89,155 crore for 2023-24, an increase of 12.6 per cent compared to the revised Budget estimates for 2022-23. Sitharaman had said that the government aims to focus on skills, research and innovation in the sector in the aftermath of the coronavirus (COVID-19) pandemic heightened the need as she announced a slew of measures for the Union Health Ministry. Sitharaman will present the interim Union Budget on Thursday. The interim budget typically takes care of the fiscal needs of the intervening period until a government is formed after the Lok Sabha polls. (With inputs from agencies)

Budget 2024: Health sector expects increase in spending to improve quality

China's manufacturing sector faced its fourth consecutive month of contraction in January, according to an official factory survey released on Wednesday. <o:p></o:p>

The official Purchasing Managers' Index (PMI) inched up to 49.2 from December's 49.0, indicating ongoing challenges for the world's second-largest economy as it strives to regain momentum in the new year. <o:p></o:p>

The data, in line with a Reuters poll forecast, provides a critical snapshot of China's economic health after a somewhat shaky post-COVID recovery. <o:p></o:p>

Zhiwei Zhang, Chief Economist at Pinpoint Asset Management, remarked, "Economic momentum remained muted as the deflationary pressure persists," predicting a central bank rate cut in the first half of the year to stimulate domestic demand.<o:p></o:p>

Despite a slight rise in output, the manufacturing PMI remains below the 50-mark, signifying a contraction. The figures for new orders and new export orders sub-indices, at 49.0 and 47.2, respectively, further highlight the industry's struggle. <o:p></o:p>

Weak external demand and the impending Lunar New Year, which prompts earlier factory closures, contribute to the challenges. <o:p></o:p>

To address economic headwinds, China's central bank recently announced a surprise cut to banks' reserve requirement ratio. <o:p></o:p>

Julian Evans-Pritchard, Head of China Economics at Capital Economics, remarked on the uncertain nature of the PMI rise, stating, "Either way, it adds to evidence that growth momentum in China is in the midst of a renewed recovery, albeit one that remains on shaky foundations."<o:p></o:p>

In contrast to the manufacturing sector, China's non-manufacturing PMI, which includes services and construction, experienced a modest uptick to 50.7 from December's 50.4. <o:p></o:p>

While the services sub-index returned to growth after two months of contraction, the construction PMI grew at a slower pace. The composite PMI, incorporating both manufacturing and services, reached a four-month high of 50.9 in January. <o:p></o:p>

This improvement raises questions about the sustainability of China's economic recovery and the impact of current policy support. <o:p></o:p>

The International Monetary Fund (IMF) revised China's growth forecast for 2024 to 4.6 per cent, citing fiscal support and a less severe-than-expected property sector slowdown. <o:p></o:p>

Beijing, expected to maintain a growth target around 5 per cent, is yet to release its official 2024 target.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

China's manufacturing sector faced its fourth consecutive month of contraction in January, according to an official factory survey released on Wednesday. The official Purchasing Managers' Index (PMI) inched up to 49.

China's manufacturing sector faced its fourth consecutive month of contraction in January, according to an official factory survey released on Wednesday. The official Purchasing Managers' Index (PMI) inched up to 49.2 from December's 49.0, indicating ongoing challenges for the world's second-largest economy as it strives to regain momentum in the new year. The data, in line with a Reuters poll forecast, provides a critical snapshot of China's economic health after a somewhat shaky post-COVID recovery. Zhiwei Zhang, Chief Economist at Pinpoint Asset Management, remarked, "Economic momentum remained muted as the deflationary pressure persists," predicting a central bank rate cut in the first half of the year to stimulate domestic demand. Despite a slight rise in output, the manufacturing PMI remains below the 50-mark, signifying a contraction. The figures for new orders and new export orders sub-indices, at 49.0 and 47.2, respectively, further highlight the industry's struggle. Weak external demand and the impending Lunar New Year, which prompts earlier factory closures, contribute to the challenges. To address economic headwinds, China's central bank recently announced a surprise cut to banks' reserve requirement ratio. Julian Evans-Pritchard, Head of China Economics at Capital Economics, remarked on the uncertain nature of the PMI rise, stating, "Either way, it adds to evidence that growth momentum in China is in the midst of a renewed recovery, albeit one that remains on shaky foundations." In contrast to the manufacturing sector, China's non-manufacturing PMI, which includes services and construction, experienced a modest uptick to 50.7 from December's 50.4. While the services sub-index returned to growth after two months of contraction, the construction PMI grew at a slower pace. The composite PMI, incorporating both manufacturing and services, reached a four-month high of 50.9 in January. This improvement raises questions about the sustainability of China's economic recovery and the impact of current policy support. The International Monetary Fund (IMF) revised China's growth forecast for 2024 to 4.6 per cent, citing fiscal support and a less severe-than-expected property sector slowdown. Beijing, expected to maintain a growth target around 5 per cent, is yet to release its official 2024 target. (With inputs from Reuters)

China's manufacturing contraction persists, posing challenges for economic recovery in 2024

In a bid to recalibrate its autonomous vehicle venture, General Motors announced on Tuesday a cut of approximately $1 billion in spending on its robotaxi unit, Cruise, for the year 2024.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The move comes in the wake of heightened regulatory scrutiny following an October 2 accident in San Francisco involving a Cruise robotaxi and a pedestrian. <o:p></o:p>

Reuters cited GM CEO Mary Barra, who said, "We are committed to Cruise." <o:p></o:p>

Barra also announced plans to "refocus and relaunch Cruise" and assured that the company would soon unveil a timetable for resuming operations.<o:p></o:p>

Barra acknowledged the challenges faced by Cruise, stating, "GM has learned that 'humans expect computers to be much more safe' than human operators." <o:p></o:p>

She highlighted Cruise's commitment to setting a higher safety standard for its autonomous vehicles, emphasising that the company was cooperating with ongoing government investigations into the October 2 accident. <o:p></o:p>

Despite the setback, Barra remains optimistic about Cruise's future, emphasising the importance of retaining software and engineering talent. <o:p></o:p>

The CEO revealed that Cruise's spending in the upcoming year will be directed toward bolstering its technological capabilities, particularly in software development and engineering. <o:p></o:p>

The decision to halt previous plans for expansion to 20 cities has allowed GM to redirect spending away from vehicles and operational personnel.<o:p></o:p>

Following the October 2 accident, Cruise faced scrutiny not only from regulatory bodies but also underwent an internal technical review conducted by engineering firm Exponent. <o:p></o:p>

The review revealed mapping errors and a misidentification of the collision nature, with the vehicle incorrectly categorising the impact as a side collision. <o:p></o:p>

Cruise promptly recalled the affected vehicles and updated its software. <o:p></o:p>

In response to the investigation by the California Public Utilities Commission, Cruise proposed a $75,000 settlement and committed to enhanced disclosures regarding the incident. <o:p></o:p>

Cruise stated that the proposed settlement was a reasonable sum considering its remedial actions and the overall circumstances surrounding the accident.<o:p></o:p>

The aftermath of the October 2 incident saw significant organisational changes within Cruise, with nine executives terminated, including CEO Kyle Vogt and co-founder Dan Kan resigning. <o:p></o:p>

The company also underwent a reduction of a quarter of its staff. <o:p></o:p>

The regulatory probes and disclosures regarding the mishandling of the accident have intensified pressure on GM and CEO Mary Barra, who has consistently defended the company's investment in Cruise. <o:p></o:p>

Despite over $8 billion in losses, Barra previously expressed confidence in Cruise's potential, projecting it could generate $50 billion in annual revenue by 2030. <o:p></o:p>

Cruise, once operating hundreds of unmanned robotaxis across several states, aims to strike a balance between generating revenue and perfecting autonomous technology.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a bid to recalibrate its autonomous vehicle venture, General Motors announced on Tuesday a cut of approximately $1 billion in spending on its robotaxi unit, Cruise, for the year 2024.

In a bid to recalibrate its autonomous vehicle venture, General Motors announced on Tuesday a cut of approximately $1 billion in spending on its robotaxi unit, Cruise, for the year 2024. This is based on a Reuters report. The move comes in the wake of heightened regulatory scrutiny following an October 2 accident in San Francisco involving a Cruise robotaxi and a pedestrian. Reuters cited GM CEO Mary Barra, who said, "We are committed to Cruise." Barra also announced plans to "refocus and relaunch Cruise" and assured that the company would soon unveil a timetable for resuming operations. Barra acknowledged the challenges faced by Cruise, stating, "GM has learned that 'humans expect computers to be much more safe' than human operators." She highlighted Cruise's commitment to setting a higher safety standard for its autonomous vehicles, emphasising that the company was cooperating with ongoing government investigations into the October 2 accident. Despite the setback, Barra remains optimistic about Cruise's future, emphasising the importance of retaining software and engineering talent. The CEO revealed that Cruise's spending in the upcoming year will be directed toward bolstering its technological capabilities, particularly in software development and engineering. The decision to halt previous plans for expansion to 20 cities has allowed GM to redirect spending away from vehicles and operational personnel. Following the October 2 accident, Cruise faced scrutiny not only from regulatory bodies but also underwent an internal technical review conducted by engineering firm Exponent. The review revealed mapping errors and a misidentification of the collision nature, with the vehicle incorrectly categorising the impact as a side collision. Cruise promptly recalled the affected vehicles and updated its software. In response to the investigation by the California Public Utilities Commission, Cruise proposed a $75,000 settlement and committed to enhanced disclosures regarding the incident. Cruise stated that the proposed settlement was a reasonable sum considering its remedial actions and the overall circumstances surrounding the accident. The aftermath of the October 2 incident saw significant organisational changes within Cruise, with nine executives terminated, including CEO Kyle Vogt and co-founder Dan Kan resigning. The company also underwent a reduction of a quarter of its staff. The regulatory probes and disclosures regarding the mishandling of the accident have intensified pressure on GM and CEO Mary Barra, who has consistently defended the company's investment in Cruise. Despite over $8 billion in losses, Barra previously expressed confidence in Cruise's potential, projecting it could generate $50 billion in annual revenue by 2030. Cruise, once operating hundreds of unmanned robotaxis across several states, aims to strike a balance between generating revenue and perfecting autonomous technology. (With inputs from Reuters)

GM slashes Cruise spending by $1 bn amid regulatory scrutiny, commits to self-driving vision

As the world’s fifth-largest economy waits for the interim budget scheduled to be presented on Thursday (Feb 1) by the Indian Finance Minister Nirmala Sitharaman, all eyes are on the infrastructure sector, particularly railways. Over the years, the current government has allocated thousands of crores to the development of the country’s railways, and this year is expected to be no different.

<h2>Railway Budget 2023-24</h2>

The Indian Railway Ministry was allocated a record $28.9 billion (Rs 2.4 lakh crore) in budgetary support for the financial year 2023-24. The minister said the amount was nine times what was allocated in the FY 2013-14.&nbsp;

WATCH |&nbsp;Budget 2024: Indian parliament's budget session begins

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Between April 1, 2023, and December 31, 2023 – in the first nine months of the fiscal year, the Indian Railways witnessed a record capital expenditure (capex) with 75 per cent of the total allocated capex budget spent, according to the official data.&nbsp;

This also includes a massive $22 billion (Rs 1.85 lakh crore) which had been allocated for capital expenditure in the current fiscal taking the total to $31.5 billion (Rs 2.62 lakh crore).&nbsp;

The 75 per cent of the total allocated funds spent amounts to a whopping $23.6 billion (Rs 1.95 lakh crore) which according to the government, was dedicated to infrastructural development and passenger safety of the Indian Railways. &nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/budget-2024-what-to-expect-for-the-defence-sector-685589">Budget 2024: What to expect for the defence sector</a>

The funds are also dedicated to crucial projects such as the development of new rail lines, the doubling of existing lines, gauge conversion, and the enhancement of passenger amenities, said the government.

The allocated funds were to be used to build new trains, and railway tracks as well as increase passenger facilities and ramp up the infrastructure to a world-class level.&nbsp;

In 2023, the Indian Railways witnessed dozens of new Vande Bharat trains, along new routes, as well as the redevelopment of railway stations.&nbsp;

<h2>What’s in store for Railways in Budget 2024?</h2>

The announcement on Thursday is only an interim one and it will provide an outline of what can be expected for the actual budget after the 2024 general elections when the new government takes over.&nbsp;

This will be Sitharaman’s sixth budget in a row as finance minister in Prime Minister Narendra Modi’s cabinet and comes ahead of crucial national elections where the incumbent PM will seek&nbsp;a third consecutive term in power.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/budget-2024-will-there-be-income-tax-reform-685558">Budget 2024: Will there be Income Tax reforms?</a>

Analysts, as per media reports, are optimistic that the upcoming budget will witness a surge in the capex spending on infrastructure, especially the railway sector.&nbsp;

It is also believed that the proposed India-Middle East-Europe economic corridor – an ambitious project to connect India, Saudi Arabia, the United Arab Emirates (UAE) and Europe – will not only give a major boost to the sector but also be a long-term growth driver.

Therefore, rail stocks are expected to keep up the momentum in 2024 as well.&nbsp;

(With inputs from agencies) 
&nbsp;

As the world’s fifth-largest economy waits for the interim budget scheduled to be presented on Thursday (Feb 1) by the Indian Finance Minister Nirmala Sitharaman, all eyes are on the infrastructure sector, particularly railways.

As the world’s fifth-largest economy waits for the interim budget scheduled to be presented on Thursday (Feb 1) by the Indian Finance Minister Nirmala Sitharaman, all eyes are on the infrastructure sector, particularly railways. Over the years, the current government has allocated thousands of crores to the development of the country’s railways, and this year is expected to be no different. Railway Budget 2023-24 The Indian Railway Ministry was allocated a record $28.9 billion (Rs 2.4 lakh crore) in budgetary support for the financial year 2023-24. The minister said the amount was nine times what was allocated in the FY 2013-14. WATCH | Budget 2024: Indian parliament's budget session begins Between April 1, 2023, and December 31, 2023 – in the first nine months of the fiscal year, the Indian Railways witnessed a record capital expenditure (capex) with 75 per cent of the total allocated capex budget spent, according to the official data. This also includes a massive $22 billion (Rs 1.85 lakh crore) which had been allocated for capital expenditure in the current fiscal taking the total to $31.5 billion (Rs 2.62 lakh crore). The 75 per cent of the total allocated funds spent amounts to a whopping $23.6 billion (Rs 1.95 lakh crore) which according to the government, was dedicated to infrastructural development and passenger safety of the Indian Railways. ALSO READ | Budget 2024: What to expect for the defence sector The funds are also dedicated to crucial projects such as the development of new rail lines, the doubling of existing lines, gauge conversion, and the enhancement of passenger amenities, said the government. The allocated funds were to be used to build new trains, and railway tracks as well as increase passenger facilities and ramp up the infrastructure to a world-class level. In 2023, the Indian Railways witnessed dozens of new Vande Bharat trains, along new routes, as well as the redevelopment of railway stations. What’s in store for Railways in Budget 2024? The announcement on Thursday is only an interim one and it will provide an outline of what can be expected for the actual budget after the 2024 general elections when the new government takes over. This will be Sitharaman’s sixth budget in a row as finance minister in Prime Minister Narendra Modi’s cabinet and comes ahead of crucial national elections where the incumbent PM will seek a third consecutive term in power. ALSO READ | Budget 2024: Will there be Income Tax reforms? Analysts, as per media reports, are optimistic that the upcoming budget will witness a surge in the capex spending on infrastructure, especially the railway sector. It is also believed that the proposed India-Middle East-Europe economic corridor – an ambitious project to connect India, Saudi Arabia, the United Arab Emirates (UAE) and Europe – will not only give a major boost to the sector but also be a long-term growth driver. Therefore, rail stocks are expected to keep up the momentum in 2024 as well. (With inputs from agencies)

Budget 2024: What to expect for India’s railway sector?

India stood at fourth spot in Global Firepower's Military Strength Rankings 2024, above nations like the United Kingdom and Japan. The United States has been ranked first, followed by Russia and China. As per the ranking, India has an estimated total of 5,137,550 military personnel.&nbsp;

India has emerged as a major superpower in the area of defence in the last decade, with substantial and consistent increases in budget and investments.&nbsp;

This year also, it is expected that the Indian government may come up with some announcements in the defence sector as Finance Minister Nirmala Sitharaman is all set to present the interim budget on February 1.&nbsp;

Notably, 2024 is an election year, so the budget's main focus will be on maintaining essential services, with the main budget coming after the new government takes over. Sitharaman has already told us to not expect any "major announcements".&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/business-jargon-buster-budget-edition-684963">Business Jargon Buster: Budget edition</a>&nbsp;

<h2>What to expect?&nbsp;</h2>

India proposed $72.6 billion in defence spending for the 2023-24 financial year, which was 13 per cent up from the previous period's initial estimates.&nbsp;

In the last budget, India aimed to add more fighter jets and build roads and infrastructure along its tense border with China. As per the report, India possesses a total of 2,210 aircraft, 4,614 tanks, and 295 assets in terms of naval forces.&nbsp;

This year, it is expected that the government will continue its growing focus on digitisation, modernisation, and indigenisation.&nbsp;

A report by Upstox mentioned that the defence experts have been advocating for an increase in the defence budget to around three per cent of GDP.&nbsp;

The report also mentioned that a significant budget hike is expected keeping in mind the contractual obligations and resource allocation for modernisation.&nbsp;

The budget is also expected to address salary hikes, pension funds, strategic needs, and a continuous upgradation in research and development and strategic partnerships with domestic industries.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/interim-budget-2024-what-is-the-lock-in-process-why-is-it-so-special-678695">Interim Budget 2024: What is the ‘lock-in’ process? Why is it so special?</a>

<h2>What is an interim budget?&nbsp;</h2>

The Interim Budget is a temporary financial plan announced before a new government is set to come in after general elections in the same year, unlike the regular budget, in which the government presents spending details and announces new policies.

The vote-on-account is passed through the interim budget, and it seeks parliamentary approval for the government to meet expenses for just a few months.&nbsp;

(With inputs from agencies)&nbsp;

India stood at fourth spot in Global Firepower's Military Strength Rankings 2024, above nations like the United Kingdom and Japan. The United States has been ranked first, followed by Russia and China.

India stood at fourth spot in Global Firepower's Military Strength Rankings 2024, above nations like the United Kingdom and Japan. The United States has been ranked first, followed by Russia and China. As per the ranking, India has an estimated total of 5,137,550 military personnel. India has emerged as a major superpower in the area of defence in the last decade, with substantial and consistent increases in budget and investments. This year also, it is expected that the Indian government may come up with some announcements in the defence sector as Finance Minister Nirmala Sitharaman is all set to present the interim budget on February 1. Notably, 2024 is an election year, so the budget's main focus will be on maintaining essential services, with the main budget coming after the new government takes over. Sitharaman has already told us to not expect any "major announcements". Also read: Business Jargon Buster: Budget edition What to expect? India proposed $72.6 billion in defence spending for the 2023-24 financial year, which was 13 per cent up from the previous period's initial estimates. In the last budget, India aimed to add more fighter jets and build roads and infrastructure along its tense border with China. As per the report, India possesses a total of 2,210 aircraft, 4,614 tanks, and 295 assets in terms of naval forces. This year, it is expected that the government will continue its growing focus on digitisation, modernisation, and indigenisation. A report by Upstox mentioned that the defence experts have been advocating for an increase in the defence budget to around three per cent of GDP. The report also mentioned that a significant budget hike is expected keeping in mind the contractual obligations and resource allocation for modernisation. The budget is also expected to address salary hikes, pension funds, strategic needs, and a continuous upgradation in research and development and strategic partnerships with domestic industries. Also read: Interim Budget 2024: What is the ‘lock-in’ process? Why is it so special? What is an interim budget? The Interim Budget is a temporary financial plan announced before a new government is set to come in after general elections in the same year, unlike the regular budget, in which the government presents spending details and announces new policies. The vote-on-account is passed through the interim budget, and it seeks parliamentary approval for the government to meet expenses for just a few months. (With inputs from agencies)

Budget 2024: What to expect for the defence sector

In a move to streamline operations and enhance profitability, payments giant PayPal Holdings is set to reduce its global workforce by 9 per cent, equivalent to approximately 2,500 jobs, in 2024.<o:p></o:p>

This is based on a Reuters report. <o:p></o:p>

CEO Alex Chriss, in a letter to staff, disclosed the company's decision, emphasising the need to "right-size" the organisation. <o:p></o:p>

Chriss intends to achieve this through a combination of direct job cuts and the elimination of open positions throughout the year. The impacted staff are expected to receive notifications by the end of the week.<o:p></o:p>

Reuters cited Chriss, who expressed the rationale behind the decision, stating, "We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth."<o:p></o:p>

The move aligns with Chriss's earlier commitment to increase revenue beyond transaction-related volumes and make the fintech firm more operationally efficient by reducing costs. Despite the positive response to the announcement following the third-quarter results, analysts have closely monitored PayPal's margins in recent quarters, especially concerning increased competition, particularly from tech giant Apple.<o:p></o:p>

Investors are hoping that Chriss, who was formerly a senior executive at Intuit, a software company, could revive the shares of PayPal. It dropped by about 14 per cent the previous year and failed to capitalise on the higher-growth technology shares sector-wide rebound.<o:p></o:p>

The focus on margin improvement becomes crucial as the company aims to navigate a market where low-margin business products have seen robust growth, while branded products have encountered slower growth due to heightened competition. <o:p></o:p>

Last week, PayPal made strategic announcements, revealing plans to launch new artificial intelligence-driven products and introduce a one-click checkout feature. These initiatives align with the company's broader efforts to stay at the forefront of technological advancements in the financial industry. <o:p></o:p>

While the market responded with a nominal decrease of 0.13 per cent in PayPal's shares, the move is seen as a proactive step to bolster the company's position amid evolving market dynamics. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

<o:p></o:p>

In a move to streamline operations and enhance profitability, payments giant PayPal Holdings is set to reduce its global workforce by 9 per cent, equivalent to approximately 2,500 jobs, in 2024.

In a move to streamline operations and enhance profitability, payments giant PayPal Holdings is set to reduce its global workforce by 9 per cent, equivalent to approximately 2,500 jobs, in 2024. This is based on a Reuters report. CEO Alex Chriss, in a letter to staff, disclosed the company's decision, emphasising the need to "right-size" the organisation. Chriss intends to achieve this through a combination of direct job cuts and the elimination of open positions throughout the year. The impacted staff are expected to receive notifications by the end of the week. Reuters cited Chriss, who expressed the rationale behind the decision, stating, "We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth." The move aligns with Chriss's earlier commitment to increase revenue beyond transaction-related volumes and make the fintech firm more operationally efficient by reducing costs. Despite the positive response to the announcement following the third-quarter results, analysts have closely monitored PayPal's margins in recent quarters, especially concerning increased competition, particularly from tech giant Apple. Investors are hoping that Chriss, who was formerly a senior executive at Intuit, a software company, could revive the shares of PayPal. It dropped by about 14 per cent the previous year and failed to capitalise on the higher-growth technology shares sector-wide rebound. The focus on margin improvement becomes crucial as the company aims to navigate a market where low-margin business products have seen robust growth, while branded products have encountered slower growth due to heightened competition. Last week, PayPal made strategic announcements, revealing plans to launch new artificial intelligence-driven products and introduce a one-click checkout feature. These initiatives align with the company's broader efforts to stay at the forefront of technological advancements in the financial industry. While the market responded with a nominal decrease of 0.13 per cent in PayPal's shares, the move is seen as a proactive step to bolster the company's position amid evolving market dynamics. (With inputs from Reuters)

PayPal to cut 2,500 jobs in order to “right-size” the company

AI-related companies witnessed a loss of $190 billion in market capitalisation late on Tuesday, triggered by disappointing quarterly reports from tech giants Microsoft and Alphabet. <o:p></o:p>

According to Reuters, the selloff highlighted the heightened expectations among investors following a recent AI-fuelled stock market surge, which had propelled these companies' shares to record highs, banking on the widespread integration of AI technology across various corporate sectors.<o:p></o:p>

Alphabet, the parent company of Google, bore the brunt of the market downturn as its shares plummeted by 5.6 per cent. The disappointing December-quarter ad revenue, falling short of expectations, was a major factor in this decline. <o:p></o:p>

Additionally, Alphabet announced a significant increase in spending on data centres to bolster its AI initiatives, shedding light on the intense competition it faces against AI rival Microsoft. <o:p></o:p>

Despite a slight beat in Google Cloud revenue growth, fuelled by AI interest, Microsoft's Azure outpaced its competitor. Investors reacted swiftly to these revelations, causing Alphabet's stock to take a hit.<o:p></o:p>

Reuters cited an analyst, who said, "The sell-off reflects the market's realisation that achieving success in the highly competitive AI landscape comes at a substantial cost." <o:p></o:p>

Microsoft, despite beating analyst estimates for quarterly revenue, experienced a 0.7 per cent drop in its stock after reaching an intra-day record high earlier in the day.<o:p></o:p>

Microsoft's optimism about AI had propelled its market value above $3 trillion this month, surpassing tech giant Apple. The company's success was attributed to the incorporation of new AI features that attracted customers to its cloud and Windows services. <o:p></o:p>

However, the dip in its stock after the quarterly report suggests that even the tech giant is not immune to the volatile nature of the AI market. Investors are now closely watching how these companies navigate the challenges and capitalise on the promises of AI.<o:p></o:p>

The plunge extended beyond Alphabet and Microsoft, affecting chipmaker Advanced Micro Devices (AMD), which witnessed a 6 per cent decline in its stock value. Despite projecting robust sales for its AI processors, the company's forecast for first-quarter revenue fell short of estimates. <o:p></o:p>

Similarly, Nvidia, whose shares had surged 27 per cent in January on the back of AI optimism, experienced a 2 per cent decline in extended trade. Super Micro Computer, a server maker benefiting from AI-related demand, also suffered, dropping over 3 per cent after reaching a record high on the back of blowout quarterly results the day before.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

AI-related companies witnessed a loss of $190 billion in market capitalisation late on Tuesday, triggered by disappointing quarterly reports from tech giants Microsoft and Alphabet.

AI-related companies witnessed a loss of $190 billion in market capitalisation late on Tuesday, triggered by disappointing quarterly reports from tech giants Microsoft and Alphabet. According to Reuters, the selloff highlighted the heightened expectations among investors following a recent AI-fuelled stock market surge, which had propelled these companies' shares to record highs, banking on the widespread integration of AI technology across various corporate sectors. Alphabet, the parent company of Google, bore the brunt of the market downturn as its shares plummeted by 5.6 per cent. The disappointing December-quarter ad revenue, falling short of expectations, was a major factor in this decline. Additionally, Alphabet announced a significant increase in spending on data centres to bolster its AI initiatives, shedding light on the intense competition it faces against AI rival Microsoft. Despite a slight beat in Google Cloud revenue growth, fuelled by AI interest, Microsoft's Azure outpaced its competitor. Investors reacted swiftly to these revelations, causing Alphabet's stock to take a hit. Reuters cited an analyst, who said, "The sell-off reflects the market's realisation that achieving success in the highly competitive AI landscape comes at a substantial cost." Microsoft, despite beating analyst estimates for quarterly revenue, experienced a 0.7 per cent drop in its stock after reaching an intra-day record high earlier in the day. Microsoft's optimism about AI had propelled its market value above $3 trillion this month, surpassing tech giant Apple. The company's success was attributed to the incorporation of new AI features that attracted customers to its cloud and Windows services. However, the dip in its stock after the quarterly report suggests that even the tech giant is not immune to the volatile nature of the AI market. Investors are now closely watching how these companies navigate the challenges and capitalise on the promises of AI. The plunge extended beyond Alphabet and Microsoft, affecting chipmaker Advanced Micro Devices (AMD), which witnessed a 6 per cent decline in its stock value. Despite projecting robust sales for its AI processors, the company's forecast for first-quarter revenue fell short of estimates. Similarly, Nvidia, whose shares had surged 27 per cent in January on the back of AI optimism, experienced a 2 per cent decline in extended trade. Super Micro Computer, a server maker benefiting from AI-related demand, also suffered, dropping over 3 per cent after reaching a record high on the back of blowout quarterly results the day before. (With inputs from Reuters)

AI Market Plunge: Alphabet and Microsoft earnings jolt investors, wipe out $190 billion

The International Monetary Fund (IMF), on Tuesday (January 30) improved its forecast of growth of global economy citing "resilience" from major economies including India. The updated global growth figure is 0.2 percentage points higher than its previous forecast in October. The IMF said that Indian economy may grow by 6.5&nbsp;per cent, up by 0.2 per cent.

"We had simultaneously less inflation and more growth," IMF chief economist Pierre-Olivier Gourinchas told reporters ahead of the report's publication as quoted by AFP.

"It's not just a US story. There was a lot of resilience in many, many parts of the world in the last year and going into 2024," he said, highlighting countries including China, Russia, Brazil and India.

Also Read | <a href="https://www.wionews.com/business-economy/indias-to-be-a-7-trillion-economy-by-2030-heres-what-the-finance-ministry-report-says-685122">India's to be a $7 trillion economy by 2030? Here's what the Finance Ministry report says&nbsp;</a>

Despite the fresh revision indicating hope for the global economy, the IMF has said that the global growth is likely to remain below 3.8 per cent, the recent historical average. The factors it cited were elevated interest rates, waning government support in the wake of withdrawal of the Covid pandemic and low productivity.

The world body has kept overall inflation outlook unchanged at 5.8 per cent. In advanced economies, the inflation is predicted to be 2.6 per cent this year. There is a decrease of 0.4 per cent from the forecast in October.

In case of developing economies, the average annual inflation is predicted to be 8.1 per cent. This is 0.3 percentage points up from the previous prediction.

<h2>US, China behind the boost</h2>

The IMF has said that performance by the United States and China has been behind the increased outlook. Both countries' growth prospects in 2024 saw a significant boost. This means that US and China will experience less substantial slowdown than previously predicted.

The IMF has predicted that the US economy will grow by 2.1 per cent this year.

Also Read | <a href="https://www.wionews.com/business-economy/imf-grants-argentina-extension-on-44-bn-loan-review-allowing-for-further-reforms-685069">IMF grants Argentina extension on $44 bn loan review, allowing for further reforms</a>

In absolute terms, the percentage figure is less than 2.5 per cent predicted in 2023 but IMF has attributed this to "statistical carryover effects from the stronger-than-expected growth outcome for 2023."

In case of China, its economy is expected to hit a growth of 4.6 per cent. This is down from 5.2 per cent last year but the latest figure is better than what was previously anticipated.

<h2>Gloom in Europe</h2>

Things might look brighter in the US, China and other Asian countries, the picture in Europe doesn't look very encouraging.

The IMF has highlighted "notably subdued growth in the euro area."

Among the G7 nations, Germany is on path to become the slowest-growing economy with growth of just 0.5 per cent this year. This will follow a 0.3 per cent contraction in 2023.

Watch | Why is Germany planning to try a four-day work week from February 1?

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The UK, Italy and France will see 1 per cent or less growth this year, says IMF. Spain is slightly ahead with growth forecast of 1.5 per cent.

(With inputs from agencies)

The International Monetary Fund (IMF), on Tuesday (January 30) improved its forecast of growth of global economy citing "resilience" from major economies including India.

The International Monetary Fund (IMF), on Tuesday (January 30) improved its forecast of growth of global economy citing "resilience" from major economies including India. The updated global growth figure is 0.2 percentage points higher than its previous forecast in October. The IMF said that Indian economy may grow by 6.5 per cent, up by 0.2 per cent. "We had simultaneously less inflation and more growth," IMF chief economist Pierre-Olivier Gourinchas told reporters ahead of the report's publication as quoted by AFP. "It's not just a US story. There was a lot of resilience in many, many parts of the world in the last year and going into 2024," he said, highlighting countries including China, Russia, Brazil and India. Also Read | India's to be a $7 trillion economy by 2030? Here's what the Finance Ministry report says Despite the fresh revision indicating hope for the global economy, the IMF has said that the global growth is likely to remain below 3.8 per cent, the recent historical average. The factors it cited were elevated interest rates, waning government support in the wake of withdrawal of the Covid pandemic and low productivity. The world body has kept overall inflation outlook unchanged at 5.8 per cent. In advanced economies, the inflation is predicted to be 2.6 per cent this year. There is a decrease of 0.4 per cent from the forecast in October. In case of developing economies, the average annual inflation is predicted to be 8.1 per cent. This is 0.3 percentage points up from the previous prediction. US, China behind the boost The IMF has said that performance by the United States and China has been behind the increased outlook. Both countries' growth prospects in 2024 saw a significant boost. This means that US and China will experience less substantial slowdown than previously predicted. The IMF has predicted that the US economy will grow by 2.1 per cent this year. Also Read | IMF grants Argentina extension on $44 bn loan review, allowing for further reforms In absolute terms, the percentage figure is less than 2.5 per cent predicted in 2023 but IMF has attributed this to "statistical carryover effects from the stronger-than-expected growth outcome for 2023." In case of China, its economy is expected to hit a growth of 4.6 per cent. This is down from 5.2 per cent last year but the latest figure is better than what was previously anticipated. Gloom in Europe Things might look brighter in the US, China and other Asian countries, the picture in Europe doesn't look very encouraging. The IMF has highlighted "notably subdued growth in the euro area." Among the G7 nations, Germany is on path to become the slowest-growing economy with growth of just 0.5 per cent this year. This will follow a 0.3 per cent contraction in 2023. Watch | Why is Germany planning to try a four-day work week from February 1? × The UK, Italy and France will see 1 per cent or less growth this year, says IMF. Spain is slightly ahead with growth forecast of 1.5 per cent. (With inputs from agencies)

IMF raises world economy growth forecast, pegs India’s growth at 6.5 per cent

Dozens of artefacts linked to South African reformist icon Nelson Mandela will not be auctioned — for now. The development comes after a court application to completely halt the auction came into force, the body that protects South Africa's cultural heritage has said.&nbsp;

The online auction was scheduled by New York-based Guernsey’s auction house for February 24.&nbsp;This was reportedly in conjunction with Dr Makaziwe Mandela, the eldest daughter of Nelson Mandela, South Africa’s first democratically elected president who died in 2013.

<h2>Why the auction was suspended?&nbsp;</h2>

The scheduled auction received widespread criticism in South Africa. The South African Heritage Resources Agency (SAHRA) argued that the items listed to be auctioned are South Africa's cultural heritage artefacts. SAHRA further claimed that these items must be preserved for South Africa's future generations.&nbsp;

<h2>What all was to be auctioned?&nbsp;</h2>

According to the Associated Press, the items listed in the auction included Mandela's "book" as well as his identification document following his 1993 release from prison.

Also watch |&nbsp;Nelson Mandela death anniversary: Palestine state was key international cause for Mandela | WION

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Among the items listed for auction are Mandela’s iconic Ray-Ban sunglasses and "Madiba" shirts. The list also includes personal letters he wrote from prison, as well as a blanket given to him by former US President Barack Obama and his wife, Michelle.

A bid starting at $24,000 was listed for a champagne cooler, a present Mandela received from former US president Bill Clinton.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/nelson-mandela-the-legend-and-his-humour-502394">Nelson Mandela: The legend and his humour</a>

The auctioneer described the planned auction as "nothing short of remarkable". It claimed that the proceeds from the auction would be used for the building of the Mandela Memorial Garden in Qunu, the village where he is buried.

SAHRA said in a statement that the suspension is a result of its engagement with Dr Mandela and the auction house.

"SAHRA welcomes the decision by Guernsey’s Auction House to suspend the auction," the agency said.

(With inputs from agencies)

Dozens of artefacts linked to South African reformist icon Nelson Mandela will not be auctioned — for now. The development comes after a court application to completely halt the auction came into force, the body that protects South Africa's cultural heritage has said.

Dozens of artefacts linked to South African reformist icon Nelson Mandela will not be auctioned — for now. The development comes after a court application to completely halt the auction came into force, the body that protects South Africa's cultural heritage has said. The online auction was scheduled by New York-based Guernsey’s auction house for February 24. This was reportedly in conjunction with Dr Makaziwe Mandela, the eldest daughter of Nelson Mandela, South Africa’s first democratically elected president who died in 2013. Why the auction was suspended? The scheduled auction received widespread criticism in South Africa. The South African Heritage Resources Agency (SAHRA) argued that the items listed to be auctioned are South Africa's cultural heritage artefacts. SAHRA further claimed that these items must be preserved for South Africa's future generations. What all was to be auctioned? According to the Associated Press, the items listed in the auction included Mandela's "book" as well as his identification document following his 1993 release from prison. Also watch | Nelson Mandela death anniversary: Palestine state was key international cause for Mandela | WION × Among the items listed for auction are Mandela’s iconic Ray-Ban sunglasses and "Madiba" shirts. The list also includes personal letters he wrote from prison, as well as a blanket given to him by former US President Barack Obama and his wife, Michelle. A bid starting at $24,000 was listed for a champagne cooler, a present Mandela received from former US president Bill Clinton. Also read | Nelson Mandela: The legend and his humour The auctioneer described the planned auction as "nothing short of remarkable". It claimed that the proceeds from the auction would be used for the building of the Mandela Memorial Garden in Qunu, the village where he is buried. SAHRA said in a statement that the suspension is a result of its engagement with Dr Mandela and the auction house. "SAHRA welcomes the decision by Guernsey’s Auction House to suspend the auction," the agency said. (With inputs from agencies)

Nelson Mandela’s possessions will not be auctioned — for now

Ahead of India's upcoming budget, all eyes are on capital expenditure (capex) as the government continues to&nbsp;focus on&nbsp;infrastructure projects. With the current fiscal year projecting a government spending of around $120 billion; analysts are optimistic that the upcoming budget will witness a surge of at least 10 per cent in capex.<o:p></o:p>

Government's big infra push<o:p></o:p>

Since the onset of the COVID-19 pandemic, the Indian government has significantly upped its game in capex. The figures have more than doubled since the 2020-21 budget, highlighting a remarkable commitment to fortify the nation's economic foundation. This boost in government spending has played a pivotal role in ensuring India's economic resilience amid the global slowdown.<o:p></o:p>

Key role of capex in development<o:p></o:p>

Capital expenditure primarily channels funds into critical infrastructure projects, such as roads and railways. Beyond immediate economic stimulus, this investment aims to enhance productivity, job creation, and stimulate long-term demand and trade.<o:p></o:p>

The private sector, which faced subdued capex between 2020 and 2022 due to global uncertainties, has seen a positive shift. In the April-September 2023 period, India's private businesses announced capex exceeding $75 billion. This marked a staggering 40 per cent increase compared to the ten-year average, indicating a robust economic outlook for the country.<o:p></o:p>

Analysts' expectations<o:p></o:p>

Analysts are closely monitoring the interim budget, recognising its potential to shape private capex. While 2023 showcased a remarkable rebound for the private sector, the upcoming budget is expected to provide crucial cues that will influence the trajectory of private investment in the nation.<o:p></o:p>

The collective surge in both government and private capex underscores India's economic buoyancy. Increased investment in infrastructure and development projects is set to not only fortify the economy but also position India as a key player in the global economic landscape.<o:p></o:p>

Ahead of India's upcoming budget, all eyes are on capital expenditure (capex) as the government continues to focus on infrastructure projects. With the current fiscal year projecting a government spending of around $120 billion; analysts are optimistic that the upcoming budget will witness a surge of at least 10 per cent in capex.

Ahead of India's upcoming budget, all eyes are on capital expenditure (capex) as the government continues to focus on infrastructure projects. With the current fiscal year projecting a government spending of around $120 billion; analysts are optimistic that the upcoming budget will witness a surge of at least 10 per cent in capex. Government's big infra push Since the onset of the COVID-19 pandemic, the Indian government has significantly upped its game in capex. The figures have more than doubled since the 2020-21 budget, highlighting a remarkable commitment to fortify the nation's economic foundation. This boost in government spending has played a pivotal role in ensuring India's economic resilience amid the global slowdown. Key role of capex in development Capital expenditure primarily channels funds into critical infrastructure projects, such as roads and railways. Beyond immediate economic stimulus, this investment aims to enhance productivity, job creation, and stimulate long-term demand and trade. The private sector, which faced subdued capex between 2020 and 2022 due to global uncertainties, has seen a positive shift. In the April-September 2023 period, India's private businesses announced capex exceeding $75 billion. This marked a staggering 40 per cent increase compared to the ten-year average, indicating a robust economic outlook for the country. Analysts' expectations Analysts are closely monitoring the interim budget, recognising its potential to shape private capex. While 2023 showcased a remarkable rebound for the private sector, the upcoming budget is expected to provide crucial cues that will influence the trajectory of private investment in the nation. The collective surge in both government and private capex underscores India's economic buoyancy. Increased investment in infrastructure and development projects is set to not only fortify the economy but also position India as a key player in the global economic landscape.

Budget 2024: All eyes on the government's capex as India pushes for big-ticket infrastructure

Saudi Arabia's unexpected decision to abandon plans to increase its oil production capacity by 8 per cent to 13 million barrels a day by 2027 has sparked speculation about the kingdom's outlook on future oil demand.<o:p></o:p>

This is based on a Bloomberg report.<o:p></o:p>

The announcement from state-run Saudi Aramco has fuelled discussions about whether Riyadh is growing more pessimistic about oil consumption amid the global shift towards low-carbon energy. <o:p></o:p>

While concerns about demand are part of the equation, another significant factor is the competition from rival oil producers, particularly US shale.<o:p></o:p>

The lack of a detailed explanation from Saudi Aramco regarding the shift in production plans has led to speculation within the industry. <o:p></o:p>

Some experts believe that Riyadh's decision is not necessarily permanent shelving but a delay in upstream expansion plans, possibly due to concerns about softer oil balances in the coming years. <o:p></o:p>

Bob McNally, President of Rapidan Energy Group, suggests that Riyadh is responding to the challenges posed by increased supply outside the OPEC+ alliance, indicating a strategic move to adapt to changing market dynamics.<o:p></o:p>

The surge in production from rival suppliers, particularly US shale, has been a persistent concern for Saudi Arabia and its OPEC+ allies. <o:p></o:p>

The shale oil revolution, which began around a decade ago, had a profound impact on global oil markets, leading to a significant drop in crude prices. <o:p></o:p>

Despite the initial retreat of shale drillers during the COVID-19 pandemic, they have staged a comeback in recent years, contributing to record-breaking American output exceeding 13 million barrels a day. <o:p></o:p>

The resilience of shale, coupled with increased production from other nations like Brazil and Guyana, has created a scenario of plenty in the oil market, impacting prices and influencing strategic decisions by major oil-producing nations.<o:p></o:p>

While Saudi Arabia's decision has been associated with global oil market trends, domestic factors are also in play. <o:p></o:p>

The kingdom is expected to face a budget shortfall of about 4.3 per cent of GDP in 2024, with funding requirements exceeding $46 billion. <o:p></o:p>

Economic diversification initiatives, championed by Crown Prince Mohammed bin Salman, involve substantial spending on tourism, sports, and other projects. Aramco, being 98 per cent state-owned, pays significant dividends to the government, even with production cuts. <o:p></o:p>

Abandoning the expansion plans to reach 13 million barrels a day could alleviate budgetary pressures on Aramco by reducing annual spending by approximately $5 billion, providing financial flexibility amid economic challenges.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Saudi Arabia's unexpected decision to abandon plans to increase its oil production capacity by 8 per cent to 13 million barrels a day by 2027 has sparked speculation about the kingdom's outlook on future oil demand.

Saudi Arabia's unexpected decision to abandon plans to increase its oil production capacity by 8 per cent to 13 million barrels a day by 2027 has sparked speculation about the kingdom's outlook on future oil demand. This is based on a Bloomberg report. The announcement from state-run Saudi Aramco has fuelled discussions about whether Riyadh is growing more pessimistic about oil consumption amid the global shift towards low-carbon energy. While concerns about demand are part of the equation, another significant factor is the competition from rival oil producers, particularly US shale. The lack of a detailed explanation from Saudi Aramco regarding the shift in production plans has led to speculation within the industry. Some experts believe that Riyadh's decision is not necessarily permanent shelving but a delay in upstream expansion plans, possibly due to concerns about softer oil balances in the coming years. Bob McNally, President of Rapidan Energy Group, suggests that Riyadh is responding to the challenges posed by increased supply outside the OPEC+ alliance, indicating a strategic move to adapt to changing market dynamics. The surge in production from rival suppliers, particularly US shale, has been a persistent concern for Saudi Arabia and its OPEC+ allies. The shale oil revolution, which began around a decade ago, had a profound impact on global oil markets, leading to a significant drop in crude prices. Despite the initial retreat of shale drillers during the COVID-19 pandemic, they have staged a comeback in recent years, contributing to record-breaking American output exceeding 13 million barrels a day. The resilience of shale, coupled with increased production from other nations like Brazil and Guyana, has created a scenario of plenty in the oil market, impacting prices and influencing strategic decisions by major oil-producing nations. While Saudi Arabia's decision has been associated with global oil market trends, domestic factors are also in play. The kingdom is expected to face a budget shortfall of about 4.3 per cent of GDP in 2024, with funding requirements exceeding $46 billion. Economic diversification initiatives, championed by Crown Prince Mohammed bin Salman, involve substantial spending on tourism, sports, and other projects. Aramco, being 98 per cent state-owned, pays significant dividends to the government, even with production cuts. Abandoning the expansion plans to reach 13 million barrels a day could alleviate budgetary pressures on Aramco by reducing annual spending by approximately $5 billion, providing financial flexibility amid economic challenges. (With inputs from Bloomberg)

Saudi Arabia shelves oil production expansion plans, raising questions on future demand

The International Monetary Fund (IMF) has revised down Pakistan's growth estimate for fiscal year 2024 to two per cent, marking a 0.5 per cent reduction from October's projection of 2.5 per cent, AFP reported.<o:p></o:p>

The World Economic Outlook (WEO) report for January highlighted challenges facing Pakistan's economy, with the IMF estimate falling below the government's target of 3.5 per cent GDP growth for the current year. <o:p></o:p>

In contrast, the IMF raised its global growth forecast to 3.1 per cent for 2024, citing unexpected resilience in major economies worldwide, including the United States and China.<o:p></o:p>

AFP cited IMF Chief Economist Pierre-Olivier Gourinchas, who noted, "The global economy continues to display remarkable resilience, with inflation declining steadily and growth holding up."<o:p></o:p>

Economists express concerns about Pakistan's economic trajectory, emphasising the need for targeted reforms to stimulate growth. The downgraded growth estimate signals a challenging environment for the country, requiring proactive measures to address structural issues and boost economic prospects.<o:p></o:p>

The IMF's revised projection is indicative of the multifaceted challenges Pakistan faces, including inflation, energy prices, and weakened foreign demand. Experts stress the importance of policy interventions to navigate these challenges and foster a more robust economic landscape.<o:p></o:p>

While Pakistan faces economic headwinds, the global economic outlook appears more optimistic, with the IMF upgrading its 2024 global growth forecast to 3.1 per cent. Despite acknowledging the remarkable resilience of the global economy, Gourinchas highlighted the persistence of risks and challenges. <o:p></o:p>

Policymakers worldwide continue to grapple with the impact of elevated interest rates, the withdrawal of pandemic-related government support, and consistently low levels of productivity. The IMF predicts that global growth will remain below its recent historical average, indicating a cautious approach toward the ongoing complexities of the global economic landscape.<o:p></o:p>

The United States and China, the world's two largest economies, received significant upgrades to their growth outlook for 2024. The IMF now expects the US economy to grow by 2.1 per cent, down slightly from an estimated 2.5 per cent in 2023. <o:p></o:p>

In contrast, China's economy is on track to achieve 4.6 per cent growth, reflecting carryover from stronger-than-expected growth in 2023 and increased government spending on capacity building. India continues to shine as a bright spot in the global economy, with a growth estimate of 6.5 per cent for 2024.<o:p></o:p>

Despite ongoing challenges in Europe, Asia remains buoyant, contributing to an overall positive growth outlook for many countries in 2024.<o:p></o:p>

(With inputs from AFP)<o:p></o:p>

The International Monetary Fund (IMF) has revised down Pakistan's growth estimate for fiscal year 2024 to two per cent, marking a 0.5 per cent reduction from October's projection of 2.

The International Monetary Fund (IMF) has revised down Pakistan's growth estimate for fiscal year 2024 to two per cent, marking a 0.5 per cent reduction from October's projection of 2.5 per cent, AFP reported. The World Economic Outlook (WEO) report for January highlighted challenges facing Pakistan's economy, with the IMF estimate falling below the government's target of 3.5 per cent GDP growth for the current year. In contrast, the IMF raised its global growth forecast to 3.1 per cent for 2024, citing unexpected resilience in major economies worldwide, including the United States and China. AFP cited IMF Chief Economist Pierre-Olivier Gourinchas, who noted, "The global economy continues to display remarkable resilience, with inflation declining steadily and growth holding up." Economists express concerns about Pakistan's economic trajectory, emphasising the need for targeted reforms to stimulate growth. The downgraded growth estimate signals a challenging environment for the country, requiring proactive measures to address structural issues and boost economic prospects. The IMF's revised projection is indicative of the multifaceted challenges Pakistan faces, including inflation, energy prices, and weakened foreign demand. Experts stress the importance of policy interventions to navigate these challenges and foster a more robust economic landscape. While Pakistan faces economic headwinds, the global economic outlook appears more optimistic, with the IMF upgrading its 2024 global growth forecast to 3.1 per cent. Despite acknowledging the remarkable resilience of the global economy, Gourinchas highlighted the persistence of risks and challenges. Policymakers worldwide continue to grapple with the impact of elevated interest rates, the withdrawal of pandemic-related government support, and consistently low levels of productivity. The IMF predicts that global growth will remain below its recent historical average, indicating a cautious approach toward the ongoing complexities of the global economic landscape. The United States and China, the world's two largest economies, received significant upgrades to their growth outlook for 2024. The IMF now expects the US economy to grow by 2.1 per cent, down slightly from an estimated 2.5 per cent in 2023. In contrast, China's economy is on track to achieve 4.6 per cent growth, reflecting carryover from stronger-than-expected growth in 2023 and increased government spending on capacity building. India continues to shine as a bright spot in the global economy, with a growth estimate of 6.5 per cent for 2024. Despite ongoing challenges in Europe, Asia remains buoyant, contributing to an overall positive growth outlook for many countries in 2024. (With inputs from AFP)

IMF downgrades Pakistan's growth forecast for 2024: Report

The German economy, already grappling with persistent inflation, high energy prices, and weak foreign demand, experienced a contraction of 0.3 per cent in the final quarter of 2023, signalling a challenging start to the new year.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

While the contraction in the fourth quarter avoided technically qualifying as a recession, with GDP stagnating in the previous two quarters, economists are cautioning that a recession may be imminent.<o:p></o:p>

The Ifo institute forecasted a 0.2 per cent decline in GDP for the first quarter of 2024, indicating a potentially challenging economic landscape. <o:p></o:p>

Reuters cited Commerzbank economist Joerg Kraemer, who noted, "Private consumption, on which the optimists are counting, has disappointed right up to the end," while Alexander Krueger from Hauck Aufhaeuser Lampe highlighted that economic output in Germany hasn't seen growth in the past four years.<o:p></o:p>

In response to the economic challenges, the heads of four prominent German lobby groups sent a joint letter to Chancellor Olaf Scholz, urging reforms to boost the country's industry. The letter, dated Tuesday, appealed for measures to address major structural challenges faced by the German economy.<o:p></o:p>

The presidents of the BDI industry association, the BDA employers' association, the DIHK Chambers of Commerce, and the ZDH association for skilled trade called for cheaper electricity prices, investment in infrastructure, and tax reform to spur an economic turnaround.<o:p></o:p>

&nbsp;The letter emphasised the urgency of implementing these measures to support German industry in the face of the economic headwinds.<o:p></o:p>

Chancellor Scholz's government faces increasing pressure as it navigates the dual challenges of transitioning toward a greener economy and shielding industries from high production costs and global competition. The recent economic downturn has heightened the urgency for reforms. <o:p></o:p>

Despite the bleak outlook, Thomas Gitzel of VP Bank identified a silver lining in easing inflation, offering potential relief. <o:p></o:p>

With the consumer price index expected to return towards the European Central Bank's 2 per cent target by the middle of the year, Gitzel sees an opportunity for European monetary authorities to cut interest rates. <o:p></o:p>

This, he believes, would benefit companies, consumers, and particularly the struggling construction industry.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The German economy, already grappling with persistent inflation, high energy prices, and weak foreign demand, experienced a contraction of 0.3 per cent in the final quarter of 2023, signalling a challenging start to the new year.

The German economy, already grappling with persistent inflation, high energy prices, and weak foreign demand, experienced a contraction of 0.3 per cent in the final quarter of 2023, signalling a challenging start to the new year. This is based on a Reuters report. While the contraction in the fourth quarter avoided technically qualifying as a recession, with GDP stagnating in the previous two quarters, economists are cautioning that a recession may be imminent. The Ifo institute forecasted a 0.2 per cent decline in GDP for the first quarter of 2024, indicating a potentially challenging economic landscape. Reuters cited Commerzbank economist Joerg Kraemer, who noted, "Private consumption, on which the optimists are counting, has disappointed right up to the end," while Alexander Krueger from Hauck Aufhaeuser Lampe highlighted that economic output in Germany hasn't seen growth in the past four years. In response to the economic challenges, the heads of four prominent German lobby groups sent a joint letter to Chancellor Olaf Scholz, urging reforms to boost the country's industry. The letter, dated Tuesday, appealed for measures to address major structural challenges faced by the German economy. The presidents of the BDI industry association, the BDA employers' association, the DIHK Chambers of Commerce, and the ZDH association for skilled trade called for cheaper electricity prices, investment in infrastructure, and tax reform to spur an economic turnaround. The letter emphasised the urgency of implementing these measures to support German industry in the face of the economic headwinds. Chancellor Scholz's government faces increasing pressure as it navigates the dual challenges of transitioning toward a greener economy and shielding industries from high production costs and global competition. The recent economic downturn has heightened the urgency for reforms. Despite the bleak outlook, Thomas Gitzel of VP Bank identified a silver lining in easing inflation, offering potential relief. With the consumer price index expected to return towards the European Central Bank's 2 per cent target by the middle of the year, Gitzel sees an opportunity for European monetary authorities to cut interest rates. This, he believes, would benefit companies, consumers, and particularly the struggling construction industry. (With inputs from Reuters)

German economy nears recession as end-of-year contraction sparks concerns