As India gears up for the G20 Summit in New Delhi we take a look at the origins and the significance of this 20-member block. If there's one grouping that holds the key to the world's future that's the group of 20 or G20 as we call it.

Decoding the economic impact of the G20 bloc

As concerns about an impending rate hike in the US arise, foreign portfolio investment flows (FPIs) into Indian markets have decreased in August following a strong inflow from April to July, according to a report by Mint.

This led to higher bond yields and a stronger dollar. August saw the weakest inflows since February. Due to worries about a rate hike, emerging countries have begun to pull out.

The portfolio flow data is inclusive of investments made on the primary market and in wholesale transactions. After three months of nonstop buying in the cash market, foreign portfolio investors (FPIs) were net sellers, Mint cited VK Vijayakumar, chief investment strategist at Geojit Financial Services.

According to Vijayakumar, the main factor driving FPIs to sell in the cash market has been the rise in US bond yields and the strength of the dollar index, both of which are detrimental to capital inflows. He said that the financial industry’s profit-booking practices also played a role in the selling by FPIs.

Mint cited Siddharth Khemka, head of retail research at Motilal Oswal Financial Services Ltd., who maintained that, the uncertainty is likely to persist. “There is no clear trend. Uncertainty has increased with no clear indication of the US Federal Reserve’s outlook from US jobs data. The China factor remains another major concern,” Khemka told Mint.

However, block agreements and private equity fund investments show that there is still significant wide market activity. According to analysts, market demand is still quite high as evidenced by subscriptions to initial public offerings (IPOs). Despite their positivity, the market trend is expected to continue to be erratic.

Another rate increase will affect the currency and liquidity, and there are negative risks, according to Khemka.

India is presently facing threats over rising oil prices and uncertainty, raising concerns.

“Currency volatility is again a major risk, and dry weather conditions in September could also add to concerns,” &nbsp;Vikram Cassatt, head of advising at Prabhudas Lilladher Pvt Ltd told Mint. He also pointed out that there may be additional variables, such as inflation rates.

Nishit Master, a portfolio manager at Axis Securities PMS, mentioned that depreciation in rupee versus dollar valuation arbitrage, which could push flows to the Chinese market because it is less expensive, as well as potential increases in energy prices and inflation, are factors that could have a “not very positive” impact on FPI flows in the short term.

On brighter side, FPIs have been selling in the majority of emerging economies in August, primarily as a result of the strengthening dollar and declining bond yields. However, they have performed well in India as compared to other rising markets.

According to Cassatt, Malaysia is the only other Asian market that has had inflows that are higher than those of China, South Korea, and a number of other nations that have experienced significant outflows.

“India can continue to outperform other emerging markets,” Cassatt said.

In terms of economic growth, India is doing well. The robust profit trajectory seen during the first quarter also helped to underpin the markets.

According to Master, the majority of developed markets, including the US, Japan, and the EU (European Union), are either experiencing a recession or have relatively poor growth rates. Even China’s growth has fallen short of market estimates and is predicted to continue to be weak moving forward.

The only big country that would experience substantial growth and draw FPI inflows in such a case is India, according to Master.

Master predicts that FPIs would continue to pour into India despite the dearth of investment prospects.

&nbsp;

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As concerns about an impending rate hike in the US arise, foreign portfolio investment flows (FPIs) into Indian markets have decreased in August following a strong inflow from April to July, according to a report by Mint.

As concerns about an impending rate hike in the US arise, foreign portfolio investment flows (FPIs) into Indian markets have decreased in August following a strong inflow from April to July, according to a report by Mint. This led to higher bond yields and a stronger dollar. August saw the weakest inflows since February. Due to worries about a rate hike, emerging countries have begun to pull out. The portfolio flow data is inclusive of investments made on the primary market and in wholesale transactions. After three months of nonstop buying in the cash market, foreign portfolio investors (FPIs) were net sellers, Mint cited VK Vijayakumar, chief investment strategist at Geojit Financial Services. According to Vijayakumar, the main factor driving FPIs to sell in the cash market has been the rise in US bond yields and the strength of the dollar index, both of which are detrimental to capital inflows. He said that the financial industry’s profit-booking practices also played a role in the selling by FPIs. Mint cited Siddharth Khemka, head of retail research at Motilal Oswal Financial Services Ltd., who maintained that, the uncertainty is likely to persist. “There is no clear trend. Uncertainty has increased with no clear indication of the US Federal Reserve’s outlook from US jobs data. The China factor remains another major concern,” Khemka told Mint. However, block agreements and private equity fund investments show that there is still significant wide market activity. According to analysts, market demand is still quite high as evidenced by subscriptions to initial public offerings (IPOs). Despite their positivity, the market trend is expected to continue to be erratic. Another rate increase will affect the currency and liquidity, and there are negative risks, according to Khemka. India is presently facing threats over rising oil prices and uncertainty, raising concerns. “Currency volatility is again a major risk, and dry weather conditions in September could also add to concerns,” Vikram Cassatt, head of advising at Prabhudas Lilladher Pvt Ltd told Mint. He also pointed out that there may be additional variables, such as inflation rates. Nishit Master, a portfolio manager at Axis Securities PMS, mentioned that depreciation in rupee versus dollar valuation arbitrage, which could push flows to the Chinese market because it is less expensive, as well as potential increases in energy prices and inflation, are factors that could have a “not very positive” impact on FPI flows in the short term. On brighter side, FPIs have been selling in the majority of emerging economies in August, primarily as a result of the strengthening dollar and declining bond yields. However, they have performed well in India as compared to other rising markets. According to Cassatt, Malaysia is the only other Asian market that has had inflows that are higher than those of China, South Korea, and a number of other nations that have experienced significant outflows. “India can continue to outperform other emerging markets,” Cassatt said. In terms of economic growth, India is doing well. The robust profit trajectory seen during the first quarter also helped to underpin the markets. According to Master, the majority of developed markets, including the US, Japan, and the EU (European Union), are either experiencing a recession or have relatively poor growth rates. Even China’s growth has fallen short of market estimates and is predicted to continue to be weak moving forward. The only big country that would experience substantial growth and draw FPI inflows in such a case is India, according to Master. Master predicts that FPIs would continue to pour into India despite the dearth of investment prospects. WATCH WION LIVE HERE

Uncertainty surrounding India's FPI likely to continue as it hits its six-month low: Report

A wave of protests has gripped Syria people are frustrated with poor living conditions despite very high living costs.

Hundreds rally in southern Syria's biggest protest in weeks

A roundup of what is going on in the global economy ahead of the G20 summit in New Delhi.

How G20 economies are doing ahead of summit

Thousands of shopkeepers across Pakistan closed their businesses on Saturday,&nbsp;September 2, 2023 in a nationwide strike, expressing their discontent with surging energy and fuel costs.&nbsp;This strike shed light on&nbsp;the economic challenges Pakistan faces due to mismanagement, an IMF agreement, and the resulting subsidy cuts, which have led to soaring petrol and electricity prices in the South Asian nation.

Pakistan's economy has suffered from decades of mismanagement and instability, culminating in a recent agreement with the International Monetary Fund (IMF) to prevent a default.

However, in exchange for IMF support, Pakistan had to reduce popular subsidies aimed at offsetting living costs.

Consequently, prices for petrol and electricity have sharply risen, deepening the financial struggles of ordinary citizens.

Also watch |&nbsp;India vs Pak: India's XI for the clash against Pakistan

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<h2>Nationwide shopkeeper protest</h2>

The strike witnessed widespread closures of markets in major cities like Lahore, Karachi, and Peshawar, with banners and placards condemning the "unreasonable surge in electricity bills and taxes."

Shopkeepers, including Lahore's Township Traders Union president Ajmal Hashmi, emphasised the urgent need for relief measures to alleviate the financial burden on the public, as reported by AFP.&nbsp;

<h2>Government's balancing act </h2>

Shopkeepers hold significant sway in Pakistan, and with national elections looming, the government faces the delicate task of keeping their support while adhering to IMF-imposed austerity measures. Pakistan's historically low tax revenues, particularly from traders, have contributed to its colossal foreign debt, making it imperative to break the cycle of relying on IMF bailouts.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-caretaker-pm-blames-us-for-strengthening-terrorists-in-the-region-631583">Pakistan: Caretaker PM blames US for strengthening terrorists in the region</a>

<h2 class="videoWrapper trancodeVideo">Escalating costs and public angst </h2>

The government's decision to raise petrol prices beyond 300 rupees ($0.98)&nbsp;per litre&nbsp;for the first time in Pakistan's history, along with an all-time low exchange rate against the dollar, has exacerbated economic challenges.

August's year-on-year inflation at 27.4 per cent and an eight per cent hike in motor fuel bills from July have further strained public finances, causing a growing divide between the government and the general populace.

As Pakistan awaits the announcement of an election date, a caretaker government has been in control since the dissolution of parliament.

The interim leadership and the terms of the IMF agreement were established during former Prime Minister Shehbaz Sharif's tenure, following the ousting of Imran Khan in 2022. Khan, a prominent political figure, remains incarcerated, facing legal challenges aimed at barring his participation in the upcoming elections.

(With inputs from agencies) 
 
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Thousands of shopkeepers across Pakistan closed their businesses on Saturday, September 2, 2023 in a nationwide strike, expressing their discontent with surging energy and fuel costs.

Thousands of shopkeepers across Pakistan closed their businesses on Saturday, September 2, 2023 in a nationwide strike, expressing their discontent with surging energy and fuel costs. This strike shed light on the economic challenges Pakistan faces due to mismanagement, an IMF agreement, and the resulting subsidy cuts, which have led to soaring petrol and electricity prices in the South Asian nation. Pakistan's economy has suffered from decades of mismanagement and instability, culminating in a recent agreement with the International Monetary Fund (IMF) to prevent a default. However, in exchange for IMF support, Pakistan had to reduce popular subsidies aimed at offsetting living costs. Consequently, prices for petrol and electricity have sharply risen, deepening the financial struggles of ordinary citizens. Also watch | India vs Pak: India's XI for the clash against Pakistan Nationwide shopkeeper protest The strike witnessed widespread closures of markets in major cities like Lahore, Karachi, and Peshawar, with banners and placards condemning the "unreasonable surge in electricity bills and taxes." Shopkeepers, including Lahore's Township Traders Union president Ajmal Hashmi, emphasised the urgent need for relief measures to alleviate the financial burden on the public, as reported by AFP. Government's balancing act Shopkeepers hold significant sway in Pakistan, and with national elections looming, the government faces the delicate task of keeping their support while adhering to IMF-imposed austerity measures. Pakistan's historically low tax revenues, particularly from traders, have contributed to its colossal foreign debt, making it imperative to break the cycle of relying on IMF bailouts. Also read | Pakistan: Caretaker PM blames US for strengthening terrorists in the region Escalating costs and public angst The government's decision to raise petrol prices beyond 300 rupees ($0.98) per litre for the first time in Pakistan's history, along with an all-time low exchange rate against the dollar, has exacerbated economic challenges. August's year-on-year inflation at 27.4 per cent and an eight per cent hike in motor fuel bills from July have further strained public finances, causing a growing divide between the government and the general populace. As Pakistan awaits the announcement of an election date, a caretaker government has been in control since the dissolution of parliament. The interim leadership and the terms of the IMF agreement were established during former Prime Minister Shehbaz Sharif's tenure, following the ousting of Imran Khan in 2022. Khan, a prominent political figure, remains incarcerated, facing legal challenges aimed at barring his participation in the upcoming elections. (With inputs from agencies) WATCH WION LIVE HERE:

Pakistan shopkeepers stage nationwide strike in protest against soaring inflation

Drought deals second blow as Sri Lanka struggles back from crisis.

Drought hurts Sri Lanka's economic revival hopes

Citigroup says India’s cut to cooking gas cost might help slow inflation and shift attention to lowering the price of petrol and diesel ahead of certain important festivals and critical elections. Economists at Citibank, in a research note, said the government's plan to cut the price of cooking gas might ease inflation by roughly 30 basis points. Citibank economists suggested that more fiscal measures need to be discussed to reduce inflation and boost rural incomes. The economists noted that excise tax cuts are a possible solution to the high cost of fuel and getting inflation under control.

Citibank predicts relief: Cooking gas price cut to tackle inflation

India’s economy expanded at its quickest rate in a year in the April-June quarter, data is expected to indicate on Thursday. Meanwhile, economists foresee a slowdown.

The median projection of economists surveyed by Reuters indicates that India’s gross domestic product (GDP) expanded 7.7 per cent in the most recent quarter, which is faster growth than the country experienced in the April to June quarter in 2022.

According to economists, falling commodity costs have allowed for manufacturers to raise profits and somewhat offset the 250-basis point increase in interest rates since May 2022.

India, being the third-largest economy in Asia, has been able to defy the global downturn that has left several other economies, including China, faltering. India’s services sector, which accounts for more than half of its economic output, has had strong growth.

For the longest period since August 2011, the S&amp;P Global India services Purchasing Managers’ Index has been consistently over the 50-point threshold distinguishing growth from contraction for almost two years.

The Indian government has been putting more money toward infrastructure each year to stimulate growth. India spent roughly 28 per cent of its 10 trillion Indian rupee ($120.91 billion) capital expenditure budget in the first three months of the fiscal year, which began on April 1.

Kaushik Das, chief economist for India at Deutsche Bank, said that a 3 per cent drop in wholesale prices will also boost the nation's strong headline growth by lowering the “GDP deflator,” which is used to estimate real economic growth by excluding price increases.

Setbacks ahead&nbsp;

According to economists, the price effect may change in the upcoming months, and growth may slow.

August has been unusually dry after above average rainfall in July, which has driven up the cost of basic foods and reduced discretionary expenditure.

In India’s hinterlands, where agriculture provides the majority of the country’s income, dry weather could also reduce agricultural productivity and weaken the influence of the locals.

A comparison to higher growth rates from a year ago as well as slowing exports and global growth will also have an impact on future quarters’ growth.

Rahul Bajoria, an economist at Barclays, stated that there is some evidence that the activity is decreasing sequentially. “The market as a whole believes that things will slow down.”

(With inputs from Reuters)

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India’s economy expanded at its quickest rate in a year in the April-June quarter, data is expected to indicate on Thursday. Meanwhile, economists foresee a slowdown.

India’s economy expanded at its quickest rate in a year in the April-June quarter, data is expected to indicate on Thursday. Meanwhile, economists foresee a slowdown. The median projection of economists surveyed by Reuters indicates that India’s gross domestic product (GDP) expanded 7.7 per cent in the most recent quarter, which is faster growth than the country experienced in the April to June quarter in 2022. According to economists, falling commodity costs have allowed for manufacturers to raise profits and somewhat offset the 250-basis point increase in interest rates since May 2022. India, being the third-largest economy in Asia, has been able to defy the global downturn that has left several other economies, including China, faltering. India’s services sector, which accounts for more than half of its economic output, has had strong growth. For the longest period since August 2011, the S&P Global India services Purchasing Managers’ Index has been consistently over the 50-point threshold distinguishing growth from contraction for almost two years. The Indian government has been putting more money toward infrastructure each year to stimulate growth. India spent roughly 28 per cent of its 10 trillion Indian rupee ($120.91 billion) capital expenditure budget in the first three months of the fiscal year, which began on April 1. Kaushik Das, chief economist for India at Deutsche Bank, said that a 3 per cent drop in wholesale prices will also boost the nation's strong headline growth by lowering the “GDP deflator,” which is used to estimate real economic growth by excluding price increases. Setbacks ahead According to economists, the price effect may change in the upcoming months, and growth may slow. August has been unusually dry after above average rainfall in July, which has driven up the cost of basic foods and reduced discretionary expenditure. In India’s hinterlands, where agriculture provides the majority of the country’s income, dry weather could also reduce agricultural productivity and weaken the influence of the locals. A comparison to higher growth rates from a year ago as well as slowing exports and global growth will also have an impact on future quarters’ growth. Rahul Bajoria, an economist at Barclays, stated that there is some evidence that the activity is decreasing sequentially. “The market as a whole believes that things will slow down.” (With inputs from Reuters) WATCH WION LIVE HERE

India’s economy is expected to expand at its fastest rate in a year: Estimates

The economy in the larger region of Europe and Central Asia would contract by more than 4% this year as a result of the shocks from the Ukraine crisis. According to the bank, the economies of Russia and Ukraine are predicted to contract by over 11% and over 45%, respectively, by the end of the year.

Russia-Ukraine War takes a toll on the Russian economy

Worries about the economy, rising interest rates, and persistent price increases all contributed to the worst drop in consumer confidence in the United States in over two years. The conference board index dropped, reversing most of the progress made over the prior two months.

Consumer confidence at 2-year low

China’s slump is battering its commodities sector, with profits from coal mining to metals production continuing to decline as the property crisis worsens and the economy slows.

China's slowing economy batters steel, oil, coal sectors

Evergrande Group, the world's most-indebted property developer, has revealed a narrower net loss for the first half of this year. The company's financial struggles have been at the heart of a crisis that has sent shockwaves through China's property market since late 2021.

China’s Evergrande reports narrower loss

India’s digital public infrastructure, such as Aadhaar, the Universal Payments Interface (UPI), and digilocker, would change India from an informal, low-productivity, numerous collection of micro-economies to a formal, high-productivity mega-economy, said Chairman and Co-Founder of Infosys Nandan Nilekani on Sunday.

"What is fundamentally happening is that India is going from multiple sets of micro-economies to a single mega-economy. This is the trend for the next 20 years. This has been solved by a new way of solving problems called digital public infrastructure, which solves problems with technology at the population scale," Nilekani said at the B20 Summit in Delhi.

Furthermore, while the rest of the world struggles to reconcile innovation and regulation, the senior technology executive claims that India has already found a balance through a participatory form of data governance and architecture.

"When you use a digital platform, it generates data. India has developed a novel method for people and businesses to monetize their data footprint. This data footprint is their digital capital. Individuals may use digital capital to advance in life. This notion does not exist anyplace in the world," he added.

Nilekani presented various data points relating to DPIs to demonstrate the country's widespread approval. For example, he stated that due to DPIs, India was able to send $4.5 billion to the bank accounts of 150 million residents during COVID, and 700 million people already have bank accounts linked to their Aadhaar numbers.

UPI has grown to become the world's most important payment system, with over 9.66 billion transactions conducted on the network each month, and 1.3 billion individuals now utilize Aadhaar to do 80 million identity authentication transactions every day.

"India accomplished in 9 years what would have taken 47 years using traditional methods. "We went from being one of the least banked countries to one of the most financially inclusive," Nilekani said.

"Without the $250 billion IT services industry, none of this would have been possible. In addition, we have an exceptional startup ecosystem. We had 1,000 startups in 2016. We now have one lakh. "It is not a 10 percent&nbsp;linear growth, but a 10x growth," he continued.

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India’s digital public infrastructure, such as Aadhaar, the Universal Payments Interface (UPI), and digilocker, would change India from an informal, low-productivity, numerous collection of micro-economies to a formal, high-productivity mega-economy, said Chairman and Co-Founder of Infosys Nandan Nilekani on Sunday.

India’s digital public infrastructure, such as Aadhaar, the Universal Payments Interface (UPI), and digilocker, would change India from an informal, low-productivity, numerous collection of micro-economies to a formal, high-productivity mega-economy, said Chairman and Co-Founder of Infosys Nandan Nilekani on Sunday. "What is fundamentally happening is that India is going from multiple sets of micro-economies to a single mega-economy. This is the trend for the next 20 years. This has been solved by a new way of solving problems called digital public infrastructure, which solves problems with technology at the population scale," Nilekani said at the B20 Summit in Delhi. Furthermore, while the rest of the world struggles to reconcile innovation and regulation, the senior technology executive claims that India has already found a balance through a participatory form of data governance and architecture. "When you use a digital platform, it generates data. India has developed a novel method for people and businesses to monetize their data footprint. This data footprint is their digital capital. Individuals may use digital capital to advance in life. This notion does not exist anyplace in the world," he added. Nilekani presented various data points relating to DPIs to demonstrate the country's widespread approval. For example, he stated that due to DPIs, India was able to send $4.5 billion to the bank accounts of 150 million residents during COVID, and 700 million people already have bank accounts linked to their Aadhaar numbers. UPI has grown to become the world's most important payment system, with over 9.66 billion transactions conducted on the network each month, and 1.3 billion individuals now utilize Aadhaar to do 80 million identity authentication transactions every day. "India accomplished in 9 years what would have taken 47 years using traditional methods. "We went from being one of the least banked countries to one of the most financially inclusive," Nilekani said. "Without the $250 billion IT services industry, none of this would have been possible. In addition, we have an exceptional startup ecosystem. We had 1,000 startups in 2016. We now have one lakh. "It is not a 10 percent linear growth, but a 10x growth," he continued. WATCH WION LIVE HERE

Digital payments driving India's shift to unified mega-economy, says Nilekani

China's authorities will struggle to attract foreign investors to its equities without more economic stimulation. The MSCI China index fell 1.3% further after Friday's closing. Country Gardens Holding, China's biggest developer previously, topped August losses with a 49% decline on concerns it may default on its dollar debt. Global funds have removed roughly $11 billion from the mainland market in a 13-day run through Wednesday, the longest since 2016. After beginning the year well, Morgan Stanley and Goldman Sachs Group lowered their targets on Chinese equities last week.

Chinese equities' performance dampens 2023 growth outlook

The BRICS grouping has expanded for the first time since 2010. This time, six new countries will join the grouping. The grouping is expected to recalibrate the world economy.

Expanded BRICS and its economic implications

Private equity firm veritas capital has thrown its hat into the ring, extending an offer to acquire Blackberry. Blackberry, once renowned for its iconic business smartphones, has undergone a transformation over the years. The company pivoted away from its smartphone business, instead focusing on software for cars and cybersecurity. The private equity firm, with a penchant for government-focused tech investments, has made an offer to acquire blackberry in its entirety. Details of the offer remain confidential, but sources indicate that Blackberry is actively engaged in discussions with other potential buyers as well.

Veritas capital offers to buy Blackberry

India's prime minister Narendra Modi said to address the B20 summit India 2023 later this afternoon. The B20 is the official G20 Dialogue Forum with the global business community of more than 1,500 delegates from 55 countries.

B20 group focused on boosting economic growth: PM Modi

India's Prime Minister Narendra Modi addressed the B20 summit India 2023 today. The B20 is the official G20 Dialogue Forum with the global business community of more than 1,500 delegates from 55 countries.

B20: Official G20 dialogue forum with global business community

In the fast-paced arena of global economics sometimes all it takes is a pair of sneakers to tell a compelling story. Nike, the iconic sportswear brand synonymous with Innovation and style is currently experiencing a rather uncharacteristic stumble.

Nike's stock faces millennial shift

China has made a number of pledges recently to revive the economy’s recovery and improve the business environment as concerns about the growth outlook continue to mount.

Everything China is doing to juice its flagging economy

The G20 Leadership Summit in New Delhi next month. The Australian Minister, Tim Ayers has expressed optimism and satisfaction about the evolving economic ties with India.

Tim Ayres expresses optimism about economic ties with India

Tim Ayres, the Assistant Minister for Trade and Assistant Minister focusing on the India-Australia Economic Cooperation and Trade Agreement (ECTA), expressed optimism and satisfaction about the evolving economic ties between the two nations. Highlighting the speedy ratification of the ECTA agreement by both the Australian Parliament and their Indian counterparts, Ayres emphasized its immediate impact on businesses. Speaking to our diplomatic correspondent Sidhant Sibal in Delhi, "Australian businesses are already utilizing the provisions of the agreement to enhance market access and engagement with Indian firms."

Australian Minister Ayres Supports Swift Economic Talks with India

In the grand global population race, India has emerged as the frontrunner, boasting a colossal population of 1,428 million people, just edging past China's 1,425 million. It's a neck-and-neck population contest, but when you peek at their economic narratives, a contrasting tale unfolds.

As per the most recent World Bank data from 2022, China's gross domestic product (GDP) looms large at 17.96 trillion USD, while India's registers at a comparatively modest 3.39 trillion USD. What's noteworthy is that this economic chasm is only growing wider.

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The graph above shows the widening gap in Gross domestic product (GDP) between China (in red)&nbsp;and India (in blue).&nbsp;

Rewinding to 1980, China and India's economic landscapes were very similar, with GDP numbers almost in lockstep. India even held a slight edge in GDP per capita over its much larger neighbour to the east. However, China embarked on a monumental journey, with its economy surging at an astonishing average rate of 10 per cent between 1980 and 2010, leaving India trailing far behind.

The reasons behind China's meteoric economic ascent are multifaceted. Yet, a pivotal factor lies in the increasing participation of women in China's workforce, adding an extra dimension to its growth story.

With male labour force participation nearly on par in <a href="https://data.worldbank.org/indicator/SL.TLF.CACT.MA.ZS?locations=CN">China</a>&nbsp;(73 per cent as per 2022) and <a href="https://data.worldbank.org/indicator/SL.TLF.CACT.MA.ZS?locations=IN">India</a>&nbsp;(74 per cent as per 2022), the divergence primarily stems from female involvement. In 2022, China boasted a robust 61 per cent female labour force participation rate, whereas India lagged significantly at just 24 per cent.

India can no longer attribute China's larger population as the sole rationale for its superior GDP. This prompts a crucial question: does this surplus of female labour participation truly underpin China's formidable GDP? Maybe, Yes.

“The high participation of women in the workforce in China is a combination of its socialist legacy and subsequent economic reforms and opening up after Mao Zedong's (Chinese communist leader and founder of the People's Republic of China) passing. The high level of investment by the state in human capital, education and health is one of the key achievements of Mao era (1949-78). It also emerged from the socialist understanding that both men and women had to participate in labour - starting from agricultural production,” Dr Anand P. Krishnan, Fellow, Centre for Himalayan Studies, Shiv Nadar Institution of Eminence, Delhi NCR, and Visiting Associate Fellow, Institute of Chinese Studies in Delhi told WION.

Following initiatives to protect women's rights, including the marriage law passed after the People's Republic's establishment, Chinese women have enjoyed increased mobility and opportunities. This trend continued with economic reforms since the 1980s, leading to more women pursuing higher education and careers. Declining urban birth rates reduced childcare responsibilities, allowing women to delay starting families. Marriage rates have fallen as women prioritise careers, leading to a rise in female CEOs and a strong presence in retail and service industries. They are also increasing moving to heavy labour intensive sectors - like women constitute nearly 14-16 per cent of all construction workers, explains Dr Krishnan.

The recent dip in the female labour force participation rate to 61 per cent has also got the Party-state to come up with plans to address it. Such as a <a href="https://www.sixthtone.com/news/1008606">10-year plan for women's development</a>.

The Party-state is also intending to ask employers not to mention gender preferences in job advertisement, and also not ask women about their marital and pregnancy status.

“However, notwithstanding this, things are not rosy for women. With the removal of the one-child policy, with the Party-state incrementally raising it to two-child and now three-child, women are now forced to juggle with both work and childcare,” continues Dr Krishnan.

In a <a href="https://ceda.ashoka.edu.in/the-elephant-is-set-to-overtake-the-dragon-or-is-it/">study</a> titled ‘The Elephant is set to overtake the Dragon, or is it?,’ conducted by the Centre for Economic Data and Analysis (CEDA) under Ashoka University, there has been a revelation that further fortifies this argument. According to the&nbsp;research, as of 2021, China boasted approximately 478.3 million women aged 15-64, while India's count stood at 458.2 million women in the same age bracket — a disparity that seems slight. However, the female labour force participation rates for that year painted a strikingly different picture; China's workforce encompassed a formidable 338.6 million, whereas India's tally was a mere 112.8 million. So, even though India's working-age demographic group almost mirrored China's in size, but its labour force was noticeably smaller.

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*This is an interactive data chart. Click on the bars to get the figures*

<h2>When can we expect India to surpass China in terms of its labour force?</h2>

The study suggests that this won't occur in the near future, but there's a glimmer of hope. If we assume that the labour force participation rate (LFPR) remains constant at its most recent levels for both countries, it'll be approximately 27 years before this milestone is reached. It's only in 2051 that India is projected to outpace China in terms of labour force numbers, assuming all other factors remain unchanged. These projections are based on United Nations population estimates spanning up to the year 2100.

Now, if India's LFPR were to surge to 60 per cent, this shift could occur by 2040. However, for India's labour force to surpass China's in absolute numbers by 2030, India's LFPR would need to make a sharp jump from its current level, which hovers at around 58 per cent (based on the labour force participation rate by usual status for the 15-64 age group as estimated by the Periodic Labour Force Survey, 2021-22), to 71 per cent within the next seven years. Achieving such a significant improvement in such a short span of time seems highly unlikely.

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In the grand global population race, India has emerged as the frontrunner, boasting a colossal population of 1,428 million people, just edging past China's 1,425 million.

In the grand global population race, India has emerged as the frontrunner, boasting a colossal population of 1,428 million people, just edging past China's 1,425 million. It's a neck-and-neck population contest, but when you peek at their economic narratives, a contrasting tale unfolds. As per the most recent World Bank data from 2022, China's gross domestic product (GDP) looms large at 17.96 trillion USD, while India's registers at a comparatively modest 3.39 trillion USD. What's noteworthy is that this economic chasm is only growing wider. × The graph above shows the widening gap in Gross domestic product (GDP) between China (in red) and India (in blue). Rewinding to 1980, China and India's economic landscapes were very similar, with GDP numbers almost in lockstep. India even held a slight edge in GDP per capita over its much larger neighbour to the east. However, China embarked on a monumental journey, with its economy surging at an astonishing average rate of 10 per cent between 1980 and 2010, leaving India trailing far behind. The reasons behind China's meteoric economic ascent are multifaceted. Yet, a pivotal factor lies in the increasing participation of women in China's workforce, adding an extra dimension to its growth story. With male labour force participation nearly on par in China (73 per cent as per 2022) and India (74 per cent as per 2022), the divergence primarily stems from female involvement. In 2022, China boasted a robust 61 per cent female labour force participation rate, whereas India lagged significantly at just 24 per cent. India can no longer attribute China's larger population as the sole rationale for its superior GDP. This prompts a crucial question: does this surplus of female labour participation truly underpin China's formidable GDP? Maybe, Yes. “The high participation of women in the workforce in China is a combination of its socialist legacy and subsequent economic reforms and opening up after Mao Zedong's (Chinese communist leader and founder of the People's Republic of China) passing. The high level of investment by the state in human capital, education and health is one of the key achievements of Mao era (1949-78). It also emerged from the socialist understanding that both men and women had to participate in labour - starting from agricultural production,” Dr Anand P. Krishnan, Fellow, Centre for Himalayan Studies, Shiv Nadar Institution of Eminence, Delhi NCR, and Visiting Associate Fellow, Institute of Chinese Studies in Delhi told WION. Following initiatives to protect women's rights, including the marriage law passed after the People's Republic's establishment, Chinese women have enjoyed increased mobility and opportunities. This trend continued with economic reforms since the 1980s, leading to more women pursuing higher education and careers. Declining urban birth rates reduced childcare responsibilities, allowing women to delay starting families. Marriage rates have fallen as women prioritise careers, leading to a rise in female CEOs and a strong presence in retail and service industries. They are also increasing moving to heavy labour intensive sectors - like women constitute nearly 14-16 per cent of all construction workers, explains Dr Krishnan. The recent dip in the female labour force participation rate to 61 per cent has also got the Party-state to come up with plans to address it. Such as a 10-year plan for women's development. The Party-state is also intending to ask employers not to mention gender preferences in job advertisement, and also not ask women about their marital and pregnancy status. “However, notwithstanding this, things are not rosy for women. With the removal of the one-child policy, with the Party-state incrementally raising it to two-child and now three-child, women are now forced to juggle with both work and childcare,” continues Dr Krishnan. In a study titled ‘The Elephant is set to overtake the Dragon, or is it?,’ conducted by the Centre for Economic Data and Analysis (CEDA) under Ashoka University, there has been a revelation that further fortifies this argument. According to the research, as of 2021, China boasted approximately 478.3 million women aged 15-64, while India's count stood at 458.2 million women in the same age bracket — a disparity that seems slight. However, the female labour force participation rates for that year painted a strikingly different picture; China's workforce encompassed a formidable 338.6 million, whereas India's tally was a mere 112.8 million. So, even though India's working-age demographic group almost mirrored China's in size, but its labour force was noticeably smaller. × *This is an interactive data chart. Click on the bars to get the figures* When can we expect India to surpass China in terms of its labour force? The study suggests that this won't occur in the near future, but there's a glimmer of hope. If we assume that the labour force participation rate (LFPR) remains constant at its most recent levels for both countries, it'll be approximately 27 years before this milestone is reached. It's only in 2051 that India is projected to outpace China in terms of labour force numbers, assuming all other factors remain unchanged. These projections are based on United Nations population estimates spanning up to the year 2100. Now, if India's LFPR were to surge to 60 per cent, this shift could occur by 2040. However, for India's labour force to surpass China's in absolute numbers by 2030, India's LFPR would need to make a sharp jump from its current level, which hovers at around 58 per cent (based on the labour force participation rate by usual status for the 15-64 age group as estimated by the Periodic Labour Force Survey, 2021-22), to 71 per cent within the next seven years. Achieving such a significant improvement in such a short span of time seems highly unlikely. WATCH WION LIVE HERE:

Data Lab | Are China's women turbocharging its economy? Can India catch up?

India’s ambition to become a net-zero nation will be a 12.7 trillion dollar economic opportunity. A Bloomberg NEF report on India’s energy outlook tells how India can balance its climate and economic goals.

Emissions vs economy: India’s balancing act

India's ambition to become a net-zero nation will be a 12.7 trillion dollar economic opportunity. A Bloomberg NEF report on India's energy outlook tells how India can balance its climate and economic goals.

Emissions vs economy: India's balancing act

The US composite PMI index, which tracks manufacturing and service sectors, fell to 50.4 in August from 52 in July. That's the biggest drop since November 2022. When looked at individually, the manufacturing & services sector data was even more worrying business activity in the services sector was at 51.0 in August. That's the lowest since February this year. The manufacturing index fell deeper into contraction territory at 47, that's down from 49 in July and marked the fourth straight month of contraction.

Manufacturing and services sector activity falls in August

The U.S. Department of education has started waiving 39 billion dollars in student debt for over 800,000 students in income-driven repayment programs who have made monthly payments for 20 years.

Borrowers with $39 billion in student loans finally see relief

In recent weeks, China's economic slowdown has alarmed international leaders and investors who are no longer counting on it to be a bulwark against weakness elsewhere. In fact, for the first time in decades, the world’s second economy is itself the problem.

China’s economy on slow lane: What's gone wrong?

India has made its mark, propelling itself to the 11th position in the global rankings. With a 5.4% surge in 2022, this industry has become a beacon of hope for the Indian economy.

India moves up to 11th position in global direct selling ranking

The BRICS Summit is all set to take place from August 22 to 24 at Johannesburg, South Africa. The leaders of India, China, Brazil and South Africa will be attending the meeting, while Russia will be represented by its foreign minister.

This year's BRICS Summit is taking place amid tectonic geopolitical shifts, in which two key member states - Russia and China - are playing a starring role. Western sanctions against Russia have started to hurt the economy, with the rouble weakening due to fall in exports and a flight of capital. China, on the other hand, is locked in an economic tussle with the United States while facing its worst downturn in four decades.

There are several indications that the upcoming BRICS summit may focus on greater economic co-operation to navigate the uncertainties arising out of the Ukraine War and the global economic slowdown. Perhaps, the Johannesburg summit is a great opportunity for the five-member grouping of emerging economies to break the long-held view about its 'irrelevance'.

BRICS expansion

All eyes are now whether the grouping will expand to add 40 more countries, including Argentina, Iran and Saudi Arabia. Many argue that the expansion of the grouping will help in counter-balancing the US-led Group of Seven's influence on the global economy. This will not only help the BRICS remain relevant in the global order but also provide an alternate source of financing for the developing world. Any expansion in BRICS' membership will also be seen as China's attempt to emerge as the leader of the developing world, much to the chagrin of rival India.

China's De-dollarisation move

The BRICS plan to expand its membership is closely linked to China's move to de-dollarise the global trade. Through de-dollarisation, China seeks to eventually replace the US dollar with other denominations. But with China locked in a fierce economic 'cold war' with the US, there are already indications that Beijing intends to push yuan as an alternative to the US dollar. Two member countries, Brazil and Russia, are already paying for Chinese goods in yuan. However, the US dollar continues to remain the global reserve currency, accounting for about 80 per cent of the global trade.

BRICS common currency?

However, China's ambitions for the yuan are likely to hit a roadblock. India, China's regional rival which harbours ambitions of making the rupee a dominant global player, will not like the yuan becoming a major reserve currency. Given the complicated political relations between the two neighbours, it is not very difficult to understand India's concerns. Nevertheless, the grouping has been stressing on the need to reduce the dependence on the US dollar. But reports suggest that a framework for a common 'BRICS currency', first mooted by Russia and Brazil, is unlikely to be discussed at the upcoming summit.

Greater trade with Africa

A substantial part of the discussions&nbsp;is likely to revolve around deepening trade ties with African countries. The grouping is all set to explore greater opportunities in the continent, which is considered a largely untapped market, through the African Continental Free Trade Area. The BRICS, China in particular,&nbsp;is already Africa's biggest trading partner, with trade expected to reach more than $500 billion by 2030.&nbsp;

BRICS economic potential

Constituting over 40 per cent of the world population, the BRICS is a huge unexplored market. The five member countries together account for over one-fourth of the global Gross Domestic Product. As per a UN report, foreign investments into the five-member BRICS quadrupled between 2001 and 2021,&nbsp;helping ignite economic growth.&nbsp;&nbsp;

The BRICS economies represent 18 per cent of global exports, with a huge potential for more exports between the member countries. Moreover, an expansion of the BRICS is likely to not only boost global trade but also the grouping's economic relevance. One estimate suggests that an expanded BRICS can contribute over 50 per cent of global GDP by 2030.

The BRICS Summit is all set to take place from August 22 to 24 at Johannesburg, South Africa. The leaders of India, China, Brazil and South Africa will be attending the meeting, while Russia will be represented by its foreign minister.

The BRICS Summit is all set to take place from August 22 to 24 at Johannesburg, South Africa. The leaders of India, China, Brazil and South Africa will be attending the meeting, while Russia will be represented by its foreign minister. This year's BRICS Summit is taking place amid tectonic geopolitical shifts, in which two key member states - Russia and China - are playing a starring role. Western sanctions against Russia have started to hurt the economy, with the rouble weakening due to fall in exports and a flight of capital. China, on the other hand, is locked in an economic tussle with the United States while facing its worst downturn in four decades. There are several indications that the upcoming BRICS summit may focus on greater economic co-operation to navigate the uncertainties arising out of the Ukraine War and the global economic slowdown. Perhaps, the Johannesburg summit is a great opportunity for the five-member grouping of emerging economies to break the long-held view about its 'irrelevance'. BRICS expansion All eyes are now whether the grouping will expand to add 40 more countries, including Argentina, Iran and Saudi Arabia. Many argue that the expansion of the grouping will help in counter-balancing the US-led Group of Seven's influence on the global economy. This will not only help the BRICS remain relevant in the global order but also provide an alternate source of financing for the developing world. Any expansion in BRICS' membership will also be seen as China's attempt to emerge as the leader of the developing world, much to the chagrin of rival India. China's De-dollarisation move The BRICS plan to expand its membership is closely linked to China's move to de-dollarise the global trade. Through de-dollarisation, China seeks to eventually replace the US dollar with other denominations. But with China locked in a fierce economic 'cold war' with the US, there are already indications that Beijing intends to push yuan as an alternative to the US dollar. Two member countries, Brazil and Russia, are already paying for Chinese goods in yuan. However, the US dollar continues to remain the global reserve currency, accounting for about 80 per cent of the global trade. BRICS common currency? However, China's ambitions for the yuan are likely to hit a roadblock. India, China's regional rival which harbours ambitions of making the rupee a dominant global player, will not like the yuan becoming a major reserve currency. Given the complicated political relations between the two neighbours, it is not very difficult to understand India's concerns. Nevertheless, the grouping has been stressing on the need to reduce the dependence on the US dollar. But reports suggest that a framework for a common 'BRICS currency', first mooted by Russia and Brazil, is unlikely to be discussed at the upcoming summit. Greater trade with Africa A substantial part of the discussions is likely to revolve around deepening trade ties with African countries. The grouping is all set to explore greater opportunities in the continent, which is considered a largely untapped market, through the African Continental Free Trade Area. The BRICS, China in particular, is already Africa's biggest trading partner, with trade expected to reach more than $500 billion by 2030. BRICS economic potential Constituting over 40 per cent of the world population, the BRICS is a huge unexplored market. The five member countries together account for over one-fourth of the global Gross Domestic Product. As per a UN report, foreign investments into the five-member BRICS quadrupled between 2001 and 2021, helping ignite economic growth. The BRICS economies represent 18 per cent of global exports, with a huge potential for more exports between the member countries. Moreover, an expansion of the BRICS is likely to not only boost global trade but also the grouping's economic relevance. One estimate suggests that an expanded BRICS can contribute over 50 per cent of global GDP by 2030.

BRICS Summit 2023: What to expect on the economic front?

Has China's growth story hit a roadblock? The GDP growth rate has slowed down. The national debt is nearing the IMF red line & now property giant Evergrande has filed for bankruptcy protection. Molly Gambhir reports.

Gravitas: Has China's growth story hit a roadblock? | Evergrande files for bankruptcy protection

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