A Reuters report suggests India is considering selling minority stakes in four state-run banks as part of an effort to comply with public shareholding requirements set by the securities and exchange board of India.&nbsp;

According to the report, the finance ministry is preparing to seek approval from the federal cabinet in the coming months for the sale of stakes in Central Bank of India, Indian Overseas Bank, UCO Bank, and Punjab and Sind Bank.&nbsp;

As of September 2024, the Indian government holds substantial stakes in these banks. SEBI mandates that listed companies maintain at least 25 per cent public shareholding, though it has granted an exemption to government-owned entities until august 2026.&nbsp;

The Indian government is reportedly planning to sell these stakes via an offer for sale on the open market, though specific details on the timing and size of the stake sale will depend on market conditions. The move follows similar efforts by other public sector banks, such as Punjab National Bank and Bank of Maharashtra, which recently raised significant capital through qualified institutional placements.&nbsp;

Shares of the affected banks saw modest gains of 3 to 4 per cent following the news. However, the report did not comment on whether the government would be able to meet SEBI’s deadline or seek a further extension.&nbsp;

This planned stake sale comes as India continues its push for financial sector reforms, including increasing private participation and improving capital flows in state-run banks. The outcome will be closely watched by both domestic and international investors.&nbsp;

A Reuters report suggests India is considering selling minority stakes in four state-run banks as part of an effort to comply with public shareholding requirements set by the securities and exchange board of India.

A Reuters report suggests India is considering selling minority stakes in four state-run banks as part of an effort to comply with public shareholding requirements set by the securities and exchange board of India. According to the report, the finance ministry is preparing to seek approval from the federal cabinet in the coming months for the sale of stakes in Central Bank of India, Indian Overseas Bank, UCO Bank, and Punjab and Sind Bank. As of September 2024, the Indian government holds substantial stakes in these banks. SEBI mandates that listed companies maintain at least 25 per cent public shareholding, though it has granted an exemption to government-owned entities until august 2026. The Indian government is reportedly planning to sell these stakes via an offer for sale on the open market, though specific details on the timing and size of the stake sale will depend on market conditions. The move follows similar efforts by other public sector banks, such as Punjab National Bank and Bank of Maharashtra, which recently raised significant capital through qualified institutional placements. Shares of the affected banks saw modest gains of 3 to 4 per cent following the news. However, the report did not comment on whether the government would be able to meet SEBI’s deadline or seek a further extension. This planned stake sale comes as India continues its push for financial sector reforms, including increasing private participation and improving capital flows in state-run banks. The outcome will be closely watched by both domestic and international investors.

India prepares bank stake sale amid reform push

India's finance minister, Nirmala Sitharaman, called for lower interest rates and downplayed any dangers to economic growth.

The Reserve Bank of India has kept rates unchanged for over two years.

Sitharaman follows trade minister Piyush Goyal, who last week argued for a cut in interest rates, stating that economic growth required further stimulus.

The RBI governor, Shaktikanta Das, chose not to address Goyal's comments after the central bank kept rates steady for the tenth straight meeting in October. 
According to Das, a rate cut right now would be "Very risky."

The governor added that easing will only be considered if inflation reaches the central bank's target of 4 per cent.

The RBI's next policy decision is scheduled for December 6th.

Speaking at an event, Sitharaman said, given India's growth requirements, there are "Many different voices saying the cost of borrowing is really very stressful." She added, "Bank interest rates will have to be far more affordable."

For the current fiscal year, which ends in March 2025, the RBI projects growth of 7.2 per cent.

However, some analysts, notably those at investment banks like Goldman Sachs, have projected growth as low as 6.5 per cent.

Worries that consumers are cutting back on spending are fuelled by the lacklustre sales of all goods, from soaps to vehicles.

However, downplaying the growth risks, Sitharaman said the government is keeping a careful eye on the economy and is ready to take "All necessary measures" to increase economic activity.

She said, "Let me assure you the government is fully aware of the challenges posed by both domestic and global factors." The finance minister, citing strong economic fundamentals added, "There is no cause for undue concern."

India's finance minister, Nirmala Sitharaman, called for lower interest rates and downplayed any dangers to economic growth. The Reserve Bank of India has kept rates unchanged for over two years.

India's finance minister, Nirmala Sitharaman, called for lower interest rates and downplayed any dangers to economic growth. The Reserve Bank of India has kept rates unchanged for over two years. Sitharaman follows trade minister Piyush Goyal, who last week argued for a cut in interest rates, stating that economic growth required further stimulus. The RBI governor, Shaktikanta Das, chose not to address Goyal's comments after the central bank kept rates steady for the tenth straight meeting in October. According to Das, a rate cut right now would be "Very risky." The governor added that easing will only be considered if inflation reaches the central bank's target of 4 per cent. The RBI's next policy decision is scheduled for December 6th. Speaking at an event, Sitharaman said, given India's growth requirements, there are "Many different voices saying the cost of borrowing is really very stressful." She added, "Bank interest rates will have to be far more affordable." For the current fiscal year, which ends in March 2025, the RBI projects growth of 7.2 per cent. However, some analysts, notably those at investment banks like Goldman Sachs, have projected growth as low as 6.5 per cent. Worries that consumers are cutting back on spending are fuelled by the lacklustre sales of all goods, from soaps to vehicles. However, downplaying the growth risks, Sitharaman said the government is keeping a careful eye on the economy and is ready to take "All necessary measures" to increase economic activity. She said, "Let me assure you the government is fully aware of the challenges posed by both domestic and global factors." The finance minister, citing strong economic fundamentals added, "There is no cause for undue concern."

India's Finance Minister Nirmala Sitharaman calls for lower interest rates

In the picturesque villages of Uttarakhand, almost 30 women, wives of the 'Gadaria' shepherds, are now proudly introducing Kullu border shawls to the world. This achievement, facilitated by the handloom brand Bunkar, is more than a job opportunity; it's a source of identity and recognition for these women and their community. E-commerce has been a catalyst for this transformation, unlocking not only business opportunities but also a powerful shift in community pride, empowering women across India.&nbsp; 
&nbsp; 
Consider the story of 45-year-old Paliben. Once a rag collector at a textile mill, she meticulously transformed waste into beautiful, handmade items like paper-mesh jewellery and decorative pen stands. Initially, she sold these creations at local exhibitions. However, with the advent of e-commerce, she digitized her venture, opening a new chapter of growth and success.&nbsp;

Historically, rural women in India have been largely excluded from the economic mainstream due to limited access to resources, markets, and financial independence. However, e-commerce has opened up a vast, borderless marketplace. Programmes like Amazon Saheli, launched in 2017, are tailored to uplift rural and small-town women entrepreneurs by providing them with the tools to set up, manage, and expand online businesses. By streamlining the process of selling online, these platforms break down geographical constraints, allowing women to tap into national—and even international—markets from the comfort of their homes.&nbsp; 
&nbsp; 
With this expanded reach, rural women entrepreneurs are no longer bound by the limitations of local demand, creating substantial earning potential that was previously unattainable. As a result, we see an increase in self-reliant women who are contributing to their family’s income and reinvesting in their communities, helping fuel the rural economy. According to a Bain &amp; Company report, India boasts the world's third-largest online shopper base, with a staggering 180-190 million online shoppers in 2021. This number is projected to surpass the US and claim the second spot within the next two years.&nbsp; 
&nbsp; 
With a vast pool of 63 million MSMEs, of which 20% are women-owned, India has a significant opportunity to create millions of jobs. By accelerating women's entrepreneurship, the country could potentially generate over 30 million women-owned enterprises, creating 150 to 170 million jobs. The past five years have witnessed a remarkable shift towards online business, with 83% of Indian small businesses adopting digital platforms. A significant 65% of these businesses now generate up to half of their revenue through online sales. This trend underscores the immense potential for women entrepreneurs to thrive in India's rapidly expanding digital marketplace.&nbsp; 
&nbsp; 
Training and digital literacy 
&nbsp; 
Programmes designed to empower rural women through e-commerce offer comprehensive training in digital skills, product management, and financial literacy. For example, Amazon has partnered with organizations like the DEASRA Foundation, SEWA, and TATA Power to provide educational resources that enhance women's digital literacy and entrepreneurial skills. With easy access to training modules on photography, packaging, customer engagement, and pricing strategies, these women can successfully navigate the online marketplace, establishing a lasting presence for their products and brands.&nbsp;

This digital literacy extends to the basics of using smartphones and applications, which is critical as many women entrepreneurs primarily rely on mobile devices. Streamlining app interfaces for simplicity, companies are making it easier for rural women to manage their online businesses. Consequently, these women gain the confidence to handle their digital storefronts independently, reducing dependence on intermediaries and further empowering their entrepreneurial journey.&nbsp; 
&nbsp; 
For example, I Village, a social enterprise, has partnered with Amazon Saheli to empower rural women by connecting them to online markets. They provide training in various skills, from making incense sticks to basic computer skills and stitching. By honing these traditional skills, women from villages like Bulandshahar, Uttar Pradesh, can now earn a sustainable income. I Village's efforts have not only empowered women to become first-time breadwinners but have also educated the masses on the importance of women's empowerment.&nbsp; 
&nbsp; 
Financial empowerment and independence&nbsp; 
&nbsp; 
One of the most impactful aspects of e-commerce is its potential to alleviate the financial constraints that rural women often face. Traditionally, women have had limited access to capital, and financial decisions are frequently controlled by men in many rural households. However, e-commerce platforms offer a range of support measures—digital payment integration, transparent revenue tracking, and direct bank transfers—that enhance financial independence for these entrepreneurs.&nbsp;

Initiatives run by e-commerce marketplaces also play a vital role in setting achievable sales targets and monitoring growth metrics, enabling rural women entrepreneurs to strategize for their businesses proactively. The regular inflow of earnings through digital payments offers a stable source of income, fostering financial resilience and reinforcing the shift towards economic independence. In the long term, this financial autonomy has far-reaching effects, allowing these women to make critical decisions for their businesses and families with confidence.&nbsp; 
&nbsp; 
Addressing social and cultural barriers&nbsp; 
&nbsp; 
Empowering rural women entrepreneurs through e-commerce goes beyond economic benefits; it fosters social empowerment and shifts cultural narratives. As these women entrepreneurs step into the roles of financial decision-makers and business leaders, they challenge and gradually reshape the traditional gender roles in their communities. Families and communities begin to view women as valuable contributors, leading to a broader acceptance of female entrepreneurship in rural areas.&nbsp; 
Moreover, the collaborative nature of e-commerce often encourages women to join local self-help groups (SHGs), where they can share knowledge, network, and support each other's ventures. Events like E-commerce Facilitation Melas have been instrumental in connecting SHGs with e-commerce platforms, helping women collaborate and build a supportive ecosystem. This network of like-minded entrepreneurs not only creates a shared learning environment but also amplifies their collective bargaining power, enabling them to negotiate better terms and access new opportunities.&nbsp;

A holistic growth story: Economic, social, and personal&nbsp;

&nbsp;For rural women in India, e-commerce is more than just a pathway to entrepreneurship. It represents an avenue for holistic growth that encompasses skill acquisition, financial literacy, independence, and social empowerment. In the process, rural women are becoming role models within their communities, encouraging the next generation to pursue similar avenues of growth and economic participation.&nbsp; 
&nbsp; 
While challenges remain—such as regional tax variations, logistical issues, and technical literacy barriers—the momentum of change is undeniable. Companies and government programs alike are investing in infrastructure and training and are determined to scale e-commerce initiatives across underserved areas. As these women succeed, the benefits extend beyond their households, stimulating the rural economy and fostering a culture of inclusivity and empowerment.&nbsp; 
&nbsp; 
The future of rural India is brighter with women at the helm of their own ventures, steering both their personal and professional lives toward growth and resilience. As the e-commerce sector expands its reach, it promises a transformative impact on rural women, their families, and entire communities—one that reverberates across the economy, bridging social divides and laying the foundation for a more equitable and prosperous India.&nbsp; 
&nbsp; 
In this journey, platforms like Amazon Saheli serve as crucial stepping stones, turning what were once barriers into bridges that connect rural women with the world. Through continuous support, targeted skill development, and a commitment to digital inclusion, e-commerce is poised to bring holistic growth to rural India’s women—a growth that promises not only financial success but a deep-rooted social transformation for generations to come.&nbsp;

In the picturesque villages of Uttarakhand, almost 30 women, wives of the 'Gadaria' shepherds, are now proudly introducing Kullu border shawls to the world. This achievement, facilitated by the handloom brand Bunkar, is more than a job opportunity; it's a source of identity and recognition for these women and their community.

In the picturesque villages of Uttarakhand, almost 30 women, wives of the 'Gadaria' shepherds, are now proudly introducing Kullu border shawls to the world. This achievement, facilitated by the handloom brand Bunkar, is more than a job opportunity; it's a source of identity and recognition for these women and their community. E-commerce has been a catalyst for this transformation, unlocking not only business opportunities but also a powerful shift in community pride, empowering women across India. Consider the story of 45-year-old Paliben. Once a rag collector at a textile mill, she meticulously transformed waste into beautiful, handmade items like paper-mesh jewellery and decorative pen stands. Initially, she sold these creations at local exhibitions. However, with the advent of e-commerce, she digitized her venture, opening a new chapter of growth and success. Historically, rural women in India have been largely excluded from the economic mainstream due to limited access to resources, markets, and financial independence. However, e-commerce has opened up a vast, borderless marketplace. Programmes like Amazon Saheli, launched in 2017, are tailored to uplift rural and small-town women entrepreneurs by providing them with the tools to set up, manage, and expand online businesses. By streamlining the process of selling online, these platforms break down geographical constraints, allowing women to tap into national—and even international—markets from the comfort of their homes. With this expanded reach, rural women entrepreneurs are no longer bound by the limitations of local demand, creating substantial earning potential that was previously unattainable. As a result, we see an increase in self-reliant women who are contributing to their family’s income and reinvesting in their communities, helping fuel the rural economy. According to a Bain & Company report, India boasts the world's third-largest online shopper base, with a staggering 180-190 million online shoppers in 2021. This number is projected to surpass the US and claim the second spot within the next two years. With a vast pool of 63 million MSMEs, of which 20% are women-owned, India has a significant opportunity to create millions of jobs. By accelerating women's entrepreneurship, the country could potentially generate over 30 million women-owned enterprises, creating 150 to 170 million jobs. The past five years have witnessed a remarkable shift towards online business, with 83% of Indian small businesses adopting digital platforms. A significant 65% of these businesses now generate up to half of their revenue through online sales. This trend underscores the immense potential for women entrepreneurs to thrive in India's rapidly expanding digital marketplace. Training and digital literacy Programmes designed to empower rural women through e-commerce offer comprehensive training in digital skills, product management, and financial literacy. For example, Amazon has partnered with organizations like the DEASRA Foundation, SEWA, and TATA Power to provide educational resources that enhance women's digital literacy and entrepreneurial skills. With easy access to training modules on photography, packaging, customer engagement, and pricing strategies, these women can successfully navigate the online marketplace, establishing a lasting presence for their products and brands. This digital literacy extends to the basics of using smartphones and applications, which is critical as many women entrepreneurs primarily rely on mobile devices. Streamlining app interfaces for simplicity, companies are making it easier for rural women to manage their online businesses. Consequently, these women gain the confidence to handle their digital storefronts independently, reducing dependence on intermediaries and further empowering their entrepreneurial journey. For example, I Village, a social enterprise, has partnered with Amazon Saheli to empower rural women by connecting them to online markets. They provide training in various skills, from making incense sticks to basic computer skills and stitching. By honing these traditional skills, women from villages like Bulandshahar, Uttar Pradesh, can now earn a sustainable income. I Village's efforts have not only empowered women to become first-time breadwinners but have also educated the masses on the importance of women's empowerment. Financial empowerment and independence One of the most impactful aspects of e-commerce is its potential to alleviate the financial constraints that rural women often face. Traditionally, women have had limited access to capital, and financial decisions are frequently controlled by men in many rural households. However, e-commerce platforms offer a range of support measures—digital payment integration, transparent revenue tracking, and direct bank transfers—that enhance financial independence for these entrepreneurs. Initiatives run by e-commerce marketplaces also play a vital role in setting achievable sales targets and monitoring growth metrics, enabling rural women entrepreneurs to strategize for their businesses proactively. The regular inflow of earnings through digital payments offers a stable source of income, fostering financial resilience and reinforcing the shift towards economic independence. In the long term, this financial autonomy has far-reaching effects, allowing these women to make critical decisions for their businesses and families with confidence. Addressing social and cultural barriers Empowering rural women entrepreneurs through e-commerce goes beyond economic benefits; it fosters social empowerment and shifts cultural narratives. As these women entrepreneurs step into the roles of financial decision-makers and business leaders, they challenge and gradually reshape the traditional gender roles in their communities. Families and communities begin to view women as valuable contributors, leading to a broader acceptance of female entrepreneurship in rural areas. Moreover, the collaborative nature of e-commerce often encourages women to join local self-help groups (SHGs), where they can share knowledge, network, and support each other's ventures. Events like E-commerce Facilitation Melas have been instrumental in connecting SHGs with e-commerce platforms, helping women collaborate and build a supportive ecosystem. This network of like-minded entrepreneurs not only creates a shared learning environment but also amplifies their collective bargaining power, enabling them to negotiate better terms and access new opportunities. A holistic growth story: Economic, social, and personal For rural women in India, e-commerce is more than just a pathway to entrepreneurship. It represents an avenue for holistic growth that encompasses skill acquisition, financial literacy, independence, and social empowerment. In the process, rural women are becoming role models within their communities, encouraging the next generation to pursue similar avenues of growth and economic participation. While challenges remain—such as regional tax variations, logistical issues, and technical literacy barriers—the momentum of change is undeniable. Companies and government programs alike are investing in infrastructure and training and are determined to scale e-commerce initiatives across underserved areas. As these women succeed, the benefits extend beyond their households, stimulating the rural economy and fostering a culture of inclusivity and empowerment. The future of rural India is brighter with women at the helm of their own ventures, steering both their personal and professional lives toward growth and resilience. As the e-commerce sector expands its reach, it promises a transformative impact on rural women, their families, and entire communities—one that reverberates across the economy, bridging social divides and laying the foundation for a more equitable and prosperous India. In this journey, platforms like Amazon Saheli serve as crucial stepping stones, turning what were once barriers into bridges that connect rural women with the world. Through continuous support, targeted skill development, and a commitment to digital inclusion, e-commerce is poised to bring holistic growth to rural India’s women—a growth that promises not only financial success but a deep-rooted social transformation for generations to come.

Empowering rural women in India: E-commerce as a catalyst for holistic growth 

The latest SBI Economic Research report sheds light on the shifting income landscape in India.

Millionaires’ Club expands

In a testament to India’s growing economic affluence, the number of millionaires have risen to 220,000 by Assessment year (AY) 2024 from 44,000 in AY 2014. That’s a fivefold increase in a decade.&nbsp;

According to the 2024 Hurun India Rich list, the country now boasts of 334 billionaires, a sharp rise from 75 a year before.&nbsp;

The number of Income Tax Returns (ITRs) filed also rose to 86 million in 2023 from 73 million in 2022. The report attributes progressive tax policies and simplified processes as the catalyst for this expanding tax base.

Income disparity shrinks

This growing tax base coincides with a drastic drop in income disparity, especially for earners up to Rs 5 lakh per annum. Lower-income groups have also registered strong growth rates through the decade.&nbsp;

The report highlights a trend towards more decentralised wealth creation in the country.&nbsp;

Meanwhile, the report has argued for a speedier review of the Income Tax Act. In order for the amended Act to be passed within the allotted 75 days, the report suggested that it be offered as a money bill. In addition to streamlining and simplifying the taxing procedure, this will promote inclusivity and economic progress.

Demographic trends

While UP, Bihar, AP, Punjab, and Rajasthan are gaining share in the incremental growth, states like Maharashtra, Delhi, Gujarat, and Karnataka, the traditional leaders in the income tax base, are approaching saturation. Maharashtra, Uttar Pradesh, Gujarat, Rajasthan and Tamil Nadu constitute 48 per cent of the total returns filed in AY24. Female taxpayers have also risen to 15 per cent of all taxpayers.&nbsp;

The latest SBI Economic Research report sheds light on the shifting income landscape in India. Millionaires’ Club expands In a testament to India’s growing economic affluence, the number of millionaires have risen to 220,000 by Assessment year (AY) 2024 from 44,000 in AY 2014.

The latest SBI Economic Research report sheds light on the shifting income landscape in India. Millionaires’ Club expands In a testament to India’s growing economic affluence, the number of millionaires have risen to 220,000 by Assessment year (AY) 2024 from 44,000 in AY 2014. That’s a fivefold increase in a decade. According to the 2024 Hurun India Rich list, the country now boasts of 334 billionaires, a sharp rise from 75 a year before. The number of Income Tax Returns (ITRs) filed also rose to 86 million in 2023 from 73 million in 2022. The report attributes progressive tax policies and simplified processes as the catalyst for this expanding tax base. Income disparity shrinks This growing tax base coincides with a drastic drop in income disparity, especially for earners up to Rs 5 lakh per annum. Lower-income groups have also registered strong growth rates through the decade. The report highlights a trend towards more decentralised wealth creation in the country. Meanwhile, the report has argued for a speedier review of the Income Tax Act. In order for the amended Act to be passed within the allotted 75 days, the report suggested that it be offered as a money bill. In addition to streamlining and simplifying the taxing procedure, this will promote inclusivity and economic progress. Demographic trends While UP, Bihar, AP, Punjab, and Rajasthan are gaining share in the incremental growth, states like Maharashtra, Delhi, Gujarat, and Karnataka, the traditional leaders in the income tax base, are approaching saturation. Maharashtra, Uttar Pradesh, Gujarat, Rajasthan and Tamil Nadu constitute 48 per cent of the total returns filed in AY24. Female taxpayers have also risen to 15 per cent of all taxpayers.

India’s Millionaires’ Club expands: No of taxpayers rise, Income disparity shrinks

Finance Minister Nirmala Sitharaman on October 21 said India is poised to continue its growth trajectory and is likely to become the world's third-largest economy by 2027. India currently is the fifth largest economy in the world with a Gross Domestic Product (GDP) of around $3.9 trillion as detailed in a report by the Press Trust of India (PTI).

Addressing the Roundtable on 'Investment Opportunities in India' at the New York Stock Exchange (NYSE), the oldest and the largest stock exchange in the world, the Finance minister said India is poised to continue its sustained growth trajectory and enhance its contribution to global growth significantly.

As per the current rate, India is likely to be the world's third-largest economy by 2027, Sitharaman said. As many as 11 Indian companies are listed on the New York Stock Exchange.

The Roundtable was attended by various pension funds and other institutional investors and fund managers across the US, forming one of the largest financial systems in the world in terms of total assets under management, the finance ministry discussed in a post on X.

The PTI report further detailed that, during the meeting, the Finance Minister shared the contours of various policy reforms and initiatives that are shaping India, with a focus on the Government's priorities for facilitating sustained economic growth for sustained long-term investment opportunities.

Observing India's emergence as one of the fastest-growing economies in the world which has witnessed a profound positive transformation in the last 10 years, the Finance Minister emphasised the nation's determination to not just contribute to but also determine the shape and direction of global recovery, while redefining its own place in the global economic order.

A host of growth opportunities await India<o:p></o:p>

As India undergoes this transformation, she exuded confidence that there will be a host of opportunities for growth and returns for investors in India. Anchoring India's growth in the vision of Atmanirbhar Bharat, she said that it seeks to reinvigorate India's manufacturing abilities and integrate it with the redefining Global Supply Chains. 

She further said that India has not only created a strong baseline for infrastructure creation and development with initiatives such as the National Infrastructure Pipeline (NIP) and the National Monetisation Pipeline (NMP) but also bolstered the manufacturing sector's competitiveness through Production Linked Incentive (PLI) schemes across sectors.

PM GatiShakti, a programme launched to bring a master-planning approach to infrastructure, stands out as a unique example of using technology for real-time assessment of public policy impact on the ground, she added.

The Government of India has given further momentum to India's growing presence in the global electronics value chains through the $10 billion India Semiconductor Mission (ISM) to achieve "atma-nirbharta" in electronics &amp; semiconductors, she said, adding, that this initiative gains importance, especially in the light of the US Department of State's recent announcement to partner with Government of India.

She referred to India's ground-breaking structural reforms for a stable regulatory framework for investors, such as simplifying the tax structure through the Goods and Services Tax (GST); streamlining the resolution of distressed assets through the Insolvency and Bankruptcy Code (IBC); liberalising Foreign Direct Investment FDI norms across various sectors; and enhancing the simplicity and transparency of the overall foreign investment policy framework.

These policy reforms and initiatives are built on an entirely new digital economy, spurring innovation and tech entrepreneurship resulting in India becoming the 3rd largest start-up ecosystem globally, with over 100 unicorns engaged in innovations for the public good, she added.

Finance Minister Nirmala Sitharaman on October 21 said India is poised to continue its growth trajectory and is likely to become the world's third-largest economy by 2027.

Finance Minister Nirmala Sitharaman on October 21 said India is poised to continue its growth trajectory and is likely to become the world's third-largest economy by 2027. India currently is the fifth largest economy in the world with a Gross Domestic Product (GDP) of around $3.9 trillion as detailed in a report by the Press Trust of India (PTI). Addressing the Roundtable on 'Investment Opportunities in India' at the New York Stock Exchange (NYSE), the oldest and the largest stock exchange in the world, the Finance minister said India is poised to continue its sustained growth trajectory and enhance its contribution to global growth significantly. As per the current rate, India is likely to be the world's third-largest economy by 2027, Sitharaman said. As many as 11 Indian companies are listed on the New York Stock Exchange. The Roundtable was attended by various pension funds and other institutional investors and fund managers across the US, forming one of the largest financial systems in the world in terms of total assets under management, the finance ministry discussed in a post on X. The PTI report further detailed that, during the meeting, the Finance Minister shared the contours of various policy reforms and initiatives that are shaping India, with a focus on the Government's priorities for facilitating sustained economic growth for sustained long-term investment opportunities. Observing India's emergence as one of the fastest-growing economies in the world which has witnessed a profound positive transformation in the last 10 years, the Finance Minister emphasised the nation's determination to not just contribute to but also determine the shape and direction of global recovery, while redefining its own place in the global economic order. A host of growth opportunities await India As India undergoes this transformation, she exuded confidence that there will be a host of opportunities for growth and returns for investors in India. Anchoring India's growth in the vision of Atmanirbhar Bharat, she said that it seeks to reinvigorate India's manufacturing abilities and integrate it with the redefining Global Supply Chains. She further said that India has not only created a strong baseline for infrastructure creation and development with initiatives such as the National Infrastructure Pipeline (NIP) and the National Monetisation Pipeline (NMP) but also bolstered the manufacturing sector's competitiveness through Production Linked Incentive (PLI) schemes across sectors. PM GatiShakti, a programme launched to bring a master-planning approach to infrastructure, stands out as a unique example of using technology for real-time assessment of public policy impact on the ground, she added. The Government of India has given further momentum to India's growing presence in the global electronics value chains through the $10 billion India Semiconductor Mission (ISM) to achieve "atma-nirbharta" in electronics & semiconductors, she said, adding, that this initiative gains importance, especially in the light of the US Department of State's recent announcement to partner with Government of India. She referred to India's ground-breaking structural reforms for a stable regulatory framework for investors, such as simplifying the tax structure through the Goods and Services Tax (GST); streamlining the resolution of distressed assets through the Insolvency and Bankruptcy Code (IBC); liberalising Foreign Direct Investment FDI norms across various sectors; and enhancing the simplicity and transparency of the overall foreign investment policy framework. These policy reforms and initiatives are built on an entirely new digital economy, spurring innovation and tech entrepreneurship resulting in India becoming the 3rd largest start-up ecosystem globally, with over 100 unicorns engaged in innovations for the public good, she added.

India likely to be world's 3rd-largest economy by 2027: FM Nirmala Sitharaman

India is hiking minimum wages marginally for workers employed in informal sectors including construction, mining, and agriculture, from October 1, a government statement said on Thursday as detailed in a report by Reuters. 

"This adjustment is aimed at helping workers cope with the rising cost of living," the statement said, referring to the 2.40-point rise in the consumer price index, opens new tab (CPI) for industrial workers.

After the hike, the unskilled workers in the upper-most band can expect a daily minimum wage of 783 rupees ($9.36), semi-skilled workers a rate of 868 rupees, and highly skilled workers 1,035 rupees.

The wages are revised twice a year according to inflation, based on the six-month average rise in CPI for industrial workers. 

Earlier this week, thousands of workers held protests across the country, seeking an increase in wages and demanding the repeal of four labour codes which they say favour multinational corporations.

The Central Government revises the Variable Dearness Allowance (VDA) twice a year, effective from April 1 and October 1, based on the six-month average increase in the Consumer Price Index for industrial workers.

Detailed information regarding the minimum wage rates by sector, categories and area, is available on the website (clc.gov.in) of the Chief Labour Commissioner (Central), Government of India.

What is the relevance of Variable Dearness Allowance?<o:p></o:p>

Variable Dearness Allowance (VDA) defines the new amount which is earned after the increase or decrease in the consumer price index (CPI). This is where the dearness allowance is calculated and updated for the workers.

What will be the impact of this move?<o:p></o:p>

Starting October 1, India will slightly raise minimum wages for informal sector workers, including those in construction, mining, and agriculture, to help them cope with the increasing cost of living. The new daily minimum wage will be set at 783 rupees for unskilled workers, 868 rupees for semi-skilled workers, and 1,035 rupees for highly skilled workers.

This adjustment reflects the government's commitment to improving the economic conditions of workers in these sectors, ensuring they receive fair compensation as living expenses continue to rise. This move hence is expected to provide some respite to workers from inflation and rejuvenate the economic demand cycle.

<o:p>&nbsp;</o:p>

India is hiking minimum wages marginally for workers employed in informal sectors including construction, mining, and agriculture, from October 1, a government statement said on Thursday as detailed in a report by Reuters.

India is hiking minimum wages marginally for workers employed in informal sectors including construction, mining, and agriculture, from October 1, a government statement said on Thursday as detailed in a report by Reuters. "This adjustment is aimed at helping workers cope with the rising cost of living," the statement said, referring to the 2.40-point rise in the consumer price index, opens new tab (CPI) for industrial workers. After the hike, the unskilled workers in the upper-most band can expect a daily minimum wage of 783 rupees ($9.36), semi-skilled workers a rate of 868 rupees, and highly skilled workers 1,035 rupees. The wages are revised twice a year according to inflation, based on the six-month average rise in CPI for industrial workers. Earlier this week, thousands of workers held protests across the country, seeking an increase in wages and demanding the repeal of four labour codes which they say favour multinational corporations. The Central Government revises the Variable Dearness Allowance (VDA) twice a year, effective from April 1 and October 1, based on the six-month average increase in the Consumer Price Index for industrial workers. Detailed information regarding the minimum wage rates by sector, categories and area, is available on the website (clc.gov.in) of the Chief Labour Commissioner (Central), Government of India. What is the relevance of Variable Dearness Allowance? Variable Dearness Allowance (VDA) defines the new amount which is earned after the increase or decrease in the consumer price index (CPI). This is where the dearness allowance is calculated and updated for the workers. What will be the impact of this move? Starting October 1, India will slightly raise minimum wages for informal sector workers, including those in construction, mining, and agriculture, to help them cope with the increasing cost of living. The new daily minimum wage will be set at 783 rupees for unskilled workers, 868 rupees for semi-skilled workers, and 1,035 rupees for highly skilled workers. This adjustment reflects the government's commitment to improving the economic conditions of workers in these sectors, ensuring they receive fair compensation as living expenses continue to rise. This move hence is expected to provide some respite to workers from inflation and rejuvenate the economic demand cycle.

India hikes minimum wages as living costs surge

In a significant boost to India's economic trajectory, the World Bank has upgraded its growth forecast for the financial year 2024-25 to 7 per cent, up from its earlier estimate of 6.6 per cent. This revision reflects the country's impressive economic performance, which has positioned India as the fastest-growing major economy globally.<o:p></o:p>

Strong economic foundations<o:p></o:p>

The Indian economy's robust growth is attributed to several key factors. In the financial year 2023-24, India achieved an impressive 8.2 per cent growth rate, driven by substantial public infrastructure investments and a surge in household real estate investments. The manufacturing sector played a crucial role, growing by 9.9 per cent, while resilient services activity helped offset the underperformance in the agriculture sector.<o:p></o:p>

"India was the fastest-growing major economy in FY24 at 8.2 per cent, and now it's growing at a good pace," noted Auguste Tano Kouame, the World Bank's Country Director for India. This growth momentum is expected to continue, with the World Bank projecting strong growth for FY26 and FY27 at 6.7 per cent and 6.8 per cent, respectively.<o:p></o:p>

Further, the medium-term outlook for India remains positive, despite global growth remaining subdued compared to pre-pandemic levels. The report highlights that sustained growth in the services sector, including the expansion of Global Capability Centers, and an expected strengthening of the manufacturing sector, will continue to drive economic expansion. Government initiatives such as the PM Gati Shakti master plan to enhance logistics infrastructure and the trade infrastructure for exports scheme are also expected to contribute significantly.<o:p></o:p>

One of the most promising aspects of India's economic growth is the decline in inflation. Headline inflation is expected to continue to decline from an average of 5.4 per cent in FY23-24 to 4.5 per cent in FY24-25. This decline, coupled with robust growth, is anticipated to reduce extreme and moderate poverty in the country.<o:p></o:p>

"India's robust growth prospects along with declining inflation will help to reduce extreme poverty," said Auguste Tano Kouame. He also emphasized the importance of diversifying India's export basket to include sectors such as textiles, apparel, footwear, electronics, and green technology to harness its global trade potential.<o:p></o:p>

Fiscal consolidation and trade opportunities<o:p></o:p>

The World Bank report also underscores the importance of fiscal consolidation. With robust revenue growth and further fiscal consolidation, the debt-to-GDP ratio is projected to decline from 83.9 per cent in FY24 to 82 per cent by FY27. The current account deficit is expected to remain within the range of 1-1.6 per cent of GDP up to FY27.<o:p></o:p>

India's trade potential is another critical area highlighted in the report. The World Bank suggests that India can boost its growth further by integrating more deeply into global value chains, which will create opportunities for innovation and productivity growth. Reducing trade costs, lowering trade barriers, and deepening trade integration are recommended strategies to achieve the $1 trillion merchandise export target by 2030.<o:p></o:p>

While the outlook is positive, the report also acknowledges external risks such as geopolitical tensions and resurgent inflation, which could impact commodity prices and global interest rates. However, these risks are seen as manageable given India's strong economic fundamentals.<o:p></o:p>

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In a significant boost to India's economic trajectory, the World Bank has upgraded its growth forecast for the financial year 2024-25 to 7 per cent, up from its earlier estimate of 6.

In a significant boost to India's economic trajectory, the World Bank has upgraded its growth forecast for the financial year 2024-25 to 7 per cent, up from its earlier estimate of 6.6 per cent. This revision reflects the country's impressive economic performance, which has positioned India as the fastest-growing major economy globally. Strong economic foundations The Indian economy's robust growth is attributed to several key factors. In the financial year 2023-24, India achieved an impressive 8.2 per cent growth rate, driven by substantial public infrastructure investments and a surge in household real estate investments. The manufacturing sector played a crucial role, growing by 9.9 per cent, while resilient services activity helped offset the underperformance in the agriculture sector. "India was the fastest-growing major economy in FY24 at 8.2 per cent, and now it's growing at a good pace," noted Auguste Tano Kouame, the World Bank's Country Director for India. This growth momentum is expected to continue, with the World Bank projecting strong growth for FY26 and FY27 at 6.7 per cent and 6.8 per cent, respectively. Further, the medium-term outlook for India remains positive, despite global growth remaining subdued compared to pre-pandemic levels. The report highlights that sustained growth in the services sector, including the expansion of Global Capability Centers, and an expected strengthening of the manufacturing sector, will continue to drive economic expansion. Government initiatives such as the PM Gati Shakti master plan to enhance logistics infrastructure and the trade infrastructure for exports scheme are also expected to contribute significantly. One of the most promising aspects of India's economic growth is the decline in inflation. Headline inflation is expected to continue to decline from an average of 5.4 per cent in FY23-24 to 4.5 per cent in FY24-25. This decline, coupled with robust growth, is anticipated to reduce extreme and moderate poverty in the country. "India's robust growth prospects along with declining inflation will help to reduce extreme poverty," said Auguste Tano Kouame. He also emphasized the importance of diversifying India's export basket to include sectors such as textiles, apparel, footwear, electronics, and green technology to harness its global trade potential. Fiscal consolidation and trade opportunities The World Bank report also underscores the importance of fiscal consolidation. With robust revenue growth and further fiscal consolidation, the debt-to-GDP ratio is projected to decline from 83.9 per cent in FY24 to 82 per cent by FY27. The current account deficit is expected to remain within the range of 1-1.6 per cent of GDP up to FY27. India's trade potential is another critical area highlighted in the report. The World Bank suggests that India can boost its growth further by integrating more deeply into global value chains, which will create opportunities for innovation and productivity growth. Reducing trade costs, lowering trade barriers, and deepening trade integration are recommended strategies to achieve the $1 trillion merchandise export target by 2030. While the outlook is positive, the report also acknowledges external risks such as geopolitical tensions and resurgent inflation, which could impact commodity prices and global interest rates. However, these risks are seen as manageable given India's strong economic fundamentals.

World Bank boosts India's FY25 growth forecast to 7%, citing robust economic performance

In an era marked by global economic turbulence, geopolitical shifts, and the relentless pursuit of efficiency, India's strategic position has emerged as a compelling force. With its vast market, burgeoning talent pool, and favourable government policies, India offers a unique blend of opportunities and challenges that demand innovative solutions.

SAP, a leading provider of enterprise resource planning software, understands the unique challenges faced by Indian businesses. The company recently hosted the Spend Connect Innovation Day in Delhi, bringing together industry leaders, tech visionaries, and practitioners to discuss innovative solutions for spend management and supply chain optimization.

To understand how SAP is addressing the unique challenges and opportunities facing Indian businesses, we spoke with <a href="https://www.youtube.com/watch?v=W1oi9fmq3uw">Ashwani Narang, Vice President of Intelligent Spend &amp; Business Network at SAP Indian Subcontinent</a>.

India's Role in Global Supply Chains

India's strategic location and growing economy have made it a key player in global supply chains. "Around 65% of enterprises are looking to expand in India," Ashwani explained. "This shift towards India is driven by factors such as a skilled workforce, favourable government policies, and a growing domestic market."

As a result, India is poised to become a central hub for global supply chains. "India has the potential to be the supplier of the world," Ashwani stated. "By leveraging its strengths, India can attract investments, create jobs, and drive economic growth."

Intelligent Spend Management: A Comprehensive Solution

SAP offers a comprehensive solution for intelligent spend management, helping businesses optimise their spending across the entire supply chain. "We bring all expenses under one intelligent umbrella," Ashwani explained. "Our solution provides visibility into spending, enables efficient procurement, and supports supplier collaboration."

SAP's platform also empowers suppliers to connect with more buyers and expand their business. "Suppliers can leverage our network to increase their visibility, access new markets, and improve their operations," Ashwani said.

Sustainability at the Core

Sustainability is a growing concern for businesses worldwide, and SAP is committed to helping companies integrate sustainability into their operations. "Consumers are willing to pay 3.5 times more for sustainable products," Ashwani noted. "People prefer brands that are committed to environmental and social responsibility."

SAP's solutions incorporate ESG (Environmental, Social, and Governance) factors, enabling businesses to measure and improve their sustainability performance. "ESG is at the centre of our product," Ashwani emphasised.

The Power of Generative AI

SAP is also exploring the potential of generative AI to further enhance its solutions. "We are providing conversational UI to make our products more intuitive and user-friendly," Ashwani explained. "Generative AI can help businesses automate tasks, generate insights, and improve decision-making."

As Indian businesses continue to navigate a complex and dynamic business environment, innovative solutions like SAP's offer valuable tools for driving success. By managing their expenses across product supply chains, Indian businesses can position themselves for long-term growth and sustainability in an uncertain environment.

In an era marked by global economic turbulence, geopolitical shifts, and the relentless pursuit of efficiency, India's strategic position has emerged as a compelling force.

In an era marked by global economic turbulence, geopolitical shifts, and the relentless pursuit of efficiency, India's strategic position has emerged as a compelling force. With its vast market, burgeoning talent pool, and favourable government policies, India offers a unique blend of opportunities and challenges that demand innovative solutions. SAP, a leading provider of enterprise resource planning software, understands the unique challenges faced by Indian businesses. The company recently hosted the Spend Connect Innovation Day in Delhi, bringing together industry leaders, tech visionaries, and practitioners to discuss innovative solutions for spend management and supply chain optimization. To understand how SAP is addressing the unique challenges and opportunities facing Indian businesses, we spoke with Ashwani Narang, Vice President of Intelligent Spend & Business Network at SAP Indian Subcontinent. India's Role in Global Supply Chains India's strategic location and growing economy have made it a key player in global supply chains. "Around 65% of enterprises are looking to expand in India," Ashwani explained. "This shift towards India is driven by factors such as a skilled workforce, favourable government policies, and a growing domestic market." As a result, India is poised to become a central hub for global supply chains. "India has the potential to be the supplier of the world," Ashwani stated. "By leveraging its strengths, India can attract investments, create jobs, and drive economic growth." Intelligent Spend Management: A Comprehensive Solution SAP offers a comprehensive solution for intelligent spend management, helping businesses optimise their spending across the entire supply chain. "We bring all expenses under one intelligent umbrella," Ashwani explained. "Our solution provides visibility into spending, enables efficient procurement, and supports supplier collaboration." SAP's platform also empowers suppliers to connect with more buyers and expand their business. "Suppliers can leverage our network to increase their visibility, access new markets, and improve their operations," Ashwani said. Sustainability at the Core Sustainability is a growing concern for businesses worldwide, and SAP is committed to helping companies integrate sustainability into their operations. "Consumers are willing to pay 3.5 times more for sustainable products," Ashwani noted. "People prefer brands that are committed to environmental and social responsibility." SAP's solutions incorporate ESG (Environmental, Social, and Governance) factors, enabling businesses to measure and improve their sustainability performance. "ESG is at the centre of our product," Ashwani emphasised. The Power of Generative AI SAP is also exploring the potential of generative AI to further enhance its solutions. "We are providing conversational UI to make our products more intuitive and user-friendly," Ashwani explained. "Generative AI can help businesses automate tasks, generate insights, and improve decision-making." As Indian businesses continue to navigate a complex and dynamic business environment, innovative solutions like SAP's offer valuable tools for driving success. By managing their expenses across product supply chains, Indian businesses can position themselves for long-term growth and sustainability in an uncertain environment.

India's strategic position in global business: A beacon for Intelligent Spend management

In the last eight&nbsp;decades since World War II, only a handful of countries have transitioned from middle-income to high-income status. A few among them, like Poland, benefited from joining the large European markets, while others, like Saudi Arabia, have been endowed with natural resources. The only successful examples of non-EU and non-resource-endowed countries are Israel, Taiwan, and South Korea, and it looks like China is on the way to the same.

A range of countries, especially in Southeast Asia and Latin America, used commodity exports as their way up the income ladder like Argentina, Chile, and South Africa, while others like Thailand and Vietnam, used manufacturing. Countries like Mexico, Indonesia, and Malaysia tried a combination of the two. They did well for some time but eventually floundered along the way.

So, the question arises: what is the guaranteed way to become a high-income country? &nbsp;

The answer lies in research and innovation.

The countries that transitioned from middle income to high-income countries are the ones with huge spending on research and development as a percentage of GDP. Israel (5.56%), South Korea (4.93%), Taiwan (3.4%), and China (2.43%), all have high gross domestic expenditure on research and development (GERD) spenders. And it is not like they started spending more on R&amp;D when they became a high-income country, they were spending more even at India’s stage of development. For example, South Korea and Taiwan were spending more than 2% of GDP on R&amp;D in the 1980s, when their economies&nbsp;were equivalent to today’s India in terms of GDP (PPP) and GDP at market exchange rates.&nbsp;

Countries that do not nudge their companies to spend on R&amp;D and come up with products that the world needs get into the middle-income trap. The commodity exporters get into thinking that the boom will last forever until it does not. The Simon–Ehrlich wager shows that betting on raw materials to become a high-income country is a dangerous bet.

Countries like Chile, Argentina, South Africa, and to some extent even Brazil have not recovered since the crash of the commodities boom with the 2008 financial crisis and today they are facing political turmoil and their social compact is on the verge of explosion.&nbsp;

Manufacturing also has moved from country to country. As soon as the Thai economy reached $5000-6000 per capita, manufacturing in the country became uncompetitive for exports. MNCs started looking for other greener/cheaper pastures, and they found Vietnam and Bangladesh as alternatives. The exports of Vietnam have grown exponentially in the last few years but as soon as it will reach&nbsp;$5,000-7,000 per capita, the MNCs manufacturing will start looking for other venues. The MNCs are like mercenaries, albeit they offer manufacturing services to the lowest bidder.&nbsp;

Also read:&nbsp;<a data-ved="2ahUKEwj9k4qGypKIAxXpVmwGHfeBJZ0QxfQBKAB6BAgOEAE" href="https://www.wionews.com/business-economy/these-artificial-intelligence-skills-are-ruling-job-market-as-india-eyes-ai-leader-role-736832" jsname="YKoRaf" ping="/url?sa=t&amp;source=web&amp;rct=j&amp;opi=89978449&amp;url=https://www.wionews.com/business-economy/these-artificial-intelligence-skills-are-ruling-job-market-as-india-eyes-ai-leader-role-736832&amp;ved=2ahUKEwj9k4qGypKIAxXpVmwGHfeBJZ0QxfQBKAB6BAgOEAE">These Artificial Intelligence skills are ruling job market as India eyes AI leader role</a>

Similarly, as wages rise and China has achieved middle-income status, the MNCs are looking for +1 country that will fill in for low-cost manufacturing along with China. India, Vietnam and Bangladesh are contenders to become the +1 that MNCs are looking for and so far, the Vietnamese are ahead in the race. India needs to sort out the Ease of Doing Business (EoDB) issues and bring down the Cost of Doing Business (CoDB) to become a desirable place to move in for MNCs.&nbsp;

Along with becoming a competitive contract manufacturing option, India has to develop its own products and own the IP in critical areas like Drones, Space, EVs, Nuclear and other sunrise sectors. The East Asian economies did contract manufacturing for MNCs but never gave the domestic market on a platter to them. Along with manufacturing for MNCs, they propped up domestic companies that gained access to technology and IP, often through means that one would look down on, but used that to create a base and built on that to build their own technology and IP.&nbsp;

For example, Foxconn was doing contract manufacturing in China for Apple, but Beijing was not satisfied with that. It propped up Luxshare, which now directly manufactures for Apple. Now Luxshare is large enough to open a manufacturing plant in Vietnam for Apple. Similarly, Chinese electronics companies like Xiaomi, Oppo, and Vivo copied from the innovations of Apple and Samsung and captured the market share in developing countries like India.&nbsp;

Also read:&nbsp;<a data-ved="2ahUKEwj9k4qGypKIAxXpVmwGHfeBJZ0QxfQBKAB6BAgSEAE" href="https://www.wionews.com/business-economy/decoding-the-minimum-support-price-msp-a-balancing-act-for-farmers-and-economy-690895" jsname="YKoRaf" ping="/url?sa=t&amp;source=web&amp;rct=j&amp;opi=89978449&amp;url=https://www.wionews.com/business-economy/decoding-the-minimum-support-price-msp-a-balancing-act-for-farmers-and-economy-690895&amp;ved=2ahUKEwj9k4qGypKIAxXpVmwGHfeBJZ0QxfQBKAB6BAgSEAE">Decoding the minimum support price (MSP): A balancing act for farmers and economy</a>

With huge R&amp;D investments, now these companies are becoming innovators in their own right. From smartphones, Xiaomi has expanded to backpacks, smartwatches, TVs, and tablets, and most recently, it launched an EV car.&nbsp;

The story is the same for all East Asian economies. Japan initially got technology from the United States and made its improvements. South Korea got technology from Japan and the United States and made improvements. China got the technology from Taiwan, Japan, and South Korea and made its improvements.&nbsp;

The government should nudge companies to leap into technology. Otherwise, the journey from $2,500 to $7,500 may be swift and easy but after that, we will become Thailand, not South Korea. To realize the goal of becoming a developed country by 2047, India needs to learn from the mistakes of the countries that got into the middle-income trap and the experiences of those who escaped it. We have the advantage of hindsight that East Asia, Latin America, and Southeast Asia did not have.&nbsp;

One blessing of starting late is to learn from the mistakes of others and not repeat the same. It would be foolish if we make the same mistakes as countries like Thailand, despite sufficient evidence and&nbsp;alternatives.

(Disclaimer:&nbsp;The writer's views do not represent those of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

In the last eight decades since World War II, only a handful of countries have transitioned from middle-income to high-income status. A few among them, like Poland, benefited from joining the large European markets, while others, like Saudi Arabia, have been endowed with natural resources.

In the last eight decades since World War II, only a handful of countries have transitioned from middle-income to high-income status. A few among them, like Poland, benefited from joining the large European markets, while others, like Saudi Arabia, have been endowed with natural resources. The only successful examples of non-EU and non-resource-endowed countries are Israel, Taiwan, and South Korea, and it looks like China is on the way to the same. A range of countries, especially in Southeast Asia and Latin America, used commodity exports as their way up the income ladder like Argentina, Chile, and South Africa, while others like Thailand and Vietnam, used manufacturing. Countries like Mexico, Indonesia, and Malaysia tried a combination of the two. They did well for some time but eventually floundered along the way. So, the question arises: what is the guaranteed way to become a high-income country? The answer lies in research and innovation. The countries that transitioned from middle income to high-income countries are the ones with huge spending on research and development as a percentage of GDP. Israel (5.56%), South Korea (4.93%), Taiwan (3.4%), and China (2.43%), all have high gross domestic expenditure on research and development (GERD) spenders. And it is not like they started spending more on R&D when they became a high-income country, they were spending more even at India’s stage of development. For example, South Korea and Taiwan were spending more than 2% of GDP on R&D in the 1980s, when their economies were equivalent to today’s India in terms of GDP (PPP) and GDP at market exchange rates. Countries that do not nudge their companies to spend on R&D and come up with products that the world needs get into the middle-income trap. The commodity exporters get into thinking that the boom will last forever until it does not. The Simon–Ehrlich wager shows that betting on raw materials to become a high-income country is a dangerous bet. Countries like Chile, Argentina, South Africa, and to some extent even Brazil have not recovered since the crash of the commodities boom with the 2008 financial crisis and today they are facing political turmoil and their social compact is on the verge of explosion. Manufacturing also has moved from country to country. As soon as the Thai economy reached $5000-6000 per capita, manufacturing in the country became uncompetitive for exports. MNCs started looking for other greener/cheaper pastures, and they found Vietnam and Bangladesh as alternatives. The exports of Vietnam have grown exponentially in the last few years but as soon as it will reach $5,000-7,000 per capita, the MNCs manufacturing will start looking for other venues. The MNCs are like mercenaries, albeit they offer manufacturing services to the lowest bidder. Also read: These Artificial Intelligence skills are ruling job market as India eyes AI leader role Similarly, as wages rise and China has achieved middle-income status, the MNCs are looking for +1 country that will fill in for low-cost manufacturing along with China. India, Vietnam and Bangladesh are contenders to become the +1 that MNCs are looking for and so far, the Vietnamese are ahead in the race. India needs to sort out the Ease of Doing Business (EoDB) issues and bring down the Cost of Doing Business (CoDB) to become a desirable place to move in for MNCs. Along with becoming a competitive contract manufacturing option, India has to develop its own products and own the IP in critical areas like Drones, Space, EVs, Nuclear and other sunrise sectors. The East Asian economies did contract manufacturing for MNCs but never gave the domestic market on a platter to them. Along with manufacturing for MNCs, they propped up domestic companies that gained access to technology and IP, often through means that one would look down on, but used that to create a base and built on that to build their own technology and IP. For example, Foxconn was doing contract manufacturing in China for Apple, but Beijing was not satisfied with that. It propped up Luxshare, which now directly manufactures for Apple. Now Luxshare is large enough to open a manufacturing plant in Vietnam for Apple. Similarly, Chinese electronics companies like Xiaomi, Oppo, and Vivo copied from the innovations of Apple and Samsung and captured the market share in developing countries like India. Also read: Decoding the minimum support price (MSP): A balancing act for farmers and economy With huge R&D investments, now these companies are becoming innovators in their own right. From smartphones, Xiaomi has expanded to backpacks, smartwatches, TVs, and tablets, and most recently, it launched an EV car. The story is the same for all East Asian economies. Japan initially got technology from the United States and made its improvements. South Korea got technology from Japan and the United States and made improvements. China got the technology from Taiwan, Japan, and South Korea and made its improvements. The government should nudge companies to leap into technology. Otherwise, the journey from $2,500 to $7,500 may be swift and easy but after that, we will become Thailand, not South Korea. To realize the goal of becoming a developed country by 2047, India needs to learn from the mistakes of the countries that got into the middle-income trap and the experiences of those who escaped it. We have the advantage of hindsight that East Asia, Latin America, and Southeast Asia did not have. One blessing of starting late is to learn from the mistakes of others and not repeat the same. It would be foolish if we make the same mistakes as countries like Thailand, despite sufficient evidence and alternatives. (Disclaimer: The writer's views do not represent those of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

India must plan for middle-income trap to become a developed country

India is setting ambitious goals for its trade relationship with Africa, aiming to double trade volumes to $200 billion by 2030. This goal was announced at the India Africa Business Conclave held by the Confederation of Indian Industry (CII) in New Delhi on August 22.&nbsp;

Dammu Ravi, Secretary of Economic Relations at the Ministry of External Affairs, highlighted the importance of enhancing economic integration between the two regions. “The time has come to establish Indian-owned economic zones in Africa,” Ravi stated, underscoring the potential for deeper economic ties, according to a report by Moneycontrol.&nbsp;&nbsp;

Further, Sunil Barthwal, Commerce Secretary, emphasized that sectors identified by the African Continental Free Trade Area—including automobiles, agriculture, pharmaceuticals, and logistics—hold significant potential for trade and investment. “Given the current growth and opportunity, we are on track to double the trade between India and Africa to approximately $200 billion by 2030,” Barthwal said.&nbsp;

Trade between the two regions hit a record high of around $100 billion in 2022-23 but saw a decline in the subsequent fiscal year. Despite this dip, the ambitious target for 2030 reflects a strong commitment to boosting economic collaboration.&nbsp;

The Indian government’s strategy includes not only increasing trade but also fostering technological and investment partnerships. By creating Indian economic zones in Africa, India aims to bolster its economic presence and integrate more closely with African markets.&nbsp;

Barthwal urged for greater participation on WTO issues as well. “India and Africa are believed to emerge as twin growth centres, let us leverage our combined strengths,” Barthwal noted.&nbsp;&nbsp;

India needs to look at trade from a deeper context of collaboration on global value chains, said Ravi, highlighting that Agenda 2063 should set broader context of partnership between the regions in days to come.&nbsp;

Agenda 2063 is a blueprint to achieve the development of Africa over a 50-year period. Hence, the focus of the Conclave was on economic integration. It aligns with broader strategic goals and reflects dedication to expanding India and Africa’s economic footprint on the global stage.&nbsp;&nbsp;

India is setting ambitious goals for its trade relationship with Africa, aiming to double trade volumes to $200 billion by 2030. This goal was announced at the India Africa Business Conclave held by the Confederation of Indian Industry (CII) in New Delhi on August 22.

India is setting ambitious goals for its trade relationship with Africa, aiming to double trade volumes to $200 billion by 2030. This goal was announced at the India Africa Business Conclave held by the Confederation of Indian Industry (CII) in New Delhi on August 22. Dammu Ravi, Secretary of Economic Relations at the Ministry of External Affairs, highlighted the importance of enhancing economic integration between the two regions. “The time has come to establish Indian-owned economic zones in Africa,” Ravi stated, underscoring the potential for deeper economic ties, according to a report by Moneycontrol. Further, Sunil Barthwal, Commerce Secretary, emphasized that sectors identified by the African Continental Free Trade Area—including automobiles, agriculture, pharmaceuticals, and logistics—hold significant potential for trade and investment. “Given the current growth and opportunity, we are on track to double the trade between India and Africa to approximately $200 billion by 2030,” Barthwal said. Trade between the two regions hit a record high of around $100 billion in 2022-23 but saw a decline in the subsequent fiscal year. Despite this dip, the ambitious target for 2030 reflects a strong commitment to boosting economic collaboration. The Indian government’s strategy includes not only increasing trade but also fostering technological and investment partnerships. By creating Indian economic zones in Africa, India aims to bolster its economic presence and integrate more closely with African markets. Barthwal urged for greater participation on WTO issues as well. “India and Africa are believed to emerge as twin growth centres, let us leverage our combined strengths,” Barthwal noted. India needs to look at trade from a deeper context of collaboration on global value chains, said Ravi, highlighting that Agenda 2063 should set broader context of partnership between the regions in days to come. Agenda 2063 is a blueprint to achieve the development of Africa over a 50-year period. Hence, the focus of the Conclave was on economic integration. It aligns with broader strategic goals and reflects dedication to expanding India and Africa’s economic footprint on the global stage.

India and Africa aim to double trade by 2030, focus on economic integration 

The landscape of small and medium-sized enterprises (SMEs) in India is rapidly evolving, driven significantly by technological advancements. Among these, cloud-based data analytics is emerging&nbsp;&nbsp;as a transformative force. &nbsp;

Data is crucial for all businesses, however, managing and analysing vast amounts of data can be cumbersome for SMEs, as they might not have adequate resources and expertise for the same. Cloud offers huge possibility in empowering them to analyse data by providing them with insights and tools that were once accessible only to larger enterprises with significant IT budgets.&nbsp;

The Game Changer— Cloud Analytics&nbsp;

Data analytics helps businesses understand market trends, customer preferences, operational efficiencies, and more. However, traditional data analytics solutions require substantial investments in infrastructure, software, and skilled personnel, which many SMEs find prohibitive. Cloud technology democratises access to data analytics by eliminating the need for heavy upfront investments. Cloud-based data analytics solutions are typically offered on a pay-as-you-go basis. This financial flexibility is crucial for SMEs, allowing them to invest more in core business activities.&nbsp;

Cloud platforms offer access to a wide range of advanced data analytics tools that might otherwise be out of reach for SMEs. These include machine learning algorithms, predictive analytics, and big data processing capabilities. By leveraging these tools, SMEs can gain deeper insights into their operations and market, enabling them to make data-driven decisions that enhance competitiveness,&nbsp;&nbsp;operational efficiency and increase customer satisfaction.&nbsp;

For example, by analysing sales data, a retail SME can identify which products are most popular and adjust inventory levels accordingly. A manufacturing SME can use data analytics to optimise production processes, reducing waste and improving efficiency. Similarly, a&nbsp;&nbsp;financial SME can automate routine tasks such as invoicing and payroll processing, freeing up staff to focus on more strategic activities. These improvements in operational efficiency can have a significant impact on the bottom line.&nbsp;

Competitive Advantage and Innovation&nbsp;

In a highly competitive market, having access to the latest technology can provide a crucial advantage. By adopting cloud-based data analytics, SMEs can stay ahead of competitors who are slower to embrace digital transformation. This early adoption can lead to innovations in products and services, better customer experiences, and more effective marketing strategies. Over time, these advantages can help SMEs build a strong market position.&nbsp;

Cloud technology serves as a launchpad, enabling SMEs to scale, adapt, and grow at an aggressive pace. SMEs migrating to the cloud have created an important differentiator that helps them compete effectively in the market. Cloud provides cost-effective scalability, storage, processing power, improved agility, user-friendly tools, and collaboration—all features that make data analytics more accessible for SMEs.&nbsp;

Cloud Adoption and Strategic Partnerships&nbsp;

According to <a href="https://www.tatatelebusiness.com/whitepapers/scale-adapt-thrive-small-and-medium-enterprises-and-the-cloud-imperative/">SME Digital Insights</a> study , nearly 20% of SMEs have already moved more than 50% of their workload to the cloud. Customer support (51%) and networking applications (49%) are top priorities for migration. The IT/ITeS sector is at the forefront of adopting Artificial Intelligence (AI) and Machine learning with 35% SMEs using these advanced technologies. These tools are being leveraged for data analytics to enhance user experiences, automate processes, and drive innovation. The BFSI sector has been an early mover in harnessing big data analytics (37%) to gain insights, manage risk, and deliver personalised services. Regulatory requirements and the availability of large datasets have been key drivers of adoption in this sector.&nbsp;

Though seamless cloud adoption requires careful planning, several key areas offer great opportunities for SMEs. These include network optimisation, strategic cost management, and robust data security solutions. SMEs can utilise the full potential of cloud adoption by better managing network connectivity, costs, data security concerns, skills and expertise gaps, and performance monitoring. However, a lack of skilled professionals and internal technology expertise can hinder optimal cloud adoption.&nbsp;

Therefore, trusted cloud partners are essential for SMEs helping them in driving agility, innovation, and growth. According to SME Digital Insights, SMEs seek reliable partners for cloud navigation to achieve the desired ROI on their cloud investments. These partners assist in creating robust migration plans and future growth strategies, optimising cloud resource allocation, and identifying cost-saving opportunities. They offer SMEs pre-built dashboards, easy-to-use interfaces, and secure cloud storage, unlocking the power of data analytics.&nbsp;&nbsp;Cloud providers use best practices in risk mitigation to ensure data security and compliance, crucial for SMEs lacking robust security resources.&nbsp;

To conclude, in this digital era, the ability to analyse and act on data is not just an advantage but a necessity. For SMEs, cloud-based data analytics offers a pathway to sustainable growth and long-term success. It's time for them and SMEs to seize this opportunity to innovate and transform their businesses through the power of data. As more Indian SMEs embrace cloud-based data analytics, they will be better positioned to compete in the global market, driving economic growth and creating new opportunities.&nbsp;

The landscape of small and medium-sized enterprises (SMEs) in India is rapidly evolving, driven significantly by technological advancements. Among these, cloud-based data analytics is emerging as a transformative force.

The landscape of small and medium-sized enterprises (SMEs) in India is rapidly evolving, driven significantly by technological advancements. Among these, cloud-based data analytics is emerging as a transformative force. Data is crucial for all businesses, however, managing and analysing vast amounts of data can be cumbersome for SMEs, as they might not have adequate resources and expertise for the same. Cloud offers huge possibility in empowering them to analyse data by providing them with insights and tools that were once accessible only to larger enterprises with significant IT budgets. The Game Changer— Cloud Analytics Data analytics helps businesses understand market trends, customer preferences, operational efficiencies, and more. However, traditional data analytics solutions require substantial investments in infrastructure, software, and skilled personnel, which many SMEs find prohibitive. Cloud technology democratises access to data analytics by eliminating the need for heavy upfront investments. Cloud-based data analytics solutions are typically offered on a pay-as-you-go basis. This financial flexibility is crucial for SMEs, allowing them to invest more in core business activities. Cloud platforms offer access to a wide range of advanced data analytics tools that might otherwise be out of reach for SMEs. These include machine learning algorithms, predictive analytics, and big data processing capabilities. By leveraging these tools, SMEs can gain deeper insights into their operations and market, enabling them to make data-driven decisions that enhance competitiveness, operational efficiency and increase customer satisfaction. For example, by analysing sales data, a retail SME can identify which products are most popular and adjust inventory levels accordingly. A manufacturing SME can use data analytics to optimise production processes, reducing waste and improving efficiency. Similarly, a financial SME can automate routine tasks such as invoicing and payroll processing, freeing up staff to focus on more strategic activities. These improvements in operational efficiency can have a significant impact on the bottom line. Competitive Advantage and Innovation In a highly competitive market, having access to the latest technology can provide a crucial advantage. By adopting cloud-based data analytics, SMEs can stay ahead of competitors who are slower to embrace digital transformation. This early adoption can lead to innovations in products and services, better customer experiences, and more effective marketing strategies. Over time, these advantages can help SMEs build a strong market position. Cloud technology serves as a launchpad, enabling SMEs to scale, adapt, and grow at an aggressive pace. SMEs migrating to the cloud have created an important differentiator that helps them compete effectively in the market. Cloud provides cost-effective scalability, storage, processing power, improved agility, user-friendly tools, and collaboration—all features that make data analytics more accessible for SMEs. Cloud Adoption and Strategic Partnerships According to SME Digital Insights study , nearly 20% of SMEs have already moved more than 50% of their workload to the cloud. Customer support (51%) and networking applications (49%) are top priorities for migration. The IT/ITeS sector is at the forefront of adopting Artificial Intelligence (AI) and Machine learning with 35% SMEs using these advanced technologies. These tools are being leveraged for data analytics to enhance user experiences, automate processes, and drive innovation. The BFSI sector has been an early mover in harnessing big data analytics (37%) to gain insights, manage risk, and deliver personalised services. Regulatory requirements and the availability of large datasets have been key drivers of adoption in this sector. Though seamless cloud adoption requires careful planning, several key areas offer great opportunities for SMEs. These include network optimisation, strategic cost management, and robust data security solutions. SMEs can utilise the full potential of cloud adoption by better managing network connectivity, costs, data security concerns, skills and expertise gaps, and performance monitoring. However, a lack of skilled professionals and internal technology expertise can hinder optimal cloud adoption. Therefore, trusted cloud partners are essential for SMEs helping them in driving agility, innovation, and growth. According to SME Digital Insights, SMEs seek reliable partners for cloud navigation to achieve the desired ROI on their cloud investments. These partners assist in creating robust migration plans and future growth strategies, optimising cloud resource allocation, and identifying cost-saving opportunities. They offer SMEs pre-built dashboards, easy-to-use interfaces, and secure cloud storage, unlocking the power of data analytics. Cloud providers use best practices in risk mitigation to ensure data security and compliance, crucial for SMEs lacking robust security resources. To conclude, in this digital era, the ability to analyse and act on data is not just an advantage but a necessity. For SMEs, cloud-based data analytics offers a pathway to sustainable growth and long-term success. It's time for them and SMEs to seize this opportunity to innovate and transform their businesses through the power of data. As more Indian SMEs embrace cloud-based data analytics, they will be better positioned to compete in the global market, driving economic growth and creating new opportunities.

Empowering Indian SMEs through cloud-based data analytics 

If India is to become a developed economy by 2047, it must do so by effectively acting upon a roadmap to become a $30 trillion economy by then along with a per capita income of $18,000 per annum, according to an approach paper laid out on Saturday (Jul&nbsp;27) to encapsulate the vision for developed India (viksit bharat).&nbsp;

The paper pointed out that India's GDP must grow over nine times its present value ($3.3 trillion) and the per capita income must rise eight times from $2,392 per annum right now.

Also watch |&nbsp;India Budget: India's growth map to a developed economy&nbsp;

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At present, India is the world's fifth-largest economy. By 2027, it is poised to become the world's third-largest after its GDP crosses $5 trillion.&nbsp;

"By 2047, India is capable of becoming a $30 trillion economy with the quality of life of a developed nation," the paper said.

<h2>India as a potential $30 trillion economy: What does it mean?</h2>

It simply means that the country's middle class (about 432 million people as of 2021) may potentially rise to the upper echelons of wealth generators. Apart from that, if the growth is equal and all-encompassing (meaning the wealth generation is not focused on a few hundred millionaires but widespread), poverty would become non-existent&nbsp;and prosperity would reach the nooks and corners of the country.

The paper released on July 27 pointed out that for India to progress&nbsp;from a middle-income to a high-income level, it requires sustained growth in the range of 7 to 10 per cent for 20 – 30 years.

"Very few countries have managed to do this. The reasons have been well analysed and include structural, institutional, and other socioeconomic factors. As a nation, we need to avoid this trap and carefully work towards breaking out of it," said the paper.

Also read |&nbsp;<a href="https://www.wionews.com/opinions/what-india-can-learn-from-china-on-manufacturing-vs-services-led-growth-debate-722881">What India can learn from China on manufacturing vs services-led growth debate</a>

The paper identified&nbsp;escaping the middle-income trap as a challenge. Barely a dozen middle-income countries have broken out to become developed high-income countries in the last 70 years, it added.

"A Vision for Viksit Bharat @2047 will consist of concrete goals, with a strategy and a set of guiding principles to achieve those goals, and clear actions along certain themes to actually implement the strategy. All these put together would constitute a vision for Viksit Bharat@2047," according to the document.

"Being a youthful nation, the working age population would be around 112 crore, making it the single largest workforce of any nation," according to the document.

If India is to become a developed economy by 2047, it must do so by effectively acting upon a roadmap to become a $30 trillion economy by then along with a per capita income of $18,000 per annum, according to an approach paper laid out on Saturday (Jul 27) to encapsulate the vision for developed India (viksit bharat).

If India is to become a developed economy by 2047, it must do so by effectively acting upon a roadmap to become a $30 trillion economy by then along with a per capita income of $18,000 per annum, according to an approach paper laid out on Saturday (Jul 27) to encapsulate the vision for developed India (viksit bharat). The paper pointed out that India's GDP must grow over nine times its present value ($3.3 trillion) and the per capita income must rise eight times from $2,392 per annum right now. Also watch | India Budget: India's growth map to a developed economy × At present, India is the world's fifth-largest economy. By 2027, it is poised to become the world's third-largest after its GDP crosses $5 trillion. "By 2047, India is capable of becoming a $30 trillion economy with the quality of life of a developed nation," the paper said. India as a potential $30 trillion economy: What does it mean? It simply means that the country's middle class (about 432 million people as of 2021) may potentially rise to the upper echelons of wealth generators. Apart from that, if the growth is equal and all-encompassing (meaning the wealth generation is not focused on a few hundred millionaires but widespread), poverty would become non-existent and prosperity would reach the nooks and corners of the country. The paper released on July 27 pointed out that for India to progress from a middle-income to a high-income level, it requires sustained growth in the range of 7 to 10 per cent for 20 – 30 years. "Very few countries have managed to do this. The reasons have been well analysed and include structural, institutional, and other socioeconomic factors. As a nation, we need to avoid this trap and carefully work towards breaking out of it," said the paper. Also read | What India can learn from China on manufacturing vs services-led growth debate The paper identified escaping the middle-income trap as a challenge. Barely a dozen middle-income countries have broken out to become developed high-income countries in the last 70 years, it added. "A Vision for Viksit Bharat @2047 will consist of concrete goals, with a strategy and a set of guiding principles to achieve those goals, and clear actions along certain themes to actually implement the strategy. All these put together would constitute a vision for Viksit Bharat@2047," according to the document. "Being a youthful nation, the working age population would be around 112 crore, making it the single largest workforce of any nation," according to the document.

This is what it takes for India to become developed nation by 2047

On July 9, 2024, India's market capitalisation of listed companies exceeded $5.0 trillion, reaching about 145 per cent of nominal GDP—almost near the 146 per cent recorded in December 2007. Several nations have market caps ranging from 100-337 per cent of GDP during CY 2020-23. However, questions arise about how long this can be sustained, how the booming market cap can swap fiscal debt and support the Indian economy, and how Budget 2024 can facilitate this.&nbsp;

To sustain a booming market, India must ensure consistent higher GDP growth, driven by an investment-led and export-led growth model. For higher investment rates in productive assets and supporting infrastructure, domestic financial savings are inadequate. Therefore, India needs global investments, such as FDI or FPI.&nbsp;

The ratio of cumulative investment in FPI to nominal GDP as of March 2004, March 2014, and December 2023 was 4.3 per cent, 7.66 per cent, and 5.48 per cent, respectively. According to CDSL, cumulative investment by FPIs in equity, debt, and hybrid instruments until March 2004 was barely Rs. 1.19 trillion ($260 billion). By the end of FY 2004-14 and FY 2014-2024 (up to Q3), it had reached about Rs. 8.61 trillion ($1423 billion) and Rs. 16.16 trillion ($1955 billion), respectively. Thus, in the past two decades, the growth was about 724 per cent and 188 per cent &nbsp;on a rupee basis, and 547 per cent and 137 per cent on a USD basis, respectively.&nbsp;

This data reveals that rupee stability is a prerequisite for consistent global capital inflow, providing higher returns on a USD basis to global investors. To achieve this, India must improve its economic efficiency by announcing multiple policy tools in the forthcoming Budget 2024, enabling India to become export-competitive and eliminate the past legacy of trade deficits (goods &amp; services). During the interim period, Budget 2024 should provide incentives for incremental exports in a calibrated manner.&nbsp;

Also, long-term capital gains tax may be exempted or reduced for global investors if the sale proceeds of equity/bonds are reinvested into the Indian capital market within the same year. This will reduce repatriation of forex and support the economy. Budget 2024 is the opportune time for giving such incentives.&nbsp;

Out of the total market cap, the share of the top 100 listed companies is about 75-80 per cent, while the remaining 6700 companies hold a 20-25 per cent share. Ideally, it should be broad-based for inclusive growth. Among the top 100 listed companies, about 18 PSU companies have a market cap share below 10 per cent; this must increase through new listings.&nbsp;

There might be more than 400 unlisted public sector enterprises (PSEs) owned by state and central governments in various fields such as railways, NHAI, power generation and transmission, ports, airports, mining, insurance, finance, and many others. These may be corporatized and listed with stock exchanges, as recently done with LIC. Through this, governments can raise funds by selling shares to the public in tranches while retaining ownership. This will be a better choice compared to total disinvestment and/or leasing out. Part of the fiscal debt may be swapped with equity in this way.&nbsp;

These PSUs may invest in their core competence areas and allied fields by raising debt in their balance sheets, which will not be part of the fiscal debt. Particularly, railways have significant potential to invest in increasing goods traffic and earning substantial profits. This will reduce logistics costs, benefiting the economy and kick-starting the private investment cycle.&nbsp;

The balance sales proceeds of shares may be invested in niche sectors such as the manufacturing of defence and aviation equipment, exploration of oil and critical minerals, and research and innovation in various fields, mostly in new unlisted corporates. These may be listed in due course after making profits. Private corporates hesitate to invest in such niche areas due to associated risks. However, these are crucial for India in meeting its future economic needs and cutting down imports.&nbsp;

For infrastructure spending, new PSUs may be incorporated and listed in joint ventures with states and/or reputed corporates by infusing part equity from the budget and balance from the capital market. Such listed PSUs shall raise debt from the bond market against sovereign guarantees. Obviously, this debt will not be part of the fiscal debt. However, such PSUs shall undertake only commercially viable infrastructures. By this, budgetary resources shall be leveraged 3-5 times, and the benefits of a booming capital market may be availed.&nbsp;

Currently, the share of the bond market is very small compared to other major economies. Ways and means must be designed for its promotion. For PSUs, sovereign guarantees may be provided. The recent inclusion of Indian bonds in the JP Morgan index will certainly facilitate this. However, a stable rupee is a prerequisite. By this, the bond market shall grow, facilitating higher growth of investment in the productive sector and GDP in future years. Banks shall have surplus funds for financing unlisted small companies.&nbsp;

By and large, a booming market cap must be used for partly swapping fiscal debts and floating new PSU corporates for infrastructure spending. This will support the long-term GDP growth of India. Reduction of fiscal debt will upgrade the sovereign rating and facilitate higher inflow of global funds. Thus, the benefits of a booming market cap can deliver multiple benefits for the nation and the general public by adopting appropriate strategies and wise policy tools, which may be announced in the forthcoming budget.&nbsp;

On July 9, 2024, India's market capitalisation of listed companies exceeded $5.0 trillion, reaching about 145 per cent of nominal GDP—almost near the 146 per cent recorded in December 2007.

On July 9, 2024, India's market capitalisation of listed companies exceeded $5.0 trillion, reaching about 145 per cent of nominal GDP—almost near the 146 per cent recorded in December 2007. Several nations have market caps ranging from 100-337 per cent of GDP during CY 2020-23. However, questions arise about how long this can be sustained, how the booming market cap can swap fiscal debt and support the Indian economy, and how Budget 2024 can facilitate this. To sustain a booming market, India must ensure consistent higher GDP growth, driven by an investment-led and export-led growth model. For higher investment rates in productive assets and supporting infrastructure, domestic financial savings are inadequate. Therefore, India needs global investments, such as FDI or FPI. The ratio of cumulative investment in FPI to nominal GDP as of March 2004, March 2014, and December 2023 was 4.3 per cent, 7.66 per cent, and 5.48 per cent, respectively. According to CDSL, cumulative investment by FPIs in equity, debt, and hybrid instruments until March 2004 was barely Rs. 1.19 trillion ($260 billion). By the end of FY 2004-14 and FY 2014-2024 (up to Q3), it had reached about Rs. 8.61 trillion ($1423 billion) and Rs. 16.16 trillion ($1955 billion), respectively. Thus, in the past two decades, the growth was about 724 per cent and 188 per cent on a rupee basis, and 547 per cent and 137 per cent on a USD basis, respectively. This data reveals that rupee stability is a prerequisite for consistent global capital inflow, providing higher returns on a USD basis to global investors. To achieve this, India must improve its economic efficiency by announcing multiple policy tools in the forthcoming Budget 2024, enabling India to become export-competitive and eliminate the past legacy of trade deficits (goods & services). During the interim period, Budget 2024 should provide incentives for incremental exports in a calibrated manner. Also, long-term capital gains tax may be exempted or reduced for global investors if the sale proceeds of equity/bonds are reinvested into the Indian capital market within the same year. This will reduce repatriation of forex and support the economy. Budget 2024 is the opportune time for giving such incentives. Out of the total market cap, the share of the top 100 listed companies is about 75-80 per cent, while the remaining 6700 companies hold a 20-25 per cent share. Ideally, it should be broad-based for inclusive growth. Among the top 100 listed companies, about 18 PSU companies have a market cap share below 10 per cent; this must increase through new listings. There might be more than 400 unlisted public sector enterprises (PSEs) owned by state and central governments in various fields such as railways, NHAI, power generation and transmission, ports, airports, mining, insurance, finance, and many others. These may be corporatized and listed with stock exchanges, as recently done with LIC. Through this, governments can raise funds by selling shares to the public in tranches while retaining ownership. This will be a better choice compared to total disinvestment and/or leasing out. Part of the fiscal debt may be swapped with equity in this way. These PSUs may invest in their core competence areas and allied fields by raising debt in their balance sheets, which will not be part of the fiscal debt. Particularly, railways have significant potential to invest in increasing goods traffic and earning substantial profits. This will reduce logistics costs, benefiting the economy and kick-starting the private investment cycle. The balance sales proceeds of shares may be invested in niche sectors such as the manufacturing of defence and aviation equipment, exploration of oil and critical minerals, and research and innovation in various fields, mostly in new unlisted corporates. These may be listed in due course after making profits. Private corporates hesitate to invest in such niche areas due to associated risks. However, these are crucial for India in meeting its future economic needs and cutting down imports. For infrastructure spending, new PSUs may be incorporated and listed in joint ventures with states and/or reputed corporates by infusing part equity from the budget and balance from the capital market. Such listed PSUs shall raise debt from the bond market against sovereign guarantees. Obviously, this debt will not be part of the fiscal debt. However, such PSUs shall undertake only commercially viable infrastructures. By this, budgetary resources shall be leveraged 3-5 times, and the benefits of a booming capital market may be availed. Currently, the share of the bond market is very small compared to other major economies. Ways and means must be designed for its promotion. For PSUs, sovereign guarantees may be provided. The recent inclusion of Indian bonds in the JP Morgan index will certainly facilitate this. However, a stable rupee is a prerequisite. By this, the bond market shall grow, facilitating higher growth of investment in the productive sector and GDP in future years. Banks shall have surplus funds for financing unlisted small companies. By and large, a booming market cap must be used for partly swapping fiscal debts and floating new PSU corporates for infrastructure spending. This will support the long-term GDP growth of India. Reduction of fiscal debt will upgrade the sovereign rating and facilitate higher inflow of global funds. Thus, the benefits of a booming market cap can deliver multiple benefits for the nation and the general public by adopting appropriate strategies and wise policy tools, which may be announced in the forthcoming budget.

Budget-2024: How can Capital-Market swap fiscal debt and support the Economy?

On July 11, Prime Minister Narendra Modi interacted with top economists to take inputs and ideas for the upcoming Budget for 2024-25.

This meeting called for crystallising the financial blueprint of the Modi 3.0 government, was also attended by Union Finance Minister Nirmala Sitharaman, who would present the Budget in the Lok Sabha on July 23.

It saw the participation of lead attendees: Niti Aayog Vice Chairman Suman Bery, Union Minister for Finance Sitharaman, Minister for Planning Rao Inderjit Singh, Chief Economic Advisor V. Anantha Nageswaran, noted economists Surjit Bhalla and Ashok Gulati, and veteran banker K.V. Kamath.

The budget is expected to hurry out a roadmap of how India should progress and become a developed nation by 2047, as President Droupadi Murmu told Parliament in her recent address.

She has said that the government will bring substantial reforms to hasten the pace of development.

FM Sitharaman has been aggressive in her preparation and has met a host of stakeholders, including economists and industry leaders, to get views that could make this Budget comprehensive.

What has come as a consistent suggestion is that the government needs to give tax relief so that there can be more consumer spending, external pressure on inflation, and economic growth.

The economy of India has registered a wonderful growth of 8.2 per cent for FY 2023-24. This would be an ensuing budget after the interim one presented by Ms Sitharaman in February, specially made with elections to Lok Sabha in view.

All told the forthcoming Budget must reflect new thinking, not mere tinkering; the comprehensive policies of the government shall set the foundation for India's future economic path.

On July 11, Prime Minister Narendra Modi interacted with top economists to take inputs and ideas for the upcoming Budget for 2024-25. This meeting called for crystallising the financial blueprint of the Modi 3.

On July 11, Prime Minister Narendra Modi interacted with top economists to take inputs and ideas for the upcoming Budget for 2024-25. This meeting called for crystallising the financial blueprint of the Modi 3.0 government, was also attended by Union Finance Minister Nirmala Sitharaman, who would present the Budget in the Lok Sabha on July 23. It saw the participation of lead attendees: Niti Aayog Vice Chairman Suman Bery, Union Minister for Finance Sitharaman, Minister for Planning Rao Inderjit Singh, Chief Economic Advisor V. Anantha Nageswaran, noted economists Surjit Bhalla and Ashok Gulati, and veteran banker K.V. Kamath. The budget is expected to hurry out a roadmap of how India should progress and become a developed nation by 2047, as President Droupadi Murmu told Parliament in her recent address. She has said that the government will bring substantial reforms to hasten the pace of development. FM Sitharaman has been aggressive in her preparation and has met a host of stakeholders, including economists and industry leaders, to get views that could make this Budget comprehensive. What has come as a consistent suggestion is that the government needs to give tax relief so that there can be more consumer spending, external pressure on inflation, and economic growth. The economy of India has registered a wonderful growth of 8.2 per cent for FY 2023-24. This would be an ensuing budget after the interim one presented by Ms Sitharaman in February, specially made with elections to Lok Sabha in view. All told the forthcoming Budget must reflect new thinking, not mere tinkering; the comprehensive policies of the government shall set the foundation for India's future economic path.

PM Modi meets economists ahead of upcoming budget

As India gears up for its upcoming budget, a key sector – the auto industry – is buzzing with anticipation.

The question remains what does the budget hold for automakers and most importantly, for you, the consumer?

With the union budget for the financial year 2024-25 approaching,

The automotive sector in India is poised with expectations of pivotal measures that could shape its growth trajectory, particularly from a consumer perspective.

Analysts anticipate a focus on bolstering rural spending to stimulate demand, buoyed by favourable monsoon forecasts and an anticipated recovery in the rural market.

This, in turn, is expected to enhance disposable incomes, potentially driving up demand for automobiles, especially in the two-wheeler segment.

The recent performance metrics have shown robust growth in the SUV and commercial vehicle sectors, attributed to improved consumer sentiment, successful price adjustments, and new model launches.

As such, industry experts and research analysts are looking towards the upcoming budget to sustain momentum and foster further growth.

Key expectations include the continuation and enhancement of schemes like Fame, with a focus on promoting electric mobility through subsidies and infrastructure development.

There is also a call for reduced GST rates on vehicles, particularly for entry-level models, aimed at making car ownership more accessible to the growing middle class.

Moreover, measures supporting research and development in electric vehicle technology, scrappage incentives, and infrastructure development are anticipated to bolster market access and consumer affordability.

The industry is keenly watching for updates on these fronts to gauge the budget's impact on fostering a conducive environment for automotive innovation and market expansion.

As India gears up for its upcoming budget, a key sector – the auto industry – is buzzing with anticipation. The question remains what does the budget hold for automakers and most importantly, for you, the consumer?

As India gears up for its upcoming budget, a key sector – the auto industry – is buzzing with anticipation. The question remains what does the budget hold for automakers and most importantly, for you, the consumer? With the union budget for the financial year 2024-25 approaching, The automotive sector in India is poised with expectations of pivotal measures that could shape its growth trajectory, particularly from a consumer perspective. Analysts anticipate a focus on bolstering rural spending to stimulate demand, buoyed by favourable monsoon forecasts and an anticipated recovery in the rural market. This, in turn, is expected to enhance disposable incomes, potentially driving up demand for automobiles, especially in the two-wheeler segment. The recent performance metrics have shown robust growth in the SUV and commercial vehicle sectors, attributed to improved consumer sentiment, successful price adjustments, and new model launches. As such, industry experts and research analysts are looking towards the upcoming budget to sustain momentum and foster further growth. Key expectations include the continuation and enhancement of schemes like Fame, with a focus on promoting electric mobility through subsidies and infrastructure development. There is also a call for reduced GST rates on vehicles, particularly for entry-level models, aimed at making car ownership more accessible to the growing middle class. Moreover, measures supporting research and development in electric vehicle technology, scrappage incentives, and infrastructure development are anticipated to bolster market access and consumer affordability. The industry is keenly watching for updates on these fronts to gauge the budget's impact on fostering a conducive environment for automotive innovation and market expansion.

India's auto industry anticipates budget boosts for growth and affordability

The Reserve Bank of India's half-yearly report for risk assessment in the financial sector presents a collective assessment of the stability of the global &amp; India's financial system.

On global macro-financial risks, the report highlights 'resilience amid heightened risks and uncertainties'. While short-term economic indicators point to a significant improvement, the report also highlights the challenges. Issues of high public debt, geopolitical tensions, stretched asset valuations, economic fragmentation, climate disasters, &amp; cyber threats plague the global economic outlook. Emerging market economies remain vulnerable to these external shocks.

On domestic macro-financial risks, the report reiterates India's growth story. Strong fundamentals and a stable financial system have boosted India's economic outlook. Business and consumer sentiment outlook is also optimistic, with moderation inflation and ongoing fiscal consolidation. Financial institutions boast of healthy balance sheets, marked by strong capital buffers, improving asset quality and robust earnings.

On the resilience of financial institutions, the report highlighted Scheduled commercial banks (SCBs), that have been boosted by rising profitability and declining non-performing assets. Return on assets(ROE) &amp; Return on equity (ROE) are close to decade highs at 1.3 per cent and 13.8 per cent, respectively. The consolidated solvency ratio of the insurance sector remains above the minimum threshold limit of 150 per cent.&nbsp;

On regulatory initiatives in the global financial sector, the report highlights a focus on recent initiatives aimed at safeguarding the banking system from inter-connectedness. Meanwhile, domestic regulatory initiatives are also focused on ensuring safety and resilience.&nbsp;

The Reserve Bank of India's half-yearly report for risk assessment in the financial sector presents a collective assessment of the stability of the global & India's financial system.

The Reserve Bank of India's half-yearly report for risk assessment in the financial sector presents a collective assessment of the stability of the global & India's financial system. On global macro-financial risks, the report highlights 'resilience amid heightened risks and uncertainties'. While short-term economic indicators point to a significant improvement, the report also highlights the challenges. Issues of high public debt, geopolitical tensions, stretched asset valuations, economic fragmentation, climate disasters, & cyber threats plague the global economic outlook. Emerging market economies remain vulnerable to these external shocks. On domestic macro-financial risks, the report reiterates India's growth story. Strong fundamentals and a stable financial system have boosted India's economic outlook. Business and consumer sentiment outlook is also optimistic, with moderation inflation and ongoing fiscal consolidation. Financial institutions boast of healthy balance sheets, marked by strong capital buffers, improving asset quality and robust earnings. On the resilience of financial institutions, the report highlighted Scheduled commercial banks (SCBs), that have been boosted by rising profitability and declining non-performing assets. Return on assets(ROE) & Return on equity (ROE) are close to decade highs at 1.3 per cent and 13.8 per cent, respectively. The consolidated solvency ratio of the insurance sector remains above the minimum threshold limit of 150 per cent. On regulatory initiatives in the global financial sector, the report highlights a focus on recent initiatives aimed at safeguarding the banking system from inter-connectedness. Meanwhile, domestic regulatory initiatives are also focused on ensuring safety and resilience.

RBI's Financial Stability Report: India's assessment of the global economy

India's economic growth continues to expand despite a global slowdown. The HSBC's flash India Composite Purchasing Managers' Index (PMI) rose to 60.9 in June from last month's 60.5. This marks a faster expansion owing to growth in manufacturing and services sectors.

But what's more exciting is the pace of job creation. The survey showed that the job creation was at its strongest in over 18 years. This comes as a welcome boost for the newly elected government. When the country is growing by over 8 per cent, it's critical to ensure a robust inflow of jobs in the market. Despite the optimistic numbers, ensuring that jobs continue to grow is paramount.

India's export orders also registered substantial gains, marking the 22nd consecutive month of growth in June. The pace, however, slightly eased after record growth last month.

Coming to India's price pressures, price increases eased since May, pointing out an improving retail inflation outlook. Service input costs also eased to a 4-month low.

Although business confidence has weakened in the short term, the outlook for the year remains positive. Companies expect gains based on recent proposals, efficiency boosts, &amp; forecasts for favourable exchange rates. This comes as India registers a fall in its <a href="https://www.wionews.com/business-economy/indias-forex-reserves-fall-from-record-highs-733909">forex reserves</a> from the record-high of $656 billion.

All eyes are on the upcoming budget. Finance Minister Nirmala Sitharaman recently convened a high-level meeting with leading economists to chart the economic roadmap. The emphasis is expected to be on policy continuity across key sectors and fiscal discipline.

India's economic growth continues to expand despite a global slowdown. The HSBC's flash India Composite Purchasing Managers' Index (PMI) rose to 60.9 in June from last month's 60.

India's economic growth continues to expand despite a global slowdown. The HSBC's flash India Composite Purchasing Managers' Index (PMI) rose to 60.9 in June from last month's 60.5. This marks a faster expansion owing to growth in manufacturing and services sectors. But what's more exciting is the pace of job creation. The survey showed that the job creation was at its strongest in over 18 years. This comes as a welcome boost for the newly elected government. When the country is growing by over 8 per cent, it's critical to ensure a robust inflow of jobs in the market. Despite the optimistic numbers, ensuring that jobs continue to grow is paramount. India's export orders also registered substantial gains, marking the 22nd consecutive month of growth in June. The pace, however, slightly eased after record growth last month. Coming to India's price pressures, price increases eased since May, pointing out an improving retail inflation outlook. Service input costs also eased to a 4-month low. Although business confidence has weakened in the short term, the outlook for the year remains positive. Companies expect gains based on recent proposals, efficiency boosts, & forecasts for favourable exchange rates. This comes as India registers a fall in its forex reserves from the record-high of $656 billion. All eyes are on the upcoming budget. Finance Minister Nirmala Sitharaman recently convened a high-level meeting with leading economists to chart the economic roadmap. The emphasis is expected to be on policy continuity across key sectors and fiscal discipline.

India's economy gains momentum: Business activity jumps, job creation at 18-year high

Most money spent on food in rural India went to ready-to-eat food and drinks in 2023. This is from a study by the Indian Ministry of Statistics and Program Implementation.&nbsp;

The study shows changes in what people eat and like. In the past, crops and food were how village households got money. But now, more cash goes to ready-to-eat stuff which means that packed goods are now everywhere and eaten.&nbsp;

This could be because of things like a shift in society, better work, and more money. Eating fresh food is better though in some villages it can mean a higher way of life.&nbsp;

There are also side effects to this shifting trend.&nbsp;Relying on packed food might lead to health issues like being too fat, diabetes, and heart sickness. It could also make it hard to keep up with old farming ways and local food.&nbsp;

The move to packed food in villages in India has big effects on the country's growth. This means that the food trade will grow and change for new tastes of buyers.&nbsp;

In fast-growing countries like India, there will be more want for packed food because people's way of living is changing. Big firms in the food trade can grow and make more food types now.

Most money spent on food in rural India went to ready-to-eat food and drinks in 2023. This is from a study by the Indian Ministry of Statistics and Program Implementation.

Most money spent on food in rural India went to ready-to-eat food and drinks in 2023. This is from a study by the Indian Ministry of Statistics and Program Implementation. The study shows changes in what people eat and like. In the past, crops and food were how village households got money. But now, more cash goes to ready-to-eat stuff which means that packed goods are now everywhere and eaten. This could be because of things like a shift in society, better work, and more money. Eating fresh food is better though in some villages it can mean a higher way of life. There are also side effects to this shifting trend. Relying on packed food might lead to health issues like being too fat, diabetes, and heart sickness. It could also make it hard to keep up with old farming ways and local food. The move to packed food in villages in India has big effects on the country's growth. This means that the food trade will grow and change for new tastes of buyers. In fast-growing countries like India, there will be more want for packed food because people's way of living is changing. Big firms in the food trade can grow and make more food types now.

Economic impact of dietary changes in rural India

India's economy grows at a faster-than-expected 8% in the fiscal year ended in March. Gross domestic product has risen 8.2% from a year ago. That is above the 7.9% forecast by economists in a Bloomberg survey. For the January-March quarter, gdp grew 7.8% from a year ago.

India grows faster-than-expected

India posted world-beating growth of 8.2 per cent in the year to March on Friday, in a last-minute boost to Prime Minister Narendra Modi's economic credentials the day before national elections conclude.

The world's most populous country also remains its fastest growing major economy thanks to robust demand and huge government infrastructure spending.

That has kept sentiment positive about India's overall economic trajectory despite chronic unemployment and immense welfare outlays to hundreds of millions of poverty-stricken citizens.

Strong growth in the manufacturing and mining sectors contributed to India's annual growth numbers, which beat both government and analyst projections.

Also read:&nbsp;<a data-ctorig="https://www.wionews.com/business-economy/indias-economic-ascent-projected-68-pc-growth-in-fy25-eyes-upper-middle-income-status-by-2031-697492" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/indias-economic-ascent-projected-68-pc-growth-in-fy25-eyes-upper-middle-income-status-by-2031-697492&amp;sa=U&amp;ved=2ahUKEwiNjbrO-reGAxVZTGcHHdrZAZUQFnoECAAQAg&amp;usg=AOvVaw0y7SWPdyN_-5RI0CqnBaVq&amp;arm=e&amp;fexp=72519171,72519168" dir="ltr" href="https://www.wionews.com/business-economy/indias-economic-ascent-projected-68-pc-growth-in-fy25-eyes-upper-middle-income-status-by-2031-697492" target="_blank">India's&nbsp;Economic&nbsp;Ascent: Projected to grow 6.8 pc in FY25</a>

India's economy also recorded 7.8 per cent growth for the March quarter, higher than the government's projection of 5.9 per cent.

The figures from India's statistics ministry were published a day before the country concludes voting in general elections staged over six weeks.

Analysts widely expect Modi's Hindu nationalist government to win a third term once results are counted on Tuesday.

The 73-year-old premier has pledged to make India the world's third-biggest economy after the United States and China by the end of the decade.

Watch:&nbsp;US Economy grows slower than previously estimated in Q1 - WION

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Modi's ruling Bharatiya Janata Party (BJP) has vowed if re-elected to maintain its focus on infrastructure spending and keep in place popular subsidies including free rations for needy families and cash handouts for farmers.

Its re-election campaign has been aided by a campaign war chest that dwarfs its rivals thanks to donations from some of India's biggest conglomerates.

The BJP received $730 million in five years from leading companies and wealthy businesspeople through electoral bonds, a contentious political donation tool since ruled illegal by India's top court, making it by far the biggest single beneficiary.

But Modi's government has struggled to create enough jobs for the tens of millions of young Indians entering the workforce each year.

The International Labour Organisation has estimated that 29 percent of India's young university graduates were unemployed in 2022.

India emerged from the Covid-19 pandemic to be buffeted by a new set of global headwinds, including price spikes in global oil and food markets as a result of the war in Ukraine.

Inflation has since receded to 4.83 per cent from its peak in 2022 above seven per cent.

Friday's figures put India's economic growth higher than China, Western nations and all other major emerging economies, according to International Monetary Fund (IMF) forecasts from April.

The IMF expects growth to taper slightly to 6.5 percent for the 2024-25 fiscal year, against the Indian central bank's forecast of seven percent.

India posted world-beating growth of 8.2 per cent in the year to March on Friday, in a last-minute boost to Prime Minister Narendra Modi's economic credentials the day before national elections conclude.

India posted world-beating growth of 8.2 per cent in the year to March on Friday, in a last-minute boost to Prime Minister Narendra Modi's economic credentials the day before national elections conclude. The world's most populous country also remains its fastest growing major economy thanks to robust demand and huge government infrastructure spending. That has kept sentiment positive about India's overall economic trajectory despite chronic unemployment and immense welfare outlays to hundreds of millions of poverty-stricken citizens. Strong growth in the manufacturing and mining sectors contributed to India's annual growth numbers, which beat both government and analyst projections. Also read: India's Economic Ascent: Projected to grow 6.8 pc in FY25 India's economy also recorded 7.8 per cent growth for the March quarter, higher than the government's projection of 5.9 per cent. The figures from India's statistics ministry were published a day before the country concludes voting in general elections staged over six weeks. Analysts widely expect Modi's Hindu nationalist government to win a third term once results are counted on Tuesday. The 73-year-old premier has pledged to make India the world's third-biggest economy after the United States and China by the end of the decade. Watch: US Economy grows slower than previously estimated in Q1 - WION × Modi's ruling Bharatiya Janata Party (BJP) has vowed if re-elected to maintain its focus on infrastructure spending and keep in place popular subsidies including free rations for needy families and cash handouts for farmers. Its re-election campaign has been aided by a campaign war chest that dwarfs its rivals thanks to donations from some of India's biggest conglomerates. The BJP received $730 million in five years from leading companies and wealthy businesspeople through electoral bonds, a contentious political donation tool since ruled illegal by India's top court, making it by far the biggest single beneficiary. But Modi's government has struggled to create enough jobs for the tens of millions of young Indians entering the workforce each year. The International Labour Organisation has estimated that 29 percent of India's young university graduates were unemployed in 2022. India emerged from the Covid-19 pandemic to be buffeted by a new set of global headwinds, including price spikes in global oil and food markets as a result of the war in Ukraine. Inflation has since receded to 4.83 per cent from its peak in 2022 above seven per cent. Friday's figures put India's economic growth higher than China, Western nations and all other major emerging economies, according to International Monetary Fund (IMF) forecasts from April. The IMF expects growth to taper slightly to 6.5 percent for the 2024-25 fiscal year, against the Indian central bank's forecast of seven percent.

In major boost to Modinomics, India's economy expands 7.8% in Q4

In the pollnomics section today, we dive into the current government's reform programmes and macro financial stability. This next report seeks to understand the ruling party's economic policies aimed at financial stability and more.

India's growth hinges on strong budget & fiscal discipline

India’s startup ecosystem is robust, with multiple schemes aimed at strengthening India’s self-sufficiency. Today, on Pollnomics, we take a trip down memory lane and see how India’s startup ecosystem has evolved, & what major government schemes have propelled this surge.

India's startup landscape expands with 122,000 tech companies

In today's edition of pollnomics, we take a look at the western Indian state of Gujarat. The state sends 26 MPs to the lower house of India's parliament and assumes additional significance as prime minister Narendra Modi's home state. Take a look at the next report to understand the economic landscape of Gujarat.

Why Gujarat matters to India's economy | India's economic lodestar?

India is the new hub for smartphone maker Apple. Recent report shows that Apple has assembled iPhones worth $14 billion in the previous fiscal year. This figure stood at zero just a few years ago so what does this manufacturing boom tell us about India's Global Ambitions? Watch in for more details!

Lok Sabha Election 2024 | How manufacturing can reshape India?

With India gearing up for a monumental two-month-long election, the nation's economy is feeling the surge. From textile factories in temple town Mathura to bustling markets in Delhi, the demand for election merchandise is skyrocketing.

Rising demand for election goods spurs job creation in India

Lok Sabha Election 2024: Indian election merchandise demand skyrockets

India's growth story has been powered by a number of factors. In Pollnomics today, we look at some of the key economic strengths. We also look at some weaknesses that India needs to tackle for greater economic success.

India PM Modi's plan for economic growth, claims to make India third largest world economy | WION

PM Modi planning for third term, aims to grow Indian economy to $6.69 trillion by 2030 | WION

India's growth story has been powered by a number of factors. In Pollnomics today, we look at some of the key economic strengths. We also look at some weaknesses that india needs to tackle for greater economic success.

Indian economy's pros & cons

India is the fastest growing major economy in the world but government policies and spending have failed to kick start rural demand post the pandemic. With India's elections just round the corner and campaigning in full swing the question being can rural demand get a much needed boost? Watch in for more details!

World Bank upgrades India's economic outlook | India economy exceeds expectations

In 2023, India managed to grow & beat all other major economies. The country's growth rate also exceeded expectations, even as the rest of the world slowed. There is a good chance that india will see a similarly impressive performance in 2024.

India to see impressive performance in 2024 after robust 2023 | World Business Watch

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