It won't be wrong to say that the startup sector has been the flag-bearer of India's growth story. From around 350 in 2014, the number of startups has risen to over 100,000. This also reflects the growing clout of the sector, which is expected to employ millions in the next decade. This report tells you about the rise of startups in India's economy.

The rise of India's startups: India has third-largest startup ecosystem

India's merchandise exports are poised to surge to $450 billion by the end of this fiscal year, despite facing geopolitical hurdles such as the Red Sea crisis, as stated by Ashwani Kumar, the newly elected president of the Federation of Indian Export Organisation (FIEO). <o:p></o:p>

Despite challenges, Kumar remains optimistic about achieving this milestone, highlighting the strength of the exporting community and the need for strategic interventions to address ongoing challenges. <o:p></o:p>

Export growth amid challenges<o:p></o:p>

Despite geopolitical tensions and external disruptions, India's merchandise exports showcased resilience, witnessing an increase to $395 billion from April-February 2023-24. <o:p></o:p>

Notably, this growth trajectory persisted despite the Red Sea crisis, a tight monetary stance by developed nations, and fluctuations in commodity prices. <o:p></o:p>

Kumar attributed this resilience to the steadfast determination of the exporting community, highlighting their ability to navigate challenges since the Russia-Ukraine conflict. <o:p></o:p>

Despite the odds, exports surged by about 12 per cent in February, reaching $41.40 billion, driven by key sectors such as engineering goods, electronics, pharmaceuticals, and petroleum products.<o:p></o:p>

Addressing sectoral needs for growth<o:p></o:p>

Kumar noted the role of Micro, Small, and Medium Enterprises (MSMEs) in driving India's export ambitions, aiming to achieve a target of $1 trillion in goods exports by 2030. <o:p></o:p>

Recognising the challenges faced by MSMEs, including access to credit and marketing support, Kumar advocated for proactive measures to facilitate their growth. <o:p></o:p>

He urged financial institutions to extend easy and low-cost credit to MSMEs, acknowledging them as the backbone of the economy. <o:p></o:p>

Additionally, Kumar spoke on the importance of concluding free trade agreements, such as those with the UK and Oman, to stimulate outbound shipments and unlock new opportunities for exporters.<o:p></o:p>

Trade deficit dynamics<o:p></o:p>

Despite the surge in exports, India's merchandise trade deficit widened to $18.71 billion in February, compared to $17.49 billion in the previous month. <o:p></o:p>

This imbalance stems from imports outpacing exports in value terms, exacerbated by the Red Sea crisis. <o:p></o:p>

Goods imports rose to $60.11 billion in February, reflecting an increase from $54.41 billion in January, as per commerce ministry data. <o:p></o:p>

While export growth remains strong, addressing the trade deficit and ensuring a balanced trade environment will be critical for sustaining long-term economic stability.<o:p></o:p>

Global economic outlook<o:p></o:p>

Despite the prevailing uncertainties, rating agency Moodys, anticipates a steady normalisation in global economic activity throughout 2024 and 2025, as cited in a Mint report. <o:p></o:p>

Despite facing multifaceted challenges in recent years, including high interest rates, volatile commodity prices, and geopolitical tensions, major economies have demonstrated resilience. <o:p></o:p>

However, ongoing geopolitical tensions and financial uncertainties underscore the need for prudent policy measures and strategic interventions to mitigate risks and foster sustainable growth.<o:p></o:p>

(With inputs from PTI)<o:p></o:p>

India's merchandise exports are poised to surge to $450 billion by the end of this fiscal year, despite facing geopolitical hurdles such as the Red Sea crisis, as stated by Ashwani Kumar, the newly elected president of the Federation of Indian Export Organisation (FIEO).

India's merchandise exports are poised to surge to $450 billion by the end of this fiscal year, despite facing geopolitical hurdles such as the Red Sea crisis, as stated by Ashwani Kumar, the newly elected president of the Federation of Indian Export Organisation (FIEO). Despite challenges, Kumar remains optimistic about achieving this milestone, highlighting the strength of the exporting community and the need for strategic interventions to address ongoing challenges. Export growth amid challenges Despite geopolitical tensions and external disruptions, India's merchandise exports showcased resilience, witnessing an increase to $395 billion from April-February 2023-24. Notably, this growth trajectory persisted despite the Red Sea crisis, a tight monetary stance by developed nations, and fluctuations in commodity prices. Kumar attributed this resilience to the steadfast determination of the exporting community, highlighting their ability to navigate challenges since the Russia-Ukraine conflict. Despite the odds, exports surged by about 12 per cent in February, reaching $41.40 billion, driven by key sectors such as engineering goods, electronics, pharmaceuticals, and petroleum products. Addressing sectoral needs for growth Kumar noted the role of Micro, Small, and Medium Enterprises (MSMEs) in driving India's export ambitions, aiming to achieve a target of $1 trillion in goods exports by 2030. Recognising the challenges faced by MSMEs, including access to credit and marketing support, Kumar advocated for proactive measures to facilitate their growth. He urged financial institutions to extend easy and low-cost credit to MSMEs, acknowledging them as the backbone of the economy. Additionally, Kumar spoke on the importance of concluding free trade agreements, such as those with the UK and Oman, to stimulate outbound shipments and unlock new opportunities for exporters. Trade deficit dynamics Despite the surge in exports, India's merchandise trade deficit widened to $18.71 billion in February, compared to $17.49 billion in the previous month. This imbalance stems from imports outpacing exports in value terms, exacerbated by the Red Sea crisis. Goods imports rose to $60.11 billion in February, reflecting an increase from $54.41 billion in January, as per commerce ministry data. While export growth remains strong, addressing the trade deficit and ensuring a balanced trade environment will be critical for sustaining long-term economic stability. Global economic outlook Despite the prevailing uncertainties, rating agency Moodys, anticipates a steady normalisation in global economic activity throughout 2024 and 2025, as cited in a Mint report. Despite facing multifaceted challenges in recent years, including high interest rates, volatile commodity prices, and geopolitical tensions, major economies have demonstrated resilience. However, ongoing geopolitical tensions and financial uncertainties underscore the need for prudent policy measures and strategic interventions to mitigate risks and foster sustainable growth. (With inputs from PTI)

India's exports set to hit $450 billion despite Red Sea crisis, FIEO president optimistic

India is experiencing an economic surge reminiscent of the golden era between 2003 and 2007, according to a report by Morgan Stanley economists. <o:p></o:p>

This revival is primarily fuelled by an uptick in investments, echoing the growth trajectory of nearly two decades ago when the nation witnessed an average growth rate exceeding 8 per cent. <o:p></o:p>

The report, titled 'The Viewpoint: India - Why this feels like 2003-07', highlights the key role of capital expenditure (capex) in propelling the current expansion.<o:p></o:p>

Morgan Stanley's analysis emphasises a shift towards investment-driven growth over consumption, with a notable rise in public capex initially, followed by a rapid uptake in private investment. <o:p></o:p>

Notably, urban consumers are spearheading consumption growth, complemented by a burgeoning demand from rural sectors. <o:p></o:p>

The surge in India's global export market share coupled with effective management of macroeconomic stability risks further underpin this economic upswing.<o:p></o:p>

A key indicator of the ongoing expansion is the elevation in the investment-to-GDP ratio. <o:p></o:p>

Similar to the 2003-07 period, where this ratio soared from 27 per cent in Fiscal Year 2003 to 39 per cent in Fiscal Year 2008, the current trend is witnessing a resurgence. <o:p></o:p>

Presently standing at 34 per cent of GDP, it is anticipated to climb further to 36 per cent by Fiscal Year 2027, signifying a robust growth trajectory.<o:p></o:p>

During the 2003-07 boom, India experienced an impressive average GDP growth of 8.6 per cent alongside a modest headline CPI inflation of 4.8 per cent. <o:p></o:p>

Despite external shocks like the surge in oil prices, the current account deficit remained manageable, fluctuating within a comfortable range.<o:p></o:p>

Gross fixed capital formation (GFCF) also witnessed a remarkable acceleration during this period, indicating a robust investment climate.<o:p></o:p>

In the present cycle, real GFCF growth continues to demonstrate resilience, outperforming pre-Covid averages. <o:p></o:p>

Public capex has emerged as a primary growth driver, compensating for the corporate sector's subdued investment sentiment in the wake of previous shocks. <o:p></o:p>

However, with corporate profits rebounding and early indications of private capex gaining traction, the economic landscape is evolving.<o:p></o:p>

Despite the optimistic outlook, challenges persist. <o:p></o:p>

Private consumption remains relatively subdued, tracking below pre-Covid averages, underscoring the need for sustained efforts to stimulate domestic demand. <o:p></o:p>

Policymakers have been actively pursuing supply-side reforms to bolster the investment climate, exemplified by the uptick in real government fixed capex growth.<o:p></o:p>

Morgan Stanley underscores the critical role of public sector investments, particularly in infrastructure projects, to alleviate supply-side constraints and pave the way for robust private sector participation. <o:p></o:p>

Such long-term investments are deemed essential for sustaining the current economic momentum and fostering inclusive growth.<o:p></o:p>

(With inputs from PTI)<o:p></o:p>

India is experiencing an economic surge reminiscent of the golden era between 2003 and 2007, according to a report by Morgan Stanley economists. This revival is primarily fuelled by an uptick in investments, echoing the growth trajectory of nearly two decades ago when the nation witnessed an average growth rate exceeding 8 per cent.

India is experiencing an economic surge reminiscent of the golden era between 2003 and 2007, according to a report by Morgan Stanley economists. This revival is primarily fuelled by an uptick in investments, echoing the growth trajectory of nearly two decades ago when the nation witnessed an average growth rate exceeding 8 per cent. The report, titled 'The Viewpoint: India - Why this feels like 2003-07', highlights the key role of capital expenditure (capex) in propelling the current expansion. Morgan Stanley's analysis emphasises a shift towards investment-driven growth over consumption, with a notable rise in public capex initially, followed by a rapid uptake in private investment. Notably, urban consumers are spearheading consumption growth, complemented by a burgeoning demand from rural sectors. The surge in India's global export market share coupled with effective management of macroeconomic stability risks further underpin this economic upswing. A key indicator of the ongoing expansion is the elevation in the investment-to-GDP ratio. Similar to the 2003-07 period, where this ratio soared from 27 per cent in Fiscal Year 2003 to 39 per cent in Fiscal Year 2008, the current trend is witnessing a resurgence. Presently standing at 34 per cent of GDP, it is anticipated to climb further to 36 per cent by Fiscal Year 2027, signifying a robust growth trajectory. During the 2003-07 boom, India experienced an impressive average GDP growth of 8.6 per cent alongside a modest headline CPI inflation of 4.8 per cent. Despite external shocks like the surge in oil prices, the current account deficit remained manageable, fluctuating within a comfortable range. Gross fixed capital formation (GFCF) also witnessed a remarkable acceleration during this period, indicating a robust investment climate. In the present cycle, real GFCF growth continues to demonstrate resilience, outperforming pre-Covid averages. Public capex has emerged as a primary growth driver, compensating for the corporate sector's subdued investment sentiment in the wake of previous shocks. However, with corporate profits rebounding and early indications of private capex gaining traction, the economic landscape is evolving. Despite the optimistic outlook, challenges persist. Private consumption remains relatively subdued, tracking below pre-Covid averages, underscoring the need for sustained efforts to stimulate domestic demand. Policymakers have been actively pursuing supply-side reforms to bolster the investment climate, exemplified by the uptick in real government fixed capex growth. Morgan Stanley underscores the critical role of public sector investments, particularly in infrastructure projects, to alleviate supply-side constraints and pave the way for robust private sector participation. Such long-term investments are deemed essential for sustaining the current economic momentum and fostering inclusive growth. (With inputs from PTI)

India’s economic growth resembles 2003-07 boom: Morgan Stanley Report

Indian states aims to become a $5 -trillion gross domestic product (GDP) by 2027, and to become the third largest economy in the world. Watch in for more details!

India aims to become a $5 trillion economy by 2027

India has sealed a significant trade and economic partnership with the European Free Trade Association (EFTA), comprising Switzerland, Norway, Liechtenstein, and Iceland. <o:p></o:p>

This landmark agreement, signed on Sunday, involves a binding commitment of $100 billion in investments over the next 15 years. <o:p></o:p>

Prime Minister Narendra Modi hailed the pact as a gateway to increased collaboration with EFTA nations, known for their global leadership in innovation and research.<o:p></o:p>

Investment commitment and economic impact<o:p></o:p>

Under the Trade and Economic Partnership Agreement (TEPA), EFTA has pledged to bolster foreign direct investments (FDI) in India by $100 billion over the next 15 years. <o:p></o:p>

Commerce and Industry Minister Piyush Goyal highlighted the significance of this modern and ambitious trade agreement, marking India's first Free Trade Agreement (FTA) with four developed nations. <o:p></o:p>

The pact is poised to enhance economic ties between India and the European bloc, fostering mutual growth and job creation.<o:p></o:p>

Sectoral impact and tariff concessions<o:p></o:p>

According to a report by the Economic Times (ET), the agreement entails substantial tariff concessions, benefiting various sectors such as watch making, chocolates, and machinery. <o:p></o:p>

Swiss imports, including watches and chocolates are set to enjoy duty-free imports after a phased elimination period.<o:p></o:p>

Currently, custom duties apply to 95.3 per cent of Swiss imports.

A Reuters repot cited Guy Parmelin, a Swiss economic representative, who highlighted the vast potential for trade and investment in the Indian market.

He noted that the agreement was the culmination of 21 negotiation rounds. India ranks as the fifth-largest trading partner of the EFTA grouping, following the European Union, the United States, Britain, and China.

The estimated total bilateral trade between India and the EFTA amounted to $25 billion in 2023, according to the trade ministry.

The Swiss government described the agreement as including a thorough and enforceable section addressing trade and sustainable development.<o:p></o:p>

Apart from that, the pact is expected to facilitate cheaper imports of machinery, enhancing India's industrial capabilities. <o:p></o:p>

Additionally, concessions on processed agricultural products (PAP) from India are anticipated to further stimulate trade.<o:p></o:p>

Emphasis on services and visa commitments<o:p></o:p>

Services form a crucial aspect of the agreement, with both India and EFTA extending concessions in various sub-sectors such as accounting, auditing, and legal services. <o:p></o:p>

Notably, EFTA's commitments in audio-visual services, including gaming and animation, hold significant promise for India's burgeoning service sector. <o:p></o:p>

Moreover, India has secured commitments regarding visa regulations, ensuring smoother mobility for categories such as intra-corporate transferees and contractual service suppliers.<o:p></o:p>

Industry response and export opportunities<o:p></o:p>

Industry leaders have welcomed the pact, citing its potential to boost India's export potential and create employment opportunities. <o:p></o:p>

ET cited Chandrajit Banerjee, the Director General of the Confederation of Indian Industry (CII), who highlighted the historic $100 billion investment commitment from EFTA, indicating its potential to stimulate economic growth.<o:p></o:p>

Improved market access for Indian goods in EFTA markets is expected to expand export avenues, further enhancing India's global trade footprint.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

India has sealed a significant trade and economic partnership with the European Free Trade Association (EFTA), comprising Switzerland, Norway, Liechtenstein, and Iceland.

India has sealed a significant trade and economic partnership with the European Free Trade Association (EFTA), comprising Switzerland, Norway, Liechtenstein, and Iceland. This landmark agreement, signed on Sunday, involves a binding commitment of $100 billion in investments over the next 15 years. Prime Minister Narendra Modi hailed the pact as a gateway to increased collaboration with EFTA nations, known for their global leadership in innovation and research. Investment commitment and economic impact Under the Trade and Economic Partnership Agreement (TEPA), EFTA has pledged to bolster foreign direct investments (FDI) in India by $100 billion over the next 15 years. Commerce and Industry Minister Piyush Goyal highlighted the significance of this modern and ambitious trade agreement, marking India's first Free Trade Agreement (FTA) with four developed nations. The pact is poised to enhance economic ties between India and the European bloc, fostering mutual growth and job creation. Sectoral impact and tariff concessions According to a report by the Economic Times (ET), the agreement entails substantial tariff concessions, benefiting various sectors such as watch making, chocolates, and machinery. Swiss imports, including watches and chocolates are set to enjoy duty-free imports after a phased elimination period. Currently, custom duties apply to 95.3 per cent of Swiss imports. A Reuters repot cited Guy Parmelin, a Swiss economic representative, who highlighted the vast potential for trade and investment in the Indian market. He noted that the agreement was the culmination of 21 negotiation rounds. India ranks as the fifth-largest trading partner of the EFTA grouping, following the European Union, the United States, Britain, and China. The estimated total bilateral trade between India and the EFTA amounted to $25 billion in 2023, according to the trade ministry. The Swiss government described the agreement as including a thorough and enforceable section addressing trade and sustainable development. Apart from that, the pact is expected to facilitate cheaper imports of machinery, enhancing India's industrial capabilities. Additionally, concessions on processed agricultural products (PAP) from India are anticipated to further stimulate trade. Emphasis on services and visa commitments Services form a crucial aspect of the agreement, with both India and EFTA extending concessions in various sub-sectors such as accounting, auditing, and legal services. Notably, EFTA's commitments in audio-visual services, including gaming and animation, hold significant promise for India's burgeoning service sector. Moreover, India has secured commitments regarding visa regulations, ensuring smoother mobility for categories such as intra-corporate transferees and contractual service suppliers. Industry response and export opportunities Industry leaders have welcomed the pact, citing its potential to boost India's export potential and create employment opportunities. ET cited Chandrajit Banerjee, the Director General of the Confederation of Indian Industry (CII), who highlighted the historic $100 billion investment commitment from EFTA, indicating its potential to stimulate economic growth. Improved market access for Indian goods in EFTA markets is expected to expand export avenues, further enhancing India's global trade footprint. (With inputs from Reuters)

India secures $100 billion investment commitment in landmark trade pact with EFTA

Leading global rating agency, Moody's, has raised the bar for India's economic prowess, revising its GDP growth forecast for the fiscal year 2023-24 to an impressive 8 per cent. <o:p></o:p>

This projection is underpinned by India's strong government expenditure, robust domestic consumption, and its potential to capitalise on global trade shifts, particularly in the wake of companies diversifying away from China. <o:p></o:p>

The upgraded forecast solidifies India's position as the fastest-growing economy among major G20 nations. <o:p></o:p>

Moody's upgrades growth forecast<o:p></o:p>

Moody's outlook for India's economy manifests in the revised GDP growth forecast of 8 per cent for the fiscal year ending March 2024. <o:p></o:p>

The agency emphasises that government capital expenditure and strong domestic consumption will be vital in propelling India's economic growth. <o:p></o:p>

Furthermore, India is set to capitalise on increased global trade and investment opportunities as businesses &nbsp;shift away from China. <o:p></o:p>

Economic strength and December quarter surge<o:p></o:p>

According to a report by Mint, India's economic resilience is highlighted by the unexpected growth surge of 8.4 per cent in the December quarter, defying concerns of a slowdown. <o:p></o:p>

The National Statistical Office's revised GDP estimates indicate higher growth for the first two quarters of the fiscal year. <o:p></o:p>

Encouragingly, key indicators in manufacturing and services sectors, as indicated by the HSBC Flash India Composite Purchasing Managers’ Index (PMI), position India as one of the fastest-growing major economies. <o:p></o:p>

Inflation trends and monetary policy<o:p></o:p>

Moody's anticipates a downward trend in India's inflation rate, projecting a decline to 5.5 per cent in the fiscal year 2023-24 from the previous fiscal year's peak of 6.7 per cent. <o:p></o:p>

This expectation of disinflation is considered a crucial factor supporting monetary easing. <o:p></o:p>

Despite the Reserve Bank of India (RBI) maintaining a steady repo rate at 6.5 per cent, Moody's notes that the solid growth dynamics, coupled with inflation above the 4.0 per cent target, suggest a cautious approach towards policy easing. <o:p></o:p>

Banking sector outlook<o:p></o:p>

Beyond GDP growth, Moody's comprehensive report delves into the banking sector's outlook. <o:p></o:p>

The agency foresees a continued reduction in non-performing assets (NPAs) as the operating environment improves. <o:p></o:p>

The NPA ratio has already witnessed a decline to 3.2 per cent, indicating the banking sector's resilience. <o:p></o:p>

Moody's expects banks to maintain strong capitalisation, with the ability to raise capital easily if needed. <o:p></o:p>

The report also touches upon the profitability of banks, projecting healthy levels while acknowledging a marginal decline in Net Interest Margin due to deposit repricing. <o:p></o:p>

This holistic assessment reinforces the strength and resilience of India's banking sector, a crucial pillar supporting the overall economic outlook.<o:p></o:p>

(With inputs from PTI)<o:p></o:p>

Leading global rating agency, Moody's, has raised the bar for India's economic prowess, revising its GDP growth forecast for the fiscal year 2023-24 to an impressive 8 per cent.

Leading global rating agency, Moody's, has raised the bar for India's economic prowess, revising its GDP growth forecast for the fiscal year 2023-24 to an impressive 8 per cent. This projection is underpinned by India's strong government expenditure, robust domestic consumption, and its potential to capitalise on global trade shifts, particularly in the wake of companies diversifying away from China. The upgraded forecast solidifies India's position as the fastest-growing economy among major G20 nations. Moody's upgrades growth forecast Moody's outlook for India's economy manifests in the revised GDP growth forecast of 8 per cent for the fiscal year ending March 2024. The agency emphasises that government capital expenditure and strong domestic consumption will be vital in propelling India's economic growth. Furthermore, India is set to capitalise on increased global trade and investment opportunities as businesses shift away from China. Economic strength and December quarter surge According to a report by Mint, India's economic resilience is highlighted by the unexpected growth surge of 8.4 per cent in the December quarter, defying concerns of a slowdown. The National Statistical Office's revised GDP estimates indicate higher growth for the first two quarters of the fiscal year. Encouragingly, key indicators in manufacturing and services sectors, as indicated by the HSBC Flash India Composite Purchasing Managers’ Index (PMI), position India as one of the fastest-growing major economies. Inflation trends and monetary policy Moody's anticipates a downward trend in India's inflation rate, projecting a decline to 5.5 per cent in the fiscal year 2023-24 from the previous fiscal year's peak of 6.7 per cent. This expectation of disinflation is considered a crucial factor supporting monetary easing. Despite the Reserve Bank of India (RBI) maintaining a steady repo rate at 6.5 per cent, Moody's notes that the solid growth dynamics, coupled with inflation above the 4.0 per cent target, suggest a cautious approach towards policy easing. Banking sector outlook Beyond GDP growth, Moody's comprehensive report delves into the banking sector's outlook. The agency foresees a continued reduction in non-performing assets (NPAs) as the operating environment improves. The NPA ratio has already witnessed a decline to 3.2 per cent, indicating the banking sector's resilience. Moody's expects banks to maintain strong capitalisation, with the ability to raise capital easily if needed. The report also touches upon the profitability of banks, projecting healthy levels while acknowledging a marginal decline in Net Interest Margin due to deposit repricing. This holistic assessment reinforces the strength and resilience of India's banking sector, a crucial pillar supporting the overall economic outlook. (With inputs from PTI)

Moody's Bullish on India: GDP growth forecast skyrockets to 8 pc for FY24

India's economic trajectory is on an upward swing, with a forecasted 6.8 per cent growth in the next fiscal year, according to ratings agency Crisil. <o:p></o:p>

The nation's pursuit of becoming the world's third-largest economy by fiscal year 2031 has gained momentum, backed by domestic reforms and favourable cyclical factors. <o:p></o:p>

The projections indicate a potential shift to upper-middle-income status, marking a significant milestone in India's economic landscape.<o:p></o:p>

Growth predictions and milestones<o:p></o:p>

Crisil's India Outlook report projects India's GDP to grow by 6.8 per cent in fiscal year 2025, following a better-than-expected 7.6 per cent growth in the current fiscal year. <o:p></o:p>

Over the subsequent seven years, from 2025 to 2031, the Indian economy is poised to exceed $5 trillion and approach $7 trillion. <o:p></o:p>

This growth trajectory places India on track to become the world's third-largest economy, accompanied by a per capita income reaching $4,500 by fiscal year 2031.<o:p></o:p>

Upper-middle-income aspiration<o:p></o:p>

The anticipated rise in per capita income to $4,500 by fiscal year 2031 positions India within the upper-middle-income category, as defined by Crisil. <o:p></o:p>

Currently the fifth-largest economy globally, India's ascent toward the $6.7 trillion milestone is underpinned by robust growth expectations, driven by manufacturing, services, and strategic reforms. <o:p></o:p>

The World Bank classifies upper-middle-income economies with a Gross National Income (GNI) per capita ranging from $4,256 to $13,205. <o:p></o:p>

Economic drivers and sectoral growth<o:p></o:p>

Crisil's Chief Economist, Dharmakirti Joshi, highlighted that manufacturing and services would be add most to India's growth. <o:p></o:p>

The report noted that manufacturing is thriving, propelled by factors such as global supply-chain diversification, infrastructure investment, and green transition initiatives. <o:p></o:p>

The ratings agency foresees manufacturing and services growing at 9.1 per cent and 6.9 per cent, respectively, between fiscal years 2025 and 2031. <o:p></o:p>

Despite manufacturing growth, services are expected to remain the dominant driver of India's overall economic expansion.<o:p></o:p>

Economic landscape and global impact<o:p></o:p>

The report highlights India's position as the world's fastest-growing major economy, even as the nation eyes a growth rate slightly below the Reserve Bank of India's (RBI) projection of 7 per cent in the next fiscal year. <o:p></o:p>

With the economy soaring ahead in the December quarter, key sectors like mining, manufacturing, construction, and services are instrumental in driving India's economic expansion. <o:p></o:p>

Crisil envisions sustained growth momentum throughout the decade, fuelled by private sector investments, government infrastructure spending, ongoing reforms, and advancements in digital and physical connectivity.<o:p></o:p>

Inflation<o:p></o:p>

Crisil anticipates a dip in inflation in the upcoming fiscal year, attributed to reduced input costs, subdued domestic demand, improved agricultural production, and stable oil and commodity prices. <o:p></o:p>

India's economic trajectory is on an upward swing, with a forecasted 6.8 per cent growth in the next fiscal year, according to ratings agency Crisil. The nation's pursuit of becoming the world's third-largest economy by fiscal year 2031 has gained momentum, backed by domestic reforms and favourable cyclical factors.

India's economic trajectory is on an upward swing, with a forecasted 6.8 per cent growth in the next fiscal year, according to ratings agency Crisil. The nation's pursuit of becoming the world's third-largest economy by fiscal year 2031 has gained momentum, backed by domestic reforms and favourable cyclical factors. The projections indicate a potential shift to upper-middle-income status, marking a significant milestone in India's economic landscape. Growth predictions and milestones Crisil's India Outlook report projects India's GDP to grow by 6.8 per cent in fiscal year 2025, following a better-than-expected 7.6 per cent growth in the current fiscal year. Over the subsequent seven years, from 2025 to 2031, the Indian economy is poised to exceed $5 trillion and approach $7 trillion. This growth trajectory places India on track to become the world's third-largest economy, accompanied by a per capita income reaching $4,500 by fiscal year 2031. Upper-middle-income aspiration The anticipated rise in per capita income to $4,500 by fiscal year 2031 positions India within the upper-middle-income category, as defined by Crisil. Currently the fifth-largest economy globally, India's ascent toward the $6.7 trillion milestone is underpinned by robust growth expectations, driven by manufacturing, services, and strategic reforms. The World Bank classifies upper-middle-income economies with a Gross National Income (GNI) per capita ranging from $4,256 to $13,205. Economic drivers and sectoral growth Crisil's Chief Economist, Dharmakirti Joshi, highlighted that manufacturing and services would be add most to India's growth. The report noted that manufacturing is thriving, propelled by factors such as global supply-chain diversification, infrastructure investment, and green transition initiatives. The ratings agency foresees manufacturing and services growing at 9.1 per cent and 6.9 per cent, respectively, between fiscal years 2025 and 2031. Despite manufacturing growth, services are expected to remain the dominant driver of India's overall economic expansion. Economic landscape and global impact The report highlights India's position as the world's fastest-growing major economy, even as the nation eyes a growth rate slightly below the Reserve Bank of India's (RBI) projection of 7 per cent in the next fiscal year. With the economy soaring ahead in the December quarter, key sectors like mining, manufacturing, construction, and services are instrumental in driving India's economic expansion. Crisil envisions sustained growth momentum throughout the decade, fuelled by private sector investments, government infrastructure spending, ongoing reforms, and advancements in digital and physical connectivity. Inflation Crisil anticipates a dip in inflation in the upcoming fiscal year, attributed to reduced input costs, subdued domestic demand, improved agricultural production, and stable oil and commodity prices.

India's Economic Ascent: Projected to grow 6.8 pc in FY25, country eyes upper-middle-income status by 2031

The election fever has gripped political parties, even before the first votes are cast. But we take a step back and look at how the economy performs around India's elections. We break down whether good economics is good politics. This is our special segment: Poll-nomics.

Unravelling performance of Indian economy before and after polls

India's economic growth trajectory is anticipated to decelerate to 6.5 per cent in the fiscal year 2024-25, according to projections by India Ratings &amp; Research (Ind-Ra). <o:p></o:p>

The rating agency cited a slowdown in industrial sector growth and subdued consumption demand as primary factors contributing to this anticipated slowdown. <o:p></o:p>

Notably, the forecasted growth rate marks a decline from the projected expansion of 7.3 per cent in the current financial year.<o:p></o:p>

A Deccan Herald report cited Devendra Pant, the Chief Economist of India Ratings &amp; Research, who highlighted the underlying trends shaping India's economic landscape. <o:p></o:p>

He noted the importance of sustained government capital expenditure, healthy corporate performance, and favourable global commodity prices in driving economic recovery. <o:p></o:p>

Despite these positive indicators, Pant acknowledged weaknesses in consumption demand and investment patterns, indicating the need for broader-based growth.<o:p></o:p>

India Ratings &amp; Research underscored the uneven distribution of consumption demand across income brackets, with the upper 50 per cent of households driving the bulk of aggregate demand. <o:p></o:p>

The rating agency said that heightened demand among lower-income household would be necessary to sustain consumption growth.<o:p></o:p>

Addressing media representatives, India Ratings &amp; Research highlighted the significance of balanced consumption patterns for fostering inclusive economic growth.<o:p></o:p>

Sunil Kumar Sinha, Principal Economist at India Ratings &amp; Research, cautioned about the potential impact of rising wholesale price inflation on corporate profitability. <o:p></o:p>

According to the Deccan Herald report, he noted that increased input costs could erode corporate margins if not adequately passed on through higher output prices. <o:p></o:p>

Sinha highlighted the challenge faced by producers in passing on elevated input costs amid constrained consumption patterns, further exacerbating pressures on corporate profitability.<o:p></o:p>

The rating agency's projections also encompassed forecasts for key macroeconomic indicators. <o:p></o:p>

India's merchandise exports, which witnessed passive performance in the current fiscal year, are anticipated to encounter global headwinds in 2024-25. <o:p></o:p>

Additionally, the Indian rupee is forecasted to depreciate by over 3 per cent against the US dollar in the upcoming financial year. <o:p></o:p>

On the inflation front, while retail inflation is expected to ease, wholesale price inflation is projected to rise, posing challenges for businesses.<o:p></o:p>

India's economic growth trajectory is anticipated to decelerate to 6.5 per cent in the fiscal year 2024-25, according to projections by India Ratings & Research (Ind-Ra).

India's economic growth trajectory is anticipated to decelerate to 6.5 per cent in the fiscal year 2024-25, according to projections by India Ratings & Research (Ind-Ra). The rating agency cited a slowdown in industrial sector growth and subdued consumption demand as primary factors contributing to this anticipated slowdown. Notably, the forecasted growth rate marks a decline from the projected expansion of 7.3 per cent in the current financial year. A Deccan Herald report cited Devendra Pant, the Chief Economist of India Ratings & Research, who highlighted the underlying trends shaping India's economic landscape. He noted the importance of sustained government capital expenditure, healthy corporate performance, and favourable global commodity prices in driving economic recovery. Despite these positive indicators, Pant acknowledged weaknesses in consumption demand and investment patterns, indicating the need for broader-based growth. India Ratings & Research underscored the uneven distribution of consumption demand across income brackets, with the upper 50 per cent of households driving the bulk of aggregate demand. The rating agency said that heightened demand among lower-income household would be necessary to sustain consumption growth. Addressing media representatives, India Ratings & Research highlighted the significance of balanced consumption patterns for fostering inclusive economic growth. Sunil Kumar Sinha, Principal Economist at India Ratings & Research, cautioned about the potential impact of rising wholesale price inflation on corporate profitability. According to the Deccan Herald report, he noted that increased input costs could erode corporate margins if not adequately passed on through higher output prices. Sinha highlighted the challenge faced by producers in passing on elevated input costs amid constrained consumption patterns, further exacerbating pressures on corporate profitability. The rating agency's projections also encompassed forecasts for key macroeconomic indicators. India's merchandise exports, which witnessed passive performance in the current fiscal year, are anticipated to encounter global headwinds in 2024-25. Additionally, the Indian rupee is forecasted to depreciate by over 3 per cent against the US dollar in the upcoming financial year. On the inflation front, while retail inflation is expected to ease, wholesale price inflation is projected to rise, posing challenges for businesses.

India's economic growth forecast to slow to 6.5pc in FY25, says India ratings and research

India's economic growth story is largely consumption-driven. But how much do households spend on an average every month? A survey released on sunday answers this question. The household consumption expenditure survey has revealed a sharp rise in rural consumption.

Average monthly expenses in India rise 5-6 folds in last two decades

Investment banking firm, Jefferies, predicts that India is set to become the third-largest economy globally by 2027, overtaking both Japan and Germany. <o:p></o:p>

With India's GDP projected to reach $5 trillion in the next four years and nearly $10 trillion by 2030, the country's economic ascent is predicted to be strong.<o:p></o:p>

According to media reports, Jefferies highlighted India's economic growth trajectory, noting its transformation from the ninth-largest economy a decade ago to the fifth-largest today, with a nominal GDP of $3.4 trillion. <o:p></o:p>

Despite facing challenges from major reforms like the implementation of GST, bankruptcy laws, and demonetisation, India's GDP has continued to expand.<o:p></o:p>

A Hindustan Times report cited Chris Wood of Jefferies who highlighted the impact of fundamental structural reforms under Prime Minister Modi's leadership. <o:p></o:p>

According to him these reforms have significantly improved India's macroeconomic indicators, making the country increasingly attractive to foreign investors. <o:p></o:p>

Previously, India's lack of a compelling top-down narrative hindered foreign investment, but with recent reforms, the country's macro story is now on par with global standards.<o:p></o:p>

The investment banking company predicts India's GDP growth to outperform most large economies globally, with a projected growth rate of 6 per cent over the next five years. <o:p></o:p>

Apart from the structural reforms,&nbsp;rising growth rates&nbsp;are also driving India's ascent on the global economic stage.<o:p></o:p>

NDTV reported that Jefferies anticipates significant growth in Indian equity markets, with estimated returns of 8-10 per cent in dollar terms over the next five to seven years. <o:p></o:p>

Structural domestic flows and the potential listing of large unicorns are poised to drive the market cap past $10 trillion by 2030. <o:p></o:p>

The company also highlights the scope for increased foreign investment in India, given its relatively low country weight in global indices, presenting rewarding opportunities for equity investors.<o:p></o:p>

Investment banking firm, Jefferies, predicts that India is set to become the third-largest economy globally by 2027, overtaking both Japan and Germany. With India's GDP projected to reach $5 trillion in the next four years and nearly $10 trillion by 2030, the country's economic ascent is predicted to be strong.

Investment banking firm, Jefferies, predicts that India is set to become the third-largest economy globally by 2027, overtaking both Japan and Germany. With India's GDP projected to reach $5 trillion in the next four years and nearly $10 trillion by 2030, the country's economic ascent is predicted to be strong. According to media reports, Jefferies highlighted India's economic growth trajectory, noting its transformation from the ninth-largest economy a decade ago to the fifth-largest today, with a nominal GDP of $3.4 trillion. Despite facing challenges from major reforms like the implementation of GST, bankruptcy laws, and demonetisation, India's GDP has continued to expand. A Hindustan Times report cited Chris Wood of Jefferies who highlighted the impact of fundamental structural reforms under Prime Minister Modi's leadership. According to him these reforms have significantly improved India's macroeconomic indicators, making the country increasingly attractive to foreign investors. Previously, India's lack of a compelling top-down narrative hindered foreign investment, but with recent reforms, the country's macro story is now on par with global standards. The investment banking company predicts India's GDP growth to outperform most large economies globally, with a projected growth rate of 6 per cent over the next five years. Apart from the structural reforms, rising growth rates are also driving India's ascent on the global economic stage. NDTV reported that Jefferies anticipates significant growth in Indian equity markets, with estimated returns of 8-10 per cent in dollar terms over the next five to seven years. Structural domestic flows and the potential listing of large unicorns are poised to drive the market cap past $10 trillion by 2030. The company also highlights the scope for increased foreign investment in India, given its relatively low country weight in global indices, presenting rewarding opportunities for equity investors.

India poised to surpass Japan and Germany, become third-largest economy by 2027: Jefferies

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

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

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

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

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

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

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

Budget 2024 Preview: Nirmala Sitharaman set to unveil economic roadmap

The confederation of Indian industry urges a 20% increase in infrastructure spending. This, coupled with a call for extended manufacturing incentives and import duty adjustments, sets the tone for an economic blueprint aiming to propel growth in the face of political transition.

Industry expectations from India's budget

In a comprehensive report titled "The Indian Economy: A Review," prepared by V Anantha Nageswaran, Chief Economic Advisor to the government, and his team of economists, India takes stock of its economic journey over the past decade.

According to Nageswaran, India is confident in weathering emerging disturbances, transitioning from fragility to stability and strength.

The report emphasises India's deft management of crude oil supply and predicts a growth rate pegged at or above 7 per cent for FY24 and FY25, marking a resilient economic recovery after the Covid-era disruptions.&nbsp;

<div dir="auto">Moreover, it projects India's economy could potentially reach $7 trillion by 2030.</div>

Trends and challenges in the coming years

The report highlights three key trends India will face in the years ahead.

Firstly, the era of hyper-globalisation in global manufacturing has ended.

Secondly, India is not expected to witness de-globalisation soon, but the government plans to focus on onshoring and friend-shoring of production.

Thirdly, India will have to address challenges such as supply chain disruptions, the impact of Artificial Intelligence on services trade and employment, and the energy transition.

Government's green initiatives and infrastructure development

The report also covers rising concerns over climate change and the increasing focus on reducing carbon emissions.&nbsp;

In the report, Nageswaran commends India's skilful navigation of the trade-off between economic growth and energy transition.

He applauds the government's progress in building infrastructure at an unprecedented rate, noting a significant increase in public sector capital investment from 5.6 lakh crore rupees in FY15 to 18.6 lakh crore rupees in FY24.

The report details advancements in highways, freight corridors, airports, metro rail networks, and trans-sea links, showcasing tangible and transformative growth in physical and digital infrastructure.

Financial sector's strength and key reforms post 2014&nbsp;

India's financial sector, with a stronger balance sheet, active lending, and robust non-food credit growth is also in a healthy position.

The report points out that 51 crore Jan Dhan Yojana bank accounts, holding over 2.1 lakh crore rupees in deposits, indicate good financial health among Indian households.

It calls India's journey in the last 10 years as the 'decade of transformative growth' in the last decade, with key reforms such as the Goods and Services Tax and the Insolvency and Bankruptcy Code, and the government's&nbsp;all-inclusive welfare approach boosting India's economic profile.

The Finance Ministry document also notes the transformative impact of India's Digital Public Infrastructure on e-commerce and middle-class consumption.&nbsp;

The report, in short, argues that India's 'transformative growth' has helped its economy remain a bright spot in an otherwise gloomy global economy.&nbsp;

In a comprehensive report titled "The Indian Economy: A Review," prepared by V Anantha Nageswaran, Chief Economic Advisor to the government, and his team of economists, India takes stock of its economic journey over the past decade.

In a comprehensive report titled "The Indian Economy: A Review," prepared by V Anantha Nageswaran, Chief Economic Advisor to the government, and his team of economists, India takes stock of its economic journey over the past decade. According to Nageswaran, India is confident in weathering emerging disturbances, transitioning from fragility to stability and strength. The report emphasises India's deft management of crude oil supply and predicts a growth rate pegged at or above 7 per cent for FY24 and FY25, marking a resilient economic recovery after the Covid-era disruptions. Moreover, it projects India's economy could potentially reach $7 trillion by 2030. Trends and challenges in the coming years The report highlights three key trends India will face in the years ahead. Firstly, the era of hyper-globalisation in global manufacturing has ended. Secondly, India is not expected to witness de-globalisation soon, but the government plans to focus on onshoring and friend-shoring of production. Thirdly, India will have to address challenges such as supply chain disruptions, the impact of Artificial Intelligence on services trade and employment, and the energy transition. Government's green initiatives and infrastructure development The report also covers rising concerns over climate change and the increasing focus on reducing carbon emissions. In the report, Nageswaran commends India's skilful navigation of the trade-off between economic growth and energy transition. He applauds the government's progress in building infrastructure at an unprecedented rate, noting a significant increase in public sector capital investment from 5.6 lakh crore rupees in FY15 to 18.6 lakh crore rupees in FY24. The report details advancements in highways, freight corridors, airports, metro rail networks, and trans-sea links, showcasing tangible and transformative growth in physical and digital infrastructure. Financial sector's strength and key reforms post 2014 India's financial sector, with a stronger balance sheet, active lending, and robust non-food credit growth is also in a healthy position. The report points out that 51 crore Jan Dhan Yojana bank accounts, holding over 2.1 lakh crore rupees in deposits, indicate good financial health among Indian households. It calls India's journey in the last 10 years as the 'decade of transformative growth' in the last decade, with key reforms such as the Goods and Services Tax and the Insolvency and Bankruptcy Code, and the government's all-inclusive welfare approach boosting India's economic profile. The Finance Ministry document also notes the transformative impact of India's Digital Public Infrastructure on e-commerce and middle-class consumption. The report, in short, argues that India's 'transformative growth' has helped its economy remain a bright spot in an otherwise gloomy global economy.

India to be a $7 trillion economy by 2030? Here's what the Finance Ministry report says 

Chinese state media praises India's economic growth, foreign policy under PM Modi. Watch the video to know more.

China media's rare praise for India; praises India's growth, foreign policies

The startup ecosystem has been a success story of India. The vibrant ecosystem supports millions of jobs, and plays a big role in India's growth story. So, what do startups expect from the upcoming budget? We find out in this report.

Budget 2024: Start-up keep an eye on budget | Look at the start-up wishlist

Reserve Bank Of India Governor Shaktikanta Das has expressed confidence in India's economic trajectory. Highlighting a recovery in the banking sector and international trust in India's stability, das emphasised the opportune moment for businesses to invest in the indian ecosystem.

India's economic revival in focus as rbi governor signals growth

From hosting leaders of 20 of the world's leading economies at the G20 summit in New Delhi... to becoming the first nation ever to land a craft on the moon's south pole, from a landmark rescue operation cutting through thick rock... to a new parliament building reflecting core democratic foundations, India scaled new highs in 2023. Here's taking you through some of India's biggest news moments of the year gone by.

2023: India emerges as a powerhouse |  Inside South Asia

The International Monetary Fund (IMF) has lauded India's stellar economic performance, projecting the nation to contribute more than 16 per cent to global growth, thanks to robust growth fuelled by key reforms in digitisation and infrastructure. <o:p></o:p>

Nada Choueiri, the Mission of India at IMF, highlighted India's progress in an exclusive interview with PTI. She emphasised that India stands out among its peer countries as one of the fastest-growing large emerging markets, stating, "It's one of the fastest-growing large emerging markets and it's contributing, in our current projections, more than 16 per cent of global growth this year."<o:p></o:p>

The IMF's annual Article IV consultation with India, released on Monday, affirms the country's trajectory as one of the fastest-growing major economies globally. Despite facing global headwinds, including a slowdown in a fragmented world, India's prudent macroeconomic policies continue to drive its economic momentum.<o:p></o:p>

Choueiri underscored the government's commitment to infrastructure development, citing it as a crucial foundation for sustained growth. She noted India's sizable, young, and growing population, emphasising the potential for even stronger growth if harnessed through strategic structural reforms.<o:p></o:p>

Digitalisation stands out as a flagship reform, building a strong platform for increased productivity and future growth. The IMF's annual report recommends focusing on policy priorities such as replenishing fiscal buffers, ensuring price stability, maintaining financial stability, and fostering inclusive growth through comprehensive structural reforms while preserving debt sustainability.<o:p></o:p>

India's rebound from the pandemic has positioned it as a vital driver of global growth. Headline inflation, after a surge in FY2022-23, has moderated, and employment has surpassed pre-pandemic levels. The informal sector dominates, but formalisation is progressing, reflecting a resilient financial sector largely unaffected by global financial stress.<o:p></o:p>

The report also highlights India's hosting of the G20 presidency in 2023, showcasing the nation's role in advancing multilateral policy priorities on the global stage. According to the report, "Globally, India's 2023 G20 presidency has demonstrated the country's important role in advancing multilateral policy priorities."<o:p></o:p>

As the country prepares for general elections in April 2024, the IMF report notes that India has the potential for higher growth with additional labour and human capital, provided comprehensive reforms are implemented.<o:p></o:p>

Choueiri stressed the importance of political stability for investment and growth, citing research that underscores the need for a transparent and stable policy environment. The government's efforts to encourage the business environment, including the single national window, have been acknowledged, but there is still work to be done to streamline bureaucracy in some states. S<o:p></o:p>

he remarked, "It's a glass half full, they're still important procedures that are needed to simplify further. But there are important steps that were taken. For example, the single national window, the one-stop shop for companies is a very important one. But still, in many states, there's a lot of bureaucracy that needs to be tackled and streamlined and a lot of red tape. So this is also a work in progress that needs to be continued."<o:p></o:p>

The IMF advocates for labour reform in India, pointing out the abundance of untapped labour potential that needs concerted efforts in education, skilling, and increasing female labour force participation. Choueiri expressed the view, "India has in abundance labour. And Labour is not used to its potential in India. And so, in our view, there has to be a very concerted effort to make sure that the advantages and demographics in India are played up to the maximum.”<o:p></o:p>

Addressing risks, Choueiri mentioned the tricky external environment and the potential medium-term risks from climate change. She emphasized the need for proper management of these risks to ensure India's continued success. She cautioned that India was performing well and had tremendous potential, adding that several important policies needed to be addressed to harness that potential.<o:p></o:p>

(With inputs from PTI)<o:p></o:p>

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

The International Monetary Fund (IMF) has lauded India's stellar economic performance, projecting the nation to contribute more than 16 per cent to global growth, thanks to robust growth fuelled by key reforms in digitisation and infrastructure.

The International Monetary Fund (IMF) has lauded India's stellar economic performance, projecting the nation to contribute more than 16 per cent to global growth, thanks to robust growth fuelled by key reforms in digitisation and infrastructure. Nada Choueiri, the Mission of India at IMF, highlighted India's progress in an exclusive interview with PTI. She emphasised that India stands out among its peer countries as one of the fastest-growing large emerging markets, stating, "It's one of the fastest-growing large emerging markets and it's contributing, in our current projections, more than 16 per cent of global growth this year." The IMF's annual Article IV consultation with India, released on Monday, affirms the country's trajectory as one of the fastest-growing major economies globally. Despite facing global headwinds, including a slowdown in a fragmented world, India's prudent macroeconomic policies continue to drive its economic momentum. Choueiri underscored the government's commitment to infrastructure development, citing it as a crucial foundation for sustained growth. She noted India's sizable, young, and growing population, emphasising the potential for even stronger growth if harnessed through strategic structural reforms. Digitalisation stands out as a flagship reform, building a strong platform for increased productivity and future growth. The IMF's annual report recommends focusing on policy priorities such as replenishing fiscal buffers, ensuring price stability, maintaining financial stability, and fostering inclusive growth through comprehensive structural reforms while preserving debt sustainability. India's rebound from the pandemic has positioned it as a vital driver of global growth. Headline inflation, after a surge in FY2022-23, has moderated, and employment has surpassed pre-pandemic levels. The informal sector dominates, but formalisation is progressing, reflecting a resilient financial sector largely unaffected by global financial stress. The report also highlights India's hosting of the G20 presidency in 2023, showcasing the nation's role in advancing multilateral policy priorities on the global stage. According to the report, "Globally, India's 2023 G20 presidency has demonstrated the country's important role in advancing multilateral policy priorities." As the country prepares for general elections in April 2024, the IMF report notes that India has the potential for higher growth with additional labour and human capital, provided comprehensive reforms are implemented. Choueiri stressed the importance of political stability for investment and growth, citing research that underscores the need for a transparent and stable policy environment. The government's efforts to encourage the business environment, including the single national window, have been acknowledged, but there is still work to be done to streamline bureaucracy in some states. S he remarked, "It's a glass half full, they're still important procedures that are needed to simplify further. But there are important steps that were taken. For example, the single national window, the one-stop shop for companies is a very important one. But still, in many states, there's a lot of bureaucracy that needs to be tackled and streamlined and a lot of red tape. So this is also a work in progress that needs to be continued." The IMF advocates for labour reform in India, pointing out the abundance of untapped labour potential that needs concerted efforts in education, skilling, and increasing female labour force participation. Choueiri expressed the view, "India has in abundance labour. And Labour is not used to its potential in India. And so, in our view, there has to be a very concerted effort to make sure that the advantages and demographics in India are played up to the maximum.” Addressing risks, Choueiri mentioned the tricky external environment and the potential medium-term risks from climate change. She emphasized the need for proper management of these risks to ensure India's continued success. She cautioned that India was performing well and had tremendous potential, adding that several important policies needed to be addressed to harness that potential. (With inputs from PTI) WATCH WION LIVE HERE

India contributes over 16% to global growth, IMF report reveals strong economic performance

India has pledged $141.63 billion to extend its free food grains program for the next five years. This initiative, announced by Prime Minister Narendra Modi ahead of upcoming elections, aims to secure food and nutrition for 813.5 million people.

India commits $141.63 bn to extend free food programme

Social media in India was abuzz with unconfirmed reports that&nbsp;India’s gross domestic product (GDP) breached the $4 trillion mark in nominal terms. If it is true, then it will make New Delhi the fifth-largest economy globally.

A purported screenshot of a live GDP tracker of all economies based on the International Monetary Fund (IMF) data was shared on social media by several ruling Bharatiya Janata Party (BJP) members on Sunday (Nov 19), indicating that India achieved the historic feat.

An official confirmation from the IMF or the Government of India is awaited.

Sharing the screen grab, Union Minister of State Arjun Ram Meghwal said that it was a significant achievement in India’s global presence.

Once plagued by food shortage and balance of exchange crisis, India has registered a tremendous growth in the past few decades and positioned itself as one of the fastest emerging economies.

<h2>India's road to development&nbsp;</h2>

It took Indian economy nearly 60 years from Independence (1990s) to reach the $ 1 trillion mark and added the next trillion in just seven years. In 2014, India’s GDP crossed the $2-trillion mark.

Now, India is working towards achieving a $5 trillion dollar economy by 2025 and has prepared a roadmap for it.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
India achieves a historic milestone crossing $4 Trillion in GDP, marking a significant moment in our global presence. 
 
The transformative leadership of PM <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@narendramodi</a> ji has propelled <a href="https://twitter.com/hashtag/NewIndia?src=hash&amp;ref_src=twsrc%5Etfw">#NewIndia</a> to unprecedented heights. <a href="https://t.co/hQMI1LV0Ml">pic.twitter.com/hQMI1LV0Ml</a>
— Arjun Ram Meghwal (@arjunrammeghwal) <a href="https://twitter.com/arjunrammeghwal/status/1726170529315623090?ref_src=twsrc%5Etfw">November 19, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

It has several ongoing initiatives across sectors focused on growth. In agriculture, the government is aiming to reorient policy focus from being production-centric to becoming income-centric.

The emphasis on income provides a broader scope towards achieving the needed expansion of the sector.

<h2>India aiming to achieve $7 trillion economy by 2030</h2>

But India’s chief economic advisor Anantha Nageswaran believes that India will be a $7-trillion economy in the next seven years if the present growth trajectory is maintained.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/india-sends-2nd-batch-of-aid-for-palestinians-caught-in-crossfire-amid-israel-hamas-war-660400">India sends 2nd batch of aid for Palestinians caught in crossfire amid Israel-Hamas war</a>

“We are the fifth largest&nbsp;economy&nbsp;on course to becoming the third largest economy in a few years. In fact, I will say 7-in-7 is the buzz slogan, that is $7-trillion economy in seven years. It is possible if&nbsp;India&nbsp;maintains its present growth trajectory, and in that journey startup entrepreneurs are going to play an important role,” he said on Sunday.

Also read |&nbsp;<a href="https://www.wionews.com/world/g20-raised-indias-profile-as-voice-of-global-south-imec-has-potential-finnish-envoy-to-wion-660098">G20 raised India's profile as voice of Global&nbsp;South, IMEC has potential: Finnish&nbsp;envoy&nbsp;to&nbsp;WION</a>

His remarks came during a leadership talk at the Huddle Global 2023 of Kerala Startup Mission (KSUM) in Thiruvananthapuram.

According to recent&nbsp;RBI&nbsp;estimates, the Indian economy is expected to grow 6.5 per cent this financial year, lower than 7.2 per cent recorded in 2022-23. The International Monetary Fund (IMF) has projected growth of 6.3 per cent every year till 2028.

Social media in India was abuzz with unconfirmed reports that India’s gross domestic product (GDP) breached the $4 trillion mark in nominal terms. If it is true, then it will make New Delhi the fifth-largest economy globally.

Social media in India was abuzz with unconfirmed reports that India’s gross domestic product (GDP) breached the $4 trillion mark in nominal terms. If it is true, then it will make New Delhi the fifth-largest economy globally. A purported screenshot of a live GDP tracker of all economies based on the International Monetary Fund (IMF) data was shared on social media by several ruling Bharatiya Janata Party (BJP) members on Sunday (Nov 19), indicating that India achieved the historic feat. An official confirmation from the IMF or the Government of India is awaited. Sharing the screen grab, Union Minister of State Arjun Ram Meghwal said that it was a significant achievement in India’s global presence. Once plagued by food shortage and balance of exchange crisis, India has registered a tremendous growth in the past few decades and positioned itself as one of the fastest emerging economies. India's road to development It took Indian economy nearly 60 years from Independence (1990s) to reach the $ 1 trillion mark and added the next trillion in just seven years. In 2014, India’s GDP crossed the $2-trillion mark. Now, India is working towards achieving a $5 trillion dollar economy by 2025 and has prepared a roadmap for it. India achieves a historic milestone crossing $4 Trillion in GDP, marking a significant moment in our global presence. The transformative leadership of PM @narendramodi ji has propelled #NewIndia to unprecedented heights. pic.twitter.com/hQMI1LV0Ml — Arjun Ram Meghwal (@arjunrammeghwal) November 19, 2023 × It has several ongoing initiatives across sectors focused on growth. In agriculture, the government is aiming to reorient policy focus from being production-centric to becoming income-centric. The emphasis on income provides a broader scope towards achieving the needed expansion of the sector. India aiming to achieve $7 trillion economy by 2030 But India’s chief economic advisor Anantha Nageswaran believes that India will be a $7-trillion economy in the next seven years if the present growth trajectory is maintained. Also read | India sends 2nd batch of aid for Palestinians caught in crossfire amid Israel-Hamas war “We are the fifth largest economy on course to becoming the third largest economy in a few years. In fact, I will say 7-in-7 is the buzz slogan, that is $7-trillion economy in seven years. It is possible if India maintains its present growth trajectory, and in that journey startup entrepreneurs are going to play an important role,” he said on Sunday. Also read | G20 raised India's profile as voice of Global South, IMEC has potential: Finnish envoy to WION His remarks came during a leadership talk at the Huddle Global 2023 of Kerala Startup Mission (KSUM) in Thiruvananthapuram. According to recent RBI estimates, the Indian economy is expected to grow 6.5 per cent this financial year, lower than 7.2 per cent recorded in 2022-23. The International Monetary Fund (IMF) has projected growth of 6.3 per cent every year till 2028.

Has India become a $4-trillion economy? Social media abuzz with rumours

Indian officials are contemplating reallocating as much as 1 trillion rupees ($12 billion) from ministry budgets to curb food and fuel prices without compromising the government deficit objective. That is based on a Bloomberg report quoting sources.

India contemplating reallocating $12 billion to curb food and fuel prices: Report

In a big boost to India's global ambitions, India's economy will soon be among the world's top three. That's the projection by Indian bank SBI in its research report. According to SBI's latest ecowrap, India is likely to be the world's third largest economy by 2027-28. The report credits economic reforms since 2014 for India achieving the target by 2027-28.

India to be third largest economy by 2027-28: Report | World Business Watch

The International exposition-cum-Convention Centre (IECC) complex at Pragati Maidan in Delhi was officially opened by Prime Minister Narendra Modi on Wednesday evening where he talked about India's economy and how he is confident of winning the General Elections in 2024.

'This is Modi's guarantee,' says PM Modi on elevating India's economy | World News | WION

Today is the 32nd anniversary of the historic 1991 budget, which changed india's economy forever. We take a look at how many economic indicators have changed over the last 3 decades.

1991 vs 2023: 32 years of economic liberalisation | World Business Watch

India continues to build its digital infrastructure; the Indian Parliament is all set to consider a regulatory framework to address concerns around the safety of this. A session of parliament will consider the prospective 'Digital India Act.'

Indian parliament to discuss 'Digital India Act'

India's fight against poverty: According to a report by a government body, over 135 million Indians came out of multi-dimensional poverty between 2016 and 2021.

Big drop in India's poverty figures; improvement in health, education & standard of living

When the world talks of India's success story, UPI, India's very own digital payments platform, takes the position of pride. It has not only made making transactions quick and efficient but is also an example of India's growing fintech prowess. Even as UPI continues with its spectacular journey in India, where it hit a record 9 billion transactions in May, the digital payment platform is spreading its wings abroad.

India's digital payment success story

India is projected to surpass the United States as the world's third-largest economy by 2075. India's economic rise is driven by its booming population and advancements in technology, which position the country to challenge the global economic status quo.

India's growing global influence: on the path to become second-largest economy

As monsoon covers 90% of India, summer-sown crops pick up the pace. The nation's farms and recharge reservoirs and aquifers. It also brings relief from the worst of the summer. In a typical year, rain usually hits lush Kerala state on India's Southwest coast from around the 1st of June and moves northwards to cover the entire country.

Tracking India's monsoon: Rains set to cover whole country by weekend

india-economy

India Economy, News on India Economy, stories on India Economy, articles on India Economy, India Economy stories at Wion, India Economy news, India Economy latest news

india economy