The Organisation for Economic Co-operation and Development (OECD) raised its world economic growth forecast for 2024, on Monday (Feb 5) and lifted the outlook for India’s economy as well. However, the Paris-based organisation warned that the conflict in the Middle East posed a threat to global growth as disruptions in Red Sea shipping may increase consumer prices.

<h2>About India’s growth forecast</h2>

According to the OECD’s latest growth forecast, the Indian economy is expected to grow 6.2 per cent which is up from 6.1 per cent predicted in its November report. Meanwhile, the prediction for 2025 in both reports remained unchanged at 6.5 per cent.&nbsp;

The OECD’s latest report noted that “clear signs of strong near-term momentum continue in India, relative weakness in Europe, and mild near-term growth in most other major economies.”&nbsp;

ALSO READ |<a href="https://www.wionews.com/india-news/cancel-culture-to-370-seats-key-takeaways-from-pm-modis-parliament-speech-687202">&nbsp;'Cancel culture to 370+ seats': Key takeaways from PM Modi's Parliament speech</a>

India is also expected to expand steadily over the next two years, according to the OECD, due to “strong investment growth” and GDP rising by more than six per cent per annum.&nbsp;

The report also noted that in countries like Brazil, India, Indonesia, Mexico and South Africa, the inflation is expected to ease and converge on or towards the central bank targets by the end of next year.&nbsp;

<h2>What about global growth?</h2>

According to the Paris-based organisation, the global economy is on course to hold up better this year than expected with world economic growth expected at 2.9 per cent, which is up from 2.7 per cent predicted in its previous forecast.&nbsp;

Global growth “proved unexpectedly resilient” in 2023, reaching 3.1 per cent, according to the report and the inflation declined faster than anticipated.&nbsp;

“The global economy has shown real resilience amid the high inflation of the past two years and the necessary monetary policy tightening. Growth has held up, and we expect inflation to be back to central bank targets by the end of 2025 in most G20 economies,” said OECD Secretary-General Mathias Cormann, in a statement.&nbsp;

The global growth is also said to have been expanded as the United States economy is expected to grow 2.1 per cent in 2024 which is up from 1.5 per cent predicted in OECD’s November forecast as lower inflation boosted wage growth and is expected to trigger interest rate cuts, said the organisation.&nbsp;

The growth forecast for the US economy for 2025 remained unchanged at 1.7 per cent.&nbsp;

<h2>The Middle East factor</h2>

According to the OECD, the attacks on Red Sea shipping lanes by Yemen’s Houthi rebels and the ongoing war between Israel and the Palestinian militant group Hamas in Gaza could add to inflationary pressures.&nbsp;

Houthis have said that they are targeting Israel-linked ships in solidarity with the Palestinians. Meanwhile, the US and the United Kingdom have responded with strikes against the Houthis.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/federal-reserve-chair-powell-signals-prudence-in-considering-rate-cuts-amid-strong-economy-687124">Federal Reserve Chair Powell signals prudence in considering rate cuts amid strong economy</a>

“High geopolitical tensions are a significant near-term risk to activity and inflation, particularly if the conflict in the Middle East were to disrupt energy markets,” said the OECD report.&nbsp;

Similarly, OECD chief economist Clare Lombardelli, noted that the attacks on Red Sea shipping are already affecting the trade. “Freight rates have more than doubled since the end of last year,” Lombardelli said at a news conference.&nbsp;

The OECD warned that the increase in shipping costs, if persistent, could add 0.4 percentage points to consumer prices inflation after about a year.&nbsp;

(With inputs from agencies) 
&nbsp;

The Organisation for Economic Co-operation and Development (OECD) raised its world economic growth forecast for 2024, on Monday (Feb 5) and lifted the outlook for India’s economy as well.

The Organisation for Economic Co-operation and Development (OECD) raised its world economic growth forecast for 2024, on Monday (Feb 5) and lifted the outlook for India’s economy as well. However, the Paris-based organisation warned that the conflict in the Middle East posed a threat to global growth as disruptions in Red Sea shipping may increase consumer prices. About India’s growth forecast According to the OECD’s latest growth forecast, the Indian economy is expected to grow 6.2 per cent which is up from 6.1 per cent predicted in its November report. Meanwhile, the prediction for 2025 in both reports remained unchanged at 6.5 per cent. The OECD’s latest report noted that “clear signs of strong near-term momentum continue in India, relative weakness in Europe, and mild near-term growth in most other major economies.” ALSO READ | 'Cancel culture to 370+ seats': Key takeaways from PM Modi's Parliament speech India is also expected to expand steadily over the next two years, according to the OECD, due to “strong investment growth” and GDP rising by more than six per cent per annum. The report also noted that in countries like Brazil, India, Indonesia, Mexico and South Africa, the inflation is expected to ease and converge on or towards the central bank targets by the end of next year. What about global growth? According to the Paris-based organisation, the global economy is on course to hold up better this year than expected with world economic growth expected at 2.9 per cent, which is up from 2.7 per cent predicted in its previous forecast. Global growth “proved unexpectedly resilient” in 2023, reaching 3.1 per cent, according to the report and the inflation declined faster than anticipated. “The global economy has shown real resilience amid the high inflation of the past two years and the necessary monetary policy tightening. Growth has held up, and we expect inflation to be back to central bank targets by the end of 2025 in most G20 economies,” said OECD Secretary-General Mathias Cormann, in a statement. The global growth is also said to have been expanded as the United States economy is expected to grow 2.1 per cent in 2024 which is up from 1.5 per cent predicted in OECD’s November forecast as lower inflation boosted wage growth and is expected to trigger interest rate cuts, said the organisation. The growth forecast for the US economy for 2025 remained unchanged at 1.7 per cent. The Middle East factor According to the OECD, the attacks on Red Sea shipping lanes by Yemen’s Houthi rebels and the ongoing war between Israel and the Palestinian militant group Hamas in Gaza could add to inflationary pressures. Houthis have said that they are targeting Israel-linked ships in solidarity with the Palestinians. Meanwhile, the US and the United Kingdom have responded with strikes against the Houthis. ALSO READ | Federal Reserve Chair Powell signals prudence in considering rate cuts amid strong economy “High geopolitical tensions are a significant near-term risk to activity and inflation, particularly if the conflict in the Middle East were to disrupt energy markets,” said the OECD report. Similarly, OECD chief economist Clare Lombardelli, noted that the attacks on Red Sea shipping are already affecting the trade. “Freight rates have more than doubled since the end of last year,” Lombardelli said at a news conference. The OECD warned that the increase in shipping costs, if persistent, could add 0.4 percentage points to consumer prices inflation after about a year. (With inputs from agencies)

OECD raises India and global growth outlook for 2024, warns of Middle East crisis 'risk'

Budget 2024: India's Finance Minister Nirmala Sitharaman on Thursday (Feb 1) presented India's interim Budget in Parliament of India. All eyes were on the budget as Prime Minister Narendra Modi-led Bharatiya Janata Party (BJP) is due to face Lok Sabha elections (general elections) in a matter of months.

Although an interim budget presented just months before elections hold largely a symbolic value, it does give hint to what direction government wants to take especially when public gaze is on it.

As she presented Budget 2024, Finance Minister Sitharaman projected a bright picture of Foreign Direct Investment (FDI) in India,

In her speech, she sought to underline that for the government, FDI stood for "First Develop India".

She said that the government of India was in the process of negotiating bilateral investment treaties with foreign partners across the world.

She described the period between years 2014 and 2023 as a 'golden era' in reference to Foreign Direct Investment (FDI) in India.

The finance minister said that in these nine years, Indian economy saw FDI inflow of about 596 billion. Sitharaman added that this was twice the inflow between the years 2005 and 2014.

PM Narendra Modi-led government assumed power after victory in 2014 Lok Sabha elections. The 2005-2014 period had Indian National Congress-led United Progressive Alliance (UPA) at the helm in India.

Also Read | <a href="https://www.wionews.com/india-news/india-budget-2024-for-railways-fm-sitharaman-says-3-major-economic-corridor-programmes-to-be-implemented-685834">India budget 2024: For railways, FM Sitharaman says 3 major economic corridor programmes to be implemented</a>

"The FDI inflow during 2014-23 was USD 596 billion marking a golden era. That is twice the inflow during 2005-14.  For encouraging sustained foreign investment, we are negotiating bilateral investment treaties with our foreign partners, in the spirit of ‘first develop India’," said Sitharaman during her budget speech in the parliament.

Also Read | <a href="https://www.wionews.com/india-news/indian-interim-budget-key-takeaways-from-nirmala-sitharamans-budget-speech-685817">India interim Budget 2024: Key takeaways from Nirmala Sitharaman's speech</a>

FDI is often an indictor of stability of a country's economy. More FDI, in accordance with the laws, is considered to be sign that global investors have enough faith in a particular country's economy to make huge investments anticipating good returns.

(With inputs from agencies)&nbsp;

Budget 2024: India's Finance Minister Nirmala Sitharaman on Thursday (Feb 1) presented India's interim Budget in Parliament of India. All eyes were on the budget as Prime Minister Narendra Modi-led Bharatiya Janata Party (BJP) is due to face Lok Sabha elections (general elections) in a matter of months.

Budget 2024: India's Finance Minister Nirmala Sitharaman on Thursday (Feb 1) presented India's interim Budget in Parliament of India. All eyes were on the budget as Prime Minister Narendra Modi-led Bharatiya Janata Party (BJP) is due to face Lok Sabha elections (general elections) in a matter of months. Although an interim budget presented just months before elections hold largely a symbolic value, it does give hint to what direction government wants to take especially when public gaze is on it. As she presented Budget 2024, Finance Minister Sitharaman projected a bright picture of Foreign Direct Investment (FDI) in India, In her speech, she sought to underline that for the government, FDI stood for "First Develop India". She said that the government of India was in the process of negotiating bilateral investment treaties with foreign partners across the world. She described the period between years 2014 and 2023 as a 'golden era' in reference to Foreign Direct Investment (FDI) in India. The finance minister said that in these nine years, Indian economy saw FDI inflow of about 596 billion. Sitharaman added that this was twice the inflow between the years 2005 and 2014. PM Narendra Modi-led government assumed power after victory in 2014 Lok Sabha elections. The 2005-2014 period had Indian National Congress-led United Progressive Alliance (UPA) at the helm in India. Also Read | India budget 2024: For railways, FM Sitharaman says 3 major economic corridor programmes to be implemented "The FDI inflow during 2014-23 was USD 596 billion marking a golden era. That is twice the inflow during 2005-14.  For encouraging sustained foreign investment, we are negotiating bilateral investment treaties with our foreign partners, in the spirit of ‘first develop India’," said Sitharaman during her budget speech in the parliament. Also Read | India interim Budget 2024: Key takeaways from Nirmala Sitharaman's speech FDI is often an indictor of stability of a country's economy. More FDI, in accordance with the laws, is considered to be sign that global investors have enough faith in a particular country's economy to make huge investments anticipating good returns. (With inputs from agencies)

Budget 2024: FDI inflow marked 'golden period', says Finance Minister Nirmala Sitharaman

International Monetary Fund forecasted India's growth trajectory. India's economy is likely to grow at 6.5% in the financial year. According to the IMF, India's economy will grow at a similar pace the year after.

Ahead of interim budget, IMF raises India's growth forecast to 6.5% for next financial year

India marks its 75th Republic Day on January 26 -- the day its Constitution came into effect. A 1976 amendment to the Constitution added the word 'socialist' to the preamble.&nbsp;

Although never explicitly mentioned in the Constitution prior to 1976, socialist ideals have been a part of the Directive Principles of State Policy since Independence. For instance: Article 43 of the Constitution states that the State shall secure a living wage and a decent standard of life for workers.&nbsp;

India's socialism, however, differs from the Communist variety. Under Jawaharlal Nehru, India adopted a mixed economy, wherein the 'commanding heights of the economy' remained under the government's grip, but the private sector co-existed.&nbsp;

The 1948 Industrial policy and the second five-year plan (1956-1961) firmly established India's credentials as a mixed economy. However, the blueprint for the country's post-Independent economy could be traced to a pre-Independence plan.&nbsp;

The 'Bombay Plan'

In January 1944, a group of industrialists in Bombay (now Mumbai) came together to envision an economic policy for the soon-to-be-Independent India. The economic plan, titled 'Memorandum Outlining A Plan of Economic Development for India', is now popularly known as the 'Bombay Plan'.&nbsp;

The who's who of British India's business world, namely Purshotamdas Thakurdas, JRD Tata, GD Birla, Ardeshir Dalal, Shri Ram, Kasturbhai Lalbhai, AD Shroff and John Mathai, signed the vision document, which was released in two parts between 1944 and 1945.&nbsp;

The plan sought to double the per capita income of India within fifteen years, as part of three five-year plans.&nbsp;

"A threefold increase in our total national dividend would in effect mean a per capita income of Rs 135, representing a doubling of the 1931-32 figure (Rs 65)," the document read.&nbsp;

Boosting the per capita income was closely linked to raising the standard of living to a reasonable level by focusing on food, clothing, housing, health and education.&nbsp;

The 'Bombay Plan' argued that every Indian must get 2,800 calories per day on an average; a family of five must get a minimum of 500 square feet of housing; each person must get 30 yards of clothing.&nbsp;

In addition, it aimed for better healthcare facilities in towns and villages and full literacy for those between the ages of 11 and 50.&nbsp;

The key argument of the document was that State (read government) intervention would be necessary to fuel India's post-Independent economic growth.&nbsp;

"It is inevitable that in executing a comprehensive plan of economic development, especially in a country where the beginnings of such development have yet to be laid, the State should exercise in the interests of the community a considerable measure of intervention and control," the memorandum read.

Long story short: The decument urged the State to control strategic economic sectors, protect local industries from foreign competition, and ensure equitable distribution of resources across India.&nbsp;

Impact of 'Bombay Plan'&nbsp;

A striking aspect of the 1944 document is that it spoke of everything that Independent India carried out&nbsp;in the next four decades.&nbsp;

The plan also illustrated the need for a 'mixed economy' without even mentioning the concept.

It argued that the "distinction between capitalism and socialism has lost much of its significance from a practical standpoint".&nbsp;

There is little evidence to back that Nehru accepted the 'Bombay Plan'. But given how the economy shaped up&nbsp;after 1947, the plan has achieved a sort of "mythical status"&nbsp;in India's economic history.&nbsp;

However, the 'Hindu rate of growth' and the 'license-permit raj' witnessed between 1952 and 1991&nbsp;exposed the shortcomings of State control over resources,&nbsp;

The vision document also had its set of detractors. The Communists criticised it for not addressing the questions of income inequality and land reforms.&nbsp;

Veteran Communist leader BT Ranadive dismissed the plan, stating, “Without an equitable distribution of wealth... an all-round increase in the standard of living is not possible. A plan which defers distribution or ignores it cannot be called a ‘plan’."&nbsp;

That the vision emanated from a group of capitalists raised suspicion among the Communists and democratic socialists in the Congress party. Moreover, the plan did not have the approval of the entire business class, severely limiting its acceptability.&nbsp;

But the idea of a group of competing industrialists coming together to create an economic vision for a diverse country like India continues to capture the imagination of scholars in 2024.&nbsp;

India marks its 75th Republic Day on January 26 -- the day its Constitution came into effect. A 1976 amendment to the Constitution added the word 'socialist' to the preamble.

India marks its 75th Republic Day on January 26 -- the day its Constitution came into effect. A 1976 amendment to the Constitution added the word 'socialist' to the preamble. Although never explicitly mentioned in the Constitution prior to 1976, socialist ideals have been a part of the Directive Principles of State Policy since Independence. For instance: Article 43 of the Constitution states that the State shall secure a living wage and a decent standard of life for workers. India's socialism, however, differs from the Communist variety. Under Jawaharlal Nehru, India adopted a mixed economy, wherein the 'commanding heights of the economy' remained under the government's grip, but the private sector co-existed. The 1948 Industrial policy and the second five-year plan (1956-1961) firmly established India's credentials as a mixed economy. However, the blueprint for the country's post-Independent economy could be traced to a pre-Independence plan. The 'Bombay Plan' In January 1944, a group of industrialists in Bombay (now Mumbai) came together to envision an economic policy for the soon-to-be-Independent India. The economic plan, titled 'Memorandum Outlining A Plan of Economic Development for India', is now popularly known as the 'Bombay Plan'. The who's who of British India's business world, namely Purshotamdas Thakurdas, JRD Tata, GD Birla, Ardeshir Dalal, Shri Ram, Kasturbhai Lalbhai, AD Shroff and John Mathai, signed the vision document, which was released in two parts between 1944 and 1945. The plan sought to double the per capita income of India within fifteen years, as part of three five-year plans. "A threefold increase in our total national dividend would in effect mean a per capita income of Rs 135, representing a doubling of the 1931-32 figure (Rs 65)," the document read. Boosting the per capita income was closely linked to raising the standard of living to a reasonable level by focusing on food, clothing, housing, health and education. The 'Bombay Plan' argued that every Indian must get 2,800 calories per day on an average; a family of five must get a minimum of 500 square feet of housing; each person must get 30 yards of clothing. In addition, it aimed for better healthcare facilities in towns and villages and full literacy for those between the ages of 11 and 50. The key argument of the document was that State (read government) intervention would be necessary to fuel India's post-Independent economic growth. "It is inevitable that in executing a comprehensive plan of economic development, especially in a country where the beginnings of such development have yet to be laid, the State should exercise in the interests of the community a considerable measure of intervention and control," the memorandum read. Long story short: The decument urged the State to control strategic economic sectors, protect local industries from foreign competition, and ensure equitable distribution of resources across India. Impact of 'Bombay Plan' A striking aspect of the 1944 document is that it spoke of everything that Independent India carried out in the next four decades. The plan also illustrated the need for a 'mixed economy' without even mentioning the concept. It argued that the "distinction between capitalism and socialism has lost much of its significance from a practical standpoint". There is little evidence to back that Nehru accepted the 'Bombay Plan'. But given how the economy shaped up after 1947, the plan has achieved a sort of "mythical status" in India's economic history. However, the 'Hindu rate of growth' and the 'license-permit raj' witnessed between 1952 and 1991 exposed the shortcomings of State control over resources, The vision document also had its set of detractors. The Communists criticised it for not addressing the questions of income inequality and land reforms. Veteran Communist leader BT Ranadive dismissed the plan, stating, “Without an equitable distribution of wealth... an all-round increase in the standard of living is not possible. A plan which defers distribution or ignores it cannot be called a ‘plan’." That the vision emanated from a group of capitalists raised suspicion among the Communists and democratic socialists in the Congress party. Moreover, the plan did not have the approval of the entire business class, severely limiting its acceptability. But the idea of a group of competing industrialists coming together to create an economic vision for a diverse country like India continues to capture the imagination of scholars in 2024.

Flashback Friday: Revisiting the 1944 'Bombay Plan' and its vision for India

Mercedes-Benz celebrates a remarkable milestone in India, citing a record-breaking 10% surge in sales, reaching 17,408 units in 2023. This achievement reflects a burgeoning trend in India's economic affluence, with a significant focus on luxury spending.

As the leader in the luxury car market, Mercedes-Benz has experienced unprecedented growth, surpassing its previous all-time high of 15,822 units. Notably, the German automaker achieved its best-ever H2 and Q4 sales in India, maintaining its dominance for the ninth consecutive year.

Santosh Iyer, MD &amp; CEO of Mercedes-Benz India, highlights the evolving customer profile, emphasizing a notable increase in salaried backgrounds and a significant rise in female buyers, up by 50% compared to pre-COVID times. This shift is indicative of the changing demographics and the growing aspiration among young achievers.

Mercedes-Benz sees mini-metros as future growth engines, underlining the brand's strategic vision. The luxury carmaker notes a surge in SUV body styles, constituting 55% of its portfolio, with strong products like the new GLC SUV driving increased adoption.

A remarkable revelation is the substantial contribution from Top End Vehicles (TEVs), constituting nearly 25% of sales. The average age of buyers for these high-end vehicles, such as the S-Class, is a mere 38 years, showcasing the appeal to a younger demographic.

Furthermore, Mercedes-Benz emphasizes its commitment to the electric car segment, witnessing a 3X growth in the BEV portfolio, contributing 4% to CY 2023 sales. The company plans to add three more electric models to its lineup, acknowledging the gradual adoption of EVs among Indian customers.

Mercedes-Benz India, buoyed by this success, has launched the facelifted version of the GLS SUV, showcasing continued investment with Rs 200 crore allocated for new products, production enhancement, and digitization of manufacturing processes. Despite challenges in supply and demand, the company expresses optimism, targeting double-digit growth in 2024.

This achievement stands as a testament to India's rising economic affluence, with a discernible trend toward luxury spending, exemplified by the growing preference for premium vehicles and a forward-looking embrace of electric cars.

Mercedes-Benz celebrates a remarkable milestone in India, citing a record-breaking 10% surge in sales, reaching 17,408 units in 2023. This achievement reflects a burgeoning trend in India's economic affluence, with a significant focus on luxury spending.

Mercedes-Benz celebrates a remarkable milestone in India, citing a record-breaking 10% surge in sales, reaching 17,408 units in 2023. This achievement reflects a burgeoning trend in India's economic affluence, with a significant focus on luxury spending. As the leader in the luxury car market, Mercedes-Benz has experienced unprecedented growth, surpassing its previous all-time high of 15,822 units. Notably, the German automaker achieved its best-ever H2 and Q4 sales in India, maintaining its dominance for the ninth consecutive year. Santosh Iyer, MD & CEO of Mercedes-Benz India, highlights the evolving customer profile, emphasizing a notable increase in salaried backgrounds and a significant rise in female buyers, up by 50% compared to pre-COVID times. This shift is indicative of the changing demographics and the growing aspiration among young achievers. Mercedes-Benz sees mini-metros as future growth engines, underlining the brand's strategic vision. The luxury carmaker notes a surge in SUV body styles, constituting 55% of its portfolio, with strong products like the new GLC SUV driving increased adoption. A remarkable revelation is the substantial contribution from Top End Vehicles (TEVs), constituting nearly 25% of sales. The average age of buyers for these high-end vehicles, such as the S-Class, is a mere 38 years, showcasing the appeal to a younger demographic. Furthermore, Mercedes-Benz emphasizes its commitment to the electric car segment, witnessing a 3X growth in the BEV portfolio, contributing 4% to CY 2023 sales. The company plans to add three more electric models to its lineup, acknowledging the gradual adoption of EVs among Indian customers. Mercedes-Benz India, buoyed by this success, has launched the facelifted version of the GLS SUV, showcasing continued investment with Rs 200 crore allocated for new products, production enhancement, and digitization of manufacturing processes. Despite challenges in supply and demand, the company expresses optimism, targeting double-digit growth in 2024. This achievement stands as a testament to India's rising economic affluence, with a discernible trend toward luxury spending, exemplified by the growing preference for premium vehicles and a forward-looking embrace of electric cars.

What Mercedes-Benz India's latest results say about the economy

India's bid to host the 2036 Olympics marks a significant shift in its sports landscape. The country, with its large population and booming economy, aims to showcase its global prowess through this endeavor. Prime Minister Narendra Modi's commitment to leaving "no stone unturned" reflects a national aspiration for a prominent role in the international sports arena.

The recent successes of Indian athletes at the Tokyo Olympics, Birmingham Commonwealth Games, and Asian Games in Hangzhou have boosted confidence in India's ability to compete at the highest level. The government, under Modi's leadership, has implemented strategic initiatives like the "Khelo India" program and the "Target Olympic Podium Scheme" to foster talent and improve sports infrastructure, signaling a comprehensive approach to sports development.

However, challenges persist, as highlighted by the setbacks during the 2010 Commonwealth Games in Delhi. Infrastructure deficiencies and organizational issues raised doubts about India's readiness to host major sporting events. The choice of Ahmedabad as a potential host city for the 2036 Olympics has raised concerns about its capacity and preparedness.

While Ahmedabad has ambitious plans and has broken ground on facilities, questions about the city's ability to accommodate the expected influx of visitors and sustain the upgraded infrastructure post-Olympics remain. The need for substantial growth in hotel capacity and long-term planning for facility utilization poses logistical challenges.

India's dominance in cricket, often viewed as a hurdle for other sports, could be mitigated by the inclusion of cricket in the 2028 Los Angeles Olympics, offering a chance for the sport to share the spotlight. This aligns with Modi's vision of using sports as a tool for national integration and showcasing India's capabilities on a global stage.

In conclusion, India's bid to host the 2036 Olympics signifies a bold step towards establishing itself as a sports powerhouse. While challenges exist, the government's commitment to sports development and the nation's recent sporting achievements provide a strong foundation. Hosting the Olympics could potentially elevate India's global standing, attract investments, and foster a culture of sports beyond cricket.

India's bid to host the 2036 Olympics marks a significant shift in its sports landscape. The country, with its large population and booming economy, aims to showcase its global prowess through this endeavor.

India's bid to host the 2036 Olympics marks a significant shift in its sports landscape. The country, with its large population and booming economy, aims to showcase its global prowess through this endeavor. Prime Minister Narendra Modi's commitment to leaving "no stone unturned" reflects a national aspiration for a prominent role in the international sports arena. The recent successes of Indian athletes at the Tokyo Olympics, Birmingham Commonwealth Games, and Asian Games in Hangzhou have boosted confidence in India's ability to compete at the highest level. The government, under Modi's leadership, has implemented strategic initiatives like the "Khelo India" program and the "Target Olympic Podium Scheme" to foster talent and improve sports infrastructure, signaling a comprehensive approach to sports development. However, challenges persist, as highlighted by the setbacks during the 2010 Commonwealth Games in Delhi. Infrastructure deficiencies and organizational issues raised doubts about India's readiness to host major sporting events. The choice of Ahmedabad as a potential host city for the 2036 Olympics has raised concerns about its capacity and preparedness. While Ahmedabad has ambitious plans and has broken ground on facilities, questions about the city's ability to accommodate the expected influx of visitors and sustain the upgraded infrastructure post-Olympics remain. The need for substantial growth in hotel capacity and long-term planning for facility utilization poses logistical challenges. India's dominance in cricket, often viewed as a hurdle for other sports, could be mitigated by the inclusion of cricket in the 2028 Los Angeles Olympics, offering a chance for the sport to share the spotlight. This aligns with Modi's vision of using sports as a tool for national integration and showcasing India's capabilities on a global stage. In conclusion, India's bid to host the 2036 Olympics signifies a bold step towards establishing itself as a sports powerhouse. While challenges exist, the government's commitment to sports development and the nation's recent sporting achievements provide a strong foundation. Hosting the Olympics could potentially elevate India's global standing, attract investments, and foster a culture of sports beyond cricket.

What India's bid for the 2036 Olympics means for its economy

US Secretary of State Antony Blinken on Wednesday described India as an “extraordinary success story” and said that the policies and programs implemented by Prime Minister Narendra Modi have proven highly advantageous for the people of India.

US State Secretary Blinken Hails Modi's India at World Economic Forum

India is setting its sights on attracting a whopping $100 billion in annual foreign direct investment (FDI) in the coming years, according to Information Technology Minister Ashwini Vaishnaw.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

In an interview at the World Economic Forum in Davos, Vaishnaw outlined a comprehensive growth strategy, foreseeing a consistent growth rate of 6-8 per cent over the next decade. <o:p></o:p>

The strategy revolves around four major engines: investment in physical and digital infrastructure, uplifting the bottom pyramid of the population, boosting manufacturing, and simplifying business processes to enhance the ease of doing business. <o:p></o:p>

Vaishnaw highlighted the key components of India's growth strategy, emphasising the significance of investment in infrastructure, both physical and digital.<o:p></o:p>

"We see 6-8 per cent consistent growth rate over the next full decade, and this is based on a very clearly thought-out strategy," he told Reuters. <o:p></o:p>

Foreign direct investment is a pivotal aspect of this plan, and Vaishnaw expressed optimism, asserting that India is now perceived as the "most important investment destination" by global investors. <o:p></o:p>

Despite previous critiques of Modi's protectionist policies, foreign investors, including major players like Apple, Samsung, Kia, and Airbus, have made substantial investments in India.<o:p></o:p>

India has been a magnet for foreign investment since Prime Minister Narendra Modi assumed office in 2014. Despite occasional criticism of protectionist policies, the country recorded FDI inflows of $33 billion in the first half of the current financial year and $71 billion in the 2022-23 financial year. <o:p></o:p>

The ambitious target of $100 billion in annual FDI is aimed at sustaining India's economic growth, which is projected to be the highest among major global economies at 7.3 per cent for the current financial year. <o:p></o:p>

This move aligns with Prime Minister Modi's efforts to attract investors ahead of the upcoming elections, addressing crucial issues such as unemployment among the youth.<o:p></o:p>

Vaishnaw drew a parallel with China's success in consistently attracting substantial FDI over more than a decade. <o:p></o:p>

He emphasised that investors now view India as the "most important investment destination". <o:p></o:p>

While India has made significant strides in various sectors, Vaishnaw underscored his role in overseeing India's push to become a powerhouse in electronics manufacturing, aligning with Modi's broader business agenda. <o:p></o:p>

He also highlighted ongoing efforts to enhance collaboration with Apple, aiming to boost the company's manufacturing and retail presence in India, where it currently contributes to approximately 12-14 per cent of global iPhone shipments.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

India is setting its sights on attracting a whopping $100 billion in annual foreign direct investment (FDI) in the coming years, according to Information Technology Minister Ashwini Vaishnaw.

India is setting its sights on attracting a whopping $100 billion in annual foreign direct investment (FDI) in the coming years, according to Information Technology Minister Ashwini Vaishnaw. This is based on a Reuters report. In an interview at the World Economic Forum in Davos, Vaishnaw outlined a comprehensive growth strategy, foreseeing a consistent growth rate of 6-8 per cent over the next decade. The strategy revolves around four major engines: investment in physical and digital infrastructure, uplifting the bottom pyramid of the population, boosting manufacturing, and simplifying business processes to enhance the ease of doing business. Vaishnaw highlighted the key components of India's growth strategy, emphasising the significance of investment in infrastructure, both physical and digital. "We see 6-8 per cent consistent growth rate over the next full decade, and this is based on a very clearly thought-out strategy," he told Reuters. Foreign direct investment is a pivotal aspect of this plan, and Vaishnaw expressed optimism, asserting that India is now perceived as the "most important investment destination" by global investors. Despite previous critiques of Modi's protectionist policies, foreign investors, including major players like Apple, Samsung, Kia, and Airbus, have made substantial investments in India. India has been a magnet for foreign investment since Prime Minister Narendra Modi assumed office in 2014. Despite occasional criticism of protectionist policies, the country recorded FDI inflows of $33 billion in the first half of the current financial year and $71 billion in the 2022-23 financial year. The ambitious target of $100 billion in annual FDI is aimed at sustaining India's economic growth, which is projected to be the highest among major global economies at 7.3 per cent for the current financial year. This move aligns with Prime Minister Modi's efforts to attract investors ahead of the upcoming elections, addressing crucial issues such as unemployment among the youth. Vaishnaw drew a parallel with China's success in consistently attracting substantial FDI over more than a decade. He emphasised that investors now view India as the "most important investment destination". While India has made significant strides in various sectors, Vaishnaw underscored his role in overseeing India's push to become a powerhouse in electronics manufacturing, aligning with Modi's broader business agenda. He also highlighted ongoing efforts to enhance collaboration with Apple, aiming to boost the company's manufacturing and retail presence in India, where it currently contributes to approximately 12-14 per cent of global iPhone shipments. (With inputs from Reuters)

India seeks $100 billion in annual FDI in coming years: Minister

In a noteworthy projection, Indian brokerage firm ICICI securities suggests that India could witness the emergence of not one but three companies with the potential to achieve a market value of 1 trillion rupees by 2032.

HDFC bank expected to reach Rs 1 trillion valuation soon

India home to 118k recognised start-ups; Gujarat, Karnataka, Kerala, Tamil Nadu top list.

India releases list of top start-up states; Gujarat, Karnataka, Kerala, Tamil Nadu top list

The outlook for 2024 is filled with twists and turns, according to insights shared by chief economists at the recent davos meeting. More than half of these top economic thinkers predict that the world's economic engine might sputter a bit this year, facing challenges from tight financial conditions, political disagreements, and the swift rise of generative artificial intelligence.

Chief economists flag growing wealth gap among nations

In an unprecedented move reflecting growing economic affluence and investor confidence, December 2023 witnessed a record-breaking surge as four million individuals embraced Systematic Investment Plans (SIPs). This remarkable upswing marked a 31% increase from the previous month, adding substantial momentum to India's equity boom.

The surge in SIP registrations showcases a robust 75% growth compared to December 2022, creating a buzz in financial circles. The Association of Mutual Funds in India (AMFI) highlights that this consistent growth has propelled SIP registrations for the current fiscal year beyond the combined figures of the previous two years. The figures underscore a resounding validation of India's economic trajectory.

Analysts attribute this euphoria to reinforced investor confidence in India's macroeconomic fundamentals, buoyed by optimism about potential interest rate cuts. Prime Minister Narendra Modi's party's success in crucial state elections has further fueled this positive sentiment. Investors seem emboldened by the prospect of a pro-business government post-general elections in May, aligning their financial strategies with India's political landscape.

The surge also aligns with a broader trend of rising incomes among Indians, prompting a shift towards diversified investment portfolios. After years of conservative financial strategies, more Indians are now venturing into equities, drawn by the allure of a bullish market. The surge in SIP registrations is not merely a statistical anomaly; it signifies a growing preference for disciplined investment.

The data coincides with a significant increase in new investors opening demat accounts, reaching the highest monthly additions in December. This trend underscores investors' confidence in the Indian economy, currently the fastest-growing globally. As SIPs gain traction amidst all-time highs in the market, investors display a prudent approach by choosing systematic investment over lump-sum investments.

The economic optimism is palpable, as the surge in SIP registrations aligns with India's burgeoning stature on the global economic stage. The country's resilience and growth potential continue to attract investors, and the SIP trend exemplifies a collective belief in India's financial future.

As the world looks towards India's economic prowess, the SIP surge stands as a testament to the nation's rising affluence and the burgeoning confidence of its investors. It's not merely a spike in numbers; it's a resounding chorus of optimism echoing through the financial landscape of the world's fastest-growing economy.

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In an unprecedented move reflecting growing economic affluence and investor confidence, December 2023 witnessed a record-breaking surge as four million individuals embraced Systematic Investment Plans (SIPs).

In an unprecedented move reflecting growing economic affluence and investor confidence, December 2023 witnessed a record-breaking surge as four million individuals embraced Systematic Investment Plans (SIPs). This remarkable upswing marked a 31% increase from the previous month, adding substantial momentum to India's equity boom. The surge in SIP registrations showcases a robust 75% growth compared to December 2022, creating a buzz in financial circles. The Association of Mutual Funds in India (AMFI) highlights that this consistent growth has propelled SIP registrations for the current fiscal year beyond the combined figures of the previous two years. The figures underscore a resounding validation of India's economic trajectory. Analysts attribute this euphoria to reinforced investor confidence in India's macroeconomic fundamentals, buoyed by optimism about potential interest rate cuts. Prime Minister Narendra Modi's party's success in crucial state elections has further fueled this positive sentiment. Investors seem emboldened by the prospect of a pro-business government post-general elections in May, aligning their financial strategies with India's political landscape. The surge also aligns with a broader trend of rising incomes among Indians, prompting a shift towards diversified investment portfolios. After years of conservative financial strategies, more Indians are now venturing into equities, drawn by the allure of a bullish market. The surge in SIP registrations is not merely a statistical anomaly; it signifies a growing preference for disciplined investment. The data coincides with a significant increase in new investors opening demat accounts, reaching the highest monthly additions in December. This trend underscores investors' confidence in the Indian economy, currently the fastest-growing globally. As SIPs gain traction amidst all-time highs in the market, investors display a prudent approach by choosing systematic investment over lump-sum investments. The economic optimism is palpable, as the surge in SIP registrations aligns with India's burgeoning stature on the global economic stage. The country's resilience and growth potential continue to attract investors, and the SIP trend exemplifies a collective belief in India's financial future. As the world looks towards India's economic prowess, the SIP surge stands as a testament to the nation's rising affluence and the burgeoning confidence of its investors. It's not merely a spike in numbers; it's a resounding chorus of optimism echoing through the financial landscape of the world's fastest-growing economy. WATCH WION LIVE HERE

India Witnesses Historic Surge in SIP Registrations: A Testament to Economic Confidence?

India's Ministry of Statistics and Programme Implementation&nbsp;in its first advance estimate has said that the country's economy is likely to grow by 7.3 per cent in financial year 2023-24. The ministry said that the fresh figure surpasses the provisional growth rate of 7.2 per cent in the previous financial year.

"The growth in real GDP during 2023-24 is estimated at 7.3 per cent as compared to 7.2 per cent in 2022-23," said India's National Statistics Office (NSO), which comes under Ministry of Statistics.

Watch | Why did Russian oil price in November for India hit a 12-month high?

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This estimate of growth places India ahead of major global economies. India has seen increased state spending and also notable increase in manufacturing activities.

The advance estimate is in line with the recent adjustment in growth forecast by the Reserve Bank of India (RBI). India's central bank upgraded its growth forecast to 7 per cent from 6.5 per cent.

Also Read | <a href="https://www.wionews.com/india-news/indian-government-signs-969-million-defence-deal-to-strengthen-army-capabilities-676724">Indian government signs $96.9 million defence deal to strengthen army capabilities</a>

The Indian government has taken steps to boost the economy which&nbsp;includes&nbsp;increased state spending to improve infrastructure in the country.

The government has also made investments with an aim to boost manufacturing.

Indian economy grew by 7.6 per cent year-on-year in the September quarter. This was better than the&nbsp;expected performance.

Despite global factors and uncertainties, the performance of the Indian economy has been robust. S&amp;P Global Ratings has&nbsp;forecast&nbsp;India holding on to its position as the fastest-growing major economy over the next three years.

Also Read | <a href="https://www.wionews.com/business-economy/2024-economic-outlook-5-key-things-to-watch-out-this-year-676419">2024 Economic Outlook: 5 key things to watch out this year</a>

Prudent fiscal policies, a resilient domestic market and strategic investments has been a winning combination for India to leave its global counterparts behind.

The ratings agency has predicted India to become the world's third-largest economy&nbsp;by 2030,

(With inputs from agencies)

India's Ministry of Statistics and Programme Implementation in its first advance estimate has said that the country's economy is likely to grow by 7.3 per cent in financial year 2023-24.

India's Ministry of Statistics and Programme Implementation in its first advance estimate has said that the country's economy is likely to grow by 7.3 per cent in financial year 2023-24. The ministry said that the fresh figure surpasses the provisional growth rate of 7.2 per cent in the previous financial year. "The growth in real GDP during 2023-24 is estimated at 7.3 per cent as compared to 7.2 per cent in 2022-23," said India's National Statistics Office (NSO), which comes under Ministry of Statistics. Watch | Why did Russian oil price in November for India hit a 12-month high? × This estimate of growth places India ahead of major global economies. India has seen increased state spending and also notable increase in manufacturing activities. The advance estimate is in line with the recent adjustment in growth forecast by the Reserve Bank of India (RBI). India's central bank upgraded its growth forecast to 7 per cent from 6.5 per cent. Also Read | Indian government signs $96.9 million defence deal to strengthen army capabilities The Indian government has taken steps to boost the economy which includes increased state spending to improve infrastructure in the country. The government has also made investments with an aim to boost manufacturing. Indian economy grew by 7.6 per cent year-on-year in the September quarter. This was better than the expected performance. Despite global factors and uncertainties, the performance of the Indian economy has been robust. S&P Global Ratings has forecast India holding on to its position as the fastest-growing major economy over the next three years. Also Read | 2024 Economic Outlook: 5 key things to watch out this year Prudent fiscal policies, a resilient domestic market and strategic investments has been a winning combination for India to leave its global counterparts behind. The ratings agency has predicted India to become the world's third-largest economy by 2030, (With inputs from agencies)

Indian economy to grow by 7.3 per cent, say government's advance estimates

In a resounding endorsement of India's economic prospects, global investors have propelled foreign portfolio inflows into Indian stocks to remarkable heights. December witnessed an influx of 6.92 billion dollars, marking the second-highest level ever and affirming India's allure amid global uncertainties. We talk to author Monika Halan for more perspective.

Indian markets scale new highs; Indian markets among top performers in 2023

The International Monetary Fund (IMF) has issued a cautionary note, warning that India's general government debt could surpass 100 per cent of the gross domestic product (GDP) in the medium term, the Business Standard reported.&nbsp;

This alert, highlighted in the annual Article IV consultation report, emphasises the need for new financing sources, greater private sector investment, and climate-resilience measures. The IMF points out that substantial investment is required to enhance India's capacity to withstand climate stresses and natural disasters.&nbsp;

Government's Response and Disagreement &nbsp;

In response, the Indian government has asserted that sovereign debt risks are limited as it is primarily denominated in domestic currency. K.V. Subramanian, India's executive director at the IMF, challenged the IMF's claim, stating that despite historical shocks, India's public debt-to-GDP ratio has shown minimal fluctuations. The disagreement centres on the IMF's reclassification of India's exchange rate regime to a "stabilised arrangement".

IMF's Optimistic Outlook and Fiscal Consolidation&nbsp;

Despite the debt concerns, the IMF offers an optimistic outlook for India's economy in its Article IV report, projecting the potential for faster growth if key structural reforms are implemented. The report stresses the necessity for "ambitious" fiscal consolidation to curb public debt. It also outlines potential challenges, including global growth slowdown, commodity price volatility, and domestic weather shocks. The IMF underscored the impact of consumer demand and private investment on growth.&nbsp;

Steps to Tackle Public Debt&nbsp;

In October 2023, Finance Minister Nirmala Sitharaman revealed the government's commitment to exploring measures to reduce government debt. According to a report by Mint, the central government's debt, as of March 2023, stood at Rs 155.6 trillion, constituting 57.1 per cent of GDP. India faces challenges in enhancing credit ratings due to elevated debt levels and the heavy cost associated with servicing that debt. Despite being considered a 'bright spot' in the global economy, India grapples with challenges affecting sovereign investment ratings.&nbsp;

Challenges and the Rating Agencies' Perspective&nbsp;

The Economic Times reported that global rating agencies, including Fitch, S&amp;P, and Moody's, have accorded India the lowest investment-grade rating, citing concerns over weak fiscal performance, burdensome debt stock, and low GDP per capita. The 'K-shaped' growth phenomenon, exacerbated by the Covid-19 pandemic, has contributed to uneven income distribution, impacting India's sovereign rating. Experts contend that the quality of government expenditure improvement could positively influence economic growth.&nbsp;

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The International Monetary Fund (IMF) has issued a cautionary note, warning that India's general government debt could surpass 100 per cent of the gross domestic product (GDP) in the medium term, the Business Standard reported.

The International Monetary Fund (IMF) has issued a cautionary note, warning that India's general government debt could surpass 100 per cent of the gross domestic product (GDP) in the medium term, the Business Standard reported. This alert, highlighted in the annual Article IV consultation report, emphasises the need for new financing sources, greater private sector investment, and climate-resilience measures. The IMF points out that substantial investment is required to enhance India's capacity to withstand climate stresses and natural disasters. Government's Response and Disagreement In response, the Indian government has asserted that sovereign debt risks are limited as it is primarily denominated in domestic currency. K.V. Subramanian, India's executive director at the IMF, challenged the IMF's claim, stating that despite historical shocks, India's public debt-to-GDP ratio has shown minimal fluctuations. The disagreement centres on the IMF's reclassification of India's exchange rate regime to a "stabilised arrangement". IMF's Optimistic Outlook and Fiscal Consolidation Despite the debt concerns, the IMF offers an optimistic outlook for India's economy in its Article IV report, projecting the potential for faster growth if key structural reforms are implemented. The report stresses the necessity for "ambitious" fiscal consolidation to curb public debt. It also outlines potential challenges, including global growth slowdown, commodity price volatility, and domestic weather shocks. The IMF underscored the impact of consumer demand and private investment on growth. Steps to Tackle Public Debt In October 2023, Finance Minister Nirmala Sitharaman revealed the government's commitment to exploring measures to reduce government debt. According to a report by Mint, the central government's debt, as of March 2023, stood at Rs 155.6 trillion, constituting 57.1 per cent of GDP. India faces challenges in enhancing credit ratings due to elevated debt levels and the heavy cost associated with servicing that debt. Despite being considered a 'bright spot' in the global economy, India grapples with challenges affecting sovereign investment ratings. Challenges and the Rating Agencies' Perspective The Economic Times reported that global rating agencies, including Fitch, S&P, and Moody's, have accorded India the lowest investment-grade rating, citing concerns over weak fiscal performance, burdensome debt stock, and low GDP per capita. The 'K-shaped' growth phenomenon, exacerbated by the Covid-19 pandemic, has contributed to uneven income distribution, impacting India's sovereign rating. Experts contend that the quality of government expenditure improvement could positively influence economic growth. WATCH WION LIVE HERE

IMF sounds alarm on India's rising debt, warns of exceeding 100pc of GDP 

KV Subramanian, Executive Director of the International Monetary Fund (IMF) and former Chief Economic Advisor to the Government of India, voiced optimism in response to former RBI Governor Raghuram Rajan's remarks regarding India's GDP growth.

IMF predicts 6.3% growth for India, advocates reforms for India's growth

India's Monetary Policy committee decided to unanimously keep the key policy rates unchanged as growth in the world's fastest-growing major economy is resilient. While the outlook for inflation remains uncertain.

India keeps key rate unchanged despite the risk of inflation and rapid growth

The pace of India's consumer price inflation is anticipated to have eased to a four-month low of 4.80 per cent in October, nearing the Reserve Bank of India's 4 per cent medium-term target, a Reuters poll revealed on Thursday. &nbsp;

The poll, conducted from November 6-9 with 53 economists, suggested a slowdown from the 5.02 per cent rate recorded in September. Volatile food prices, constituting about half of the consumer price index (CPI) basket, are expected to have moderated after a spike in July and August. &nbsp;

However, despite this overall moderation, onion prices, a staple in Indian cooking, continue to rise sharply, adding a layer of complexity to the inflation dynamics.&nbsp;

"I'm expecting a further slide in inflation in October, thanks primarily to a continued moderation in food inflation. Underlying our forecast is a fall in food and beverage inflation to below 6 per cent," Reuters quoted Miguel Chanco, Chief Emerging Asia Economist at Pantheon Macroeconomics as saying. &nbsp;

Chanco further noted, "Beyond October, I wouldn't be surprised if there is some stickiness in the headline rate, particularly if the ongoing increase in onion prices persists. But stickiness is very different from a surge, and I don't expect any breach of the target range in the foreseeable future."&nbsp;

While the slowing pace of price increases may offer some relief to the Reserve Bank of India (RBI), achieving its mandate to anchor inflation to the 4 per cent mid-point target remains a distant prospect. The central bank is anticipated to maintain its key policy rate at 6.50 per cent at least until the end of June 2024, followed by a 25 basis points cut in the subsequent quarter, as indicated by a separate Reuters survey. &nbsp;

The projection suggests that headline inflation may not return to the RBI's mid-point target until at least the second half of 2025.&nbsp;

"Inflation is expected to have a choppy ride in the months ahead... Passage of base effects and a sharper rise in selected vegetable prices are likely to take the headline back above 5 per cent this quarter and keep in that territory into 1Q24," Reuters cited Radhika Rao, a Senior Economist at DBS Bank.&nbsp;

She emphasised the cautious stance of the central bank on the inflation outlook, suggesting a likelihood of an extended pause before considering any change in policy direction.&nbsp;

(With inputs from Reuters)

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The pace of India's consumer price inflation is anticipated to have eased to a four-month low of 4.80 per cent in October, nearing the Reserve Bank of India's 4 per cent medium-term target, a Reuters poll revealed on Thursday.

The pace of India's consumer price inflation is anticipated to have eased to a four-month low of 4.80 per cent in October, nearing the Reserve Bank of India's 4 per cent medium-term target, a Reuters poll revealed on Thursday. The poll, conducted from November 6-9 with 53 economists, suggested a slowdown from the 5.02 per cent rate recorded in September. Volatile food prices, constituting about half of the consumer price index (CPI) basket, are expected to have moderated after a spike in July and August. However, despite this overall moderation, onion prices, a staple in Indian cooking, continue to rise sharply, adding a layer of complexity to the inflation dynamics. "I'm expecting a further slide in inflation in October, thanks primarily to a continued moderation in food inflation. Underlying our forecast is a fall in food and beverage inflation to below 6 per cent," Reuters quoted Miguel Chanco, Chief Emerging Asia Economist at Pantheon Macroeconomics as saying. Chanco further noted, "Beyond October, I wouldn't be surprised if there is some stickiness in the headline rate, particularly if the ongoing increase in onion prices persists. But stickiness is very different from a surge, and I don't expect any breach of the target range in the foreseeable future." While the slowing pace of price increases may offer some relief to the Reserve Bank of India (RBI), achieving its mandate to anchor inflation to the 4 per cent mid-point target remains a distant prospect. The central bank is anticipated to maintain its key policy rate at 6.50 per cent at least until the end of June 2024, followed by a 25 basis points cut in the subsequent quarter, as indicated by a separate Reuters survey. The projection suggests that headline inflation may not return to the RBI's mid-point target until at least the second half of 2025. "Inflation is expected to have a choppy ride in the months ahead... Passage of base effects and a sharper rise in selected vegetable prices are likely to take the headline back above 5 per cent this quarter and keep in that territory into 1Q24," Reuters cited Radhika Rao, a Senior Economist at DBS Bank. She emphasised the cautious stance of the central bank on the inflation outlook, suggesting a likelihood of an extended pause before considering any change in policy direction. (With inputs from Reuters) WATCH WION LIVE HERE

India inflation likely to ease to four-month low in October, says Reuters poll 

S&amp;P Global Market Intelligence has forecasted that India, currently the world's fifth-largest economy, is on track to surpass Japan and become the world's third-largest economy with a projected GDP of USD 7.3 trillion by 2030.&nbsp;This optimistic projection is based on India's economic growth in the years 2021 and 2022, which has continued to show strong momentum throughout 2023.&nbsp;

For the fiscal year ending in March 2024, India's GDP is expected to grow between 6.2 per cent and 6.3 per cent, positioning it as the fastest-growing major economy during this fiscal year. Notably,&nbsp;&nbsp;India's economy surged by 7.8 per cent in the April-June quarter. S&amp;P Global Market Intelligence anticipates that this expansion will persist throughout the remainder of 2023 and 2024, underpinned by significant growth in domestic demand.&nbsp;

The accelerated inflow of foreign direct investment (FDI) into India over the past decade aligns with the favourable long-term growth outlook for the Indian economy. India's youthful demographic profile and rapidly rising urban household incomes contribute to this optimistic projection. "India's nominal GDP measured in USD terms is forecast to rise from USD 3.5 trillion in 2022 to USD 7.3 trillion by 2030," S&amp;P Global said in its report. This surge would result in India's GDP surpassing Japan's by 2030, making it the second-largest economy in the Asia-Pacific region.&nbsp;

By 2022, India's GDP had already surpassed that of the UK and France, and by 2030, it is expected to surpass Germany as well. The current global economic landscape is led by the United States, with a GDP of USD 25.5 trillion, making up a quarter of the world's GDP. China follows as the second-largest economy with a GDP of approximately USD 18 trillion. Japan, with a GDP of USD 4.2 trillion, currently holds the third position, followed by Germany with a GDP of USD 4 trillion.&nbsp;

S&amp;P Global underlined key growth drivers that support India's long-term economic outlook. The country's large and rapidly growing middle class plays a significant role in driving consumer spending. Furthermore, India's domestic consumer market, combined with its industrial sector, has attracted a wide range of multinational companies across various sectors, including manufacturing, infrastructure, and services.&nbsp;

The ongoing digital transformation in India is also expected to accelerate e-commerce growth, reshaping the retail consumer market landscape over the next decade. This transformation has drawn leading global multinationals in technology and e-commerce to India. By 2030, it is projected that 1.1 billion Indians will have internet access, more than doubling the estimated 500 million internet users in 2020.&nbsp;

India's surge in FDI inflows, particularly from global technology giants like Google and Facebook, has played a pivotal role in its economic growth. The country's large and rapidly expanding domestic consumer market is a key attraction for these investments. Even during the pandemic years of 2020-2022, India continued to experience strong momentum in FDI inflows, notably from manufacturing firms.

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S&P Global Market Intelligence has forecasted that India, currently the world's fifth-largest economy, is on track to surpass Japan and become the world's third-largest economy with a projected GDP of USD 7.

S&P Global Market Intelligence has forecasted that India, currently the world's fifth-largest economy, is on track to surpass Japan and become the world's third-largest economy with a projected GDP of USD 7.3 trillion by 2030. This optimistic projection is based on India's economic growth in the years 2021 and 2022, which has continued to show strong momentum throughout 2023. For the fiscal year ending in March 2024, India's GDP is expected to grow between 6.2 per cent and 6.3 per cent, positioning it as the fastest-growing major economy during this fiscal year. Notably, India's economy surged by 7.8 per cent in the April-June quarter. S&P Global Market Intelligence anticipates that this expansion will persist throughout the remainder of 2023 and 2024, underpinned by significant growth in domestic demand. The accelerated inflow of foreign direct investment (FDI) into India over the past decade aligns with the favourable long-term growth outlook for the Indian economy. India's youthful demographic profile and rapidly rising urban household incomes contribute to this optimistic projection. "India's nominal GDP measured in USD terms is forecast to rise from USD 3.5 trillion in 2022 to USD 7.3 trillion by 2030," S&P Global said in its report. This surge would result in India's GDP surpassing Japan's by 2030, making it the second-largest economy in the Asia-Pacific region. By 2022, India's GDP had already surpassed that of the UK and France, and by 2030, it is expected to surpass Germany as well. The current global economic landscape is led by the United States, with a GDP of USD 25.5 trillion, making up a quarter of the world's GDP. China follows as the second-largest economy with a GDP of approximately USD 18 trillion. Japan, with a GDP of USD 4.2 trillion, currently holds the third position, followed by Germany with a GDP of USD 4 trillion. S&P Global underlined key growth drivers that support India's long-term economic outlook. The country's large and rapidly growing middle class plays a significant role in driving consumer spending. Furthermore, India's domestic consumer market, combined with its industrial sector, has attracted a wide range of multinational companies across various sectors, including manufacturing, infrastructure, and services. The ongoing digital transformation in India is also expected to accelerate e-commerce growth, reshaping the retail consumer market landscape over the next decade. This transformation has drawn leading global multinationals in technology and e-commerce to India. By 2030, it is projected that 1.1 billion Indians will have internet access, more than doubling the estimated 500 million internet users in 2020. India's surge in FDI inflows, particularly from global technology giants like Google and Facebook, has played a pivotal role in its economic growth. The country's large and rapidly expanding domestic consumer market is a key attraction for these investments. Even during the pandemic years of 2020-2022, India continued to experience strong momentum in FDI inflows, notably from manufacturing firms. WATCH WION LIVE HERE

India poised to become Asia's second-largest economy surpassing Japan by 2030: S&P Global 

In a land where every bite is a canvas of flavors, India's snacking culture is in the midst of a delicious transformation. Haldiram's, the iconic snack maestro with a heritage tracing back to the 1930s, is poised for a flavorful expansion, setting its sights on the health-conscious snacks aisle. According to Euromonitor, the Indian snacks market is akin to a rising soufflé, anticipated to balloon to an impressive Rs 1,632.9 billion by 2023.

Let's delve into the snacking habits of the people in India through The Mondelez India 4th Annual State of Snacking report.

Snacking isn't a mere interlude; it's now a star on the daily menu. A whopping 76 percent of the populace indulges not once but twice daily. The morning snack has taken center stage, with 42 percent of Indians savoring a breakfast treat, such as a protein bar or crispy crackers—well above the global average of 24 percent. Why this morning munch-fest? It's all about convenience; a quick nibble is easier than orchestrating a full meal.

But, let's dig deeper into the snack vault. Snacks are no longer mere nibbles; they're thrilling escapades. Compact snack packs beckon with the promise of spontaneous indulgence. While health consciousness plays a role in this snacking journey, the reigning judge is flavor. Even the indulgent chips maintain their stronghold in the snack aisles.

Now, here's where it gets tantalizing. The craving for snacks with health perks is on the rise. Enter functional foods, the stars of the show, offering a repertoire of wholesome options crafted with care. Marico, for instance, has donned the cape by acquiring Plix, a snacking virtuoso offering delights like the Lean Fudge bar and peanut butter packed with wellness benefits.

According to the Mondelez report, 91 percent of Indians are on a quest for snacks as unique as their fingerprints. Eighty-five percent actively seek snacks tailored to their health desires.

The journey towards healthier snacking may take time, but awareness is spreading like the aroma of freshly baked bread. As consumers grow more health-conscious, the organized snack sector is set to shine. However, it's crucial to remember that not all palates are created alike. Urban epicureans lean towards branded delights, while regional areas have their local culinary heroes catering to budget-conscious consumers, where affordability still reigns supreme.

As the sun sets on the old snacking ways, India's gustatory adventure is evolving. It's a buffet of innovation, health-conscious choices, and, most importantly, an ever-expanding appetite for snacks that hit all the right notes. It's a culinary revolution that's as delectable as it is unstoppable. Bon appétit!

In a land where every bite is a canvas of flavors, India's snacking culture is in the midst of a delicious transformation. Haldiram's, the iconic snack maestro with a heritage tracing back to the 1930s, is poised for a flavorful expansion, setting its sights on the health-conscious snacks aisle.

In a land where every bite is a canvas of flavors, India's snacking culture is in the midst of a delicious transformation. Haldiram's, the iconic snack maestro with a heritage tracing back to the 1930s, is poised for a flavorful expansion, setting its sights on the health-conscious snacks aisle. According to Euromonitor, the Indian snacks market is akin to a rising soufflé, anticipated to balloon to an impressive Rs 1,632.9 billion by 2023. Let's delve into the snacking habits of the people in India through The Mondelez India 4th Annual State of Snacking report. Snacking isn't a mere interlude; it's now a star on the daily menu. A whopping 76 percent of the populace indulges not once but twice daily. The morning snack has taken center stage, with 42 percent of Indians savoring a breakfast treat, such as a protein bar or crispy crackers—well above the global average of 24 percent. Why this morning munch-fest? It's all about convenience; a quick nibble is easier than orchestrating a full meal. But, let's dig deeper into the snack vault. Snacks are no longer mere nibbles; they're thrilling escapades. Compact snack packs beckon with the promise of spontaneous indulgence. While health consciousness plays a role in this snacking journey, the reigning judge is flavor. Even the indulgent chips maintain their stronghold in the snack aisles. Now, here's where it gets tantalizing. The craving for snacks with health perks is on the rise. Enter functional foods, the stars of the show, offering a repertoire of wholesome options crafted with care. Marico, for instance, has donned the cape by acquiring Plix, a snacking virtuoso offering delights like the Lean Fudge bar and peanut butter packed with wellness benefits. According to the Mondelez report, 91 percent of Indians are on a quest for snacks as unique as their fingerprints. Eighty-five percent actively seek snacks tailored to their health desires. The journey towards healthier snacking may take time, but awareness is spreading like the aroma of freshly baked bread. As consumers grow more health-conscious, the organized snack sector is set to shine. However, it's crucial to remember that not all palates are created alike. Urban epicureans lean towards branded delights, while regional areas have their local culinary heroes catering to budget-conscious consumers, where affordability still reigns supreme. As the sun sets on the old snacking ways, India's gustatory adventure is evolving. It's a buffet of innovation, health-conscious choices, and, most importantly, an ever-expanding appetite for snacks that hit all the right notes. It's a culinary revolution that's as delectable as it is unstoppable. Bon appétit!

India's 'Snackonomics': Packing health and traditional taste in one

Barclays, in a recent report, highlights the incredible potential for India to become the world's most significant growth driver, surpassing even China. To claim this title, India would need to aim for a staggering 8 percent growth rate – an ambitious target but one firmly within reach, according to the report.

Barclays analysts note that India has been a standout performer, boasting impressive growth with remarkably low inflation. The country is already on a trajectory to achieve at least 6 percent GDP growth while maintaining macroeconomic stability, a crucial factor for sustainable development.

India's remarkable transformation is a testament to its resilience and determination. A mere decade ago, it was part of the 'Fragile Five' economies, grappling with a heavy debt burden, financial instability, and a fragile fiscal profile. Today, it has staged a spectacular investment turnaround, defying all odds.

Despite global economic turbulence, India has stood firm as an island of relative macroeconomic stability over the past two years. This stability sets the stage for India to be the fastest-growing major economy in the medium term, especially as global growth faces headwinds in the years ahead.

India's contribution to global GDP, while substantial, remains below its true potential. The report underlines that India still accounts for a smaller share of the global economy compared to China and even the United States.

To become the world's growth leader, India must focus on several key economic preconditions, as outlined in the report. This includes increasing the nominal savings rate to around 32.3 percent of GDP, up from the current 30.2 percent. Additionally, accelerating workforce growth to 3.5 percent per annum, compared to the current 1 percent, is imperative. Achieving these goals will require enhanced female participation, expanding the global export share, and making more productive use of capital.

One of the critical catalysts for this ascent is the investment cycle. Historically, investment has been the primary driver of India's economic growth. While investments have diversified into sectors like telecommunications and digitisation, traditional sectors are calling for renewed attention due to emerging capacity constraints. The report suggests that greater investment in these traditional sectors, complemented by increased public investment, can propel India's GDP growth closer to the coveted 8 percent mark.

India, the rising star of the global economy, is on the cusp of realizing its full potential. With a combination of resilience, smart economic planning, and unwavering determination, India is set to steal the spotlight as the world's premier growth driver, earning cheers and support from the global stage. The underdog is poised for greatness, and the world is watching with bated breath as India's ascent unfolds.

Barclays, in a recent report, highlights the incredible potential for India to become the world's most significant growth driver, surpassing even China. To claim this title, India would need to aim for a staggering 8 percent growth rate – an ambitious target but one firmly within reach, according to the report.

Barclays, in a recent report, highlights the incredible potential for India to become the world's most significant growth driver, surpassing even China. To claim this title, India would need to aim for a staggering 8 percent growth rate – an ambitious target but one firmly within reach, according to the report. Barclays analysts note that India has been a standout performer, boasting impressive growth with remarkably low inflation. The country is already on a trajectory to achieve at least 6 percent GDP growth while maintaining macroeconomic stability, a crucial factor for sustainable development. India's remarkable transformation is a testament to its resilience and determination. A mere decade ago, it was part of the 'Fragile Five' economies, grappling with a heavy debt burden, financial instability, and a fragile fiscal profile. Today, it has staged a spectacular investment turnaround, defying all odds. Despite global economic turbulence, India has stood firm as an island of relative macroeconomic stability over the past two years. This stability sets the stage for India to be the fastest-growing major economy in the medium term, especially as global growth faces headwinds in the years ahead. India's contribution to global GDP, while substantial, remains below its true potential. The report underlines that India still accounts for a smaller share of the global economy compared to China and even the United States. To become the world's growth leader, India must focus on several key economic preconditions, as outlined in the report. This includes increasing the nominal savings rate to around 32.3 percent of GDP, up from the current 30.2 percent. Additionally, accelerating workforce growth to 3.5 percent per annum, compared to the current 1 percent, is imperative. Achieving these goals will require enhanced female participation, expanding the global export share, and making more productive use of capital. One of the critical catalysts for this ascent is the investment cycle. Historically, investment has been the primary driver of India's economic growth. While investments have diversified into sectors like telecommunications and digitisation, traditional sectors are calling for renewed attention due to emerging capacity constraints. The report suggests that greater investment in these traditional sectors, complemented by increased public investment, can propel India's GDP growth closer to the coveted 8 percent mark. India, the rising star of the global economy, is on the cusp of realizing its full potential. With a combination of resilience, smart economic planning, and unwavering determination, India is set to steal the spotlight as the world's premier growth driver, earning cheers and support from the global stage. The underdog is poised for greatness, and the world is watching with bated breath as India's ascent unfolds.

Analysis: Can India become a global growth driver to be on par with China?

Driven by increased government spending ahead of the upcoming general election in May, India is set to claim the title of the fastest-growing major economy in the current fiscal year. However, economists, in a Reuters poll, have expressed concerns about downside risks to this optimistic forecast.

Over the past few years, Narendra Modi's government has ramped up spending on infrastructure projects, including roads and railways, contributing to India's resilience against the global economic slowdown. Despite these efforts, the government has struggled to generate sufficient employment opportunities.

According to the median forecasts from a poll of 65 economists conducted between September 20 and 26, India's economy is expected to grow by 6.2 per cent in the fiscal year ending in March 2024, followed by a 6.3 per cent growth rate in the subsequent fiscal year. These projections align with last month's predictions but reveal a wide range of estimates for the current fiscal year, spanning from 4.6 per cent to 7.1 per cent.

However, economists emphasise that the expected growth remains below India's full potential. Furthermore, concerns have arisen regarding the impact of a drier-than-normal monsoon season, which could hinder economic performance in a country where agriculture employs roughly half of the workforce.

After an 7.8 per cent expansion in the last quarter, the growth rate is anticipated to moderate to 6.4 per cent in the current quarter and then decrease to 6.0 per cent in the October-December period, ultimately slowing to 5.5 per cent in early 2024.

Reuters quoted Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics, as saying&nbsp;that India is currently experiencing a cyclical slowdown, with various factors, including a weak external environment, sluggish private consumption, and subdued investment, impacting economic growth.

A majority of economists, 22 out of 36, believe that the risks to their GDP growth forecasts for FY 2023-2024 are tilted towards the downside.

Regarding inflation, the poll indicates that India's retail inflation is expected to average 5.5 per cent this fiscal year and 4.8 per cent next, exceeding the Reserve Bank of India's (RBI) medium-term target of 4 per cent. Alarmingly, more than two-thirds of the surveyed economists, 23 out of 34, believe that the risks are skewed towards even higher inflation figures.

Despite the anticipation of inflation remaining above the target, economists foresee the next move by the RBI to be a rate cut. Nearly 60 per cent of the economists, 28 out of 48, predict that the RBI will cut rates by at least 25 basis points before July, with the median estimate placing the rate at 6.25 per cent in the second quarter of the following year. This potential rate cut aligns with expectations for similar moves by central banks globally.

In the upcoming Oct. 4-6 meeting, all but one of the 71 economists surveyed anticipate that the RBI will maintain its key repo rate at 6.50 per cent, with one economist expecting a 25 basis point increase. Median forecasts suggest that the rate will remain unchanged throughout the rest of the current fiscal year.

Reuters quoted Alexandra Hermann, lead economist at Oxford Economics as saying, "The RBI will likely tolerate supply-driven inflationary pressures as long as core prices continue to ease but will monitor the development of inflation expectations closely."

She also added that they still expected a rate cut early in 2024 and that the recent inflationary trends were making it increasingly likely that a policy tilt would be delayed. She also pointed out that government measures should have a cooling effect on food prices in the coming months, but rising oil prices would probably exert upward pressure on headline inflation.

(With inputs from Reuters)

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Driven by increased government spending ahead of the upcoming general election in May, India is set to claim the title of the fastest-growing major economy in the current fiscal year.

Driven by increased government spending ahead of the upcoming general election in May, India is set to claim the title of the fastest-growing major economy in the current fiscal year. However, economists, in a Reuters poll, have expressed concerns about downside risks to this optimistic forecast. Over the past few years, Narendra Modi's government has ramped up spending on infrastructure projects, including roads and railways, contributing to India's resilience against the global economic slowdown. Despite these efforts, the government has struggled to generate sufficient employment opportunities. According to the median forecasts from a poll of 65 economists conducted between September 20 and 26, India's economy is expected to grow by 6.2 per cent in the fiscal year ending in March 2024, followed by a 6.3 per cent growth rate in the subsequent fiscal year. These projections align with last month's predictions but reveal a wide range of estimates for the current fiscal year, spanning from 4.6 per cent to 7.1 per cent. However, economists emphasise that the expected growth remains below India's full potential. Furthermore, concerns have arisen regarding the impact of a drier-than-normal monsoon season, which could hinder economic performance in a country where agriculture employs roughly half of the workforce. After an 7.8 per cent expansion in the last quarter, the growth rate is anticipated to moderate to 6.4 per cent in the current quarter and then decrease to 6.0 per cent in the October-December period, ultimately slowing to 5.5 per cent in early 2024. Reuters quoted Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics, as saying that India is currently experiencing a cyclical slowdown, with various factors, including a weak external environment, sluggish private consumption, and subdued investment, impacting economic growth. A majority of economists, 22 out of 36, believe that the risks to their GDP growth forecasts for FY 2023-2024 are tilted towards the downside. Regarding inflation, the poll indicates that India's retail inflation is expected to average 5.5 per cent this fiscal year and 4.8 per cent next, exceeding the Reserve Bank of India's (RBI) medium-term target of 4 per cent. Alarmingly, more than two-thirds of the surveyed economists, 23 out of 34, believe that the risks are skewed towards even higher inflation figures. Despite the anticipation of inflation remaining above the target, economists foresee the next move by the RBI to be a rate cut. Nearly 60 per cent of the economists, 28 out of 48, predict that the RBI will cut rates by at least 25 basis points before July, with the median estimate placing the rate at 6.25 per cent in the second quarter of the following year. This potential rate cut aligns with expectations for similar moves by central banks globally. In the upcoming Oct. 4-6 meeting, all but one of the 71 economists surveyed anticipate that the RBI will maintain its key repo rate at 6.50 per cent, with one economist expecting a 25 basis point increase. Median forecasts suggest that the rate will remain unchanged throughout the rest of the current fiscal year. Reuters quoted Alexandra Hermann, lead economist at Oxford Economics as saying, "The RBI will likely tolerate supply-driven inflationary pressures as long as core prices continue to ease but will monitor the development of inflation expectations closely." She also added that they still expected a rate cut early in 2024 and that the recent inflationary trends were making it increasingly likely that a policy tilt would be delayed. She also pointed out that government measures should have a cooling effect on food prices in the coming months, but rising oil prices would probably exert upward pressure on headline inflation. (With inputs from Reuters) WATCH WION LIVE HERE

India fastest-growing major economy but risks persist, says Reuters poll

Although India may be getting closer to its goal of 6.5 per cent real GDP growth in FY24, experts believe that nominal growth may be lower than anticipated, complicating the fiscal equation and delaying the goal of becoming a $5 trillion economy by another year, according to a report by The Economic Times.

According to experts, muted wholesale inflation may prevent nominal GDP growth from exceeding the 10.5 per cent Union Budget target for this fiscal year.

The Economic Times cited Gaura Sengupta, an economist from IDFC First Bank, who indicated that their projection for nominal GDP growth in FY24 is tracking around 9 per cent with a downside risk. Compared to 9.6 per cent the year before, she forecast wholesale inflation to average at 0.2 per cent for this fiscal year.

As per the data released last week, the wholesale price index (WPI), which makes up 70 per cent of the GDP deflator used to compute nominal GDP, experienced deflation for the fifth consecutive month in August.

Compared to a 1.36 per cent deflation in July, WPI-based inflation dropped by 0.52 per cent in August.

As the base effects diminish, experts claim that WPI will start to trend upward starting in September, but they predict that inflation will remain low for the remainder of the fiscal year.

A rating company called CareEdge expects wholesale inflation to be between 1 per cent and 2 per cent in FY24.

Sengupta stated that tax receipts are showing the effects of the muted nominal growth.

“The impact of the slowdown in nominal GDP growth is already visible with gross tax collection growth slowing to 2.8 per cent YoY in FYTD24 (Financial Year-to-Date) (Apr to Jul), with a decline in corporate tax collections and a slowdown in income tax growth. Even GST tax collections where compliance is improving, a slowdown is seen in nominal growth rates to 11 per cent in FYTD24 (Apr to Aug) from 33 per cent in FYTD23,” The Economic Times quoted Sengupta as saying.

Others claim that low or negative wholesale price increases may prevent that, notwithstanding Sengupta's optimism that the government will be able to achieve its 5.9 per cent fiscal deficit objective with moderate expenditures.

According to Bank of Baroda chief economist Madan Sabnavis, deficit ratios might increase by as much as 0.2 percentage points if nominal growth approaches the real growth rate of 6.5 per cent.

Real GDP growth in the first quarter of FY24 was 7.8 per cent, while nominal GDP growth was just slightly higher at 8 per cent.

The delay in reaching the goal of a $5 trillion economy, according to Sabnavis, is another obstacle.

"This (6.5 per cent nominal growth) will push forward the year when we can hope to touch the $5-trillion mark," The Economic Times quoted Sabnavis as saying.

By 2026–2027, India is expected to surpass Japan as the third-largest economy in the world, according to the IMF, when its economy will reach $5 trillion.

In FY24, Sabnavis projects a nominal GDP growth rate of 8–9 per cent.

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Although India may be getting closer to its goal of 6.5 per cent real GDP growth in FY24, experts believe that nominal growth may be lower than anticipated, complicating the fiscal equation and delaying the goal of becoming a $5 trillion economy by another year, according to a report by The Economic Times.

Although India may be getting closer to its goal of 6.5 per cent real GDP growth in FY24, experts believe that nominal growth may be lower than anticipated, complicating the fiscal equation and delaying the goal of becoming a $5 trillion economy by another year, according to a report by The Economic Times. According to experts, muted wholesale inflation may prevent nominal GDP growth from exceeding the 10.5 per cent Union Budget target for this fiscal year. The Economic Times cited Gaura Sengupta, an economist from IDFC First Bank, who indicated that their projection for nominal GDP growth in FY24 is tracking around 9 per cent with a downside risk. Compared to 9.6 per cent the year before, she forecast wholesale inflation to average at 0.2 per cent for this fiscal year. As per the data released last week, the wholesale price index (WPI), which makes up 70 per cent of the GDP deflator used to compute nominal GDP, experienced deflation for the fifth consecutive month in August. Compared to a 1.36 per cent deflation in July, WPI-based inflation dropped by 0.52 per cent in August. As the base effects diminish, experts claim that WPI will start to trend upward starting in September, but they predict that inflation will remain low for the remainder of the fiscal year. A rating company called CareEdge expects wholesale inflation to be between 1 per cent and 2 per cent in FY24. Sengupta stated that tax receipts are showing the effects of the muted nominal growth. “The impact of the slowdown in nominal GDP growth is already visible with gross tax collection growth slowing to 2.8 per cent YoY in FYTD24 (Financial Year-to-Date) (Apr to Jul), with a decline in corporate tax collections and a slowdown in income tax growth. Even GST tax collections where compliance is improving, a slowdown is seen in nominal growth rates to 11 per cent in FYTD24 (Apr to Aug) from 33 per cent in FYTD23,” The Economic Times quoted Sengupta as saying. Others claim that low or negative wholesale price increases may prevent that, notwithstanding Sengupta's optimism that the government will be able to achieve its 5.9 per cent fiscal deficit objective with moderate expenditures. According to Bank of Baroda chief economist Madan Sabnavis, deficit ratios might increase by as much as 0.2 percentage points if nominal growth approaches the real growth rate of 6.5 per cent. Real GDP growth in the first quarter of FY24 was 7.8 per cent, while nominal GDP growth was just slightly higher at 8 per cent. The delay in reaching the goal of a $5 trillion economy, according to Sabnavis, is another obstacle. "This (6.5 per cent nominal growth) will push forward the year when we can hope to touch the $5-trillion mark," The Economic Times quoted Sabnavis as saying. By 2026–2027, India is expected to surpass Japan as the third-largest economy in the world, according to the IMF, when its economy will reach $5 trillion. In FY24, Sabnavis projects a nominal GDP growth rate of 8–9 per cent. WATCH WION LIVE HERE

As India nears its GDP target, experts worry about subdued nominal growth

Despite India’s increasing labour force availability attributed to an increasing population, it will not be sufficient to strengthen the economy or improve fiscal outcomes, a report by Moody’s Investors Service indicated. It said that the quality of education is a major component that puts the population at a disadvantage.

Moody’s compared India’s current education outcome levels to those of Pakistan and Bangladesh, emphasising that better educational outcomes will help nations like India avoid potential job losses from digitalisation and Artificial Intelligence in the long run, especially in services like call centres and BPOs.

The rating agency stated in a report on sovereigns in South and Southeast Asia titled “Population growth alone will not drive credit benefits for emerging economies” that it anticipates continued population growth in the region to support economic expansion because the proportion of people who are working age will remain high relative to the proportion of people who are younger and older.

“However, the availability and scale of labour inputs alone will not drive materially stronger economic strength or better fiscal outcomes. Other conditions such as strong education and quality infrastructure are also key to reaping the benefits,” The Hindu quoted the report as saying.

Moody’s report also mentioned that there exists a significant gap in the quality of education between Pakistan, Bangladesh and India in comparison to China and other countries in South East Asia. This leads to labour force “participation imbalances.”

The organization predicts that, the population of India, Bangladesh, Indonesia, Pakistan, the Philippines, and Vietnam are to grow by a third, thereby leading to a 40 per cent of the increase in people in working age, over the next 20 years.

According to Moody’s, differences in the proportion of the male and female populations who have completed upper secondary education are most prominent in India and Bangladesh. It is believed that variations in the total mean years of education reflect gender disparities in educational success.

“The development of relevant engineering and programming expertise may actually provide employment opportunities, not only in technology-related fields, but also in higher-value-added manufacturing given the increasingly complex products being produced in some of these large countries, for example, smartphones in India and electric vehicles in Vietnam,” the report stated.

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Despite India’s increasing labour force availability attributed to an increasing population, it will not be sufficient to strengthen the economy or improve fiscal outcomes, a report by Moody’s Investors Service indicated.

Despite India’s increasing labour force availability attributed to an increasing population, it will not be sufficient to strengthen the economy or improve fiscal outcomes, a report by Moody’s Investors Service indicated. It said that the quality of education is a major component that puts the population at a disadvantage. Moody’s compared India’s current education outcome levels to those of Pakistan and Bangladesh, emphasising that better educational outcomes will help nations like India avoid potential job losses from digitalisation and Artificial Intelligence in the long run, especially in services like call centres and BPOs. The rating agency stated in a report on sovereigns in South and Southeast Asia titled “Population growth alone will not drive credit benefits for emerging economies” that it anticipates continued population growth in the region to support economic expansion because the proportion of people who are working age will remain high relative to the proportion of people who are younger and older. “However, the availability and scale of labour inputs alone will not drive materially stronger economic strength or better fiscal outcomes. Other conditions such as strong education and quality infrastructure are also key to reaping the benefits,” The Hindu quoted the report as saying. Moody’s report also mentioned that there exists a significant gap in the quality of education between Pakistan, Bangladesh and India in comparison to China and other countries in South East Asia. This leads to labour force “participation imbalances.” The organization predicts that, the population of India, Bangladesh, Indonesia, Pakistan, the Philippines, and Vietnam are to grow by a third, thereby leading to a 40 per cent of the increase in people in working age, over the next 20 years. According to Moody’s, differences in the proportion of the male and female populations who have completed upper secondary education are most prominent in India and Bangladesh. It is believed that variations in the total mean years of education reflect gender disparities in educational success. “The development of relevant engineering and programming expertise may actually provide employment opportunities, not only in technology-related fields, but also in higher-value-added manufacturing given the increasingly complex products being produced in some of these large countries, for example, smartphones in India and electric vehicles in Vietnam,” the report stated. WATCH WION LIVE HERE

Population growth insufficient to strengthen India’s economy: Moody’s Investors Service 

The Purchasing Management Index (PMI) data issued on Thursday revealed that India’s major services sector maintained its strong performance in July, as total sales increased at the fastest rate since June 2010, as per a report in the Economic Times.

S&amp;P Global’s index for India's services sector increased from 58.5 in June to&nbsp;62.3 in July. Analysts from Reuters had predicted a decline to 58.0. For two years, the services PMI for India has been above the 50-point threshold that separates growth from expansion.

Although the manufacturing sector PMI for India fell to 57.7 in July, the overall S&amp;P Global India Composite PMI Output Index reached a 13-year high of 61.9.

“The resilience of the service sector underscores its vital role in fuelling India's economy, with the PMI results for July so far pointing to a notable contribution from the sector to overall GDP for the second fiscal quarter,” the Economic Times quoted Pollyanna De Lima, the economics director at S&amp;P Global Market Intelligence, as saying.

With the overall demand remaining strong, the new-business sub-index indicated that the demand growth in July was at its highest since June 2010.&nbsp;The release further said that Bangladesh, Nepal, Sri Lanka and the UAE were key sources of international growth.

Operating costs increased at their quickest rate since June 2022, and businesses passed some of that cost on to consumers, although comparatively slower than in the previous three months due to their careful price setting.

De Lima was quoted as saying that&nbsp;competitive advantage continued to support demand for Indian services, as rise in output costs remained modest compared to other countries.&nbsp;

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The Purchasing Management Index (PMI) data issued on Thursday revealed that India’s major services sector maintained its strong performance in July, as total sales increased at the fastest rate since June 2010, as per a report in the Economic Times.

The Purchasing Management Index (PMI) data issued on Thursday revealed that India’s major services sector maintained its strong performance in July, as total sales increased at the fastest rate since June 2010, as per a report in the Economic Times. S&P Global’s index for India's services sector increased from 58.5 in June to 62.3 in July. Analysts from Reuters had predicted a decline to 58.0. For two years, the services PMI for India has been above the 50-point threshold that separates growth from expansion. Although the manufacturing sector PMI for India fell to 57.7 in July, the overall S&P Global India Composite PMI Output Index reached a 13-year high of 61.9. “The resilience of the service sector underscores its vital role in fuelling India's economy, with the PMI results for July so far pointing to a notable contribution from the sector to overall GDP for the second fiscal quarter,” the Economic Times quoted Pollyanna De Lima, the economics director at S&P Global Market Intelligence, as saying. With the overall demand remaining strong, the new-business sub-index indicated that the demand growth in July was at its highest since June 2010. The release further said that Bangladesh, Nepal, Sri Lanka and the UAE were key sources of international growth. Operating costs increased at their quickest rate since June 2022, and businesses passed some of that cost on to consumers, although comparatively slower than in the previous three months due to their careful price setting. De Lima was quoted as saying that competitive advantage continued to support demand for Indian services, as rise in output costs remained modest compared to other countries. WATCH WION LIVE HERE

India’s service sector grew at its fastest rate in 13 years: S&P Global Index 

India's drive to internationalise the Rupee is reaping benefits in one and a half dozen countries across the world. Banks from 18 countries have been allowed by India's central bank, Reserve Bank of India,&nbsp;to open Special Vostro Rupee Accounts (SVRAs) for settling payments in Indian rupees, the Indian government told the parliament which is currently in session.&nbsp;

The government's response came to a question from Bharatiya Janata Party’s Sushil Kumar Modi.&nbsp;

The Union Minister of State for Finance Bhagwat Kishanrao Karad said that the SVRAs could be set up by banks of partner countries by approaching Authorised Dealer (AD) banks in India that may get permission from the RBI after the due procedure.

<h2>Rupee internationalisation: Which countries can trade in Indian Rupee?</h2>

According to records shared by the Indian government in Rajya Sabha, the Indian parliament's upper house, Special Vostro Rupee Accounts can be opened in 18 countries. They are Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda and the United Kingdom.

In India, the process of SVRAs began in July 2022 when the RBI announced that, "it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR [Indian rupees]."

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/india-steps-up-rupees-internationalisation-for-sri-lankas-economic-recovery-589593">India steps up rupee's internationalisation for Sri Lanka's economic recovery</a>

"Procedures for trade in INR have been delineated by RBI in the Circular (No 10 RBI/2022-2023/90 dated 11.07.2022 on ‘International Trade Settlement in Indian rupees’. RBI has also issued Frequently Asked Questions on its website. RBI has clarified matters related to operationalisation of SRVAs through the said FAQs, which are available to banks, importers and exporters etc.,” Karad stated in the Rajya Sabha.&nbsp;

<h2>Russia top proponent of de-dollarisation move</h2>

Among the 18 countries mentioned in the government's response to the parliament, Russia has been actively advocating for the use of local currency in a broader effort to achieve "de-dollarisation."&nbsp;

On the other hand, India's interest in promoting trade in local currency primarily stems from its desire to enhance exports.

Also watch |&nbsp;The growing footprint of Indian rupee | In-Depth Analysis

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The commodities crisis was triggered by Western sanctions imposed on Russia following President Vladimir Putin's launch of offensive on Ukraine.

Over the past year, India has been actively engaging with countries like the United Arab Emirates and Australia to conclude trade agreements. Additionally, India has initiated negotiations with other significant trading partners such as the United Kingdom and the European Union to make towards adopting the Indian Rupee for bilateral and global trade.

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India's drive to internationalise the Rupee is reaping benefits in one and a half dozen countries across the world. Banks from 18 countries have been allowed by India's central bank, Reserve Bank of India, to open Special Vostro Rupee Accounts (SVRAs) for settling payments in Indian rupees, the Indian government told the parliament which is currently in session.

India's drive to internationalise the Rupee is reaping benefits in one and a half dozen countries across the world. Banks from 18 countries have been allowed by India's central bank, Reserve Bank of India, to open Special Vostro Rupee Accounts (SVRAs) for settling payments in Indian rupees, the Indian government told the parliament which is currently in session. The government's response came to a question from Bharatiya Janata Party’s Sushil Kumar Modi. The Union Minister of State for Finance Bhagwat Kishanrao Karad said that the SVRAs could be set up by banks of partner countries by approaching Authorised Dealer (AD) banks in India that may get permission from the RBI after the due procedure. Rupee internationalisation: Which countries can trade in Indian Rupee? According to records shared by the Indian government in Rajya Sabha, the Indian parliament's upper house, Special Vostro Rupee Accounts can be opened in 18 countries. They are Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda and the United Kingdom. In India, the process of SVRAs began in July 2022 when the RBI announced that, "it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR [Indian rupees]." Also read | India steps up rupee's internationalisation for Sri Lanka's economic recovery "Procedures for trade in INR have been delineated by RBI in the Circular (No 10 RBI/2022-2023/90 dated 11.07.2022 on ‘International Trade Settlement in Indian rupees’. RBI has also issued Frequently Asked Questions on its website. RBI has clarified matters related to operationalisation of SRVAs through the said FAQs, which are available to banks, importers and exporters etc.,” Karad stated in the Rajya Sabha. Russia top proponent of de-dollarisation move Among the 18 countries mentioned in the government's response to the parliament, Russia has been actively advocating for the use of local currency in a broader effort to achieve "de-dollarisation." On the other hand, India's interest in promoting trade in local currency primarily stems from its desire to enhance exports. Also watch | The growing footprint of Indian rupee | In-Depth Analysis × The commodities crisis was triggered by Western sanctions imposed on Russia following President Vladimir Putin's launch of offensive on Ukraine. Over the past year, India has been actively engaging with countries like the United Arab Emirates and Australia to conclude trade agreements. Additionally, India has initiated negotiations with other significant trading partners such as the United Kingdom and the European Union to make towards adopting the Indian Rupee for bilateral and global trade. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Indian Rupee bolsters New Delhi's economic might in 18 countries

Fixed deposits are considered one of the safest investment options in India. They are regulated and monitored by the Reserve Bank of India (RBI) and offered by banks and non-banking financial institutions across India. FDs have, for decades, been a trusted choice of risk averse investors and senior citizens as a secure avenue to grow savings.

In the past, FDs lost their appeal to some extent due to falling interest rates, which led to increased investments in instruments yielding higher interest, such as mutual funds and certain government-backed schemes. &nbsp;

The economic uncertainty that followed the pandemic has led Indian investors to seek safer investment avenues which allow them to calculate the exact returns. This is among the primary reasons why FDs, offering a fixed rate of interest for a pre-set period, are appealing to risk-averse individuals. Rate hikes have added to the popularity that FDs enjoy. However, in case of interest rate drops, investors tend to shift their investments to other higher income generating products.&nbsp;

Investors with a low-risk appetite often view mutual funds and stocks as high-risk investments. Stocks, on the other hand, require one to gain a fair understanding of the investment before investing. Thus, investors in search of hassle-free options, tend to turn to FDs which are not subject to market fluctuations, thus ensuring a fixed rate of interest on deposits.&nbsp;

People across India rely on fixed deposits for several reasons – assured returns, safety of capital, easy liquidity, to name a few. Retired individuals prefer fixed deposits for their periodic fixed interest pay out. It ensures a stable income stream during retirement.

A look at recent RBI data gives us a glimpse of the how India invests in fixed deposits.&nbsp;

Today, the average bank FD is just over Rs.42,500. The average deposit amounts in Delhi and Maharashtra are much higher compared to other states in the country. The average deposit amount in Delhi hovers around Rs.80,000, followed by Maharashtra where the average deposit is hovers above Rs.73,000. States in the south of India weigh heavily on both volumes and averages, while states in the north-east like Mizoram and Sikkim are punching above their weight in terms of averages.&nbsp;

According to the data, Delhi accounts for around 10% of all deposits by volume in India and Maharashtra accounts for another 25%. Analysis of the investment preference data of an average BankBazaar customer revealed that FDs are the second most preferred investment, with the first being mutual funds. However, with interest rates having risen, we expect to see a greater preference for FDs in our upcoming market research. &nbsp;

Investing in FDs is flexible and convenient for Indians. Most banks and financial institutions with online platforms have made it easy for investors to open and manage their FD accounts. RBI data indicates that over 103 trillion is currently locked in 24.23 million FDs. This figure surpasses the 18.5 trillion held in current accounts and 59.70 trillion in savings accounts, which, put together, comes to a whopping 181 trillion. For comparison, the Indian GDP in 2021-22 was estimated to be 234 trillion.

Offering guaranteed returns and capital protection, FDs are a popular investment which has only gained popularity following the interest rate hikes. For investors averse to risk, FDs make for an ideal investment that provides easy liquidity, especially in times of emergencies. However, investors seeking higher returns might look to other, more suitable options to achieve their financial goals.

Adhil Shetty is the CEO of&nbsp;Bankbazaar.com

Fixed deposits are considered one of the safest investment options in India. They are regulated and monitored by the Reserve Bank of India (RBI) and offered by banks and non-banking financial institutions across India.

Fixed deposits are considered one of the safest investment options in India. They are regulated and monitored by the Reserve Bank of India (RBI) and offered by banks and non-banking financial institutions across India. FDs have, for decades, been a trusted choice of risk averse investors and senior citizens as a secure avenue to grow savings. In the past, FDs lost their appeal to some extent due to falling interest rates, which led to increased investments in instruments yielding higher interest, such as mutual funds and certain government-backed schemes. The economic uncertainty that followed the pandemic has led Indian investors to seek safer investment avenues which allow them to calculate the exact returns. This is among the primary reasons why FDs, offering a fixed rate of interest for a pre-set period, are appealing to risk-averse individuals. Rate hikes have added to the popularity that FDs enjoy. However, in case of interest rate drops, investors tend to shift their investments to other higher income generating products. Investors with a low-risk appetite often view mutual funds and stocks as high-risk investments. Stocks, on the other hand, require one to gain a fair understanding of the investment before investing. Thus, investors in search of hassle-free options, tend to turn to FDs which are not subject to market fluctuations, thus ensuring a fixed rate of interest on deposits. People across India rely on fixed deposits for several reasons – assured returns, safety of capital, easy liquidity, to name a few. Retired individuals prefer fixed deposits for their periodic fixed interest pay out. It ensures a stable income stream during retirement. A look at recent RBI data gives us a glimpse of the how India invests in fixed deposits. Today, the average bank FD is just over Rs.42,500. The average deposit amounts in Delhi and Maharashtra are much higher compared to other states in the country. The average deposit amount in Delhi hovers around Rs.80,000, followed by Maharashtra where the average deposit is hovers above Rs.73,000. States in the south of India weigh heavily on both volumes and averages, while states in the north-east like Mizoram and Sikkim are punching above their weight in terms of averages. According to the data, Delhi accounts for around 10% of all deposits by volume in India and Maharashtra accounts for another 25%. Analysis of the investment preference data of an average BankBazaar customer revealed that FDs are the second most preferred investment, with the first being mutual funds. However, with interest rates having risen, we expect to see a greater preference for FDs in our upcoming market research. Investing in FDs is flexible and convenient for Indians. Most banks and financial institutions with online platforms have made it easy for investors to open and manage their FD accounts. RBI data indicates that over 103 trillion is currently locked in 24.23 million FDs. This figure surpasses the 18.5 trillion held in current accounts and 59.70 trillion in savings accounts, which, put together, comes to a whopping 181 trillion. For comparison, the Indian GDP in 2021-22 was estimated to be 234 trillion. Offering guaranteed returns and capital protection, FDs are a popular investment which has only gained popularity following the interest rate hikes. For investors averse to risk, FDs make for an ideal investment that provides easy liquidity, especially in times of emergencies. However, investors seeking higher returns might look to other, more suitable options to achieve their financial goals. Adhil Shetty is the CEO of Bankbazaar.com

Decoded: How much Indians save in Fixed Deposits

Southwest Monsoon has brought heavy rainfall to various parts of Northern India. The heavy rainfall is predicted to continue over the northern regions for the next few days. The rain has provided relief from a heatwave but has caused waterlogging and traffic issues.

Heavy rainfall and chaos grip northern India as monsoon arrives

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

A report titled ‘Jailed For Doing Business’ by TeamLease RegTech and Observer Research Foundation (ORF) found that while the Indian government has been pushing for ease of doing business in the country, there are still more than 26,000 imprisonment clauses as penalties for non-compliance with business laws.

In other words, non-compliance with two out of five provisions for doing business in India can send an entrepreneur to jail.&nbsp;

<h2>What did the report find?</h2>

The report compiled by TeamLease RegTech with the ORF, a New Delhi-based independent think tank, found that there are 69,233 unique compliances which broadly regulate doing business in India out of which 26,134 clauses have imprisonment clauses as a penalty for non-compliance.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/modis-us-visit-brings-home-billions-in-investments-from-google-amazon-608175">PM Modi's US visit brings home billions in investments from Google, Amazon</a>

However, the brunt of these excessive compliances is borne mainly by Micro, Small and Medium Enterprises (MSMEs), said the report. Since a typical MSME has more than 150 employees, it reportedly faces 500-900 compliances that cost at least 12-18 lakhs ($14,637-$21,955) in a year.&nbsp;

The report also found that five Indian states – Gujarat (1,469), Punjab (1,273), Maharashtra (1,210), Karnataka (1,175) and Tamil Nadu (1,043) – have more than 1,000 imprisonment clauses in their business laws. 
 
It is also worth noting that this regulatory overreach impacts not only entrepreneurs running for-profits but not-for-profit institutions as well, said the report. It added,&nbsp;“There is a widening gap between the goods and services the country needs and how the State views the entrepreneurs creating them.”

<h2>‘First-of-its-kind’ monograph: TeamLease RegTech</h2>

Speaking about the report, TeamLease RegTech, said that this monograph is a first-of-its-kind consolidation of business compliance data that had, to date, only existed in silos across ministries and departments. Notably, the report has been collated over the past seven years by TeamLease RegTech, a regulatory technology solutions firm.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/indias-byjus-denies-reports-of-three-board-members-quitting-deloitte-resigns-as-auditors-reports-607470">India’s Byju’s denies three board members quitting; Deloitte resigns as auditors: Reports</a>

The monograph for the report has classified the data into seven broad domains – labour; finance and taxation; environment, health and safety; secretarial; commercial; industry-specific; and general. “The excessive criminalization of India’s employer compliance universe breeds corruption, blunts formal employment and poisons justice,” said the Vice Chairman of TeamLease, Manish Sabharwal, in a statement.

He added, “This report is a wonderful contribution to ideas for actionable reforms; the government has made a good start in purging compliances but truly reducing regulatory cholesterol requires extending that project to purging the 26,134 jail provisions for employers at the centre and state.”&nbsp;

The report&nbsp;offers ten recommendations on rationalising the excesses of business laws, rules and regulations, which include using criminal penalties with restraint and even calls for the creation of a regulatory impact assessment committee which could lay the foundation of policy reformation. Furthermore, the report also recommends rationalising imprisonment clauses.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/india-news/pm-modi-invites-micron-technology-and-applied-materials-to-boost-semiconductor-manufacturing-in-india-607160">PM Modi invites Micron Technology and Applied Materials to boost semiconductor manufacturing in India</a>

“The recommendations in Jailed for Doing Business, and its thorough analysis, must compel us to change how we assess our businesses and treat those who run them,” said the President of the ORF, Samir Saran. He added, “I see this report as a springboard for new research and efforts that are needed to do away with rules, laws and codes that hold back India’s entrepreneurial energy and its emergence as a global economic powerhouse”.&nbsp; 
 
&nbsp;

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A report titled ‘Jailed For Doing Business’ by TeamLease RegTech and Observer Research Foundation (ORF) found that while the Indian government has been pushing for ease of doing business in the country, there are still more than 26,000 imprisonment clauses as penalties for non-compliance with business laws.

A report titled ‘Jailed For Doing Business’ by TeamLease RegTech and Observer Research Foundation (ORF) found that while the Indian government has been pushing for ease of doing business in the country, there are still more than 26,000 imprisonment clauses as penalties for non-compliance with business laws. In other words, non-compliance with two out of five provisions for doing business in India can send an entrepreneur to jail. What did the report find? The report compiled by TeamLease RegTech with the ORF, a New Delhi-based independent think tank, found that there are 69,233 unique compliances which broadly regulate doing business in India out of which 26,134 clauses have imprisonment clauses as a penalty for non-compliance. Also read | PM Modi's US visit brings home billions in investments from Google, Amazon However, the brunt of these excessive compliances is borne mainly by Micro, Small and Medium Enterprises (MSMEs), said the report. Since a typical MSME has more than 150 employees, it reportedly faces 500-900 compliances that cost at least 12-18 lakhs ($14,637-$21,955) in a year. The report also found that five Indian states – Gujarat (1,469), Punjab (1,273), Maharashtra (1,210), Karnataka (1,175) and Tamil Nadu (1,043) – have more than 1,000 imprisonment clauses in their business laws. It is also worth noting that this regulatory overreach impacts not only entrepreneurs running for-profits but not-for-profit institutions as well, said the report. It added, “There is a widening gap between the goods and services the country needs and how the State views the entrepreneurs creating them.” ‘First-of-its-kind’ monograph: TeamLease RegTech Speaking about the report, TeamLease RegTech, said that this monograph is a first-of-its-kind consolidation of business compliance data that had, to date, only existed in silos across ministries and departments. Notably, the report has been collated over the past seven years by TeamLease RegTech, a regulatory technology solutions firm. Also read | India’s Byju’s denies three board members quitting; Deloitte resigns as auditors: Reports The monograph for the report has classified the data into seven broad domains – labour; finance and taxation; environment, health and safety; secretarial; commercial; industry-specific; and general. “The excessive criminalization of India’s employer compliance universe breeds corruption, blunts formal employment and poisons justice,” said the Vice Chairman of TeamLease, Manish Sabharwal, in a statement. He added, “This report is a wonderful contribution to ideas for actionable reforms; the government has made a good start in purging compliances but truly reducing regulatory cholesterol requires extending that project to purging the 26,134 jail provisions for employers at the centre and state.” The report offers ten recommendations on rationalising the excesses of business laws, rules and regulations, which include using criminal penalties with restraint and even calls for the creation of a regulatory impact assessment committee which could lay the foundation of policy reformation. Furthermore, the report also recommends rationalising imprisonment clauses. Also read | PM Modi invites Micron Technology and Applied Materials to boost semiconductor manufacturing in India “The recommendations in Jailed for Doing Business, and its thorough analysis, must compel us to change how we assess our businesses and treat those who run them,” said the President of the ORF, Samir Saran. He added, “I see this report as a springboard for new research and efforts that are needed to do away with rules, laws and codes that hold back India’s entrepreneurial energy and its emergence as a global economic powerhouse”. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India: Over 26,000 clauses can be used to put entrepreneurs in prison, finds report

India's services sector exhibited remarkable resilience in May, even as the pace of growth slightly eased from the previous month.

According to the monthly survey conducted by S&amp;P Global, the sector recorded the second-strongest rate of expansion in nearly 13 years, bolstered by favorable demand conditions and new client acquisitions. While the seasonally adjusted S&amp;P Global India Services PMI Business Activity Index fell from 62 in April to 61.2 in May, the output still grew at the second-quickest pace since July 2010.

The survey's findings underscored the positive trend of job creation within India's dynamic service sector. For the 22nd consecutive month, the headline figure remained above the crucial threshold of 50, indicating continuous service sector expansion. This growth was further strengthened&nbsp;by companies increasing their workforce to accommodate higher workloads and capitalize on new opportunities.&nbsp;

"The PMI data for May stand as a compelling testament to prevailing demand resilience, impressive output growth and job creation within India's dynamic service sector,"&nbsp;Pollyanna De Lima, Economics Associate Director at S&amp;P Global Market Intelligence, said

Meanwhile, the S&amp;P Global India Composite PMI Output Index held steady at 61.6 in May. The index, which combines services and manufacturing output, indicated&nbsp;that India's private sector posted&nbsp;a rate of expansion in business activity that was the joint-best in just under 13 years.

Optimistic Outlook and Factors Affecting Growth

Service companies maintain an optimistic view and anticipate increased business activity over the next 12 months. The upbeat forecasts are attributed to various factors, including robust advertising, strong demand, and favorable market conditions. These elements contribute to the sector's overall positive sentiment and bolster confidence in sustained growth.

Indian service providers faced challenges in May as they grappled with higher food, input, transportation, and wage costs. To mitigate these challenges, companies adjusted their pricing, leading to increased service charges. While this could potentially impact purchasing power and the affordability of services, organizations are actively seeking operational efficiencies and exploring alternative sourcing options to navigate these obstacles.

India's services sector exhibited remarkable resilience in May, even as the pace of growth slightly eased from the previous month. According to the monthly survey conducted by S&P Global, the sector recorded the second-strongest rate of expansion in nearly 13 years, bolstered by favorable demand conditions and new client acquisitions.

India's services sector exhibited remarkable resilience in May, even as the pace of growth slightly eased from the previous month. According to the monthly survey conducted by S&P Global, the sector recorded the second-strongest rate of expansion in nearly 13 years, bolstered by favorable demand conditions and new client acquisitions. While the seasonally adjusted S&P Global India Services PMI Business Activity Index fell from 62 in April to 61.2 in May, the output still grew at the second-quickest pace since July 2010. The survey's findings underscored the positive trend of job creation within India's dynamic service sector. For the 22nd consecutive month, the headline figure remained above the crucial threshold of 50, indicating continuous service sector expansion. This growth was further strengthened by companies increasing their workforce to accommodate higher workloads and capitalize on new opportunities. "The PMI data for May stand as a compelling testament to prevailing demand resilience, impressive output growth and job creation within India's dynamic service sector," Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said Meanwhile, the S&P Global India Composite PMI Output Index held steady at 61.6 in May. The index, which combines services and manufacturing output, indicated that India's private sector posted a rate of expansion in business activity that was the joint-best in just under 13 years. Optimistic Outlook and Factors Affecting Growth Service companies maintain an optimistic view and anticipate increased business activity over the next 12 months. The upbeat forecasts are attributed to various factors, including robust advertising, strong demand, and favorable market conditions. These elements contribute to the sector's overall positive sentiment and bolster confidence in sustained growth. Indian service providers faced challenges in May as they grappled with higher food, input, transportation, and wage costs. To mitigate these challenges, companies adjusted their pricing, leading to increased service charges. While this could potentially impact purchasing power and the affordability of services, organizations are actively seeking operational efficiencies and exploring alternative sourcing options to navigate these obstacles.

India’s services sector displays resilient growth despite May slowdown

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