Even as the world grapples with an economic slowdown, India, the fastest-growing G20 economy, is set to achieve unparalleled success this year,&nbsp;Borge Brende, President of the World Economic Forum, has said.

India's economy is witnessing an extraordinary phenomenon known as the famous 'snowball effect', propelling it to the forefront of global growth, Brende said during his brief visit to New Delhi.

Applauding&nbsp;India's growth trajectory and reform-oriented administration, Brende has predicted exponential growth, increased job opportunities, and the eradication of poverty in India.&nbsp;"India's growth will lead to more investments, more jobs...When the snowball starts to roll, it gets bigger and bigger, and that is what is happening with the Indian economy." Brende told Press Trust of India in an interview.

'Snowball effect' refers to any action or occurrence that grows from being unimportant to something bigger and more significant.&nbsp;It occurs when a single action or event sparks a chain reaction of many comparable or even more significant ones.

Brende, a former Norwegian minister, commended India's entrepreneurial spirit, free speech, and status as the world's largest democracy.&nbsp;He highlighted that India has more of a broad ecosystem of startups than in any other developing country and that is growing.&nbsp;

The World Economic Forum has projected&nbsp;India's economic growth to reach nearly 6 percent this year, surpassing other major economies worldwide. The United Nations has also released a report predicting robust economic expansion for India, with 5.8 percent growth in 2023 and 6.7 percent in 2024. These predictions have been fueled by the resilient domestic demand.

Sustaining the current rate of economic growth must be India's priority, he said. "Investing more in infrastructure, connecting different regions even better and India needs more investment in education, upskilling, reskilling and right skilling in the years to come," he said.&nbsp;

He added that India's prudent handling of the COVID-19 pandemic, with a well-balanced approach to stimulus measures and fiscal discipline, has set&nbsp;it apart from other nations that are grappling with debt.

(With inputs from agencies)&nbsp;

Even as the world grapples with an economic slowdown, India, the fastest-growing G20 economy, is set to achieve unparalleled success this year, Borge Brende, President of the World Economic Forum, has said.

Even as the world grapples with an economic slowdown, India, the fastest-growing G20 economy, is set to achieve unparalleled success this year, Borge Brende, President of the World Economic Forum, has said. India's economy is witnessing an extraordinary phenomenon known as the famous 'snowball effect', propelling it to the forefront of global growth, Brende said during his brief visit to New Delhi. Applauding India's growth trajectory and reform-oriented administration, Brende has predicted exponential growth, increased job opportunities, and the eradication of poverty in India. "India's growth will lead to more investments, more jobs...When the snowball starts to roll, it gets bigger and bigger, and that is what is happening with the Indian economy." Brende told Press Trust of India in an interview. 'Snowball effect' refers to any action or occurrence that grows from being unimportant to something bigger and more significant. It occurs when a single action or event sparks a chain reaction of many comparable or even more significant ones. Brende, a former Norwegian minister, commended India's entrepreneurial spirit, free speech, and status as the world's largest democracy. He highlighted that India has more of a broad ecosystem of startups than in any other developing country and that is growing. The World Economic Forum has projected India's economic growth to reach nearly 6 percent this year, surpassing other major economies worldwide. The United Nations has also released a report predicting robust economic expansion for India, with 5.8 percent growth in 2023 and 6.7 percent in 2024. These predictions have been fueled by the resilient domestic demand. Sustaining the current rate of economic growth must be India's priority, he said. "Investing more in infrastructure, connecting different regions even better and India needs more investment in education, upskilling, reskilling and right skilling in the years to come," he said. He added that India's prudent handling of the COVID-19 pandemic, with a well-balanced approach to stimulus measures and fiscal discipline, has set it apart from other nations that are grappling with debt. (With inputs from agencies)

Snowballing to success: World Economic Forum bets on India’s growth story

Germany, long touted as Europe’s growth engine and the world’s fourth largest economy, entered recession as its Gross Domestic Product fell 0.3 per cent in the first quarter of 2023. This follows a decline of 0.5 per cent in the fourth quarter of the last year, effectively pushing the country into a recession. Germany’s economy minister Robert Habeck blamed the country’s previous high dependency on Russian gas for the prevailing economic crisis. Speaking at an event in Berlin&nbsp;on Thursday,&nbsp;Habeck said, “We're fighting our way out of this crisis."

While two consecutive quarters of contraction fulfil the common definition of a recession, economists on the euro area business cycle dating committee employ a broader range of data, including employment figures, to assess economic downturns.

<h2>Why is Germany facing an economic crisis?</h2>

Germany is the worst-performing economy among G7 nations. Experts believe massive inflation has paralysed consumption growth in the country, which coupled with the persistent energy crisis has spelt doom for the economy.&nbsp;

Germany’s Federal Statistical Office noted, “The persistence of high price increases continued to be a burden on the German economy at the start of the year.” 
 
“This was particularly reflected in household final consumption expenditure, which was down 1.2% in the first quarter of 2023,” it added.

The country has also failed to sustainably serve the energy needs of its industrial sector, which is designed to produce the best output only when provided with Russian fuel. The political and business class of the country has failed to accommodate new challenges even as Russian fuel supplies remain throttled.&nbsp;

To solve the energy crisis, Berlin resorted to imposing a power price cap for some energy-intensive industries. However, that is also poised to further exacerbate the country’s inflation problem.

It is believed that the subsidies in fuel prices to some industries could cost taxpayers as much as $32 billion in the next seven years. The country has already shut down its nuclear power reactors, and plans to shut down its coal-fired power plants by 2030; however, its transition to cleaner modes of energy production has been very slow.

Although the Scholz administration has devised plans to install 625 million solar panels and 19,000 wind turbines by 2030, it fails to cope with the rising demand since almost everything in the country is being electrified, from heating to transportation.

<h2>How the recession in Germany will impact India</h2>

The recession in the German economy is definitely going to hit Indian exports, particularly in sectors such as apparels, footwear, and leather goods destined for the European Union's largest economy.&nbsp;

Exporters are expressing concerns about the repercussions this downturn will have on Indian exports, not only to Germany but also to other European countries experiencing a recessionary period.&nbsp;

Sharad Kumar Saraf, Chairman of Technocraft Industries and a Mumbai-based exporter, was quoted by Indian Express as saying that the long-term recession in Germany will likely result in a decline in Indian exports, with leather products, chemicals, and light engineering items being the most affected sectors.

In the 2022-23 fiscal year, India's exports to Germany amounted to USD 10.2 billion, and this figure is expected to dip as a result of the ongoing recession.

Watch:&nbsp;German economy shrinks over the last 6 months

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Ajay Srivastava, the co-founder of the economic think-tank GTRI, warned that the recession would adversely impact India's exports worth at least $2 billion, including smartphones, apparels, footwear and leather goods. During a recession, daily-use products are typically the first to be affected. Furthermore, the soon-to-be-imposed carbon border tax by Germany will also impact the export of iron and steel products.

Narendra Goenka, Chairman of the Apparel Export Promotion Council (AEPC), raised concerns about the recession in Germany affecting order flows into India. He predicted that business would decline by a minimum of 10 per cent, leading to a definite impact on investment flows from Germany.&nbsp;

However, Saraf mentioned that German investments in India may not be significantly affected, as German companies often seek cheaper alternatives during recessionary conditions.

<a href="https://www.wionews.com/business-economy/worlds-fourth-largest-economy-germany-enters-recession-596490">Also Read |&nbsp;Germany, world’s fourth-largest economy, enters recession</a>

Yogesh Gupta, Regional Chairman of the Federation of Indian Export Organizations (FIEO) in the Eastern Region, noted that Germany serves as the primary growth driver for the European Union. Therefore, a recession in Germany is expected to have an impact on purchasing activities within the European nation. However, Gupta cautioned that it is still too early to accurately determine the extent of the recession's impact on Indian exports.

<h2>What does India export to Germany?</h2>

In the 2022-23 fiscal year, India's exports to Germany spanned several sectors, from machinery and electronics to footwear and auto components. India’s exports to Germany included machinery worth $1.5 billion, electronics worth $ 1.2 billion, smartphones worth $458 million, apparels worth $990 million, organic chemicals worth $822 million, footwear worth $332 million, leather goods worth $305 million, articles of iron and steel worth $474 million, and auto components worth $406 million. So, India’s exports to EU nations could take a hit for the aforementioned sectors.&nbsp; 
&nbsp;

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&nbsp;

Germany, long touted as Europe’s growth engine and the world’s fourth largest economy, entered recession as its Gross Domestic Product fell 0.3 per cent in the first quarter of 2023.

Germany, long touted as Europe’s growth engine and the world’s fourth largest economy, entered recession as its Gross Domestic Product fell 0.3 per cent in the first quarter of 2023. This follows a decline of 0.5 per cent in the fourth quarter of the last year, effectively pushing the country into a recession. Germany’s economy minister Robert Habeck blamed the country’s previous high dependency on Russian gas for the prevailing economic crisis. Speaking at an event in Berlin on Thursday, Habeck said, “We're fighting our way out of this crisis." While two consecutive quarters of contraction fulfil the common definition of a recession, economists on the euro area business cycle dating committee employ a broader range of data, including employment figures, to assess economic downturns. Why is Germany facing an economic crisis? Germany is the worst-performing economy among G7 nations. Experts believe massive inflation has paralysed consumption growth in the country, which coupled with the persistent energy crisis has spelt doom for the economy. Germany’s Federal Statistical Office noted, “The persistence of high price increases continued to be a burden on the German economy at the start of the year.” “This was particularly reflected in household final consumption expenditure, which was down 1.2% in the first quarter of 2023,” it added. The country has also failed to sustainably serve the energy needs of its industrial sector, which is designed to produce the best output only when provided with Russian fuel. The political and business class of the country has failed to accommodate new challenges even as Russian fuel supplies remain throttled. To solve the energy crisis, Berlin resorted to imposing a power price cap for some energy-intensive industries. However, that is also poised to further exacerbate the country’s inflation problem. It is believed that the subsidies in fuel prices to some industries could cost taxpayers as much as $32 billion in the next seven years. The country has already shut down its nuclear power reactors, and plans to shut down its coal-fired power plants by 2030; however, its transition to cleaner modes of energy production has been very slow. Although the Scholz administration has devised plans to install 625 million solar panels and 19,000 wind turbines by 2030, it fails to cope with the rising demand since almost everything in the country is being electrified, from heating to transportation. How the recession in Germany will impact India The recession in the German economy is definitely going to hit Indian exports, particularly in sectors such as apparels, footwear, and leather goods destined for the European Union's largest economy. Exporters are expressing concerns about the repercussions this downturn will have on Indian exports, not only to Germany but also to other European countries experiencing a recessionary period. Sharad Kumar Saraf, Chairman of Technocraft Industries and a Mumbai-based exporter, was quoted by Indian Express as saying that the long-term recession in Germany will likely result in a decline in Indian exports, with leather products, chemicals, and light engineering items being the most affected sectors. In the 2022-23 fiscal year, India's exports to Germany amounted to USD 10.2 billion, and this figure is expected to dip as a result of the ongoing recession. Watch: German economy shrinks over the last 6 months × Ajay Srivastava, the co-founder of the economic think-tank GTRI, warned that the recession would adversely impact India's exports worth at least $2 billion, including smartphones, apparels, footwear and leather goods. During a recession, daily-use products are typically the first to be affected. Furthermore, the soon-to-be-imposed carbon border tax by Germany will also impact the export of iron and steel products. Narendra Goenka, Chairman of the Apparel Export Promotion Council (AEPC), raised concerns about the recession in Germany affecting order flows into India. He predicted that business would decline by a minimum of 10 per cent, leading to a definite impact on investment flows from Germany. However, Saraf mentioned that German investments in India may not be significantly affected, as German companies often seek cheaper alternatives during recessionary conditions. Also Read | Germany, world’s fourth-largest economy, enters recession Yogesh Gupta, Regional Chairman of the Federation of Indian Export Organizations (FIEO) in the Eastern Region, noted that Germany serves as the primary growth driver for the European Union. Therefore, a recession in Germany is expected to have an impact on purchasing activities within the European nation. However, Gupta cautioned that it is still too early to accurately determine the extent of the recession's impact on Indian exports. What does India export to Germany? In the 2022-23 fiscal year, India's exports to Germany spanned several sectors, from machinery and electronics to footwear and auto components. India’s exports to Germany included machinery worth $1.5 billion, electronics worth $ 1.2 billion, smartphones worth $458 million, apparels worth $990 million, organic chemicals worth $822 million, footwear worth $332 million, leather goods worth $305 million, articles of iron and steel worth $474 million, and auto components worth $406 million. So, India’s exports to EU nations could take a hit for the aforementioned sectors. WATCH WION LIVE HERE ×

Explained | How recession in Germany will impact the Indian economy

US credit rating agency Moody's on Tuesday gave a thumbs up to India's growth story, estimating that India's Gross Domestic Product already crossed the $3.5 trillion-mark in 2022.

Moody's added&nbsp;that India will be the fastest-growing G-20 economy for the next few years, largely because of a young workforce, increasing urbanisation, and rising government spending on infrastructure.&nbsp;

Interestingly, India holds the presidency of the G20 group of nations this year.&nbsp;

But Moody's also highlighted several red flags for India's economy. The ratings agency said bureaucracy could slow approval processes to set up businesses, which would hamper economic growth.

Moody's said that a slacking bureaucracy may drive away foreign investors to other Asian destinations like Indonesia and Vietnam. "India's higher bureaucracy in decision-making will reduce its attractiveness as a destination for foreign direct investment, especially when competing with other developing economies in the region," Moody's Investors Service said.

The credit rating agency added that limited liberalisation in business regulations could harm India's growth prospects too. "Lack of certainty around the amount of time needed for land acquisition approvals, regulatory clearances, obtaining licenses and setting up businesses can materially prolong project gestation," the credit rating agency said.&nbsp;

However, Moody's also took note of the Indian government's efforts to reform the economy.

The US credit rating agency said that recent reforms like making labour laws flexible, raising the agricultural sector's efficiency, expanding investment in infrastructure, incentivising investment in manufacturing, and strengthening the financial sector will help India's economy. But Moody's added that effective implementation of the reforms will be key.&nbsp;

The Moody's projection came just a day after India's Reserve Bank of India said that the country's growth trajectory was steadfast, supported by a robust banking sector and a steadfast commitment to financial stability.

In its latest assessment cited by Reuters, the Reserve Bank of India revealed that India's economy has sustained the growth momentum witnessed in the previous fiscal quarter of 2022-23.

Over a week ago, the UN had projected&nbsp;that the Indian economy would&nbsp;grow by 6.7 per cent in 2024, emerging as one of the few bright spots.&nbsp;

US credit rating agency Moody's on Tuesday gave a thumbs up to India's growth story, estimating that India's Gross Domestic Product already crossed the $3.5 trillion-mark in 2022.

US credit rating agency Moody's on Tuesday gave a thumbs up to India's growth story, estimating that India's Gross Domestic Product already crossed the $3.5 trillion-mark in 2022. Moody's added that India will be the fastest-growing G-20 economy for the next few years, largely because of a young workforce, increasing urbanisation, and rising government spending on infrastructure. Interestingly, India holds the presidency of the G20 group of nations this year. But Moody's also highlighted several red flags for India's economy. The ratings agency said bureaucracy could slow approval processes to set up businesses, which would hamper economic growth. Moody's said that a slacking bureaucracy may drive away foreign investors to other Asian destinations like Indonesia and Vietnam. "India's higher bureaucracy in decision-making will reduce its attractiveness as a destination for foreign direct investment, especially when competing with other developing economies in the region," Moody's Investors Service said. The credit rating agency added that limited liberalisation in business regulations could harm India's growth prospects too. "Lack of certainty around the amount of time needed for land acquisition approvals, regulatory clearances, obtaining licenses and setting up businesses can materially prolong project gestation," the credit rating agency said. However, Moody's also took note of the Indian government's efforts to reform the economy. The US credit rating agency said that recent reforms like making labour laws flexible, raising the agricultural sector's efficiency, expanding investment in infrastructure, incentivising investment in manufacturing, and strengthening the financial sector will help India's economy. But Moody's added that effective implementation of the reforms will be key. The Moody's projection came just a day after India's Reserve Bank of India said that the country's growth trajectory was steadfast, supported by a robust banking sector and a steadfast commitment to financial stability. In its latest assessment cited by Reuters, the Reserve Bank of India revealed that India's economy has sustained the growth momentum witnessed in the previous fiscal quarter of 2022-23. Over a week ago, the UN had projected that the Indian economy would grow by 6.7 per cent in 2024, emerging as one of the few bright spots.

India to remain fastest growing G20 economy for the next few years: Moody's

In a sudden development, the Reserve Bank of India on Friday announced the withdrawal of 2,000-rupee&nbsp;notes. India's central bank said that the move is a part of its 'clean note policy', which entails the withdrawal of soiled notes in circulation. People in India can deposit their 2,000-rupee notes with banks until September 30, 2023, starting Tuesday.

<blockquote class="twitter-tweet">
₹2000 Denomination Banknotes – Withdrawal from Circulation; Will continue as Legal Tender<a href="https://t.co/2jjqSeDkSk">https://t.co/2jjqSeDkSk</a>
— ReserveBankOfIndia (@RBI) <a href="https://twitter.com/RBI/status/1659548576010354690?ref_src=twsrc%5Etfw">May 19, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

&nbsp;

However, the latest move by India's central bank is unlikely to have the same impact as the 2016 demonentisation, when the Indian economy came to a grinding halt after about 86 percent of the cash in circulation became invalid overnight.&nbsp;&nbsp;This time around, however, a number of factors may help cushion the impact on the Indian economy. &nbsp;

A temporary measure&nbsp;

First things first. The 2,000-rupee note never really took off in the market. Introduced after the 2016 demonetisation, which invalidated 500-rupee and 1,000-rupee notes, the 2000-rupee note has always had a sense of 'temporariness' attached to it. &nbsp;

Just weeks after the 2016 demonetisation, S Gurumurthy, who later became a Board Member of RBI, had indicated that the 2000-rupee note was a “bridge” to cover the gap in cash flow after the withdrawal of 500-rupee and 1000-rupee notes.&nbsp;

Gurumurthy had hinted about its eventual withdrawal during an interview with an Indian news channel in December 2016: "…Banks will be told that when you get Rs 2,000 notes, you don't return them. Slowly, banks will accumulate Rs 2,000 notes and replace them with lower denomination.” &nbsp;

According to the RBI, 89 percent of the notes were issued before March 2017 and are well past their estimated life span of 4-5 years. The printing of 2,000-rupee notes ceased in 2018-19, clearly pointing to its decline after the new 500-rupee notes and other denominations became adequately available. &nbsp;

In fact, speculation about the future of the 2,000-rupee note began surfacing in 2020, when several banks started to re-calibrate their ATMs to accommodate more 500-rupee notes. &nbsp;

Not a popular denomination&nbsp;

The 2021-22 RBI report shows that the 100-rupee note remains the most-preferred denomination in day-to-day cash transactions. On the other hand, the report showed that 500-rupee note is the most widely-used currency, constituting nearly 35 percent of the total cash volume. &nbsp;

Clearly, 2,000-rupee notes are not the preferred choice for daily transactions. The 2,000-rupee note has limited use as a medium of exchange as the denomination is too high to be used for daily transactions like buying groceries. It comes as no surprise that the total number of 2,000-rupee notes in circulation stood at just 214 crores in 2022, down from 273 crores in 2020. That’s less than 2 percent of the total cash volume. &nbsp;

The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore (approximately $82 billion in 2023) in March 2018 to Rs 3.62 lakh crore (about $44 billion in 2023) in March 2023. When expressed in the form of percentages, its value in the total notes in circulation has fallen from 37.3 at its peak in March 2018 to just about 11 percent in March 2023. &nbsp;

There is also growing anecdotal evidence that the 2,000-rupee note is mostly used for storing 'black money', a term used in India to mean unaccounted income. Supporters of the RBI’s latest move have linked it to the fight against corruption. Former RBI deputy governor Rama Subramaniam Gandhi has called the withdrawal a standard practice, telling an Indian business portal&nbsp;that it will “discourage black money accumulation”. &nbsp;

To make matters worse, the latest RBI annual report shows a 54&nbsp;percent rise in counterfeits of 2,000-rupee notes between 2021 and 2022.&nbsp;

Rise of digital payments&nbsp;

When demonetisation was announced in November 2016, digital payments were in their infancy. In October that year, there were over 710 million digital transactions. One of the stated goals of the demonetisation drive was to promote a ‘less cash economy’ through online transactions. &nbsp;

Six months after demonetisation, digital transactions rose to over 1.11 billion and has been rising ever since.

Digital payments, especially via India’s flagship Unified Payment Interface (UPI) system, have grown from 0.10 million transactions worth about $6 million in October 2016 to nearly 8.9 billion transactions worth $172.4 billion in April 2023. &nbsp;

E-commerce has been playing a huge role in accelerating&nbsp;the push towards UPI payments. According to the '2023 Global Payments Report', cash's transaction value is expected to fall by 34 percent by 2026, while UPI transaction value is expected to rise by 88 percent by 2026.&nbsp;

While cash is still the king in India, it may soon lose its crown. According to UK-based data analytics firm GlobalData, the volume of cash in transaction declined from 90 percent in 2017 to about 59 percent in 2021.

There is no direct link between the withdrawal of 2,000-rupee notes and the rising online payments. But it will be safe to assume that the ease of transactions on UPI and other digital payment platforms&nbsp;nullify&nbsp;the need to use the 2,000-rupee note. In short, the note’s weakness as a medium of exchange became its biggest undoing. &nbsp;

In a sudden development, the Reserve Bank of India on Friday announced the withdrawal of 2,000-rupee notes. India's central bank said that the move is a part of its 'clean note policy', which entails the withdrawal of soiled notes in circulation.

In a sudden development, the Reserve Bank of India on Friday announced the withdrawal of 2,000-rupee notes. India's central bank said that the move is a part of its 'clean note policy', which entails the withdrawal of soiled notes in circulation. People in India can deposit their 2,000-rupee notes with banks until September 30, 2023, starting Tuesday. ₹2000 Denomination Banknotes – Withdrawal from Circulation; Will continue as Legal Tenderhttps://t.co/2jjqSeDkSk — ReserveBankOfIndia (@RBI) May 19, 2023 However, the latest move by India's central bank is unlikely to have the same impact as the 2016 demonentisation, when the Indian economy came to a grinding halt after about 86 percent of the cash in circulation became invalid overnight. This time around, however, a number of factors may help cushion the impact on the Indian economy. A temporary measure First things first. The 2,000-rupee note never really took off in the market. Introduced after the 2016 demonetisation, which invalidated 500-rupee and 1,000-rupee notes, the 2000-rupee note has always had a sense of 'temporariness' attached to it. Just weeks after the 2016 demonetisation, S Gurumurthy, who later became a Board Member of RBI, had indicated that the 2000-rupee note was a “bridge” to cover the gap in cash flow after the withdrawal of 500-rupee and 1000-rupee notes. Gurumurthy had hinted about its eventual withdrawal during an interview with an Indian news channel in December 2016: "…Banks will be told that when you get Rs 2,000 notes, you don't return them. Slowly, banks will accumulate Rs 2,000 notes and replace them with lower denomination.” According to the RBI, 89 percent of the notes were issued before March 2017 and are well past their estimated life span of 4-5 years. The printing of 2,000-rupee notes ceased in 2018-19, clearly pointing to its decline after the new 500-rupee notes and other denominations became adequately available. In fact, speculation about the future of the 2,000-rupee note began surfacing in 2020, when several banks started to re-calibrate their ATMs to accommodate more 500-rupee notes. Not a popular denomination The 2021-22 RBI report shows that the 100-rupee note remains the most-preferred denomination in day-to-day cash transactions. On the other hand, the report showed that 500-rupee note is the most widely-used currency, constituting nearly 35 percent of the total cash volume. Clearly, 2,000-rupee notes are not the preferred choice for daily transactions. The 2,000-rupee note has limited use as a medium of exchange as the denomination is too high to be used for daily transactions like buying groceries. It comes as no surprise that the total number of 2,000-rupee notes in circulation stood at just 214 crores in 2022, down from 273 crores in 2020. That’s less than 2 percent of the total cash volume. The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore (approximately $82 billion in 2023) in March 2018 to Rs 3.62 lakh crore (about $44 billion in 2023) in March 2023. When expressed in the form of percentages, its value in the total notes in circulation has fallen from 37.3 at its peak in March 2018 to just about 11 percent in March 2023. There is also growing anecdotal evidence that the 2,000-rupee note is mostly used for storing 'black money', a term used in India to mean unaccounted income. Supporters of the RBI’s latest move have linked it to the fight against corruption. Former RBI deputy governor Rama Subramaniam Gandhi has called the withdrawal a standard practice, telling an Indian business portal that it will “discourage black money accumulation”. To make matters worse, the latest RBI annual report shows a 54 percent rise in counterfeits of 2,000-rupee notes between 2021 and 2022. Rise of digital payments When demonetisation was announced in November 2016, digital payments were in their infancy. In October that year, there were over 710 million digital transactions. One of the stated goals of the demonetisation drive was to promote a ‘less cash economy’ through online transactions. Six months after demonetisation, digital transactions rose to over 1.11 billion and has been rising ever since. Digital payments, especially via India’s flagship Unified Payment Interface (UPI) system, have grown from 0.10 million transactions worth about $6 million in October 2016 to nearly 8.9 billion transactions worth $172.4 billion in April 2023. E-commerce has been playing a huge role in accelerating the push towards UPI payments. According to the '2023 Global Payments Report', cash's transaction value is expected to fall by 34 percent by 2026, while UPI transaction value is expected to rise by 88 percent by 2026. While cash is still the king in India, it may soon lose its crown. According to UK-based data analytics firm GlobalData, the volume of cash in transaction declined from 90 percent in 2017 to about 59 percent in 2021. There is no direct link between the withdrawal of 2,000-rupee notes and the rising online payments. But it will be safe to assume that the ease of transactions on UPI and other digital payment platforms nullify the need to use the 2,000-rupee note. In short, the note’s weakness as a medium of exchange became its biggest undoing.

India withdraws 2,000-rupee notes: Why the decision won’t have major impact on economy

According to a recent UN estimate, the Indian economy is predicted to grow by 6.7% in 2024, emerging as one of the few bright spots while most nations across the world have entered a slow recession. Watch to know more in this exclusive interview with Ambreesh Baliga.

Indian economy expected to grow 6.7 per cent in 2024, says UN report

While most countries across the globe have entered a slow recession, the Indian economy is expected to grow by 6.7 per cent in the calendar year 2024, emerging as one of the few bright spots, a new UN report has revealed. The World Economic Situation and Prospects as of mid-2023 report released on Tuesday said India's economy is expected to expand by 5.8 per cent in 2023 and 6.7 per cent in 2024.

India a bright spot in world economy, India to grow 6.7% in 2024 says UN

Iphone sales for quarter one have put Apple in a sweet spot despite concerns from analysts. This was held in parts by Apple's efforts to find new markets for future growth. Among those top bets, is India. For more, watch the video.

Apple in a sweet spot to cash-in India's growth?

Apple's recent iPhone sales figures show that the company is doing well, with sales buoyed in part by the company's efforts to find new markets for future growth.

One of the top markets that Apple is targeting is India, which has the world's fastest-growing major economy. However, a recent report from the International Data Corporation shows that 31 million smartphones were shipped in India in the first quarter of 2023, which is a 16% decrease from the previous year and the lowest first-quarter shipments in four years.&nbsp;

The report attributes the sluggish demand to rising living costs and a weak global economic outlook. But while budget smartphone makers such as Realme and Xiaomi are struggling to sell their phones, Apple is growing its share of the market. This trend reveals some interesting insights into the state of the Indian economy.

For example, the disappointing sales in the budget category suggest that India's poor may be putting off their smartphone purchases due to eroding household savings, while the rise in iPhone sales volumes suggests a growing middle class with a higher disposable income.

Consumer trends from India point towards a visible demand for high-end automobiles, mobile phones, and other luxury items, while demand for mass consumption items such as budget motorcycles shows that rural households are feeling the squeeze.

The Indian economy grew at 4.1 percent&nbsp;in the last quarter of 2022-2023, indicating that a large portion of the country's citizens are facing economic difficulties due to what economists call a K-shaped recovery.

For now, it seems that Apple is not too worried, as their target is the growing Indian middle class and the rising affluent who seem to have no issues taking a bite of Apple's ambitious plan.

While budget smartphone makers struggle to sell their phones in a tough economic climate, Apple's "premiumisation" strategy appears to be working. The wealth disparity highlighted by the smartphone sales figures, nevertheless, is a cause for concern. Now, it remains to be seen how the Indian economy will evolve in the coming years.

Apple's recent iPhone sales figures show that the company is doing well, with sales buoyed in part by the company's efforts to find new markets for future growth.

Apple's recent iPhone sales figures show that the company is doing well, with sales buoyed in part by the company's efforts to find new markets for future growth. One of the top markets that Apple is targeting is India, which has the world's fastest-growing major economy. However, a recent report from the International Data Corporation shows that 31 million smartphones were shipped in India in the first quarter of 2023, which is a 16% decrease from the previous year and the lowest first-quarter shipments in four years. The report attributes the sluggish demand to rising living costs and a weak global economic outlook. But while budget smartphone makers such as Realme and Xiaomi are struggling to sell their phones, Apple is growing its share of the market. This trend reveals some interesting insights into the state of the Indian economy. For example, the disappointing sales in the budget category suggest that India's poor may be putting off their smartphone purchases due to eroding household savings, while the rise in iPhone sales volumes suggests a growing middle class with a higher disposable income. Consumer trends from India point towards a visible demand for high-end automobiles, mobile phones, and other luxury items, while demand for mass consumption items such as budget motorcycles shows that rural households are feeling the squeeze. The Indian economy grew at 4.1 percent in the last quarter of 2022-2023, indicating that a large portion of the country's citizens are facing economic difficulties due to what economists call a K-shaped recovery. For now, it seems that Apple is not too worried, as their target is the growing Indian middle class and the rising affluent who seem to have no issues taking a bite of Apple's ambitious plan. While budget smartphone makers struggle to sell their phones in a tough economic climate, Apple's "premiumisation" strategy appears to be working. The wealth disparity highlighted by the smartphone sales figures, nevertheless, is a cause for concern. Now, it remains to be seen how the Indian economy will evolve in the coming years.

What iPhone sales tell us about India's economy

Indians or NRIs’ as we call them have given Indians yet another Milestone to cherish in our eyes sent over a hundred billion dollars to India last year. A World Bank report showed India became the first country to reach the 100 billion dollar landmark in money inflow but what does it mean for India and its economy here's a report to tell you more.

Remittances into India breach $100 billion mark

Earlier today (January 31), the Indian government released the Economic Survey 2022-23, ahead of the Union Budget. The document was tabled by Finance Minister Nirmala Sitharaman a day before she presents the budget for the upcoming fiscal year. The pre-budget document was released following Indian President Droupadi Murmu’s address to the joint sitting of the Houses of Parliament.&nbsp;

What is the Economic Survey?

The Economic Survey is a detailed report of the national economy&nbsp;at the end of a financial year. The pre-budget document will be released by the Indian government’s Chief Economic Adviser (CEA), V Anantha Nageswaran and gives an insight into the state of the country’s economy as well as the outlook for the upcoming year.&nbsp;

It is prepared by the Economic Division of the Department of Economic Affairs which is a part of the&nbsp;ministry of finance and formulated under the supervision of the CEA. The Economic Survey also&nbsp;highlights major developments in the programmes and government policy initiatives at the end of&nbsp;the financial year.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/economic-survey-2022-23-live-nirmala-sitharaman-to-table-the-pre-budget-document-today-557421">Economic Survey LIVE | President Murmu addresses Joint Session of Parliament</a>

When was it first presented?

The first Economic Survey was presented in 1950-51&nbsp;along with the Union&nbsp;Budget,&nbsp;however, since 1964 the survey&nbsp;has&nbsp;been separated.&nbsp;

History and changes to the Economic Survey

Previously, the survey was presented in just one volume with chapters dedicated to different key sectors of the economy including agriculture, manufacturing and services. While there were also sections for key policy areas which included employment, inflation, and so on. Notably, this volume also carries a detailed statistical abstract.&nbsp;

ALSO WATCH |&nbsp;<a href="https://www.wionews.com/videos/india-economic-survey-to-show-65-gdp-growth-likely-in-2023-24-557443">India: Economic survey to show 6.5% GDP growth likely in 2023-24</a> 
 
For nearly a decade between 2010-11 and 2020-21, the pre-budget document was presented in two volumes which also included an intellectual imprint of the CEA and is said to deal with major issues and debates facing the economy. Notably, in 2016-17&nbsp;the economic survey did not include the detailed financial statistics of the government of India which is usually a part of the pre-budget document.&nbsp;

Last year’s central theme of the economic survey was the ‘Agile Approach’ that emphasised India’s economic response to the COVID-19 pandemic. It was also based on feedback loops, real-time monitoring of actual outcomes, flexible responses, safety-net buffers, and so on, as per the preface of the document.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/india-economic-survey-likely-to-peg-2023-24-growth-at-slowest-in-three-years-source-557450">India economic survey likely to peg 2023-24 growth at slowest in three years: Source</a> 
 
Why is it important?

Notably, this year's&nbsp;Economic Survey and Union Budget&nbsp;will be the last&nbsp;of Prime Minister Narendra Modi's government&nbsp;in its second term before the next Lok Sabha election in 2024. Furthermore, the findings of the upcoming survey will show the true extent of recovery in the Indian economy.&nbsp;

(With inputs from agencies)&nbsp; 
 
&nbsp;

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Earlier today (January 31), the Indian government released the Economic Survey 2022-23, ahead of the Union Budget. The document was tabled by Finance Minister Nirmala Sitharaman a day before she presents the budget for the upcoming fiscal year.

Earlier today (January 31), the Indian government released the Economic Survey 2022-23, ahead of the Union Budget. The document was tabled by Finance Minister Nirmala Sitharaman a day before she presents the budget for the upcoming fiscal year. The pre-budget document was released following Indian President Droupadi Murmu’s address to the joint sitting of the Houses of Parliament. What is the Economic Survey? The Economic Survey is a detailed report of the national economy at the end of a financial year. The pre-budget document will be released by the Indian government’s Chief Economic Adviser (CEA), V Anantha Nageswaran and gives an insight into the state of the country’s economy as well as the outlook for the upcoming year. It is prepared by the Economic Division of the Department of Economic Affairs which is a part of the ministry of finance and formulated under the supervision of the CEA. The Economic Survey also highlights major developments in the programmes and government policy initiatives at the end of the financial year. ALSO READ | Economic Survey LIVE | President Murmu addresses Joint Session of Parliament When was it first presented? The first Economic Survey was presented in 1950-51 along with the Union Budget, however, since 1964 the survey has been separated. History and changes to the Economic Survey Previously, the survey was presented in just one volume with chapters dedicated to different key sectors of the economy including agriculture, manufacturing and services. While there were also sections for key policy areas which included employment, inflation, and so on. Notably, this volume also carries a detailed statistical abstract. ALSO WATCH | India: Economic survey to show 6.5% GDP growth likely in 2023-24 For nearly a decade between 2010-11 and 2020-21, the pre-budget document was presented in two volumes which also included an intellectual imprint of the CEA and is said to deal with major issues and debates facing the economy. Notably, in 2016-17 the economic survey did not include the detailed financial statistics of the government of India which is usually a part of the pre-budget document. Last year’s central theme of the economic survey was the ‘Agile Approach’ that emphasised India’s economic response to the COVID-19 pandemic. It was also based on feedback loops, real-time monitoring of actual outcomes, flexible responses, safety-net buffers, and so on, as per the preface of the document. ALSO READ | India economic survey likely to peg 2023-24 growth at slowest in three years: Source Why is it important? Notably, this year's Economic Survey and Union Budget will be the last of Prime Minister Narendra Modi's government in its second term before the next Lok Sabha election in 2024. Furthermore, the findings of the upcoming survey will show the true extent of recovery in the Indian economy. (With inputs from agencies) 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.

Explained: What is India's Economic Survey?

It is now no breaking news that India has surpassed the UK to become the fifth-largest economy in the world. It was only a matter of time before it happened.

And the time has finally come. Even after the devastating effects of the Covid-19 pandemic, India has seen a rise in its economy and has managed to bag the 5th spot, this time, leaving its colonial masters behind.

As stated by the Ministry of Statistics and Programme Implementation, the real GDP prices in the 1st quarter of 2022-23 have been estimated to attain a level of ₹36.85 lakh crore, which clearly shows a growth of 13.5 per cent.

The nominal GDP in the 1st quarter of 2022-23 is estimated at ₹64.95 lakh crore, showing a growth of 26.7 per cent. The nominal GDP at the June rupee-dollar exchange rate comes to around $823 billion.&nbsp;

The fiscal deficit of the government stood at 20.5% of the full-year target, which was 21.3% in the 1st quarter of the last financial year, which indicates an improvement.

India surpassed the UK's GDP in the January-March quarter itself. During that quarter India’s GDP was $864 billion compared to the $813 billion of the UK. This data comes from various departments and ministries and have been used as valuable sources of input for the estimates.

ALSO READ|&nbsp;<a href="https://www.wionews.com/videos/india-to-become-10-trillion-economy-by-2035-forecasts-cebr-546858">India's GDP jumped 13.5% in June quarter on pandemic rebound: Official figures</a>

Various indicators like the Index of Industrial Production (IIP), the financial performance of listed companies in the Private Corporate Sector based on available quarterly financial results for these companies, Crop Production Targets for 2022-23, Net Tonne Kilometers and Passenger Kilometers for Railways, Passenger and Cargo traffic handled by Civil Aviation, Cargo traffic handled at Major Sea Ports, Fish Production, Sales of Commercial Vehicles, Bank Deposits &amp; Credits, Accounts of Central &amp; State Governments, etc. have been used for the sector-wise estimates.&nbsp;

In its April World GDP Outlook, the International Monetary Fund (IMF) placed India's GDP in 2021 at $3.18 trillion just a notch below the UK’s GDP of $3.19 trillion. The IMF had also predicted that India would surpass the UK’s economy in 2022. As per the estimates in the same report, India would be a $3.54 trillion economy at the end of 2022 compared to the UK’s $3.38 trillion.&nbsp;

The reason why both India's and the UK's GDP have decreased in terms of the dollar is that since March, the Indian rupee and the UK pound have weakened against the US dollar. The main reason for this fall in the rupee is the extreme rise in crude oil prices, foreign investors withdrawing money from the Indian market and the repetitive environment of domestic business.

According to provisional stock market data, foreign institutional investors were net sellers in the capital market. In June, Foreign Institutional Investors (FII) withdrew a sum of ₹50,203 crores from the stock market.

WATCH|&nbsp;India to become $ 10 trillion economy by 2035, forecasts CEBR

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India's economy has been growing at a very fast rate in both real and nominal rates as compared to the UK over a long period. India’s economy in terms of the dollar has grown at a rate of 5.71% Compound Annual Growth Rate over the past 10 years.

During the same period, the UK’s GDP has grown at a meagre 1.76%. And as India is likely to maintain a similar gap in GDP growth rate over the UK, the gap between the size of the two countries would only become bigger with India becoming a $5 trillion economy much before the UK.

According to IMF's projections, India is likely to become a $5 trillion economy by 2026 whereas the UK would be on the back foot at $4.35 trillion.

Now only the US, China, Japan and Germany are ahead of India in terms of the size of the economy. Germany’s economy was $4.2 trillion at the end of 2021. India is likely to surpass Germany and become the fourth-largest economy in 2027, according to IMF estimates.&nbsp;

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

It is now no breaking news that India has surpassed the UK to become the fifth-largest economy in the world. It was only a matter of time before it happened. And the time has finally come.

It is now no breaking news that India has surpassed the UK to become the fifth-largest economy in the world. It was only a matter of time before it happened. And the time has finally come. Even after the devastating effects of the Covid-19 pandemic, India has seen a rise in its economy and has managed to bag the 5th spot, this time, leaving its colonial masters behind. As stated by the Ministry of Statistics and Programme Implementation, the real GDP prices in the 1st quarter of 2022-23 have been estimated to attain a level of ₹36.85 lakh crore, which clearly shows a growth of 13.5 per cent. The nominal GDP in the 1st quarter of 2022-23 is estimated at ₹64.95 lakh crore, showing a growth of 26.7 per cent. The nominal GDP at the June rupee-dollar exchange rate comes to around $823 billion. The fiscal deficit of the government stood at 20.5% of the full-year target, which was 21.3% in the 1st quarter of the last financial year, which indicates an improvement. India surpassed the UK's GDP in the January-March quarter itself. During that quarter India’s GDP was $864 billion compared to the $813 billion of the UK. This data comes from various departments and ministries and have been used as valuable sources of input for the estimates. ALSO READ| India's GDP jumped 13.5% in June quarter on pandemic rebound: Official figures Various indicators like the Index of Industrial Production (IIP), the financial performance of listed companies in the Private Corporate Sector based on available quarterly financial results for these companies, Crop Production Targets for 2022-23, Net Tonne Kilometers and Passenger Kilometers for Railways, Passenger and Cargo traffic handled by Civil Aviation, Cargo traffic handled at Major Sea Ports, Fish Production, Sales of Commercial Vehicles, Bank Deposits & Credits, Accounts of Central & State Governments, etc. have been used for the sector-wise estimates. In its April World GDP Outlook, the International Monetary Fund (IMF) placed India's GDP in 2021 at $3.18 trillion just a notch below the UK’s GDP of $3.19 trillion. The IMF had also predicted that India would surpass the UK’s economy in 2022. As per the estimates in the same report, India would be a $3.54 trillion economy at the end of 2022 compared to the UK’s $3.38 trillion. The reason why both India's and the UK's GDP have decreased in terms of the dollar is that since March, the Indian rupee and the UK pound have weakened against the US dollar. The main reason for this fall in the rupee is the extreme rise in crude oil prices, foreign investors withdrawing money from the Indian market and the repetitive environment of domestic business. According to provisional stock market data, foreign institutional investors were net sellers in the capital market. In June, Foreign Institutional Investors (FII) withdrew a sum of ₹50,203 crores from the stock market. WATCH| India to become $ 10 trillion economy by 2035, forecasts CEBR India's economy has been growing at a very fast rate in both real and nominal rates as compared to the UK over a long period. India’s economy in terms of the dollar has grown at a rate of 5.71% Compound Annual Growth Rate over the past 10 years. During the same period, the UK’s GDP has grown at a meagre 1.76%. And as India is likely to maintain a similar gap in GDP growth rate over the UK, the gap between the size of the two countries would only become bigger with India becoming a $5 trillion economy much before the UK. According to IMF's projections, India is likely to become a $5 trillion economy by 2026 whereas the UK would be on the back foot at $4.35 trillion. Now only the US, China, Japan and Germany are ahead of India in terms of the size of the economy. Germany’s economy was $4.2 trillion at the end of 2021. India is likely to surpass Germany and become the fourth-largest economy in 2027, according to IMF estimates. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

Indian Economy: Current state and the road ahead

The US services industry activity has unexpectedly picked up last month. Economy continues to create jobs last month and wage growth is accelerating.

World Business Watch | US services sector activity unexpectedly accelerates in November

The International Monetary Fund said on Sunday that the global economic outlook is even gloomier than projected last month. It cited a steady worsening in purchasing manager surveys in recent months

WION Business News | Global economic outlook getting `gloomier`, says IMF

The biggest festival season of Diwali is over and the data has shown Indian consumers were grabbing up everything from cars, houses, TV sets to travel and jewelry.

WION Business News | India's monthly indirect tax collection witnessed jump post Diwali season

The ‘Make in India’ campaign to boost manufacturing in the country has completed eight years on September 25, the government said. India is also on course to attract at least $100 billion in Foreign Direct Investment (FDI) in the current fiscal year, which the government has attributed to economic reforms and ease of doing business in the country.&nbsp;

“Make in India has substantial accomplishments across 27 sectors. These include strategic sectors of manufacturing and services as well”, the commerce and industry ministry said on Saturday in a statement.&nbsp;

In 2021-22, India also received the “highest-ever” FDI of $83.6 billion. “This FDI has come from 101 countries, and invested across 31 union territories and states and 57 sectors in the country.” According to the government, FDI inflows were at $45.15 billion in 2014-15 and have been increasing ever since reaching a record high of eight years.&nbsp;

The statement also said New Delhi has installed a more liberal and transparent policy to attract FDI, adding that currently most of the sectors in the Indian economy are open to FDI via the automatic route. The automatic route is one of the ways that foreign investments can be made in India, the other being the government route. Under the automatic route, the investors do not require, or need lesser permissions from the Reserve Bank of India (RBI) or from the Government of India to invest in various sectors of the economy.&nbsp;

The reforms also included the liberalisation of certain guidelines and regulations to reduce unnecessary compliance burdens and bring down the cost of doing business in India, said the statement. Furthermore, in line with the ‘Make in India’ initiative and to reduce the foreign import of toys while also enhancing the country’s production of toys domestically the Basic Customs Duty on the import of toys was increased from 20% to 60%.&nbsp; 
 
ALSO READ:&nbsp;<a href="https://www.wionews.com/india-news/indian-rupee-hits-new-low-slips-below-81-mark-against-us-dollar-for-first-time-ever-518948">Indian rupee hits new low, slips below 81-mark against US dollar for the first time ever</a>

The ministry also indicated that despite the pandemic, the Indian toy industry has grown with exports worth $326 million in FY21-22, which is an increase of over 61% from FY18-19. Meanwhile, the import of toys during FY21-22 reduced by 70% to $110 million.&nbsp;

Furthermore, in line with &nbsp;‘Make in India’, the government had also introduced Production Linked Incentive (PLI) schemes, across 14 key manufacturing sectors in 2020-21. This reportedly included a $10 billion incentive for the production of a semiconductor, display, and design ecosystem in India which was done after recognising the importance of semiconductors in the world economy. &nbsp;

Furthermore, the scheme also incentivised strategic growth sectors where New Delhi has a comparative advantage. This included strengthening manufacturing in India, forming resilient supply chains, making Indian industries competitive and boosting exports.&nbsp;

The Ministry of Commerce and Industry statement also addressed an initiative called One-District-One-Product (ODOP) which aimed at promoting the production of indigenous products from every district of the country. The manufacturers and artisans aiming to contribute to the socio-economic growth of different regions of the country were provided with an international platform, said the statement.&nbsp;

(With inputs from agencies)&nbsp;

The ‘Make in India’ campaign to boost manufacturing in the country has completed eight years on September 25, the government said. India is also on course to attract at least $100 billion in Foreign Direct Investment (FDI) in the current fiscal year, which the government has attributed to economic reforms and ease of doing business in the country.

The ‘Make in India’ campaign to boost manufacturing in the country has completed eight years on September 25, the government said. India is also on course to attract at least $100 billion in Foreign Direct Investment (FDI) in the current fiscal year, which the government has attributed to economic reforms and ease of doing business in the country. “Make in India has substantial accomplishments across 27 sectors. These include strategic sectors of manufacturing and services as well”, the commerce and industry ministry said on Saturday in a statement. In 2021-22, India also received the “highest-ever” FDI of $83.6 billion. “This FDI has come from 101 countries, and invested across 31 union territories and states and 57 sectors in the country.” According to the government, FDI inflows were at $45.15 billion in 2014-15 and have been increasing ever since reaching a record high of eight years. The statement also said New Delhi has installed a more liberal and transparent policy to attract FDI, adding that currently most of the sectors in the Indian economy are open to FDI via the automatic route. The automatic route is one of the ways that foreign investments can be made in India, the other being the government route. Under the automatic route, the investors do not require, or need lesser permissions from the Reserve Bank of India (RBI) or from the Government of India to invest in various sectors of the economy. The reforms also included the liberalisation of certain guidelines and regulations to reduce unnecessary compliance burdens and bring down the cost of doing business in India, said the statement. Furthermore, in line with the ‘Make in India’ initiative and to reduce the foreign import of toys while also enhancing the country’s production of toys domestically the Basic Customs Duty on the import of toys was increased from 20% to 60%. ALSO READ: Indian rupee hits new low, slips below 81-mark against US dollar for the first time ever The ministry also indicated that despite the pandemic, the Indian toy industry has grown with exports worth $326 million in FY21-22, which is an increase of over 61% from FY18-19. Meanwhile, the import of toys during FY21-22 reduced by 70% to $110 million. Furthermore, in line with ‘Make in India’, the government had also introduced Production Linked Incentive (PLI) schemes, across 14 key manufacturing sectors in 2020-21. This reportedly included a $10 billion incentive for the production of a semiconductor, display, and design ecosystem in India which was done after recognising the importance of semiconductors in the world economy. Furthermore, the scheme also incentivised strategic growth sectors where New Delhi has a comparative advantage. This included strengthening manufacturing in India, forming resilient supply chains, making Indian industries competitive and boosting exports. The Ministry of Commerce and Industry statement also addressed an initiative called One-District-One-Product (ODOP) which aimed at promoting the production of indigenous products from every district of the country. The manufacturers and artisans aiming to contribute to the socio-economic growth of different regions of the country were provided with an international platform, said the statement. (With inputs from agencies)

India: 'Make in India’ completes 8 years, FY23 FDI to cross $100 billion, says govt

India has overtaken the United Kingdom to become the fifth largest economy in the world, according to Bloomberg, which has cited GDP figures from the International Monetary Fund.

New Delhi pushed Britain to the sixth spot in the final three months of 2021 to become the fifth-biggest economy. The calculation is based on US dollars, with India extending its lead in the first quarter.

According to the Bloomberg report, the size of the Indian economy with regards to ‘nominal’ cash was $854.7 billion during the quarter through March on an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter. In contrast, the UK was at $814 billion.

The calculations were done using the IMF database and historic exchange rates on the Bloomberg terminal.

The latest report reflects the economic trajectory these two countries have taken in recent months.

While UK is witnessing its worst cost-of-living crisis, soaring inflation—the highest in four decades—and a potential recession that is expected to last well into 2024, according to the Bank of England, the Indian economy, on the other hand, is forecast to grow more than 7 per cent this year.

“A world-beating rebound in Indian stocks this quarter has just seen their weighting rise to the second spot in the MSCI Emerging Markets Index, trailing only China’s," the Bloomberg report said.

Moreover, the IMF's forecasts show India pegged to overtake the UK in dollar terms on an annual basis this year, putting the Asian powerhouse behind just the US, China, Japan and Germany.&nbsp;

About a decade ago, India was ranked the world’s 11th largest economy, while the UK used to remain at the fifth spot.

The latest economic performance comes as a major blow to the ruling Conservative party, which is in the midst of leadership change following the resignation of Boris Johnson.

The Tory members will pick Johnson's successor on Monday, with reports indicating a comfortable win for foreign secretary Liz Truss over former chancellor Rishi Sunak.

(With inputs from agencies)

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India has overtaken the United Kingdom to become the fifth largest economy in the world, according to Bloomberg, which has cited GDP figures from the International Monetary Fund.

India has overtaken the United Kingdom to become the fifth largest economy in the world, according to Bloomberg, which has cited GDP figures from the International Monetary Fund. New Delhi pushed Britain to the sixth spot in the final three months of 2021 to become the fifth-biggest economy. The calculation is based on US dollars, with India extending its lead in the first quarter. According to the Bloomberg report, the size of the Indian economy with regards to ‘nominal’ cash was $854.7 billion during the quarter through March on an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter. In contrast, the UK was at $814 billion. The calculations were done using the IMF database and historic exchange rates on the Bloomberg terminal. The latest report reflects the economic trajectory these two countries have taken in recent months. While UK is witnessing its worst cost-of-living crisis, soaring inflation—the highest in four decades—and a potential recession that is expected to last well into 2024, according to the Bank of England, the Indian economy, on the other hand, is forecast to grow more than 7 per cent this year. “A world-beating rebound in Indian stocks this quarter has just seen their weighting rise to the second spot in the MSCI Emerging Markets Index, trailing only China’s," the Bloomberg report said. Moreover, the IMF's forecasts show India pegged to overtake the UK in dollar terms on an annual basis this year, putting the Asian powerhouse behind just the US, China, Japan and Germany. About a decade ago, India was ranked the world’s 11th largest economy, while the UK used to remain at the fifth spot. The latest economic performance comes as a major blow to the ruling Conservative party, which is in the midst of leadership change following the resignation of Boris Johnson. The Tory members will pick Johnson's successor on Monday, with reports indicating a comfortable win for foreign secretary Liz Truss over former chancellor Rishi Sunak. (With inputs from agencies) WATCH WION LIVE HERE

India overtakes UK to become world’s fifth largest economy

Even as&nbsp;International Atomic Energy Agency examines the extent of damage sustained by the&nbsp;Zaporizhzhia nuclear power plant in Ukraine, Turkish President&nbsp;Recep Tayyip Erdogan has offered to mediate between the two warring parties. Earlier, Turkey had acted as a guarantor when Russia and Ukraine signed the grain export agreement with the United Nations. In other news,&nbsp;Mikhail Gorbachev, the final Soviet Union leader&nbsp;to bring the Cold War to a peaceful conclusion was&nbsp;buried in Moscow.&nbsp;

Click on the headlines to read more:

<a href="https://www.wionews.com/world/turkey-can-play-a-facilitator-role-in-the-zaporizhzhia-nuclear-power-plant-erdogan-tells-putin-512668">Turkey ready to mediate in Zaporizhzhia nuclear power plant crisis, Erdogan tells Putin</a>

As the global agencies continue to ring warning bells over the condition of the Zaporizhzhia nuclear power plant, Turkish President Recep Tayyip Erdogan has reportedly offered to mediate between Kyiv and Moscow.

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Four days after passing away at age 91, Mikhail Gorbachev, the final Soviet leader to bring the Cold War to a peaceful conclusion, has&nbsp;been buried in Moscow. According to the Kremlin, Russian President Vladimir Putin did not&nbsp;attend the funeral due to his work&nbsp;commitments.

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Department of Consumer and Worker Protection, a New York City agency has sued Starbucks for wrongfully terminating a longtime worker and union organiser.&nbsp;Reportedly, the barista named Austin Locke was fired after he and his colleagues voted to unionise a Starbucks in Queens.

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/07/12/278657-starbucks-masala-chai-filter-coffee.jpg" />

<a href="https://www.wionews.com/science/nasas-new-moon-rocket-springs-up-another-hazardous-leak-before-debut-launch-512674">NASA’s new moon rocket springs up another hazardous leak before debut launch</a>

Before its debut launch, NASA’s next-generation Artemis moon rocket sprang another hazardous leak on Saturday.&nbsp;While engineers scrambled to plug what was believed to be a gap around a seal in the supply line, hydrogen fuel began leaking from the engine section at the bottom of the rocket.

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/09/03/292746-untitled-design-35.png" /><a href="https://www.wionews.com/india-news/india-to-be-the-third-largest-economy-by-2029-sbi-report-512665">India may surpass Germany, Japan to become the third largest economy by 2029: Report</a>

A report authored by State Bank of India's (SBI) chief economic adviser Soumya Kanti Ghosh has stated that India is likely to become the third largest economy by 2029, largely due to the structural shift since 2014.

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2018/09/12/21751-rupee-20170428065830.JPG" /><a href="https://www.wionews.com/world/california-opens-cooling-centres-as-rapid-wildfire-spreads-512638">California opens cooling centres as wildfire spreads rapidly, mercury soars</a>

As a wildfire spread rapidly across more than 1,000 acres in extremely hot conditions, California has set up 40 cooling centres. Offering shelter in air-conditioned rooms and cold drinks during the heat of the day, the centres have been established in libraries, recreation and park facilities, and senior living facilities.

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/09/03/292709-untitled-design-32.png" /><a href="https://www.wionews.com/south-asia/more-than-one-third-of-pakistan-underwater-as-it-battles-worst-flood-in-history-512549">More than one-third of Pakistan underwater as it battles worst flood in history</a>

Over one-third of Pakistan is underwater, latest satellite images from the&nbsp;European Space Agency&nbsp;(ESA) have revealed, showing the extent of damage caused by the monsoon-induced floods.

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/09/03/292628-00032hg73v.jpg" /><a href="https://www.wionews.com/world/cloudflare-refuses-to-take-down-kiwi-farms-a-highly-bigoted-racist-and-transphobic-website-512627">Activist rages battle against fringe website Kiwi Farms targeting trans genders</a>

Clara Sorrenti and her supporters are the faces of a campaign that attempts to take down Kiwi Farms, an internet forum that doubles as an image-sharing website where the users troll and harass anyone they like. However, over the years, the site has become a den of anti-trans harassment campaigns, forcing the likes of&nbsp;Sorrenti to launch a&nbsp;campaign to take down the fringe website.

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/09/03/292699-copy-of-untitled.png" /><a href="https://www.wionews.com/sports/serena-williams-unmatched-legacy-to-stand-the-test-of-time-despite-her-retirement-512625">Serena Williams' unmatched legacy to stand the test of time long after her retirement</a>

While Serena Williams is perhaps one of, if not the most, accomplished players in the international tennis circuit, her legacy must not be defined by the myriad of accomplishments that she has managed to achieve on the court.

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/09/03/292698-untitled-design-2022-09-03t162952862.png" /><a href="https://www.wionews.com/entertainment/bollywood/news-ayan-mukerji-shares-pre-release-promo-of-brahmastra-introduces-fans-to-ancient-indian-astras-512672">Ayan Mukerji shares pre-release promo of 'Brahmastra', introduces fans to 'Ancient Indian Astras'</a>

Six days ahead of 'Brahmastra's release, the makers of the much-awaited film have shared a pre-release promo on YouTube to treat fans and increase their excitement level. The one-minute-long clip introduces fans to the characters of the film including Ranbir Kapoor, Alia Bhatt, Amitabh Bachchan, Mouni Roy, and Nagarjuna.&nbsp;

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Even as International Atomic Energy Agency examines the extent of damage sustained by the Zaporizhzhia nuclear power plant in Ukraine, Turkish President Recep Tayyip Erdogan has offered to mediate between the two warring parties.

Even as International Atomic Energy Agency examines the extent of damage sustained by the Zaporizhzhia nuclear power plant in Ukraine, Turkish President Recep Tayyip Erdogan has offered to mediate between the two warring parties. Earlier, Turkey had acted as a guarantor when Russia and Ukraine signed the grain export agreement with the United Nations. In other news, Mikhail Gorbachev, the final Soviet Union leader to bring the Cold War to a peaceful conclusion was buried in Moscow. Click on the headlines to read more: Turkey ready to mediate in Zaporizhzhia nuclear power plant crisis, Erdogan tells Putin As the global agencies continue to ring warning bells over the condition of the Zaporizhzhia nuclear power plant, Turkish President Recep Tayyip Erdogan has reportedly offered to mediate between Kyiv and Moscow. Mikhail Gorbachev: Last Soviet leader laid to rest Four days after passing away at age 91, Mikhail Gorbachev, the final Soviet leader to bring the Cold War to a peaceful conclusion, has been buried in Moscow. According to the Kremlin, Russian President Vladimir Putin did not attend the funeral due to his work commitments. New York City agency sues Starbucks for wrongfully terminating union organiser employee Department of Consumer and Worker Protection, a New York City agency has sued Starbucks for wrongfully terminating a longtime worker and union organiser. Reportedly, the barista named Austin Locke was fired after he and his colleagues voted to unionise a Starbucks in Queens. NASA’s new moon rocket springs up another hazardous leak before debut launch Before its debut launch, NASA’s next-generation Artemis moon rocket sprang another hazardous leak on Saturday. While engineers scrambled to plug what was believed to be a gap around a seal in the supply line, hydrogen fuel began leaking from the engine section at the bottom of the rocket. India may surpass Germany, Japan to become the third largest economy by 2029: Report A report authored by State Bank of India's (SBI) chief economic adviser Soumya Kanti Ghosh has stated that India is likely to become the third largest economy by 2029, largely due to the structural shift since 2014. California opens cooling centres as wildfire spreads rapidly, mercury soars As a wildfire spread rapidly across more than 1,000 acres in extremely hot conditions, California has set up 40 cooling centres. Offering shelter in air-conditioned rooms and cold drinks during the heat of the day, the centres have been established in libraries, recreation and park facilities, and senior living facilities. More than one-third of Pakistan underwater as it battles worst flood in history Over one-third of Pakistan is underwater, latest satellite images from the European Space Agency (ESA) have revealed, showing the extent of damage caused by the monsoon-induced floods. Activist rages battle against fringe website Kiwi Farms targeting trans genders Clara Sorrenti and her supporters are the faces of a campaign that attempts to take down Kiwi Farms, an internet forum that doubles as an image-sharing website where the users troll and harass anyone they like. However, over the years, the site has become a den of anti-trans harassment campaigns, forcing the likes of Sorrenti to launch a campaign to take down the fringe website. Serena Williams' unmatched legacy to stand the test of time long after her retirement While Serena Williams is perhaps one of, if not the most, accomplished players in the international tennis circuit, her legacy must not be defined by the myriad of accomplishments that she has managed to achieve on the court. Ayan Mukerji shares pre-release promo of 'Brahmastra', introduces fans to 'Ancient Indian Astras' Six days ahead of 'Brahmastra's release, the makers of the much-awaited film have shared a pre-release promo on YouTube to treat fans and increase their excitement level. The one-minute-long clip introduces fans to the characters of the film including Ranbir Kapoor, Alia Bhatt, Amitabh Bachchan, Mouni Roy, and Nagarjuna. WATCH WION LIVE HERE:

Top 10 world news: Erdogan offers to mediate, Gorbachev is buried, Artemis 1 postponed again & more

India posted a GDP growth of 13.5% in the first quarter of the ongoing financial year. How does India's performance compare with other major economies? What are the challenges ahead? Palki Sharma tells you.

Gravitas: India outperforms major economies

India likely recorded strong double-digit economic growth in the last quarter but economists polled by Reuters expected the pace to more than halve this quarter and slow further toward the end of the year as interest rates rise. Asia's third-largest economy is grappling with persistently high unemployment and inflation, which has been running above the top of the Reserve Bank of India's tolerance band all year and is set to do so for the rest of 2022.

Growth this quarter is predicted to slow sharply to an annual 6.2 per cent&nbsp;from a median forecast of 15.2% in Q2, supported mainly by statistical comparisons with a year ago rather than new momentum, before decelerating further to 4.5% in October-December.

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/sri-lankan-crisis-economy-lessons-india-can-learn-498205">Sri Lankan crisis: Economy lessons India can learn</a>

The median expectation for 2022 growth was 7.2 per cent, according to an August&nbsp;22-26 Reuters poll, but economists said that the solid growth rate masks how rapidly the economy was expected to slow in coming months.

"Even as India remains the fastest-growing major economy, domestic consumption will perhaps not be strong enough to drive growth further as unemployment remains high and real wages are at a record low level," said Kunal Kundu, India economist at Societe Generale.

"By supporting growth through investment, the government has only fired on one engine while forgetting about the impetus which domestic consumption provides. This is why India's growth is still below its pre-pandemic trend."

The economy has not grown fast enough to accommodate some 12 million people joining the labour force each year.

Meanwhile the RBI, a relative laggard in the global tightening cycle, is set to raise its key repo rate by another 60 basis points by the end of March to try to bring inflation within the tolerance limit. [ECILT/IN]

That follows three interest rate rises this year totalling 140 basis points, and would take the repo rate to 6.00 per cent by end-Q1 2023.

While the central bank's mandated target band is 2%-6%, inflation was expected to average 6.9 per cent and 6.2 per cent this quarter and next, respectively, before falling just below the top end of the range to 5.8 per cent in Q1 2023. That is roughly in line with the central bank's projection.

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/pm-narendra-modi-says-indian-economy-expected-to-grow-by-75-this-year-490732">PM Narendra Modi says Indian economy expected to grow by 7.5% this year</a>

"Despite signs of a cool-off in price pressures...it is premature to go easy on the inflation fight given considerable uncertainties from geopolitical risks and hard landing risks in major economies," said Radhika Rao, senior economist at DBS.

The economy is also enduring inflation pressure from a weak rupee, which for months has been trading close to 80 to the US dollar, a level the central bank has been defending in currency markets by selling dollar reserves.

The latest Reuters poll also showed India's current account deficit swelling to 3.1 per cent of gross domestic product this year, the highest in at least a decade, which may put further pressure on the currency.

India likely recorded strong double-digit economic growth in the last quarter but economists polled by Reuters expected the pace to more than halve this quarter and slow further toward the end of the year as interest rates rise.

India likely recorded strong double-digit economic growth in the last quarter but economists polled by Reuters expected the pace to more than halve this quarter and slow further toward the end of the year as interest rates rise. Asia's third-largest economy is grappling with persistently high unemployment and inflation, which has been running above the top of the Reserve Bank of India's tolerance band all year and is set to do so for the rest of 2022. Growth this quarter is predicted to slow sharply to an annual 6.2 per cent from a median forecast of 15.2% in Q2, supported mainly by statistical comparisons with a year ago rather than new momentum, before decelerating further to 4.5% in October-December. Also Read | Sri Lankan crisis: Economy lessons India can learn The median expectation for 2022 growth was 7.2 per cent, according to an August 22-26 Reuters poll, but economists said that the solid growth rate masks how rapidly the economy was expected to slow in coming months. "Even as India remains the fastest-growing major economy, domestic consumption will perhaps not be strong enough to drive growth further as unemployment remains high and real wages are at a record low level," said Kunal Kundu, India economist at Societe Generale. "By supporting growth through investment, the government has only fired on one engine while forgetting about the impetus which domestic consumption provides. This is why India's growth is still below its pre-pandemic trend." The economy has not grown fast enough to accommodate some 12 million people joining the labour force each year. Meanwhile the RBI, a relative laggard in the global tightening cycle, is set to raise its key repo rate by another 60 basis points by the end of March to try to bring inflation within the tolerance limit. [ECILT/IN] That follows three interest rate rises this year totalling 140 basis points, and would take the repo rate to 6.00 per cent by end-Q1 2023. While the central bank's mandated target band is 2%-6%, inflation was expected to average 6.9 per cent and 6.2 per cent this quarter and next, respectively, before falling just below the top end of the range to 5.8 per cent in Q1 2023. That is roughly in line with the central bank's projection. Also Read | PM Narendra Modi says Indian economy expected to grow by 7.5% this year "Despite signs of a cool-off in price pressures...it is premature to go easy on the inflation fight given considerable uncertainties from geopolitical risks and hard landing risks in major economies," said Radhika Rao, senior economist at DBS. The economy is also enduring inflation pressure from a weak rupee, which for months has been trading close to 80 to the US dollar, a level the central bank has been defending in currency markets by selling dollar reserves. The latest Reuters poll also showed India's current account deficit swelling to 3.1 per cent of gross domestic product this year, the highest in at least a decade, which may put further pressure on the currency.

India's status as world's fastest growing major economy to be shortlived: Reuters poll

A group of economists say there is a "zero percent chance" that India will face a recession. What's working for the Indian economy? Palki Sharma brings you an assessment.

Gravitas: India could escape a global recession wave

The Reserve Bank of India (RBI) on Saturday (July 16) said that the country's economy remained resilient in the face of global headwinds. India's top bank also predicted that India is anticipated to continue on the path to becoming the world's fastest-growing economy as inflation declines from its recent peak. Reuters reports that RBI in a bulletin said that recent improvements in the southwest monsoon and fresh planting have increased confidence that rural demand will soon catch up to urban spending and consolidate a recovery. "Knock-on effects of geopolitical spill overs are visible in several sectors, tapering the pace of recovery."

Watch |&nbsp;Recession fears and Indian-based firms | Shashank Srivastava Exclusive

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"In spite of this overwhelming shock, there are sparks in the wind that ignite the innate strength of the economy and set it on course to becoming the fastest growing economy in the world, though besieged it might be by fears of recession."

RBI did not give a time frame,&nbsp;however, according to it, the worst of the recent inflation spike will be over if the commodity price slowdown seen in recent weeks persists together with the reduction of supply chain pressures.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/vice-president-election-2022-ruling-bjp-allies-pick-bengal-governor-jagdeep-dhankhar-498133" hreflang="en">Vice President election 2022: Ruling BJP, allies pick Bengal Governor Jagdeep Dhankhar</a>

"There is some evidence now that supply-chain pressures are peaking globally and in India," the bank said, adding that "a major source of upward inflation pressures may be ebbing."

"External debt remains modest as a proportion to GDP and has actually declined between March 2021 and March 2022," RBI said.

Also read |&nbsp;<a href="https://www.wionews.com/india/government-of-india-to-make-silicon-valley-tech-giants-pay-for-content-to-news-publishers-498052" hreflang="en">Government of India to make Silicon Valley tech giants pay for content to news publishers</a>

Reuters reports that according to figures released this week, India's annual consumer inflation remained agonisingly high above the 7 per cent mark, more than the central bank's tolerance range for the sixth consecutive month.

(With inputs from agencies)

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The Reserve Bank of India (RBI) on Saturday (July 16) said that the country's economy remained resilient in the face of global headwinds. India's top bank also predicted that India is anticipated to continue on the path to becoming the world's fastest-growing economy as inflation declines from its recent peak.

The Reserve Bank of India (RBI) on Saturday (July 16) said that the country's economy remained resilient in the face of global headwinds. India's top bank also predicted that India is anticipated to continue on the path to becoming the world's fastest-growing economy as inflation declines from its recent peak. Reuters reports that RBI in a bulletin said that recent improvements in the southwest monsoon and fresh planting have increased confidence that rural demand will soon catch up to urban spending and consolidate a recovery. "Knock-on effects of geopolitical spill overs are visible in several sectors, tapering the pace of recovery." Watch | Recession fears and Indian-based firms | Shashank Srivastava Exclusive "In spite of this overwhelming shock, there are sparks in the wind that ignite the innate strength of the economy and set it on course to becoming the fastest growing economy in the world, though besieged it might be by fears of recession." RBI did not give a time frame, however, according to it, the worst of the recent inflation spike will be over if the commodity price slowdown seen in recent weeks persists together with the reduction of supply chain pressures. Also read | Vice President election 2022: Ruling BJP, allies pick Bengal Governor Jagdeep Dhankhar "There is some evidence now that supply-chain pressures are peaking globally and in India," the bank said, adding that "a major source of upward inflation pressures may be ebbing." "External debt remains modest as a proportion to GDP and has actually declined between March 2021 and March 2022," RBI said. Also read | Government of India to make Silicon Valley tech giants pay for content to news publishers Reuters reports that according to figures released this week, India's annual consumer inflation remained agonisingly high above the 7 per cent mark, more than the central bank's tolerance range for the sixth consecutive month. (With inputs from agencies) 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 is 'on course to becoming the fastest growing economy in the world': RBI

Social media influencers and doctors in India will now be subjected to Tax Deducted at Source (TDS) from July 1, for benefits received from businesses for sales promotions. The Central Board of Direct Taxes (CBDT) has issued recommendations on the new provision’s applicability. The Union Budget made provision for TDS on incomes in order to prevent tax revenue leakage by incorporating a new section, 194R into the income Tax Act, 1961. Any individual who gives a resident a benefit of more than 20,000 in a year must pay TDS of 10 per cent, NDTV reported.

The Joint Secretary in the Finance Ministry, Kamlesh C Varshney explained advantages which includes free medicine samples for doctors, overseas flight tickets and free tickets of Indian Premier League (IPL) of business and many more things. He stressed that these items should be revealed while submitting an income tax return and shall not be hidden as they are not being sold.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/india-news/upi-records-nearly-6-billion-transactions-worth-rs-10-trillion-in-may-489280">UPI records nearly 6 billion transactions worth Rs 10 trillion in May&nbsp;</a>

The section 194R applies to sellers that offer incentives in cash or any kind such as car, computer, gold coins, mobile phones in addition to discounts.&nbsp;

This gave a break for the customers by exempting sales discounts or cash discounts from the section, claiming if it gets included will put the seller in difficulty. &nbsp;However, if perks such as mobile was returned to the manufacturer after being used for the purpose of service like for a social media influencer, then this new rule doesn’t apply in such cases.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/5g-india-to-hold-spectrum-auction-in-july-mobile-connectivity-set-to-get-10-times-faster-488302">5G: India to hold spectrum auction in July, mobile connectivity set to get 10 times faster</a>

The CBDT specifies that if doctors receive free samples of drugs while working in a hospital, section 194R applies free distribution of samples to the hospital. In case for doctors who work as consultants for a hospital and receive free samples, TDS should be applied first to the hospital which will deduct necessary tax under the section for doctors.&nbsp;

According to CBDT the section doesn’t apply the benefits to if supplied to a government institution that is not engaged in business or profession such as a government hospital.&nbsp;

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(With inputs from agencies)

Social media influencers and doctors in India will now be subjected to Tax Deducted at Source (TDS) from July 1, for benefits received from businesses for sales promotions.

Social media influencers and doctors in India will now be subjected to Tax Deducted at Source (TDS) from July 1, for benefits received from businesses for sales promotions. The Central Board of Direct Taxes (CBDT) has issued recommendations on the new provision’s applicability. The Union Budget made provision for TDS on incomes in order to prevent tax revenue leakage by incorporating a new section, 194R into the income Tax Act, 1961. Any individual who gives a resident a benefit of more than 20,000 in a year must pay TDS of 10 per cent, NDTV reported. The Joint Secretary in the Finance Ministry, Kamlesh C Varshney explained advantages which includes free medicine samples for doctors, overseas flight tickets and free tickets of Indian Premier League (IPL) of business and many more things. He stressed that these items should be revealed while submitting an income tax return and shall not be hidden as they are not being sold. Also read | UPI records nearly 6 billion transactions worth Rs 10 trillion in May The section 194R applies to sellers that offer incentives in cash or any kind such as car, computer, gold coins, mobile phones in addition to discounts. This gave a break for the customers by exempting sales discounts or cash discounts from the section, claiming if it gets included will put the seller in difficulty. However, if perks such as mobile was returned to the manufacturer after being used for the purpose of service like for a social media influencer, then this new rule doesn’t apply in such cases. Also read | 5G: India to hold spectrum auction in July, mobile connectivity set to get 10 times faster The CBDT specifies that if doctors receive free samples of drugs while working in a hospital, section 194R applies free distribution of samples to the hospital. In case for doctors who work as consultants for a hospital and receive free samples, TDS should be applied first to the hospital which will deduct necessary tax under the section for doctors. According to CBDT the section doesn’t apply the benefits to if supplied to a government institution that is not engaged in business or profession such as a government hospital. 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. (With inputs from agencies)

India to introduce new tax rules for social media influencers, doctors

India is changing and so is its job market. Today’s young generation doesn’t want to slog away at work all day. Instead, as work-life balance becomes non-negotiable, more and more people are opting for temporary and flexible jobs. Some are also looking for freelance work based on their area of expertise. This is the gig economy.

How gig economy is helping India in generating employment

India's non-alcoholic beverages market is expected to grow to INR 1.47 trillion by 2030. According to a report by Indian economic think tank ICRIER, carbonated beverages are the most popular among Indians, followed by bottled water and fruit beverages and juices. The report emphasised the importance of non-alcoholic beverages to the Indian economy.

Is it time for nutrition-based taxes on beverages in India?

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