Page 7 - India Gdp

S&P retains India's FY24 growth forecast at 6% on slowing world economy

S&P Global Ratings on Monday retained India's growth forecast for current fiscal at 6 per cent citing slowing world economy, rising risk of subnormal monsoons and delayed effect of rate hike. The US-based agency sees the recent spike in vegetable price inflation as being temporary, but revised up the full fiscal retail inflation forecast to 5.5 per cent, from 5 per cent earlier, on higher global oil prices. "Growth this year will be weaker than in 2022, but our outlook remains broadly favourable. Notwithstanding the strong expansion in India in the June quarter, we maintain our forecast for fiscal 2024 (ending March 2024), given the slowing world economy, the delayed effect of rate hikes, and the rising risk of subnormal monsoons," S&P said in its Economic Outlook for Asia Pacific Q4 2023 report. Indian economy grew 7.2 per cent in 2022-23 fiscal year which ended March 2023. While retaining its growth forecast for the current fiscal at 6 per cent, S&P also maintained that .

India to clock GDP growth of 6.5% in FY24: NITI Aayog member Arvind Virmani

The Indian economy will grow at around 6.5 per cent in the current fiscal, notwithstanding high crude oil prices and increased uncertainty due climate changes, NITI Aayog member Arvind Virmani said on Thursday. Virmani also asserted that the gross household savings ratio in India has consistently gone up. In an interview with PTI, he said: "My growth projection (of India's GDP growth) is 6.5 per cent plus minus 0.5 per cent... because my experience is that the fluctuations in global GDP more or less has balanced out for us, assuming normal changes." On some US-based economists' claim that India is overstating economic growth, Virmani said he has noticed that certain former officials don't have any idea how GDP is constructed as they have come from academic background. Last week, the Finance Ministry also dismissed the criticism of inflated GDP, saying it has followed the consistent practice of using the income side estimates to compute economic growth, and stressed many internatio

Upward revision: OECD raises India's FY24 GDP growth projection to 6.3%

Also revises inflation projection to 5.3% from 4.8%

What more can India do to win over the Big Three sovereign rating agencies?

A high sovereign credit rating can raise a country's star among the global investor community; a low rating, indicating doubts over ability to repay debts, increases its financing costs

Optimistic about India's future but harmonious society essential: Ex-PM MMS

Singh said India could rise to become an economic powerhouse in the coming decades through an emphasis on manufacturing and production combined with services

Hotel industry's contribution to India's GDP to hit $1 trn by 2047: HAI

The direct contribution of Indian hotel industry to the country's GDP is estimated to touch USD 1 trillion by 2047 driven by a significant jump in domestic tourist visits and international arrivals, according to a report. As per 'Vision 2047: Indian Hotel Industry' report by the Hotel Association of India (HAI) and Benori Knowledge, the direct contribution of the hotel industry to GDP was USD 40 billion in 2022 and is expected to reach USD 68 billion by 2027. By 2047, it will reach around USD 1 trillion, it added. The hospitality industry body also pointed out that for the sector to achieve its target, the accommodation growth will have to go beyond the metros to two and three-tier cities and also to the rural areas. The report, however, clarified that the total contribution includes aspects of services from corresponding industry verticals such as food and beverage, salon & spas but excludes consideration of services market growth and thus taking out scenario-based contribution ..

Indian economy shining as beacon of hope in challenging times: PM Modi

Prime Minister Narendra Modi asserted on Saturday that India's economy is shining as a beacon of hope in these challenging times. "With robust growth and resilient spirit, the future looks promising. Let us keep this momentum and ensure prosperity for 140 crore Indians," he said on X, reacting to news portal Moneycontrol's 'Bullish on India' campaign. The portal, which specialises in reporting on markets and financial sector, had posted on X that the country's economy has not just withstood challenges, but thrived setting the stage for optimism. The 'Bullish on India' campaign showcases India's economic resilience and growth potential in various critical sectors, it said. It aims to analyse the key drivers of India's economic growth while fostering awareness about the unparalleled potential the nation offers at a time of a global economic slowdown, the portal said in a separate statement. "With detailed analysis of macroeconomic factors such as manufacturing, demography, economy,

The fall in private investment

The decline in private investment as a percentage of GDP is not as huge as it may appear at first glance

New era of Indian equity outperformance is dawning: Morgan Stanley

In India, Morgan Stanley believes, the situation is in stark contrast to that in China. India, it said, is arguably at the start of a long wave boom

India's improved monsoon performance, capex augur well: FinMin report

India's improved monsoon performance, continued expansion in manufacturing, and vigorous capital expenditure spending by the public and private sectors augur well for macroeconomic stability and growth during FY24, the finance ministry said in a report. However, it cautioned that cross-border spillovers and adverse global developments can act anytime as a deterrent to achieving the potential high growth path in the current financial year. The government's emphasis on capex in recent years has given a much-needed thrust to investments in key infrastructure, which has resulted in crowding in of private investment to kickstart the virtuous circle of job creation, income, productivity, demand, and exports supported by favourable demographic dividend over the coming years, said the June edition of the Finance Ministry's Monthly Economic Review. As per Axis Bank Business and Economic Research, Capex by the Corporate sector increased by 22.4 per cent in FY23 compared to the last year, driv

India needs to focus on manufacturing to achieve 7-7.5% growth: CEA

India needs to focus on the manufacturing sector to achieve sustained growth of 7-7.5 per cent until 2030, Chief Economic Advisor V Anantha Nageswaran said. In an S&P Global report titled 'Look Forward: India's Moment', Nageswaran said that manufacturing should be a key growth area given the country's comparative advantage in terms of skilled labour, improved physical infrastructure, well-established industrial ecosystem and large domestic market. As regards the services sector, he said the composition should change in favour of high value added services as this would improve earnings by attracting foreign demand. "The Indian economy, in real terms, needs to grow annually at 7-7.5 per cent until 2030... The share of manufacturing in total gross value added has to increase from 16 per cent at present to at least 25 per cent of GDP at the expense of agriculture and low value added services," Nageswaran said. He further said the investment rate (gross fixed capital formation/GDP) ...

India to become middle-income country with GDP of $6 trn by 2030: Report

The report, released by Standard Chartered Bank, assumes that India's nominal GDP growth rate will be 10 per cent per annum from now on

India GDP to grow 6-6.3% in FY24, economic prospects brighten: Deloitte

India is likely to grow 6-6.3 per cent in the current fiscal year ending March 31, 2024, Deloitte India said in its economic outlook, forecasting growth surpassing 7 per cent over the next two years if global uncertainties recede. With the probability associated with a recession in major industrial countries this year trimming, several economic indicators such as the tight labour markets and reduced risk spreads post the US banking crisis suggest that downside risks to global growth are subsiding. Yet, there remain significant uncertainties around the actions of the central banks of major economies and the oil price movements, the economic outlook said. "Amid continuing global uncertainties, India continues to see strong economic activity," it said. "Keeping in view the resilience shown by the economy, Deloitte is optimistic about the outlook and has put out its expectation for this year and the next. Deloitte expects India to grow between 6 per cent and 6.3 per cent in FY 202324, a

India's economy to hold top spot for GDP but not so much for jobs: Poll

The latest Reuters poll of 53 economists taken between July 13 and 21 showed the Indian economy would grow 6.1% this fiscal year

Commerce ministry looking at fixing export target in range for this fiscal

With the increasing global economic uncertainties, the commerce ministry is looking at fixing this fiscal year's export target in a range instead of a single figure, an official said. To set the target range, a detailed study on 200 countries and 31 commodity groups is in the process, the official said. The target range would depend on parameters such as the USD 1 trillion merchandise exports target by 2030; import to GDP ratio of importing countries; export to GDP ratio of India that will tell the potential and past trends. "We are not fixing any export target as a figure. In fact, my team has done an exercise, where we are saying that let us talk in terms of range. In the best scenario, the exports can be this much and in the worst scenario, it can be this much," the official said. For a monitoring purpose of exports every month, the official said a fixed number would be required and that could be a mid-value or an average may be accepted. The ministry has though fixed an intern

Agri sector contribution to GDP can rise by improving marketing: Shah

Cooperation Minister Amit Shah on Friday said the contribution of agriculture and allied sectors to the country's GDP can further be enhanced by strengthening marketing, for which farmer producer organisations (FPOs) are the key. Addressing a conclave here, the Minister said agriculture can become a profitable venture if modern technology and marketing methods are adopted. Primary Agricultural Credit Societies (PACS) and FPOs can help in this endeavour. He urged both FPOs and PACS to operate in a "hybrid model" under which around 11,770 FPOs that have already been set up can link themselves with PACS through an agreement to provide services to cooperative members. Existing 65,000-odd PACS can begin operating as FPOs. Stressing the need to work in a hybrid model, Shah said: "GDP (Gross Domestic Produce) is very important for any country. If you increase GDP through manufacturing, the job creation will not be much. If you strengthen agriculture and allied sector through cooperatives,

Why you should care about India's R&D-to-GDP ratio?

India's app economy to touch $792 bn by 2030, 20% of estimated GDP: Report

India's app economy is expected to reach USD 791.98 billion by 2030, contributing 12 per cent to the country's estimated GDP of USD 6.59 trillion, a report commissioned by Broadband India Forum said on Friday. The report prepared jointly by ICRIER Senior Visiting Professor Rekha Jain and IIM Ahmedabad Professors Viswanath Pingali and Ankur Sinha is based on the assumption that the app economy will grow at the rate of 2.5 times the GDP growth as of 2030. The researchers defined app economy as the range of economic activities surrounding mobile applications including the development and sale of apps, in-app purchases, subscriptions, advertisements, public relations generated by free apps and the hardware devices and software on which apps are designed to run. "Our main conclusion is that by 2030, the amount of money spent on apps is likely to be around USD 800 billion. Given that the Indian economy is expected to be around USD 6600 billion, the app spending is likely to be around 12 p

Centre's fiscal deficit at 11.8% of full year target, shows CGA data

The central government's fiscal deficit at the end of May stood at 11.8 per cent of the full-year budget estimates for 2023-24, according to official data. The fiscal deficit was 12.3 per cent of the 2022-23 BE in the same period of the last year. Fiscal deficit is the difference between total expenditure and revenue of the government. It is an indication of the total borrowings that are needed by the government. In actual terms, the deficit was Rs 2,10,287 crore at end-May 2023, as per the data of the Controller General of Accounts (CGA). In the Union Budget, the government aimed to bring down the fiscal deficit during the current financial year 2023-24 to 5.9 per cent of the gross domestic product (GDP). The deficit was 6.4 per cent of the GDP in 2022-23 against the earlier estimate of 6.71 per cent. Unveiling the revenue-expenditure data of the Union government for the first two months of the 2023-24, CGA said the net tax revenue was Rs 2.78 lakh crore or 11.9 per cent of the

Need to raise MSMEs contribution for India to be 3rd largest economy: Rane

There is a need to increase the contribution of India's micro, small and medium enterprises to become the third largest economy in the world by 2030, Union Minister Narayan Rane on Tuesday said. The MSME minister also said that a survey should be conducted to ascertain the number of micro-enterprises that have been shut in the country. According to the Udyam Registration Portal, 97 per cent of the MSMEs registered are micro units. "Even if we make efforts to increase the productivity of micro-enterprises we can become the third largest economy in the world by 2030," Rane said. The minister said at present, Japan (USD 4.3 trillion) and Germany (USD 4.03 trillion) are third and fourth largest economies, while India has a GDP of USD 3.46 trillion. He asked officials to make more efforts for entrepreneurs' transition to small from the micro category. Rane also said the latest technology needs to be adopted and related information must be disseminated among entrepreneurs. Various ...