Page 13 - Indian Economy

India likely to clock 7% growth in FY25 despite headwinds: Deloitte

India continues to be a bright spot in an otherwise gloomy global outlook and the country could clock a 7 per cent growth in the current fiscal despite the headwinds, Deloitte South Asia CEO Romal Shetty has said. Shetty, who is the youngest chief executive of a Big Four accounting and consultancy firm in India, said inflation is reasonably under control, there has been a pick-up in rural demand and vehicle sales are improving. "We believe that we would be in the 7-7.1 per cent range in terms of the growth (this fiscal year). You have got the headwinds, the tailwinds... But the fact is, still India is in a better position, in spite of whatever is happening globally but we can't say we're decoupled from the world," he said, adding that the geopolitical crisis in the Middle East and Ukraine and the slowdown in the western world will impact GDP growth. According to Deloitte projections, growth is likely to be 6.7 per cent in the next fiscal year (2025-26). The Indian economy grew 8.2 p

Food-price volatility may pose risk to India's inflation: RBI Bulletin

Food prices, which account for nearly half of the retail inflation, rose 5.66 per cent in August, compared with a 5.42 per cent climb in the previous month

RBI net buys $6.93 billion in July; forex reserve reaches new high

India's foreign exchange reserves expanded by $67 billion so far in 2024, the second highest among major foreign exchange reserves holding countries, after China

Retail inflation for farm workers eases to 5.96%, rural labourers to 6.08%

Retail inflation for farm workers and rural labourers eased to 5.96 per cent and 6.08 per cent, respectively, in August against the comparative figures of 6.17 per cent and 6.20 per cent recorded in July this year. The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) registered an increase of 7 points each in August 2024, reaching levels of 1297 and 1309, respectively. The CPI-AL and CPI-RL were 1290 points and 1302 points, respectively, in July. "The year-on-year inflation rates based on CPI-AL and CPIRL for this month (August 2024) were recorded at 5.96 per cent and 6.08 per cent, compared to 7.37 per cent and 7.12 per cent in August, 2023. The corresponding figures for July, 2024 were 6.17 per cent for CPI-AL and 6.20 per cent for CPI-RL," a labour ministry statement said.

India should establish clear obligations for domestic PEPs: FATF

Global body says non-profit sector requires protection from terror

Fed's balancing act: Why this rate-easing cycle will be different

Since the US economy is not in distress, lower interest rates may increase spending relatively quickly. Also, Mr Powell termed the cut a calibrated attempt to take the policy rate to the neutral rate

FMCG CEOs raise concerns over GST, ease of doing biz at World Food India

Executives discussed range of issues with ministers at World Food India event

Experts divided on impact of Fed rate cut for emerging markets like India

Experts shared mixed views on the impact of the half-point benchmark rate cut by the US Federal Reserve, as some believe cheaper financing could boost investment flows, others said it could lead to a decline in returns on equity and a rise in gold prices. The US Federal Open Market Committee voted to cut the federal funds rate target range by 50 bps to 4.75-5 per cent, from 5.25-5.50 per cent, against expectations of a cut half that size. The US central bank had kept interest rates at an over two-decade high for 14 months. According to PHDCCI President Sanjeev Agrawal "We expect that the cut in the Federal Reserve rate could lead to a decline in returns on equity and a rise in gold prices". Echoing similar sentiments, Colin Shah, MD at Kama Jewellery, said this scenario must be taken positively, as the rate cut has opened doors for gold to scale new highs shortly, reinstating the might of the yellow metal as an investment haven. Some experts believe the Fed rate cut could lead to

US Fed rate cut unlikely to impact foreign inflows to India: DEA secretary

The US Federal Open Market Committee on Wednesday reduced the lending rate to 4.75-5.00 per cent from 5.25-5.50 per cent, a larger than expected cut

India on way to becoming third-largest economy by FY31: S&P Global report

India is on track to becoming the third-largest economy by 2030-31, driven by a projected annual growth rate of 6.7 per cent this fiscal, S&P Global said in a report on Thursday. The report also said that with 8.2 per cent growth rate in FY2024, continued reforms are crucial to improving business transactions and logistics, boosting private sector investment, and reducing reliance on public capital. It said equity markets are expected to stay dynamic and competitive due to strong growth prospects and better regulation, and foreign inflows into Indian government bonds have surged since the country joined major emerging market indexes, with further growth anticipated. To maximize trade benefits, India must develop infrastructure and geopolitical strategies, particularly regarding its extensive coastline, said the first edition of 'India Forward: Emerging Perspectives' report. Nearly 90 per cent of India's trade is seaborne, necessitating robust port infrastructure to manage ...

Windfall tax cut on crude may not impact companies and govt: Analysts

Analysts say move in line with falling global oil prices and shrinking upstream profits

Experts cite logistical, Red Sea crisis as issues impacting India's exports

The Red sea crisis and logistical challenges have severely impacted the country's exports in August, which contracted 9.3 per cent, according to exporters and experts. Think tank GTRI said the contraction of petroleum product exports' by 37.56 per cent to USD 5.95 billion in August is linked to the ongoing disruptions in the Red Sea. These exports were USD 9.54 billion in August 2023. "This dramatic decline has significantly impacted India's overall merchandise trade, leading to a 9.33 per cent reduction in August 2024 compared to the previous year," Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said. Interestingly, he said, crude oil prices remained relatively stable between these two periods, suggesting that the drop in petroleum product exports is "linked to ongoing disruptions" in the Red Sea. The yearlong ongoing disruptions have forced shipping routes to take longer paths around the Horn of Africa and the Cape of Good Hope, rendering exports to Europe less

Low crude prices: Refiners place spot orders from West Asia in September

Brent crude prices fell to a 33-month low last week amid oversupply concerns

DGGI suggests info-sharing with foreign governments, blocking websites

GST investigation arm DGGI has suggested reciprocal arrangements with foreign governments for information sharing and enforcement measures as well as blocking of websites to prevent tax evasion in OIDAR services like e-gaming, online education and advertisement. The move has been necessitated as it has come to DGGI's notice that there are entities, including online casinos that are based out of tax havens and also those which operate through offshore VPNs and cloud-based platforms. These entities are non-cooperative and appear to intentionally avoid tax compliance, and hence an information exchange with global law enforcement agencies would help crack down on any evasion. Online Information and Database Access or Retrieval (OIDAR) services are those which are delivered over the internet or electronic network and whose supply is essentially impossible without Information Technology. It includes a wide array of services viz cloud services, digital content, online gaming, online ...

Draft affiliation norms ease the compliance burden for 'new-age ITIs'

A private organisation or a public sector enterprise can open a 'New Age ITI' or can adopt and transform an existing ITI into a New Age ITI

Banks should adapt to changing customer needs to remain competitive: CEA

Chief Economic Advisor to the Centre, V Anantha Nageswaran has said banks should adapt to changing customer preferences and market dynamics in order to remain competitive. He highlighted the crucial role of agriculture in driving economic growth at an event organised by public sector Indian Bank here on Saturday. In his remarks on the topic 'Indian Economy and Banking: Growth and Trends", Nageswaran stressed on the importance of technological advancements in driving growth and innovation in the industry. The CEA, in a press release issued by the Bank, emphasised the need for banks to adapt to changing customer preferences and market dynamics to remain competitive. He hailed the Indian Bank for its efforts to invest in knowledge sharing and excellence and lauded it's initiative under the MSME Prerana programme which is aimed at training the entrepreneurs. In his address, Indian Bank Managing Director and CEO S L Jain said, "We are delighted to have Dr Nageswaran sharing his insight

Mospi may use GST data to calculate GDP figures after base year revision

So far the Goods and Services Tax Network was reluctant to share such data with MoSPI, citing confidentiality

ESIC new member addition increase by 13.32% to 2.25 million in July

Employees' State Insurance Corporation (ESIC) recorded a 13.32 per cent increase in subscribers addition to 22.53 lakh in July, 2024 compared to the figure of a year ago, according to the payroll data released on Friday. The latest payroll date released by the labour ministry showed that 19.88 lakh new subscribers were added in July 2023. The provisional payroll data of ESIC reveals that 22.53 lakh new employees have been added in July this year. According to the statement, 56,476 new establishments have been brought under the social security ambit of the ESI Scheme in the month under review. Further, the year-on-year analysis shows a growth of 13.32 per cent in net registrations compared to July 2023, it stated. The data further showed that out of the total 22.53 lakh employees added during the month, 10.84 lakh employees amounting to around 48 per cent of the total registrations belonged to the age group of up to 25 years. Also, a gender-wise analysis of the payroll data indica

FinMin extends exports incentive schemes to exports through courier

The e-commerce business in India has seen exponential growth over the last decade and is expected to witness a steep increase in revenues in the coming years

Govt removes MEP on basmati rice, onion; tightens stock limit on wheat

The MEP of basmati rice was first imposed last year at $1,200 per tonne before it was lowered to $950 per tonne