ECONOMIC ASSESSMENT IN INDIA
Can new RBI Governor balance economic growth & climate crisis challenges?
The new RBI governor must balance economic growth and inflation control while addressing climate risks. This involves integrating climate considerations into financial policies, promoting green finance, and ensuring financial system stability. The RBI should also encourage more green loans and investments to support India's transition to a low-carbon economy.
59% of Indian companies suffered financial fraud in 24 months
A new survey reveals that 59% of Indian companies faced economic fraud in the last two years, a significant increase from previous years. Procurement fraud has overtaken customer fraud as the primary concern, while globally, cybercrime remains the top threat. Although companies are leveraging data analytics, more robust preventative measures are needed to combat these rising fraud risks.
Niti Aayog to undertake research study on cost of doing business in India
NITI Aayog will research business costs in India. The study will compare India with competing nations. The aim is to boost India's attractiveness for investment. Researchers will analyze labor, land, and regulatory costs. The study will cover key sectors and benchmark against other economies. Policy recommendations will be made to reduce costs and improve competitiveness.
DMEO to evaluate decentralized procurement of wheat and paddy under the Minimum Support Price (MSP) scheme
The Development Monitoring and Evaluation Office, under the NITI Aayog, has invited bids from consultancy firms to support in the evaluation of the scheme which entails an annual expenditure of over Rs 70,000 crore. The move is aimed at rationalizing the food subsidy outgo.
ET Awards for Corporate Excellence: Grasim Industries wins Economic Times Conscious Corporate Award
Grasim Industries won the ET Conscious Corporate Award for its significant ESG progress. The company focuses on renewable energy, water recycling, and circular solutions. Its CSR initiatives, impacting over 1.2 million people, also contributed to the win, demonstrating a commitment to sustainable practices and social responsibility.
Downturn blues ease as Q3 advance tax mop-up jumps 16.8%
Advance tax collections for Q3 surged 16.8% to ?3.14 lakh cr, signaling a potential economic rebound after a recent slowdown. Total collections for the fiscal year reached ?7.5 lakh cr, a 20.19% increase. Economists suggest this growth indicates a recovery from the 5.4% GDP growth in the previous quarter.
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IIT Guwahati, IIT Mandi, and CSTEP Bengaluru release district-level climate risk assessment report for India
A new report reveals 51 Indian districts face "Very High" flood risk and 91 face "Very High" drought risk. Alarmingly, 11 districts are highly vulnerable to both. The report, a collaboration between IITs and CSTEP, urges targeted adaptation strategies and capacity building for a climate-resilient India.
ET CEO Roundtable: An economy in slow motion needs a policy on fast forward
The big picture is of resilience, and India's on the right track, underpinned by financial and macroeconomic stability, said the elite panel of the ET CEO Roundtable, while not glossing over growth and job creation concerns. To unleash the animal spirits and help India realise its full potential, it needs policy catalysts, the panelists said in a discussion.
Work on to assess safety of AI; job loss from GenAI not intense in India: IT Secy
India's IT ministry is developing a system to evaluate the safety and trustworthiness of AI solutions. Prioritizing innovation, the ministry aims to avoid stifling regulations, instead focusing on assessment. While acknowledging concerns about job displacement, the ministry believes India's impact will be less severe than in the West. Regulations for data protection and copyright are also being addressed.
Expect economic growth of 6.5-7 pc this fiscal; pick up in private investment: FICCI President
FICCI President Harsha Vardhan Agarwal anticipates 6.5-7% GDP growth for the current financial year, despite Q2's 5.4% being a "temporary phenomenon." He expects private investment to rise with increased capacity utilization and sees fewer challenges from the incoming US administration. FICCI recommends a 15% capex increase in the upcoming budget.
Union Budget 2025-26: CII urges Centre to stick to fiscal deficit target of 4.9% of GDP
The Confederation of Indian Industry (CII) has advised the Indian government against setting overly ambitious fiscal deficit targets for the upcoming financial year, warning that it could hinder economic growth. The CII recommends maintaining a 4.9% fiscal deficit target for 2024-25 and 4.5% for 2025-26.
Budget 2025: CII urges govt to stick to fiscal deficit target
The Confederation of Indian Industry (CII) advises the Indian government to maintain a fiscal deficit target of 4.9% of GDP for 2024-25 and 4.5% for 2025-26. They cautioned against overly ambitious targets, emphasizing the importance of fiscal prudence for sustained economic growth and suggesting measures like fiscal stability reporting and incentivizing states towards fiscal responsibility.
No plan on law to mandate legislative impact assessment: Govt in Rajya Sabha
The Indian government has no plans for a law mandating post-enactment impact assessments of parliamentary acts. Individual ministries are currently responsible for studying the effects of enacted laws. The Law Commission is reviewing existing laws, identifying those needing repeal or amendment to align with current economic needs.
Govt working on centralised data repository for state welfare schemes
India is developing a central database for state-run welfare schemes and beneficiary data. This initiative aims to enhance data quality and accessibility, enabling better assessment and targeting of programs. The Ministry of Statistics is collaborating with states to gather administrative data, including beneficiary demographics and expenditures.
Quarter se quarter tak
The Q2 GDP estimates show a significant slowdown in India's economy with a growth rate of 5.4%, far below the expected 7%. Sectors like manufacturing and mining faced severe drops. The Monetary Policy Committee faces a dilemma as inflation rises to 6.2%, questioning the balance between fostering growth and controlling inflation.
Lenovo's growth slips again in India amid weak PC market
Lenovo India's sales and profits dropped for the second year in a row. The Indian computer market has slowed down after the pandemic. The company's total income decreased by 14%. However, Lenovo India saw a small increase in profits due to cost-cutting measures. The company is holding more cash reserves now, which is a positive sign.
FM Nirmala Sitharaman flags mis-selling of insurance, calls for collateral free loans to MSMEs
Indian Finance Minister Nirmala Sitharaman raised concerns about insurance mis-selling, emphasizing its contribution to higher borrowing costs for customers. She urged banks to focus on affordable lending rates to support industrial growth and advocated for digital financial inclusion. Sitharaman highlighted India's economic resilience and the need for transparency in banking practices.
RBI may defer rate cut call to February as inflation's still hot
Economists predict that the Reserve Bank of India may postpone a rate cut until February. This delay is attributed to concerns about rising inflation and global market instability. The central bank is closely monitoring food inflation, particularly in edible oils and vegetables. Despite these concerns, some analysts anticipate a rate cut in December, citing slowing economic growth.
Why dealing with China along separate economic and diplomatic lines won't work
India faces a challenge in managing its economic relationship with China. The government aims to promote growth and leverage economic ties for border negotiations. India is cautious of Chinese investments and aims to reduce reliance on China for critical sectors. There is a need to balance economic engagement with national security concerns.
How Trumponomics works for India, and how it doesn't
Donald Trump's economic policies may bring opportunities and challenges for India. India could benefit from US investments shifting away from China. However, trade tariffs and stricter immigration policies under Trump's leadership could negatively impact India. The overall impact of Trumponomics on the Indian economy remains uncertain.
States endorse MoSPI plan for district surveys
India is gearing up to collect economic data at the district level, aiming to release gross district development figures by January 2026. This initiative, endorsed by all states, will encompass data on household consumption, employment, inflation, and more. The move aims to bolster the state statistical system and provide valuable insights for both government and private sector decision-making.
Exporters could face some heat, focus may shift to India growth story
One of the key elements of Trump's election manifesto was a universal tariff on imports from all countries. Imports from China would, however, face a 60% tariff. Such duties are aimed at discouraging imports and boosting domestic production in the US.
India may face 24.7% GDP loss by 2070 thanks to climate change: ADB report
Climate change may cause substantial GDP losses in Asia and the Pacific by 2070. India is likely to experience a 24.7 per cent GDP reduction. Rising sea levels and decreasing labour productivity are significant factors. Up to 300 million people in the region could be at risk, and trillions of coastal assets face annual damage.
India's economic paradox: Balancing startup growth with rising unemployment
India's significant contrasts include booming markets and high unemployment. The nation's aspirational goals hinge on broad-based growth, education reform, startup support, and policy improvements to transition from a developing to a developed economy. Effective deployment of the demographic dividend is crucial.
Small finance banks' reliance on high-cost deposits a concern: RBI
The Reserve Bank of India has voiced concerns about small finance banks' over-reliance on high-cost term deposits and potential defaults due to inadequate credit underwriting. RBI also highlighted cyber threats, poor customer service, and high charges, stressing the need for robust underwriting to mitigate risks.
Rs 11,637 cr economic impact of 2023 ODI World Cup in India: ICC
The 2023 ODI World Cup in India generated an economic impact of USD 1.39 billion, benefiting tourism significantly. The event saw a record-breaking attendance of 1.25 million spectators and created over 48,000 jobs. International visitors contributed to USD 281.2 million in economic impact, enhancing India's global image as a tourist destination.
Commerce dept mulls trade pact talks SOP, chapter on critical minerals in Chintan Shivir
The government in New Delhi is focusing on critical minerals in FTAs, data adequacy issues, and challenges in e-commerce. SOP for trade pacts, real-time negotiation challenges, and data sovereignty issues were discussed by the commerce ministry.
RBI may delay plan to ease interest rates
The RBI has raised the benchmark policy rates by 250 basis points (one bps is 0.01 percentage point) since May 2022 as inflation surged way beyond the central bank's 4% target. But inflation is slowly aligning with the target, although concerns remain over the trajectory for food inflation.
Rate easing may have to wait, highlights RBI in its latest bulletin
¡°A modest easing of headline inflation in the reading for April 2024 confirms the expectation that an uneven and lagged pace of alignment with the target is underway¡± wrote the Reserve Bank of India deputy governor Michael Patra and his team in their assessment of the economy published in the latest monthly Bulletin.
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