BUSINESS
GDP: Services sector stands out as a growth engine, but an erratic monsoon could play party pooper
When companies, individuals, and households take loans, chances are, they are feeling more confident about their business and income prospects, confident enough to commit themselves to long-term loans to buy houses and cars and invest in businesses. The evidence in the national income data indicates a trend towards this.
BUSINESS
Credit ratings agencies’ credibility record is peppered with questions on methodology and bias
What is the information and data matrix that Moody’s has gathered and processed to prompt them to flag rising political risks in India? Data and information are the very edifices on which the architecture of any ratings action and annotation should rest. There is now a wide body of credible academic literature that have spared no punches on CRAs’ bias against emerging economies
INDIA
I-Day speech: PM bets on middle class beyond metros to power next growth phase
India’s economic growth ambitions are predicated upon the emergent spending power of the neo-middle class, whose ranks, the Prime Minister said, has surged as development lifts millions out of poverty.
BUSINESS
Rupee takes cautious steps towards internationalisation as case for de-dollarisation strengthens
India is seeking to ride on bilateral trade pacts to internationalise the rupee and reduce dependency on the dollar. Besides tariff levels and the removal of measures and provisions that act as trade barriers, India has now thrown currency into this mix as a matter of strategic interest.
BUSINESS
India’s flag fluttering tall on the high seas of world trade
What has stood out is India’s ability to drive trade pacts as growth multipliers, thereby giving Indian artisans, goods makers and service providers easier barrier-free access to overseas markets.
ECONOMY
At 6.1%, India’s Q4 GDP faster than the biggest, but there are a few worry lines
Both consumption spending and government spending will have to quickly accelerate onto a faster lane and continue to expand consistently over the medium term to maintain India’s growth momentum
BUSINESS
India top destination for China Plus, but conditions apply
The armies of youth joining the queue of hopefuls should be skilled and upskilled to meet the labour demand. And, the policy and regulatory architecture has to remain consistent to enable long-term investment
POLITICS
In the battle of poll promises in Karnataka, fiscal prudence should not be the casualty
The new government will have to factor in a Rs 16,000-18,000 crore payout on the Seventh Pay Commission. Interest payments as a percentage of revenue receipts have risen from 10.6 per cent in 2019- 20 to 15.1 per cent in budget estimates for 2023-24, and off-budget borrowing is a concern too. Higher committed expenditure will leave little fiscal room for developmental spending
BUSINESS
India’s $2 trillion export goal hinges on states and districts coming along
The road for the plucky drive for exports is through the districts and states that are economically laggard, but has the potential to join the trade route through enhanced infrastructure that will considerably cut down the factory-to-port travel time
BUSINESS
Ajay Banga could pivot changes in World Bank’s development paradigm with the India model
The new grammar of political reforms and governance is an evolving rule book that will have implications on how economic progress gets translated into social equalities, an area that Banga may like to spend some time on in the World Bank
BUSINESS
IPEF: India should trade cautiously on the clean economy pillar
Decarbonisation conditions warrant careful examination and scrutiny from India’s negotiators. India faces the challenge of balancing its economic growth ambitions while still being on the correct side of the climate change fence
BUSINESS
Air India’s Boeing, Airbus orders are a big deal for the West. Because it’s about jobs, stupid
From the days of protesting jobs being taken out from the US to offshore centres in India to now cheering an order by an Indian company that creates jobs in America and Europe, the axis of economic might seems to have decisively turned
BUSINESS
Budget 2023: FM pins hopes on textbook play of capex multiplier
There are, however, headwinds that need factoring in. These include: a rebound in the Chinese economy, persistently shaky global financial conditions, uncertainties and shifting geo-political developments, disorder in global trade, and knock-on effects on inflation due to rising crude oil prices
BUSINESS
Economic Survey: Time to canter amid visible signs of private sector 'crowding in'
The survey explicitly states the government’s intent to walk the talk on frontloading investment in infrastructure that will go on to trigger cycles of private sector investment
BUSINESS
Budget 2023: FM Sitharaman would do well to avoid a ‘populist’ budget
Budget 2023 presents an opportunity to fix gaps in capital gains and individual income tax structures. Sound fiscal policy management can also be politically prudent without being blinded by rank short-termism of electoral calendars
BUSINESS
How long can states sustain on Centre’s fiscal support and perpetual loans?
New sources of risk such as a return to the old pension system, and mounting overdue of power discoms could push many states to a fiscal precipice
BUSINESS
World @ 8 Billion | For India, it is about rising median age
Population ageing will have implications on economic growth rates, labour force participation, and brands. For the last three decades, the dominant mantra for brands has been: get the youth hooked. This may have to change
BUSINESS
Consumer demand, high commodity prices, and better compliance behind surge in GST collections
It has taken five years, punctuated by two pandemic years, for revenues to stabilise. This now needs to be made less inflation-dependent, and also better balanced collections across states, where most states’ GST revenue growth consistently remains above the 14 percent mark
BUSINESS
Policy easing can help startups battle funding winter chill
It may be about time for the government to clarify on ‘beneficial ownership’ under Press Note 3 of the FDI policy, and ease some rules, for funds to flow in quickly, and enable capitalisation of India’s promising startup ventures
BUSINESS
National Logistics Policy | NLP can do to India’s logistics what UPI has done to payments
The pivot idea of the National Logistics Policy will be the seamless interoperability, through an overarching interdisciplinary, cross-sectoral, and multi-jurisdictional architecture backed by a robust tech backbone
BUSINESS
At 13.5% Q1 GDP growth, economy noses ahead of pre-pandemic levels
High oil prices and a weakening rupee have had a sobering effect, with value of imports recording a sharp jump in the quarter compared to the same period in 2021
BUSINESS
Many Indian states mirror costly debt slip-ups that rattled Sri Lanka
Punjab spends 21.3 percent of its revenues on interest payments, Tamil Nadu 21 percent, West Bengal 20.8 percent, and Haryana 20.9 percent
POLITICS
Non-merit poll freebies are promissory notes at taxpayers’ expense
It is critical to remain persistently focused on achieving inter-generational upward social and economic mobility and that is where the lens should be. Not on giveaways that follow an electoral calendar
BUSINESS
Revival Package | BSNL needs the smarts, not just capital, to stay in the race
Data and smart offerings will be the vehicles for higher ARPU on the path towards profitability. This requires comprehensive professionalisation, and a mindset overhaul
