Asia

<strong>India’s consistently grows on high road</strong>
Asia

India’s consistently grows on high road

Effects of economic reforms visible, H1 FY2023-24 GDP grows at 7.7% India has exhibited remarkable strength and resilience in the post-COVID era, with the Gross Domestic Product (GDP) witnessing an annual growth rate exceeding 7% over the past two financial years (2021-22 and 2022-23). As per Q1 and Q2 of FY 2023-24 estimates provided by the Ministry of Statistics and Programme Implementation, this positive trajectory has persisted into the current fiscal year too, with GDP growth remaining above 7% in both the first and second quarters. The Q1 2023-24 grew at 7.8% and Q2 2023-24 grew at 7.6% making an average growth rate of 7.7% in H1 or First Half of the FY 2023-24. This consistent economic performance underscores India's ability to rebound effectively from the challenges posed by...
China’s Real Estate Crisis: A Precarious Balancing Act Threatens Economic Stability
Asia, China, Market

China’s Real Estate Crisis: A Precarious Balancing Act Threatens Economic Stability

China's real estate sector is facing a severe crisis, prompting the government to encourage financial institutions to support struggling developers burdened by massive debt. The dilemma for Beijing lies in defusing local government debt risks while propping up the real economy to sustain growth. This critical situation highlights the intricate dance between economic stability and social harmony, as the housing issue is closely tied to both. The government's recent call for support underscores the gravity of the situation, especially with major developers like China Evergrande on the verge of collapse. The future looks bleak for China’s real estate sector. Even government support may not be enough to ameliorate this crisis. 2.         China's prop...
<strong>India-Sri Lanka’s Connect for Gems and Jewellery Industry: Exploring the potential</strong>
Asia

India-Sri Lanka’s Connect for Gems and Jewellery Industry: Exploring the potential

The recent rise in Sri Lanka's gems and jewellery export revenue[1] despite domestic and global economic challenges has led to a renewed discourse on the need to boost up the sector and address existing challenges faced by the industry. In a meeting held in August 2023, President Ranil Wickremesinghe showed keenness to devise plans for further enhancing annual exports, addressing the challenges faced by the industry, reforming the tax policies, and attaining the US $2 billion annual export target[2][3]. The industry has suffered severe setbacks during the repeated waves of COVID-19 and has become one of the worst-affected industries, with exports declining by more than 50 percent[4]. Thus, the revival of the industry’s revenue in recent times, amidst the economic turmoil is commendab...
India’s GDP is rising faster than anticipated and is still the fastest-growing major economy.
Asia, World

India’s GDP is rising faster than anticipated and is still the fastest-growing major economy.

India's economy outpaced analysts' predictions, registering robust growth of 7.6 per cent in the three months to September compared to a year ago, according to government data released on Thursday. The figure surpassed all estimates in a Bloomberg survey of economists and exceeded the Reserve Bank of India's projection of 6.5 per cent. Despite challenges like surging inflation and multiple interest rate hikes by the RBI, India retains its position as the fastest-growing major economy globally. The growth is attributed to factors such as strong manufacturing performance, increased consumption, and the Indian government's heightened spending ahead of upcoming elections. Bloomberg cited Madhavi Arora, an economist with Emkay Financial Services, who highlighted the factors driving In...
According to government figures, the Indian economy grew by 7.6% during the July–September quarter.
Asia, World

According to government figures, the Indian economy grew by 7.6% during the July–September quarter.

India's economy grew at a much faster pace than expected in the July-September quarter, helped by government spending and manufacturing. Asia's third-largest economy expanded 7.6 per cent in the September quarter, much faster than the 6.8 per cent forecast in a Reuters poll of economists and the Reserve Bank of India's estimate of 6.5 per cent. COMMENTARY: UPASNA BHARDWAJ, CHIEF ECONOMIST, KOTAK MAHINDRA BANK "The sharp upside surprise to the second-quarter GDP figures is a welcome sign, especially as it comes in the backdrop of a broad-based pickup across most non-agricultural sectors." "We, however, expect the second-half growth to moderate. Having said that, the full year GDP numbers have got a big fillip after today's figures."
Indian economy predicted to continue growing strongly in spite of the world’s woes
Asia, World

Indian economy predicted to continue growing strongly in spite of the world’s woes

Indian economy is likely to continue its strong growth in the quarter to end of September, helped by a solid urban consumption and government spending, outpacing a slowing global economy squeezed by elevated interest rates and higher energy prices.Asia's third-largest economy is expected to grow at 6.8 in the July-September quarter compared with a year earlier, according to a Reuters poll. India will release the quarterly gross domestic product figures at 1200 GMT on Thursday. India's is seen as the bright spot globally as some Western countries are flirting with the possibility of recession, while China, the world's second-largest economy, has slowed down.The poll's consensus forecast is higher than Reserve Bank of India's projection of 6.5 for the quarter, but lower than the 7.8 grow...
India’s Quest For Global Manufacturing Hub Gains Momentum With Strategic Investments
Asia

India’s Quest For Global Manufacturing Hub Gains Momentum With Strategic Investments

Taiwanese tech giant and a key contributor to Apple's revenue, Foxconn plans a $1.6 billion more investment in India, aligning with its strategy to diversify manufacturing away from China amid U.S.-China tensions. Over years, Foxconn has been pivotal in India, producing iPhones, including the latest iPhone 15, generating approx. $10 billion annually. This investment underscores Foxconn's commitment to expanding its Indian footprint. India's tech manufacturing advances with Google's Pixel 8 production, positioning the nation as a global leader. Initiatives like the Production-Linked Incentive (PLI) and SPECS reinforce India's manufacturing push. With a target of $300 billion in electronics manufacturing and exports by 2026, India's strategic advantages make it a compelling alternative...
<strong>No Signs of Pakistan’s Economic Revival</strong>
Asia

No Signs of Pakistan’s Economic Revival

Earlier this month, Moody’s Investors Services highlighted Pakistan’s susceptibility to balance of payment (BoP) crises, citing its lowest level of exports at 10.5 per cent of Gross Domestic Product (GDP) among South Asian countries.[1] According to the agency’s report titled ‘Sovereigns – South Asia, Low trade openness fuels vulnerability to shocks and curbs growth in the longer run,’ Pakistan stands out as one of the most vulnerable economies among the four sovereigns assessed in the region.[2] These vulnerabilities reportedly stem from substantial pressures on the balance of payments due to exceptionally low levels of exports and foreign direct investment (FDI), coupled with weaker policy management and heightened political risk.[3] In contrast, India emerges as the least vulnerable ec...
At-level debate on the “flight of capital” from India and how to stop it by the finance ministry
Asia, World

At-level debate on the “flight of capital” from India and how to stop it by the finance ministry

The issue of how to control and curb the flow of money leaving India seems to feature prominently in the minds of the Modi government’s officials of late, with the latest sign being deliberations at the Ministry of Finance on the “flight of capital” of high net-worth individuals (HNIs) out of the country, ThePrint has learnt. The government had earlier this year announced a hike on tax collected at source (TCS) on international transactions, while Prime Minister Narendra Modi Sunday voiced concern over the trend of Indians going abroad to get married. The matter of flight of capital of HNIs was discussed at the Chintan Shivir of the ministries of finance and corporate affairs, held in August at Kevadia in Gujarat. ThePrint has accessed the minutes of the meeting, which reveal, ap...
After surging to become the best-performing currency in the world, the Pakistani rupee has collapsed. What took place?
Asia, World

After surging to become the best-performing currency in the world, the Pakistani rupee has collapsed. What took place?

The Pakistani rupee has fallen 20% against the dollar this year, Bloomberg reported. That's after spiking in October, as demand for the rupee surged on a clampdown on illicit dollar transactions. But due to Pakistan's floundering economy, the rupee is the worst performing Asian currency this year. The Pakistani rupee has plunged about 20% against the dollar this year, putting it on track to end 2023 as Asia's worst-performing currency, Bloomberg reported on Monday. But if you rewind just a month, the currency was briefly the top performer in global markets. What happened? The rupee soared 8% in October to 275 per dollar after hitting a record low in September because of the Pakistani government's response to illicit dollar transactions, according to the Indian lender HDFC S...