Asia

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...

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...

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...

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...