ECONOMIC GROWTH

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• India reaches out to multilateral development banks to draw road map for becoming developed nation by 2047

  The finance ministry held a meeting with multilateral lenders on March 7 and sought their inputs on what it termed a "budget-plus and finance-plus" strategy, which would essentially cover the entire spectrum of project execution and go beyond just planning and financing, people aware of the details told ET. The ministry has reached out to various multilateral bodies to help mobilise other development finance institutions (DFIs) and investors, they said.

  

• Pvt investments rise in India very visible, says ADB

  ADB, under Dasgupta's leadership, aims to increase private investments in India, focusing on clean energy and financial inclusion. Reforms and new models like IF-CAP are set to strengthen ADB's role in climate finance.

  

• Carmakers raise FY24 sales growth projection to 8.2%

  India's car industry has revised its growth projections to over 8%, driven by strong passenger vehicle sales and domestic consumption. The industry remains optimistic about growth, supported by low-interest rates, controlled inflation, and a fast-growing economy. Moody's raised its GDP growth forecast for India to 8% from 6.6%.

  

• Strong Q3 growth may push likely rate cuts to October

  The stronger than expected real GDP growth in the third quarter may prompt RBI to continue the status quo on policy rate. Economists believe the easing cycle may not begin before October. Rate cuts are unlikely, but RBI's communication on liquidity is important.

  

• Economy on a high growth trajectory due to sustained reforms: India Inc

  India's GDP growth in the October-December quarter of FY24 has surpassed expectations, driven by double-digit growth in manufacturing and strong performance in mining, quarrying, and construction sectors. The GDP growth was 4.3% in the October-December 2022 quarter, according to data from the National Statistical Office (NSO). The robust expansion came despite geopolitical flashpoints and is supported by structural reforms and improvements in business ease and cost.

  

• Preference for locally made goods to support mfg sector achieve 25% of the GDP of $30 trillion economy: Goyal

  Piyush Goyal, India's Minister of Commerce and Industry, emphasized the potential for India to become a global manufacturing powerhouse by focusing on exports and promoting locally made goods. He urged stakeholders to support the manufacturing sector, stating it could contribute 25% to the GDP of a $30 trillion economy in 2027.

  

• Use of tech, digital platforms common thread in reforms

  India's world-class digital public infrastructure (DPI), known as the India Stack, enables online, paperless, and cashless digital access, improving financial inclusion, transaction efficiency, and economic opportunities. The India Stack, consisting of Aadhaar, Unified Payments Interface (UPI), and account aggregator, creates digital identities, facilitates access to finance, reduces transaction costs, and improves tax collection.

  

• RBI Governor Shaktikanta Das foresees robust 7% economic growth in FY25

  RBI Governor Shaktikanta Das, who was speaking at an event at Davos organised by the Confederation of Indian Industry on the occasion of the annual meeting of World Economic Forum, has also used the global stage to make a case for central banks' intervention to reduce exchange rate volatility especially in emerging markets.

  

• India estimates GDP growth at 7.3%. Economists decode the numbers

  DK Joshi says: “The next year will be a little bit more challenging because the interest rate hike will impact the economy with a lag, so that will come into effect. Global economy is expected to slow down. But having said that, we believe that even in the next fiscal year, India will remain an outperformer as far as growth is concerned.”

  

• Generative AI could boost India's economy by $1.2-1.5 trillion in the next seven years: EY study

  The EY report threw up valuable insights into how various industries are gearing up for the adoption of Gen AI. Based on a detailed survey that covered over 200 C-suite participants, the findings show that 60% of organisations acknowledge the significant influence Gen AI will have on their business models. However, around 75% express a low to moderate level of readiness to harness the benefits of Gen AI.

  

• Advance tax mopup rises 20% YoY in April-December

  The Centre has budgeted ₹18.20 lakh crore from direct taxes in FY24, a 9.6% rise from the latest estimate available for FY23. The budget estimate (BE) for direct tax revenue in the last fiscal (FY23) was ₹14.2 lakh crore. It was later revised to ₹16.5 lakh crore and ended marginally higher at ₹16.61 lakh crore.