Daily News - Friday, 13 December 2024
India needs to boost reforms, says World Bank chief economist (Financial Express)
World Bank Chief Economist Indermit Gill has urged India to accelerate structural reforms to transition into a high-income economy, emphasizing productivity improvement through new technologies, innovation, and the growth of large firms as key drivers. Speaking at the CII Global Economic Policy Forum 2024, he highlighted three structural inefficiencies: underutilization of capital due to inefficient firms, low female workforce participation, and high energy-to-output ratios that make India one of the most energy-intensive economies. Gill also noted global economic growth deceleration, with advanced economies seeing potential growth rates halved over the past two decades.
India’s Growth Story is more Balanced than China’s: BCG Experts (The Economic Times)
India’s growth is more balanced compared to China’s, with a healthier investment-consumption mix, according to BCG Global Chief Economist Philipp Carlsson-Szlezak, who noted China’s capital-heavy growth is catching up with it. Despite potential shifts in global investments due to U.S. tariffs on Chinese goods, Carlsson-Szlezak highlighted China’s continued strengths in scale, policy stability, and production efficiency, areas where India needs improvement, as emphasized by BCG India Chairman Janmejaya Sinha. Sinha advocated reforms in education, water, digital health, contract enforcement, and land digitization, while Carlsson-Szlezak predicted globalization would persist despite protectionist trends under leaders like Trump.
Trump Tariffs Could Prove Good for Us, says FICCI Chief (The Economic Times)
Harsha Vardhan Agarwal, Ficci President, stressed the need for resilient supply chains to mitigate geopolitical risks and highlighted India’s moderated consumption growth, with private final consumption expenditure slowing to 6% in Q2 FY25 due to high food inflation (9.04% in November) and muted wage growth. While tariffs under Trump’s administration may benefit Indian industries, Agarwal emphasized competitiveness and called for increased capital expenditure, tax simplifications, and support for sectors like green energy and circular economy in the budget. He praised the success of production-linked incentives (PLIs) in electronics and mobile manufacturing and urged the government to address dumping concerns raised by steel and chemicals industries.
Our Growth will be Back on Track Despite Global Uncertainties: Goyal (The Economic Times)
Commerce and Industry Minister Piyush Goyal expressed confidence that India’s economic growth, which slowed to a near two-year low of 5.4% in Q2 FY25, will rebound by the fiscal year’s end, driven by festive spending, rural recovery, and renewed infrastructure investments. Despite global uncertainties, Goyal emphasized that India remains the world’s fastest-growing large economy and expects growth momentum to improve as policy-making regains pace post-election delays. He highlighted the critical role of modern technologies and innovation in shaping India’s future economic trajectory.
India to Become Third-Largest Economy by 2027-28: Vaishnav (The Economic Times)
Union Minister Ashwini Vaishnaw highlighted India’s manufacturing transformation, noting that the country now exports advanced goods like telecom equipment, with telecom exports projected to reach ₹40,000 crore. He predicted India will become the world’s third-largest economy by 2027-28, with nominal growth at 10-11%, driven by robust industrial output and initiatives like semiconductor manufacturing, where the first Made-in-India chips are expected by mid-2025. Vaishnaw also advocated for “one nation, one election” to minimize political disruptions and prioritize long-term national development goals.
