Daily News - Friday, 15 November 2024

India ranks 3rd in improving its business environment (mint)

⁠India has emerged as the third most improving country in terms of business environment, driven by advancements in foreign direct investment policy, foreign trade, and regulatory reforms, according to the Economist Intelligence Unit (EIU) 2024 rankings, which span past and projected future trends. Recognized for its youthful demographic, strong economic fundamentals, and enhanced digital infrastructure, India stands out as a promising market comparable in scale to China, especially as global investors diversify away from China to South and Southeast Asia. Though challenges remain in job creation, the Modi government’s focus on infrastructure and manufacturing incentives is expected to position India for sustained growth, with significant policy developments anticipated in the upcoming budget on February 1. 

Focus on ‘unicornism’ in India overhyped: Rishad (Business Standard)

⁠Wipro Executive Chairman Rishad Premji criticized the excessive focus on “unicornism” in India, calling it “overhyped” and stressing that business sustainability should take precedence over rapidly achieving high valuations. Premji noted that the obsession with valuation often detracts from building genuinely valuable, need-fulfilling businesses, highlighting that many successful companies do not achieve unicorn status but still contribute meaningfully. This perspective contrasts with a recent CII-McKinsey report, which projects that India’s unicorns could add $1 trillion to the economy by 2030 and generate 50 million jobs, underscoring the dual emphasis on economic impact and sustainable business growth. 

⁠RBI must cut rates to boost growth, look through food prices, says Goyal (The Hindu)

⁠Union Commerce Minister Piyush Goyal advocated for a cut in interest rates to boost economic growth, arguing that the Reserve Bank of India (RBI) should overlook food inflation, which is primarily supply-driven, in its monetary policy decisions. Emphasizing his personal stance, Goyal echoed sentiments from India’s 2023/24 Economic Survey, which suggested that India’s inflation-targeting framework should exclude food inflation to better support growth objectives. This call comes amid a 14-month high in retail inflation, driven largely by food prices, which has dampened middle-class spending and raised concerns over the country’s economic momentum. 

⁠India expects Trump’s return will improve oil availability, ease prices (The Indian Express)

⁠India’s Petroleum Minister Hardeep Singh Puri anticipates that increased oil production in the Western Hemisphere, especially from the U.S., Canada, Brazil, and Guyana, coupled with Donald Trump’s diplomatic focus on conflict reduction, will lead to greater oil availability, benefiting major importers like India. Analysts note that rising non-OPEC+ oil output, including the U.S., has driven Brent crude down from $85 to $72 per barrel recently, challenging OPEC+ to maintain its market share despite production cuts. Additionally, Trump’s emphasis on “Drill, baby, drill” and potential tariff hikes on imports could further stabilize the oil supply, while his proposed peace efforts could add much-needed predictability to the global oil market. 

⁠Trade with US will continue to grow fast: Govt (Financial Express)

India’s trade relationship with the U.S. has strengthened steadily across multiple presidencies, with India’s share of U.S. imports rising to 2.8% in 2023 from 0.9% in 2001 and Indian exports to the U.S. growing at a 10.48% CAGR over this period. For 2023-24, bilateral merchandise trade reached $119 billion, with India’s exports at $77.5 billion and imports at $42.1 billion; services trade further boosted engagement, with India exporting $36.3 billion in services and importing $25.9 billion. Commerce Secretary Sunil Barthwal expressed confidence in ongoing trade growth, supported by frameworks like the Indo-Pacific Economic Framework for Prosperity (IPEF) and strong mutual demand for services.