Daily News - Tuesday, 4 March 2025
‘India's developed nation dream realistic, achievable’(mint)
India’s goal of becoming a high-income economy by 2047 is realistic but requires structural reforms, sustained high growth, and increased investment, according to World Bank Country Director Auguste Tano Kouamé, who highlighted India’s strong 6.3% average growth over the past 25 years despite global economic shocks. To achieve the necessary 7.8% annual growth, India must raise its investment-to-GDP ratio from 33.5% to 40%, improve labour market flexibility, boost skill development (especially for women) and enhance public-private sector efficiency, while easing access to land and finance for businesses. Citing successful regulatory models in states like Gujarat, Tamil Nadu, and Maharashtra, Kouamé stressed the need for nationwide business-friendly reforms, streamlined approvals, and efficient governance to sustain long-term economic momentum.
Mfg PMI at 14-mnth low in Feb (mint)
India’s manufacturing growth slowed in February, with the HSBC India Manufacturing PMI dropping to 56.3 from January’s six-month high of 57.7, marking the weakest expansion since December 2023 as sales and output growth hit a 14-month low. Despite the decline, the sector remained in expansion for the 44th consecutive month, supported by strong global demand, increased purchasing activity, and new project investments, though the GDP growth rate of 6.2% in Q3 FY24 highlights a challenging path to meeting the 6.5% full-year growth target. HSBC Chief India Economist Pranjul Bhandari noted that while momentum has softened, business expectations remain strong, with nearly one-third of firms anticipating higher output volumes in the coming year.
India to deploy chilled onions to keep supplies timely and prices stable (mint)
For the first time, India plans to deploy dedicated refrigerated railway containers to transport onions nationwide, aiming to reduce wastage, stabilize prices, and prevent supply disruptions, with the Consumer Affairs Ministry in talks with CONCOR under the Railway Ministry to implement this initiative. Currently, a significant portion of onions spoil due to transport in open wagons, but using cold-chain logistics will extend shelf life, improve quality, and benefit both farmers and consumers, as highlighted by industry experts. The move follows past price surges due to supply shocks, and with a full goods train capable of transporting 1,700 tonnes of onions—far exceeding a truck’s 25-tonne capacity—the initiative is expected to enhance efficiency and ensure stable supplies, especially during peak festival seasons. (Source: mint)
Gold's relevance set to rise: CEA (Financial Express)
Gold will continue to play a crucial role in portfolio diversification with increasing importance as an asset class, according to CEA V. Anantha Nageswaran, who highlighted its relevance amid global monetary uncertainties at the IGPC-IIMA Gold Conference 2025. Over the past three months, gold prices have surged by over $200 per ounce (8%) to $2,860 per ounce, while stock markets have declined by more than 8%, and since 2002, gold’s value has increased tenfold. With domestic gold prices at approximately ₹85,000 per 10g and India being a net importer, Nageswaran emphasized the need to reassess past gold monetization policies to ensure fair compensation for depositors while acknowledging gold’s deep cultural and financial significance.
Tesla yet to discuss domestic production plans with Centre (The Hindu)
Despite India’s policy offering a reduced 15% customs duty (down from 70%) for high-value EVs in exchange for domestic manufacturing with a minimum ₹4,150 crore investment, Tesla has not engaged in discussions with the government beyond attending an initial industry meeting as an observer. The scheme requires manufacturers to achieve 25% domestic value addition within three years and 50% by the fifth year, yet Tesla has not indicated any commitment to local production, though it recently posted 13 job openings in Mumbai. Meanwhile, the Ministry of Heavy Industries is set to finalize implementation guidelines through inter-ministerial consultations with Finance, Electronics & IT, Commerce, and NITI Aayog, with an official announcement expected within the next two months.
