Indian economy remains a key driver of global growth amidst global challenges: RBI report
Elevated economic and trade policy uncertainties are testing the resilience of the global economy and the financial system.
'Financial markets remain volatile, especially core government bond markets, driven by shifting policy and geopolitical environment. Alongside, existing vulnerabilities such as soaring public debt levels and elevated asset valuations have the potential to amplify fresh shocks,' the highlights of the RBI report read.
The domestic financial system, according to the RBI, is exhibiting resilience fortified by healthy balance sheets of banks and non-banks.
Financial conditions have eased, supported by accommodative monetary policy and low volatility in financial markets.
The strength of the corporate balance sheets also lends support to overall macroeconomic stability, the RBI noted.
'The soundness and resilience of scheduled commercial banks (SCBs) are bolstered by robust capital buffers, multi-decadal low non-performing loans ratio and strong earnings,' RBI said in its report.
In the banking sector, results of macro stress tests affirm that most SCBs have adequate capital buffers relative to the regulatory minimum even under adverse stress scenarios.
'Stress tests also validate the resilience of mutual funds and clearing corporations,' it supplemented.
Non-banking financial companies (NBFCs) remain healthy with sizable capital buffers, robust earnings and improving asset quality.
As was widely expected, the Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25, official data showed recently.
The Reserve Bank of India had projected 6.5 per cent GDP growth for the fiscal year 2024-25.
In 2023-24, India's GDP grew by an impressive 9.2 per cent, continuing to be the fastest-growing major economy.
According to official data, the economy grew 8.7 per cent and 7.2 percent, respectively, in 2021-22 and 2022-23.
To realise the vision of 'Viksit Bharat', a developed nation dream by 2047, India will need to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two, the Economic Survey document for 2024-25 tabled on January 31 asserted. (ANI)
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Hindustan Times
14 minutes ago
- Hindustan Times
Sanjaya Baru interview: We've turned emigration of talented Indians into an aspiration
A record number of wealthy Indians are leaving the country. According to a recent report by Kotak Bank, one in five UHNIs is either in the process of migrating abroad or has plans to do so. Over 23,000 millionaires have left the country in the last decade, says Sanjaya Baru. In his latest book, Secession of the Successful: The Flight out of New India, the veteran journalist and policy commentator records the various phases of organised migration out of the country and examines the reasons behind the current exodus. Also read | Review: Sanjaya Baru's book does a favour to history, Congress Sanjaya Baru, an economist and political analyst, has written extensively on India's economic transformation and development. His recent book is Secession of the Successful: The Flight Out of New India. For the elite, the pull of the first-world life, especially in Dubai or Singapore, is too strong, says Baru. 'Why wait for 2047 to live in a developed economy if you can do so today?' he says. In this interview, Baru talks about how the exodus has been normalised, the political and economic factors driving it, and what it means for a country that hopes to be a developed economy by 2047. You argue in your book that India's elite aren't just leaving physically, they are slowly pulling away from the idea of India itself. So, would you call this book a warning, a lament, or a diagnosis? It's certainly not a lament. It is a warning. It's a diagnosis to begin with. The brain drain, or the export of human capital, drew attention 40 to 50 years ago when economists like Jagdish Bhagwati wrote about it. But in the last quarter century, no one is paying attention. We have normalised the emigration of talented Indians, to the point where the government actually takes pride in promoting it. So yes, it's a warning: that you're allowing more and more of your talented people to leave, and doing nothing to retain them. And it's a diagnosis, because I look at the different manifestations of emigration. You've described the secession as a flight from responsibility. The rich are also leaving Brazil, South Africa and Turkey. So, why should we be expecting something different from the elite in India? I don't expect anything different. This is not peculiarly Indian, nor is it new. If other countries don't pay attention, that's their headache. But as an Indian concerned about the economy, I worry that more and more talented Indians are leaving. You've written about the government facilitating emigration. Other countries try to curb it. Is this official encouragement a policy mistake? It is a mistake, but a recent one. Labour migration involves talent too, but given our large pool of unemployed workers, I don't worry about it as much. Highly qualified Indians leaving is something a poor, low-income, developing country like ours should worry about. Countries like China, Taiwan, or Korea had large-scale emigration 30 to 40 years ago, but now have return migration because they've become developed economies. We are not at that stage. We cannot prevent emigration. Proposals like Bhagwati's 'brain drain' tax in the 1980s were dismissed as impractical, but why should we encourage it? For example, the foreign minister recently launched the 'Global Access for Talented Indians' initiative. Why should the government get involved in sending people out? We are a capital-deficit economy — and by capital I mean not just finance, but also human capital. Our record in research, science, and advanced fields is poor for a country of our size. What role have political changes played, especially since 2014? The numbers show an increase in the emigration of wealthy and elite Indians over the last decade. There's an economic reason and a political reason. Economically, more Indians can now afford to buy citizenship overseas, property overseas, educate their children abroad, and live abroad. Politically, there is fear — of the taxman, the Enforcement Directorate, and harassment by the bureaucracy. Last year Prime Minister Narendra Modi promised an 'ease of living mission', but nothing was heard after that. Day-to-day life has become more of a headache: constant KYC forms, compliance demands. That's driving some people out. At diaspora events, overseas Indians cheer the Prime Minister and shout 'Bharat Mata ki Jai' and yet they don't return. Is this performative? It is performative, but more than that, it's the politicisation of the diaspora to serve domestic political needs. Every prime minister since 1947 has met overseas Indians; what's new is using these audiences to influence the domestic political process. This risks diplomatic consequences. 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Economic Times
14 minutes ago
- Economic Times
AMFI leads economic transformation with 3 decades of building an investor-first India
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When I look back at AMFI's 30-year journey, I see it running parallel to India's own transformation - from a closed, cautious economy in the early 1990s to a confident, investment-aware nation today. And at the heart of this change lies one simple, yet powerful idea: an informed investor is an empowered citizen. Starting from 1963 and well into the 1980s, the mutual fund industry was a single player domain- dominated by the state-owned UTI - catering to a limited number of investors. Market maturity was low, retail participation was negligible, and large institutions often influenced market movements. The early 1990s were a turning point. The early 1990s were a turning point. Economic liberalisation opened India's economy, and the creation of SEBI as an independent regulator brought much-needed structure, credibility, and investor protection to our capital markets. 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We envision a future where every Indian household has an investment plan, where women and youth lead the way in disciplined savings, and where financial security becomes a way of life, not a journey has always been about more than products or performance. It has been about trust built patiently over decades, discipline nurtured through awareness, and empowerment delivered through AMFI, we remain steadfast in keeping the investor-first approach at the heart of everything we do. Because when investors grow, India grows. And when India grows, the dream of Viksit Bharat will not just be a vision — it will be a reality. 'Karmanye vadhikaraste, Ma phaleshou kada chana' You have the right to perform your actions, but not to the fruits thereof. This timeless wisdom captures the spirit that guides us — to act with integrity, dedication, and unwavering purpose. At AMFI, our commitment remains clear: to empower every Indian with the knowledge and tools to invest wisely and build a secure future. Because when we focus on the right actions, the outcomes — for the investor, the industry, and the nation — will follow. (The author Venkat N Chalasani is Chief Executive – Association of Mutual Funds in India (AMFI). Views are own) (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times) (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of
Time of India
17 minutes ago
- Time of India
From Paytm to Eternal: 42 stocks where India's top performing PMS fund managers are betting on
India's sharpest money managers are placing bold bets on the market's most exciting new-age darlings and forgotten gems. The country's top 10 performing Portfolio Management Services (PMS) scheme in July made concentrated plays on everything from fintech unicorns to healthcare disruptors and speciality chemicals, shows data from PMS Bazaar. Here's where the smart money is flowing. InCred Asset Management - Healthcare Portfolio: Leading the Pack with 11.96% Returns The month's standout performer, InCred's Healthcare Portfolio, is doubling down on India's medical revolution with a 19.81% allocation to Healthcare Global Enterprises, the country's largest cancer care network. The fund's conviction play extends to diagnostics powerhouse Thyrocare Technologies (17.35%) and emerging player Krsnaa Diagnostics (11.62%). 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Data from 967 retail-sold stocks confirms your worst fear The positioning of India's top PMS performers reveals a clear trend: smart money is flowing into digital disruption stories, speciality chemicals, healthcare infrastructure, and industrial champions. With 42 distinct stock ideas ranging from established pharma giants to fintech unicorns, these fund managers are positioning for India's next growth phase while maintaining selective exposure across market caps and sectors. ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
