India's next phase of growth must focus on per capita GDP: Report
Live Events
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
India has overtaken several economies in terms of GDP over the past decade, but its citizens' per capita income remains poor. In that context, a report by Llama Research suggested that the next phase of India's growth must translate into individual prosperity.Manufacturing scale-up, digital formalisation, and rising income tiers are some of the reasons that are at India's advantage.Noting that India ranks the lowest on per capita income among the top 10 economies, Llama Research asserted, "This isn't a flaw, it's a window of compounding potential."Tech savvy population, solid policy, room for long-term capital formation, and macro stability are some other positives for India, according to the report."India is not just rising in rank, it's building the foundations to lead from the ground up," Llama Research said in the report 'India's growth: Journey from size to strength'.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.India has made quite a turnaround, climbing the ladder of economic growth. This can be gauged from the 11th in 2013-14, India has positioned itself to become the fourth largest economy. Even as India has overtaken many countries in terms of the size of the economy over the past decade, the per capita income in India remains very low.In 2013, India was placed in the league of 'Fragile 5' economies. The term 'Fragile 5' was coined by a Morgan Stanley analyst and refers to a set of five emerging countries, including India, whose economies were not doing well. The other four countries were Brazil, Indonesia, South Africa, and Turkey.Currently, India is the fifth largest economy, and among the fastest-growing major economies. It is projected to remain so over the next few years, as many global agencies have anticipated.In the current financial year, India is set to overtake Japan to become the world's 4th largest economy, as projected by IMF.As was widely expected, the Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25. In 2023-24, India's GDP grew by an impressive 9.2 per cent.According to official data, the Indian economy grew 8.7 per cent and 7.2 percent, respectively, in 2021-22 and 2022-23.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
14 minutes ago
- News18
Not So ‘Nobel'? Why Pakistan's Push For Trump Reeks Of A Strategic Gamble
Last Updated: Official sources in India said Pakistan's move is aimed at strengthening ties with US, securing economic and technological support, and gaining American backing on Kashmir In a diplomatic move, Pakistan has formally nominated US President Donald Trump for the Nobel Peace Prize. Official sources within Pakistan's government have confirmed that the nomination stems from their belief that Trump played a pivotal role in defusing the tensions during the India-Pakistan crisis of May 2025. However, official sources in India told CNN-News18 that Pakistan's move is aimed at strengthening ties with the United States, securing economic and technological support, and gaining American backing for its position on the Kashmir dispute. Pakistan's Desperate Push The Nobel nomination comes after what Islamabad describes as Trump's 'decisive diplomatic intervention" in de-escalating the May 2025 crisis between India and Pakistan. Pakistani officials have credited Trump for averting what could have been a catastrophic nuclear conflict. 'This move is about acknowledging President Trump's key role in ensuring peace during a period of intense crisis," one official said, speaking on condition of anonymity. 'We believe that Trump's mediation was instrumental in averting escalation, and we are seeking international recognition of his contribution." However, this narrative has been categorically rejected by India. Indian government sources have expressed strong opposition to Pakistan's claims, dismissing them as factually incorrect and misleading. In an official statement, India's Foreign Secretary Vikram Misri rejected the suggestion that Trump mediated the crisis, stating, 'India did not seek or accept any third-party mediation during the crisis, and Pakistan's attempts to rewrite the history of the events are not based in reality." Prime Minister Narendra Modi, in his public remarks, further dismissed Pakistan's narrative, refusing to engage with any external mediation efforts, including those from Trump. 'India has always managed its security concerns on its own and does not require the intervention of any third party," he said. This week, PM Modi also declined Trump's invite to visit the United States on his return journey from Canada, citing his pre-existing schedule. The development came as PM Modi spoke with Trump and set the record straight that India's 'Operation Sindoor' was 'paused" following a request from Pakistan and not due to mediation or offer of a trade deal by the US. According to official sources within the Indian government, the Indian leadership maintained full control over the crisis and managed it without any foreign involvement. Indian Defence Secretary RK Singh provided further details, telling a news agency: 'All communications during the crisis were thoroughly documented, including logs and records that make it clear that India initiated the calls. Any claims of third-party mediation are unfounded." Singh's comments were aimed at countering Pakistan's narrative, which has been widely disseminated in international forums and media. The Kashmir Angle Pakistan's push to nominate Trump is also linked to its long-standing goal of internationalising the Kashmir issue. Islamabad has consistently sought global support for its position on Kashmir, which India maintains is a bilateral issue to be resolved solely between the two countries. Indian government officials have made it clear that any third-party involvement in the Kashmir dispute is unacceptable. 'The Kashmir issue is a bilateral matter, and India will not tolerate any external interference," said a senior Ministry of External Affairs official, speaking on condition of anonymity. 'Pakistan's attempt to gain international support through this Nobel nomination is part of its ongoing campaign to internationalise Kashmir, which India has firmly rejected." In contrast, Pakistan has highlighted Trump's previous offers to mediate the Kashmir dispute as evidence of his willingness to involve himself in the issue. According to Pakistani diplomatic sources, this endorsement of Trump is aimed at pushing the United States to take a more active role in the region. Munir's Ambition The diplomatic push for the Nobel nomination has raised eyebrows in both Pakistan and India. There are reports that General Asim Munir, Pakistan's Chief of Army Staff, is positioning himself as a potential co-recipient of the Nobel Peace Prize, alongside Trump. While this remains unconfirmed, Indian intelligence sources suggest that Munir's growing role in shaping Pakistan's foreign policy may be influencing the country's decision to publicly support Trump. 'Munir is an ambitious leader," said an Indian security analyst, 'and while the Nobel campaign may seem like a strategic move to secure Pakistani interests, it could also be a personal gambit to raise his own stature on the international stage." Interestingly, the nomination demand came after a rare White House meeting between Trump and Munir in which geo-political issues ranging from the Israel-Iran conflict, and Kashmir to defence purchasing were discussed. The Bigger Picture For Pakistan, the move is seen as a way to potentially gain economic concessions, technological transfers, and a softer US stance on its nuclear programme. In particular, Pakistan hopes that by aligning itself with Trump's leadership, it can secure American backing for its position on Kashmir, despite India's firm objections. top videos View all For India, however, the matter is a reminder that, despite Pakistan's claims, the Kashmir issue remains firmly within India's domain and will not be internationalised through external mediation. The coming months will reveal whether Pakistan's strategic gamble will pay off or whether it will simply be seen as a fleeting diplomatic gesture in the complex web of South Asian geopolitics. tags : Asim Munir donald trump Kashmir Nobel Prize pakistan United states Location : Islamabad, Pakistan First Published: June 21, 2025, 11:36 IST News world Not So 'Nobel'? Why Pakistan's Push For Trump Reeks Of A Strategic Gamble | Exclusive
Indian Express
24 minutes ago
- Indian Express
World's biggest banks increased fossil fuel financing by $162 billion in 2024: Report
The world's largest 65 banks committed $869 billion in 2024 to companies in the fossil fuels sector, up from $707 billion in 2023, with State Bank of India (SBI) one of nearly 50 large banks that increased their financing for the same compared to the previous year. 'This growth in fossil fuel finance is troubling because new fossil fuel infrastructure locks in more decades of fossil fuel dependence. As the IEA's (International Energy Agency) 2024 Energy Investment Outlook report states, '(a)chieving net zero emissions globally by 2050 would mean annual investment in oil, gas, and coal falls by more than half' by 2030,' said the Fossil Fuel Finance Report 2025 by a group of eight environment organisations together called Banking on Climate Chaos Coalition. To be sure, SBI accounted for only a fraction of the total fossil fuel financing in 2024 and only saw a small increase last year compared to other lenders. As per the report, SBI was the only Indian bank in the top 65 with a $65 million increase in fossil fuel financing in 2024 from 2023 to $2.62 billion, putting it at the 47th spot out of the 65 banks, up from 49 in 2023. In comparison, JPMorgan Chase retained its top spot in the list as it gave $53.5 billion to fossil fuel companies last year, $15 billion more than it did in 2023. This is more than SBI's total fossil fuel financing of $10.6 billion from 2021 to 2024. Earlier this year in February, SBI Chairman CS Setty said the bank is targeting to be net zero in terms of emissions by 2055. Before that, the bank is aiming to have at least 7.5 per cent of its domestic gross advances to be green advances by 2030. As at the end of the quarter ended March, SBI's domestic advances stood at Rs 36.02 lakh crore. It had sanctioned a combined fund and non-fund-based limit of Rs 20,558 crore for sustainable finance activities. According to Bengaluru-based think-tank Climate Risk Horizons, coal financing is a 'huge blind spot' for Indian banks. 'Among the top 1000 BSE-listed banks as of March 2024, only Federal Bank and RBL Bank have adopted explicit coal exclusion or phase-out policies… The economics are clear: coal is no longer the cheap energy source it once was. Renewable energy and storage can now provide electricity at or below the cost of coal, with continued cost declines likely,' the think-tank's analysts said in a post in March 2025 warning that Indian banks were falling behind in the sustainable finance race. The report found that fossil fuel financing by the world's largest banks rose in 2024 after declining in 2023 came amid watering down of exclusion policies and policy rollbacks. '…what was once largely a North American trend is now going global. European banks –often seen as more progressive on climate due to the quality of their sector policies – also began backtracking,' it said. In March, American lender Wells Fargo scrapped plans to become net zero by 2050, weeks after US President Donald Trump signed an executive order announcing the country's withdrawal from the Paris Agreement. The US' withdrawal — which will take effect in early 2026 and see the world's largest economy join Iran, Libya, and Yemen as those not party to the Paris Agreement — has been part of a series of steps taken by the Trump administration to promote fossil fuels even in the face of 2024 being the hottest year ever recorded. In January, the US Treasury Department withdrew its membership of the Network of Central Banks and Supervisors for Greening the Financial System —a voluntary global coalition that looks to mobilise green finance and develop recommendations for climate-risk management in the financial sector — as part of the aforementioned executive order signed by Trump. And ahead of Trump's inauguration, the US' six largest banks left the UN-sponsored Net Zero Banking Alliance. A committee of the US Senate also approved draft legislation this week that would hit key tax incentives for clean energy. The increase in fossil fuel financing by banks in 2024 marked a reversal of decreasing lending to the segment. While nearly $3.3 trillion has been made available to fossil fuel businesses since 2021, the 65 banks in the 2025 report have committed $7.9 trillion in fossil fuel financing since the Paris Agreement came into force in 2016. In 2024, financing for acquisitions increased by $19.2 billion to $82.9 billion. While mergers and acquisitions don't directly create new infrastructure, 'this consolidation — for which bank financing is critical — is often an attempt to grow the power and competitiveness of fossil fuel companies, at a time when the world actually needs to phase out fossil fuels', the report said. Siddharth Upasani is a Deputy Associate Editor with The Indian Express. He reports primarily on data and the economy, looking for trends and changes in the former which paint a picture of the latter. Before The Indian Express, he worked at Moneycontrol and financial newswire Informist (previously called Cogencis). Outside of work, sports, fantasy football, and graphic novels keep him busy. ... Read More
Hans India
26 minutes ago
- Hans India
BJP-JD(U) ruined Bihar's economy and social fabric in last 20 years: Congress
Patna: Congress on Saturday slammed the BJP-JD(U) alliance in Bihar over 'ruining' the state's economy and social fabric in the last 20 years of their rule. 'The BJP-JD(U) alliance has ruined Bihar's economy, governance, and social fabric during their 20-year rule. This has been clearly proven by the reports of the reputed global institutions. That's why we've launched a campaign to expose how Bihar has suffered under Nitish Kumar's leadership,' said Congress spokesperson Prem Chand Mishra while addressing a press conference in Patna. As part of the campaign, Mishra cited a recent report by CARE Ratings, a global agency, which ranked Bihar last among 17 large Indian states on key development indicators. 'Bihar received just 34.8 points in the Social and Economic Development Index, scoring the lowest across parameters such as education, health, infrastructure, fiscal management, and economic activity,' Mishra said. Based on the CARE Ratings Report, Mishra pointed out that Bihar ranks 17th out of 17 major states on social and economic development. He said that poor performance in education quality, maternal and infant mortality rates, employment generation, weak scores on women empowerment, infrastructure, per capita income, alarming fiscal indicators, including debt management, interest payment ratio, fiscal deficit, severe deficiencies in electricity access, railway density, healthcare services, and school teacher ratios. He also said that the weak judicial efficiency, e-governance, investment environment, and environmental metrics are also poor, including air quality and renewable energy adoption. 'Bihar is now behind even Rajasthan, Punjab, and Uttar Pradesh — states it once competed with. The figures speak for themselves, and corruption and poor governance are to blame,' Mishra said. He alleged that the government's much-publicised development narrative is hollow and lacks substance on the ground. Mishra added that even the Union government data contradicts the NDA's claims of progress. 'Bihar is in deep crisis, socially, economically, and administratively. The only way out is a change in government and a policy revolution,' he concluded. This marks a major strategic move by the Congress to build a data-backed campaign against the NDA ahead of the Assembly elections. With just four months to go, the party appears poised to corner the ruling alliance on its development record, particularly using central and global institutional reports as ammunition.
