&w=3840&q=100)
Avoiding the growth mirage: Reforms must go beyond capital infusion
M Govinda Rao
Listen to This Article
The release of the World Economic Outlook in April by the International Monetary Fund (IMF) has brought in much rejoicing and enthusiasm among those concerned with India's development. The chief executive officer of NITI Aayog might have jumped the gun when he declared that India has become the fourth-largest economy surpassing Japan, which has also been echoed by the Prime Minister.
The IMF report shows India's gross domestic product (GDP) in 2024 at $3.91 trillion, against Japan's $4.03 trillion, but it is projected to surpass the Japanese GDP by a slender margin in 2025 ($4.197 trillion vs 4.196 trillion). Of
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
Suzuki expansion cements Gujarat's position as global auto hub
North Gujarat has rapidly emerged as one of India's leading automobile manufacturing hubs, led by Suzuki Motor Gujarat 's facility with an annual production capacity of 7.5 lakh cars, according to a statement from the Chief Minister's Office (CMO), ANI reports. Suzuki has now announced plans to set up a fourth production line with an investment of ₹3,200 crore to scale up electric vehicle (EV) production in the state. The move comes on the back of earlier commitments, including a ₹7,300 crore battery plant and a ₹3,100 crore EV manufacturing facility. Suzuki, a backbone for Gujarat's automotive wave Gujarat first attracted a wave of global automobile manufacturers between 2012 and 2015, with Suzuki's 2014 MoU to establish a mega plant marking a turning point. Since then, the Japanese automaker has invested significantly in the region, creating jobs and boosting the local auto component ecosystem around Mehsana. The Suzuki Motor Gujarat plant is now among the largest automobile manufacturing facilities in the country, serving both domestic and export markets. Gujarat's strong port connectivity has positioned it as a strategic export hub, with automobile exports worth ₹3,459 crore in 2024 to markets such as South Africa, Saudi Arabia, Japan, the UAE and Chile. Overall, investments in Gujarat's automobile sector reached ₹29,700 crore in FY23, growing at a CAGR of 16.4 per cent over the past five years. The Mandal Becharaji Special Investment Region (SIR) has also become a key centre for auto manufacturing, drawing global players and allied industries. The state is set to highlight these achievements at the upcoming Vibrant Gujarat Regional Conferences (VGRC), where it will showcase opportunities for global investors in the automotive and allied sectors.
Time of India
4 hours ago
- Time of India
Honda sets up finance arm in India to boost vehicle sales
Japanese auto major Honda Motor has established a wholly owned subsidiary in India to offer retail sales financing services, including loans and lease sales options, for its products. PTI reported the new entity, Honda Finance India , will apply for a non-banking financial company (NBFC) licence before commencing operations, the automaker said in a statement on Wednesday. Once approved, the subsidiary will provide financing support for customers purchasing Honda motorcycles, cars, and related services in the country. Honda noted that India is one of the fastest-growing automotive markets, with rising demand for motorcycles and cars and a growing share of customers opting for loans to finance purchases. Until now, such retail sales financing has largely been provided by local financial institutions. 'By setting up a local financing subsidiary, Honda aims to strengthen its business in India and make ownership of its products more accessible,' the company said. Honda already operates similar financing arms in Japan, North America, Europe, and other key markets. With the launch of the Indian unit, the country becomes the ninth market globally where Honda has established a dedicated financial services subsidiary.
Time of India
5 hours ago
- Time of India
Japan's SoftBank to take $2 billion stake in computer chip maker Intel
Japanese technology giant SoftBank Group plans to take a $2 billion stake in computer chip maker Intel as it deepens its involvement in U.S. semiconductor manufacturing and other advanced technology in the United States, the companies said Monday. Shares in both companies fell Tuesday after the announcement, which coincided with unconfirmed reports that President Donald Trump is considering having the U.S. government buy a stake in the chip maker. SoftBank invests in an array of companies that it sees as holding long-term potential. It has been stepping up investments in the United States since Trump returned to the White House. In February, its chairman Masayoshi Son joined Trump, Sam Altman of OpenAI and Larry Ellison of Oracle in announcing a major investment of up to $500 billion in a project to develop artificial intelligence called Stargate. SoftBank plans to buy $2 billion of Intel's common stock, paying $23 per share. "Semiconductors are the foundation of every industry, Son said in a statement. "This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role." Intel helped launch Silicon Valley but has fallen behind rivals like Nvidia Corp. and Advanced Micro Devices Inc. and is shedding thousands of workers and slashing costs under its new CEO, Lip-Bu Tan. Intel plans to end the year with 75,000 "core" workers excluding subsidiaries, through layoffs and attrition, down from 99,500 core employees at the end of 2024. The company previously announced a 15% workforce reduction. Trump recently said Tan, who was made CEO in March, should resign but after meeting with him last week said he had an "amazing story." SoftBank's shares were down 2.2% Tuesday in Tokyo, while Intel's dropped 3.7% on Monday in New York.
