Must move savings into productive assets for 8-8.5% growth: RBI MPC member Nagesh Kumar
India faces a 'major issue' of domestic savings not getting 'translated' into productive assets, according to Nagesh Kumar, director of New Delhi-based Institute for Studies in Industrial Development and one of the three external members on the Reserve Bank of India's (RBI) Monetary Policy Committee. Speaking at a panel discussion on Thursday at the Confederation of Indian Industry's Annual Business Summit, Kumar said that without more investment in productive assets, India will not be able to increase its growth rate to 8-8.5 per cent from 6-6.5 per cent.
India's GDP growth rate in 2024-25 is seen at 6.5 per cent, the lowest in four years, as per the statistics ministry's second advance estimate, released in February 2025. The ministry will announce the provisional estimate for 2024-25 GDP on Friday. For the current fiscal, the finance ministry has forecast a growth rate of 6.3-6.8 per cent, while the RBI has projected an expansion of 6.5 per cent.
Kumar argued for the re-direction of Indian households' savings from speculative assets into productive investments. Fellow panelist Sudipto Mundle, chairman of the board of governors of Centre for Development Studies, also voiced his concerns about households' financial savings, which he said had to be increased. As per latest data, net financial savings of Indian households edged up to 5.2 per cent of GDP in 2023-24 from a multi-decade low of 5.0 per cent in 2022-23.
Skill gap
Mundle also warned of a skill gap in India's work force and said the government, in the short term, had no option but to encourage the growth of labour-intensive industries. In the long-term, the country faced the challenge of staying competitive in the face of transformations caused by generative artificial intelligence. To tackle this challenge, Mundle called for skilling the workforce and putting 'very serious' investment in research and development.
Ipsita Dasgupta, managing director of HP India and another member on the CII panel, echoed Mundle's views, going on to warn that 90 per cent of the 15 lakh engineers that graduate in India every year 'are unemployable as engineers'.
'We are the country that is actually going to power the rest of the aging world. And we need to seriously address the fact that there is 200-250 million students today who need to be employable, who need to be able to find work, and who need to fit into the global economy,' Dasgupta said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
22 minutes ago
- The Hindu
Karnataka HC directs State govt to file status report on Bengaluru stampede by June 10
A day after the celebrations of the IPL victory of Royal Challengers Bengaluru (RCB) led to the death of 11 persons and injuries to 47 others following chaos and stampede at the M. Chinnaswamy stadium, most of the injured persons were discharged from hospitals. Except for six persons, who continue to be under treatment in various hospitals, all the others were sent home, doctors said on Thursday. The tragedy unfolded near the gates of the stadium, where over 2 lakh fans had gathered to mark RCB's historic first title win in 18 years. Overcrowding and narrow passageways led to a deadly rush. Meanwhile, Karnataka Chief Minister Siddaramaiah has announced a compensation of ₹10 lakh each to the families of the deceased and free treatment to the injured persons. The Karnataka High Court, after taking suo motu congnisance of the matter, issued notice to the State, and tasked it to file a detailed status report by June 10. The State government on Thursday admitted before the High Court of Karnataka that it did not prepare to handle such a huge crowd of around 2.5 lakh on June 4 during the event organised at M. Chinnaswamy stadium in Bengaluru to celebrate RCB's victory in the Indian Premier League (IPL) 2025, which witnessed a stampede resulting in death of 11 persons and injuring 56 others. 'Narender surrendered to Adani, China': Congress ups ante with fresh jibe at PM The Congress on Thursday upped the ante with its 'Narender-surrender' jibe at Prime Minister Narendra Modi, alleging that he 'surrendered' before billionaire Gautam Adani as well as to China. There was no immediate response from the government or the Adani Group over the Congress's accusations, but the business conglomerate has, in the past, rejected all such allegations against it. Congress leader Ajoy Kumar said the duo of Mr. Adani and Mr. Modi has left behind the Jai-Veeru duo from the film 'Sholay'. 'The process of Narendra Modi's surrender before (U.S. President Donald) Trump has happened after many years of practice,' Mr. Kumar said at a press conference at the Indira Bhawan, the All India Congress Committee (AICC) headquarters in New Delhi. 'Wherever Narendra Modi goes or whatever Adani wants — he gets the contract.... The diplomatic moves of India's prime minister have helped industrialist Mr A to expand his international business interests in ports, airports, electricity, coal mining and weapons,' the Congress leader claimed and cited examples from various countries. 'Narenderji has hurt his country's relations with her neighbours as well as with other countries by brazenly promoting Mr A's ambitions. The growth of the Mr A Group outside India over the past decade or so has been closely aligned with the diplomatic efforts of Indian Prime Minister Narendra Modi,' he alleged. Many of 'Mr A's' international deals were struck soon after Mr. Modi's official visits to certain countries or after heads of government visited India, Mr. Kumar claimed. Alleging that Mr. Modi had also 'surrendered' before China, he said 'Narender-Surrender' must apologise to the country for his 'clean chit' to the neighbouring country on its invasion of Indian territory in 2020. Mr. Kumar claimed that China has vowed to stand by Pakistan in defending its 'sovereignty' and 'territorial integrity', and called it its 'iron-clad friend'. 'China's foreign minister, Wang Yi, recently gave a statement that his country would continue to stand by Pakistan in upholding its sovereignty, territorial integrity and national independence. China has supplied arms worth over $20 billion to Pakistan,' Mr. Kumar claimed. The Congress had said on Wednesday (June 4, 2025) that it is wrong to think that 'Narendra Modi is India and India is Narendra Modi', as it slammed the ruling Bharatiya Janata Party (BJP) for its criticism of Rahul Gandhi over his dig at the Prime Minister, and doubled down on the 'Narender-surrender' jibe. Mr. Gandhi had said in Bhopal on Tuesday (June 3, 2025) that 'as soon as Trump signalled from there, picked up the phone and said, 'what are you doing Modiji? Narender, surrender'.... And Modiji obeyed Trump's orders with Ji Huzoor''. Urging people to remember 1971, Mr. Gandhi said that back then, a phone call had not been made, but the United States had sent its 7th Fleet, weapons, and an aircraft carrier. However, Prime Minister Indira Gandhi did not surrender and stated that she would act in the national interest. Referring to the BJP and the Rashtriya Swayamsevak Sangh (RSS), Mr. Gandhi said they are habituated to writing 'surrender letters' since Independence. The BJP has accused Mr. Gandhi of insulting the armed forces with his 'surrender' barb at Mr. Modi, saying it amounted to undermining the success of Operation Sindoor. Trump announces travel ban affecting dozen countries including Afghanistan and Iran U.S. President Donald Trump is resurrecting the travel ban policy from his first term, signing a proclamation Wednesday (June 5, 2025) night preventing people from a dozen countries from entering the United States. The countries include Afghanistan, Burma, Chad, the Republic of the Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Somalia, Sudan and Yemen. In addition to the ban, which takes effect at 12.01 a.m. Monday (June 9, 2025), there will be heightened restrictions on visitors from Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan and Venezuela. 'I must act to protect the national security and national interest of the United States and its people,' Mr. Trump said in his proclamation. The list results from a January 20 executive order Mr. Trump issued requiring the departments of State and Homeland Security and the Director of National Intelligence to compile a report on 'hostile attitudes' toward the U.S. and whether entry from certain countries represented a national security risk. During his first term, Mr. Trump issued an executive order in January 2017 banning travel to the U.S. by citizens of seven predominantly Muslim countries — Iraq, Syria, Iran, Sudan, Libya, Somalia and Yemen. It was one of the most chaotic and confusing moments of his young presidency. Travelers from those nations were either barred from getting on their flights to the U.S. or detained at U.S. airports after they landed. They included students and faculty as well as businesspeople, tourists and people visiting friends and family. The order, often referred to as the 'Muslim ban' or the 'travel ban,' was retooled amid legal challenges, until a version was upheld by the Supreme Court in 2018. The ban affected various categories of travellers and immigrants from Iran, Somalia, Yemen, Syria and Libya, plus North Koreans and some Venezuelan government officials and their families. Mr. Trump and others have defended the initial ban on national security grounds, arguing it was aimed at protecting the country and not founded on anti-Muslim bias. However, the president had called for an explicit ban on Muslims during his first campaign for the White House. Odisha police turn Medha Patkar, activists away from Rayagada where resistance against bauxite mining simmering Several activists led by Medha Patkar were stopped by the Odisha Police and turned away after they arrived in Rayagada district to address a public meeting on World Environment Day, early Thursday. District authorities cited potential law and order concerns, stating that the activists' presence could inflame tensions in the region, where local tribals are opposing bauxite mining in the Sijimali Reserve. 'As soon as we got off the train in the early hours of Thursday, a large contingent of police personnel stopped us and said we were not allowed to leave the railway station. We are not criminals. We had come to Rayagada to speak about the importance of protecting the environment,' said Medha Patkar over phone from Rayagada. Within hours, fellow activists Lingaraj and Narendra Mohanty were forced to leave the district. A public meeting had been planned under the banner of Maa Maati Maali Surakshya Manch, Kashipur at Sunger Hatapada, where hundreds of tribals were expected to gather to hear the activists. Sunger Hatapada is located just a few kilometres from the Sijimali Bauxite Deposit, where the Vedanta Group has proposed mining 9 million tonnes of ore annually over an area of 1,549 hectares. Vedanta, one of India's largest aluminium producers, has operated its alumina refinery in Lanjigarh, Kalahandi district, without a captive bauxite mine since 2007. The company has been seeking a steady supply of raw material, making Sijimali a key target. Similar resistance had earlier derailed a mining project in the Niyamgiri hills, where the Dongria Kondh, a particularly vulnerable tribal group, successfully opposed plans to mine bauxite. The Odisha Mining Corporation, a state-run PSU, was to supply the ore to Vedanta. In Rayagada, tensions have been simmering around the Sijimali deposit for the past couple of years. Tribals allege that the district police, under pressure from the company, have been using force to suppress the people's movement against mining. An order signed by the Rayagada District Collector has barred 24 activists from entering the district for two months starting June 4. They have also been prohibited from participating in any protests or sit-ins. The Eastern Ghats hill ranges that cut across Kalahandi, Rayagada, and Koraput districts are rich in bauxite. Apart from Vedanta, private players such as the Adani Group and the Aditya Birla Group are either exploring or have already established infrastructure to mine the mineral. The National Aluminium Company Limited (NALCO), a Navaratna public sector unit, has a strong presence in Koraput district, where it is already extracting bauxite from the Panchpatmali reserve and is preparing to mine the Pottangi reserve. 'Why is the present Odisha government afraid of environmentalists and nature lovers visiting their beautiful State at the invitation of Adivasis—the true guardians of nature?' asked Ms. Patkar. 'How can we, as citizens of India, be stopped from marking a day dedicated to pledging our commitment to protect the Earth, its green cover, its farms and forests, and honouring those who have preserved them for generations?,' asked Ms. Patkar. In Brief: Assam flood situation grim, 7 lakh affected Assam's flood situation remained grim on Thursday, with nearly seven lakh people affected in 21 districts and the water level of major rivers showing a rising trend, officials said. The death toll in the first wave of the floods and landslides rose to 19, with two deaths reported on Wednesday. One person went missing in the Cachar district. Nine major rivers, including the Brahmaputra at three places, were flowing above the danger level across the state, while River Barak was flowing above the danger mark in the Cachar district, and its tributaries were also showing a rising trend, with some rivers flowing above the red mark. Calcutta High Court grants interim bail to social media influencer Sharmistha Panoli The Calcutta High Court on Thursday granted interim bail to social media influencer Sharmistha Panoli, who was arrested by Kolkata Police for a social media post on Operation Sindoor. The 22-year-old student was arrested in Gurugram and brought to Kolkata on a transit remand. The High Court, while granting interim bail to Ms. Panoli, said 'at this point there is no need of custodial interrogation'. The Calcutta High Court directed Ms. Panoli to furnish a bail bond of ₹10,000. Earlier, Kolkata Police had defended the arrest of social media influencer and law student, stating that the posts made by her amounted to 'hate speech' and should not be conflated with freedom of expression. Ms. Panoli's arrest sparked political outrage, with the Opposition BJP accusing the Mamata Banerjee-led government of 'State-sponsored repression'. North Korea's Kim says he'll 'unconditionally support' Russia's war against Ukraine North Korean leader Kim Jong Un told a visiting top Russian official that his country will 'unconditionally support' Russia's war against Ukraine, the North's state media reported on Thursday, the latest sign of expanding cooperation between the two nations. In April, the two countries officially confirmed North Korean troops' deployment to Russia for the first time, saying that soldiers of the two countries were fighting alongside each other to repel a Ukrainian incursion into Russia's Kursk border region. At the time, Russian President Vladimir Putin thanked North Korea's participation in the war and promised not to forget their sacrifices. Evening Wrap will return tomorrow.
Time of India
29 minutes ago
- Time of India
New York Stock Exchange latest update: Stablecoin issuer Circle is now live on NYSE. Check symbol, share price
Stablecoins are a fast-growing corner of the cryptocurrency industry that offer a buffer against volatility because they are pegged to real-world assets, like U.S. dollars or gold. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads FAQs Circle Internet Group on Thursday made debut on US Stock Market. Circle Internet Group issues USDC, a stablecoin that can be traded at a one-to-one ratio for U.S. dollars, and EURC, which can similarly be traded for euros. Interest in Circle's initial public offering is high. The company's underwriters priced the offering at $31 per share Wednesday, up from an expected price of $27 to $28. The number of shares being sold was raised to 34 million from 32 million. Circle will trade on the NYSE under the symbol 'CRCL.'Stablecoins are a fast-growing corner of the cryptocurrency industry that offer a buffer against volatility because they are pegged to real-world assets, like U.S. dollars or gold. That makes them a much more reliable means of conducting commercial transactions than other forms of dominant player in the stablecoin field is El Salvador-based Tether, which has the stablecoin known as USDT that currently has about $150 billion in circulation. USDC is the second most popular stablecoin market cap, with about $60 billion in said in a regulatory filing that USDC has been used for more than '$25 trillion in onchain transactions' since its launch in the company has seen tremendous growth, going from just $15 million in 2020 to $1.7 billion in issuers make profits by collecting the interest on the assets they hold in reserve to back their stablecoins. Circle said USDC is backed by 'cash, short-dated US Treasuries and overnight US Treasury repurchase agreements with leading global banks.'Circle's IPO comes amid a push by the Trump administration and the crypto industry to pass legislation that would regulate how stablecoin issuers operate in the U.S. A Senate bill advanced last month with bipartisan is also growing competition in the stablecoin field. A crypto enterprise partly owned by the Trump family just launched its own stablecoin, said its long track record and values – the company says its mission statement is 'to raise global economic prosperity through the frictionless exchange of value' – will help it stand apart in the field.A1. Circle Internet Group issues Stablecoin.A2. USDC is a stablecoin that can be traded at a one-to-one ratio for U.S. dollars, and EURC, which can similarly be traded for euros.
Indian Express
29 minutes ago
- Indian Express
Niti Aayog asks if think-tanks should work on new data as MoSPI says alternative data can be used in official stats
Even as the Ministry of Statistics and Programme Implementation (MoSPI) presses ahead with the use of alternative sources of data in India's official statistics, the NITI Aayog has asked if the ministry should even be engaging with such data sets. Speaking on Thursday at the start of a two-day workshop on 'Using Alternate Data Sources and Frontier Technologies for Policy Making', NITI Aayog Vice-Chairman Suman Bery questioned if these new areas should be a priority for MoSPI and cautioned that they should 'not become an all-consuming task or preoccupation', although he added that using new data sources and technologies is 'very powerful' as it helps give a sense about the direction in which the economy is headed in a fast-moving world for real-time interventions. 'I would also make the point that to some extent the issue of whether all of this should be going on in MoSPI and in the statistical infrastructure or whether it should be going on in our rich network of think tanks is, I think, an appropriate issue. For example, NCAER… has a centre for data analytics,' Bery said. New Delhi-based think-tank National Council of Applied Economic Research (NCAER) set up a National Data Innovation Centre in 2017 to serve as a 'laboratory for experiments in data collection', among other objectives. Meanwhile, speaking at the same workshop, MoSPI Secretary Saurabh Garg said alternate data sources and frontier technology have 'reached a stage that we can actually use it for official statistics' and that this augured well for the future of data analysis. In an interview to The Indian Express, published on Thursday, Garg had said the Statistics Ministry is looking to use data from sources such as online booking platforms for air and rail fares and over-the-top (OTT) streaming services, among others, for the new Consumer Price Index (CPI) series that will be released in early 2026. 'For the new CPI series, MoSPI is expanding its approach by exploring alternative data sources, such as online platforms for airfare, rail fare, OTT platforms and administrative records for price data of petrol, diesel and LPG. Discussions are ongoing with IRCTC, under the Ministry of Railways, and the PPAC under the Ministry of Petroleum and Natural Gas for direct transfer of data for integration in CPI,' Garg said. MoSPI is in the process of revising its key macroeconomic indicators — CPI, the Index of Industrial Production (IIP), and Gross Domestic Product (GDP). Apart from updating the base years to 2022-23 for GDP and IIP, and 2024 for CPI, the revision exercise will also see changes in methodology used to compute the indicators. In addition, the updated CPI series will be based on a new basket of goods and services as per the findings of MoSPI's recent Household Consumption Expenditure Survey. This could result in near-obsolete items such as audio casettes being removed from the CPI basket, with prices of more contemporary goods like treadmills being used in the measurement of retail inflation. 'Intelligent integration' Chief Economic Adviser V Anantha Nageswaran, also speaking at the workshop, pushed for the use of alternative data in official statistics. While surveys, administrative, and national accounts data remain indispensable as inputs in making decisions, the pace, complexity, and granularity required by modern policymaking and the challenges attached to them 'have exposed limitations in both the periodicity and dimensionality of such data,' he said. According to Nageswaran, alternative data such as satellite-based night-time luminosity — used as a proxy for economic activity in areas with delayed or weak statistical reporting — and other satellite data can help policymakers monitor industrial activity, road connectivity, and cropping patterns, among others. 'These insights can inform timely decisions on input provisioning, crop insurance payouts, and regional procurement strategies,' he said. These new types of data capture emergent behaviour, respond faster to shocks, and reflect the 'lived experience of economic agents in ways that conventional aggregates sometimes cannot,' he added. However, the government's top economist warned that while alternative data can help policymakers move from 'retrospective diagnostics to proactive intervention', they could not replace official statistics and warranted 'intelligent integration'. 'Therefore, the mature approach is not to choose between official and alternative data but to design systems where each informs and validates the other, especially in environments where timely action is crucial,' Nageswaran said, adding that enthusiasm must be tempered with prudence as official data still carried a 'certain higher sense of authenticity and reliability and accuracy given the years of usage and in-built checks and balances'. With reference to frontier technologies such as artificial intelligence, Nageswaran said the 'black box nature of certain algorithms, the potential for bias embedded in training data, and risks to individual privacy must be actively mitigated through robust governance frameworks'. Further, these technologies should be deployed in a way that they are tailored to institutional absorption capacity. 'A well-designed algorithm is only as effective as the human systems interpreting and acting upon its output,' the chief economic adviser said. Aanchal Magazine is Senior Assistant Editor with The Indian Express and reports on the macro economy and fiscal policy, with a special focus on economic science, labour trends, taxation and revenue metrics. With over 13 years of newsroom experience, she has also reported in detail on macroeconomic data such as trends and policy actions related to inflation, GDP growth and fiscal arithmetic. Interested in the history of her homeland, Kashmir, she likes to read about its culture and tradition in her spare time, along with trying to map the journeys of displacement from there. ... Read More
