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India Today
a day ago
- Business
- India Today
India's job market shows relief as unemployment rate falls to 5.2% in July
India's unemployment rate dropped to 5.2% in July, compared with 5.6% in June, according to the Ministry of Statistics. The fall was mainly driven by higher rural hiring ahead of the festival season and increased activity in the agriculture jobless rate in rural areas for people aged 15 years and above fell to 4.4% in July from 4.9% in June. Seasonal demand for workers in agriculture and related activities supported this contrast, urban unemployment rose slightly to 7.2% in July from 7.1% a month earlier, showing weaker job creation in urban youth aged 15 to 29 years, the unemployment rate increased to 19% in July from 18.8% in June, reflecting a struggle for younger job seekers in city areas. However, in rural areas, the youth jobless rate eased to 13% in July from 13.8% in June. It stood at 13.7% in the April-June quarter, the unemployment rate for those aged 15 years and above was 5.4%. The data also showed an improvement in the labour force participation rate (LFPR). It rose to 54.9% in July from 54.2% in June. LFPR measures the share of people aged 15 years and above who are working, seeking work, or available for government has announced that it will cut goods and services tax (GST) rates by October. The move is aimed at supporting domestic manufacturing and creating more jobs. This comes amid rising trade tensions following tariff hikes on Indian goods announced by US President Donald Trump.S&P Global Ratings last week upgraded India's long-term sovereign credit rating to 'BBB' from 'BBB-', the first such upgrade in 18 years. The agency cited strong economic growth, better credibility of monetary policy, and fiscal consolidation as economy has shown strong momentum. Real GDP growth averaged 8.8% between fiscal 2022 and 2024, the highest in Asia-Pacific, and is expected to grow at 6.8% annually over the next three years, according to S&P. - Ends advertisement
Economic Times
24-06-2025
- Business
- Economic Times
Why S&P Global thinks Indian economy will withstand West Asian turmoil
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Amid a spike in fear of likely energy turmoil in the wake of continuing unrest in West Asia , S&P Global Ratings has made a forecast that India will face no significant pressure in terms of currency and to the rating agency, lower global energy prices compared to last year as a key buffer for the Indian economy even as the Middle East situation continues to be is worth noting here that despite Israel and Iran finally having reached a ceasefire after a bloody 12-day war, the whole area -- the cradle of much of the world's oil -- remains a tinderbox, where even a small spark can touch off major face-offs and hold global oil trade hostage.S&P Global Ratings economist Vishrut Rana said that although the Indian economy remains exposed due to its heavy dependence on imported energy, the current scenario offers some relief. He noted that Brent crude oil is trading below last year's levels—around USD 85 per barrel in 2023, compared to lower prices now."This will help contain both current account outflows and domestic energy price pressures — while energy prices may rise moderately, the path of food prices will have a higher impact on inflation. Overall, we do not expect significant pressure on the Indian rupee or inflation," Rana told news agency oil markets reacted positively after US President Trump announced that Israel and Iran had agreed to a "complete and total ceasefire". The Brent crude benchmark fell to approximately $69 per barrel shortly after the the past 12 days, the region witnessed an escalation of hostilities with Israeli airstrikes followed by retaliatory attacks from Iran. The United States also intervened, targeting Iran's critical nuclear relies heavily on imported energy — over 85% of its crude oil and nearly half of its natural gas needs are sourced from abroad. More than 40% of the oil and 50% of gas imports come directly from the Middle East, making geopolitical developments in the region crucial for India's economic so, S&P maintains a stable inflation outlook for the country. It estimates inflation to average around 4% in 2025, compared to 4.6% in currency markets, the Indian rupee opened stronger on Tuesday, rising 65 paise from the previous close to trade at Rs 86.13 to a US dollar. S&P projects the rupee to gradually weaken to 87.5 against the dollar by the end of 2025, from 86.6 at the close of acknowledged that financial markets could witness volatility due to investor risk aversion linked to global tensions."Heightened risk-aversion in global financial markets due to ongoing geopolitical tensions may cause INR volatility," he said. He added that an increase in oil prices could lead to higher current account outflows and a softer rupee, but reiterated that energy prices being lower than last year remains a significant S&P revised its GDP growth forecast for India for the current financial year, raising it to 6.5%. The upgrade is based on three assumptions: a normal monsoon, reduced crude oil prices, and a more accommodative monetary policy the global outlook, Rana said: 'The impact on growth prospects for the world is modest for now, but prolonged geopolitical tensions are a risk to growth.'
Al Etihad
30-04-2025
- Business
- Al Etihad
Good fundamentals to help UAE companies weather global uncertainty: S&P Global Ratings
30 Apr 2025 13:00 A. SREENIVASA REDDY (ABU DHABI)Good corporate fundamentals are expected to help UAE companies—and the economy at large—weather the global uncertainty triggered by tariff wars and geopolitical tensions, said S&P Global Ratings in a new its latest analysis of the GCC corporate landscape, the report said that despite challenges stemming from rising trade protectionism, oil price volatility, and global economic fragmentation, the UAE remains one of the more resilient economies in the region. Its large, investment-grade-rated corporate base, access to competitively priced capital, and diversified economic base continue to provide a cushion against external shocks.S&P Global Ratings forecasts that the UAE's real GDP will grow by approximately 4.5% in 2025 and slightly above 4% in 2026. This places the country among the fastest-growing economies in the GCC. Growth is expected to be supported by ongoing expansion in the non-oil economy, including sectors such as tourism, real estate, retail, and logistics. The report cites strong domestic demand trends as a key driver, helped by structural reforms and continued investor across the GCC, including in the UAE, is projected to remain moderate at around 2% in S&P Global Ratings reports that 61% of rated companies in the GCC hold investment-grade ratings, with a significant portion of them based in the UAE. These companies are viewed as having robust liquidity profiles, solid operating models, and prudent capital allocation the prominent UAE-based corporates covered in the report are Emirates Telecommunications Group (e&), which carries a rating of AA-/Stable; Emaar Properties, rated BBB+/Stable; Majid Al Futtaim Holding, at BBB/Stable; and Fertiglobe PLC, also rated BBB/ report also highlights that 46% of rated GCC corporates are government-related entities (GREs), which further strengthens the financial system. These entities benefit from state ownership, preferential access to resources, or contractual relationships with public institutions—characteristics that enhance creditworthiness. In the UAE, this relationship between government and enterprise has helped preserve financial stability and enabled corporates to pursue expansion strategies with estate remains a major pillar of strength in the UAE's economy. According to the report, residential demand in Dubai is expected to remain firm in 2025, supported by demographic growth and a strong pipeline of project launches. Pre-sales and revenue backlogs have provided companies with cash flow visibility, while developers continue to maintain strong balance sheets. Despite the potential for short-term corrections due to new supply, leading players in the sector are expected to remain profitable and resilient.S&P also pointed to continued momentum in the chemicals and telecommunications sectors. Fertiglobe, the UAE-headquartered nitrogen fertiliser producer, benefits from competitively priced gas feedstock, offering a cost advantage over global peers. In telecommunications, Emirates Telecommunications Group has been expanding into new verticals, including digital platforms and cloud services. The agency noted that while capital expenditure remains elevated in the sector, companies such as e& have the financial headroom to support ongoing investment without eroding credit corporates are expected to maintain solid access to financing, even in an environment of elevated global interest rates. S&P estimates that capital expenditure among rated GCC companies will remain between $30 billion and $35 billion annually. In the UAE, companies such as Emaar, Majid Al Futtaim, and e& have demonstrated strong refinancing capabilities and continue to benefit from favourable terms in both local and international capital markets. The report anticipates that many of these firms will return to bond markets in 2025 to refinance debt and support new projects. While the report does outline potential downside risks—including prolonged trade disruptions, weaker oil prices, and regional security concerns—it emphasises that UAE-based corporates are generally well-prepared. 'While rising uncertainty clouds the global outlook, the credit quality of most rated GCC corporates—particularly in the UAE—remains strong,' the report said.
