Latest news with #WorldBank
Hans India
15 minutes ago
- Business
- Hans India
RBI's mammoth rate cut to diligently perform a new troika: SBI Research
New Delhi: The RBI monetary policy committee's (MPC) decision to go for a relatively mammoth cut, while changing the stance to neutral, should not be confused with a pause on future rate cuts trajectory in the medium term, but rather a semblance of adopting flexible manoeuvrability on part of a conscious regulator to diligently perform a new troika, a State Bank of India (SBI) Research report said on Tuesday. The Central Bank aims to manage the yield curve and ensure adequate liquidity in the ecosystem, while renewing the pledge to keep growth sacrosanct, mindful of inflationary concerns and checkmating any bubbles formation, said Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor, SBI. 'The current focus of RBI is to support the momentum in capital formation for more durable growth,' Dr Ghosh mentioned. The recent 50 bps cut in repo rate is the first such instance post 2020. 'We have analysed the history of almost 25-year period of jumbo rate actions and found that jumbo reductions are more often than the jumbo rise. A jumbo action is mostly a reaction to a major key event and aftermath (like global financial crisis (GFC), Covid-19, Russia-Ukraine conflict, etc),' the report noted. The report found that whenever the liquidity situation is in deficit mode at the time of rate action (increase/decrease), it moved into surplus mode after 6 months. In the current rate easing cycle, RBI has already reduced repo rate by 100 bps and the external linked benchmarked interest rates reduced automatically. 'If we consider that 80 per cent of the retail and MSME loans portfolio linked to EBLR (External Benchmark Lending Rate), then around Rs 50,000 to Rs 60,000 will be saved by the households,' the report mentioned. India's household debt is relatively low (42 per cent) compared to other emerging market economies (EMEs) (49.1 per cent). However, it has increased over the past three years. 'Interestingly, the increase is driven by a growing number of borrowers rather than an increase in average indebtedness,' according to the report. Also, the poverty estimates by SBI and World Bank are remarkably similar. SBI estimates it at 4.6 per cent in 2024, down from 5.3 per cent in 2023 as estimated by World Bank.
News18
2 hours ago
- Business
- News18
Skewed Priorities? Pakistan May Hike Defence Spending Budget By 18% Amid Record Debt Levels
Last Updated: The proposed increase in military spending suggests that national security concerns continue to trump economic realities in Pakistan's policy-making corridors In a stark display of misplaced priorities, Pakistan is reportedly planning to hike its defence spending by nearly 18 per cent in its budget that is set to be presented on Tuesday. The proposed increase would push Pakistan's defence budget to Rs 2,500 billion, further solidifying its focus on military expenditure at a time when its economy is struggling under the weight of an unprecedented debt burden. The country's economic health has been a growing concern. According to the latest Economic Survey, Pakistan's public debt has reached a record high of Rs 76,007 billion, a figure that has nearly doubled over the past four years. Just five years ago, Pakistan's debt stood at Rs 39,860 billion. To put this into perspective, a decade ago, Pakistan's public debt was a mere Rs 17,380 billion—indicating an almost five-fold increase in the past 10 years. The surge in debt is not limited to external borrowing. Domestic debt now stands at Rs 51,518 billion, while external debt accounts for Rs 24,489 billion. The Economic Survey warns that such a massive increase in debt could lead to serious economic vulnerabilities, including rising interest burdens that might cripple the country's fiscal sustainability. The survey also highlights that if left unaddressed, Pakistan could face long-term economic instability, affecting everything from social welfare to infrastructure development. World Bank figures reveal the stark reality. While India has lifted 171 million people from extreme poverty in the decade between 2011-12 and 2022-23, 1.9 million additional people fell into poverty in 2024-25 in Pakistan. The World Bank report on Pakistan in April said the country's 2.6 per cent economic growth 'remains insufficient to reduce poverty". The poverty rate is estimated to stand at 42.4 per cent (US$3.65/day 2017 PPP) in FY25 in Pakistan, 'virtually unchanged from last year", the report said. In a country where inflation is soaring, unemployment is high, and public services are underfunded, many question whether this continued emphasis on military spending is sustainable or responsible. With an economy teetering on the brink, Pakistan's fiscal mismanagement could risk further plunging the country into economic turmoil. As Pakistan's defence budget continues to rise, the population remains increasingly burdened by inflation, poverty, and a government that seems reluctant to make the tough decisions necessary for long-term economic recovery. First Published: June 10, 2025, 09:16 IST
The Sun
3 hours ago
- Business
- The Sun
Call to tap into most ‘underutilised' assets
PETALING JAYA: Malaysia risks jeopardising its long-term economic growth if it fails to retain and support more women in the workforce, warns World Bank senior economist Shakira Teh Sharifuddin. With the country facing a demographic crunch, marked by a shrinking working-age population and a rapidly ageing society, Shakira called for urgent action to tap into one of Malaysia's most underutilised economic assets – women. 'The benefits of increasing women's participation in the workforce are evident. 'A World Bank report, Breaking Barriers: Toward Better Economic Opportunities for Women, found that closing gender gaps in the economy could boost Malaysia's income per capita by 26.2% over time – equivalent to an annual increase of RM9,400 per person,' she said. On a global scale, the World Bank's Gender Employment Gap Index also suggests that eliminating gender employment disparities could boost long-term gross domestic product per capita by nearly 20%, she added. Shakira said despite these high stakes, current labour force data tells a worrying story. Citing data from the Statistics Department, Shakira said female labour force participation in Malaysia peaks at 77.4% among women aged 25 to 29. However, this figure declines steadily with age – to 74.5% for those aged 30 to 34, 52.4% at 50 to 54 and just 36% among women aged 55 to 59. In stark contrast, male participation stays consistently above 90% between the ages of 25 and 54. 'Malaysia's labour force data reveals a deeper issue,' she said. 'Many women enter the workforce in their 20s but leave as they start families, with few returning later. 'This pattern differs from other countries, where women often take temporary breaks for caregiving and then rejoin the workforce once those responsibilities ease.' Shakira stressed that Malaysia must confront the ongoing challenge of ensuring consistent, long-term support to enable women not only to remain in the workforce but also to thrive throughout their careers. She also highlighted that a growing body of research supports the effectiveness of hybrid and flexible working arrangements in enabling more women to participate in the labour market. 'For instance, research conducted on US households found that a 10% increase in work-from-home opportunities is associated with a 0.94% increase in mothers' employment,' she added. In the Malaysian context, a 2022 survey further underscored the value of flexible work arrangements in helping women balance career ambitions with family responsibilities. 'Employer-provided childcare benefits and subsidies have been shown to boost women's employment. A study by the International Finance Corporation found that over 60% of workers aged 29 to 44 consider onsite or subsidised childcare a key job benefit,' she said. Despite these promising measures, Shakira acknowledged that the greatest barrier women face in re-entering the workforce remains the dual burden of paid work and unpaid caregiving responsibilities – ranging from housework to caring for children and elderly relatives. Other less frequently mentioned obstacles include workplace discrimination, health conditions (including disabilities), early retirement and limited access to suitable job opportunities. 'These challenges are corroborated in an upcoming study by the World Bank that examines employment barriers among women living in People's Housing Programme communities and in economically lagging states such as Kelantan,' she said. Shakira also shared insights from a forthcoming World Bank survey of employers, which found that many companies cite family-related obligations as a major challenge when hiring women. Some employers remain hesitant to recruit women returning to the workforce due to assumptions that they may be out of touch with industry trends or lacking in up-to-date skills, she added. 'Extending paternity leave, offering shared family leave and ensuring equitable pay are crucial steps toward creating a more equal workplace and breaking the stereotype that caregiving is solely a woman's role.' She emphasised that policies supporting women in the workforce should not be viewed as benefiting only women. 'Efforts to raise female workforce participation should focus on building a more inclusive labour market for all carers,' she said. 'This includes promoting workplace flexibility, improving access to care services, and adopting inclusive practices that respect and accommodate diverse needs.'
Hans India
4 hours ago
- Business
- Hans India
Chennai–Mysuru bullet train corridor picks up pace
Bengaluru: The Chennai–Bengaluru–Mysuru high-speed rail corridor, aimed at revolutionising connectivity in South India, is gaining momentum as alignment markings and final survey markers are actively underway. As of June 9, this 435 km bullet train initiative, inspired by Japan's Shinkansen technology, is marking a significant step forward with land acquisition nearing completion and advanced surveys in progress. This project promises to slash travel time from the current 6.5 hours to a mere 2.5 hours, operating at speeds up to 350 km/h. The National High Speed Rail Corporation Limited (NHSRCL) is spearheading this project, which will connect Chennai in Tamil Nadu, to Bengaluru and Mysuru in Karnataka through a network of nine stations, Chennai, Poonamallee, Arakkonam, Chittoor, Bangarapet, Bengaluru, Chennapatna, Mandya, and Mysuru. Some reports suggest a potential 11-station plan, including additional stops like Kolar and Whitefield, indicating ongoing refinements. The corridor stretches approximately 435 km, and follows the Bengaluru–Chennai Expressway, leveraging advanced technologies such as LiDAR mapping and feasibility studies backed by Germany and Japan. Recent fieldwork has spotlighted alignment markings and final survey markers in Chittoor district, Andhra Pradesh, as observed on June 8, according to sources. This activity underscores the project's transition from planning to on-ground execution. Land acquisition, a critical hurdle, is nearly complete in Tamil Nadu and Andhra Pradesh, with efforts now intensifying in Karnataka, where 53 hectares across 41 villages in Mysuru district are being secured, involving around 876 farmers. The corridor will feature a standard gauge track (1435 mm) with a maximum operational speed of 320 km/h, capable of reaching 350 km/h, and an average speed of 250 km/h. The infrastructure includes a 30 km tunnel network, with notable sections like the 14 km tunnel near Bengaluru, alongside elevated sections to navigate urban density. Safety systems such as Digital Automatic Train Control (DS-ATC) and the Urgent Earthquake Detection and Alarm System (UrEDAS) for automatic braking will be implemented, drawing from the Shinkansen's near-zero fatality record over 10 billion passenger trips since 1964. The alignment along the Bengaluru–Chennai Expressway, from Hoskote to Sriperumbudur, reflects strategic planning to minimise disruption while maximising connectivity. This approach aligns with a 2023 World Bank report advocating high-speed rail to support India's projected 1.5 billion population by 2030. The corridor is poised to transform South India's economic landscape by linking Bengaluru's Silicon Valley, Chennai's auto hub, and Mysuru's tourism potential. Reduced travel time will benefit commuters and businesses, fostering regional growth.
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Business Standard
5 hours ago
- Business
- Business Standard
Best of BS Opinion: Fix the infection first, not just the surface symptoms
You can keep changing the bandage, but if the wound is festering, the rot spreads deeper. That's the thing about patchwork solutions, they cover up the mess, but they don't fix it. In policymaking, in industry, even in the stories we tell ourselves, surface-level corrections often distract from foundational decay. The balm of a scheme, a reform, a big bet, none of it works if the root cause stays untouched. You can't fast-forward progress while sidestepping the infection underneath. Let's dive in. Take India's celebrated decline in poverty, from 27.1 per cent in 2011-12 to 5.3 per cent today under the World Bank's updated benchmark. On the surface, this is a healing wound. But as our first editorial argues, the data hides gaps: rural-urban disparities, outdated metrics, and the government's continued reliance on global estimates. Without India defining its own poverty benchmarks and conducting regular evaluations, targeted policy becomes guesswork, just more gauze over a still-bleeding wound. Similarly, reforms in India's Special Economic Zones (SEZs) offer a modern dressing for a decades-old failure. As our second editorial explains, relaxing land and sourcing rules aims to attract semiconductor manufacturing, but the structural issues persist: fractured ecosystems, poor infrastructure, and policy inertia. Without fixing these systemic flaws or passing crucial legislation like the shelved DESH Bill, SEZs will keep limping along, all bandage, no cure. That same ecosystem blind spot haunts India's critical minerals strategy. Laveesh Bhandari highlights how mismatched timelines between mining, processing, and manufacturing create market failure. The solution? Not just easing regulations but syncing the entire value chain. Because speeding up one link while others lag doesn't heal the system, it just transfers the stress. In entertainment, too, deeper shifts are happening. Vanita Kohli-Khandekar tracks the rise of regional OTT platforms. While profitable, these players succeed not through cosmetic tweaks but by deeply understanding their local audiences, proof that sustainable growth demands tailored, embedded strategy, not surface-level scale chasing. And in Hubris Maximus: The Shattering of Elon Musk, Prosenjit Datta reviews Faiz Siddiqui's take on Elon Musk, a man constantly in crisis, yet always rebooting. But even Musk may find that without true introspection, you can only bandage over chaos for so long before it infects the empire you've built. Stay tuned!
