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India Gazette
22-05-2025
- Business
- India Gazette
Trade tensions, policy uncertainty still hurting global growth, but India shows resilience: RBI
New Delhi [India], May 22 (ANI): Global growth continues to face several challenges due to ongoing trade tensions, policy uncertainty, and weak consumer sentiment, says a recent report by the Reserve Bank of India (RBI). Despite these global headwinds, the report mentioned that the Indian economy has remained resilient and continues to show signs of steady progress. It said 'Amidst these challenges, the Indian economy exhibited resilience. Various high frequency indicators of industrial and services sectors sustained their momentum in April'. The report highlighted that persistent trade frictions, rising uncertainty in policymaking, and low consumer confidence are putting pressure on the world economy. Although a temporary pause in tariffs has provided some relief, the overall global outlook remains fragile. It also added that the emerging markets and developing economies (EMDEs), especially those in Asia, are expected to experience slower growth due to the impact of tariffs. Financial turbulence is also emerging as a key risk to global growth projections. In contrast to this global uncertainty, India's economy is showing strength. High-frequency indicators for both the industrial and services sectors maintained their momentum in April. The resilience is further reflected in record Goods and Services Tax (GST) collections during the month. The agriculture sector is also expected to perform well. A bumper rabi harvest and higher planting for summer crops, along with favourable forecasts for the 2025 southwest monsoon, are positive signs for rural income and food production. RBI said 'India continues to be an economy supported by stability- monetary, financial and political; policy consistency and certainty; congenial business environment; and strong macroeconomic fundamentals'. Inflation trends are encouraging as well. Headline Consumer Price Index (CPI) inflation fell for the sixth month in a row to reach its lowest level since July 2019. This decline was mainly due to a continued easing of food prices. The report noted that domestic financial markets were under pressure in April, but saw a turnaround beginning in the third week of May. In the automobile sector, trends were mixed. Wholesale automobile sales fell 13.3 per cent year-on-year in April, mainly due to a high base effect that affected two-wheeler sales. However, tractor sales showed strong growth, though the pace slowed. Vehicle registrations rose 2.9 per cent year-on-year, with the transport segment seeing its highest growth in six months during April 2025. Overall, the RBI report emphasized that as advanced economies struggle with economic uncertainty, India continues to stand out as a promising destination for long-term investors. (ANI)
Time of India
21-05-2025
- Business
- Time of India
Indian economy exhibiting resilience despite high trade & tariff-related uncertainty: RBI
The Indian economy is showing resilience despite elevated trade and tariff-related uncertainties, the Reserve Bank of India said in its May monthly bulletin. Global growth continues to face headwinds, with persistent trade frictions, heightened policy uncertainty, and weak consumer sentiment weighing on the outlook, said the central bank. "Though the tariff pause has provided a temporary let off, the global outlook remains fragile. In its April 2025 World Economic Outlook, the International Monetary Fund (IMF) trimmed global growth forecasts for 2025 and 2026 from its January projections citing escalating trade tensions and policy uncertainty. Growth in emerging market and developing economies (EMDEs) is also projected to decelerate with emerging and developing Asia significantly impacted by the tariffs."
Cision Canada
07-05-2025
- Business
- Cision Canada
THE GLOBAL CAPACITY BUILDING COALITION LAUNCHES ACCELERATOR AT ECOSPERITY TO SPOTLIGHT AND SCALE CLIMATE FINANCE CAPACITY BUILDING INITIATIVES
The inaugural GCBC Accelerator will provide high-potential projects with access to expert advisory, networks, and resources to scale solutions that work to accelerate investment in the transition in EMDEs SINGAPORE, May 6, 2025 /CNW/ -- Today at the Ecosperity Week 2025, Mary L. Schapiro, Chair of the Global Capacity Building Coalition (GCBC), announced the launch of the GCBC Accelerator, a global initiative that will identify, celebrate, and support high potential capacity building projects that mobilize sustainable finance to help bridge the investment and capacity gap in emerging markets and developing economies (EMDEs). The Accelerator, open to organizations, partnerships, or programs dedicated to building capacity in or for EMDEs, presents an exciting new opportunity for applicants to showcase their efforts supporting the development of climate finance needed to scale the energy transition. Applicants will be able to enter across three distinct categories: mobilizing sustainable finance, building climate capabilities, and fostering innovation. EMDEs, excluding China, face a nearly $2.5 trillion annual financing gap for sustainable development. Around half of this finance is expected to come from domestic resource mobilization, presenting a transformative opportunity for growth. Strengthening the capacity of financial institutions and professionals in local economies is a critical lever to unlock investment potential. Today, capacity building resources needed to scale the energy transition and sustainable development can often be fragmented, difficult to access, and unevenly targeted. The Accelerator seeks to address these barriers by spotlighting and supporting the world's most innovative and impactful capacity building initiatives that help channel capital where it's needed most. Mary Schapiro, Chair of the Global Capacity Building Coalition and Vice Chair of the Glasgow Financial Alliance for Net Zero (GFANZ) said,"Emerging markets and developing economies need access to the tools, resources, and support necessary to accelerate the clean energy transition. This Accelerator program is designed to identify and scale innovative efforts that support capacity-building, drive economic opportunity, and help build more resilient, sustainable economies. The GCBC is excited to elevate financial institutions, civil society organizations, and others that are engaging in this critical work." The GCBC will provide tailored support for selected Accelerator initiatives, including expert advisory, communications and marketing support, partnership facilitation, as well as practical and operational support for capacity building activities. The GCBC will announce selected applicants at New York Climate Week in September 2025. By recognizing these capacity building efforts within the climate finance ecosystem and supporting them to scale and replicate, the Accelerator aims to help organizations and individuals unlock opportunities and accelerate investment in the transition across EMDEs. Full information on the Accelerator is available here. Applications close at 11:59 PM ET on July 4, 2025. About the Global Capacity Building Coalition (GCBC) The Global Capacity Building Coalition (GCBC) is an unprecedented global initiative. It brings together many of the world's leading climate finance organizations to accelerate and scale climate and transition finance capacity building for financial institutions and finance professionals, particularly in emerging markets and developing economies (EMDEs). The Coalition is designed to enhance collaboration and respond to growing requests for capacity building support from financial institutions in EMDEs to meet the aims of the UN and the G20 Sustainable Finance Working Group (SFWG). The GCBC was launched by the U.N. Secretary-General's Special Envoy on Climate Ambition and Solutions Michael R. Bloomberg, alongside senior leaders of multilateral development banks, finance, and international organizations at COP28 in December 2023.
Yahoo
07-05-2025
- Business
- Yahoo
THE GLOBAL CAPACITY BUILDING COALITION LAUNCHES ACCELERATOR AT ECOSPERITY TO SPOTLIGHT AND SCALE CLIMATE FINANCE CAPACITY BUILDING INITIATIVES
The inaugural GCBC Accelerator will provide high-potential projects with access to expert advisory, networks, and resources to scale solutions that work to accelerate investment in the transition in EMDEs SINGAPORE, May 6, 2025 /PRNewswire/ -- Today at the Ecosperity Week 2025, Mary L. Schapiro, Chair of the Global Capacity Building Coalition (GCBC), announced the launch of the GCBC Accelerator, a global initiative that will identify, celebrate, and support high potential capacity building projects that mobilize sustainable finance to help bridge the investment and capacity gap in emerging markets and developing economies (EMDEs). The Global Capacity Building Coalition The Accelerator, open to organizations, partnerships, or programs dedicated to building capacity in or for EMDEs, presents an exciting new opportunity for applicants to showcase their efforts supporting the development of climate finance needed to scale the energy transition. Applicants will be able to enter across three distinct categories: mobilizing sustainable finance, building climate capabilities, and fostering innovation. EMDEs, excluding China, face a nearly $2.5 trillion annual financing gap for sustainable development. Around half of this finance is expected to come from domestic resource mobilization, presenting a transformative opportunity for growth. Strengthening the capacity of financial institutions and professionals in local economies is a critical lever to unlock investment potential. Today, capacity building resources needed to scale the energy transition and sustainable development can often be fragmented, difficult to access, and unevenly targeted. The Accelerator seeks to address these barriers by spotlighting and supporting the world's most innovative and impactful capacity building initiatives that help channel capital where it's needed most. Mary Schapiro, Chair of the Global Capacity Building Coalition and Vice Chair of the Glasgow Financial Alliance for Net Zero (GFANZ) said, "Emerging markets and developing economies need access to the tools, resources, and support necessary to accelerate the clean energy transition. This Accelerator program is designed to identify and scale innovative efforts that support capacity-building, drive economic opportunity, and help build more resilient, sustainable economies. The GCBC is excited to elevate financial institutions, civil society organizations, and others that are engaging in this critical work." The GCBC will provide tailored support for selected Accelerator initiatives, including expert advisory, communications and marketing support, partnership facilitation, as well as practical and operational support for capacity building activities. The GCBC will announce selected applicants at New York Climate Week in September 2025. By recognizing these capacity building efforts within the climate finance ecosystem and supporting them to scale and replicate, the Accelerator aims to help organizations and individuals unlock opportunities and accelerate investment in the transition across EMDEs.
Business Recorder
02-05-2025
- Business
- Business Recorder
State Bank of Pakistan identifies obstacles to FDI inflows
KARACHI: The State Bank of Pakistan (SBP) has identified political and economic instability, high taxation and inadequate infrastructure as major obstacles to attracting foreign direct investment in the country. These fundamental issues continue to erode investor confidence, making it difficult for the country to attract and retain long-term international capital despite its strategic location and market potential. The SBP, in its recent report on economy, has highlighted the impediments to Foreign Private Investment in Pakistan. According to report, security situation, legal system, property rights, and law & order situation are other crucial factors in attracting inward Foreign Direct Investment (FDI) and it is essential to address these issues to attract foreign investment in the country. Foreign private investment comprises of Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI). Emerging economies, like Pakistan, prefer to attract FDI, which is of long-term and developmental nature. Jul-Mar FDI up 14pc to $1.644bn YoY FDI offers numerous advantages such as providing much-needed capital, facilitating infrastructure development, and creating job opportunities in host countries. FDI often brings advanced technologies and expertise that enhance productivity and force competition in the domestic market. Additionally, these investments can provide local companies with access to international markets and bring diversification in the economy. However, FDI in Pakistan continues to trail behind the regional countries, despite a sizable market, strategic location, and untapped potential across various sectors. In Pakistan, the report mentioned that, FDI has remained at about 1.0 percent of GDP per year (on average) in the last decade, which is less than half of the Emerging Market and Developing Economies (EMDEs) average of 2.7 percent on average, per year. A large share of FDI in recent decades has been concentrated in power, banking, telecom, and FMCGs, primarily serving domestic demand rather than boosting exports. Other private inflows have remained weak, lagging behind GDP growth and development needs, reducing Pakistan's capacity to finance even a moderate current account deficit of 2-3 percent of GDP. According to the SBP, the relevant literature points to several factors inhibiting investment flows to Pakistan including political and economic instability, high taxation and lack of adequate infrastructure. The report said that frequent changes in government and policies discourage investors seeking long-term interests in the economy. This is particularly reflected by prevailing high economic policy uncertainty. Moreover, any disruption in economic reform process due to political transition also weakens investor confidence. Earlier studies in this regard have highlighted that overall ease of doing business in Pakistan remains a challenge, specifically due to difficulties in registering businesses, securing permits, and enforcement of contracts and intellectual property rights. Additionally, high cost of complying with local regulations discourage foreign companies from entering the Pakistani markets. In addition, Pakistan's high tax rates, especially the corporate income tax compared to peer countries, along with frequent changes in tax policies, create uncertainty and deter long-term planning. Additionally, the absence of tax incentives for foreign investors in critical sectors reduces the country's competitiveness in global markets. On infrastructure side, Pakistan's transport, energy, and communication networks are underdeveloped, hindering industrial growth and operational efficiency. Inefficiencies at ports and in logistics also affect export competitiveness. Similarly, Pakistan also ranks low on digital infrastructure vis-a-vis peer countries. Copyright Business Recorder, 2025
