Latest news with #economicgrowth
Times of Oman
24 minutes ago
- Business
- Times of Oman
India to remain fastest-growing large economy in world for next 30 years: Piyush Goyal
New Delhi: Indian Union Minister for Commerce and Industry Piyush Goyal said that India is set to remain the fastest-growing large economy in the world for the next 30 years. The commerce minister in his address at the CII Annual Business Summit 2025 in the national capital on Thursday highlighted India's economic performance. Goyal said the country has maintained a steady growth rate of 6-7 per cent and aims to push it further to 8 per cent at constant prices. He noted that despite global uncertainties, India remains one of the best-performing emerging markets. "Today, India holds the fourth-largest foreign exchange reserves in the world at about 690 billion dollars. Our inflation has remained below 4 per cent for the last three months. The Reserve Bank has done a commendable job balancing liquidity and currency management," Goyal said. The Minister emphasised India's appeal as an investment destination, noting that Indian companies have delivered nearly 20 per cent CAGR returns over the past 20-25 years. "FDI inflows are consistently breaking records. We are back on track on the growth trajectory, working through international trading relations," he said. Goyal also spoke about India's trade relations, stating that progress is being made on bilateral trade agreements with the USA and the 27-nation European Union bloc. He informed that negotiations have been launched with New Zealand and highlighted that India's FTA includes a forward looking investment clause, and investments from the Norwegian Pension Fund are not included in the FDI figure. The Union Minister cited the IMF projection that India will become the world's third-largest GDP by 2027. "Despite global volatility, uncertainty and complexity, India continues to power global growth through its own growth," he said. He also highlighted the cost-effectiveness of renewable energy in India, stating that renewable energy with storage is now available at Rs 3.30 per kilowatt hour. "Solar and wind plus storage make a compelling case for data centres to come to India," he added. Touching on inclusive growth, Goyal reaffirmed Prime Minister Narendra Modi's vision of dignity for every individual. "Free healthcare, quality education and basic needs are being addressed. We are now seeing employment growth, and skill development centres are playing a key role. No child should be deprived, and no man should be left behind," he said. In conclusion, Goyal said India's growth is built on three tracks, strong macroeconomic fundamentals, global trust, and the aspirations of 140 crore Indians.
Reuters
3 hours ago
- Business
- Reuters
India GDP growth likely accelerated in March quarter on rural demand, state spending
NEW DELHI, May 30 (Reuters) - India's economic growth likely picked up pace in the January–March quarter, buoyed by stronger rural demand and higher government spending, even as private firms delayed investments amid global uncertainties. Gross domestic product (GDP) is expected to have grown 6.7% year-on-year in the March quarter, up from 6.2% in the previous three months, according to a Reuters poll of economists. Rural consumption improved during the quarter, while urban demand indicators remained mixed, said Gaura Sen Gupta, chief economist at IDFC First Bank Economic Research. Investment was supported by government spending, she said. The Ministry of Statistics will release March-quarter GDP data and provisional estimates for the 2024-25 (April-March) fiscal year on Friday at 1030 GMT. Some economists expect GDP growth to print significantly above expectations due to a fall in government subsidies. But they caution that true economic growth, as measured by gross value added (GVA), will be lower than the headline number. The calculation of GDP includes indirect taxes and government subsidy payouts which tend to be volatile, while GVA strips out those components. JP Morgan expects March quarter GDP growth at 7.5% year-on-year, while GVA growth is seen lower at 6.7% compared to 6.2% in the previous quarter. India's central bank, the Reserve Bank of India (RBI), expects GDP growth at 6.5% in the fiscal year beginning April 1. At that rate, India remains the fastest growing among major economies and its size could match Japan's this year at $4.18 trillion, according to projections by the IMF. Economists said while the global outlook has weakened amid escalating trade tensions, India appears relatively insulated due to lower dependence on goods trade, tax cuts announced by the government in February and lower interest rates. "Despite the various downside risks, we think the policy coordination between the government and the RBI remains the strongest at this juncture," said Kaushik Das, India chief economist at Deutsche Bank, adding that authorities are showing strong resolve to do "whatever it takes" to support growth. Retail inflation, which eased to a near six-year low of 3.16% in April, alongside a favourable monsoon forecast, is expected to keep food prices in check and pave the way for another policy repo rate (INREPO=ECI), opens new tab cut by the RBI in June. The government's income tax relief, recent fiscal measures and central bank rate cuts, could lift growth to 6.3%–6.8% in the current fiscal year, the finance ministry said.
Daily Mail
4 hours ago
- Business
- Daily Mail
KEMI BADENOCH: This country deserves a leader who doesn't treat economics like showbiz
Labour promised voters 'change' – but still don't know how they'll pay for it. Now Nigel Farage is trying the same trick. In their first ten months, Keir Starmer and Rachel Reeves have hiked taxes on jobs, farms and family businesses, and snatched winter fuel support from vulnerable pensioners. All this despite promising not to raise taxes on working people. And guess what? It's not working. Every Labour government has left unemployment higher than when it took office. Sure enough, unemployment is up 10 per cent since last July and inflation is steadily rising. Starmer made big promises that he couldn't deliver, now we're all paying the price. This week, Reform's leader is pledging tax breaks and welfare giveaways like it's Christmas, but his sums aren't adding up. Jeremy Corbyn 's 'magic money tree' is back, and this time it has a Reform UK sticker on it. It's easy in opposition to promise voters everything they want, and provide only vague ideas as to how to pay for it. Keir Starmer did it and is getting found out. Now Nigel Farage is doing it. I won't. I won't make empty promises to chase popularity. Our most successful leader – Lady Thatcher – once said: 'The problem with socialism is that you eventually run out of other people's money.' After years of economic shocks – Covid, war, inflation – Britain can't afford the fantasy economics of Starmer and Farage. We need a proper plan for economic growth, underpinned by our principles. A plan built around robust private enterprise – because Conservatives understand that it's not government that creates growth, it's business. Conservatives believe in lower taxes – not just as a slogan, but as a moral choice. We get that your money belongs to you, and every penny the Government takes should be justified. We believe that a smaller, smarter state allows individuals and communities to flourish. Working families have been hit hard by the cost of living. We risk making the current environment of low-pay and precarious work permanent, unless we find a sustainable way to allow private enterprise and jobs to flourish. People who have put in the hard graft to support their families should be able to enjoy the fruits of their labour. Working from January to June just to pay the Government is not an acceptable situation. Conservatives reject the mindset that taking money from a population and giving it back to them is generous, while letting them keep it in the first place is selfish. With an ageing population, the tax burden is just going to keep increasing. Only by taking some difficult decisions, while making the case for why lower taxes and less spending are necessary, can we hope to live in a Britain where society is bigger, and government smaller. I saw how previous Conservative governments lost sight of these principles and learned a hard lesson about trying to have our cake and eat it. It's why I am also clear that under my leadership, if the Conservatives are to keep taxes low, we must cut waste and end the inherent unfairness where some work ever harder for smaller rewards – to pay for others' benefits. We're now the only major political party prepared to take a serious look at the welfare state. Conservatives believe in personal responsibility, and welfare as a safety net rather than as a way of life. This week we have seen Labour and Reform in a race to the bottom to scrap the two-child benefit cap. Apparently, Starmer and Farage now believe in getting taxpayers – many of whom are struggling to raise their own children or choosing not to have them in the first place – to fund unlimited child support for others. That's not fair, it's not sustainable and it's not even compassionate. Welfare traps people, builds dependency and it drives up costs for everyone. While Labour and Reform are content to make promises they can't keep, I won't. The Conservatives are going to be the party of sound money and fiscal responsibility once again. Keir Starmer can't tell you what he stands for. Nigel Farage can't tell you how he'll pay for anything. I can tell you this: I believe in lower taxes, personal responsibility – and a leaner, better-run state. Britain deserves party leaders who don't treat economics like a branch of showbiz, an announcement for a nice headline and forget about the deficit. The Conservatives are now the only party of sound money. It's not an easy position to hold in the age of instant gratification, but it's the right one if we want our children to inherit anything except our debts.
The Independent
4 hours ago
- Business
- The Independent
Business confidence in Scotland ‘higher than UK average' in May
Business confidence in Scotland rose to higher than the UK national average in May, at 52%. Overall UK business confidence rose 11 points in May to 50% – the highest level in nine months. Confidence in Scotland rose 12 points during May to 52%, according to the Bank of Scotland's Business Barometer, compared to 40% in April. While companies in Scotland reported lower confidence in their own business prospects month-on-month, down four points at 57%, optimism in the economy rose 29 points to 48%, which analysts said 'gives a headline confidence reading of 52%'. The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. Overall, UK business confidence increased 11 points in May to 50% – its highest level since August 2024. Firms' optimism in their own trading prospects strengthened six points to 56%, while confidence in the wider economy also climbed 16 points to 44%. In a six-month forecast, Scottish businesses identified target areas for growth as evolving their offering, for example by introducing new products or services (56%), investing in their team, for example through training (48%) and introducing new technology, for example AI and automation (36%). The East Midlands was the most confident region in May (66%), followed closely by the north-east of England (65%). Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: 'Scottish business confidence has not only continued to rise, but has now remained above the UK national average for a sixth month in a row. 'Our country's businesses are setting out clear plans for growth, with more firms planning to take steps such as launching new products and services than anywhere else in the UK. 'This reflects a business community that has innovation and ambition in its DNA. We'll continue to support local businesses as they turn their plans into action.' Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said: 'The rebound in business confidence suggests that firms might be in a stronger position for the next quarter. 'The rise in confidence is driven by a sharp increase in economic optimism, reflecting the recovery in financial markets amid more promising prospects for potential global trade agreements. 'Equally as encouraging is the fact that trading prospects, wage expectations and hiring intentions also saw improvements this month. The positive trends in these metrics are important signals for potential growth and resilience in the business community and the wider economy. 'While we know that fluctuations do occur month on month and the global economic outlook remains uncertain, this month's increase in confidence is an encouraging sign.' Paul Kempster, managing director for commercial banking coverage at Lloyds Business and Commercial, said: 'The jump in business confidence for our regions and nations is encouraging. 'It's great to see that across many metrics, businesses are more hopeful for the future and are backing themselves for success in 2025. 'The East Midlands in particular saw the highest confidence levels at 66%, the highest the region has seen since 2018. 'As business confidence regains, we are committed to support businesses with a range of financial services to help them to seize opportunities and achieve their growth ambitions.'
South China Morning Post
5 hours ago
- Business
- South China Morning Post
Hong Kong credit ratings reflect strength, support for city on financial front
For an economy that is supposed to be in the doldrums according to some pessimists, Hong Kong's performance has not been too shabby lately. The economy experienced robust growth in the first quarter of this year, with a 3.1 per cent rise in gross domestic product from the same period last year and an 8.7 per cent jump in exports. Early signs are that the city is successfully diversifying its exports to new markets across Southeast Asia and in the Middle East, to compensate for losses from trade with the United States because of the tariff war. Advertisement It should, therefore, come as no surprise that all three major credit ratings firms have reaffirmed the fiscal stability and resilience of the city's outlook. Moody's and S&P Global have maintained their 'Aa3' and 'AA+' credit ratings for Hong Kong, respectively their fourth highest and second highest. They came just days after Fitch Ratings said it was maintaining Hong Kong's 'AA-', its fourth highest. Indeed, Moody's upgraded the city's outlook from 'negative' to 'stable'. It is reassuring as the latest ratings come at a time of deep uncertainties about the world's economic and trade outlooks because of the on-again, off-again tariffs imposed by US President Donald Trump against friend and foe alike. All three ratings reflect the city's strong financial position, with its large fiscal buffers, low debt as well as solid funding and ample liquidity within the banking sector. It means Hong Kong has very low credit risk and a strong capacity to repay its debts. S&P has also noted the local government's flexible and effective policies while the US dollar-peg continues to support monetary and financial stability. While the city's deficit, revised down to HK$80.3 billion from HK$87.2 billion, worries some critics, most economists consider it quite manageable. Depending on several likely scenarios, the government's consolidated account – combining its operating and capital accounts – is expected to return either to a surplus or a deficit down to HK$59 billion in 2028-29. Throughout this period, the fiscal reserves are expected to remain at about HK$500 billion. Advertisement One reason for the lingering deficit is high capital works expenditure from megaprojects such as the Northern Metropolis in the northern New Territories. The local capital markets are being reanimated, especially with a thriving initial public offering (IPO) scene, which just saw this year's biggest debut with Chinese battery giant Contemporary Amperex Technology (CATL). That is expected to propel Hong Kong back to the top three ranking in IPO listings.
