News Analysis India

Tag: Economy

  • India’s economy: Path to prosperity rests on efficacy of the sum of pieces thesis

    India, a flurry of global and Indian studies informs us, is in the Goldilocks moment. In 2023, India is the fastest-growing large economy ranked fifth globally. As this column has observed, India is also driving the domino effect of cost competitiveness. Demography and demand are expected to propel growth, and its middle class is estimated to touch 61 per cent of the population with an average income of Rs 20 lakh. By 2031, India is forecast to be the third largest economy, its GDP rising from $3.5 trillion to cross the $10 trillion mark.

    The path to prosperity rests on the efficacy of the sum of pieces thesis. Momentum, the laws of physics stipulate, is mass into velocity. Effectively India’s GDP is the sum total of the growth of all the states. Growth is and has been uneven, temporally and spatially. Ergo, it will be instructive to assess the potential upside for improvement and which states are dragging the national average lower.

    One measure of improved economic condition is per capita income. In rupee terms, India’s per capita income as of April 2023 is Rs 196,983 – up from Rs 90,688 in 2013. Averages are just as close to the bottom as to the top. And as Nobel laureate Angus Deaton observed in his seminal work The Great Escape, “Averages are no consolation to those who have been left behind.” History, geography and politics influence outcomes. So how are states across India’s political geography doing?

    There are two ways to illuminate the picture. One is the distance between the national average and the state average, and another is the gap between states. In  July 2023, of the 33 States and UTs, only 16 have shared data for 2022-23; data for the others might trickle in! Telangana at Rs 308,732, Karnataka at Rs 301,673 and Haryana at Rs 296,685 top the rankings.

    Consider the wide chasm between the toppers and the laggards. The per capita GSDP of Bihar is Rs 54,383; that of Uttar Pradesh is Rs 79,396, and that of Jharkhand is Rs 86,060. The per capita income of Bihar is less than roughly a sixth of Telangana and one-fourth of the national average. Per capita incomes in Uttar Pradesh and Jharkhand hover at 26 per cent of Telangana and 40 per cent of the national average.

    What about the pace of transition, and is there a correlation between the nature of politics and outcomes? Bihar has had a flip-flop series of regimes. As per the RBI and the state economic survey, between 2013 and 2023, Bihar’s per capita income rose from Rs 26,948 to Rs 54383. Uttar Pradesh, with a double-engine sarkar since 2017, rose from Rs 40,124 to Rs 79,396 and Jharkhand, which has had BJP and JMM-led regimes, from Rs 50,006 to Rs 80,060.

    How would these states with large populations rank globally in dollar terms? For reference, India’s per capita income at $2600 in 2023, as per the IMF, places it at 141st out of 191 countries. Arguably the size of the population drags down the average. Equally, the scale of the population – even with a low median age as is the case with the northern states — has the potential to deliver a demographic dividend.

    Bihar’s population of 126 million is roughly that of Mexico, which has a per capita income of $ 12,673. Bihar’s per capita income is roughly $680 (at USD @INR 80), ranking it 180 next to the Democratic Republic of Congo. Uttar Pradesh’s population of 220 million is comparable to Brazil, with a per capita income of $9,673. UP’s per capita income is under $1000, ranking it 170 next to Uganda.

    The comparisons illuminate the gap between possibilities and reality, even if only partially. Performance rests on policy. India must shift a major chunk of its population from low-productivity segments such as agriculture to high-income domains. On August 1, the government informed Parliament that the average monthly household income of agricultural households across India is Rs 10,218 – it is Rs 4,895 in Jharkhand, Rs 7,542 in Bihar and Rs 8,061 in UP. The deficit in per capita income is located in the nature of economic engagement – nearly half of India’s workforce is dependent on agriculture which accounts for about a sixth of the national income.

    India also has the lowest percentage of women employed in the workforce. In contrast, as per World Bank, the participation rate of women is 56 per cent in the United States, 61 per cent in China, 54 per cent in Japan and 56 per cent in Germany. India, in contrast, has barely 24 per cent of women in the workforce. The exact figure may be disputed, but no economy has achieved developed status, with less than half the women participating in the workforce.

    The list of necessary interventions is long – investment in human infrastructure, enabling agriculture with AI for forward and backward linkages, climate resilience in energy management, liberation of productivity factors, propelling urbanisation and more. To paraphrase Keynes, the pace at which we can reach our destination of economic bliss will be determined by the ability to manage the economic consequences of short-term politics on long-term prosperity.

    India, a flurry of global and Indian studies informs us, is in the Goldilocks moment. In 2023, India is the fastest-growing large economy ranked fifth globally. As this column has observed, India is also driving the domino effect of cost competitiveness. Demography and demand are expected to propel growth, and its middle class is estimated to touch 61 per cent of the population with an average income of Rs 20 lakh. By 2031, India is forecast to be the third largest economy, its GDP rising from $3.5 trillion to cross the $10 trillion mark.

    The path to prosperity rests on the efficacy of the sum of pieces thesis. Momentum, the laws of physics stipulate, is mass into velocity. Effectively India’s GDP is the sum total of the growth of all the states. Growth is and has been uneven, temporally and spatially. Ergo, it will be instructive to assess the potential upside for improvement and which states are dragging the national average lower.

    One measure of improved economic condition is per capita income. In rupee terms, India’s per capita income as of April 2023 is Rs 196,983 – up from Rs 90,688 in 2013. Averages are just as close to the bottom as to the top. And as Nobel laureate Angus Deaton observed in his seminal work The Great Escape, “Averages are no consolation to those who have been left behind.” History, geography and politics influence outcomes. So how are states across India’s political geography doing?googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });

    There are two ways to illuminate the picture. One is the distance between the national average and the state average, and another is the gap between states. In  July 2023, of the 33 States and UTs, only 16 have shared data for 2022-23; data for the others might trickle in! Telangana at Rs 308,732, Karnataka at Rs 301,673 and Haryana at Rs 296,685 top the rankings.

    Consider the wide chasm between the toppers and the laggards. The per capita GSDP of Bihar is Rs 54,383; that of Uttar Pradesh is Rs 79,396, and that of Jharkhand is Rs 86,060. The per capita income of Bihar is less than roughly a sixth of Telangana and one-fourth of the national average. Per capita incomes in Uttar Pradesh and Jharkhand hover at 26 per cent of Telangana and 40 per cent of the national average.

    What about the pace of transition, and is there a correlation between the nature of politics and outcomes? Bihar has had a flip-flop series of regimes. As per the RBI and the state economic survey, between 2013 and 2023, Bihar’s per capita income rose from Rs 26,948 to Rs 54383. Uttar Pradesh, with a double-engine sarkar since 2017, rose from Rs 40,124 to Rs 79,396 and Jharkhand, which has had BJP and JMM-led regimes, from Rs 50,006 to Rs 80,060.

    How would these states with large populations rank globally in dollar terms? For reference, India’s per capita income at $2600 in 2023, as per the IMF, places it at 141st out of 191 countries. Arguably the size of the population drags down the average. Equally, the scale of the population – even with a low median age as is the case with the northern states — has the potential to deliver a demographic dividend.

    Bihar’s population of 126 million is roughly that of Mexico, which has a per capita income of $ 12,673. Bihar’s per capita income is roughly $680 (at USD @INR 80), ranking it 180 next to the Democratic Republic of Congo. Uttar Pradesh’s population of 220 million is comparable to Brazil, with a per capita income of $9,673. UP’s per capita income is under $1000, ranking it 170 next to Uganda.

    The comparisons illuminate the gap between possibilities and reality, even if only partially. Performance rests on policy. India must shift a major chunk of its population from low-productivity segments such as agriculture to high-income domains. On August 1, the government informed Parliament that the average monthly household income of agricultural households across India is Rs 10,218 – it is Rs 4,895 in Jharkhand, Rs 7,542 in Bihar and Rs 8,061 in UP. The deficit in per capita income is located in the nature of economic engagement – nearly half of India’s workforce is dependent on agriculture which accounts for about a sixth of the national income.

    India also has the lowest percentage of women employed in the workforce. In contrast, as per World Bank, the participation rate of women is 56 per cent in the United States, 61 per cent in China, 54 per cent in Japan and 56 per cent in Germany. India, in contrast, has barely 24 per cent of women in the workforce. The exact figure may be disputed, but no economy has achieved developed status, with less than half the women participating in the workforce.

    The list of necessary interventions is long – investment in human infrastructure, enabling agriculture with AI for forward and backward linkages, climate resilience in energy management, liberation of productivity factors, propelling urbanisation and more. To paraphrase Keynes, the pace at which we can reach our destination of economic bliss will be determined by the ability to manage the economic consequences of short-term politics on long-term prosperity.

  • The political geography of India’s economy

    India, a flurry of global and Indian studies informs us, is in the Goldilocks moment. In 2023, India is the fastest-growing large economy ranked fifth globally. As this column has observed, India is also driving the domino effect of cost competitiveness. Demography and demand are expected to propel growth, and its middle class is estimated to touch 61 per cent of the population with an average income of Rs 20 lakh. By 2031, India is forecast to be the third largest economy, its GDP rising from $3.5 trillion to cross the $10 trillion mark.

    The path to prosperity rests on the efficacy of the sum of pieces thesis. Momentum, the laws of physics stipulate, is mass into velocity. Effectively India’s GDP is the sum total of the growth of all the states. Growth is and has been uneven, temporally and spatially. Ergo, it will be instructive to review the political geography of India’s economy, assess the potential upside for improvement and which states are dragging the national average lower.

    One measure of improved economic condition is per capita income. In rupee terms, India’s per capita income as of April 2023 is Rs 196,983 – up from Rs 90,688 in 2013. Averages are just as close to the bottom as to the top. And as Nobel laureate Angus Deaton observed in his seminal work The Great Escape, “Averages are no consolation to those who have been left behind.” History, geography and politics influence outcomes. So how are states across India’s political geography doing?

    There are two ways to illuminate the picture. One is the distance between the national average and the state average, and another is the gap between states. In  July 2023, of the 33 States and UTs, only 16 have shared data for 2022-23; data for the others might trickle in! Telangana at Rs 308,732, Karnataka at Rs 301,673 and Haryana at Rs 296,685 top the rankings.

    Consider the wide chasm between the toppers and the laggards. The per capita GSDP of Bihar is Rs 54,383; that of Uttar Pradesh is Rs 79,396, and that of Jharkhand is Rs 86,060. The per capita income of Bihar is 17 per cent of Telangana and one-fourth of the national average. Per capita incomes in Uttar Pradesh and Jharkhand hover at around 26 and 28 per cent of Telangana and 40 per cent of the national average. Within Bihar, the picture worsens — per capita income is Rs 18,692 in Sheohar, Rs 19,527 in Araria and Rs 20,631 in Sitamarhi.

    What about the pace of transition, and is there a correlation between the nature of politics and outcomes? Bihar has had a flip-flop series of regimes. As per the RBI and the state economic survey, between 2013 and 2023, Bihar’s per capita income rose from Rs 26,948 to Rs 54383. Uttar Pradesh, with a double-engine sarkar since 2017, rose from Rs 40,124 to Rs 79,396 and Jharkhand, which has had BJP and JMM-led regimes, from Rs 50,006 to Rs 80,060.

    How would these states with large populations rank globally in dollar terms? For reference, India’s per capita income at $2600 in 2023, as per the IMF, places it at 141st out of 191 countries. Arguably the size of the population drags down the average. Equally, the scale of the population – even with a low median age as is the case with the northern states — has the potential to deliver a demographic dividend.

    Bihar’s population of 126 million is roughly that of Mexico, which has a per capita income of $ 12,673. Bihar’s per capita income is roughly $680 (at USD @INR 80), ranking it 180 next to the Democratic Republic of Congo. Uttar Pradesh’s population of 220 million is comparable to Brazil, with a per capita income of $9,673. UP’s per capita income is under $1000, ranking it 170 next to Uganda.

    The comparisons illuminate the gap between possibilities and reality, even if only partially. Performance rests on policy. India must shift a major chunk of its population from low-productivity segments such as agriculture to high-income domains. On August 1, the government informed Parliament that the average monthly household income of agricultural households across India is Rs 10,218 – it is Rs 4,895 in Jharkhand, Rs 7,542 in Bihar and Rs 8,061 in UP. The deficit in per capita income is located in the nature of economic engagement – nearly half of India’s workforce is dependent on agriculture which accounts for about a sixth of the national income.

    India also has the lowest percentage of women employed in the workforce. In contrast, as per World Bank, the participation rate of women is 56 per cent in the United States, 61 per cent in China, 54 per cent in Japan and 56 per cent in Germany. India, in contrast, has barely 24 per cent of women in the workforce. The exact figure may be disputed, but no economy has achieved developed status, with less than half the women participating in the workforce.

    The list of necessary interventions is long. India needs to substantially ramp up investment in human infrastructure, enable agriculture with AI for forward and backward linkages, induct climate resilience in energy management, liberate land and labour which are the principal factors of productivity, introduce planned urbanisation which is a force multiplier and more. To paraphrase Keynes “the pace at which we can reach our destination of economic bliss” will be determined by the ability to manage the economic consequences of short-term politics on long-term prosperity.

    Shankkar Aiyar

    Author of The Gated Republic, Aadhaar: A Biometric History of India’s 12 Digit Revolution, and Accidental India([email protected])

    India, a flurry of global and Indian studies informs us, is in the Goldilocks moment. In 2023, India is the fastest-growing large economy ranked fifth globally. As this column has observed, India is also driving the domino effect of cost competitiveness. Demography and demand are expected to propel growth, and its middle class is estimated to touch 61 per cent of the population with an average income of Rs 20 lakh. By 2031, India is forecast to be the third largest economy, its GDP rising from $3.5 trillion to cross the $10 trillion mark.

    The path to prosperity rests on the efficacy of the sum of pieces thesis. Momentum, the laws of physics stipulate, is mass into velocity. Effectively India’s GDP is the sum total of the growth of all the states. Growth is and has been uneven, temporally and spatially. Ergo, it will be instructive to review the political geography of India’s economy, assess the potential upside for improvement and which states are dragging the national average lower.

    One measure of improved economic condition is per capita income. In rupee terms, India’s per capita income as of April 2023 is Rs 196,983 – up from Rs 90,688 in 2013. Averages are just as close to the bottom as to the top. And as Nobel laureate Angus Deaton observed in his seminal work The Great Escape, “Averages are no consolation to those who have been left behind.” History, geography and politics influence outcomes. So how are states across India’s political geography doing?googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });

    There are two ways to illuminate the picture. One is the distance between the national average and the state average, and another is the gap between states. In  July 2023, of the 33 States and UTs, only 16 have shared data for 2022-23; data for the others might trickle in! Telangana at Rs 308,732, Karnataka at Rs 301,673 and Haryana at Rs 296,685 top the rankings.

    Consider the wide chasm between the toppers and the laggards. The per capita GSDP of Bihar is Rs 54,383; that of Uttar Pradesh is Rs 79,396, and that of Jharkhand is Rs 86,060. The per capita income of Bihar is 17 per cent of Telangana and one-fourth of the national average. Per capita incomes in Uttar Pradesh and Jharkhand hover at around 26 and 28 per cent of Telangana and 40 per cent of the national average. Within Bihar, the picture worsens — per capita income is Rs 18,692 in Sheohar, Rs 19,527 in Araria and Rs 20,631 in Sitamarhi.

    What about the pace of transition, and is there a correlation between the nature of politics and outcomes? Bihar has had a flip-flop series of regimes. As per the RBI and the state economic survey, between 2013 and 2023, Bihar’s per capita income rose from Rs 26,948 to Rs 54383. Uttar Pradesh, with a double-engine sarkar since 2017, rose from Rs 40,124 to Rs 79,396 and Jharkhand, which has had BJP and JMM-led regimes, from Rs 50,006 to Rs 80,060.

    How would these states with large populations rank globally in dollar terms? For reference, India’s per capita income at $2600 in 2023, as per the IMF, places it at 141st out of 191 countries. Arguably the size of the population drags down the average. Equally, the scale of the population – even with a low median age as is the case with the northern states — has the potential to deliver a demographic dividend.

    Bihar’s population of 126 million is roughly that of Mexico, which has a per capita income of $ 12,673. Bihar’s per capita income is roughly $680 (at USD @INR 80), ranking it 180 next to the Democratic Republic of Congo. Uttar Pradesh’s population of 220 million is comparable to Brazil, with a per capita income of $9,673. UP’s per capita income is under $1000, ranking it 170 next to Uganda.

    The comparisons illuminate the gap between possibilities and reality, even if only partially. Performance rests on policy. India must shift a major chunk of its population from low-productivity segments such as agriculture to high-income domains. On August 1, the government informed Parliament that the average monthly household income of agricultural households across India is Rs 10,218 – it is Rs 4,895 in Jharkhand, Rs 7,542 in Bihar and Rs 8,061 in UP. The deficit in per capita income is located in the nature of economic engagement – nearly half of India’s workforce is dependent on agriculture which accounts for about a sixth of the national income.

    India also has the lowest percentage of women employed in the workforce. In contrast, as per World Bank, the participation rate of women is 56 per cent in the United States, 61 per cent in China, 54 per cent in Japan and 56 per cent in Germany. India, in contrast, has barely 24 per cent of women in the workforce. The exact figure may be disputed, but no economy has achieved developed status, with less than half the women participating in the workforce.

    The list of necessary interventions is long. India needs to substantially ramp up investment in human infrastructure, enable agriculture with AI for forward and backward linkages, induct climate resilience in energy management, liberate land and labour which are the principal factors of productivity, introduce planned urbanisation which is a force multiplier and more. To paraphrase Keynes “the pace at which we can reach our destination of economic bliss” will be determined by the ability to manage the economic consequences of short-term politics on long-term prosperity.

    Shankkar Aiyar

    Author of The Gated Republic, Aadhaar: A Biometric History of India’s 12 Digit Revolution, and Accidental India
    ([email protected])

  • India among fastest-growing economies due to Centre’s pro-active interventions: President Murmu

    By ANI

    NEW DELHI: Noting that India has been among the fastest-growing major economies, President Droupadi Murmu has said most sectors of the economy have shaken off the pandemic effect and this has been possible due to “timely and pro-active interventions from the government”.

    In her address to the nation on the eve of the 74th Republic Day, the President said India became the fifth largest economy in the world last year and the achievement came amid high global economic uncertainties.

    The President said that in the country’s mission ‘Sarvodaya’ (the upliftment of all), the most encouraging has been the progress made on the economic front.

    “Last year, India became the fifth largest economy in the world. It needs to be underlined that this achievement comes against the backdrop of high economic uncertainties around the world. The pandemic has entered the fourth year, affecting economic growth in most parts of the world.”

    She said in its initial phase, COVID-19 also hurt India’s economy badly but the country soon came out of the downturn.

    ALSO READ | India to be USD 3.7 trillion economy in 2023: RBI

    “Guided by our able leadership and driven by our resilience, we soon came out of the downturn, and resumed the growth saga. Most sectors of the economy have shaken off the pandemic effect. India has been among the fastest-growing major economies. This has been made possible by timely and pro-active interventions from the Government. The ‘Atmanirbhar Bharat’ initiative, in particular, has evoked great response among people at large.”

    She said there have also been sector-specific incentive schemes.

    “It is a matter of great satisfaction that those on the margins have also been included in the schemes and programmes and they have been helped in tiding over difficulties.”

    The President said that by implementing the Pradhan Mantri Garib Kalyan Anna Yojana announced in March 2020, the government ensured food security for poor families at a time when the country was facing economic disruption in the wake of the unprecedented outbreak of COVID-19.

    “Because of this help, no one had to go hungry. Keeping the welfare of poor families paramount, the duration of this scheme was extended successively, benefiting about 81 crore fellow citizens. Further extending this assistance, the Government has announced that even during the year 2023, the beneficiaries will get their monthly ration free of cost,” she said.

    ALSO READ | India@75: How Indian economy regained its mojo and how it can be the bird of gold again

    “With this historic move, the government has undertaken the responsibility of caring for the weaker sections while also enabling them to benefit from economic development,” she added.

    President Murmu said with the economy on a sound footing, the country has been able to begin and carry forward a series of praiseworthy initiatives.

    “The ultimate goal is to create an environment in which all citizens can, individually and collectively, realise their true potential and prosper.”

    She said as education builds the right foundation and for this purpose, the National Education Policy has introduced ambitious changes.

    “It rightly addresses the two-fold aims of education: as an instrument of economic and social empowerment and as a means to explore the truth. The policy makes our civilisational lessons relevant for contemporary life, while also preparing the learner for the 21 st century challenges.

    She said National Education Policy appreciates the role of technology in expanding and deepening the learning process.

    NEW DELHI: Noting that India has been among the fastest-growing major economies, President Droupadi Murmu has said most sectors of the economy have shaken off the pandemic effect and this has been possible due to “timely and pro-active interventions from the government”.

    In her address to the nation on the eve of the 74th Republic Day, the President said India became the fifth largest economy in the world last year and the achievement came amid high global economic uncertainties.

    The President said that in the country’s mission ‘Sarvodaya’ (the upliftment of all), the most encouraging has been the progress made on the economic front.

    “Last year, India became the fifth largest economy in the world. It needs to be underlined that this achievement comes against the backdrop of high economic uncertainties around the world. The pandemic has entered the fourth year, affecting economic growth in most parts of the world.”

    She said in its initial phase, COVID-19 also hurt India’s economy badly but the country soon came out of the downturn.

    ALSO READ | India to be USD 3.7 trillion economy in 2023: RBI

    “Guided by our able leadership and driven by our resilience, we soon came out of the downturn, and resumed the growth saga. Most sectors of the economy have shaken off the pandemic effect. India has been among the fastest-growing major economies. This has been made possible by timely and pro-active interventions from the Government. The ‘Atmanirbhar Bharat’ initiative, in particular, has evoked great response among people at large.”

    She said there have also been sector-specific incentive schemes.

    “It is a matter of great satisfaction that those on the margins have also been included in the schemes and programmes and they have been helped in tiding over difficulties.”

    The President said that by implementing the Pradhan Mantri Garib Kalyan Anna Yojana announced in March 2020, the government ensured food security for poor families at a time when the country was facing economic disruption in the wake of the unprecedented outbreak of COVID-19.

    “Because of this help, no one had to go hungry. Keeping the welfare of poor families paramount, the duration of this scheme was extended successively, benefiting about 81 crore fellow citizens. Further extending this assistance, the Government has announced that even during the year 2023, the beneficiaries will get their monthly ration free of cost,” she said.

    ALSO READ | India@75: How Indian economy regained its mojo and how it can be the bird of gold again

    “With this historic move, the government has undertaken the responsibility of caring for the weaker sections while also enabling them to benefit from economic development,” she added.

    President Murmu said with the economy on a sound footing, the country has been able to begin and carry forward a series of praiseworthy initiatives.

    “The ultimate goal is to create an environment in which all citizens can, individually and collectively, realise their true potential and prosper.”

    She said as education builds the right foundation and for this purpose, the National Education Policy has introduced ambitious changes.

    “It rightly addresses the two-fold aims of education: as an instrument of economic and social empowerment and as a means to explore the truth. The policy makes our civilisational lessons relevant for contemporary life, while also preparing the learner for the 21 st century challenges.

    She said National Education Policy appreciates the role of technology in expanding and deepening the learning process.

  • Kejriwal writes to PM Modi, reiterates demand for Lakshmi-Ganesh photos on currency notes

    By PTI

    NEW DELHI: Delhi Chief Minister Arvind Kejriwal, who created a political flutter with his appeal to incorporate images of Goddess Lakshmi and Lord Ganesha on currency notes, has written a letter to Prime Minister Narendra Modi pushing forward the demand.

    Claiming that the Indian economy was not in good shape, Kejriwal had on Wednesday said the country needed a lot of effort to get the economy back on track along with the “blessings of our gods and goddesses”.

    It’s a wish of 130 crore Indians that there should a picture of Mahatma Gandhi on one side of currency notes and the photos of Lord Ganesha and Goddess Lakshmi on the other side, he wrote in the letter on Thursday.

    “Tremendous support has been received on this issue.

    There is massive enthusiasm among the people and everyone wants this to be implemented immediately,” Kejriwal claimed.

    The Aam Aadmi Party (AAP) convener said in the letter that Indian economy is passing through a very bad phase and India and is listed among developing countries despite 75 years of Independence.

    “On the one hand, all countrymen need to work hard and on the other, we also need blessings of the deities so that our efforts bear fruits,” Kejriwal wrote.

    The country will progress only with a confluence of correct policy, hard work and blessings of the gods, he said.

    Kejriwal’s demand has evoked sharp reactions from the Bharatiya Janata Party (BJP), which called it an unsuccessful attempt to hide the “ugly anti-Hindu face” of the AAP in view of upcoming elections in Gujarat and Himachal Pradesh.

    PTI VIT RHL 10281117 NNNN

    NEW DELHI: Delhi Chief Minister Arvind Kejriwal, who created a political flutter with his appeal to incorporate images of Goddess Lakshmi and Lord Ganesha on currency notes, has written a letter to Prime Minister Narendra Modi pushing forward the demand.

    Claiming that the Indian economy was not in good shape, Kejriwal had on Wednesday said the country needed a lot of effort to get the economy back on track along with the “blessings of our gods and goddesses”.

    It’s a wish of 130 crore Indians that there should a picture of Mahatma Gandhi on one side of currency notes and the photos of Lord Ganesha and Goddess Lakshmi on the other side, he wrote in the letter on Thursday.

    “Tremendous support has been received on this issue.

    There is massive enthusiasm among the people and everyone wants this to be implemented immediately,” Kejriwal claimed.

    The Aam Aadmi Party (AAP) convener said in the letter that Indian economy is passing through a very bad phase and India and is listed among developing countries despite 75 years of Independence.

    “On the one hand, all countrymen need to work hard and on the other, we also need blessings of the deities so that our efforts bear fruits,” Kejriwal wrote.

    The country will progress only with a confluence of correct policy, hard work and blessings of the gods, he said.

    Kejriwal’s demand has evoked sharp reactions from the Bharatiya Janata Party (BJP), which called it an unsuccessful attempt to hide the “ugly anti-Hindu face” of the AAP in view of upcoming elections in Gujarat and Himachal Pradesh.

    PTI VIT RHL 10281117 NNNN

  • India has potential to lead fourth industrial revolution: PM Modi

    'We have worked on reforms and incentives to make India a tech-powered manufacturing hub of the world,' Prime Minister Narendra Modi said at a conference on Industry 4.0.

  • IITs can help make India $5tn economy, says Dharmendra Pradhan

    By Express News Service

    CHENNAI:  Institutes like IITs have a major role in making India a $5 trillion economy and fulfilling the vision of Viksit Bharat, said union education minister Dharmendra Pradhan on Monday during his visit to IIT Madras. “The next 25 years are very important for all of us.

    While entering the Amrit kaal, we leapfrogged ahead of a country that colonised us. India is evolving at an unprecedented pace. A fast-growing India will have huge domestic requirements which have to be fulfilled by our IITs,” he added.

    Pradhan further said that IITs are not just educational institutions, they are the temples to create a scientific temper and shape humanity’s future. Pradhan also urged the students to innovate, bring social change, file patents for the public good and facilitate the ease of living for the poorest.

    “Our students need to rekindle their inner strengths, reignite their ‘Chetna’. The students have to think big, drive social change and become job-providers rather than job-seekers,” Pradhan said. The Union minister highlighted that society has great expectations from IITs and the IITians have to be torchbearers of growth and development.

    During his visit, Pradhan participated in a series of events at IIT Madras. He released the Strategic Plan 2021-27 of IIT Madras which proposed an ambitious growth phase for the Institute. He also launched ‘Kotak IITM Save Energy’ Mission, being set up with CSR funding support from Kotak to help MSMEs reduce energy consumption and felicitated the Mphasis team for supporting the growth of the Centre for Quantum Information, Communication and Computing (CQuICC) besides flagging off other projects and initiatives of IIT Madras.

    He also awarded the diploma certificates to select students of BSc program in Data Science.  The union minister also visited the 5G Test bed for a demonstration, at the Advanced Manufacturing Technologies Development Centre, the Rocket Factory of IIT Madras-based Start-up Agnikul Cosmos, Healthcare Technology Innovation Centre and the IIT Madras Incubation Cell at the IIT Madras Research Park apart from other research facilities such as Sudha Gopalakrishnan Brain Centre and the 3D-printed house in the campus.

    After visiting the facilities, Pradhan lauded the initiatives of the IIT Madras. He said that the day is not far when the whole world will come to IIT Madras to benefit from the Brain Research Centre. Ideas, like 3D-printing technology can revolutionise construction, help address the issues of displacement and give a life of dignity to the poor.

    CHENNAI:  Institutes like IITs have a major role in making India a $5 trillion economy and fulfilling the vision of Viksit Bharat, said union education minister Dharmendra Pradhan on Monday during his visit to IIT Madras. “The next 25 years are very important for all of us.

    While entering the Amrit kaal, we leapfrogged ahead of a country that colonised us. India is evolving at an unprecedented pace. A fast-growing India will have huge domestic requirements which have to be fulfilled by our IITs,” he added.

    Pradhan further said that IITs are not just educational institutions, they are the temples to create a scientific temper and shape humanity’s future. Pradhan also urged the students to innovate, bring social change, file patents for the public good and facilitate the ease of living for the poorest.

    “Our students need to rekindle their inner strengths, reignite their ‘Chetna’. The students have to think big, drive social change and become job-providers rather than job-seekers,” Pradhan said. The Union minister highlighted that society has great expectations from IITs and the IITians have to be torchbearers of growth and development.

    During his visit, Pradhan participated in a series of events at IIT Madras. He released the Strategic Plan 2021-27 of IIT Madras which proposed an ambitious growth phase for the Institute. He also launched ‘Kotak IITM Save Energy’ Mission, being set up with CSR funding support from Kotak to help MSMEs reduce energy consumption and felicitated the Mphasis team for supporting the growth of the Centre for Quantum Information, Communication and Computing (CQuICC) besides flagging off other projects and initiatives of IIT Madras.

    He also awarded the diploma certificates to select students of BSc program in Data Science.  The union minister also visited the 5G Test bed for a demonstration, at the Advanced Manufacturing Technologies Development Centre, the Rocket Factory of IIT Madras-based Start-up Agnikul Cosmos, Healthcare Technology Innovation Centre and the IIT Madras Incubation Cell at the IIT Madras Research Park apart from other research facilities such as Sudha Gopalakrishnan Brain Centre and the 3D-printed house in the campus.

    After visiting the facilities, Pradhan lauded the initiatives of the IIT Madras. He said that the day is not far when the whole world will come to IIT Madras to benefit from the Brain Research Centre. Ideas, like 3D-printing technology can revolutionise construction, help address the issues of displacement and give a life of dignity to the poor.

  • Wrong economic policies of govt have put burden of inflation on common people: Rahul

    “If you think inflation will go down in the coming times, then you are under a misconception. Get ready for a fresh onslaught from the Modi government in the coming days,” he said.

  • India on cusp of major economic recovery; talks of stagflation ‘overhyped’: Niti Aayog VC

    By PTI

    NEW DELHI: India is on the cusp of a major economic recovery and talks of possible stagflation are “overhyped” as a strong economic foundation is being laid with the reforms carried out by the government over the last seven years, Niti Aayog Vice Chairman Rajiv Kumar said on Sunday.

    Notwithstanding economic uncertainties triggered by the Russia-Ukraine war that is also impacting global supply chains, Kumar asserted that it was quite clear from all accounts that India will remain the fastest growing economy in the world.

    “Given all the reforms that we have done in the last seven years, and given that we are seeing the end of the COVID-19 pandemic hopefully, and the 7.8 per cent rate of growth that we will get this year (2022-23), a very strong foundation is now being laid for further rapid increase in economic growth in the coming years,” Kumar told PTI in an interview.

    Asia’s third-largest economy is projected to grow 8.9 per cent in 2021-22, according to recent government data. The Reserve Bank of India (RBI) has pegged the economic growth rate for 2022-23 at 7.8 per cent.

    “So, I think India is on the cusp of a major economic recovery and economic growth,” Kumar said even as he acknowledged that because of the Russia-Ukraine war, India’s GDP growth projection could be revised.

    “But even then, India will remain the fastest growing economy and all the other economic parameters are actually quite within the range,” he said.

    Russia started its military offensive against Ukraine on February 24. Western nations, including the US, have imposed major economic and various other sanctions on Russia following the offensive.

    On rising inflation, the Niti Aayog Vice Chairman said that RBI is keeping a close watch as per its mandate.

    “I am sure that the RBI is well in control of it (inflation) and will take the necessary steps if and when required,” he said.

    Retail inflation hit an eight-month high of 6.07 per cent in February, remaining above the RBI’s comfort level for the second month in a row while wholesale price-based inflation soared to 13.

    11 per cent on account of hardening of crude oil and non-food item prices. RBI keeps a close watch on the CPI inflation while deciding on its bi-monthly monetary policy.

    The RBI’s Monetary Policy Committee (MPC) has been given the mandate to maintain annual inflation at 4 per cent until March 31, 2026, with an upper tolerance of 6 per cent and a lower tolerance of 2 per cent Regarding concerns over possible risk of stagflation, Kumar said the Indian economy is projected to grow 7.

    8 per cent in the current fiscal and this is nowhere near the definition of stagflation. “I think this has been overhyped, because when you talk about stagflation, we talk about growth rates which are much below your rate of growth or potential output, which is not true at all for this time,” he emphasised.

    Stagflation is defined as a situation where inflation as well as unemployment are high and demand also remains stagnant in the economy.

    About the government meeting the target of raising Rs 88,000 crore from asset monetisation in 2021-22 financial year ended March 31, Kumar said, “I have heard this (target) will be achieved or if not, (then we will be) very close to the target.

    We have a number of things in the pipeline, and a number of ministries have taken initiatives. So, I think this will be well on track.

    ” Last year, Finance Minister Nirmala Sitharaman had announced a Rs 6 lakh crore-National Monetisation Pipeline (NMP) over a four-year period that will look to unlock value in infrastructure assets across sectors ranging from power to road and railways.

    Niti Aayog in consultation with infrastructure line ministries has prepared the report on NMP. Regarding high petrol and diesel prices, Kumar said that given the global situation, fuel prices are rising across the world.

    “In the past, the government had taken steps to reduce the tax burden.

    And I think, it’s time now for the states to come forward if they feel that this is required to be done,” he said.

    In any case, Kumar asserted, the government keeps a close watch on prices of all commodities including fuel and will take steps as necessary.

    Rates of petrol and diesel are rising, and vary from state to state depending upon the incidence of local taxation.

  • Indian economy contracts by 6.6 per cent in 2020-21: NSO data

    By PTI

    NEW DELHI: Indian economy contracted by 6.6 per cent in 2020-21 as against the earlier estimate of 7.3 per cent decline, showing that the COVID-19 pandemic hit economy did not perform as badly as was initially worked out.

    As per the provisional estimates released in May 2021, the GDP had contracted by 7.3 per cent during 2020-21 on account of the outbreak of COVID-19 and subsequent nationwide lockdown to contain the pandemic.

    The National Statistical Office has also revised downward the real GDP growth number for 2019-20 to 3.7 per cent as against the earlier estimate of 4 per cent.

    “Real GDP or GDP at constant (2011-12) prices for the years 2020-21 and 2019-20 stands at Rs 135.58 lakh crore and Rs 145.16 lakh crore, respectively, showing a contraction of 6.6 per cent during 2020-21 as compared to growth of 3.7 per cent during 2019-20,” National Statistical Office said in the revised national account data released on Monday.

    Under the first revision released in January 2021, real GDP or GDP at constant (2011-12) prices for the years 2019-20 was pegged at Rs 145.69 lakh crore, showing growth of 4 per cent during 2019-20.

    “In terms of real GVA (gross value added), i.e., GVA at constant (2011-12) basic prices, there has been a contraction of 4.8 per cent in 2020-21, as against growth of 3.8 per cent in 2019-20,” NSO stated.

    During 2020-21, the growth rates of the primary sector (comprising agriculture, forestry, fishing and mining & quarrying), secondary sector (comprising manufacturing, electricity, gas, water supply & other utility services, and construction) and tertiary sector (services) have been estimated as 1.6 per cent, (-)2.8 per cent and (-) 7.8 per cent as against a growth of 1.9 per cent, (-) 6.8 per cent and (-) 8.4 per cent, respectively, in the previous year.

    Nominal Net National Income (NNI) or NNI at current prices for the year 2020-21 stands at Rs 171.94 lakh crore as against Rs 177.17 lakh crore in 2019-20, showing a contraction of 2.9 per cent during 2020-21 as against growth of 6 per cent in the previous year, it stated.

    Per Capita Income i.e. Per Capita Net National Income at current prices is estimated at Rs 1,32,115 and Rs 1,26,855 respectively for the years 2019-20 and 2020-21, it stated.

  • GDP to expand at 9.5 per cent as growth impulses strong: RBI Governor

    The fiscal and taxation reforms have played key role in driving growth and reviving confidence, Das said.