News Analysis India

Tag: Indian economy

  • Flipkart Launches Its UPI Handle To Boost India’s Digital Economy Vision |

    Bengaluru: E-commerce giant Flipkart launched its Unified Payments Interface (UPI) handle to further enhance its digital payment offerings for all customers, including its 500+ million customer base.

    Empowering Users with Flipkart UPI

    With Flipkart UPI, users can now set up their own UPI handle for online and offline merchant transactions within and outside of the Flipkart marketplace. For a distinctive customer experience, loyalty features such as Supercoins, cashback, brand vouchers, milestone benefits, and more will be offered post the UPI launch.

    Versatile Usage with Flipkart UPI

    On the Flipkart app, Flipkart UPI can be used to pay for any product or service, including e-commerce transactions, Scan and Pay to UPI ID, and recharges and bill payments, the company said in a statement.

    Strategic Partnership: Flipkart and Axis Bank

    In its first phase, Flipkart has partnered with Axis Bank, wherein users can register for UPI with the @fkaxis handle for their digital transactions using the Flipkart app. (Also Read: Infinix Smart 8 Plus Launched With AI Camera Setup In India; Check Price, Specs And Colour Options)

    Vision of Flipkart UPI

    “Recognizing the dynamic digital landscape, the launch of Flipkart UPI seamlessly merges the convenience and cost-effectiveness of UPI with the trusted efficiency customers expect from us,” said Dheeraj Aneja, Senior Vice President – Fintech and Payments Group at Flipkart. “At Flipkart, we are committed to delivering the best-in-class commerce experience to customers by offering safe and convenient payment options along with a wide array of rewards and benefits such as Supercoins, Brand Vouchers, and others.”

    Driving Digital Empowerment

    According to Aneja, “Flipkart UPI underscores our dedication to shaping a digitally-empowered society and reaffirms our role as a leading catalyst in India’s digital evolution.”

    Enhancing Payment Efficiency

    It also introduces one-click and quick functionalities for recharges and bill payments, enhancing overall payment efficiency for the users. With the tagline, ‘India’s Most Rewarding UPI,’ the offering aims to provide customers an intuitive, safe, and convenient digital payment experience through its integrated checkout funnel and a slew of delightful incentives, including the benefit of instant refunds, according to the company.

    UPI’s Growing Landscape

    In 2023, UPI processed over 117 billion transactions worth Rs 182.84 trillion, showcasing a dynamic landscape with participation from banks, payment service providers, and fintech companies, according to reports. (Also Read: Ashwini Vaishnaw’s BIG Statement On Google-Indian Startups Row, Says..)

    Continued Partnership Growth

    “We continue to scale our growth in UPI with partnerships and innovations. Our partnership with Flipkart has come a long way from launching one of India’s most successful co-branded credit cards to now launching the Flipkart UPI service,” said Sanjeev Moghe, President and Head – Cards & Payments, Axis Bank.

    Seamless Transaction Experience

    “Customers can now register for UPI with @fkaxis handle and can do all fund transfers and checkout payments using the Flipkart app. This solution is cloud-hosted and hence provides one of the most stable and scalable UPI platforms for customers,” he added.

  • On BJP’s White Paper, Congress Mulling ‘Black Paper’ Move Against Modi Government |

    The Congress party is planning to bring a ‘Black Paper’ against the BJP government after the ruling party said it will present a ‘White Paper’ on earlier UPA government’s economic mismanagement. Congress president Mallikarjun Kharge is likely to present the report. As the government plans to present the white paper, the ongoing budget session of the Lok Sabha has been extended until Saturday, February 10. There will be no Question Hour session on the extended date. As per a Lok Sabha Secretariat notification issued on Wednesday, extension of the current session of Lok Sabha, as announced by the Chair today (7.2.2024) and agreed to by the House, the current session of Lok Sabha has been extended up to Saturday, February 10, 2024, in order to provide sufficient time for completion of essential items of Government Business.

    The BJP has planned to present the White Paper which will show the mismanagement of the economy by the earlier UPA government and the steps taken by the Modi government to improve the situation. It may be notable that under PM Narendra Modi, the Indian economy has become the fifth largest in the world from 11th in 2014.

    The last session before Lok Sabha polls expected to be held in April-May this year was started with the address by President Droupadi Murmu to the joint sitting of two Houses on January 31. It was earlier to be concluded on February 9.

    Adhir Ranjan Chowdhury, the Leader of Congress in Lok Sabha, stated that his party is prepared to address any papers the government brings to the House. “Narendra Modi has Congressphobia. We are ready to fight. The government can bring a ‘White Paper’, Red paper, black paper, we have no problem. However, Mehul Choksi’s papers should also be presented to the House,” Chowdhury told ANI.

    Welcoming the idea of bringing a ‘White Paper’ to the House, BJP Lok Sabha MP Rajiv Pratap Rudy said that the document is a much-awaited call and should be brought so that the public becomes aware of the corruption that occurred during the UPA tenure before 2014. “The government has passed the finance bill and the interim budget. If I recall correctly, the PM mentioned in his speech that they would present a White Paper on the mess that prevailed prior to 2014. I think it is likely to be listed tomorrow. It is a much-awaited call,” said Rudy.

  • Inflation cools to 5%, IIP at 14-month high

    Express News Service

    NEW DELHI:  Two sets of data released on Thursday brought cheers to the Indian economy. Consumer price index (CPI)-based inflation in September dropped to a three-month low of 5.02% while the country’s industrial production growth, measured by the index of industrial production (IIP), zoomed to a 14-month high of 10.3% in August. 

    The moderation in retail inflation is mainly because of a dip in food and fuel prices, while the robust IIP numbers are attributed to good performance of manufacturing, mining and power sectors. Food and fuel prices have 50% weightage in the inflation index.

    Vegetable prices fell 19% month-on-month in September; consumer food prices index showed a 2.18% drop. However, compared with September 2022, food inflation is still higher at 6.3% with big spikes in pulse and spices prices.

    “Inflation pressure in cereals, pulses, and milk has been persistent. The key risk remains from food inflation due to the uneven monsoon performance,” said Gaura Sengupta, economist at  IDFC First Bank.

    Fine print

    Lower veg, LPG  prices cooled CPI
    Inflation still above RBI’s target of 4%
    Core inflation (excl food, fuel) dipped to 4.7%
    Follow The New Indian Express channel on WhatsApp

    NEW DELHI:  Two sets of data released on Thursday brought cheers to the Indian economy. Consumer price index (CPI)-based inflation in September dropped to a three-month low of 5.02% while the country’s industrial production growth, measured by the index of industrial production (IIP), zoomed to a 14-month high of 10.3% in August. 

    The moderation in retail inflation is mainly because of a dip in food and fuel prices, while the robust IIP numbers are attributed to good performance of manufacturing, mining and power sectors. Food and fuel prices have 50% weightage in the inflation index.

    Vegetable prices fell 19% month-on-month in September; consumer food prices index showed a 2.18% drop. However, compared with September 2022, food inflation is still higher at 6.3% with big spikes in pulse and spices prices.googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });

    “Inflation pressure in cereals, pulses, and milk has been persistent. The key risk remains from food inflation due to the uneven monsoon performance,” said Gaura Sengupta, economist at  IDFC First Bank.

    Fine print

    Lower veg, LPG  prices cooled CPI
    Inflation still above RBI’s target of 4%
    Core inflation (excl food, fuel) dipped to 4.7%
    Follow The New Indian Express channel on WhatsApp

  • 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])

  • PM terms Union Budget ‘historic’, says it gives priority to deprived

    By PTI

    NEW DELHI: Terming the Union budget “historic”, Prime Minister Narendra Modi on Wednesday said the first budget in ‘Amrit Kaal’ has established a strong base to fulfil the resolve of a developed India and dreams of the aspirational society, including the poor and the middle class.

    Presenting the Union Budget, Finance Minister Nirmala Sitharaman on Wednesday raised the personal income tax rebate limit, doled out sops on small savings and announced one of the biggest hikes in capital spending in the past decade.

    In his first reaction to the Budget for the 2023-24 fiscal, Modi said in order to empower the middle class, the government has taken many significant decisions in the past years that have ensured ease of living.

    The prime minister underlined the potential of the middle class in realising the dreams of 2047.

    Modi also highlighted the reduction in tax rates as well as the simplification, transparency and speeding up of processes.

    “Our government that always stood with the middle class has given huge tax relief to them,” Modi said.

    The prime minister said the first budget in ‘Amrit Kaal’ has established a strong base to fulfil the aspirations and resolve of a developed India.

    He said this budget gives priority to the deprived and strives to fulfil the dreams of the aspirational society — the poor, villages and the middle class.

    The prime minister congratulated Sitharaman and her team for a “historic” budget.

    Modi called the traditional artisans such as carpenters, iron smiths, goldsmiths, potters, sculptors and many others as the creators of the nation.

    ALSO READ | Budget is ‘Anti-people’, ‘Amrit Kaal for PM Modi, not for people’: Oppn 

    “For the first time, the country has come up with many schemes as a tribute to the hard work and creation of these people. Arrangements have been made for training, credit and market support to them. PM Vishwakarma Kaushal Samman, that is, PM ViKaS will bring a big change in the lives of crores of ‘Vishwakarmas’,” Modi said.

    He said for the women living in the cities to villages, employed to homemakers, the government has taken significant steps such as Jal Jeevan Mission, Ujjwala Yojna and PM Awas Yojana etc., that will further empower the welfare of women.

    He emphasized that miracles can be performed if women’s self-help groups, which is a sector with extreme potential, are further strengthened.

    Underlining that a new dimension has been added to women’s self-help groups in the new budget with the introduction of a special savings scheme, the prime minister said it will strengthen women especially the homemaker from common families.

    This budget, the prime minister said, will make cooperatives a fulcrum of the development of the rural economy. The government, he said, has come up with the world’s largest food storage scheme in the cooperative sector.

    An ambitious scheme to form new primary co-operatives has also been announced in the budget, Modi said. This will expand the area of milk and fish production along with farming, and farmers, animal husbandry and fishermen will get better prices for their produce, he said.

    Emphasizing the need to replicate the success of digital payments in the agriculture sector, the prime minister said this budget comes with a big plan for digital agriculture infrastructure.

    Noting that the world is celebrating the International Year of Millets, Modi said there are many types of millets in India with multiple names. The prime minister said special recognition of millet is necessary when it is reaching households all over the world.

    “This superfood has been given a new identity of ‘Shree-Anna’, Modi said, as he underlined that small farmers and tribal farmers of the country will get economic support.

    ALSO READ | Budget 2023: What’s costlier, what’s cheaper

    This budget, Modi said, will give an unprecedented expansion to green growth, green economy, green infrastructure, and green jobs, for a sustainable future.

    “In the budget, we have laid a lot of emphasis on technology and the new economy. Aspirational India of today wants modern infrastructure in every field like road, rail, metro, port, and waterways. Compared to 2014, investment in infrastructure has increased by more than 400 per cent,” Modi said.

    The prime minister said the unprecedented investment of Rs 10 lakh crores in infrastructure will give new energy and speed to India’s development.

    He asserted that these investments will create new employment opportunities for the youth, thereby providing new income opportunities to a large section of the population.

    In his remarks, the prime minister also touched upon the ease of doing business which is taken forward through the campaign of credit support and reforms for industries. “An additional loan guarantee of Rs 2 lakh crore has been arranged for MSMEs,” he said, noting that increasing the limit of presumptive tax will help MSMEs to grow.

    He also said a new arrangement has been made for timely payments by big companies to MSMEs.

    “I once again congratulate Nirmala ji and her entire team for this all-encompassing budget that would give speed to building a developed India,” Modi said.

    “In 2047, we will make a prosperous India, a capable India, a prosperous India in every way. Let us take this journey forward,” he added.

    NEW DELHI: Terming the Union budget “historic”, Prime Minister Narendra Modi on Wednesday said the first budget in ‘Amrit Kaal’ has established a strong base to fulfil the resolve of a developed India and dreams of the aspirational society, including the poor and the middle class.

    Presenting the Union Budget, Finance Minister Nirmala Sitharaman on Wednesday raised the personal income tax rebate limit, doled out sops on small savings and announced one of the biggest hikes in capital spending in the past decade.

    In his first reaction to the Budget for the 2023-24 fiscal, Modi said in order to empower the middle class, the government has taken many significant decisions in the past years that have ensured ease of living.

    The prime minister underlined the potential of the middle class in realising the dreams of 2047.

    Modi also highlighted the reduction in tax rates as well as the simplification, transparency and speeding up of processes.

    “Our government that always stood with the middle class has given huge tax relief to them,” Modi said.

    The prime minister said the first budget in ‘Amrit Kaal’ has established a strong base to fulfil the aspirations and resolve of a developed India.

    He said this budget gives priority to the deprived and strives to fulfil the dreams of the aspirational society — the poor, villages and the middle class.

    The prime minister congratulated Sitharaman and her team for a “historic” budget.

    Modi called the traditional artisans such as carpenters, iron smiths, goldsmiths, potters, sculptors and many others as the creators of the nation.

    ALSO READ | Budget is ‘Anti-people’, ‘Amrit Kaal for PM Modi, not for people’: Oppn 

    “For the first time, the country has come up with many schemes as a tribute to the hard work and creation of these people. Arrangements have been made for training, credit and market support to them. PM Vishwakarma Kaushal Samman, that is, PM ViKaS will bring a big change in the lives of crores of ‘Vishwakarmas’,” Modi said.

    He said for the women living in the cities to villages, employed to homemakers, the government has taken significant steps such as Jal Jeevan Mission, Ujjwala Yojna and PM Awas Yojana etc., that will further empower the welfare of women.

    He emphasized that miracles can be performed if women’s self-help groups, which is a sector with extreme potential, are further strengthened.

    Underlining that a new dimension has been added to women’s self-help groups in the new budget with the introduction of a special savings scheme, the prime minister said it will strengthen women especially the homemaker from common families.

    This budget, the prime minister said, will make cooperatives a fulcrum of the development of the rural economy. The government, he said, has come up with the world’s largest food storage scheme in the cooperative sector.

    An ambitious scheme to form new primary co-operatives has also been announced in the budget, Modi said. This will expand the area of milk and fish production along with farming, and farmers, animal husbandry and fishermen will get better prices for their produce, he said.

    Emphasizing the need to replicate the success of digital payments in the agriculture sector, the prime minister said this budget comes with a big plan for digital agriculture infrastructure.

    Noting that the world is celebrating the International Year of Millets, Modi said there are many types of millets in India with multiple names. The prime minister said special recognition of millet is necessary when it is reaching households all over the world.

    “This superfood has been given a new identity of ‘Shree-Anna’, Modi said, as he underlined that small farmers and tribal farmers of the country will get economic support.

    ALSO READ | Budget 2023: What’s costlier, what’s cheaper

    This budget, Modi said, will give an unprecedented expansion to green growth, green economy, green infrastructure, and green jobs, for a sustainable future.

    “In the budget, we have laid a lot of emphasis on technology and the new economy. Aspirational India of today wants modern infrastructure in every field like road, rail, metro, port, and waterways. Compared to 2014, investment in infrastructure has increased by more than 400 per cent,” Modi said.

    The prime minister said the unprecedented investment of Rs 10 lakh crores in infrastructure will give new energy and speed to India’s development.

    He asserted that these investments will create new employment opportunities for the youth, thereby providing new income opportunities to a large section of the population.

    In his remarks, the prime minister also touched upon the ease of doing business which is taken forward through the campaign of credit support and reforms for industries. “An additional loan guarantee of Rs 2 lakh crore has been arranged for MSMEs,” he said, noting that increasing the limit of presumptive tax will help MSMEs to grow.

    He also said a new arrangement has been made for timely payments by big companies to MSMEs.

    “I once again congratulate Nirmala ji and her entire team for this all-encompassing budget that would give speed to building a developed India,” Modi said.

    “In 2047, we will make a prosperous India, a capable India, a prosperous India in every way. Let us take this journey forward,” he added.

  • Cryptocurrencies can lead to dollarisation of economy: RBI officials to parliamentary panel

    By PTI

    NEW DELHI: Cryptocurrencies can lead to “dollarisation” of a part of the economy which would be against India’s sovereign interest, top officials of the RBI have told a parliamentary panel, according to sources.

    Briefing the Parliamentary Standing Committee on Finance chaired by former minister of state for finance Jayant Sinha, top officials of the RBI, including its governor Shaktikanta Das, clearly expressed their apprehensions about cryptocurrencies and said these pose challenges to the stability of the financial system, sources told PTI.

    “It will seriously undermine the RBI’s capacity to determine monetary policy and regulate the monetary system of the country,” a member of the panel quoted RBI officials as saying.

    Pointing out that cryptocurrencies have the potential to be a medium of exchange and replace the rupee in financial transactions both domestic and cross border, central bank officials said these currencies “can replace a part of monetary system it will also undermine the RBI’s capacity to regulate the flow of money in the system”.

    Cautioning that besides being used for terror financing, money laundering and drug trafficking, cryptos pose a bigger threat to the stability of the financial system of the country, the central bank officials said.

    “Almost all cryptocurrencies are dollar-denominated and issued by foreign private entities, it may eventually lead to dollarization of a part of our economy which will be against the country’s sovereign interest,” the officials told the members.

    Discussing the impacts of cryptocurrency, the RBI officials said it will also have a negative impact on the banking system as these being attractive assets people may invest their hard-earned savings in these currencies which may result in banks having lesser resources to lend.

    In Union Budget presented earlier this year, Finance Minister Nirmala Sitharaman introduced a tax on trading in cryptocurrencies and related assets like non-fungible tokens (NFTs) at a flat 30 per cent and one per cent of tax will be deducted at source (TDS) when any such transaction takes place.

    There are an estimated 15 million to 20 million crypto investors in India, with total crypto holdings of around USD 5.34 billion.

    No official data is available on the size of the Indian crypto market.

    The Sinha-led panel which has former GST council head Sushil Modi, former Union Ministers Manish Tewari and Saugata Roy as its members have been holding comprehensive deliberations with financial regulators.

    As statutory bodies, both RBI and SEBI report to Parliament and the panel has the parliamentary responsibility to call upon the officials of these regulators over the financial and economic issues of the country.

    Sinha, a pass out of IIT Delhi and MBA from Harvard Business School, was the Minister of State for Finance during the previous Modi government.

  • Gati for Indian Economy’s Growth through Gati Shakti

    Online MI

    Union budget is much awaited policy announcement in our country every year. Not only policy makers and economist but even common man also takes a lot of interest in the budget. This is because apart from its impact on the major economic activities like production, distribution consumption, saving, investment etc., it has an impact on the family budget also. Various stakeholders have different expectations from the budget. Based on the budget proposal each one evaluates the budget in their own way.

    Evaluation of the budget is done on the basis of following parameters:

    Growth measures
    Stability measures
    Reform measures
    Fiscal management
    The budget of 2022-23 is to be looked at in the light of the prevailing pandemic conditions as well as assembly election in five states.There was speculation that the current budget will be election oriented, but the Finance Minister has proved it wrong. The current budget is growth oriented with a medium to long term strategy for economic development of India. Instead of giving direct benefit to the people, the budget has measures to give benefits through development. The proposals in the current budget are on major thrust areas like PM Gati Shakti, Inclusive Development, Productivity Enhancement and Financing Investments.

    Some of the important announcements in the budget are clearly for achieving fast economic growth. Emphasis on infrastructure development by allocating funds to the extent of nearly 4% of GDP is definitely a measure for growth. Infrastructure is indispensable for economic growth has been proved in many countries of the world. China is the best example of making available world-class infrastructure and thereby leading to growth.

    Another important announcement for growth is the proposed capital expenditure to the extent of INR 7.50 lakh crores. This capital expenditure by the Government will lead to increase in aggregate demand and will give boost to private sector investment also. Measures of linking the rural and urban areas through transport and communication facility is a step in the direction of growth. Two major growth engine of India, agriculture and MSME sector related announcements are also measures for growth. Though the farm sector is not contributing substantially to our GDP, the percentage of total population depending on this sector is large and hence, measures to put the income in the hands of farmers by crop procurements and giving MSP will lead to increase in the demand by rural population. Such rise in demand for goods and services will be an incentive for industries to make fresh investments and it will contribute towards arise in the industrial output and GDP growth. Along with measures to increase income of the farmers, use of technology for like digitization of records relating to crop output and land records is a step in the direction of increasing productivity and growth.

    Source: Envato Elements

    MSMEs are playing an important role in Indian economy in terms of industrial output, employment and exports. Proposal to continue the credit guarantee scheme for MSME sector and extension of tax concession for startups and new manufacturing units is also a growth-oriented measure.

    If the nation has to move in the direction of growth, transport is a critical infrastructure. In the current budget, PM Gati Shakti measures are going to contribute for transport availability for goods and people. Under the Gati Shakti measures, national highway construction of 25,000 kms, 400 new trains in next three years, development of ports, airports, mass transport measures will lead to reduction in logistics problems faced by industries and will help in logistics cost reduction and increasing productivity of industry. Gati Shakti will lead to connectivity between different parts of the country and help in balance regional development.

    Development of financial sector of a country also contributes towards the economic growth. In the current budget, some of the major policy announcements will strengthen the financial sector and financial inclusion. Decision of post offices to be brought under core banking system will help the country to reach out to the masses in remote areas and enhance financial inclusion. Starting digital banks for financial inclusion will make the system more transparent, accountable and rapid. Our banking system is facing severe problem of non-performing assets (NPA). To manage this problem, Insolvency and Bankruptcy law was introduced in 2016. Initially it appeared that it will be a game changer in NPA management but few limitations in the law were discovered. An announcement is made in this budget to make appropriate changes to that law. This is a very good step for NPA management and making the financial conditions of the banks strong.

    Measure to raise the revenue to meet proposed rising expenditure, instead of making major changes in the direct tax, Finance Minister resorted to new avenue by imposing tax on the income from digital assets. This step is not only a new source of revenue but also check the trading, speculating activities in digital assets.

    Source: Envato Elements

    On fiscal management front, the performance of the Government is good for 2021-22 by keeping the fiscal deficit within limit of slightly higher than budgeted. For 2021-22 the budgeted fiscal deficit was 6.8% of GDP and the revised estimate is 6.9% of GDP. Fiscal deficit is estimated at 6.4% of GDP for 2022-23, however the concern is quality of fiscal deficit. In 2022-23 if one looks at the revenue deficit to fiscal deficit ratio, it is 59.60%. What it means is that, of the total borrowings which the Government will raise, nearly 60 % of the funds will be utilized to meet revenue expenditure. This ratio needs to be controlled. The budgeted borrowing by the Government in 2022-23 is around INR 15 lakh crores. In the light of fear of rising inflation at global level, borrowing to this extent will certainly lead to inflation. Rising commodity prices of oil, gas and coal, less private investment due to lower consumer demand and pandemic uncertainly are the few other challenges before the Government.

    Source: Envato Elements

    In spite of these challenges, the Finance Minister deserves applause for presenting a budget with a highly balanced approach with the vision and focus of putting India on high growth path. Economic growth and its equitable distribution is the only solution to ensure welfare and wellbeing of the people. As Adam Smit said “No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable”. The measures proposed in the current budget are for the masses to improve their economic conditions.

    – Dr. Pankaj Trivedi

    The author is a Professor and Area Chairperson – Finance & Law department at K J Somaiya Institute of Management, Dean – Faculty of Commerce and Business Studies at Somaiya Vidyavihar University

    Disclaimer: This content is distributed by K J Somaiya Institute of Management. No TNIE Group journalist is involved in the creation of this content.  

  • Budget stayed away from tax incentives to individuals for investing into housing

    By Express News Service

    The Indian economy is resilient and has rebound and grown on the basis of strong fundamentals. The economy has sustained multiple shocks of Demonetisation, GST, RERA and credit crisis of NBFCs. Humanity is currently facing a pandemic which has resulted in unemployment, income losses, business model dislocation and the biggest of all, an uneven economic recovery.

    The ‘K’ shaped economic recovery created a wide divide between the bottom and the top of the income pyramid. Our biggest impediment to growth is rising inflation, interest rates and unsustainable oil prices, and hence the budget blueprint is crucial.

    This budget tried laying the path for next 25 years, focusing immediately through the PM Gati Shakti with seven engines — infra push, multimodal transportation, logistic parks, partnership with state governments for urban planning and development etc. Surely it will help the economic recovery. A critical sector like real estate will see positive impact in medium to long term. Infrastructure status to data centres and energy storage systems including charging infra etc is a step in right direction. This will attract lots of global capital. 

    The thrust on digital, fintech, healthtech, edutech, clean teach and journey towards Prop tech have been initiated, but the devil lies in the details. Real estate needs more ‘end to end’ digitisation. This brings in transparency, disclosures and governance with ease of acquiring and selling homes. Also announced is the intention to bring in ‘One nation one registration software’ which is a most interesting and much required reform.

    This budget stayed away from tax incentives to individuals for investing into housing and is surely a missed opportunity. Finally, this is a growth-oriented budget with focus on government capex and employment generation through revival in infra-related sectors. This may help continue momentum in real estate if execution of earlier reforms and new announcements budget are implemented seamlessly.

     Sunil Rohokale MD & CEO of ASK Group

  • Indian economy fastest in world to come out of COVID pandemic impact: Home Minister Amit Shah

    By PTI

    NEW DELHI: The Indian economy is the fastest in the world to come out of the impact of the coronavirus pandemic because of policy decisions taken by the Modi government, Home Minister Amit Shah said on Saturday.

    Delivering the keynote address at the Hindustan Times Leadership Summit here, Shah said Prime Minister Narendra Modi had envisioned that India would have great opportunities in the post-corona world.

    He visualised that economic slump would affect the globe but the policy decisions by the government ensured that the global economic slowdown did not touch the country, Shah said.

    “It is the result of policy decisions of the Modi government that the Indian economy is the fastest to come out of corona impact across the globe,” he said.

    On the new coronavirus variant Omicron, he said that the government is keeping a close watch on related developments.

    Shah said the fiscal deficit remained in discipline in spite of the fact that the government committed Rs 15 lakh crore to be invested in the next three years to improve health infrastructure, provided free ration to 80 crore people and free vaccination to 130 crore people.

    “I am sure that country will find its place in the global order and the dream of Prime Minister Modi to have a five trillion dollar economy will come true,” he said.

    The home minister said the country has seen governments of the Congress and the NDA at the Centre and in states and that of socialists and communists in states, now experts on the economy must give a comparison by data analysis as to which government performed better in ushering development.

    “I believe that it is the duty of economic pandits that they bring forth this comparison before people so that they can decide at the time of elections. The result may not be according to your beliefs but this much transparency should be there,” he said.

    After the BJP came into power in 2014, Shah said, 80 crore people were brought into mainstream by opening their bank accounts and providing other facilities.

    He said the Modi government has shown humane face of the GDP.

    Elaborating on the point, Shah asked economists wether the supply of drinking water and cooking gas to every household and building of 10 crore toilets in the country will increase the GDP or not.

    Such policies not only help in the growth of GDP but also solve the problems faced by the people, he said.

    Shah said with steps such as direct benefit transfer, poverty alleviation, rural electrification and other programmes, PM Modi ensured the participation of everyone in the country’s progress.

    He said when the coronavirus struck, the World was apprehensive how a large country like India with such diversity, poor health infrastructure will cope with it.

    “People who ridiculed lamp lighting, bell ringing, masks, are now silent because the corona war was fought by 130 crore people along with state and central governments unlike the rest of the world where only governments were tackling the pandemic.

    When history is written there will be no other leader in the world who managed to convince 130 crore people to remain indoors just by self-discipline,” he said.

    “After Lal Bahadur Shastri, I have not seen the country paying so much respect to the words of any leader as it did to Narendra Modi,” Shah said.

    In the second wave when the oxygen emergency came up there was chaos for six-seven days, but the prime minister successfully faced the challenge by patiently arranging all available resources from across the globe, optimal use of domestic resources and communicating with district levels, he said.

    “The production capacity of oxygen in the country was 1,500 MT per day but our requirement was 15,000 MT per day. Within 10 days production was increased to 10 times under Prime Minister Narendra Modi,” he said.

    In order to boost economic activities after the pandemic, Modi made policy reforms to improve manufacturing in the country, increase investment for factories, and to change the investment climate.

    He said reforms were brought in the mining sector to encourage private investments, difference between captive and non-captive mines was abolished, mineral index development was started, stamp duty for mining lease was rationalized and commercial production in coal sector was cleared.

    “This opened a lot of investment opportunities in the coal and mining sector. Investment is coming, production has increased. When the world was facing a coal shortage and people were writing that the country may plunge into darkness but nothing of that sort happened because we increased coal production in time,” he said.

    He highlighted the changes in policies to give boost to the civil aviation sector, setting up of project development cells in every ministry, dynamic ranking system to spur healthy competition among states to attract investments, the schemes which have brought in Rs 2.25 lakh crore investment in the country.