BUSINESS ECONOMICS - August 1 - 31, 2023

In this issue

Amidst global uncertainties and a faltering global
economic growth prospect, the Indian economy
continues to display robust growth momentum, supported
by strong macroeconomic fundamentals. The Reserve Bank
of India has projected the real GDP growth at 6.5% for
2023-24 over and above the 7.2% growth it achieved last
year. The International Monetary Fund has projected India’s
GDP growth at 5.9% for 2023-24 while the World Bank has
projected it at 6.3%.
The UN report ‘The World Economic Situation and
Prospects as of mid-2023’ published last May was even
more optimistic about India’s growth prospects. India's GDP
is expected to grow by 6.7% in the calendar year 2024,
supported by resilient domestic demand, according to the
report which suggested that higher interest rates and weaker
external demand will continue to weigh on investment and
exports this year for the country.

A New Trade Regime: Russia-China Cooperation

The ongoing conflict between Ukraine and Russia has set in motion a significant shift in the global trade landscape, with Russia and China forging a stronger economic alliance. This burgeoning trade relationship between Russia and China has not only altered global political dynamics but also impacted trade relations between China and other countries.

2 mins

AU Small Finance Bank

Founded in the year 1996, an Indian Small Finance Bank with its headquarters in Jaipur is called AU Small Finance Bank Limited. In 2017, it changed its name from AU Financiers (India) Ltd, a vehicle finance firm, to AU Small Finance Bank.

4 mins

Internationalisation of INR: RBI's Efforts to Strengthen Domestic Currency and Exports

The Reserve Bank of India (RBI) has taken significant strides this year by announcing the internationalization of the Indian rupee (INR). Internationalization implies widespread acceptance of the INR globally as a medium of exchange, allowing India to use INR for imports. This move by the RBI enables settling payments for international trade in INR, invoicing, and payments, which is part of a gradual de-dollarization plan.

2 mins

India needs to elevate the penetration and density of insurance

The insurance sector holds significant importance in a modern economy and its development is assessed through two key indicators: insurance penetration and insurance density. Insurance penetration is the percentage of total insurance paid in a year relative to the GDP of that year, while insurance density refers to the ratio of premium to population, usually measured in US dollars for international comparisons. Unfortunately, India has been lagging behind the global average in both these aspects.

3 mins

US dollar losing its dominance

Contrary to Western calculations, recent anti-Russian economic sanctions have turned into yet another example of a major financial decision going disastrously wrong.

2 mins

INDIAN BANKS EARN RECORD PROFIT, CUT NPA RATIO TO A DECADAL LOW, IMPROVE ASSET QUALITY AMIDST GLOBAL FINANCIAL TURMOIL

Amidst global uncertainties and a faltering global economic growth prospect, the Indian economy continues to display robust growth momentum, supported by strong macroeconomic fundamentals. The Reserve Bank of India has projected the real GDP growth at 6.5% for 2023-24 over and above the 7.2% growth it achieved last year. The International Monetary Fund has projected India’s GDP growth at 5.9% for 2023-24 while the World Bank has projected it at 6.3%.

7 mins

Unlocking energy storage

Sheru, an energy storage start-up based in New Delhi, India, offers cloud storage solutions by aggregating idle battery capacity to create a virtual energy storage platform. Notably, Sheru is the world's first company to integrate V2G technology with battery swapping, synergizing two complementary systems. In an interview with BE's Saptarshi Deb, Ankit Mittal, the Co-Founder and CEO of Sheru, sheds light on the company's journey and its business model.

3 mins

A Mall for handicrafts

Involving an initial expenditure of ₹159 crores, the proposed mall at Nonadanga at Adarsha Nagar off Eastern Metropolitan bypass is a brainchild of Mamata Banerjee headed Trinamool Congress state government.

1 min

Rural Auto Market Surges to New Heights

India’s rural markets, which had remained stagnant for the previous three years due to the economic effects of the pandemic, are now gaining momentum and are expected to drive demand for automobiles, motorcycles, and tractors as the nation enters the holiday shopping season later this quarter. Surprisingly, the rural auto market has emerged as a success story, defying initial predictions of economic downturns in the aftermath of the global pandemic. While urban areas initially experienced a slump in automobile sales due to pandemic-related restrictions and remote work arrangements, rural communities have shown remarkable resilience, driving the demand for vehicles to unprecedented levels.

2 mins

Pune's real estate market is thriving

The Goel Ganga Group, a prominent player in Pune's real estate sector, has over 40 years of experience in the industry. They have ambitious plans to expand to other cities in Maharashtra, including Nagpur and Mumbai. BE's Saptarshi Deb interviewed Atul Goel, Managing Director of the Goel Ganga Group, to discuss the company's vision and mission.

3 mins

Unravelling the Surge: Understanding the Hike in Tomato Prices in India

The recent skyrocketing price hike of tomato in India left the countrymen and economy in shock. This surge has impacted households, restaurants, and food industries across the country. In this article, we talk about the whys and wherefores behind the recent hike in prices and its potential inferences on the economy and consumers.

2 mins

Review Of Indian Nationalism

Religious mechanisms have contributed predominantly in setting, guiding, and spreading values, living style and culture along with the view and way of life. These have also remained the foremost in identifying national standards and people of a nation. They are still significant in this regard.

5 mins

Cockroach Theory

A beautiful speech by Sundar Pichai - an IIT-MIT Alumnus and Global Head Google Chrome:

1 min

The Basics Of The Sanatana Dharma

The firm belief in the truth of inevitable interconnectedness of all movable-immovable and visible-invisible in the universe, thus Universal Unity, and the acceptance of the reality of the existence of the Unity-Creating Power or Authority, are the two foremost basics of the Sanatana Dharma.

6 mins

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Business Economics, following its credo of “exclusive and comprehensive” coverage, has been one of India’s most popular business magazines. What started as a 12-page tabloid in 1995 has become a magazine with global reach and coverage. 

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