In early November, I wrote a piece suggesting that the Indian economy was functioning as expected: Muddling along. It rarely falls into a full-blown recession but it also struggles to achieve sustained acceleration. This observation was immediately illustrated when India's GDP (gross domestic product) growth, after reaching 8.2 per cent in FY24, fell to 6.6 per cent in Q1 (the first quarter) of FY25 and then further to 5.4 per cent in Q2. Growth is unlikely to return to 8 per cent anytime soon, but it also seems unlikely to dip below 5 per cent. If the original "Hindu rate of growth" was 3.5 per cent (the average annual GDP growth between 1950 and 1980), the new Hindu rate of growth is 5.5 per cent. The official reasons for the economic slowdown in the last quarter are varied: One, the Reserve Bank of India's restrictive monetary policy; two, lower government capital expenditure (capex) due to the ongoing general and state elections; and three, a slowdown in private-sector capex due to domestic political factors, global uncertainties, excess capacity, and fears of dumping in India.
Denne historien er fra December 30, 2024-utgaven av Business Standard.
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Denne historien er fra December 30, 2024-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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NPS FUND RETURNS Equity-debt allocation: Let risk appetite, not past-yr returns, decide
Funds under the National Pension System (NPS) have delivered strong returns over the past year across all asset classes, exceeding their longer-term averages.
Index AUM criteria to limit MF Lite's ambit
The strict product launch conditions under the MF Lite framework leaves little room for innovation by asset managers opting for this newly introduced route to enter the mutual fund (MF) business, experts said.
Mumbai realty firms to build on demand, robust pipeline
The outlook for Mumbai-based real estate players remains strong given the launch pipeline and demand outlook reflected in the registration data for December.
Mkts open in green for 7th year running
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Sebi simplifies disclosure norms for listed entities with integrated filing
The Securities and Exchange Board of India (Sebi) has made integrated filing for Listing Obligations and Disclosure Requirements (LODR) effective for all disclosures starting with the quarter ending December 2024.
Stock Consolidates, Outlook Bright
With just two trading sessions to go before the ITC-ITC Hotels demerger record date, shares of ITC continue to consolidate in a thin range of ₹460-485 in an otherwise volatile equity market.
NSE enforces mechanism for brokers to curb market abuse
The National Stock Exchange (NSE) has issued a guidance note for stock brokers to ensure prevention and detection of fraud or market abuse.
ITC Hotels to go the Jio Fin way
ITC's move to hive off its hotel business will have implications for passive funds and exchange traded funds (ETFs) similar to that seen during the Reliance Industries-Jio Financial demerger.
Air India Becomes 1st Indian Airline to Offer Wi-Fi on Domestic Flights
The in-flight Wi-Fi will allow flyers to connect multiple devices simultaneously when above 10,000 feet in the air
2024 Warmest Year in India Since 1901: IMD
The year 2024 was the warmest on record in India since 1901, with the average minimum temperature settling 0.90 degrees Celsius above the long-period average, the India Meteorological Department (IMD) said on Wednesday.
