Is private investment expected to rise? | Explained
1 month, 2 weeks ago

Is private investment expected to rise? | Explained

The Hindu  

The story so far: With the government providing a tax stimulus through income tax breaks to boost consumer spending and the RBI cutting interest rates for the first time in nearly five years, Finance Minister Nirmala Sitharaman on Saturday said she was quite optimistic of the tide turning on private investments in the months to come. So, there is a strong positive relationship between bank credit growth and the level of private investment, with heathy bank credit growth driving private sector investment higher. Given this backdrop, making incomes up to ₹12 lakh tax-free is seen as an attempt to put more money in the hands of individuals to boost consumer spending and spur private investment. Interestingly, from around the time when private investment hit a peak in 2011-12, private consumer spending has actually risen, not fallen. This suggests that the negative relationship between private investment and consumer spending could simply be due to the fact that the money in an economy that is not invested is spent on consumption, and vice-versa.

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History of this topic

Reverse capex drop, private finance stall for smooth growth
2 weeks, 5 days ago

Reverse capex drop, private finance stall for smooth growth

New Indian Express  

Private sector investments remain the missing link in India’s growth. Latest estimates show private sector capital expenditure fell to a three-year low of 11.2 percent in 2023-24, below the pre-Covid average of 11.8 percent. Between 2015 and 2020, investments stagnated at 29.9 percent owing to delays in project execution, the twin-balance problem and a high percentage of bad loans among …

Congress says IMF report underscores ‘tepid’ private investment in India; urges Modi government to boost mass consumption, rationalise trade policy
2 weeks, 6 days ago

Congress says IMF report underscores ‘tepid’ private investment in India; urges Modi government to boost mass consumption, rationalise trade policy

The Hindu  

The Congress on Thursday said that a report by the International Monetary Fund had flagged the issue of “tepid” private investment growth in India. In a statement, Congress general secretary Jairam Ramesh said the IMF had devoted an entire section to ‘Reigniting Private Investment in India’ in its just-released annual ‘India Article IV Consultation Report’. “Notably, the situation is only …

RBI highlights moderation in personal loan expansion, now at 14.2% in January
3 weeks, 1 day ago

RBI highlights moderation in personal loan expansion, now at 14.2% in January

Live Mint  

The latest data presented by the Reserve Bank of India show easing of personal loan expansion in India's financial sector. Personal loan expansion year-to-year was 14.2% in the fortnight as of January 24, 2025 as detailed in a press release by RBI on Feb 28, 2025. On a year-on-year basis, non-food bank credit as of the fortnight ended January 24, …

India to remain fastest growing major economy with 6.5% growth in FY26: IMF
Trending News
3 weeks, 4 days ago

India to remain fastest growing major economy with 6.5% growth in FY26: IMF

India Today  

Multilateral financing agency International Monetary Fund has said that India will retain its position as the fastest-growing major economy by clocking a GDP growth of 6.5 per cent in 2025-26, on the back of robust private investment and macroeconomic stability. "Real GDP is expected to grow at 6.5 per cent in 2024-25 and 2025-26, supported by robust growth in private …

Chief economic advisor calls out the paradox of India’s private sector investing abroad amid global uncertainties
Trending News
3 weeks, 4 days ago

Chief economic advisor calls out the paradox of India’s private sector investing abroad amid global uncertainties

Live Mint  

New Delhi: The government’s chief economic advisor V. Anantha Nageswaran called on the private sector that’s been ramping up investments in overseas markets despite global uncertainties to also pour money into a country that’s outperforming several major economies: India. India’s statistics ministry on Friday, presenting its second advance estimates for 2024-25, marginally raised its India GDP growth estimate to 6.5% …

India should focus on accelerated reforms to speed up growth, achieve high-income status by 2047: World Bank
3 weeks, 4 days ago

India should focus on accelerated reforms to speed up growth, achieve high-income status by 2047: World Bank

The Hindu  

India would need to grow by 7.8% on average over the next 22 years to achieve the country’s aspirations of reaching high-income status by 2047, said the World Bank in a report released on Friday. Achieving this target was possible, however, getting there would require reforms and their implementation to be as ambitious as the target itself, said the report …

Economic Survey 2024-25 | ‘Dominance of financial markets in shaping policy can hurt economy’
1 month, 3 weeks ago

Economic Survey 2024-25 | ‘Dominance of financial markets in shaping policy can hurt economy’

The Hindu  

With a large part of the household savings heading to the stock market and increasingly retail investors taking charge at Dalal Street, excessive financialisation can hurt the economy and the costs may be particularly high for a low-middle-income country like India, the Economic Survey 2024-25 has cautioned. Follow the Economic Survey 2024-25 LIVE updates here “One critical risk to guard …

G.N. Bajpai: India’s banking industry needs a complete organizational revamp
1 month, 3 weeks ago

G.N. Bajpai: India’s banking industry needs a complete organizational revamp

Live Mint  

Debates on the significant decline in India’s GDP growth rate in the second quarter of 2024-25 and the revised estimates of growth for the year have been all over the media. Former Reserve Bank of India governor Shaktikanta Das had recognized the challenge of lower deposit growth and asked commercial banks to mobilize larger amounts. Leaders of banks seem to …

What are India’s GDP Numbers Telling us About its Growth?
1 month, 3 weeks ago

What are India’s GDP Numbers Telling us About its Growth?

The Hindu  

Published : Jan 27, 2025 09:29 IST - 6 MINS READ While the robustness of the official estimates of the GDP and its growth in India have been questioned, the significant slowdown reported in the advance estimates for 2024-25 is an important signal. These areas are not just the ones in which debt has played a major role in fuelling …

Capital markets to watch budget balance between fiscal deficit and spending
Trending News
2 months ago

Capital markets to watch budget balance between fiscal deficit and spending

Live Mint  

India’s market participants will watch the upcoming Union Budget for 2025-26 for proposals to boost consumption while continuing on the patch of fiscal consolidation as the economy grapples with a slowdown. The expectations from finance minister Nirmala Sitharaman’s eight budget are centered around potential reforms and fiscal measures that could boost various sectors and maintain India's growth momentum, said Dhiraj …

India to Grow 6.5 PC in FY25, 6.7 PC in FY26, FY27: WB
2 months, 1 week ago

India to Grow 6.5 PC in FY25, 6.7 PC in FY26, FY27: WB

Deccan Chronicle  

Chennai: The World Bank has projected that the Indian economy will soften its growth in FY25 to 6.5 per cent, while it has retained the growth for next fiscal at 6.7 per cent. In India, growth is expected to decelerate to 6.5 per cent in FY25 from 8.2 per cent in FY24, reflecting a slowdown in investment and weak manufacturing …

India to grow at 6.7 per cent for next 2 fiscal years: World Bank
Trending News
2 months, 1 week ago

India to grow at 6.7 per cent for next 2 fiscal years: World Bank

Deccan Chronicle  

Washington: India's economic growth is projected to remain steady at 6.7 per cent per annum for the next the two fiscals beginning April 2025, according to the World Bank's latest growth estimates for South Asia. Growth in South Asia is expected to rise to 6.2 per cent in 2025-26, with the projected firm growth in India, the World Bank said …

‘India to see more investments in 2025 as PEs look to deploy dry powder’
2 months, 1 week ago

‘India to see more investments in 2025 as PEs look to deploy dry powder’

Live Mint  

Private equity firms are doubling down on India, driven by the country’s expanding consumer base, advancements in healthcare, and the rise of high-precision manufacturing. Armed with significant dry powder, investors are reviving their bets on India’s high-growth sectors, according to Nitish Poddar, Partner and India Leader - Private equity, KPMG in India. Sector spotlight India’s consumer market remains a key …

Decoding India’s growth slowdown
Trending News
2 months, 2 weeks ago

Decoding India’s growth slowdown

The Hindu  

The first advance estimates of India’s Gross Domestic Product in 2024-25, released by the National Statistics Office this week, shows a decline in the real GDP growth rate to 6.4% from 8.2% registered in 2023-24. The annual growth rates of real gross fixed capital formation in public and private sectors During the 10 years of the United Progressive Alliance rule, …

India must revive PPPs and reform its bond market to boost economic growth
2 months, 2 weeks ago

India must revive PPPs and reform its bond market to boost economic growth

Live Mint  

At 6.4%, India’s likely growth rate for 2024-25 as estimated by the National Statistics Office, would be lower than not just earlier estimates, but even the recently revised estimate of the central bank. Talk of India being the world’s fastest growing large economy brings little cheer to Indians, except at top levels of the pyramid. In short, for India to …

DC Edit | Fall in consumption signals economic slump lies ahead
2 months, 2 weeks ago

DC Edit | Fall in consumption signals economic slump lies ahead

Deccan Chronicle  

The Indian economy is likely to record the slowest growth in the last four years at 6.4 per cent in the next financial year 2024-25, according to the first advance estimates released by the government on Tuesday. The growth in the manufacturing sector, constrained by weak exports and slowing global demand, is expected to muted at 5.3 per cent from …

Prudent policy: India should not let public debt eclipse the fiscal deficit
2 months, 2 weeks ago

Prudent policy: India should not let public debt eclipse the fiscal deficit

Live Mint  

In a 2020 address to the nation soon after the outbreak of covid, Prime Minister Narendra Modi cited age-old wisdom that advised against losing control of three things: fire, debt and disease. To cushion India’s economy from the pandemic’s shock, though, government spending had to vastly exceed its inflows, taking its fiscal deficit to 9% plus of GDP in 2020-21. …

Want growth? Just teach India better, keep everyone healthy and yes, drop those EV subsidies
2 months, 3 weeks ago

Want growth? Just teach India better, keep everyone healthy and yes, drop those EV subsidies

New Indian Express  

Our current year's budget was presented in July and expected to build on the 8.2% growth in GDP of the previous year. If our economic growth continues on the present trajectory, we are not likely to remain the most attractive FDI destination for long, thereby putting pressure on INR exchange rate. Will large businesses, driven by quarterly performance, be willing …

Should you invest in private credit?
2 months, 3 weeks ago

Should you invest in private credit?

New Indian Express  

If you are an investor in India of any size, you must have been called to participate in the private credit market. This is also called peer-to-peer lending and it used to be exclusive for bankers or other big lenders like mutual funds, NBFC, etc. If you are an investor in debt products like fixed income securities, private credit could …

India’s Private Sector Hits 4-Month High in December: PMI Data
3 months, 1 week ago

India’s Private Sector Hits 4-Month High in December: PMI Data

Deccan Chronicle  

New Delhi: Showing the resilience in India's economy with solid momentum, the India's private sector growth hit four-month high at the fastest pace in December, helping the economy on a positive note at the end of the year, underpinned by sturdier demand in both services and manufacturing along with a record jobs growth, a private survey showed on Monday. As …

Growth slowdown: Why lay a deeper economic malaise at RBI’s door?
3 months, 1 week ago

Growth slowdown: Why lay a deeper economic malaise at RBI’s door?

Live Mint  

Chapter 16 in the Book of Leviticus, Old Testament, enjoins Aaron to organize sacrifices and expiate the sins of all Israelites. Various ministers, government officials and sundry industry representatives have been hinting at RBI culpability in India’s economic slowdown and have called upon its monetary policy committee to cut rates in support of growth. The debate began with this year’s …

India’s GDP growth shocker: Bad news can be good too
3 months, 3 weeks ago

India’s GDP growth shocker: Bad news can be good too

Live Mint  

India’s growth in gross domestic product of 5.4% in the three months ended 30 September, or the second quarter of 2024-25, was a shocker. It’s the lowest level seen since the third quarter of 2022-23 and a sharp drop from 8.1% growth in the same period last year and also from 6.7% in the first quarter of 2024-25. Given the …

S&P Foresees Steady 6.5-7 Percent Growth for India Until 2027
4 months, 1 week ago

S&P Foresees Steady 6.5-7 Percent Growth for India Until 2027

Deccan Chronicle  

New Delhi: S&P Global Ratings on Thursday projected the Indian economy to grow between 6.5-7 per cent annually in the three fiscal years till March 2027 as infrastructure spending and private consumption drive growth momentum. “Good economic growth prospects will continue to support banks' asset quality, while healthy corporate balance sheets, tighter underwriting standards and improved risk management practices will …

India's Growth Outlook: A Beacon of Stability Despite Temporary Slowdown
5 months ago

India's Growth Outlook: A Beacon of Stability Despite Temporary Slowdown

Deccan Chronicle  

India's growth outlook remains steady despite a temporary slowdown in momentum in the second quarter of 2024-25. The country's aggregate demand is expected to shrug off the slowdown due to the pick-up in festival demand and consumer confidence. Domestic manufacturing and services PMI have shown signs of improvement, while rural demand is expected to get a boost from the improved …

Private capex to pick up, ₹4 lakh crore credit demand pipeline from India Inc: SBI Chairman
6 months ago

Private capex to pick up, ₹4 lakh crore credit demand pipeline from India Inc: SBI Chairman

The Hindu  

Setty has said the bank has already got ₹4 lakh crore strong credit pipeline from India Inc and expressed hope that capital expenditure by the private sector is expected to pick up in the second half of the fiscal year. As far as public spending is concerned, Finance Minister Nirmala Sitharaman in the Budget proposed to raise the capital expenditure …

Business News: Key Updates on Stock Market and Major Business Developments | ABP News
6 months, 3 weeks ago

Business News: Key Updates on Stock Market and Major Business Developments | ABP News

ABP News  

In the first quarter of the fiscal year 2024-25, India’s GDP growth has slowed to 6.7%, a significant drop from 8.2% in the same period last year. The Ministry of Statistics and Programme Implementation reported that the real GDP at constant prices for Q1 2024-25 stood at ₹43.64 lakh crore, compared to ₹40.91 lakh crore in the previous fiscal year. …

Private equity investments to thrive in India despite global challenges: Jefferies report
7 months, 2 weeks ago

Private equity investments to thrive in India despite global challenges: Jefferies report

Live Mint  

India will remain a prime market for listing private equity investments, suggesting a huge pipeline for investment bankers globally, according to a latest report by global brokerage firm Jefferies. In a previous Jefferies report, as quoted by ANI, it was observed that India's stock market has shown remarkable resilience and growth, especially after the general election results. The report said …

Budget must address fundamental questions, why is private investment very sluggish: Congress
8 months, 1 week ago

Budget must address fundamental questions, why is private investment very sluggish: Congress

The Hindu  

The Congress on July 12 said the forthcoming Budget must address fundamental questions such as why private investment is "very sluggish" and private consumption is not picking up as the party dismissed claims that economic growth is accelerating sharply and large numbers of jobs being created. Congress general secretary, in-charge communications, Jairam Ramesh said, “The non-biological PM’s cheerleaders and drumbeaters …

India to remain fastest-growing major economy
9 months, 1 week ago

India to remain fastest-growing major economy

Deccan Chronicle  

Chennai: India will remain the fastest-growing of the world’s largest economies, although its pace of expansion is expected to moderate, finds the World Bank. While retaining the GDP growth forecast for FY24 and FY25 at 6.6 per cent and 6.7 per cent respectively, the World Bank estimated the country to clock 6.8 per cent growth in FY26. However, investment growth …

India’s Growth to Steady at 6.7% Till 2026: World Bank
9 months, 1 week ago

India’s Growth to Steady at 6.7% Till 2026: World Bank

Deccan Chronicle  

Chennai: India will remain the fastest-growing of the world’s largest economies, although its pace of expansion is expected to moderate, finds the World Bank. While retaining the GDP growth forecast for FY24 and FY25 at 6.6 per cent and 6.7 per cent respectively, the World Bank estimated the country to clock 6.8 per cent growth in FY26. Growth in industrial …

India to clock about 6.7% growth between 2024-2026: World Bank
9 months, 2 weeks ago

India to clock about 6.7% growth between 2024-2026: World Bank

Live Mint  

The Indian economy, buoyed by strong domestic demand, a surge in investment and robust services activity, is projected to grow an average of 6.7% per fiscal year from 2024 through 2026, making South Asia the world’s fastest-growing region, the World Bank said on Tuesday. In its latest Global Economic Prospects report, the World Bank said India will remain the fastest-growing …

GDP growth impresses, but rural demand remains a worry
9 months, 3 weeks ago

GDP growth impresses, but rural demand remains a worry

New Indian Express  

India’s economic growth seems to be going gangbusters. Ending nearly a decade-long wait, real GDP growth crossed the 8 percent mark, touching 8.2 percent in 2023-24. Provisional data released by the National Statistics Office also showed that the gross value added—net of subsidies and taxes, and hence considered a better measure of economic activity—grew by 7.2 percent. Agriculture and allied …

India’s State Sector Is Thriving. That’s a Problem
9 months, 3 weeks ago

India’s State Sector Is Thriving. That’s a Problem

Live Mint  

-- Ten years ago, when Narendra Modi — then chief minister of business-friendly Gujarat state — rode an electoral wave to the prime ministership in New Delhi, many expected that he would be far more supportive of the private sector than previous Indian leaders. The minister in charge of India’s state petroleum companies, for example, says that the Modi administration …

Why have private investments dropped? | Explained
11 months, 1 week ago

Why have private investments dropped? | Explained

The Hindu  

April 18, 2024 10:46 pm | Updated April 19, 2024 11:51 am IST The story so far: The failure of private investment, as measured by private Gross Fixed Capital Formation as a percentage of gross domestic product at current prices, to pick up pace has been one of the major issues plaguing the Indian economy. It, however, began to drop …

Real GDP growth may hit 8% this fiscal year, signals FinMin
1 year ago

Real GDP growth may hit 8% this fiscal year, signals FinMin

The Hindu  

India’s economy may well end up growing by about 8% this fiscal, outstripping the 7.6% real GDP growth projected by the National Statistical Office, the Finance Ministry signalled on Friday, citing the continuing momentum in economic activity in the ongoing final quarter of 2023-24. Despite risks such as “hardening crude oil prices” and “global supply chain bottlenecks to trade”, the …

Fin Ministry Attributes India's Growth Amid Global Slowdown To Strong Investment And Demand
1 year ago

Fin Ministry Attributes India's Growth Amid Global Slowdown To Strong Investment And Demand

ABP News  

Robust investment activity and strengthening private consumption demand is driving growth in the Indian economy amidst the sluggish global growth, according to the Finance Ministry’s monthly review released on Friday. The strong demand is evident from indicators like burgeoning air passenger traffic and sale of passenger vehicles, rising digital payments, improved consumer confidence and expectations of a normal monsoon, the …

Morgan Stanley on India's economy: Boom like 2003-2007, on cusp of this big push
1 year ago

Morgan Stanley on India's economy: Boom like 2003-2007, on cusp of this big push

Hindustan Times  

India's economic growth rate resembles that of 2003-07 when growth averaged more than 8 per cent, as per Morgan Stanley's report ‘The Viewpoint: India - Why this feels like 2003-07’. Morgan Stanley said that after a decade of investment to GDP steadily declining, capex emerged as a key growth driver in India as “the capex cycle has more room to …

Boosting entrepreneur enthusiasm much needed for sustainable recovery
1 year ago

Boosting entrepreneur enthusiasm much needed for sustainable recovery

China Daily  

The skyline of Beijing. The central government has recently vowed to continue to encourage and support the expansion of private investment, offer high-quality projects to private capital in the future, make good use of national financing and credit service platforms and strengthen financing and factor guarantees for key projects of such kind. The latest data from the China National Intellectual …

R&D spend — golden intervention or smoke and mirrors
1 year, 1 month ago

R&D spend — golden intervention or smoke and mirrors

The Hindu  

The announcement by Union Finance Minister Nirmala Sitharaman, in the interim Budget, that “A corpus of rupees one lakh crore will be established with fifty-year interest free ” to provide “long-term financing or refinancing with long tenors and low or nil interest rates encourage the private sector to scale up research and innovation significantly in sunrise domains”, is worth examining. …

RBI pegs FY'25 GDP growth at 7% on improved consumption demand, private capex spends
1 year, 1 month ago

RBI pegs FY'25 GDP growth at 7% on improved consumption demand, private capex spends

The Hindu  

The Reserve Bank of India on February 8 projected GDP growth for the next financial year at 7% on the back of improved household consumption and upturn in private capex cycle. In its Monetary Policy Statement, 2023-24, RBI Governor Shaktikanta Das said the recovery in rabi sowing, sustained profitability in manufacturing and underlying resilience of services should support economic activity …

A political, feel-good statement
1 year, 1 month ago

A political, feel-good statement

The Hindu  

Often, Budget speeches are political statements — more so, with impending general elections. The Budget statement attributed post-COVID growth revival to public infrastructure investment and proposes to continue the same in the coming year with a 11% rise in capital expenditure. In the last 3-4 years, the government has steadily raised public infrastructure investments, mainly on highways and communications, which …

Budget 2024: Government likely to maintain momentum on increasing capital expenditure
1 year, 2 months ago

Budget 2024: Government likely to maintain momentum on increasing capital expenditure

India TV News  

The government is expected to maintain its focus on increasing capital expenditure in the upcoming budget, particularly in the infrastructure sector, to stimulate economic growth amid subdued private investment. Since the post-COVID period, the budget has consistently emphasised capital expenditure, leading to over 7 per cent growth in the last three years, making India the fastest-growing large economy globally. In …

Positive GDP Surprise: Growth in Private Consumption Remains Critical
1 year, 2 months ago

Positive GDP Surprise: Growth in Private Consumption Remains Critical

News 18  

The government’s first advance estimate of the Gross Domestic Product for the current fiscal, which will end in March, has been a positive surprise for most economists. Rajani Sinha, the Chief Economist of CARE Ratings, said MOSPI’s projection of the GDP “seems to be relatively optimistic, surpassing the RBI’s estimate of 7% and our own projection of 6.8 per cent”. …

Year Ender 2023: PE investments in Indian real estate decline by 44% to $3 bn so far this year
1 year, 3 months ago

Year Ender 2023: PE investments in Indian real estate decline by 44% to $3 bn so far this year

Hindustan Times  

Private equity investments in Indian real estate declined by 44% to $3 billion in 2023. The retail sector did not witness any PE deal in 2023, Knight Frank India said in its report Trends in Private Equity Investments in India 2023. Residential sector attracted $577 million in investments in 2023 Private equity investments in the residential sector were primarily directed …

An uneven rebound: The Hindu Editorial on the economy
1 year, 6 months ago

An uneven rebound: The Hindu Editorial on the economy

The Hindu  

India’s economy, as measured by the Gross Domestic Product as well as the Gross Value Added, grew 7.8% in the first quarter of the year. But the months ahead could prove to be more challenging with global headwinds that have hit goods exports and manufacturing already, combining with domestic pressures from the renewed spurt in inflation and the likelihood of …

’Indian equities to benefit from macro backdrop, Nifty EPS to grow 18% in FY24’
1 year, 7 months ago

’Indian equities to benefit from macro backdrop, Nifty EPS to grow 18% in FY24’

Live Mint  

India’s financial market assets including equities, private markets, bond yields, are expected to benefit structurally from a favourable macroeconomic backdrop over the next few years. According to a report by Standard Chartered, India’s corporate profit cycle remains the strongest since the 2004-08 cycle as the benchmark Nifty index EPS grew at an average 20 per cent between FY21 and FY23 …

Growth in India is expected to slow to 6.3% in FY2023: World Bank
1 year, 9 months ago

Growth in India is expected to slow to 6.3% in FY2023: World Bank

The Hindu  

Growth in India is expected to slow to 6.3 % in FY 2023/24, a 0.3 percentage point downward revision from January, the World Bank said Tuesday but noted there is an unexpected resilience in private consumption and investment and robust growth in the services. “Growth in India is expected to slow further to 6.3 % in FY 2023/24, a 0.3 …

ADB pares India’s growth hopes to 6.4%
1 year, 11 months ago

ADB pares India’s growth hopes to 6.4%

The Hindu  

The Asian Development Bank has slashed its growth projection for India for 2023-24 sharply from 7.2% estimated earlier to 6.4%, attributing the cut to the global economic slowdown, tight monetary conditions, and persistently elevated oil prices. While domestic consumption demand is likely to stay healthy, private investment growth is likely to be lower this year due to high lending rates …

India growth slows to 4.4% in December quarter on weak demand
2 years ago

India growth slows to 4.4% in December quarter on weak demand

Firstpost  

Mumbai: India’s quarterly economic growth slowed to 4.4 percent in the last three months of 2022, official estimates showed Tuesday, as weaker global demand and high inflation weigh on the world’s fifth-largest economy. Quarterly data showed GDP growth down from 6.3 percent in the September quarter after consumption weakened following India’s festive season. But the National Statistics Office’s full-year forecast …

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