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Economy

This section offers content on things happening in the country. Any news update on India, its GDP, plans and levels globally will be included in this section.

Gujarat Global Summit 2024

Gujarat Global Summit 2024: 10 Announcements To Know

The Vibrant Gujarat Global Summit 2024, which commenced on January 10 and ended on the 12th, emerged as a transformative event for India. It witnessed active participation from global business leaders, setting the stage for economic growth, investments, and international partnerships.

This summit was a critical platform to showcase Gujarat as a premier investment hub. Prime Minister Modi’s direct involvement underscores the state’s pivotal role in the nation’s overall development. The spotlight shone on India’s two wealthiest businessmen, Gautam Adani, and Mukesh Ambani, as they took center stage during the summit with announcements that could redefine Gujarat’s economic landscape.

Top 10 Announcements at the Gujarat Global Summit

  1. Adani’s $24 Billion Investment: Gautam Adani pledged a staggering $24 billion over the next five years, not merely as an investment but as a commitment to creating 1 lakh jobs in Gujarat, significantly impacting the state’s employment landscape.
  2. Green Energy Revolution: Adani Groups committed around $100 billion towards transitioning to green energy over the next decade, signaling a transformative shift in India’s energy ecosystem. This move aligns with global environmental goals and positions India as a leader in sustainable practices.
  1. Carbon Fibre Facility: Mukesh Ambani’s announcement about India’s first world-class carbon fiber facility at Hazira, Gujarat, marks a pioneering step toward enhancing India’s manufacturing capabilities in advanced materials.
  2. Green Energy Giga Complex: The plan to establish a green energy giga complex on a sprawling 5,000-acre site in Jamnagar by 2024 reflects Reliance Industries’ commitment to sustainability and signifies a substantial contribution to India’s clean energy goals.
  1. Semiconductor Fab in Dholera: N Chandrasekaran’s revelation about building a semiconductor fab in Gujarat’s Dholera, operational by 2024, underscores the state’s leap into advanced technology manufacturing.
  2. Lithium-Ion Storage Battery Factory: Tata Group’s ambitious plan to construct a massive 20-gigawatt lithium-ion storage battery factory in Sanand within the next two months positions Gujarat as a critical player in the electric vehicle revolution.
  1. Suzuki’s Expansion: Toshihiro Suzuki announced a ₹35,000 crore investment for Suzuki’s second manufacturing facility in Gujarat, which will contribute to the state’s economic growth and align with India’s automotive sector expansion plans.
  2. Dutch, Singaporean, and Tech Investments: The Dutch and Singaporean firms and Nvidia’s partner firm Yotta’s plan to commission an “artificial intelligence data center” in GIFT City announced investments exceeding $7 billion.
  1. World’s Largest Steel Manufacturing Factory: Lakshmi Mittal’s revelation about building the world’s single biggest steel manufacturing factory at Hazira in Gujarat by 2029, with a capacity of 24 million tonnes per annum, could position Gujarat as a hub for heavy industries.
  1. India’s Global Standing: India is poised to be among the top three economies globally, promising significant investments and strategic partnerships that could aid India’s ascent on the global economic stage

Also Read: Top Semiconductor Stocks in India

Summit Achievements

  • Record-breaking MoUs: MoUs exemplify the summit’s achievements for investments exceeding INR 45 lakh crores across 98,540 projects, marking a historic milestone for Gujarat and solidifying its position as an investment destination.
  • Global Participation: With 34 partner countries and 16 partner organizations actively engaged, the summit attracted global attention and fostered international collaboration, further elevating Gujarat’s global standing.
  • Bilateral Talks: Prime Minister Modi’s bilateral discussions with vital global figures, including executives from Suzuki Motor Corp, AP Moller, Micron Technology, and others, highlight the summit’s role in fostering international cooperation and strategic partnerships.
  • A Decade of Growth: The Vibrant Gujarat Global Summit 2024, overcoming the challenges of the previous year, has not only surpassed the achievements of the 2022 edition but has also set a new benchmark with 41,299 projects worth INR 26.33 lakh crores signed, showcasing Gujarat’s resilience and commitment to sustained growth.
  • Green Hydrogen Mission: Member of NITI Aayog, Shri V. K. Saraswat, shed light on the ‘Mission Green Hydrogen,’ aiming to produce five million metric tons of green hydrogen in India by 2030. Gujarat’s expected significant contribution aligns with the state’s commitment to sustainable practices.
  • International Collaboration: The signing of five MoUs between the Gujarat government and the UK, fostering strategic cyber cooperation and technology collaboration, strengthens the state’s cybersecurity infrastructure, positioning it at the forefront of technological advancements.

In conclusion, the Vibrant Gujarat Global Summit 2024 was a testament to India’s resilience and determination for economic progress. The active participation of global business leaders has laid the foundation for a prosperous and sustainable future.

FAQs

  1. How will Adani’s $24 billion investment impact Gujarat’s employment?

    Adani’s investment is not just monetary; it’s a commitment to creating 1 lakh jobs in Gujarat, significantly boosting the state’s employment landscape.

  2. What is the significance of the green energy commitments made by Adani Groups and Reliance Industries?

    These commitments mark a transformative shift towards sustainable energy practices, aligning with global environmental goals and positioning India as a leader in green initiatives.

  3. How does the summit contribute to India’s global standing?

    With its record-breaking investments and international collaborations, the Gujarat Global summit reinforces India’s position as a key player in the global economic landscape.

  4. What are the key areas of collaboration in the MoUs signed during the summit?

    The MoUs cover diverse areas, including technology, green energy, steel manufacturing, and cyber cooperation, fostering comprehensive development.

  5. How does Gujarat plan to contribute to the ‘Mission Green Hydrogen’?

    Gujarat is expected to significantly produce five million metric tons of green hydrogen by 2030 under the ‘Mission Green Hydrogen.

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Discover 8 Sustainable Steps for Successful Green Business Investment

Discover 8 Sustainable Steps for Successful Green Business Investment

In the dynamic landscape of modern business, the concept of Green Business has gained significant traction. As environmental concerns continue escalating, investors and individuals focus on sustainable and eco-friendly practices. There is an increasing demand for environmentally friendly practices, and companies are adapting to meet these expectations.

Everyday business activities can significantly impact the environment, positively or negatively. We don’t consciously understand this and don’t know how it works and affects our daily lives. The local environmental and social impacts are enormous.

The world is slowly moving towards more environmentally friendly and sustainable practices. Companies are also beginning to recognize the importance of a sustainable business strategy and incorporate that into their business processes. Many green, ethical companies strive to minimize their impact on the local environment.

Many government regulations come to protect natural resources and preserve the environment. For example, companies must comply with the rules to safeguard the environment before building manufacturing plants, factories, or factories in green areas.

This comprehensive guide will help you explore the basics of green business, highlighting examples, potential investments, and sustainable business models. Whether you’re an investor looking for ethical opportunities or an individual looking to make a positive impact, this guide offers seven critical steps to a successful green business journey.

Also Read: Exploring Socially Responsible Investment

Need For Green Businesses

AspectDescription
DefinitionBusiness practices that prioritize environmental sustainability, social responsibility, and economic viability.  
Environmental ImpactReduces carbon footprint, minimizes waste, conserves resources, and promotes biodiversity.  
Economic BenefitsIt enhances operational efficiency, reduces long-term costs, attracts environmentally conscious consumers, and opens new market opportunities.  
Social ResponsibilityDemonstrates commitment to ethical practices, improves brand image, and contributes to community well-being.  
Regulatory ComplianceAdhering to environmental regulations mitigates legal risks and ensures long-term business continuity.  
Innovation and TechnologyEncourages the development of sustainable technologies, fostering innovation and creating a competitive advantage.  
Employee EngagementAttracts and retains top talent as employees increasingly seek socially responsible workplaces.  
Consumer DemandGrowing consumer preference for eco-friendly products and services drives market demand for green businesses.  
Global Environmental ChallengesAddresses critical issues like climate change, pollution, and resource depletion on a global scale.  

Understanding Green Business

Green business describes a company that does not negatively impact the environment, economy, or community. It makes its products from sustainable materials. It aims to use as little water, energy, and raw materials as possible while reducing carbon emissions or explores ways to use these resources in innovative ways that are not as environmentally friendly as installing solar panels.

The Green Investment Landscape

Prime Minister Narendra Modi has also highlighted the economic opportunities in areas like green hydrogen ecosystem, auto scrapping, and energy conversion, such as green initiatives by the Government of India to increase renewable energy, reduce fossil fuel consumption, and move the country towards a gas-dependent economy.

Some initiatives by the government are:

  • National Solar Project (MNRE)
  • Advanced National Energy Efficiency Program (under Ministry of Power).
  • Sustainable Global Environmental Policy (under the Ministry of Housing and Urban Development)
  • Global Water Project (MWR)
  • Green Business Plan
  • National Green Hydrogen Mission

Setting up Green Business in India

  • Research and Design: Know your green business idea. Identify the type of green business you want to set up. This could be renewable energy, waste management, environmentally friendly practices, sustainable agriculture, etc.
  • Market Analysis: Analyze market demand, competition, and potential customers for your green business.
  • Business Plan: Develop a comprehensive business plan outlining your objectives, target markets, financial projections, and sustainability initiatives.
  • Legal Framework and Records: Choose a business structure. Decide on the legal structure of your business, such as a sole proprietorship, partnership, limited liability company (LLC), or sole proprietorship.
  • Register your business: Register with India’s Ministry of Corporations (MCA). Get a Unique Number (UIN) or Company Number (CIN).
  • Rules of Compliance:
    • Environmental clearance: Depending on the nature of your green business, you may need an environmental permit from the relevant authorities. Contact the National Pollution Control Board for guidance.
    • Obtain permits and licenses: Identify and obtain the specific permits or licenses for your green business. This can include permits and licenses for specific projects.
  • Taxation and Finance:
    • Tax registration: If your annual income is above the border limit, register for Goods and Services Tax (GST).
    • Financial management: Establish a financial plan, including a professional bank account, and maintain proper financial records.
  • Funding and support:
    • Research government policies: Research and ask for government policies or grants supporting green businesses in India.
    • Find investors: Find potential investors, investors, or green financing options to finance your business.
  • Resources and Technology:
    • Technology and Equipment: Invest in environmentally friendly technology and equipment that aligns with your green business goals.
    • Resource Management: Plan your work schedule to minimize environmental impact and maximize energy efficiency.

Exploring Green Business Models

There have been various sustainable business models that have proven successful. From circular economies to zero-waste strategies, one such brand example is IKEA. It opened its doors in India a few years ago and is spread worldwide. As a leading brand focused on renewable energy and sustainability, IKEA has developed a “Good for People and the Planet” program that promotes environmentally friendly practices and solar power and encourages renewable environmental efforts.

IKEA is also an example of a company working towards 100% renewable energy in stores and reducing its already low percentage of waste from the current 15%.

The imperative to meet the challenges of climate change led to a paradigm shift towards adopting sustainable consumption and production practices, ultimately benefiting consumer well-being. It is important to consider market development and responsibility for resource consumption. Business owners should prioritize resource efficiency, expanding their commitment beyond the construction sector to promote the country’s Sustainable Development Goals (SDGs).

As we conclude our journey to green business, it is clear that the future lies in sustainable practices. Incorporating these steps into your investment or lifestyle choices contributes to a greener and more ethical world. Embrace green business opportunities and be part of the positive change our planet needs.

FAQs

  1. What is the primary focus of green business?

    Green businesses focus on adopting environmentally friendly practices to minimize negative impacts on the planet while promoting sustainability.

  2. Are there successful examples of companies embracing green business models?

    Yes, many companies, including major corporations, have successfully implemented green business models, showcasing the feasibility and benefits of sustainable practices.

  3. How can individuals contribute to green business without direct investments?

    Individuals can contribute by making sustainable choices in their daily lives, supporting eco-friendly products, and raising awareness about the importance of green practices.

  4. What is the significance of investing in green business?

    Investing in Green Business supports environmental sustainability and can lead to long-term financial gains. Companies adopting eco-friendly practices are often more resilient and future-proof.

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Aadhaar PAN linking charges

Understanding Aadhaar PAN Linking Penalty Charges

Introduction

In today’s digital age, linking your Aadhaar card with your PAN card has become essential for financial transactions and tax compliance. However, many individuals are unaware of the associated fees and late fees that they may incur. In this article, we will analyze Aadhaar PAN linking charges, highlight late fees of Rs 1,000, and discuss the additional costs that may arise if you opt for the offline route.

Section 139AA of the Income Tax Act provides that every person with a Permanent Account Number (PAN) issued on 1st July 2017 and eligible for an Aadhaar Number shall declare his Aadhaar Number in the prescribed manner and form.

If you have not linked it with Aadhaar by June 30, later extended to 30th July 2023, your PAN will not be valid. However, people falling within the exempted category will not be affected by the invalidity of PAN.

Aadhaar-PAN Linking Charges Explained

The Aadhaar-PAN linking process was introduced to streamline financial transactions and curb tax evasion. While linking these two vital identification documents is mandatory, it’s essential to understand the charges involved:

Online Aadhaar-PAN Linkage:

  • Linking Aadhaar card with your PAN card online is the easiest and most cost-effective method.
  • This process has no fee, making it a hassle-free option for individuals who want to comply with tax laws.

Offline Aadhaar-PAN Link:

  • Using an offline method to link your Aadhaar and PAN cards may incur additional fees.
  • The most important cost associated with offline linking is the latency fee, which is Rs 1,000. If you miss the deadline to combine these two forms, this fee will be charged. Your PAN card might have become inoperative if you did not link it with Aadhaar till 30 July 2023.

Additional Costs for Offline Linking:

  • Apart from late fees, there may be other costs when linking Aadhaar and PAN offline.
  • These additional fees may include visiting an Aadhaar enrollment center or a PAN activation center.
  • Travel costs, photo reimbursement, and application fees may vary depending on the service.

Understanding Late Fees

The Rs 1,000 late fee is a major deterrent for individuals who miss the deadline for linking their Aadhaar and PAN cards. To avoid this penalty, it’s important to know the deadline and complete the negotiation process promptly.

Why is Aadhaar and PAN card Linking Important?

image 71

Tax Compliance: One of the main reasons for integrating Aadhaar and PAN is to enhance tax compliance. By linking their Aadhaar and PAN cards, individuals will find it easier for the government to monitor financial transactions and detect tax evasion. It helps reduce tax fraud and increases tax revenue for the government.

Prevention of multiple PANs: Linking of Aadhaar with PAN helps identify persons holding multiple PAN cards in an attempt to evade paying taxes or engage in other illegal financial activities This ensures that everyone has only one valid PAN, which is necessary for accurate taxation.

Simplify Financial Transactions: Combining Aadhaar with PAN can simplify various financial transactions, such as opening a bank account, applying for a loan, or other transactions. It helps identify individuals quickly and accurately, reducing the possibility of fraudulent activities.

Establishment of Government Benefits: Aadhaar-PAN linkage can help the government distribute targeted subsidies and welfare benefits. It ensures that benefits are delivered to the rightful beneficiaries and reduces the likelihood of resources being misappropriated or misused.

Reducing Identity Theft: Linking Aadhaar with PAN can help reduce identity theft and financial fraud. Verifying the authenticity of an individual through biometric and demographic information stored in the Aadhaar database adds an extra layer of security.

Streamlining Tax Filing: Integrating Aadhaar and PAN can make it easier for individuals to file their income tax returns online. It simplifies the verification and certification process, and reduces the possibility of errors in tax returns.

Compliance with Legal Requirements: The government of India has made it mandatory for individuals to join Aadhaar and PAN as per the Income Tax Act. Failure to comply may result in fines or difficulty in conducting financial transactions.

Here’s a step-by-step guide on how to link your PAN with Aadhaar online:

Step 1: Visit the official income tax website.

Step 2: Click on the ‘Link Aadhaar’ option.

Step 3: Enter your PAN, Aadhaar number, name as per Aadhaar, and other required details.

Step 4: Verify the captcha code and click ‘Link Aadhaar.’

Step 5: A confirmation message will be displayed, indicating successful linkage.

By following these simple steps, you can ensure that your PAN and Aadhaar are linked without incurring any fees.

Linking the Aadhaar card with your PAN card is a must to ensure seamless financial transactions and tax compliance. While online transactions are free and convenient, taking the offline route can incur a hefty late fee of Rs 1,000 if the deadline is missed.

Apart from that, internet can communication incur additional costs, such as travel expenses and application fees. It is advisable to complete the Aadhaar PAN linking process online within the stipulated time to avoid unnecessary fees and penalties.

FAQs

  1. What is the late fee for missing the Aadhaar-PAN linking deadline?

    The late fee for missing the Aadhaar-PAN linking deadline is Rs 1,000.

  2. What additional expenses can be incurred when linking Aadhaar with PAN offline?

    When linking Aadhaar with PAN offline, individuals may incur expenses such as travel costs to the service center, photocopying fees, application processing charges, and the Rs 1,000 late fee if the deadline is missed.

  3. Is my personal information safe when I link Aadhar and PAN?

    The government has implemented security measures to protect personal information. However, it’s always a good practice to be cautious while sharing your personal details. Ensure that you are using official government portals or channels for linking.

  4. Can I link multiple PAN cards to one Aadhar?

    No, an individual can link only one PAN card to one Aadhar number. Multiple PAN cards are not allowed.

  5. What should I do if there is a discrepancy in my Aadhar or PAN details?

    If you notice any discrepancies in your Aadhar or PAN details, you should update them through the respective official channels before linking them.

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Chandrayaan 3

9 Economic Impacts of Chandrayaan 3

Chandrayaan 3 Setting Records For India and more

What makes the success a moment to celebrate is that India becomes the fourth country after the US, China, and Russia to soft-land a craft on the Moon. Furthermore, India is the first nation to successfully land an unmanned craft on the south pole of the Moon. Chandrayaan 3’s landing date and time will not be just another memorable date in history but will take the Indian economy a couple of notches higher.

To add to the achievements, Chandrayaan 3’s Vikram Lander has already surpassed its mission objectives with a successful hop experiment. Furthermore, the rover Pragyaan has completed all the assignments. Pragyaan and Vikram are set to ‘Sleep’ mode and awaken on 22 September 2023 after bracing the cold lunar night.

Impact of India’s successful Chandrayaan 3 Moon Mission

The success of Chandrayaan 3 has increased the credibility of India’s space program and has the potential to impact the Indian economy positively. The success is not just a proud moment, but it has proved to the world the scientific and technological advancement made by the country.

Here are some of the ways this mission can impact the Indian economy:

1. Creating Job opportunities in Space tech

India’s successful Chandrayaan 3 mission has given the Indian space tech sector the boost it deserves and attracted potential investments. This mission has demonstrated the country’s capabilities in space exploration.

According to a study published in December 2022 by IBEF, India contributes to about 2.1% of the global space economy. It has a market share of $9.6 billion, which comprises about 0.4% of the country’s total GDP.

2. Increasing Opportunities for Startups

The landing of Chandrayaan 3 has opened up many opportunities for startups involved in sectors like aerospace, space tech, defense, and research and development. This significant event will encourage private investment in these startups, positively impacting the country’s economic growth. In June 2023, Google invested in Pixxel Overall, a Benguluru-headquartered space-tech startup, by leading the USD 36 million Series B funding round.

According to the Economic Survey, Indian startups in this industry have grown to over 101 startups in 2022. They have received funding of around USD 108.52 million in 2022  from just 67.2 million in 2021 and are set to go up to USD 300 million in 2023.

3. Amplified focus on Space tech and infrastructure

The Chandrayaan 3 mission called for developing the most advanced technology and equipment, in addition to innovation in the scientific sector. The investment made in research and development for this mission has finally borne fruit. It has led to advancements in various sectors, like satellite technology, remote sensing equipment, and propulsion systems.

This mission has made India an essential global satellite launch market player.  In 2020, the Indian Space Sector was valued at USD 9.6 billion and contributes 2%-3% of the global space economy. India’s global space economy share could reach 4% at 9.2% CAGR (2022-2040).   

4. Foster Education

The Chandrayaan 3 mission has played a vital role in encouraging education and research in this area, inspiring students to pursue a career in the space sector. The ISRO STEM portal offers several activities related to space, technology, and its application. ISRO also provides training programs on assembling and building nanosatellites, known as UNNATI (UNispace Nanosatellite Assembly & Training by ISRO), to international students, engineers, or scientists.      

5. Growth of the Research & Development sector

It has pushed academic institutions and research organizations to partner with ISRO on space research and its related areas. ISRO has formed working groups with other space agencies to explore cooperation areas in space science. For instance, the ISRO-NASA Planetary Science Working Group, the ISRO-NASA Heliophysics Working Group,  and the ISRO-ASI in Heliophysics and lunar science.

It also will meet the representatives from ESA, NASA, SANSA, CONAE, CSA, CNES, and the Russian Academy of Sciences (RAS). These partnerships will have a long-term impact on the Indian economy as they fuel innovation and drive technological advancements in multiple sectors.  

ISRO has established nine Space Technology Cells (STC) at top-ranking institutions like the Indian Institute of Science (IISc), Bengaluru, the Indian Institute of Technology (IITs) – Bombay, Kharagpur, Kanpur, Guwahati, Madras, Delhi, and Roorkee, and a Joint Research Programme with Savitribai Phule Pune University (SPPU, Pune) to conduct research activities in space technology and applications.

6. Augmenting the National Security

The Chandrayan 3 mission, accompanied by scientific and economic benefits, also bolsters the country’s national security efforts. The successful operation and launch of the mission have proved that India is capable of developing and managing complex space tech and space-based assets. This capability is crucial to inspecting the borders, identifying potential dangers, and ensuring national security. 

7. International Collaborations

The Chandrayaan 3 mission has made India proud and enhanced its global status. The success of this mission has helped India get recognized in the international space community, bringing in opportunities for international collaboration and partnerships.

ISRO has signed six agreements with four countries for foreign satellite launches between 2021 and 2023. Commercially, these launches have the potential to generate USD 141 million in revenue.

8. Bolstering the India’s Soft Power

The Chandrayaan 3 mission has been able to enhance the nation’s soft power capabilities on a global scale. India’s achievements in space and space exploration have amassed admiration globally, aiding in reshaping the international perception of the country.

The Chandrayaan 3 landing date and time have not only given the country’s image a positive fillip but have boosted foreign collaborations and partnerships in scientific research and development.  

  • The space cooperation with France now includes areas like human spaceflight, space situational awareness (SSA), and Earth observation.  
  • The India-Japan (ISRO-JAXA) space cooperation focuses on satellite navigation, lunar exploration, and earth observation. The validity of IA for Agromet collaboration with JAXA has been extended until November 2025.
  • The ISRO and European Space Agency (ESA) cooperation has expanded from the domain of earth observation and space exploration to other areas.

9. Entering the Moon economy

The Chandrayaan 3 mission has opened up the “moon or lunar economy” for India. This emerging sector is estimated to reach USD 13 billion by 2025. By 2030, India aims to capture a larger share of approximately 10% of the global economy. This can open up many business opportunities, technological developments, and valuable lunar exploration opportunities. 

The Chandrayaan 3 mission has had a significant impact on the Indian economy. It has boosted the space technology sector and encouraged education, research and development, and innovation. This mission has put India on a pedestal in space exploration and propelled it to new heights in every aspect.

FAQs

  1. What was the budget of the Chandrayaan 3 mission in Indian rupees?

    The budget of Chandrayaan 3 was estimated to be around ₹615 crores.

  2. How will the Chandrayaan 3 mission impact India?

    The Chandrayaan 3 mission can enhance India’s position on the global map in space technology and exploration. It can also give the Indian economy a well-deserved uplift.

  3. When was Chandrayaan 3 launched?

    Chandrayaan 3 was launched on 14 July 2023. This mission consists of the lunar lander named ‘Vikram’ and the lunar rover named ‘Pragyan.’

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UPI ATM & Conversational Transaction All You Need To Know

UPI ATM & Conversational Transactions: All You Need To Know

Digital transactions in India have been transformed by the Unified Payments Interface (UPI) in recent years. It provides users with a hassle-free and easy way to transfer money. This innovative payment system has evolved continuously, introducing new features to improve the user experience. In this article, we will discuss two significant additions: UPI ATM and Conversational UPI transactions.

UPI ATM: Redefining Accessibility

The Unified Payments Interface Automated Teller Machine (UPI ATM) is an innovative feature that combines digital and physical transactions. With UPI ATM, customers can withdraw cash from ATMs without a debit card. The HITACHI Money Spot UPI ATM is a prime example of this technology.

The launch, in partnership with NPCI, will redefine the ATM experience for Indians. Hitachi is the only White Label ATM operator allowing cash deposits.

The ATM is powered by Android OS, enabling users to retrieve funds from multiple accounts through their UPI app. This functionality primarily benefits regions with limited traditional banking infrastructure and card coverage, promoting financial inclusion and convenient banking access. With improved security measures and a user-friendly interface, the ATM ensures you a hassle-free cash withdrawal experience.

How Does UPI ATM Work?

Making a transaction through the Unified Payment Interface (UPI) ATM option is simple and secure. First, the user generates a unique code, which is used to authenticate the transaction at the ATM. Once verified, the requested amount is dispensed from the ATM, giving the user a seamless and hassle-free experience.

Choose the cash amount you wish to withdraw.

  • The ATM displays the UPI QR code linked to the chosen amount.
  • Scan this QR code using your UPI application.
  • Enter the UPI PIN for transaction authentication.
  • Take your money.

Who Can Benefit from UPI ATM?

The Unified Payment Interface ATM is a revolutionary feature that benefits diverse users. From tech-savvy millennials to individuals living in remote areas with limited access to traditional banking, this feature empowers everyone with easy access to cash. It will promote financial inclusion by facilitating easy access to banking services in areas with limited conventional banking infrastructure and low card penetration.

Where Can You Find HITACHI UPI ATMs?

HITACHI ATMs are available in over 3,000 locations nationwide and can be easily located using UPI-enabled apps.

Enhancing Security Measures

ATMs have always been known for their convenience, but security has been a concern for many users. Traditional ATM transactions have always been at risk of card skimming and unauthorized access, which can make users feel insecure about their accounts.

However, new ATMs have been designed using a unique one-time code system to eliminate this risk. This makes it almost impossible for fraudsters to access user accounts, ensuring that users can have peace of mind and carry out transactions without worrying about their security.

Distinguishing UPI ATMs from Cardless Cash Withdrawals

Unlike cardless cash withdrawals that rely on mobile numbers and OTPs, the UPI-ATM uses QR-based UPI cash withdrawal mechanisms. Users must install a UPI app on their Android or iOS devices to use this technology.

Conversational UPI Transactions: A Natural Interaction

The National Payments Corporation of India (NCPI) introduced Conversational UPI. These transactions will revolutionize the way users interact with the UPI platform. This feature will let users initiate transactions using natural language commands, making the process more intuitive and user-friendly.

Why did NCPI introduce Conversational UPI Transactions?

The traditional process of initiating UPI transactions involves navigating through various screens and input fields, which can be daunting for some users. Conversational UPI simplifies this process, allowing users to perform transactions with ease.

Why Choose NCPI’s Conversational Feature?

NCPI’s feature simplifies the transaction process, making it easier for users with limited technical proficiency to navigate the UPI platform effortlessly. Conversational transactions via UPI are a significant step towards creating a more inclusive digital payment ecosystem, empowering users who face challenges with traditional interfaces. This will make digital transactions accessible to a wider audience, thereby promoting financial inclusion.

Who Benefits from Conversational UPI Transactions?

Conversational UPI is particularly beneficial for users who may not be tech-savvy or those with limited dexterity. This feature levels the playing field, ensuring everyone can leverage digital payment advantages.

How to Use Conversational UPI Transactions?

Users can activate the voice command feature in their UPI-enabled app to make transactions by speaking their commands, such as “Send 1000 rupees to Shanti.” The app will confirm the details before processing the request.

Embracing the Future of Digital Transactions

With the introduction of the HITACHI UPI ATM and NCPI’s Conversational Feature, the Unified Payment Interface ecosystem continues to push the boundaries of convenience and accessibility. These features not only cater to the diverse needs of users but also represent a significant step towards a more inclusive digital economy. So, whether in a bustling city or a remote village, Unified Payment Interface ensures you’re never far from the future of digital payments.

FAQs

Can I use UPI ATM at any ATM?

Yes, you can use it at any ATM that supports UPI transactions.

Can I set up a voice command in multiple languages for NCPI’s Conversational Feature?

Yes, NCPI’s Conversational Feature supports multiple languages for user convenience.

Can I use UPI ATM for international transactions?

No, this service is currently only available for domestic transactions within India.

What if my voice command is not recognized?

In such cases, users can manually input transaction details.

Are there any additional charges for using UPI ATM?

Such transactions do not incur additional charges beyond standard UPI fees.

Read more:  How Long-term investing helps create life-changing wealth – TOI. 

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Semicon India 2023: The Government Vision For Semiconductors

Semicon India 2023 Highlights: The Government’s Vision For Semiconductors

Semicon India 2023

A game-changing event has emerged on the horizon in the ever-evolving world of technology: Semicon India 2023. This event held more than just promise; it possessed the ability to change the industry.

As a result of Prime Minister Modi’s appealing address at the event, which resonated across international borders, India invited foreign chipmakers to join its spectacular growth path in the semiconductor industry.

Global Semiconductor Revenue by Segment

Semiconductor devices are categorized into discrete, integrated circuits (ICs), optoelectronics, and sensors & actuators. In 2023, the semiconductors market is expected to make around US$8 billion in revenue. Integrated Circuits will lead the market, with a projected volume of US$3 billion in the same year. The revenue is predicted to grow steadily at 8.31% annually from 2023 to 2027, resulting in a market volume of about US$11 billion by 2027.
China will generate the most revenue among all countries, reaching an impressive US$180 billion in 2023.

image 79
Source: Statista

India’s Expanding Semiconductor Market

PM Modi speech urged foreign chipmakers to invest in India. It demonstrates India’s desire to establish itself as a reliable chipmaking partner. The industry here is expanding thanks to important players and initiatives.

The PM’s approach coincides with government efforts to strengthen the chipmaking sector. These actions include funding research, encouraging local manufacturing, and creating a favorable environment for chipmakers to help make India a significant player in the global semiconductor industry.

PM Modi speech at the Semicon India 2023 captures India’s potential as a viable chip hub and dependable supplier. It emphasized India’s strengths, which include a qualified workforce, modern manufacturing capabilities, and a robust R&D infrastructure. A strong focus on data security, intellectual property protection, and collaborative activities strengthens India’s commitment to being a reliable semiconductor partner.

Also Read: Top Semiconductor Stocks in India

Explosive Growth in India’s Digital and Electronic Manufacturing

India has shown remarkable digital and electronic manufacturing progress, with a staggering surge in the country’s global electronic manufacturing share, soaring from $30 billion to over $100 billion. Another factor aiding growth is the notable increase in electronic manufacturing exports and the creation of over 200 mobile manufacturing units nationwide.

Global Industry Gathering at Semicon India 2023

Representatives from major corporations like Micron Technology, Applied Materials, Foxconn, SEMI, Cadence, and AMD participated in the conference. Over the three-day event concluding on July 30, industry experts specializing in semiconductor chip technology, display fabrication, chip design, and assembly converged worldwide to discuss India’s burgeoning prospects.

AMD’s Bold Investment in India’s Semiconductor Future

AMD, a prominent semiconductor player, unveiled its visionary investment strategy in India at the conference. The company plans to infuse approximately $400 million over the next five years to fortify its national research, development, and engineering operations.

AMD’s ambitious agenda includes establishing a cutting-edge campus in Bangalore, set to be the company’s world’s largest R&D facility. PM Modi speech also drew attention to the recently approved National Quantum Mission, which includes ideas for introducing semiconductor-related courses in over 300 Indian colleges.

Semicon India 2023: Catalysing India’s Chip Landscape

Under the theme “Catalysing India’s Semiconductor Ecosystem,” Semicon India 2023 convenes global leaders from academia, industry, and research institutions. The event serves as a platform to spotlight India’s chip-making strategy and policy, fostering valuable discussions and collaborations.

Foxconn Chairman’s Optimism on India’s Potential

Foxconn Chairman Young Liu is optimistic about India’s role in the chip-making industry. He highlights collaboration and India’s consumer market as key factors. Liu calls for joint efforts to create a favorable manufacturing environment based on his outlook on the growing opportunities in India’s chip-making sector.

India’s Chip Industry: A Bright Future Ahead

Despite joining the chip game relatively later, India is setting its sights high. The chip market, valued at $23 billion, has ambitious plans to skyrocket to a staggering $80 billion by 2028.

Micron Technology’s CEO, Sanjay Mehrotra, revealed plans for a substantial $2.7 billion investment in Gujarat, focused on chip testing and packaging. This intelligent move plans to create about 5,000 much-needed jobs in the state.

Sahasra’s Exciting Journey

Sahasra Semiconductors is gearing up to assemble memory chips in Rajasthan’s Bhiwadi plant by September or early October. With a targeted revenue of Rs 500 crore over four to five years, the company benefits from the SPECS scheme, securing a 25% capital expenditure incentive.

A total investment of Rs 600 crore is planned, with Rs 110 crore already invested in the initial chip assembly phase. CEO Varun Manwani shares the company’s intention to join the chip-making incentive scheme, wherein the government covers 50% of project costs.

Final Words

The focus on Semicon India 2023 and PM Modi speech highlight India’s strength in the semiconductor industry. With strategic investments and a collaborative mindset, India is poised to redefine the global semiconductor narrative.

FAQs

What are the opportunities for foreign investors in the Indian semiconductor industry?

Foreign investors have numerous prospects in the Indian semiconductor business. Among these possibilities are:
● establishing chip manufacturing plants
● Research and development funding
● Collaboration with Indian firms
● fostering the growth of a home design ecosystem

What are the risks of investing in India’s semiconductor industry?

The dangers of investing in the Indian semiconductor industry include the following:
● Expensive labor costs
● a scarcity of skilled labor
● a lack of a robust domestic design ecosystem

What is driving semiconductor demand in India?

Three industries drive semiconductor demand in India: smartphones and wearables, automotive components, and computers and data storage.

How does an expanding domestic semiconductor sector affect consumers?

Consumers can profit from a rising domestic semiconductor industry by accessing high-quality electronic products at affordable prices while encouraging local innovation.

How does a robust local semiconductor sector aid India’s other industries?

A solid domestic semiconductor industry can benefit other sectors by providing access to locally manufactured components at competitive prices, reducing reliance on imports, encouraging innovation through cross-sector collaboration, creating job opportunities, and contributing to overall economic growth.

What is the role of India in the global semiconductor market?

The global semiconductor market is seeing India grow into a prominent player. While the country is still establishing its semiconductor manufacturing capabilities, it has a strong presence in semiconductor design and software services, contributing to the industry’s innovation and growth.

Read more:  How Long-term investing helps create life-changing wealth – TOI.

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India's GDP

Unveiling India’s GDP Growth: Trends And Impact

Introduction

India’s GDP has witnessed a remarkable surge, surpassing all expectations and clocking a growth rate of 7.2% in the fiscal year.

In this article, let’s briefly overview India’s GDP performance and highlight its significance.  Additionally, let’s understand India’s GDP growth in the global economy, shedding light on its implications for its position in the global market. Stay tuned for an analysis of GDP data and its impact.

India GDP Data Beats Expectations

India witnessed a significant GDP boost in the fourth quarter of the financial year, surpassing projections. The GDP at Constant (2011-12) Prices in Q4 2022-23 is estimated at ₹43.62 lakh crore, compared to ₹41.12 lakh crore in Q4 2021-22, which is a growth of 6.1%. This substantial increase contributed to the yearly change in Real GDP or GDP at Constant (2011-12) Prices of 7.2% or ₹160.06 lakh crore for the fiscal year 2022-23.

Union Finance Minister, Ms. Nirmala Sitharaman, said India’s GDP touched the US$ 3.75 trillion mark in 2023, up from around US$ 2 trillion in 2014. According to the Finance Ministry, India’s economy has been ranked as the fifth largest in the world from the tenth largest.

In terms of current prices, India’s GDP was US$ 3,737 billion, which ranks above the UK (US$ 3,159 billion), France (US$ 2,924 billion), Canada (US$ 2,089 billion), Russia (US$ 1,840 billion), and Australia (US$ 1,550 billion) at current prices.

 Factors Contributing To India’s GDP Surge

Agricultural and construction sectors

The unexpected growth of 5.5 % in the agricultural sector during the January-March rabi months and the significant surge of 10.4 % (₹ 3.9 lakh crore) in the construction sector played vital roles in India’s outstanding GDP performance. These sectors demonstrated resilience and contributed positively to the overall growth.

  1. Ongoing structural reforms and favorable government policies: Continuous structural reforms and favorable government policies have enabled India to outshine other major economies. These reforms likely created an environment conducive to economic growth.
  2. Resilience amid global challenges: While Europe and the United States faced challenges due to the Ukraine war and financial difficulties, India managed to defy these global factors and maintain its growth momentum. This resilience showcases India’s potential to act as an engine of world growth.

Two years ago, India experienced a low-growth phase, reaching negative figures. Therefore, the current growth rate signifies a significant improvement and instills optimism for India’s future economic performance.

Private final consumption expenditure (PFCE) growth slowed down over the year, indicating a distribution challenge and a link to the decline in the quality of jobs. Additionally, there are concerns about a slowdown in key infrastructure sectors and the manufacturing sector’s contraction in three quarters. These factors may pose risks to future growth and undermine the encouraging aspects of the GDP data.

This graph shows India’s GDP growth rate in 2023 outpaces emerging and major economies.

image 22
Source: Forbes

Market Reactions and Implications: India’s GDP Exceeding Expectations

Markets reacted to India’s GDP data exceeding expectations in a mixed way. While optimism surrounds the services sector’s strong performance and improved foreign capital inflows, concerns remain regarding the slump in net exports and the manufacturing sector.

The market reactions to the GDP data have implications for investors and businesses. The strong performance of Indian companies, with top-line growth of 12% in Q4FY23 and a net profit increase of 19%, reflects positively on the market. Improved foreign capital inflows of $6 billion in FY24 also contribute to market confidence.

The implications of the GDP data on key sectors of the Indian economy are twofold. The services sector shows resilience and expects to continue driving growth, while net exports and the manufacturing sector pose challenges. Care Rating projects that the overall economic growth in FY24 will moderate to 6.1%, influenced by global economic uncertainties and potential spillovers from the external sector.

The graph below shows that India’s GDP exceeded RBI and other agencies’ expectations.

image 23
Source:  Business Standard

Final Words

India’s GDP has surged, exceeding expectations from RBI and other major agencies and showcasing remarkable growth. Factors such as resilient agricultural and construction sectors, ongoing reforms, and favorable government policies have contributed to this achievement.

However, private consumption, infrastructure, and manufacturing challenges pose risks. Market reactions have been mixed, with optimism for services and foreign capital inflows, while concerns persist for net exports and manufacturing. Despite uncertainties, India’s GDP growth signifies a positive economic trajectory and future potential.

FAQs

What is the outlook for India’s growth in GDP for the coming years?

Fitch Ratings downgraded its forecast for India’s GDP growth in 2023-24 from 6.2% to 6%, citing headwinds from rising inflation and interest rates and weak global demand. The agency expects the Indian economy to rebound to 6.7% in 2024-25.

What are the implications of the global economic uncertainties for growth in the GDP of India?

Global economic uncertainties are a challenge for India’s GDP growth because they can slow global trade and investment. This can hurt India’s exports and investment, dampening economic growth.

What are the implications of the slowdown in private consumption for  GDP growth in India?

The slowdown in private consumption is a challenge for India’s GDP growth because it is a major driver of economic growth. When people consume less, they spend less money, which reduces the demand for goods and services. It can lead to businesses slowing down their investment and hiring, further dampening economic growth.

What are some of the risks to India’s GDP growth?

 Some of the risks India faces in the context of GDP growth include:
●  The global economic slowdown.
●   Rising inflation.
●   Geopolitical tensions.
●   Natural disasters.

What are some of the opportunities for India’s GDP growth?

Some of the opportunities for India’s GDP growth include:
●  The continued growth of the global economy.
●  India’s expanding middle class.
●  The development of new technologies.
●  The opening up of new markets.

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US Debt Crisis

US Debt Crisis Vs. Indian Bank Rally: A Comparison

The US debt crisis and the Q4 rally in Indian bank stocks have captured significant attention in the global financial landscape. This article provides a concise overview of these events and their profound significance.

Delving into the US Debt Crisis and the debt ceiling, we analyze the potential implications that may arise. Additionally, we explore the Q4 rally in Indian bank stocks, examining its drivers, such as the Nifty and Bank Nifty.

What is the US Debt Crisis and Its Purpose?

The debt ceiling refers to a statutory limit imposed on the debt the United States government can legally borrow. It sets a cap on the total outstanding debt the government can accumulate to fund its expenditures, including social programs, defense, and interest payments. 

The debt ceiling ensures fiscal discipline and control by restricting the government’s borrowing capacity.

US Debt Crisis: A Brief History of Crisis and Resolution

YearEvent
1917Debt ceiling established
1939First debt limit increase
1974Debt ceiling linked to the budget process
1985Gramm-Rudman-Hollings Act
1995Government shutdown over the debt ceiling
2011Debt ceiling crisis and downgrade
2013The government shutdown and debt ceiling
2019Debt ceiling suspended until 2021
2021The Debt ceiling was reinstated in August
2023Debt ceiling crisis averted

The potential implications of the US Debt Crisis:

The US Debt ceiling could lead to a government shutdown, disrupt essential services, and cause market volatility. It may also impact global financial stability, trade, investments, and economic growth due to a potential downgrade in the US credit rating and increased borrowing costs worldwide.

US Congress prevents US default by raising the debt ceiling

The US Congress has approved legislation to lift the government’s $31.4 trillion debt ceiling, preventing a historic default. The bill passed with bipartisan support, with the Senate voting 63-36 in favor. The Treasury Department had warned of the inability to pay bills if action was not taken by June 5.

The legislation suspends the debt limit until January 1, 2025, providing relief and avoiding a default. President Joe Biden praised the timely action and will sign the law. The next budget fight looms, as Senate Republican Leader Mitch McConnell expressed concerns about Democrats’ spending.

The bill does not include tax hikes, but it contains reductions in discretionary spending. Failure to raise the debt ceiling could have triggered global financial repercussions. The deal was reached after weeks of negotiations between Biden and House Speaker Kevin McCarthy, resulting in a bipartisan agreement.

*Note: Bipartisan agreement is when both major political parties in the US agree on a piece of legislation. It can help pass laws and build trust.

Meanwhile, India’s growing economy is seeing a surge in banking stocks. Let us look at Indian Banks’ Q4 rally.

Indian Banks Thrive: Q4 Rally

The Bank Nifty index reached a record high of 44,483, extending its rally in recent sessions.  Strong Q4 results, a retracement of the US dollar, and continuous buying by foreign institutional investors (FIIs) have propelled the banking sector’s outperformance.

This trend will continue as investors show interest in mid-cap and small-cap stocks. The positive Q4 numbers indicate growth and demand in the Indian economy, likely fueling credit growth in Indian banks.

Financial Experts predict that the Bank Nifty index could reach 46,000 in the short term. The rally in Indian banks during Q4 has positioned them ahead of Nifty and Sensex, making them an attractive choice for investors. The initial focus on large-cap banks has shifted towards low-priced mid-cap and small-cap stocks.

India’s Banking Sector Shows Strong Recovery

Banking stocks have shown a strong rally due to rising interest rates, an improved NPA situation, and a positive market outlook.

In seven years, the Indian banking system, especially public sector banks (PSBs), has shown signs of recovery in 2023. The government and RBI worked to reduce the high level of non-performing assets (NPAs) in PSBs from 14.6% in 2018 to 4.41% in 2023.

To support the PSBs, the government infused ₹3.1 lakh crores from 2017 to 2021. The RBI implemented reforms to improve credit discipline, responsible lending, and governance. Bank mergers also helped reduce NPAs by 10%. As a result, Indian banks have reported their best results in a decade, according to S&P Global Ratings.

Retail loan growth has outpaced industrial loans, signaling economic growth. Overall, the banking sector is expected to perform well in the second half of 2022, driven by loan growth and improved asset quality.

Risk Factors and Future Outlook: USA to Indian Banking System

The US crisis risks global markets, including India’s Nifty index. Government shutdown, delayed payments, and loss of confidence in the US dollar. Financial market disruptions, increased borrowing costs, and reduced business and consumer confidence are some of the risks India may face.

Turbulence in international markets and cautious investor sentiment

Assessing the sustainability of the Q4 rally in Indian bank stocks is a must. Rising interest rates, improved NPA situation, and favorable market outlook. Evaluating whether the rally is based on fundamental improvements or market sentiment. Economic uncertainties, regulatory changes, and challenges in credit growth may impact sustainability. 

Final Words

The US debt ceiling crisis risks global markets, including India’s Nifty. The Q4 rally in Indian bank stocks indicates a recovery, but sustainability depends on economic uncertainties and regulatory changes. USA’s timely resolution has helped avoid severe consequences and impact on global markets.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considerea d as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

What is the potential impact of a debt ceiling default?

A debt ceiling default could result in a weakened U.S. dollar, higher interest rates, reduced economic growth, and diminished confidence in the government.

What are the opportunities for India’s banking system?

Opportunities for Indian banks include corporate credit demand, rising incomes, digital banking adoption, and government infrastructure spending.

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IMF -India, China to contribute half of global growth

India And China’s Role In Global Growth: IMF Insights

Introduction

The International Monetary Fund (IMF) has predicted that the Asia-Pacific region will experience a growth of 4.6% in 2023, and India and China will play a significant role in contributing to half of the global growth.

In particular, India’s GDP is expected to grow in 2023 and 2024, driven by a rebound in consumption, investment, and government support measures. China’s GDP is also expected to grow in the same period, with a rebound in exports, infrastructure spending, and private consumption being the main drivers.

The growth of India and China is critical to global growth, given that they are the world’s two most populous countries with large consumer markets. In addition, both countries are major exporters and have significant global economic influence. Moreover, the growth of India and China can have a ripple effect on other countries in the region and beyond.

IMF predicts India’s GDP growth could rebound in FY24

According to the International Monetary Fund, India’s GDP is projected to grow in 2023 and 2024, with a rebound in consumption, investment, and government support measures driving the country’s growth.

India’s economy expects to expand rapidly, driven by strong domestic demand, a revival in exports, and increased government spending. The IMF has raised its growth projections for India and sees its economy rebounding from the pandemic-induced contraction.

The report also states that China is expected to lead the global recovery, contributing significantly to global growth in the coming years. As India and China’s contributions to global development increase, the Asia-Pacific region is expected to contribute 70% of global change.

This development is significant for the global economy, as the region’s growth expects to positively impact the global economy, driving economic recovery and growth. The IMF’s projections for India’s growth highlight the country’s potential to drive global economic growth as it continues to recover from the impact of the pandemic.

The Indian GDP growth rate has fluctuated from 2019-20 to 2023-24.

image 28
Source: PIB

This growth indicates that the Indian economy is gradually recovering from the pandemic-induced slump, and it expects to show a strong rebound in the upcoming quarters.

IMF Expects China’s GDP to Grow in 2023-24, Boosting Half of Global Growth Along with India

This effect comes after the Covid-19 pandemic plunged the world into an economic crisis, with governments scrambling to mitigate the damage.

According to the IMF’s projections, China has weathered the storm and expects to play a significant role in the region’s economic growth. The country’s GDP intends to grow in 2023 and 2024, driven by a rebound in exports, infrastructure spending, and private consumption.

China’s GDP growth rate has fluctuated from 2019 to 2024.

image 27
Source: Statista

Additionally, India also hopes to contribute significantly to the region’s growth. This growth forecast is good news for the world economy, which is struggling to recover from the pandemic’s impact.

Why India and China are critical to global growth?

The IMF expects India and China to contribute half of the world’s economic growth in the near future. As the world’s two most populous nations with massive consumer markets and significant export capabilities, India and China significantly impact the global economy.

Challenges for India and China’s Economic Growth

Despite significant contributions to global economic growth, India and China face substantial challenges. India, in particular, is struggling with high inflation, mounting debt levels, and a weak banking sector. These issues could impede the country’s economic progress and limit its contribution to global growth.

However, the International Monetary Fund (IMF) predicts that India and China could still account for half of global growth in the near future, underscoring the importance of these two economies to the global economy.

While China is grappling with challenges such as an aging population, income inequality, and environmental degradation, India’s ability to overcome its obstacles will be crucial to sustaining its economic growth and continued contribution to the world’s economy.

India and China: Opportunities in Manufacturing and Innovation

While both countries face significant challenges, they also have opportunities to drive their economies forward. For example, India has the potential to become a global manufacturing hub and attract foreign investment, particularly considering the recent policy reforms aimed at increasing the ease of doing business.

In addition to manufacturing, India has a rapidly growing service sector and a young, tech-savvy population that is driving innovation and entrepreneurship. Meanwhile, China is investing heavily in technological innovation and shifting towards a consumption-driven economy, which could increase import demand from India and other countries.

Since China faces several challenges, India can capitalise on the opportunity to emerge as a critical economic powerhouse. It has the capacity to create jobs and drive growth not just within its borders but around the world too.

Final Words

The IMF predicts India and China to contribute significantly to global economic growth in 2023 and beyond. Whether both countries can overcome the challenges and gain from their opportunities is to be determined.

FAQs

How does India’s economic growth compare to other countries in the Asia-Pacific region?

The IMF predicts that the Asia-Pacific region will grow by 4.6% in 2023, and India’s projected 6.5% growth rate is higher than the regional average.

What are some factors contributing to India’s economic growth?

Several factors drive India’s economic growth, including government reforms to attract foreign investment, a growing middle class with increased purchasing power, and a burgeoning tech industry. Furthermore, India’s large population and relatively low labor costs make it an attractive destination for businesses seeking to expand.

How does India’s economic growth compare to China’s, and what factors drive their growth?

India’s projected economic growth rate in 2021 is 12.5%, higher than China’s expected growth rate of 8.5%. Factors driving India’s growth include structural reforms, government spending, and a rebound in consumer spending, while exports and government stimulus drive China’s growth.

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Indian Economy Exports

Will Indian Economy Exports Cross $760Bn In FY23?

India’s export industry plays a vital role in the growth and development of the Indian economy. It’s a significant contribution to the nation’s GDP. Moreover, with India’s growing presence in the global trade market, exports have become an essential source of foreign exchange earnings.

Furthermore, exports promote entrepreneurship, innovation, and technological advancements. The Indian government has recognized exports’ importance and implemented policies and initiatives to support the industry’s growth. With India’s increasing participation in the global trade market, the future looks promising for the country’s export industry.

Indian Economy Exports in FY23 – The Forecasted Value and Factors Contributing to Growth

India’s goods and services export industry has been growing steadily over the past few years, and the latest reports suggest that the sector is set to reach new heights in FY23. The projected value of $760 billion in exports represents a significant increase from the previous years’ figures, indicating that India’s economy continues to show signs of resilience and growth.

The efforts led by Piyush Goyal, India’s Minister of Commerce, have been instrumental in driving this growth forward. Additionally, the country’s diverse manufacturing and service sectors have contributed significantly to the increase in exports.

image 32
Source: Ministry of Commerce & Industry         

These positive figures demonstrate India’s continued potential for economic growth and present new opportunities for businesses and investors looking to tap into the country’s thriving export industry.

The graph below depicts progress made by both merchandise and services from April-February.

image 33
Source: Ministry of Commerce & Industry

The table shows the growth rates of major sectors contributing to Indian economy exports during February 2023 and April-February 2022-23.

SectorFebruary 2023 growth %April-February 2022-23 growth %
Oil Meals220.9644.12
Iron Ore51.37–
Spices30.85–
Electronic Goods29.8549.54
Fruits  & Vegetables17.4211.16
Gems & Jewellery13.76–
Rice11.7515.88
Ceramic Products & Glassware11.57.62
Other Cereals10.6512.15
Oil Seeds9.413.36
Cereal Preparations & Miscellaneous Processed Items5.2216.12
Marine Products4.963.19
Drugs & Pharmaceuticals4.723.14
Minerals Including Processed Minerals -Mica, Coal & Other Ores2.97–
Tobacco–34.3
Leather & Leather Products–11.08
Tea–10.03
Coffee–8.17
Organic & Inorganic Chemicals–3.91
Rmg of All Textiles–3.28
Source: Ministry of Commerce & Industry

According to the minister, the industry has warmly received India’s Free Trade Agreements with the UAE and Australia. Moreover, he emphasized that India’s FTAs were implemented with careful consideration and stakeholder involvement without sacrificing the quality of the agreements.

Indian Economy Exports Growth in FY23: Sector-wise Analysis and Key Drivers

The services sector plays a significant role in India’s economy, contributing more than 50% of the country’s GDP. This sector includes a range of industries such as trade, tourism, aviation, telecom, shipping, ports, communication and storage, financing, insurance, transportation, real estate, business services, software services, and IT-BPM.

image 34
Source: Ministry of Commerce & Industry

The IT services and BPO industry alone employed over 4.47 million people directly and 12 million indirectly in 2020-21, accounting for approximately 8% of India’s GDP and more than 52% of the global outsourcing market. In the first half of 2020-21, the sector grew 10.8%. The tourism and hospitality services industry witnessed a remarkable recovery after the COVID-19 pandemic, with employment in the sector increasing by 48% in March 2022.

The graph below depicts the industry-wise share of total services sector exports.

image 35
Source: IBEF

India’s economy heavily relies on exporting services, such as travel, transportation, insurance, software-IT-BPM, business services, financial services, and communication. In 2020-21, India exported services worth US$206 billion, a figure that reached the projected target of US$250 billion in 2021-22 and is predicted to reach US$325 billion by 2022-23.

  • In 2021-22, India’s services exports generated a trade surplus of US$105.2 billion, a significant increase of 24% from 2019-20.
  • The services sector in India is the leading recipient of FDI inflows, with India being the fifth-largest recipient worldwide.FDI inflows into the industry totalled $16.73 billion in the first half of 2021–2022, accounting for 54% of all FDI into India.
  • One of the industries that received the most FDI was the computer software and hardware services sector, which in 2021–2022 received roughly 25% of all FDI into India. India’s overall FDI inflows for the same period were $83.57 billion.

Indian Economy Exports Top Services: Dominance in IT, Software and BPO Industries

India’s services, including software, computer, IT, BPO and call centres, are exported to many parts of the world, with the USA, the UK, and Japan being the largest importers. The availability of a large workforce, cheap labour, and English language skills makes India’s services popular worldwide.

image 36
Source: IBEF

During 2020-21, the USA and Canada imported $75 billion of software services from India. Other significant software service importers are Canada, Asia, Australia, and New Zealand. Other key export markets for India include Hong Kong, Singapore, Germany, Bangladesh, the Netherlands, and Nepal.

Indian Economy Exports: Government Initiatives

The Indian government has launched several initiatives to boost service exports, such as the Service Export from India Scheme (SEIS), Software Technology Park (STP) Scheme, Digital India Internship Scheme, and the PhD Scheme.

Additionally, the government is promoting trade deals with various countries, engaging with states, and implementing schemes like PLI, RoDTEP, and Pradhan Mantri Gati Shakti’s plan to achieve the target of making India a $5 trillion economy by 2025. The Export Preparedness Index (EPI) and LEADS have also been launched to evaluate state export readiness.

Indian Economy Exports: Challenges and Outlook

India faces challenges such as improving infrastructure and ease of business, but it also has opportunities to grow exports and achieve economic targets. India can leverage its skilled labour, diversify exports to new markets, and focus on product quality, innovation, and branding to overcome competition in the global market.

The government’s initiatives, such as the PLI scheme and recent trade agreements, support domestic manufacturing and greater market access to Indian products.

Final Words

In conclusion, India’s export industry plays a crucial role in the country’s economic growth and development. The sector shows promising growth and resilience, with diverse industries contributing to its success.

FAQs

Which crop is India’s largest exporter?

During 2021-22, rice accounted for over 19% of India’s total agricultural exports, making it the most important agricultural product exported from India.

Who handles exports in India?

The Central government exercises the powers conferred by section 5 of the Foreign Trade (Development and Regulation) Act 1992 to notify the Foreign Trade Policy, which regulates exports and Imports.

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Frequently asked questions

Get answers to the most pertinent questions on your mind now.

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What is an Investment Advisory Firm?

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.