India’s economic momentum continued to flourish in FY25, showcasing resilience and broad-based growth across sectors. After a cumulative real GDP growth of around 27% since FY21, the nation has not only recovered from the pandemic’s economic disruption but also achieved significant structural improvements in many productive areas by the close of FY24. The foundation laid during these years is now enabling India to maintain a strong economic trajectory, with the GDP at constant prices growing by 6.7% in Q1 FY25.

All major non-agricultural sectors reported growth rates exceeding 5%, signaling a broad-based economic expansion. This growth pattern underlines India’s increasing capacity in sectors like manufacturing, services, and infrastructure. Alongside these sectors, advancing monsoon conditions have spurred kharif sowing, which has improved the outlook for agricultural production, adding a further boost to the economy.

Reflecting the vibrant economic activity, the major components of aggregate demand—including private consumption, fixed investment, and exports—have all gained momentum. Despite government expenditure increasing slowly, owing to the general elections during April-June, private investment has surged, with overall investment growing by 7.5% in Q1 FY25. This marks a clear sign of the strengthening private investment cycle, which is essential for long-term economic stability.

High-frequency indicators on the supply side continue to project robust economic growth. Key metrics such as steady GST collections, an upward trend in the Purchasing Managers’ Indices (PMI), and increased air and port cargo traffic reflect sustained productivity and economic activity. These indicators suggest that the momentum built in the first quarter will persist, keeping India’s growth prospects strong in the near term.

The global trade environment remains dynamic, influenced by factors such as geopolitical conflicts, trade disputes, climate change, and the rapid advancement of Artificial Intelligence. Protectionist trade policies and shifting global supply chains are reshaping international trade, with the World Trade Organization (WTO) predicting gradual global trade growth for 2024 and 2025.

Despite these global challenges, India’s export of goods has shown minimal growth in the first five months of the year compared to the same period in 2023, largely due to weak global demand and persistent domestic challenges in scaling up production and competitiveness. Meanwhile, strong domestic demand has led to a rise in merchandise imports. However, urban consumption is showing signs of weakening, as evidenced by a decline in automobile sales in the same period.

Capital flows into India have remained steady, and Foreign Direct Investment (FDI) inflows have seen an uptick. Foreign portfolio investors were net buyers from April to August 2024, contributing to a rise in foreign exchange reserves, which have reached historically high levels. This inflow of capital is a critical factor in supporting India’s economic growth trajectory, as it bolsters the country’s ability to fund investments and maintain currency stability.

The labour market is showing signs of recovery, with net payroll additions under the Employees’ Provident Fund Organisation (EPFO) rising in Q1 FY25. This signals a rebound in formal job creation, which is vital for sustained economic growth and improving living standards. Headline retail inflation remained low at 3.7% in August 2024, with food inflation softening and core inflation remaining steady.

Looking ahead, replenished reservoir levels and increased kharif sowing acreage are positive signs for the food price outlook. However, the uneven spatial distribution of the monsoon could pose risks to agricultural output, which will require close monitoring. As the rural economy strengthens and public expenditure picks up, India’s growth is expected to remain robust in the coming quarters. With strong private consumption, rising investment, and steady global capital inflows, India is well-positioned to maintain its growth momentum through FY25. However, external factors such as global trade dynamics and domestic challenges in production and productivity will require continuous focus to ensure sustainable long-term growth.

This broad-based economic expansion, paired with a favorable inflation outlook and improving labour market conditions, paints a promising picture for India’s economic prospects in the coming months.

The International Monetary Fund (IMF) has recently upgraded India’s economic forecast, predicting a remarkable 6.8% GDP growth for the financial year 2024-25 (FY25). This upward revision marks a significant 30 basis point increase from their previous estimate, firmly establishing India as the world’s fastest-growing major economy, outpacing China’s projected growth of 4.6%.

The IMF attributes India’s impressive growth trajectory to sustained domestic demand and a burgeoning working-age population. Moreover, the IMF has marginally increased its global growth projection to 3.2% for 2024, indicating the resilience of the global economy despite ongoing challenges. India’s GDP growth trajectory is expected to remain strong, with projections of 7.8% in FY24, 6.8% in FY25, and 6.5% in FY26. This positive outlook is echoed by rating agencies like Fitch and Barclays, which have also revised India’s FY24 growth forecast upwards to 7.8%, aligning with the government’s optimistic stance.

However, China’s growth prospects have been dampened by a slowdown in its property sector, prompting the IMF to remain open to potential upward revisions based on China’s Q1 2024 performance. While highlighting the global economy’s resilience, the IMF also underscores the challenges posed by rising energy prices and the need for sustainable growth.

Overall, the IMF’s optimistic revision underscores India’s strength in domestic consumption and demographics, indicating that India’s lead as the world’s fastest-growing major economy is likely to persist in the near future.

According to provisional government data, India emerged as a net importer of finished steel in the financial year 2023/24, concluding on March 31.

The data revealed a significant increase in finished steel imports, reaching 8.3 million metric tons between April and March, marking a notable 38.1% rise compared to the previous year.

While India’s steel mills have raised concerns and urged government interventions to counter the influx of imports, the Ministry of Steel has maintained its stance against imposing restrictions, citing robust local demand. As the world’s second-largest crude steel producer, India continues to shine with sustained demand from its construction and automotive sectors.

During the period, steel consumption in India surged by 13.4% to 136 million metric tons, indicating strong demand in one of the world’s fastest-growing economies. Forecasts suggest that India’s steel demand will remain robust, outpacing global economic growth in the upcoming fiscal year.

In the financial year 2023/24, India’s finished steel exports amounted to 7.5 million metric tons, witnessing an 11.5% increase year-on-year. Moreover, crude steel output rose to 143.6 million metric tons, up by 12.9% from the previous year.

The data also highlighted a significant increase in finished steel output, totaling 138.5 million metric tons in the financial year 2023/24, reflecting a robust 12.4% growth compared to the previous year.

Preliminary data from the Petroleum Planning and Analysis Cell (PPAC) of India’s oil ministry revealed a marginal decline in total consumption, a key indicator of oil demand, in March. Total consumption stood at 21.09 million metric tons (4.99 million barrels per day), down from 21.22 million tons (5.02 mbpd) compared to the previous year.

Despite the slight dip in March, India’s fuel consumption for the 2024 financial year showcased a positive trajectory, marking a 5% increase primarily fueled by heightened sales in automotive fuel and naphtha.

Fuel demand for the fiscal year ending in March reached a record high of 233.276 million tons (4.67 mbpd), contrasting with 223.021 million tons (4.48 mbpd) recorded in the preceding year. Notably, diesel sales, essential for trucks and commercial vehicles, saw a 3.1% year-on-year increase, totaling 8.04 million tons in March and rising by 4.4% for the fiscal year.

March also witnessed a surge in gasoline sales, up by 6.9% year-on-year to 3.32 million tons, contributing to a 6.4% increase for the fiscal year. Similarly, sales of bitumen, crucial for road construction, remained stable in March but saw a notable 9.9% increase for the fiscal year.

Cooking gas, or liquefied petroleum gas (LPG), experienced an 8.6% rise in sales to 2.61 million tons, while naphtha sales surged by 5.5% to approximately 1.19 million tons compared to the previous March.

However, there was a downturn in the usage of fuel oil, declining by 9.7% year-on-year in March and 6.3% for the fiscal year.

India has emerged as the second most sought-after manufacturing destination globally after toppling the United States and China, the 2021 Global Manufacturing Risk Index by Cushman and Wakefield shows. This feat underscores India’s robust economic expansion and improving competitiveness.

The ‘Make in India’ initiative offering incentives to domestic firms and multinationals has notably increased foreign investment inflows and positioned India as a manufacturing powerhouse. Government schemes have also produced a conducing business climate.

Buoyed by over 7% annual GDP growth rates, India’s manufacturing sector now accounts for nearly 14% of economic output. The sustained expansion is reflected in the 56.3 Purchasing Managers’ Index reading for November.

As per the Risk Index report, India leveraged its strong pharmaceutical, chemical and engineering capabilities amid US-China trade tensions to climb up the manufacturing destination ranking. However, further reforms in land and labor laws are required to address residual challenges.

Industry experts opine that India ticked numerous boxes like market access, low-cost skilled manpower, diversified sectors and policy support to achieve this milestone. With its giant domestic consumer base long-term growth prospects, they believe India can consolidate its status as a formidable global manufacturing hub.

On December 6, 2023, gold and silver rates in India stood at:

• Gold (22 carats): ₹5,745 per gram
• Gold (24 carats): ₹6,267 per gram
• Silver (1 gram): ₹74.3 per gram
• Silver (1 kg): ₹79,250 per kg

Multiple domestic and international factors influence the precious metal prices in India, including:

• Global economic policies and growth outlook
• World demand and supply dynamics
• Rupee movement against the US dollar

A stronger rupee keeps gold/silver rates in check while a weaker rupee spikes prices.

Top Metro City Gold Rates:

New Delhi:

• 22 carats: ₹58,600 per 10 grams
• 24 carats: ₹63,858 per 10 grams

Mumbai:

• 22 carats: ₹58,450 per 10 grams
• 24 carats: ₹63,858 per 10 grams

Kolkata:

• 22 carats: ₹58,450 per 10 grams
• 24 carats: ₹63,858 per 10 grams

Chennai:

• 22 carats: ₹59,150 per 10 grams
• 24 carats: ₹63,858 per 10 grams

These city-wise rates serve as benchmarks, though local prices may vary slightly. It’s prudent for buyers to verify prevailing rates before purchases.

The backbone of any economy, both in India and across the globe, is undeniably the Micro, Small, and Medium Enterprises (MSMEs) and Small and Medium Businesses (SMBs). These entities contribute significantly to job creation, economic growth, and innovation. However, these enterprises face their share of challenges, often struggling to access resources, technology, and opportunities that can enable them to thrive in an increasingly competitive world. Empowering MSMEs and SMBs has become a paramount mission, not only for the sustainability of individual businesses but also for the overall health of economies worldwide.

In India, the MSME sector accounts for a substantial share of employment and industrial output. It’s agility and adaptability are key to the nation’s economic resilience. Across the world, SMBs play a similar role, serving as the driving force behind local economies.

Recognizing their significance, policymakers and industry leaders are championing initiatives to uplift these enterprises.

Access to Finance: One of the foremost challenges faced by MSMEs and SMBs is access to finance. Traditional financial institutions often hesitate to extend credit to these businesses due to perceived risks. This hurdle limits their growth prospects. Governments and financial organizations are working towards creating specialized lending schemes, reducing interest rates, and providing collateral-free loans to enable these enterprises to secure the necessary funds.

Digital Transformation: Embracing technology is no longer a choice; it’s a necessity. MSMEs and SMBs need to adopt digital tools and platforms to streamline their operations, connect with customers, and expand their reach. Digital transformation  enhances their competitiveness, enabling them to tap into new markets and leverage data-driven insights for informed decision-making.

Skill Development: Empowering MSMEs and SMBs involves equipping them with the right skill sets. Training programs, workshops, and online resources play a crucial role in enhancing the capabilities of entrepreneurs and their teams. These initiatives empower them to navigate complexities, innovate, and adapt to changing market dynamics.

Global Outreach: Breaking geographical barriers is another vital aspect of empowering these enterprises. Governments are forging international trade agreements, simplifying export-import procedures, and providing assistance to enable MSMEs and SMBs to access global markets. Such initiatives enhance their visibility and help them become part of the global supply chain.

Enhancing Customer Experiences: Empowerment cannot be achieved without focusing on the customer experience. Technological solutions are fostering customer-centricity, with customer apps offering improved communication, transparency, and engagement. These apps enhance the overall experience, building brand loyalty and driving customer satisfaction.

Pioneering empowerment for MSMEs and SMBs in India and worldwide:

In this journey towards empowerment, we feel extremely proud to witness how our comprehensive field service management application, FieldWeb, is contributing to the empowerment of these enterprises by simplifying and automating several business aspects. The initiative is strongly focused on ensuring that MSMEs and SMBs can focus on growth rather than getting bogged down by administrative complexities.

As we navigate the intricate landscape of empowering MSMEs and SMBs, it is clear that technology-driven solutions such as FieldWeb play a pivotal role by digitising the way all small and medium businesses and enterprises in the field services industry manage, generate leads, market, sell, recruit, finance, invoice, get paid, and organise their businesses.

In my opinion, MSMEs and SMBs are not just businesses; they are engines of innovation and change. Empowering them is not merely an economic initiative and need of the hour; rather, it is a thoughtful step towards a more equitable and prosperous future for all.

Together, as we harness the power of technology, collaboration, and policy initiatives, we pave the way for a vibrant ecosystem that uplifts MSMEs and SMBs, propelling them to greater heights on the global stage.

Authored by Sandeep Singh – Co-founder and CBO FieldWeb by Corefield Technologies

India’s proposal to establish a standardized global digital public infrastructure framework within the G20 leaders’ communique is facing resistance from certain developed countries.

They argue that this move may hinder the growth of global private payment processors like Visa and Mastercard. The pushback comes as more countries are adopting India’s United Payments Interface (UPI), causing Visa and Mastercard to lose market share.

Lobby groups in wealthy nations are concerned about India’s global payments infrastructure proposal and its potential impact on the dominance of these private payment processors.

Despite the resistance, India remains committed to advocating for its vision of an interoperable digital public infrastructure on a global scale. The outcome of this proposal will have significant implications for the future of digital payments and the competitive landscape among international payment service providers.

Inflation is the sustained increase in the general price level of goods and services over time. It is caused by factors such as increased demand, higher production costs, and expectations of future price increases. It can have both positive and negative effects on the economy, requiring measures to manage and maintain price stability.

The acceptable level of inflation differs among countries and depends on factors like economic conditions, monetary policy objectives, and government goals. There is no universally applicable percentage. Generally, central banks and governments strive to maintain a stable inflation rate within a targeted range.

Developed economies often aim for around 2% inflation as desirable. However, developing countries or those with unique circumstances may have different inflation targets. It is crucial for each country to evaluate its economic situation and establish an inflation target that encourages price stability and fosters sustainable economic growth.

As per the ‘World of Statistics’ the current inflation rate of the countries mentioned below are –

Inflation rate:

🇻🇪 Venezuela: 404%
🇱🇧 Lebanon: 260%
🇸🇾 Syria: 139%
🇦🇷 Argentina: 116%
🇹🇷 Türkiye: 38.21%
🇪🇬 Egypt: 35.7%
🇵🇰 Pakistan: 29.4%
🇳🇬 Nigeria: 22.41%
🇭🇺 Hungary: 20.1%
🇰🇿 Kazakhstan: 14.6%
🇺🇦 Ukraine: 12.8%
🇵🇱 Poland: 11.5%
🇨🇿 Czechia: 9.7%
🇧🇩 Bangladesh: 9.7%
🇸🇪 Sweden: 9.3%
🇬🇧 UK: 8.7%
🇦🇹 Austria: 8%
🇰🇪 Kenya: 7.9%
🇦🇺 Australia: 7%
🇳🇴 Norway: 6.4%
🇮🇹 Italy: 6.4%
🇩🇪 Germany: 6.38%
🇿🇦 South Africa: 6.3%
🇮🇪 Ireland: 6.1%
🇳🇱 Netherlands: 5.7%
🇵🇭 Philippines: 5.4%
🇸🇬 Singapore: 5.1%
🇲🇽 Mexico: 5.06%
🇮🇳 India: 4.81%
🇫🇷 France: 4.5%
🇮🇱 Israel: 4.2%
🇮🇩 Indonesia: 3.52%
🇨🇦 Canada: 3.4%
🇯🇵 Japan: 3.2%
🇷🇺 Russia: 3.2%
🇧🇷 Brazil: 3.16%
🇦🇪 UAE: 3.05%
🇺🇸 USA: 2.97%
🇸🇦 Saudi Arabia: 2.8%
🇰🇷 South Korea: 2.7%
🇩🇰 Denmark: 2.5%
🇪🇸 Spain: 1.9%
🇨🇭 Switzerland: 1.7%
🇳🇪 Niger: 0.27%
🇹🇭 Thailand: 0.23%
🇨🇳 China: 0%
🇦🇲 Armenia: -0.5%
🇦🇫 Afghanistan: -1%
🇸🇨 Seychelles: -1.3%

Deflation, or negative inflation, refers to a sustained decrease in the general price level of goods and services in an economy. This means that overall prices are declining instead of increasing.

Gross Domestic Product (GDP) is a metric that quantifies the overall monetary value of all the goods and services produced by a country during a given time, typically a year. It serves as a vital tool in assessing the size and growth rate of an economy and provides crucial insights into its economic activity.

The United Kingdom is confronted with a considerable predicament as it grapples with a persistent increase in its debt. Recent data reveals that the UK’s debt has surged to an astounding $3.37 trillion, underscoring the gravity of the nation’s financial obligations. This accumulated debt encompasses both public and private sector borrowings and reflects the ongoing burden on the country’s finances.

UK debt: $3.37 trillion UK GDP: $3.16 trillion

As per the reports – The United Kingdom’s national debt has reached historic highs, more than doubling since the 1980s and the 2008 financial crisis. Factors such as the global economic crash and the Covid-19 pandemic have contributed to this increase. Although the current debt level is relatively low compared to the size of the economy and other leading economies, the government faces higher interest payments as the debt grows. Record amounts were set aside for debt interest in 2022, with £20 billion in June and £18 billion in December. The third-largest amount, £9.8 billion, was recorded in April 2023.