### Summary
According to a report from SBI Research, the per capita income of Indians is expected to increase from Rs 2 lakh in FY23 to Rs 14.9 lakh in FY47, coinciding with India's 100 years of Independence. The report also highlights the growth in the number of taxpayers and the increase in income levels for the middle class.
### Facts
- 💰 The per capita income of Indians is projected to increase from Rs 2 lakh in FY23 to Rs 14.9 lakh in FY47.
- 📈 37% of the total formal labor force in India currently pays taxes.
- 💸 64% of income tax returns in India are below Rs 5 lakh and are exempt from paying taxes.
- 📊 The number of taxpayers in India has risen from 30 million to close to 68 million, and could reach 85-90 million with pending late returns.
- 💵 13.6% of taxpayers have moved into higher-income brackets.
- 💼 The growth in income levels represents a significant progression for India, which has become the fifth-largest economy in terms of GDP.
- 💭 The income growth should not be criticized in terms of inflation, as even after adjusting for inflation, income has more than doubled in the last 10 years.
- 📉 The Gini Coefficient Index shows that the income gap between rich and poor states in India is narrowing, indicating improved economic benefits for all states.
### Source
- [CNN News18](https://www.news18.com/news/business/income-of-indian-middle-class-expected-to-increase-to-rs-15-lakh-by-2047-sbi-research-5522439.html)
### Summary
Commerce Minister Piyush Goyal stated that despite short-term inflation hiccups, India has achieved nearly a decade of controlled inflation, offering the lowest rates in the country's history.
### Facts
- 💰 Headline retail inflation reached a 15-month high of 7.44% in July, surpassing economists' expectations of 6.6%.
- 🌽 Vegetable prices and sustained cost pressures in staples like cereals and pulses contributed to the high Consumer Price Index (CPI) for July.
- 🍅 The government implemented various measures to curb food price rise, including distribution of discounted tomatoes and conducting e-auctions for rice and wheat.
- 💼 Commerce Minister Goyal expressed confidence in India's economy, highlighting comfortable foreign exchange reserves and high growth.
- 🌍 With a young demographic dividend, India aims to become a $35-trillion economy and one of the world's top three economies in the next 30 years.
- 📈 India is currently the fastest-growing economy and is projected to achieve a GDP growth of 6.5% for the current financial year.
- 🇮🇳 The current government inherited challenges such as unpaid oil bond debt, high interest costs, and faltering exports from the previous government.
- 🌱 Goyal emphasized the importance of sustainable and inclusive growth alongside value creation for shareholders.
### Summary
Moneycontrol's 'Bullish on India' campaign highlights India's thriving economy and promising future, amidst global challenges.
### Facts
- 💪 India's economy shines as a beacon of hope in challenging times, with robust growth and a resilient spirit.
- 🌟 Prime Minister Narendra Modi praises India's economy, emphasizing the importance of continuing on this upbeat path and ensuring the well-being of the country's 1.4 billion people.
- 📈 The 'Bullish on India' campaign showcases India's ability to sustain economic growth across diverse sectors and raises awareness of the country's potential during a global economic slowdown.
- 🌍 This campaign aims to document India's development, metamorphosis, and advancement, capturing its evolution and progress.
### Summary
India's economy is growing rapidly and is projected to become the third largest economy by 2031. However, there is a significant disparity in per capita income among states, with some states significantly behind the national average.
### Facts
- India is the fastest-growing large economy globally and is driving cost competitiveness.
- India's middle class is estimated to reach 61% of the population with an average income of Rs 20 lakh.
- By 2031, India's GDP is expected to cross the $10 trillion mark.
- Per capita income in India has increased from Rs 90,688 in 2013 to Rs 196,983 in April 2023.
- Telangana, Karnataka, and Haryana have the highest per capita income, while Bihar, Uttar Pradesh, and Jharkhand have the lowest.
- The per capita income of Bihar is 17% of Telangana and one-fourth of the national average.
- There is a correlation between political stability and economic performance.
- India's per capita income ranks 141st out of 191 countries.
- India needs to shift its population from low-productivity sectors like agriculture to high-income domains and increase female workforce participation.
- The necessary interventions include investment in human infrastructure, agricultural advancements, climate resilience, land and labor reforms, planned urbanization, and more.
### Summary
Commerce and Industry Minister Piyush Goyal believes that India will become the engine of global growth, with its economy projected to reach $35 trillion by 2047. India's young population and vibrant democracy are key factors contributing to its sustainable and inclusive growth.
### Facts
- India is expected to become the growth engine of the world, according to Commerce and Industry Minister Piyush Goyal.
- The country's GDP is projected to reach $35 trillion by 2047, offering significant business opportunities.
- With a population of 1.4 billion people, India recently surpassed China as the world's most populous country.
- India's young population, with over 600 million people aged between 18 and 35, is expected to continue for at least the next few decades.
- India is estimated to provide 24.3% of the incremental global workforce over the next decade.
- The country's digital economy has grown rapidly, with initiatives like the Aadhaar program and the Skill India program promoting digital literacy and skills development.
- India aims to create sustainable and inclusive growth, focusing on value creation and becoming a matter of pride and envy.
🇮🇳💼🌍📈🌱
### Summary
Corporate India's June quarter earnings season showed robust profit growth despite lacklustre revenue expansion, with banking and non-banking financial companies leading the way. However, sectors such as information technology and chemicals experienced a slowdown in revenue growth. The overall demand remains an issue, but the upcoming general elections and a good start to the monsoon season are expected to boost demand.
### Facts
- Corporate India's June quarter earnings season had strong profit growth despite weak revenue expansion.
- Banking and non-banking financial companies led the profit growth, while export-oriented sectors like information technology suffered from weak sentiment overseas.
- The topline growth for BSE500 companies slowed down to 6 percent, with a significant number of them experiencing topline contraction.
- Sectors such as information technology and chemicals saw a slowdown in revenue growth, despite the "China + 1" benefits for the chemicals sector.
- Lower crude prices and rising competitive intensity affected the revenue growth for India Inc in the first quarter of this fiscal.
- Capital expenditure by companies increased, indicating a positive medium-term economic outlook for India.
- FMCG firms had double-digit profit growth but weak volumes expansion due to subdued rural demand caused by inflationary headwinds.
- The urban-focused consumer discretionary segment also had a weak quarter, affected by unseasonal rains and inflation.
- Auto companies had strong results due to robust demand and price hikes, with the passenger vehicles segment showing strong demand.
- The start of the monsoon season holds hope for a strong demand recovery, especially in the festival season.
India's economic growth likely accelerated to 7.7% in the April-June quarter, driven by strong service sector growth, high demand, and increased government capital expenditure, according to a Reuters poll.
India's economy is experiencing consistent growth, and is predicted to become the fourth-largest economy within 18 months and the third-largest by 2028, driven by strong fundamentals and infrastructure development, while successfully reducing poverty; however, further reforms in areas such as patents, judicial, administrative, and process reforms are needed to boost economic growth.
India has seen an increase in its tariffs and trade policy measures in recent years, reversing the trend towards liberalization and increasing trade restrictions, which is a global phenomenon as many countries are adopting industrial policies to promote domestic production and exports; however, the effectiveness of these policies and their impact on economic growth and job creation remain to be seen.
India's economy grew at its fastest pace in a year in the April-June quarter, driven by services and manufacturing, though economists warn of a slowdown ahead due to factors like rising food prices and slowing global growth.
India's GDP grew at a rate of 7.8% in the April-June period, fueled by a strong services sector and government infrastructure spending.
India's GDP growth reached a four-quarter high of 7.8% in Q1FY24, with private consumption and services picking up pace, but challenges lie ahead with the sustainability of services growth and concerns over the monsoon and agriculture sector.
India has increased its use of coal for electricity generation amid lower hydroelectricity output and record power demand, resulting in coal's share in power output rising to the highest level in six years.
India's services industry experienced a slight slowdown in August, but overall conditions remained strong with record-high exports, indicating that the country will continue to be the fastest-growing major economy.
India's economic rise is seen as inevitable due to factors such as a consumer boom, context-appropriate innovation, a green transition, a demographic dividend, access to finance, major infrastructure upgrades, policy reforms, geopolitical positioning, and a diaspora dividend, although challenges such as unbalanced growth, unrealized demographic potential, and unrealized ease-of-business and innovation potential still need to be addressed.
India's steel producers anticipate a rise in local manufacturing and a decrease in prices after the government's imposition of an anti-dumping duty on steel wheels from China, leading to increased competition and lower domestic prices.
India's economic growth is estimated to be closer to 7.5%, with the country's first quarter growth at 7.8%, reflecting India's increasing stature in the world.
China's economy has entered deflation territory and the debt crisis has worsened, while India's economy is thriving with GDP growth expected to exceed 7% and unemployment rates at a 12-year low; it is predicted that India will surpass China in per capita income by 2044 due to factors such as female education expansion, labor force growth, and higher total factor productivity growth.
India's aluminium sector is thriving due to government infrastructure growth and increasing industry demand, with expectations for India to become the world's second biggest aluminium consumer as its per capita consumption remains low.
With the right reforms, India has the potential to become the next engine of global growth, benefiting from major economic re-alignments caused by China's slowdown and the US diversifying its supply chains. Major corporations are already investing in India, recognizing its potential. However, India needs to overcome challenges such as high tariffs, infrastructure improvements, and regional cooperation to fully realize its manufacturing potential and attract foreign investment.
India's Finance Minister, Nirmala Sitharaman, is hopeful that the country can achieve its target of 10.5% nominal economic growth this fiscal year, and is prioritizing growth over taxing diesel vehicles.
India's goal of achieving 6.5% real GDP growth in FY24 may be complicated by lower-than-anticipated nominal growth, potentially delaying the country's aim of becoming a $5 trillion economy by another year.
The Asian Development Bank has lowered India's GDP growth forecast for FY 2023-24 to 6.3% due to the impact of extreme rainfall patterns on agriculture, while maintaining a growth projection of 6.7% for FY 2024-25, citing corporate profitability and strong bank credit as key factors. Additionally, the bank expects inflation to moderate and retail sales to be affected by food inflation, while India's external trade is expected to be affected by weak global demand. Despite these challenges, India's GDP growth outlook remains higher compared to its Asian peers.
The latest State of Working India report reveals that economic growth in India has led to a decrease in job disparities and greater upward mobility, but job creation has not kept pace with GDP growth, particularly in the manufacturing sector, and there are deep divides in pay across gender, caste, and religion. The COVID-19 pandemic further increased reliance on agriculture and self-employment, particularly among women.
India is expected to be the fastest-growing major economy this fiscal year, but the forecasted growth is still below potential and risks are skewed to the downside, with a drier than normal monsoon season and sluggish private consumption acting as restraints; however, economists predict that the Reserve Bank of India will cut rates in the second quarter of next year.
China's factory and services sectors experienced slower growth in September due to weak external demand, despite an increase in output, with the property slump, falling exports, and high youth unemployment clouding the economic outlook.
India's core sector recorded robust growth in August, with a growth rate of 12.1%, driven by sectors such as cement, coal, electricity, steel, and natural gas, indicating a strong recovery and revival of essential infrastructure sectors.
India's GDP growth is expected to moderate over the next few quarters, with a projected growth rate of around 7% in the second quarter and a slowdown to around 4.5-5% in the second half of the year. Factors such as the fluctuating monsoon, lower reservoir levels, cautious rural demand, and the impact of monetary tightening are likely to contribute to this moderation in growth. The writer predicts a full-year GDP expansion of 6%, with future growth depending on factors such as the outcome of the next election.
India's factory activity expanded at a slower pace in September, but strong demand and business confidence remained high, despite increased inflationary pressures.
The US economy is predicted to slow down by mid next year, which will have a negative impact on global GDP, according to Neelkanth Mishra, Chief Economist for Axis Bank. Mishra also mentioned that China will grow slowly but not collapse, while India will be affected through various pathways such as a decline in services growth, goods demand, dumping of products, and financial market volatility. However, he believes that India's trajectory looks good in the next 5-7 years.
The Indian economy grew 7.8% in the first quarter, leading to improved employment numbers and a decrease in the unemployment rate in urban areas. Female labor force participation also increased, but there is still a significant gender disparity in unemployment rates.
India's economy needs to grow at a rate of 8% per year and focus on investment in traditional sectors in order to surpass China as the largest contributor to the global economy, according to Barclays.
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