Outpacing Giants: India's GDP Surges to $3.75 Trillion

Tuesday, June 13^th 2023

Good Afternoon ☕

India's GDP growth is on fire! It's like the country has unleashed a squad of economic superheroes, soaring past major economies with a growth rate of 7.2%. Move aside Avengers, India's GDP is assembling its own team of "Gross Domestic Producers" to save the day. With such impressive numbers, it's safe to say that India is giving the world a lesson in economic superpowers. Watch out, GDP villains!

1. India's industrial production up 4.2% in April from 1.1% in March

India's industrial output rose 4.2% in April, according to data from the Ministry of Statistics. This exceeded analysts' expectations of 1.8% growth. Manufacturing, which accounts for about 17% of the Indian economy, rose 4.9% year-on-year in April compared with a provisional 0.5% year-on-year growth reported in March. However, electricity generation during April fell 1.1% over the same period a year earlier, while mining activities increased 5.1% . Consumer durables fell 3.5% year-on-year in April, after a decline of 8.4% in the previous month.

2. India's GDP has touched $3.75 trillion-mark in 2023: Nirmala Sitharaman

India's Gross Domestic Product (GDP) has reached $3.75 trillion in 2023, according to Union Finance Minister Nirmala Sitharaman. The country's GDP has surged from $2 trillion in 2014, moving from the 10th largest to the 5th largest economy in the world. India's GDP growth has also surged to 7.2% in 2023, outpacing major economies.

3. Home loan rates to drop further as CPI inflation eases to 2-year low in May

According to a report, the Consumer Price Index (CPI) inflation rate has eased to a two-year low in May, which is expected to lead to a further drop in home loan rates. The decline in the CPI rate has led to a decline in bond yields, which has caused mortgage rates to fall. However, despite the decline, mortgage rates are still higher than they were a year ago. The decline in rates is expected to provide some relief to the housing market, which has been struggling due to high rates and inflation.

4. Indo-Maldives joint military exercise commences

The 11th edition of the Indo-Maldives joint military exercise, called Exercise Ekuverin, began on December 6, 2021, and will continue until December 19, 2021, at Kadhdhoo Island, Maldives. The exercise aims to enhance operational synergy between both armies in the conduct of counter-terrorism operations. The exercise will entail counter-terrorism and counter-insurgency operations, sharing best military practices and experiences, and cultural and sports activities to enhance defense cooperation and bilateral relations. The participating contingents, comprising 45 members each from both armies, will enhance the counter-insurgency operation readiness in a semi-urban environment and develop interoperability and cohesion between the military contingents.

5. Complaint filed against Meta for gender discrimination in job ads

Human rights groups in Europe have filed four new complaints against Facebook-parent Meta, alleging that the algorithm it uses to target job ads discriminates against women and older workers. The complaints allege that Facebook selectively shows job advertisements based on users’ gender and age, with older workers far less likely to see ads and women far less likely to see ads for blue-collar positions, especially in industries that historically exclude women. In December 2022, a female truckers association accused Meta of displaying Facebook ads that “routinely discriminate” against women.

6. NIA seeks help in locating those who attacked Indian High Commission in London

The National Investigation Agency (NIA) has shared CCTV footage of the attack on the Indian High Commission in London on 19 March and has requested the public to help identify the miscreants seen in the footage. The NIA has described the attackers as "anti-national elements" and has asked anyone with information to contact them. The attack saw a group of people vandalize the Indian High Commission building in London and pull down the Indian flag. The NIA has not yet identified the attackers.

7. India, UAE look to boost non-petroleum bilateral trade

India and the United Arab Emirates have agreed to increase non-petroleum bilateral trade between the two countries to $100 billion by 2030. The announcement was made by India's trade minister, Piyush Goyal, after a meeting with UAE foreign trade minister Thani bin Ahmed Al Zeyoudi. The central banks of both countries are also discussing a rupee-dirham trade mechanism. The two countries aim to double the target of non-oil trade to $48 billion by 2030. In the first three months of 2023, bilateral trade between the UAE and India reached $13.3 billion, up 24.7% on the previous quarter.

8. India SaaS adopts 'Act East policy' as firms find Southeast Asia lucrative

Indian software-as-a-service (SaaS) companies are adopting the Act East policy as they find huge potential in Southeast Asia. The Act East policy is a diplomatic initiative to promote economic, strategic, and cultural relations with the vast Asia-Pacific region at different levels. The Look East policy was first intended as an economic strategy to boost India's trade and investment relations with the Southeast Asian region. Over the years, it not only expanded its geographical reach to include Japan, South Korea, and Australia but has also assumed significant strategic and political importance. India's eastward drive since 1992 has underscored the importance of this region in its contemporary international relations.

9. Zerodha's Nithin Kamath bats for regulatory oversight on crypto

Nithin Kamath, the founder of Zerodha, has called for regulatory oversight on crypto platforms to protect retail investors. He has also defended the recent action taken by the SEC against Coinbase. Kamath believes that drafting frameworks to show projects and founders the way is necessary to encourage genuine founders. Meanwhile, India's gross domestic product (GDP) has reached $3.75 trillion in 2023, making it the fifth-largest economy in the world. The country's GDP has surged from $2 trillion in 2014, according to the Finance Ministry.

10. India to cap sugar exports until first half of 2024 as El Nino may impact output

India is not considering allowing sugar exports until at least the first half of the next season, as the government is worried the El Nino weather pattern could hurt production, according to government sources. The country is the world's second-biggest sugar producer and exporter, and the move could help support global prices, which are currently at an 11-year high. The cap on sugar exports is expected to last until the first half of 2024.

11. Life insurers see 4% decline in new business premiums to ₹23,477 cr in May

India's life insurance companies saw a 4.1% decline in new business premium income to Rs 23,477.8 crore in May 2023, according to data from the Life Insurance Council. All 24 life insurers had a collective new business premium income of Rs 24,480.36 crore in the same month a year ago (May 2022). LIC, the only state-owned and largest life insurer in the country recorded an 11.26% decline in its new business premium at Rs 14,056.29 crore during the month against Rs 15,840.63 crore a year ago. The rest 23 players in the private sector, however, witnessed their combined new business premium rise by 9.05% to Rs 9,421.51 crore from Rs 8,639.72 crore in May 2022.

12. G20 Development Ministers' Meet: India releases 7-year action plan on SDGs

India has presented an ambitious seven-year action plan for accelerating progress on the Sustainable Development Goals (SDGs) at the G20 Development Ministers' Meeting. The plan presents a coordinated, integrated, and inclusive roadmap for G20 actions. External Affairs Minister S. Jaishankar said that the plan aims to fast-track the implementation of SDGs. The G20 development ministers' conclave has adopted the India-backed action plan on SDGs, which is key to achieving global economic recovery. The plan is expected to be implemented by the G20 countries to achieve the SDGs by 2030.

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